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Disruptive Methods for Applying Agile to Product Development
Agile: Not Just for Software
February 2017 2Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 2
Agenda
1. Agile Defined
2. Why have tangible products been slow to adopt Agile?
3. Modifying Agile: Areas of biggest gains for tangible products
4. How to Implement: Nesting Agile within Waterfall
5. Management: The biggest impediments to success
6. Case Studies
Agile: The Most Disruptive Process Currently Impacting
Product Development!
February 2017 3Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 3
TCGen: Approach & Background
John Carter
• Cirrus Logic (CRUS); Board of Directors
• CTO of Klipsch Group; Raised Private Equity
• Chief Engineer of BOSE; Noise Cancelling Headphones
Jeanne Bradford
• Architected Apple’s product development process (ANPP)
• Led Programs for Apple, Cisco & Texas Instruments
• Builds high performance teams to accelerate delivery
February 2017 4Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 4
Agile Defined
• The Agile development process was defined 16 years ago
to address chronic delivery problems
• The Agile Manifesto* has led to remarkable improvements
• The most common approach is a Scrum approach
* http://agilemanifesto.org/
Roles
Scrum Master
Product Owner
Team
Ceremonies
Planning & Estimation
Daily Standups & Monitoring
Demos & Retrospectives
Foundations
Fixed length Sprints (2W)
Stories & Epics
Managers serve the Team
Customers part of Team
February 2017 5Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 5
Why have tangible products been slow to adopt Agile?
• Myths create major barriers to adoption
– “Applying Agile is all or nothing”
– “You must be able to ship every two weeks”
– “Agile and Waterfall/Milestone are mutually exclusive”
• There is a lack of prescriptive best practices
• Functional managers must simultaneously cede control
• Harder to isolate small teams and pilot
Agile or Waterfall? Do Both!
February 2017 6Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 6
Agile Manifesto – Not Just for Software
1. Business people and developers work together daily
2. Projects require motivated individuals, support & trust
3. Face-to-face conversation is most efficient
4. Agile processes promote sustainable development
5. Continuous attention to technical excellence
6. Simplicity is essential
7. The best designs emerge from self-organizing teams
8. At regular intervals, the team reflects
9. Welcome changing requirements
10. Continuous delivery of valuable software
11. Deliver working software frequently
12. Working software is the measure of progress
75% of the Agile
Manifesto CAN
apply to any type
of development
Software Specific
Universal
http://agilemanifesto.org/
February 2017 7Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 7
Modifying Agile: Areas of Biggest Gains
Benefit
Top Benefits for Agile Implementation outside Software
Speed & Innovation
February 2017 8Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 8
Key Insights: Singular Differences – Tangible Products vs. SW
Development proceeds by designing and prototyping
Development is highly non-linear and chunky
Features appear much later and in large increments
Stories focused on components and interfaces not User Experience
Team members often write more Stories than Product Owner
Development proceeds by accretion and refactoring
February 2017 9Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 9
Why Should We Nest Sprints Within Milestone Frameworks
• Sprints within a Milestone Framework increase speed
– Accelerates decisions because Sprints encapsulate work
– Increases urgency because underperformance is visible
• Milestone reviews provides needed financial controls
• Milestone reviews facilitate qualification & verification
• Milestones and Innovation Sprints can easily co-exist
MILESTONE “N” MILESTONE “N+1”
P R P RP RP RP R
NESTED SPRINTS
February 2017 10Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 10
How to Implement: Three Components Enabled by Teams
Sprint Planning
Executing & Measuring
Reviewing
FOUNDATION: High Performance Teams
Plan Execute/Measure Review
Plan Execute/Measure Review
FRAMEWORK: Sprints for tangible products
Plan Execute/Measure Review
February 2017 11Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 11
Executing/Measuring
• “Daily” Standup Meetings
– Determined by team capability & velocity
– Always BRIEF (LESS THAN 20 MIN)
• Sprints magnify latency issues
– One reason why Agile increases speed – spotlights excuses
• Abandon the habit of serial prototype builds*
Plan Execute/Measure Review
Proto 1
Proto 2
Proto 3
Proto 4
4x cycles of
learning in the
time of 2.5x
* Can double cost, but cut this stage by half!
