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Architecting and Confronting a New System to drive Business Agility @RallyON @RallySoftware Slides: bit.ly/engineerbizagility
http://xkcd.com/859/
The ability of the business to create, sense and respond to change
lies with engineers – you are the key
How many of you are Engineers = ?
What do you want to become = ?
CEO
Great Engineer
Chief Engineer
Technical Founder
I know what you are thinking!
Wow, that takes brilliant work
Can I drive innovation?
Maybe I should be on the management
track
?
Let’s Explore your job
What are we taught?
My Rock Geology Professor in 1985
Bernard Amadei
In a four year bachelors of science degree: Civil Engineer – 1200 to 2000 Eng Physics – 3000 to 5000
You learned the discipline!
And…
What we assume
h"p://arxiv.org/abs/cond-‐mat/0412004 h"p://www.flickr.com/photos/danielmorrison/428130095
Gaussian���distributions
What surprises us?
Low probability events have
higher impact
Plausible
An example
h"p://www.telegraph.co.uk/news/picturegalleries/howabou"hat/6988398/The-‐worlds-‐tallest-‐man-‐Sultan-‐Kosen-‐and-‐the-‐shortest-‐man-‐in-‐the-‐world-‐He-‐Pingping-‐meet.html
8’1’’ 2’5’’
3.3 x
h"p://www.flickr.com/photos/jurvetson/4368494308
Bill Gates
The Entire Room
650 x
What does this look like in the
Business?
Digital Disruptions
#RallyON14
… the Wall Street Journal noted that from 2007, when the iPhone was first introduced, to 2012, household spending in the U.S. on communications increased by 11 percent while spending on cars declined. So if you’re a carmaker and you’re comparing yourself to other carmakers, you’re missing this completely.
Competition on Any Front
Yes, this is about your company
Typical Business Approach
Assumes: Certainty is high Goal: Maximize individual efficiency
Annual Budgets Comprehensive Analysis Detailed Plans Waterfall Execution
Create a plan to predict the future
How many guesses?
First contact with users
Obscure the uncertainty with details of a false
precision
How do we make sense of this?
Uncertainty
Chaotic Simple Complicated Complex
Chaotic Simple Complicated Complex
Uncertainty
Engineering with Uncertainty
http://youtu.be/_vBYjx6ID4g
h"p://www.youtube.com/watch?v=HGiHU-‐agsGY
Natural/Social
Systems
Mechanical Systems
Uncertainty
Flikr by _DJ_
Neurons
Synapses
Transistors
Links
Flikr by Jurvtson
INSTEAD Assume: Uncertainty exists GOAL: Maximize value delivery
Sense and Respond to Change
Three Levels of Agility Connect your organization
Optimize for Business Value
Deliver Value Faster
Adaptive Steering
Disciplined Exploration
Empirical Learning
Agile
Execution
com
pany
ope
rati
ng sy
stem
Com
pany
: da
te:
Core
purp
ose
Your
cor
e pur
pose
is th
e rea
son
your
com
pany
exis
ts. It
shou
ld
capt
ure t
he m
otiv
atio
n be
hind
the w
ork
you
do. It
shou
ld in
spir
e yo
ur w
ork
whi
le b
eing
bey
ond
achi
evem
ent.
Does
this
purp
ose i
nspi
re yo
u? A
re yo
u pr
oud
to b
e par
t of t
his
purp
ose?
100
yea
rs fr
om n
ow, w
ill it
still
insp
ire?
doe
s thi
s pu
rpos
e hel
p you
imag
ine p
ossi
ble o
ppor
tuni
ties
out
side
of y
our
curr
ent s
itua
tion
? Doe
s thi
s pur
pose
hel
p you
und
erst
and
wha
t op
port
unit
ies y
ou w
on’t
purs
ue in
the f
utur
e? H
ow w
ill a
cyni
c re
spon
d to
this
purp
ose?
Core
valu
es
Your
cor
e val
ues a
re th
e ess
enti
al a
nd en
duri
ng sh
ared
bel
iefs
. The
se b
elie
fs a
re so
fund
amen
tal a
nd st
rong
ly h
eld
that
they
will
of
ten
go u
ncha
nged
for
man
y de
cade
s.
Wou
ld th
ese v
alue
s mak
e sen
se o
utsi
de yo
ur c
urre
nt c
onte
xt? W
ould
you
wan
t fut
ure g
ener
atio
ns to
live
by
thes
e cor
e val
ues?
W
ould
you
hono
r th
ese v
alue
s eve
n if
they
bec
ame a
com
peti
tive
dis
adva
ntag
e? W
ill yo
u hi
re a
nd fi
re b
ased
on
thes
e val
ues?
