1. Agile Executive Roundtable
State of the Agile Nation
May 28, 2013

2. Agile is now… where
are we today?

3. We are seeing more and more organizations continue adopting agile
to meet rapidly increasing demand and challenges in IT
VersionOne: State of Agile Survey (2011, n=6000+), percentages show option respondents marked as ‘Highest Important’ -
- 3 -
“We need to deliver
more value driven
services”
“We need to offer
faster and more
responsive services”
“We need to reduce
our costs and
become more
efficient”
$
Challenges of Today How Agile Helps
39%
37%
29%
26%
23%
http://www.versionone.com/pdf/2011_State_of_Agile_Development_Survey_Results.pdf
18%
Accelerate Time to Market
Manage Changing Priorities
Increase Productivity
Better Align IT / Business
Enhance Software Quality
Project Visibility
Delivering
Business
Value
Focuses on delivering the highest business
value in the shortest time.
Rapid and
Repeatable
Processes
Enables rapidly and repeatedly inspecting
actual working software (every two weeks to
one month).
Self-
Organization
The business sets the priorities. Teams self-organize
to determine the best way to deliver
the highest priority features.
Working
Software
Every two weeks to a month anyone can see
real working software and decide to release it
as is or continue to enhance it for another
iteration/sprint.
Top Benefits of Agile

4. Your agile isn’t my agile… the adoption of agile is uneven and
inconsistent across organizations
The agile ecosystem is diverse and complicated
Incremental Development
Iterative Development
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Scrum
eXtreme Programming
Kanban
Lean Software Development
RUP
DevOps
Continuous Delivery
Feature Driven Development Lean Startup
Home-brewed Small “a” agile Big “A” Agile Methods Leading Edge Agile
What do each of
these really
mean to my
organization?
Impact of Change
Medium
Low
Low
High
Medium
Medium
High
High
High
Process
People
Technology

5. Lots of whitespace remains … Organizations adopting agile are not
fully unlocking the potential of agile methods
Planning Requirements Design Business Development Testing Implementation
Casing
Big “A” Agile Methods
- 5 -
Processes
converted to agile
Operations
Processes still
waterfall
Iterative Development
Tooling improvement
whitespace for increasing
agility
Process improvement
whitespace for increasing
agility
Majority of Agile
Adoption Today
Incremental Development
Lean Startup with Agile
Moving Agility to the Business Moving Agility to Engineering

6. Barriers to change… Doing agile is easy, being agile is hard
Organizational adoption and applicability is where the rubber hits the road
VersionOne: State of Agile Survey (2011, n=6000+), respondents were allowed to choose multiple options
http://www.versionone.com/pdf/2011_State_of_Agile_Development_Survey_Results.pdf
- 6 -
Adoption
Applicability
 “Alien” and even threatening
 Is an extremely large paradigm shift
 Many pay lip service only
“You’ve been doing it wrong”
“We can’t or won’t do that here”
 Agile misapplication or Agile flaw?
 Big “A” Agile is a challenge in many
contexts
A large range of IT projects are
not benefiting from agile

7. The road to success? Take a different approach to agile adoption
Successful agile adoption requires changing everything on day one: Fact or fiction?
 Being agile is about delivering greater business value and not just the process
 Your context matters, there is no one “right” approach to agile adoption
 The organization needs to own and define what agile means
We have been working with a number of different organizations unlock the benefits of agile
based on their pace of change using Kanban
The results: These organizations are making agile work the they want
Public Sector Banking Insurance
- 7 -
We want more delivery
agility, but we don’t want Big
“A” Agile
Everything is broken, it’s
time for a rethink
Story #1 – Agile without big
change
Story #3 – Agile is what we
want to be
Story #2 – Agile to Product
Development
We’re not sure we are
building the right thing, we
want to be more agile in
how we define our products

8. Kanban: Start with what
you do today

9. Successful change is hard – Being “agile” towards change is
essential
- 9 -
Old Performance
New Performance
Initiative Stops
Current State
Our approach to change Target State
Time
Performance
 Massive disruption to the organization
 Depends on getting it right from the beginning
 Requires long-term stability in leadership and
patience from clients
A big bang approach to change can foster cultural resistance and other change
risks

