Agile Groupies 2016 - Meetupfiles.meetup.com/11341602/20160323-Agile Base Patterns.pdf · Charette,...
7
3/24/16 Copyright 2015, Senex Rex LLC 1 http://senexrex.com [email protected] @senexrex Agile Base Patterns: The Agile Way of Doing Dan Greening [email protected] Copyright 2015, S enex Rex LLC. This work is licensed under a Creative Commons A ttribution-NoDerivatives 4.0 International License. 38 • Managing Director: Senex Rex Agile Consulting • Certified Scrum Coach (CSC) • Head coach: Skype, Citrix Online • Startup successes • PhD, computer science, UCLA Dan Greening 37 • Why did lean and agile methodologies arise? • What patterns do they share and why? • Why do organizations fail to sustain agility? • What characteristics do agile managers share? Agenda 36 Toyota • JIT/lean manufacturing • Continuous improvement • Top-down alignment • Collective responsibility • Respect for people Most profitable Toyota vs GM General Motors • Forecast and inventory • Contract-dictated actions • Plant manager autonomy • Role-based responsibility • Class-based association Bankrupt 35 Software Project Failures S tandish Chaos Report, 2011 Charette, “Why software fails,” 2005 Year Com pany Des c r i pt i on Fai l ur ec os t Tot al f or year 2005Huds onBayCo. [ Canada] Pr obl em swi t hi nventorysyste m c ont ri but et o$33. 3m i l i on*l os s . $33, 300, 000 UKI nl andRevenue Sof t war eer r or s c on tri but et o$3. 45bi l i on*t ax-cr edi t over p ayment . $3, 450, 000, 000$3, 483, 300, 000 2004Avi s Eur opePL C[ UK] Ent er pr i s er es our c epl anni ng( ERP) s y ste mcan cel edaf t er $54. 5mi l i on†i s s pent . $54, 500, 000 For dM ot or Co. Pur c has i ngsyst em aba ndonedaf t er depl oym e nt c os ti ngappr oxi m at el y$400 mi l i on. $400, 000, 000 J Sai ns bur yPL C[ UK] Suppl y- chai nm anagem en tsys t emabandon edaf t er depl oyment costi ng$52 7 mi l i on. † $527, 000, 000 Hewl et t- Packar dCo. Pr obl em swi t hERPs ys t em c ont ri but e t o$160m i l i onl os s . $160, 000, 000 AT&TW i r el ess Cus t om er r el at i ons m a nagement ( CRM) upgr adepr ob l ems l eadt or e venuel os s o $100m i l i on. $100, 000, 000$1, 241, 500, 000 2002M c Donal d’ s Cor p. TheI nnovat ei nf or m at i on- pu r c ha si ngsyst emcancel edaf t er $170mi l i oni s s pent . $170, 000, 000 SydneyW at er Cor p. [ Aus t ral i a] Bi l i ng systemcancel edaf t er $33. 2 mi l i on†i s s pent . $33, 200, 000 CI GNACor p. Pr obl em swi t hCRM s ys t em c o nt r i but et o$445 mi l i onl os s . $445, 000, 000 $648, 200, 000 2001Ni keI nc. Pr obl em swi t hs uppl y- chai nm anage m ent syst emcont r i but et o $100m i l i onl os s . $100, 000, 000 Km ar t Cor p. Suppl y- chai nm anagem en tsys t emc anc e l edaf t er $130m i l i oni s s pent . $130, 000, 000 $230, 000, 000 2000Washi ngt on, D. C. Ci t ypayr ol s ys t em abandonedaf t er depl oym e nt c os t i ng$25m i l i on. $25, 000, 000 $25, 000, 000 1999Uni t edW ay Adm i ni strati veprocess i ngsyst em can cel edaf t er $12mi l i oni s s pent . $12, 000, 000 St at eof M i ssi ssi ppi Taxsystemcancel edaf t er $11. 