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Alternatives to scaling your agile process: 
valuing outcomes over output 
Edwin Dando 
Assurity 
Your pic
Alternatives to scaling your agile process: valuing outcomes over output
There is a management revolution underway 
“Tomorrow’s business imperatives 
lie outside the performance 
envelope of today’s bureaucracy-infused 
management practices… 
Equipping organizations to tackle 
the future would require a 
management revolution no less 
momentous than the one that 
spawned modern industry.” 
Gary Hamel - the landmark HBR 
article Moon Shots For Management,
What is changing? 
To focusing on customer value 
To exploiting variability for competitive advantage 
To providing a vision to a self-organised, cross-functional 
team and getting out of the way. 
To measuring results on outcomes 
To regular delivery of customer value via 
economies of flow 
To focus on building wonderful workplaces 
and strong employee engagement 
To a strategy that is about deep customer 
engagement, rapid manoeuvrability, fast 
feedback and regular pivots 
From focusing on maximizing shareholder $ 
From avoiding variability 
From telling employees what to do 
From controlling performance through rules, 
roles, plans and reports 
From efficiency through economies of scale 
From focus on lowering costs through offshoring 
From a “coping with competition” strategy 
through regulation and monopoly behaviour
Agile has made a major contribution to this
Large scale and agile – a clash of cultures? 
• Agile is a mind-set and set of values, not a process 
• Agility is earned, not installed 
• For a long time many people have worked hard to help shift 
thinking, adopt new values and change… 
Yet… 
• Agile is now mainstream 
• Markets forcing businesses to become more responsive 
• Insatiable demand to “be agile” – especially from large 
companies, often who have come to the game late 
And so, 
• Market responded with “buy and install” agile @ scale 
• Approach viewed as disrespectful to core values
The scaling dilemma 
• The desire ‘to scale’ is a reflection of the demand to develop more 
software, faster (rather than better outcomes with same/less effort). 
• Existing internal structures make it difficult to increase capacity 
• So we add new structures to manage this and increase our efforts. 
• But investment to achieve more goes mostly to the additional 
structures, and is often much higher than the gains expected. 
• We enter a vicious cycle. 
Gunther Verheyen - Maximizing Scrum, http://blog.scrum.org/maximizing-scrum/
In an organisation near you… 
• An organization starts adopting Scrum 
• Soon they ask ‘how do we scale?’ 
• Very few stop and investigate this desire 
prior to exploring scaling. 
• What do we hope to obtain from scaling? 
• How does this fit with our strategy? 
• What are the risks? 
• How will we know scaling is helping us? 
• How will we measure this?
Humans love simple assumptions 
The logic of induction teaches us that 
• If n is true (it works for one) 
• and n+1 is true (it works for the next) 
• then n must always be true….. Right? 
So lets test this hypothesis: 1 + 2 + 3 + … + n = ½n(n+1) 
1 + 2 + 3 = ½ x 3 x 4 = 6 
1 + 2 + 3 + 4 = ½ x 4 x 5 = 10 
1 + 2 + 3 + 4 + 5 + 6 + …. + 7823 
= ½ x 7823 x 7824 
= 30603576
And we carry that logic into business contexts 
• Agile works for one team and gives us 
great benefits 
• and it works for two teams and gives 
us more great benefits 
• Therefore it must work for many 
teams and make us world beaters, 
right?
Add to this the fact that knowledge work is highly creative 
• Good Agile managers create environments where 
people can flourish and grow. 
• Much like the role of the gardener… 
Get your hands dirty and 
create an environment where 
people can flourish. 
FHeeelpd And our raenmd garden owvaet ethr itnhgesm grows th raetg and 
sutloaprl y 
rewards them succeeding 
us
But does the same thinking apply on a large scale? 
Value is very, very different from volume 
Outcomes are very different to output
Shoe-horning agile 
• Over time, many organizations have grown very 
complicated with interdependent internal structures. 
• The implementation of Scrum is expected to fit into 
these existing structures. 
