Agile Business Framework for large-scale product development- Scrumgathering Orlando '10

An Agile Business FrameworkFor Customer Driven Development

Paul Relf(Twitter: @Paul_Relf)

AND

Catherine Louis (Twitter: @catherinelouis)

Scrum Gathering Orlando 2010Friday, July 9, 2010

Agile (Innovation) Manifesto

We are uncovering better ways of developingsoftware by doing it and helping others do it.Through this work we have come to value:

Individuals and interactions over process and toolsWorking software over comprehensive documentation

Customer collaboration over contract negotiationResponding to change over following a plan

Innovation over status quo

Friday, July 9, 2010

Huge Scrum works when

You create an Innovation Centric Cultureat all levels of the organization!

You use a Lean Operational Modelfrom idea through delivery!


Innovation is a New Way of Doing SomethingIncremental Or Radical

Waterfall Development Limits Innovation By Removing the Freedom to Dream


Freedom to dream = Applied Innovation

The Impossible can always be broken down into Possibilities - Anonymous

x: dreamery: coder

z: applied innovation

x yz


Oh, the Possibilities?

How do we enable these possibilities?

With an ‘Innovation Centric Culture’

and a ‘Lean Operational Model’


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)

Opportunity for professional development: journeymen, craftsman, master craftsman, leadership


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


Hiranabe http://tweetphoto.com/5793753

Kaizen Gets You Started And Keeps You Going!


http://tweetphoto.com/5793753

http://tweetphoto.com/5793753

Driving Business Agility and Velocity

Lets Explore the ‘Lean Operational Model’...

Lean Operational Model

Inno

vatio

n C

entr

ic C

ultu

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Maturity


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


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!”


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 - Mura

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


What Cost $100,000 Per Second?

Why Would You Need Releases Then?


Why Would You Need Releases Then?


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)


Other Challenges With Customer Driven DevelopmentI 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

How have you solved similar issues?Friday, July 9, 2010

What Most of Us Know...Lean techniques mapped into software development opened up a whole new paradigm

Agile, Scrum, Kanban, XP, tools, ...


Beyond Scrum, How Do You Complete The Picture?

Thoughts? Ideas?


The ‘Lean Operational Model’

Desired Product

(Product + Capabilities)

Customer Commitment

PrioritizedMinimal

MarketableFeatures

Iterative

ScrumTeam

PrioritizedBacklog of

User Stories

Beta Trials


UserStorUserStorUserStor

MinimalMarketableFeature

UserStorUserStor


UserStor



MinimalMarketableFeature UserStor

UserStor




1 2 3 4 5 6 7

Sprint

8 9 10

UserStorUserStor


UserStor


UserStorUserStor


UserStor


UserStor


Release 1(Every 2 months)

Pareto Analysis keeps you focused on the right things (top 20%). Do at all levels staring at Portfolio level

Look for anchor content (always changing) to become the candidate for the release

Release plans should be negotiated

Prioritize on BV, risk of not doing, & opportunity

Release Planning / Prioritization for Huge Scrum


Attributing Business ValueDuring Planning...

Agree on how to do it. There is no One or Right Way

For Huge Scrum use Pareto Rule at each level (portfolio, project, release, feature, and story)

Easier to‘Estimate’ monetary value of minimal marketable features versus user stories.

Relative Business Value is about doing the most important thing first - Don’t worry about being precise or concrete

Look for innovation in your backlog.


Backlog Health is Critical To Execution

Huge Scrum yields a prioritized backlog of MMFs and stories

Can not assume how to write good user stories

Each story should stand-alone (potentially shippable)

Ask what can you get done

Use “enabling specifications”

Difficult to move from non-functional to vertically sliced stories (I/O, options, role, Spike, Stub, etc.


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...Friday, July 9, 2010

Agility is not a function of speed

@achint_sandhu


Agility is a function of preparedness for change

@achint_sandhu


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