2mi l i oni s s pent ; s t at er ecei ves $185m i l i on dam ages. $196, 200, 000 Her s heyFoods Cor p. Pr obl em swi t hERPs ys t em c ont ri but e t o$151m i l i onl os s . $151, 000, 000 $359, 200, 000 1998Snap- onI nc . Pr obl em swi t hor der- ent r ysys t emcont r i but et o r evenue l os s of $50m i l i on. $50, 000, 000 $50, 000, 000 1997U. S. I nt er nal RevenueSer vi ce Taxm oder ni zati onef f or tcan cel edaf t er $4bi l i oni s s pent . $4, 000, 000, 000 St at eof W as hi ngt on Depar t m ent of M ot or Vehi cl e( DMV) sys t emcanc el edaf t e r $40m i l i oni s s pent . $40, 000, 000 Oxf or dHeal t hPl ansI nc. Bi l i ng andcl ai m s s ys t em pr obl em s c on tri but et oquar t er l yl oss;st ockpl ummet s l eadi ngt o$3. 4bi l i on l os s i ncor por at eval ue. $3, 400, 000, 000$7, 440, 000, 000 1996Ar i anespace[ Fr ance] Sof t war es pec i fi cati onanddes i gner or scause $350m i l i onAr i ane5r ocket t o expl ode. $350, 000, 000 FoxM eyer Dr ugCo. $40m i l i on ERPs ys t em abandonedaf t er depl oym e nt , f or c i ngcom p anyi nt o bankr upt cy. $40, 000, 000 $390, 000, 000 1995Tor ont oSt ockExchang e[ Cana da El ec t r oni ctradi ngs ys t emc anc e l edaf t e r $25. 5m i l i on**i s s pent . $25, 500, 000 $25, 500, 000 1994U. S. Feder al Avi at i onAdmi ni strat i o Advanc edAut om at i onSyst emcancel edaf t er $2. 6bi l i oni s s pent . $2, 600, 000, 000 St at eof Cal i f or ni a DM Vs ys t em c anc el edaf t er $44 mi l i oni s s pent . $44, 000, 000 Chem i cal Bank Sof t war eer r or c aus es at ot al of $15mi l i ont obededuc t edf r om100000cust ome r accounts. $15, 000, 000$2, 659, 000, 000 1993LondonSt ockExchange[ UK] Taurusstocksett l em ent syst emcancel edaf t er $600m i l i on**i s s pent . $600, 000, 000 Al s t at eI ns ur anc eCo. Offi ceaut om at i onsyst emabandoned afte r depl oyment , cost i ng$130m i l i on. $130, 000, 000 L ondonAmbul anceServi ce[ UK] Di s pat c hs ys t emc anc el edi n1990at $11. 25 mi l i on**; s econdat empt aba ndoned af t er depl oym ent , cost i ng$15m i l i on. ** $26, 250, 000 Gr eyhoundL i nes I nc. Bus r es er vat i onsyste mcr ashes r epea t edl yuponi nt r oduc t i on, c ont r i but i ngt o r evenuel os s of $61m i l i on. $61, 000, 000 $817, 250, 000 1992Budget Rent- A- Car , Hi l t onHot el s Marri ot t I nt er nat i ona l , andAM R [ Am er i canAi rl i nes ] Tr avel reservati onsyst emcancel edaf t er $165m i l i oni s s pent . $165, 000, 000 $165, 000, 000 34 Agile organizations can • Sense • Adapt • Create faster than chaotic change Why do we care? Agility Defined 33
Transcript of Agile Groupies 2016 - Meetupfiles.meetup.com/11341602/20160323-Agile Base Patterns.pdf · Charette,...
3/24/16
Copyright 2015, Senex Rex LLC 1
http://[email protected]
@senexrex
Agile Base Patterns:The Agile Way of DoingDan Greening [email protected]
Copyright 2015, Senex Rex LLC. This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License. 38
• Managing Director: Senex Rex Agile Consulting
• Certified Scrum Coach (CSC)
• Head coach: Skype, Citrix Online• Startup successes
• PhD, computer science, UCLA
Dan Greening
37
• Why did lean and agile methodologies arise?• What patterns do they share and why?• Why do organizations fail to sustain agility?• What characteristics do agile managers share?
