SlideShare a Scribd company logo
http://senexrex.com
info@senexrex.com
@senexrex
Agile Base Patterns:
The Agile Way of Doing
Dan Greening dan@senexrex.com
Copyright 2015, Senex Rex LLC.
This work is licensed under a Creative Commons
Attribution-NoDerivatives 4.0 International License. 38
• Managing Director:
Senex Rex Agile Consulting
• Certified Scrum Coach (CSC)
• Head coach: Skype, Citrix Online
• Startup successes
• PhD, computer science, UCLA
Dan Greening
37
• Why did lean and agile methodologies arise?
• What patterns do they share and why?
• Why do organizations fail to sustain agility?
• What characteristics do agile managers share?
Agenda
36
Toyota
• JIT/lean manufacturing
• Continuous improvement
• Top-down alignment
• Collective responsibility
• Respect for people
Most profitable
Toyota vs GM
General Motors
• Forecast and inventory
• Contract-dictated actions
• Plant manager autonomy
• Role-based responsibility
• Class-based association
Bankrupt
35
Software Project Failures
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 contributeto $3.45 billion* tax-creditoverpayment. $3,450,000,000 $3,483,300,000
2004 Avis Europe PLC [UK] Enterprise resource planning (ERP) system canceled after $54.5 million†is spent. $54,500,000
Ford Motor Co. Purchasing system abandoned after deploymentcosting approximately$400
million.
$400,000,000
J Sainsbury PLC [UK] Supply-chainmanagementsystem abandoned after deployment costing $527
million.†
$527,000,000
Hewlett-Packard Co. Problems with ERP system contribute to $160 millionloss. $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-purchasingsystem canceled after $170 millionis spent. $170,000,000
Sydney Water Corp. [Australia] Billingsystem canceled after $33.2 million† is spent. $33,200,000
CIGNA Corp. Problems with CRM system contributeto $445 millionloss. $445,000,000 $648,200,000
2001 Nike Inc. Problems with supply-chain managementsystem contributeto $100 million loss. $100,000,000
Kmart Corp. Supply-chainmanagementsystem canceled after $130 millionis spent. $130,000,000 $230,000,000
2000 Washington, D.C. City payroll system abandoned after deploymentcosting $25 million. $25,000,000 $25,000,000
1999 United Way Administrativeprocessing system canceled after $12 millionis spent. $12,000,000
State of Mississippi Tax system canceled after $11.2 millionis spent; state receives $185 million
damages.
$196,200,000
Hershey Foods Corp. Problems with ERP system contribute to $151 millionloss. $151,000,000 $359,200,000
1998 Snap-on Inc. Problems with order-entrysystem contributeto revenue loss of $50 million. $50,000,000 $50,000,000
1997 U.S. Internal Revenue Service Tax modernizationeffort canceled after $4 billion is spent. $4,000,000,000
State of Washington Department of Motor Vehicle (DMV) system canceled after $40 millionis spent. $40,000,000
Oxford Health Plans Inc. Billingand claims system problems contributeto 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 specificationand design errors cause $350 millionAriane 5 rocket to
explode.
$350,000,000
FoxMeyer Drug Co. $40 millionERP system abandoned after deployment, forcing company into
bankruptcy.
$40,000,000 $390,000,000
1995 Toronto Stock Exchange [Canada] Electronictrading system canceled after $25.5 million**is spent. $25,500,000 $25,500,000
1994 U.S. Federal Aviation Administration Advanced AutomationSystem canceled after $2.6 billionis spent. $2,600,000,000
State of California DMV system canceled after $44 millionis spent. $44,000,000
Chemical Bank Software error causes a total of $15 millionto 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. Officeautomation 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 repeatedlyupon introduction,contributingto
revenue loss of $61 million.
$61,000,000 $817,250,000
1992 Budget Rent-A-Car, Hilton Hotels,
MarriottInternational, and AMR
[AmericanAirlines]
Travel reservation system canceled after $165 millionis spent. $165,000,000 $165,000,000
34
Agile organizations can
• Sense
• Adapt
• Create
faster than chaotic change
Why do we care?
Agility Defined
33
Chaos Creates Opportunities
Everyone’s ability to predict the future degrades exponentially with time
So create a company that exploits this chaos better than competitors
32
• Economics drive everything we do
• Economies produce value with limited resources
• Forces
• Success metrics lag the work