• Within these structures, ‘scaling’ is synonymous to 
increasing volume and quantity, to larger numbers. 
• The expectation is that Scrum must be expanded with 
additional processes, roles, phases, etc. 
• At which point we have missed the point 
• The entire point of Scrum is to highlight your 
weaknesses – so you can fix them 
Gunther Verheyen - Maximizing Scrum, http://blog.scrum.org/maximizing-scrum/
What sort of weaknesses? 
On the whole, [our survey results are] not exactly a 
reassuring picture for those who depend on the software they build. 
Develop Landscape - Forrester Research 2013
Some clear areas for attention 
• Basics of Agile – we’ve only adopted the basics 
“Organizations claim that they’ve ‘gone Agile,’ but when one probes on specific Agile practices, 
the reality is that they’ve only adopted a few basic ones and stalled out in the scaling process.“ 
• Quality software development 
“Only 12% of the developers we surveyed spend more than an hour a day writing test cases. 
Developers spend more time on email than writing tests” 
Develop Landscape - Forrester Research 2013
Why would you want 
to scale this? Fix 
these first
Some clear areas for attention 
• Small Teams 
“Developers who work in small, collocated teams understand the applications they build fare 
better. Most development teams are not collocated. Our takeaway: Organizations are trading 
understanding and efficiency for an efficient cost structure”. 
“We see the inverse relationship between development team size and the level of project 
understanding/transparency. Our recommendation? Lose the industrial metaphor forever and 
think more along the lines of a talent management from or a Broadway production.”
Focus on getting more out of what you already have 
Why would you want to 
scale this? 
Fix these first.
Why would you want to scale this? 
Used with permission – Scrum.org
No evidence 
“What is the business impact of agile? 
The reality is, we have no idea. We have no real evidence. 
If we start measuring by evidentiary outcomes, then we will have firm grounding when we assess its 
value to the organization, and the value of our investments and initiatives.” 
Ken Schwaber, Scrum co-creator 
Maybe we would want to fix 
this before we scale?
Scaling, finally 
So, lets assume we get good at developing software and get to the 
point of “scaling up”, how do we scale? 
1. Start with reality – there is no recipe, only patterns 
2. Start small and iterate. 
a) Try some of the known scaling patterns 
b) Inspect how it has worked in your context. Hint – you 
should find a way to measure the business impact. 
c) Adapt as required. 
d) Repeat
Incremental scaling 
with evidence 
Single team starts doing Scrum 
They identify things that need improvement 
and capture these in an organisational 
improvement backlog 
Review 
Retrospective 
OAG makes next round of 
decisions on evidence: 
Are customers happier? Is quality improving? 
Are we innovating faster? 
Is staff morale better? 
Are we more agile? 
Organisational 
Agility Group 
selects items and 
implements 
transparently 
Evidence 
based 
planning 
Measure 
business 
impact 
Organisational learning 
Organisational 
Improvement 
backlog 
How can we improve quality? 
Should we start another team? Are we working 
well together? 
Do we have interdependency problems? 
What does the evidence tell us? 
How’s our culture? 
Teams inspect and adapt collectively, 
using evidence 
Change 
Increment 
Is revenue improving? 
May decide to add 
another team… 
Change 
Owner 
What is true for us? 
Meets regularly 
to track progress 
and re-plan 
Are we getting to done every iteration?
Evidence 
• Over 85% of senior international executives* say organisational agility is critical to success. 
• Yet few can demonstrate tangible business benefits to their boards 
• This is a tragedy, given the investment involved in agile. 
Even more important, how do we 
• know the risk and disruption involved in this agile transformation is working? 
• continually tweak the approach to our organisation’s unique needs? 
Unfortunately, most organisations don't. They measure output, not outcomes. 
And then they want to scale... 
*Organisational agility: How business can survive and thrive 
in turbulent times 
The Economist Intelligence Unit
Evidence of business outcomes (not agile outputs)
Focus on evidence based business decision making 
• How has the ability to release fortnightly helped? 
• Are our staff happier doing agile? 
