The document discusses how agile principles can be applied beyond software development to other domains like business operations. It provides examples of how agile has been used to transform organizations and improve processes. The talk will review agile foundations, examples of other applications of agile, and the latest adaptations of the agile framework.

1. Agile-To Infinity and Beyond and
So Much More Than Just Agile
Software
Agile is a tool that is most often associated with the
software process but like Buzz Lightyear in the movie Toy
Story it can be applied to so much more. This talk will
review some of the foundations of the agile process and
look at the transformational adaptations of the agile
framework. The talk will give examples of other applications
and will explore some of the latest applications.

2. Agile-To Infinity and
Beyond and So
Much More Than
Just Agile Software
David Smith
CEO HBMGInc.
dsmith@HBMGINC.com
linkedin.com/in/davidsmithaustin

3. Outline
1. Review Agile
2. What we have learned
3. Transformation
4. So What

4. Delivering business value is hard…
“Of the work executed: “Many
(possibly most) organizations lose
as much as 45% of their total
revenues due to costs associated
with low quality”
– Six Sigma
“Some 75 percent of most large-scale
J2EE projects fail by missing both
time and budget projections …”
– Mark Driver, Gartner
“64% of features actually delivered are
either rarely or never used”
– Jim Johnson, Standish Group
4

5. Why?
Technological innovation is now the most important
driver for competitive success
– Many firms earn over one-third of sales on products developed
within last five years
Product life cycles ( time between product introduction
to market and its withdrawal)
– Software 4-12 months
– Computer hardware 12-24 months
– Large home appliances 18-36 months
Copyright, 2011 © HBMG, Inc.

6. Business, Knowledge, and Innovation Landscape
• Typically 80% of the key knowledge (and value) is held
by 20% of the people – we need to get it to the right
people
• Only 20% of the knowledge in an organization is
typically used (the rest being undiscovered or under-
utilized)
• 80-90% of the products and services today will be
obsolete in 10 years – companies need to innovate &
invent faster
Copyright 2012@ HBMG Inc.

7. Definitions
The term agile can be defined as
1) marked by ready ability to move with quick easy grace, or
2) having a quick resourceful and adaptable character
(Merriam-Webster 2002
3) Latin word agilis, which means “easily moved, light,
nimble, active”.

8. Brief History of Development
Methodologies
AGILE e.g. XP
(Kent Beck)
Methodologies
RUP (Rational) user
Incremental,
driven, low process
RAD Object oriented,
(James Martin)iterative, time-boxed,
user driven
Prototyping, RUP
iterative, time-boxed,
SPIRAL MODEL user driven RAD
WATERFALL (Royce) (Barry Boehm)
V-MODEL (Anon)
Requirements, design Iterative Spiral Model
implementation, Aligns testing to
verification & Waterfall
maintenance development V-Model
Waterfall
1960 1970 1980 85 91 98 99
8

9. The Agile Manifesto (2001)
• Not an “ideal” way - this comes from real experience
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
http://agilemanifesto.org

10. The Agile Manifesto–a statement of values
Agile Practice favors:
Individuals and
over Process and tools
interactions
Comprehensive
Working Product over
documentation
Customer
over Contract negotiation
collaboration
Responding to
over Following a plan
change

11. What is Agile Software Development?
• Easily moved, light, nimble, active software
processes
• Fitting the process to the project
• Avoidance of things that waste time

12. Agile Methods
Several methods that are often cited to be agile, e.g.,
– Extreme Programming
– Crystal Family
– Open Source
– Adaptive Software Development (ASD)
– SCRUM
– Feature Driven Development (FDD)
– Dynamic System Development Method (DSDM)
In addition, e.g., Rational Unified Process (RUP) and
Capability Maturity Model (CMM) can be evaluated from
Agile Manifesto point of view
Further, organisations often develop their own methods, or
modify existing methods to better suit their objectives
– These are called local method development or in-house methods

13. Characteristics of an Agile Process
• Empirical (relies on observation and experience)
• Lightweight
• Adaptive
• Fast – but never hurried
• Exposes wastefulness
• Customer-centric
• Pushes decision making to lower levels
• Fosters trust, honesty and courage
• Encourages self-organization

14. The Big Paradigm Shift
We’re used to Agile Wants
Time Lines We’re done when it’s done.
Project Managers Disciplined self managing teams.
Fixed Budgets Assumed change means no fixed
cost.
Predictable, all at once deliverables Incremental deliverables driven by
value and constant learning.
Multiple matrixed units in multiple Co-location – one team.
locations make up team
Communication by Document Information Radiators.
Customer is removed Customer is part of team.
Certain Knowledge Action

