Service Strategy And Design

1. Key Principles • Outcome Focused Services • Transparency & Collaboration • Self Organizing Empowered Teams • Stakeholder Engagement • Accountability • Flow with Small Batches • Continuous Inspect and Adapt Using Lean, Agile and ITSM to Deliver Spectacular ResultsJohn E Parker, CEO Enfocus Solutions Scrum Kanban SAFe ITIL DevOps ITIL Agile Development Agile Portfolio and Program Management Service Strategy And Design Release & Deployment Management Lean Lean Value Streams Lean Change Method Enfocus Solutions Lean Business Change Management

2. John E. Parker • Chief Executive Officer of Enfocus Solutions Inc. • Previous Positions • Chief Visionary Officer of Enfocus Solutions Inc • EVP and CTO, MAXIMUS Inc. • Outsourced CIO for HSHS (Large Healthcare System) • EVP and Cofounder, Spectrum Consulting Group • KPMG Partner • Expertise • Agile Development: Scrum and Kanban • Lean Software Development • IT Strategic Planning and Management • Business Change Management • IT Strategic Planning • Business Analysis • ROI and Financial Analysis Contact: • http://enfocussolutions.com • info@enfocussolutions.com

3. 10,000 Foot View Agile Lean ITSM PPM Release Management Business Change Shorter Time Higher Quality Lower Cost Business Value Increased Satisfaction User Adoption

4. Agile: Where are the BAs and PMs?One View of the Future • Scrum and Kanban will continue to be the predominant agile methods. Scrum has three roles: Product Owner, Team, and Scrum Master. • In Scrum, Requirements are defined using User Stories by the Product Owners and Teams. Requirements analysts are no longer needed as the teams and product owners now define the requirements. • Testers will become part of Scrum Teams developing Automated Tests in conjunction with program code. • ITIL® Service Strategy and Design will finally become a reality as organizations define End-to-End Business Services. • Project Management Offices transform into Enterprise Portfolio Management Offices moving from bureaucracies to keys for delivering valueby shifting theirfocus from managing tasks/costs to managing services and outcomes. • IT will continue to struggle to keep up with the fast changing business demand and moves from project-driven delivery to continuous delivery of service enhancements using efficient demand management methods. • Project Managers manage Release Trains which consists of a team of agile teams and becomes the primary program level value mechanism.

5. Agile: Where are the BAs and PMs?One View of the Future • More emphasis will be placed on discovery, validation, and learning using methods such as Lean Startup. • Business Analysts will discover and validate business, customer, user and service needs for Features and negotiate business changes with stakeholders. • New methods for organizational change, such as the Lean Change Methodare used to help the organization adjust to the amount of change. • Architects work with business SMEs to define business capabilities and maintain the Business Architecture that is used for portfolio decisions and managing change. • DevOps teams work to automate release and deployments. • Business customers and users have full transparency and collaborate with other teams in co-creation, management and validated learning to delivering better outcomes.

6. Software Value Stream Requests Support Software Customers Users Business Needs Services Internal Customers External Customers Infrastructure Compliance Operations Marketing Product Managers BusinessLeaders Security Finance Service Desk DBA HR Releases Support Infrastructure & Operations Development Team Team Team Team It takes more than just implementing agile development practices to make an agile enterprise.

7. How Waste and Blockages Occurs Requests Needs Not Validated Slow Adoption Support Software Not Prioritizing Features Customers Users Not Using MMFs Business Needs Not Involved Services Slow Approvals Don’t Understand Big Picture Internal Customers External Customers Infrastructure Compliance Operations Marketing Product Managers BusinessLeaders Security Finance Service Desk DBA HR Rigid Release & Deployment Not Doing IncrementalDevelopment Releases Not Involved Upfront Support Infrastructure & Operations Testing Involved after Development Development Team Team Team Team

8. Scaled Agile Framework™ Big Picture

9. Scaled Agile Framework® What is your Goal? • The Scaled Agile Framework has been proven at many large organizations and works really well for managing solution development for lean, agile organizations. • However, it is not enough for moving to Enterprise Agility as it lacks the following: • Service Portfolio Management and Service Design • Feature Discovery • Organizational Change Management (People) • Business Change Management (Processes, Data) • Release and Deployment (DevOps) is limited Agile Development Scaled Agile EnterpriseAgility