February 2017 12Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 12
Prototyping & Importance of Customers & Proxies
• The audience for the prototype or demonstration is as important as
the goal itself
• The audience should vary from sprint to sprint
Customers & Proxies Examples
End customers Economic buyer, Users, Influencers
Customer segments Geographic diversity, Usage diversity, Organizational (e.g.
Academic, Government, Commercial)
Intermediate customers Dealers, distributors, representatives, and importers
External customer proxies Reviewers, magazine editors, lost customers, competitive
customers
Internal customer proxies External sales force, internal sales force, field service, customer
service, application engineering, quality
Plan Execute/Measure Review
February 2017 13Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 13
Review and Reflection…and Learning
Action
Plan
Planned vs. Unplanned Events
Plan Execute/Measure Review
February 2017 14Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 14
Management: The Biggest Challenge
• TCGen’s analysis* of Functional Management meddling
– Rooted in Leadership, Culture and Compensation
– Management incented for functional, not team success
– Unintended consequence of functionally organized companies
• Ingrained resistance is very hard to root out
– Domain expertise over collaboration/EQ skills
– Managers may lack trust; Teams may not self-generate
– Lost power, unclear career path, changed performance reviews
*2015 Project History Analysis of Agile Transformations
February 2017 15Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 15
Organizational Remedies For Agile Transformation
• Servant Leadership: the needs of the team before your own
– Change incentives to reward team success
– Middle managers remove roadblocks;
focus on platforms & architecture
– Hire for both domain and collaboration expertise
• Project Teams: product ownership & accountability
– Build trust with leadership through critical thinking & execution
– Prioritize team allegiance through collaboration
– Relentlessly adopt Agile mindset
February 2017 16Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 16
Instructor Biographies
• The Approach
– Planning: focus Sprint Goals, Acceptance Criteria, Metrics
– Demo to management at the end of the Sprints
– Heavy facilitation nearly full time for the first set of Sprints
• The Costs
– Process highlighted lack of Functional Management Support
– Exposed the organization to the need for reskilling team
• The Benefits
– The rapid cadence of Sprints resulted in improved team
collaboration, faster decisions and schedule accountability
Consumer Electronics Case Study: A Step at a Time
February 2017 17Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 17
Instructor Biographies
• The approach
– Focus on “Show & Tell” @ end of Sprints (UX, SW, SI)
– NO burndown charts, NO sprint estimates
– Leave Design Control in place (FDA)
• The Costs
– More prototypes & more effort in stories
• The Benefits
– Breaks the work down into 3 week sprints, forcing decisions and
schedule adherence
– Accuracy of the overall project is much higher and the developers are
much more engaged
Medical Devices Case Study: How They Disrupted Waterfall
February 2017 18Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 18
Preventing Business Loss via Agile Project Leadership
– A tussle in a traditional Functional Organization
– Two weeks to decide a path forward
• Sales of $40M / Year
• Burn rate of $50K / Day!
• 2 weeks spin = $700K LOSS!
Loss of REVENUE1
• Salary of $200K (total costs)
• Burn Rate of $13.5K / Day!
• 2 weeks of spin = $220K EXPENSE!
+
$920K LOSS* (Avoided with Agile)
Increase in COSTS2
1 Example of consumer launch around holidays
2 3 Teams of 9 people each
February 2017 19Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 19
In Summary…
1. AGILE methods CAN ACCELERATE product development
2. The business value of Agile is BIG and is QUANTIFIED by TIME
3. Not WATERFALL OR AGILE, but WATERFALL AND AGILE
4. FUNCTIONAL MANAGERS are likely the biggest barrier
5. CASE STUDIES show focused adoption leads to success
February 2017 20Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 20
Thank you!
John Carter
jcarter@tcgen.com
650.283.9395
Jeanne Bradford
jbradford@tcgen.com
408.828.5168
TCGen Inc.
Menlo Park, CA
www.tcgen.com
Agile: Not Just for Sofware

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Agile: Not Just for Sofware

  • 1. Disruptive Methods for Applying Agile to Product Development Agile: Not Just for Software
  • 2. February 2017 2Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 2 Agenda 1. Agile Defined 2. Why have tangible products been slow to adopt Agile? 3. Modifying Agile: Areas of biggest gains for tangible products 4. How to Implement: Nesting Agile within Waterfall 5. Management: The biggest impediments to success 6. Case Studies Agile: The Most Disruptive Process Currently Impacting Product Development!
