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Agile Organization with Scrum@Scale, Vimar Spa a real example

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Agile Organization with Scrum@Scale, Vimar Spa a real example

  1. 1. Agile Organization Incrementally Crafting the Right Organization with Scrum@Scale Paolo Sammicheli http://paolo.sammiche.li Venezia, 15 September 2018
  2. 2. Paolo Sammicheli – Agile Business Coach http://paolo.sammiche.li
  3. 3. FESTO Founded 1925 18.700 employees 250 subsidiaries 61 countries Turnover € 2,74 Billion
  4. 4. Agile Organization
  5. 5. We are uncovering better ways of developing software by doing it and helping others do it. Through this work we have come to value: Individuals and interactions over processes and tools Working software 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. Manifesto for Agile Software DevelopmentProduct products product
  6. 6. « An Agile Organization is one that is quick in responding to changes in the marketplace or environment » Source: https://www.mbaskool.com/business-concepts/it-and-systems/6703-agile-organization.html
  7. 7. In the old model the focus is the project, which is at the center, and people organize themselves in groups around it. The new model puts the teams at the center, and the work flows to them. Stable teams who, with appropriate coaching and time spent together, become High Performing. The Copernican Revolution of Labor
  8. 8. Agile Organization Why Agile is Eating The World Jan 2, 2018 In 2011, Marc Andreessen wrote his famous essay, “Why Software Is Eating the World,” in The Wall Street Journal, leading to the cliché that “every company needs to become a software company.” In 2018, the five biggest companies in the world by market capitalization are IT firms: Amazon, Apple, Facebook, Google and Microsoft. t's not that all software is eating the world: General Electric has just proved that in a spectacular fashion: It invested heavily in software and the result. After five years, the CEO and his top lieutenants were terminated. Similar developments are under way at Intel, P&G and HP.
  9. 9. «It is Firms that are truly Agile that are eating the world, whether or not they call themselves by the label “Agile” » - Forbes, 2 Jan 2018
  10. 10. McKinsey & Company Source: https://www.mckinsey.com/business-functions/organization/our-insights/the-five-trademarks-of-agile-organizations January 2018
  11. 11. McKinsey & Company December 2015 https://www.mckinsey.com/business-functions/organization/ our-insights/agility-it-rhymes-with-stability Agility it Rhymes with Stability Companies can become more agile by designing their organizations both to drive speed and create stability.
  12. 12. Harvard Business Review 13 May-June 2018 https://hbr.org/2018/05/agile-at-scale Companies that successfully scale up agile see major changes in their business. Scaling up shifts the mix of work so that the business is doing more innovation relative to routine operations. The business is better able to read changing conditions and priorities, develop adaptive solutions, and avoid the constant crises that so frequently hit traditional hierarchies. By Darrell K. Rigby, Jeff Sutherland, Andy Noble
  13. 13. Scrum at Scale • Guide published by Jeff Sutherland and released under Creative Commons License in February 2018. • Extremely simple, only 18 pages. • The method clearly distinguishes the structure of the organization from the content and describe only the structure of the relations, making it universally applicable. source: https://www.scrumatscale.com
  14. 14. © 1983-2018 Jeff Sutherland & Scrum Inc. Components of the Scrum@Scale Framework Continuous Improvement & Impediment Removal Executive Action 
 Team Cross-Team Coordination Team-Level Process Metrics &
 Transparency Product & 
 Release Feedback Strategic
 Vision Executive Meta Scrum Deployment Backlog Prioritization Backlog
 Decomposition
 & Refinement Release
 Planning Potentially Shippable Product Increment Product Owner
 Cycle Scrum Master
 Cycle 15
  15. 15. Scale-Free Architecture • A scale-free network is a network whose degree distribution follows a p o w e r l a w , a t l e a s t asymptotically. • The most notable characteristic in a scale-free network is the relative commonness of vertices with a degree that greatly exceeds the average. The highest-degree nodes are often called "hubs", and are thought to serve specific purposes in their networks, although this depends greatly on the domain. 16 https://en.wikipedia.org/wiki/Scale-free_network