10. Enfocus Solutions Lean Agile Service Framework Business Discovery & Change Solution Delivery Demand Management Benefits Realization Innovation & Need Portfolio Backlog Business Architecture Service Portfolio Vision Portfolio Business Project Objectives Project Business Case Service Service Architecture Project Business Outcomes Impacts Transformation Project SDP SDP Discovery Delivery FeatureBacklog Business Customer User Service Requirements Program PeopleChange ProcessChange ServiceChange DataChange RuleChange Roadmap Feature Feature Satisfaction Conditions Feature Release Plan BusinessModel ChangeCanvas Needs Scenarios Feature Tests Feature Negotiated Change Feature Lean Business Value Release Train Technical Teams Business Teams Bundle Bundle Bundle Bundle Bundle TeamBacklog Sprint Sprint Team Sprint Sprint Kanban Kanban Story Story Story Sprint Sprint Story Story Story HIP HIP HIP HIP HIP Story Story Story Validated Learning Valuable Software

11. Key Principles • Outcome Focused Services • Transparency & Collaboration • Self Organizing Empowered Teams • Stakeholder Engagement • Accountability • Flow with Small Batches • Continuous Inspect and Adapt Using Lean, Agile and ITSM to Deliver Spectacular Results Scrum Kanban SAFe ITIL DevOps ITIL Agile Development Agile Portfolio and Program Management Service Strategy And Design Release & Deployment Management Lean Lean Value Streams Lean Change Method Enfocus Solutions Lean Business Change Management

12. What is Agile Really About? • Empowered individuals • Collaboration • Democratic decision-making • Transparency • Manage Changing Priorities • Shorter Feedback Cycles • Velocity • Rapid Learning • Cadence and Flow • Faster Time to Market • Higher Customer Satisfaction • Better Quality • Increased Business Value

13. Scrum, Kanban, or Both Scrum is a simple yet incredibly powerful set of principles and practices that help teams deliver products in short cycles, enabling fast feedback, continual improvement, and rapid adaptation to change. As the leading Agile development framework, Scrum has predominantly been used for software development, but it is also proving to be effective in efforts far beyond. Scrum For application Development Kanban is a continuous flow process: items enter the queue and then get “pulled” through a series of steps in the development process. Kanban is often visualized on a Kanban board and each step is represented by a column. Kanban For Infrastructure, Portfolio Management, and Business Change

15. Consider Kanban if… • Priorities shift on a daily basis. • You have a need for more flexibility. • If you implement Agile portfolio and program management practices. • You need to manage business change activities. • You are using Scrum, but having a difficult time applying to your work context (e.g. Maintenance and Operations). • Struggling with implementing Agile in your organization. • Need a gradual transition from waterfall type execution to Agile in order to avoid high levels of organizational resistance. • Using Scrum or other agile methods, but performance improvements have not materialized or started to level off.

16. Kanban is For Areas Other than Software Kanban for Marketing Kanban for Portfolio Management Kanban for Sales Kanban for Production Support

17. Key Principles • Outcome Focused • Transparency & Collaboration • Self Organizing Empowered Teams • Stakeholder Engagement • Accountability • Lean Flow with Small Batches • Continuous Inspect and Adapt Using Lean, Agile and ITSM to Deliver Spectacular Results Scrum Kanban SAFe ITIL DevOps ITIL Agile Development Agile Portfolio and Program Management Service Strategy And Design Release & Deployment Management Lean Lean Value Streams Lean Change Method Enfocus Solutions Lean Business Change Management

18. What is PPM Really About? • Business Case (Projects) • Vision • Business Objectives • Prioritization • Transparency • Roadmaps (Features) • Release Trains (Bundles) • Efficient Value Streams • Eliminating Waste • Collaboration • Higher ROI • Faster Time to Value • Innovation • Benefits Realization

