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WHY AGILE IS FAILING 
IN LARGE ENTERPRISES
WHY AGILE IS FAILING 
IN LARGE ENTERPRISES 
…and what you can do about it
A BRIEF HISTORICAL 
PERSPECTIVE
1943 
1950- 
1960s 
1985 
1990 
1995 
1996 
Jeff de Luca 
Feature 
Driven 
Development 
1997 
1998 
Robert Charette 
Lean 
Development 
2000 
2001 
USAF & NASA 
X-15 hypersonic jet 
Iterative 
Incremental Delivery 
Hirotaka Takeuchi 
& Ikujiro Nonaka 
The New New 
Product 
Development Game 
1990 - Sutherland & 
Schwaber 
Scrum Framework 
DSDN Consortium 
Dynamic System 
Development 
Method 
1996 - Beck, 
Cunningham, 
Jeffries 
Extreme 
Programming 
Alistair Cockburn 
Crystal 
Methodologies 
THE 
AGILE 
MANIFEST 
O 
Taiichi Ohno 
Toyota Production 
System 
Kanban 
Hardware Software
We are uncovering better ways of developing software by doing it 
and helping others do it. Through this work we have come to value: 
Individuals & 
interactions 
over Processes & tools 
Working software 
Comprehensive 
documentation 
over 
Customer collaboration over Contract negotiation 
Responding to change over Following a plan 
That is, while there is value in the items on the 
right, we value the items on the left more. 
Source: www.agilemanifesto.org 
MANIFESTO VALUES
MANIFESTO PRINCIPLES 
Satisfy the 
Customer 
Welcome 
Change 
Deliver 
Frequently 
Collaborate 
Daily 
Support & Trust 
Motivated 
Teams 
Promote 
Face-to-Face 
Conversations 
Deliver 
Working 
Software 
Promote 
Sustainable 
Pace 
Promote 
Technical 
Excellence 
Maximize 
Through 
Simplicity 
Have 
Self-Organized 
Teams 
Reflect & 
Adjust 
Regularly 
Source: www.agilemanifesto.org
BELIEFS ABOUT AGILE & 
TRANSFORMATION
Culture 
BELIEFS… 
Structure Practices
CULTURE DRIVEN 
Culture 
Structure Practices 
• Focused on changing 
hearts and minds 
• Focused on being agile 
rather than doing agile 
• Focused on values and 
principles
CULTURE DRIVEN 
Culture 
Structure Practices 
• Focused on changing 
hearts and minds 
• Focused on being agile 
rather than doing agile 
• Focused on values and 
principles 
• Belief that delivery 
systems will emerge 
based on new thinking
PRACTICES DRIVEN 
Practices 
Culture Structure 
• Focused on the things 
that you do 
• Focused on roles, 
ceremonies, and artifacts 
• Can be management 
driven or technically 
driven
PRACTICES DRIVEN 
Practices 
Culture Structure 
• Focused on the things 
that you do 
• Focused on roles, 
ceremonies, and artifacts 
• Can be management 
driven or technically 
driven 
• Belief that agile is a 
process or way to work
STRUCTURE DRIVEN 
Structure 
Practices Culture 
• Focused on forming 
teams and governing the 
flow of value 
• Focused on aligning the 
organization first
STRUCTURE DRIVEN 
Structure 
Practices Culture 
• Focused on forming 
teams and governing the 
flow of value 
• Focused on aligning the 
organization first 
• Belief that culture and 
practices only emerge 
within a rational structural 
and planning framework
WHERE TO START? 
Culture 
... all three are essential, 
but where you start 
is also essential… 
Structure Practices
LEADINGAGILE THEORY 
OF TRANSFORMATION
Theory of Transformation 
Agile transformation begins 
by defining a rational system 
of delivery for the enterprise
Theory of Transformation 
True agility comes by 
breaking dependencies 
between teams across the 
organization
Theory of Transformation 
Healthy culture and solid 
practices emerge within a 
rational delivery framework
WHY AGILE WORKS
Team
Team 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story
Team 
Database 
Report 
Screen 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story
Team 
Database 
Report 
Screen 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
Clarity
Team 
Database 
Report 
Screen 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
Clarity Accountability
Team 
Database 
Report 
Screen 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
Clarity Accountability 
Measureable 
Progress
Team 
Database 
Report 
Screen 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
Clarity Accountability 
Measureable 
Progress 
Few if any 
dependencies
WHY AGILE WORKS 
AT SCALE
Team 
Database 
Report 
Screen 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
Clarity Accountability 
Measureable 
Progress
Team 
Database 
Report 
Screen 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
Governance Accountability 
Measureable 
Progress
Team 
Database 
Report 
Screen 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
Structure 
Measureable 
Progress 
Governance
Team 
Database 