• Are we seeing value from our technical debt repayment? 
• Has our investment in test automation improved quality and 
customer satisfaction? 
• Maybe, if we are getting these right, then we should consider 
scaling
There are many ways to “scale” before you “scale Scrum” 
• Quality software development 
– a good developer can be 20 times more productive than an average one. Grow them. 
– pair programming - instant feedback loops, higher quality. 
– continuous delivery – regular delivery of value and regular product learning cycles 
• Technical debt 
– prevents agility and is extremely expensive. Slow down, write good code, write less code - only on 
features customers value. 
– only 29% developers time spent working on value. 53% spent on complexity/technical debt*. Your 
teams want to fix this. Given them the opportunity and double/triple productivity. 
*Source: Forrester, October 2010 “2011 IT 
Budget Planning Guide For CIOs”)
There are many ways to “scale” before you “scale Scrum” 
• Value 
– ~ 65% of features aren’t valued by customers. Use validated learning to find out what they don’t 
value and stop delivering it. 
– Deliver products that make a market impact, not just ship more features… Impact Mapping 
• Team 
– Developers are intrinsically motivated & creative*. Create environments in which they can flourish. 
– #1 reason for software project failure is a lack of shared understanding. Specification by Example 
helps resolve this. 
– Agile isn’t just about Scrum Masters and Product Owners. Testers, developers and analysts need 
training too. 
*Source: Forrester, October 2010 “2011 IT 
Budget Planning Guide For CIOs”)
There are many ways to “scale” before you “scale Scrum” 
*Source: Forrester, October 2010 “2011 IT 
Budget Planning Guide For CIOs”) 
• Evidence 
– Measure and track the business impact of agile. 
– Make evidence based decisions. 
– If the evidence shows something isn't working, change it. 
• Test automation 
• Product Ownership 
• Team behaviours & collaboration 
• … 
In other words, walk before you run
Scaling is a people problem, not a process problem 
.
Thinking about the people – networks versus hierarchies 
• Hierarchies can be an effective way to 
organise, but they don’t tend to be an 
effective way to communicate 
• Typically, coordination responsibility likes 
with individuals 
• But when people are busy, they pass their 
problems to the coordinator to pass to 
someone who can fix it. 
• Why? Because people are busy getting their 
features to done. It’s human nature. We 
push problems up a hierarchy for someone 
else to remove if that’s how it’s supposed to 
be. 
Joanna Rothman, Organizing an Agile Program: Networks for Managing Agile Programs 
http://bit.ly/1l7EcjZ
Networks 
• Don’t have to have everyone interconnected 
with everyone else – just some connected 
individuals. 
• Don’t need the Scrum Masters to do it. 
• E.g. Bob and Alice have a question, they ask 
each other. If that doesn’t resolve it they ask 
someone else who might know (not 
necessarily a manager). 
• The question doesn’t go up the hierarchy. 
It goes across the network. 
Joanna Rothman, Organizing an Agile Program: Networks for Managing Agile Programs 
http://bit.ly/1l7EcjZ
Communities of Practice help build networks and coordinate work 
• Testers talking to other testers 
• Developers talking to other developers 
• Ability to solve common problems and 
coordinate common activities 
• Ability to inspect and adapt our common 
work and approach 
Joanna Rothman, Organizing an Agile Program: Networks for Managing Agile Programs 
http://bit.ly/1l7EcjZ
Benefits of a network model 
• Communication flows quickly through networks. 
Puts the inherent rumour mill to work for you. 
• Networks are connected by humans who are 
more prone to connecting/communicating 
• A network engages people in a way that 
hierarchy does not 
• A network decreases the transaction cost of just 
about everything. 
• No waiting on meetings to address problems, 
issues, or risks. People on teams solve problems 
when they have the problem. 
• No need for a “master” or a “chief” to 
intervene. 
