![5/23/2018
Copyright 2015, Senex Rex LLC 14
http://senexrex.com/blog
Dan Greening
+1(415)754-8311
dan@senexrex.com
Agile for Everything
Services:
• Consultation
• Coaching
• Training
1
Scrum/XP: Preventing Disasters
Standish Chaos Report, 2011Charette, “Why software fails,” 2005
Year Company Description Failure cost Total for year
2005 Hudson Bay Co. [Canada] Problems with inventory system contribute to $33.3 million* loss. $33,300,000
UK Inland Revenue Software errors contribute to $3.45 billion* tax-credit overpayment. $3,450,000,000 $3,483,300,000
2004 Avis Europe PLC [UK] Enterprise resource planning (ERP) system canceled a er $54.5 million† is spent. $54,500,000
Ford Motor Co. Purchasing system abandoned after deployment costing approximately $400
million.
$400,000,000
J Sainsbury PLC [UK] Supply-chain management system abandoned after deployment costing $527
million.†
$527,000,000
Hewlett-Packard Co. Problems with ERP system contribute to $160 million loss. $160,000,000
AT&T Wireless Customer relations management (CRM) upgrade problems lead to revenue loss of
$100 million.
$100,000,000 $1,241,500,000
2002 McDonald’s Corp. The Innovate information-purchasing system canceled after $170 million is spent. $170,000,000
Sydney Water Corp. [Australia] Billing system canceled a er $33.2 million† is spent. $33,200,000
CIGNA Corp. Problems with CRM system contribute to $445 million loss. $445,000,000 $648,200,000
2001 Nike Inc. Problems with supply-chain management system contribute to $100 million loss. $100,000,000
Kmart Corp. Supply-chain management system canceled after $130 million is spent. $130,000,000 $230,000,000
2000 Washington, D.C. City payroll system abandoned after deployment costing $25 million. $25,000,000 $25,000,000
1999 United Way Administrative processing system canceled after $12 million is spent. $12,000,000
State of Mississippi Tax system canceled after $11.2 million is spent; state receives $185 million
damages.
$196,200,000
Hershey Foods Corp. Problems with ERP system contribute to $151 million loss. $151,000,000 $359,200,000
1998 Snap-on Inc. Problems with order-entry system contribute to revenue loss of $50 million. $50,000,000 $50,000,000
1997 U.S. Internal Revenue Service Tax modernization effort canceled after $4 billion is spent. $4,000,000,000
State of Washington Department of Motor Vehicle (DMV) system canceled after $40 million is spent. $40,000,000
Oxford Health Plans Inc. Billing and claims system problems contribute to quarterly loss; stock plummets,
leading to $3.4 billion loss in corporate value.
$3,400,000,000 $7,440,000,000
1996 Arianespace [France] Software specification and design errors cause $350 million Ariane 5 rocket to
explode.
$350,000,000
FoxMeyer Drug Co. $40 million ERP system abandoned after deployment, forcing company into
bankruptcy.
$40,000,000 $390,000,000
1995 Toronto Stock Exchange [Canada] Electronic trading system canceled after $25.5 million** is spent. $25,500,000 $25,500,000
1994 U.S. Federal Aviation AdministrationAdvanced AutomationSystem canceled after $2.6 billion is spent. $2,600,000,000
State of California DMV system canceled after $44 million is spent. $44,000,000
Chemical Bank Software error causes a total of $15 million to be deducted from 100 000 customer
accounts.
$15,000,000 $2,659,000,000
1993 London Stock Exchange [UK] Taurus stock settlement system canceled after $600 million** is spent. $600,000,000
Allstate Insurance Co. Office automation system abandoned after deployment, costing $130 million. $130,000,000
London Ambulance Service [UK] Dispatch system canceled in 1990 at $11.25 million**; second attempt abandoned
after deployment, costing $15 million.**
$26,250,000
Greyhound Lines Inc. Bus reservation system crashes repeatedly upon introduction, contributing to
revenue loss of $61 million.
$61,000,000 $817,250,000
1992 Budget Rent-A-Car, Hilton Hotels,
Marriott International, and AMR
[American Airlines]
Travel reservation system canceled after $165 million is spent. $165,000,000 $165,000,000
34
2005UK Inland Revenue
Software errors cause tax-credit
overpayment.
$3,450,000,000
2004J Sainsbury PLC
Supply-chain management system
abandoned after deployment.
