the secret sauce for innovation (longform)

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1 Copyright ©2012 CollabNet, Inc. All Rights Reserved. ENTERPRISE CLOUD DEVELOPMENT Innovation and Agility PMI REP #3517 Laszlo Szalvay, VP Worldwide Scrum Business Tuesday, December 11, 2012

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Laszlo Szalvay is a business leader, entrepreneur and industry expert of implementing Scrum and Agile-based practices for global IT organizations. Though his experience, he has identified five practical steps that every organization should adopt and make part of their DNA. At Agile Brazil 2012 Szalvay will outline the process of combining Agile concepts with a new approach to innovation that organizations can use to create surprising breakthroughs in new product creation and development. Using a wide range of real-world examples, interactive exercises and an engaging discussion style, Szalvay will provide every participant with useful insights that can be immediately applied to re-invigorate and nourish product innovation.

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Page 1: The Secret Sauce for Innovation (longform)

1 Copyright ©2012 CollabNet, Inc. All Rights Reserved.ENTERPRISE CLOUD DEVELOPMENT

Innovation and AgilityPMI REP #3517

Laszlo Szalvay, VP Worldwide Scrum Business

Tuesday, December 11, 2012

Page 2: The Secret Sauce for Innovation (longform)

2 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

Innovation Quotes

Without change there is no innovation, creativity, or incentive for improvement.

Those who initiate change will have a better opportunity to manage the change

that is inevitable.– William Pollard

Innovation is the central issue in economic prosperity.– Michael Porter

Innovation is the specific instrument of entrepreneurship. The act that endows

resources with a new capacity to create wealth.– Peter Drucker

Learning and innovation go hand in hand. The arrogance of success is to think

that what you did yesterday will be sufficient for tomorrow.– William Pollard

Innovation is not the product of logical thought, although the result is tied to

logical structure.– Albert Einstein

Mindless habitual behavior is the enemy of innovation.– Rosabeth Moss Kanter

Page 3: The Secret Sauce for Innovation (longform)

3 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

A short review of History

If I had asked people what they

wanted, they would have said

faster horses.Henry Ford

http://bit.ly/GRFPxO

Page 4: The Secret Sauce for Innovation (longform)

4 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

About CollabNetR

eco

gn

itio

n

Founded

Subversion

Open ALM Platform

Build

Lab Management

Founded

Agile PM

#1 Scrum Trainer

Dev Tools Hosting

Development

Communities

Collaborative

ALMALM

Hybrid Cloud

Development

Platform

1999 2000 2007 2008 2009 2011 2012

Th

emes

dPaaS

Page 5: The Secret Sauce for Innovation (longform)

5 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

• Understanding the

problem space

• My 5 step guide to making your

organization more innovative

• Closing

Agenda

http://thepulse-mag.org/2011/11/innovation/

What is desirable to

users?

What is viable in the marketplace?

What is possible with

technology

innovation

Page 6: The Secret Sauce for Innovation (longform)

6 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

We know Innovation drives growth and wealth creation for both

organizations and people.

• How do we innovate?

• How can we set ourselves up for success in innovation?

• How do we create the next great product?

• How do we exploit technology as a competitive edge here?

Problem Statement

Page 7: The Secret Sauce for Innovation (longform)

7 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

Our BHAG (big hairy audacious goal)

Agility enables innovation.

Page 8: The Secret Sauce for Innovation (longform)

8 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

Market trends

“Scrum is the Modern way to work” October 2010

Tieto

In person meeting in Helsinki”

Mika Koivuluoma, VP Software Development and Tools

Page 9: The Secret Sauce for Innovation (longform)

9 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

Build Your Own Scrumbrought to you by Adam Weisbart

Level set your Scrum knowledge with your teammates (18 mins)

Exercise: Build Your Own Scrum

Page 10: The Secret Sauce for Innovation (longform)

10 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

Roles, meetings, and artifacts

Scrum is a means to an end

Page 11: The Secret Sauce for Innovation (longform)

11 Copyright ©2012 CollabNet, Inc. All Rights Reserved.11 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

Step One – The Organization Become a Learning Organization

Page 12: The Secret Sauce for Innovation (longform)

12 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

On Become a Learning Organization

• Scrum won’t solve your problems. Scrum will

discover underlying problems in your organization.