10. One of the key drivers for fast incremental change is to “do more
with less” by focusing on reducing waste to generate improvement
Reducing the amount of work-in
progress – stop starting, start finishing
- 10 -
Focus on flow,
remove bottlenecks
and reduce cycles
Visualize the work and start increasing
feedback and collaboration
Give all levels of staff
the ability to improve
the work environment
Identify performance
improvement
opportunities based on
measurable results

11. Kanban is an agile approach to change that focuses on visualization
and limiting work to drive out bottlenecks and improvements
Work is blocked Work is blocked Work is blocked Bottleneck Team is idle
(3) (4) (3) (2)
- Developers must
put current work
on-hold if a high
severity defect is
found in test.
- 11 -
- Work tickets must
be reviewed once
every two weeks.
- Only 1 work ticket
can be assigned to
any tester at any
given time.
New Build
Issue Support
(6)
System
Maintenance
Install/Patch Configure Data Load Verify Deploy
IP Done IP Done IP Done IP Done
(12)
(5)
(2) (1) (3) (3)
Input Queue
Test
Done
Development UAT
Requirements
& Analysis
(8) IP Done IP Done IP Done IP Done
B
D
Board Policies
B

12. Kanban is supported by metrics and measurements to provide a
measurable approach to validate improvements
Time to Market KPIs Quality KPIs
- 12 -
Do
Plan
Check
Act
Kaizen
Current Prior Trend Current Prior Trend
Delivery Lead Time 5 days 8 days Blockers per Feature 1 0.5
Analysis / Dev. Cycle Time 3 days 5 days Blocker Cycle Time 1 day 1 day
Test Cycle Time 1 day 1 day Defects per Feature 0.5 1
Wait Time Per Feature 1 day 2 day Defect Cycle Time 1 day 2 days
Delivery Throughput 5/mth 5/mth Capacity Load 5 4
Feature Target Conformance % 25% 50%
1.2
1
0.8
0.6
0.4
0.2
0
Delivery Lead Time
Jan Feb Mar Apr May Jun Jul
1.5
1.0
0.5
0.0
Delivery Throughput vs. Backlog
Jan Feb Mar Apr May Jun Jul
Delivery Throughput Backlog
Issues & Defects per Feature
1.5
1
0.5
1.2
5
1.0
4
0.8
3
0.6
2
0.4
1
0.2
0.0
WIP per FTE
Jan Feb Mar Apr May Jun Jul
0
Jan Feb Mar Apr May Jun Jul
Blocker per Feature Defect per Feature
0
Jul Aug Sep Oct Nov Dec Jan

13. Agile from the trenches
Story#1: Optimizing a
service based
organization

14. Public sector organization looking to optimize their consolidation
strategy and not looking for big “A” agile change
Dept. A Dept. B Dept. C Dept. D
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Target Outcomes
 Cost Reduction
 Operational Efficiency
 Economies of Scale
But also at a cost…
Undesirable Outcomes
 Long delivery times
 Decline in service
responsiveness
 Inconsistent execution
Cluster
Cluster
Dept. A Dept. B Dept. C Dept. D
IT
Delivery
Group
A
IT
Delivery
Group
B
IT
Delivery
Group
C
IT
Delivery
Group
D
IT Cluster
IT
Delivery
Group A
IT
Delivery
Group B
IT
Delivery
Group C
IT
Delivery
Group D
Common
Services
How do we leverage our consolidation and get faster, better and cheaper?

15. Kanban was implemented for each service group to kickstart the
improvement process and enable the organization to improve itself
- 15 -

