Agile Business Transformation

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Agile has become mainstream for developing software. Organizations that have adopted agile have seen improvements in quality, cycle time, and customer satisfaction. Standish Group research shows that agile projects are three times more successful than traditional plan driven projects. However using Agile Development practices does not make an agile organization. Agile transformation requires focus on four key areas: 1. Agile Discovery 2. Agile Delivery 3. DevOps 4. Agile Business Change Download the recording here: http://bit.ly/1rqbugR

Transcript of Agile Business Transformation

  • 1. 0 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Title Here John Parker, CEO Enfocus Solu5ons Inc. Agile Business Transformation May 15, 2014 http://EnfocusSolutions.com
  • 2. 1 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Agenda Agile Transforma5on Challenges Scaled Agile Framework Business and SoAware Agility Transforming the PMO Stakeholder Engagement and Collabora5on Discovery and Valida5on Business Change Management Agile PorIolio Management Agile Program Management Agile Team Management Product Managers PMOs Organiza5onal Change Managers Project Managers PorIolio Mangers Product Owners Agile Teams Audience Agile Transformation
  • 3. 2 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. John E. Parker Chief Executive Officer of Enfocus Solutions Inc. Previous Positions o Chief Visionary Officer of Enfocus Solutions Inc o EVP and CTO, MAXIMUS Inc. o Outsourced CIO for HSHS (Large Healthcare System) o EVP and Cofounder, Spectrum Consulting Group o KPMG Partner Expertise o IT Strategic Planning o Agile Development using Scrum and Kanban o Agile Portfolio and Program Management o Business Analysis o Recovering Troubled and Challenged Projects o Enterprise and Business Architecture o Business Process Improvement, Reengineering, and Management Contact: http://enfocussolutions.com info@enfocussolutions.com
  • 4. 3 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Why Agile? The agile process is the universal remedy for software development project failure. The secret is the trial and error and delivery of the iterative process. Software should be built in small, iterative steps with small, focused teams. The project team delivers functionality in small bites or steppingstones. SoAware applica5ons developed through the agile process have three &mes the success rate of the tradi5onal waterfall method and a much lower percentage of &me and cost overruns. Source: Standish Chaos Report 2011
  • 5. 4 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Ken Schwaber is a so/ware developer, product manager and industry consultant. Ken worked with Je Sutherland to formulate the ini?al versions of the Scrum development process.
  • 6. 5 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. The Scaled Agile Framework (SAFe) The Scaled Agile Framework is a proven, publicly-facing framework for applying Lean and Agile prac?ces at enterprise scale The Scaled Agile Framework is well dened in books and on the web Works well with mul5ple teams in IT organiza5ons of 50 or more people Has been scaled to hundreds of teams and thousands of people Synchronizes vision, planning, interdependencies, and delivery of many teams
  • 7. 6 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Scaled Agile Framework Big Picture
  • 8. 7 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. So7ware Agility does not equal Business Agility
  • 9. 8 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. What is Business Agility? Agility is the ability of a business to react quickly to change. Quickly sensing problems and opportunities and Rapidly responding with Solutions that address business and customer needs By efficiently changing processes, responsibilities, rules, data, and technology, To Realize expected business and customer outcomes.
  • 10. 9 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Business and Software Agility Agile Por>olio Management Agile Program Management Agile Team Management Stakeholder Engagement and Collabora&on Business Change Management Business Agility So7ware Agility Stories Sprints Features Releases Epics Outcomes Impacts Stakeholders Discovery and Valida&on Features
  • 11. 10 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Transforming Project Management to Agile
  • 12. 11 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. State of PMOs: It is Time for a Change Most companies with high utilization of PMOs see materially higher IT costs while also failing to deliver projects with higher ROI or better on- time and on-budget performance. (Hackett Group Report, November 2013) Since 2008, the correlated PMO implementation failure rate is over 50% (Gartner Project Manager 2014) 50% of project management offices close within 3 years (Association for Project Management) Only a third of all projects were successfully completed on time and on budget over the past year (Standish Groups CHAOS report) 68% of stakeholders perceive their PMOs to be bureaucratic (2013 Gartner PPM Summit) Only 40% of projects met schedule, budget and quality goals (IBM Change Management Survey of 1,500 execs)
  • 13. 12 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. The Old Way The New Way Managing tasks and adhering to a rigid plan. Managing a value stream focusing on customer engagement and sa5sfac5on. Tight change management and control over amendments to the plan. An5cipa5ng change and accommoda5ng changes as business needs change Breaking down the project into phases, tasks, and steps Breaking down the project into independent components called Features that can be built and delivered quickly. Project success was determined based on whether the project was delivered on 5me and on budget. Project success is determined based on achieving desired business and customer outcomes. Focus was on managing tasks and resources. Focus is on managing collabora5on between team resources and stakeholders to achieve agreed upon objec5ves. Focus is on tracking costs, 5me, and tasks. Focus is on maximizing the delivery of business value more quickly. Transform the PMO from Bureaucracy to Key Enabler of Agile and Business Value
  • 14. 13 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Manage Data Not Paper Collocation of Teams is very important for Agile; however collocation of business stakeholders and users is simply not practical. When agile scales, the amount of interaction between teams and other stakeholders grows exponentially creating significant challenges for organizations. Paper documentation is anti-agile; distribution and version control of paper documents is burdensome and slow. As organizations scale, they will need an automated collaboration and knowledge repository to manage the various enterprise components of Agile such as: o Portfolio and Program Backlogs o Feature discovery and validation information o Conversation between developers and users o Inspect and Adapt information o Impacts of changes in business strategy
  • 15. 14 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Achieved a 55% ROI Increased production throughput by 26% Consolidated applications from 29 to 11 Achieved a total savings of $14 million in 9 months Business Outcomes Project Managers must focus on Delivering Business Outcomes instead of Managing Tasks. The Triple Constraints of On-Time, On-Budget, and On-Scope goes away with Agile.
  • 16. 15 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Business and Software Agility Agile Por>olio Management Agile Program Management Agile Team Management Stakeholder Engagement and Collabora&on Business Change Management Business Agility So7ware Agility Stories Sprints Features Releases Epics Outcomes Impacts Stakeholders Discovery and Valida&on Features
  • 17. 16 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Stakeholder Engagement and Collabora&on Lack of User Involvement is #1 Cause of Project Failure for both Waterfall and Agile Projects
  • 18. 17 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Engaging Stakeholders In Agile, the focus is on Engaging Stakeholders rather than on Managing Stakeholders. Stakeholders are involved at the Portfolio, Program, and Team Level. Stakeholder engagement requires transparen