Aln alu-presentation-07-feb-2013-final

Organizational change Management
Agile Transformation Journey

Murthy Bhamidi
07 Feb 2013

murthy.bhamidi@alcatel-lucent.com

Agenda

 The Context - People, Company and Market space

 Why Change - The Need for transformation

 How – The Transformation Journey

 Challenges faced

 What Went Well

 Lessons Learnt

 Q&A

2 ALU Agile transformation Journey - Feb 2013 All Rights Reserved © Alcatel-Lucent 2011

ALCATEL-LUCENT

REALIZING THE POTENTIAL OF A CONNECTED WORLD

“ Broadband everywhere is speeding up life and
business. It takes no time to go from having a
new idea, to touching peoples lives. We must
“
”
innovate – and help our customers innovate – at
the speed of ideas.
Ben Verwaayen
Chief Executive Officer

• Headquarters: Paris, France • R&D Budget: €2.5 billion
FAST • Annual Revenues: approx. €15.3 billion • Active Patents Held: 27,900+
FACTS • Employees: 70,000 + • Nobel Prizes Won: 7
• Employee nationalities: 100+ • Latest wireless innovation :
• Presence in 130 countries - Light Radio


We are …

•We are the Network
•behind your Smart Phone/Device

The Market Place


The Environment

Attribution: Raj Mudhar


Wakeup call
 2009 Financial Results

 Wireless Market conditions
– European financial crisis
- Pockets of not so profitable businesses
- Technology Shifts
 Customer feedback – Content, quality and timeliness concerns

 Internal challenges
 Introspection – Audits, surveys, brainstorming sessions, leadership workshops

Urgent need for an overall Transformation

 Around the same time a bottom up agile movement has taken strong roots in ALU
 Agile / Lean workshops for all levels of ALU


Transformation Goals
Energize and Empower the Team

Improve Customer Intimacy

Quickly Adapt to business environment

Execute Flawlessly

Seeking Radical improvement in

 Business value delivered to customers

 On Time Delivery

 E2E Integration cycle time

 Overall Quality


Agile Transformation Journey

 First things First - Energizing & Empowering teams

 Bringing engineers closer to customer

 Organizational change from Traditional to Agile structures

 Focused Initiatives to achieve transformation goals


Energize Teams

 Members of a highly successful agile organization/team have
- Common vision
- Shared Passion

- Shared conviction in the creation of a compelling value for mankind

- Sense of belongingness


Clarity of purpose - Vision - Value Articulation (1 of 3)

1929: MK Gandhi’s Announcement
Design Competition

Rs. 1 Lakh prize for an improved Charkha
(Spinning Wheel) design

• Light-weight, Portable charkha for making thread & Cloth
• Easy to use, able to operate using either hand or one’s leg
• A lady shall be able to work with it for 8 hours at a stretch without getting tired.
• Should produce 12 – 20 numbers of 16000 feet yarn bundles in 8 hour run.
• Should cost < Rs. 150 / machine to be produced in India
• Machine should last at least 20 years
• Annual maintenance cost should be less than 5% of the machine cost.



People’s Car - Tata Nano

• Safe, affordable, all-weather form of transport aimed at 65 M scooter riders in India
• Follow all Regulatory requirements
• Be Low priced (~ Rs. 1 Lakh)
• Good acceleration capacity (0 – 60 mph in 21 sec)
• Highly fuel efficient (~ 60 mpg)
• 660 cc, 33 bhp engine



Alcatel Lucent’s lightRadio

Energized LR Cube scrum team created a
working prototype of stadium cube in 64 days

• Tower-less Base Station – Equipment Reduction on Site
• Lower radiation emission significantly
• Upto 50% TCO (Total Cost of Ownership) savings for Service Providers
• 40% Improvement in Reliability
• 50+% Performance Improvement – Throughput and coverage


Customer Intimacy
C-Minus Test: How far are you from Your customers
 Each member of the team should know the WHY of What we do.

 appropriate access (direct/indirect) to customers will enable

 better Understanding of challenges faced by our customers
 Quick and apt response to changing customer needs
 Elimination of waste – Unused features

Challenge:

 India R&D teams physically too far from ALU customers

Initiatives :
 ORGANIZATION structure alignment with customer deliverable programs
 Co-creation model with customers
 Product Owner - Representing the customer

Organizational transformation



Transformation – New Working model – Scrum

 Functional teams reorganized in to Customer deliverable Program teams
 Transport Program, Smart Phone program, …
 Within Each Program cross functional scrum teams formed with necessary E2E
competency

 Clear Vision for each program to develop and support pertinent features
 Strong focus on relevant cross functional competency building
 Strong emphasis on DOD
 Frequent Backlog refinement
 Retrospectives and continuous improvement
 Scaling:
 Evolved Scrum of Scrum model to address delivery of large feature requiring
multiple globally distributed scrum teams
 Challenges:
 Coaching needs
 CI challenges impacting the ability of scrum teams to meet DOD criteria