16. As a result, the Kanban systems allowed the organization to create
real-time blueprints of how work flowed across the organization
- 16 -
Geographic Information Systems
Geographic Information System (GIS) COE
Completed this Quarter
Work Packages
Test
Under Test
GIS COE Plan and Build
Requirements Design Develop
Team JWAHD
Requirements Design Build
Team RPG
Requirements Analysis / Design Build / Code
Team KGSR
Requirements Documentation Completed
Data Class Work Cel
Analysis / Design
Work Package Intake and Prioritization
Region East
NRM
Next Fiscal Mar 2012 Feb 2012 Jan 2012 This Month
GIB
Next Fiscal Mar 2012 Feb 2012 Jan 2012 This Month
Support Tickets Data
Application
Regional North
Next Fiscal Mar 2012 Feb 2012 Jan 2012 This Month
Regional Central
Next Fiscal Mar 2012 Feb 2012 Jan 2012 This Month
Regional West
Next Fiscal Mar 2012 Feb 2012 Jan 2012 This Month
Data Classes Intake
Work Package Request
Processing
Concept and Definition Support
Requests
Backlog
In Progress Done
Responded
Next Fiscal Mar 2012 Feb 2012 Jan 2012 This Month
In Progress
Define Physical Design &
Scripts for Dissemination
DB
LIO Implementation &
Development
SNIF Report Approval NRVIS Implementation &
Development
Promote
to Test
Ready for
Test
Ongoing
Promote
to Staging
Ready for
Production
Completed
Cancel ed / On Hold
On Hold Cancel ed
Defects
Completed this Year
Work Packages
Completed
Cancel ed / On Hold
On Hold Cancel ed
Defects
This Month
Next Month
Later
SD
Required
No SD
Required
Continuing
Of Ramp
In Progress
New Work
Package
Partial y
Done
Underway
New Work
Package
Partial y
Done
Underway
New Work
Package
Partial y
Done
Underway
New Work
Package
Partial y
Done
Underway
New Work
Package
Partial y
Done
Underway
Data
Project Data Class
Enhancement
Review
Completed
In Progress Completed In Progress Completed
Report
Created
Approval in
Progress
Approval
Completed
In Progress Completed
Input
Queue
Analysis
Required
Development
Queue
In Progress Completed
SRS Doc Test Case
In Progress
Client
Review
Sign-Of /
Completed
In Progress
Review
(Client /
Dev / Arch)
Completed In Progress Completed
In Progress
Waiting for
Approval
Done In Progress Done In Progress
Client / BA
Review
Completed
Application
Data Class
Team AA
Team BN
Team AA
Team BN
Iteration
Completed
Defect Found
Application
Data Class
Ready for
Stage
Testing
Stage
Testing
Application
Data Class
Production
Sign-Of
Resolved
Postponed
Resolved
Postponed
Archive
Continuing
Of Ramp
Java Centre of Excellence
In Progress Done
In Progress Fix MRF Done
Application Maintenance and Operations (AMO)
Completed
This
Quarter
Maintenance and Support
AMO NRM Work Cell
Delivery Work
Support Tickets
MRF
Analyze Support Work
Enhance / Adapt / Correct Work
MRF
In Progress Fix MRF Done
Work Queue Coding Config Stage Testing
App Release Work
In Progress
Promote to
Test
AMO NRM
Next (Bi-Weekly) Within Next 2 Weeks Promote Verification Feedback
Infrastructure / Software Work
Planning and Work Package Definition
Support Work Package Backlog
Non-Support Work Package Backlog
In Progress Done
Concept and Ready for Planning and Analysis
Definition /
Consulting
In Progress Later Next
In Progress Done
RFC / RFSE Process
Project Based Work
Internal M&S Work
AMO NRM
External
Ready for
Test
Test
External
In Progress
To Be Resolved
AMO Work
Packages
Defects
Completed
This Year
AMO Work
Packages
Defects
Concept and
Definition
Requests
Concept and
Definition
Consulting /
Support
Project-
Based Work
Internal
M&S
Project-
Based Work
Internal
M&S
Project-
Based Work
Internal
M&S
Project-
Based Work
Internal
M&S
On-Hold Work Packages
Next (Monthly) Within Next 30 Days Assessment
Prepare RFC
Prepare RFSE
Waiting for External
Conduct Follow-Up
Activities
Next
(Monthly)
Within Next
30 Days
Next
(Monthly)
Within Next
30 Days
In Progress Done
AMO NRM
Ready for
Test
External
Ready for
Test
AMO NRM
External
Ready for
UAT
UAT Testing
Promote to
Staging
In Progress Done
Promote to
PRD
Next (Bi-Weekly) Within Next 2 Weeks
NRM Analysis / Support /
Resolution
External Analysis / Resolution
Enhance / Adapt / Correct Work Needed
for Resolution
AMO
Consulting
Tickets
Completed
Completed
Cancelled
Resolved
Postponed
AMO
Consulting
Tickets
Completed
Completed
Cancelled
Resolved
Postponed
Work
Packages
Completed
Cancel ed /
On Hold
Archive
Procurement
ASAN, RFS Preparation (& AAAN & SOW Preparation
SSCPB)
Distant
To Do
ASAN
RFS
SSCPB
TBD Evaluation
AAAN Prep & Circulation
SOW
Vendor On-
Boarding
Archive
Projects
RFS
SOW
Immediate
To Do
Request
Assess
Waiting
Assessment
Done
In Progress
Waiting for
Legal, etc.
Done
In Progress
Waiting
(Review /
Signatures)
Done
Waiting for
Vendor
Submission
Evaluation
