You know the benefits of moving through an Agile transformation but the inevitable question always comes up - Does Agile really improve cost, schedule, productivity, quality and customer satisfaction compared to traditional methods?
Join Scott Blacker, VP of Products at AgileCraft and Phillip Manketo, Senior Agile Consultant at Eliassen Group, for an one-hour session as they share insight into how to justify your Agile investment.
The ROI of Scaling Agile - How to justify the investment in terms your CFO will understand
1. Enterprise Agility
AgileCraft is the world’s first
and only platform for scaling
agile to the enterprise
The ROI of Scaling Agile
How to justify your investment in terms your CFO will understand
March 2017 | Phillip Manketo | Scott Blacker
2. Phillip
Manketo,
MBA,
SPC,
ICP,
CSM
• SENIOR
AGILE
CONSULTANT
with
the
ELIASSEN
GROUP
• Multi-‐faceted
agile
practitioner
with
a
proven
track
record
leveraging
agile
practices
to
consistently
deliver
exceptional
results
on
behalf
of
Fortune
500
clients,
start-‐ups
and
Federal
Government
entities.
• Industry
expertise:
Financial
Services,
Internet,
New
Media,
Cable
&
Telecommunications,
Federal
Government.
• Agile
Community:
AgileDC 2017
(AgileDC.org)
Organizing
Board
Member,
a
role
held
for
the
last
seven
years.
Credentials:
SAFe Program Consultant
Completed Kanban Coursework
IC Agile Certified Practitioner
Certified Scrum Master
MBA, University of Miami, Fl.
Enterprise Agile Engagements:
• Fannie Mae
• Capital One
• United States Postal Service
• Comcast
3. • Agile
Adoption,
Transformation,
and
Scaling
• Agile
Health
Checks
• Agile
Tool
Selection
and
Implementation
Advisory
• Executives,
organizations,
teams,
• Planning,
implementation,
oversight,
reporting
• Engineering
Practices
(XP,
Lean,
DevOps,
etc.
Coaching
• Executives,
Leaders,
Organizations
• Teams,
Product
Owners,
Scrum
Masters
• ICAgile,
SAFe,
DevOps,
and
more
Training
• Agile
Coaches
• SAFe
Release
Train
Engineers
• Scrum
Masters,
Product
Owners
• BA’s,
Developers,
Testers,
Architects,
etc.
On
Demand
Support
“Accelerating
Business
Value
Delivery”
ü True
Agile
practice
-‐ Built,
managed,
and
staffed
with
seasoned
Agile
experts
/thought
leaders
ü Deep
experience
helping
clients
adapt,
transform,
scale
and
succeed
with
Agile
Eliassen
Group
-‐ Agile
Practice
• 26
year
old
privately
held
company
• $240+
Million
in
Revenue
/
Agile
Practice
($45+
million)
• Company
Reach
-‐ 13
US
offices
serving
clients
in
38
states
and
abroad
• Numerous
awards
including
Inc.
Magazine
50
Best
places
to
work
2016
4. Scott
Blacker,
VP
Product
&
Services
Simply
Software
at
Scale
To
Gain
Strategic
Advantage
#1
5. Learning
Objectives
• Understand
the
role
of
the
CFO
• How
to
frame
the
scaled
agile
discussion
in
terms
your
CFO
will
understand
• How
to
measure
value,
progress,
and
ROI
along
the
way
6. What
Keeps
a
CFO
Up
at
Night?
“We’re
not
innovating
fast
enough
to
keep
up
with
the
competition.
We
may
be
left
behind.”
“I
have
no
real
picture
of
execution
risks until
they
are
upon
us”.
“Every
missed
delivery
has
downstream
ramifications
across
my
firm,
to
the
customer
and
all
the
way
to
the
P&L”.
“The
delivery
teams
are
agile,
but
I
don’t
know
what
they’re
really
working
on.
Is
our
strategy
connected
to
execution?”
“Our
customers
complain
about
quality being
poor,
which
not
only
hurts
customer
sat
but
also
hurts
revenue/ROI”.
“I
want
to
optimize
our
portfolio
and
invest
in
the
highest
ROI
opportunities
and drive
competitive
advantage,
but
it’s
hard
to
know
which
projects
we
have
the
capacity
to
deliver”.
7. Role
of
the
CFO
https://www2.deloitte.com/us/en/pages/finance/articles/gx-‐cfo-‐role-‐responsibilities-‐organization-‐steward-‐
operator-‐catalyst-‐strategist.html
Focus
on
improvement
and
optimization
of
cross-‐
functional
business
execution
Ensure
timely/accurate
books,
compliance,
optimized
value
delivery,
risk
management
Run
an
efficient
finance
org
Ensure
proper
long-‐term
investments
and
continuous
innovation
as
part
of
executive
management
team
8. Strategist
|
Catalyst
• Software
has
become
a
strategic
asset
to
virtually
every
large
organization
• Agility
has
replaced
scale
as
key
driver
of
competitive
advantage
• Strategically,
CFOs
understand
that
agility
is
key
to
long-‐term
growth
and
viability
CFO
Wants Scaled
Agile
Enables
• Market
Differentiation
• Innovation
• Competitive
Advantage
• Revenue
&
EBITDA
Growth
• Churn
Reduction
• Faster
macro-‐level
delivery
cycles
measured
in
months,
not
quarters
and
years
• Flexibility
to
adopt
to
market
changes
• Innovative
culture
• Increased
customer
responsiveness
9. Operator
|
Steward
• Agile
(at
the
team
level)
is
inevitable
• Teams
naturally
locally
optimize
• Scaled
agile
practices
link
strategy
to
execution
• CFOs
that
don’t
embrace
scaled
agile
risk
losing
visibility
and
alignment
with
what
the
teams
are
doing
CFO
Wants Scaled
Agile
Enables
• Quality
• Predictability
• Alignment
• Linkages
between
work
items
from
theme
to
story
• Realistic,
flexible
planning
horizons
• Constant
prioritization
at
all
levels
• Risk
Mitigation
10. Agile’s
Key
Business
Value
Drivers
1. Reduce
Cycle
Time
from
Start
to
Finish
2. Focus
on
Minimum
Viable
Increments
(MVI)
3. Reduce
the
number
of
projects
in
flight
at
any
given
time
4. Realize
the
value
of
Alignment
5. Ensure
effective
governance
11. Small,
repeating
cycles
which
can
include
production
deployments
and
/
or
the
ability
to
bundle
(Rack
and
Stack)
“Usable
Product”
into
larger
releases.
