Those who master large-scale software
delivery will define the economic
landscape of the 21st century.
—Mik Kersten
©©Scaled
Scaled Agile.
Agile, Inc.
Five technological revolutions
Installation Period
Turning Point
1793-1801
1771
Industrial
Revolution
Canal Mania (UK)
Railway Mania (UK)
Age of Steel &
Heavy Engineering
The Victorian Boom
1890-1895
1875
Belle Epoque (Europe)
Progressive Era (USA)
London funded global market
infrastructure build-up
1929-1943
1908
Age of Oil & Mass
Production
The Roaring Twenties
1971
Age of Software &
Digital
Great British Leap
1848-1850
1829
Age of Steam &
Railways
Deployment Period
Dotcom and internet mania;
Global finance and housing bubbles
Post-War Golden Age
2000-?
?
Adapted from Technological Revolutions and Financial Capital, Carlota Perez
© Scaled Agile. Inc.
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Production capital follows financial capital
►
Installation Period – New technology and financial capital combine to create
a ‘Cambrian explosion’ of new market entrants, disrupting entire industries
from the previous age
►
Turning Point – Existing businesses either master the new technology or
decline and become relics of the last age
►
Deployment Period – Production capital of the new technological giants start
to take over
Installation Period
Turning Point
1971
Age of Software &
Digital
© Scaled Agile. Inc.
Dotcom and internet mania;
Global finance and housing bubbles
Deployment Period
2000-?
?
3
What stage are we in?
►
"BMW Group’s CEO expects that in their future more than half of its research and
development staff will be software developers." (Mik Kersten, Project to Product)
►
The market cap of Tesla ($464B market cap, $24B revenue) now exceeds the market
cap of Ford ($33B market cap, $156B revenue) at a 14:1 value ratio (November
2020)
►
Apple is now the biggest watchmaker in the world (Investopedia 2019)
© Scaled Agile. Inc.
Competing in the age of software
The problem is not with our organizations realizing that
they need to transform; the problem is that organizations
are using managerial frameworks and infrastructure
models from past revolutions to manage their
businesses in this one.
©©Scaled
Scaled Agile.
Agile, Inc.
—Mik Kersten
5
Rethinking the organization
The world is now changing at a rate at which
the basic systems, structures, and cultures
built over the past century cannot keep up
with the demands being placed on them.
—John P. Kotter
©©Scaled
Scaled Agile.
Agile, Inc.
6
We started with a network
Customer
Centricity
© Scaled Agile. Inc.
7
We added hierarchy for stability and execution
© Scaled Agile. Inc.
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Guess what happens?
© Scaled Agile. Inc.
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The solution is not to trash what we know and
start over but instead to reintroduce a second
system—one which would be familiar to most
successful entrepreneurs.
—John P. Kotter
©©Scaled
Scaled Agile.
Agile, Inc.
10
We need a dual operating system for Business Agility
Efficiency and stability
Customer
Centricity
Speed of innovation
© Scaled Agile. Inc.
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And we have just such an operating system at our fingertips
Value Stream network
© Scaled Agile. Inc.
Functional hierarchy
12
Responsibilities
Network
Hierarchy
• Product research,
• Revenue & cost
• Finance & accounting
• Sales & marketing
• Legal & governance
• People & careers
• Production of goods
and services
development, delivery,
and evolution
Shared
• Strategy
© Scaled Agile. Inc.
• Customer engagement
• Support
• Learning Culture
Optimize for performance
Network
Hierarchy
Speed of
Innovation:
Efficiency and
stability:
• Self organizing
• Constantly evolving
• Fast and furious
• Innovative/
Experimental
• Fail fast
• Short-term memory
• Exploit variability
• Standing organization
• Stable
• Slow and steady
• Predictable/
Reliable
• Don’t fail
• Long-term memory
• Reduce variability
© Scaled Agile. Inc.
SAFe: Roots, past, present, and future
2011
Field experience at Enterprise scale
Now…
Lean product development | Agile development | DevOps | Systems thinking
© Scaled Agile. Inc.
15
SAFe® 5 for Lean Enterprises is
the world’s leading framework for
business agility. SAFe integrates
the power of Lean, Agile, and
DevOps into a comprehensive
system that helps enterprises thrive
in the digital age by delivering
innovative products and services
faster, more predictably, and with
higher quality.
© Scaled Agile. Inc.
16
Within enterprise and government
(Dutch Tax Administration)
scaledagile.com/customer-stories
© Scaled Agile. Inc.
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The Seven Core Competencies of Business Agility
© Scaled Agile. Inc.
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Why Lean-Agile
Leadership?
An organization’s managers,
executives, and other leaders
are responsible for the
adoption, success, and
ongoing improvement of
Lean-Agile development and
the competencies that lead to
Business Agility. Only they
have the authority to change
and continuously improve the
systems that govern how
work is performed.
© Scaled Agile. Inc.
