Using SCRUM for Process Improvement, Agile Tour 2011 Bucharest Romania presentation Luciano Guerrero

1. Agile business processes
Presentation at Agile Tour 2011
Bucharest, Romania
25 Nov 2011
Luciano Guerrero
President Procesix Inc.
Procesix 2011
www.procesix.com
e-SCM © 2006 by Carnegie Mellon University. All rights reserved.
SM: CMM Integration, CMMI, SCAMPI, and IDEAL are service marks of Carnegie Mellon University
ITIL® is a Registered Trade Mark, and a Registered Community Trade Mark of the Office of Government Commerce, and is Registered in the U.S. Patent and Trademark Office.
“PMI” and “PMP” are registered marks of Project Management Institute, Inc.
COBIT 4.1 is property of the IT Governance Institute (ITGI)
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2. Agenda
Agile business processes
 Needs and challenges
 Process as a tool
 Agile approach to process improvement
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3. Agile business processes
Businesses are facing dramatic challenges during this decade, from economy, technology and
globalization. The business approaches that were successful a few years ago are no longer fit
for a rapidly changing environment. There are new players, different markets and greater new
opportunities. There is only one thing that will never change: to be a successful enterprise (a
survivor) you NEED to continuously optimize your productivity, improve quality, and to be one
step ahead of your competitors for satisfying your customers’ needs.
Mature processes are the basis to build a solid enterprise architecture, to optimize the
investment in technology and to obtain the best from the human talent. Well implemented
processes are a powerful tool to support business goals, capture know-how and to lower the
risk posed by expertise turnover.
The process need to be seen from a customer perspective, integrating the outputs of teams
and functional areas in order to deliver high-quality services and products. The industry seems
to be moving to adopt multimodel, pragmatic approaches oriented to measurable results.
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In order to meet the need for highly efficient and adaptable practices, the industry is using
agile process management approaches without lowering maturity . Sound enterprise
architectures can use ready-to-use process solutions, using better the investment and
integrate business functions and customer.
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4. Procesix 2011 Agile business processes
WHO ARE WE
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5. Procesix Inc. purpose
Agile business processes
Expertise providing
Value proposition Presence
services since 1999
Business Process Offices
Management (BPM) Consulting, Training, Assessment •Canadá
consulting services to improve services to implement solutions to •Chile
our customer’s: common risks and problems
•Brasil
• Process efficiency and •Colombia
productivity
• Aligning business objetctives •Argentina
with core processes •Partners in Latin America and
• Core processes workflows Team of consultants (SME) in Europe
based on industry practices and governance, process management, •In Romania by 3PRO-LAB
standards enterprise architecture, project
management, system engineering,
software development, service,
quality assurance and other IT core
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areas
Partnership with SEI, ITSqc,
Leadership in introducing industry
models and recommended
practices:Togaf, eSCM, PSP, TSP, C-
BOK, CMMI-SVC y CMMI-DEV,
among others
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6. Agile business processes
NEEDS & CHALLENGES
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7. The IT industry is facing many challenges
Agile business processes
Globalization
New
technologies
Shortage of
creating more
talent and
demand for
software expertise
development
Challenges
Customers
expect lower
Global
prices, shorter
economy
development
and higher problems
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quality
Increasing
system
complexity
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8. Common business objectives
Agile business processes
Satisfy customer Increased Costs under
needs productivity control
Architecture
Deliver high-
Shorter time-to- oriented to
quality products
market maintenance and
& services
reuse
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Maintain risks Need for better Repeatable
under control governance results
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9. Market trends
Agile business processes
• Offer is bigger than demand • What You See Is What You Get
• Real improvement in performance (WYSIWIG)
• Second decade customers expect • Long, complex, costly lifecicles
instant solutions • Dependency on providers and big
• They have growth in the culture of download companies
and personalization
• Inflated costs
• Expecting continually decreasing
costs • Protected markets
• Globalization • Silos, island, hermits
• Cloud ITC
IN OUT
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10. Methodologies lifecycle
Agile business processes
CMMI, Agile are
widely adopted,
mature
methodologies
Crossing the Chasm (1991, 1999), Geoffrey
A. Moore,
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Diffusion of Innovations , Everett
Rogers
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11. Basic components
Agile business processes
Governance Organization
Enterprise Capturing
Architecture knowledge
Solutions Talent
Tools Expertise
Process Know-how
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Technology People
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12. Multimodel approach to business processes
Agile business processes
Governance
(COBIT)
Project
Management
(PMBOK)
Development
(CMMI) Service(ITIL)
CMMI SVC
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CMMI Acquisition
CM QA Subcontracts Process Metrics
e-SCM © 2006 by Carnegie Mellon University. All rights reserved.