Wou
ld
you
quit
bef
ore c
ompr
omis
ing
any
of th
ese v
alue
s? If
you
crea
ted
a ne
w c
onte
xt, w
ould
it h
ave t
hese
valu
es?
guid
ing
prin
cipl
es
Guid
ing
prin
cipl
es es
tabl
ish
a co
mm
on a
ppro
ach
to d
ecis
ion
mak
ing
that
cre
ates
alig
ned
deci
sion
s. th
e pri
ncip
les s
houl
d gi
ve c
lear
, con
cise
, hig
h-le
vel g
uida
nce a
bout
wha
t to
do a
nd w
hat n
ot to
do.
Thin
k of
thes
e as l
ong
stan
ding
man
tras
that
will
gui
de th
e dec
isio
ns yo
u m
ake.
The p
rinc
iple
s sho
uld
be c
oher
ent w
ith
each
oth
er, t
he po
wer
is in
the w
hole
, not
the p
arts
.
Are t
hese
prin
cipl
es sp
ecifi
c en
ough
to g
uide
your
thin
king
and
gen
eral
enou
gh to
stan
d th
e tes
t of t
ime?
Do
thes
e pri
ncip
les h
elp y
ou tu
rn st
rate
gy in
to a
ctio
n? D
o th
ese p
rinc
iple
s pro
vide
dec
isio
n m
akin
g cl
arit
y in
depe
nden
t of t
he si
tuat
ion
surr
ound
ing
the d
ecis
ion?
Do
you
belie
ve in
the p
rinc
iple
s to
the p
oint
whe
re yo
u w
ill le
t the
m g
uide
you
in g
ood
tim
es a
nd in
bad
tim
es?
BHAG
A
“big
hai
ry A
udac
ious
goa
l” is
a h
uge a
nd d
aunt
ing
chal
leng
e ex
pres
sed
as a
cle
ar a
nd c
ompe
llin
g go
al.
Is th
e goa
l SM
ART (
spec
ific,
mea
sura
ble,
ach
ieva
ble,
rel
evan
t and
ti
me-
boun
d)? I
s the
goa
l eas
y to
und
erst
and
and
rem
embe
r? W
ill it
be
a st
retc
h to
ach
ieve
this
goa
l? D
oes t
he g
oal i
nspi
re yo
u an
d ot
hers
? will
ach
ievi
ng th
e goa
l req
uire
impr
ovem
ent a
nd g
row
th?
visi
on
A vi
sion
cle
arly
des
crib
es w
hat i
t will
be l
ike t
o ac
hiev
e you
r “b
ig h
airy
Aud
acio
us G
oal.”
Is th
e vis
ion
enga
ging
enou
gh to
cre
ate s
tron
g em
otio
ns fo
r th
ose i
nvol
ved?
Is th
e vis
ion
arti
cula
ted
in a
way
that
you
can
vivi
dly
pict
ure t
his G
oal?
Doe
s the
vis
ion
insp
ire y
ou b
y pa
inti
ng th
e ach
ieve
men
t of a
gra
nd a
dven
ture
?
Why: Our core beliefs Create coherent behaviors through shared beliefs
How: Our guiding principles Create coherent decisions through shared principles
What: Our aspirational Goal Create energy and alignment through a shared goal
I-2
Change comes from individual
advocates
Breakthrough comes from
transformation
Bottom Line Impact & Breakthrough
Who’s Job is it to change this?
Answer: THE Business folks!
Typical approach
https://www.flickr.com/photos/wonderlane/7923402476
Magic box of innovation
Answer: EVERYONES
PREPARE
PLAN
Uncertainty
EMERGE
ANALYZE
Uncertainty
EXPLORE
EXECUTE
Uncertainty
Balance Execution and Exploration
Product Backlog
Iteration 2 Weeks
Daily Meeting
Iteration Backlog
Product Increment S
crum
Disciplined Execution
Disciplined Exploration
http://rallydev.com/ELS
Add Disciplines of a Scientist
http://www.flickr.com/photos/memekiller/4564410767
Chaotic Simple Complicated Complex
Do Anything
Follow Recipe Analyze Guess &
Learn
Bureaucrat Engineer Firefighter Entrepreneur
Uncertainty
Chaotic Simple Complicated Complex
Do Anything
Follow Recipe Analyze Guess &
Learn
UncertaintiesCanvas Name: Date:
I-2
Level of UncertaintyLow High
Degree of
Impact
Low
High
Obvious Actions have a repeatable and predictable effect on the environment that everyone can understand.Chose the obvious action to achieve the desired
effect.