• Risk is rarely measured
• Creativity generates variation
Pattern 1: Fixed-budget creativity often fails…
31
• Identify top-level goals
• Align everyone else
• Find leading metrics
• Departments have their
own
…therefore, measure economic progress
Source: http://systemsthinking.org
30
• Balance metrics
• Evolve metrics
Avoid perversity
Source: http://systems-thinking.org
29
• Coherent company
• Mission, vision and goals
• Employee, team behavior
• If economy unchanging
• We react
• We learn
• We forecast
Result (measure economic progress)
28
• Measure economic progress
• Proactively experiment to improve
• Limit work in process
• Embrace collective responsibility
• Solve systemic problems
Agile Base Patterns: Are we agile?
27
• Complacency lulls us
• … we don’t hear a train
Pattern 2: Reacting is not enough …
26
• Experiment
• Brainstorm
• Test a hypothesis
• Control the experiment
• Evolve, but …
• test revolutionary theories too
• Beware variability control
• Can kill creativity
… therefore, proactively experiment
25
Scrum Retrospective = Experiment
24
Learn more: Seek 50% Invalidation
100% invalidated 100% validated
Where we learn the most
23
“Stretch goals” “Agile is for the team”
• Hyperproductive teams
• 40% higher quality
• 100% faster production
• Jakobsen and Sutherland, “Scrum and CMMI: Going from Good to Great,” 2009 Agile
Conference, IEEE.
• Organizations “disrupt themselves”
Result (Proactively Experiment)
22
• Measure economic progress
• Proactively experiment to improve
• Limit work in process
• Embrace collective responsibility
• Solve systemic problems
Agile Base Patterns: Are we agile?
21
• We feel better if everyone is busy
• Why can’t they get stuff done on time?
Pattern 3: Utilization creates delay…
20
Congestion
19
Creative focus
• We can remember
≤ 7±2 concepts
Cognition and Creative Focus
Source: Stanford University
18
• Geometric Backlogs
help make tradeoffs
• Incremental work
tests theories faster
…therefore, limit work-in-process
17
Limit WIP: Incremental Production
16
• Rapidly deliver small increments of value
• Possibility of rapid feedback
• Cancellable work (sunk cost is low)
• Learn faster than chaotic economy changes
• Manage # of options to match cognitive limits
Result (Limit WIP)
15
• Measure economic progress
• Proactively experiment to improve
• Limit work in process
• Embrace collective responsibility
• Solve systemic problems
Agile Base Patterns: Are we agile?
14
4: People create delay
by avoiding responsibility…
Source: Christopher Avery
Time
No problems get solved
until we take responsibility
13
• 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
• Measure economic progress
• Proactively experiment to improve
• Limit work in process
• Embrace collective responsibility
• Solve systemic problems
Agile Base Patterns: Are we agile?
10
• 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
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
• Measure economic progress
• Proactively experiment to improve
• Limit work in process
• Embrace collective responsibility
• Solve systemic problems
Agile Base Patterns: Are we agile?
5
Agile Base Patterns Agility Lost
Measure progress Stopped measuring (agile for us, stretch goals)
Proactively experiment Discouraged experimentation (risk aversion)
Limit work in process No automation. Took on too much work
Collective responsibility Assigned responsibility
Solve systemic problems High territoriality
Why do organizations lose agility?
Misalignment of organizational and individual goals
4
What do agile managers do?
Agile Base Patterns Agile Managers
Measure progress Measure department’s service to customer
Proactively experiment Create low-risk experiments
Limit work in process Limit departmental work in process
Collective responsibility Embrace organizational responsibility
Solve systemic problems Teach, mentor, coach their skills
Top-Down Agile beats Bottom-Up
People working for an agile manager must become and sustain agility,
to realize the manager’s personal goals
3
http://senexrex.com/category/agile-base-patterns/
• measure economic progress,
• proactively experiment,
• limit work in process,
• embrace collective responsibility, and
• solve systemic problems.
References: Agile Base Patterns
2
http://senexrex.com/blog
Dan Greening
+1(415)754-8311
dan@senexrex.com
Sustained Agility
Services:
• Consultation
• Coaching
• Training
1

