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Confessions of a Coach:
Agile Adoption War Stories
                  Marko Taipale
             twitter: @markotaipale
              Potsdam, Berlin 2013
Why?
     Sharing is Caring!

You guys are smart - do not
    repeat my mistakes :)
3Stories
Livin’ on a Prayer
Background: Subcontractor, 3 teams, customer
already “agile”


Assignment: “Help us to deliver in Agile way!”




    “We need expertise to deliver this on time”
I had to figure out
  where they are
600 use cases
600 use cases
6 cases / month
600 use cases
 6 cases / month
100 months of work
600 use cases
     6 cases / month
    100 months of work
400% improvement, 600 / 24 = 25 months
600 use cases
     6 cases / month
    100 months of work
400% improvement, 600 / 24 = 25 months
   They got 6 months
What is the purpose of
    this system?


 What would you do?
Customer went crazy...
and then Subcontractor
     went to denial

 “We just need stronger management
         to push this trough”
I got repositioned
Result: Subcontractor told that they are not
going to renegotiate the deal


Lesson: Make them to study the situation and
have no agenda
The Goal
Background: 500+ employee software
company, some Scrum teams


Assignment: Improve our time-to-market




            “We are way too slow!”
Value Stream
Resource     Dev &
Order   Prioritise
                     allocation    Test
Resource          Dev &
Order        Prioritise
                                 allocation         Test
        1w      1d        2m       1d         1w    6m

                               8 months
Active               Waiting
        orders            for resources                             Released


        420                   160                                      5

                                          Resource          Dev &
Order            Prioritise
                                          allocation         Test
        1w          1d        2m            1d         1w    6m

                                    8 months
I took a look at how
they feed the system
Portfolio
DevDir




 Goal: profit, cost-
  effective, fast
I.          Regulations
II.           Biz dev
III.       Customer reqs
              Portfolio
DevDir



       What is the priority?

        PO     PO         PO


  Goal: profit, cost-
   effective, fast
I.          Regulations
II.           Biz dev                Bonus!
III.       Customer reqs
              Portfolio
                                    Sales Dir
DevDir


                               How do I get bonus?!
       What is the priority?

        PO     PO         PO


  Goal: profit, cost-
                                 Goal: Growth!
   effective, fast
I.          Regulations
II.           Biz dev                  Bonus!
III.       Customer reqs
              Portfolio
                                     Sales Dir
DevDir


                               How do I get bonus?!
       What is the priority?    Contract


                                           Sanction
        PO     PO         PO
                                            clause

  Goal: profit, cost-
                                 Goal: Growth!
   effective, fast
I.          Regulations
II.           Biz dev                    Bonus!
III.       Customer reqs
              Portfolio
                                       Sales Dir
DevDir


                                 How do I get bonus?!
       What is the priority?      Contract


                                       Sanction
                               HIGH RISK!
        PO     PO         PO
                                        clause

  Goal: profit, cost-
                                   Goal: Growth!
   effective, fast
What is the purpose of
    this system?


 What would you do?
Connect Development
 and Sales Directors

   “We shall take care of this!”
Result: a new way to control resource
allocation (?!)


Lesson: Misaligned goals with incentives destroy
the system performance.

There are no “evil” people rather systems that
reward counter-productive behavior.
The Whole
Background: International gaming company, TO
100 Meur, 400+ people


Assignment: “Scale up our product
development to serve the needs of the business.”



  “Our product development is the bottleneck”
After 2 years
    10+ Scrum teams,
6 week company wide sprints

          We’re done, right?
Business Development:


“I do not know what have you done, but we have not
                 improved a bit...”
Development

 2m (6m)
Development   Deployment

 2m (6m)        3w
Internal         Customer
Idea                                          Resourcing
            approval          approval
              2h                2h                1d




  Design        Development          Deployment

       1m          2m (6m)               3w
35
                 Internal            Customer
Idea                                                  Resourcing
                 approval             approval
            2d                1m                 6m
                      2h                2h                1d

                                   1w

                 6m                     6m
  Design               Development           Deployment

       1m        15        2m (6m)      12       3w
                                                                3m
                                                               24m
35
                 Internal            Customer
Idea                                                  Resourcing
                 approval             approval
            2d                1m                 6m
                      2h                2h                1d

                                   1w
                       Scrum!
                 6m                     6m
  Design               Development           Deployment

       1m        15        2m (6m)      12       3w
                                                                3m
                                                               24m
35
                 Internal            Customer
Idea                                                  Resourcing
                 approval             approval
            2d                1m                 6m
                      2h                2h                1d

                                   1w
                       Scrum!
                 6m                     6m
  Design               Development           Deployment

       1m        15        2m (6m)      12       3w
                                                                3m
                                                               24m
Thanks to Henrik Kniberg taking the shot! :)
What is the purpose of
    this system?


