agile governance
TRANSCRIPT
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Agile Governance
Charlie RuddSollutionsIQ
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Speaker Introduction: Charlie Rudd
CEO of SolutionsIQ, an Agile company that provides Agile services including consulting, training, software development and recruiting throughout the world
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Agile governance: what could this mean?
1. Governance is evil and is Agile is good2. Governance is a necessary evil 3. Agile provides a lighter-weight means to
achieve corporate governance aims4. Agile is a superior governance framework
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What is this governance thing?
• Internal – Clarity of corporate purpose – Viable strategy & plan – Necessary resources & environment
• External – Government & industry regulation – Legality – Shareholder expectations – Public relations
• Risk management
Corporate Stewardship
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Intended outcomes of governance
• Proper investment decisions are made• Investments perform as expected • Work is authorized • Demonstrable progress is made • Quality objectives are achieved
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Do the right work Do the work right
Investment decision
Investment performance
Work competency
Quality standards
Risk management
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Successful portfolio management
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How is governance applied?
• Articulate Intentions – Policies & practices
• Verification (or enforcement) – External reporting– Oversight (Approvals & supervision) – Documentation (proof) – Audit (inspection)
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Which part is evil (maybe)?
• Corporate stewardship?• Successful portfolio management? • That leaves how its applied
– Policies and practices – Verification procedures – A mismatch between the two
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Board
Fina
nce
Lega
l
Fina
nce
IT
HR
Business unit 1
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Corporate
Business unit 2
Business unit 3
Governance by function
Government & industry regulation
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Board
Fina
nce
Lega
l
Fina
nce
IT
HR
Business unit 1
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Corporate
Business unit 2
Business unit 3
Governance stakeholders
shareholders
regulators
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IT
Technology infrastructure
Production operations
Business solutions
Quality Assurance
Development practices
Project management
IT or Local Governance
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• Shareholders
• Regulators
• Corporate functions
• Business units
• IT functions Copyright © 2011 SolutionsIQ. All rights reserved.
Lots of diverse stakeholders
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Governance success criteria
1. The diverse interests of many stakeholders must be satisfied
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appl
icat
oin
Intended Outcome
+ No worriesIntegrated governance
+-
-
ChaoticNo governance
Wrong governance
Hidden governance
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Governance fit
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Governance success criteria
1. If the diverse interests of many stakeholders are to be satisfied they must…
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Governance success criteria
1. If the diverse interests of many stakeholders are to be satisfied they must...
Be aligned (somehow)
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Mis-alignment breeds conflict
• Frustration• Anger • Fear • Discontentment • Anxiety
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Alignment produces harmony
• Satisfaction• Confidence• Contentment• Happiness
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appl
icat
oin
Intended Outcome
+ High alignment
+-
-
No alignment
Misalignment
Misalignment
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Good governance requires high alignment
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Forces working against alignment
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Forces working against alignment
Functional diversity• Different objectives• Different backgrounds
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Forces working against alignment
Operational diversity• Different priorities • Different time horizons
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Forces working against alignment
Globalization • Different time zones • Spatial separation • Different languages
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Forces working against alignment
Complicated mechanisms • Overloaded controls• Governance “debt” • Lots of moving parts
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IT
Technology infrastructure
Production operations
Business solutions
Quality Assurance
Development practices
Project managementBusiness units
Quality gates
Corp functions
When good governance goes bad
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Forces working against alignment
Corporate culture clashes • Different management principles • Different values and assumptions• Different views on people
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Different management cultures
If you believe there is zero sum tradeoff between scope, schedule & resources it may seem counter-intuitive that:
By reducing resources you sometimes can speed things up and improve quality
Schedule Resources
Scope
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Forces working against alignment
Dynamic business conditions• Rate of technology change • Increasing uncertainty • Competitive pressures
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Root causes of misalignment
Forces Functional diversity Operational diversity Globalization ComplicatednessCorporate culture clash
Lack of shared
objectives
Communication Barriers
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Increasing rate of alignment decay
Forces Functional diversity Operational diversity Globalization ComplicatednessCorporate culture clash
Lack of shared
objectives
Communication Barriers
Dynamics business conditions
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Getting aligned
• Establish shared objectives
• Break down communication barriers
How do you do that?