More Related Content

PPT
Scrum Gathering 2008 Stockholm - Salesforce.com
PPTX
Become a Change Master in Salesforce
PDF
Large Scale Scrum at Powerhouse.
PPTX
Scrumban Demystified
PDF
Managing change in an agile Salesforce development environment
PPT
Q Con 2008 - Unleashing the Fossa
PDF
What a scrum master really does by Rowan Bunning
PDF
A Very Large Enterprise Agile Transformation: Lessons Learned at Salesforce
Scrum Gathering 2008 Stockholm - Salesforce.com
Become a Change Master in Salesforce
Large Scale Scrum at Powerhouse.
Scrumban Demystified
Managing change in an agile Salesforce development environment
Q Con 2008 - Unleashing the Fossa
What a scrum master really does by Rowan Bunning
A Very Large Enterprise Agile Transformation: Lessons Learned at Salesforce

What's hot (20)

PPTX
Intro To Scrum
PDF
The Big Migration: How Cerner Moved From Confluence 3.5 to 5.8
PDF
Scrumban
PDF
Using Kanban to Visualize Your Work
PDF
How Nespresso Uses JIRA Software for Release Management
PPTX
Doc is Dead! How Walkthroughs Changed Salesforce's Content Strategy
PDF
Scrumban
PDF
6 Strategies to Uncover Growth Opportunities for Your Business
PPTX
Introducing Agile to the Enterprise
PDF
LeSS-Intro - Scrum Meetup Berlin
PPTX
Scrumban - applying agile and lean practices for daily uncertainty by Vidas V...
PPTX
Scrumban (Lean Agile Fusion) V1.1
PPTX
Panaya Tech Talk, Part Two on Salesforce Org Health
PDF
Scrum, Kanban and DevOps Sitting in a tree... Dave West and Yuval Yeret at Ag...
PDF
All You Want To About Kanban Before Doing Kanban Certification | AgileFever
PPT
The Year of Living Dangerously: Extraordinary Results for an Enterprise Agile...
DOC
Large Scale Agile Transformation in an On-Demand World
PDF
Comparing Agile transformation approaches at Twitter and Salesforce
PPT
Salesforce Agile Transformation - Agile 2007 Conference
PPTX
Catch agile
Intro To Scrum
The Big Migration: How Cerner Moved From Confluence 3.5 to 5.8
Scrumban
Using Kanban to Visualize Your Work
How Nespresso Uses JIRA Software for Release Management
Doc is Dead! How Walkthroughs Changed Salesforce's Content Strategy
Scrumban
6 Strategies to Uncover Growth Opportunities for Your Business
Introducing Agile to the Enterprise
LeSS-Intro - Scrum Meetup Berlin
Scrumban - applying agile and lean practices for daily uncertainty by Vidas V...
Scrumban (Lean Agile Fusion) V1.1
Panaya Tech Talk, Part Two on Salesforce Org Health
Scrum, Kanban and DevOps Sitting in a tree... Dave West and Yuval Yeret at Ag...
All You Want To About Kanban Before Doing Kanban Certification | AgileFever
The Year of Living Dangerously: Extraordinary Results for an Enterprise Agile...
Large Scale Agile Transformation in an On-Demand World
Comparing Agile transformation approaches at Twitter and Salesforce
Salesforce Agile Transformation - Agile 2007 Conference
Catch agile
Ad

Viewers also liked (9)

PPTX
Алексей Пименов, 1000 и 1 система. Как бысро выполнять проекты в Enterprise-к...
PPTX
Mike Burrows, Are we there yet?
PPTX
David Anderson, Enterprise Service Planning – Масштабирование преимуществ Kanban
PDF
Евгений Кобзев, Прикладная и абстрактная холакратия
PPTX
Patrick Steyart, Discovery Kanban - канбан открытий
PDF
Turn a disastrous ERP implementation into a successful one with Lean IT by Kl...
PDF
Growing the Tech team at ridesharing startup Blablacar by N.Tricot and C.Jenn...
PDF
How «Toyota Way» principles guided the architecture of Toyota’s product datah...
PDF
Have you tried to lean your IT Service Management? by Daniel Breston
Алексей Пименов, 1000 и 1 система. Как бысро выполнять проекты в Enterprise-к...
Mike Burrows, Are we there yet?
David Anderson, Enterprise Service Planning – Масштабирование преимуществ Kanban
Евгений Кобзев, Прикладная и абстрактная холакратия
Patrick Steyart, Discovery Kanban - канбан открытий
Turn a disastrous ERP implementation into a successful one with Lean IT by Kl...
Growing the Tech team at ridesharing startup Blablacar by N.Tricot and C.Jenn...
How «Toyota Way» principles guided the architecture of Toyota’s product datah...
Have you tried to lean your IT Service Management? by Daniel Breston
Ad