  16. 16. © 1983-2018 Jeff Sutherland & Scrum Inc. Scale-Free Architecture • If you want to scale exponentially you need a “scale-free” architecture • Otherwise you risk introducing waste into the system and slowing the whole organization down • You will not achieve linear scalability • Scale-free architectures are pervasive in biology (ex. neural networks) • They are able to evolve to perform new functions more rapidly than an alternative network design Diagram of a scale-free network that contains components with a highly diverse level of connectivity. Some components form highly interconnected hubs, while other components have few connections, and there are many levels of interconnectivity in between. Scale-free networks are pervasive in biology. Computer simulations at the University of Chicago show that scale-free networks are able to evolve to perform new functions more rapidly than an alternative network design.Source: http://chronicle.uchicago.edu/061207/darwin.shtml Digital Darwinian world reveals architecture of evolution 17
  17. 17. © 1983-2018 Jeff Sutherland & Scrum Inc. Scaling Challenge: Bureaucracy & Hierarchy • A bureaucratic processes creates poor decision latency. • Everything we do requires so many sign-offs that nothing gets done. • We have layers upon layers of managers. • Therefore, we need a Minimum Viable Bureaucracy. 18
  18. 18. © 1983-2018 Jeff Sutherland & Scrum Inc. The Scaled Daily Scrum: The SM Role Scaled •Scrum must scale in an organic way consistent with the Scrum Guide or it will be slow •Using a Scrum of Scrums reduces communication paths but increases communication saturation •Scrum of Scrum works as a “Team of Teams” In order for the SoS to be most effective, we need a Scrum of Scrums Master (SoSM) to ensure that: • Impediments are shared and removed • Knowledge is spread and standardized • Dependencies are discussed and resolved • The SoS functions as a Team of Teams with the responsibility of the Integrated Release. 19
  19. 19. © 1983-2018 Jeff Sutherland & Scrum Inc. Scaled Daily Scrum (SDS) 20 SM SM SM SM SM SoS • Exists to coordinate the Scrum of 
 Scrums and remove impediments
 to the delivery of value to customers • The SDS event mirrors the Daily 
 Scrum • An opportunity to re-plan in
 order to achieve the Sprint goal
 for the SoS • Surfaces impediments • Shares learnings for continuous improvement SDS
  20. 20. © 1983-2018 Jeff Sutherland & Scrum Inc. The Executive Action Team 21 • Accountable for the quality of Scrum in the organization • Owns the Organizational Transformation Strategy • Owns the Transformation Backlog and “eats impediments” that block it • Removes impediments not handled at the Team level due to scope, budget, or corporate political power • Executes the Transformation Strategy or delegates it to a center of expertise (often called the Agile Practice) • Measures and improves the quality of Scrum in the organization to build capability for business agility
  21. 21. © 1983-2018 Jeff Sutherland & Scrum Inc. Scaling SAAB Technologies to Hundreds of Teams
 Synchronizing 2000 People in about one hour! • 7:30 Daily Scrum • 7:45 Scaled Daily SoS • 8:00 Scaled Daily SoSoS • 8:15 Scaled Daily SoSoSoS • 8:30 Executive Action Team 22 https://www.slideshare.net/xdatap1/tre-metri-sopra-il-cielo-scrum-nellaeronautica-militare/
  22. 22. © 1983-2018 Jeff Sutherland & Scrum Inc. 23 Scaling the Product Owner Product Owner •Team •Sprints •Validated Learning Chief Product Owner •Multiple Teams •Roadmap •Coordinating teams Chief Chief Product Owner •Value Streams •Vision •Organizational Priorities PO CPO MetaScrum PO PO PO POPO Executive MetaScrum SM
  23. 23. © 1983-2018 Jeff Sutherland & Scrum Inc. Scrum Master and Product Owner 
 Functions Scale Coordination Differently Scrum Master Product Owner • Share best practices • Collectively solve problems & remove impediments • Bottom-Up Process • Maintain clear and consistent product vision • Optimize business value responding decisively to changing market • Top-Down Process Team Scrum of Scrums Scrum of Scrum of Scrums T TT T TT T TT T TT T TT T TT PO CPO PO PO CPO PO CPO Product PO team Component PO team Component PO team 24
  24. 24. Scaling 125 people 25© Jeff Sutherland & Scrum Inc 1993 – 2018
  25. 25. Scaling 250 people © Jeff Sutherland & Scrum Inc 1993 – 2018
  26. 26. Real Life Structures: Asymmetry 27
  27. 27. How do you Start?
