The document discusses McKinsey's concept of "two speed IT" and how organizations can implement a two speed approach to IT delivery. It provides an example of a government organization that launched a Mode 2 delivery model to enable faster delivery of IT changes alongside its existing Mode 1 processes. The key aspects of implementing a successful two speed approach discussed are getting senior sponsorship, focusing the initial pilot on the right projects, staffing the new model with experienced people, and establishing processes to incrementally scale the new model while continuing to improve the existing model.

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2 SPEED IT AND HOW TO GET THERE
Agile Delivery 2016

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Who Am I?
HARRY VAZANIAS
Delivery & Transformation Director
harry.vazanias@enfusegroup.com
+44 (0) 7973 824469
linkedin.com/in/harryvazanias
@harryvazanias
“IT needs to shape up. IT no longer
provides a service to the business, IT
is the business and vice versa.
IT needs to reinvent itself for a
customer centric, technology savy
world where slow and steady just
doesn’t cut it.”

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I FEEL THE NEED…
THE NEED FOR SPEED!

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“Ironically, in a changing world,
playing it safe is one of the
riskiest things you can do”
Reid Hoffman, LinkedIn co-founder

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McKinsey’s Two Speed IT…
McKinsey’s Two Speed IT…

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Systems
of Innovation
Systems
of Record
Systems of
Differentiation
Mode 1
Mode 2
Change
Governance
+
-
-
+

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“The two-speed approach is no silver bullet. It can be complicated to
maintain a hybrid architecture… When one retailer adapted its legacy
systems to support multichannel delivery, for instance, fast-track software
teams bumped up against outdated IT systems built in programming
languages their young developers had never used.
…many businesses that opt for this approach become so focused on the
fast part of the two-speed model they forget to consider the changing
demands of the foundational systems—and that oversight can undermine
the success of the project.”
McKinsey & Company

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2 SPEED IT / BIMODAL = ORGANISATIONAL CHANGE

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… aka ‘IT Crowd’ and ‘Iron Man’…
Two Speed IT

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… Samurais and Ninjas
Gartner’s Bimodal IT

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EXAMPLE GOVERNMENT ORG
Need for a different delivery approach for IT
 Fast moving, challenging landscape…
 High levels of tech fuelled disruption
 More demand than ever for IT related change
 Mature, ITIL and Prince 2 based IT function seen as slow and
expensive
 Business try to avoid IT when they want to make things happen fast

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EXAMPLE GOVERNMENT ORG
Mode 2 was born
In late 2015 a decision to pilot a 2 speed IT delivery model was
made
 Need to be able to tailor delivery approach to business needs,
so new delivery mode required
 Fresh, Agile based approach seen as opportunity to drive down
delivery costs
 Desire to be able to deliver faster and earlier by applying a
delivery model better suited to the circumstances

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EXAMPLE GOVERNMENT ORG
Approach to launching mode 2
Today
•No formal Mode 2 – CDM closest but limited to Agile
software development
FY 16/17
•Pilot Mode 2 for select initiatives
•Refine Mode 2 for future rollout next year
FY 17/18
•Scale out use of Mode 2
•Widen scope to include further Proposition and Run
activities
FY 18/19+
•Further broaden scope of Mode 2 engagements,
looking at options such as Enterprise DevOps and
the scoping of the pipeline
Build
Pipeline
Scope
Initiative
Mobilise Build & Deploy
Run and
Maintain
Agile Dev
(Independent of Mode 2)
Mode 2 FY16/17
Mode 2 FY17/18
Mode 2 FY18/19
Increasing%ofChangePortfolio

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Mode 1
Tightly integrated systems
Business delivered to (i.e. they are the
customer)
Deliverables against timescales
Scope is fixed
Project or Programme
Mode 2
Loosely coupled / island systems
Business heavily involved
Outcomes and value delivered
Scope frequently changing
Portfolio of demand
Can’t fail on release Fix forward acceptable
End state can be well defined upfront End state difficult to define upfront in detail
Inception through to hand off to BAU
support
Full value stream*
Deliver change in a linear fashion, typically
with few and large releases
Deliver change continuously in frequent and
small increments
Funding allocated for delivery of target
outputs
Funding allocated for period of time
Business or technology led change Technology led change
Release Reliability
Business Involvement
Ideal Architecture
Delivery Focus
Scope
Ideal Type of Demand
End state
Breadth of value stream
What is it
Funding Structure
Technology Change
EXAMPLE GOVERNMENT ORG
Criteria for selecting Mode 1 and Mode 2

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2 SPEED IT
Making the pilot a success
1. Get the right senior sponsorship – business and IT
2. Do not do Mode 1 to Mode 2
3. Acknowledge that Agile is a big part of this
4. Invest in making this an exemplar pilot with the right value stream/portfolio
5. Staff with Mode 2 people – go getters – and train them
6. No big song and dance about Mode 2 – just do it
7. Embed coach and other experienced Mode 2 people into the first few initiatives
8. Establish Working Group to get buy-in, engagement and ownership across the organisation
9. Get your pilot project(s) right – fail fast is part of Mode 2, but it helps if you succeed first!
10. Don’t forget about Mode 1 – roll out improvements to Mode 1 as well

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End-to-End
Value Stream
Agile Portfolio &
Delivery Approach
Agile
Architecture
Delegated
Authority
Business
Partnership
DevOps People &
Culture
Focus on
Value
Different
Risk Profile
KEY FEATURES OF MODE 2

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Question… is this not what
we want for everything?
McKinsey & Company
THE TWO SPEEDS NEED TO COEXIST

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KEY STEPS
1. Be clear on why you are doing 2 speed and what this means
2. Agree a transformation roadmap with milestones
3. Recognise potential blockers – people, process, technology,
security
4. Pilot Mode 2 in a business friendly area
5. Build Mode 2 support infrastructure
6. Incrementally scale out the use of Mode 2
BUT… DO NOT MODE 1 YOUR MODE 2 ROLLOUT

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FINAL THOUGHTS FOR THE DAY
Is 2 Speed IT…
a) The end goal for IT?
b) A stepping stone to a multi-modal, fast IT world?
c) Completely the wrong thing to do – should go all out?