It’s your job as managers and executives to solve the

problems Scrum unearths using a framework

CollabNet can teach you.

• Scrum doesn’t work when:

– You believe that your organization doesn’t have

problems

– Politically or culturally you can’t solve problems

• Scrum works when

– You have a learning organization. One where the

leadership sees solving problems as a means to a

better company.

– Being an Agile Business

• A lesson about following the baton

Jeff Sutherland

Page 13: The Secret Sauce for Innovation (longform)

13 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

Thought Leader Perspective

2002

Slack

Tom DeMarco

If your company’s goal is

to become fast,

responsive, and agile,

more efficiency is not the

answer – you need more

slack.

DeMarco (Peopleware), a

management consultant, says that

in today's competitive, fast-moving

economy, managers work far less

effectively than before. Responding

to restructuring and staff

reductions, managers

overemphasize deadlines and rush

employees, sacrificing quality.

Instead, says DeMarco, executives

should encourage teamwork,

discourage competition and allow

training time. 2001

Cahners Business Information, Inc.

Page 14: The Secret Sauce for Innovation (longform)

14 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

Thought Leader Perspective

2009

TED Conference

Dan Pink “These lessons are worth

repeating, and if more

companies feel

emboldened to follow Mr.

Pink's advice, then so much

the better.”Wall Street Journal

“Pink is rapidly acquiring

international guru status…

He is an engaging writer,

who challenges and

provokes.”Financial Times

In Drive, Dan Pink examines the three

elements of true motivation—

Autonomy over time, task, team,

technique led to 20% time at some of the

most innovative companies in the world.

Page 15: The Secret Sauce for Innovation (longform)

15 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

Thought Leader Perspective

Innovation is a typical bottom-up phenomenon. Publications like

Complexity and Innovation in Organizations, and Complexity

Perspectives in Innovation and Social Change emphasize that

innovation is doomed to fail when launched by upper management

as top-down programs of “special” people, assigned with the

difficult task of inventing something new. This approach reflects a

causal deterministic view of trying to take charge of what’s going to

happen in the future. It usually doesn’t work.

The complex systems approach says that innovation is not a

planned result, but an emergent result. Innovation just happens in

self-organizing teams. But, for things to emerge there has to be

something to emerge out of. And the key ingredients for innovation

are: knowledge, creativity, motivation, diversity, and personality.

http://www.noop.nl/2009/09/innovation-is-the-key-to-survival.html

Jurgen Appelo

Page 16: The Secret Sauce for Innovation (longform)

16 Copyright ©2012 CollabNet, Inc. All Rights Reserved.16 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

Step Two – The People Employee Retention

Page 17: The Secret Sauce for Innovation (longform)

17 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

Employee retention

Find employees who are intrinsically motivated and

do everything you can to nourish and retain them

Create a construct that includes slack,

bottom-up ownership, and get out of the way

Page 18: The Secret Sauce for Innovation (longform)

18 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

So does Dan Pink’s motivation

concept hold water?

So how did SCM market play out?

2007 Forrester Research

The Forrester Wave: Software Change and Configuration Management

autonomy, mastery, and purpose = innovation and market leadership

Page 19: The Secret Sauce for Innovation (longform)

19 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

Our ALM Platform

Page 20: The Secret Sauce for Innovation (longform)

20 Copyright ©2012 CollabNet, Inc. All Rights Reserved.20 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

Step Three – The PlatformImplement Community Architecture

Page 21: The Secret Sauce for Innovation (longform)

21 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

Enterprise Cloud Development

Page 22: The Secret Sauce for Innovation (longform)

22 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

Your developers want to collaborate and be part of a community

– step 2 enables that through…

– Inner-source (Corporate Open Source)

– Transparency (breeds trust which drives reuse)

– Workspaces and Wikis (Federated)

Implement Community Architecture – what are the benefits?

