deloitte lean agile state of the nation
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Agile Executive Roundtable
State of the Agile Nation
May 28, 2013
Agile is now… where are we today?
- 3 -
We are seeing more and more organizations continue adopting agile to meet rapidly increasing demand and challenges in IT
“We need to deliver more value driven services”
“We need to offer faster and more responsive services”
“We need to reduce our costs and become more efficient”
$
Challenges of Today How Agile Helps
39%
37%
29%
26%
23%
18%
16%
15%
14%
Accelerate Time to Market
Manage Changing Priorities
Increase Productivity
Better Align IT / Business
Enhance Software Quality
Project Visibility
Reduce Risk
Simplified Process
Reduced Cost
VersionOne: State of Agile Survey (2011, n=6000+), percentages show option respondents marked as ‘Highest Important’ - http://www.versionone.com/pdf/2011_State_of_Agile_Development_Survey_Results.pdf
Delivering Business
Value
Focuses on delivering the highest business value in the shortest time.
Rapid and Repeatable Processes
Enables rapidly and repeatedly inspecting actual working software (every two weeks to one month).
Self-Organizatio
n
The business sets the priorities. Teams self-organize to determine the best way to deliver the highest priority features.
Working Software
Every two weeks to a month anyone can see real working software and decide to release it as is or continue to enhance it for another iteration/sprint.
Top Benefits of Agile
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Your agile isn’t my agile… the adoption of agile is uneven and inconsistent across organizations
Incremental Development
Iterative Development
Scrum
eXtreme Programming
Kanban
Lean Software Development
RUP
Continuous Delivery
DevOps
Lean StartupFeature Driven Development
Home-brewed Small “a” agile Big “A” Agile Methods Leading Edge Agile
The agile ecosystem is diverse and complicated
What do each of these really mean to my
organization?
Imp
ac
t o
f C
ha
ng
e Medium
Low
Low
High
Medium
Medium
High
High
High
Process
People
Technology
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Lots of whitespace remains … Organizations adopting agile are not fully unlocking the potential of agile methods
Planning Requirements Design Development Testing ImplementationBusiness Casing
Processes converted to agile
Processes still waterfall
Operations
Iterative Development
Tooling improvement whitespace for increasing
agility
Process improvement whitespace for increasing
agility
Majority of Agile Adoption Today
Incremental Development
Lean Startup with Agile
Big “A” Agile Methods
Moving Agility to the Business Moving Agility to Engineering
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Barriers to change… Doing agile is easy, being agile is hard
VersionOne: State of Agile Survey (2011, n=6000+), respondents were allowed to choose multiple options http://www.versionone.com/pdf/2011_State_of_Agile_Development_Survey_Results.pdf
Adoption
Applicability
“Alien” and even threatening Is an extremely large paradigm shift Many pay lip service only
“You’ve been doing it wrong”“We can’t or won’t do that here”
Agile misapplication or Agile flaw? Big “A” Agile is a challenge in many
contexts
A large range of IT projects are not benefiting from agile
Organizational adoption and applicability is where the rubber hits the road
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The road to success? Take a different approach to agile adoption
Being agile is about delivering greater business value and not just the process
Your context matters, there is no one “right” approach to agile adoption
We want more delivery agility, but we don’t want Big
“A” Agile
Everything is broken, it’s time for a rethink
Story #1 – Agile without big change
Story #3 – Agile is what we want to be
Story #2 – Agile to Product Development
We’re not sure we are building the right thing, we want to be more agile in
how we define our products
Public Sector Banking Insurance
We have been working with a number of different organizations unlock the benefits of agile based on their pace of change using Kanban
The results: These organizations are making agile work the they want
Successful agile adoption requires changing everything on day one: Fact or fiction?
