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copyright (c) Net Objectives, Inc. All Rights Reserved. 4 November 2018 1 Or, how to use the value stream to “poke the box” Understanding What Is Needed For Agile at Scale By Looking at the Value Stream Al Shalloway CEO, Enterprise Consultant © Copyright Net Objectives, Inc. All Rights Reserved © Copyright Net Objectives, Inc. All Rights Reserved 2 Al Shalloway CEO, Founder alshall@NetObjectives.com @AlShalloway Co-founder of Lean-Systems Society Co-founder Lean-Kanban University Contributor to SAFe

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Page 1: Understanding What Is Needed For Agile at Scale By Looking ... · Understanding What Is Needed For Agile at Scale By Looking at the Value Stream Al Shalloway CEO, ... LEAN PORTFOLIO

copyright (c) Net Objectives, Inc. All Rights Reserved.

4 November 2018

1

Or, how to use the value stream to “poke the box”

Understanding What Is Needed For Agile at Scale By Looking at the Value Stream

Al ShallowayCEO, Enterprise Consultant

© Copyright Net Objectives, Inc. All Rights Reserved© Copyright Net Objectives, Inc. All Rights Reserved 2

Al ShallowayCEO, Founder

[email protected]

@AlShalloway

Co-founder of Lean-Systems SocietyCo-founder Lean-Kanban University Contributor to SAFe

Page 2: Understanding What Is Needed For Agile at Scale By Looking ... · Understanding What Is Needed For Agile at Scale By Looking at the Value Stream Al Shalloway CEO, ... LEAN PORTFOLIO

copyright (c) Net Objectives, Inc. All Rights Reserved.

4 November 2018

2

© Copyright Net Objectives, Inc. All Rights Reserved© Copyright Net Objectives, Inc. All Rights Reserved 3

ASSESSMENTSCONSULTING

TRAININGCOACHING

Lean ManagementProject Management

technical

Lean for ExecutivesProduct Portfolio ManagementBusiness Product OwnerProduct Owner

Leanban / Kanban / Scrum ATDD / TDD / Design Patterns

Onsite SPC Leading SAFe®Agile ArchitectureProduct Manager/PO

© Copyright Net Objectives, Inc. All Rights Reserved© Copyright Net Objectives, Inc. All Rights Reserved 4

Thus, the task is not so much to see what no one yet has seen, but to think what nobody yet has thought about that which everybody sees.

Schopenhauer

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copyright (c) Net Objectives, Inc. All Rights Reserved.

4 November 2018

3

© Copyright Net Objectives, Inc. All Rights Reserved© Copyright Net Objectives, Inc. All Rights Reserved 5

Agenda

1. Business Agility

2. The Value Stream

3. Why Delays Cause Waste

4. MVPs vs. MBIs

5. Achieving Business Agility

© Copyright Net Objectives, Inc. All Rights Reserved© Copyright Net Objectives, Inc. All Rights Reserved 6

DEFINITION

The realization of the highest business value in a shorter amount of time, predictably, sustainably, and with high quality.

By working in small delivery increments we continuously adjust to what is needed – enabling change to direction at low cost.

Goal and Benefit of Business Agility

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© Copyright Net Objectives, Inc. All Rights Reserved© Copyright Net Objectives, Inc. All Rights Reserved 7

Value must be defined by the business stakeholders and is unique to the business.

This definition is the basis for business initiatives.

© Copyright Net Objectives, Inc. All Rights Reserved© Copyright Net Objectives, Inc. All Rights Reserved 8

Agenda

1. Business Agility

2. The Value Stream

3. Why Delays Cause Waste

4. MVPs vs. MBIs

5. Achieving Business Agility

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copyright (c) Net Objectives, Inc. All Rights Reserved.

4 November 2018

5

© Copyright Net Objectives, Inc. All Rights Reserved© Copyright Net Objectives, Inc. All Rights Reserved 9

Common Organizational Structure

inspired by Dan North, BSC/ADP 2012

Marketing Product Management

Development Support

© Copyright Net Objectives, Inc. All Rights Reserved© Copyright Net Objectives, Inc. All Rights Reserved 10

The Nature of Our Work

Marketing Product Management

Development Support

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© Copyright Net Objectives, Inc. All Rights Reserved© Copyright Net Objectives, Inc. All Rights Reserved 11

We Manage Our People this Way

even though our value flows this way

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Time-to-Market

Marketing Product Management

Development Support

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copyright (c) Net Objectives, Inc. All Rights Reserved.

4 November 2018

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© Copyright Net Objectives, Inc. All Rights Reserved© Copyright Net Objectives, Inc. All Rights Reserved 13

Time-to-Market

Marketing Product Management

Development Support

© Copyright Net Objectives, Inc. All Rights Reserved© Copyright Net Objectives, Inc. All Rights Reserved 14

Agenda

1. Business Agility

2. The Value Stream

3. Why Delays Cause Waste

4. MVPs vs. MBIs

5. Achieving Business Agility

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copyright (c) Net Objectives, Inc. All Rights Reserved.

