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Strategies, Models, & Principles
for Enterprise-Level Agility
Business Value of
Agile Organizations
Dr. David F. Rico, PMP, CSEP, FCP, FCT, ACP, CSM, SAFE, DEVOPS
Twitter: @dr_david_f_rico
Website: http://www.davidfrico.com
LinkedIn: http://www.linkedin.com/in/davidfrico
Agile Capabilities: http://davidfrico.com/rico-capability-agile.pdf
Agile Cost of Quality: http://www.davidfrico.com/agile-vs-trad-coq.pdf
DevOps Return on Investment (ROI): http://davidfrico.com/rico-devops-roi.pdf
Dave’s NEW Business Agility Video: http://www.youtube.com/watch?v=hTvtsAkL8xU
Dave’s NEWER Scaled Agile Framework SAFe 4.5 Video: http://youtu.be/1TAuCRq5a34
Dave’s NEWEST Development Operations Security Video: http://youtu.be/X22kJAvx44A
DoD Fighter Jets versus Amazon Web Services: http://davidfrico.com/dod-agile-principles.pdf
Author Background
 Gov’t contractor with 35+ years of IT experience
 B.S. Comp. Sci., M.S. Soft. Eng., & D.M. Info. Sys.
 Large gov’t projects in U.S., Far/Mid-East, & Europe
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 Career systems & software engineering methodologist
 Lean-Agile, Six Sigma, CMMI, ISO 9001, DoD 5000
 NASA, USAF, Navy, Army, DISA, & DARPA projects
 Published seven books & numerous journal articles
 Intn’l keynote speaker, 200+ talks to 14,500 people
 Specializes in metrics, models, & cost engineering
 Cloud Computing, SOA, Web Services, FOSS, etc.
 Professor at 7 Washington, DC-area universities
Business Agility—Mike Tyson
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Business Agility—Related Quotes
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● Everybody has a plan until I punch them in the mouth
-- Mike Tyson
● It's tough to make predictions, especially about the future
-- Mark Twain
● A good plan violently executed today is better than a perfect plan tomorrow
-- George Patton
● You can't predict the future, because it's becoming more unpredictable
-- William Fulmer
● Those who have knowledge don't predict, those who predict don't have knowledge
-- Lao Tzu
● Some things are so unexpected that no one is prepared for them
-- Leo Roste
● Forecasters aren't smart, they merely have their ignorance better organized
-- Anonymous
● The herd instinct among forecasters makes sheep look like independent thinkers
-- Edgar Fiedler
● It's best to be bold instead of right, because most people are wrong anyway
-- Dave Rico
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Business Agility Drivers
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Overruns
Attrition
Escalation
Runaways
Cancellation
Global
Competition
Demanding
Customers
Organization
Downsizing
System
Complexity
Technology
Change
Vague
Requirements
Work Life
Imbalance
Inefficiency
High O&M
Lower DoQ
Vulnerable
N-M Breach
Reduced
IT Budgets
81 Month
Cycle Times
Redundant
Data Centers
Lack of
Interoperability
Poor
IT Security
Overburdening
Legacy Systems
Obsolete
Technology & Skills
Pine, B. J. (1993). Mass customization: The new frontier in business competition. Boston, MA: Harvard Business School Press.
Pontius, R. W. (2012). Acquisition of IT: Improving efficiency and effectiveness in IT acquisition in the DoD. Second Annual
AFEI/NDIA Conference on Agile in DoD, Springfield, VA, USA.
Today’s Global Marketplace
 Most of world’s population connected to Internet
 Systems must support billions of simultaneous users
 New approaches are needed to scale to global market
6Kemp, S. (2016). Digital in 2016: We are social's compendium of global digital, social, and mobile data, trends, and statistics. New York, NY: We Are Social, Inc.
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Internet of Things—Dinosaur Killer
IoT is an Extinction Level Event
• 25-50B Devices on IOT
• 5-10B Internet Hosts
• 4-8B Mobile Phones
• 2-3B End User Sys
• Mass Business Failure
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Business Agility—Newton’s 3rd Law
THE SATIR CURVE
71%
56%
SERVICES
71%
MANUFACTURING
Exponential
Technology
Change
Exponential
Market
Destabilization
Exponential Business Failures (1990s) Exponential Business Failures (2000s)
Singularity
Business Agility Justification
9Langley, M. A. (2012). Organizational agility: Pulse of the profession (in-depth report). Newtown Square, PA: Project Management Institute.
Glenn, M. (2009). Organizational agility: How business can survive and thrive in turbulent times. London, UK: The Economist.
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What is Business Agility?
 A-gil-i-ty (ә-'ji-lә-tē) Property consisting of quickness,
lightness, and ease of movement; To be very nimble
 The ability to create and respond to change in order to
profit in a turbulent global business environment
 The ability to quickly reprioritize use of resources when
requirements, technology, and knowledge shift
 A very fast response to sudden market changes and
emerging threats by intensive customer interaction
 Use of evolutionary, incremental, and iterative delivery
to converge on an optimal customer solution
 Maximizing BUSINESS VALUE with right sized, just-
enough, and just-in-time processes and documentation
Highsmith, J. A. (2002). Agile software development ecosystems. Boston, MA: Addison-Wesley.
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What is Business Agility?
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 People-centric way to create innovative solutions
 Product-centric alternative to big work-in-process
 Market-centric model to maximize business value
Hearrell, R. (2015). Building enterprise agility. New York, NY: PricewaterhouseCoopers.
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Business Agility Dimensions
 “Agility” has many dimensions other than IT
 It ranges from leadership to technological agility
 Today’s focus is on organizational & enterprise agility
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Agile Leaders
Agile Organization Change
Agile Acquisition & Contracting
Agile Strategic Planning
Agile Capability Analysis
Agile Program Management
Agile Tech.
