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Can AGILE Enable a Full Scope Transformation Approach And www.pwc.ch Can AGILE enable a full scope transformation approach and realise expected benefits more successfully? Transformation Assurance 1 Need for speed in benefits delivery to remain in pole position 4 2 Agile delivery – the pervasive solution for maximising project 5 benefits? 3 Scaling agile in order to comprehensively realize 6 organizational benefits 4 Embedding agile in a full scope transformation approach 8 5 When to act – common risk areas and early warning 9 indicators 6 Our point of view 11 7 Contacts 12 2 Scaled agile transformations Nowadays everyone is talking very, others have been seriously a combination of all these factors about agile and its great potential struggling to quickly deliver the was the problem? for quickly delivering value to expected benefits – or to deliver In this article we will give an organisations and customers. anything at all. Why is this so? answer to 1) why agile projects, Anyone following this discussion Have these organisations suffered and especially large-scale agile might get the impression that a lack of agile education and programmes, often struggle, agile is a silver bullet. experience or made inappropriate and 2) how the challenges and use of agile methods and tools; risks of agile delivery can be Although some organisations did they encounter resistance overcome to ensure smooth and have demonstrated success in to cultural change, or was there continuous product delivery and agile project or programme deli- just a lack of discipline? Maybe realise the expected benefits. Scaled agile transformations 3 1 Need for speed in benefits delivery to remain in pole position Figure 1: Agile Methodologies Used Increasing market demands are Source: VersionOne: 10th Annual State of Agile Report transforming the way organisations respond to customers’ needs. To address the drivers, which are mainly centred 1% SAtern 1% on speed of delivery and business value 1% Feature-Driven Development (FDD) <1% Agile Unified Process (AgileUP) created, organisations are adopting agile 1% Agile Modeling 2% I Don’t Know practices at a rapid pace. According to 2% Lean Development th 3% Other VersionOne’s 10 Annual State of Agile 3% Itrerative Development Report, Scrum (58%) and Scrum/XP hybrid (10%) are the most commonly 5% used agile methodologies. The remaining Kanban 32% of respondents practise either one or 7% a combination of more than a dozen other Scrumban 58% Scrum agile methodologies, adapted from the 8% market or iteratively self-developed. Custom Hybrid (multiple methodologies) 10% Scrum/xp Hybrid This recent ambition brings new risks maximise the benefits promised from as organisations, people and processes them, advanced project or programme evolve to learn and adapt to the new way management practices and governance of working. Hence, for transformation need to be put in place. projects and programmes to deliver and 4 Scaled agile transformations 2 Agile delivery – the pervasive solution for maximising project benefits? In addition to rapid realisation of business There is no doubt that, when properly The advantages of agile delivery value and benefits to customers and end implemented and managed with the right practices, especially in the IT and users, such studies commonly highlight controls and governance protocols, agile software development sector, have the following agile related advantages: can be successful in quickly delivering been proven, and many organisations functionality and maximising benefits. have even adopted agile as their default • Greater control over time and budget, However, to implement an agile project project delivery method. There are also with the focus on prioritising and an organisation has to adapt and realign studies, such as those published by The refining scope in a more flexible way, culturally to satisfy stakeholders that Standish Group1 and Ambysoft2, which and thus delivering on time high-quality solutions are being delivered argue that agile projects are more and that business risk is being effectively successful than traditional ones. • Engaging business stakeholders mitigated. throughout the delivery life cycle (not just at the beginning) In addition, agile delivery typically affects businesses differently depending on their • Cross-functional and self-organising size and how they integrate the agile teams facilitate better utilisation of component into business operations and resources established project delivery methodology. Even though agile projects are commonly • Incrementally designing solutions with reported to be more successful than customers creates relationships and traditional projects, the fact that agile opportunities to build trust has been used typically in small or mid-sized IT project environments