Agile Leadership: What It TakesJim Highsmith
2010 Jim Highsmith
Buy pizza & get out of the way.
Iteration Manager Project Leader Architect Data Base Specia list Dev eloper Security Specia list Tester
Dont micro-manage.
Product Manager
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There is no more NormalWithout exception, all of my biggest mistakes occurred because I moved too slowly. John Chambers, Cisco CEO
300 start-ups persisting with the initial business plan was the best single predictor of failure.
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Turbulence
Opportunity
Exploit the change: proactive agility Danger Survive the change: reactive agility2010 Jim Highsmith
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Core Business Strategy
Responsiveness2010 Jim Highsmith
Efficiency5
Business Responsiveness
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Create an Agile Business StrategyResponsiveness over Efficiency Turbulence how much, what kind, what areas? Business units & functional areas? IT Agility roadmap
Companies dont pass through life cycles, opportunities do. Sull2010 Jim Highsmith
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Three Levels of Agility CommitmentStrategicCEO
Chief Agility Officer Portfolio
CIO/VP
CAO
CTO
...
Operational
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Strategy & Continuous Delivery
Increasing Commitment
Adult Agility
Continuous DeliveryContinuous Deployment Continuous Integration Continuous Development
Agility
Agile 101
Strategic ImpactIncreasing Benefit & Investment
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ResearchTalking with managers & executives APLN Executive Council SEI Architecture Conference Agile 2010 Orlando Agile Performance Measures with Pat Reed What do Agile Managers Do?
Agile 2010 Australia Large Telecom presentation Accelerating Agility for Executives & Managers
Agile Management Mastery Course UC Berkeley
Cutter Summit
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Execution Levers
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Do your systems look like this?
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Quality MattersScientific Instrument Company, Canada Average results from 6 before- and 6 after-Agile projectsPrevious Performance Project Cost Project Schedule Cumulative Defects Staffing $2.8 Million 18 months 2,270 18 Current Performance $1.1 Million 13.5 months 381 11 Percent Improvement -$1.7M (-61%) -4.5 mo (-24%) -1,889 (-83%) -7 (-39%)
Source: Michael Mah, QSM Associates2010 Jim Highsmith
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Technical DebtCustomer ResponsivenessCost of Change (CoC)
Once on far right of curve, all choices are bad ones If nothing is done, it just gets worse With high technical debt, estimating is nearly impossible Only 3 strategies1. Do nothing, it gets worse 2. Replace, high cost/risk 3. Incremental refactoring, commitment to invest15
Actual CoC
Product Release
Technical Debt Optimal CoC
1 2 3 4 5 6 7 8 Years
2010 Jim Highsmith
Do Less: Reduce Work-in-ProcessMulti-tasking(Duration/Effort)
A
B
C
D
E
Engineer works on 5 projects How many calendar weeks will it take to complete a 2 week effort task?
48 weeks!!
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Do Less: Eliminate Marginal Value
2% of code used as writtenAlways 7% Often 13% Sometimes 16% Never Used 45% Rarely Used 19%
$35 billion DOD Software Crosstalk Journal 2002< 5% of code used Commercial Software, 400 projects over 15 years IEEE Conference 2001
Never or Rarely Used: 64%Standish Group Study, reported by CEO Jim Johnson, XP2002
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Inspire
Daniel Pink, Drive: The Surprising Truth about What Motivates Us2010 Jim Highsmith
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Be an Agile Leader
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There is a difference between half-assed and half-done.
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Agility is the ability to balance flexibility and structure.
Agility is the ability to create and respond to change in order to profit in a turbulent business environment.
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Simple Rules Dee HockSimple, clear purpose and principles give rise to complex, intelligent behavior. Complex rules and regulations give rise to simple, stupid behavior.
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Be AgilePublisher
Stock Exchange
Lessons LearnedEvolutionary Relevancy Collaboration
Brokerage2010 Jim Highsmith
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Your Organization2010 Jim Highsmith
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Rider of Paradox
Paradox: A statement that seems to contradict itself but may nevertheless be true.