15. Agile Project Management
Can wrap around most existing practices
– But most effective when the practices are also Agile
Supports Iterative and incremental development
Uses Inspect/Adapt principles
– For project planning (daily/iteration/release)
– To ensure highest customer value
Tracks time remaining only
– Does not track
• People. Accuracy of estimates. Task dependencies
Example methodologies: Scrum, Crystal

16. The Scrum Framework

17. Agile Engineering
Essential Practices
– Regular refactoring (many times daily)
• This produces well-componentized designs, clear APIs and clean
code without duplications
– Frequent check ins (many times daily)
– Unit Testing
• Leading to Test Driven Development (TDD)
– Continuous Build and Integration
• Running automated tests on each build
– Just-in-time code reviews (e.g. pair programming)
Example methodologies: XP, Agile Modeling

18. Agile - XP
The Values
Communication
Simplicity
Feedback
Courage
Respect

19. Agile Testing
Early involvement
– An Agile project begins when testers convert high-level
requirements into testable specifications.
Work as part of the development team
– The testers work with the developers to pick unit test and
acceptance test frameworks, and to test the software in parallel
with development. This requires a shift in thinking.
Automate everything
– (wherever possible)
Test early, test often
– Never leave the testing until the end

20. Customer
Customer requirements
Project
Iteration
Requirements
Management plan
Management Estimated CR
Project
planning
Estimations
Communication
Design
Testing
scenarios Test-before-
code
Code Coding
standard
Test
software product

21. The Agile Customer
“Customer’ is a role, not a person
– Also known as Product Manager, Product Owner
– Proxy for the entire customer group
Responsible for the Release Plan
Responsible for managing the Product Backlog
Determines business value & priority on a regular
basis
Provides information to development team for
estimation purposes
Works with testers to produce clear, testable user
stories for each iteration
Inspects software regularly (e.g. runs acceptance
tests) and provides feedback to the development
team

22. 40 years of process* development
* Process, Method, Methodology,
Late ’60s whatever...
Ericsson Approach
‘87 –’96 CMM
Objectory Process
SW-CMM XP, SCRUM &
‘96 –’00 The Unified “Lightweight
Process Methods”
XX-CMM
Agile Manifesto
‘01 –’06 IBM RUP CMMI
Everyone's Agile
EssUP
‘07 –> ?
The Rise of Practices ?

23. Adoption Detractors
• Inconsistent and diverse definitions
• Lack of theoretical grounding
• Different way of thinking
– Role changes
– Situational customization
• Solid people skills required
• Short iterations inhibit long-term
perspective
• Risks
– Harder to manage feature creep and customer
expectations
– Difficult to quantify cost, time, quality.

24. Outline
1. Review Agile
2. What we have learned
3. Transformation
4. So What

25. What have we learn? They’re hard to
learn…
You can get knowledge from books . . .
….or from a web-site.

26. Agile vs. Plan Driven Processes
1. Small products and 1. Large products and
teams; scalability teams; hard to scale
limited down
2. Untested on safety- 2. Handles highly critical
critical products products; hard to scale
3. Good for dynamic, but down
expensive for stable 3. Good for stable, but
environments. expensive for dynamic
4. Require experienced environments
Agile personnel 4. Require experienced
throughout personnel only at start
5. Personnel thrive on if stable environment
freedom and chaos 5. Personnel thrive on
structure and order

27. Eras of evolution

28. There are 100’s of so-called practices…
Business Test-Driven Scrum Product-Line Risk-Driven Systems
Modeling Development Engineering Iterative Engineering
Development
Aspect Robustness Retro- Business Process Use-Case Pair
Orientation Analysis spectives Re-Engineering Driven Programming
Development
PSP User Stories SOA Prince2 Use-Case Program
Modeling Management
…but are really all the same kind of thing?

29. Practices are ’end-to-end’ aspects of
process
Practices cross-cut the traditional EssUP Practices
software engineering disciplines
Architecture Iteration Use Case
$
Component Product
Process Team Modeling

30. Self Adaptive Process
Changes over time
Alters itself to the task at hand
• Starts off with a
problem that can be
improved as a project
continues
• Should adapt to the
team that uses it as
well as the problem

31. 1. Review Agile
2. What we have learned
3. Transformation
4. So What

32. • During the 1990s, management commentators
such as Peter Senge were pursuing learning
organizations, systems thinking and dynamic
business as the new orthodoxy in
organizational studies (Senge, 1990)
• General Motors, for example tried to become a
‘boundary less organization’, characterized by
fluid boundaries between hierarchies and units,
between inside and outside, and across
different geographic locations.