19. State of PMOs: It is Time for a Change • Most companies with high utilization of PMOs see materially higher IT costs while also failing to deliver projects with higher ROI or better on-time and on-budget performance. (Hackett Group Report, November 2013) • Since 2008, the correlated PMO implementation failure rate is over 50% (Gartner Project Manager 2014) • 50% of project management offices close within 3 years (Association for Project Management,2012) • Only a third of all projects were successfully completed on time and on budget over the past year (Standish Group’s CHAOS report) • 68% of stakeholders perceive their PMOs to be bureaucratic (2013 Gartner PPM Summit) • Only 40% of projects met schedule, budget and quality goals (IBM Change Management Survey of 1,500 execs, 2010)

20. Transform the PMO from Bureaucracy to Key Enabler of Agile and Business Value

21. The Five Levels of Agile Planning Vision and Objectives Defines Who, What, When, and Why, Constraints, Assumptions, Objectives, and Outcomes Portfolio Provides a view of planned features by service organized by releases over a timeline horizon (6-12 months) Roadmap Program Release Plan Facilitated by RTE, Teams participate in developing a plan of what will be delivered in the next release. SprintPlan Stories, tasks, definition of done, level of effort, and commitment for work to be done in a Sprint. Team Presented at daily standup meetings in the form of 1) what I did yesterday,2) what will be done today, and 3) what are my impediments. DailyPlan

22. Agile Service PPM Services Packages all the technologies, processes, and resources across IT needed to deliver business outcomes. Service Service Portfolio Features Features describe the functionality, warranty, and customer experience to deliver an outstanding service. Feature Feature Feature Feature Program Feature Feature Feature Feature Feature Stories Stories (user, technical, infrastructure) are the Agile replacement for traditional requirement specifications. Story Story Story Story Story Story Story Story Story Story Team Task Task Task Task Task Tasks Stories are broken into tasks and assigned to individual team members. Task Task Task Task Task

23. Enterprise PMO Enterprise Portfolio Management Office Portfolio Management (Build IT Services) Service Management (Run IT Services) Business ChangeManagement (Manage Change) • Portfolio Management • Program Management • Project Management • Roadmapping • Release Planning • Service Desk • Service Level Management • Availability Management • Security Management • Service Continuity Management • Incident Management • Problem Management • Configuration Management • Change Management • Business Outcomes/KPIs • Business Process Management • Organizational Change • Business Rules • Business Information Management

24. Key Principles • Outcome Focused • Transparency & Collaboration • Self Organizing Empowered Teams • Stakeholder Engagement • Accountability • Lean Flow with Small Batches • Continuous Inspect and Adapt Using Lean, Agile and ITSM to Deliver Spectacular Results Scrum Kanban SAFe ITIL DevOps ITIL Agile Development Agile Portfolio and Program Management Service Strategy And Design Release & Deployment Management Lean Lean Value Streams Lean Change Method Lean Business Change Management Enfocus Solutions

25. What is ITSM Really About? • Business Discovery • Customer Discovery • Service Discovery • User Discovery • Utility • Warranty • Customer Experience • Outcomes • Lower Costs • Better Customer Experience • Successful Customer Outcomes • Innovation & Competitive Advantage

26. Evolution of Service Management Business Shared Services Combines IT and non-IT resources required to deliver a specific business outcome The move to deliver IT within business services has different origins and usually emerge outside IT. Limitation: Needs Strong CEO Support Business Shared Services Infrastructure services and end-to-end IT services can coexist. End-to-End IT Services Packages all the technologies, processes, and resources across IT needed to deliver a specific business outcome while hiding technical complexity Infrastructure & Applications Infrastructure ServicesHosting, network, and storage become orderable services in a service catalog Limitation: Infrastructure alone is unable to drive business outcomes or solve business needs IT Process Optimization (ITIL) Standard operational processes (e.g., problem or incident management) to ensure predictable delivery Limitation: No impact on transparency or responsiveness to business partners Infrastructure Only 2001 2006 2011 2016 Source: CEB CIO Executive Board

27. Service Portfolio Management Services being developed including new feature or components for existing services. Services that are used by the business. Services that have been retired.