Lack of shared
objectives
Communication Barriers
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Where you wont find the answer
• Governance controls– Designed as fixed constraints – not to auto-align
• Technology• Institutional governance
– Operate in different jurisdictions – First mission often enforcement
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• Part of the solution for sure, but also part of the problem
• The trick is knowing how to tell one from the other & get stakeholders to agree!
Architecture & Standards
PMO
IT governance authorities
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IT Governance frameworks
• Institutional – PMO – Architecture & standards
• Technology • Industry
– CMMI– PMI – Gartner
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IT Maturity models (my apologies to Gartner)
Our focus is business solutions
Maturity theme: “Business alignment”
IT
Technology infrastructure
Production operations
Business solutions
Quality Assurance
Development practices
Project management
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Purpose Function Role Solution Maturity
Cost center Order taker
Contractor
Point Solutions LOW
Profit center Solution architect
Partner Colleague
Commercial Product,
Integrated architecture
HI
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Low & high IT maturity (apologies to Gartner)
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Forces moving IT to solution partner role
Public internet platform• Consumer experience sets standard for
business apps• Mash-ups with 3rd party commercial
products raises expectations • Easy to compare competitive offering (low
barriers to exit)• More high profile IT solutions • Release cycle time needs to be fast
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Purpose Function Role Solution Maturity
Cost center Order taker
Contractor
Point Solutions LOW
Profit center Solution architect
Partner Colleague
Commercial Product,
Integrated architecture
HI
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Different IT roles suggest different governance styles
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3 - Production
Facts
Facts
2 – Centralized planning
1 - Centralized evaluation
Best Solution
Do it right the first time
Optimize AlgorithmicExternal constraints
Traditional business principles
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3 – Follow orders
Facts
Facts
2 – Centralized planning
1 - Business case
decision
Project charter
Big bang release
Detailed spec & plan
Traditional governance
Optimize AlgorithmicExternal constraints
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3 – Follow orders
Facts
2 – Centralized planning
1 - Business case
decision
Project charter
Big bang release
Detailed spec & plan
Traditional governance
X
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1. Identify a potential opportunity2. Gather facts, make assumptions, run scenarios 3. Stop before business case is proved4. What’s riskier? Doing nothing or something?
II I
I
?
?? ?Business case shaky because instability of key variables
When good governance goes bad
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.5 years 2 years1.5 years1 year
$1.5 m$1.5 m$6 m $1.5 m $1.5 m
Shaky business case leads to:• Incomplete, flawed specification• Flawed implementation plan
I I
I
?
?? ?
?
Questionable governance controls
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1. Spec and plan insufficient as compliance controls2. No good way to modify spec or plan or respond to
emerging conditions3. No easy way to revise contracts and agreements
Yet all the money is spent $0.0 m
2 years.5 year 1.5 years1 year
$1.5 m$1.5 m $1.5 m $1.5 m
2 years.5 year 1.5 years1 year
Traditional governance makes things worse
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1. Out of time and out of money
2. Key features missing
3. Delivered features not desired (waste built in)
4. Desired technical quality not delivered
Why Agilists find governance is evil
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Purpose Function Role Solution Maturity
Cost center Order taker
Contractor
Point Solutions LOW
Profit center Solution architect
Partner Colleague
Commercial Product,
Integrated architecture
?
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If not the traditional, then what?