Agenda
36
Toyota• JIT/lean manufacturing• Continuous improvement• Top-down alignment• Collective responsibility• Respect for people
Most profitable
Toyota vs GM
General Motors• Forecast and inventory• Contract-dictated actions• Plant manager autonomy• Role-based responsibility• Class-based association
Bankrupt35
Software Project Failures
Standish Chaos Report, 2011Charette, “Why software fails,” 2005
Year Com pany Descr ipt ion Failur ecost Tot alf or year2005HudsonBayCo. [ Canada] Pr oblem swit hinvent or ysyst em contr ibutet o$33.3m illion*loss . $33,300,000
UKI nlandRevenue Sof t war eer r or s cont r ibutet o$3.45billion*t ax- credit over payment . $3,450,000,000$3,483,300,0002004Avis Eur opePLC[ UK] Ent er pr iser esour ceplanning( ERP) syst em canceledaf ter $54.5million†is spent . $54,500,000
For dMot or Co. Pur chas ingsyst em abandonedaft erdeploym ent cost ingapproxim ately$400m illion.
$400,000,000
J Sainsbur yPLC[ UK] Supply- chainm anagem ent syst emabandonedaf ter deploymentcost ing$527m illion. †
$527,000,000
Hewlet t - Packar dCo. Pr oblem swit hERPsyst em contr ibut et o$160m illionloss . $160,000,000AT&TWir eless Cust om er r elat ions m anagement( CRM) upgradepr oblemsleadt or evenueloss of
$100m illion.$100,000,000$1,241,500,000
2002McDonald’s Cor p. TheI nnovat einf orm ation- pur chas ingsystemcanceledaft er$170millionis spent . $170,000,000SydneyWat er Cor p.[ Austr alia] Billing syst em canceledaf t er$33. 2m illion†is spent . $33,200,000CI GNACor p. Pr oblem swit hCRM syst em cont ribut et o$445m illionloss . $445,000,000 $648,200,000
2001NikeI nc. Pr oblem swit hsupply- chainm anagem entsystemcont ribut et o$100m illionloss . $100,000,000Km ar t Cor p. Supply- chainm anagem ent syst emcanceledaf t er$130m illionis spent . $130,000,000 $230,000,000
2000Washingt on,D. C. Cit ypayr ollsys t em abandonedaft erdeploym ent costing$25m illion. $25,000,000 $25,000,0001999Unit edWay Adm inis t r at ivepr ocessingsystem canceledaf ter $12millionis spent . $12,000,000
St at eof M iss iss ippi Taxsyst em canceledaft er$11. 2millionis spent ; s t ater eceives$185m illiondam ages .
$196,200,000
Her sheyFoods Cor p. Pr oblem swit hERPsyst em contr ibut et o$151m illionloss . $151,000,000 $359,200,0001998Snap- onI nc. Pr oblem swit hor der - ent rysyst emcont ribut et or evenueloss of $50m illion. $50,000,000 $50,000,0001997U. S. I nt er nalRevenueService Taxm oder nizat ionef f ort canceledaf ter $4billionis spent . $4,000,000,000
St at eof Washingt on Depar tm ent of Motor Vehicle( DMV) syst emcanceledaf t er $40m illionis spent . $40,000,000Oxf or dHealt hPlans I nc. Billing andclaim s syst em pr oblem scont r ibutet oquart erlyloss ; s tockplummets ,
leadingt o$3. 4billion loss incor por at evalue.$3,400,000,000$7,440,000,000
1996Ar ianespace[ Fr ance] Sof t war especif icat ionanddes ignerr ors cause$350m illionAr iane5r ocket t oexplode.