 What would you do?
Development Director


 “You shall not show this to anyone...”



                Why?
After some drastic changes...




          0-3kk
Ideas..           Development

           3-6       3m
Result: Time-to-Market 24 months to 3 months



Lesson:
• Beware suboptimization -> Optimize the whole
• Showing it does not mean fixing it
• Find a way to get commitment
What can we learn
    from this?
Thinking

  System

Performance
Thinking


Analysis     System      Change

           Performance
Purpose

 Metrics

Permission

 Context

 Change
Clarify the purpose of the company (from
 Purpose               customer point of view)

 Metrics     Measure how the system fulfills it’s purpose

             Get the permission (and commitment) for
Permission                    change

 Context       Understand the boundaries and SWOT

             Change the system, only implement changes
 Change           that are relevant to the purpose
Purpose

 Metrics

Permission
             Coach the management to do this

 Context

 Change
Purpose

 Metrics

Permission
             PDCA cycles
 Context

 Change
It is not about agile or lean...
                  ... nor transformation
It is not about agile or lean...
                  ... nor transformation



  It is about the system...
         ... and fulfilling the purpose of the system
It is not about agile or lean...
                  ... nor transformation



  It is about the system...
         ... and fulfilling the purpose of the system




 You are not going to change a thing...
                 ... but you can initiate the change
Marko Taipale
•   Principal consultant with agile/lean mindset, CTO, Advisor

•   15+ years of software development

•   Capabilities to deliver products from concept to cash

•   Tens of public speaking appearances
International online gaming company (TO 100+ Meur) improved time-to-market from 24
months to 3 months

Energy company purchased process control system and got the delivery 4 times faster than
expected.The system secured the business for next 2 years.

Software company validated new business model for new product in 2 months.

Software product company saved 1,3 Meur / year in management and administration.
Please	
  evaluate	
  my	
  presenta/on	
  by	
  using	
  
the	
  evalua/on	
  booklets	
  which	
  you	
  can	
  
find	
  in	
  your	
  conference	
  bag.
Thank	
  you!

