Scrum Australia 2016

1. 4/30/16
1
Extending
Scrum Adoption
with
Visual
Management
​Ben Hogan
​Speaker | Mentor | Trainer | Coach
​agileben.com/visual-management
​ben@agileben.com
​@agileben
Karen,
CIO

2. 4/30/16
2
Toolbox for the Agile Coach – Visualization Examples Jimmy Janlén
23
Days blocked (wasted)
When using Post‐it notes to indicate blocked status it can be
helpful to keep track of the days since the blocker was
introduced.
On the Daily Stand‐up meeting, simply put a dash on the
blocker note, also known as tally marks. The dashing in itself
will remind you and your team to act on the impediment or
dependency. And the number of dashes will tell you how many
days have been wasted waiting for something or someone.
A large number of dashes is an invitation to a serious
discussion. Why does the team fail to resolve its impediments?
Do they lack support? Motivation?
We’re really busy!

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Impacts of utilisation
A
To
Do In
Progress UAT Done
To
Do In
Progress Done
A
B
In
Progress Done
Business
Unit Business
Unit
B Can
we
extend
Scrum
outside
IT?

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Tough times for insurance
Volatility, Uncertainty, Complexity

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How
do
we
respond?
”The
greatest
biologist
since
Darwin”
– Richard
Dawkins

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© Vanguard Consulting Ltd
Thinking governs performance
Performance
System
Thinking
Source:
Vangard.
John
Seddon.
A huge shift in mindset
http://www.forbes.com/sites/stevedenning/2016/04/21/hbrs-­‐embrace-­‐of-­‐agile/

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7
How do we unlock
a new mindset?
“When
companies
can’t
invent,
it’s
usually
because
their
people
are
too
damn
busy.”
―Tom
DeMarco,
Slack

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8
“Operating a product development process
near full utilization is an economic disaster.”
Donald G. Reinertsen,
The Principles of Product Development Flow.
How do these challenges relate
you your organisation?
• Business generally overburdened
• Market pressure to change and innovate
• Established leadership mindset
Start
End

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My
role
-­‐ Training
-­‐ Mentoring
-­‐ Coaching

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Big
up
front
planning
Bigg Gantt Charts
“Utterly
Ridiculous
– a
complete
waste
of
time”
-­‐ Karen

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Step
1:
build
awareness

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How would you build awareness?Start
End
Visceral change
https://agileforest.com/2012/09/26/what-­‐is-­‐an-­‐effective-­‐stand-­‐up/

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Our approach
• Build desire for change
– Show your walls
– Show your backlog
– Visit other sites
• Change incrementally
– Try startingwith Visual Management
– Teach usinggames
– Do an assessment
• Outcomes: lessons and next steps
SHOWING THE WALLS