SM: CMM Integration, CMMI, SCAMPI, and IDEAL are service marks of Carnegie Mellon University
ITIL® is a Registered Trade Mark, and a Registered Community Trade Mark of the Office of Government Commerce, and is Registered in the U.S. Patent and Trademark
Office.
“PMI” and “PMP” are registered marks of Project Management Institute, Inc.
COBIT 4.1 is property of the IT Governance Institute (ITGI)
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13. 12 principles of Agile manifesto
Agile business processes
• Our highest priority is to satisfy the customer through early and continuous delivery of
Customer satisfaction valuable service.
• Welcome changing requirements, even late in development. Agile processes harness
Requirements management change for the customer's competitive advantage.
• Deliver working outputs frequently, from a couple of weeks to a couple of months, with a
Timely delivery preference to the shorter timescale.
Customer involvement • Business people and developers must work together daily throughout the project.
• Build projects around motivated individuals. Give them the environment and support they
Teamwork need, and trust them to get the job done.
• The most efficient and effective method of conveying information to and within a
Peer reviews development team is face-to-face conversation.
Delivering quality • Working outputs is the primary measure of progress.
• Agile processes promote sustainable development. The sponsors, developers, and users
Predictable productivity should be able to maintain a constant pace indefinitely.
System Architecture • Continuous attention to technical excellence and good design enhances agility.
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Efficiency • Simplicity--the art of maximizing the amount of work not done--is essential.
Process maturity • The best architectures, requirements, and designs emerge from self-organizing teams.
• At regular intervals, the team reflects on how to become more effective, then tunes and
Continuous improvement adjusts its behavior accordingly.
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14. How CMMI address Agile principles
Agile business processes
Requirement development
Customer satisfaction
Requirements management
Requirements management
Project planning
Timely delivery CMMI Project monitoring & control
Customer involvement Configuration management
Teamwork Measurements
Peer reviews
Peer reviews
Testing
Delivering quality Agile
Continuous improvement
Predictable productivity Design, build & integration
System Architecture Integrated management
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Efficiency Process maturity
Subcontracting
Process maturity
Organizational support
Continuous improvement
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15. Characteristics of Process Maturity
Agile business processes
5
4 We can make
3
significant
We can predict improvements
performance
We share knowledge
2 Capability to achieve excellence
We have control of the project Continuous improvement
1 Statistical understanding of process
We do something
variation
Common processes agreed upon
Knowledge is captured and shared
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Basic Project Management
Engineering knowledge not shared
Knowledge depends of individuals
Too many risks
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16. What is process?
Agile business processes
Translation of “Process” in
Classic definition
the 2010’s
Model activities with adequate level of
details in order to understand what the
business does and how it performs
Provide effective control on what we are
doing
Potentiate innovation, productivity and
Flow of activities to obtain an output
sustaining business
A major investment made by the company
that must provide returns
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What differentiate our company from the
competition
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17. Customer perspective
Agile business processes
Customer perspective
Customer Provider Customer
Needs Process Satisfaction
Management,
Price Quality Availability Selection Customer, Team
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Functionality Service Brand Partnership
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18. Manifesto for Agile Software Business Development
Agile business processes
 We are uncovering better ways of developing software business by doing it
and helping others do it.
 Through this work we have come to value:
 Individuals and interactions over processes and tools
 Working practices over comprehensive documentation
 Customer collaboration over contract negotiation
 Responding to change over following a plan
 That is, while there is value in the items on the right, we value the items on
the left more
Meeting Ensure long-
expectations term Risks
Achieve Capture
Business
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productivity know-how
objectives
Validate Benefits
Governance
satisfaction
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19. Agile business processes
AGILE PROCESS
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IMPROVEMENT
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20. Business drivers to improve processes
Agile business processes
According to recent survey, the main drivers
motivating executives to start process
improvement programs in their organizations are:
Save resources and lower costs
To be better prepared for market challenges
Improve the performance of specific existing processes or introduce
innovation
Improve customer satisfaction
Compliance to regulations
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Respond to special events (acquisitions, mergers)
Adapted from The State of BPM – 2010, Paul Harmon & Celia Wolf
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21. Process agility
Agile business processes
Efficiency is still of paramount importance, but
operational excellence requires process
agility:
Capability of the organization to make significant
changes and performance improvement
People and systems capability to adapt to
continuous change and innovation
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Process transparency and governance
• Adapted from Gartner Magic Quadrant February 2010
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22. Business case to improve process
Agile business processes
The cost of bad quality is
always higher than investing in
good quality
“Quality is Free”, Philip Crosby, 1979, ISBN 0-451-62247-
2
The results in performance
resulting from process
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improvement justify the
investment needed to make
changes
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23. Agile business processes
Costs and roadblocks Benefits
Usually there is measurable
Resistance to change
ROI
Efficient and effective support
Side effects in the short term
of business objectives
Unrealistic expectations not
Better risk management
met
Isolated initiatives not aligned
Improved learning curves
with business needs
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Enable governance, control
Partial implementations
and visibility
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24. Real value added by industry models
Agile business processes
Questions when adopting models and
methodologies as reference for your
organization's process framework:
What business needs are addressed by the model?