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Confessions of a Coach

  • 1. Confessions of a Coach: Agile Adoption War Stories Marko Taipale twitter: @markotaipale Potsdam, Berlin 2013
  • 2. Why? Sharing is Caring! You guys are smart - do not repeat my mistakes :)
  • 4. Livin’ on a Prayer
  • 5. Background: Subcontractor, 3 teams, customer already “agile” Assignment: “Help us to deliver in Agile way!” “We need expertise to deliver this on time”
  • 6. I had to figure out where they are
  • 8. 600 use cases 6 cases / month
  • 9. 600 use cases 6 cases / month 100 months of work
  • 10. 600 use cases 6 cases / month 100 months of work 400% improvement, 600 / 24 = 25 months
  • 11. 600 use cases 6 cases / month 100 months of work 400% improvement, 600 / 24 = 25 months They got 6 months
  • 12. What is the purpose of this system? What would you do?
  • 13. Customer went crazy... and then Subcontractor went to denial “We just need stronger management to push this trough”
  • 15. Result: Subcontractor told that they are not going to renegotiate the deal Lesson: Make them to study the situation and have no agenda
  • 17. Background: 500+ employee software company, some Scrum teams Assignment: Improve our time-to-market “We are way too slow!”
  • 19. Resource Dev & Order Prioritise allocation Test
  • 20. Resource Dev & Order Prioritise allocation Test 1w 1d 2m 1d 1w 6m 8 months
  • 21. Active Waiting orders for resources Released 420 160 5 Resource Dev & Order Prioritise allocation Test 1w 1d 2m 1d 1w 6m 8 months
  • 22. I took a look at how they feed the system
  • 23. Portfolio DevDir Goal: profit, cost- effective, fast
  • 24. I. Regulations II. Biz dev III. Customer reqs Portfolio DevDir What is the priority? PO PO PO Goal: profit, cost- effective, fast
  • 25. I. Regulations II. Biz dev Bonus! III. Customer reqs Portfolio Sales Dir DevDir How do I get bonus?! What is the priority? PO PO PO Goal: profit, cost- Goal: Growth! effective, fast
  • 26. I. Regulations II. Biz dev Bonus! III. Customer reqs Portfolio Sales Dir DevDir How do I get bonus?! What is the priority? Contract Sanction PO PO PO clause Goal: profit, cost- Goal: Growth! effective, fast
  • 27. I. Regulations II. Biz dev Bonus! III. Customer reqs Portfolio Sales Dir DevDir How do I get bonus?! What is the priority? Contract Sanction HIGH RISK! PO PO PO clause Goal: profit, cost- Goal: Growth! effective, fast
  • 28. What is the purpose of this system? What would you do?
  • 29. Connect Development and Sales Directors “We shall take care of this!”
  • 30. Result: a new way to control resource allocation (?!) Lesson: Misaligned goals with incentives destroy the system performance. There are no “evil” people rather systems that reward counter-productive behavior.
  • 32. Background: International gaming company, TO 100 Meur, 400+ people Assignment: “Scale up our product development to serve the needs of the business.” “Our product development is the bottleneck”
  • 33. After 2 years 10+ Scrum teams, 6 week company wide sprints We’re done, right?
  • 34. Business Development: “I do not know what have you done, but we have not improved a bit...”
  • 36. Development Deployment 2m (6m) 3w
  • 37. Internal Customer Idea Resourcing approval approval 2h 2h 1d Design Development Deployment 1m 2m (6m) 3w
  • 38. 35 Internal Customer Idea Resourcing approval approval 2d 1m 6m 2h 2h 1d 1w 6m 6m Design Development Deployment 1m 15 2m (6m) 12 3w 3m 24m
  • 39. 35 Internal Customer Idea Resourcing approval approval 2d 1m 6m 2h 2h 1d 1w Scrum! 6m 6m Design Development Deployment 1m 15 2m (6m) 12 3w 3m 24m
  • 40. 35 Internal Customer Idea Resourcing approval approval 2d 1m 6m 2h 2h 1d 1w Scrum! 6m 6m Design Development Deployment 1m 15 2m (6m) 12 3w 3m 24m
  • 41. Thanks to Henrik Kniberg taking the shot! :)
  • 42. What is the purpose of this system? What would you do?
  • 43. Development Director “You shall not show this to anyone...” Why?
  • 44. After some drastic changes... 0-3kk Ideas.. Development 3-6 3m
  • 45. Result: Time-to-Market 24 months to 3 months Lesson: • Beware suboptimization -> Optimize the whole • Showing it does not mean fixing it • Find a way to get commitment
  • 46. What can we learn from this?
  • 48. Thinking Analysis System Change Performance
  • 50. Clarify the purpose of the company (from Purpose customer point of view) Metrics Measure how the system fulfills it’s purpose Get the permission (and commitment) for Permission change Context Understand the boundaries and SWOT Change the system, only implement changes Change that are relevant to the purpose
  • 51. Purpose Metrics Permission Coach the management to do this Context Change
  • 52. Purpose Metrics Permission PDCA cycles Context Change
  • 53. It is not about agile or lean... ... nor transformation
  • 54. It is not about agile or lean... ... nor transformation It is about the system... ... and fulfilling the purpose of the system
  • 55. It is not about agile or lean... ... nor transformation It is about the system... ... and fulfilling the purpose of the system You are not going to change a thing... ... but you can initiate the change
  • 56. Marko Taipale • Principal consultant with agile/lean mindset, CTO, Advisor • 15+ years of software development • Capabilities to deliver products from concept to cash • Tens of public speaking appearances International online gaming company (TO 100+ Meur) improved time-to-market from 24 months to 3 months Energy company purchased process control system and got the delivery 4 times faster than expected.The system secured the business for next 2 years. Software company validated new business model for new product in 2 months. Software product company saved 1,3 Meur / year in management and administration.
  • 57. Please  evaluate  my  presenta/on  by  using   the  evalua/on  booklets  which  you  can   find  in  your  conference  bag. Thank  you!