Report 
Screen 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
Structure 
Metrics & 
Tools 
Governance
Team 
Database 
Report 
Screen 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
Structure 
Metrics & 
Tools 
Governance 
Teams have 
autonomy across 
the organization
WHY AGILE FAILS
Team 
Database 
Report 
Screen 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story
Team 
Database 
Report 
Screen 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
Lack of 
Clarity
Team 
Database 
Report 
Screen 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
Lack of 
Clarity 
Lack of 
Accountability
Team 
Database 
Report 
Screen 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
Lack of 
Clarity 
Lack of 
Accountability 
Lack of 
Measureable 
Progress
Team 
Database 
Report 
Screen 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
Lack of 
Clarity 
Lack of 
Accountability 
Lack of 
Measureable 
Progress 
Often caused by 
too many external 
dependencies
WHY AGILE FAILS 
AT SCALE
Team 
Database 
Report 
Screen 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
Lack of 
Clarity 
Lack of 
Accountability 
Lack of 
Measureable 
Progress
Team 
Database 
Report 
Screen 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
Lack of 
Governance 
Lack of 
Measureable 
Progress 
Lack of 
Accountability
Team 
Database 
Report 
Screen 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
Lack of 
Structure 
Lack of 
Measureable 
Progress 
Lack of 
Governance
Team 
Database 
Report 
Screen 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
Lack of 
Metrics & 
Tools 
Lack of 
Governance 
Lack of 
Structure
Team 
Database 
Report 
Screen 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
Lack of 
Metrics & 
Tools 
Lack of 
Governance 
Lack of 
Structure 
Too much 
coordination 
between teams
ORGANIZATIONAL 
BARRIERS TO AGILE
Team
Matrixed 
Organizations 
Team
Matrixed 
Organizations 
Limited Access 
to Subject Matter 
Expertise 
Non-instantly 
Available 
Resources 
Team
Matrixed 
Organizations 
Limited Access 
to Subject Matter 
Expertise 
Non-instantly 
Available 
Resources 
Shared 
Requirements 
Between Teams 
Team
Matrixed 
Organizations 
Limited Access 
to Subject Matter 
Expertise 
Non-instantly 
Available 
Resources 
Too Much Work 
In Process 
Shared 
Requirements 
Between Teams 
Team
Matrixed 
Organizations 
Limited Access 
to Subject Matter 
Expertise 
Non-instantly 
Available 
Resources 
Unbalanced 
Capacity and 
Demand 
Shared 
Requirements 
Between Teams 
Team
Matrixed 
Organizations 
Limited Access 
to Subject Matter 
Expertise 
Non-instantly 
Available 
Resources 
Unbalanced 
Capacity and 
Demand 
Shared 
Requirements 
Between Teams 
Large Products 
with Diverse 
Technology 
Team
Matrixed 
Organizations 
Limited Access 
to Subject Matter 
Expertise 
Non-instantly 
Available 
Resources 
Unbalanced 
Capacity and 
Demand 
Shared 
Requirements 
Between Teams 
Technical Debt & 
Defects 
Large Products 
with Diverse 
Technology 
Team
Matrixed 
Organizations 
Limited Access 
to Subject Matter 
Expertise 
Non-instantly 
Available 
Resources 
Unbalanced 
Capacity and 
Demand 
Low Cohesion & 
Tight Coupling 
Shared 
Requirements 
Between Teams 
Technical Debt & 
Defects 
Large Products 
with Diverse 
Technology 
Team
Corollary One: 
Solving for the issues that get 
in the way of effectively 
practicing agile is what should 
guide your agile 
transformation initiative
MAPPING YOUR AGILE 
TRANSFORMATION
Predictability 
Adaptability 
What does your company value when planning?
Emergence 
What do your customers 
value from a planning 
perspective? 
Convergence
Predictability 
Adaptability 
Emergence 
Convergence
Predictability 
Adaptability 
Emergence 
AE 
PC 
Convergence
Predictability 
Adaptability 
Emergence 
PE AE 
PC AC 
Convergence
Predictability 
Adaptability 
Emergence 
PE AE 
PC AC 
Convergence 
Ad-Hoc
Predictability 
Adaptability 
Emergence 
PE AE 
PC AC 
Convergence 
Ad-Hoc 
Traditional
Predictability 
Adaptability 
Emergence 
PE AE 
PC AC 
Convergence 
Ad-Hoc 
Traditional Agile
Predictability 
Adaptability 
Emergence 
Lean Startup 
PE AE 
PC AC 
Convergence 
Ad-Hoc 
Traditional Agile
Predictability 
Adaptability 
Emergence 
Lean Startup 
PE AE 
PC AC 
Convergence 
Ad-Hoc 
Project 
Traditional Agile
Predictability 
Adaptability 
Emergence 
Lean Startup 
Project Pilot 
PE AE 
PC AC 
Convergence 
Ad-Hoc 
Traditional Agile
Predictability 
Adaptability 
Emergence 
Lean Startup 
Project Pilot 
PE AE 
PC AC 
Convergence 
Ad-Hoc 
Traditional Agile
Predictability 
Adaptability 
