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The team I was working with had a “great problem” – more work than we could deliver. However this success brought mixed blessings as the strain of growing so quickly was starting to show. We had a backlog of work, process issues, resourcing and quality issues and a lot of knowledge residing with one or two of the original start-up team who were now single points of failure. The innovative, "can do" attitude of the start-up company was still there but we were having growing pains. We knew that what we were experiencing in our market (Australia) would eventually be seen in our USA market if we didn’t find a solution to our growing pains. We looked to Lean and Agile as a multidisciplinary approach to achieving an effective product strategy, development and delivery capability that could be scaled to the whole organization.
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www.zenexmachina.com
Growing PainsScaling Agile to Achieve Greater Capability in Service Delivery
By Mia HorriganManaging Director Zen Ex Machina
http://zenexmachina.wordpress.com
@miahorri
www.zenexmachina.com
Growing Pains
www.zenexmachina.com
Start Up Growing Pains
• More work than team could deliver• Process, resourcing and quality issues• Knowledge residing within a few individuals - Single
points of failure• 30 offices in AU, NZ, EU and rapidly expanding in USA• Grown from 20 to 200 to 1000 within 7 years • 48% of staff joined in last 12 months
www.zenexmachina.com
DecayStart- Up
How Business Grow
Youth
Growing Pains
2nd Youth
Maturity
TurnoverProfit
Moment of Truth:Cusp of the comfort zone
Years in Business
Topl
ine
Reve
nue/
Profi
t
Healthy Business Curve
The Slow Death
Crash & Burn
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Key Issues
• Project overruns• Decreasing margin• Lots of non-billable work being done• No product or service delivery roadmap • Projects managed in isolation• Lots of new starters, difficult to on-board• Poor quality• Low level of maturity
Needed to be here
Level 1 - InitialProcesses unpredictable, poorly controlled and reactive
Level 2 - ManagedProcesses characterised for projects and is often
reactive
Level 3 - DefinedProcesses characterised for the
organisation and is proactive (projects tailor their processes from organisation's
standards)
Level 4 – Quantitatively Managed
Processes measured and controlled
Level 5 – Optimising
Focus on process improvement
Capability Maturity Model (CMMI)
We were here
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Capability Uplift Strategy –Lean Start-up
Aim Objective HowImprove resource and capacity planning processes
Scrum masters involved in assisting resource and capacity planning for the Sprints
Increased accuracy of estimations of work effort Capability planning occurs Planning is established on a continuous cycle
Engage Executive, Directors Product teams Team, PMO and Delivery team strategic planning
SM Coaching Clinics with scenario-based training SM and POs mentoring one-on-one Buy-in from SMs
Implement and enhance (Agile/Scrum) project delivery
Sprint cycle goals for projects achieved Continuous planning embedded into Sprint cycles Reporting as part of the project cycle Achieve level 2 CMMI® maturity rating within 3
months
Support from CIO and Director for the Agile Framework
Peer review by Business / Global PMO of key artifacts.
Engagement of the business during planning and review stages of projects
Up-skill and train Scrum Masters as owners of the process
Ensure Scrum Masters are moving towards conscious competence
Achieve CMMI® level 3 maturity rating within 3- 6 months
Engage Scrum Coach Wkly Coaching Clinics /Lean coffees
Backlog of Coaching Clinic topics that represent value to SMs and align to the strategy and guiding principles
Conduct Coaching Clinics and one-on-one sessions with Scrum Coach
Implement and enhance governance processes
Improved transparency Resources allocated appropriately across projects PRINCE2 aligned Successful project management recognized as more
than just “on time” and “on budget”
Implement RACI from projects to Program Continue backlog refinement meetings of
Applications Development Forums and Project Board to rank projects
Identify standards for tolerances and baseline
www.zenexmachina.com
5 Areas of Improvement (Lean Principles)
• Process issues – Lack of governance, and understanding of processes, roles & responsibilities
• Waste due to functional silos – Upstream operated independently of downstream
• Waste in resourcing model – Cherry picking and body shopping
• Quality issues – Milestone driven timeframes not realistic, no testing time, non billable rework 24%
• Lack of “big picture” thinking – No program view of delivery, or interdependencies, limited collaboration
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Approach
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Unconsciously competent
3 months
Consciously competent
2 months
Conscious competence and agile adoption
Consciously incompetent
1 month
Aim: Learn what the rules are
Aim: Learn how the rules apply
Aim: Learn why the rules apply
Outcome: Awareness of
change required to produce
repeatable outcomes
Outcome: learned behaviours with
repeatable outcomes
Outcome: Empowered to
change the rules and know the
consequence
You know that you don’t know and it
bothers you
You know that you do know something but it
takes effort
You know how to do something and it is
second nature
You know how to do something and it is
second nature
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Team Issues
It’s wasn’t easy, there was lots of resistance
www.zenexmachina.com
WIIFM- “What’s In It For Me ?”