Wiki is the oldest and simplest

software that lets a community

of strangers work together to

build something of surprising

and lasting value.

Ward Cunningham

Inventor of the Wiki

Sent to Laz via LinkedIn in March 2012

Page 23: The Secret Sauce for Innovation (longform)

23 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

Thought Leader Perspective

Laszlo’s question:

When we spoke you mentioned you started with a wiki,

SVN, and a mailing list. Why these three?

Brian’s response:

We started in 1995 with a mailing list, version control tool,

and bug database. The “why” is pretty mundane – it’s

because that’s the tools others were using at the time,

they were *simple*, and they met people where they

were. An email mailing list is *still* more interesting to me

and I think more directly engaging for people, especially

techies, than a forum on a website or a Facebook thread or

whatever. SVN and Git are still essential. And a workflow-

ish tool to systematically handle bugs and feature requests,

essential then and essential now. But we weren’t inventing

anything new in 1995 when it came to collaboration tools.

But I still think those three tools are enough to build great

software. Call me old-fashioned...

Brian Behlendorf is a tech guru

and overall bad-ass.

Page 24: The Secret Sauce for Innovation (longform)

24 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

What are two things you can change inside your own company

on Monday to create an environment of innovation?

(3 mins)

Exercise: Build Your Own Community Architecture

Page 25: The Secret Sauce for Innovation (longform)

25 Copyright ©2012 CollabNet, Inc. All Rights Reserved.25 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

Step Four – The ExecutiveHave a Vision

Page 26: The Secret Sauce for Innovation (longform)

26 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

• Delight More by Offering Less

• Explore More Alternatives

• Defer Decisions

• Delight Users By Meeting Unrecognized Needs

• Aim for the Simplest Possible Thing

Delighting Users

Give the people doing the work a clear

line of sight to the people for whom the

work is being done.Steven Denning

Page 27: The Secret Sauce for Innovation (longform)

27 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

• Executive Vision Sessions

• Story Mapping

• Walking Skeletons

• Building Epics

Techniques to help Create & Foster a Vision

Page 28: The Secret Sauce for Innovation (longform)

28 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

• Who are our primary users?

• What do they say they need?

• What do we know that they

don’t?

• What is our product’s key

benefit?

• Who are our primary

competitors?

• What makes our product

different?

Technique (a) – Vision Session

http://bit.ly/N1WdZC

Page 29: The Secret Sauce for Innovation (longform)

29 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

• A user story map...

– Arranges user stories into a useful model

– Helps you understand the overall functionality of the system

– Identifies holes and omissions in your backlog

– Helps effectively plan holistic releases that deliver value to users and business with each release.

Technique (b) – User Story Maps

Jeff Patton

Page 30: The Secret Sauce for Innovation (longform)

30 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

Technique (c) – Walking Skeleton

A Walking Skeleton is a tiny

implementation of the system that

performs a small end-to-end function.

It need not use the final architecture,

but it should link together the main

architectural components. The

architecture and the functionality can

then evolve in parallel.

Page 31: The Secret Sauce for Innovation (longform)

31 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

Technique (d) – Epic Budgeting

Budgeting is used to set soft limits on scope goals within

the broader context of a date-based milestone.

This technique is therefore

a powerful tool for

determining whether

too much emphasis has

been placed on a particular

Epic in contrast to others

in the release milestone.

Page 32: The Secret Sauce for Innovation (longform)

32 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

What are two things you can change inside your own company on Monday

to create an environment of innovation (If you were the boss)?

