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Agile Consulting Services
ErasingtheArtificialBoundariesbetween“IT”and“TheBusiness”
May2016,AgileMaine
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Agile Consulting Services
Agile Experts• Agilepracticeestablishedin2008• Coreteamcomprisedofindustryexperts• ServingentireUSwithinternationalcoverageasneeded• ScalableAgiletransformationapproach• EnterprisewideAgilecurriculum• Vastcoachingnetworkwithlocalcoverageinmostplaces• 150currentlyonengagement
Agile Offerings• Coaching– Executive, Program,Team, Technical• Training– Leadership,Technical, CSM,CSPO,CST,SAFe• Advisory– Industrybenchmarking&Consulting
Vital Statistics• 25yearoldprivatelyheldcompany• $200MillioninRevenue• 14offices• 1,200consultants
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Suggestion:Writethingsdownfortheexercises.It
justworksbetter.
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Agile Consulting ServicesOverview
• Whyisitimportanttoalignonthemeasurementsofsuccess?• ShouldITberunlikeanindependentprovideroftechnologyservices?
• Howdowordsshapehowyouthinkandbehave?Whois“thebusiness”?
• Whyisthemostimportantthing– yourvaluestream– oftenunmanaged?
• Nowwhat?
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Agile Consulting ServicesTryitNow
• Take3minutesandwritedownhowyourgroupmeasuressuccess
• We’llcomebacktothisinafewminutes
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OverallGoalsoftheOrganization
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Operations
InformationTechnology Sales
Marketing Admin
Intheorythegoalsarestillthegoals,butinpractice….
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Mission Deliverworldclass ITservicessupportingthesuccess ofourbusiness
Goals Deliverprojectson-time, onbudget,meeting allrequirements
Providehighlyavailable,high-performingsystems thatmeetourusers’needs
Providerapidandeffectiveresponse toissues andquestionsPreventsecurity incidentsfromoccurring
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Agile Consulting ServicesTryitNow
• Writedown:– Whatdoyouthinkofthismissionandgoals?– What,ifanything,doyouthinkismissing?
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SalesCustomerSatisfactionNewProductIntroductionsGrossMargin
AverageSpeedofAnswerCostPerCallAccountConversionsTimetoFillOpenPositions
SystemAvailabilityOnTimeOnBudgetSecurityIncidents
?
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Agile Consulting Services
SUPPLYCO
HomeMedicalInc.
AntrimUniversity
BigTravel
Customers
SUPPLYCO
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Agile Consulting Services
SUPPLYCOGoals
BigTravelGoals
SUPPLYCOandBigTravelHaveDifferentGoals
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IT MART
BusinessLineA
BusinessLineB
BusinessLineC
Customers
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IToftencomplainsaboutnot”havingaseatatthetable”forproductvisioningandroad-mapping.Lackofsharedgoalsis
onereasonwhytheywouldn’t.
Youdon’thavethesamegoals Ihave!
Butthings likeourtechnologyroadmap
areimportant!
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Output,Outcome, Impact– awaytothinkaboutsuccessmeasures
FromJeffPatton,AgileProductDesign
StartingContext
GreatIdea• Features• Capabilities
Output
Impact
OpportunityIssue
Outcome
IterativeDevelopment
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Agile Consulting ServicesShowingtheConnection
HigherProfitability
GreaterCustomerSatisfaction
EasierfortheCustomer
FewercallstotheCallCenter
LowerCallCenterCosts
Output Outcome Impact
NewCustomerSelf-ServiceFeatures
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Agile Consulting ServicesMovingtoMoreSharedGoals
ITGoals
EnterpriseGoals
TypicallyOutcome,ImpactMeasures
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EnterpriseKPI1EnterpriseKPI2EnterpriseKPI3EnterpriseKPI4
EnterpriseKPI1EnterpriseKPI2EnterpriseKPI3
DepartmentKPI1DepartmentKPI2
EnterpriseKPI1EnterpriseKPI2EnterpriseKPI4
DepartmentKPI1DepartmentKPI2
CascadesomeOutcome,ImpactKPIsacrosstheorganization
KPI=KeyPerformanceIndicator
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Agile Consulting ServicesTryitNow
• Lookatthewaysyourorganizationmeasuressuccessyouwrotedownearlier– AretheseOutput,OutcomeorImpact-based?– Aretheydepartment-focusedorenterprise-focused
• Writedownthreeexamplesofgoalsthatcouldbesharedacrossyourorganization
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Agile Consulting Services
CompletedUserStories
Value
AttheTeamLevel
Valueisrealizedwhen:• Thecodehasshipped• Thecodeisused• Theuserrealizestheintendedoutcome• Theorganizationrealizestheintendedimpact
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Output-OnlyMeasures• Velocity• Quality• Technical Debt
ContinueOutputMeasures• Velocity• Quality• Technical Debt
AddOutcomeMeasures(examples)• Migrationofissue
resolution fromcallcentertoweb
• Increasedconversionfromshopperstobuyers
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Agile Consulting ServicesCoreIdeas
• Alignonimpactandoutcome-basedKPIsacrosstheorganization– ThesameKPIs,notsimilarones– ITshouldhaveaccountability forbusinessoutcomes
• Tieteamperformancegoalstooutcomes,impact,notonlyoutput
Startingsimpleisfine.Haveonesingleteamaligntoimpactand/oroutcomemeasures
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WhatarethedownsidestothemodelofCustomer/SupplierforIT?