Similar to Dan Greening, Шаблоны лидерства в Agile: The Agile Way of Doing (20)

PDF
8 Steps Problem Solving Method -2.pdf
PDF
8 step Problem solving Method.pdf
PPT
P_IRP Lean Six Sigma.ppt
PPT
P_IRP Lean Six Sigma.ppt
PPT
Lean Six Sigma in healthcare management.ppt
PPT
P_IRP Lean Six Sigma.ppt
PPTX
Maximize your Lean ROI
PDF
Practicalities in Delivering World Class Finance
PPTX
DevOpsGuys Scaling DevOps @ #CIOWaterCooler - June 2018
PPT
an Introduction to Lean Six Sigma in Higher Education
PPT
basic Lean Six Sigma for beginner only.ppt
PDF
Agile for everything dan greening
PPTX
Supercharge Your Digital Transformation by Establishing a DevOps Platform
PPTX
PPTX
Six Sigma.pptx
PPTX
Technical debt is a business problem - Bob Fischer
PPTX
HR Analytics: Using Machine Learning to Predict Employee Turnover - Matt Danc...
PPTX
Lean Six Sigma Overview (print version)
PDF
Crossing the assault course: Seeing the pitfalls before you fall into them we...
PPT
Total Quality Managment
8 Steps Problem Solving Method -2.pdf
8 step Problem solving Method.pdf
P_IRP Lean Six Sigma.ppt
P_IRP Lean Six Sigma.ppt
Lean Six Sigma in healthcare management.ppt
P_IRP Lean Six Sigma.ppt
Maximize your Lean ROI
Practicalities in Delivering World Class Finance
DevOpsGuys Scaling DevOps @ #CIOWaterCooler - June 2018
an Introduction to Lean Six Sigma in Higher Education
basic Lean Six Sigma for beginner only.ppt
Agile for everything dan greening
Supercharge Your Digital Transformation by Establishing a DevOps Platform
Six Sigma.pptx
Technical debt is a business problem - Bob Fischer
HR Analytics: Using Machine Learning to Predict Employee Turnover - Matt Danc...
Lean Six Sigma Overview (print version)
Crossing the assault course: Seeing the pitfalls before you fall into them we...
Total Quality Managment

More from ScrumTrek (20)

PDF
Александра Баптизманская, Никита Романов. Хочешь Agile в маркетинге - спроси ...
PDF
Светлана Байгалиева (MindGym). Встань за штурвал
PDF
Александр Тупиков. Введение в Scrum
PDF
Сергей Чирва. Как Scrum превращает завод в IT-компанию
PDF
Юрий Соболев. Проблемы и решения Scrum на практике
PDF
Анна Обухова. Scrum и сила воли
PPTX
TealTeam. Главный критерий при выборе нового члена команды
PPTX
Анастасия Мизитова. Компетенции для Agile HR
PPTX
Марина Львова. Изменение роли HR в Agile-компании
PPTX
Асхат Уразбаев. Три вопроса к HR службе от аджайл-коуча
PPTX
Александр Корольков. LeSS Huge
PPTX
DevOps для Legacy-продуктов
PPTX
Сергей Баранов. Enterprise DevOps
PPTX
Петр Клименко. DevOps Трансформация для SIEBEL CRM
PDF
Кирилл Толкачев. Микросервисы: огонь, вода и девопс
PDF
Евгений Кривошеев. Beyond DevOps
PDF
Асхат Уразбаев. Крутые организации, счастливые сотрудники
PDF
Олег Бахмутов, Михаил Плотников, Илья Емельянов. 3 "кита" Agile
PDF
Алексей Ионов. Agile-трансформация: что делать, чтобы потом не искать виноватых?
PDF
Иван Дубровин. Почему государство должно быть Agile?
Александра Баптизманская, Никита Романов. Хочешь Agile в маркетинге - спроси ...
Светлана Байгалиева (MindGym). Встань за штурвал
Александр Тупиков. Введение в Scrum
Сергей Чирва. Как Scrum превращает завод в IT-компанию
Юрий Соболев. Проблемы и решения Scrum на практике
Анна Обухова. Scrum и сила воли
TealTeam. Главный критерий при выборе нового члена команды
Анастасия Мизитова. Компетенции для Agile HR
Марина Львова. Изменение роли HR в Agile-компании
Асхат Уразбаев. Три вопроса к HR службе от аджайл-коуча
Александр Корольков. LeSS Huge
DevOps для Legacy-продуктов
Сергей Баранов. Enterprise DevOps
Петр Клименко. DevOps Трансформация для SIEBEL CRM
Кирилл Толкачев. Микросервисы: огонь, вода и девопс
Евгений Кривошеев. Beyond DevOps
Асхат Уразбаев. Крутые организации, счастливые сотрудники
Олег Бахмутов, Михаил Плотников, Илья Емельянов. 3 "кита" Agile
Алексей Ионов. Agile-трансформация: что делать, чтобы потом не искать виноватых?
Иван Дубровин. Почему государство должно быть Agile?