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IT Governance frameworks
• Institutional • Technology • Industry• Agile frameworks
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Why Agile governance frameworks may be superior
• They have built-in alignment features– Establish shared objectives – Break down communication barriers
• They auto re-align
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• Iterative progress
• Feedback-driven adaption
• Share information
• Empower knowledge workers
• Self-organization & collaboration
• Deliver early and frequently
Built-in alignment features
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3 – Follow orders
Facts
2 – Centralized planning
1 - Business case
decision
Project charter
Big bang release
Detailed spec & plan
Traditional governance
X
X X
XX
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Production
planning
Evaluation
Agile governance principles
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Production
planning
Evaluation
Innovative HeuristicInternal constraints
Agile governance principles
Production increment
Solution prototype
(vision)
Early & frequent delivery
Iterative progress
feedback
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Purpose Function Role Solution Maturity
Cost center Order taker
Contractor
Point Solutions LOW
Profit center Solution architect
Partner Colleague
Commercial Product,
Integrated architecture
HI
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Agile governance style good fit for the partner role
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Maturity Objective Strategy Impact onGovernance
1 Grass roots Sponsorship Do no harm
none
2 Co-existence Legitimacy Show value
New procedure
3 Strategic Full partner Skin in the game
Newgoals
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Agile scope of influence
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Maturity
influ
ence
Alignment
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Agile governance maturity
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Strategy to gain influence
• Treat stakeholders like customers – Break down communication barriers: Invite, share success, take initiative to determine needs and requirements
• Convert to partners – Establish shared objective (customer)
• Repeat
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Corporate
Business unit
IT
Team
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Strategy to gain influence
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Grass roots: Governance is a necessary evil
• Objective: Formal sponsorship • Requirements
– Ability to work fulltime on a project – Agile knowledge – Ability to assign work as a team (self-organize)– Ability to comply with governance policies– Build control
• Span of shared objective – The development team
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Grass roots: Governance is a necessary evil
• What you can accomplish– Develop agile skills– Start to Improve technical quality – Begin building a case for broader use
• What you cant accomplish– Change or replace governance policy – Exploit agile dynamic scope management
• What the org expects– you don’t exist
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Grassroots: governance is a necessary evil
• Breaking down communication barriers– Make progress visible– Do demos (even without a stakeholder),
invite people – Reach out to PMO, architects, key analysts– Confer with project managers – Don’t over-reach
• Do simulations
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Grassroots: governance is a necessary evil
The simulated Product Owner
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Co-existence: Agile provides a lighter weight governance alternative • Objective:
– Full legitimacy – Agile established as a recognized alternative to meet
governance objectives
• Requirements– Formal sponsorship – History of success in terms of delivery & meeting
governance requirements – Support from multiple stakeholders
• Span of influence – Development organization
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• What you can do – Introduce alternative governance verification
mechanisms – Establish systemic quality and delivery improvement – Sustain persistent teams
• What you cant do – Apply agile portfolio management– Change governance policies
• What the org expects– That there is an agile alternative equivalent to
traditional practice
Co-existence: Agile provides a lighter weight governance alternative
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• Breaking down communication barriers– Quantify success and improvement – Establish common objectives with IT
stakeholders (Architecture, QA, PMO) – Establish common objectives with business
stakeholders – Turn remote stakeholders into new
customers
Co-existence: Agile provides a lighter weight governance alternative
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The value stream analysis
The proof of code analytics
Co-existence: Agile provides a lighter weight governance alternative
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Strategic: Agile is a superior governance framework • Objective:
– New governance objectives – Broad collaboration with business including strategy
and solution development – Highlighted at a Gartner conference
• Requirements– Solid trust basis with key business sponsors as
outcome of successful collaboration – Full engagement of business in Agile methods – IT org wide adoption of agile
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• Span of influence – Business unit via active collaborative partnership
• What you can do – Become profit center – Develop strategy – Change IT governance policies – Influence corporate governance policies
• What the org expects– That IT and rest of business are collaborating
partners
Strategic: Agile is a superior governance framework
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Strategic: Agile is a superior governance framework
The collaborating auditor
Courtesy of Dan Greening [email protected]
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• Exploit PM knowledge to break the code of hidden governance• Worry about side effects• Promise what’s already in the bag• Set the right expectations for yourself and your stakeholders• Begin what will be a long conversation • Begin building a case (gather evidence, line up supporters) • Identify & court allies (business, PMO, architects)• Extend invitations (sprint reviews) (don't force what you don’t have
the authority to enforce) • Choose total victory on small, low risk “wins” rather than partial or
doubtful victory on high stakes gambles • Simulate new roles (proxy product owner, internal scrum master)
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DOs
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• Don’t beat up customer with Agile values• Don’t assume that a governance policy that is no use to you is of no use
to anyone• Don’t invite failure by committing beyond your span of control • don’t change governance strategy unilaterally• Don’t provide more information than is asked for (do encourage the
request for more information) • Don’t upset the applecart • Don’t create more work for governance authority• Don’t talk about improving until you can demonstrate compliance with
status quo• Don’t assume that executive sponsorship eliminates governance
conflicts
Copyright © 2011 SolutionsIQ. All rights reserved.
Copyright © 2011 SolutionsIQ. All rights reserved.
Don’ts
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Copyright © 2011 SolutionsIQ. All rights reserved.
Copyright © 2011 SolutionsIQ. All rights reserved.
Questions