Agile Information Systems
Agile Tools
Agile Processes & Practices
Agile Systems Development
Agile Project Management
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● Flexible Manufacturing
● Operations Research
● Incremental Planning
● Customer Focus
● Early Beta Testing
● Empowerment
● Lean Thinking
● Evolutionary Biology
● Complex Adaptive Systems
● New Product Development
● Chaos Theory
● Emergence
● Innovation
● Motivation
● Strategic Planning
● Organization Development
● Project Management
● Systems Engineering
● Software Engineering
● Quality Management
● Information Technology
Business Agility Antecedents
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Business Agility Timeline
1995 2000 2005 2010 2015 2015
Structured Chaos
Judo Strategy
Adaptive Enterprise
Agile Organization
Good to Great
Response Ability
Mobile Business
Agile Business
Corporate Agility
Fast Strategy
Business Agility
Motivational Drive
Agility Factor
Agility Advantage
Holocracy
Agility Shift
SEAM
Government Agility
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Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies. Retrieved March 1, 2016, from http://davidfrico.com
Business Agility Definitions
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No Year Model Author Definition
1 1997 Structured Chaos Brown Reacting responsibly to, anticipating, and dictating the pace of change
2 1998 Judo Strategy Cusumano Using speed and agility to mitigate effects of a company's competitors
3 1999 Adaptive Enterprise Haeckel Ability of large complex organization to systematically adapt to change
4 2000 Agile Organization Fulmer Sense making for success by understanding landscape, learning, & leading
5 2001 Good to Great Collins Increasing performance standing by disciplined thought, people, and action
6 2001 Response Ability Dove Intellectual and physical ability to act upon knowledge for business success
7 2002 Mobile Business Evans Confluence of business processes, e-commerce, and wireless communications
8 2003 Agile Business McCarthy Common ability to maintain a steady course in the face of economic change
9 2007 Corporate Agility Grantham Creating new products and markets faster than competitors by reducing costs
10 2008 Fast Strategy Dos Striking with strength and speed through strategy, commitment, and fluidity
11 2009 Business Agility Hugos Ability to respond and act quickly to capitalize on new opportunities
12 2009 Motivational Drive Pink Strategy of empowering people with autonomy, mastery, and purpose
13 2014 Agility Factor Worley Ability to make timely, effective, and sustained organizational changes
14 2014 Agility Advantage Setili Seeing and responding to market changes capably and quickly than others
15 2015 Holacracy Robertson Governance structure for semi-autonomous teams enabling rapid adaptation
16 2015 Agility Shift Meyer Competence, capacity, and confidence to learn, adapt, and innovate
17 2015 SEAM Worley Ability to make timely, effective, and sustainable organizational changes
18 2015 Government Agility Rico Adapting to change by reducing scope, outsourcing, and collaboration
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 Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies. Retrieved March 1, 2016, from http://davidfrico.com
16
Business Agility Attributes
Category Attribute 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Strategic
Agility
Objective             
Experiments         
Vision-Strategy            
Time Based    
Change-Adapt           
Customer Focus    
Relationships        
Cultural
Agility
Leadership      
Talent       
Purpose         
Collaborative   
Communication       
Empowerment         
Improvement      
Process
Agility
Continuous 
Iterative        
Operational       
Lightweight 
Disciplined  
Improving        
Automation  
Product &
Service
Agility
Fewer   
Smaller   
Modular    
Flexible    
Reconfigurable    
Inexpensive   
Throwaway   
Technology
Agility
Software   
Open Source   
Microservices   
Commercial   
Reusable   
Cloud Computing   
Mobile   
IT Infrastructure
Agility
Intranet      
Internet      
Text      
Email      
Cellphone      
Video      
Workflow      
Organization
Design
Agility
Narrow    
Flatter   
Networked   
Organic   
Self Organizing   
Cross Functional    
Light Governance        
Capital
Infrastructure
Agility
Virtual    
Telepresence    
Outsourced    
Offshoring    
Global    
Public    
Leased    
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Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies. Retrieved March 1, 2016, from http://davidfrico.com
4. PRODUCT & SERVICE AGILITY
Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies. Retrieved March 1, 2016, from http://davidfrico.com
 Created by Dave Rico in 2015-16
 Metamodel analysis of 18 major approaches
 Product, technology, & infrastructure major themes
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Business Agility Metamodel
 Fewer
 Smaller
 Modular
 Flexible
 Reconfigurable
 Inexpensive
 Throwaway
6. IT INFRASTRUCTURE AGILITY
 Intranet
 Internet
 Text
 Email
 Cellphone
 Video
 Workflow
1. STRATEGIC AGILITY
 Objective
 Experiments
 Vision-Strategy
 Time Based
 Change-Adapt
 Customer Focus
 Relationships
7. ORGANIZATION DESIGN AGILITY
 Narrow
 Flatter
 Networked
 Organic
 Self Organizing
 Cross Functional
 Light Governance
5. TECHNOLOGY AGILITY
 Software
 Open Source
 Microservices
 Commercial
 Reusable
 Cloud Computing
 Mobile
8. CAPITAL INFRASTRUCTURE AGILITY
 Virtual
 Telepresence
 Outsourced
 Offshoring
 Global
 Public
 Leased
3. PROCESS AGILITY
 Continuous
 Iterative
 Operational
 Lightweight
 Disciplined
 Improving
 Automation
BUSINESS AGILITY METAMODEL
 STRATEGIC AGILITY
 CULTURAL AGILITY
 PROCESS AGILITY
 PRODUCT & SERVICE AGILITY
 TECHNOLOGY AGILITY
 IT INFRASTRUCTURE AGILITY
 ORGANIZATION DESIGN AGILITY
 CAPITAL INFRASTRUCTURE AGILITY
2. CULTURAL AGILITY
 Leadership
 Talent
 Purpose
 Collaborative
 Communication
 Empowerment
 Improvement
Relationships
Partnerships, crowdsourcing,
open innovation
Customer Focus
Customer focused products and services
Change-Adapt
Change and adaption proficiency
Time Based
Fast lead and cycle times
Vision-Strategy
Clear vision and strategy
Experiments
Use of physical experiments
Objective
Clear goals and objectives
 Top-level plan to achieve enterprise-wide objectives
 Objective, experimental, temporary, & evolutionary
 Customer-focused, bottoms-up, & adaptable
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1. Strategic Agility
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Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies. Retrieved March 1, 2016, from http://davidfrico.com
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Improvement
Relentless perfection, continuous
improvement, and mastery
Empowerment
Egalitarian, ownership, and authority
Communication
Rich, high-context transparent dialogue
Collaborative
Internal and external cooperation
Purpose
Shared sense of purpose and conviction
Talent
Strong technical skills and competencies
Leadership
Visionary, servant leaders throughout
 Organizational values, ideas, beliefs, & knowledge
 Visionary leaders, talented workforce, & purposeful
 Collaborate, empower, & continuous improvement
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2. Cultural Agility
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Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies. Retrieved March 1, 2016, from http://davidfrico.com
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Automation
One-touch automation from order
through validation and delivery
Improving
Daily, weekly, and monthly retrospectives
Disciplined
Strong process and quality focus
Lightweight
Minimal essential processes necessary
Operational
Working products and services
Iterative
Time-based iterations and releases
Continuous
Continuous delivery, flow, and DevOps
 Operational steps to generate product & service
 Lean-agile discipline, quality-focused, lightweight
 Continuous flow, time-based, & highly-automated
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3. Process Agility

Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies. Retrieved March 1, 2016, from http://davidfrico.com
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Throwaway
Disposable designs with short life
spans
Inexpensive
Least expensive, value adding design
Reconfigurable
Fast and easy reconfigurability
Flexible
Flexible materials and manufacturability
Modular
Highly modularized and interchangeable
Smaller
Simple architecture and design
Fewer
Focus on fewer core competencies
 Goods or services with value organizations produce
 Simplest design, rapid & inexpensive producibility
 Core competencies, small-simple, & temporary
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4. Product & Service Agility

Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies. Retrieved March 1, 2016, from http://davidfrico.com
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Mobile
Migrate towards mobile cellular
platforms
Cloud Computing
Commercial data centers and services
Reusable
Reuse of commercial middleware services
Commercial
Mashups of commercial web services
Microservices
Small custom web services and mobile apps
Open Source
Use free and open source software
Software
Compete with software vs. hardware
 Underlying science, engineering, & materials used
 Fast, inexpensive, flexible, malleable, & evolutionary
 Software, free open source, & commercial IT services
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5. Technology Agility
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Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies. Retrieved March 1, 2016, from http://davidfrico.com
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Workflow
Simplistic workflow enterprise
applications and portals
Video
Periodic use of video conferences and webinars
Cellphone
Mobile phones for synchronous communications
Email
Use of email when necessary for reporting
Text
Use of text, chat, and other asynchronous communications
Internet
Internet services such as gmail, google docs, drop box, etc.