(6 mins)

Exercise: Be Your Own Boss

Page 33: The Secret Sauce for Innovation (longform)

33 Copyright ©2012 CollabNet, Inc. All Rights Reserved.33 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

Step Five – Articulation Use User Stories

Page 34: The Secret Sauce for Innovation (longform)

34 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

User stories are simply a format for writing business

requirements such that they are implementation-independent.

User stories:

• State requirements from the viewpoints of different stakeholders

• Allow you to stop predicting/dictating system implementation

(“The system shall…”) and start talking about how people will use

the system; building capabilities

• “are a promise for a future conversation” (Ron Jeffries)

• Contain acceptance criteria (a definition of ‘done’)

Step 5 – Use User Stories

Page 35: The Secret Sauce for Innovation (longform)

35 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

User Story Format

Story template form:

“As a <role> I want to <capability>

so that <rationale>.”

Page 36: The Secret Sauce for Innovation (longform)

36 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

• Independent

• Negotiable

• Valuable

• Estimable

• Small

• Testable

Good User Stories Follow the INVEST Acronym

Picture taken by David Koontz http://bit.ly/Kww9JY

Page 37: The Secret Sauce for Innovation (longform)

37 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

I want the brochure to be colorful.

• Drawbacks: not Independent, not Estimable (without

knowing other features of brochure), not Small.

• This is an easy trap for those of us who grew up with the

habit of writing “the JFIDM shall comply with the IEEE-488

interface specification.”

• Some nonfunctional requirements fit this category.

• Better: Make “colorful” (and other cross-cutting

requirements) an acceptance criteria on each of the specific

features in the backlog.

Example story that could be improved

Page 38: The Secret Sauce for Innovation (longform)

38 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

1. The website shall allow a user to register

2. The system shall allow a manager to reassign work from one employee to another

3. A customer can change their mailing address from the website

4. A tax payer can pay his/ her federal taxes online

5. A user can drag and drop a customer from one marketing group database to another

Improve these User Stories

Page 39: The Secret Sauce for Innovation (longform)

39 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

User stories are often broken into tasks, the specific actions the team will perform to fulfill the story. User stories describe the “what” while tasks describe the “how”. For example:

• “As a web customer, I want a way to make a payment online so I can make my payment the

same day it is due.”

– Task 1: build user interface

– Task 2: build business logic layer

– Task 3: connect UI and BL

– Task 4: unit test new components

– Task 5: code review

– Task 6: test new components

– Task 7: run regression tests

Tasks

Page 40: The Secret Sauce for Innovation (longform)

40 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

Are the items below epics, stories or tasks? (5 minute group exercise)

1. Create a report to track inventory levels by day, week and month

2. Add a feature to our timekeeping system to require overtime to be

submitted for approval

3. Implement single sign-on

4. Test the AddNewCust component

5. Get developer Susan up to speed on how to use CollabNet TeamForge

6. Create a way to track client contract expiration dates

Epics, Stories, Tasks…

Page 41: The Secret Sauce for Innovation (longform)

41 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

• Teams use a variety of methods to estimate stories:– T-shirt sizes (XS, S, M, L, XL, XXXL aka “epic”)

– Fibonacci series style (i.e. – 1,2,3,5,8,13,21…)

– 2x style (1,2,4,8,16, 32…)

– Ideal days (not recommended: why?)

• Teams’ estimates of user stories are often expressed as story

points, a scale unique to each team

• The average number of story points completed by a team each

sprint is called the team’s Velocity

User Stories and Story Points

Page 42: The Secret Sauce for Innovation (longform)

42 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

Estimation Exercise

Please estimate the size of the following items

(absolute, not relative)

Number of hairs on the average human head

Number of known species of shark

Average number of deaths recorded each year worldwide from

snake bites

Price paid in 1987 for the painting “Irises” by Vincent Van Gogh

Rank of Dalmatians, in 2007, among most popular dog breeds

registered by the AKC (out of 157 total breeds)

Calculated amount in lost sales by Amazon.com per hour of site

downtime (based on 2008 projections)

Page 43: The Secret Sauce for Innovation (longform)

43 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

Did you arrive at the right number?

