Scrum at Scale · Work in process draft for internal discussion only The Case for a Modular Approach to Scaling 1. Need more general language to talk about Scrum at Scale •The world

Scrum Gathering – Phoenix

Scrum at Scale:Free Yourself from the Myth of One-Size-Fits-All Scaling

May 5, 2015

1Work in process draft for internal discussion only

Brief Introduction

Alexander Brown – Partner, Recon Strategy, LLCAlex leads a wide range of projects in Healthcare strategy, and also brings expertise in consumer behavior, product and service innovation.

Before Recon, Alex was the Chief Operating Officer for Scrum Inc. where he worked with Scrum creator Jeff Sutherland. As a Certified Scrum Trainer, Alex developed Scrum Inc’s Leadership, Product Owner, and Scaling curricula and helped dozens of companies successfully implement Scrum across different industries and product/services. As the company’s Chief Product Owner, he implemented a quantitative backlog prioritization approach that tripled company profits in 18 months.

Prior to joining Scrum Inc. Alex was a Principal at The Boston Consulting Group, where he led more than twenty projects to improve competitive positioning and transform fortune 100 companies to leaner and more agile operations. His project experience includes cases in healthcare, retail/consumer, IT manufacturing, finance, and government. Alex earned a B.S. and Masters in Engineering from Cornell University, and an MBA from the Wharton School of the University of Pennsylvania

More at www.reconstrategy.com

[email protected]


Focus for Today

Three Dimensions of Growing your Scrum

Scale = number of coordinating teams;

Complexity of projects

Distribution = number of different coordinated geographic locations

Saturation = Degree Agile principles have pervaded organization Breaking down traditional “silos”

Distribution

Saturation

Scale

Improvements along any dimension will grow your Scrum


As an agile practitioner, I need to

know The Case for Modularity to decide how to scale


The Case for a Modular Approach to Scaling

1. Need more general language to talk about Scrum at Scale

• The world is diverse and Scrum is used in different contexts

• Proscriptive methods work in some contexts, but not all

2. At its roots, Scrum is an Object Oriented Framework

• Each role, artifact & ceremony defined by objectives, participants, inputs and outputs

• Core Scrum allows for many different ways to achieve objectives within given input/output constraints

3. Modularity allows organizations to establish and improve Agile practices incrementally by focusing on one independent module at a time

4. Ultimately, supports “pattern library” of successful approaches that can be used in different contexts

1

2

3

4


Context is Very Important, But Too Often Neglected in Discussions of Scaling Approach!

How important is speed of delivery?

How important is innovation?

How important is team empowerment?

What is the driving timeframe for becoming agile?

How severe are the repercussions of a product defect?

Where are teams located?

How complex and/or tightly integrated is the product?

Not Important Very Important



All Co-located Highly distributed

Simple/ Loosely-coupled Complex/Integrated

Long-Term Aspiration Immediate Threat

Minor Severe

1


We Will Use 3 Very Different Example Companies to Illustrate the Benefits of Modular Scaling

Large Defense Contractor

• Top-down agile transformation motivated by perceived external market pressure

• Company vision to halve the cost of projects

Mid-size Software Company

• Opportunistic agile implementation triggered by acquisition of a small Scrum company

• Market leader Looking to stay ahead of competition

Growing “Agile Native” Company

• Disruptive technology innovator with successful product looking to scale to keep up with demand

• Leadership are steeped in agile principles

A B C

Name Classified Autodesk Spotify

Key Context:• Complex, integrated multi-

year hardware/software projects

• Each project has onecustomer

• Reliability a key priority• Must deliver to detailed

contract requirements

Key Context:• Redeploying a legacy software

product to cloud-based SaaSmodel

• Goal to increase pace of innovation

• Historically, releases a disruption for customers

Key Context:• Web/app-based product• Product and company set up

modularly • Allows teams to work

independently with minimal coordination

• Teams co-located

1


Strategic Objectives Key to Determining Context

“Convergent” Product Design

Pro

cess A

dap

tability

Pro

cess

Pre

dic

tab

ility

EP

“Emergent” Product Design

CP

EA

CA

Adapted from Michael Cottmeyer

1


The Scrum Framework is modular!

Scrum

5 Ceremonies

3 Roles3 Social Objects

Product IncrementScrum BoardPoints & VelocityBurndown Chart

Done! Kaizen

PO

SM

ProductOwner

ScrumMaster

TeamTT

T

ProductBacklog

SprintBacklog

Ready!Sprint Planning Sprint Review Sprint RetrospectiveDaily Scrum

MakeWork

Visible

Source: Scrum Inc. www.scruminc.com

2


Modularity Supports Different Implementation Paths

SpotifyName Classified

Start Current

3

Autodesk


A3 process useful for framing pattern selection

Source: A3 Thinking – Durward Sobek

Countermeasures (Experiments)• Proposed countermeasure(s) to address each

candidate root cause. [This should be a series of quick experiments to validate causal model analysis.]