has a • More transparency with respect to considerable effect on project complexity, project progress, obstacles, risks, issues and consequently the chances of success. and dependencies 1 The Standish Group, CHAOS Report 2015 2 Ambysoft, IT Project Success Rates Survey 2013 Scaled agile transformations 5 3 Scaling agile to comprehensively realise organisational benefits Although many private businesses SAFe represents a framework of Agile was originally developed and public organisations are trying integrated patterns based on lean for software development to maximise the full potential of agile and agile principles with the aim of projects in which the customer’s within small and mid-sized IT projects, synchronising the delivery of multiple end needs could not be fully few of them manage to successfully scale autonomous but aligned agile teams agile practices to large transformation within larger organisations. On an defined at the beginning. These programmes and finally to enterprise overarching level, EPICs4 representing projects usually affected only level. enterprise portfolios (that allow one or two functions, e.g. client calculation of ROI and are usually facing management or sales. However, Indeed, managing and coordinating development initiatives on the customer project work, and ultimately the fast side or internally) have to be planned. if you want to gain significant delivery of high quality products, benefits from adopting agile in becomes much more complex in a The primary delivery instrument bringing your business transformation programme environment comprising a together developed artefacts of individual combination of several projects that may teams is called Agile Release Train. projects and programmes, you overlap and be built by teams of teams Within an Agile Release Train release need to be able to scale your (or teams of teams of teams). To address cycle, regular programme increments agile delivery to enterprise level this challenge, scaling frameworks such (completed product artefacts) are used and adopt it in strategic business as SAFe (Scaled Agile Framework, the to ensure that the intended business most dominant approach), LeSS (Large objectives are met. initiatives. Scale Scrum) and DaD (Disciplined Agile Delivery) have evolved in the market3. Figure 2: SAFe – Scaled Agile Framework Source: Authors’ illustration derived from SAFe Portfoio Strategic Themes and irection ayer Vaue Stream uti-roduct uti-roduct oadmap ayer Roadmap rogram rogram or eease rogram or T) ayer Train Agie Team ayer Feature Team Feature Team Feature Team Feature Team Feature Team 3 We consider SAFe, LeSS and DaD to be the most commonly used scaling frameworks based on our market experience. However, there are a number of other scaling methods and approaches available. 4 SAFe defines EPICs as significant initiatives that help guide value streams toward the larger aim of the portfolio. They are investment intensive and far ranging in impact. EPICs require a formulation and analysis of cost, impact, and opportunity in a lightweight business case, as well as financial approval before implementation. 6 Scaled agile transformations LeSS scales up Scrum activities on planning, coordinated Scrum events, the basis of the team-of-teams concept and a managed organisational agile which addresses practices, such transformation. as Scrum of Scrums5, agile release Figure 3: LeSS – Large Scale Scrum Source: Authors’ illustration derived from LeSS Portfoio ayer Vaue Stream ayer roduct Bacog roduct Bacog rogram ayer ead O ead O Agie Team ayer Feature Team Feature Team Feature Team Feature Team Feature Team DaD represents a process decision learning as well as solution and risk-value framework that adopts and tailors agile focused delivery of IT and software strategies and principles from existing artefacts within an organisation. methods, with the focus on people and Figure 4: SAFe – DaD – Disciplined Agile Delivery Source: Authors’ illustration derived from DaD Portfoio ayer Organisation roduct and ortfoio anagement based on eve Organisation goas iscipined Coordinated Coordinated Technica eOps Reease Reease perts Speciaists 5 Scrum of Scrums enables collaboration between IT eiery multiple Scrum teams. Each team identifies one team ayer member to attend the Scrum of Scrums meeting to Feature Team and Feature Team and Feature Team and Technica coordinate work with other Scrum teams. Architecture Owner Architecture Owner Architecture Owner perts Scaled agile transformations 7 4 Embedding agile in a full scope transformation approach Typically, such transformation You need to be clear about the benefits Large strategic programmes that programmes have been run in a and the drawbacks of agile (compared to transform the whole business, or at traditional waterfall-oriented
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