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THE THREE THINGSYou Need to Know to Transform Any Sized
Organization into an Agile Enterprise
www.leadingagile.comtwitter.com/mcottmeyer
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MIKE COTTMEYER
Brief Agenda
• Discuss why adopting agile isn’t ‘one size fits all’
• Explore the fundamentals of agile transformation
• How to craft an agile transformation roadmap
Brief Agenda
• Discuss why adopting agile isn’t ‘one size fits all’
• Explore the fundamentals of agile transformation
• How to craft an agile transformation roadmap
Brief Agenda
• Discuss why adopting agile isn’t ‘one size fits all’
• Explore the fundamentals of agile transformation
• How to craft an agile transformation roadmap
Brief Agenda
• Discuss why adopting agile isn’t ‘one size fits all’
• Explore the fundamentals of agile transformation
• How to craft an agile transformation roadmap
ONE SIZE DOESNOT FIT ALL
AdaptabilityPr
edic
tabi
lity
Pred
icta
bilit
y Adaptability
Emergence
Convergence
Pred
icta
bilit
y Adaptability
Emergence
Convergence
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPC
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-HocQuadrant One• Predictive
Emergent
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Traditional
Quadrant Two• Predictive
Convergent
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Traditional Agile
Quadrant Three• Adaptive
Convergent
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Traditional Agile
Lean StartupQuadrant Four• Adaptive
Emergent
THE THREE THINGS
Backlog
Backlog
Backlog
Backlog
Backlogs
Teams
Backlog
Backlog
Backlog
Backlog
Backlogs Teams
Teams
Backlog
Backlog
Backlog
Backlog
WorkingTested
Software
Backlogs Teams Working Tested Software
Teams
Backlog
Backlog
Backlog
Backlog
WorkingTested
Software
• INVEST• CCC• Small enough
for the team to develop in a day or so
• Everything and everyone necessary to deliver
• Meets acceptance criteria
• No known defects
• No technical debt
What Do I Mean?
Backlogs Teams Working Tested Software
Teams
Backlog
Backlog
Backlog
Backlog
WorkingTested
Software
• INVEST• CCC• Small enough
for the team to develop in a day or so
• Everything and everyone necessary to deliver
• Meets acceptance criteria
• No known defects
• No technical debt
What Do I Mean?
Backlogs Teams Working Tested Software
Teams
Backlog
Backlog
Backlog
Backlog
WorkingTested
Software
• INVEST• CCC• Small enough
for the team to develop in a day or so
• Everything and everyone necessary to deliver
• Meets acceptance criteria
• No known defects
• No technical debt
What Do I Mean?
Backlogs Teams Working Tested Software
Teams
Backlog
Backlog
Backlog
Backlog
WorkingTested
Software
• INVEST• CCC• Small enough
for the team to develop in a day or so
• Everything and everyone necessary to deliver
• Meets acceptance criteria
• No known defects
• No technical debt
What Do I Mean?
Backlogs Teams Working Tested Software
Teams
Backlog
Backlog
Backlog
Backlog
WorkingTested
Software
Why Are They Important?
Clarity Accountability MeasureableProgress
• People have clarity around what to build
• People understand how it maps to the big picture
• Teams can be held accountable for delivery
• No indeterminate work piling up at the end of the project
• 90% done, 90% left to do
Teams
Backlog
Backlog
Backlog
Backlog
WorkingTested
Software
Why Are They Important?
Clarity Accountability MeasureableProgress
• People have clarity around what to build
• People understand how it maps to the big picture
• Teams can be held accountable for delivery
• No indeterminate work piling up at the end of the project
• 90% done, 90% left to do
Teams
Backlog
Backlog
Backlog
Backlog
WorkingTested
Software
Why Are They Important?
Clarity Accountability MeasureableProgress
• People have clarity around what to build
• People understand how it maps to the big picture
• Teams can be held accountable for delivery
• No indeterminate work piling up at the end of the project
• 90% done, 90% left to do
Teams
Backlog
Backlog
Backlog
Backlog
WorkingTested
Software
Why Are They Important?
Clarity Accountability MeasureableProgress
• People have clarity around what to build
• People understand how it maps to the big picture
• Teams can be held accountable for delivery
• No indeterminate work piling up at the end of the project
• 90% done, 90% left to do
Teams
Backlog
Backlog
Backlog
Backlog
WorkingTested
Software
Why Are They Important?
Purpose Autonomy Mastery
• Understanding the backlog gives meaning to work
• Local decision making gives people a sense of power and control over their work
• People can demonstrate that they are good at what they do
Teams
Backlog
Backlog
Backlog
Backlog
WorkingTested
Software
Why Are They Important?
Purpose Autonomy Mastery
• Understanding the backlog gives meaning to work
• Local decision making gives people a sense of power and control over their work
• People can demonstrate that they are good at what they do
Teams
Backlog
Backlog
Backlog
Backlog
WorkingTested
Software
Why Are They Important?
