Erasing the Artificial Boundaries between “IT” and “The Business” by Bob Fischer - Agile...

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Agile Consulting Services

ErasingtheArtificialBoundariesbetween“IT”and“TheBusiness”

May2016,AgileMaine

Agile Experts• Agilepracticeestablishedin2008• Coreteamcomprisedofindustryexperts• ServingentireUSwithinternationalcoverageasneeded• ScalableAgiletransformationapproach• EnterprisewideAgilecurriculum• Vastcoachingnetworkwithlocalcoverageinmostplaces• 150currentlyonengagement

Agile Offerings• Coaching– Executive, Program,Team, Technical• Training– Leadership,Technical, CSM,CSPO,CST,SAFe• Advisory– Industrybenchmarking&Consulting

Vital Statistics• 25yearoldprivatelyheldcompany• $200MillioninRevenue• 14offices• 1,200consultants

Suggestion:Writethingsdownfortheexercises.It

justworksbetter.

Agile Consulting ServicesOverview

• Whyisitimportanttoalignonthemeasurementsofsuccess?• ShouldITberunlikeanindependentprovideroftechnologyservices?

• Howdowordsshapehowyouthinkandbehave?Whois“thebusiness”?

• Whyisthemostimportantthing– yourvaluestream– oftenunmanaged?

• Nowwhat?

Agile Consulting ServicesTryitNow

• Take3minutesandwritedownhowyourgroupmeasuressuccess

• We’llcomebacktothisinafewminutes

OverallGoalsoftheOrganization

Operations

InformationTechnology Sales

Marketing Admin

Intheorythegoalsarestillthegoals,butinpractice….

Mission Deliverworldclass ITservicessupportingthesuccess ofourbusiness

Goals Deliverprojectson-time, onbudget,meeting allrequirements

Providehighlyavailable,high-performingsystems thatmeetourusers’needs

Providerapidandeffectiveresponse toissues andquestionsPreventsecurity incidentsfromoccurring

• Writedown:– Whatdoyouthinkofthismissionandgoals?– What,ifanything,doyouthinkismissing?

SalesCustomerSatisfactionNewProductIntroductionsGrossMargin

AverageSpeedofAnswerCostPerCallAccountConversionsTimetoFillOpenPositions

SystemAvailabilityOnTimeOnBudgetSecurityIncidents

SUPPLYCO

HomeMedicalInc.

AntrimUniversity

BigTravel

Customers

SUPPLYCO

SUPPLYCOGoals

BigTravelGoals

SUPPLYCOandBigTravelHaveDifferentGoals

IT MART

BusinessLineA

BusinessLineB

BusinessLineC

Customers

IToftencomplainsaboutnot”havingaseatatthetable”forproductvisioningandroad-mapping.Lackofsharedgoalsis

onereasonwhytheywouldn’t.

Youdon’thavethesamegoals Ihave!

Butthings likeourtechnologyroadmap

areimportant!

Output,Outcome, Impact– awaytothinkaboutsuccessmeasures

FromJeffPatton,AgileProductDesign

StartingContext

GreatIdea• Features• Capabilities

Output

Impact

OpportunityIssue

Outcome

IterativeDevelopment

Agile Consulting ServicesShowingtheConnection

HigherProfitability

GreaterCustomerSatisfaction

EasierfortheCustomer

FewercallstotheCallCenter

LowerCallCenterCosts

Output Outcome Impact

NewCustomerSelf-ServiceFeatures

Agile Consulting ServicesMovingtoMoreSharedGoals

ITGoals

EnterpriseGoals

TypicallyOutcome,ImpactMeasures

EnterpriseKPI1EnterpriseKPI2EnterpriseKPI3EnterpriseKPI4

EnterpriseKPI1EnterpriseKPI2EnterpriseKPI3

DepartmentKPI1DepartmentKPI2

EnterpriseKPI1EnterpriseKPI2EnterpriseKPI4

DepartmentKPI1DepartmentKPI2

CascadesomeOutcome,ImpactKPIsacrosstheorganization

KPI=KeyPerformanceIndicator

• Lookatthewaysyourorganizationmeasuressuccessyouwrotedownearlier– AretheseOutput,OutcomeorImpact-based?– Aretheydepartment-focusedorenterprise-focused