Organisation• Based on business’s
Priorities• High visibility on project
progress• Ensure effective use of
resources • Help with the change and
adoption• Product Roadmap and
upgrade path articulated
Service Delivery • Happy client area• Certainty around resources• Collaboration and
multidisciplinary approach• Better quality through
Build/Test process • Ability to manage projects
within a program framework
www.zenexmachina.com
Scaling to Program Level
• Implemented Scrum and Scrum of Scrums as framework to assist organisation to scale its agile capability
• Program approach to manage competing schedules and priorities
• Program governance ranked order of product backlog and release train order
• Team left to focus on what was of value to client
www.zenexmachina.com
Governance
• Decision points at all levels• RACI to manage scope and requirements
Portfolio
Program
Project
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Restructure of Service Delivery
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User vs. Product Focused
Intelligent Integrations Smarter Hospitals (EMR)
• Rhapsody• PCEHR• SMD• Integration Engine
Products/Solution
• Clinical portal• HIS• Meds Mgmt• Orders• Clinical
Documentation• SMT• ED Whiteboard• Mobile• IAM (Caradigm)
Healthier Populations(EHR)
• BIS• OHBI• Healthcare
Pathways• Mobile• Patient Portal• Ereferrals• EMPI (Nextgate)
Orion product View
Customer View
Product View
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Cultural Change
• Moving to Scrum was a cultural change• Needed executive leadership approval and support –
took time• Lot of resistance from senior members of team as new
structure took away function role based power• Managers blocked the processes• PMs lacked big picture thinking negatively impacted
program• Had to make some tough decisions• Had an unhappy client who was a global reference site
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Made it Visual
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Billable Utilisation Paradox
• Revenue based on timesheets and % complete against budget and estimate to complete
• But most projects were fixed costs so longer delivery eroded billable rate
• Scrum Utilisation >95% but project health issues meant billable utilisation was 60%
• Gaming of the system • Changed to communicating sprint goals, progress and
value delivered• WIP limits helped to ensure team had focus on value
www.zenexmachina.com
Limitations and Problems with Scaling
• Methodology concerns of scaling from project to portfolio and regions
• Started midway through fixed priced projects• Confusion and in-fighting over scarce resource• Multiple PMs contributing to common backlog
but only one product owner (skewed)
One Product Backlog
Prod
uct B
ackl
og
a
a
c
b
d
c
• Develop Product Backlog items to 20/20/60 levels of granularity
• Create Definition of Done• Create sufficient specificity and clarity
in Product Backlog to commence first Sprint
Planning & Design ExecutingInitiating
• Develop Program Backlog (Epics)• Develop Epics acceptance criteria• Rank new Epics in Program Backlog• Brief Product Owner• Brief Teams• Undertake estimations of Epics• Agree deployment milestones
a
a
c
Sprint Backlog
Sprint Planning
4-weekSprint
Production ReadyIncrement
• Analysis • Design• Development• Testing• Daily Scrum• Remove impediments• Team-based work
• Capacity planning• Capability planning• Succession planning
• Create goal for items to be completed by the end of the Sprint
• Create tasks
• Release into Test• Demo with the Client• Lessons learned for
the Team for next Sprint
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Communicated Sprint Goals to Clients
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Successfully Scaling the Program
• Scrum of Scrums• One product owner with Program Director as
master Scrum Master• Pairing of knowledge resources with new starters• Re-use of framework and program roadmap
across regions and client sites • Communities of Practice shared lessons learnt
across regions at global PMO level
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Outcomes
• Improved delivery capability• Product co-development partnership with Sprints• Decrease risk of failure to deliver on time• Working collaboratively with stakeholders• Robust governance and accountability• Iterative rather than “hero” efforts• Sharing skills and knowledge• Scaled from project to program to portfolio• Adopted learning to global PMO• Lean delivery – identified and decreased waste
www.zenexmachina.com
Good Management Practice
Fin
http://www.zenexmachina.com
http://zenexmachina.wordpress.com
www.zenexmachina.com
Mia.horrigan@zenexmachina.com
@miahorri
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