Purpose Autonomy Mastery
• Understanding the backlog gives meaning to work
• Local decision making gives people a sense of power and control over their work
• People can demonstrate that they are good at what they do
Teams
Backlog
Backlog
Backlog
Backlog
WorkingTested
Software
Why Are They Important?
Purpose Autonomy Mastery
• Understanding the backlog gives meaning to work
• Local decision making gives people a sense of power and control over their work
• People can demonstrate that they are good at what they do
Teams
Backlog
Backlog
Backlog
Backlog
WorkingTested
Software
What Do They Look Like at Scale?
Governance Structure Metrics & Tools
• Governance is the way we make economic tradeoffs in the face of constraints
• They way we form teams and foster collaboration at all levels of the organization
• What do we measure, how do we baseline performance and show improvement?
Teams
Backlog
Backlog
Backlog
Backlog
WorkingTested
Software
What Do They Look Like at Scale?
Governance Structure Metrics & Tools
• Governance is the way we make economic tradeoffs in the face of constraints
• They way we form teams and foster collaboration at all levels of the organization
• What do we measure, how do we baseline performance and show improvement?
Teams
Backlog
Backlog
Backlog
Backlog
WorkingTested
Software
What Do They Look Like at Scale?
Governance Structure Metrics & Tools
• Governance is the way we make economic tradeoffs in the face of constraints
• They way we form teams and foster collaboration at all levels of the organization
• What do we measure, how do we baseline performance and show improvement?
Teams
Backlog
Backlog
Backlog
Backlog
WorkingTested
Software
What Do They Look Like at Scale?
Governance Structure Metrics & Tools
• Governance is the way we make economic tradeoffs in the face of constraints
• They way we form teams and foster collaboration at all levels of the organization
• What do we measure, how do we baseline performance and show improvement?
Team
Matrixed Organizations
Team
Matrixed Organizations
Non-instantly Available
Resources
Team
Matrixed Organizations
Limited Access to Subject Matter
Expertise
Non-instantly Available
Resources
Team
Matrixed Organizations
Limited Access to Subject Matter
Expertise
Non-instantly Available
Resources
Shared Requirements
Between Teams
Team
Matrixed Organizations
Limited Access to Subject Matter
Expertise
Non-instantly Available
Resources
Too Much Work In Process
Shared Requirements
Between Teams
Team
Matrixed Organizations
Limited Access to Subject Matter
Expertise
Non-instantly Available
Resources
Too Much Work In Process
Shared Requirements
Between Teams
Large Products with Diverse Technology
Team
Matrixed Organizations
Limited Access to Subject Matter
Expertise
Non-instantly Available
Resources
Too Much Work In Process
Shared Requirements
Between Teams
Technical Debt & Defects
Large Products with Diverse Technology
Team
Matrixed Organizations
Limited Access to Subject Matter
Expertise
Non-instantly Available
Resources
Too Much Work In Process
Low Cohesion & Tight Coupling
Shared Requirements
Between Teams
Technical Debt & Defects
Large Products with Diverse Technology
Team
A THEORY OF TRANSFORMATION
A Theory of Transformation
Agile is about forming teams, building backlogs, and regularly producing increments of working
tested software
A Theory of Transformation
Agile at scale is about defining structure, establishing
governance, and creating a metrics and tooling strategy that
supports agility
A Theory of Transformation
Anything that gets in the way of forming teams, building
backlogs, and producing working tested software is an impediment
to transformation
TRANSFORMATIONIS A JOURNEY
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Traditional Agile
Lean Startup
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Traditional Agile
Lean StartupLow Trust
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Traditional Agile
Lean StartupLow Trust
Become Predictable
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Traditional Agile
Lean StartupLow Trust
Become Predictable
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Lean/Agile Agile
Lean StartupLow Trust
Become Predictable
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Lean/Agile Agile
Lean StartupLow Trust
Become Predictable Reduce Batch Size
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Lean/Agile Agile
Lean StartupLow Trust
Become Predictable Reduce Batch Size
Fully Decouple
Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Lean/Agile Agile
Lean Startup
Teams
Low Trust
Become Predictable Reduce Batch Size
Fully DecouplePr
edic
tabi
lity
Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Lean/Agile Agile
Lean Startup
Teams
Low Trust
Become Predictable Reduce Batch Size
Fully Decouple
Phase One
Phase One• Stabilize the
System
Pred
icta
bilit
y
Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Lean/Agile Agile
Lean Startup
Teams
Low Trust
Become Predictable Reduce Batch Size
Fully Decouple
Phase One
Phase Two
Phase Two• Reduce Batch
Size
Pred
icta
bilit
