Scaling & Agile Principles

Stop scaling… Start growing
an agile organization
agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016.
Andrea Tomasini
Agile Coach & Trainer
andrea.tomasini@agile42.com
@tumma72
@agile42/coaches
What to scale?
Delivery Organizational
Teams and
Model? Structure?
Processes?
Why to scale?
We need to scale
agile because our
projects are very
large
So why don’t you

make your projects
smaller?
Corporate
Individual
Hierarchy
agile42 | the agile coaching company

Compliance
www.agile42.com | All rights reserved. Copyright © 2007 - 2015.
Agile Pilot Success!
Teams demonstrated
that Agile can deliver
value faster, with
higher quality, and is
motivating…
Organizations are
pressed into Agile, and
react using a traditional
approach...
The heart of an agile
organization…
& Autonomy
Self-Organization
Client &
Value focus
Iterative &
Improvement
Continuous
Incremental
change to
reduce the
risk
“One size fits all?”… Not in practice… but in Principles!
New Grown
Corporation
Organization  Organization (from 500 to many thousands people)
(up to 60 people) (from 60 to 500 people)
Basic principles and recurring
patterns for growing agile…
1 Principle: focus on small
st
incremental changes
Whenever changing from one way of working to another, we
will go through a hybrid situation where the coexistence of
two different ways generates attrition, duplications and other
forms of waste. The awareness of this fact should push us
in delivering changes fast and in small increments…
The traditional approach to change management…
Design
Documentation
Rollout
Fix Issues
> 3-4 months… t
…focused on standardization, before stabilization…

The agile approach to change management…
Design Coach Design Coach
Rollout Rollout
Doc Doc
Rollout Rollout
Doc Doc
Rollout
Doc
≤ 12 weeks t
…focused on stabilization with emergent standardization…

Agile Strategy Map™
Necessary Condition (NC):

what is needed in order to fulfill
the Success Factor
NC
PSF
Define the Goal we Goal
want to achieve
Possible Success Factor (PSF)
represents a hypothesis about a
key factor that would enable us
to achieve the Goal
Strategy Map from
March 2014
• The Goal for 2015

has been
established
• The Transition
Team identified at
least 7 PSFs that
would provide a
powerful leverage
to achieve the
final Goal
Strategy Map
June 2014
• Break out
groups worked
on detailing the
various PSFs
into actionable
experiments to
validate the
hypothesis for
organizational
improvement
2 Principle: focus on value
nd
and organize accordingly

Focusing on value means to make sure that there are as
few obstacles as possible in the direction of the value
streams…
The matrix organization…
Push in the lines
Value
Sub System 1
Sub System 2
Sub System 3
Project 1
Infrastructure
Operations
Project 2
PMO
Project 3
Client
Handovers and coordination
… optimized for utilization, not value delivery…

The agile organization…
Pull on the streams
Value
Sub System 1
Sub System 2
Sub System 3
Stream 1
Infrastructure
Operations
Stream 2
Stream 3
Client
… optimized for value delivery and time to market

Opportunity Canvases to create context and focus on Customer Value…
Opportunity Name (title) Opportunity Owner (name)
1. Opportunity 2. Customer Segments 4. Benefits 5. Business Readiness 6. Measuring Success

What is the problem to be solved? What type of customers & users will What are the benefits for the What steps are required from the What metrics will be best measure the
benefit from this solution? customers? business side to be able to use this success of the feature?
capability?
3. Possible Solution
How is the customer solving the What are the key points of a possible
problem right now? solution to the presented problem?
8. Costs Structure 7. Cost of Delay 9. Value to Customer and Business

How does the cost structure look like for such a feature? One time, ongoing Which profile better represent the cost What are the expected incremental revenue for selling this feature, and what are
costs, contractors expenses, development costs? of delay (CoD)? the strategic and tactical benefit? What are the intangible values (usability,
performance, customer knowledge obtained...)
Lean Portfolio Canvas™ have been created by agile42 and are licensed using Creative Common 3.0 with attribution (BY), non commercial usage (NC) and
share alike (SA) options. You can reuse and modify the template, but you will always have to leave the logo on it.
Unified Portfolio and Program System
to increase transparency, to visualize
Customer Value and dependencies
agile42 | We
the agile
advise,
coaching
train and
company
coach companies building software www.agile42.com | All rights reserved. Copyright © 2007 - 2015.
3 Principle: decentralize
rd
control whenever possible