The organization needs to own and define what agile means
Kanban: Start with what you do today
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Successful change is hard – Being “agile” towards change is essential
Old Performance
New Performance
Initiative Stops
Current State
Target StateOur approach to change
Time
Per
form
ance
Massive disruption to the organization Depends on getting it right from the beginning Requires long-term stability in leadership and
patience from clients
A big bang approach to change can foster cultural resistance and other change risks
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One of the key drivers for fast incremental change is to “do more with less” by focusing on reducing waste to generate improvement
Reducing the amount of work-in progress – stop starting, start finishing
Focus on flow, remove bottlenecks and reduce cycles
Visualize the work and start increasingfeedback and collaboration
Identify performance improvement
opportunities based on measurable results
Give all levels of staff the ability to improve
the work environment
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Kanban is an agile approach to change that focuses on visualization and limiting work to drive out bottlenecks and improvements
- Developers must put current work on-hold if a high severity defect is found in test.
- Work tickets must be reviewed once every two weeks.
- Only 1 work ticket can be assigned to any tester at any given time.
New Build
SystemMaintenance
Issue Support
Install/Patch Configure Data Load Verify Deploy
IP Done IP Done IP Done IP Done
(12)
(5)
(6)
(2) (1) (3) (3)
Input QueueTest
Done
Development UATRequirements
& Analysis
IP Done IP Done IP Done IP Done(8)(3) (4) (3) (2)
B
D
Work is blocked Bottleneck Team is idleWork is blockedWork is blocked
Board Policies
B
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Kanban is supported by metrics and measurements to provide a measurable approach to validate improvements
DoPlan
CheckAct
Kaizen
Current Prior Trend Current Prior Trend
Delivery Lead Time 5 days 8 days Blockers per Feature 1 0.5
Analysis / Dev. Cycle Time 3 days 5 days Blocker Cycle Time 1 day 1 day
Test Cycle Time 1 day 1 day Defects per Feature 0.5 1
Wait Time Per Feature 1 day 2 day Defect Cycle Time 1 day 2 days
Delivery Throughput 5/mth 5/mth Capacity Load 5 4
Feature Target Conformance % 25% 50%
Time to Market KPIs Quality KPIs
0
0.2
0.4
0.6
0.8
1
1.2
J an Feb Mar Apr May J un J ul
Delivery Lead Time
0.0
0.5
1.0
1.5
J an Feb Mar Apr May J un J ulDelivery Throughput Backlog
Delivery Throughput vs. Backlog
Issues & Defects per Feature
0.0
0.2
0.4
0.6
0.8
1.0
1.2
J an Feb Mar Apr May J un J ul
WIP per FTE
0
0.5
1
1.5
J an Feb Mar Apr May J un J ulBlocker per Feature Defect per Feature
0
1
2
3
4
5
J ul Aug Sep Oct Nov Dec J an
Agile from the trenches Story#1: Optimizing a service based
organization
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Public sector organization looking to optimize their consolidation strategy and not looking for big “A” agile change
Target Outcomes Cost Reduction Operational Efficiency Economies of Scale
But also at a cost…
Undesirable Outcomes Long delivery times Decline in service
responsiveness Inconsistent execution
Cluster
Cluster
Dept. A Dept. B Dept. C Dept. D
IT Delivery Group
A
IT Delivery Group
B
IT Delivery Group
C
IT Delivery Group
D
IT Cluster
Dept. A Dept. B Dept. C Dept. D
IT Delivery Group A
IT Delivery Group B
IT Delivery Group C
IT Delivery Group D
Common Services
How do we leverage our consolidation and get faster, better and cheaper?