y
Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Lean/Agile Agile
Lean Startup
Teams
Low Trust
Become Predictable Reduce Batch Size
Fully Decouple
Phase One
Phase Three
Phase Two
Phase Three• Break
Dependencies
Pred
icta
bilit
y
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Lean/Agile Agile
Lean Startup
Teams
Low Trust
Become Predictable Reduce Batch Size
Fully Decouple
Phase One
Phase Three
Phase Four
Phase Two
Phase Four• Increase Local
Autonomy
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Lean/Agile Agile
Lean Startup
Teams
Low Trust
Become Predictable Reduce Batch Size
Fully Decouple
Phase One
Phase Three
Phase Four
Phase Two
Phase Five
Phase Five• Invest to
Learn
www.leadingagile.comtwitter.com/mcottmeyer
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MIKE COTTMEYER
THE THREE THINGSAppendix A
STRUCTURE
Team Team Team Team
TeamTeamTeam
Product & ServicesTeams
Team Team Team
Team Team Team Team
TeamTeamTeam
Product & ServicesTeams
ProgramTeams
Team
Team Team Team
Team Team Team Team
TeamTeamTeam
Product & ServicesTeams
ProgramTeams
PortfolioTeams
GOVERNANCE
Team
Team Team Team
Team Team Team Team
TeamTeamTeam
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Product & ServicesTeams
Scrum
Team
Team Team Team
Team Team Team Team
TeamTeamTeam
ProgramTeams
PortfolioTeams
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
Team
Team Team Team
Team Team Team Team
TeamTeamTeam
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
KanbanTeam
Team Team Team
Team Team Team Team
TeamTeamTeam
METRICS
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
KanbanTeam
Team Team Team
Team Team Team Team
TeamTeamTeam
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
KanbanTeam
Team Team Team
• Backlog Size• Velocity• Burndown• Escaped Defects• Commit % Ratio• Acceptance % Ratio• Scope Change
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
KanbanTeam
• Cycle Time• Features Blocked• Rework/Defects• Backlog Size• Velocity• Burndown• Escaped Defects• Commit % Rate• Acceptance % Ratio• Scope Change
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
Kanban
• Backlog Size• Velocity• Burndown• Escaped Defects• Commit % Ratio• Acceptance % Ratio• Scope Change
• Cycle Time• Features Blocked• Rework/Defects
• Takt Time/Cycle Time• Time/Cost/Scope/Value• RIO/Capitalization
BELIEFS
Teams
Backlog
Backlog
Backlog
Backlog
WorkingTested
Software
How Do I Need to Change?
• Known and knowable requirements
• How to deal with unknowns
• Estimating
• Fungible resources
• Individual utilization
• Productivity metrics
• Activity over outcome
Defining Work
Allocating People
MeasuringProgress
Teams
Backlog
Backlog
Backlog
Backlog
WorkingTested
Software
How Do I Need to Change?
• Known and knowable requirements
• How to deal with unknowns
• Estimating
• Fungible resources
• Individual utilization
• Productivity metrics
• Activity over outcome
Defining Work
Allocating People
MeasuringProgress
Teams
Backlog
Backlog
Backlog
Backlog
WorkingTested
Software
How Do I Need to Change?
• Known and knowable requirements
• How to deal with unknowns
• Estimating
• Fungible resources
• Individual utilization
• Productivity metrics
• Activity over outcome
Defining Work
Allocating People
MeasuringProgress
Teams
Backlog
Backlog
Backlog
Backlog
WorkingTested
Software
How Do I Need to Change?
• Known and knowable requirements
• How to deal with unknowns
• Estimating
• Fungible resources
• Individual utilization
• Productivity metrics
• Activity over outcome
Defining Work
Allocating People
MeasuringProgress
IMPEDIMENTS
Teams
Backlog
Backlog
Backlog
Backlog
WorkingTested
Software
What Gets in the Way?
BusinessDependencies
OrganizationalDependencies
TechnicalDependencies
• Requirements management
• Process flow• Value streams• Bottlenecks• Too much in
process work
• MatrixedOrganizations
• Non instantly available resources
• Lack of SME
• Technical Debt
• Defects• Tight Coupling• Low Cohesion
Teams
Backlog
Backlog
Backlog
Backlog
WorkingTested
Software
What Gets in the Way?
BusinessDependencies
OrganizationalDependencies
TechnicalDependencies
• Requirements management
• Process flow• Value streams• Bottlenecks• Too much in
process work
• MatrixedOrganizations
• Non instantly available resources
• Lack of SME
• Technical Debt
• Defects• Tight Coupling• Low Cohesion
Teams
Backlog
Backlog
Backlog
Backlog
WorkingTested
Software
What Gets in the Way?
BusinessDependencies
OrganizationalDependencies
TechnicalDependencies
• Requirements management
• Process flow• Value streams• Bottlenecks• Too much in
process work
• MatrixedOrganizations
• Non instantly available resources
• Lack of SME
• Technical Debt
• Defects• Tight Coupling• Low Cohesion
Teams
Backlog
Backlog
Backlog
Backlog
WorkingTested
Software
What Gets in the Way?
BusinessDependencies
OrganizationalDependencies
TechnicalDependencies
• Requirements management
• Process flow• Value streams• Bottlenecks• Too much in
process work
• MatrixedOrganizations
• Non instantly available resources
• Lack of SME
• Technical Debt
• Defects• Tight Coupling• Low Cohesion