Emergence 
Lean Startup 
Adopt Pilot 
PE AE 
PC AC 
Convergence 
Ad-Hoc 
Traditional Agile
Predictability 
Adaptability 
Emergence 
Lean Startup 
PE AE 
PC AC 
Convergence 
Ad-Hoc 
LOB 
Traditional Agile
Predictability 
Adaptability 
Emergence 
Lean Startup 
PE AE 
PC AC 
Convergence 
Ad-Hoc 
Low Trust 
LOB 
Traditional Agile
Predictability 
Adaptability 
Emergence 
Lean Startup 
PE AE 
PC AC 
Become Predictable 
Convergence 
Ad-Hoc 
Low Trust 
LOB 
LOB 
Traditional Agile
Predictability 
Adaptability 
Emergence 
Lean Startup 
PE AE 
PC AC 
Become Predictable 
Convergence 
Ad-Hoc 
Low Trust 
LOB 
LOB 
Traditional Agile
Predictability 
Adaptability 
Emergence 
Lean Startup 
PE AE 
PC AC 
Become Predictable 
Convergence 
Ad-Hoc 
Low Trust 
LOB 
LOB 
Lean/Agile Agile
Predictability 
Adaptability 
Emergence 
Lean Startup 
PE AE 
PC AC 
Become Predictable 
Reduce Batch Size 
Convergence 
Ad-Hoc 
Low Trust 
LOB 
LOB 
LOB 
Lean/Agile Agile
Predictability 
Adaptability 
Emergence 
Lean Startup 
Fully Decouple 
PE AE 
PC AC 
Become Predictable Reduce Batch Size 
Convergence 
Ad-Hoc 
Low Trust 
LOB 
LOB 
LOB 
LOB 
Lean/Agile Agile
Corollary Two: 
Agile can mean different 
things to different companies 
and not all agile approaches 
will work well for every 
organization
INCREMENTAL AND 
ITERATIVE IMPROVEMENT
Predictability 
Adaptability 
Emergence 
Lean Startup 
Fully Decouple 
PE AE 
PC AC 
Become Predictable Reduce Batch Size 
Convergence 
Ad-Hoc 
Low Trust 
Org 
Slice 
Lean/Agile Agile
Predictability 
Adaptability 
Emergence 
Lean Startup 
Fully Decouple 
PE AE 
PC AC 
Phase 
One 
Become Predictable Reduce Batch Size 
Convergence 
Ad-Hoc 
Low Trust 
Org 
Slice 
Lean/Agile Agile
Predictability 
Adaptability 
Emergence 
Lean Startup 
Fully Decouple 
PE AE 
PC AC 
Phase 
One 
Phase 
Two 
Become Predictable Reduce Batch Size 
Convergence 
Ad-Hoc 
Low Trust 
Org 
Slice 
Lean/Agile Agile
Predictability 
Adaptability 
Emergence 
Lean Startup 
Fully Decouple 
PE AE 
PC AC 
Phase 
One 
Phase 
Three 
Phase 
Two 
Become Predictable Reduce Batch Size 
Convergence 
Ad-Hoc 
Low Trust 
Org 
Slice 
Lean/Agile Agile
Predictability 
Adaptability 
Emergence 
Lean Startup 
Fully Decouple 
PE AE 
PC AC 
Phase 
One 
Phase 
Three 
Become Predictable Reduce Batch Size 
Convergence 
Ad-Hoc 
Low Trust 
Org 
Slice 
Lean/Agile Agile 
Phase 
Four 
Phase 
Two
Predictability 
Adaptability 
Emergence 
Lean Startup 
Fully Decouple 
PE AE 
PC AC 
Phase 
One 
Phase 
Three 
Become Predictable Reduce Batch Size 
Convergence 
Ad-Hoc 
Low Trust 
Org 
Slice 
Lean/Agile Agile 
Phase 
Four 
Phase 
Two 
Phase 
Five
Corollary Three: 
Organizational change can be 
mapped out in such a way 
that outcomes are 
measureable and predictable 
and economically justified
DEVELOPING YOUR 
ROADMAP
Team 
Database 
Report 
Screen 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
Governance Structure 
Metrics & 
Tools
Team 
Database 
Report 
Screen 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
Governance Structure 
Metrics & 
Tools
Team 
Database 
Report 
Screen 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
Structure 
Metrics & 
Tools 
Governance
Team 
Database 
Report 
Screen 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
User Story 
Structure 
Metrics & 
Tools 
Governance
STRUCTURE
Services Teams – These teams 
support common services across 
product lines. These teams support the 
needs of the product teams. 
Team
Product Teams – These teams 
integrate services and write customer 
facing features. This is the proto-typical 
Scrum team. 
Services Teams – These teams 
support common services across 
product lines. These teams support the 
needs of the product teams. 
Team 
Team
Programs Teams – These teams 
define requirements, set technical 
direction, and provide context and 
coordination. 
Product Teams – These teams 
integrate services and write customer 
facing features. This is the proto-typical 
Scrum team. 
Services Teams – These teams 
support common services across 
product lines. These teams support the 
needs of the product teams. 
Team 
Team 
Team
Portfolio Teams – These teams 
govern the portfolio and make sure that 
work is moving through the system. 
Programs Teams – These teams 
define requirements, set technical 
direction, and provide context and 
coordination. 
Product Teams – These teams 
integrate services and write customer 
facing features. This is the proto-typical 
Scrum team. 
Services Teams – These teams 
support common services across 
product lines. These teams support the 
needs of the product teams. 