  • 3. February 2017 3Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 3 TCGen: Approach & Background John Carter • Cirrus Logic (CRUS); Board of Directors • CTO of Klipsch Group; Raised Private Equity • Chief Engineer of BOSE; Noise Cancelling Headphones Jeanne Bradford • Architected Apple’s product development process (ANPP) • Led Programs for Apple, Cisco & Texas Instruments • Builds high performance teams to accelerate delivery
  • 4. February 2017 4Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 4 Agile Defined • The Agile development process was defined 16 years ago to address chronic delivery problems • The Agile Manifesto* has led to remarkable improvements • The most common approach is a Scrum approach * http://agilemanifesto.org/ Roles Scrum Master Product Owner Team Ceremonies Planning & Estimation Daily Standups & Monitoring Demos & Retrospectives Foundations Fixed length Sprints (2W) Stories & Epics Managers serve the Team Customers part of Team
  • 5. February 2017 5Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 5 Why have tangible products been slow to adopt Agile? • Myths create major barriers to adoption – “Applying Agile is all or nothing” – “You must be able to ship every two weeks” – “Agile and Waterfall/Milestone are mutually exclusive” • There is a lack of prescriptive best practices • Functional managers must simultaneously cede control • Harder to isolate small teams and pilot Agile or Waterfall? Do Both!
  • 6. February 2017 6Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 6 Agile Manifesto – Not Just for Software 1. Business people and developers work together daily 2. Projects require motivated individuals, support & trust 3. Face-to-face conversation is most efficient 4. Agile processes promote sustainable development 5. Continuous attention to technical excellence 6. Simplicity is essential 7. The best designs emerge from self-organizing teams 8. At regular intervals, the team reflects 9. Welcome changing requirements 10. Continuous delivery of valuable software 11. Deliver working software frequently 12. Working software is the measure of progress 75% of the Agile Manifesto CAN apply to any type of development Software Specific Universal http://agilemanifesto.org/
  • 7. February 2017 7Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 7 Modifying Agile: Areas of Biggest Gains Benefit Top Benefits for Agile Implementation outside Software Speed & Innovation
  • 8. February 2017 8Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 8 Key Insights: Singular Differences – Tangible Products vs. SW Development proceeds by designing and prototyping Development is highly non-linear and chunky Features appear much later and in large increments Stories focused on components and interfaces not User Experience Team members often write more Stories than Product Owner Development proceeds by accretion and refactoring
  • 9. February 2017 9Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 9 Why Should We Nest Sprints Within Milestone Frameworks • Sprints within a Milestone Framework increase speed – Accelerates decisions because Sprints encapsulate work – Increases urgency because underperformance is visible • Milestone reviews provides needed financial controls • Milestone reviews facilitate qualification & verification • Milestones and Innovation Sprints can easily co-exist MILESTONE “N” MILESTONE “N+1” P R P RP RP RP R NESTED SPRINTS
  • 10. February 2017 10Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 10 How to Implement: Three Components Enabled by Teams Sprint Planning Executing & Measuring Reviewing FOUNDATION: High Performance Teams Plan Execute/Measure Review Plan Execute/Measure Review FRAMEWORK: Sprints for tangible products Plan Execute/Measure Review
  • 11. February 2017 11Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 11 Executing/Measuring • “Daily” Standup Meetings – Determined by team capability & velocity – Always BRIEF (LESS THAN 20 MIN) • Sprints magnify latency issues – One reason why Agile increases speed – spotlights excuses • Abandon the habit of serial prototype builds* Plan Execute/Measure Review Proto 1 Proto 2 Proto 3 Proto 4 4x cycles of learning in the time of 2.5x * Can double cost, but cut this stage by half!