Intranet
Small private intranets consisting of commercial mashups
 Public or private network for business operations
 Web services, communications, & collaboration
 Internet, asynchronous, & personally-owned
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6. IT Infrastructure Agility

Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies. Retrieved March 1, 2016, from http://davidfrico.com
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Light Governance
Minimal, lightweight policies,
standards, and guidelines
Cross Functional
Small interdisciplinary problem solving teams
Self Organizing
Self selected and governed teams and collaboration
Organic
Use of temporary teams and structures
Networked
Loosely networked functions, projects, and teams
Flatter
Little to no organizational hierarchy
Narrow
Smallest possible organizational design possible
 Internal management hierarchy of organization
 Flat, small, narrow, networked, & technical focus
 Extremely flat, self-organizing, & light governance
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7. Organization Design Agility
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Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies. Retrieved March 1, 2016, from http://davidfrico.com
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Leased
Use of temporary, leased office
spaces and buildings
Public
Use of public, shared collaboration spaces
Global
International crowdsourcing and open innovation
Offshoring
Use of offshore manufacturing and free trade zones
Outsourced
Use of temporary, as-needed workforce and services
Telepresence
Use of teleworking and telecommuting
Virtual
Use of virtual, non-physical human resources
 Capital infrastructure used for business operations
 Smallest possible, outsourced, & personally owned
 Virtual, Internet-based, & commercially-outsourced
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8. Capital Infrastructure Agility
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Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies. Retrieved March 1, 2016, from http://davidfrico.com
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4. PRODUCT & SERVICE AGILITY
Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies. Retrieved March 1, 2016, from http://davidfrico.com
 Early models based on strategies & operations
 Evolved into an experimental sense & response
 Products, organization, & facilities important too
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Business Agility Metamodel Recap
Fewer, Smaller,
& Inexpensive
6. IT INFRASTRUCTURE AGILITY
Public Internet
Services Based
1. STRATEGIC AGILITY
Experimental
Sense & Respond
7. ORGANIZATION DESIGN AGILITY
Flat, Networked,
& Holocratic
5. TECHNOLOGY AGILITY
Software-Based
Microservices
8. CAPITAL INFRASTRUCTURE AGILITY
On-Demand
Teleworkers
3. PROCESS AGILITY
Lean, Agile,
& Continuous
BUSINESS AGILITY
METAMODEL
2. CULTURAL AGILITY
Collaborative &
Empowered
Business Agility Metamodel Kiviat
Objective
Experiments
Vision-Strategy
Time Based
Change-Adapt
Customer Focus
Relationships
Leadership
Talent
Purpose
Collaborative
Communication
Empowerment
Improvement
Continuous
Iterative
Operational
Lightweight
Disciplined
Improving
Automation
Fewer
Smaller
Modular
Flexible
Reconfigurable
Inexpensive
Throwaway
Software
Open Source
Microservices
Commercial
Reusable
Cloud Computing
Mobile
Intranet
Internet
Text
Email
Cellphone
Video
Workflow
Narrow
Flatter
Networked
Organic
Self Organizing
Cross Functional
Light Governance
Virtual
Telepresence
Outsourced
Offshoring
Global
Leased
Commercial
1
2
3
4
5
6
7
1. Strategic Agility8. Capital Infrastructure Agility
2. Cultural
Agility
3. Process
Agility
4. Product & Service Agility5. Technology Agility
6. IT Infrastructure
Agility
7. Organization
Design Agility
Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies. Retrieved March 1, 2016, from http://davidfrico.com
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 Late big bang integration increases WIP backlog
 Agile testing early and often reduces WIP backlog
 CI/CD/DevOps lower WIP, Cycle Time, & Lead Time
Nightingale, C. (2015). Seven lean metrics to improve flow. Franklin, TN: LeanKit.
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KANBAN BOARD CUMULATIVE FLOW DIAGRAM
LEAD TIME & CYCLE TIME PUTTING IT ALL TOGETHER
Business Agility Measures I
Increase (Commercial)
● Products & Services
● Product Safety & Reliability
● Reputation, Image, & Brand Equity
● Customers
● Marketshare
● Sales
● Revenues
● Profits
● Return on Investment
Increase (Government)
● Mission Efficiency & Effectiveness
● National Security & Safety Posture
● Identification of High-Value Targets
● Actionable Intelligence
● Intelligence Value Estimate
● Exploit Multiple Signal Sources
● Exploit Emerging Signal Sources
● Exploit Emerging Missions & Threats
● Strategic & Tactical Military Readiness
Reduce (Commercial & Gov’t)
● Technical Complexity, Scale, & Size
● Development, Test, & Evaluation Costs
● Cycle Time & Delivery Speed
● Rework, Defects, Faults, & Failures
● Cost, Schedule, & Budget Overruns
● Turnover, Attrition, & Knowledge Loss
● Programmatic & Technical Risks
● Tech Obsolescence & Legacy Sys. Cost
● Hardware & Software Purchasing Time
● Integration & Interoperability Costs
Increase (Commercial & Gov’t)
● Efficiency & Effectiveness
● Delivery Order Quantity (DoQ)
● Speed, Productivity, & Competitiveness
● Innovation, New Ideas, & Technology
● Morale, Retention, & Emp. Satisfaction
● Communication & Knowledge Sharing
● Cust. Satisfaction, Loyalty, & Retention
● Faster Tech. & Infrastructure Refresh
● Decisionmaking & Governance Speed
● Certification & Accreditation Speed 29
Business Agility Measures II
Strategic
Operational
Nadasen, D. (2015). Fiscal year 2015 fact book. Largo, MD. UMUC.
DeGruttola, M. (2015). The future of open source. Waltham, MA: North Bridge.
Sands, R. (2012). Open source by the numbers. Burlington, MA: Black Duck Software.
