Agile is becoming increasingly common these days. In many organizations as much as half of all work is done in an agile fashion. At first, agile usually operates inside a traditional project framework. Over time, however, most companies start experimenting with stable teams and even teams-of-teams. There are huge potential benefits to this stability in terms of speed, throughput, quality, and employee morale. But it fundamentally breaks traditional funding, staffing, and accountability mechanisms at many companies and new approaches are required. In this talk, Jon Terry will explain how the project model is meant to work and why it can break down, and compare it to the product, solution, or value stream model that is the increasingly common modern approach. He will propose new and powerful accountability mechanisms that can contribute to true business Agility.

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Making the Product Shift
What the heck does that mean?
Jon Terry, Chief Evangelist – Lean-Agile Strategy, Planview

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Transforming with Planview WRM
THE CHANGING
WORLD
OF WORK REALIZING
AGILE-AT-SCALE
CREATING AN
INNOVATION CULTURE
STRATEGY
Innovation
Management
MAKING THE
PRODUCT SHIFT

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Increasing Agile Adoption
Title, Forrester Research, Inc. , Date of Publication

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Expanding Agile Success
Results
• More innovation relative to routine operations
• React to change faster
• Increased responsiveness to customer needs
• Greater efficiency and productivity
What if a company were to
launch dozens, hundreds,
or even thousands of agile
teams throughout the
organization?
Would scaling up agile
improve corporate
performance as much as
agile methods improve
team performance?
Harvard Business Review Agile at Scale, Darrell K. Rigby, Jeff Sutherland, Andy Noble, Accessed June
2018

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Making the Product Shift
Gartner Move Away From Waterfall to Agile and Product-Centric Delivery Methods, Matthew Hotle, Nathan Wilson, 26 September 2018
All statements in this report attributable to Gartner represent Planview’s interpretation of data, research opinion or viewpoints published as part of a syndicated subscription service by Gartner, Inc., and have not
been reviewed by Gartner. Each Gartner publication speaks as of its original publication date (and not as of the date of this presentation). The opinions expressed in Gartner publications are not representations
of fact and are subject to change without notice.

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Allocating resources to work

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Why we have central IT budgeting

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Finance Drives Annual Planning

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Project funding assumption
Business
Case Estimate

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Project funding assumption
Business
Case 1
Business
Case 2

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Stack ranking

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Allocations and Resource Pools
CIO
Business
Analysis
Resource
Resource
Resource
Resource
Development
Resource
Resource
Resource
Resource
Testing
Resource
Resource
Resource
Resource
Operations
Resource
Resource
Resource
Resource
Etc
PMO
Project 1
Project 2
Project 3
Project 100
The
Business

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Stack ranking

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Project success metrics
Actuals Estimate

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Project success metrics
Actuals Estimate

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Real Results are Rarely Reviewed
Business
Case

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Drawbacks of project funding
● Annual budgeting is slow and inflexible
● In a profitable market opportunity cost
vastly outweighs project expenses
● Temporary nature of project teams
doesn’t support continuous improvement
● Focus on the project iron triangle (time,
cost, scope) and division into
development vs support organizations
encourages technical debt
● No accountability for true outcomes
Projects

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Letting work flow through teams

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These days we have

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And we are

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Long-lived, cross functional teams
Squads, Pods,
Crews etc
Has design, develop, test, and
deploy skills for 80% of work
SAFe assumes about 10 people
Work assigned to the squad not
squad members
May be Scrum or Kanban
Member can belong to only 1 squad
Front End Devs
QA &
DevOps
Back End Devs
PM & Design

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In long-lived Teams-of-Teams
ART, Flight, Tribe
Agile Release Train
5-12 teams
50-120 people
Below that, too much overhead
Above that, Dunbar’s number and
practical challenges with meetings
Go Kanban!
Go Scrum!

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Operational VS

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An easy test

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Development VS

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Team of
Teams
Measuring Effectiveness

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Measuring Benefit Realization
Team of
Teams Q1 Q2 Q3 Q4 And So On
Epics
Features
Early Indicators
Funnel KPIs
Revenue / Savings

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Early Indicators

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Eg. SaaS Funnel KPIs

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Capacity Planning

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Value Stream Funding
Q1 Q2 Q3 Q4 And So On
Big Product 12 (max) 12 (max) 12 (max) 10 10
Product
Family 1
7 7 5 (min) 5 (min) 6
Product
Family 2
6 6 5 (min) 5 (min) 6
The Next Big
Thing
1 1 4 6 9
Total 26 teams 26 teams 26 teams 26 teams 30 teams

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And maybe flocks

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Too big to be Agile

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Just following the leader

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Sadly, not following the leader

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Autonomy with purpose

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Thank You!
Connect: Jon Terry, Chief Evangelist – Lean-Agile Strategy, Planview
Follow: @leankitjon
Read: Agile PMO: 5 Steps to Driving Agility at Scale
Explore: planview.com/lean-agile-delivery

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Career Management: Functions still matter
Career Management
Hiring
Training
Standards
Mentoring
Squad
Delivery
Has skills for 80% of work - X-
Functional or Service Center
Located together (physically or
virtually)
Work assigned to the squad not
squad members
Member can belong to only 1 squad
Guild