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Predictable versus AdaptableID Task Name 1 1 Secure Financing 4 8 13 17 23 39 44 49 55 56 64 69 74 82 83 84 85 98 2 Form Corporation 3 File for State Approvals 4 Form Market Council 5 Systems Selection and Acquisition 6 Hire FFCS Staff 7 Develop Field Sales Manual & Forms 8 Develop Field Sales Training Material 9 Develop Insurance Products for FFCS 10 Form Customer Council 11 Develop FFCS Accounting Procedures 12 Obtain Legal Representation in Each State 13 Determine Maximum Finance Rate Permissible in Each State 14 Develop Field & Operational Incentive Plans 15 Custom Printing Implementation 16 Select Priority States 17 Vendor System Implementation 18 Develop FFCS Internal Procedures 19 Reforecast First Year Operating Projections 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 100% 100% 0% 0% 0% 0% Qtr 1, 1994 Qtr 2, 1994 100% 100% 63% Qtr 3, 1994 Qtr 4, 1994 Qtr 1, 1995 Qtr 2, 1995 Qtr 3, 1995 Qtr 4, 1995
Sales Management (SM)
108 20 Server and Communications Network 158 21 Telecommunications 168 22 Develop Internal, Management and Field Sales Reporting 181 23 HO Product Interfaces Testing 182 24 Vendor System Preview 183 25 FFCS Systems Running in 'Mock' Mode for Testing 184 26 Vendor System Installation and Training
Sales Analysis (18)
Prospecting (10)
Territory Management (8)
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May 2004
June 2004
July 2004
Adapting over Conforming2010 Jim Highsmith
Marketing (MM)
Lead Generation (22)73
Lead Follow Up (8)
Advertisement Placement (9)
Call Center Service (28)0
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June 2004
August 2004
Sept 2004
October 2004
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The New Predictable Both/And not Either/Or Releasable product (Value, quality, constraints) Cadence & capacity (not detailed task/schedule)
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Evolutionary ActionPlan-Do vs. Fast cycles Envision-Evolve 50% Rule Evolutionary Action Learn from Failures Decision Making2010 Jim Highsmith
Balance Front-End & Iterative
Managing Change Knowledge Sharing
Short Cycles30
Agile 101
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Adult AgilityRider of paradox
Learn the law very well, so you will know how to disobey it properly. Dalai Lama
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Agile LeadershipContinuous Process Improvements Make Kaizen Mandatory
Speed to Value Culture Emergence: Making Value Real Seeing Reality
Value Measures & Metrics Common Value Currency
The New Management Agile / Lean Vision, Values & Practices What Havent You Noticed Lately? Seeing Reality/Reality Maps/Trees Lean Leadership/ Empowerment
Being ALERTNavigator
Big Visible Walls/ Dashboards / Scorecards / Transparency Making Value Visible Simple & Efficient Frameworks Continuous Learning / Experience Analysis/ Let Learning Lead
Creating an Agile Strategy & Structure Waste Management Agile Communication & Collaboration Deepening Engagement Root Cause Analysis/ Strategic Systems Thinking Capture the Intangible Retrospectives & Reflection
Agile Leadership
Growing Agile Teams Enemies/Anti-bodies
Being AGILE
Courageous Conversations
Embracing & Creating Change
Being ALIGNEDBuilding Effective Networks/Partnerships
Emergence & Sustainability Innovation Management
Creating a Culture Of Value
Mental Models/ Presensing
Dilemma Management Dealing with Paradoxes
Team Rewards/ Agile Performance Management
Rethinking the Future Deepening Trust Coaching Circles
Quality / Stop the LineChange Leadership
From Pat Reed2010 Jim Highsmith
High Performance Questions33
The World is a Complex Place
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Adult Agility
Continuous Delivery
Agility
Continuous Deployment Continuous Integration Continuous Development
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Agile 101
Strategic Impact
Balance Front-end & Iterative
Plan-Do vs Fast cycles Envision-Evolve 50% Rule Evolutionary Action Managing Change Knowledge Sharing Short cycles
Learn from failures Decision Making2010 Jim Highsmith
Your Organization
Doing Agile35
Do Agile
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Leading Traits
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Execution Levers
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Provide Focus & ClarityClarity not CertaintySelf-organizing Delegation Team Management Empowerment Autonomy
Decision Framing
Leadership Panarchy
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Uncertainty & Ambiguity of Choices
Balancing on the edge of chaos, between order and chaos determines success.2010 Jim Highsmith
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Why are Focus & Clarity Hard?