• Identify where in the cause/effect model changes are possible and likely to significantly improve the overall situation.

• Predict results for each countermeasure. Do

Background• Why is this important? • Why should the reader care about this situation

and be motivated to participate in improving?

P

Current Condition• How do things work today? • What is the problem? • Baseline Metrics?

L

Goal / Target Condition• What outcomes are expected for what reasons? • What changes in metrics can be plausibly

expected?

A

Root Cause Analysis• What is the root cause(s) of the problem? • Use a simple problem analysis tool (e.g., 5

why’s, fishbone diagram, cause/effect network) to show cause-and-effect relationships.

N

Owner:Mentor:Date:

Title: Concise, self-explanatory

Confirmation (Results)• Are we achieving the module goals and

satisfying all required inputs and outputs?• Has the experiment improved our ability to

deliver value?

Follow-Up (Actions)• What is the next iteration on this module?• Which other module is next most important to

improve?

Check

Act

4


Next Steps: Capturing and Documenting Current Patterns

What defines a good pattern?

• A memorable name

• Which module does it support?

• Context on where it is used Company/industry Market situation/agile goals Level of agile experience

• “Enabling specification” that describes the pattern in sufficient detail for another team to implement

• Discussion of pros and cons with experience

Submit a pattern to: [email protected]

Example Pattern: Backlog Prioritization

Context:• Small and rapidly-growing services firm running all activity

using Scrum• Premium on product quality, with high value for speed of

innovation also

Enabling Specification:• All activity tiered into “keeping lights on,” “value generating”

and “new product” activity• NPV/point (ROI) estimated for all “new product” epics in

backlog – estimates updated quarterly• Enterprise backlog prioritized primarily by ROI, w/some

consideration for team “fun”• POs pull individual epics into team backlog

Pros & Cons:+ Focus on ROI increased profitability 3x in 18mo.+ Numerical approach removes most politics- Requires more prep for quarterly meetings- Financial concepts confuse some team members

4


As a class, we need an Overview of the

Scrum at Scale Framework to have a

shared vocabulary for our discussions


Modular Framework for Scaling Scrum

Product Ownership Cycle

Scrum MasterCycle

Backlog Prioritization

Backlog Decomposition

& Refinement

Release Planning

Team-Level Process

Release Management

Product & Release Feedback

Metrics & Transparency

Continuous Improvement & Impediment Removal

Cross-Team Coordination

Strategic Vision

Organization Level

Enterprise

Business Unit

Team


Scrum at Scale Modules are Defined by their Goals, Inputs and Outputs

Goals to be achievedRequired

InputsOutputs to other

modules

Goals Define what the module is intended to accomplish

InputsDescribe the information or resources needed from other modules to accomplish those goals

OutputsOutline what information or product this module generates that are needed by other modules

ANY specific practice that meets the module’s required Goals, Inputs and Outputs will work with all of the other Scrum at Scale modules…This is

“Contract-First Design.”


1. Team Level Process

Module Goals: • Maximize the flow of completed and quality tested work • Try to increase velocity a little each sprint• Operate in a way that is sustainable and enriching for the team in the long run

Ordered Product Backlog of

features to work on

Increment of completed and tested product at the end of each sprint

Input

Output

1. Team-Level Scrum Process

Identified impediments that the

team needs help removing

Velocity data to forecast delivery and support

continuous improvement

Process Coordination with related Scrum

teams

Feedback on product

increment

Other team metrics data to support

transparency

Additional context clarifying organizational

vision and goals

15


The Team-Level Scrum Process

Sprint

Release Backlog(points)

400

Refinement

Source: Scrum Inc. www.scruminc.com


As a Class, we need to

Prioritize the Class Module Backlog So we

can decide which modules to dig into further


Prioritize Your ModulesWhich One(s) Need to Be Addressed First

Time-box: two five-minute sprints

• Determine which modules you would like to focus your attention on first

• Remember to consider…

1. Your answers to the key context questions

3. What you indicated as your Key Scaling Challenges

2. Where you placed your organization on the strategic quadrant


Module Assessment Summary

Current Module Strength

Stra

tegi

c Im

po

rtan

ce

LowHigh

High

Low

Backlog Prioritization

Backlog Decomposition & Refinement

Release Planning

Team-Level Process

Release Management

Product & Release Feedback

Metrics & Transparency

Strategic Vision

Cross-Team Coordination

Continuous Improvement & Impediment removal


As a great PO, I need to create and maintain

a clear and compelling Strategic Vision so

that my teams are working toward the same goal


2. Strategic Vision

Module Goals:• Clearly align the entire organization along a shared path forward• Compellingly articulate why the organization exists• Describe what organization will and won’t do to leverage key assets in support of mission• Update and fine-tune vision continuously based on feedback to outmaneuver competition

