You've started on Agile project. You've probably got IT management on board. You've read the manifesto. You've got a wall covered in post-its. You’re probably not using pair programming but you’re following most other Scrum and XP practices. But now you have a problem. Operations, HR and finance can’t keep up. Ops is having problems (or just refusing to) deploy each iteration. HR won’t let you form self-organising teams and don't know how to write KPI’s to support collaborative work practices. And finance wants a 3 year budget with fully costed initiatives.
Like many cultural problems, change comes from understanding. This presentation will explain how non-IT business functions operate and why they have legitimate problems with Agile delivery.
We won’t stop there however.
By understanding your business, this presentation will provide you with the tools you need to align your corporate business functions to your agile development approach. From improved communication integrated sales, rolling budgets, agile KPI’s and aligning to revenue drivers. You will learn how to build a truly agile organisation.
=== CONTEXT ===
There is a natural evolution to business agility. This is the precept behind everything I've learnt over the last 10+ years in applying agile across the business. From this, I'll be showing how IT can help non-IT business functions support an agile delivery model. That is, as an agile practitioner in IT, how can you position agile in such a way as to get the support of the wider business in its adoption. Ultimately, in cases of high agile maturity, this can extend into developing agile business practices across the organisation outside of IT (although that is not the main thrust of this presentation).
This is intended to be a practical discussion on how organisations operate. There are three parts to the presentation (roughly a third of the presentation will be spent on each).
* Section 1. A high level overview of the way non-it business functions work and why
* Section 2. How agile can align to these functions, and how they can align to agile
* Section 3. Communication strategies that participants can take back to their organisation to bridge the gap between it and the rest of the business
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Directing the Agile
Organisationby Evan Leybourn
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Editor's Notes
Finance and Accounting is responsible for the management of all the financial and monetary aspects of the business.
Finance and Accounting is responsible for the management of all the financial and monetary aspects of the business.
Finance and Accounting is responsible for the management of all the financial and monetary aspects of the business.
Typical products: Annual budget, tax returns.
Typical processes: Cashflow management, managing accounts, shares management, short- and long-term investments, managing depreciable assets, raising
capital (shares and loans).
Optional processes: Procurement, Forex markets and currency conversion, international trade.
Frameworks and guidelines: Relevant tax and accounting legislation, CPA, or equivalent guidelines.
Typical Customer: The organisation (represented by the senior executive), the taxation office.
Stakeholders: Everyone.
Human Resources (HR) is responsible for staff recruitment, salary management, and implementing management policies within an organisation.
Human Resources (HR) is responsible for staff recruitment, salary management, and implementing management policies within an organisation.
Human Resources (HR) is responsible for staff recruitment, salary management, and implementing management policies within an organisation.
Typical products: HR policy documents, position descriptions, and job advertisements.
Typical processes: Managing applications, verifying claims, personality tests (e.g. Belbin or Myers Briggs), industrial relations negotiations, salaries, separation procedures (both voluntary and involuntary), and performance management.
Optional processes: Occupational health and safety, career counselling, and staff training.
Frameworks and guidelines: Equity and Diversity legislation.
Typical Customer: Internal departments.
Stakeholders: Finance and Accounting (budget), Media and Communications (external advertisements).
Sales and Marketing Teams interface between consumers (or Customers) and the Delivery Teams. They are responsible for the promotion, pricing, market research, lead generation, and sale of your products and services. Effective Sales and Marketing Teams will interact closely with your Customers, through shop fronts, online websites, social media, or professional networks. Sales and Marketing also work closely with the Delivery Teams, to ensure that the outcomes meet Customer needs or expectations.
Sales and Marketing Teams interface between consumers (or Customers) and the Delivery Teams. They are responsible for the promotion, pricing, market research, lead generation, and sale of your products and services. Effective Sales and Marketing Teams will interact closely with your Customers, through shop fronts, online websites, social media, or professional networks. Sales and Marketing also work closely with the Delivery Teams, to ensure that the outcomes meet Customer needs or expectations.
Sales and Marketing Teams interface between consumers (or Customers) and the Delivery Teams. They are responsible for the promotion, pricing, market research, lead generation, and sale of your products and services. Effective Sales and Marketing Teams will interact closely with your Customers, through shop fronts, online websites, social media, or professional networks. Sales and Marketing also work closely with the Delivery Teams, to ensure that the outcomes meet Customer needs or expectations.
Typical products: High-level product requirements, packaging.
Typical processes: Lead generation, market research, setting prices, promotion, professional networking, presentations (e.g. conferences and trade shows), sales (online, shop front, or B2B), distribution.
Optional processes: Advertising campaigns, social media, Customer service.