Complicated Actions have a repeatable effect on the environment. Because the relationships within the
environment are difficult to understand, typically only experts experienced in the domain can understand and predict the relationship between actions and their effect on the environment.
Consult multiple experts to understand the actions necessary to achieve the desired effect.
Complex Actions do not have a repeatable effect on the environment. Because there are many independent actors and interaction points, the environment will coevolve and defy prediction even by experts.
Run multiple, small experiments interacting directly with the environment to encourage the desired effect to emerge.
Adaptive Steering
Disciplined Exploration
Empirical Learning
Agile
Execution
com
pany
ope
rati
ng sy
stem
Com
pany
: da
te:
Core
purp
ose
Your
cor
e pur
pose
is th
e rea
son
your
com
pany
exis
ts. It
shou
ld
capt
ure t
he m
otiv
atio
n be
hind
the w
ork
you
do. It
shou
ld in
spir
e yo
ur w
ork
whi
le b
eing
bey
ond
achi
evem
ent.
Does
this
purp
ose i
nspi
re yo
u? A
re yo
u pr
oud
to b
e par
t of t
his
purp
ose?
100
yea
rs fr
om n
ow, w
ill it
still
insp
ire?
doe
s thi
s pu
rpos
e hel
p you
imag
ine p
ossi
ble o
ppor
tuni
ties
out
side
of y
our
curr
ent s
itua
tion
? Doe
s thi
s pur
pose
hel
p you
und
erst
and
wha
t op
port
unit
ies y
ou w
on’t
purs
ue in
the f
utur
e? H
ow w
ill a
cyni
c re
spon
d to
this
purp
ose?
Core
valu
es
Your
cor
e val
ues a
re th
e ess
enti
al a
nd en
duri
ng sh
ared
bel
iefs
. The
se b
elie
fs a
re so
fund
amen
tal a
nd st
rong
ly h
eld
that
they
will
of
ten
go u
ncha
nged
for
man
y de
cade
s.
Wou
ld th
ese v
alue
s mak
e sen
se o
utsi
de yo
ur c
urre
nt c
onte
xt? W
ould
you
wan
t fut
ure g
ener
atio
ns to
live
by
thes
e cor
e val
ues?
W
ould
you
hono
r th
ese v
alue
s eve
n if
they
bec
ame a
com
peti
tive
dis
adva
ntag
e? W
ill yo
u hi
re a
nd fi
re b
ased
on
thes
e val
ues?
Wou
ld
you
quit
bef
ore c
ompr
omis
ing
any
of th
ese v
alue
s? If
you
crea
ted
a ne
w c
onte
xt, w
ould
it h
ave t
hese
valu
es?
guid
ing
prin
cipl
es
Guid
ing
prin
cipl
es es
tabl
ish
a co
mm
on a
ppro
ach
to d
ecis
ion
mak
ing
that
cre
ates
alig
ned
deci
sion
s. th
e pri
ncip
les s
houl
d gi
ve c
lear
, con
cise
, hig
h-le
vel g
uida
nce a
bout
wha
t to
do a
nd w
hat n
ot to
do.
Thin
k of
thes
e as l
ong
stan
ding
man
tras
that
will
gui
de th
e dec
isio
ns yo
u m
ake.
The p
rinc
iple
s sho
uld
be c
oher
ent w
ith
each
oth
er, t
he po
wer
is in
the w
hole
, not
the p
arts
.
Are t
hese
prin
cipl
es sp
ecifi
c en
ough
to g
uide
your
thin
king
and
gen
eral
enou
gh to
stan
d th
e tes
t of t
ime?
Do
thes
e pri
ncip
les h
elp y
ou tu
rn st
rate
gy in
to a
ctio
n? D
o th
ese p
rinc
iple
s pro
vide
dec
isio
n m
akin
g cl
arit
y in
depe
nden
t of t
he si
tuat
ion
surr
ound
ing
the d
ecis
ion?
Do
you
belie
ve in
the p
rinc
iple
s to
the p
oint
whe
re yo
u w
ill le
t the
m g
uide
you
in g
ood
tim
es a
nd in
bad
tim
es?
BHAG
A
“big
hai
ry A
udac
ious
goa
l” is
a h
uge a
nd d
aunt
ing
chal
leng
e ex
pres
sed
as a
cle
ar a
nd c
ompe
llin
g go
al.