Team 
Team 
Team 
Team
Team Team Team 
Team Team Team Team 
Product & 
Services 
Teams
Team Team Team 
Team Team Team 
Team Team Team Team 
Program 
Teams 
Product & 
Services 
Teams
Team 
Team Team Team 
Team Team Team 
Team Team Team Team 
Portfolio 
Teams 
Program 
Teams 
Product & 
Services 
Teams
GOVERNANCE
Team 
Team Team Team 
Team Team Team 
Team Team Team Team 
Portfolio 
Teams 
Program 
Teams 
Product & 
Services 
Teams
Portfolio 
Teams 
Product & 
Services 
Teams 
Scrum 
Team 
Team Team Team 
Team Team Team 
Team Team Team Team 
Program 
Teams
Portfolio 
Teams 
Program 
Teams 
Product & 
Services 
Teams 
Kanban 
Scrum 
Team 
Team Team Team 
Team Team Team 
Team Team Team Team
Portfolio 
Teams 
Program 
Teams 
Product & 
Services 
Teams 
Kanban 
Kanban 
Scrum 
Team 
Team Team Team 
Team Team Team 
Team Team Team Team
METRICS
Portfolio 
Teams 
Program 
Teams 
Product & 
Services 
Teams 
Kanban 
Kanban 
Scrum 
Team 
Team Team Team 
Team Team Team 
Team Team Team Team
Portfolio 
Teams 
Program 
Teams 
Product & 
Services 
Teams 
Kanban 
Kanban 
Scrum 
Team 
Team Team Team 
• Backlog Size 
• Velocity 
• Burndown 
• Escaped Defects 
• Commit % Ratio 
• Acceptance % Ratio 
• Scope Change
Portfolio 
Teams 
Program 
Teams 
Product & 
Services 
Teams 
Kanban 
Kanban 
Scrum 
Team 
• Cycle Time 
• Features Blocked 
• Rework/Defects 
• Backlog Size 
• Velocity 
• Burndown 
• Escaped Defects 
• Commit % Rate 
• Acceptance % Ratio 
• Scope Change
Portfolio 
Teams 
Program 
Teams 
Product & 
Services 
Teams 
Kanban 
Kanban 
Scrum 
• Takt Time/Cycle Time 
• Time/Cost/Scope/Value 
• RIO/Capitalization 
• Cycle Time 
• Features Blocked 
• Rework/Defects 
• Backlog Size 
• Velocity 
• Burndown 
• Escaped Defects 
• Commit % Ratio 
• Acceptance % Ratio 
• Scope Change
Corollary Four: 
Organizational constructs, 
governance models, metrics 
and controls can be 
established without violating 
the principles of agile
INCREMENTAL 
TRANSFORMATION
Portfolio 
Teams 
Program 
Teams 
Product & 
Services 
Teams 
Kanban 
Kanban 
Scrum 
Team 
Agile Pilot 
Team Team Team 
Team Team Team 
Team Team Team Team 
Increment One
Portfolio 
Teams 
Program 
Teams 
Product & 
Services 
Teams 
Kanban 
Kanban 
Scrum 
Team 
Agile Pilot 
Team Team Team 
Team Team Team 
Team Team Team Team 
Increment One 
Agile Rollout 
Increment Two
Portfolio 
Teams 
Program 
Teams 
Product & 
Services 
Teams 
Kanban 
Kanban 
Scrum 
Team 
Agile Pilot 
Team Team Team 
Team Team Team 
Team Team Team Team 
Increment One 
Agile Rollout 
Three - N
ITERATIVE 
TRANSFORMATION
Portfolio 
Teams 
Program 
Teams 
Product & 
Services 
Teams 
Kanban 
Kanban 
Scrum 
Team 
Agile Pilot 
Team Team Team 
Team Team Team 
Team Team Team Team 
Iteration One
Portfolio 
Teams 
Program 
Teams 
Product & 
Services 
Teams 
Kanban 
Kanban 
Scrum 
Team 
Agile Pilot 
Team Team Team 
Team Team Team 
Team Team Team Team 
Iteration Two
Portfolio 
Teams 
Program 
Teams 
Product & 
Services 
Teams 
Kanban 
Kanban 
Scrum 
Team 
Agile Pilot 
Team Team Team 
Team Team Team 
Team Team Team Team 
Iteration Three
Portfolio 
Teams 
Program 
Teams 
Product & 
Services 
Teams 
Kanban 
Kanban 
Scrum 
Agile Pilot 
Team Team Team 
Iteration Four 
Team 
Team Team Team 
Team Team Team Team
Portfolio 
Teams 
Program 
Teams 
Product & 
Services 
Teams 
Kanban 
Kanban 
Scrum 
Agile Pilot 
Team Team 
Team Team Team 
Team Team 
Team Team 
Iteration Five 
Team 
Team
ITERATIVE & 
INCREMETNAL CHANGE
Portfolio 
Teams 
Program 
Teams 
Product & 
Services 
Teams 
Kanban 
Kanban 
Scrum 
Agile Pilot 
Team Team 
Team Team Team 
Team Team 
Team Team 
Iteration One 
Team 
Team
Portfolio 
Teams 
Program 
Teams 
Product & 
Services 
Teams 
Kanban 
Kanban 
Scrum 
Agile Pilot 
Team Team 
Team Team Team 
Team Team 
Team Team 
Team 
Team
Portfolio 
Teams 
Program 
Teams 
Product & 
Services 
Teams 
Kanban 
Kanban 
Scrum 
Agile Pilot 
Team Team 
Team Team Team 
Team Team Team 
Iteration Three 
Agile Rollout 
Iteration One 
Team 
Team 
Team
Portfolio 
Teams 
Program 
Teams 
Product & 
Services 
Teams 
Kanban 
Kanban 
Scrum 
Agile Pilot 
Team Team 
Team Team Team 
Team Team Team 
Iteration Four 
Agile Rollout 
Iteration Two 
Team 
Team 
Team
Portfolio 
Teams 
Program 
Teams 
Product & 
Services 
Teams 
Kanban 
Kanban 
Scrum 
Agile Pilot 
Team Team 
Team Team Team 
Team Team Team 
Iteration Five 
Agile Rollout 
Iteration Three 
Team 
Team 
Team
Corollary Five: 
Organizations can adopt agile 
safely and pragmatically by 
iteratively and incrementally 
introducing structure, 
governance, and metrics and 
maturing practices and culture 
over time
SUMMARY
Theory of Transformation 
Agile transformation begins 
by defining a rational system 
of delivery for the enterprise
Theory of Transformation 
True agility comes by 
breaking dependencies 
between teams across the 
organization