 Virtual enterprises have reached tipping point
 Many U.S. civilian agencies use virtual workforce
 Online, large, & have a very small capital footprint
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Business Agility Case Studies
Open Source Software Univ. of Maryland Univ. College
 95% of IT firms use open source tools
 Over 10 million open source projects
 At least 10 million contributors to open source
 Most contributors don’t have full-time day jobs
 Most contributors work from home without pay
 ~ 100 billion lines of software source code
 50% are "live" projects with active commits
 Live projects average 6.5 million lines of code
 50% of Projects are Java, C, and C++
 Dozens of open source repositories worldwide
 Most repositories offer static source code analysis
 Automatic code security analysis typically done
 Development process follows lean-agile paradigm
 Surpasses commercial code quality
 Commercial code has more severe defects
 Linux is benchmark for open source quality
 Open, Affordable, Quality Education
 One of 11 major schools in USM
 82,555 Total Students
 248,104 Course Enrollments
 31,378 Full-Time Students (38,140 UMCP)
 11,550 Annual Degrees Granted (9,700 UMCP)
 237,343 Degrees Since 1948
 Offers more than 90 types of degrees
 45% of Students are Minorities (11% UMCP)
 28% of Degrees go to Minorities
 75% of Students Work Full-Time
 54% of Students Have Children
 63% of Students Active Duty Military
 140 Worldwide Locations on Four Continents
 535,480 Square Feet (13.5m UMCP)
 MTCO2e/Student < 0.72 (6.5 UMCP)
GOVERNMENT AGILITY
 IT Infrastructure
 Facility Infrastructure
 Organization Infrastructure
 Information Infrastructure
 Resource Infrastructure
 Collaborative Infrastructure
 Cultural Infrastructure
FACILITY INFRASTRUCTURE
Rico, D. F. (2015). Dave’s notes: U.S. government agile business model. Retrieved March 1, 2016, from http://davidfrico.com
 Created by Dave Rico in 2015
 Inspired by U.S. DoD 3rd offset strategy
 Lean, collaboration, & outsourcing major themes
31

Business Agility Gov’t Example
 Leased Commercial Facilities
 Hardened Commercial Facilities
 Lease vs. Build Philosophy
 Smaller Customer Facilities
 Outsourced Facility Workforce
ORGANIZATION INFRASTRUCTURE
 Smaller Flatter Workforce
 Integrated Workforce
 Outsourced Workforce
 Collaborative Teams
 Shared Decision Making
IT INFRASTRUCTURE
 Leased Data Centers
 Leased Web Services
 Buy vs. Build Philosophy
 Smaller Custom Services
 Outsourced IT workforce
INFORMATION INFRASTRUCTURE
 Outsourced Data & Information
 Outsourced Analytics Data
 Fewer Information Sources
 Outsourced Workforce
 Buy vs. Build Philosophy
COLLABORATIVE INFRASTRUCTURE
 More Community Participation
 More International Participation
 More Information Sharing
 More Commercial Participation
 More Crowdsourcing
CULTURAL INFRASTRUCTURE
 Less Buyer-Supplier Barriers
 Less Us vs. Them Mentality
 Less Legalistic Relationships
 More Cross Functional Teams
 More Communication & Trust
RESOURCE INFRASTRUCTURE
 Smaller Resource Footprint
 Temporary Throwaway Services
 Micro Timelines & Services
 Smaller Budgets & Thresholds
 Few Capital Intensive Purchases
32
Business Agility Performance
Langley, M. A. (2014). High-cost of low performance: Pulse of the profession (a snapshot). Newtown Square, PA: Project Management Institute.
Hoque, F., et al. (2007). Business technology convergence. The role of business technology convergence in innovation
and adaptability and its effect on financial performance. Stamford, CT: BTM Corporation.
33
 Study of 15 agile vs. non-agile Fortune 500 firms
 Based on models to measure organizational agility
 Agile firms out perform non agile firms by up to 36%
Business Agility Benefits I

34
Business Agility Benefits II
Alva, H. et al. (2010). Business agility index: The characteristics of an agile enterprise and how they drive superior
financial performance by converging business and technology management. Stamford, CT: BTM Corporation.


 E-commerce market is model of business agility
 Small footprint combined with flexible technologies
 Outpaces brick-and-mortar retailing by 2 to 8 times
35

Business Agility Benefits III

Business Agility—National Level
Suhy, S. (2014). Has the U.S. government moved to agile without telling anyone? Retrieved April 24, 2015, from http://agileingov.com
Porter, M. E., & Schwab, K. (2008). The global competitiveness report: 2008 to 2009. Geneva, Switzerland: World Economic Forum. 36
 U.S. gov’t agile jobs grew by 13,000% from 2006-2013
 Adoption is higher in U.S. DoD than Civilian Agencies
 GDP of countries with high adoption rates is greater
High
Low
Low HighAGILITY
COMPETITIVENESS
GOVERNMENT AGILE JOB GROWTH
PERCENTAGE
13,000%
0
2006 2013YEARS
GOVERNMENT COMPETITIVENESS
37
 More focus on operational efficiency & effectiveness
 Project lean-agile initiatives spreading business wide
 Business agility hindered by leadership, scale, & belief
Marcotte, L. (2017). The state of business agility in 2017. New York, NY. CA Technologies.

Business Agility Adoption I

38
 Overwhelming economic benefits to business agility
 Apple, Google, Amazon, & Facebook benefit the most
 SMEs slowed by infrastructure, operations & lead time
Bazigos, M., De Smet, A., & Gagnon, C. (2015). Why agility pays. New York, NY: McKinsey & Company.

Business Agility Adoption II
BUSINESS AGILITY Summary
 Early approaches focused on strategy & culture
 Hard to make big administrative bureaucracy agile
 Need to focus on products, org. structure, & facilities
39
 Agility isn't just for [software] coding cowboys
 [Business] agility has been around for a long time
 Agility is rooted in a lot of rich theoretical traditions
 Lean and agile paradigms are at root of business agility
 Business agility is NOT a means of putting lipstick on a pig
 The KEY to agility is to make the ENTIRE organization agile
 Applies to strategy, culture, products, technologies, & facilities
 True business agility is by competing with software vs. hardware






Dave’s PROFESSIONAL CAPABILITIES
40
Software
Quality
Mgt.
Technical
Project
Mgt.
Software
Development
Methods
Leadership &
Org. Change
Cost Estimates
& Scheduling
Acquisition &
Contracting
Portfolio &
Program Mgt.
Strategy &
Roadmapping
Lean, Kanban,
& Six Sigma
Modeling &
Simulations
Big Data,
Cloud, NoSQL
Workflow
Automation
Metrics,
Models, & SPC
BPR, IDEF0,
& DoDAF
DoD 5000,
TRA, & SRA
PSP, TSP, &
Code Reviews
CMMI &
ISO 9001
Innovation
Management
Statistics, CFA,
EFA, & SEM
Evolutionary
Design
Systems
Engineering
Valuation — Cost-Benefit Analysis, B/CR, ROI, NPV, BEP, Real Options, etc.
Lean-Agile — Scrum, SAFe, Continuous Integration & Delivery, DevOpsSec, etc.
STRENGTHS – Communicating Complex Ideas • Brownbags & Webinars • Datasheets & Whitepapers • Reviews &
Audits • Comparisons & Tradeoffs • Brainstorming & Ideation • Data Mining & Business Cases • Metrics & Models •
Tiger Teams & Shortfuse Tasks • Strategy, Roadmaps, & Plans • Concept Frameworks & Multi-Attribute Models • Etc.