$350,000,000
FoxMeyer Dr ugCo. $40m illion ERPsyst em abandonedaft erdeploym ent ,f or cingcom panyint obankr upt cy.
$40,000,000 $390,000,000
1995Tor ont oSt ockExchange[ Canada]Elect r onict r adingsyst emcanceledaf t er $25.5m illion**is spent . $25,500,000 $25,500,0001994U. S. Feder alAviat ionAdminis t r ationAdvancedAut om at ionSystemcanceledaft er$2. 6billionis spent . $2,600,000,000
St at eof Calif or nia DMVsyst em canceledaf ter $44m illionis spent . $44,000,000Chem icalBank Sof t war eer r or causes at otalof $15milliont obededuct edf rom100000customer
account s .$15,000,000$2,659,000,000
1993LondonSt ockExchange[ UK] Taur us s t ockset tlem entsystemcanceledaft er$600m illion**is spent . $600,000,000Alls t at eI nsur anceCo. Of f iceaut om at ionsystemabandonedaf t er deployment ,costing$130m illion. $130,000,000LondonAmbulanceSer vice[ UK] Dispat chsyst emcanceledin1990at $11. 25million**; secondatt empt abandoned
af t er deploym ent ,costing$15m illion. **$26,250,000
Gr eyhoundLines I nc. Bus r eser vat ionsyst em crashesr epeat edlyuponint roduction,cont r ibut ingtor evenueloss of $61m illion.
$61,000,000 $817,250,000
1992Budget Rent - A- Car ,Hilt onHot els ,Mar r iot t I nt ernat ional,andAMR[ Am er icanAir lines ]
Tr avelr eser vat ionsystemcanceledaft er$165m illionis spent . $165,000,000 $165,000,000
34
Agile organizations can• Sense• Adapt• Createfaster than chaotic change
Why do we care?
Agility Defined
33
3/24/16
Copyright 2015, Senex Rex LLC 2
Chaos Creates Opportunities
Everyone’s ability to predict the future degrades exponentially with timeSo create a company that exploits this chaos better than competitors
32
• Economics drive everything we do• Economies produce value with limited resources
• Forces• Success metrics lag the work• Risk is rarely measured• Creativity generates variation
Pattern 1: Fixed-budget creativity often fails…
31
• Identify top-level goals• Align everyone else
• Find leading metrics• Departments have their
own
…therefore, measure economic progress
Source: http://systemsthinking.org30
• Balance metrics
• Evolve metrics
Avoid perversity
Source: http://systems-thinking.org29
• Coherent company• Mission, vision and goals• Employee, team behavior
• If economy unchanging• We react• We learn• We forecast
Result (measure economic progress)
28
• Measure economic progress• Proactively experiment to improve• Limit work in process• Embrace collective responsibility• Solve systemic problems
Agile Base Patterns: Are we agile?
27
3/24/16
Copyright 2015, Senex Rex LLC 3
• Complacency lulls us• … we don’t hear a train
Pattern 2: Reacting is not enough …
26
• Experiment• Brainstorm• Test a hypothesis• Control the experiment
• Evolve, but …• test revolutionary theories too
• Beware variability control• Can kill creativity
… therefore, proactively experiment
25
Scrum Retrospective = Experiment
24
Learn more: Seek 50% Invalidation
100% invalidated 100% validated
Where we learn the most
23
“Stretch goals” “Agile is for the team”
• Hyperproductive teams• 40% higher quality• 100% faster production
• Jakobsen and Sutherland, “Scrum and CMMI: Going from Good to Great,” 2009 Agile Conference, IEEE.
• Organizations “disrupt themselves”
Result (Proactively Experiment)
22
• Measure economic progress• Proactively experiment to improve• Limit work in process• Embrace collective responsibility• Solve systemic problems
Agile Base Patterns: Are we agile?
21
3/24/16
Copyright 2015, Senex Rex LLC 4
• We feel better if everyone is busy• Why can’t they get stuff done on time?