Frameworks and guidelines: Relevant legislation.
Typical Customer: The organisation (represented by the senior executive). Depending on your organisation, the Delivery Teams can be a Customer, but the converse is also possible, where the Marketing Manager is the Customer of the Delivery Teams.
Stakeholders: Media and Communications (branding and advertising), Finance and Accounting (budget and cashflow).
rolling budgets, financial transparency and opex vs capex
Work style: Long-term planned work, suitable for planned Incremental Delivery.
The role of Finance and Accounting does not change dramatically under Agile Business Management. Changes are primarily to workflow and transparency.
rolling budgets, financial transparency and opex vs capex
Work style: Long-term planned work, suitable for planned Incremental Delivery.
The role of Finance and Accounting does not change dramatically under Agile Business Management. Changes are primarily to workflow and transparency.
rolling budgets, financial transparency and opex vs capex
Work style: Long-term planned work, suitable for planned Incremental Delivery.
The role of Finance and Accounting does not change dramatically under Agile Business Management. Changes are primarily to workflow and transparency.
Are quality control tests occurring during every Iteration?
Is the Team engaging with the Customer, or Customer Representative, regularly?
Is the Customer, or Customer Representative, engaging with the Team regularly?
Are Requirements being estimated, and consistently delivered?
Are defects being resolved within two Iterations?
Is there a reduction in identified defects by consumers (note: consumer, not Customer)?
For Incremental Delivery, are 90% of planned and estimated Tasks being completed each Iteration (Velocity/goals achieved)?
Have overhead costs (e.g. additional meetings, delivery/release costs, delays) been reduced?
Is the Team/person meeting agreed due dates?
Qualitative KPIs:
Are Retrospectives being effectively utilised?
Is the Customer happy with the work being produced?
Is the Iteration planning accurate?
Peer review, or 360° review (controversial, but often effective)?
develop agile KPI's and recruitment strategies as well as giving them access to agile tools
Work style: Ad hoc, suitable for Continuous Delivery.
The responsibilities of HR do not change dramatically under Agile Business Management, though there may be significant cultural changes. Changes are primarily to workflow, transparency and Customer interaction.
develop agile KPI's and recruitment strategies as well as giving them access to agile tools
Work style: Ad hoc, suitable for Continuous Delivery.
The responsibilities of HR do not change dramatically under Agile Business Management, though there may be significant cultural changes. Changes are primarily to workflow, transparency and Customer interaction.
Aligning the sales cycle with the development cycle
Work style: Ad hoc. Suitable for Continuous Delivery.
Sales and Marketing often work in an Agile way already, so under Agile Business Management their role may not change significantly. For B2B products, sales staff are still responsible for lead generation, but handover to the Delivery Teams is much earlier. Remember, Delivery Teams have the responsibility for working directly with the Customers. For B2C products, the marketing manager may become the Delivery Team’s Customer, with the additional responsibilities that entails. There is minimal change to consumer sales Teams, e.g. shop front staff.
Aligning the sales cycle with the development cycle
Work style: Ad hoc. Suitable for Continuous Delivery.
Sales and Marketing often work in an Agile way already, so under Agile Business Management their role may not change significantly. For B2B products, sales staff are still responsible for lead generation, but handover to the Delivery Teams is much earlier. Remember, Delivery Teams have the responsibility for working directly with the Customers. For B2C products, the marketing manager may become the Delivery Team’s Customer, with the additional responsibilities that entails. There is minimal change to consumer sales Teams, e.g. shop front staff.
Aligning the sales cycle with the development cycle
Work style: Ad hoc. Suitable for Continuous Delivery.
Sales and Marketing often work in an Agile way already, so under Agile Business Management their role may not change significantly. For B2B products, sales staff are still responsible for lead generation, but handover to the Delivery Teams is much earlier. Remember, Delivery Teams have the responsibility for working directly with the Customers. For B2C products, the marketing manager may become the Delivery Team’s Customer, with the additional responsibilities that entails. There is minimal change to consumer sales Teams, e.g. shop front staff.
Let’s finish off by looking at our original definition of business growth; Business growth comes from applying profitability to customer growth. Profitability comes from delivering services to your customers, accurately and efficiently. Over the last 15 minutes we have looked at some of the mechanisms from the lean and agile traditions that we can apply for adaptable businesses and sustainable business growth.
And I’ll leave you on that note. Any questions.
Build Credibility – share information – recognize different perspectives
Build a relationship – understand the emotive triggers
Find a concession point before you begin (order your priorities)
Naming the first price / deadlines
Know when to walk away – prevent escalation (commit to working it out)
Ask questions
Bad negotiation strategies
Endurance
diversions