Recently uploaded (20)

PPTX
Concluding Session_Wrapup-NA May 5 2024-Oct 10 2025 ZS.pptx
PPTX
Chapter Three for international political
PPTX
Concluding Session_Wrapup-India Jun 5 2024-Oct 5 2025 ZS.pptx
PDF
Equity at the Helm_ Guiding Schools Through Inclusive Leadership by Dr.pdf
PPTX
Chapter One an overview of political economy
PPTX
Self-Awareness and Values Development presentation
PPTX
_ISO_Presentation_ISO 9001 and 45001.pptx
PDF
CHAPTER 14 Manageement of Nursing Educational Institutions- planing and orga...
PPTX
INTELLECTUAL PROPERTY LAW IN UGANDA.pptx
PPTX
Human resources management -job perception concept
PPTX
MY GOLDEN RULES la regla de oro jhonatan requena
PDF
CISSP Domain 5: Identity and Access Management (IAM)
PPTX
Human Resources management _HR structure
PDF
Timeless Leadership Principles from History’s Greatest Figures by Alfonso Ken...
PDF
The Plan: Save the Palestinian Nation Now
PDF
ORGANIZATIONAL communication -concepts and importance._20250806_112132_0000.pdf
PPTX
Improved_Leadership_in_Total_Quality_Lesson.pptx
PDF
MANAGEMENT LESSONS FROM ANCIENT KNOWLEDGE SYSTEM-ARTHASHASTRA AND THIRUKKURAL...
PPTX
Consulting on marketing-The needs wants and demands are a very important comp...
PDF
Phillips model training for evaluation pdf
Concluding Session_Wrapup-NA May 5 2024-Oct 10 2025 ZS.pptx
Chapter Three for international political
Concluding Session_Wrapup-India Jun 5 2024-Oct 5 2025 ZS.pptx
Equity at the Helm_ Guiding Schools Through Inclusive Leadership by Dr.pdf
Chapter One an overview of political economy
Self-Awareness and Values Development presentation
_ISO_Presentation_ISO 9001 and 45001.pptx
CHAPTER 14 Manageement of Nursing Educational Institutions- planing and orga...
INTELLECTUAL PROPERTY LAW IN UGANDA.pptx
Human resources management -job perception concept
MY GOLDEN RULES la regla de oro jhonatan requena
CISSP Domain 5: Identity and Access Management (IAM)
Human Resources management _HR structure
Timeless Leadership Principles from History’s Greatest Figures by Alfonso Ken...
The Plan: Save the Palestinian Nation Now
ORGANIZATIONAL communication -concepts and importance._20250806_112132_0000.pdf
Improved_Leadership_in_Total_Quality_Lesson.pptx
MANAGEMENT LESSONS FROM ANCIENT KNOWLEDGE SYSTEM-ARTHASHASTRA AND THIRUKKURAL...
Consulting on marketing-The needs wants and demands are a very important comp...
Phillips model training for evaluation pdf

