Scrum Outside of Software Scrum@Scale GTFS 2017 Boston
Four Dimensions of Implementing Scrum Scale = number of coordinating teams; complexity of projects Scale Distribution = number of different coordinated geographic locations Saturation = Agile principles pervade the Distribution organization; break down traditional silos Velocity = 10 teams going 5 times as fast Saturation is the same at 50 competitor teams and cost is 20% of the competition The fourth dimension is velocity 2
For Most Scrum Scaling IT Frameworks Don t Work Work = Twice the Work in Half the Time Some are not based on the Scrum Guide so they don t even work in IT For sales, marketing, and other non-it parts of an organization IT Scaling Frameworks don t work Most of our customers today are in manufacturing and they constantly complain they do not want to hear about Scrum in software. To scale across an organization or in non- IT settings we need Scrum@Scale. 3
First: Do Things That Don t Scale In order to scale, you have to do things that don t scale. It may sound counter-intuitive. But in order to scale, you have to get your hands dirty. Hand-craft the core experience. Serve your customers one-byone. And don t stop until you know exactly what they want. That s what Airbnb CEO Brian Chesky did. Tim Ferris interviewing Reid Hoffman, host of Masters of Scale. One of the most common types of advice we give at Y Combinator is to do things that don't scale. Paul Graham 4
Implementing true Scrum is the first step to scaling! Lean 1950 s Scrum 1990 s Agile 2001 2014 Inspired One Parent Implementation @
Case Studies ScrumInc Transformations 6
Scrum Deployment Driven by Exponential technologies 1. Sensors - Internet of Things 2. Artificial Intelligence / Machine Learning 3. Robotics 4. Solar PV 5. Energy Storage 6. 3D Printing 7. 3D Visualization 8. Mobile Internet & Cloud 9. Big Data / Open Data 10. Aerial Vehicles / Nano Satellites 11. emoney / efinance 1993-2016 Jeff Sutherland & Scrum Inc. @
Case Study: GE Digital 2015 $1B startup in Silicon Valley Revenue: $123.7B Market Cap: $263.36B 1000 developers by 2015 >3B revenue 36000 developers in 2016 1917 GE moves corporate headquarters to Scrum technology area in Boston Now replaced CEO and de-scaling! 8
Developing a Scalable Operating Model Descale First - Create a Set of Functional Teams SM - Protects The Team SM Servant leader. Coaches the Team & Product Owner in Scrum. Implements the values of the Agile Manifesto. Team Facilitates Scrum ceremonies. P Ensures work & impediments are made visible. Maintains external radiators of team progress. Encourages openness & transparency. Identifies and ensures impediments are resolved. Promotes Kaizen thinking and waste reduction. 9
Descaling Case Study: SimpliVity @
Case Study #10: 9 Teams, 10 3-Week Sprints 11
Faster, Cooler, Cheaper A true Scrum team is equivalent to 5 typical Scrum teams Faster - only takes a few sprints to boot up Cooler Product Owner is removing technical debt Points are allocated to innovation Teams are more motivated to produce better product Cheaper Product is produced at 20% of the cost of competitors products. 12
Case Study: 3M Sales: $31 Billion R&D: $1.7 Billion Market Cap $113.52B Presented at Give Thanks for Scrum. Cambridge, Nov 2016 We have seen some teams reach, we ve been tracking the percent change, 500 percent increase in velocity. Tammy Sparrow 13
WSJ: 3M Earnings Jump as Push Into Technology Pays Off Revenue in the electronics and energy segment rose 13% in the company s third quarter 3M Co. MMM +1.35% shares closed at a record Tuesday as the company said investments in higher-growth technology sectors are bringing results. In the past three years, 3M has worked to rethink its electronics and energy division, accelerating spending into segments like semiconductors, data centers, automotive electrification and energy grids, Chief Executive Inge Thulin said on a call with analysts. Revenue in the electronics and energy segment rose 13% in the company s third quarter as overall revenue increased 6%. The company also highlighted its car business, saying its traffic safety and automotive electrification units complemented each other, leading to higher sales, lower costs and increased foresight on future car trends. The company makes electric car displays, backup-camera monitors, reflective sheeting used on highway signs and speed cameras. Mr. Thulin has also been working to increase the company s high-tech image even though it is best known for office products and cleaning supplies. 3M shares rose 5.1% to close at $234.65, the stock s largest single-day percent gain since 2009 and its highest level on record, based on data that goes back to 1972 14
Case Study: 3M-HIS C os C C os os CoP CR C os Knowledge Teams (on Teams) Executive Meta Scrum EAT People Ops Infrastructure Teams (on Teams) C os CR CoP People Ops Customer Relations and Intelligence Communities of Practice People Operations (Agile HR) 15
SM SM SM SM SM SM Scaling the SM SM SM SM SM SM SM SM SM SM SM 16 1993-2015 Jeff Sutherland & Scrum Inc.
Scrum-of-Scrums Perspective Example: 5 teams Scrum of Scrums Scales the SM Surfaces & Removes Impediments Mirrors Daily Scrum Limits Communication Pathways SOS Achieves Communication Saturation Cross-Team Coordination Delivers potentially shippable increment of product or service 17
Scrum-of-Scrums-of-Scrums Level 2 25 Teams of 5 Scrum of Scrums of Scrums Surfaces & Removes Impediments Mirrors Daily Scrum os Limits Communication Pathways Increases Communication Saturation Cross-Team Coordination Delivers potentially shippable increment of product or service 18
Executive Action Team Perspective Example: 125 Teams EAT - Eats Impediments Cross-Value Stream o Removes Impediments Coordination not handled closer to the Team level Mirrors Daily Scrum Limits Communication Pathways (300 vs. 195,000) o o EAT o o Ex: 625 People Coordinate in 60 min. Owns Organizational Transformation Strategy Executes Transformation Strategy or delegates it to the Agile Practice 19
PO PO PO PO PO PO Scaling the PO PO PO PO PO PO PO PO PO PO PO 20 1993-2015 Jeff Sutherland & Scrum Inc.