Joanna Rothman, Organizing an Agile Program: Networks for Managing Agile Programs 
http://bit.ly/1l7EcjZ
In summary 
• Use Scrum to highlight your weaknesses 
• Systematically fix them 
• Then consider scaling, if it makes sense 
• If so, start small and iterate 
• Measure the business impact of each change
If the definition of insanity is 
“doing the same thing and expecting different results”, 
then what is the definition of insanity at scale?
Thanks for listening… 
Edwin Dando 
Assurity 
@edwindando 
agileforeveryone.com 
edwin.dando@assurity.co.nz 
linkedin.com/in/edwindando/

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Alternatives to scaling your agile process: valuing outcomes over output

  • 1. Alternatives to scaling your agile process: valuing outcomes over output Edwin Dando Assurity Your pic
  • 3. There is a management revolution underway “Tomorrow’s business imperatives lie outside the performance envelope of today’s bureaucracy-infused management practices… Equipping organizations to tackle the future would require a management revolution no less momentous than the one that spawned modern industry.” Gary Hamel - the landmark HBR article Moon Shots For Management,
  • 4. What is changing? To focusing on customer value To exploiting variability for competitive advantage To providing a vision to a self-organised, cross-functional team and getting out of the way. To measuring results on outcomes To regular delivery of customer value via economies of flow To focus on building wonderful workplaces and strong employee engagement To a strategy that is about deep customer engagement, rapid manoeuvrability, fast feedback and regular pivots From focusing on maximizing shareholder $ From avoiding variability From telling employees what to do From controlling performance through rules, roles, plans and reports From efficiency through economies of scale From focus on lowering costs through offshoring From a “coping with competition” strategy through regulation and monopoly behaviour
  • 5. Agile has made a major contribution to this
  • 6. Large scale and agile – a clash of cultures? • Agile is a mind-set and set of values, not a process • Agility is earned, not installed • For a long time many people have worked hard to help shift thinking, adopt new values and change… Yet… • Agile is now mainstream • Markets forcing businesses to become more responsive • Insatiable demand to “be agile” – especially from large companies, often who have come to the game late And so, • Market responded with “buy and install” agile @ scale • Approach viewed as disrespectful to core values
  • 7. The scaling dilemma • The desire ‘to scale’ is a reflection of the demand to develop more software, faster (rather than better outcomes with same/less effort). • Existing internal structures make it difficult to increase capacity • So we add new structures to manage this and increase our efforts. • But investment to achieve more goes mostly to the additional structures, and is often much higher than the gains expected. • We enter a vicious cycle. Gunther Verheyen - Maximizing Scrum, http://blog.scrum.org/maximizing-scrum/
  • 8. In an organisation near you… • An organization starts adopting Scrum • Soon they ask ‘how do we scale?’ • Very few stop and investigate this desire prior to exploring scaling. • What do we hope to obtain from scaling? • How does this fit with our strategy? • What are the risks? • How will we know scaling is helping us? • How will we measure this?
  • 9. Humans love simple assumptions The logic of induction teaches us that • If n is true (it works for one) • and n+1 is true (it works for the next) • then n must always be true….. Right? So lets test this hypothesis: 1 + 2 + 3 + … + n = ½n(n+1) 1 + 2 + 3 = ½ x 3 x 4 = 6 1 + 2 + 3 + 4 = ½ x 4 x 5 = 10 1 + 2 + 3 + 4 + 5 + 6 + …. + 7823 = ½ x 7823 x 7824 = 30603576
  • 10. And we carry that logic into business contexts • Agile works for one team and gives us great benefits • and it works for two teams and gives us more great benefits • Therefore it must work for many teams and make us world beaters, right?