Pattern 3: Utilization creates delay…
20
Congestion
19
Creative focus• We can remember
≤ 7±2 concepts
Cognition and Creative Focus
Source: Stanford University18
• Geometric Backlogs help make tradeoffs
• Incremental worktests theories faster
…therefore, limit work-in-process
17
Limit WIP: Incremental Production
16
• Rapidly deliver small increments of value• Possibility of rapid feedback• Cancellable work (sunk cost is low)• Learn faster than chaotic economy changes
• Manage # of options to match cognitive limits
Result (Limit WIP)
15
3/24/16
Copyright 2015, Senex Rex LLC 5
• Measure economic progress• Proactively experiment to improve• Limit work in process• Embrace collective responsibility• Solve systemic problems
Agile Base Patterns: Are we agile?
14
4: People create delay by avoiding responsibility…
Source: Christopher Avery
Tim
eNo problems get solved until we take responsibility
13
• Provide people with…• autonomy, understanding, authority• Information radiators
• Teach Responsibility Process• Seek faster responsibility
…therefore, embrace collective responsibility
Wirksworth Town Cleanup 200912
• Greater elasticity
• In-team • Collaborative problem solving• Increased teaching and learning
Result (collective responsibility)
11
• Measure economic progress• Proactively experiment to improve• Limit work in process• Embrace collective responsibility• Solve systemic problems
Agile Base Patterns: Are we agile?
10
• Dependencies • Make us wait• Make us test more
• Handoff interference• Even more delays
5: External factors limit our agility…
9
3/24/16
Copyright 2015, Senex Rex LLC 6
• Convert bosses to be agile• Build collaborative teams of peer managers
• Manage strategic work with agile• hiring, comp, review, M&A, etc.
• Ritualize and celebrate problem solving
• Analyze and change structural systems• Lean Kanban, ToC, Dependency Mapping, A3
…therefore, solve systemic problems
8Merge and/or Colocate to Speed Up
8
7
6
5
4
3
2
1
9
7
• Culture of problem solving• Cross-department collaboration• Faster organization
Result (solve systemic problems)
6
• Measure economic progress• Proactively experiment to improve• Limit work in process• Embrace collective responsibility• Solve systemic problems
Agile Base Patterns: Are we agile?
5
Agile Base Patterns Agility LostMeasure progress Stopped measuring (agile for us, stretch goals)Proactively experiment Discouraged experimentation (risk aversion)Limit work in process No automation. Took on too much workCollective responsibility Assigned responsibilitySolve systemic problems High territoriality
Why do organizations lose agility?
Misalignment of organizational and individual goals
4
What do agile managers do?
Agile Base Patterns Agile ManagersMeasure progress Measure department’s service to customerProactively experiment Create low-risk experimentsLimit work in process Limit departmental work in processCollective responsibility Embrace organizational responsibilitySolve systemic problems Teach, mentor, coach their skills
Top-Down Agile beats Bottom-UpPeople working for an agile manager must become and sustain agility, to realize the manager’s personal goals
3
3/24/16
Copyright 2015, Senex Rex LLC 7
• http://senexrex.com/agile-managers/• Greening, “Agile Base Patterns in the Agile Canon,” HICSS 2016• Greening, “Release Duration and Enterprise Agility,” HICSS 2013• Greening, “Agile Enterprise Metrics,” HICSS 2015• http://senexrex.com/category/agile-base-patterns/• Alexander, A Pattern Language, 1977
References: Agile Managers
2
http://senexrex.com/blog
Dan Greening+1(415)[email protected]
Sustained Agility
Services:• Consultation• Coaching• Training
1
![Manifesto for Agilefiles.meetup.com/11341602/201309_P1_Agile_Groupies... · From wikipedia- Agile Manifesto In February 2001, 17 software developers[6] met at theSnowbird, Utah, resort,](https://static.fdocuments.in/doc/165x107/5f4d3476347c3c040e06c1c2/manifesto-for-from-wikipedia-agile-manifesto-in-february-2001-17-software-developers6.jpg)