The Team PO Builds, Refines, Plans PO - Sets Team Priorities PO Servant Leader SM Team 50% w/ Customer, 50% w/ Team Single Backlog Stories Epics What not How Systems Thinking - Oversees the Whole Sometimes referred to as Line PO Complete Responsibility Through Trust Known-Stable-Interface to the Enterprise 21
Meta Scrum Aligns, Refines, Plans PO PO Meta Scrum PO Sets Priorities for MultipleTeam Mirrors Refinement and Planning Single Backlog Pulled by Line POs Epics Features PO PO Cross-Team Coordination & Alignment Systems Thinking - Oversees the Whole Aligns with Stakeholders! 22
C Meta Scrum Perspective Aligns, Decomposes, Refines Sets Priorities for MultipleTeam Mirrors Refinement and Planning Single Backlog Pulled by Level 3 POs C Meta Scrum Features Value Streams Cross-Team Coordination & Alignment Systems Thinking - Oversees the Whole 23
Executive Meta Scrum Perspective Aligns and Sets Strategic Priorities for the Organization Owns Organizational Vision Lead by the CC Servant Leader CEO SVP Single Backlog Pulled by C C Executive Meta Scrum C Inhales Technical Priorities Exhales Organizational Priorities Mirrors Refinement & Planning C Value Streams Initiatives Sets Organizational Priorities C C 24
Case Study: Scrum Team at SAAB Technologies 25
Scaling SAAB Technologies to Hundreds of Teams Over 2000 People in 1 Hour! 8:30 Executive Action Team 8:15 Scrum of Scrum of Scrum of Scrums 8:00 Scrum of Scrum of Scrums 7:45 Scrum of Scrums 7:30 Daily Scrum C C C os os os 26
Case Study: Toyota USA 2017 CSM and CSPO training for senior management Executive Action Team Agile Practice Executive MetaScrum Rank ordered all Toyota projects Some initial projects did better than 3 times the work in 1/3 the time Toyota Corporate Leadership committed to Scrum pilots in Nagoya Challenges Educating traditional waterfall management Dealing with 70% outsourced to waterfall 27
Mike Tromans, Engineering Manager, Digital Engineering, Toyota Production Engineering, 2017. 28
Case Study: BMW Revenue: 94.16B Euro Market Cap: 53.67B Euro All IT to Scrum immediately (>4000) No waterfall will be allowed Scrum will be pushed into manufacturing Move from 70% outsourced to 70% insourced Many experiments Advantages Senior team is Knowledgeable Connected, electric, autonomous cars are upon us Extreme sense of urgency Culture of innovation Challenges Connecting senior team vision with teams 29
Scrum Training 17-21 July 2017 Tesla Factory Market caps as of June 19 and 2016 worldwide sales 1. Toyota, $155.88 billion market cap, 10.1 million sales 2. Daimler, (Mercedes-Benz), $70.35 billion, 3 million sales 3. Volkswagen, $67.24 billion, 10.3 million sales 4. Tesla, $60.28 billion, 76,230 sales 5. BMW, $54.77 billion, 2.4 million sales 6. GM, $51.45 billion, 9.6 million sales 7. Ford, $44.65 billion, 6.7 million sales 30
Scrum@Scale starts with Agile Leadership 2011 Scrum Inc. 31 1993-2015 Jeff Sutherland & Scrum Inc.
Understanding Dual Operating Systems John P. Kotter. Accelerate: Building Strategic Agility for a Faster Moving World. HBR Press 2014. 32
Money Ball for Scrum Seen at GE, Toyota, 3M, and many other companies Customer Will Use 25% of staff delivering stories customers will use Junk Stories 64%*70% = 45% of staff delivering stories the customer will never or rarely use (Standish Group) Dark Work 30% of staff working on zero value stories Lack of direction causes staff to make up work Unwillingness to prioritize proliferates useless projects 33 1993-2015 Jeff Sutherland & Scrum Inc.
Process Efficiency 25% of staff delivering useful stories Customer Will Use 5% process efficiency Organizational delivery capacity - 1.25% Goal: Improve organizational delivery to 5% Twice the work in half the time 34 1993-2015 Jeff Sutherland & Scrum Inc.
FrAgile - Shu State CEO does not have Agile Mindset Traditional management hierarchy creates project teams Scaling frameworks are often used to provide scaffolding for the legacy organization until it can evolve This is a translation layer that protects the waterfall from Agile and must ultimately be removed to get high performance Usually get 20-30% improvement in production although bureaucracy or changes in management often cripple and/or destroy agile implementation Waterfall Translation Layer FrAgile 35
Agile - Ha State CEO changes management roles Management coaches the teams to self-organize and self-manage. Managers become leaders. Teams self-form against a prioritized backlog to maximize production. Leaders create virtual teams that drive communities of practice across company. Leadership refactors the organization - target is minimum 200-400% increase in production and reduction in time to market Managers become leaders Sustainable Teams self-manage 36
Anti-Fragile - Ri State The Leading Edge of Organizational Development Hierarchy still exists but becomes competency based and enabling Teams self-organize product direction and refactor the organization Leadership supports wherever their skills are needed Swarming makes organization stronger under stress and can generate 500-1000% increase in production Anti-fragile Teams drive strategy Company is customer facing 37
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Scrum is a productivity superweapon - it is shockingly efficient! Rick Horgan, Sr. Editor, Crown Business 1993-2016 Jeff Sutherland & Scrum Inc. @