Why organizations are adapting towards agile? Is it to get most out of their resources or is it about doing the right thing?

 

Traditional mind set of achieving high productivity and using resources efficiently does not change easily, even when organization moves to agile they remain more and more worried about the team velocity. When I meet agile practicing companies or I attend event on agile I find that most of

the focus is on delivering product backlog efficiently. We see lot of talks on how to make team more self-organizing so that they can do the things faster.  Even after moving to scrum or agile we keep ignoring the warning

“There is nothing so useless as doing efficiently that which should not be
done at all.”  —Peter F. Drucker

When most of the organization starts with agile they takes it as an engineering process, and most of the team focuses too much on velocity, while to get maximum out of agile we need to look at Enterprise Agility, we need to look at an organization’s entire value stream—from idea to implementation, from concept to consumption.

My talk would be focusing on need of organization agility and will introduce one of the monitoring tool “Life Cycle Profitability “which can help organizations in getting answers of questions like :

  • Should we delay the release by one month to fix the defects ?
  • Should we reduce the cycle time by adding one more team?
  • Should we delay the release to add functionality?
  • Should we delay the project by one month to get more innovative ?

Life Cycle Profitability is based on principle “Take an economic view” introduced in book:The Principles of Product Development Flow , Donald G. Reinertsen . In my talk I will be showing how we can convert proxy variables like cycle time , velocity , technical debts  into Life Cycle Profit.

I presented part of this concept in one of the conference and got good response, but I will create fresh presentation for this talk, since this time I will put more focus on expanding the model to calculate the Life Cycle Profit.

 
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Outline/structure of the Session

1 min - Introduction

4 min - Q & A with Audience to know what they feel about the goal of process improvement initiatives (Agile , Lean etc)

5 min – Introducing how local optimization results in high WIP  

5 min – Showing importance of Optimize as Whole approach

10 min – Introducing impact of proxy variables on Profit

10 min – Life Cycle Profit Model

5 min – How to use Life Cycle Profit as project measurement and decision making tool

5 min - Q&A

Learning Outcome

1. Understanding how local optimization may not always result in overall optimzation

2. Understanding  principle “Take an economic view” of The Principles of Product Development Flow , Donald G. Reinertsen

3. Learning to create a model which can help project team in taking econmic view on project.

 

Target Audience

Scrum Master , Product Owners , Agile leaders, Managers , Quality Assurance , Quality Control , PMO , Governance

schedule Submitted 2 years ago

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comment Comment on this Proposal
  • Tathagat Varma
    By Tathagat Varma  ~  1 year ago
    reply Reply

    Saket - two points here. 

    1. We prefer talks that have real-world battle stories in this conference. Can you add data points that help us understand what have you done with those ideas to test them in practice?

    2. How is the talk relating to scaling agile adoption

    Can you add your perspective?

    thanks,

    TV

    • Saket Bansal
      By Saket Bansal  ~  2 years ago
      reply Reply

      Hi,

      Here i try to explain my view on these two points.

      1. We prefer talks that have real-world battle stories in this conference. Can you add data points that help us understand what have you done with those ideas to test them in practice?

      Saket : i have planned to talk about it after explaining the concept , and i allocated 15 min to the example data model and how can it be used 

      ---

      10 min – Life Cycle Profit Model

      5 min – How to use Life Cycle Profit as project measurement and decision making tool

      ----

      I can revise the submission and make this thing explicit in content by saying that i will be presenting Sample model which we used in one of the embedded software development company, the current presentation is not touching that part and this is the area which i wanted to update for this event. 

      2. How is the talk relating to scaling agile adoption

      Saket : In my view  Alignment and decentralized decision making play crucial role in scaling, the measurement system like this help in ensuring that team is aligned with portfolio objective and they can also make decision on their own based on economics.

       

      Hope this clarifies or let me know if i need to be more elaborative.

      Regards,

      Saket

       

      • Tathagat Varma
        By Tathagat Varma  ~  2 years ago
        reply Reply

        Can you pl update the deck and share the one that you propose to use for the talk? thanks.

        -TV

        • Saket Bansal
          By Saket Bansal  ~  2 years ago
          reply Reply

          Hi,

          Since the proposal is already rejected (got email about it), i think no use of working on it now, applying defer commitments in life saves time :-) 

          Thanks and Regards,

          Saket

        • Saket Bansal
          By Saket Bansal  ~  2 years ago
          reply Reply

          Will do it by next week.

          Regards,
          Saket

  • Jerry Rajamoney
    By Jerry Rajamoney  ~  2 years ago
    reply Reply

    Hi Saket,

    How do you define profilt? What is the view you want to take in your discussion? I have not seen any people perspective. Do you want to consider the economic view only?

    Thanks,

    • Saket Bansal
      By Saket Bansal  ~  2 years ago
      reply Reply

      Hi Jerry,

      The idea i am presenting is to consider economic view as a measure for project / product direction and decision making, we should do things which makes us profitable, and the idea is not about one time profitability it is about life cycle profitability, so if we do not include people factor in model we will not be able to remain profitable for long. The idea i am driving in this session is consider factors which makes organizations profitable and start measuring them at regular frequency.

      I worked with one of the device manufacturing company and where they saw lots of clarity in decision making when they applied this model, before this model in place we were not having way to quantify cost of delay and decision were taken with poor visibility.

      Hope this clarifies your query, if not please let me know i will try to address it.

       

      Regards,
      Saket

       


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