1. WHY AGILE IS FAILING IN LARGE ORGANIZATIONS

2. mike@leadingagile.com 404-312-1471 www.leadingagile.com twitter.com/mcottmeyer facebook.com/leadingagile linkedin.com/in/cottmeyer MIKE COTTMEYER

3. A BRIEF HISTORICAL PERSPECTIVE

4. 1943 1950- 1960s 1985 1990 1995 1996 1997 1998 2000 2001 USAF & NASA X-15 hypersonic jet Iterative Incremental Delivery Hirotaka Takeuchi & Ikujiro Nonaka The New New Product Development Game 1990 - Sutherland & Schwaber Scrum Framework DSDN Consortium Dynamic System Development Method 1996 - Beck, Cunningham, Jeffries Extreme Programming Jeff de Luca Feature Driven Development Alistair Cockburn Crystal Methodologies Robert Charette Lean Development THE AGILE MANIFEST O Taiichi Ohno Toyota Production System Kanban HardwareSoftware

5. Individuals & interactions Processes & tools over Working software Comprehensive documentation over Customer collaborationContract negotiation over Responding to changeFollowing a plan over That is, while there is value in the items on the right, we value the items on the left more. We are uncovering better ways of developing software by doing it and helping others do it. Through this work we have come to value: Source: www.agilemanifesto.org MANIFESTO VALUES

6. Satisfy the Customer Welcome Change Deliver Frequently Collaborate Daily Support & Trust Motivated Teams Promote Face-to-Face Conversations Deliver Working Software Promote Sustainable Pace Promote Technical Excellence Maximize Through Simplicity Have Self-Organized Teams Reflect & Adjust Regularly Source: www.agilemanifesto.org MANIFESTO PRINCIPLES

7. BELIEFS ABOUT AGILE & TRANSFORMATION

8. CulturePracticesStructure BELIEFS…

9. CulturePracticesStructure Focused on changing hearts and minds Focused on being agile rather than doing agile Focused on values and principles CULTURE DRIVEN

10. CulturePracticesStructure Focused on changing hearts and minds Focused on being agile rather than doing agile Focused on values and principles Belief that delivery systems will emerge based on new thinking CULTURE DRIVEN

11. PracticesStructureCulture Focused on the things that you do Focused on roles, ceremonies, and artifacts Can be management driven or technically driven PRACTICES DRIVEN

12. PracticesStructureCulture Focused on the things that you do Focused on roles, ceremonies, and artifacts Can be management driven or technically driven Belief that agile is a process or way to work PRACTICES DRIVEN

13. StructureCulturePractices Focused on forming teams and governing the flow of value Focused on aligning the organization first STRUCTURE DRIVEN

14. StructureCulturePractices Focused on forming teams and governing the flow of value Focused on aligning the organization first Belief that culture and practices only emerge within a rational structural and planning framework STRUCTURE DRIVEN

15. CulturePracticesStructure... all three are essential, but where you start is also essential… WHERE TO START?

16. LEADINGAGILE THEORY OF TRANSFORMATION

17. Theory of Transformation Agile transformation begins by defining a rational system of delivery for the enterprise

18. Theory of Transformation True agility comes by breaking dependencies between teams across the organization

19. Theory of Transformation Healthy culture and solid practices emerge within a rational delivery framework

20. WHY AGILE WORKS

21. Team

22. User Story

23. Team Database Report Screen User Story

24. Team Database Report Screen User Story Clarity

25. Team Database Report Screen User Story Clarity Accountability

26. Team Database Report Screen User Story Clarity Accountability Measureable Progress

27. Team Database Report Screen User Story Clarity Accountability Measureable Progress Few if any dependencies

28. WHY AGILE WORKS AT SCALE

29. Team Database Report Screen User Story Clarity Accountability Measureable Progress

30. Team Database Report Screen User Story Governance Accountability Measureable Progress

31. Team Database Report Screen User Story Structure Measureable Progress Governance

32. Team Database Report Screen User Story Structure Metrics & Tools Governance

33. Team Database Report Screen User Story Structure Metrics & Tools Governance Teams have autonomy across the organization

34. WHY AGILE FAILS

35. Team Database Report Screen User Story

36. Team Database Report Screen User Story Lack of Clarity

37. Team Database Report Screen User Story Lack of Clarity Lack of Accountability

38. Team Database Report Screen User Story Lack of Clarity Lack of Accountability Lack of Measureable Progress

39. Team Database Report Screen User Story Lack of Clarity Lack of Accountability Lack of Measureable Progress Often caused by too many external dependencies