Theory of Transformation 
Healthy culture and solid 
practices emerge within a 
rational delivery framework
Corollary One: 
Solving for the issues that get 
in the way of effectively 
practicing agile is what should 
guide your agile 
transformation initiative
Corollary Two: 
Agile can mean different 
things to different companies 
and not all agile approaches 
will work well for every 
organization
Corollary Three: 
Organizational change can be 
mapped out in such a way 
that outcomes are 
measureable and predictable 
and economically justified
Corollary Four: 
Organizational constructs, 
governance models, metrics 
and controls can be 
established without violating 
the principles of agile
Corollary Five: 
Organizations can adopt agile 
safely and pragmatically by 
iteratively and incrementally 
introducing structure, 
governance, and metrics and 
maturing practices and culture 
over time
Summary 
By focusing on the fundamentals 
of agile delivery, while 
systematically and methodically 
breaking dependencies, we can 
achieve true enterprise agility
WHY AGILE IS FAILING 
IN LARGE ENTERPRISES 
…and what you can do about it

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Why Agile is Failing in Large Enterprises And What You Can Do About It

  • 1. WHY AGILE IS FAILING IN LARGE ENTERPRISES
  • 2. WHY AGILE IS FAILING IN LARGE ENTERPRISES …and what you can do about it
  • 3. A BRIEF HISTORICAL PERSPECTIVE
  • 4. 1943 1950- 1960s 1985 1990 1995 1996 Jeff de Luca Feature Driven Development 1997 1998 Robert Charette Lean Development 2000 2001 USAF & NASA X-15 hypersonic jet Iterative Incremental Delivery Hirotaka Takeuchi & Ikujiro Nonaka The New New Product Development Game 1990 - Sutherland & Schwaber Scrum Framework DSDN Consortium Dynamic System Development Method 1996 - Beck, Cunningham, Jeffries Extreme Programming Alistair Cockburn Crystal Methodologies THE AGILE MANIFEST O Taiichi Ohno Toyota Production System Kanban Hardware Software
  • 5. We are uncovering better ways of developing software by doing it and helping others do it. Through this work we have come to value: Individuals & interactions over Processes & tools Working software Comprehensive documentation over Customer collaboration over Contract negotiation Responding to change over Following a plan That is, while there is value in the items on the right, we value the items on the left more. Source: www.agilemanifesto.org MANIFESTO VALUES
  • 6. MANIFESTO PRINCIPLES Satisfy the Customer Welcome Change Deliver Frequently Collaborate Daily Support & Trust Motivated Teams Promote Face-to-Face Conversations Deliver Working Software Promote Sustainable Pace Promote Technical Excellence Maximize Through Simplicity Have Self-Organized Teams Reflect & Adjust Regularly Source: www.agilemanifesto.org
  • 7. BELIEFS ABOUT AGILE & TRANSFORMATION
  • 9. CULTURE DRIVEN Culture Structure Practices • Focused on changing hearts and minds • Focused on being agile rather than doing agile • Focused on values and principles
  • 10. CULTURE DRIVEN Culture Structure Practices • Focused on changing hearts and minds • Focused on being agile rather than doing agile • Focused on values and principles • Belief that delivery systems will emerge based on new thinking
  • 11. PRACTICES DRIVEN Practices Culture Structure • Focused on the things that you do • Focused on roles, ceremonies, and artifacts • Can be management driven or technically driven
  • 12. PRACTICES DRIVEN Practices Culture Structure • Focused on the things that you do • Focused on roles, ceremonies, and artifacts • Can be management driven or technically driven • Belief that agile is a process or way to work
  • 13. STRUCTURE DRIVEN Structure Practices Culture • Focused on forming teams and governing the flow of value • Focused on aligning the organization first
  • 14. STRUCTURE DRIVEN Structure Practices Culture • Focused on forming teams and governing the flow of value • Focused on aligning the organization first • Belief that culture and practices only emerge within a rational structural and planning framework
  • 15. WHERE TO START? Culture ... all three are essential, but where you start is also essential… Structure Practices
  • 16. LEADINGAGILE THEORY OF TRANSFORMATION
  • 17. Theory of Transformation Agile transformation begins by defining a rational system of delivery for the enterprise
  • 18. Theory of Transformation True agility comes by breaking dependencies between teams across the organization
  • 19. Theory of Transformation Healthy culture and solid practices emerge within a rational delivery framework
  • 21. Team
  • 22. Team User Story User Story User Story User Story User Story User Story User Story
  • 23. Team Database Report Screen User Story User Story User Story User Story User Story User Story User Story
