2 speed IT and how to get there
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The document discusses McKinsey's concept of "two speed IT" and how organizations can implement a two speed approach to IT delivery. It provides an example of a government organization that launched a Mode 2 delivery model to enable faster delivery of IT changes alongside its existing Mode 1 processes. The key aspects of implementing a successful two speed approach discussed are getting senior sponsorship, focusing the initial pilot on the right projects, staffing the new model with experienced people, and establishing processes to incrementally scale the new model while continuing to improve the existing model.
2 speed IT and how to get there
- 1. enfuse group 2 SPEED IT AND HOW TO GET THERE Agile Delivery 2016
- 2. enfuse group Who Am I? HARRY VAZANIAS Delivery & Transformation Director harry.vazanias@enfusegroup.com +44 (0) 7973 824469 linkedin.com/in/harryvazanias @harryvazanias “IT needs to shape up. IT no longer provides a service to the business, IT is the business and vice versa. IT needs to reinvent itself for a customer centric, technology savy world where slow and steady just doesn’t cut it.”
- 3. enfuse group I FEEL THE NEED… THE NEED FOR SPEED!
- 4. enfuse group “Ironically, in a changing world, playing it safe is one of the riskiest things you can do” Reid Hoffman, LinkedIn co-founder
- 5. enfuse group McKinsey’s Two Speed IT… McKinsey’s Two Speed IT…
- 6. enfuse group Systems of Innovation Systems of Record Systems of Differentiation Mode 1 Mode 2 Change Governance + - - +
- 7. enfuse group “The two-speed approach is no silver bullet. It can be complicated to maintain a hybrid architecture… When one retailer adapted its legacy systems to support multichannel delivery, for instance, fast-track software teams bumped up against outdated IT systems built in programming languages their young developers had never used. …many businesses that opt for this approach become so focused on the fast part of the two-speed model they forget to consider the changing demands of the foundational systems—and that oversight can undermine the success of the project.” McKinsey & Company
- 8. enfuse group 2 SPEED IT / BIMODAL = ORGANISATIONAL CHANGE
- 9. enfuse group … aka ‘IT Crowd’ and ‘Iron Man’… Two Speed IT
- 10. enfuse group … Samurais and Ninjas Gartner’s Bimodal IT
- 11. enfuse group EXAMPLE GOVERNMENT ORG Need for a different delivery approach for IT Fast moving, challenging landscape… High levels of tech fuelled disruption More demand than ever for IT related change Mature, ITIL and Prince 2 based IT function seen as slow and expensive Business try to avoid IT when they want to make things happen fast
- 12. enfuse group EXAMPLE GOVERNMENT ORG Mode 2 was born In late 2015 a decision to pilot a 2 speed IT delivery model was made Need to be able to tailor delivery approach to business needs, so new delivery mode required Fresh, Agile based approach seen as opportunity to drive down delivery costs Desire to be able to deliver faster and earlier by applying a delivery model better suited to the circumstances
- 13. enfuse group EXAMPLE GOVERNMENT ORG Approach to launching mode 2 Today •No formal Mode 2 – CDM closest but limited to Agile software development FY 16/17 •Pilot Mode 2 for select initiatives •Refine Mode 2 for future rollout next year FY 17/18 •Scale out use of Mode 2 •Widen scope to include further Proposition and Run activities FY 18/19+ •Further broaden scope of Mode 2 engagements, looking at options such as Enterprise DevOps and the scoping of the pipeline Build Pipeline Scope Initiative Mobilise Build & Deploy Run and Maintain Agile Dev (Independent of Mode 2) Mode 2 FY16/17 Mode 2 FY17/18 Mode 2 FY18/19 Increasing%ofChangePortfolio
- 14. enfuse group Mode 1 Tightly integrated systems Business delivered to (i.e. they are the customer) Deliverables against timescales Scope is fixed Project or Programme Mode 2 Loosely coupled / island systems Business heavily involved Outcomes and value delivered Scope frequently changing Portfolio of demand Can’t fail on release Fix forward acceptable End state can be well defined upfront End state difficult to define upfront in detail Inception through to hand off to BAU support Full value stream* Deliver change in a linear fashion, typically with few and large releases Deliver change continuously in frequent and small increments Funding allocated for delivery of target outputs Funding allocated for period of time Business or technology led change Technology led change Release Reliability Business Involvement Ideal Architecture Delivery Focus Scope Ideal Type of Demand End state Breadth of value stream What is it Funding Structure Technology Change EXAMPLE GOVERNMENT ORG Criteria for selecting Mode 1 and Mode 2
- 15. enfuse group 2 SPEED IT Making the pilot a success 1. Get the right senior sponsorship – business and IT 2. Do not do Mode 1 to Mode 2 3. Acknowledge that Agile is a big part of this 4. Invest in making this an exemplar pilot with the right value stream/portfolio 5. Staff with Mode 2 people – go getters – and train them 6. No big song and dance about Mode 2 – just do it 7. Embed coach and other experienced Mode 2 people into the first few initiatives 8. Establish Working Group to get buy-in, engagement and ownership across the organisation 9. Get your pilot project(s) right – fail fast is part of Mode 2, but it helps if you succeed first! 10. Don’t forget about Mode 1 – roll out improvements to Mode 1 as well
- 16. enfuse group End-to-End Value Stream Agile Portfolio & Delivery Approach Agile Architecture Delegated Authority Business Partnership DevOps People & Culture Focus on Value Different Risk Profile KEY FEATURES OF MODE 2
- 17. enfuse group Question… is this not what we want for everything? McKinsey & Company THE TWO SPEEDS NEED TO COEXIST
- 18. enfuse group KEY STEPS 1. Be clear on why you are doing 2 speed and what this means 2. Agree a transformation roadmap with milestones 3. Recognise potential blockers – people, process, technology, security 4. Pilot Mode 2 in a business friendly area 5. Build Mode 2 support infrastructure 6. Incrementally scale out the use of Mode 2 BUT… DO NOT MODE 1 YOUR MODE 2 ROLLOUT
- 19. enfuse group FINAL THOUGHTS FOR THE DAY Is 2 Speed IT… a) The end goal for IT? b) A stepping stone to a multi-modal, fast IT world? c) Completely the wrong thing to do – should go all out?