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Kanban was implemented for each service group to kickstart the improvement process and enable the organization to improve itself
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As a result, the Kanban systems allowed the organization to create real-time blueprints of how work flowed across the organization
Geographic Information System (GIS) COE
Completed this Quarter
Work Packages
Test
Under Test
GIS COE Plan and Build
Requirements Design Develop
Team JWAHD
Team RPG
Team KGSR
Data Class Work Cell
Analysis / Design
Work Package Intake and Prioritization
Region East
Data Classes Intake
Work Package Request Processing
Concept and Definition Support
Requests Backlog
In Progress Done
Responded
Next Fiscal Mar 2012 Feb 2012 Jan 2012 This Month
Regional West
Regional Central
Regional North
Support Tickets Data
GIB
NRM
In Progress
Define Physical Design & Scripts for Dissemination
DB
LIO Implementation & Development
SNIF Report Approval NRVIS Implementation & Development
Requirements Documentation Completed
Requirements Analysis / Design Build / Code
Requirements Design Build
Promote to Test
Ready for Test
Ongoing
Promote to Staging
Ready for Production
Defects
Cancelled / On Hold
Completed this Year
Work Packages
Defects
Cancelled / On Hold
This Month
Next Month
Later
SD Required
No SD Required
Continuing
Off Ramp
In Progress
New Work Package
Partially Done
Underway
New Work Package
Partially Done
Underway
New Work Package
Partially Done
Underway
New Work Package
Partially Done
Underway
New Work Package
Partially Done
Underway
Next Fiscal Mar 2012 Feb 2012 Jan 2012 This Month
Next Fiscal Mar 2012 Feb 2012 Jan 2012 This Month
Next Fiscal Mar 2012 Feb 2012 Jan 2012 This Month
Data
Application
Next Fiscal Mar 2012 Feb 2012 Jan 2012 This Month
Next Fiscal Mar 2012 Feb 2012 Jan 2012 This Month
Enhancement
Project Data Class Review
Completed
In Progress Completed In Progress Completed
Report Created
Approval in Progress
Approval Completed
In Progress Completed
Input Queue
Analysis Required
Development Queue
In Progress Completed
SRS Doc Test Case
In ProgressClient
ReviewSign-Off /
CompletedIn Progress
Review (Client /
Dev / Arch)Completed In Progress Completed
In ProgressWaiting for Approval
Done In Progress Done In ProgressClient / BA
ReviewCompleted
Application
Data Class
Team AA
Team BN
Defect Found
Team AA
Team BN
Iteration Completed
Application
Data Class
Ready for Stage
Testing
Stage Testing
Application
Data Class
Production Sign-Off
Resolved
Postponed
On Hold Cancelled
Completed
Resolved
Postponed
On Hold Cancelled
Completed
Archive
Continuing
Off Ramp
Application Maintenance and Operations (AMO )
Completed This
Quarter
Maintenance and Support
AMO NRM Work Cell
Delivery Work
Support Tickets
Analyze Support Work
Enhance / Adapt / Correct Work
Stage TestingCoding ConfigWork Queue
Infrastructure / Software Work
Planning and Work Package Definition
Non -Support Work Package Backlog
Ready for Planning and AnalysisConcept and Definition / Consulting
In Progress Later Next
In Progress Done
RFC / RFSE Process
App Release Work
Internal M &S Work
Project Based Work
External
AMO NRM
Ready for Test
Test
External
In Progress
To Be Resolved
AMO Work Packages
Defects
Completed This Year
AMO Work Packages
Defects
Concept and Definition Requests
Concept and Definition
Consulting / Support
Project-Based Work
Internal M&S
Project-Based Work
Internal M&S
On-Hold Work Packages
Project-Based Work
Internal M&S
Project-Based Work
Internal M&S
Support Work Package Backlog
Next (Monthly) Within Next 30 Days AssessmentPrepare RFC
Prepare RFSE
Waiting for ExternalConduct Follow-Up
Activities
Next (Bi-Weekly) Within Next 2 Weeks Promote Verification Feedback
Next (Monthly)
Within Next 30 Days
Next (Monthly)
Within Next 30 Days
In Progress Done
In ProgressPromote to
Test
AMO NRM Ready for
Test
External Ready for
Test
AMO NRM
ExternalReady for
UATUAT Testing
Promote to Staging
In Progress Done
AMO NRM
Promote to PRD
Next (Bi-Weekly) Within Next 2 Weeks NRM Analysis / Support / Resolution
External Analysis / Resolution
Enhance / Adapt / Correct Work Needed for Resolution
AMO Consulting
Tickets Completed
Completed
Cancelled
Resolved
Postponed
AMO Consulting
Tickets Completed
Completed
Cancelled
Resolved
Postponed
Archive
Procurement
AAAN & SOW PreparationASAN , RFS Preparation (& SSCPB )
Distant To Do
SSCPB
RFS
ASAN
TBD Evaluation
SOW
AAAN Prep & Circulation
Vendor On -Boarding
Archive
Projects
RFS
SOW
Immediate To Do
Request Assess
Waiting Assessment
Done
In ProgressWaiting for Legal, etc.
