managers role in scrum munich 2017 · pdf file• hold scrum masters accountable for...

Managers Role in Scrum Munich Dec 2017

© 1993-2016 Jeff Sutherland & Scrum Inc.

Management Becomes Leadership

2

So what is the role of Management in Scrum?

• Create a vision and communicate it throughout the organization • Create and maintain an ecosystem that facilitates product creation • Implement the Scrum values

• Eliminate organizational debt • Create a business plan/organization that works • Provide all resources the teams need

• Remove waste identified by the teams • Assure organization is set up to maximize production • Value Stream Mapping and process efficiency are the best tools

• Hold Product Owners accountable for value delivered per point • Hold Scrum Masters accountable for process improvement and team

happiness • Hold Development Teams accountable for quality increase and empower technical debt remediation


“We want the True Scrum!” Akihito Fujii, GM Enterprise Product Management, KDDI

3

Nonaka-san and Kenji Hiranabe


Blockers We Mentioned in HBR Paper

• Manage in ways that block agility • No training - lack understanding • Launch countless initiatives with urgent deadlines • Failure to prioritize and focus • Spread themselves and people across many

projects • Schedule frequent meetings with members of

agile teams that disrupt work • Get overly involved in work of teams • Talk more than listen • Promote marginal ideas the team has rejected • Routinely overturn team decisions • Add review layers and controls that magnify waste • Best of intentions erode the benefits that agile

innovation can deliver4

© 1993-2015 Jeff Sutherland & Scrum Inc.5

Management Training 101 Money Ball


Maersk Profit Drops on Weak Freight Rates Lower oil prices also weighed on the Danish conglomerate’s second-quarter earnings - WSJ 12 Aug 2016

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Mr. Skou said costs in Maersk Line were at an all-time low, dropping for the first time below $2,000 per container. Maersk Oil has pushed down its break-even level to between $40 and $45 a barrel from around $50 to $55.


Money Ball

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Money Ball for Scrum Starts with Facing Reality Seen at GE, Toyota, 3M, and many other companies

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DarkWork

JunkStories

CustomerWill Use

30% of staff working on zero value stories • Lack of direction causes staff to make up work • Unwillingness to prioritize proliferates useless projects

64%*70% = 45% of staff delivering stories the customer will never or rarely use (Standish Group)

25% of staff delivering stories customers will use


Process Efficiency

9

CustomerWill Use

25% of staff delivering useful stories 5% process efficiency

Organizational delivery capacity - 1.25%

Goal: Improve organizational delivery to 5%“Twice the work in half the time”


Project success rates 2011-2015 Standish Group International, Inc.

Agile in Name Only

Traditional Projects Agile Projects

On average 65% of requirements change during software development causing waterfall projects to have an 11% worldwide success rate during 2011-2015.

(Jim Johnson, Standish Group, 2015)

No Working Product

TrueScrum


California Agile

11

Aggressive Scrum

Sprints never finish with working product Sprints always finish with working product


Management Step 1: Dual Operating System


The Dual Operating System

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EMS/EAT

Hierarchy (KLO, Data Center Management, Service Desk)

Tools like Kanban, ScrumBan, Lean etc

Network (Service delivery, new capability, enhancements,

services, app support, tech uplift, removal of tech debt) Scrum, Scrum@Scale, Agile Techniques


Diag

Large Manufacturing Organization

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Product Leaders

Horizontal Leaders

Financial modeling BillingPLM Engineering

Test

Sensor Enablement

New make

Non-conformance QualityDiagnostics Salesforce

Full Stack Big Data

Brain Trust made up of Directors in Product and Technology Delivery teams • Directors set direction of products based on Vision • Talk to each other about products and new “missions” • Listen to Customers and Product Owners

Warehouse

• VPs set True North and Vision • Directors are empowered to work across

organization lines to solve problems

Asset Management


Diag QualityTestPLMPLMFin Model

Brain Trust- What should we work on?

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• Every Monday 8am-noon • New Missions are presented with a Vision, Lean Canvas &

Roadmap • Challenge each other to ensure we are “working on the

right stuff” • Prioritize Epics across Product backlogs based on shared

information

Diag

Product Leaders

Horizontal Leaders


Test

Sensor Enablement

New make


Full Stack Big Data

Warehouse

Asset Management

Product Leaders

Horizontal Leaders


Test

Sensor Enablement

New make


Big Data

Warehouse

Asset Management

Full Stack


Quality

Meta Fin Model

PLMPLMTest

Diag

Let’s solve this problem, now what?

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• Form “mission-based” teams to tackle big problems using stable development teams

• Create Meta Scrum with product owners in different orgs (Digital and Business)

• Visit customers, get feedback, report successes and failures

• Come back in 90 days with updated Vision, Canvas, Roadmap and demo updates.

