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Disruptive Leadership

LeadershipLeanCross Functional TeamsContinuous ImprovementAgilityDelighting the CustomerInnovationScalingLeadership

EMCEricssonWorkdayCiscoSalesforceWalmartVisaMacy’sStubhubSymantecAdobeIntuitTwitterPaypalVersion OneLean ITBBCDeloiteGoogleUK CabinetSky NewsGOTORabobankHBS3MSimplicityAgile Camp

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Who We AreScrum Inc. is the Agile leadership company of Dr. Jeff Sutherland, co-creator of Scrum. We are based at the MIT Cambridge Innovation Center, MA.

Chief Product Owner JJ Sutherland leads operations and maintains the Scrum framework by: • Capturing and codifying evolving best practices (Scrum Guide) • Conducting original research on organizational behavior • Publishing (3 books) and productizing ScrumLab

CEO Jeff Sutherland helps companies achieve the full benefits of Scrum leading our comprehensive suite of support services and leadership training: • Scaling the methodology to an ever-expanding set of industries, processes and business

challenges Training (Scrum Master, Product Owner, Agile Leadership, online courses, etc.) • Consulting (linking Scrum and business strategy, customizing Scrum) • Coaching (hands-on support to Scrum teams)

We run our company using Scrum as the primary management framework, making us a living laboratory on the cutting edge of “Enterprise Scrum”

President Scrum@Hardware Joe Justice leads our hardware consulting practice: • Worldwide consulting at leading hardware companies • 700-800% performance improvement in hardware development • Builds 100 mpg cars in his garage with help from 500 people in 32 countries

© 2014

Scrum In

c.

Achieving the Dream

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among these are life, liberty and the pursuit of happiness.

United  States  Declaration  of  Independence

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Most People Don’t Have a Life• 55% of workers are unhappy in their job (Conference Board) • 65% are looking for a new job (Deloitte) • We find paid work is ranked lower than any of the other 39

activities individuals engage in, with the exception of being sick in bed. (Center for Economic Performance)

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New York Times Sunday Review

Why People Hate WorkBy TONY SCHWARTZ and CHRISTINE PORATH MAY 30, 2014

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Few Achieve the Dream

The best-laid schemes o' mice an' men Gang aft agley, An' lea'e us nought but grief an' pain, For promis'd joy! Robert Burns

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Twice as much sweat in half the time

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Make Work Visible

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#1 Corporate Problem - No Clear Backlog• The #1 problem for most organizations is lack of a single, clear, ordered backlog or products

and projects.

• This leads to confusion, wheel spinning, and demotivated employees which results in missed dates, excuses, and finger pointing,

• Fixing this problem can quickly double the production of an organization and double the revenue per unit of production.

• From an investors point of view, increasing business value delivery of the same organization by 400% this year needs to be the CEO's top priority.

• We have solution to this problem. It is called Scrum Product Ownership.

• Acceptance Tests:

• Every team has a clear, ordered backlog every sprint so they know exactly what they need to do and in what order.

• Teams are stable. No teams are raided for people to start new projects. Backlog flows to stable teams.

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Learning From LeadersGeneral Douglas MacArthur

Duty,  Honor,  Country

The shadows are lengthening for me. The twilight is here… But I want you to know that when I cross the river, my last conscious thoughts will be of the Corps, and the Corps, and the Corps.

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Plans are Worthless, Planning is Everything!

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Plans are Worthless, Planning is Everything!

Captain Edwin Atterberry Shot Down August 1967- Wikipedia

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U.S. Air Force Academy

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Cells, People, Teams, and OrganizationsChange in Small Increments

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John Bailar, M.D., Ph.D.

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Systems Architecture: Massively Parallel

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Traditional Projects: 89% Failure Rate

Death March at the Bank A Fundamentally Flawed Process

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Landing the Project

YouTube: RF-4E of the Hellenic Air Force

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Adding the Turndown Chart!

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Bootstrapping

• Helen Greiner, First Lady of Robots

• Colin Angle

• Prof. Rodney Brooks

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Prof. Muhammed Yunus

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The Importance of Architecture

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State Machine Mutations: How Things Really Work

Intervention

Visible Value

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“All complex systems evolve through a series of stable states.” Herbert Simon. The Sciences of the Artificial, Third Edition. MIT Press, 1996

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#2 Corporate Problem - No Continuously Deployable Stable States

• The #2 problem for most organizations is lack of ability to quickly deliver product in short interations.

• The most critical factor is fully integrated system build time and associated testing. If this takes months or weeks and can be reduced to days or hours, production of the organization can increase by an order of magnitude.

