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Presented at Agile Ottawa on December 8, 2009. This presentation provides a framework approach for implementing Agile Business with customer driven development. Key concepts include an Innovation Centric Culture with a Lean Operational Model surrounding Agile Scrum software development.
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An Agile Business FrameworkFor Customer Driven Development
Paul Relf(Twitter: @Paul_Relf)
AND
Catherine Louis (Twitter: @catherinelouis)
1Tuesday, December 8, 2009
AcknowledgementsFor Tonights Presentation (Dec 8, 2009)
http://finance.groups.yahoo.com/group/AgileBusiness/
2Tuesday, December 8, 2009
Innovation is a New Way of Doing SomethingIncremental Or Radical
Waterfall Development Limits Innovation By Removing the Freedom to Dream
3Tuesday, December 8, 2009
Oh, the Possibilities...What if?
x: dreamery: coder
z: applied innovation
x yz
4Tuesday, December 8, 2009
Oh, the Possibilities...What if?
You could meet the market need on-demand?
100% of the software you developed was used?
You knew your customers business and technical needs as well as your own?
Your productivity and quality was so high you could deliver a release every week?
Your employee’s were happy and motivated to drive unprecedented levels of productivity?
x: dreamery: coder
z: applied innovation
x yz
4Tuesday, December 8, 2009
Oh, the Possibilities...What if?
You could meet the market need on-demand?
100% of the software you developed was used?
You knew your customers business and technical needs as well as your own?
Your productivity and quality was so high you could deliver a release every week?
Your employee’s were happy and motivated to drive unprecedented levels of productivity?
The Impossible can always be broken down into Possibilities - Anonymous
x: dreamery: coder
z: applied innovation
x yz
4Tuesday, December 8, 2009
Oh, the Possibilities?
How do we enable these possibilities?
5Tuesday, December 8, 2009
Oh, the Possibilities?
How do we enable these possibilities?
With an ‘Innovation Centric Culture’
and a ‘Lean Operational Model’
5Tuesday, December 8, 2009
Characteristics of‘Innovation Centric Culture’
Empowered Teams (Scrum Teams include the Product Owner and sometimes the end customer)
Safe environment to innovate; product, process, tools and GTM
Balanced Ego
No when to ‘Fail’
People / Relationship Centric (Collaboration and Communication)
Environment to grow; journeymen, craftsman, master craftsman, level 3-4-5 leaders
6Tuesday, December 8, 2009
Characteristics of‘Lean Operational Model’
Able to respond to Customers Real Needs and Market Dynamics (Competition, Technology, Regulation, Business Models)
Based on Kaizen and the pursuit of excellence
Able to Test The Market with new Ideas
Identify Winners and Losers Quickly
Minimize Risk and Upfront cost
Acts with a Long Term Horizon
Weather storms
Basis of Values
7Tuesday, December 8, 2009
Hiranabe http://tweetphoto.com/5793753
Kaizen Gets You Started And Keeps You Going!
8Tuesday, December 8, 2009
Driving Business Agility and Velocity
Lean Operational Model
Inno
vatio
n C
entr
ic C
ultu
re
Maturity
9Tuesday, December 8, 2009
Driving Business Agility and Velocity
Lets Explore the ‘Lean Operational Model’...
Lean Operational Model
Inno
vatio
n C
entr
ic C
ultu
re
Maturity
9Tuesday, December 8, 2009
It Starts With The Customer
Rather than predicting where the market will be, deliver to the real market need using a “Customer Pull Model”
10Tuesday, December 8, 2009
It Starts With The Customer
Rather than predicting where the market will be, deliver to the real market need using a “Customer Pull Model”
More relevant software
Timely delivery
Faster Payback
Happier Customers
Less Waste
10Tuesday, December 8, 2009
You Need To Get Close To Customers....
Customers Gemba
Your Gemba
“In lean enterprises, traditional organizational structures give way to new team-oriented organizations which are centred on the flow of value, not on functional expertise.” Mary and Tom Poppendieck
11Tuesday, December 8, 2009
Customers want Capabilities NOT Releases
“If your product had XYZ it would be perfect”
“If I don’t get ABC by September, then I will not meet
my roll-out dead-line”
“We have to delay the release, because ABC is at risk and
it is for our most important customer”
“But if I can deliver XYZ now, then I can meet our
revenue plan!”
12Tuesday, December 8, 2009
Build What The Customer Wants(Features)
Releases are too big, and Stories are (often) too small
Minimal Marketable Features become the basis of development and delivery
Strive for Evenness - Muda
Be careful not to offer too many options!
“A minimal marketable feature is a chunk of functionality that delivers a subset of the customer’s requirements, and that is capable of returning value to the customer when released as an independent entity” - M Denne & H Cleland-Huang
CC - Flickr - cogdogbog
13Tuesday, December 8, 2009
Why Would You Need Releases Then?