● Data mining. Metrics, benchmarks, & performance.
● Simplification. Refactoring, refinement, & streamlining.
● Assessments. Audits, reviews, appraisals, & risk analysis.
● Coaching. Diagnosing, debugging, & restarting stalled projects.
● Business cases. Cost, benefit, & return-on-investment (ROI) analysis.
● Communications. Executive summaries, white papers, & lightning talks.
● Strategy & tactics. Program, project, task, & activity scoping, charters, & plans.
PMP, CSEP,
FCP, FCT, ACP,
CSM, SAFE, &
DEVOPS
35+ YEARS
IN IT
INDUSTRY

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Business, Enterprise, & Organizational Agility

  • 1. Strategies, Models, & Principles for Enterprise-Level Agility Business Value of Agile Organizations Dr. David F. Rico, PMP, CSEP, FCP, FCT, ACP, CSM, SAFE, DEVOPS Twitter: @dr_david_f_rico Website: http://www.davidfrico.com LinkedIn: http://www.linkedin.com/in/davidfrico Agile Capabilities: http://davidfrico.com/rico-capability-agile.pdf Agile Cost of Quality: http://www.davidfrico.com/agile-vs-trad-coq.pdf DevOps Return on Investment (ROI): http://davidfrico.com/rico-devops-roi.pdf Dave’s NEW Business Agility Video: http://www.youtube.com/watch?v=hTvtsAkL8xU Dave’s NEWER Scaled Agile Framework SAFe 4.5 Video: http://youtu.be/1TAuCRq5a34 Dave’s NEWEST Development Operations Security Video: http://youtu.be/X22kJAvx44A DoD Fighter Jets versus Amazon Web Services: http://davidfrico.com/dod-agile-principles.pdf
  • 2. Author Background  Gov’t contractor with 35+ years of IT experience  B.S. Comp. Sci., M.S. Soft. Eng., & D.M. Info. Sys.  Large gov’t projects in U.S., Far/Mid-East, & Europe 2   Career systems & software engineering methodologist  Lean-Agile, Six Sigma, CMMI, ISO 9001, DoD 5000  NASA, USAF, Navy, Army, DISA, & DARPA projects  Published seven books & numerous journal articles  Intn’l keynote speaker, 200+ talks to 14,500 people  Specializes in metrics, models, & cost engineering  Cloud Computing, SOA, Web Services, FOSS, etc.  Professor at 7 Washington, DC-area universities
  • 4. Business Agility—Related Quotes 4 ● Everybody has a plan until I punch them in the mouth -- Mike Tyson ● It's tough to make predictions, especially about the future -- Mark Twain ● A good plan violently executed today is better than a perfect plan tomorrow -- George Patton ● You can't predict the future, because it's becoming more unpredictable -- William Fulmer ● Those who have knowledge don't predict, those who predict don't have knowledge -- Lao Tzu ● Some things are so unexpected that no one is prepared for them -- Leo Roste ● Forecasters aren't smart, they merely have their ignorance better organized -- Anonymous ● The herd instinct among forecasters makes sheep look like independent thinkers -- Edgar Fiedler ● It's best to be bold instead of right, because most people are wrong anyway -- Dave Rico     
  • 5. Business Agility Drivers 5 Overruns Attrition Escalation Runaways Cancellation Global Competition Demanding Customers Organization Downsizing System Complexity Technology Change Vague Requirements Work Life Imbalance Inefficiency High O&M Lower DoQ Vulnerable N-M Breach Reduced IT Budgets 81 Month Cycle Times Redundant Data Centers Lack of Interoperability Poor IT Security Overburdening Legacy Systems Obsolete Technology & Skills Pine, B. J. (1993). Mass customization: The new frontier in business competition. Boston, MA: Harvard Business School Press. Pontius, R. W. (2012). Acquisition of IT: Improving efficiency and effectiveness in IT acquisition in the DoD. Second Annual AFEI/NDIA Conference on Agile in DoD, Springfield, VA, USA.
  • 6. Today’s Global Marketplace  Most of world’s population connected to Internet  Systems must support billions of simultaneous users  New approaches are needed to scale to global market 6Kemp, S. (2016). Digital in 2016: We are social's compendium of global digital, social, and mobile data, trends, and statistics. New York, NY: We Are Social, Inc. 
  • 7. 7 Internet of Things—Dinosaur Killer IoT is an Extinction Level Event • 25-50B Devices on IOT • 5-10B Internet Hosts • 4-8B Mobile Phones • 2-3B End User Sys • Mass Business Failure
  • 8. 8 Business Agility—Newton’s 3rd Law THE SATIR CURVE 71% 56% SERVICES 71% MANUFACTURING Exponential Technology Change Exponential Market Destabilization Exponential Business Failures (1990s) Exponential Business Failures (2000s) Singularity
  • 9. Business Agility Justification 9Langley, M. A. (2012). Organizational agility: Pulse of the profession (in-depth report). Newtown Square, PA: Project Management Institute. Glenn, M. (2009). Organizational agility: How business can survive and thrive in turbulent times. London, UK: The Economist.  
  • 10. What is Business Agility?  A-gil-i-ty (ә-'ji-lә-tē) Property consisting of quickness, lightness, and ease of movement; To be very nimble  The ability to create and respond to change in order to profit in a turbulent global business environment  The ability to quickly reprioritize use of resources when requirements, technology, and knowledge shift  A very fast response to sudden market changes and emerging threats by intensive customer interaction  Use of evolutionary, incremental, and iterative delivery to converge on an optimal customer solution  Maximizing BUSINESS VALUE with right sized, just- enough, and just-in-time processes and documentation Highsmith, J. A. (2002). Agile software development ecosystems. Boston, MA: Addison-Wesley. 10  
  • 11. What is Business Agility? 11  People-centric way to create innovative solutions  Product-centric alternative to big work-in-process  Market-centric model to maximize business value Hearrell, R. (2015). Building enterprise agility. New York, NY: PricewaterhouseCoopers.  