4 November 2018

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© Copyright Net Objectives, Inc. All Rights Reserved© Copyright Net Objectives, Inc. All Rights Reserved 15

How often does work wait?

Adding Value

Waiting

Adding Value Adding Value

Adding Value

Adding Value Adding Value

What percent of the time is our work moving forward?

How would you know?

No one is managing this in most companies.

Waiting

How much of the time is it waiting for something else to be done?

Wai

tin

g

Adding Value

Adding Value

Adding Value

Adding Value

Waiting

Marketing Product Management

Development Support

© Copyright Net Objectives, Inc. All Rights Reserved© Copyright Net Objectives, Inc. All Rights Reserved 16

too many projects

projects are too large

value delivered too late

the more we pushthe more we fall behind

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4 November 2018

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© Copyright Net Objectives, Inc. All Rights Reserved© Copyright Net Objectives, Inc. All Rights Reserved 17

The Whole Picture

Marketing Product Management

Development Support

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You don't define value streams… You map them.

Manage flow and reorganize your talent to

reduce time from concept to value realization

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Lean shifts us from looking at people to looking at the value streams and the workflow to removedelays

© Copyright Net Objectives, Inc. All Rights Reserved© Copyright Net Objectives, Inc. All Rights Reserved 20

Agenda

1. Business Agility

2. The Value Stream

3. Why Delays Cause Waste

4. MVPs vs. MBIs

5. Achieving Business Agility

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© Copyright Net Objectives, Inc. All Rights Reserved© Copyright Net Objectives, Inc. All Rights Reserved 21

The Minimum Viable ProductGeared towards startups building products for early adopters.

First time a product/service is released.

Usually built by a small team that can pivot.

What do you do when:• You are an established company?• It is an enhancement to an existing product/service?• The teams required to build it are not aligned?

© Copyright Net Objectives, Inc. All Rights Reserved© Copyright Net Objectives, Inc. All Rights Reserved 22

DEFINITION

The minimum amount of business value that can be built, deployed and consumed that makes sense from a business perspective

Minimum Business Increment (MBI)

Mark Denne and Jane Cleland-Huang Software by Numbers

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An MBI is not a reason to deliver less.

It is a reason to deliver sooner.

It must contain all that is needed for value realization.

It provides something to alignaround.

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actions to realize intentwhat to do and how

intentwhat to achieve and why

auto

no

my

alignment

the more alignmentyou have, the more autonomyyou can grant

Stephen BungayArt of Action

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© Copyright Net Objectives, Inc. All Rights Reserved© Copyright Net Objectives, Inc. All Rights Reserved 25

There’s nothing quite so useless, as doing with great efficiency, something that should not be done at all.

-Peter Drucker

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Your team has three projects. Each will take the entire team one month and delivers one unit of value.

Plot value delivery curves for two different scenarios.

Project A

Project B

Project C

time

Scenario 2: Doing the projects in parallel (simultaneously). Assume 20% task switching overhead for each team member.

Scenario 1: Doing the projects serially.

Project A Project B Project C

time

Exercise: Value Delivery

TIME: 10 MINUTES

time

valu

e

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© Copyright Net Objectives, Inc. All Rights Reserved© Copyright Net Objectives, Inc. All Rights Reserved 27

Why MBIs are so useful

time

valu

e

A

B

SERIAL

time

valu

e

PARALLEL

C

time

valu

e

SERIAL MBIs

A

B

C

A

B

C

A

B

C

time

valu

e

PARALLELMBIs

A

B

C

A

B

C

© Copyright Net Objectives, Inc. All Rights Reserved© Copyright Net Objectives, Inc. All Rights Reserved 28

There is more value created with overall alignment than with local excellence.

Don Reinertsen

Visualize the result and allow teams to form their own solutions.

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SerialParallel

risk

value

valuerisk

Time Time

What risks do these approaches lower?

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incrementally realizing Business Value evolving the system

risk

value

valuerisk

Time Time

What risks do these approaches lower?