• We have an Agile solution for this. It is called:

• Continuous Integration

• Automated Acceptance Test Driven Development

• Continuous Deployment

• Acceptance tests:

• Incremental fully integrated builds can be done multiple times per day

• Automated acceptance tests are run with every build

• Teams have a potentially shippable increment of code at the end of a sprint (or more often)

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Organizational Architecture: 3 Constraints• Conway's law

• organizations which design systems ... are constrained to produce designs which are copies of the communication structures of these organizations

• Brook’s Law

• adding people to a late project makes it later

• Drucker’s “Cuckoo Effect”

• any innovation in a corporation will stimulate the corporate immune system to create antibodies that destroy it

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Fractal Organization: Optimal Team Size = 4.6

If there was a Nobel Prize for management, and if there was any justice in the world, I believe that the prize would be awarded, among others, to Jeff Sutherland, Ken Schwaber and Mike Cohn for their contributions to the invention of Scrum.

Steve Denning, Forbes 29 Apr 2011

@Goodbye  Org  Chart.  Fast  Company  Jun  2015

Your  structure  is  your  strategy!

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#3 Corporate Problem - Organizational Debt• The #3 problem for most organizations is organizational debt. The

structure of the organization creates so many dependencies in the product that production is crippled.

• Symptoms are missing delivery dates and unhappy customers.

• We have a solution for this. It is called Scrum@Scale.

• Acceptance tests:

• There is an Enterprise Action Team that is removing organizational impediments on a weekly basis.

• Scrum Inc. provides training, consulting, and coaching to help fix these problems.

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Formalizing the Scrum Process: Takeuchi and NonakaThe New New Product Development Game

Harvard Business Review, Jan1986

Type A – Isolated cycles of work

Type B – Overlapping work

Type C – All at once

NASA

Fuji Xerox

Honda, Canon, 3M, …

Scrum Project Management

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Characteristics of Great Teams

• Transcendent Goals

• Autonomy

• Cross-Fertilization

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Agile = Lean + Customer CollaborationAgile competition goes beyond lean manufacturing by permitting the customer, jointly with the vendor or provider, to determine what the product will be.

For agile competitors, the ability to individualize products comes at little or no increase in manufacturing cost. It does, however exact a cost: It requires major changes in organization, management philosophy, and operations.

Leadership needs to change focus:

• Eliminate waste

• Understand Value Stream Analysis

• Implement Single Piece Continuous Flow

© 1993-2015 Jeff Sutherland & Scrum Inc.

Scrum in complex systems deliveries

• $143 billion over budget • Delayed until 2022 (final

systems integration) • Cost of Navy F-35C grew

from $273 million in 2014 to $337 million by 2015

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Cumulative program cost of $15 billion New iteration of all systems released every 6 months

$43M cost1 (20% of F-35)1. According to Jane’s Aviation Weekly, the Gripen is the

world’s most cost-effective military aircraft 2. “How DOD’s $1.5 Trillion F-35 Broke the Air Force” -

FiscalTimes July 2014 3. “we are presently taking the newest strategic foundation

and analyzing whether 2,443 aircraft is the correct number” Marine Corps Gen. Joseph Dunford, July 2015

WATERFALL LATE 9 OUT OF 10 TIMES

SCRUM BETTER PLANE EVERY 6MO

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Agile Leadership• Sales, Marketing, Finance

• Manufacturing

• Technology, Software

• Families and weddings

• Education

• Agriculture

• Government

• Space

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Changing the World of Education

eduscrum.com

Higher grades Faster learning

More fun Leadership Development

Involves handicapped Motivated students

Self-discipline

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Agile Sucess Rates 2011-2015 Standish Group International, Inc.

Waterfall vs Agile 2011-2015 Data

Previously Published Data 2002-2010

© 1993-2015 Jeff Sutherland & Scrum Inc.

Typical Initial Team Assessment

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© 1993-2015 Jeff Sutherland & Scrum Inc.

Team After One Sprint with Good Cocah

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© 1993-2015 Jeff Sutherland & Scrum Inc.

Team After a Few Sprints

Good results from other teams as well • 209% (The Avengers) • 275% (The Warriors) • 367% (The Chargers)

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© 1993-2015 Jeff Sutherland & Scrum Inc.

Schroedinger’s Buffer

37Source: Stephen Daukas, Simplicity

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Deploy Aggressive Scrum!

The  faster  you  go,  the  more  resistance  you  get!

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Scrum is a Productivity Superweapon - It is Shockingly Efficient

Rick Horgan, Sr. Editor, Crown Business

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