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Agile Consulting Services
SUPPLYCO
HomeMedicalInc.
AntrimUniversity
BigTravel
Customers
SUPPLYCO
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BANKRUPT(orsignificant business issues)
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Afeeforservice
provider?
Anintegralpartof
organizationalsuccess??
WhatistheroleofIT?
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Anintegralpartoforganizational
success.(Sowhydoesthedivisionbetween“IT”
and“TheBusiness”persist?)
Ifyou’vebeeninanagileorganization,thisistheonlyoptionthatmakessense
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Language SocialRoles Practices
Affect
HowOrganizationsWorkTogether
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Assertion:Wordsshapeour“reality”
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Agile Consulting ServicesTryitNow
• Doyouusethephrase“TheBusiness”1 inyourorganization?• Ifyes,whatdrawbacksdoyouseeinusingthatterm?
1 ThisquestionwasoriginallyposedtomebyMauriceHeffernan. Asimple questionwithalottoit.
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Whenyouwalkintoastoretobuysomething,whenyougotoarestaurant,thebank,thepostoffice,youmayfindyourselfslippingintopre-establishedsocialroles.Youbecomeacustomerandspeakandactassuch.Andyoumaybetreatedbythesalespersonorwaiter,whoisalsoplayingarole,asacustomer.Arangeofconditionedpatternsofbehaviorcomeintoeffectbetweentwohumanbeingsthatdeterminethenatureoftheinteraction.Insteadofhumanbeings,conceptualmentalimagesareinteractingwitheachother.Themoreidentifiedpeoplearewiththeirrespectiveroles,themoreinauthentictherelationshipsbecome.
Tolle,Eckhart(2006-08-29).ANewEarth(Oprah#61):AwakeningtoYourLife'sPurpose(p.93).PenguinPublishingGroup.KindleEdition.
““
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Agile Consulting Services
Whenabusinessgetsyourorderwrong,howdoyouinteractwiththecustomer
serviceagent?Doyouinteractthesamewaywithyourmanager?
Yourbestfriend?
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IT “Customer”
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Agile Consulting ServicesTryitNow
• IfITisa“supplier”andthebusinesslinestaffare“customers”,whatbehaviorsmightyousee?Doyousee?
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Agile Consulting ServicesProblematicPractices
• Sortingout“problems”withinITbehindcloseddoors• Developingstrategiesandplansinisolation• Conductingannual”CustomerSatisfaction”surveys• Having“internalfunding”withinITwithouttransparencyordiscussionforhowitistobeused
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Agile Consulting ServicesCoreIdeas
• Haveadialogue(attheteamlevel,organizationlevel)aboutanyissuesyou’veseenfromtheseparationbetweenITandthebusinesslinestheysupport
• Consciouslyadoptlanguageofpartnership(e.g. “team”)insteadofthelanguageofdivision(”supplier”,“theBusiness”,“Customer”)
• Adoptcollaborative,jointportfolioplanning• Eliminateunidirectional“CustomerSatisfaction
Surveys”,insteaduseretrospectivesatmultiplelevelsoftheorganization
• Watchyourownbehavior– seewhereyoudefaulttopre-establishedroles
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Agile Consulting ServicesTryitNow
• Whoinyourorganizationisresponsibleforend-to-endproductdevelopment:ConcepttoCash1
1 Poppendieck,MaryandTom,ImplementingLeanSoftwareDevelopment:FromConcepttoCash,AddisonWesley,2007
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“… the work that creates results for customers is broken into pieces and scattered across numerous departments and units. In these companies, workers, managers and departments focus on each of the steps that would lead to creating results for customers, yet no one focuses on all the steps together as a unit... These companies suffer from a crisis of process.”