33. Traditional Approach to Business Operations
• Vertical structure that focuses only on own
area
• Areas that carry out similar tasks tend to have
their own distinct set of procedures
• Often different areas have their own
terminology for what is in effect the same thing
• Vital information is often stored locally and not
available centrally
• Communications between different areas can
be patchy

34. Problems with Traditional Approach
• Over time processes tend to become overly
complex
• Flexibility and mobility is difficult
• Often there is duplication of work and
information
• Can lead to poor customer service and
customer relationships
• Plethora of IT Systems doing similar work
– Growing maintenance bill
– Not best use of resources

35. Approach to Change
Models to introduce change into
the organisation
– Incremental approach
– Step change
– Thin threads
Scope of change island or
wholesale
Prerequisites for change
Blockers & enablers - timing
– Key influencers
– Other changes
– Disasters

36. What to change – Best Practices
Most Useful
Collaborative working
Iterative projects
Visual Modelling
Risk based prioritisation
Requirements Management
Change Management
Configuration Management
Tools
Traceability
Least Useful
36

37. Agile organizations
• Agile organizations are ‘hyper strategic’,
tackling challenges wrought by turbulent
external environments, while also preparing for
future changes that are not yet apparent
• They move through an agility cycle, seeking out
and interpreting information to inform short,
medium and long term decision making and
action.

38. In practice, agility features the
following four characteristics:
• Short term frontline responsiveness
• Strategic adaptation
• Outcomes focus
• Preventing or reducing problems before they
arise.

39. AGILITY CYCLE
future
emerging
environments
trends and
shape issue
scan
and
forecast
AGILITY
CYCLE
Sense
and opportunities to
respond design translate information
Innovation into actionable
opportunities solutions and products
and risks

40. 1. Review Agile
2. What we have learned
3. Transformation
4. So What

41. How the World Has Changed
• Most businesses are global at launch
• Businesses are increasingly real time
• Convergence has become a way of life
• Science, product development, and product
cycles are compressing
• The source of value has shifted for
manufacturing
• Competencies, future capabilities, and “ultra
tech” are the prime driver
• The traditional value chain is forever dead

42. Imagine…each time we ordered a meal at our
favorite restaurant, the owners went out
shopping for the ingredients to cook.

43. But don’t go too far
I’ve got all this
guidance but it
doesn’t help
me

44. Structure – Skunk Works
Lockhead Martin needed to
develop secret projects,
outside formal control
Formed in June 1943 –
Burbank CA
14 rules to ensure efficiency
– similar to XP principles
Now seen as technique for
introducing change – but
…
44

45. KELLY'S 14 RULES
Kelly’s rules got their start on the XP-80 project in 1943, but it wasn’t until the early 1950’s that they
were formalized and set in place as the Skunk Works’ rules of operation.
1. The Skunk Works manager must be delegated practically complete
control of his program in all aspects. He should report to a division
president or higher.
2. Strong but small project offices must be provided both by the
military and industry.
3. The number of people having any connection with the project
must be restricted in an almost vicious manner. Use a small number
of good people (10% to 25% compared to the so-called normal
systems).
4. A very simple drawing and drawing release system with great
flexibility for making changes must be provided.
5. There must be a minimum number of reports required, but
important work must be recorded thoroughly.

46. KELLY'S 14 RULES
• 6 There must be a monthly cost review covering not only what has been spent and
committed but also projected costs to the conclusion of the program. Don't have
the books ninety days late and don't surprise the customer with sudden overruns.
7. The contractor must be delegated and must assume more than normal
responsibility to get good vendor bids for subcontract on the project. Commercial
bid procedures are very often better than military ones.
8. The inspection system as currently used by the Skunk Works, which has been
approved by both the Air Force and Navy, meets the intent of existing military
requirements and should be used on new projects. Push more basic inspection
responsibility back to subcontractors and vendors. Don't duplicate so much
inspection.
9. The contractor must be delegated the authority to test his final product in flight.
He can and must test it in the initial stages. If he doesn't, he rapidly loses his
competency to design other vehicles.

47. KELLY'S 14 RULES
10. The specifications applying to the hardware must be agreed to well in advance
of contracting. The Skunk Works practice of having a specification section stating
clearly which important military specification items will not knowingly be complied
with and reasons therefore is highly recommended.
11. Funding a program must be timely so that the contractor doesn't have to keep
running to the bank to support government projects.
12. There must be mutual trust between the military project organization and the
contractor with very close cooperation and liaison on a day-to-day basis. This cuts
down misunderstanding and correspondence to an absolute minimum.
13. Access by outsiders to the project and its personnel must be strictly controlled
by appropriate security measures.
14. Because only a few people will be used in engineering and most other areas,
ways must be provided to reward good performance by pay not based on the
number of personnel supervised.

48. The Open Economy
• New business models
based on collaboration,
co-creation & sharing
• Transparency as a normal
practice
• Conversations (two way
communication)
• Open interfaces to
partners, vendors,
suppliers, customers
• Common technology and
business standards
• Service and Experience
Mentality

49. www.ccplace.con

50. Forces that drive the practices
used…
• Stakeholder relationships
• Stakeholder access
• Number of requirements
• Number of usage scenarios
• Novelty of the system
• Legal requirements
• Business domain
• Severity of errors (safety criticalness)
• Team distribution and communication
Select practices based on the nature of the
problem not the nature of the process.