Please estimate the size of the following items

(absolute, not relative) ANSWER

Number of hairs on the average human head 150,000

Number of known species of shark 370

Average number of deaths recorded each year worldwide from

snake bites125,000

Price paid in 1987 for the painting “Irises” by Vincent Van Gogh $53.9 million

Rank of Dalmatians, in 2007, among most popular dog breeds

registered by the AKC (out of 157 total breeds) 77

Calculated amount in lost sales by Amazon.com per hour of site

downtime (based on 2008 projections)$1.8 million

Page 44: The Secret Sauce for Innovation (longform)

44 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

Group the following items by price into groups representing XS, S, M, L, XL:

– 2010 Audi R8

– Calloway FT-iQ Driver Golf Club

– One share of Berkshire Hathaway stock (NYSE: BRK-A)

– Round trip ticket from LAX to Auckland, NZ

– 3 nights for two (suite) at the Bellagio in Las Vegas, NV

– Trek Madone 6.9 Carbon Fiber Bicycle

– Eric Clapton Signature Stratocaster

– One year’s (2008/09) tuition at Harvard University

– Tiffany Jazz Diamond Platinum Bracelet

– Beneteau (1985) 42’ sailboat

Relative Estimation

Page 45: The Secret Sauce for Innovation (longform)

45 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

– Calloway FT-iQ Driver Golf Club – $299

– 3 nights for two (suite) at the Bellagio in Las Vegas, NV – $1100

– Round trip ticket from LAX to Auckland, NZ – $1,200

– Eric Clapton Signature Stratocaster – $3,078

– Trek Madone 6.9 Carbon Fiber Bicycle - $8,600

– Tiffany Jazz Diamond Platinum Bracelet – $14,000

– One year’s (2008/09) tuition at Harvard university – $32,557

– Beneteau (1985) 42’ Sailboat – $82,000

– One share of Berkshire Hathaway stock – $119,000

– 2010 Audi R8 – $137,000

Relative Estimation

Page 46: The Secret Sauce for Innovation (longform)

46 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

• What is/are the biggest?

• What is/are the smallest?

• Does someone in the group have specialized knowledge about

any item?

• Can we group the remaining items

into relative size groups?

Why Relative Estimation Works

Page 47: The Secret Sauce for Innovation (longform)

47 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

• Humans are terrible at absolute estimation but quite good at

relative estimation

• It is generally faster – “What’s the use in being precise when

you don’t even know what you’re talking about?”

• It gets a team thinking (and talking) as a group, rather than as

individuals (group effort vs. individual person-hours)

• It encourages spending analysis time appropriately

(analyzing and discussing)

Why Relative Estimation Works

Page 48: The Secret Sauce for Innovation (longform)

48 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

• Relative business values associated to individual user stories

• Can be used as a roll up with Epics for program management

Business Weight

business

Page 49: The Secret Sauce for Innovation (longform)

49 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

Create a complete user story that you may help you in doing

your job tomorrow

– Don’t forget to include:

All parts identified

Business Weight Effort Estimation

Acceptance Criteria Themes

Page 50: The Secret Sauce for Innovation (longform)

50 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

Who uses CollabNet?

Page 51: The Secret Sauce for Innovation (longform)

51 Copyright ©2012 CollabNet, Inc. All Rights Reserved.51 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

© 2012 CollabNet, Inc., All rights reserved. CollabNet is a

trademark or registered trademark of CollabNet Inc., in the US

and other countries. All other trademarks, brand names, or

product names belong to their respective holders.

Laszlo Szalvay

VP Worldwide Scrum Business

[email protected]

https://twitter.com/#!/ewok_bbq

+1-971-506-7862

http://www.linkedin.com/in/laszloszalvay