Agile Executive Roundtable

State of the Agile Nation

May 28, 2013

Agile is now… where are we today?

- 3 -

We are seeing more and more organizations continue adopting agile to meet rapidly increasing demand and challenges in IT

“We need to deliver more value driven services”

“We need to offer faster and more responsive services”

“We need to reduce our costs and become more efficient”

$

Challenges of Today How Agile Helps

39%

37%

29%

26%

23%

18%

16%

15%

14%

Accelerate Time to Market

Manage Changing Priorities

Increase Productivity

Better Align IT / Business

Enhance Software Quality

Project Visibility

Reduce Risk

Simplified Process

Reduced Cost

VersionOne: State of Agile Survey (2011, n=6000+), percentages show option respondents marked as ‘Highest Important’ - http://www.versionone.com/pdf/2011_State_of_Agile_Development_Survey_Results.pdf

Delivering Business

Value

Focuses on delivering the highest business value in the shortest time.

Rapid and Repeatable Processes

Enables rapidly and repeatedly inspecting actual working software (every two weeks to one month).

Self-Organizatio

n

The business sets the priorities. Teams self-organize to determine the best way to deliver the highest priority features.

Working Software

Every two weeks to a month anyone can see real working software and decide to release it as is or continue to enhance it for another iteration/sprint.

Top Benefits of Agile

- 4 -

Your agile isn’t my agile… the adoption of agile is uneven and inconsistent across organizations

Incremental Development

Iterative Development

Scrum

eXtreme Programming

Kanban

Lean Software Development

RUP

Continuous Delivery

DevOps

Lean StartupFeature Driven Development

Home-brewed Small “a” agile Big “A” Agile Methods Leading Edge Agile

The agile ecosystem is diverse and complicated

What do each of these really mean to my

organization?

Imp

ac

t o

f C

ha

ng

e Medium

Low

Low

High

Medium

Medium

High

High

High

Process

People

Technology

- 5 -

Lots of whitespace remains … Organizations adopting agile are not fully unlocking the potential of agile methods

Planning Requirements Design Development Testing ImplementationBusiness Casing

Processes converted to agile

Processes still waterfall

Operations

Iterative Development

Tooling improvement whitespace for increasing

agility

Process improvement whitespace for increasing

agility

Majority of Agile Adoption Today

Incremental Development

Lean Startup with Agile

Big “A” Agile Methods

Moving Agility to the Business Moving Agility to Engineering

- 6 -

Barriers to change… Doing agile is easy, being agile is hard

VersionOne: State of Agile Survey (2011, n=6000+), respondents were allowed to choose multiple options http://www.versionone.com/pdf/2011_State_of_Agile_Development_Survey_Results.pdf

Adoption

Applicability

“Alien” and even threatening Is an extremely large paradigm shift Many pay lip service only

“You’ve been doing it wrong”“We can’t or won’t do that here”

Agile misapplication or Agile flaw? Big “A” Agile is a challenge in many

contexts

A large range of IT projects are not benefiting from agile

Organizational adoption and applicability is where the rubber hits the road

- 7 -

The road to success? Take a different approach to agile adoption

Being agile is about delivering greater business value and not just the process

Your context matters, there is no one “right” approach to agile adoption

We want more delivery agility, but we don’t want Big

“A” Agile

Everything is broken, it’s time for a rethink

Story #1 – Agile without big change

Story #3 – Agile is what we want to be

Story #2 – Agile to Product Development

We’re not sure we are building the right thing, we want to be more agile in

how we define our products

Public Sector Banking Insurance

We have been working with a number of different organizations unlock the benefits of agile based on their pace of change using Kanban

The results: These organizations are making agile work the they want

Successful agile adoption requires changing everything on day one: Fact or fiction?