Done
In ProgressWaiting
(Review / Signatures)
Done
Waiting for Vendor
Submission
Evaluation Prep
Waiting Evaluation
Consolidating Eval.
In ProgressWaiting Legal
ReviewFinalize
In ProgressWaiting for Signatures
Done
In Progress Done
Projects
RFS
SOW
SSCPB
Java COE
ArchiveCompleted This
Quarter
UATSystem TestingJava Workflow
Java Migration / New Feature
WP Test in ProgressPreparation
Requirements Analysis
Infrastructure Setup
Input Queue
NextBacklog
Implement Solution
Architecture Work
Define Detailed Requirements
Technical Analysis
Design Build
WP Testing
Build Documentation
MRFs
Code Promotion
Work Packages
MRF
Non Functional Testing
Work Packages
MRF
Promotion
UAT Test
Release
Defects
Work Packages
Completed This Year
Defects
Work Packages
Defects
Next Work Packages
Work Packages
Solution Engagement ITS Review Identify OptionsStaging
Production
Design Proof of Concept Done
In ProgressBusiness Feedback
Review Done
In Progress Done
In Progress Done
In Progress Done In Progress Done
Code Review & Promotion
WP Dev Completed & Ready for
WP TestReview Fix
In Progress Done
In Progress Done
Work Package Complete
In Progress User Demonstration MRF Complete
In Progress Done
In ProgressFix Work Package
Done
In Progress Fix MRF Done
In ProgressFix Work Package
Done
In Progress Fix MRF Done
Ready for Promotion In Progress Done
In Progress Done
UAT Fix
Prepare RFC
RFC Submitted
RFC Approved
Resolved
Postponed
Completed
Cancelled / On Hold
Resolved
Postponed
Completed
Cancelled / On Hold
Resolved Defects
Unresolved Defects
Completed Work Packages
Data Management and Reporting (DM &R)
Data Management and Reporting Kanban
BI / OLAP / OLTP
New Build & Enhancement
Data Extract Request
Execution
Tabular / Spatial
Tabular / Spatial Projects or Enhancement
Requirements
Tabular / Spatial Data Loading
Build / Load
Level 1 Issue Support
Level 2 Issue Support & Data /App Maintenance
Database Implementation / Maintenance
Infrastructure & Software Install /Upgrade /Deployment
Install / Config / Deploy / Verify (dev /test )
Input Queue
Delivery Work
Concept Definition / Consulting Support
Concept & Definition
Concept & Definition Requests
C&D Consulting Support
DM &R SD Required WP Request Form
Issue Support
Internal DM &R
Other Application Delivery Groups
Business / Ministry
Analysis / Review
Internal
Install / Configure / Deploy (prod )
Internal
Verify
Internal
Database Creation Install /Patch Configure /Build Data Load Verify
Internal
Deploy to Prod
Internal
Analysis Coding / Configure
Internal
Test
Internal
UAT / Staging / Prod Prep Deploy to Prod
Internal
Verify
Internal
Analysis / Support / Resolution To Be Resolved
Tabular / Spatial Support Work
Tabular / Spatial Other Work
Source Data Acquisition
Internal
Backup / Verify
Internal
Deploy to Prod (External )
Internal
Internal
Requirements Review / Analysis
Design / Build Test (External ) Staging & Prod Prep Deploy to Prod Verify
Internal
BI / OLAP / OLTP Support Work
Application Support Work
BI / OLAP / OLTP Other Work
Analysis Design / Build
Internal (dev /test /prod )
Review
Internal
Requirements
Internal
Requirements Review / Analysis
Design / Build / Config Test UAT Deploy to Pro
Internal
Verify
Internal Verify
Defects
Work Packages
Completed This
Quarter
Defects
Work Packages
Completed This Year
This Month
Next Month
LaterIn Progress Done
In Progress DoneReview
ProgressResponded
On Hold
Within 4 Months
Within 2 Months
This Month
Within 4 Months
Within 2 Months
This Month
Within 4 Months
Within 2 Months
This Month
Within 4 Months
Within 2 Months
This Month
In Progress Done In Progress Done
External
In Progress Done
External
