Organizational Alignment - The Foundation For Business Agility

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Organizational Alignment,The Foundation For Business Agility

Dr. David Rico

Tom Friend

• Author and speaker• 30+ years technical lead

NASA, U.S. Navy, U.S. Airforce

• 12+ Years Agile Scrum Experience

• 25+ Year IT Application Scrum• US Naval Aviator & Air Force Pilot

Agenda• What is Agility• Enterprise Agile Case Study• Pivot or Perish• Business Agility• The Power of Alignment• Q&A

What is Agility?

Maximizing

BUSINESS VALUE

with right sized, just-

enough, and

just-in-time processes

and documentationHighsmith, J. A. (2002). Agile Software Development Ecosystems. Boston, MA: Addison-Wesley.

Where Agile Movement Came From

Source: www.agilemanifesto.org

Individuals and Interaction over process and tools

Working Software over comprehensive documentation

Customer Collaboration over contract negotiation

Responding to Change over following a plan

XP

Crystal

Kanban

RUP

Scrum

Lean

FLEX

“Agile” is an Ecosystem

Levels of Agile in an Organization

XPTDDBDD

ScrumLSD Agile Practices

KanbanDevOpsScrum of Scrums

LeanPDCAKaizen

A3

Individual Team Department Organization

Daily

Enterprise

Project

Program

Version One Report

Accelerate product delivery 59%Manage changing priorities 56%Increase productivity 53%Predictability 44%Alignment 40%

9th

Annual

STATE OF AGILE

SURVEY

Iteration

24hours

Iteration Backlog Backlog tasksexpandedby team

ViableIncrement

Daily CoordinationMeeting

Scrum: Framework

1 month or less

The purpose of a Scrum sprint is to deliver an increment of potentially releasable functionality of the highest value.

Maximum Value DeliveredValue of Work Not Done

1. Optimize Business Value2. Mitigate Risk3. Maximum Transparency

Never Used

Seldom Used

Sometimes Used

Often Used

Always Used

45%

7%13%

16%

19%

Comparing The Details?

Lifecycle

Deliverables

Time to Market

TrainDD Testplan

HLD Techspec

Build Functtest

Deploy

Doc

Deliverables

Time to Market

Lifecycle

Itera

te, I

ncre

men

t a

nd In

nova

te

Wat

erfa

ll B

ig B

ang

VS.

12 to 36 months

Define Code Test

6 Months

Potentially Shippable Product Increments

Define

Test

Code

Define

Test

Code

Define

Test

Code

Define

Test

Code

Getting Value Sooner

Agile

Waterfall

Time

Valu

e

x

xx

x x xx

What value do we get if we cancel here?

Reduction of Risk

Tested & Working

RISK

RISK

RISK

Tested & Working

RISK

RISK

Tested & Working

Tested & Working

Waterfall Agile

RISK

The Scrum Team Self Organizes to Attack Risk

Building a High Performance Team

Forming Storming Norming Performing

Source: Dr. Bruce Tuckman

Teams are the foundation for Enterprise Agile Transformation

Effe

ctiv

enes

s of

Team

Performance of Team

• New iteration of all systems released every 6 mos

• $43M cost1 (20% of F-35)

• World’s most cost-effective military aircraft (1)

• $143 billion over budget• Delayed until 2022 (final systems integration)• Cost of Navy F-35C grew from $273 million in

2014 to $337 million by 2015

Enterprise Agile Case Study Dept of Defense: Waterfall vs. Agile

$1.5 trillion $15 billion

(1) Jane’s Aviation Weekly

Businesses Have to Pivot or Perish

Why Banks are Embracing Agile

Amazon, Google, Alibaba, 10 cent – all have ROA in the high teens (15-20%).

JPMorgan 0.9%,

HSBC 0.5%.

Bank of Montreal 0.67%

Barclays 0.05%.

Return on Assets (ROA) It is All About $$$

20%<1%

What are Banks focusing on?

High ROALow ROA

No ROA

Organizational Alignment Leads to AgilityProduct Vision

Product Roadmap

Release Plan

Iteration Plan

Daily Coordination

Long Range Planning 1 year +

Mid Range Planning 6 Months

Short Range Execution

Capability Maturity Model

AgileTeams

Agileat Scale

BusinessAgility

Simple FLEX Team Alignment

e Staff and SVP

Centralized Planning | Decentralized Execution

VPs, Champions & BU Owners

Sr Directors, Directors & ICs

PLAN EXECUTE

Questions?

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