The organization needs to own and define what agile means

Kanban: Start with what you do today

- 9 -

Successful change is hard – Being “agile” towards change is essential

Old Performance

New Performance

Initiative Stops

Current State

Target StateOur approach to change

Time

Per

form

ance

Massive disruption to the organization Depends on getting it right from the beginning Requires long-term stability in leadership and

patience from clients

A big bang approach to change can foster cultural resistance and other change risks

- 10 -

One of the key drivers for fast incremental change is to “do more with less” by focusing on reducing waste to generate improvement

Reducing the amount of work-in progress – stop starting, start finishing

Focus on flow, remove bottlenecks and reduce cycles

Visualize the work and start increasingfeedback and collaboration

Identify performance improvement

opportunities based on measurable results

Give all levels of staff the ability to improve

the work environment

- 11 -

Kanban is an agile approach to change that focuses on visualization and limiting work to drive out bottlenecks and improvements

- Developers must put current work on-hold if a high severity defect is found in test.

- Work tickets must be reviewed once every two weeks.

- Only 1 work ticket can be assigned to any tester at any given time.

New Build

SystemMaintenance

Issue Support

Install/Patch Configure Data Load Verify Deploy

IP Done IP Done IP Done IP Done

(12)

(5)

(6)

(2) (1) (3) (3)

Input QueueTest

Done

Development UATRequirements

& Analysis

IP Done IP Done IP Done IP Done(8)(3) (4) (3) (2)

B

D

Work is blocked Bottleneck Team is idleWork is blockedWork is blocked

Board Policies

B

- 12 -

Kanban is supported by metrics and measurements to provide a measurable approach to validate improvements

DoPlan

CheckAct

Kaizen

Current Prior Trend Current Prior Trend

Delivery Lead Time 5 days 8 days Blockers per Feature 1 0.5

Analysis / Dev. Cycle Time 3 days 5 days Blocker Cycle Time 1 day 1 day

Test Cycle Time 1 day 1 day Defects per Feature 0.5 1

Wait Time Per Feature 1 day 2 day Defect Cycle Time 1 day 2 days

Delivery Throughput 5/mth 5/mth Capacity Load 5 4

Feature Target Conformance % 25% 50%

Time to Market KPIs Quality KPIs

0

0.2

0.4

0.6

0.8

1

1.2

J an Feb Mar Apr May J un J ul

Delivery Lead Time

0.0

0.5

1.0

1.5

J an Feb Mar Apr May J un J ulDelivery Throughput Backlog

Delivery Throughput vs. Backlog

Issues & Defects per Feature

0.0

0.2

0.4

0.6

0.8

1.0

1.2

J an Feb Mar Apr May J un J ul

WIP per FTE

0

0.5

1

1.5

J an Feb Mar Apr May J un J ulBlocker per Feature Defect per Feature

0

1

2

3

4

5

J ul Aug Sep Oct Nov Dec J an

Agile from the trenches Story#1: Optimizing a service based

organization

- 14 -

Public sector organization looking to optimize their consolidation strategy and not looking for big “A” agile change

Target Outcomes Cost Reduction Operational Efficiency Economies of Scale

But also at a cost…

Undesirable Outcomes Long delivery times Decline in service

responsiveness Inconsistent execution

Cluster

Cluster

Dept. A Dept. B Dept. C Dept. D

IT Delivery Group

A

IT Delivery Group

B

IT Delivery Group

C

IT Delivery Group

D

IT Cluster

Dept. A Dept. B Dept. C Dept. D

IT Delivery Group A

IT Delivery Group B

IT Delivery Group C

IT Delivery Group D

Common Services

How do we leverage our consolidation and get faster, better and cheaper?

- 15 -

Kanban was implemented for each service group to kickstart the improvement process and enable the organization to improve itself

- 16 -

As a result, the Kanban systems allowed the organization to create real-time blueprints of how work flowed across the organization