$527,000,000
2002CIGNA Corp.
Problems with CRM system contribute
to $445 million loss.
$445,000,000
2001Kmart Corp.
Supply-chain management system
canceled after $130 million is spent.
$130,000,000
2000Washington, D.C.
City payroll system abandoned after
deployment.
$25,000,000
1999State of Mississippi
Tax system canceled after $11.2 million
spent, and $185 million damages.
$196,200,000](https://image.slidesharecdn.com/agileforeverythingdangreening-180601004319/85/Agile-for-everything-dan-greening-14-320.jpg)
Agile for everything dan greening
- 1. 5/23/2018 Copyright 2015, Senex Rex LLC 1 http://senexrex.com info@senexrex.com @senexrex Agile for Everything Agile for Your Thing Dan Greening dan@senexrex.com Copyright 2018, Senex Rex LLC. This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License. Dan Greening, PhD • Managing Director: Senex Rex • Certified Enterprise Coach (CEC) • Head coach: Skype, Citrix Online Sidekick: Srinivas Chillara • India's first independent Scrum Coach. • Programmer Management Consultant • CSM, ex-CSP and non-CST • Builds high-performing teams Your Workshop Hosts
- 2. 5/23/2018 Copyright 2015, Senex Rex LLC 2 • Agile patterns: What are they? • Why did agile methodologies arise? • Workshop: • Identify your thing • Use agile for your thing Agenda • Establish a driving purpose • Measure leading indicators • Limit work in progress • Experiment to improve Patterns in Every Agile Framework
- 3. 5/23/2018 Copyright 2015, Senex Rex LLC 3 General Motors • Autonomous plants • Forecast and inventory • Strong contracts • Defined roles • Class society Dominant then bankrupt 2009 Lean Manufacturing: GM vs Toyota Toyota • Top-down alignment • Just-in-time/lean • Continuous improvement • Collective responsibility • Respect for people (?) Most profitable auto company Name Field Origin Scrum Teams Sutherland, Schwaber Extreme Programming Software teams Beck Lean Startup Product management Blank, Reis Scrum@Scale Organizations Sutherland (Greening) Understanding by Design Education Wiggins, McTighe Lean Manufacturing (TPS) Manufacturing Taichii Ohno Getting Things Done Personal Time Mgmt Allen DevOps Software+Operations Shafer and Debois Dominant Agile Frameworks
- 4. 5/23/2018 Copyright 2015, Senex Rex LLC 4 Related Frameworks Name Field Origin SAFe Waterfall Organization, Agile Teams Leffingwell LeSS Software (not-scaled product) Larman, Vodde Lean Kanban (not agile, improves flow) Anderson DevOps Operations Shafer, Debois Unfocused activities create poor results… …therefore, establish a driving purpose Pattern: Driving Purpose
- 5. 5/23/2018 Copyright 2015, Senex Rex LLC 5 Jon’s Driving Purpose I (Jon) want to organize people and activities to produce interesting, complex stuff. Example: Driving Purpose Jon’s Strategic Goals To further this purpose, I want to be employed as a Scrum Master or Agile Coach. Maybe writing agile articles can attract employers. • (2m) What themes dominated the last four years • Your career? • Your family life? • Your activities? • What values, what purpose unites these themes? • (1m) What could you achieve in one year? • Pick one and write it down Try it: Driving Purpose preliminaries
- 6. 5/23/2018 Copyright 2015, Senex Rex LLC 6 • (1m) Raise hand for one category (we’ll count): • Career, Family, Organization, Athletic, Academic, Other? • Designate tables and move (even numbers) • Identify a pair • (9m) Pairing to find Driving Purpose • (1m) Dan/Srini demo a timed interview • (3m) One person interviews other person • (3m) Switch Try it: Driving Purpose (pairing) • Challenges and discoveries? • Creative ways to find our Driving Purpose? • Anyone want to try this with a friend/colleague? Discussion: Driving Purpose
- 7. 5/23/2018 Copyright 2015, Senex Rex LLC 7 We learn and adapt too slowly… …therefore, limit work- in-progress Pattern: Limit WIP What Write an article on using Kanban Visualization in Agile Example: Limit WIP When Complete in two weeks (29 May) including measurement
