Deliver sustainable value with Agile product development

Agenda

The impact of Agile

Agile – from software to strategy

Context

Agile drives sustainable value

• Agile and non-Agile – leverage the synergies

• Agile – collaborate across the the organization without siloes

• Agile – foundation of enablers

Summary

Questions

Speaker

“In today’s globalised, free-market environment, the ability to satisfy customer expectations is core to profitability. If you’re not agile, you can’t do it, because customer expectations are never static.” “Organisational agility: How business can survive and thrive in turbulent times”,

2009, A report from the Economist Intelligence Unit

“Agility may also be linked to profitable growth: Research conducted at the Massachusetts Institute of Technology suggests that agile firms grow revenue 37 percent faster and generate 30 percent higher profits than non-agile companies.”

PMI’s 2012 Pulse of the Profession In-Depth Report: Organizational Agility

The impact of Agile

“Agility may also be linked to profitable growth: Research conducted at the Massachusetts Institute of Technology suggests that agile firms grow revenue 37 percent faster and generate 30 percent higher profits than non-agile companies.”

PMI’s 2012 Pulse of the Profession In-Depth Report: Organizational Agility

The impact of Agile

Agile – from software to strategy S

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February 11-13, 2001 Started for Software Development (Manifesto for Agile Software Development).

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2004 - Steve Blank invested in a start-up founded by Eric Ries and Will Harvey. 2011 - Eric published an overview in The Lean Startup. Agile is one of the three key principles of Lean Startup.

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2010 – 2013 Scaled Agile Framework (SAFe) for Enterprises launced. “Lean and agile methodologies can shorten development times by up to 60 per cent and free up as much as 40 per-cent of capacity in the affected processes.”

Michael Grebe, Enno Danke, Boston Consulting Group March 2013 , “SImplify IT: Six Ways to Reduce Complexity”

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2006 – Cisco adopts Agile as the primary product development methodology. 2007 – SalesForce announces outstanding strategic return with Agile.

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2009 – Organisational agility is a core differentiator in today’s rapidly changing business environment. Organisational agility: How business can survive and thrive in turbulent times - A report from the Economist Intelligence Unit

2012 – Agile firms grow revenue 37 percent faster and generate 30 percent higher profits than non-agile companies. (PMI Pulse) 2015 – Want to become agile? Learn from your IT team. (McKinsey)

Context

While Enterprises make their journey:

• from traditional to Agile product development1 in new products, high growth industry or rapidly changing business environment,

they have to respond to changes, challenges presented by these and convert them into opportunities. The successful ones do so by :

• Developing synergies between the project portfolio management practitioners and Agile product delivery teams.

• Collaborating seamlessly with partners or external agencies, such as for investment, marketing, communications, or deployment.

• Establishing a strong foundation with the essential constructs – customer, business and infrastructure, and their importance to a true Agile environment.

Agile and Non-agile practitioners observe a conflict in principles and practice.

Agile self governing does not mean lack of enterprise accountability or reporting.

Agile processes contradict the intent with implications of control.

Agile should not be used a rigid methodology – focus on people and their strengths rather than processes and documents.

Agile works for large as well as small projects, projects as well operational activities, dedicated project teams as well as teams working on multiple activities.

Agile works for distributed teams as well as collocated teams.

Agile drives sustainable value S

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A project organization without siloes is critical to reduce reliance on formal documentation, project hierarchies, top heavy risk and change management.

Agile teams include product owners, scrum master, stakeholders, and subject matter experts.

• From departments that encompass core business units, enterprise support functions including but not limited to finance billing, marketing, information technology, operations and legal.

Eliminates need for extensive effort of capturing “all” knowledge, people and process interactions in formal documentation.

Eliminates need for knowledge sharing and decision making hierarchies.

Fosters collaboration to recognize change quick and solve problems .

Agile drives sustainable value C

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Customer

• Voice of Customer • Competitive landscape and its impact on customer

Business

• Business case validation • External environment • Strategy, marketing, communications, operations, product

management • Organizational change management

Infrastructure

• Project reporting – progress, financials, impediments • Financial analysis • Communication and collaboration • Agile tools and support • Product development

Agile drives sustainable value F

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Agile drives sustainable value

Agile is best when experts apply it in addition to the core expertise,

e.g. enterprises using sound project management, process improvement,

change management and software engineering expertise within Agile

principles.

Agile drives sustainable value

Agile addresses the issue of communication by establishing organization

without siloes.

Agile drives sustainable value

Agile requires customer, business and infrastructure focused

foundation / enablers to enable true organizational agility.

Agile drives sustainable value

Agile is here to stay

Embrace its values.

Summary

Value

Infrastructure

Business

Customer

With Lean initiatives, enterprises have achieved higher efficiencies in financial and resource management. However, it presents a different challenge in responding to rapid changes in customer or external factors.

Through application of various process improvement methodologies like Lean and Six Sigma over the last two decades, software development experts created Agile delivery methods. Though it originated from technical discipline, it has expanded to be a key component of “Lean Startup”1 method and has scaled to large enterprises aspiring to improve their return on investment in products.

To provide sustainable value, Agile product development leverages strong planning as a foundation to execute with the speed needed to respond to strategy changes. Organizations have been moving strategic planning from an annual cycle to once a year financial planning for budgeting but more frequent strategy evaluation and planning to evaluate the validity of the business case and taking the needed corrective action. These actions may result in changes - new initiatives, speeding up existing ones, slowing them down or stopping some altogether2,3. These changes have traditionally resulted in disruption to planned execution.

1 Steve Blank, Harvard Business Review, May 2013, “Why the Lean Start-Up Changes Everything”

2 Markus Lorenz, Andreas Jentzsch et al, BCG Perspectives April 2015 , “The Lean Advantage in Engineering”

3 Paul Willmott, McKinsey Insights & Publications July 2015, “Want to become agile Learn from your IT team”

Speaker

Anoop Verma

Mr. Anoop Verma leads Technical Product Management and Enterprise Application Development and Management, as Director at a nonprofit global leader in healthcare. Prior to this, he led strategy, planning, architecture and delivery function in companies ranging from startups to Fortune 100 companies. With successful leadership of 250+ global team members and over 100M dollar budgets, he has advised on as well as led major organizational transformations from Waterfall to Agile project portfolio delivery, from cost center to change catalyst, and from tactical service provider to innovation partner.

An inspirational leader, Mr. Verma graduated from Indian Institute of Technology (earlier called University of Roorkee), India before getting Master’s degree from Wayne State University, Detroit and M.B.A. from Kellogg School of Management at Northwestern University.

Mr. Verma is an early adopter of Project Management discipline with PMP certification. He has spoken at university and conference sharing his insights on the strategic integration of strategy, planning and execution functions to achieve higher business value in a sustainable manner. LinkedIn Profile: https://www.linkedin.com/in/anoopverma