Geographic Information System (GIS) COE

Completed this Quarter

Work Packages

Test

Under Test

GIS COE Plan and Build

Requirements Design Develop

Team JWAHD

Team RPG

Team KGSR

Data Class Work Cell

Analysis / Design

Work Package Intake and Prioritization

Region East

Data Classes Intake

Work Package Request Processing

Concept and Definition Support

Requests Backlog

In Progress Done

Responded

Next Fiscal Mar 2012 Feb 2012 Jan 2012 This Month

Regional West

Regional Central

Regional North

Support Tickets Data

GIB

NRM

In Progress

Define Physical Design & Scripts for Dissemination

DB

LIO Implementation & Development

SNIF Report Approval NRVIS Implementation & Development

Requirements Documentation Completed

Requirements Analysis / Design Build / Code

Requirements Design Build

Promote to Test

Ready for Test

Ongoing

Promote to Staging

Ready for Production

Defects

Cancelled / On Hold

Completed this Year

Work Packages

Defects

Cancelled / On Hold

This Month

Next Month

Later

SD Required

No SD Required

Continuing

Off Ramp

In Progress

New Work Package

Partially Done

Underway

New Work Package

Partially Done

Underway

New Work Package

Partially Done

Underway

New Work Package

Partially Done

Underway

New Work Package

Partially Done

Underway

Next Fiscal Mar 2012 Feb 2012 Jan 2012 This Month

Next Fiscal Mar 2012 Feb 2012 Jan 2012 This Month

Next Fiscal Mar 2012 Feb 2012 Jan 2012 This Month

Data

Application

Next Fiscal Mar 2012 Feb 2012 Jan 2012 This Month

Next Fiscal Mar 2012 Feb 2012 Jan 2012 This Month

Enhancement

Project Data Class Review

Completed

In Progress Completed In Progress Completed

Report Created

Approval in Progress

Approval Completed

In Progress Completed

Input Queue

Analysis Required

Development Queue

In Progress Completed

SRS Doc Test Case

In ProgressClient

ReviewSign-Off /

CompletedIn Progress

Review (Client /

Dev / Arch)Completed In Progress Completed

In ProgressWaiting for Approval

Done In Progress Done In ProgressClient / BA

ReviewCompleted

Application

Data Class

Team AA

Team BN

Defect Found

Team AA

Team BN

Iteration Completed

Application

Data Class

Ready for Stage

Testing

Stage Testing

Application

Data Class

Production Sign-Off

Resolved

Postponed

On Hold Cancelled

Completed

Resolved

Postponed

On Hold Cancelled

Completed

Archive

Continuing

Off Ramp

Application Maintenance and Operations (AMO )

Completed This

Quarter

Maintenance and Support

AMO NRM Work Cell

Delivery Work

Support Tickets

Analyze Support Work

Enhance / Adapt / Correct Work

Stage TestingCoding ConfigWork Queue

Infrastructure / Software Work

Planning and Work Package Definition

Non -Support Work Package Backlog

Ready for Planning and AnalysisConcept and Definition / Consulting

In Progress Later Next

In Progress Done

RFC / RFSE Process

App Release Work

Internal M &S Work

Project Based Work

External

AMO NRM

Ready for Test

Test

External

In Progress

To Be Resolved

AMO Work Packages

Defects

Completed This Year

AMO Work Packages

Defects

Concept and Definition Requests

Concept and Definition

Consulting / Support

Project-Based Work

Internal M&S

Project-Based Work

Internal M&S

On-Hold Work Packages

Project-Based Work

Internal M&S

Project-Based Work

Internal M&S

Support Work Package Backlog

Next (Monthly) Within Next 30 Days AssessmentPrepare RFC

Prepare RFSE

Waiting for ExternalConduct Follow-Up

Activities

Next (Bi-Weekly) Within Next 2 Weeks Promote Verification Feedback

Next (Monthly)

Within Next 30 Days

Next (Monthly)

Within Next 30 Days

In Progress Done

In ProgressPromote to

Test

AMO NRM Ready for

Test

External Ready for

Test

AMO NRM

ExternalReady for

UATUAT Testing

Promote to Staging

In Progress Done

AMO NRM

Promote to PRD

Next (Bi-Weekly) Within Next 2 Weeks NRM Analysis / Support / Resolution

External Analysis / Resolution

Enhance / Adapt / Correct Work Needed for Resolution

AMO Consulting

Tickets Completed

Completed

Cancelled

Resolved

Postponed

AMO Consulting

Tickets Completed

Completed

Cancelled

Resolved

Postponed

Archive

Procurement

AAAN & SOW PreparationASAN , RFS Preparation (& SSCPB )

Distant To Do

SSCPB

RFS

ASAN

TBD Evaluation

SOW

AAAN Prep & Circulation

Vendor On -Boarding

Archive

Projects

RFS

SOW

Immediate To Do

Request Assess

Waiting Assessment

Done

In ProgressWaiting for Legal, etc.