Dan Greening, Шаблоны лидерства в Agile: The Agile Way of Doing

  • 1. http://senexrex.com info@senexrex.com @senexrex Agile Base Patterns: The Agile Way of Doing Dan Greening dan@senexrex.com Copyright 2015, Senex Rex LLC. This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License. 38
  • 2. • Managing Director: Senex Rex Agile Consulting • Certified Scrum Coach (CSC) • Head coach: Skype, Citrix Online • Startup successes • PhD, computer science, UCLA Dan Greening 37
  • 3. • Why did lean and agile methodologies arise? • What patterns do they share and why? • Why do organizations fail to sustain agility? • What characteristics do agile managers share? Agenda 36
  • 4. Toyota • JIT/lean manufacturing • Continuous improvement • Top-down alignment • Collective responsibility • Respect for people Most profitable Toyota vs GM General Motors • Forecast and inventory • Contract-dictated actions • Plant manager autonomy • Role-based responsibility • Class-based association Bankrupt 35
  • 5. Software Project Failures 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 contributeto $3.45 billion* tax-creditoverpayment. $3,450,000,000 $3,483,300,000 2004 Avis Europe PLC [UK] Enterprise resource planning (ERP) system canceled after $54.5 million†is spent. $54,500,000 Ford Motor Co. Purchasing system abandoned after deploymentcosting approximately$400 million. $400,000,000 J Sainsbury PLC [UK] Supply-chainmanagementsystem abandoned after deployment costing $527 million.† $527,000,000 Hewlett-Packard Co. Problems with ERP system contribute to $160 millionloss. $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-purchasingsystem canceled after $170 millionis spent. $170,000,000 Sydney Water Corp. [Australia] Billingsystem canceled after $33.2 million† is spent. $33,200,000 CIGNA Corp. Problems with CRM system contributeto $445 millionloss. $445,000,000 $648,200,000 2001 Nike Inc. Problems with supply-chain managementsystem contributeto $100 million loss. $100,000,000 Kmart Corp. Supply-chainmanagementsystem canceled after $130 millionis spent. $130,000,000 $230,000,000 2000 Washington, D.C. City payroll system abandoned after deploymentcosting $25 million. $25,000,000 $25,000,000 1999 United Way Administrativeprocessing system canceled after $12 millionis spent. $12,000,000 State of Mississippi Tax system canceled after $11.2 millionis spent; state receives $185 million damages. $196,200,000 Hershey Foods Corp. Problems with ERP system contribute to $151 millionloss. $151,000,000 $359,200,000 1998 Snap-on Inc. Problems with order-entrysystem contributeto revenue loss of $50 million. $50,000,000 $50,000,000 1997 U.S. Internal Revenue Service Tax modernizationeffort canceled after $4 billion is spent. $4,000,000,000 State of Washington Department of Motor Vehicle (DMV) system canceled after $40 millionis spent. $40,000,000 Oxford Health Plans Inc. Billingand claims system problems contributeto 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 specificationand design errors cause $350 millionAriane 5 rocket to explode. $350,000,000 FoxMeyer Drug Co. $40 millionERP system abandoned after deployment, forcing company into bankruptcy. $40,000,000 $390,000,000 1995 Toronto Stock Exchange [Canada] Electronictrading system canceled after $25.5 million**is spent. $25,500,000 $25,500,000 1994 U.S. Federal Aviation Administration Advanced AutomationSystem canceled after $2.6 billionis spent. $2,600,000,000 State of California DMV system canceled after $44 millionis spent. $44,000,000 Chemical Bank Software error causes a total of $15 millionto 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. Officeautomation 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 repeatedlyupon introduction,contributingto revenue loss of $61 million. $61,000,000 $817,250,000 1992 Budget Rent-A-Car, Hilton Hotels, MarriottInternational, and AMR [AmericanAirlines] Travel reservation system canceled after $165 millionis spent. $165,000,000 $165,000,000 34
  • 6. Agile organizations can • Sense • Adapt • Create faster than chaotic change Why do we care? Agility Defined 33
  • 7. Chaos Creates Opportunities Everyone’s ability to predict the future degrades exponentially with time So create a company that exploits this chaos better than competitors 32
  • 8. • Economics drive everything we do • Economies produce value with limited resources • Forces • Success metrics lag the work • Risk is rarely measured • Creativity generates variation Pattern 1: Fixed-budget creativity often fails… 31
  • 9. • Identify top-level goals • Align everyone else • Find leading metrics • Departments have their own …therefore, measure economic progress Source: http://systemsthinking.org 30