Michael Hammer, The Agenda
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Agile Consulting ServicesCaseStudy:SoftwareDeliverytoDesktops
• Softwaredistributionforabout35,000desktops• End-to-endprocesssplitacrossmultiplegroups• Badqualitycouldleadtodisasters(e.g.allcallcenteremployeesunabletohandlecalls)
• Whenproblemsarosewelookedto– Assignblametoothers– Demonstrateourownlackofblame
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Agile Consulting Services
TheFunctionalSiloshadGoals,Managers,StaffbutnooneOwnedtheWhole,End-to-End
Marketing
Product
Development
Testing
Manufacturing
Sales
Support
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Agile Consulting ServicesTheTransformation
• Consultantworkedwithustoputtogethera”processteam”witha“processowner”tomanageend-to-enddelivery
• Theindividualsontheteamwereresponsibleforthesuccessofthewhole,notjusttheirparts– Weweresurprisedtofindouthowmuchtroublewecauseeachotherunintentionally
• Themeasurementsofsuccessnowfocusedonthewholedeliveryofvalue
• Ifdepartment-level“improvements”mightaffectapartnerintheprocess,wedidn’timplementthemwithouttalking
• Thingsgotdramaticallybetter
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Agile Consulting Services
Marketing
Product
Development
Testing
Manufacturing
Sales
Support
Teamalignedongoals,improvementapproach
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Agile Consulting ServicesAgileTransformationareOftenLimited
• IT-Driven• Notfullyend-to-end(e.g.portfoliomanagement,valuedeliverymeasurement,KPIs)
• Overallprocessesnotowned,ormanaged– Optimizedwithinsilos
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WeareintheprocessofmovingtoAgile
Wearecontinuallyinspectingandimprovinghowwedelivervalue.Gettingbetteratagile
practicesisacriticalpartofthatongoingimprovement
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Agile Consulting ServicesCoreIdeas
• Considerhavingend-to-endprocessownershipteamsforkeyprocesses(e.g.“ConcepttoCash”)
• Measureandimprovethewhole,notjusttheparts.
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Agile Consulting ServicesTryitNow
• Writedownalistofspecificactionsyouplantotakeduringthenextweekanmonth
• Ifyoudon’tplananyactions,that’sfine
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Agile Consulting ServicesContactMeWithanyComments,Questions
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Agile Consulting Services
• Thegoalsoftheorganizationshouldn’tbelostwhenyoubreak theorganizationintoparts,butitoftenis• Agileisaboutdeliveringvalue,butthevaluestreamcangetlostintheorganizationalsplit• Exercise:Nameyourvaluestreams• Whatisvalue?Output,Outcome,Impact• Itispossibletomanagetothewholeinsteadoftheparts,commonobjectivesareawaytostart.• Fragmentationleadstoun-ownedvaluestreams
– QuotefromMichaelHammer– Whatisavaluestream?
• Itispossibletoworktowardsthewholewithprocessteams– Whatarethey?– Howdotheywork?– Whyaretheychallenging
• TheinventionofITasaserviceprovider,andwhythatisaproblem.– Customer/Provider– automaticroles– Exercise:Customer/provider– Upstairs/downstairsrole
• Maymakesensefortransactionalwork tohaveservicesatisfactionsurveys,butproduct developmentisacombined teameffort• Whatarealternativestoannualcustomersatisfactionsurveys?• Wordsmatter“IT”and“TheBusiness”a• Concretesteps:
– Alignonoutcomeandimpactfocusedgoals,andhavethosetranscendorganizationalboundaries– Activelymanageyourvaluestreams– Movefrom“customersatisfactionsurveys”to“servicesatisfactionsurveys”fortransactionalservices(e.g.fixaPC,provision aphone,provideVPNaccess)– Eliminatesurveysforcollaborative,cross-organizationalwork– Makeuseofretrospectivesatthevalue-streamlevel