Clear goals and principles for ordering the backlog and

managing tradeoffs

Input

Output

Hypotheses on market needs and growth

engine to be tested

Consumer, market and competitive

positioning insight

Feedback on released product

Other team metrics to support

transparency

Additional context clarifying organizational

culture, vision, goals and norms

Feedback on release progress

2. Strategic Vision


Alternate Approaches to Satisfy the“Strategic Vision” Module

ContractMgmt. Team

• Corporate vision still set and established in traditional model

• Vision includes goals to halve project delivery cost thru agile

• Corporate vision translated to project-level vision and goals through customer discussion & contract negotiation

PO Team

• Corporate leadership articulates enterprise-level vision and goals and updates to reflect market

• Chief PO for each product maps these goals to given product and maintains working vision that incorporates regular feedback and team discussion

Empowered POs

• Strong culture of team empowerment & collective ownership

• Leadership articulates corporate “objectives & key results” quarterly

• “Tribes” of component teams work together facilitated by POs to interpret that vision at the component level

A B C

Pro: Does not yet require large organization or customers to change what they are used to doing; meets core productivity goals

Con: Still very traditional “waterfall” process that limits ability to innovate faster using customer feedback

Pro: Provides a highly centralized vision, while also responding to change and leveraging product/team-level input

Con: Still quite hierarchical and enterprise-level vision, in particular, not updated as frequently

Pro: Lightweight approach; leadership focused on big picture only, and teams develop ownership of vision

Con: Stronger potential for conflicting views on how to achieve objectives; Risk of sub-optimizing vision at component level


What is Strategic Vision?

What is our ultimate goal(s)?

How can we measure progress towards them?

What do we believe the market wants or needs?

How can we test these beliefs?

What are our strengths and weaknesses relative to other competitors?

How can we test these beliefs?

What does this imply about what we should or should not do?

Goals

Markets

CompetitivePosition

GuidingPrinciples

How does product or organizational agility help to improve outcomes?


Strategy is consistent set of conscious choicesCan be represented by the “Strategy Cascade”

What is our

competitive

advantage?

What management systems do we need?

What is our winning aspiration?

What capabilities must we have?

Where will

we focus?

If source of competitive advantage includes getting new products/services to market faster (Adaptive Strategy) or being more responsive to changing customer demands (Signal advantage)…

…Then organizational agility becomes a required capability to achieve and sustain that advantage…

…And Scrum is a lightweight org system designed to systemically deliver organizational agility

Adapted from “Playing to Win” framework by Alan Lafley and Roger L. Martin


Agility breaks the forced tradeoff between approaches to sustainable advantage

• Strive for deep understanding of customers’ needs

• Offer products that customers can’t do without

• Make it very hard for customers to leave

High unit cost Lower volume

Protect unique assets

LOW COST DIFFERENTIATIONSustainable

Competitive

Advantage• Seek systemic understanding of cost drivers

• Relentlessly drive costs down

• Sacrifice non-conforming customers

• Offer standard product or service

High volume Low configurability

Drive scale

ADAPTIVE

• Systematically minimize the cost to make changes

• Use short, focused delivery cycles to test market hypotheses

• Eliminate waste (cost reduction) to also drive speed to market

Low cost, High configurability, Learn faster than competition


“Remembering the Future”The Power of Scenario-Based Strategy

“Plans are worthless, but planning is everything.”

A strong product vision can firmly link corporate strategy to execution on the ground

1What would you like to accomplish given the current state of the world? • i.e. What is the plan?

What unknowns or factors beyond your control could disrupt the plan?• Which 2-3 have the most impact?

2

How could we adapt the plan to address the most important future states?

3

How can we systematically build & test our hypotheses about the unknowns?

4

As we proceed with work, which future state of the world is emerging?

5


Product Vision as a Cereal Box

Key sales proposition on front

• Name

• Key selling points

Details on back

• Feature list (i.e. product attributes)

• Version changes

• Operational requirements

Adapted from materials by Jeff Sutherland


Example: Creating a Vision Statement

FOR <target customers>

WHO <statement of need>

THE <product name> IS A <product category>

THAT <key benefit, compelling reason to buy and use>

UNLIKE <competition/alternative>

OUR PRODUCT <differentiating statement>

A successful vision statement is compelling enough to be broadly shared, yet concise and easily remembered


The Meta Scrum:Used to Align Organizational Vision and Priorities

L

Leadership

SH

Stakeholders

PO

Product Owners

AlignedProduct Backlog

L

SHPO

Team 1

Team 2

Team 3

Sprint/Time


L

PO

Team 1

Team 2

Team 3


L

PO

Team 1

Team 2

Team 3

• A gathering of key Stakeholders, Leadership, and Product Owners

• Run by Chief Product Owner

• The forum for stakeholders to express preferences (they should not lobby teams directly or try to alter product vision between Meta Scrums)

• Can be held at regular intervals or on an ad-hoc basis

• Allows teams to progress efficiently down a single work path

SHSH

SHSHSH

SHSHSH

Documents

Scrum at Scale · Work in process draft for internal discussion only The Case for a Modular Approach to Scaling 1. Need more general language to talk about Scrum at Scale •The world