Is th
e goa
l SM
ART (
spec
ific,
mea
sura
ble,
ach
ieva
ble,
rel
evan
t and
ti
me-
boun
d)? I
s the
goa
l eas
y to
und
erst
and
and
rem
embe
r? W
ill it
be
a st
retc
h to
ach
ieve
this
goa
l? D
oes t
he g
oal i
nspi
re yo
u an
d ot
hers
? will
ach
ievi
ng th
e goa
l req
uire
impr
ovem
ent a
nd g
row
th?
visi
on
A vi
sion
cle
arly
des
crib
es w
hat i
t will
be l
ike t
o ac
hiev
e you
r “b
ig h
airy
Aud
acio
us G
oal.”
Is th
e vis
ion
enga
ging
enou
gh to
cre
ate s
tron
g em
otio
ns fo
r th
ose i
nvol
ved?
Is th
e vis
ion
arti
cula
ted
in a
way
that
you
can
vivi
dly
pict
ure t
his G
oal?
Doe
s the
vis
ion
insp
ire y
ou b
y pa
inti
ng th
e ach
ieve
men
t of a
gra
nd a
dven
ture
?
Why: Our core beliefs Create coherent behaviors through shared beliefs
How: Our guiding principles Create coherent decisions through shared principles
What: Our aspirational Goal Create energy and alignment through a shared goal
I-2
Turn Uncertainty
Into Knowledge
Business
Initiative
http://rallydev.com/FRAME
Frame
By gaining empathy and
safety
Do Engineers have Empathy?
https://vimeo.com/5485269
Some rights reserved by Marek Mahut
It is born into us! We just need to
reconnect with it
How many USERS have you ENGAGED with in the last year?
Interview people
Build empathy
Seek Insights
Frame the Problem
Frame the Experiment
Maximize Learning
Feasible De
sira
ble Viable
Will rapidly change markets
Locking in Learning and
Sharing
What we expect
will happen
Whatactually
happened
Learning
Whole System!
QUARTERLY These Activities to Create, Sense & Respond
Portfolio Steering
PSI Demo & Release Planning
Informs Forecasting and budgeting
Prioritization & value delivery
Feedback
Feedback Informs
Business Steering
Organizational Agility as important as Value Stream Agility
Business strategy (3–5 years)
Forecasting and budgeting (12–18 months)
Prioritization and value delivery IT/Engineering
(<3 months–9 months)
Long-range business commitments (1–3+ years)
Synchronize These Activities to Create, Sense & Respond
What is the new system?
Business Agility Practices: All are based on Lean Thinking
Customer Development Design Thinking
Scaled Agile Development Lean Product Development
Developer and Team Flow DevOps
Agile Portfolio and Steering Innovation Pipeline
Organization Guiding Principles for Sr. Managers, Executives and Boards
• Serve by leading and lead by serving
• Follow the work, not the worker • Respect people (customers,
employees, suppliers, and the community)
• Balance execution and exploration
Portfolio Guiding Principles for Departmental Leaders
• Plan first level of execution roughly right over precisely wrong
• Fund capacity and adjust scope over project funding
• Fund at the team level over FTEs • Optimize value delivery over
resource utilization
Execution Guiding Principles for Teams • Self organize around the work • Inspect and adapt continuously • Collaborate and commit through
trust and transparency • Work on the few things that matter
most
- 112 -
Transform Your Work System • Ideal (future state) • Failure (Not Learning) • Efficiency (Flow) • Leadership (Servant)
• Smooth Fast flow • Work Visualization
• Lean and agile • Collaborative to leverage wisdom
Guiding Ideas
Organizational & Technical
Infrastructure
Tools, Techniques & Methods
Execution and Exploration
Market Experiments
Experiments Too
*Experiments (business spike) can validate backlog, just like a
technical spike
The ability of the business to create, sense and respond to change
lies with engineers – you are the key
From “T”
To “E”
EmpathizeExploreExecute
Frame & Empathize
Build & Ship
Test & Measure
Learn & Share
How effective can you become at this WHOLE cycle?
1. Become a Disciplined Explorer 2. Take Time to Empathize 3. Share your Learning up and out 4. Think Globally, Act Locally
Make your Vector Math of your BUSINESS work
*Christopher Avery’s –Responsibility Framework
TAKE Responsibility*
Intention
Awareness Confront
Global/Citizen Engineer
Rally’s Social MISSION Create and
Mobilize Citizen
Engineers
• Technically • Environmentally • Socially
Responsible Engineering
Feasible De
sira
ble Viable
Will rapidly change the world
Copyright 2011- FakeGrimlock http://www.youtube.com/watch?v=z1x3BZjU5Pw
Dent the World!
Dave Douglas
David Snowden
Kembel Brothers
Dean Leffingwell
Bernard Amadei
Don Reinertsen
Steve Blank
Eric Ries
Shoulders of whom I am standing on
Thank you @RallyOn #rallyforimpact
Slides: bit.ly/engineerbizagility
)
