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An Agile Business Framework For Customer Driven Development Paul Relf (Twitter: @Paul_Relf) AND Catherine Louis (Twitter: @catherinelouis) 1 Tuesday, December 8, 2009

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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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Page 1: Agile Business Talk

An Agile Business FrameworkFor Customer Driven Development

Paul Relf(Twitter: @Paul_Relf)

AND

Catherine Louis (Twitter: @catherinelouis)

1Tuesday, December 8, 2009

Page 2: Agile Business Talk

AcknowledgementsFor Tonights Presentation (Dec 8, 2009)

http://finance.groups.yahoo.com/group/AgileBusiness/

2Tuesday, December 8, 2009

Page 3: Agile Business Talk

Innovation is a New Way of Doing SomethingIncremental Or Radical

Waterfall Development Limits Innovation By Removing the Freedom to Dream

3Tuesday, December 8, 2009

Page 4: Agile Business Talk

Oh, the Possibilities...What if?

x: dreamery: coder

z: applied innovation

x yz

4Tuesday, December 8, 2009

Page 5: Agile Business Talk

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

Page 6: Agile Business Talk

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

Page 7: Agile Business Talk

Oh, the Possibilities?

How do we enable these possibilities?

5Tuesday, December 8, 2009

Page 8: Agile Business Talk

Oh, the Possibilities?

How do we enable these possibilities?

With an ‘Innovation Centric Culture’

and a ‘Lean Operational Model’

5Tuesday, December 8, 2009

Page 9: Agile Business Talk

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

Page 10: Agile Business Talk

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

Page 11: Agile Business Talk

Hiranabe http://tweetphoto.com/5793753

Kaizen Gets You Started And Keeps You Going!

8Tuesday, December 8, 2009

Page 12: Agile Business Talk

Driving Business Agility and Velocity

Lean Operational Model

Inno

vatio

n C

entr

ic C

ultu

re

Maturity

9Tuesday, December 8, 2009

Page 13: Agile Business Talk

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

Page 14: Agile Business Talk

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

Page 15: Agile Business Talk

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

Page 16: Agile Business Talk

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

Page 17: Agile Business Talk

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

Page 18: Agile Business Talk

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

Page 19: Agile Business Talk

Why Would You Need Releases Then?

14Tuesday, December 8, 2009

Page 20: Agile Business Talk

What Cost $100,000 Per Second?

Why Would You Need Releases Then?

14Tuesday, December 8, 2009

Page 21: Agile Business Talk

Why Would You Need Releases Then?

14Tuesday, December 8, 2009

Page 22: Agile Business Talk

Other Launch Examples?

Why Would You Need Releases Then?

14Tuesday, December 8, 2009

Page 23: Agile Business Talk

What is the Role of the Release?

15Tuesday, December 8, 2009

Page 24: Agile Business Talk

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

Page 25: Agile Business Talk

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

Page 26: Agile Business Talk

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

Page 27: Agile Business Talk

Beyond Scrum, How Do You Complete The Picture?

Thoughts? Ideas?

18Tuesday, December 8, 2009

Page 28: Agile Business Talk

The ‘Lean Operational Model’

Desired Product

(Product + Capabilities)

Customer Commitment

PrioritizedMinimal

MarketableFeatures

19Tuesday, December 8, 2009

Page 29: Agile Business Talk

The ‘Lean Operational Model’

Desired Product

(Product + Capabilities)

Customer Commitment

PrioritizedMinimal

MarketableFeatures

19Tuesday, December 8, 2009

Page 30: Agile Business Talk

The ‘Lean Operational Model’

Desired Product

(Product + Capabilities)

Customer Commitment

PrioritizedMinimal

MarketableFeatures

Customer commitmentPulls the required Content

Into Planning

19Tuesday, December 8, 2009

Page 31: Agile Business Talk

The ‘Lean Operational Model’

Desired Product

(Product + Capabilities)

Customer Commitment

PrioritizedMinimal

MarketableFeatures

19Tuesday, December 8, 2009

Page 32: Agile Business Talk

The ‘Lean Operational Model’

Desired Product

(Product + Capabilities)

Customer Commitment

PrioritizedMinimal

MarketableFeatures

19Tuesday, December 8, 2009

Page 33: Agile Business Talk

The ‘Lean Operational Model’

Desired Product

(Product + Capabilities)

Customer Commitment

PrioritizedMinimal

MarketableFeatures

Iterative

ScrumTeam

PrioritizedBacklog of

User Stories

19Tuesday, December 8, 2009

Page 34: Agile Business Talk

The ‘Lean Operational Model’

Desired Product

(Product + Capabilities)

Customer Commitment

PrioritizedMinimal

MarketableFeatures

Iterative

ScrumTeam

PrioritizedBacklog of

User Stories

19Tuesday, December 8, 2009

Page 35: Agile Business Talk

The ‘Lean Operational Model’

Desired Product

(Product + Capabilities)

Customer Commitment

PrioritizedMinimal

MarketableFeatures

Iterative

ScrumTeam

PrioritizedBacklog of

User Stories

Beta Trials

19Tuesday, December 8, 2009

Page 36: Agile Business Talk

The ‘Lean Operational Model’

Desired Product

(Product + Capabilities)

Customer Commitment

PrioritizedMinimal

MarketableFeatures

Iterative

ScrumTeam

PrioritizedBacklog of

User Stories

Beta Trials

19Tuesday, December 8, 2009

Page 37: Agile Business Talk

Release and Backlog Dynamics

Tension or Peaceful Co-existence?

Two Parts

Planning

Execution

20Tuesday, December 8, 2009

Page 38: Agile Business Talk

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

Page 39: Agile Business Talk

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

Page 40: Agile Business Talk

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

Page 41: Agile Business Talk

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

Page 42: Agile Business Talk

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

Page 43: Agile Business Talk

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

Page 44: Agile Business Talk

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

Page 45: Agile Business Talk

What About Downstream Operations?

Desired Product

(Product + Capabilities)

Customer Commitment

ScrumTeam

PrioritizedBacklog of

User Stories

Iterative

PrioritizedMinimal

MarketableFeatures

Beta Trials

25Tuesday, December 8, 2009

Page 46: Agile Business Talk

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

Page 47: Agile Business Talk

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

Page 48: Agile Business Talk

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

Page 49: Agile Business Talk

Agility is not a function of speed

@achint_sandhu

27Tuesday, December 8, 2009

Page 50: Agile Business Talk

Agility is a function of preparedness for change

@achint_sandhu

28Tuesday, December 8, 2009

Page 51: Agile Business Talk

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

Page 52: Agile Business Talk

END

30Tuesday, December 8, 2009

Page 53: Agile Business Talk

END

Or Beginning?

30Tuesday, December 8, 2009