  • 12. February 2017 12Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 12 Prototyping & Importance of Customers & Proxies • The audience for the prototype or demonstration is as important as the goal itself • The audience should vary from sprint to sprint Customers & Proxies Examples End customers Economic buyer, Users, Influencers Customer segments Geographic diversity, Usage diversity, Organizational (e.g. Academic, Government, Commercial) Intermediate customers Dealers, distributors, representatives, and importers External customer proxies Reviewers, magazine editors, lost customers, competitive customers Internal customer proxies External sales force, internal sales force, field service, customer service, application engineering, quality Plan Execute/Measure Review
  • 13. February 2017 13Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 13 Review and Reflection…and Learning Action Plan Planned vs. Unplanned Events Plan Execute/Measure Review
  • 14. February 2017 14Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 14 Management: The Biggest Challenge • TCGen’s analysis* of Functional Management meddling – Rooted in Leadership, Culture and Compensation – Management incented for functional, not team success – Unintended consequence of functionally organized companies • Ingrained resistance is very hard to root out – Domain expertise over collaboration/EQ skills – Managers may lack trust; Teams may not self-generate – Lost power, unclear career path, changed performance reviews *2015 Project History Analysis of Agile Transformations
  • 15. February 2017 15Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 15 Organizational Remedies For Agile Transformation • Servant Leadership: the needs of the team before your own – Change incentives to reward team success – Middle managers remove roadblocks; focus on platforms & architecture – Hire for both domain and collaboration expertise • Project Teams: product ownership & accountability – Build trust with leadership through critical thinking & execution – Prioritize team allegiance through collaboration – Relentlessly adopt Agile mindset
  • 16. February 2017 16Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 16 Instructor Biographies • The Approach – Planning: focus Sprint Goals, Acceptance Criteria, Metrics – Demo to management at the end of the Sprints – Heavy facilitation nearly full time for the first set of Sprints • The Costs – Process highlighted lack of Functional Management Support – Exposed the organization to the need for reskilling team • The Benefits – The rapid cadence of Sprints resulted in improved team collaboration, faster decisions and schedule accountability Consumer Electronics Case Study: A Step at a Time
  • 17. February 2017 17Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 17 Instructor Biographies • The approach – Focus on “Show & Tell” @ end of Sprints (UX, SW, SI) – NO burndown charts, NO sprint estimates – Leave Design Control in place (FDA) • The Costs – More prototypes & more effort in stories • The Benefits – Breaks the work down into 3 week sprints, forcing decisions and schedule adherence – Accuracy of the overall project is much higher and the developers are much more engaged Medical Devices Case Study: How They Disrupted Waterfall
  • 18. February 2017 18Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 18 Preventing Business Loss via Agile Project Leadership – A tussle in a traditional Functional Organization – Two weeks to decide a path forward • Sales of $40M / Year • Burn rate of $50K / Day! • 2 weeks spin = $700K LOSS! Loss of REVENUE1 • Salary of $200K (total costs) • Burn Rate of $13.5K / Day! • 2 weeks of spin = $220K EXPENSE! + $920K LOSS* (Avoided with Agile) Increase in COSTS2 1 Example of consumer launch around holidays 2 3 Teams of 9 people each
  • 19. February 2017 19Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 19 In Summary… 1. AGILE methods CAN ACCELERATE product development 2. The business value of Agile is BIG and is QUANTIFIED by TIME 3. Not WATERFALL OR AGILE, but WATERFALL AND AGILE 4. FUNCTIONAL MANAGERS are likely the biggest barrier 5. CASE STUDIES show focused adoption leads to success
  • 20. February 2017 20Agile Beyond SoftwareTCGen.comAgile – Not Just for Software 20 Thank you! John Carter [email protected] 650.283.9395 Jeanne Bradford [email protected] 408.828.5168 TCGen Inc. Menlo Park, CA www.tcgen.com

Editor's Notes

  • #2: Who in audience??? Managers or On Teams Companies? Agile Experience? Jeanne and I – 2 for 1 BOB CAPORALE – CREATIVE INNOVATION ARC INTRODUCE SITUATION, SET UP PROBLEM DEV PLAN, SOLVE THE PROBLEM & SHOW RESULTS CPG, industrial materials, heavy equipment Consumer electronics business equipment, Utilities Can apply to services too
  • #3: Disruption is Agile Implement without revolt Typical failure is to try to apply too much of Agile What really matters Supply tangible case studies Leave 10-15 minutes for Q’s About 20 slides ASK QUESTIONS for CLARIFICATION
  • #4: We do a wide range of work – Apple’s NPP –AND AGILE TRANSFORMATIONS Focus, focus, focus Measure adoption, measure quality Almost 50% of time spent actually doing it – My PLAN A JEANNE’S BACKGROUND Innovation, Bose noise cancelling headphones, Got my first Project Management ROLE – Bose Wave Radio DARK SIDE, Canadian, Danish & US organizations Cirrus Logic – Important link, Swiss Army Knife – engineer blade HOLD UP BOOK!