Done

In ProgressWaiting

(Review / Signatures)

Done

Waiting for Vendor

Submission

Evaluation Prep

Waiting Evaluation

Consolidating Eval.

In ProgressWaiting Legal

ReviewFinalize

In ProgressWaiting for Signatures

Done

In Progress Done

Projects

RFS

SOW

SSCPB

Java COE

ArchiveCompleted This

Quarter

UATSystem TestingJava Workflow

Java Migration / New Feature

WP Test in ProgressPreparation

Requirements Analysis

Infrastructure Setup

Input Queue

NextBacklog

Implement Solution

Architecture Work

Define Detailed Requirements

Technical Analysis

Design Build

WP Testing

Build Documentation

MRFs

Code Promotion

Work Packages

MRF

Non Functional Testing

Work Packages

MRF

Promotion

UAT Test

Release

Defects

Work Packages

Completed This Year

Defects

Work Packages

Defects

Next Work Packages

Work Packages

Solution Engagement ITS Review Identify OptionsStaging

Production

Design Proof of Concept Done

In ProgressBusiness Feedback

Review Done

In Progress Done

In Progress Done

In Progress Done In Progress Done

Code Review & Promotion

WP Dev Completed & Ready for

WP TestReview Fix

In Progress Done

In Progress Done

Work Package Complete

In Progress User Demonstration MRF Complete

In Progress Done

In ProgressFix Work Package

Done

In Progress Fix MRF Done

In ProgressFix Work Package

Done

In Progress Fix MRF Done

Ready for Promotion In Progress Done

In Progress Done

UAT Fix

Prepare RFC

RFC Submitted

RFC Approved

Resolved

Postponed

Completed

Cancelled / On Hold

Resolved

Postponed

Completed

Cancelled / On Hold

Resolved Defects

Unresolved Defects

Completed Work Packages

Data Management and Reporting (DM &R)

Data Management and Reporting Kanban

BI / OLAP / OLTP

New Build & Enhancement

Data Extract Request

Execution

Tabular / Spatial

Tabular / Spatial Projects or Enhancement

Requirements

Tabular / Spatial Data Loading

Build / Load

Level 1 Issue Support

Level 2 Issue Support & Data /App Maintenance

Database Implementation / Maintenance

Infrastructure & Software Install /Upgrade /Deployment

Install / Config / Deploy / Verify (dev /test )

Input Queue

Delivery Work

Concept Definition / Consulting Support

Concept & Definition

Concept & Definition Requests

C&D Consulting Support

DM &R SD Required WP Request Form

Issue Support

Internal DM &R

Other Application Delivery Groups

Business / Ministry

Analysis / Review

Internal

Install / Configure / Deploy (prod )

Internal

Verify

Internal

Database Creation Install /Patch Configure /Build Data Load Verify

Internal

Deploy to Prod

Internal

Analysis Coding / Configure

Internal

Test

Internal

UAT / Staging / Prod Prep Deploy to Prod

Internal

Verify

Internal

Analysis / Support / Resolution To Be Resolved

Tabular / Spatial Support Work

Tabular / Spatial Other Work

Source Data Acquisition

Internal

Backup / Verify

Internal

Deploy to Prod (External )

Internal

Internal

Requirements Review / Analysis

Design / Build Test (External ) Staging & Prod Prep Deploy to Prod Verify

Internal

BI / OLAP / OLTP Support Work

Application Support Work

BI / OLAP / OLTP Other Work

Analysis Design / Build

Internal (dev /test /prod )