14Tuesday, December 8, 2009
What Cost $100,000 Per Second?
Why Would You Need Releases Then?
14Tuesday, December 8, 2009
Why Would You Need Releases Then?
14Tuesday, December 8, 2009
Other Launch Examples?
Why Would You Need Releases Then?
14Tuesday, December 8, 2009
What is the Role of the Release?
15Tuesday, December 8, 2009
What is the Role of the Release?
Ultimately, you need to decouple the Release activities from the the Development:
Marketing
Design
Training, Knowledge Transfer
Day 2 Support
Channel Absorption
Etc., etc. HOKUSAI'S GREAT WAVE
“... set synchronization points based on experience and business need, and learning how to meet every deadline every time.” -- Mary Peppendieck (Dec 1, 2009)
15Tuesday, December 8, 2009
Other Challenges With Customer Driven Development
I am building a volume product, how do I select the right lead customer(s)?
How do I balance operational needs to deliver to the mass market?
How do I manage commitments and communicate a road map?
What are the implications on the release strategy?
Marco Bellucci - Flickr / Creative Commons
16Tuesday, December 8, 2009
What Most of Us Know...Lean techniques mapped into software development opened up a whole new paradigm
Agile, Scrum, Kanban, XP, tools, ...
17Tuesday, December 8, 2009
Beyond Scrum, How Do You Complete The Picture?
Thoughts? Ideas?
18Tuesday, December 8, 2009
The ‘Lean Operational Model’
Desired Product
(Product + Capabilities)
Customer Commitment
PrioritizedMinimal
MarketableFeatures
19Tuesday, December 8, 2009
The ‘Lean Operational Model’
Desired Product
(Product + Capabilities)
Customer Commitment
PrioritizedMinimal
MarketableFeatures
19Tuesday, December 8, 2009
The ‘Lean Operational Model’
Desired Product
(Product + Capabilities)
Customer Commitment
PrioritizedMinimal
MarketableFeatures
Customer commitmentPulls the required Content
Into Planning
19Tuesday, December 8, 2009
The ‘Lean Operational Model’
Desired Product
(Product + Capabilities)
Customer Commitment
PrioritizedMinimal
MarketableFeatures
19Tuesday, December 8, 2009
The ‘Lean Operational Model’
Desired Product
(Product + Capabilities)
Customer Commitment
PrioritizedMinimal
MarketableFeatures
19Tuesday, December 8, 2009
The ‘Lean Operational Model’
Desired Product
(Product + Capabilities)
Customer Commitment
PrioritizedMinimal
MarketableFeatures
Iterative
ScrumTeam
PrioritizedBacklog of
User Stories
19Tuesday, December 8, 2009
The ‘Lean Operational Model’
Desired Product
(Product + Capabilities)
Customer Commitment
PrioritizedMinimal
MarketableFeatures
Iterative
ScrumTeam
PrioritizedBacklog of
User Stories
19Tuesday, December 8, 2009
The ‘Lean Operational Model’
Desired Product
(Product + Capabilities)
Customer Commitment
PrioritizedMinimal
MarketableFeatures
Iterative
ScrumTeam
PrioritizedBacklog of
User Stories
Beta Trials
19Tuesday, December 8, 2009
The ‘Lean Operational Model’
Desired Product
(Product + Capabilities)
Customer Commitment
PrioritizedMinimal
MarketableFeatures
Iterative
ScrumTeam
PrioritizedBacklog of
User Stories
Beta Trials
19Tuesday, December 8, 2009
Release and Backlog Dynamics
Tension or Peaceful Co-existence?
Two Parts
Planning
Execution
20Tuesday, December 8, 2009
UserStory
UserStoryUser
Story
MinimalMarketableFeature
UserStoryUser
Story
MinimalMarketableFeature
UserStory
MinimalMarketableFeature
UserStory
UserStoryUser
Story
MinimalMarketableFeature User
Story
UserStory
MinimalMarketableFeature
UserStory
UserStoryUser
Story
MinimalMarketableFeature
1 2 3 4 5 6 7
Sprint
8 9 10
UserStoryUser
Story
MinimalMarketableFeature
UserStory
MinimalMarketableFeature
UserStoryUser
Story
MinimalMarketableFeature
UserStory
MinimalMarketableFeature
UserStory
MinimalMarketableFeature
Release 1(Every 2 months)
Pareto Analysis keeps you focussed on the right things (top 20%). Do at;
Portfolio
Product
Release
Feature
and Story Level
A Set of MMF’s becomes the candidate content for the release
Release plans should be negotiated
Prioritization is only one input into scheduling and assignment of feature content
Release Planning / Prioritization
21Tuesday, December 8, 2009
Attributing Business ValueDuring Planning...
Agree on how to do it. There is no One or Right Way
Use Pareto Rule at each level (portfolio, project, release, feature, and story)
Somewhat easier to ‘Estimate’ monetary value of features, however very difficult to attribute value to individual user stores.