Prep
Waiting
Evaluation
Consolidating
Eval.
In Progress
Waiting
Legal
Review
Finalize
In Progress
Waiting for
Signatures
Done
In Progress Done
Projects
RFS
SOW
SSCPB
Java COE
Completed Archive
This
Quarter
Java Workflow System Testing UAT
Java Migration / New Feature
Preparation WP Test in Progress
Requirements Analysis
Infrastructure Setup
Input Queue
Backlog Next
Implement Solution
Architecture Work
Define Detailed
Requirements
Technical Analysis
Design Build
WP Testing
Build Documentation
MRFs
Code Promotion
Work Packages
Non Functional Testing
Work Packages
Promotion
UAT Test
Release
Defects
Completed
This Year
Work
Packages
Completed
Cancel ed /
On Hold
Defects
Completed Work
Packages
Defects
Next Work
Packages
Work
Packages
Solution Engagement ITS Review Identify Options
Staging
Production
Design Proof of Concept Done
In Progress
Business
Feedback
Review Done
In Progress Done
In Progress Done In Progress Done
Code
Review &
Promotion
WP Dev
Completed
& Ready for
WP Test
Review Fix
In Progress Done
Work
Package
Complete
In Progress User Demonstration MRF Complete
In Progress Done
In Progress
Fix Work
Package
Done
In Progress
Fix Work
Package
Done
Ready for
Promotion In Progress Done
In Progress Done
UAT Fix
Prepare
RFC
RFC
Submitted
RFC
Approved
Resolved
Postponed
Resolved
Postponed
Resolved
Defects
Unresolved
Defects
Data Management and Reporting (DM&R)
Data Management and Reporting Kanban
BI / OLAP / OLTP
New Build & Enhancement
Data Extract Request
Execution
BI / OLAP / OLTP Other Work
In Progress Review
Application Support Work
In Progress
In Progress on Java Capability Board
Tabular / Spatial
Tabular / Spatial Projects or Enhancement
Requirements
Tabular / Spatial Data Loading
Build / Load
Tabular / Spatial Other Work
In Progress Review
Tabular / Spatial Support Work
In Progress on GIS Capability Board
Level 1 Issue Support
Level 2 Issue Support & Data/App Maintenance
Database Implementation / Maintenance
Infrastructure & Software Instal /Upgrade/Deployment
Instal / Config / Deploy / Verify
(dev/test)
Input Queue
Delivery Work
Concept Definition / Consulting Support
Concept & Definition
Concept &
Definition
Requests
DM&R SD Required WP Request Form
In Progress Done
Review
Progress
C&D Consulting Support
Business / Ministry
Other Application Delivery Groups
Internal DM&R
Issue Support
Analysis / Review
Internal
Instal / Configure / Deploy (prod)
Internal
Verify
Internal
Database Creation Instal /Patch Configure/Build Data Load Verify
Internal
Deploy to Prod
Internal
Analysis Coding / Configure
Internal
Test
Internal
UAT / Staging / Prod Prep Deploy to Prod
Internal
Verify
Internal
Analysis / Support / Resolution To Be Resolved
Source Data Acquisition
Internal
Backup / Verify
Internal
Deploy to Prod (External)
Internal
Internal
Requirements Review /
Analysis
Design / Build Test (External) Staging & Prod Prep Deploy to Prod Verify
Internal
BI / OLAP / OLTP Support Work
Analysis Design / Build
Internal (dev/test/prod)
Review
Internal
Requirements
Internal
Requirements Review /
Analysis
Design / Build / Config Test UAT Deploy to Pro
Internal
Verify
Internal Verify
Completed
This
Quarter
Work
Packages
Completed
Cancel ed /
On Hold
Defects
Completed
This Year
Work
Packages
Completed
Cancel ed /
On Hold
Defects
This Month
Next Month
Later
In Progress Done
Responded
On Hold
Within 4
Months
Within 2
Months
This Month
Within 4
Months
Within 2
Months
This Month
Within 4
Months
Within 2
Months
This Month
Within 4
Months
Within 2
Months
This Month
In Progress Done In Progress Done
External
In Progress Done
External
In Progress Done
Client Verify
In Progress Done In Progress Done In Progress Done In Progress Done In Progress Done
Client Verify
In Progress Done
Non DM&R
In Progress Done In Progress Done
Non DM&R
In Progress Done
Non DM&R (Test Group)
In Progress Done In Progress Done
Non DM&R
In Progress Done
Non DM&R
Internal
Non DM&R
Internal
Non DM&R
In Progress on AMO Capability Board
In Progress Done
In Progress Done
Non DM&R
In Progress Done
Non DM&R
In Progress Done
Non DM&R
In Progress Done
Client Verify
In Progress Done In Progress Done
Promote to
Test
In Progress Done In Progress Done In Progress Done
In Progress Done
Client Verify
In Progress on GIS Capability Board
In Progress Done In Progress Done
In Progress Done
Non DM&R (prod)
In Progress Done
Client Verify
In Progress Done
Client Feedback
In Progress Done
Dev Ready
In Progress Done
Promote to
Test
In Progress Done
Promote to
UAT
In Progress Done
In Progress Done
Non DM&R
In Progress Done
Client Verification
Resolved
Postponed
Resolved
Postponed
Lotus Notes
Maintenance and Operations
Procurement
Data Management and Reporting