In Progress Done
Client Verify
In Progress Done In Progress Done In Progress Done In Progress Done In Progress Done
Client Verify
In Progress Done
Non DM&R
In Progress Done In Progress Done
Non DM&R
In Progress Done
Non DM&R (Test Group)
In Progress Done In Progress Done
Non DM&R
In Progress Done
Non DM&R
Internal
Non DM&R
Internal
Non DM&R
In Progress on AMO Capability Board
In Progress on GIS Capability Board
In Progress Review
In Progress DoneIn Progress Done
Non DM&R
In Progress Done
Non DM&R
In Progress Done
Non DM&R
In Progress Done
Client Verify
In Progress Done In Progress DonePromote to
TestIn Progress Done In Progress Done In Progress Done
In Progress Done
Client Verify
In Progress on GIS Capability Board
In Progress on Java Capability Board
In Progress
In Progress Review
In Progress Done In Progress Done
In Progress Done
Non DM&R (prod)
In Progress Done
Client Verify
In Progress Done
Client Feedback
In Progress Done
Dev Ready
In Progress DonePromote to
TestIn Progress Done
Promote to UAT
In Progress Done
In Progress Done
Non DM&R
In Progress Done
Client Verification
Postponed
Resolved
Cancelled / On Hold
Completed
Postponed
Resolved
Cancelled / On Hold
Completed
Lotus Notes
Maintenance and Operations
Geographic Information Systems
Java Centre of Excellence
Procurement
Data Management and Reporting
Agile from the trenches: Story #2: Learn your way to product
success
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Financial Services Institution wanting to build a new innovative product for mobile payments
Phone manufacturers
Banks
NOT EXHAUSTIVE
• Increase interchange revenues due to increased transactions
• Increase revenues from more expensive hardware sales
• Gain part of the interchange (e.g., through real-estate fees for SIM as Secure Element)
• Create a parallel payments solution or participate in existing payments network (e.g., in-game purchases)
• Gain part of the interchange (e.g., by providing an eWallet)
• Gain revenues from loyalty, couponing and ads (e.g., Google)
• Convenience, ease-of-use and security
Merchants
Trusted Service Managers
Mobile NFC Ecosystem
MNOs
Issuers
Independent Players
Consumers
Acquirers
OEMs (Handsets, Chips, etc.)
OS / App Developers
Card Networks
• Increase revenues from managed services
• Reduce interchange cost• Real-time, location-based
coupons / rewards to drive foot-traffic
• Protect margins from interchange revenues
• Retain control over payments space
• Protect margins from interchange revenues
• Create a parallel payments solution or participate in existing payments network (e.g., PayPal)
• Increase customer loyalty (e.g., Starbucks)
New product ideaGenerate a
product hypothesis
Extract assumptions
Visualize and continuously
validate
Pursue or pivot with a new product hypothesis
Launch Minimum
Viable Product
Lots of competitors and partners
Complex ecosystem
How do we apply agile to help us build the right product?
The organization applied Lean Startup with Kanban to enable high agility and feedback in the product development lifecycle
!
- 19 -
Product Market
Generating the hypothesis
Key Partners Key Activities Product Key Metrics of Success
Customer Segment
Key Resources Place / Channel
Cost Price / Revenue
Development services offered as a white labeled solution by Partner X
Software developer for SDK &Wallet provider
Marketing agency to develop collateral for marketing campaign and PR
Market ValidationSolution DeliveryLab ValidationPilotRoll-out Marketing
Internal delivery teamLegal/Marketing/ FinancePast products
What Key Resources [People) and Capabilities [Process] does our Product leverage?