Relative Business Value is about doing the most important thing first - Don’t worry about being precise or concrete
Be careful to not starve innovation when solely taking on content at the top of the backlog
22Tuesday, December 8, 2009
Negotiate During Release Execution
1 2 3 4Sprint
UserStory
UserStory User
Story
UserStory User
Story
UserStory
UserStoryUser
StoryEPIC
Release
ScrumTeam 2
ScrumTeam 3
UserStoryUser
StoryEPIC
MinimalMarketableFeature
While the Release is running, MMF’s become WIP
Unfinished features are considered to be waste
You can still be Agile with content adjustments, but if the content doesn’t fit in the release, then do not allow it in.
Re-scope
Punt (hold to Beta)
Add more people
Minimize Pre-release Work
23Tuesday, December 8, 2009
Negotiate During Release Execution
1 2 3 4Sprint
UserStory
UserStoryUserStory
UserStory User
Story
UserStory
UserStoryUser
StoryEPIC
Release
ScrumTeam 2
ScrumTeam 3
UserStoryUser
StoryEPIC
MinimalMarketableFeature
While the Release is running, MMF’s become WIP
Unfinished features are considered to be waste
You can still be Agile with content adjustments, but if the content doesn’t fit in the release, then do not allow it in.
Re-scope
Punt (hold to Beta)
Add more people
Minimize Pre-release Work
23Tuesday, December 8, 2009
Negotiate During Release Execution
1 2 3 4Sprint
UserStory
UserStoryUserStory
UserStory User
Story
UserStory
UserStoryUser
StoryEPIC
Release
ScrumTeam 2
ScrumTeam 3
UserStoryUser
StoryEPIC
MinimalMarketableFeature
While the Release is running, MMF’s become WIP
Unfinished features are considered to be waste
You can still be Agile with content adjustments, but if the content doesn’t fit in the release, then do not allow it in.
Re-scope
Punt (hold to Beta)
Add more people
Minimize Pre-release Work
23Tuesday, December 8, 2009
Negotiate During Release Execution
1 2 3 4Sprint
UserStory
UserStoryUserStory
UserStory User
Story
UserStory
UserStoryUser
StoryEPIC
Release
ScrumTeam 2
ScrumTeam 3
UserStoryUser
StoryEPIC
MinimalMarketableFeature
While the Release is running, MMF’s become WIP
Unfinished features are considered to be waste
You can still be Agile with content adjustments, but if the content doesn’t fit in the release, then do not allow it in.
Re-scope
Punt (hold to Beta)
Add more people
Minimize Pre-release Work
23Tuesday, December 8, 2009
Backlog Health is Critical To Execution - Muda
Need a prioritized backlog of stories
Can not assume how to write good user stories
Each story should stand-alone (potentially shippable)
Difficult to move from non-functional to vertically sliced stories (I/O, options, role, Spike, Stub, etc.)
Ask what can you get done
Use “enabling specifications”
24Tuesday, December 8, 2009
What About Downstream Operations?
Desired Product
(Product + Capabilities)
Customer Commitment
ScrumTeam
PrioritizedBacklog of
User Stories
Iterative
PrioritizedMinimal
MarketableFeatures
Beta Trials
25Tuesday, December 8, 2009
What About Downstream Operations?
Desired Product
(Product + Capabilities)
Customer Commitment
ScrumTeam
PrioritizedBacklog of
User Stories
Iterative
PrioritizedMinimal
MarketableFeatures
Beta Trials
Will Value Stream Mappingand Kaizen Work?
25Tuesday, December 8, 2009
Key Takeaways
The Impossible is PossibleCreate an Innovation Centric Culture
Use a Lean Operational ModelValue is Created at the Customers Gemba
Customers Buy Features‘Agile Business Framework’ can leverage Scrum
26Tuesday, December 8, 2009
Key Takeaways
The Impossible is PossibleCreate an Innovation Centric Culture
Use a Lean Operational ModelValue is Created at the Customers Gemba
Customers Buy Features‘Agile Business Framework’ can leverage Scrum
And Remember...26Tuesday, December 8, 2009
Agility is not a function of speed
@achint_sandhu
27Tuesday, December 8, 2009
Agility is a function of preparedness for change
@achint_sandhu
28Tuesday, December 8, 2009
Creative Commons License
This work is licensed under the Creative Commons Attribution-Noncommercial-Share Alike 3.0 United States License. To view a copy of this license, visit
http://creativecommons.org/licenses/by-nc-sa/3.0/us/ or send a letter to Creative Commons, 171 Second Street,
Suite 300, San Francisco, California, 94105, USA.
29Tuesday, December 8, 2009
END
30Tuesday, December 8, 2009
END
Or Beginning?
30Tuesday, December 8, 2009