1. Development Strategy for Engineering Going Forward at Pitney Bowes Sue McKinney Vice President, Engineering Pitney Bowes Incorporation

2. challenges strategic directions summary tools

3. successful business?

4.  Sustainable  Competitive advantage sustain a competitive advantage

5. consistently deliver business value

6. business challenges

7.  Build Trust? deliver the right product

8. in the optimal market windows

9.  At the lowest cost lowest cost

10. and …

11. increase productivity

12. Protect Team Boundaries meet customer’s changing needs

13. develop great solutions

14.  Leadership Influence innovate!

15. software challenges

16. business dynamics innovate to differentiate responsiveness tighter linkage to customers time to value

17. operational dynamics predictability of schedules quality better use of resources improve product development cycles

18. Always or Often Used: 20% Never or Rarely Used: 64% Standish Group Study, reported by CEO Jim Johnson, XP2002 Sometimes 16% Rarely 19% Never 45% Often 13% Always 7%

19. Project Statistics Standish Group Study, reported by CEO Jim Johnson, CIO.com, ‘How to Spot a Failing Project’

20. Improvements due to better…  Tools  Project Managers  Adaptive Methods  Breaking projects into small chunks  Delivering pieces faster for user feedback

21. too much churn

22. Lead change Less waste Respond to market changes

23. complexity split teams & multiple locations multiple time zones interdependent products acquisitions

24. Uncertainty market uncertainty technical uncertainty project duration

25. how ?

26. Trust do more smart stuff

27. … and less stupid stuff.

28. process to deal with complexity

29. tools coupled with best practices

30.  Self-organizing, self-managing  Do we need leaders?  What kind of Leadership? what about agile? what is that?

31. Provide Capacity Gain Create Market Opportunities Improve Customer Satisfaction Prevent / Reduce Business Costs Cost Avoidanc e (i.e. avoid new expenses) Waste Avoidance (i.e. eliminate current expenses) Productivity Gain (i.e. do things faster) 3 atomic elements: Increase Revenues / Profits Analysis through Value Stream Mapping technique E 2 Framework elements

32. Products & HC/Product improving Product deliveries 20042005200620072008 Brand W Products Brand T Products Brand W HC/productBrand T HC/product

33. 2003 2004 2005 2006 2007 2008 Hc / Product GA SWG Average doing More with Less

34. 2003 2004 2005 2006 2007 2008 improving Bottom line Growth Effectiveness $$ per HC SWG Average $K / HC

35. take risks

36.  Get more done by doing less support

37. the approach

38. empower educate enable

39.  Sustainable  Competitive advantage focus on business results

40. laying the Foundation for Measurements team Productivity Quality Stakeholder Satisfaction cost of Development

41. use Agile and…

42. vision and strategy

43. Project Management  Focus, Communication, and Expectation Management communication

44. empowerment

45. give and re- enforce ownership

46. teams figure out how

47. make better decisions with less churn

48. Purpose Considerations Costs and Benefits Business Value Model

49. it’s a conversation

50. resolve differences

51. group chunks high – medium - low

52. What are your largest value chunks?

53. what can you defer ?

54. “build” a chunk …

55. at the end of the “chunk”

56. did the value inputs change?

57. adjust BV model run the chunk features thru model

58. now you can ask…

59. Do we have enough business value to go to market?

60. Should we continue?

61. What goes in the next cycle or chunk?

62. run candidate features thru model re- prioritize

63. value Model objectives / projects / ideas Value Model prioritized chunks build highest value chunks Do we have enough value to deploy? deferred Will we ever have enough value to deploy? STOP Yes No Adjust value model if inputs have changed

64. discovery Parting Thoughts ……

65. summary

66. time saved productivity improved

67. risk management cannot be siloed

69. Thank You!

70. step up without stifling innovation keep focus step back and

71. Project Management  Remove Obstacles remove obstacles

72. influence not authority

73. results applying collaborative leadership

74. leaders empowered to change within scope of influence

75. Summary building Trust across distributed teams

76. collaborating to set goals

77. keeps focus through questions

78. Leadership Role project experiences

79. foster innovation collaborative leadership enables us to …… stand back and deliver. the answers are in your organization. make better decisions deliver more value increase productivity empowered to solve problems unleash talent foster innovation

80. Work with corporate HR, learning and values team. cultural collaboration integration

81. Project Methods  Waterfall:  Function Definition, Design, Build, Check Functions Design Build CheckDone  New Methods:  Single Cycle Review and Adjust  Spiral: Multiple Cycles of Waterfall  Agile: Adapt As You Go: Short Iterations

82. What is Agile? From recognition and acceptance of increasing levels of unpredictability in our turbulent economy  A chaordic perspective  Collaborative values and principles  Barely sufficient methodology - Jim Highsmith

83. What is Agile?  A development process that conforms to the values and principles of the Agile Alliance (agilealliance.org)  Originally for software development

84. Agile Manifesto While there is value in the items on the right we value the items on the left more.  Individuals and interactions over processes and tools  Working software over comprehensive documentation  Customer collaboration over contract negotiation  Responding to change over following a plan

85. Agile Overview Agile:  Iterative and Incremental  Light-Weight  Meets Changing Needs of Stakeholders  Highly Collaborative: Involves Customers  Minimizes Documentation  Test First

86. Agile Principles

87. Light Weight  Utilize only practices that make sense for the project and environment  “Barely sufficient” artifacts, methodology, and documentation  “Appropriate” vs “Best Practices”

88. Practice Excellence  Requires self discipline to improved quality  Relies on the team to practice technical excellence instead of imposing discipline  Adopt technical practices that support the other practices such as:  Continuous Integration  Test Driven Development  Refactoring

89. Reflect and Adapt  Learn from past to improve performance  Retrospectives after each iteration  Harness change for improved efficiency  Multi-Horizon planning allows adaptation

90. The Process Pendulum Code and FixWaterfallAgile No ProcessPrescriptiveEmpirical  Frequent inspection  Collaboration  Adaptive responses Prescriptive  Defined set of steps to follow  Plan the work, work the plan  Plan is assumed to be correct

91. How Does Agile Work?  “Requirements” called features, defined using user stories: As a _____ I want to_______ Pick a project. Define the major features in terms of user stories.

92. Agile ‘Process’  Features listed in a backlog  Backlog prioritized based on value  Highest priorities estimated and grouped into an iteration, one-four weeks long  At end of iteration, ask if enough value to go to market?  Add any new features to backlog and reprioritize and select next iteration

93. Project Methods Done? Planning Project Definition and Iterations Completed Deliverables Review and Adjust Implement  Envision  Iterate:  Plan  Implement  Done?  Adapt  Complete YES NO

94. Agile Cycles Vision Planning Develop Iteration Plan Review / Adapt Iteration Planning Iterations Plan High Level Planning Detailed Planning

95. Agile ‘Process’  Test cases are written first, before anything is developed  Go/no-go decisions reached early and often

96. Trustworthiness support from senior leaders

97. tools coupled with best practices