Review

Internal

Requirements

Internal

Requirements Review / Analysis

Design / Build / Config Test UAT Deploy to Pro

Internal

Verify

Internal Verify

Defects

Work Packages

Completed This

Quarter

Defects

Work Packages

Completed This Year

This Month

Next Month

LaterIn Progress Done

In Progress DoneReview

ProgressResponded

On Hold

Within 4 Months

Within 2 Months

This Month

Within 4 Months

Within 2 Months

This Month

Within 4 Months

Within 2 Months

This Month

Within 4 Months

Within 2 Months

This Month

In Progress Done In Progress Done

External

In Progress Done

External

In Progress Done

Client Verify

In Progress Done In Progress Done In Progress Done In Progress Done In Progress Done

Client Verify

In Progress Done

Non DM&R

In Progress Done In Progress Done

Non DM&R

In Progress Done

Non DM&R (Test Group)

In Progress Done In Progress Done

Non DM&R

In Progress Done

Non DM&R

Internal

Non DM&R

Internal

Non DM&R

In Progress on AMO Capability Board

In Progress on GIS Capability Board

In Progress Review

In Progress DoneIn Progress Done

Non DM&R

In Progress Done

Non DM&R

In Progress Done

Non DM&R

In Progress Done

Client Verify

In Progress Done In Progress DonePromote to

TestIn Progress Done In Progress Done In Progress Done

In Progress Done

Client Verify

In Progress on GIS Capability Board

In Progress on Java Capability Board

In Progress

In Progress Review

In Progress Done In Progress Done

In Progress Done

Non DM&R (prod)

In Progress Done

Client Verify

In Progress Done

Client Feedback

In Progress Done

Dev Ready

In Progress DonePromote to

TestIn Progress Done

Promote to UAT

In Progress Done

In Progress Done

Non DM&R

In Progress Done

Client Verification

Postponed

Resolved

Cancelled / On Hold

Completed

Postponed

Resolved

Cancelled / On Hold

Completed

Lotus Notes

Maintenance and Operations

Geographic Information Systems

Java Centre of Excellence

Procurement

Data Management and Reporting

Agile from the trenches: Story #2: Learn your way to product

success

- 18 -

Financial Services Institution wanting to build a new innovative product for mobile payments

Phone manufacturers

Banks

NOT EXHAUSTIVE

• Increase interchange revenues due to increased transactions

• Increase revenues from more expensive hardware sales

• Gain part of the interchange (e.g., through real-estate fees for SIM as Secure Element)

• Create a parallel payments solution or participate in existing payments network (e.g., in-game purchases)

• Gain part of the interchange (e.g., by providing an eWallet)

• Gain revenues from loyalty, couponing and ads (e.g., Google)

• Convenience, ease-of-use and security

Merchants

Trusted Service Managers

Mobile NFC Ecosystem

MNOs

Issuers

Independent Players

Consumers

Acquirers

OEMs (Handsets, Chips, etc.)

OS / App Developers

Card Networks

• Increase revenues from managed services

• Reduce interchange cost• Real-time, location-based

coupons / rewards to drive foot-traffic

• Protect margins from interchange revenues

• Retain control over payments space

• Protect margins from interchange revenues

• Create a parallel payments solution or participate in existing payments network (e.g., PayPal)

• Increase customer loyalty (e.g., Starbucks)

New product ideaGenerate a

product hypothesis

Extract assumptions

Visualize and continuously

validate

Pursue or pivot with a new product hypothesis

Launch Minimum

Viable Product

Lots of competitors and partners

Complex ecosystem

How do we apply agile to help us build the right product?

The organization applied Lean Startup with Kanban to enable high agility and feedback in the product development lifecycle

!

- 19 -

Product Market

Generating the hypothesis

Key Partners Key Activities Product Key Metrics of Success

Customer Segment

Key Resources Place / Channel

Cost Price / Revenue

Development services offered as a white labeled solution by Partner X

Software developer for SDK &Wallet provider

Marketing agency to develop collateral for marketing campaign and PR

Market ValidationSolution DeliveryLab ValidationPilotRoll-out Marketing

Internal delivery teamLegal/Marketing/ FinancePast products

What Key Resources [People) and Capabilities [Process] does our Product leverage?

