WHY AGILE IS FAILINGIN LARGE ENTERPRISES

WHY AGILE IS FAILINGIN LARGE ENTERPRISES

…and what you can do about it

mike@leadingagile.com

404-312-1471

www.leadingagile.com

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facebook.com/leadingagile

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MIKE COTTMEYER

A BRIEF HISTORICAL PERSPECTIVE

1943

1950-1960s

1985

1990

1995

1996

1997

1998

2000

2001

USAF&NASAX-15hypersonicjetIterativeIncrementalDelivery

HirotakaTakeuchi& IkujiroNonakaTheNewNewProductDevelopmentGame

1990 - Sutherland & SchwaberScrum Framework

DSDNConsortiumDynamic SystemDevelopmentMethod

1996 - Beck, Cunningham, JeffriesExtreme Programming

Jeff de LucaFeature Driven Development

Alistair CockburnCrystal Methodologies

Robert CharetteLean Development

THEAGILE

MANIFESTO

Taiichi Ohno Toyota Production SystemKanban

Hardware Software

Individuals & interactions Processes & toolsover

Working software Comprehensive documentationover

Customer collaboration Contract negotiationover

Responding to change Following a planover

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

Satisfy the Customer

Welcome Change

Deliver Frequently

Collaborate Daily

Support & Trust Motivated

Teams

Promote Face-to-Face Conversations

Deliver Working Software

Promote Sustainable

Pace

Promote Technical

Excellence

Maximize Through Simplicity

Have Self-Organized

Teams

Reflect & Adjust

Regularly

Source: www.agilemanifesto.org

MANIFESTO PRINCIPLES

BELIEFS ABOUT AGILE & TRANSFORMATION

Culture

PracticesStructure

BELIEFS…

Culture

PracticesStructure

• Focused on changing hearts and minds

• Focused on being agile rather than doing agile

• Focused on values and principles

CULTURE DRIVEN

Culture

PracticesStructure

• 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

Practices

StructureCulture

• Focused on the things that you do

• Focused on roles, ceremonies, and artifacts

• Can be management driven or technically driven

PRACTICES DRIVEN

Practices

StructureCulture

• 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

Structure

CulturePractices

• Focused on forming teams and governing the flow of value

• Focused on aligning the organization first

STRUCTURE DRIVEN

Structure

CulturePractices

• 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

Culture

PracticesStructure

... all three are essential, but where you start is also essential…

WHERE TO START?

WHAT DO WE MEANBY STRUCTURE?

Backlog

Backlog

Backlog

Backlog

Backlogs

Teams

Backlog

Backlog

Backlog

Backlog

Backlogs Teams

Teams

Backlog

Backlog

Backlog

Backlog

WorkingTested

Software

Backlogs Teams Working Tested Software

Teams

Backlog

Backlog

Backlog

Backlog

WorkingTested

Software

• INVEST• CCC• Small enough

for the team to develop in a day or so

• Everything and everyone necessary to deliver

• Meets acceptance criteria

• No known defects

• No technical debt

What Do I Mean?

Backlogs Teams Working Tested Software

Teams

Backlog

Backlog

Backlog

Backlog

WorkingTested

Software

• INVEST• CCC• Small enough

for the team to develop in a day or so

• Everything and everyone necessary to deliver

• Meets acceptance criteria

• No known defects

• No technical debt

What Do I Mean?

Backlogs Teams Working Tested Software

Teams

Backlog

Backlog

Backlog

Backlog

WorkingTested

Software

• INVEST• CCC• Small enough

for the team to develop in a day or so

• Everything and everyone necessary to deliver

• Meets acceptance criteria

• No known defects

• No technical debt

What Do I Mean?

Backlogs Teams Working Tested Software

Teams

Backlog

Backlog

Backlog

Backlog

WorkingTested

Software

• INVEST• CCC• Small enough

for the team to develop in a day or so

• Everything and everyone necessary to deliver

• Meets acceptance criteria

• No known defects

• No technical debt

What Do I Mean?

Backlogs Teams Working Tested Software

Teams

Backlog

Backlog

Backlog

Backlog

WorkingTested

Software

Why Are They Important?

Clarity Accountability MeasureableProgress

• People have clarity around what to build

• People understand how it maps to the big picture

• Teams can be held accountable for delivery

• No indeterminate work piling up at the end of the project

• 90% done, 90% left to do

Teams

Backlog

Backlog

Backlog

Backlog

WorkingTested

Software

Why Are They Important?