  • #5: NOT DEFINE MANIFESTO Burnout, shippable code, and fixed schedule, not fixed scope Challenge with Product Owners, need one per 3 scrum teams (MAX) Challenge of Agile as applied to tangible products
  • #6: MYTHS Define non software Software is intrinsically different from HW Important to implement what you can and what you should! Protos and Demos Functional Manager = Levels between VP and team member (Sr. Dir. Mech, Dir. of Packaging, Manager of Plastics & Components) Strongly recommend you pilot first on a product by product basis 9 MIN
  • #7: Describe the manifesto process – where, when, and who and for what reason There are 12 recommendations, 9 of the 12 are best practices that you or I would follow Describe the 3 recommendations that are SW only Software dev is by accretion versus HW which is late and chunky
  • #9: Of course many differences… but what is fundamental to Scrum? SW is like a snowball, growing diameter while rolling down the hill Linearly over time HW functionality occurs later, and in big chunks (prototype builds, for example) Non-linear, production tooling – 0ff tool
  • #10: Use Applied process tool example Quantify, 4 Sprints, 3 weeks = 12 Weeks, 3 Months Accelerates / forces decisions Quickly ferrets out delays Request ordering of $5M worth of custom display parts that require 3 months of lead time Order $7M worth of test equipment, that requires 14 weeks to make, configure and install FDA requires verification and validation of claims
  • #11: Here is how to implement – practical advice for you in the audience 5 powerful concepts Biggest 2 are FRAMEWORK and FOUNDATION 3 process elements are what happens during the product program Frankly 80% of the benefit if do FRAMEWORK and FOUNDATION I’m not going to talk about sprint planning – there are tons of references on line – Roman Pichler 30 MIN
  • #12: Standups adaptive – often too much energy defending or trashing Remember, this is not religion If you hear about something 3 days in a row, right to tack action Case study – increasing protos by x2 actually cuts the prototype phase from 6 months, to 3 months, shortening 15 month development to 12
  • #14: Retrospectives are about learning – period. “What went well, what didn’t, what we should do differently” – nice, but not effective. But you’re leaving a lot of valuable information on the table Graphical agenda, 2 hours for each of three discussion points Amazing how the events change under scrutiny Really systematic process Used by Apple to this day as their Retrospective Process What happened? What is important? Why did it happen? What is important? What is the big picture? What do we do about it? – Action Plan
  • #15: Single biggest point of impedance We have a lot of data that shows the systemic issues that prevent teams from reaching their product development goals – all systemic; all have to do with leadership issues Functional Manager/Middle Management = Levels between VP and team member (Sr. Dir. Mech, Dir. of Packaging, Manager of Plastics & Components) Technology industry – many not trained in leadership – promoted based on technical/domain expertise. They may know how to design, but they don’t know how to remove cross-functional roadblocks. Questions why be a manager, what do I do? How do I add value? Why am I needed, if team can make decisions? Remove roadblocks – improve the roadmap – let your team members get closer to the customer.
  • #16: Servant Leadership should not devolve into a buzz word! It really matters, so don’t make it trivial. When managers are not trained in leadership – Servant leadership is even harder The ability to collaborate is crucial: dissolve “functional allegiance vs product allegiance
  • #17: High volume, low cost consumer electronics Connected to apps, and the cloud Clearly cycles of learning and improvement Both short term benefits – tangible – shorter time to market, More fundamentally showed gaps in functional management (single biggest point of failure) And team skills needing upgrading (communication, collaboration, leadership)
  • #18: This is the real deal, with out consulting spin, or unjustified passion Medical devices company, doing this for several product cycles Volume in the 100K range, consumer price levels Benefits are team engagement and speed Too frequently programs were cancelled or late, both degraded engagement Indirect productivity improvement
  • #19: Case study derived from the company that just acquired Whole Foods Very hand rule of thumb Setup – Marketing and Engineering can’t agree on the need for an important feature (displaying exercise in bar chart per day) Situation where Agile could have prevented loss of two weeks of arguing Assumes a holiday launch, so sharp loss of sales Does not depict loss in share or reputation
  • #20: Time to market – shorter! Development cost ~ lower Accuracy – higher! Case studies Helps takes our head out of clouds You can be very successful with even a subset Sprints & Teams!!!