  • 11. Add to this the fact that knowledge work is highly creative • Good Agile managers create environments where people can flourish and grow. • Much like the role of the gardener… Get your hands dirty and create an environment where people can flourish. FHeeelpd And our raenmd garden owvaet ethr itnhgesm grows th raetg and sutloaprl y rewards them succeeding us
  • 12. But does the same thinking apply on a large scale? Value is very, very different from volume Outcomes are very different to output
  • 13. Shoe-horning agile • Over time, many organizations have grown very complicated with interdependent internal structures. • The implementation of Scrum is expected to fit into these existing structures. • Within these structures, ‘scaling’ is synonymous to increasing volume and quantity, to larger numbers. • The expectation is that Scrum must be expanded with additional processes, roles, phases, etc. • At which point we have missed the point • The entire point of Scrum is to highlight your weaknesses – so you can fix them Gunther Verheyen - Maximizing Scrum, http://blog.scrum.org/maximizing-scrum/
  • 14. What sort of weaknesses? On the whole, [our survey results are] not exactly a reassuring picture for those who depend on the software they build. Develop Landscape - Forrester Research 2013
  • 15. Some clear areas for attention • Basics of Agile – we’ve only adopted the basics “Organizations claim that they’ve ‘gone Agile,’ but when one probes on specific Agile practices, the reality is that they’ve only adopted a few basic ones and stalled out in the scaling process.“ • Quality software development “Only 12% of the developers we surveyed spend more than an hour a day writing test cases. Developers spend more time on email than writing tests” Develop Landscape - Forrester Research 2013
  • 16. Why would you want to scale this? Fix these first
  • 17. Some clear areas for attention • Small Teams “Developers who work in small, collocated teams understand the applications they build fare better. Most development teams are not collocated. Our takeaway: Organizations are trading understanding and efficiency for an efficient cost structure”. “We see the inverse relationship between development team size and the level of project understanding/transparency. Our recommendation? Lose the industrial metaphor forever and think more along the lines of a talent management from or a Broadway production.”
  • 18. Focus on getting more out of what you already have Why would you want to scale this? Fix these first.
  • 19. Why would you want to scale this? Used with permission – Scrum.org
  • 20. No evidence “What is the business impact of agile? The reality is, we have no idea. We have no real evidence. If we start measuring by evidentiary outcomes, then we will have firm grounding when we assess its value to the organization, and the value of our investments and initiatives.” Ken Schwaber, Scrum co-creator Maybe we would want to fix this before we scale?
  • 21. Scaling, finally So, lets assume we get good at developing software and get to the point of “scaling up”, how do we scale? 1. Start with reality – there is no recipe, only patterns 2. Start small and iterate. a) Try some of the known scaling patterns b) Inspect how it has worked in your context. Hint – you should find a way to measure the business impact. c) Adapt as required. d) Repeat
  • 22. Incremental scaling with evidence Single team starts doing Scrum They identify things that need improvement and capture these in an organisational improvement backlog Review Retrospective OAG makes next round of decisions on evidence: Are customers happier? Is quality improving? Are we innovating faster? Is staff morale better? Are we more agile? Organisational Agility Group selects items and implements transparently Evidence based planning Measure business impact Organisational learning Organisational Improvement backlog How can we improve quality? Should we start another team? Are we working well together? Do we have interdependency problems? What does the evidence tell us? How’s our culture? Teams inspect and adapt collectively, using evidence Change Increment Is revenue improving? May decide to add another team… Change Owner What is true for us? Meets regularly to track progress and re-plan Are we getting to done every iteration?