Clarity Accountability MeasureableProgress

• People have clarity around what to build

• People understand how it maps to the big picture

• Teams can be held accountable for delivery

• No indeterminate work piling up at the end of the project

• 90% done, 90% left to do

Teams

Backlog

Backlog

Backlog

Backlog

WorkingTested

Software

Why Are They Important?

Clarity Accountability MeasureableProgress

• People have clarity around what to build

• People understand how it maps to the big picture

• Teams can be held accountable for delivery

• No indeterminate work piling up at the end of the project

• 90% done, 90% left to do

Teams

Backlog

Backlog

Backlog

Backlog

WorkingTested

Software

Why Are They Important?

Clarity Accountability MeasureableProgress

• People have clarity around what to build

• People understand how it maps to the big picture

• Teams can be held accountable for delivery

• No indeterminate work piling up at the end of the project

• 90% done, 90% left to do

Teams

Backlog

Backlog

Backlog

Backlog

WorkingTested

Software

Why Are They Important?

Purpose Autonomy Mastery

• Understanding the backlog gives meaning to work

• Local decision making gives people a sense of power and control over their work

• People can demonstrate that they are good at what they do

Teams

Backlog

Backlog

Backlog

Backlog

WorkingTested

Software

Why Are They Important?

Purpose Autonomy Mastery

• Understanding the backlog gives meaning to work

• Local decision making gives people a sense of power and control over their work

• People can demonstrate that they are good at what they do

Teams

Backlog

Backlog

Backlog

Backlog

WorkingTested

Software

Why Are They Important?

Purpose Autonomy Mastery

• Understanding the backlog gives meaning to work

• Local decision making gives people a sense of power and control over their work

• People can demonstrate that they are good at what they do

Teams

Backlog

Backlog

Backlog

Backlog

WorkingTested

Software

Why Are They Important?

Purpose Autonomy Mastery

• Understanding the backlog gives meaning to work

• Local decision making gives people a sense of power and control over their work

• People can demonstrate that they are good at what they do

Teams

Backlog

Backlog

Backlog

Backlog

WorkingTested

Software

What Do They Look Like at Scale?

Governance Structure Metrics & Tools

• Governance is the way we make economic tradeoffs in the face of constraints

• They way we form teams and foster collaboration at all levels of the organization

• What do we measure, how do we baseline performance and show improvement?

Teams

Backlog

Backlog

Backlog

Backlog

WorkingTested

Software

What Do They Look Like at Scale?

Governance Structure Metrics & Tools

• Governance is the way we make economic tradeoffs in the face of constraints

• They way we form teams and foster collaboration at all levels of the organization

• What do we measure, how do we baseline performance and show improvement?

Teams

Backlog

Backlog

Backlog

Backlog

WorkingTested

Software

What Do They Look Like at Scale?

Governance Structure Metrics & Tools

• Governance is the way we make economic tradeoffs in the face of constraints

• They way we form teams and foster collaboration at all levels of the organization

• What do we measure, how do we baseline performance and show improvement?

Teams

Backlog

Backlog

Backlog

Backlog

WorkingTested

Software

What Do They Look Like at Scale?

Governance Structure Metrics & Tools

• Governance is the way we make economic tradeoffs in the face of constraints

• They way we form teams and foster collaboration at all levels of the organization

• What do we measure, how do we baseline performance and show improvement?

ORGANIZATIONAL BARRIERS TO AGILE

Team

Matrixed Organizations

Team

Matrixed Organizations

Non-instantly Available

Resources

Team

Matrixed Organizations

Limited Access to Subject Matter

Expertise

Non-instantly Available

Resources

Team

Matrixed Organizations

Limited Access to Subject Matter

Expertise

Non-instantly Available

Resources

Shared Requirements

Between Teams

Team

Matrixed Organizations

Limited Access to Subject Matter

Expertise

Non-instantly Available

Resources

Too Much Work In Process

Shared Requirements

Between Teams

Team

Matrixed Organizations

Limited Access to Subject Matter

Expertise

Non-instantly Available

Resources

Too Much Work In Process

Shared Requirements

Between Teams

Large Products with Diverse Technology

Team

Matrixed Organizations

Limited Access to Subject Matter

Expertise

Non-instantly Available

Resources

Too Much Work In Process

Shared Requirements

Between Teams

Technical Debt & Defects

Large Products with Diverse Technology

Team

Matrixed Organizations

Limited Access to Subject Matter

Expertise

Non-instantly Available

Resources

Too Much Work In Process

Low Cohesion & Tight Coupling

Shared Requirements

Between Teams

Technical Debt & Defects

Large Products with Diverse Technology

Team

LEADINGAGILE THEORY OF TRANSFORMATION

Theory of Transformation

Adopting agile is about forming teams, building backlogs, and regularly

producing increments of working tested software

Theory of Transformation

Adopting agile at scale is about defining structure,

establishing governance, and creating a metrics and tooling strategy that supports agility