What Key Activities does our Product Require (e.g. to Build, to Support, etc.)?

Who are our Key Partners?

Who are our key Suppliers? What is our Unique Value Proposition to our Customer Segments?

What customer problem are we solving?

What are the major features of our solution?

Customer: Fast payment, and conveniently available on a phone

Merchant: Speed of processing customers through lines

Issuer: Mobile innovation and new channel to communicate to debit users

Multiple iterations

1-2 Issuers1K customers1-2 merchants10%↑ Social Media15%↑ Web Traffic

What are the key metrics that will tell us how our product is doing?

What channels will be leveraged to have our Product reach our Customer Segments?

Mobile AppBranding & AdvertisingPartner Networks

End CustomersEmotional spendersMature pragmatists

Merchants

AcquirersIssuers

What are our key customer segments and what are the unique requirements of each customer segment?

Mobile Network Operators

Development

Test Tools

Certification

Scripting

Marketing

Legal

What are the most important costs drivers inherent in our Product?

Merchants willing to pay X

Customers willing to pay Y

Acquirers & Issuers willing to pay Z

MNOs willing to pay A

- 20 -

Kanban was used to keep the team focused on validating experiments fast and accelerate the transfer to development

Validation Backlog by common area Plan

Validation

Agile from the trenches: Story #3: Rebuild into an agile organization

- 22 -

Day 0: Lots of silos, poor delivery performance, inconsistent SDLC and urgency for real change drove an Agile Transformation

Tear down silos within their IT organization and setup co-located teams as delivery pods.

1 Manage IT delivery through Kanban and robust metrics.

2

Build a highly collaborative and trusting culture.

43Re-orient management and staff to leverage agile practices

- 23 -

Enterprise KanbanA dedicated, project level Kanban system for managers and executives

The Kanban was used by Managers and executives to: Visualize projects and maintenance releases Engage in issue escalation/resolution through standups Limit projects based on capacity

- 24 -

Agile Kanban Pilot ProjectsSetting up cross functional teams using a mixture of story mapping, CRC modeling, planning poker alongside Kanban systems

Project teams adopted agile practices to Decompose work using Story Mapping and BDD Manage projects based on velocity and user stories Collaboratively estimate it introduced to planning poker Facilitate collaborative design sessions using agile modeling techniques

Putting it all together

- 26 -

We are seeing organizations overcome these challenges to start unlocking the full benefits of agile

Observations of patterns of success

There is no one right “agile” approach – organizations need to adapt agile for their

environment and adopt a learning based approach to figure out what works for them

Agile is more than just an SDLC – it’s a new way thinking and requires people to change

their definition of success and way of working

Management needs help – managers are traditionally the execution engine of the

organization and they need support in understanding the change in their role and

management style

Double down on improving governance – getting agile right for pilots is easy, for

organizational rollout we need a strong governance system that accelerates decision-

making and resolves problems fast

Dedicated support is essential – change is hard and long, the organization needs focused

support to “coach” the people into how to learn their way to success

Being agile is about delivering greater business value and not just following the process

- 27 -

How to get started or take your agile adoption to the next level?

Start with where you are today and take a look at Kanban

Approach

• Map out how technology delivery work flows through the organization from ideation to delivery / launch

• Decompose the work into fine grained units of value (e.g., features, stories)

• Balance demand versus capacity based on delivery commitments by limiting work-in-progress

• Visualize work as it flows through the organization on a physical board

• Limit total work in progress

• Identify and eliminate bottlenecks in real-time within projects

• Develop an evolutionary policy framework to support better performance and efficiency

• Drive collaboration and encourage teams to improve the process

• Implement metrics and measurements focused on customer value and build a quality management capability

• Move towards greater predictability by continuously improving based on quantifiable metrics

• Align reward and recognition systems to reinforce continuous improvement culture and adoption of new capabilities (longer term)

Establish a System of Work

Visualize the Work Continuously Improve

- 28 -

Alexis HuiDeloitte LEAN Co-LeadManager – LEAN Practicealhui@deloitte.ca

Thank you for your timeKey contacts for Deloitte LEAN