  28. 28. Sprints never finish with working product Process Efficiency = 5% Sprints always finish with working product Process Efficiency = 50% © Jeff Sutherland & Scrum Inc 1993 – 2018
  29. 29. EAT SM Pilot Team(s) Stakeholders bla bla bla bla blabla blablabla bla bla bla bla bla blabla blablabla bla bla bla bla bla bla blabla blablabla bla bla bla bla bla bla blabla blablabla bla bla bla bla bla blabla blablabla bla bla bla bla bla bla blabla blablabla bla bla bla bla bla bla blabla blablabla bla bla bla bla bla bla blabla blablabla bla bla bla bla bla blabla blablabla bla bla bla bla bla bla blabla blablabla bla bla bla bla bla bla blabla blablabla bla bla bla bla bla blabla blablabla bla bla bla bla bla bla blabla blablabla bla bla bla bla bla bla blabla blablabla bla bla bla bla bla blabla blablabla bla bla bla bla bla bla blabla blablabla bla bla bla bla bla blabla blablabla bla bla bla bla bla bla blabla blablabla bla bla Impediments Reference Model How do you start? Scrum@Scale
  30. 30. VIMAR SPA Case Study
  31. 31. Senior Director with 30 years of experience in the Automotive field, Giorgio defined and developed new business opportunities from green field (Blue&Me and Intelligent Tyre), settling new strategic alliances with technology giants (Fiat – Microsoft, Pirelli – Telecom Italia – University of California at Berkeley, Pirelli-Magneti Marelli-Brembo). With a master in Electronic Engineering, a strong technical background on electrical, mechanical and electronics engineering in the automotive field, from the ICs in house development to the most complex mechatronics systems, including hybrid vehicles, Giorgio recently moved to another challenging field, home automation, with the objective to bring to lead and manage innovative and complex projects to production. Giorgio Audisio - R&D Director at Vimar Spa AutoTech Partners
  32. 32. VIMAR Based in Marostica, Vicenza - Italy 1.300 employees 6% of turnover invested in R&D More than 180 patents 200 Ml of pieces sold 12000 catalog parts
  33. 33. FROM Eikon, Arké, Idea e Plana
  34. 34. TO Home & Building automation
  35. 35. • To be able to develop complex functions following the need of the market which continuously changes. • To increase the motivation of the developers which see in short time the results of their job. • To attract the best engineers providing a modern and up to date job environment where their skills and professionality can grow. Why Agile and Scrum?
  36. 36. Implementation
  37. 37. Every project start with at least two day of LiftOff, with the whole team, the key stakeholders and some managers, where we share the Vision, the requirements, the constraints and we create the first backlog with the User Story Mapping technique, covering Software and Hardware layers. Whole team alignment
  38. 38. Daily Meetings and Scaled Daily • From 8.30 to 9.00 all the teams have their individual Daily Meeting. • At 9.00 a representatives from all the teams, also the remotes and suppliers, join the Scrum of Scrum. • Scrum of Scrums have a senior manager serving as the Scrum of Scrums Master, in charge of systemic impediments.
  39. 39. Organizational Structure (example) MetaScrumScrum of Scrums CPO Chief Product Owner SSM Scrum of Scrums Master PO Product Owner SM Scrum Master Product Backlog
  40. 40. • We behave like a real buffet: you can't take too little, because it would not be polite, but you can't take too much because you have to eat whatever you take. • Very energetic meeting where discussions took place spontaneously; a managed chaos. • It takes around one hour of discussions for Sprint Planning 1 (what to do). At the end of the hour every team shares with the others what they selected and the CPO checks the table to see if there are high priority items still there. In that (very rare) case, teams are asked to volunteer to replace something they have with the remaining high priority item. Buffet Planning
  41. 41. Deployment / Review • Teams have dedicated rooms where integrate and test, very often during the Sprint, the products. • These rooms usually are used also for the Sprint Review, so they all have projectors and foldable chairs to accomodate guests. • The different products are installed in several movable panels. They can also be taken into the team room during the Sprint for convenience.
  42. 42. Results
  43. 43. 0,00 15,00 30,00 45,00 60,00 Sprint 1 Sprint 4 Sprint 7 Sprint 10 Sprint 13 Sprint 16 Sprint 19 Sprint 22 Sprint 25 Sprint 8 = 6 story points Sprint 14 = 23 story points Sprint 26 = 55 story points In one Year: 9.16 times faster! Cumulated Yesterday’s Weather of the HQ Teams Benefits •Quickest developments with an increasing productivity. •More alignment and effectiveness. •Higher motivation.
  44. 44. Point of attention •Scrum doesn’t mean lack of planning and unpredicted Time-to-Market. •A new approach to project and portfolio management is necessary. •Small signals of inefficiency (impediments) must be carefully monitored and promptly corrected. 45
  45. 45. We are always looking for new talent! www.vimar.com Azienda Lavora con noi 46
  46. 46. THANKS

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