17. Agile from the trenches:
Story #2: Learn your
way to product success

18. Financial Services Institution wanting to build a new innovative
product for mobile payments
- 18 -
Phone
manufacturers
Banks
NOT EXHAUSTIVE
• Increase interchange revenues
due to increased transactions
• Increase revenues from more
expensive hardware sales
Issuers
• Gain part of the interchange (e.g., through
real-estate fees for SIM as Secure Element)
• Create a parallel payments solution or
participate in existing payments network
(e.g., in-game purchases)
Card
Networks
• Gain part of the interchange
(e.g., by providing an eWallet)
• Gain revenues from loyalty,
couponing and ads (e.g., Google)
• Convenience, ease-of-
use and security
Merchants
Trusted Service
Managers
Mobile NFC
Ecosystem
MNOs
Independent
Players
Consumers
Acquirers
OEMs
(Handsets,
Chips, etc.)
OS / App
Developers
• Increase revenues
from managed
services
• Reduce interchange cost
• Real-time, location-based
coupons / rewards to drive
foot-traffic
• Protect margins from
interchange revenues
• Retain control over payments
space
• Protect margins from
interchange revenues
• Create a parallel payments
solution or participate in existing
payments network (e.g., PayPal)
• Increase customer loyalty (e.g.,
Starbucks)
New product idea
Generate a
product
hypothesis
Extract
assumptions
Visualize and
continuously
validate
Launch
Minimum
Viable
Product
Pursue or
pivot with a
new product
hypothesis
Lots of competitors
and partners
Complex ecosystem
How do we apply agile to help us build the right product?
The organization applied Lean Startup with Kanban to enable
high agility and feedback in the product development lifecycle
!