• Writedownthreeexamplesofgoalsthatcouldbesharedacrossyourorganization

CompletedUserStories

AttheTeamLevel

Valueisrealizedwhen:• Thecodehasshipped• Thecodeisused• Theuserrealizestheintendedoutcome• Theorganizationrealizestheintendedimpact

Output-OnlyMeasures• Velocity• Quality• Technical Debt

ContinueOutputMeasures• Velocity• Quality• Technical Debt

AddOutcomeMeasures(examples)• Migrationofissue

resolution fromcallcentertoweb

• Increasedconversionfromshopperstobuyers

Agile Consulting ServicesCoreIdeas

• Alignonimpactandoutcome-basedKPIsacrosstheorganization– ThesameKPIs,notsimilarones– ITshouldhaveaccountability forbusinessoutcomes

• Tieteamperformancegoalstooutcomes,impact,notonlyoutput

Startingsimpleisfine.Haveonesingleteamaligntoimpactand/oroutcomemeasures

WhatarethedownsidestothemodelofCustomer/SupplierforIT?

SUPPLYCO

HomeMedicalInc.

AntrimUniversity

BigTravel

Customers

SUPPLYCO

BANKRUPT(orsignificant business issues)

Afeeforservice

provider?

Anintegralpartof

organizationalsuccess??

WhatistheroleofIT?

Anintegralpartoforganizational

success.(Sowhydoesthedivisionbetween“IT”

and“TheBusiness”persist?)

Ifyou’vebeeninanagileorganization,thisistheonlyoptionthatmakessense

Language SocialRoles Practices

Affect

HowOrganizationsWorkTogether

Assertion:Wordsshapeour“reality”

• Doyouusethephrase“TheBusiness”1 inyourorganization?• Ifyes,whatdrawbacksdoyouseeinusingthatterm?

1 ThisquestionwasoriginallyposedtomebyMauriceHeffernan. Asimple questionwithalottoit.

Whenyouwalkintoastoretobuysomething,whenyougotoarestaurant,thebank,thepostoffice,youmayfindyourselfslippingintopre-establishedsocialroles.Youbecomeacustomerandspeakandactassuch.Andyoumaybetreatedbythesalespersonorwaiter,whoisalsoplayingarole,asacustomer.Arangeofconditionedpatternsofbehaviorcomeintoeffectbetweentwohumanbeingsthatdeterminethenatureoftheinteraction.Insteadofhumanbeings,conceptualmentalimagesareinteractingwitheachother.Themoreidentifiedpeoplearewiththeirrespectiveroles,themoreinauthentictherelationshipsbecome.

Tolle,Eckhart(2006-08-29).ANewEarth(Oprah#61):AwakeningtoYourLife'sPurpose(p.93).PenguinPublishingGroup.KindleEdition.

““

Whenabusinessgetsyourorderwrong,howdoyouinteractwiththecustomer

serviceagent?Doyouinteractthesamewaywithyourmanager?

Yourbestfriend?

IT “Customer”

• IfITisa“supplier”andthebusinesslinestaffare“customers”,whatbehaviorsmightyousee?Doyousee?

Agile Consulting ServicesProblematicPractices

• Sortingout“problems”withinITbehindcloseddoors• Developingstrategiesandplansinisolation• Conductingannual”CustomerSatisfaction”surveys• Having“internalfunding”withinITwithouttransparencyordiscussionforhowitistobeused

• Haveadialogue(attheteamlevel,organizationlevel)aboutanyissuesyou’veseenfromtheseparationbetweenITandthebusinesslinestheysupport

• Consciouslyadoptlanguageofpartnership(e.g. “team”)insteadofthelanguageofdivision(”supplier”,“theBusiness”,“Customer”)

• Adoptcollaborative,jointportfolioplanning• Eliminateunidirectional“CustomerSatisfaction

Surveys”,insteaduseretrospectivesatmultiplelevelsoftheorganization

• Watchyourownbehavior– seewhereyoudefaulttopre-establishedroles

• Whoinyourorganizationisresponsibleforend-to-endproductdevelopment:ConcepttoCash1

1 Poppendieck,MaryandTom,ImplementingLeanSoftwareDevelopment:FromConcepttoCash,AddisonWesley,2007

“… the work that creates results for customers is broken into pieces and scattered across numerous departments and units. In these companies, workers, managers and departments focus on each of the steps that would lead to creating results for customers, yet no one focuses on all the steps together as a unit... These companies suffer from a crisis of process.”