  • 12. Business Agility Dimensions  “Agility” has many dimensions other than IT  It ranges from leadership to technological agility  Today’s focus is on organizational & enterprise agility   Agile Leaders Agile Organization Change Agile Acquisition & Contracting Agile Strategic Planning Agile Capability Analysis Agile Program Management Agile Tech. Agile Information Systems Agile Tools Agile Processes & Practices Agile Systems Development Agile Project Management 12 
  • 13. 13 ● Flexible Manufacturing ● Operations Research ● Incremental Planning ● Customer Focus ● Early Beta Testing ● Empowerment ● Lean Thinking ● Evolutionary Biology ● Complex Adaptive Systems ● New Product Development ● Chaos Theory ● Emergence ● Innovation ● Motivation ● Strategic Planning ● Organization Development ● Project Management ● Systems Engineering ● Software Engineering ● Quality Management ● Information Technology Business Agility Antecedents  
  • 14. 14 Business Agility Timeline 1995 2000 2005 2010 2015 2015 Structured Chaos Judo Strategy Adaptive Enterprise Agile Organization Good to Great Response Ability Mobile Business Agile Business Corporate Agility Fast Strategy Business Agility Motivational Drive Agility Factor Agility Advantage Holocracy Agility Shift SEAM Government Agility       Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies. Retrieved March 1, 2016, from http://davidfrico.com
  • 15. Business Agility Definitions 15 No Year Model Author Definition 1 1997 Structured Chaos Brown Reacting responsibly to, anticipating, and dictating the pace of change 2 1998 Judo Strategy Cusumano Using speed and agility to mitigate effects of a company's competitors 3 1999 Adaptive Enterprise Haeckel Ability of large complex organization to systematically adapt to change 4 2000 Agile Organization Fulmer Sense making for success by understanding landscape, learning, & leading 5 2001 Good to Great Collins Increasing performance standing by disciplined thought, people, and action 6 2001 Response Ability Dove Intellectual and physical ability to act upon knowledge for business success 7 2002 Mobile Business Evans Confluence of business processes, e-commerce, and wireless communications 8 2003 Agile Business McCarthy Common ability to maintain a steady course in the face of economic change 9 2007 Corporate Agility Grantham Creating new products and markets faster than competitors by reducing costs 10 2008 Fast Strategy Dos Striking with strength and speed through strategy, commitment, and fluidity 11 2009 Business Agility Hugos Ability to respond and act quickly to capitalize on new opportunities 12 2009 Motivational Drive Pink Strategy of empowering people with autonomy, mastery, and purpose 13 2014 Agility Factor Worley Ability to make timely, effective, and sustained organizational changes 14 2014 Agility Advantage Setili Seeing and responding to market changes capably and quickly than others 15 2015 Holacracy Robertson Governance structure for semi-autonomous teams enabling rapid adaptation 16 2015 Agility Shift Meyer Competence, capacity, and confidence to learn, adapt, and innovate 17 2015 SEAM Worley Ability to make timely, effective, and sustainable organizational changes 18 2015 Government Agility Rico Adapting to change by reducing scope, outsourcing, and collaboration        Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies. Retrieved March 1, 2016, from http://davidfrico.com
  • 16. 16 Business Agility Attributes Category Attribute 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Strategic Agility Objective              Experiments          Vision-Strategy             Time Based     Change-Adapt            Customer Focus     Relationships         Cultural Agility Leadership       Talent        Purpose          Collaborative    Communication        Empowerment          Improvement       Process Agility Continuous  Iterative         Operational        Lightweight  Disciplined   Improving         Automation   Product & Service Agility Fewer    Smaller    Modular     Flexible     Reconfigurable     Inexpensive    Throwaway    Technology Agility Software    Open Source    Microservices    Commercial    Reusable    Cloud Computing    Mobile    IT Infrastructure Agility Intranet       Internet       Text       Email       Cellphone       Video       Workflow       Organization Design Agility Narrow     Flatter    Networked    Organic    Self Organizing    Cross Functional     Light Governance         Capital Infrastructure Agility Virtual     Telepresence     Outsourced     Offshoring     Global     Public     Leased       Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies. Retrieved March 1, 2016, from http://davidfrico.com
  • 17. 4. PRODUCT & SERVICE AGILITY Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies. Retrieved March 1, 2016, from http://davidfrico.com  Created by Dave Rico in 2015-16  Metamodel analysis of 18 major approaches  Product, technology, & infrastructure major themes 17  Business Agility Metamodel  Fewer  Smaller  Modular  Flexible  Reconfigurable  Inexpensive  Throwaway 6. IT INFRASTRUCTURE AGILITY  Intranet  Internet  Text  Email  Cellphone  Video  Workflow 1. STRATEGIC AGILITY  Objective  Experiments  Vision-Strategy  Time Based  Change-Adapt  Customer Focus  Relationships 7. ORGANIZATION DESIGN AGILITY  Narrow  Flatter  Networked  Organic  Self Organizing  Cross Functional  Light Governance 5. TECHNOLOGY AGILITY  Software  Open Source  Microservices  Commercial  Reusable  Cloud Computing  Mobile 8. CAPITAL INFRASTRUCTURE AGILITY  Virtual  Telepresence  Outsourced  Offshoring  Global  Public  Leased 3. PROCESS AGILITY  Continuous  Iterative  Operational  Lightweight  Disciplined  Improving  Automation BUSINESS AGILITY METAMODEL  STRATEGIC AGILITY  CULTURAL AGILITY  PROCESS AGILITY  PRODUCT & SERVICE AGILITY  TECHNOLOGY AGILITY  IT INFRASTRUCTURE AGILITY  ORGANIZATION DESIGN AGILITY  CAPITAL INFRASTRUCTURE AGILITY 2. CULTURAL AGILITY  Leadership  Talent  Purpose  Collaborative  Communication  Empowerment  Improvement
  • 18. Relationships Partnerships, crowdsourcing, open innovation Customer Focus Customer focused products and services Change-Adapt Change and adaption proficiency Time Based Fast lead and cycle times Vision-Strategy Clear vision and strategy Experiments Use of physical experiments Objective Clear goals and objectives  Top-level plan to achieve enterprise-wide objectives  Objective, experimental, temporary, & evolutionary  Customer-focused, bottoms-up, & adaptable 18 1. Strategic Agility  Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies. Retrieved March 1, 2016, from http://davidfrico.com 
  • 19. Improvement Relentless perfection, continuous improvement, and mastery Empowerment Egalitarian, ownership, and authority Communication Rich, high-context transparent dialogue Collaborative Internal and external cooperation Purpose Shared sense of purpose and conviction Talent Strong technical skills and competencies Leadership Visionary, servant leaders throughout  Organizational values, ideas, beliefs, & knowledge  Visionary leaders, talented workforce, & purposeful  Collaborate, empower, & continuous improvement 19 2. Cultural Agility  Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies. Retrieved March 1, 2016, from http://davidfrico.com 