Decentralization of control and decision making, reduces
the feedback loops, and enables faster reaction times. It
requires defining containers for empowerment, to allow for
autonomous decision making.
The hierarchical organization… Centralized Control,
ends up overloaded,
introducing delays
ts Control !
Information & power
es
qu
Authorization
Re
Worker 1 Worker 2
Sub 1 Sub 2 Sub 3
the design is based on mistrust…

The agile organization… Decentralized
Control reduces
overhead, and
encourage
Information & power
Container for empowerment collaboration
Worker 1 Worker 2 Worker 3
Collaboration
the design is based on trust…

• Clear Policies
describing the
range of autonomy
the teams have
• Both on the “budget”

level, as well as on the
expected delivery and
preparation levels
• This level of
transparency allows to
build trust between
Portfolio Management
and self-organizing
teams
• Every team has two “avatars” to
volunteer on upcoming
Opportunities
• The Opportunity Owner will get in
touch with the team to get their
input and enrich the backlog
th
4 Principle: avoid
synchronization of flows unless
necessary
De-synchronization is unintuitive, but allows for parallel
distributed work, without having to carry the excessive
burden of coordination and handovers…
The plan driven organization… Synchronization of all Projects
for a release, decreases
efficiency and increases
coordination costs
Pm 3 Project 3
Pm 1 Project 1
Pm 2 Project 2
t
Release
…fixed scope and fixed date…

The agile organization… De-synchronization of
development teams to
reduce cost of release
Team 1 Feature A Feature D

Team 2 Feature E
Team 3
Feature B
Team 4 Feature C
t
Release Release Release Release Release
…variable scope and variable date…

Automated testing
in short cycles
Delivered
serviceable Product
in just 2 months
Release incrementally,
with higher quality
Continuos Integration & Delivery…
Switch from big product

releases to incremental
change, every feature is
released on all platforms
“Focusing on one Feature at a

time allowed for faster
feedback also involving
stakeholders was easier…
deliver fast to learn fast”
5 thPrinciple: make your
culture explicit
Organizational culture exists, whether we acknowledge it or
not, and making explicit allows for better alignment and
context creation
“This is how we do things around here…”
Culture is the set of

behaviors that have been
established and accepted
within an organization
Organization Cultural Profile (CVF)
Flexibility & Discretion
60 Most of the organizations today
have a strong Hierarchy oriented
cy
60
50
ra
Cl
profile
oc
an
Agile Values &

50
-h
40
Ad
External focus & Differentiation

40
Internal focus & Integration
30
Principles 20
30 They struggle to introduce a
10
20 more agile and lean approach to
10
work, because the hierarchical
culture is not supportive of agile
10
values and principles
10
20
20
30
30
40
y
ch
40
ar
50
M
er
ar
Hi
ke
50
60
t
60 Stability & Control

Organization Cultural Profile (CVF)
Flexibility & Discretion
60 Most of the organization today
have a strong Hierarchy oriented
cy
60
50
ra
Cl
profile
oc
an
50
-h
40
Ad
External focus & Differentiation

40
Internal focus & Integration
30
20
30 They struggle to introduce a
10
20 more agile and lean approach to
10
work, because the hierarchical
culture is not supportive of agile
10
values and principles
10
20
20
To create the right context to

30
30
40
move toward a more agile and
y
ch
40
lean culture, we need to
ar
50
M
er
ar
transition toward Clan or Ad-

Hi
ke
50
60
t
60 Stability & Control Hocracy

“If you can
make culture
explicit, you can
agree where you
stand, and where
you want to
go…”
There are two ways of encouraging behaviours within an organization:

1. Story telling and role-modeling (e.g: empathy and tradition, walk
the talk)
2. Ritualization (e.g: Scrum events, Ritual Dissent, Open Space)
Overall lessons learned
Changes in behaviour happened thanks to focus on
principles and values, the resulting emergent systems
showed recurring and reusable patterns that may
reproduce similar behaviours…
Most significant Changes
after 7 years through transition
Commitment
– We have moved from the question “are you committed?” to “how can we
deliver?”
Distribution instead of hierarchy

– Planning/forecasting is distributed: many people do this from different
angles (Strategy, Product Roadmap, Product Release, Feature, Sprint)
– Each party trusts the other that they do their part of the whole.
– Continuous flow of planning, follow-up and adaptation
Collaboration instead of co-existence

