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WHY AGILE IS FAILING IN LARGE ENTERPRISES

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WHY AGILE IS FAILING IN LARGE ENTERPRISES


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


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


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A BRIEF HISTORICAL PERSPECTIVE


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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 MANIFESTO Taiichi Ohno Toyota Production System Kanban Hardware Software


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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


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Source: www.agilemanifesto.org MANIFESTO PRINCIPLES


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BELIEFS ABOUT AGILE & TRANSFORMATION


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BELIEFS…


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


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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


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


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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


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


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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


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


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LEADINGAGILE THEORY OF TRANSFORMATION


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


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


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


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WHY AGILE WORKS


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Team


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Team User Story User Story User Story User Story User Story User Story User Story


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Team Database Report Screen User Story User Story User Story User Story User Story User Story User Story


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Team Database Report Screen User Story User Story User Story User Story User Story User Story User Story Clarity


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Team Database Report Screen User Story User Story User Story User Story User Story User Story User Story Clarity Accountability


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


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


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WHY AGILE WORKS AT SCALE


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


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


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


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


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


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WHY AGILE FAILS


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Team Database Report Screen User Story User Story User Story User Story User Story User Story User Story


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Team Database Report Screen User Story User Story User Story User Story User Story User Story User Story Lack of Clarity


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


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


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


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WHY AGILE FAILS AT SCALE


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


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


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


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


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


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ORGANIZATIONAL BARRIERS TO AGILE


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Team


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Matrixed Organizations Team


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


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


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


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Matrixed Organizations Limited Access to Subject Matter Expertise Non-instantly Available Resources Unbalanced Capacity and Demand Shared Requirements Between Teams Team


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Matrixed Organizations Limited Access to Subject Matter Expertise Non-instantly Available Resources Unbalanced Capacity and Demand Shared Requirements Between Teams Large Products with Diverse Technology Team


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Matrixed Organizations Limited Access to Subject Matter Expertise Non-instantly Available Resources Unbalanced Capacity and Demand Shared Requirements Between Teams Technical Debt & Defects Large Products with Diverse Technology Team


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Matrixed Organizations Limited Access to Subject Matter Expertise Non-instantly Available Resources Unbalanced Capacity and Demand Low Cohesion & Tight Coupling Shared Requirements Between Teams Technical Debt & Defects Large Products with Diverse Technology Team


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


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MAPPING YOUR AGILE TRANSFORMATION


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Predictability Adaptability What does your company value when planning?


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Emergence Convergence What do your customers value from a planning perspective?


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Predictability Adaptability Emergence Convergence


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Predictability Adaptability Emergence Convergence AE PC


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Predictability Adaptability Emergence Convergence AE PE PC AC


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Predictability Adaptability Emergence Convergence AE PE PC AC Ad-Hoc


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Predictability Adaptability Emergence Convergence AE PE PC AC Ad-Hoc Traditional


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Predictability Adaptability Emergence Convergence AE PE PC AC Ad-Hoc Traditional Agile


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Predictability Adaptability Emergence Convergence AE PE PC AC Ad-Hoc Traditional Agile Lean Startup


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Predictability Adaptability Emergence Convergence AE PE PC AC Ad-Hoc Traditional Agile Lean Startup Project


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Predictability Adaptability Emergence Convergence AE PE PC AC Ad-Hoc Traditional Agile Lean Startup Project Pilot


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Predictability Adaptability Emergence Convergence AE PE PC AC Ad-Hoc Traditional Agile Lean Startup Project Pilot


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Predictability Adaptability Emergence Convergence AE PE PC AC Ad-Hoc Traditional Agile Lean Startup Adopt Pilot


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Predictability Adaptability Emergence Convergence AE PE PC AC Ad-Hoc Traditional Agile Lean Startup LOB


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Predictability Adaptability Emergence Convergence AE PE PC AC Ad-Hoc Traditional Agile Lean Startup LOB Low Trust


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Predictability Adaptability Emergence Convergence AE PE PC AC Ad-Hoc Traditional Agile Lean Startup LOB Low Trust LOB Become Predictable


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Predictability Adaptability Emergence Convergence AE PE PC AC Ad-Hoc Traditional Agile Lean Startup LOB Low Trust LOB Become Predictable


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Predictability Adaptability Emergence Convergence AE PE PC AC Ad-Hoc Lean/Agile Agile Lean Startup LOB Low Trust LOB Become Predictable


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Predictability Adaptability Emergence Convergence AE PE PC AC Ad-Hoc Lean/Agile Agile Lean Startup LOB Low Trust LOB Become Predictable LOB Reduce Batch Size


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Predictability Adaptability Emergence Convergence AE PE PC AC Ad-Hoc Lean/Agile Agile Lean Startup LOB LOB LOB LOB Low Trust Become Predictable Reduce Batch Size Fully Decouple


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


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INCREMENTAL AND ITERATIVE IMPROVEMENT


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Predictability Adaptability Emergence Convergence AE PE PC AC Ad-Hoc Lean/Agile Agile Lean Startup Org Slice Low Trust Become Predictable Reduce Batch Size Fully Decouple


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Predictability Adaptability Emergence Convergence AE PE PC AC Ad-Hoc Lean/Agile Agile Lean Startup Org Slice Low Trust Become Predictable Reduce Batch Size Fully Decouple Phase One


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Predictability Adaptability Emergence Convergence AE PE PC AC Ad-Hoc Lean/Agile Agile Lean Startup Org Slice Low Trust Become Predictable Reduce Batch Size Fully Decouple Phase One Phase Two


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Predictability Adaptability Emergence Convergence AE PE PC AC Ad-Hoc Lean/Agile Agile Lean Startup Org Slice Low Trust Become Predictable Reduce Batch Size Fully Decouple Phase One Phase Three Phase Two


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Predictability Adaptability Emergence Convergence AE PE PC AC Ad-Hoc Lean/Agile Agile Lean Startup Org Slice Low Trust Become Predictable Reduce Batch Size Fully Decouple Phase One Phase Three Phase Four Phase Two


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Predictability Adaptability Emergence Convergence AE PE PC AC Ad-Hoc Lean/Agile Agile Lean Startup Org Slice Low Trust Become Predictable Reduce Batch Size Fully Decouple Phase One Phase Three Phase Four Phase Two Phase Five


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


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DEVELOPING YOUR ROADMAP


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


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


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


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


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STRUCTURE


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


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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 Team


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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 Team Team


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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 Team Team Team


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Team Team Team Team Team Team Team Product & Services Teams


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Team Team Team Team Team Team Team Team Team Team Product & Services Teams Program Teams


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Team Team Team Team Team Team Team Team Team Team Team Product & Services Teams Program Teams Portfolio Teams


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GOVERNANCE


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Team Team Team Team Team Team Team Team Team Team Team Product & Services Teams Program Teams Portfolio Teams


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


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


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


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METRICS


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


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


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


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Product & Services Teams Program Teams Portfolio Teams Scrum Kanban 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


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


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INCREMENTAL TRANSFORMATION


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


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


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


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ITERATIVE TRANSFORMATION


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


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


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


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


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


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ITERATIVE & INCREMETNAL CHANGE


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


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Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Kanban Agile Pilot


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


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


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


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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


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SUMMARY


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


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


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


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


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


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


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


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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


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


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


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