While
the
work
/
deliverables
are
planned
out
in
advance,
the
“Magic”
happens
when
the
customer(s)
and
Agile
Delivery
Teams
re-‐confirm
and
deliver
the
work
as
close
to
the
actual
build
cycle
as
possible.
1.
Reduce
Cycle
Time
IT
Organizations
and
Customers
benefit
from
the
ability
to
“Plan,
Do,
Check,
Act,
Repeat
(Learn
and
Improve)
as
they
go.
Let
us
Remember
Why
are
we
Here?
To
deliver
high
quality
and
timely
products
and
services
to
our
customers!
To
make
a
profit
to
fuel
our
company!
Inc.
1
Design
Develo
p
Test
Deploy
Inc.
2
Design
Devel
op
Test
Deplo
y
Inc.
3
Design
Devel
op
Test
Deplo
y
Inc.
x
Design
Devel
op
Test
Deplo
y
Usable
Product Usable
Product
Usable
Product
Usable
Product
Usable
Product
Usable
Product
Usable
Product
Usable
Product
Usable
Product
Usable
Product
$
$ $ $
$ $ $ $ $ $
$ $ $ $ $ $ $ $
12. Small,
repeating
cycles
which
can
include
production
deployments
and
/
or
the
ability
to
bundle
(Rack
and
Stack)
“Usable
Product”
into
larger
releases.
While
the
work
/
deliverables
are
planned
out
in
advance,
the
“Magic”
happens
when
the
customer(s)
and
Agile
Delivery
Teams
re-‐confirm
and
deliver
the
work
as
close
to
the
actual
build
cycle
as
possible.
Inc.
1
Design
Develo
p
Test
Deploy
Inc.
2
Design
Devel
op
Test
Deplo
y
Inc.
3
Design
Devel
op
Test
Deplo
y
Inc.
x
Design
Devel
op
Test
Deplo
y
Reduce
Cycle
Time
Usable
Product Usable
Product
Usable
Product
Usable
Product
Usable
Product
Usable
Product
Usable
Product
Usable
Product
Usable
Product
Usable
Product
IT
Organizations
and
Customers
benefit
from
the
ability
to
“Plan,
Do,
Check,
Act,
Repeat
(Learn
and
Improve)
as
they
go.
Let
us
Remember
Why
are
we
Here?
To
deliver
high
quality
and
timely
products
and
services
to
our
customers!
To
make
a
profit
to
fuel
our
company!
$
$ $ $
$ $ $ $ $ $
$ $ $ $ $ $ $ $
Drive
Predictability
Track
Cumulative
FlowMinimize
Cycle
Time
14. Focus
on
MVI
2 4 61 3 5 7 9 11 138 10 12 14 15 1716 18
months
$0 $300K $600K $900K
MVI
1 MVI
2 MVI
3
60
%
of
value
40
%
of
value
2 4 61 3 5 7 9 11 138 10 12 14 15 1716 18
months
$0 $180K $480K
MVI
1
MVI
2
Track
Value
Delivery Earned
Value
Management
Drillable
Roadmaps
15. 3.
Reduce
Work
in
Progress
2 4 61 3 5 7 9 11 138 10 12 14 15 1716 18
months
Project
F
Project
E
Project
D
Project
B
Project
C
Project
A
16. 2 4 61 3 5 7 9 11 138 10 12 14 15 1716 18
Prioritize
and
Match
Demand
to
Capacity
Project
D
Project
A
$0 $600K $1.2M
Project
F
$2.4M $3.6M
Project
E
Project
C
Project
B
Receive
an
extra
$3.6M
months
17. 2 4 61 3 5 7 9 11 138 10 12 14 15 1716 18
Prioritize
and
Match
Demand
to
Capacity
Project
D
Project
A
$0 $600K $1.2M
Project
F
$2.4M $3.6M
Project
E
Project
C
Project
B
Receive
an
extra
$3.6M
months
Reduce
Work
in
Process Manage
Dependency
Risk
Visualize
WIP
Across
all
Levels
18. 4.
Align
Strategy
to
Execution
• Cost
of
working
on
the
wrong
project
• Cost
of
over-‐investing
in
projects
where
MVP
has
already
been
met
• What
if
20%
of
your
development
effort
isn’t
aligned
to
your
top
corporate
priorities?
• Pet
projects
• Low
priority
technical
debt
• Last
year’s
priorities
19. 4.
Align
Strategy
to
Execution
Align
Strategy
to
ExecutionMatch
Investments
to
Actual
Spend
Validate
Progress