Meta

• Teams made up of Product Owner from Product Team and stable development teams

• Full Stack and Big Data teams DevOps. Responsible for end to end deliver (includes UI, services, db, spinning up servers, testing, security, CI/CD, monitoring…)

Brain Trust feed the Network of TeamsProduct Leaders

Horizontal Leaders


Test

Sensor Enablement

New make


Big Data

Warehouse

Asset Management

Full Stack

Product Leaders

Horizontal Leaders


Test

Sensor Enablement

New make


Big Data

Warehouse

Asset Management

Full Stack

Large Financial Institution ~45,000 employees

Card IT (2,000 people)

Fraud Rewards Partners CollectionsBanking Loans

IT Operations (900 people in horizontal teams)

Windows Unix Storage Network EA Info Security

Data Center

Operations

Cloud Services

Release Management

• Business Divisions started the agile journey.

• Organized into value stream.

• No ITO participation, so infrastructure and release still slow.

Enterprise Architecture

Networking

Unix Builds

Windows Builds

60% Outsourced

System TeamSystem Team

Card IT (2,000 people)

Fraud Rewards Partners CollectionsBanking Loans

IT Operations (900 people in horizontal teams)

Windows Unix Storage Network EA Info Security

Data Center

Operations

Cloud Services

Release Management

• ITO created Systems teams to serve fast delivery for the Business Divisions.

• Some had more than one system team.

• ITO teams not involved in delivery did not change.

System Team System Team

Large Financial Institution ~45,000 employees

A System Team is a Horizontal Cross Functional Team (HXF)

Enterprise Architecture

Networking

Unix Builds

Windows Builds

40% Outsourced


Initial Steps For Agile Operating System

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DarkWork

JunkStories

CustomerWill Use

1. Create Leadership Team that owns Agile initiatives2. Product Owner and Scrum Master Training for all 3. Leadership creates Product Owner organization4. Everything is prioritized - eliminate Dark Work 5. Create teams that focus on highest priorities initiatives first 6. For each initiative eliminate useless features7. Descale - set up initial teams to serve as model for

organization. Expand in rolling wave when they can do “twice the work in half the time.”


Mike Tromans, Engineering Manager, Digital Engineering, Toyota Production Engineering, 2017.


More Case Studies: Recent Results

• 200 people worked for two years and delivered nothing at a large auto company

• Cut project size to 20 people on Scrum teams and delivered to production on manufacturing line in six sprints (3 months).

• At 3M normal delivery cycle for new materials product is 2 years.

• New Scrum teams delivered 3 new products in 3 months after introducing Scrum@Scale in the Traffic Safety Division.

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3M Earnings Jump as Push Into Technology Pays Off

Revenue in the electronics and energy segment rose 13% in the company’s third quarter as overall revenue increased 6%.

The company also highlighted its car business, saying its traffic safety and automotive electrification units complemented each other, leading to higher sales, lower costs and increased foresight on future car trends. The company makes electric car displays, backup-camera monitors, reflective sheeting used on highway signs and speed cameras.Mr. Thulin has also been working to increase the company’s high-tech image even though it is best known for office products and cleaning supplies.

3M shares rose 5.1% to close at $234.65, the stock’s largest single-day percent gain since 2009 and its highest level on record, based on data that goes back to 1972

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24 Oct 2017

https://www.wsj.com/articles/3ms-image-problem-its-products-are-everywhere-but-often-overlooked-1426024791

https://www.wsj.com/articles/3ms-image-problem-its-products-are-everywhere-but-often-overlooked-1426024791


3M Management Knows IT Scaling Frameworks Don’t Work Work = Twice the Work in Half the Time

• Some are not based on the Scrum Guide so they don’t even work in IT

• For sales, marketing, and other non-IT parts of an organization IT Scaling Frameworks don’t work

• Most of our customers today are in manufacturing and they constantly complain they do not want to hear about Scrum in software.

• To scale across an organization or in non-IT settings we need Scrum@Scale.

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@

Implementing true Scrum is the first step to scaling!

Lean Scrum Agile

Inspired One Parent

1950’s 1990’s 2001

Implementation

2014


Case Studies

Scrum@Scale


First: Do Things That Don’t Scale

In order to scale, you have to do things that don’t scale. It may sound counter-intuitive. But in order to scale, you have to get your hands dirty. Hand-craft the core experience. Serve your customers one-by-one. And don’t stop until you know exactly what they want. That’s what Airbnb CEO Brian Chesky did.

Tim Ferris interviewing Reid Hoffman, host of “Masters of Scale.”