52. Evolving—Self Forming
A.I. Deep Search Intelligent Intelligent Virtual
Agents Marketplaces Group Worlds
Weak Inference Intelligence
Signals Engines Knowledge Reed’s - Enterprise
Speed of Connectivity — Informational
Networks
XML Semantic Web Self Formation Minds
Knowledge Massive Metaweb
Multiplayer Digital World
Ontologies Knowledge Games Group
Life Logs Minds
Knowledge Management
Bases
Life Market Emergent
Taxonomics Casting Places Groups
Search Engines Enterprise Mobile Wikis WeBlogs
Portals Technologies
Content Portals Auctions
Websites Social
SOCIAL MEDIA Networks
WEB Groupware People
Databases Information
Email Community
Conference PIMs Computer Portals
Calls Conferencing
P2P File
File Servers Phone Calls Sharing IM
Speed of Connectivity — Social
Source: David Smith
Copyright, 2010 © HBMG, Inc

53. The Big Paradigm Shift – some reality
We’re used to Agile Wants What Works
Time Lines We’re done when it’s done. Time Boxes
Project Managers Disciplined self managing Collaboration between Coach
teams. and P.O.
Fixed Budgets Assumed change means no Cost Boxes – not more than
fixed cost. x to spend.
Predictable, all at once Incremental deliverables Pre-project user story
deliverables driven by value and constant sessions
learning.
Team spread out Co-location. Core time in room or on
phone
Communication by Information Radiators & Information Radiators
Document Conversations captured electronically and
posted. Daily Meetings
Customer is removed Customer is in room as part Core time in room and end
of team. user interaction

55. Agile is a Process and Method to deliver
Strategic Business Outcomes (Not Just
Software!):
▬ Bringing New Business Models to life faster
with “Product & Process Innovation”.
▬ Integrating the new Business Model with the
existing one seamlessly without causing
dysfunction to the current operations.
▬ Generating Productivity Innovating on the
existing Processes (Out of the Box).
▬ Integrating the Process Innovation with the
Operational Continuous Improvement practices
(Reengineering).
In essence, Agile is about the business being able
to achieve growth and productivity; without
compromising one for the other

56. Competing in a Global Business Environment
Taylor’s Law Sarnoff’s Law Metcalfe’s Law Reed’s Law
(1910 – 1950s) (1960 - 1980) (1980 - 2000) (2000 - Future)
Scientific Management “Human Side” Management Quality Management Era E-Manufacturing
Value Chain Value Shop
Firm Infrastructure Firm Infrastructure
Human Resources Management Human Resources Management Infrastructure
Technology Development Support
Technology Development
Procurement
Procurement
Problem Finding Problem
& Acquisition Solving
After-
Inbound Operations Outbound Marketing sales
Logistics Logistics & Sales Service Simon’s Problem Solving Model Choice
Control/
Execution
Evaluation
Value Created in the Assembly Value Created by Transforming Value Created by Providing Value Created By
Line (Operations) Inputs Into Products Solutions, Not Services Self Forming Groups
•Standardization Parts •Stable Relationships •Lean Manufacturing •Consumer Centric
and Processes Design and Delivery
•Price Conscious •Shift to Horizontal Structure
•Economies of Scale •Flat Corporate
•Producer Led Design •Focus on Core
Structures
•Producer-Centric Competency
•Global Companies
Design, Mfg., and •Collaborative Virtual
•Reliability and Durability
Delivery •Regionalism Networks
•Producer Led Design
•Vertical Orientation •Productivity •Mass Customization
•Multinational Trade
•Required inventory •Subsidiaries •Transparency
buffers •Market Centric
•Plant Replication by •Speed and Agility
Design & Delivery
•Locally Oriented Region
•Global Orientation
HBMG Inc. Copyright 2009

57. Key Points
• The future of business is
relationships
• A collective mentality to
problems
• People are human and
digital
• The relationship comes
first
• Today requires FAST,
AGILE, and
COLLABORATIVE

58. “Planning” is everything.
A Plan is NOTHING!
DWIGHT EISENHOWER

59. In Parting: Be Paranoid
“Sooner or later, something
fundamental in your business
world will change.”
 Andrew S. Grove, Founder, Intel
“Only the Paranoid Survive”
Copyright @2008 HBMG Inc.

60. In Parting: Be Paranoid
“Sooner or later, something
fundamental in your business
world will change.”
 Andrew S. Grove, Founder, Intel
“Only the Paranoid Survive”
Copyright @2008 HBMG Inc.

61. Lean Canvas