Theory of Transformation

Anything that gets in the way of forming teams, building backlogs, and

producing working tested software is an impediment to

transformation

Theory of Transformation

Solid agile practices will help operationalize the system and

encourage a healthy, adaptive, and empowered culture emerge over time

MAPPING YOUR AGILE TRANSFORMATION

Pred

icta

bilit

y Adaptability

Pred

icta

bilit

y Adaptability

Emergence

Convergence

Pred

icta

bilit

y Adaptability

Emergence

Convergence

Pred

icta

bilit

y Adaptability

Emergence

Convergence

AEPC

Pred

icta

bilit

y Adaptability

Emergence

Convergence

AEPEPC AC

Pred

icta

bilit

y Adaptability

Emergence

Convergence

AEPEPC AC

Ad-Hoc

Pred

icta

bilit

y Adaptability

Emergence

Convergence

AEPEPC AC

Ad-Hoc

Traditional

Pred

icta

bilit

y Adaptability

Emergence

Convergence

AEPEPC AC

Ad-Hoc

Traditional Agile

Pred

icta

bilit

y Adaptability

Emergence

Convergence

AEPEPC AC

Ad-Hoc

Traditional Agile

Lean Startup

Pred

icta

bilit

y Adaptability

Emergence

Convergence

AEPEPC AC

Ad-Hoc

Traditional Agile

Lean Startup

Project

Pred

icta

bilit

y Adaptability

Emergence

Convergence

AEPEPC AC

Ad-Hoc

Traditional Agile

Lean Startup

Project Pilot

Pred

icta

bilit

y Adaptability

Emergence

Convergence

AEPEPC AC

Ad-Hoc

Traditional Agile

Lean Startup

Project Pilot

Pred

icta

bilit

y Adaptability

Emergence

Convergence

AEPEPC AC

Ad-Hoc

Traditional Agile

Lean Startup

Adopt Pilot

Pred

icta

bilit

y Adaptability

Emergence

Convergence

AEPEPC AC

Ad-Hoc

Traditional Agile

Lean Startup

LOB

Pred

icta

bilit

y Adaptability

Emergence

Convergence

AEPEPC AC

Ad-Hoc

Traditional Agile

Lean Startup

LOB

Low Trust

Pred

icta

bilit

y Adaptability

Emergence

Convergence

AEPEPC AC

Ad-Hoc

Traditional Agile

Lean Startup

LOB

Low Trust

LOB

Become Predictable

Pred

icta

bilit

y Adaptability

Emergence

Convergence

AEPEPC AC

Ad-Hoc

Traditional Agile

Lean Startup

LOB

Low Trust

LOB

Become Predictable

Pred

icta

bilit

y Adaptability

Emergence

Convergence

AEPEPC AC

Ad-Hoc

Lean/Agile Agile

Lean Startup

LOB

Low Trust

LOB

Become Predictable

Pred

icta

bilit

y Adaptability

Emergence

Convergence

AEPEPC AC

Ad-Hoc

Lean/Agile Agile

Lean Startup

LOB

Low Trust

LOB

Become Predictable

LOB

Reduce Batch Size

Pred

icta

bilit

y Adaptability

Emergence

Convergence

AEPEPC AC

Ad-Hoc

Lean/Agile Agile

Lean Startup

LOB

LOB

LOB

LOB

Low Trust

Become Predictable Reduce Batch Size

Fully Decouple

Corollary One:

Agile can mean different things to different companies and not all agile approaches

will work well for every organization

INCREMENTAL AND ITERATIVE IMPROVEMENT

Pred

icta

bilit

y Adaptability

Emergence

Convergence

AEPEPC AC

Ad-Hoc

Lean/Agile Agile

Lean Startup

OrgSlice

Low Trust

Become Predictable Reduce Batch Size

Fully Decouple

Pred

icta

bilit

y Adaptability

Emergence

Convergence

AEPEPC AC

Ad-Hoc

Lean/Agile Agile

Lean Startup

OrgSlice

Low Trust

Become Predictable Reduce Batch Size

Fully Decouple

Phase One

Pred

icta

bilit

y Adaptability

Emergence

Convergence

AEPEPC AC

Ad-Hoc

Lean/Agile Agile

Lean Startup

OrgSlice

Low Trust

Become Predictable Reduce Batch Size

Fully Decouple

Phase One

Phase Two

Pred

icta

bilit

y Adaptability

Emergence

Convergence

AEPEPC AC

Ad-Hoc

Lean/Agile Agile

Lean Startup

OrgSlice

Low Trust

Become Predictable Reduce Batch Size

Fully Decouple

Phase One

Phase Three

Phase Two

Pred

icta

bilit

y Adaptability

Emergence

Convergence

AEPEPC AC

Ad-Hoc

Lean/Agile Agile

Lean Startup

OrgSlice

Low Trust

Become Predictable Reduce Batch Size

Fully Decouple

Phase One

Phase Three

Phase Four

Phase Two

Pred

icta

bilit

y Adaptability

Emergence

Convergence

AEPEPC AC

Ad-Hoc

Lean/Agile Agile

Lean Startup

OrgSlice

Low Trust

Become Predictable Reduce Batch Size

Fully Decouple

Phase One

Phase Three

Phase Four

Phase Two

Phase Five

Corollary Two:

Organizational change can be mapped out in such a way

that outcomes are measureable and predictable

and economically justified

DEVELOPING YOUR ROADMAP

Team

Database

Report

Screen

UserStory

UserStory

UserStory

UserStory

UserStory

UserStory

UserStory

Structure Governance Metrics & Tools

Team

Database

Report

Screen

UserStory

UserStory

UserStory

UserStory

UserStory

UserStory

UserStory

Structure Governance Metrics & Tools

Team

Database

Report

Screen

UserStory

UserStory

UserStory

UserStory

UserStory

UserStory

UserStory

Governance Metrics & ToolsStructure

Team

Database

Report

Screen

UserStory

UserStory

UserStory

UserStory

UserStory

UserStory

UserStory

Governance Metrics & ToolsStructure

STRUCTURE

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

Team

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

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

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

Team Team Team Team

TeamTeamTeam

Product & ServicesTeams

Team Team Team

Team Team Team Team

TeamTeamTeam

Product & ServicesTeams

ProgramTeams

Team

Team Team Team

Team Team Team Team

TeamTeamTeam

Product & ServicesTeams

ProgramTeams

PortfolioTeams

GOVERNANCE

Team

Team Team Team

Team Team Team Team

TeamTeamTeam

Product & ServicesTeams

ProgramTeams

PortfolioTeams

Product & ServicesTeams

Scrum

Team

Team Team Team

Team Team Team Team

TeamTeamTeam

ProgramTeams

PortfolioTeams

Product & ServicesTeams

ProgramTeams

PortfolioTeams

Scrum

Kanban

Team

Team Team Team

Team Team Team Team

TeamTeamTeam

Product & ServicesTeams

ProgramTeams

PortfolioTeams

Scrum

Kanban

KanbanTeam

Team Team Team

Team Team Team Team

TeamTeamTeam

METRICS

Product & ServicesTeams

ProgramTeams

PortfolioTeams

Scrum

Kanban

KanbanTeam

Team Team Team

Team Team Team Team

TeamTeamTeam

Product & ServicesTeams

ProgramTeams

PortfolioTeams

Scrum

Kanban

KanbanTeam

Team Team Team

• Backlog Size• Velocity• Burndown• Escaped Defects• Commit % Ratio• Acceptance % Ratio• Scope Change

Product & ServicesTeams

ProgramTeams

PortfolioTeams

Scrum

Kanban

KanbanTeam

• Cycle Time• Features Blocked• Rework/Defects• Backlog Size• Velocity• Burndown• Escaped Defects• Commit % Rate• Acceptance % Ratio• Scope Change

Product & ServicesTeams

ProgramTeams

PortfolioTeams

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

Corollary Three:

Organizational constructs, governance models, metrics

and controls can be established without violating

the principles of agile

INCREMENTALTRANSFORMATION

Product & ServicesTeams

ProgramTeams

PortfolioTeams

Scrum

Kanban

KanbanTeam

Team Team Team

Team Team Team Team

TeamTeamTeam

Agile Pilot

Increment One

Product & ServicesTeams

ProgramTeams

PortfolioTeams

Scrum

Kanban

KanbanTeam

Team Team Team

Team Team Team Team

TeamTeamTeam

Agile Pilot

Increment One

Agile Rollout

Increment Two

Product & ServicesTeams

ProgramTeams

PortfolioTeams

Scrum

Kanban

KanbanTeam

Team Team Team

Team Team Team Team

TeamTeamTeam

Agile Pilot

Increment One

Agile Rollout

Three - N

ITERATIVETRANSFORMATION

Product & ServicesTeams

ProgramTeams

PortfolioTeams

Scrum

Kanban

KanbanTeam

Team Team Team

Team Team Team Team

TeamTeamTeam

Agile Pilot

Iteration One

Product & ServicesTeams

ProgramTeams

PortfolioTeams

Scrum

Kanban

KanbanTeam

Team Team Team

Team Team Team Team

TeamTeamTeam

Agile Pilot

Iteration Two

Product & ServicesTeams

ProgramTeams

PortfolioTeams

Scrum

Kanban

KanbanTeam

Team Team Team

Team Team Team Team

TeamTeamTeam

Agile Pilot

Iteration Three

Product & ServicesTeams

ProgramTeams

PortfolioTeams

Scrum

Kanban

Kanban

Agile Pilot

Iteration Four

Team

Team Team Team

Team Team Team Team

TeamTeamTeam

Product & ServicesTeams

ProgramTeams

PortfolioTeams

Scrum

Kanban

Kanban

Agile Pilot

Iteration Five

Team Team

Team Team Team

TeamTeamTeam

Team

Team

Team

ITERATIVE & INCREMETNAL CHANGE

Product & ServicesTeams

ProgramTeams

PortfolioTeams

Scrum

Kanban

Kanban

Agile Pilot

Iteration One

Team Team

Team Team Team

TeamTeamTeam

Team

Team

Team

Product & ServicesTeams

ProgramTeams

PortfolioTeams

Scrum

Kanban

Kanban

Agile Pilot

Team Team

Team Team Team

TeamTeamTeam

Team

Team

Team

Iteration Two

Product & ServicesTeams

ProgramTeams

PortfolioTeams

Scrum

Kanban

Kanban

Agile Pilot

Iteration Three

Agile Rollout

Iteration One

Team Team

Team Team Team

TeamTeamTeam

Team

Team

Team

Product & ServicesTeams

ProgramTeams

PortfolioTeams

Scrum

Kanban

Kanban

Agile Pilot

Iteration Four

Agile Rollout

Iteration Two

Team Team

Team Team Team

TeamTeamTeam

Team

Team

Team

Product & ServicesTeams

ProgramTeams

PortfolioTeams

Scrum

Kanban

Kanban

Agile Pilot

Iteration Five

Agile Rollout

Iteration Three

Team Team

Team Team Team

TeamTeamTeam

Team

Team

Team

Corollary Four:

Organizations can adopt agile safely and pragmatically by

iteratively and incrementally introducing structure,

governance, and metrics and maturing practices and

culture over time

SUMMARY

Theory of Transformation

Adopting agile is about forming teams, building backlogs, and regularly

producing increments of working tested software

Theory of Transformation

Adopting agile at scale is about defining structure,

establishing governance, and creating a metrics and tooling strategy that supports agility

Theory of Transformation

Anything that gets in the way of forming teams, building backlogs, and

producing working tested software is an impediment to

transformation

Theory of Transformation

Solid agile practices will help operationalize the system and

encourage a healthy, adaptive, and empowered culture emerge over time

Corollary One:

Agile can mean different things to different companies and not all agile approaches

will work well for every organization

Corollary Two:

Organizational change can be mapped out in such a way

that outcomes are measureable and predictable

and economically justified

Corollary Three:

Organizational constructs, governance models, metrics

and controls can be established without violating

the principles of agile

Corollary Four:

Organizations can adopt agile safely and pragmatically by

iteratively and incrementally introducing structure,

governance, and metrics and maturing practices and

culture over time

Summary

By focusing on the fundamentals of agile delivery,

while systematically and methodically breaking

dependencies, we can achieve true enterprise agility

WHY AGILE IS FAILINGIN LARGE ENTERPRISES

…and what you can do about it