  • 20. Automation One-touch automation from order through validation and delivery Improving Daily, weekly, and monthly retrospectives Disciplined Strong process and quality focus Lightweight Minimal essential processes necessary Operational Working products and services Iterative Time-based iterations and releases Continuous Continuous delivery, flow, and DevOps  Operational steps to generate product & service  Lean-agile discipline, quality-focused, lightweight  Continuous flow, time-based, & highly-automated 20 3. Process Agility  Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies. Retrieved March 1, 2016, from http://davidfrico.com 
  • 21. Throwaway Disposable designs with short life spans Inexpensive Least expensive, value adding design Reconfigurable Fast and easy reconfigurability Flexible Flexible materials and manufacturability Modular Highly modularized and interchangeable Smaller Simple architecture and design Fewer Focus on fewer core competencies  Goods or services with value organizations produce  Simplest design, rapid & inexpensive producibility  Core competencies, small-simple, & temporary 21 4. Product & Service Agility  Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies. Retrieved March 1, 2016, from http://davidfrico.com 
  • 22. Mobile Migrate towards mobile cellular platforms Cloud Computing Commercial data centers and services Reusable Reuse of commercial middleware services Commercial Mashups of commercial web services Microservices Small custom web services and mobile apps Open Source Use free and open source software Software Compete with software vs. hardware  Underlying science, engineering, & materials used  Fast, inexpensive, flexible, malleable, & evolutionary  Software, free open source, & commercial IT services 22 5. Technology Agility  Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies. Retrieved March 1, 2016, from http://davidfrico.com 
  • 23. Workflow Simplistic workflow enterprise applications and portals Video Periodic use of video conferences and webinars Cellphone Mobile phones for synchronous communications Email Use of email when necessary for reporting Text Use of text, chat, and other asynchronous communications Internet Internet services such as gmail, google docs, drop box, etc. Intranet Small private intranets consisting of commercial mashups  Public or private network for business operations  Web services, communications, & collaboration  Internet, asynchronous, & personally-owned 23 6. IT Infrastructure Agility  Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies. Retrieved March 1, 2016, from http://davidfrico.com 
  • 24. Light Governance Minimal, lightweight policies, standards, and guidelines Cross Functional Small interdisciplinary problem solving teams Self Organizing Self selected and governed teams and collaboration Organic Use of temporary teams and structures Networked Loosely networked functions, projects, and teams Flatter Little to no organizational hierarchy Narrow Smallest possible organizational design possible  Internal management hierarchy of organization  Flat, small, narrow, networked, & technical focus  Extremely flat, self-organizing, & light governance 24 7. Organization Design Agility  Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies. Retrieved March 1, 2016, from http://davidfrico.com 
  • 25. Leased Use of temporary, leased office spaces and buildings Public Use of public, shared collaboration spaces Global International crowdsourcing and open innovation Offshoring Use of offshore manufacturing and free trade zones Outsourced Use of temporary, as-needed workforce and services Telepresence Use of teleworking and telecommuting Virtual Use of virtual, non-physical human resources  Capital infrastructure used for business operations  Smallest possible, outsourced, & personally owned  Virtual, Internet-based, & commercially-outsourced 25 8. Capital Infrastructure Agility  Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies. Retrieved March 1, 2016, from http://davidfrico.com 
  • 26. 4. PRODUCT & SERVICE AGILITY Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies. Retrieved March 1, 2016, from http://davidfrico.com  Early models based on strategies & operations  Evolved into an experimental sense & response  Products, organization, & facilities important too 26  Business Agility Metamodel Recap Fewer, Smaller, & Inexpensive 6. IT INFRASTRUCTURE AGILITY Public Internet Services Based 1. STRATEGIC AGILITY Experimental Sense & Respond 7. ORGANIZATION DESIGN AGILITY Flat, Networked, & Holocratic 5. TECHNOLOGY AGILITY Software-Based Microservices 8. CAPITAL INFRASTRUCTURE AGILITY On-Demand Teleworkers 3. PROCESS AGILITY Lean, Agile, & Continuous BUSINESS AGILITY METAMODEL 2. CULTURAL AGILITY Collaborative & Empowered
  • 27. Business Agility Metamodel Kiviat Objective Experiments Vision-Strategy Time Based Change-Adapt Customer Focus Relationships Leadership Talent Purpose Collaborative Communication Empowerment Improvement Continuous Iterative Operational Lightweight Disciplined Improving Automation Fewer Smaller Modular Flexible Reconfigurable Inexpensive Throwaway Software Open Source Microservices Commercial Reusable Cloud Computing Mobile Intranet Internet Text Email Cellphone Video Workflow Narrow Flatter Networked Organic Self Organizing Cross Functional Light Governance Virtual Telepresence Outsourced Offshoring Global Leased Commercial 1 2 3 4 5 6 7 1. Strategic Agility8. Capital Infrastructure Agility 2. Cultural Agility 3. Process Agility 4. Product & Service Agility5. Technology Agility 6. IT Infrastructure Agility 7. Organization Design Agility Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies. Retrieved March 1, 2016, from http://davidfrico.com 27
  • 28. 28  Late big bang integration increases WIP backlog  Agile testing early and often reduces WIP backlog  CI/CD/DevOps lower WIP, Cycle Time, & Lead Time Nightingale, C. (2015). Seven lean metrics to improve flow. Franklin, TN: LeanKit.  KANBAN BOARD CUMULATIVE FLOW DIAGRAM LEAD TIME & CYCLE TIME PUTTING IT ALL TOGETHER Business Agility Measures I
  • 29. Increase (Commercial) ● Products & Services ● Product Safety & Reliability ● Reputation, Image, & Brand Equity ● Customers ● Marketshare ● Sales ● Revenues ● Profits ● Return on Investment Increase (Government) ● Mission Efficiency & Effectiveness ● National Security & Safety Posture ● Identification of High-Value Targets ● Actionable Intelligence ● Intelligence Value Estimate ● Exploit Multiple Signal Sources ● Exploit Emerging Signal Sources ● Exploit Emerging Missions & Threats ● Strategic & Tactical Military Readiness Reduce (Commercial & Gov’t) ● Technical Complexity, Scale, & Size ● Development, Test, & Evaluation Costs ● Cycle Time & Delivery Speed ● Rework, Defects, Faults, & Failures ● Cost, Schedule, & Budget Overruns ● Turnover, Attrition, & Knowledge Loss ● Programmatic & Technical Risks ● Tech Obsolescence & Legacy Sys. Cost ● Hardware & Software Purchasing Time ● Integration & Interoperability Costs Increase (Commercial & Gov’t) ● Efficiency & Effectiveness ● Delivery Order Quantity (DoQ) ● Speed, Productivity, & Competitiveness ● Innovation, New Ideas, & Technology ● Morale, Retention, & Emp. Satisfaction ● Communication & Knowledge Sharing ● Cust. Satisfaction, Loyalty, & Retention ● Faster Tech. & Infrastructure Refresh ● Decisionmaking & Governance Speed ● Certification & Accreditation Speed 29 Business Agility Measures II Strategic Operational