  • 10. • Balance metrics • Evolve metrics Avoid perversity Source: http://systems-thinking.org 29
  • 11. • Coherent company • Mission, vision and goals • Employee, team behavior • If economy unchanging • We react • We learn • We forecast Result (measure economic progress) 28
  • 12. • Measure economic progress • Proactively experiment to improve • Limit work in process • Embrace collective responsibility • Solve systemic problems Agile Base Patterns: Are we agile? 27
  • 13. • Complacency lulls us • … we don’t hear a train Pattern 2: Reacting is not enough … 26
  • 14. • Experiment • Brainstorm • Test a hypothesis • Control the experiment • Evolve, but … • test revolutionary theories too • Beware variability control • Can kill creativity … therefore, proactively experiment 25
  • 15. Scrum Retrospective = Experiment 24
  • 16. Learn more: Seek 50% Invalidation 100% invalidated 100% validated Where we learn the most 23 “Stretch goals” “Agile is for the team”
  • 17. • Hyperproductive teams • 40% higher quality • 100% faster production • Jakobsen and Sutherland, “Scrum and CMMI: Going from Good to Great,” 2009 Agile Conference, IEEE. • Organizations “disrupt themselves” Result (Proactively Experiment) 22
  • 18. • Measure economic progress • Proactively experiment to improve • Limit work in process • Embrace collective responsibility • Solve systemic problems Agile Base Patterns: Are we agile? 21
  • 19. • We feel better if everyone is busy • Why can’t they get stuff done on time? Pattern 3: Utilization creates delay… 20
  • 21. Creative focus • We can remember ≤ 7±2 concepts Cognition and Creative Focus Source: Stanford University 18
  • 22. • Geometric Backlogs help make tradeoffs • Incremental work tests theories faster …therefore, limit work-in-process 17
  • 23. Limit WIP: Incremental Production 16
  • 24. • Rapidly deliver small increments of value • Possibility of rapid feedback • Cancellable work (sunk cost is low) • Learn faster than chaotic economy changes • Manage # of options to match cognitive limits Result (Limit WIP) 15
  • 25. • Measure economic progress • Proactively experiment to improve • Limit work in process • Embrace collective responsibility • Solve systemic problems Agile Base Patterns: Are we agile? 14
  • 26. 4: People create delay by avoiding responsibility… Source: Christopher Avery Time No problems get solved until we take responsibility 13
  • 27. • Provide people with… • autonomy, understanding, authority • Information radiators • Teach Responsibility Process • Seek faster responsibility …therefore, embrace collective responsibility Wirksworth Town Cleanup 2009 12
  • 28. • Greater elasticity • In-team • Collaborative problem solving • Increased teaching and learning Result (collective responsibility) 11
  • 29. • Measure economic progress • Proactively experiment to improve • Limit work in process • Embrace collective responsibility • Solve systemic problems Agile Base Patterns: Are we agile? 10
  • 30. • Dependencies • Make us wait • Make us test more • Handoff interference • Even more delays 5: External factors limit our agility… 9
  • 31. • 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
  • 32. Merge and/or Colocate to Speed Up 8 7 6 5 4 3 2 1 9 7
  • 33. • Culture of problem solving • Cross-department collaboration • Faster organization Result (solve systemic problems) 6
  • 34. • Measure economic progress • Proactively experiment to improve • Limit work in process • Embrace collective responsibility • Solve systemic problems Agile Base Patterns: Are we agile? 5
  • 35. Agile Base Patterns Agility Lost Measure progress Stopped measuring (agile for us, stretch goals) Proactively experiment Discouraged experimentation (risk aversion) Limit work in process No automation. Took on too much work Collective responsibility Assigned responsibility Solve systemic problems High territoriality Why do organizations lose agility? Misalignment of organizational and individual goals 4
  • 36. What do agile managers do? Agile Base Patterns Agile Managers Measure progress Measure department’s service to customer Proactively experiment Create low-risk experiments Limit work in process Limit departmental work in process Collective responsibility Embrace organizational responsibility Solve systemic problems Teach, mentor, coach their skills Top-Down Agile beats Bottom-Up People working for an agile manager must become and sustain agility, to realize the manager’s personal goals 3
  • 37. http://senexrex.com/category/agile-base-patterns/ • measure economic progress, • proactively experiment, • limit work in process, • embrace collective responsibility, and • solve systemic problems. References: Agile Base Patterns 2

Editor's Notes

  • #5: If time, tell the story of the NUMMI plant