28. Service Portfolio Service PortfolioServices Supporting Business Capabilities Procure to Pay Service Order to Cash Service Hire to Retire Service Product Portfolio Application Software Accounts Payable Purchasing Accounts Receivable Customer Relationship Management Payroll Human Resources Purchase Data Warehouse Vendor Data Management Order Management Sales Data Warehouse Employee Master Data Sales Data Warehouse Infrastructure and Operations Desktops & Mobile Operations Servers & Storage ServiceDesk Network Database Management Security

29. Defining End-to-End Services End-to-End IT services cross IT silos and are aligned closely to business activities, outcomes or capabilities. End-to-End services package together the people, processes, technology and data that support key business capabilities and user activities. Types of IT Services End-to-End Service Example Web and SOA Services IT Service: Claims Processing Supports all major activities relating to claims processing including receiving, investigating, processing, and reporting Web services and SOA components that can be published and discovered and invoked by applications. Infrastructure Services Claims Processing System Document Management System Integration with Accounts Payable, and eDiscovery Servers, storage, network and other technologies offered by the infrastructure team. End-to-End IT Services Application Services Services to implement, maintain and support software applications. Infrastructure Services for Storage, Servers, Network. Support Services Service Desk application support for claims processing. Services to support customer and users in acquiring, using, and changing the service.

30. Service Design: Two Perspectives Utility Fitness for Purpose Warranty Fitness for Use Experience Desirability and Perception

31. Customers Think End-to-End Experience Which Customer Would You Like to Be?

32. Feature Discovery User Discovery Service Discovery Business Discovery Customer Discovery • User Needs • User Personas • User Expectations • User Activities • Scenarios • Learning • Prototypes • Storyboards • Usability • Business Model • Business Case • Business Objectives • Expected Performance • Capability Gaps • Business Changes • Pricing Models • Balanced Scorecard • Customer Needs • Touchpoints • Customer Personas • Market Needs • Business Process Design • Demand • Service Definition • Service Components • Service Delivery Strategy • Capabilities • Resources • Service Improvement

33. Key Principles • Outcome Focused • Transparency & Collaboration • Self Organizing Empowered Teams • Stakeholder Engagement • Accountability • Lean Flow with Small Batches • Continuous Inspect and Adapt Using Lean, Agile and ITSM to Deliver Spectacular Results Scrum Kanban SAFe ITIL DevOps ITIL Agile Development Agile Portfolio and Program Management Service Strategy And Design Release & Deployment Management Lean Lean Value Streams Lean Change Method Enfocus Solutions Lean Business Change Management

34. What is Release Management Really About? • Automated Testing • Automated Deployment • Monitoring • Cloud – Elastic Load Balancing • Version Control • Configuration Management • Release Trains • Transparency of Business Priorities • Transition Requirements • Verification & Validation • Transparency • Collaboration • Cross-functional teams • Agile Values (e.g. Commitment)

35. Release Planning Release Train Team Team Team Vision Bundle Bundle Bundle Roadmap • PSI Objectives • Requirements • Lifecycle Events • Verifications • PSI Objectives • Requirements • Lifecycle Events • Verifications • PSI Objectives • Requirements • Lifecycle Events • Verifications Release Plan Transition Requirements

36. DevOps DevOps is a cultural and professional movement that stresses communication, collaboration and integration between software developers and IT operations professionals. Vanson Bourne Survey of 1,300 Senior IT Executives

37. Key Principles • Outcome Focused • Transparency & Collaboration • Self Organizing Empowered Teams • Stakeholder Engagement • Accountability • Lean Flow with Small Batches • Continuous Inspect and Adapt Using Lean, Agile and ITSM to Deliver Spectacular Results Scrum Kanban SAFe ITIL DevOps ITIL Agile Development Agile Portfolio and Program Management Service Strategy And Design Release & Deployment Management Lean Lean Value Streams Lean Change Method Enfocus Solutions Lean Business Change Management

38. What is Lean Really About? • Empowered IndividualsShared Knowledge • Collaborative Problem solving • Collaboration & Transparency • Continuous Improvement • Less Waste • Small Batch Sizes • Just-in-Time • Concurrent Processing • Faster Time to Market • Enhanced Customer Experience • Increased Value • Higher Quality