One of the most common types of advice we give at Y Combinator is to do things that don't scale.

Paul Graham

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https://overcast.fm/+ELdU-vFQo/25:37

https://overcast.fm/+ELdU-vFQo/25:37


Developing a Scalable Operating Model Descale First - Create a Set of Functional Teams

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• SM - Protects The Team• Servant leader.• Coaches the Team & Product Owner in Scrum.• Implements the values of the Agile Manifesto.• Facilitates Scrum ceremonies.• Ensures work & impediments are made visible.• Maintains external radiators of team progress.• Encourages openness & transparency.• Identifies and ensures impediments are resolved.• Promotes Kaizen thinking and waste reduction.

Team

SM

P

@

Descaling Case Study: SimpliVity


Case Study #10: 9 Teams, 10 3-Week Sprints

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Faster, Cooler, Cheaper

• A true Scrum team is equivalent to 5 typical Scrum teams

• Faster - only takes a few sprints to boot up

• Cooler • Product Owner is removing technical

debt • Points are allocated to innovation • Teams are more motivated to produce

better product • Cheaper

• Product is produced at 20% of the cost of competitors products.

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Case Study: 3M• Sales: $31 Billion • R&D: $1.7 Billion • Market Cap $113.52B

31We have seen some teams reach, we’ve been tracking the percent change, … 500 percent increase in velocity. Tammy Sparrow

Presented at Give Thanks for Scrum. Cambridge, Nov 2016


Case Study: 3M-HIS

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Executive Meta Scrum

EAT

PeopleOps

People Operations(Agile HR)

Communitiesof Practice

PeopleOps

CR

CoP

CoP

CRCustomerRelations

and Intelligence

CCPO MS

S

CPOMS

SoS

SoSoS

CPOMS

SoS

CPOMS

SoS

CPOMS

SoS

CPOMS

SoS

Know

ledge Teams (on Team

s)

Infr

astr

uctu

re T

eam

s (o

n Te

ams)

CCPO MS

S

CPOMS

SoS

SoSoS

CPOMS

SoS

CPOMS

SoS

CPOMS

SoS

CPOMS

SoS

CCPO MS

S

CPOMS

SoS

SoSoS

CPOMS

SoS

CPOMS

SoS

CPOMS

SoS

CPOMS

SoS

CCPO MS

S

CPOMS

SoS

SoSoS

CPOMS

SoS

CPOMS

SoS

CPOMS

SoS

CPOMS

SoS

CCPO MS

S

CPOMS

SoS

SoSoS

CPOMS

SoS

CPOMS

SoS

CPOMS

SoS

CPOMS

SoS


Scaling the SMSM

SM SM SM SM SM

SM SM SM SM SM

SM SM SM SM SM


Scrum-of-Scrums Perspective Example: 5 teams

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SOS

• Scrum of Scrums Scales the SM • Surfaces & Removes Impediments• Mirrors Daily Scrum• Limits Communication Pathways• Achieves Communication Saturation• Cross-Team Coordination• Delivers potentially shippable increment of

product or service


Scrum-of-Scrums-of-Scrums Level 2 25 Teams of 5

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• Scrum of Scrums of Scrums• Surfaces & Removes Impediments• Mirrors Daily Scrum• Limits Communication Pathways• Increases Communication Saturation• Cross-Team Coordination• Delivers potentially shippable increment

of product or service

SoSoS


Executive Action Team Perspective Example: 125 Teams

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EAT

• EAT - Eats Impediments• Removes Impediments

not handled closer to the Team level

• Mirrors Daily Scrum• Limits Communication

Pathways• (300 vs. 195,000)

• Cross-Value Stream Coordination

• Ex: 625 People Coordinate in 60 min.

• Owns Organizational Transformation Strategy

• Executes Transformation Strategy or delegates it to the Agile Practice

SoSo SoSo

SoSo

SoSo SoSo


Scaling the POPO

PO PO PO PO PO

PO PO PO PO PO

PO PO PO PO PO


The Team PO Builds, Refines, Plans

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• PO - Sets Team Priorities• Servant Leader• 50% w/ Customer, 50% w/ Team• Single Backlog

• Stories • Epics

• What not How• Systems Thinking - Oversees the Whole• Sometimes referred to as Line PO• Complete Responsibility Through Trust• Known-Stable-Interface to the Enterprise

Team

PO

SM


CPO Meta Scrum Aligns, Refines, Plans

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• Sets Priorities for MultipleTeam• Mirrors Refinement and Planning• Single Backlog Pulled by Line POs

• Epics• Features

• Cross-Team Coordination & Alignment• Systems Thinking - Oversees the Whole• Aligns with Stakeholders!