Transformation – Continuous Integration

 Good success in Build time reduction
 Base station build duration reduced from 3 days to < 2 hours
 RNC build duration reduced from 2+ hours to 45 minutes
 Build More Frequently
 Base Station: once a week to once a day
 RNC : once a week to three builds a day
 Significant improvement in test automation
 Unit, Nodal and System level
 Challenges
 Large number of test configurations – High technical debt
 Resource contention between new Content development vs. Technical debt reduction


Transformation - Servant Leadership

Servant Leadership:
A must to build high performing, Agile organization
Leadership Agility:
Ability to lead effectively under conditions of rapid change and mounting complexity
Challenges identified
 Frequent strategy change and re-prioritization
 Complex organization structures
 Impediment removal not fast enough
 Inability to keep long lived scrum teams
 In adequate budgetary support for automation, CI etc.

Comprehensive SL workshops for ALU management team across the globe
 Ensure that Management behavior is fully consistent with agile principles


Agile Transformation Initiatives

Frequent Post DR4
Releases Enables
Allows
Continuous Test
Agile / Continuous
Integration
Produces
Customer
Continuous
Refactoring Involvement
Integration Simple
Design
Triggers
Allows Requires Enables
Enables TDD
Load Build /
SDE Adaptive Planning
Methods
Automated Empowered Collective
Testing Teams Ownership
Application Lifecycle
People / Skill Allows Management
Automation Development Requires
Allows
Minimal Requirements
Lean Documentation Management / Systems
Engineering

To be Agile, we need to improve on all interconnected best practices
Attribution: Ed Illidge, Francois Morin


Agile Transformation – Frequent Releases

Why Frequent releases ?
 To Deliver Value to customer quickly

What is stopping realization of Value quickly ?
 Customer confidence on predictability and stability of new increments
 New release rollout plans of customer

Measures to enhance customer trust and confidence
 Established comprehensive Release cadence to ensure
 Timely delivery of anchor features
 Predictable stability / quality
 Sharing the progress of our transformation activities with our customers


Transformation – Adaptive Planning

 1 .. N prioritized feature list across all related programs
 High level product backlog refinement – Involving all stake holders (POs etc.)
Strategy Challenges:
 Hunting New opportunities vs. Harvesting existing accounts
 Serving every possible customer vs. focusing on top few (profit generating)
customers
 Creating next big killer product vs. perfecting current product
Rolled out Several initiatives to ensure that
 Planning is a continuous and inclusive process, and not a top-down annual event
 Company strategy is assimilated by all members in a timely fashion
 Customer/business view is understood by all members in a timely fashion
 Employees are ever ready for change in short notice


Transformation - Refactoring

 Technical Debt
 The Need and the Value of Refactoring well understood
 Significant gains made through selective and targeted Refactoring activities
 Faster response times for issue resolution
 Code complexity reduction. Simplicity of Design

Challenges
 product/technology life cycle – has bearing on Investments we can make in technical debt
reduction / refactoring
 Risk appetite also determines how much of a refactoring is absorbed in to a release.
 Enormous non-functional testing needs
 Not-so-well understood complex field scenarios,
 Huge legacy code base
Business value assessment & Risk assessment must for refactoring activities


Challenges Faced and addressed

• Organizational challenges

• Business Challenges

• Cultural challenges

• Engineering / technical challenges


Challenges faced and addressed (1 of 2)

 Clarity of Roles
 who is accountable for business results
 Who is responsible for business deliverables
 Who has the authority to make specific decisions
 Customer emergencies (due to technical debt) impacting future delivery plans
 Ensuring front end processes and stake holders are also agile
 Customer facing PLM (Product Line Mngt) to play the role of Product owner
 Agile light weight process to address Release/Project management needs
 Commitment process - frequent backlog refinement
 Interfaces with non-agile parts of project and Non-agile support functions
 Maintaining long standing scrum teams
 How to engage middle management in transformation and agile?
- Coaching, Impediment removal, servant leadership, PO
- Value addition, Get out of the way

25 ALU Agile transformation Journey - Feb 2013
| 9370 RNC Capacity | June 2009 All Rights Reserved © Alcatel-Lucent 2011

Challenges faced and addressed (2 of 2)
 What does it take to make one line code change and release it to customers?
 Feature interactions should not fall through cracks – E2E picture
 Cross functional scrum teams – How much Cross functional ? Technology, Nodal,
Functional Area level ?
 How to address Technical Debt – complexity, distributed development, resource
constraints
 Scaling issues for Large complex product – structures beyond single scrum team
 Systems to plough back lessons learnt from field

 Career paths for engineers - Introduction of technical ladder
 Employee Morale
 Top-down push of agile, vs. facilitating self-realization regarding the merits of agile