19. Key Partners Key Activities Product Key Metrics of
What Key Activities does our
Product Require (e.g. to Build,
to Support, etc.)?
Who are our Key Partners?
Who are our key Suppliers?
What is our Unique Value
Proposition to our Customer
Segments?
What customer problem are
we solving?
What are the major features
of our solution?
Generating the hypothesis
Market Validation
Solution Delivery
Lab Validation
Pilot
Roll-out
Marketing
Multiple
iterations
What Key Resources [People)
and Capabilities [Process]
does our Product leverage?
Internal delivery
team
Legal/Marketing/
Finance
Past products
Customer: Fast
payment, and
conveniently
available on a
phone
Merchant: Speed
of processing
customers
through lines
Issuer: Mobile
innovation and
new channel to
communicate to
debit users
What are the key metrics that
will tell us how our product
is doing?
1-2 Issuers
1K customers
1-2 merchants
10%↑ Social Media
15%↑ Web Traffic
What channels will be
leveraged to have our
Product reach our Customer
Segments?
Mobile App
Branding &
Advertising
Partner Networks
What are the most important costs drivers inherent in our Product?
Product Market
- 19 -
Success
Customer Segment
Key Resources Place / Channel
Development
services
offered as a
white labeled
solution by
Partner X
Software
developer for
SDK &
Wallet
provider
Marketing agency
to develop
collateral for
marketing
campaign and PR
Cost Price / Revenue
What are our key customer
segments and what are the
unique requirements of each
customer segment?
End Customers
Emotional spenders
Mature pragmatists
Merchants
Acquirers
Issuers
Mobile Network
Operators
Development
Test Tools
Certification
Scripting
Marketing
Legal
Merchants willing
to pay X
Customers willing
to pay Y
Acquirers & Issuers
willing to pay Z
MNOs willing to
pay A

20. Kanban was used to keep the team focused on validating
experiments fast and accelerate the transfer to development
Validation
Backlog by
common
area Plan
- 20 -
Validation

21. Agile from the trenches:
Story #3: Rebuild into
an agile organization

22. Day 0: Lots of silos, poor delivery performance, inconsistent SDLC
and urgency for real change drove an Agile Transformation
1 Manage IT delivery through
- 22 -
Tear down silos within their IT
organization and setup co-located
teams as delivery pods.
Kanban and robust metrics.
2
Build a highly collaborative
and trusting culture.
Re-orient management and staff to
leverage agile practices
3 4

23. Enterprise Kanban
A dedicated, project level Kanban system for managers and executives
The Kanban was used by Managers and executives to:
 Visualize projects and maintenance releases
 Engage in issue escalation/resolution through standups
 Limit projects based on capacity
- 23 -

24. Agile Kanban Pilot Projects
Setting up cross functional teams using a mixture of
story mapping, CRC modeling, planning poker
alongside Kanban systems
Project teams adopted agile practices to
 Decompose work using Story Mapping and BDD
 Manage projects based on velocity and user stories
 Collaboratively estimate it introduced to planning poker
 Facilitate collaborative design sessions using agile modeling techniques
- 24 -

25. Putting it all together

26. We are seeing organizations overcome these challenges to start
unlocking the full benefits of agile
Observations of patterns of success
 There is no one right “agile” approach – organizations need to adapt agile for their
environment and adopt a learning based approach to figure out what works for them
 Agile is more than just an SDLC – it’s a new way thinking and requires people to change
their definition of success and way of working
 Management needs help – managers are traditionally the execution engine of the
organization and they need support in understanding the change in their role and
management style
 Double down on improving governance – getting agile right for pilots is easy, for
organizational rollout we need a strong governance system that accelerates decision-making
- 26 -
and resolves problems fast
 Dedicated support is essential – change is hard and long, the organization needs focused
support to “coach” the people into how to learn their way to success
Being agile is about delivering greater business value and not just
following the process

27. How to get started or take your agile adoption to the next level?
Start with where you are today and take a look at Kanban
Approach
- 27 -
• Map out how technology
delivery work flows
through the organization
from ideation to delivery /
launch
• Decompose the work into
fine grained units of value
(e.g., features, stories)
• Balance demand versus
capacity based on
delivery commitments by
limiting work-in-progress
• Visualize work as it flows
through the organization
on a physical board
• Limit total work in
progress
• Identify and eliminate
bottlenecks in real-time
within projects
• Develop an evolutionary
policy framework to
support better
performance and
efficiency
• Drive collaboration and
encourage teams to
improve the process
• Implement metrics and
measurements focused
on customer value and
build a quality
management capability
• Move towards greater
predictability by
continuously improving
based on quantifiable
metrics
• Align reward and
recognition systems to
reinforce continuous
improvement culture and
adoption of new
capabilities (longer term)
Establish a System of
Work
Visualize the Work Continuously Improve

28. Thank you for your time
Key contacts for Deloitte LEAN
Alexis Hui
Deloitte LEAN Co-Lead
Manager – LEAN Practice
alhui@deloitte.ca
- 28 -