Meta ScrumCPO

PO

PO

PO

POPO


CCPO Meta Scrum Perspective Aligns, Decomposes, Refines

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• Sets Priorities for MultipleTeam• Mirrors Refinement and Planning• Single Backlog Pulled by Level 3 POs

• Features• Value Streams

• Cross-Team Coordination & Alignment• Systems Thinking - Oversees the Whole

CCPOMeta

Scrum

CPO

CPO CPO

CPO

CPO


Executive Meta Scrum Perspective Aligns and Sets Strategic Priorities for the Organization

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• Inhales Technical Priorities • Exhales Organizational Priorities • Mirrors Refinement & Planning

• Owns Organizational Vision

• Lead by the CCCPO• Servant Leader• CEO• SVP

• Single Backlog Pulled by CCPO• Value Streams• Initiatives

• Sets Organizational Priorities

CCPOMS

CCPOMS

CCPOMS

CCPOMS

CCPOMS

Executive Meta Scrum


Case Study: Scrum Team at SAAB Technologies

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Scaling SAAB Technologies to Hundreds of Teams Over 2000 People in 1 Hour!

• 8:30 Executive Action Team • 8:15 Scrum of Scrum of Scrum of Scrums • 8:00 Scrum of Scrum of Scrums • 7:45 Scrum of Scrums • 7:30 Daily Scrum

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CCPO MS

S

CPOMS

SoS

SoSoS

CPOMS

SoS

CPOMS

SoS

CPOMS

SoS

CPOMS

SoS

CCPO MS

S

CPOMS

SoS

SoSoS

CPOMS

SoS

CPOMS

SoS

CPOMS

SoS

CPOMS

SoS

CCPO MS

S

CPOMS

SoS

SoSoS

CPOMS

SoS

CPOMS

SoS

CPOMS

SoS

CPOMS

SoS


Case Study: Toyota USA 2017• CSM and CSPO training for senior

management • Executive Action Team

• Agile Practice • Executive MetaScrum

• Rank ordered all Toyota projects • Some initial projects did better than 3 times

the work in 1/3 the time • Toyota Corporate Leadership committed to

Scrum pilots in Nagoya

• Challenges • Educating traditional waterfall management • Dealing with 70% outsourced to waterfall

44


Case Study: BMW Revenue: 94.16B Euro Market Cap: 53.67B Euro

• All IT to Scrum immediately (>4000) • No waterfall will be allowed • Scrum will be pushed into manufacturing • Move from 70% outsourced to 70% insourced • Many experiments

• Advantages • Senior team is Knowledgeable

• Connected, electric, autonomous cars are upon us • Extreme sense of urgency • Culture of innovation

• Challenges • Connecting senior team vision with teams

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Scrum Training 17-21 July 2017 Tesla Factory

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1. Toyota, $155.88 billion market cap, 10.1 million sales 2. Daimler, (Mercedes-Benz), $70.35 billion, 3 million sales 3. Volkswagen, $67.24 billion, 10.3 million sales 4. Tesla, $60.28 billion, 76,230 sales 5. BMW, $54.77 billion, 2.4 million sales 6. GM, $51.45 billion, 9.6 million sales 7. Ford, $44.65 billion, 6.7 million sales

Market caps as of June 19 and 2016 worldwide sales


FrAgile - Shu State CEO does not have Agile Mindset

• Traditional management hierarchy creates project teams • “Scaling frameworks” are often used to provide scaffolding for the

legacy organization until it can evolve • This is a translation layer that protects the waterfall from

Agile and must ultimately be removed to get high performance

• Usually get 20-30% improvement in production although bureaucracy or changes in management often cripple and/or destroy agile implementation

48

Waterfall

Translation Layer

FrAgile


Agile - Ha State CEO changes management roles

• Management coaches the teams to self-organize and self-manage. Managers become leaders.

• Teams self-form against a prioritized backlog to maximize production. • Leaders create virtual teams that drive communities of practice across

company. • Leadership refactors the organization - target is minimum 200-400%

increase in production and reduction in time to market

49Su

stai

nabl

e

Managers become leaders Teams self-manage


Anti-Fragile - Ri State The Leading Edge of Organizational Development

• Hierarchy still exists but becomes competency based and enabling

• Teams self-organize product direction and refactor the organization

• Leadership supports wherever their skills are needed • Swarming makes organization stronger under stress

and can generate 500-1000% increase in production

50

Anti-fragile

Company is customer facingTeams drive strategy

@© 1993-2016 Jeff Sutherland & Scrum Inc.

Scrum is a productivity superweapon - it is shockingly efficient!Rick Horgan, Sr. Editor, Crown Business

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