 Open and transparent Communication


What Went Well
 Agile showed positive impact – On flexibility, cost of change
 Very high focus on quality - lower bug counts
 Customer demos in short notice and incorporate feedback
 Early E2E testing of Features where we could mobilize System test folks into
scrum teams
 Early detection of unexpected behavior with adequate time to correct
 KPI issues – Stability, Throughput, Resource exhaustion etc.
 Base Code Quality improvements
 CODE COMPLEXITY reduction,
 Code Hot spot removal through refactoring
 Introduction of adversarial testing, field scenario play out testing etc.
 Response time improved for customer issues
 Team driving towards cross functional skills development

27 ALU Agile transformation Journey - Feb 2013
| 9370 RNC Capacity | June 2009 All Rights Reserved © Alcatel-Lucent 2011

Lessons Learnt (1 of 2)

 Agile Transformation - It takes time to show the impact
 Idea - belief - habit - way of life
 Customer Visible Improvement lags behind others

 Things get worse before they get better
 Agile exposes weaknesses in our system early
 Take the Risk, Fail Fast, correct quickly and incrementally
 Good Continuous Integration system is key to success


Lessons Learnt (2 of 2)
 Shift the focus from efficiency/productivity improvement to Value Creation

 Institutionalize Continuous learning and improvement

 Do not compromise on agile principles to suit your curent way of working.
Adapt your business & way of working to be Agile, in line with agile principles.

 Top-Down vs. Bottom up approach of growing scrum teams
 Ensure adequate support systems for large scale adoption

 Make planning a continuous and inclusive process, not a top-down annual event


Who are we?

Internal Proclamation from one of the
highly successful ALU Teams

•30
All Rights Reserved © Alcatel-Lucent 2011
•COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
ALCATEL-LUCENT — INTERNAL PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION

What are we?

No-nonsense engineers

Energetic, passionate and committed team

Hungry to win – create impact

Culture of responsibility – own it, drive it

Quality and Customer focused – do it right first time

Dare to be different – question the status quo when needed

Direct, responsive

Driven by a keen sense of urgency

Competitive, winning mindset

Fun

Attribution: Mahesh Srinivas
•31

What are we NOT

Diplomatic

Hierarchical/level conscious

Bureaucratic

Complacent

Afraid to question/challenge

Risk averse

9-5 grunts

•32

The Future

We are at a unique point in time and space

 The opportunity exists…

 We have the right technology…

 We have the capability…

 We are hungry to compete and win…

 We have self-belief…

We are looking for engineers who love challenges, and an opportunity to
make a difference

•33

Acknowledgements
Thanks to Raj Mudhar, Ed Illidge, Allan Giraud (from ALU) for their whole hearted help
in arriving at the content for this preparation

Thanks to Suresh B and Rajesh Sarma for helping me in the preparation of this package

Thanks to Sundar S, Pavan K, Gopal N, Vikas D, Gopi C for their valuable inputs

Special thanks to Mahesh Srinivas


Organizational Change Mgmt to Agile - Introduction

Few years back our Business Unit embarked on a large scale
transformation to respond to highly competitive telecom landscape.
Agile has been one of the cornerstone pillars of this transformation
endeavor. In this talk Murthy will make an attempt to narrate the agile
journey highlighting the challenges faced especially in the areas of
organization structures, leadership, attitudes, and other people
aspects. Identifying agility gaps and ensuring delivery and
transformation at the same time is extremely challenging and brings a
lot of hardships. This talk will give a peek in to some of the real issues
and lessons learnt while embarking on large scale agile adoption in a
large distributed multinational R&D organization creating complex
mission critical products


About the speaker

Murthy is passionate about the application of Agile and Lean
principles to empower and unleash the true potential of
engineers, and to meet stringent customer needs faster and
better. Murthy is a certified Scrum Master and certified Product
owner. He has been actively driving large scale adoption of
Scrum, Kanban and key agile engineering practices at ALU.
Murthy is an active member of engineering proficiency council
under NASSCOM working on bridging the gap between industry
needs and the engineering talent pool coming out of Indian
engineering colleges. Murthy is also a member of Telecom
Special Interest Group under NASSCOM


Bell Labs Innovations - Changing the World

31,000+ patents, 2+ U.S. patents granted each workday

1876 1939 1947 1954 1958 1962 1969
The Telephone 1st Digital Computer The Transistor The Solar Cell The Laser The Telstar Satellite Unix

1988 1989 1995 1996 1997 1997 1997
Digital HDTV Data Mining & SCAPEL Electron World’s Smallest 2nd Gen ATM High-res Map
Cellular Visualization Beam Lithography Transistor Switching Chips of Dark Matter

N M 2003
Antennas2 Antennas E2E Network Security
1998 1999 2000 Reference Architecture
1998 1998 2002
Allwave™ All Optical 3.28Tbps BLAST (MIMO)
Foundation of new ITU
Wide Bandwidth 100% Plastic X.805 specification
Bandwidth Router Transmission Hi-Capacity RF
Optical Amp Transistor
Capacity

11 Nobel Laureates, 9 US National Medals of Science, 8 US National Medals of Technology, 19 IEEE Medals of Honor

•39

Aln alu-presentation-07-feb-2013-final

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