Michael Hammer, The Agenda

Agile Consulting ServicesCaseStudy:SoftwareDeliverytoDesktops

• Softwaredistributionforabout35,000desktops• End-to-endprocesssplitacrossmultiplegroups• Badqualitycouldleadtodisasters(e.g.allcallcenteremployeesunabletohandlecalls)

• Whenproblemsarosewelookedto– Assignblametoothers– Demonstrateourownlackofblame

TheFunctionalSiloshadGoals,Managers,StaffbutnooneOwnedtheWhole,End-to-End

Marketing

Product

Development

Testing

Manufacturing

Support

Agile Consulting ServicesTheTransformation

• Consultantworkedwithustoputtogethera”processteam”witha“processowner”tomanageend-to-enddelivery

• Theindividualsontheteamwereresponsibleforthesuccessofthewhole,notjusttheirparts– Weweresurprisedtofindouthowmuchtroublewecauseeachotherunintentionally

• Themeasurementsofsuccessnowfocusedonthewholedeliveryofvalue

• Ifdepartment-level“improvements”mightaffectapartnerintheprocess,wedidn’timplementthemwithouttalking

• Thingsgotdramaticallybetter

Marketing

Product

Development

Testing

Manufacturing

Support

Teamalignedongoals,improvementapproach

Agile Consulting ServicesAgileTransformationareOftenLimited

• IT-Driven• Notfullyend-to-end(e.g.portfoliomanagement,valuedeliverymeasurement,KPIs)

• Overallprocessesnotowned,ormanaged– Optimizedwithinsilos

WeareintheprocessofmovingtoAgile

Wearecontinuallyinspectingandimprovinghowwedelivervalue.Gettingbetteratagile

practicesisacriticalpartofthatongoingimprovement

• Considerhavingend-to-endprocessownershipteamsforkeyprocesses(e.g.“ConcepttoCash”)

• Measureandimprovethewhole,notjusttheparts.

• Writedownalistofspecificactionsyouplantotakeduringthenextweekanmonth

• Ifyoudon’tplananyactions,that’sfine

Agile Consulting ServicesContactMeWithanyComments,Questions

BobFischerbfischer@eliassen.com

• Thegoalsoftheorganizationshouldn’tbelostwhenyoubreak theorganizationintoparts,butitoftenis• Agileisaboutdeliveringvalue,butthevaluestreamcangetlostintheorganizationalsplit• Exercise:Nameyourvaluestreams• Whatisvalue?Output,Outcome,Impact• Itispossibletomanagetothewholeinsteadoftheparts,commonobjectivesareawaytostart.• Fragmentationleadstoun-ownedvaluestreams

– QuotefromMichaelHammer– Whatisavaluestream?

• Itispossibletoworktowardsthewholewithprocessteams– Whatarethey?– Howdotheywork?– Whyaretheychallenging

• TheinventionofITasaserviceprovider,andwhythatisaproblem.– Customer/Provider– automaticroles– Exercise:Customer/provider– Upstairs/downstairsrole

• Maymakesensefortransactionalwork tohaveservicesatisfactionsurveys,butproduct developmentisacombined teameffort• Whatarealternativestoannualcustomersatisfactionsurveys?• Wordsmatter“IT”and“TheBusiness”a• Concretesteps:

– Alignonoutcomeandimpactfocusedgoals,andhavethosetranscendorganizationalboundaries– Activelymanageyourvaluestreams– Movefrom“customersatisfactionsurveys”to“servicesatisfactionsurveys”fortransactionalservices(e.g.fixaPC,provision aphone,provideVPNaccess)– Eliminatesurveysforcollaborative,cross-organizationalwork– Makeuseofretrospectivesatthevalue-streamlevel