- 8. 5/23/2018 Copyright 2015, Senex Rex LLC 8 Demo progress toward your purpose in two weeks What work can produce external feedback? • (2m) Dan/Srinivas demo • (3m) One person coaches the other • (3m) Invert coach relationship Try it: Limit WIP (pairing) • Did anyone find a surprising feedback source? • Did anyone have to evolve their metrics? • Challenges and discoveries? Discussion: Limit WIP
- 9. 5/23/2018 Copyright 2015, Senex Rex LLC 9 Measuring long-term purpose is too slow and costly… …therefore, measure balanced, evolving leading indicators Pattern: Leading metrics 31 Early Metrics • # experts who read • # beginners who read • # of profile views on LinkedIn Example: Leading Metrics Evolved Metrics • Expert feedback: they agree • Beginner feedback: they understood • Got job inquiries from posted article
- 10. 5/23/2018 Copyright 2015, Senex Rex LLC 10 Identify 3 balanced, leading indicators • (2m) Srini/Dan metrics coaching demo • (3m) Coached: find balanced leading indicators • (3m) Invert coach role Try it: Leading metrics • Was anything hard for your partner to measure? • Did anyone identify a perverse metric? Discussion: Leading Metrics
- 11. 5/23/2018 Copyright 2015, Senex Rex LLC 11 Hidden by routine, risks and opportunities lurk… …therefore, experiment to improve Pattern: Experiment to Improve 26 Hypothesis I can write and post to LinkedIn, Facebook, etc. and get substantive feedback Example: Experiment to Improve • ≥ 3 experts liking • ≥ 2 beginners liking • ≥ 1 inquiry
- 12. 5/23/2018 Copyright 2015, Senex Rex LLC 12 What is your metric-based hypothesis for 2 weeks? Can you adjust to a 50% likelihood of success? • (3m) Coached: craft a metric-based hypothesis • (3m) Invert coach role Try it: Experiment to Improve • Will your partner’s hypothesis likely validate? • What could interfere with the results? • If everything bombs, what’s next? Discussion: Experiment
- 13. 5/23/2018 Copyright 2015, Senex Rex LLC 13 Establish a driving purpose Measure leading indicators Limit work in progress Experiment to improve Retrospective Retrospect What went well? What went badly? What might we do differently in iteration 2? …for you Agile for Everything Free book • Send blank email to gift@senexrex.com • … or sign paper list here Sign Up for Free Gift! …for me Feedback Free survey • Would you recommend to a colleague or friend? • What would improve your score?
- 14. 5/23/2018 Copyright 2015, Senex Rex LLC 14 http://senexrex.com/blog Dan Greening +1(415)754-8311 dan@senexrex.com Agile for Everything Services: • Consultation • Coaching • Training 1 Scrum/XP: Preventing Disasters Standish Chaos Report, 2011Charette, “Why software fails,” 2005 Year Company Description Failure cost Total for year 2005 Hudson Bay Co. [Canada] Problems with inventory system contribute to $33.3 million* loss. $33,300,000 UK Inland Revenue Software errors contribute to $3.45 billion* tax-credit overpayment. $3,450,000,000 $3,483,300,000 2004 Avis Europe PLC [UK] Enterprise resource planning (ERP) system canceled a er $54.5 million† is spent. $54,500,000 Ford Motor Co. Purchasing system abandoned after deployment costing approximately $400 million. $400,000,000 J Sainsbury PLC [UK] Supply-chain management system abandoned after deployment costing $527 million.† $527,000,000 Hewlett-Packard Co. Problems with ERP system contribute to $160 million loss. $160,000,000 AT&T Wireless Customer relations management (CRM) upgrade problems lead to revenue loss of $100 million. $100,000,000 $1,241,500,000 2002 McDonald’s Corp. The Innovate information-purchasing system canceled after $170 million is spent. $170,000,000 Sydney Water Corp. [Australia] Billing system canceled a er $33.2 million† is spent. $33,200,000 CIGNA Corp. Problems with CRM system contribute to $445 million loss. $445,000,000 $648,200,000 2001 Nike Inc. Problems with supply-chain management system contribute to $100 million loss. $100,000,000 Kmart Corp. Supply-chain management system canceled after $130 million is spent. $130,000,000 $230,000,000 2000 Washington, D.C. City payroll system abandoned after deployment costing $25 million. $25,000,000 $25,000,000 1999 United Way Administrative processing system canceled after $12 million is spent. $12,000,000 State of Mississippi Tax system canceled after $11.2 million is spent; state receives $185 million damages. $196,200,000 