What Key Activities does our Product Require (e.g. to Build, to Support, etc.)?
Who are our Key Partners?
Who are our key Suppliers? What is our Unique Value Proposition to our Customer Segments?
What customer problem are we solving?
What are the major features of our solution?
Customer: Fast payment, and conveniently available on a phone
Merchant: Speed of processing customers through lines
Issuer: Mobile innovation and new channel to communicate to debit users
Multiple iterations
1-2 Issuers1K customers1-2 merchants10%↑ Social Media15%↑ Web Traffic
What are the key metrics that will tell us how our product is doing?
What channels will be leveraged to have our Product reach our Customer Segments?
Mobile AppBranding & AdvertisingPartner Networks
End CustomersEmotional spendersMature pragmatists
Merchants
AcquirersIssuers
What are our key customer segments and what are the unique requirements of each customer segment?
Mobile Network Operators
Development
Test Tools
Certification
Scripting
Marketing
Legal
What are the most important costs drivers inherent in our Product?
Merchants willing to pay X
Customers willing to pay Y
Acquirers & Issuers willing to pay Z
MNOs willing to pay A
- 20 -
Kanban was used to keep the team focused on validating experiments fast and accelerate the transfer to development
Validation Backlog by common area Plan
Validation
Agile from the trenches: Story #3: Rebuild into an agile organization
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Day 0: Lots of silos, poor delivery performance, inconsistent SDLC and urgency for real change drove an Agile Transformation
Tear down silos within their IT organization and setup co-located teams as delivery pods.
1 Manage IT delivery through Kanban and robust metrics.
2
Build a highly collaborative and trusting culture.
43Re-orient management and staff to leverage agile practices
- 23 -
Enterprise KanbanA dedicated, project level Kanban system for managers and executives
The Kanban was used by Managers and executives to: Visualize projects and maintenance releases Engage in issue escalation/resolution through standups Limit projects based on capacity
- 24 -
Agile Kanban Pilot ProjectsSetting up cross functional teams using a mixture of story mapping, CRC modeling, planning poker alongside Kanban systems
Project teams adopted agile practices to Decompose work using Story Mapping and BDD Manage projects based on velocity and user stories Collaboratively estimate it introduced to planning poker Facilitate collaborative design sessions using agile modeling techniques
Putting it all together
- 26 -
We are seeing organizations overcome these challenges to start unlocking the full benefits of agile
Observations of patterns of success
There is no one right “agile” approach – organizations need to adapt agile for their
environment and adopt a learning based approach to figure out what works for them
Agile is more than just an SDLC – it’s a new way thinking and requires people to change
their definition of success and way of working
Management needs help – managers are traditionally the execution engine of the
organization and they need support in understanding the change in their role and
management style
Double down on improving governance – getting agile right for pilots is easy, for
organizational rollout we need a strong governance system that accelerates decision-
making and resolves problems fast
Dedicated support is essential – change is hard and long, the organization needs focused
support to “coach” the people into how to learn their way to success
Being agile is about delivering greater business value and not just following the process
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How to get started or take your agile adoption to the next level?
Start with where you are today and take a look at Kanban
Approach
• Map out how technology delivery work flows through the organization from ideation to delivery / launch
• Decompose the work into fine grained units of value (e.g., features, stories)
• Balance demand versus capacity based on delivery commitments by limiting work-in-progress
• Visualize work as it flows through the organization on a physical board
• Limit total work in progress
• Identify and eliminate bottlenecks in real-time within projects
• Develop an evolutionary policy framework to support better performance and efficiency
• Drive collaboration and encourage teams to improve the process
• Implement metrics and measurements focused on customer value and build a quality management capability
• Move towards greater predictability by continuously improving based on quantifiable metrics
• Align reward and recognition systems to reinforce continuous improvement culture and adoption of new capabilities (longer term)
Establish a System of Work
Visualize the Work Continuously Improve
- 28 -
Alexis HuiDeloitte LEAN Co-LeadManager – LEAN [email protected]
Thank you for your timeKey contacts for Deloitte LEAN