39. Lean Software Development Principles 7 Lean Principles as defined by Mary and Tom Poppendieck

40. 7 Wastes of Software Development As Defined by Mary and Tom Poppendieck

41. Remove Delays and Waste Obtaining Approvals Is Usually the Biggest Source of Delays Process Cycle Efficiency • Which Provides a Better Return? • Getting Better at What you Do or • Eliminating Delays Between What you Do

42. Signoffs and Approvals • For Agile, it is imperative to move away from a traditional “Review and Approve” process to an “Inspect and Adapt” process. To do this requires: • Transparency • Stakeholder Engagement • Efficient Inspect and Adapt Methods

43. Manage Knowledge not Paper • When agile scales, the amount of interaction between teams and other stakeholders grows exponentially creating significant challenges for organizations. • Paper documentation is anti-agile; distribution and version control of paper documents is burdensome and causes delays. • Use Enfocus Solutions to manage knowledge and eliminate costly waste from using paper documents.

44. Key Principles • Outcome Focused • Transparency & Collaboration • Self Organizing Empowered Teams • Stakeholder Engagement • Accountability • Lean Flow with Small Batches • Continuous Inspect and Adapt Using Lean, Agile and ITSM to Deliver Spectacular Results Scrum Kanban SAFe ITIL DevOps ITIL Agile Development Agile Portfolio and Program Management Service Strategy And Design Release & Deployment Management Lean Lean Value Streams Lean Change Method Enfocus Solutions Lean Business Change Management

45. What is Agile Business Change Really About? • Stakeholder Engagement • Collaboration & Transparency • Shared Knowledge • Learning • Organizational Change • Business Processes • Knowledge and Data • Supporting IT Services • Governance and Rules • Innovation • Faster Time to Benefit • Customer Satisfaction • Rapid User Adoption

46. Change is Difficult Results of Failure to Change • Reduced Functionality • Workarounds • Reduced Productivity • Customer Defection • Losses to Competition • Regulatory Sanctions • Business Contraction • Business Cessation • 70% of Change Initiatives Fail • Lack of a structured change process • Unpredictable nature of people Old change models Don’t Work It’s time to change the way we change our organizations. Because of the amount and frequency of change, it is necessary to revise change methods as organizations move to Agile.

47. Enfocus SolutionsBusiness Discovery and Change Collaborative Business Architecture Impacts, Gaps, and Risk Vision Portfolio People Process Technology Data Business Rules Service Portfolio Objectives Project Business Case Impacts Service Service Transparency Negotiated Changes Discovery People Process Technology Data Business Rules Business Customer User Service • Negotiated Change • MVCs • AS IS • TO BE • SLAs • OLAs • Contracts • Components • Quality • Security • Conversion • Usage • Compliance • Procedures • Decisions • Workflow • Roles Program BusinessModel ChangeCanvas Needs Utility Outcomes Touchpoints Scenarios Warranty Stakeholder Engagement Release Train Bundle Bundle Bundle Bundle Bundle Team Kanban Kanban Kanban Kanban Kanban I&A I&A I&A I&A I&A Validated Learning

48. Identify What Business Changes Are Needed Define Impacts. Address what the needed changes will impact. • People. Which people or organizations will be impacted by the project? • Processes. What business processes will be impacted? • Governance. What rules constrain the project? • Data. What data and knowledge is needed? • Technology. What IT services and technologies will be impacted? • Projects. What other projects will be impacted by the project?

49. Negotiate Changes • Assign impacts to organizational change professionals or super users within the organizations. • Stakeholders should be actively involved in the change(Negotiated Change). • Changes should be made in small steps and then validated (Validated Learning). • Engaging stakeholders like this can significantly improve outcomes and decrease risk. • Use Agile Method such as Lean Change Method to manage organizational change.

50. The Lean Change Method • Two Key Principles for Lean Change Management • You can not control how people will react to change • People will be happier if they can help develop the change • Lean Change Method Core Concepts • Negotiated Change • Validated Learning • Change Canvas • Use Kanban or (possibly Scrum) to implement improvements • Minimum Viable Change • Improvement Experiments • Validated Change Cycle • Capability and Performance Metrics • Cadence Model of Suggested Meetings and Workshops Negotiated Change