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© Copyright Net Objectives, Inc. All Rights Reserved© Copyright Net Objectives, Inc. All Rights Reserved 31

AgilityBusiness Value Increments not Development Cycles

is about

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Viewing SAFe® from a Value Stream Perspective

1. Business Agility

2. The Value Stream

3. Why Delays Cause Waste

4. MVPs vs. MBIs

5. Creating Context Across the Value Stream

6. Achieving Business Agility

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© Copyright Net Objectives, Inc. All Rights Reserved© Copyright Net Objectives, Inc. All Rights Reserved 33

Portfolio

Large Solution

Program

Team

Enterprise

Solutions Backlog

CapabilitiesEnablers

OPSSUPPORT

MARKETINGSHARED

SERVICES

Note: Feedback loops are not shown but are present throughout the value stream

ENTERPRISE ARCHITECT

LEAN PORTFOLIO

MANAGEMENT

SYSTEM ARCHITECT

PLAN-NING

IMPLEMENTATION & INTEGRATION RELEASE

STRATEGIC PLANNING

Solutions

Program BacklogMMFs,

Features,Enablers

Portfolio Backlog

EpicsSolutions, MVPs

Enablers

SOLUTION TRAIN

ENGINEER

Value stream

strategic themes

TECHNOLOGY STAKEHOLDER

OTHER STAKEHOLDER

BUSINESS STAKEHOLDER

SOLUTION MGNT

SOLUTION ARCHI/ENG

PRODUCT MANAGER

PRODUCT OWNER

RTE

SAFe®

Team BacklogsFeatures, stories,

Enablers

© Copyright Net Objectives, Inc. All Rights Reserved© Copyright Net Objectives, Inc. All Rights Reserved 34

OPSSUPPORT

MARKETINGSHARED

SERVICES

ENTERPRISE ARCHITECT

LEAN PORTFOLIO

MANAGEMENT

SYSTEM ARCHITECT

PLAN-NING

IMPLEMENTATION & INTEGRATION

RELEASE

STRATEGIC PLANNING LEAN-AGILE PRODUCT MANAGEMENT

Solutions

Solutions Train

SOLUTION TRAIN

ENGINEER

Value stream

strategic themes

TECHNOLOGY STAKEHOLDER

BUSINESS STAKEHOLDER

SOLUTION MGNT

SOLUTION ARCHI/ENG

PRODUCT MANAGER

PRODUCT OWNER

RTE

SAFe®

OTHER STAKEHOLDER

Solutions Backlog

CapabilitiesEnablers

Program BacklogMMFs,

Features,Enablers

Portfolio Backlog

EpicsSolutions, MVPs

Enablers

Team BacklogsFeatures, stories,

Enablers

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© Copyright Net Objectives, Inc. All Rights Reserved© Copyright Net Objectives, Inc. All Rights Reserved 35

OPSSUPPORT

MARKETINGSHARED

SERVICES

ENTERPRISE ARCHITECT

LEAN PORTFOLIO

MANAGEMENT

SYSTEM ARCHITECT

PLAN-NING

IMPLEMENTATION & INTEGRATION

RELEASE

STRATEGIC PLANNING LEAN-AGILE PRODUCT MANAGEMENT

Solutions

Solutions Train

SOLUTION TRAIN

ENGINEER

Value stream

strategic themes

TECHNOLOGY STAKEHOLDER

BUSINESS STAKEHOLDER

SOLUTION MGNT

SOLUTION ARCHI/ENG

PRODUCT MANAGER

PRODUCT OWNER

RTE

OTHER STAKEHOLDER

Solutions Backlog

CapabilitiesEnablers

Program BacklogMMFs,

Features,Enablers

Portfolio Backlog

EpicsSolutions, MVPs

Enablers

Team BacklogsFeatures, stories,

Enablers

SAFe®

strategic themes

What to invest in

InitiativesMBI Backlog

MBIs

PortfolioBusiness

Increments

BUSINESS ARCHITECT

FLEX with MBIsAPPLICATION

DEV MGRTECHNOLOGY

DELIVERY MANAGER

Technology Delivery Manager can be thought

of as a combination of the RTE & STE roles.

Application Development Manager

encompasses the solutions roles in SAFe

Program BacklogFeaturesEnablers

Business Architect attends to the relationship

between new offerings and existing capabilities

SAFe®

© Copyright Net Objectives, Inc. All Rights Reserved© Copyright Net Objectives, Inc. All Rights Reserved 36

“A system must be managed. It will not manage itself. Left to themselves, components become selfish, competitive, independent profit centers, and thus destroy the system … The secret is cooperation between components toward the aim of the organization.”

—W. Edwards Deming

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37© Copyright Net Objectives, Inc. All Rights Reserved 37

Viewing SAFe® from a Value Stream Perspective

✓ Value streams are mapped, not defined

✓ Useful for seeing context of downstream items

✓ MBIs are useful concepts to encapsulate solutions, MVPs, MMFs, capabilities, enablers

© Copyright Net Objectives, Inc. All Rights Reserved© Copyright Net Objectives, Inc. All Rights Reserved 38

ASSESSMENTSCONSULTING

TRAININGCOACHING

Lean ManagementProject Management

technical

Lean for ExecutivesProduct Portfolio ManagementBusiness Product OwnerProduct Owner

Leanban / Kanban / Scrum ATDD / TDD / Design Patterns

Onsite SPC Leading SAFe®Agile ArchitectureProduct Manager/PO

[email protected]