Business agility in a changing world · Business agility in a changing world October 2016 Dave...
Transcript of Business agility in a changing world · Business agility in a changing world October 2016 Dave...
Business agility in a changing world
October 2016Dave White and Sébastien BonicelAgile Coaches @ EON
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540,000 tons of livestock manure per year into21 million cubic metres of biomethane
The Power of Poo – Denmark’s largest biogas plant
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Transforming E.ON into an agile Business is a journey of a thousand steps,
but it all starts with the first one.
Revolution through evolution
Small Agile Tests and Pilots
Run someAgile-Like Projects
Run someReal-Agile Projects
Continuous Delivery@ portfolio Level
Scaled Agile Framework(AM – Enh. – Roadmap)
2011Draft Scrum-like
framework developed
UK trialling training approach
2010First executive sponsor
identified
First agile community in Berlin
Self-contained Pilot projects in
Germany and UK
2013Spain goes Scrum
25% of projects using agile-like framework
Engagement with local agile coaches
Programme level agile delivery
2014New EON vision
DevOps initiative starts
First scaled agile project across countries
Test automation starts
Initiate Portfolio value-driven
work
2015Remodelling supplier contracts
Reworking internal processes to Lean approach
Upskilling agile coaches
Culture change initiative
The most Innovative (100Koll), Complex and
Business Disruptive initiatives run Agile.
Power in numbers – starting small fires
2010 2011 2012 2013 2014 2015
TRAINING AND COACHING
10 25 125 220 350 500+
2016 – an explosion of Agility
Culture
Organisation
Practices
Leadership
Agile Management
Traditional Management
• Focuses on 100% utilisation of ’my resources’
• Recruit unique skillsets resources
• Micro-manages individuals/teams• Wants to be part of the team• Motivates individuals
• ”Are we on schedule and on budget?”
• Costs, quality, time as KPIs • Decisions by committee
• Organisational change is a consequence
• Manager of others’s thoughts• Improve when needed
Agile Management
• Focuses on enabling the right people to increase throughput
• Recruits T-shape people
• Enables the team to becomeautonomous
• Is the protector of the team• Motivates the team
• “What is the best investment now?”
• Value, Quality and Flow as KPIs • Decisions by exceptions
• Organisational change is part ofthe lean thinking
• Thought leader• Continuously improve/life long
learning
Practices (& tools)
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Keep VPA at Portfolio level to
drive Flexibility
… so we group Projects onto Programs to
realize Business Cases
Setup a series of mixed business and IT
Communities(e.g. Business Analysts)
lead by competence on the subjects
…and This drops walls between IT and business with
Shared Responsibilities
… here we prioritizebusiness needs across programs through a
Master Backlog
…then we dispatch
Priorities to eTribes!
…eTribes are teams of subteams working on E2Ebusiness domains…
…it’s a mixed team of business and IT and
acting as Agile Start-Ups
…ultimately serving more programs and acting as
Business Start-Ups
Delivery Approach
Scrum teams
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Product or Programme Teams
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Investment themes drive programmes or products
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KPIs: Cycle Time and Value
Scaled to a Business Unit
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Decentralised, collaborative investment/budgeting
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BA/Architect Communities spot & resolve dependencies & conflicts at Epic and Story level
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Use appropriate planning horizons for flexibility
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Business agility examples
100Koll (SW)
Virtual Power Plant (DE)
100Koll – Internet of things @
Market Megatrends• New Social Structures• The rise of Individuals• On the Move • Intelligence & Innovation• Global Connectedness• Environmentalism• Shift in Resource Availability• Economic Power Shift
Technology Trends
• Cloud• Digitalization• Agility• Big Data• Open Source• Smart World and IoT• Near-shore• Etc.
Internal Forces
• New Strategy • New products andBusiness Models
• Re-organisation (2014-2015)
… the Unexpected
The things that we do not know we don’t know…
Which way Next?
A new portfolio of products
100Koll – Internet of things @
A trial
Single product, one proposition, 6 months
project
Assumptions
• Customers are interested
• Customer have a need• EON will be trusted in this new market for us
• Price level is right• EON can do this (brand new everything)
Post-launch learnings
• Niche group of customers are interested
• Product too complex• Price ok• EON cannot do this on their own
• Finding good partners is hard
• Trial was too long
Iteration 2
Single product, 2 propositions, multiple
devices, 5 months project
Assumptions
• Include more mobile devices will make the proposition more versatile
• 2 Price levels gives choice
• New Partner will make it easier
• The Business proposition is strategic but not aggressivePost-launch learnings
• We have not applied the learnings from the Iteration 1
• Product still too complex
• Customers do want it• EON brand is improved by this portfolio
• Start smaller, think big
Iteration 3
Bundle 100Koll with Electricity, radical e2e business impacts, 6
month project
Assumptions
• Multiple business areas will work using agile principles
• EON will unite in this project
• Customers do want the proposition (target groups are correct)
• Price is right
Post-launch learnings
• OMG! This is hard• Yes, customers do want this
• Target groups are right• Build up volume over time
• Do not overestimate business value but validate it asap
The Virtual Power Plant
• Aggregates decentral energy producers and consumers• Stabilizes the grid via intelligent steering of the assets
Control & Aggregation IT
Flexibility/VPP business supports its customers in creating value out of the flexibility of their assets
Accessible Value Pools
VPP Business
Flexibility sources
Make assets available & flexible Manage Flexibility Market Accessibility
On site generation
Controllable loads
Energy storage
Flexibility sources
Aggregated operation
Selling energy and/or capacity
Providing reserve
Helping TSOs/DSOs
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Kicked off full Agile “SCRUM” work with business and developers in 2015 : a fast and dynamic software delivery and
integration into the E.ON landscape the set up of stable processes (for asset
connection, prequalification and monitoring) a customer centric development (from sales to
operations) resulting in the signing of numerous customers
SCRUM team @ ECT in Essen
Foundation for processing of real-time data:Used by companies like LinkedIn, Uber, Facebook
The in-house agile developed software positions E.ON as pioneer in customer-centric energy services
Set-up across business & IT Technology
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Case study: RW Silicium
15 MW“Demand Response” up to
ECT solution Identify demand response capacity of the furnaces,
and connect them to ECT’s VPP engine Pre-qualify capacity Market demand response capacity to TSO and
dispatch loads whenever requested
CustomerGerman producer of metallurgical silicon operating four electric arc furnaces with a nominal capacity of56 MW
29 MWsecondary balancing power
ECT achievementsMonetize RW Silicium’scontrollable loads.
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It’s SLOW and FRUSTRATING unless you have a really active senior sponsor
The biggest sceptics become the strongest advocates but you need facts and courage to convince them (Ted ‘lone Nut’)
Don’t flog a dead horse. There are plenty who want to run. Pick your battles
Training is not enough. You need hands-on coaching
What we do well
Bring the leaders in the pictureto remove obstacles
Developing the vision (the EON agile manifesto)
Starting small fires and bringing them together
Finding passionate people and giving them space to push. Grass roots rock.
Changing the core KPIs toforce new habits (eg valuefocus)
Procurement contracts tofocus on value not just cost
Use system thinking toencourage multi-layercollaboration
IT is still seen as a service provider, not a partner. Openthe walls. Become an innovator
What we will do next
”No methodology is a substitute for thinking”- Barry Evans
Take all the great ideas, think, experiment and create YOUR framework