  • 24. Team Database Report Screen User Story User Story User Story User Story User Story User Story User Story Clarity
  • 25. Team Database Report Screen User Story User Story User Story User Story User Story User Story User Story Clarity Accountability
  • 26. Team Database Report Screen User Story User Story User Story User Story User Story User Story User Story Clarity Accountability Measureable Progress
  • 27. Team Database Report Screen User Story User Story User Story User Story User Story User Story User Story Clarity Accountability Measureable Progress Few if any dependencies
  • 28. WHY AGILE WORKS AT SCALE
  • 29. Team Database Report Screen User Story User Story User Story User Story User Story User Story User Story Clarity Accountability Measureable Progress
  • 30. Team Database Report Screen User Story User Story User Story User Story User Story User Story User Story Governance Accountability Measureable Progress
  • 31. Team Database Report Screen User Story User Story User Story User Story User Story User Story User Story Structure Measureable Progress Governance
  • 32. Team Database Report Screen User Story User Story User Story User Story User Story User Story User Story Structure Metrics & Tools Governance
  • 33. Team Database Report Screen User Story User Story User Story User Story User Story User Story User Story Structure Metrics & Tools Governance Teams have autonomy across the organization
  • 35. Team Database Report Screen User Story User Story User Story User Story User Story User Story User Story
  • 36. Team Database Report Screen User Story User Story User Story User Story User Story User Story User Story Lack of Clarity
  • 37. Team Database Report Screen User Story User Story User Story User Story User Story User Story User Story Lack of Clarity Lack of Accountability
  • 38. Team Database Report Screen User Story User Story User Story User Story User Story User Story User Story Lack of Clarity Lack of Accountability Lack of Measureable Progress
  • 39. Team Database Report Screen User Story User Story User Story User Story User Story User Story User Story Lack of Clarity Lack of Accountability Lack of Measureable Progress Often caused by too many external dependencies
  • 40. WHY AGILE FAILS AT SCALE
  • 41. Team Database Report Screen User Story User Story User Story User Story User Story User Story User Story Lack of Clarity Lack of Accountability Lack of Measureable Progress
  • 42. Team Database Report Screen User Story User Story User Story User Story User Story User Story User Story Lack of Governance Lack of Measureable Progress Lack of Accountability
  • 43. Team Database Report Screen User Story User Story User Story User Story User Story User Story User Story Lack of Structure Lack of Measureable Progress Lack of Governance
  • 44. Team Database Report Screen User Story User Story User Story User Story User Story User Story User Story Lack of Metrics & Tools Lack of Governance Lack of Structure
  • 45. Team Database Report Screen User Story User Story User Story User Story User Story User Story User Story Lack of Metrics & Tools Lack of Governance Lack of Structure Too much coordination between teams
  • 47. Team
  • 49. Matrixed Organizations Limited Access to Subject Matter Expertise Non-instantly Available Resources Team
  • 50. Matrixed Organizations Limited Access to Subject Matter Expertise Non-instantly Available Resources Shared Requirements Between Teams Team
  • 51. Matrixed Organizations Limited Access to Subject Matter Expertise Non-instantly Available Resources Too Much Work In Process Shared Requirements Between Teams Team
  • 52. Matrixed Organizations Limited Access to Subject Matter Expertise Non-instantly Available Resources Unbalanced Capacity and Demand Shared Requirements Between Teams Team
  • 53. Matrixed Organizations Limited Access to Subject Matter Expertise Non-instantly Available Resources Unbalanced Capacity and Demand Shared Requirements Between Teams Large Products with Diverse Technology Team
  • 54. Matrixed Organizations Limited Access to Subject Matter Expertise Non-instantly Available Resources Unbalanced Capacity and Demand Shared Requirements Between Teams Technical Debt & Defects Large Products with Diverse Technology Team
  • 55. Matrixed Organizations Limited Access to Subject Matter Expertise Non-instantly Available Resources Unbalanced Capacity and Demand Low Cohesion & Tight Coupling Shared Requirements Between Teams Technical Debt & Defects Large Products with Diverse Technology Team
  • 56. Corollary One: Solving for the issues that get in the way of effectively practicing agile is what should guide your agile transformation initiative
  • 57. MAPPING YOUR AGILE TRANSFORMATION
  • 58. Predictability Adaptability What does your company value when planning?