40. WHY AGILE FAILS AT SCALE

41. Team Database Report Screen User Story Lack of Clarity Lack of Accountability Lack of Measureable Progress

42. Team Database Report Screen User Story Lack of Governance Lack of Measureable Progress Lack of Accountability

43. Team Database Report Screen User Story Lack of Structure Lack of Measureable Progress Lack of Governance

44. Team Database Report Screen User Story Lack of Metrics & Tools Lack of Governance Lack of Structure

45. Team Database Report Screen User Story Lack of Metrics & Tools Lack of Governance Lack of Structure Too much coordination between teams

46. ORGANIZATIONAL BARRIERS TO AGILE

47. Team

48. Matrixed Organizations Team

49. Matrixed Organizations Non-instantly Available Resources Team

50. Matrixed Organizations Limited Access to Subject Matter Expertise Non-instantly Available Resources Team

51. Matrixed Organizations Limited Access to Subject Matter Expertise Non-instantly Available Resources Shared Requirements Between Teams Team

52. Matrixed Organizations Limited Access to Subject Matter Expertise Non-instantly Available Resources Too Much Work In Process Shared Requirements Between Teams Team

53. Matrixed Organizations Limited Access to Subject Matter Expertise Non-instantly Available Resources Too Much Work In Process Shared Requirements Between Teams Large Products with Diverse Technology Team

54. Matrixed Organizations Limited Access to Subject Matter Expertise Non-instantly Available Resources Too Much Work In Process Shared Requirements Between Teams Technical Debt & Defects Large Products with Diverse Technology Team

55. Matrixed Organizations Limited Access to Subject Matter Expertise Non-instantly Available Resources Too Much Work In Process Low Cohesion & Tight Coupling Shared Requirements Between Teams Technical Debt & Defects Large Products with Diverse Technology Team

56. Corollary One: Solving for the issues that get in the way of effectively practicing agile is what should guide your agile transformation initiative

57. MAPPING YOUR AGILE TRANSFORMATION

58. Predictability Adaptability

59. Predictability Adaptability Emergence Convergence

60. Predictability Adaptability Emergence Convergence

61. Predictability Adaptability Emergence Convergence AE PC

62. Predictability Adaptability Emergence Convergence AE PE PCAC

63. Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc

64. Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc Traditional

65. Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc TraditionalAgile

66. Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc TraditionalAgile Lean Startup

67. Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc TraditionalAgile Lean Startup Project

68. Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc TraditionalAgile Lean Startup Project Pilot

69. Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc TraditionalAgile Lean Startup Project Pilot

70. Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc TraditionalAgile Lean Startup Adopt Pilot

71. Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc TraditionalAgile Lean Startup LOB

72. Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc TraditionalAgile Lean Startup LOB Low Trust

73. Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc TraditionalAgile Lean Startup LOB Low Trust LOB Become Predictable

74. Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc TraditionalAgile Lean Startup LOB Low Trust LOB Become Predictable

75. Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc Lean/AgileAgile Lean Startup LOB Low Trust LOB Become Predictable

76. Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc Lean/AgileAgile Lean Startup LOB Low Trust LOB Become Predictable LOB Reduce Batch Size

77. Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc Lean/AgileAgile Lean Startup LOB Low Trust Become PredictableReduce Batch Size Fully Decouple

78. Corollary Two: Agile can mean different things to different companies and not all agile approaches will work well for every organization

79. INCREMENTAL AND ITERATIVE IMPROVEMENT

80. Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc Lean/AgileAgile Lean Startup Org Slice Low Trust Become PredictableReduce Batch Size Fully Decouple

81. Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc Lean/AgileAgile Lean Startup Org Slice Low Trust Become PredictableReduce Batch Size Fully Decouple Phase One

82. Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc Lean/AgileAgile Lean Startup Org Slice Low Trust Become PredictableReduce Batch Size Fully Decouple Phase One Phase Two

83. Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc Lean/AgileAgile Lean Startup Org Slice Low Trust Become PredictableReduce Batch Size Fully Decouple Phase One Phase Three Phase Two

84. Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc Lean/AgileAgile Lean Startup Org Slice Low Trust Become PredictableReduce Batch Size Fully Decouple Phase One Phase Three Phase Four Phase Two

85. Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc Lean/AgileAgile Lean Startup Org Slice Low Trust Become PredictableReduce Batch Size Fully Decouple Phase One Phase Three Phase Four Phase Two Phase Five