Lean-Agile Leadership
The Lean-Agile Leadership
competency describes how
Lean-Agile Leaders drive
and sustain organizational
change and operational
excellence by empowering
individuals and teams to
reach their highest
potential.
© Scaled Agile. Inc.
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Why Team and
Technical Agility
Agile Teams and teams of
Agile Teams create and
support the business
Solutions that deliver value
to the Enterprise’s
Customers. Consequently,
an organization’s ability to
thrive in the digital age is
entirely dependent on the
ability of its teams to deliver
Solutions that reliably meet
a Customer’s needs.
© Scaled Agile. Inc.
Team and Technical Agility
The Team and Technical Agility
competency describes the critical
skills and Lean-Agile principles
and practices that highperforming Agile teams and
Teams of Agile teams use to
create high-quality solutions for
their customers.
© Scaled Agile. Inc.
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© Scaled Agile. Inc.
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Value Streams
New Operational Value
Streams icon
Renamed Development
Value Streams
© Scaled Agile. Inc.
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Portfolio Level
Solution boxes at the end
of the Development Value
Streams
Participatory Budgeting
added to Lean Budgets
© Scaled Agile. Inc.
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DevOps &
Continuous
Delivery Pipeline
Improved Continuous
Delivery Pipeline (CDP)
visualization
Release boxes positioned
throughout the PI
CDP ‘infinity loops’
repeated in the iterations
© Scaled Agile. Inc.
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Teams and the
work
Extended guidance for
Business | Technology
Replaced the current
Solution icon with the
Design Thinking
representation
© Scaled Agile. Inc.
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Operational Value Stream types
Attract
customer
Loan need
Extend
loan
terms
Award
loan
Setup
payment
terms
Repay
money
Manage
inventory
Assemble final
product
Manufacture
subassemblies
Validate
product
Close
loan
Sales cycle
Contracts
and licensing
Provisioning
Customer care
Engage
auditors
Conduct
the audit
Address
issues
Revise
financials
Vehicle
Renewals
Software product
Audit
letter
Board
signoff
Supporting operational Value Stream for annual audit
© Scaled Agile. Inc.
Loan repayment
with interest
Package
and ship
Software product operational Value Stream
Prep
financials
Annual audit
requirement
Eligibility
decision and
underwriting
Manufacturing operational Value Stream for a vehicle
Create interest
Order
received
Complete
loan
application
Fulfillment operational Value Stream for a consumer loan
Procure
materials
Order
received
Quick
rate
quote
Audited
financials
Development Value Streams patterns
© Scaled Agile. Inc.
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Teams on the ART are organized for flow
Stream-aligned team – organized around the flow of work and has
the ability to deliver value directly to the Customer or end user.
Complicated subsystem team – organized around specific
subsystems that require deep specialty skills and expertise.
Platform team – organized around the development and support of
platforms that provide services to other teams.
Enabling team – organized to assist other teams with specialized
capabilities and help them become proficient in new technologies.
More information in the Advanced Topic Article, Organizing Agile Teams and ARTs: Team Topologies at Scale
© Scaled Agile. Inc.
Organizing ARTs with ART Topologies in a Solution Train
►
Stream-aligned (best)
►
– Highly specialised system components
– By product, Solution, or service
– Safety critical systems elements
– By Customer or market segment
– Specialty algorithm or business rules
– By Solution feature areas
– By value streamlets
– New product innovation
© Scaled Agile. Inc.
Complicated Subsystem
– Part of a cyber-physical system
►
Platform
– Sets of services consumed by other ARTs
31
Participatory budgeting overview
Baseline
Solution
Investments
Total Portfolio Budget
and Guardrails
Run the Business (RtB)
Solution Investments
Proposed
Solution
Initiatives
Grow the Business (GtB)
Epics Investments
Business Context
Current Value Stream Budgets
New Value Stream Budgets
Participatory Budgeting Forums
© Scaled Agile, Inc.
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Running a participatory budgeting event
Participatory budgeting is a significant event that requires preparation,
coordination, and communication.
1
Prepare the content
2
Assemble the participants
3
Conduct the forums
4
Analyze results
Business Context
Business Owners
Total Portfolio Budget
and Guardrails
Epic Owners
Baseline
Solution
Investments
Proposed
Solution
Initiatives
Run the Business (RtB)
Solution Investments
Grow the Business
(GtB) Epic Investments
© Scaled Agile, Inc.
System/Solution
Architects
Product/Solution
Management
33
Dev(Sec)Ops landing page
© Scaled Agile. Inc.
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Business and Technology landing page
New landing page for domain-specific Agile team guidance
Business
•
•
•
•
Agile HR (existing whitepaper)
Agile Marketing (existing whitepaper)
Agile Contracts (existing whitepaper)
more to follow…
© Scaled Agile. Inc.
Technology
•
•
Hardware (new article)
Software (summarize existing SAFe guidance)
35