  • 59. Emergence What do your customers value from a planning perspective? Convergence
  • 62. Predictability Adaptability Emergence PE AE PC AC Convergence
  • 63. Predictability Adaptability Emergence PE AE PC AC Convergence Ad-Hoc
  • 64. Predictability Adaptability Emergence PE AE PC AC Convergence Ad-Hoc Traditional
  • 65. Predictability Adaptability Emergence PE AE PC AC Convergence Ad-Hoc Traditional Agile
  • 66. Predictability Adaptability Emergence Lean Startup PE AE PC AC Convergence Ad-Hoc Traditional Agile
  • 67. Predictability Adaptability Emergence Lean Startup PE AE PC AC Convergence Ad-Hoc Project Traditional Agile
  • 68. Predictability Adaptability Emergence Lean Startup Project Pilot PE AE PC AC Convergence Ad-Hoc Traditional Agile
  • 69. Predictability Adaptability Emergence Lean Startup Project Pilot PE AE PC AC Convergence Ad-Hoc Traditional Agile
  • 70. Predictability Adaptability Emergence Lean Startup Adopt Pilot PE AE PC AC Convergence Ad-Hoc Traditional Agile
  • 71. Predictability Adaptability Emergence Lean Startup PE AE PC AC Convergence Ad-Hoc LOB Traditional Agile
  • 72. Predictability Adaptability Emergence Lean Startup PE AE PC AC Convergence Ad-Hoc Low Trust LOB Traditional Agile
  • 73. Predictability Adaptability Emergence Lean Startup PE AE PC AC Become Predictable Convergence Ad-Hoc Low Trust LOB LOB Traditional Agile
  • 74. Predictability Adaptability Emergence Lean Startup PE AE PC AC Become Predictable Convergence Ad-Hoc Low Trust LOB LOB Traditional Agile
  • 75. Predictability Adaptability Emergence Lean Startup PE AE PC AC Become Predictable Convergence Ad-Hoc Low Trust LOB LOB Lean/Agile Agile
  • 76. Predictability Adaptability Emergence Lean Startup PE AE PC AC Become Predictable Reduce Batch Size Convergence Ad-Hoc Low Trust LOB LOB LOB Lean/Agile Agile
  • 77. Predictability Adaptability Emergence Lean Startup Fully Decouple PE AE PC AC Become Predictable Reduce Batch Size Convergence Ad-Hoc Low Trust LOB LOB LOB LOB Lean/Agile Agile
  • 78. Corollary Two: Agile can mean different things to different companies and not all agile approaches will work well for every organization
  • 80. Predictability Adaptability Emergence Lean Startup Fully Decouple PE AE PC AC Become Predictable Reduce Batch Size Convergence Ad-Hoc Low Trust Org Slice Lean/Agile Agile
  • 81. Predictability Adaptability Emergence Lean Startup Fully Decouple PE AE PC AC Phase One Become Predictable Reduce Batch Size Convergence Ad-Hoc Low Trust Org Slice Lean/Agile Agile
  • 82. Predictability Adaptability Emergence Lean Startup Fully Decouple PE AE PC AC Phase One Phase Two Become Predictable Reduce Batch Size Convergence Ad-Hoc Low Trust Org Slice Lean/Agile Agile
  • 83. Predictability Adaptability Emergence Lean Startup Fully Decouple PE AE PC AC Phase One Phase Three Phase Two Become Predictable Reduce Batch Size Convergence Ad-Hoc Low Trust Org Slice Lean/Agile Agile
  • 84. Predictability Adaptability Emergence Lean Startup Fully Decouple PE AE PC AC Phase One Phase Three Become Predictable Reduce Batch Size Convergence Ad-Hoc Low Trust Org Slice Lean/Agile Agile Phase Four Phase Two
  • 85. Predictability Adaptability Emergence Lean Startup Fully Decouple PE AE PC AC Phase One Phase Three Become Predictable Reduce Batch Size Convergence Ad-Hoc Low Trust Org Slice Lean/Agile Agile Phase Four Phase Two Phase Five
  • 86. Corollary Three: Organizational change can be mapped out in such a way that outcomes are measureable and predictable and economically justified
  • 88. Team Database Report Screen User Story User Story User Story User Story User Story User Story User Story Governance Structure Metrics & Tools
  • 89. Team Database Report Screen User Story User Story User Story User Story User Story User Story User Story Governance Structure Metrics & Tools
  • 90. Team Database Report Screen User Story User Story User Story User Story User Story User Story User Story Structure Metrics & Tools Governance
  • 91. Team Database Report Screen User Story User Story User Story User Story User Story User Story User Story Structure Metrics & Tools Governance
  • 93. Services Teams – These teams support common services across product lines. These teams support the needs of the product teams. Team
  • 94. Product Teams – These teams integrate services and write customer facing features. This is the proto-typical Scrum team. Services Teams – These teams support common services across product lines. These teams support the needs of the product teams. Team Team
  • 95. Programs Teams – These teams define requirements, set technical direction, and provide context and coordination. Product Teams – These teams integrate services and write customer facing features. This is the proto-typical Scrum team. Services Teams – These teams support common services across product lines. These teams support the needs of the product teams. Team Team Team
  • 96. Portfolio Teams – These teams govern the portfolio and make sure that work is moving through the system. Programs Teams – These teams define requirements, set technical direction, and provide context and coordination. Product Teams – These teams integrate services and write customer facing features. This is the proto-typical Scrum team. Services Teams – These teams support common services across product lines. These teams support the needs of the product teams. Team Team Team Team
  • 97. Team Team Team Team Team Team Team Product & Services Teams
  • 98. Team Team Team Team Team Team Team Team Team Team Program Teams Product & Services Teams