– No “contracts” between parts of Ericsson
– Collaboration with a lot of interaction to drive alignment and by this enable
autonomy.
EDD Hendrik Esser | Commercial in confidence | © Ericsson AB 2015 | 2015-02-11 | Page 2
Fast Lane PLC319F
Lean transformation in practice
Learnings
•  Direct communication is the enabler
for doing the necessary things at the
right time
•  Timeboxed development is
mandatory to establish learning
methods
•  Ranked backlog / visualization
creates unknown transparency on
where we stand - over 7 teams, with
more than 40 people
•  Giving responsibility into the teams
leads to outstanding engagement
and results
•  Thinking in customer value within
each iteration gives us control on the
functionality of our deliverables
Page 14 MC Conference | May 2014 Gunther Birk / I DT MC R&D 11 Restricted © Siemens AG 2014. All rights reserved
Fast Lane PLC319F
Adopting lean thinking to hardware development
The Question Parallel Sourcing Parallel Qualification

How can we be sure, - Serial material - Typetest
that our redesign will - Testing Equipment -  Loadtest
be o.k.?! - Rapid Prototypes •  Speed-up by
40%
•  Enhanced
Quality
•  Enhanced
Design for
Risk Exclusion Production
-  Execute Complete DVT
-  Evaluate Production process
-  Build up production samples
Blog: LEAN@MC - english Blog
Page 12 MC Conference | May 2014 Gunther Birk / I DT MC R&D 11 Restricted © Siemens AG 2014. All rights reserved
Enterprise Transition Framework (ETF)
t n
St
me
rat
ss
eg
se
y
As
Pilot Projects
u t
llo
Ro
so what?
1. There is no blueprint for an
Agile Organization, as from
the moment you’ll try to
define one, it won’t be Agile
anymore!
agile42 | We
the agile
advise,
coaching
train and
company
2. Scaling the delivery model
won’t make your organization
agile, you need to change the
culture too!
agile42 | We
the agile
advise,
coaching
train and
company
3. Becoming an Agile
organization should never be
your goal, it is a means at
best!
agile42 | We
the agile
advise,
coaching
train and
company
4. Becoming an agile
organization is a team sport,
and still everyone needs to
start the change from within!
agile42 | We
the agile
advise,
coaching
train and
company
5. Experience shows that
there are recurring patterns
emerging by embracing
specific principles… so use
them! At y o ur o
risk! w n
;-)
agile42 | We
the agile
advise,
coaching
train and
company
a n k
T h
o u !
Y
More food for thought...
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Copyrights notice
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Common License 4.0 (by-nc-sa).
The brands and logos of agile42, Enterprise Transition Framework ETF (http://agile42.com/etf/), Team Coaching
Framework TCF (http://tcf.agile42.com/) and Agile Strategy Map (http://www.agile42.com/en/agile-transition/agile-
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Scaling &amp; Agile Principles

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Stop scaling… Start growing

So why don’t you

agile42 | the agile coaching company

> 3-4 months… t

…focused on standardization, before stabilization…

Design Coach Design Coach

…focused on stabilization with emergent standardization…

Necessary Condition (NC):

• The Goal for 2015

and organize accordingly

Push in the lines

Handovers and coordination

… optimized for utilization, not value delivery…

Pull on the streams

… optimized for value delivery and time to market

Opportunity Name (title) Opportunity Owner (name)

1. Opportunity 2. Customer Segments 4. Beneﬁts 5. Business Readiness 6. Measuring Success

8. Costs Structure 7. Cost of Delay 9. Value to Customer and Business

control whenever possible

Sub 1 Sub 2 Sub 3

the design is based on mistrust…

Container for empowerment collaboration

Worker 1 Worker 2 Worker 3

the design is based on trust…

• Both on the “budget”

…fixed scope and fixed date…

Team 1 Feature A Feature D

…variable scope and variable date…

Switch from big product

“Focusing on one Feature at a

Culture is the set of

Agile Values &

External focus & Differentiation

60 Stability & Control

External focus & Differentiation

To create the right context to

transition toward Clan or Ad-

60 Stability & Control Hocracy

There are two ways of encouraging behaviours within an organization:

Distribution instead of hierarchy

Collaboration instead of co-existence

EDD Hendrik Esser | Commercial in confidence | © Ericsson AB 2015 | 2015-02-11 | Page 2

The Question Parallel Sourcing Parallel Qualification

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