"The Satir Change Model" by Steven M. Smith, published in Amplifying Your Effectiveness: Collected Essays, p. 96, Gerald M. Weinberg, James Bach, and Naomi Karten, eds. 2000 by Gerald M. Weinberg. All rights reserved.2010 Jim Highsmith
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Anticipate the FutureStructure Time
Transitions
Cost of Change (CoC)
Actual CoC
Product Release
Technical Debt Optimal CoC
1 2 3 4 5 6 7 8 Years
2010 Jim Highsmith
Technical Debt
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How Buildings Learn (Stewart Brand)Increasing Rate of Change
stuff Space Plan Services SKIN STRUCTURE
SITE
Building Layers
application logic Stored Procedures Languages, Tools DBMS Application Server Service-oriented Architecture
Software Architecture Layers2010 Jim Highsmith
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Increasing Rate of Change
Architects of Time
Time pacing is one of the least understood facets of strategy in unpredictable industries.2010 Jim Highsmith
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Transition & Migration
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Be Architects of Structure, Time, Transitionapplication logic Stored Procedures Languages, Tools DBMS Application Server Service-oriented Architecture Increasing Rate of Change
Software Architecture Layers
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Create Agile Design Guidelines2010 Jim Highsmith
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Different Designs
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Pro
c du
t
Capa bilities
mT ype
St ru ct
Sys te
ur e
Pr
c oje
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Sys tem
Frameworkne po om C
Sc
ala ble
nfig ura
f Co S el
ble
nt a
nits dU i ne
Pr Des in ig ci n pl es
Rec o
2010 Jim Highsmith
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RESPONSIVE SYSTEMS
Re u s alf O Se an rg
ble
An organization or systems structure that enables change is based on reusable elements that are reconfigurable in a scalable framework. (Rick Dove, Response Ability)50
iza n tio
Response-able Systems PrinciplesElastic capacity Self contained units
Facilitated reuse
Self-organization2010 Jim Highsmith
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The President of the InternetRules The Network effect Power of Chaos Values are the organization
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Applying Guidelines to Adaptive ArchitecturesSource Systems Integration Presentation Analysis
Legacy Mainframe
ODSCRM/ERP
Central Warehous eETL
Visualization Reports
ETL
Flat Files
EII Data Marts Metadata ManagementData Mining
Scorecards & Dashboards
External Data
Classic Business Intelligence ArchitectureSlides on BI courtesy of Ken Collier2010 Jim Highsmith
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Notifications
Critical Events
Mashups
Exception Based Real Time
Todays Business Leaders Need More2010 Jim Highsmith
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And They Need it Now2010 Jim Highsmith
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Adaptive Architectures2010 Jim Highsmith
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Create a Value Imagineering Culture
Value Dials Agile Value Curve Value Points Reducing Marginal Functionality Value/Cost Ratio
Delivering Continuous Value Optimal Cost of Change/Reducing Technical Debt Minimal Releasable Product
Value and Priority are Different
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Mixed Messages
Conform to Plan
Be Flexible
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The Agile Triangle
Value (Releasable Product)
Quality (Reliable, Adaptable Product)
Constraints (cost, schedule, scope)
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Value Creating OpportunitiesIncrease: Productivity, Throughput, Flow, Highest Value Work, Profit, Growth, Share, Retention, Loyalty, Satisfaction, ROI, Efficiency, Cash Flow, Quality, Future Value, Visibility
Decrease: Marginal Value Work, Cost, Time/Effort, Risk, Complaints, Turnover, Conflict, Waste (excess WIP/inventory, waiting, rework, defects, technical debt, defects)
Improve: Engagement, Morale, Processes, Services, Collaboration, Information Flow, Quality, Loyalty, Talent (Skills), Image, Reputation, Value
Source: Pat Reed2010 Jim Highsmith
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Value EngineeringWe need to understand both Value and Cost at the Capability/Feature level to make informed Valued Engineering Decisions during project execution.Value Portfolio Financial Business Case (NPV/IRR) Cost Portfolio T-Shirt SizingInception - Revised Cost Estimate
Project
Same as above Iterative Development - Monthly ForecastTop Down Decision Making Sweet Spot Allocation of Value Where we want to start/continue to make better informed
Value Engineering Decisions
Feature
ROI = Value/CostMoSCoW or other prioritization method
Bottoms Up Calculation of Cost
Story
Story Points (3,5,8)
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Source: Pat Reed
Capability
Traditional Value CurveValue Cost Ratio Curve (Traditional)120 Vaule Captured vs Cost Expended 100 90 80 70 60 50 40 30 20 0 1 10 5 2 20 5 3 5 4 5 5 10 6 15 20 40 25 60 50 80 Value % Cost % 100
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8
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Developme nt Phases
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Agile Value CurveStrategiesValue Cost Ratio Curve (Agile)120 Vaule Captured vs Cost Expended 100 80 60 40 30 20 0 1 10 5 2 20 15 85 75 55 40 60 50 90 70 100
Most valuable first Evolve featuresValue % Cost % 98 90
95 80
Determine right cut-off
3
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Iteration
Where is the right cut-off point?2010 Jim Highsmith
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Be a Leader, Be Different
Different Link
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Becoming an Agile LeaderLead Develop an agile business/delivery strategy Be agile (values & traits) Ride paradox Practice evolutionary action
Champion focus & clarity Manage Levers Do less Demand quality Inspire Speed-to-value
Create a Value Imagineering Culture (Agile Triangle)
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Becoming an Agile LeaderFacilitate Collaborative, self-organizing teams Agile performance measures Agile design guidelines Agile transformation Architecture of structure, time, and transition Agile governance system Agile portfolio/program management system
Agile proficiency evaluation framework Proactive and reactive organizational adaptation processes Technical debt prevention and reduction strategy
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Becoming an Agile LeaderConstrain Balance the Agile Triangle Develop boundary constraints for agile practices
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What Leaders Really Do
They dont make plans; they dont solve problems; they dont even organize people. What leaders really do is prepare organizations for change and help them cope as they struggle through it. John P. Kotter
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Its kind of fun to do the impossible2010 Jim Highsmith
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