86. Corollary Three: Organizational change can be mapped out in such a way that outcomes are measureable and predictable and economically justified

87. DEVELOPING YOUR ROADMAP

88. Team Database Report Screen User Story Structure Governance Metrics & Tools

89. Team Database Report Screen User Story Structure Governance Metrics & Tools

90. Team Database Report Screen User Story Governance Metrics & Tools Structure

91. Team Database Report Screen User Story Governance Metrics & Tools Structure

92. STRUCTURE

93. Services Teams – These teams support common services across product lines. These teams support the needs of the product teams. Team

94. Product Teams – These teams integrate services and write customer facing features. This is the proto- typical Scrum team. Services Teams – These teams support common services across product lines. These teams support the needs of the product teams. Team

95. Programs Teams – These teams define requirements, set technical direction, and provide context and coordination. Product Teams – These teams integrate services and write customer facing features. This is the proto- typical Scrum team. Services Teams – These teams support common services across product lines. These teams support the needs of the product teams. Team

96. Portfolio Teams – These teams govern the portfolio and make sure that work is moving through the system. Programs Teams – These teams define requirements, set technical direction, and provide context and coordination. Product Teams – These teams integrate services and write customer facing features. This is the proto- typical Scrum team. Services Teams – These teams support common services across product lines. These teams support the needs of the product teams. Team

97. Product & Services Teams

98. Team Product & Services Teams Program Teams

99. Team Product & Services Teams Program Teams Portfolio Teams

100. GOVERNANCE

101. Team Product & Services Teams Program Teams Portfolio Teams

102. Product & Services Teams Scrum Team Program Teams Portfolio Teams

103. Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Team

104. Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Team

105. METRICS

106. Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Team

107. Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Team Backlog Size Velocity Burndown Escaped Defects Commit % Ratio Acceptance % Ratio Scope Change

108. Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Team Cycle Time Features Blocked Rework/Defects Backlog Size Velocity Burndown Escaped Defects Commit % Rate Acceptance % Ratio Scope Change

109. Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Backlog Size Velocity Burndown Escaped Defects Commit % Ratio Acceptance % Ratio Scope Change Cycle Time Features Blocked Rework/Defects Takt Time/Cycle Time Time/Cost/Scope/Value RIO/Capitalization

110. Corollary Four: Organizational constructs, governance models, metrics and controls can be established without violating the principles of agile

111. INCREMENTAL TRANSFORMATION

112. Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Team Agile Pilot Increment One

113. Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Team Agile Pilot Increment One Agile Rollout Increment Two

114. Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Team Agile Pilot Increment One Agile Rollout Three - N

115. ITERATIVE TRANSFORMATION

116. Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Team Agile Pilot Iteration One

117. Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Team Agile Pilot Iteration Two

118. Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Team Agile Pilot Iteration Three

119. Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Agile Pilot Iteration Four Team

120. Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Agile Pilot Iteration Five Team

121. ITERATIVE & INCREMETNAL CHANGE

122. Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Agile Pilot Iteration One Team

123. Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Agile Pilot Team Iteration Two

124. Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Agile Pilot Iteration Three Agile Rollout Iteration One Team

125. Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Agile Pilot Iteration Four Agile Rollout Iteration Two Team

126. Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Agile Pilot Iteration Five Agile Rollout Iteration Three Team

127. Corollary Five: Organizations can adopt agile safely and pragmatically by iteratively and incrementally introducing structure, governance, and metrics and maturing practices and culture over time

128. SUMMARY

129. Theory of Transformation Agile transformation begins by defining a rational system of delivery for the enterprise

130. Theory of Transformation True agility comes by breaking dependencies between teams across the organization

131. Theory of Transformation Healthy culture and solid practices emerge within a rational delivery framework

132. Corollary One: Solving for the issues that get in the way of effectively practicing agile is what should guide your agile transformation initiative

133. Corollary Two: Agile can mean different things to different companies and not all agile approaches will work well for every organization

134. Corollary Three: Organizational change can be mapped out in such a way that outcomes are measureable and predictable and economically justified

135. Corollary Four: Organizational constructs, governance models, metrics and controls can be established without violating the principles of agile

136. Corollary Five: Organizations can adopt agile safely and pragmatically by iteratively and incrementally introducing structure, governance, and metrics and maturing practices and culture over time

137. Summary By focusing on the fundamentals of agile delivery, while systematically and methodically breaking dependencies, we can achieve true enterprise agility

138. WHY AGILE IS FAILING IN LARGE ENTERPRISES …and what you can do about it