Does the business process need to complement other
models as well?
To what extent we need to implement the practices?
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What are the costs and expected results?
Are these recommended practices suitable for our
organizational culture and maturity?
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25. Process trends in the 2010’s
Agile business processes
Management will have
Process will be managed
Process adaptability to better control of
directly by users
specific needs will be performance and will be
(management,
more easy able to make proactive
empowered users)
process changes
The shift from application
Process models with
development to a
friendly graphics and
paradigm of composing
explicit capabilities will
solutions will challenge
potentiate capture of
traditional methodologies
organizational knowledge
and models
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– Adapted from Gartner (January 2010)
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26. Multimodel approach: From strategy to action
Agile business processes
Identify “pains” and business objectives
Models are tools to be adapted to business process
• The purpose is to improve performance
• Models are not ends by itself
Models are roadmaps to guide process
implementation
There is no such thing as a “universal model”
• They address different aspects of the business
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Improvements need to be addressed from a
business perspective
• “Silo” improvements usually are not very effective
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27. Roadmap for improvement
Agile business processes
Assessment of
Process As Is Process To Be Implementation
business needs
D Diagnose
M Measure
A Analyze
I Improve
C Control
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D Define
M Measure
A Analyze
D Design
V Verify
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28. Roadmap for improvement - 1
Agile business processes
Assessment of
Process As Is Process To Be Implementation
business needs
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Inventory, modeling, and discovery of the current
processes used by the organization, including its
weaknesses
What we are, understanding our risks
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29. Roadmap for improvement - 2
Agile business processes
Assessment of
Process As Is Process To Be Implementation
business needs
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Systematically identify the cost of our weaknesses,
threats and setting the priorities for improvement to
address the business objectives
Understand our capacity and quantify the pain
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30. Roadmap for improvement - 3
Agile business processes
Assessment of
Process As Is Process To Be Implementation
business needs
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Identify and design the process architecture needed
to improve significantly the performance and
capability of the organization
Plan improvement in order to achieve business
objectives
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31. Roadmap for improvement - 4
Agile business processes
Assessment of
Process As Is Process To Be Implementation
business needs
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Implement efficient, effective and agile solutions to
meet business plans and survive in the marketplace
Implement solutions to needs as planned
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32. Case study: Agile approach to process improvement
Agile business processes
 Process Improvement master plan
 “Pains” were developed in process improvement activities (requirements)
 Improvement plan activities prioritized
 “SCRUM” approach applied
 Requirements broken down in backlog list
 Developed User stories, Use Cases
 Preparation phase leaded by consultant
 Team received training on methodology and applicable models
 Consultant had experience in BPM, SCRUM Master, and applicable models
 Working sessions are structured and monitored
 SCRUM practices applied consistently
 A high level model is agreed upon
 Limited to 4 sessions to agree upon on common process and tailoring
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 Documented by BPM consultant
 The Process To Be is communicated
 Sponsor support, diffusion, training
 During implementation process could be automated
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33. Summary
Agile business processes
There is no magic book to provide solutions to the many
challenges of the TIC industry in the 2010’s decade
Nevertheless there are several models covering specific areas
and common problems of the business
Organizations are learning to adapt and integrate these models
to their specific needs
The industry is still waiting for a coherent vision to facilitate their
application
The needs for faster, cheaper, better software are the same as in
the past two decades, only that this time are much bigger
Agile approaches are powerful accelerators when used in a
mature process environment
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34. Recommended reading
Agile business processes
Guide to BPM Common Body of www.abpmp.org
Knowledge (C-BOK)
ISBN: 1442105666
eSourcing Capability Model for Service www.itsqc.org
Providers (eSCM-SP)
ISBN: 9789087535612
eSourcing Capability Model for Client www.itsqc.org
Organizations (eSCM-CL)
ISBN: 9789087535599
CMMI for Services: Guidelines for sei.cmu.edu
Superior Service
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CMMI-SVC, CMMI® for Services, sei.cmu.edu
Version 1.3
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35. Questions?
Agile business processes
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36. Thank you for your attendance!
Agile business processes
Luciano Guerrero, President Procesix Inc.
luciano.guerrero@procesix.com
Our partner in Romania: Nicolae Giurescu
Nicolae.Giurescu@3pro-lab.ro
www.procesix.com
Procesix 2011
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