Hershey Foods Corp. Problems with ERP system contribute to $151 million loss. $151,000,000 $359,200,000 1998 Snap-on Inc. Problems with order-entry system contribute to revenue loss of $50 million. $50,000,000 $50,000,000 1997 U.S. Internal Revenue Service Tax modernization effort canceled after $4 billion is spent. $4,000,000,000 State of Washington Department of Motor Vehicle (DMV) system canceled after $40 million is spent. $40,000,000 Oxford Health Plans Inc. Billing and claims system problems contribute to quarterly loss; stock plummets, leading to $3.4 billion loss in corporate value. $3,400,000,000 $7,440,000,000 1996 Arianespace [France] Software specification and design errors cause $350 million Ariane 5 rocket to explode. $350,000,000 FoxMeyer Drug Co. $40 million ERP system abandoned after deployment, forcing company into bankruptcy. $40,000,000 $390,000,000 1995 Toronto Stock Exchange [Canada] Electronic trading system canceled after $25.5 million** is spent. $25,500,000 $25,500,000 1994 U.S. Federal Aviation AdministrationAdvanced AutomationSystem canceled after $2.6 billion is spent. $2,600,000,000 State of California DMV system canceled after $44 million is spent. $44,000,000 Chemical Bank Software error causes a total of $15 million to be deducted from 100 000 customer accounts. $15,000,000 $2,659,000,000 1993 London Stock Exchange [UK] Taurus stock settlement system canceled after $600 million** is spent. $600,000,000 Allstate Insurance Co. Office automation system abandoned after deployment, costing $130 million. $130,000,000 London Ambulance Service [UK] Dispatch system canceled in 1990 at $11.25 million**; second attempt abandoned after deployment, costing $15 million.** $26,250,000 Greyhound Lines Inc. Bus reservation system crashes repeatedly upon introduction, contributing to revenue loss of $61 million. $61,000,000 $817,250,000 1992 Budget Rent-A-Car, Hilton Hotels, Marriott International, and AMR [American Airlines] Travel reservation system canceled after $165 million is spent. $165,000,000 $165,000,000 34 2005UK Inland Revenue Software errors cause tax-credit overpayment. $3,450,000,000 2004J Sainsbury PLC Supply-chain management system abandoned after deployment. $527,000,000 2002CIGNA Corp. Problems with CRM system contribute to $445 million loss. $445,000,000 2001Kmart Corp. Supply-chain management system canceled after $130 million is spent. $130,000,000 2000Washington, D.C. City payroll system abandoned after deployment. $25,000,000 1999State of Mississippi Tax system canceled after $11.2 million spent, and $185 million damages. $196,200,000
- 15. 5/23/2018 Copyright 2015, Senex Rex LLC 15 Scrum Retrospective = Experiment 24 4: People create delay by avoiding responsibility… Source: Christopher Avery Time No problems get solved until we take responsibility 13
- 16. 5/23/2018 Copyright 2015, Senex Rex LLC 16 • Provide people with… • autonomy, understanding, authority • Information radiators • Teach Responsibility Process • Seek faster responsibility …therefore, embrace collective responsibility Wirksworth Town Cleanup 2009 12 • Greater elasticity • In-team • Collaborative problem solving • Increased teaching and learning Result (collective responsibility) 11
- 17. 5/23/2018 Copyright 2015, Senex Rex LLC 17 • Dependencies • Make us wait • Make us test more • Handoff interference • Even more delays 5: External factors limit our agility… 9 • Convert bosses to be agile • Build collaborative teams of peer managers • Manage strategic work with agile • hiring, comp, review, M&A, etc. • Ritualize and celebrate problem solving • Analyze and change structural systems • Lean Kanban, ToC, Dependency Mapping, A3 …therefore, solve systemic problems 8
- 18. 5/23/2018 Copyright 2015, Senex Rex LLC 18 Merge and/or Colocate to Speed Up 8 7 6 5 4 3 2 1 9 7 • Culture of problem solving • Cross-department collaboration • Faster organization Result (solve systemic problems) 6
- 19. 5/23/2018 Copyright 2015, Senex Rex LLC 19 • Seek a driving purpose • Measure leading indicators • Limit work in process • Experiment to improve • Embrace collective responsibility • Expand agility Agile Base Patterns: Are we agile? 5