  • 99. Team Team Team Team Team Team Team Team Team Team Team Portfolio Teams Program Teams Product & Services Teams
  • 101. Team Team Team Team Team Team Team Team Team Team Team Portfolio Teams Program Teams Product & Services Teams
  • 102. Portfolio Teams Product & Services Teams Scrum Team Team Team Team Team Team Team Team Team Team Team Program Teams
  • 103. Portfolio Teams Program Teams Product & Services Teams Kanban Scrum Team Team Team Team Team Team Team Team Team Team Team
  • 104. Portfolio Teams Program Teams Product & Services Teams Kanban Kanban Scrum Team Team Team Team Team Team Team Team Team Team Team
  • 106. Portfolio Teams Program Teams Product & Services Teams Kanban Kanban Scrum Team Team Team Team Team Team Team Team Team Team Team
  • 107. Portfolio Teams Program Teams Product & Services Teams Kanban Kanban Scrum Team Team Team Team • Backlog Size • Velocity • Burndown • Escaped Defects • Commit % Ratio • Acceptance % Ratio • Scope Change
  • 108. Portfolio Teams Program Teams Product & Services Teams Kanban Kanban Scrum Team • Cycle Time • Features Blocked • Rework/Defects • Backlog Size • Velocity • Burndown • Escaped Defects • Commit % Rate • Acceptance % Ratio • Scope Change
  • 109. Portfolio Teams Program Teams Product & Services Teams Kanban Kanban Scrum • Takt Time/Cycle Time • Time/Cost/Scope/Value • RIO/Capitalization • Cycle Time • Features Blocked • Rework/Defects • Backlog Size • Velocity • Burndown • Escaped Defects • Commit % Ratio • Acceptance % Ratio • Scope Change
  • 110. Corollary Four: Organizational constructs, governance models, metrics and controls can be established without violating the principles of agile
  • 112. Portfolio Teams Program Teams Product & Services Teams Kanban Kanban Scrum Team Agile Pilot Team Team Team Team Team Team Team Team Team Team Increment One
  • 113. Portfolio Teams Program Teams Product & Services Teams Kanban Kanban Scrum Team Agile Pilot Team Team Team Team Team Team Team Team Team Team Increment One Agile Rollout Increment Two
  • 114. Portfolio Teams Program Teams Product & Services Teams Kanban Kanban Scrum Team Agile Pilot Team Team Team Team Team Team Team Team Team Team Increment One Agile Rollout Three - N
  • 116. Portfolio Teams Program Teams Product & Services Teams Kanban Kanban Scrum Team Agile Pilot Team Team Team Team Team Team Team Team Team Team Iteration One
  • 117. Portfolio Teams Program Teams Product & Services Teams Kanban Kanban Scrum Team Agile Pilot Team Team Team Team Team Team Team Team Team Team Iteration Two
  • 118. Portfolio Teams Program Teams Product & Services Teams Kanban Kanban Scrum Team Agile Pilot Team Team Team Team Team Team Team Team Team Team Iteration Three
  • 119. Portfolio Teams Program Teams Product & Services Teams Kanban Kanban Scrum Agile Pilot Team Team Team Iteration Four Team Team Team Team Team Team Team Team
  • 120. Portfolio Teams Program Teams Product & Services Teams Kanban Kanban Scrum Agile Pilot Team Team Team Team Team Team Team Team Team Iteration Five Team Team
  • 122. Portfolio Teams Program Teams Product & Services Teams Kanban Kanban Scrum Agile Pilot Team Team Team Team Team Team Team Team Team Iteration One Team Team
  • 123. Portfolio Teams Program Teams Product & Services Teams Kanban Kanban Scrum Agile Pilot Team Team Team Team Team Team Team Team Team Team Team
  • 124. Portfolio Teams Program Teams Product & Services Teams Kanban Kanban Scrum Agile Pilot Team Team Team Team Team Team Team Team Iteration Three Agile Rollout Iteration One Team Team Team
  • 125. Portfolio Teams Program Teams Product & Services Teams Kanban Kanban Scrum Agile Pilot Team Team Team Team Team Team Team Team Iteration Four Agile Rollout Iteration Two Team Team Team
  • 126. Portfolio Teams Program Teams Product & Services Teams Kanban Kanban Scrum Agile Pilot Team Team Team Team Team Team Team Team Iteration Five Agile Rollout Iteration Three Team Team Team
  • 127. Corollary Five: Organizations can adopt agile safely and pragmatically by iteratively and incrementally introducing structure, governance, and metrics and maturing practices and culture over time
  • 129. Theory of Transformation Agile transformation begins by defining a rational system of delivery for the enterprise
  • 130. Theory of Transformation True agility comes by breaking dependencies between teams across the organization
  • 131. Theory of Transformation Healthy culture and solid practices emerge within a rational delivery framework
  • 132. Corollary One: Solving for the issues that get in the way of effectively practicing agile is what should guide your agile transformation initiative
  • 133. Corollary Two: Agile can mean different things to different companies and not all agile approaches will work well for every organization
  • 134. Corollary Three: Organizational change can be mapped out in such a way that outcomes are measureable and predictable and economically justified
  • 135. Corollary Four: Organizational constructs, governance models, metrics and controls can be established without violating the principles of agile
  • 136. Corollary Five: Organizations can adopt agile safely and pragmatically by iteratively and incrementally introducing structure, governance, and metrics and maturing practices and culture over time
  • 137. Summary By focusing on the fundamentals of agile delivery, while systematically and methodically breaking dependencies, we can achieve true enterprise agility
  • 138. WHY AGILE IS FAILING IN LARGE ENTERPRISES …and what you can do about it