  • 23. Evidence • Over 85% of senior international executives* say organisational agility is critical to success. • Yet few can demonstrate tangible business benefits to their boards • This is a tragedy, given the investment involved in agile. Even more important, how do we • know the risk and disruption involved in this agile transformation is working? • continually tweak the approach to our organisation’s unique needs? Unfortunately, most organisations don't. They measure output, not outcomes. And then they want to scale... *Organisational agility: How business can survive and thrive in turbulent times The Economist Intelligence Unit
  • 24. Evidence of business outcomes (not agile outputs)
  • 25. Focus on evidence based business decision making • How has the ability to release fortnightly helped? • Are our staff happier doing agile? • Are we seeing value from our technical debt repayment? • Has our investment in test automation improved quality and customer satisfaction? • Maybe, if we are getting these right, then we should consider scaling
  • 26. There are many ways to “scale” before you “scale Scrum” • Quality software development – a good developer can be 20 times more productive than an average one. Grow them. – pair programming - instant feedback loops, higher quality. – continuous delivery – regular delivery of value and regular product learning cycles • Technical debt – prevents agility and is extremely expensive. Slow down, write good code, write less code - only on features customers value. – only 29% developers time spent working on value. 53% spent on complexity/technical debt*. Your teams want to fix this. Given them the opportunity and double/triple productivity. *Source: Forrester, October 2010 “2011 IT Budget Planning Guide For CIOs”)
  • 27. There are many ways to “scale” before you “scale Scrum” • Value – ~ 65% of features aren’t valued by customers. Use validated learning to find out what they don’t value and stop delivering it. – Deliver products that make a market impact, not just ship more features… Impact Mapping • Team – Developers are intrinsically motivated & creative*. Create environments in which they can flourish. – #1 reason for software project failure is a lack of shared understanding. Specification by Example helps resolve this. – Agile isn’t just about Scrum Masters and Product Owners. Testers, developers and analysts need training too. *Source: Forrester, October 2010 “2011 IT Budget Planning Guide For CIOs”)
  • 28. There are many ways to “scale” before you “scale Scrum” *Source: Forrester, October 2010 “2011 IT Budget Planning Guide For CIOs”) • Evidence – Measure and track the business impact of agile. – Make evidence based decisions. – If the evidence shows something isn't working, change it. • Test automation • Product Ownership • Team behaviours & collaboration • … In other words, walk before you run
  • 29. Scaling is a people problem, not a process problem .
  • 30. Thinking about the people – networks versus hierarchies • Hierarchies can be an effective way to organise, but they don’t tend to be an effective way to communicate • Typically, coordination responsibility likes with individuals • But when people are busy, they pass their problems to the coordinator to pass to someone who can fix it. • Why? Because people are busy getting their features to done. It’s human nature. We push problems up a hierarchy for someone else to remove if that’s how it’s supposed to be. Joanna Rothman, Organizing an Agile Program: Networks for Managing Agile Programs http://bit.ly/1l7EcjZ
  • 31. Networks • Don’t have to have everyone interconnected with everyone else – just some connected individuals. • Don’t need the Scrum Masters to do it. • E.g. Bob and Alice have a question, they ask each other. If that doesn’t resolve it they ask someone else who might know (not necessarily a manager). • The question doesn’t go up the hierarchy. It goes across the network. Joanna Rothman, Organizing an Agile Program: Networks for Managing Agile Programs http://bit.ly/1l7EcjZ
  • 32. Communities of Practice help build networks and coordinate work • Testers talking to other testers • Developers talking to other developers • Ability to solve common problems and coordinate common activities • Ability to inspect and adapt our common work and approach Joanna Rothman, Organizing an Agile Program: Networks for Managing Agile Programs http://bit.ly/1l7EcjZ
  • 33. Benefits of a network model • Communication flows quickly through networks. Puts the inherent rumour mill to work for you. • Networks are connected by humans who are more prone to connecting/communicating • A network engages people in a way that hierarchy does not • A network decreases the transaction cost of just about everything. • No waiting on meetings to address problems, issues, or risks. People on teams solve problems when they have the problem. • No need for a “master” or a “chief” to intervene. Joanna Rothman, Organizing an Agile Program: Networks for Managing Agile Programs http://bit.ly/1l7EcjZ
  • 34. In summary • Use Scrum to highlight your weaknesses • Systematically fix them • Then consider scaling, if it makes sense • If so, start small and iterate • Measure the business impact of each change
  • 35. If the definition of insanity is “doing the same thing and expecting different results”, then what is the definition of insanity at scale?
  • 36. Thanks for listening… Edwin Dando Assurity @edwindando agileforeveryone.com [email protected] linkedin.com/in/edwindando/

Editor's Notes

  • #3: There is a change in management underway
  • #9: Can anyone here hand on heart say they have done this before considering scaling?
  • #36: The Crying Angel – what is happening to the agile industry