  • 30. Nadasen, D. (2015). Fiscal year 2015 fact book. Largo, MD. UMUC. DeGruttola, M. (2015). The future of open source. Waltham, MA: North Bridge. Sands, R. (2012). Open source by the numbers. Burlington, MA: Black Duck Software.  Virtual enterprises have reached tipping point  Many U.S. civilian agencies use virtual workforce  Online, large, & have a very small capital footprint 30  Business Agility Case Studies Open Source Software Univ. of Maryland Univ. College  95% of IT firms use open source tools  Over 10 million open source projects  At least 10 million contributors to open source  Most contributors don’t have full-time day jobs  Most contributors work from home without pay  ~ 100 billion lines of software source code  50% are "live" projects with active commits  Live projects average 6.5 million lines of code  50% of Projects are Java, C, and C++  Dozens of open source repositories worldwide  Most repositories offer static source code analysis  Automatic code security analysis typically done  Development process follows lean-agile paradigm  Surpasses commercial code quality  Commercial code has more severe defects  Linux is benchmark for open source quality  Open, Affordable, Quality Education  One of 11 major schools in USM  82,555 Total Students  248,104 Course Enrollments  31,378 Full-Time Students (38,140 UMCP)  11,550 Annual Degrees Granted (9,700 UMCP)  237,343 Degrees Since 1948  Offers more than 90 types of degrees  45% of Students are Minorities (11% UMCP)  28% of Degrees go to Minorities  75% of Students Work Full-Time  54% of Students Have Children  63% of Students Active Duty Military  140 Worldwide Locations on Four Continents  535,480 Square Feet (13.5m UMCP)  MTCO2e/Student < 0.72 (6.5 UMCP)
  • 31. GOVERNMENT AGILITY  IT Infrastructure  Facility Infrastructure  Organization Infrastructure  Information Infrastructure  Resource Infrastructure  Collaborative Infrastructure  Cultural Infrastructure FACILITY INFRASTRUCTURE Rico, D. F. (2015). Dave’s notes: U.S. government agile business model. Retrieved March 1, 2016, from http://davidfrico.com  Created by Dave Rico in 2015  Inspired by U.S. DoD 3rd offset strategy  Lean, collaboration, & outsourcing major themes 31  Business Agility Gov’t Example  Leased Commercial Facilities  Hardened Commercial Facilities  Lease vs. Build Philosophy  Smaller Customer Facilities  Outsourced Facility Workforce ORGANIZATION INFRASTRUCTURE  Smaller Flatter Workforce  Integrated Workforce  Outsourced Workforce  Collaborative Teams  Shared Decision Making IT INFRASTRUCTURE  Leased Data Centers  Leased Web Services  Buy vs. Build Philosophy  Smaller Custom Services  Outsourced IT workforce INFORMATION INFRASTRUCTURE  Outsourced Data & Information  Outsourced Analytics Data  Fewer Information Sources  Outsourced Workforce  Buy vs. Build Philosophy COLLABORATIVE INFRASTRUCTURE  More Community Participation  More International Participation  More Information Sharing  More Commercial Participation  More Crowdsourcing CULTURAL INFRASTRUCTURE  Less Buyer-Supplier Barriers  Less Us vs. Them Mentality  Less Legalistic Relationships  More Cross Functional Teams  More Communication & Trust RESOURCE INFRASTRUCTURE  Smaller Resource Footprint  Temporary Throwaway Services  Micro Timelines & Services  Smaller Budgets & Thresholds  Few Capital Intensive Purchases
  • 32. 32 Business Agility Performance Langley, M. A. (2014). High-cost of low performance: Pulse of the profession (a snapshot). Newtown Square, PA: Project Management Institute.
  • 33. Hoque, F., et al. (2007). Business technology convergence. The role of business technology convergence in innovation and adaptability and its effect on financial performance. Stamford, CT: BTM Corporation. 33  Study of 15 agile vs. non-agile Fortune 500 firms  Based on models to measure organizational agility  Agile firms out perform non agile firms by up to 36% Business Agility Benefits I 
  • 34. 34 Business Agility Benefits II Alva, H. et al. (2010). Business agility index: The characteristics of an agile enterprise and how they drive superior financial performance by converging business and technology management. Stamford, CT: BTM Corporation.  
  • 35.  E-commerce market is model of business agility  Small footprint combined with flexible technologies  Outpaces brick-and-mortar retailing by 2 to 8 times 35  Business Agility Benefits III 
  • 36. Business Agility—National Level Suhy, S. (2014). Has the U.S. government moved to agile without telling anyone? Retrieved April 24, 2015, from http://agileingov.com Porter, M. E., & Schwab, K. (2008). The global competitiveness report: 2008 to 2009. Geneva, Switzerland: World Economic Forum. 36  U.S. gov’t agile jobs grew by 13,000% from 2006-2013  Adoption is higher in U.S. DoD than Civilian Agencies  GDP of countries with high adoption rates is greater High Low Low HighAGILITY COMPETITIVENESS GOVERNMENT AGILE JOB GROWTH PERCENTAGE 13,000% 0 2006 2013YEARS GOVERNMENT COMPETITIVENESS
  • 37. 37  More focus on operational efficiency & effectiveness  Project lean-agile initiatives spreading business wide  Business agility hindered by leadership, scale, & belief Marcotte, L. (2017). The state of business agility in 2017. New York, NY. CA Technologies.  Business Agility Adoption I 
  • 38. 38  Overwhelming economic benefits to business agility  Apple, Google, Amazon, & Facebook benefit the most  SMEs slowed by infrastructure, operations & lead time Bazigos, M., De Smet, A., & Gagnon, C. (2015). Why agility pays. New York, NY: McKinsey & Company.  Business Agility Adoption II
  • 39. BUSINESS AGILITY Summary  Early approaches focused on strategy & culture  Hard to make big administrative bureaucracy agile  Need to focus on products, org. structure, & facilities 39  Agility isn't just for [software] coding cowboys  [Business] agility has been around for a long time  Agility is rooted in a lot of rich theoretical traditions  Lean and agile paradigms are at root of business agility  Business agility is NOT a means of putting lipstick on a pig  The KEY to agility is to make the ENTIRE organization agile  Applies to strategy, culture, products, technologies, & facilities  True business agility is by competing with software vs. hardware      
  • 40. Dave’s PROFESSIONAL CAPABILITIES 40 Software Quality Mgt. Technical Project Mgt. Software Development Methods Leadership & Org. Change Cost Estimates & Scheduling Acquisition & Contracting Portfolio & Program Mgt. Strategy & Roadmapping Lean, Kanban, & Six Sigma Modeling & Simulations Big Data, Cloud, NoSQL Workflow Automation Metrics, Models, & SPC BPR, IDEF0, & DoDAF DoD 5000, TRA, & SRA PSP, TSP, & Code Reviews CMMI & ISO 9001 Innovation Management Statistics, CFA, EFA, & SEM Evolutionary Design Systems Engineering Valuation — Cost-Benefit Analysis, B/CR, ROI, NPV, BEP, Real Options, etc. Lean-Agile — Scrum, SAFe, Continuous Integration & Delivery, DevOpsSec, etc. STRENGTHS – Communicating Complex Ideas • Brownbags & Webinars • Datasheets & Whitepapers • Reviews & Audits • Comparisons & Tradeoffs • Brainstorming & Ideation • Data Mining & Business Cases • Metrics & Models • Tiger Teams & Shortfuse Tasks • Strategy, Roadmaps, & Plans • Concept Frameworks & Multi-Attribute Models • Etc. ● Data mining. Metrics, benchmarks, & performance. ● Simplification. Refactoring, refinement, & streamlining. ● Assessments. Audits, reviews, appraisals, & risk analysis. ● Coaching. Diagnosing, debugging, & restarting stalled projects. ● Business cases. Cost, benefit, & return-on-investment (ROI) analysis. ● Communications. Executive summaries, white papers, & lightning talks. ● Strategy & tactics. Program, project, task, & activity scoping, charters, & plans. PMP, CSEP, FCP, FCT, ACP, CSM, SAFE, & DEVOPS 35+ YEARS IN IT INDUSTRY