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Showing the Backlog

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Jun Jul Aug
290 225 270
Points required for Operational Imperatives: 165 95 95
Points available for Strategic Theme Ranking: 125 130 175
RANK INITIATIVE DUE DATE DELIVERABLE JUN JUL AUG COMMENTS
10 Production Support Ongoing Correction of issues raised from the production environment and other unplanned
critical changes - includes WC Monthly extracts for WCA & NCPD Reporting
75 75 75
20 Policy Conversion 31/12/2015 I90 to PC Policy Conversion (includes PC WC Conversion Development) 15 5 5
30 Workers Comp Claims Migration 30/06/2016 Migration of Workers Comp claims off CC5 and onto CC7 15 5 5
40 Workers Compensation Upgrade
Project
29/02/2016 CLAIMS
Remaining CC build, Operational Reports/Extracts (incl. NSW EL), Test and Fix
50 5 5
50 Workers Compensation Upgrade
Project
POLICY
May: Report / Extract Development
June/July: Contingency/Support
10 5 5
60 Hollard Initiative - Motor Phase 1
(rating algorithm and
underwriting rules
implementation (Same Wording)
May - Design/Build Motor Changes
June - Build and Test Motor Changes
July - Test and Fix/ Support Implementation 30 15 15
Agreed in meeting on 23/03 that if possible, more resources should be assigned to this to progress
more quickly
70 Acerta Revenue Strategy:
Product and Portal refinements
May: Broker Portal Renewal Solution (for Blackburn)
June : Broadform Changes - Requirements TBA
TBD
20 20 20
80 Commercial Digital / Online
Strategy (Revenue)
May: Discovery for ESSA Quote/Buy Portal (requirements in progress) and Discovery
for Bus Pack online
June & July : Implement ESSA and Commence Remaining Liab Portals
July: RMO Discovery
20 20 20
CD Digital Strategy Planning for June/July meeting is being booked - this will determine whether RMO
via Policy Hub Development should proceed - if it does, it will need to be scheduled ahead of Business
Pack build (RMO would need to have discovery in July,
90 Acerta Operational Improvement
Strategy
Highest ranked Operational Improvements items (As ranked in the Business
Improvement Forum and Subsequent OBO Ranking Meeting)
May - highest ranked items (ISR Performance, PC Email, PC COC)
June - highest ranked items
July - highest ranked items
15 15 15
Requirements to be ready prior to commencement of sprint in order to utilise this capacity, otherwise
spare capacity will be used to assist with discovery activities
100 Commercial Direct Operational
Improvement
May - highest ranked items
June - highest ranked items
July - highest ranked items
15 15 15
Requirements to be ready prior to commencement of sprint in order to utilise this capacity
110 RI Set-up 2016/2017 Reinsurance Set-up and Testing
5
Finalised Reinsurance Arrangements Outstanding - we are proceeding with a draft programme initially
for Acerta.
120 Client Communications Updates Office Move: Update Address and Phone Number on all System Generated Customer
Comms (applying new Guild Logos at the same time) and Policy Wordings (Email
versions)
MIGA : Complete co-branding of additional Comms. Need to establish a new Co-
Branding Standard which is then applied in future.
Agreed that application of new Branding/Styles for Direct and Acerta Wordings should
occur on next significant renewal or when Content Changes necessitate a new Wording
130 Claims Category Changes required
for Property and ISR - BI
Reporting Issue 1
30/06/2016 Business Interruption related Claim Costs (reserves and payments) are being extracted
to the Data Warehouse with an “unknown” coverage attached to them. This means we
cannot be sure they relate to BI and, for Pack policies, we can't determine whether the
reserves/payments relate to loss of income, claims prep costs or other BI coverages.
PC accepted that we could accept compromise until EOFY 15-16. Please also note that this issue is as a
result of the way we reserve in CC.
This 10 points will cover some discovery into a solution for this and may be sufficient to resolve the
reporting issue for ISR which is a simpler structure (single BI coverage) than the Business/Prof Packs
which have multiple coverages.
15/04/16: As at the End of March 2016, the “unknown” coverage allocations show that about 80% of
the issue is around ISR.
140 System Changes arising out GIL
Op Model Changes
5 5
Targeting July for discovery - development in August and release in Sept
150 Client Communications for
Workers Compensation (Claims)
Complete the remaining 113 Workers Compensation Client Communications
30 30
Operational efficiency. Copying and pasting new documents into GW blank templates is resulting in
formatting issues and requires input from Claims Specialists which is not efficient
160 Workflow:
Winback and
Commercial Direct Pipeline
Management
Includes:
Winback (for Acerta and Direct)
Campaign Management
Lead Management
Associated Reporting and Analytics (Requires BI Resourcing)
20 20 20
Total effort for this Project is likely to be 50 - 60 points
Require decision on when to execute - contingent on BI Team Resourcing being made available in the
same time-frame.
Established that the Saleslogix licence is up for renewal on 30 August
170 CAPACITY MARKER 290 235 235
180 FA 'Big Bang' conversion Fitness Australia Big Bang conversion options :
Option 1 (estimated here) - is to proceed with the Big Bang Conversion for an October
Launch (1st Jan effective renewals).
Option 2:
Leave Fitness Australia Policies Expiring 1/Jan/17 - 30/9/17 (2594 Policies) to convert
at Renewal.
50 50
We have undertaken a detailed analysis of all of the changes required to PC, BC, CC and
Reporting/Analytics to support the Big Bang option.
The total points required to complete this work is approx. 100 which would need to be accommodated
in the July and August sprints.
The original estimates provided by Tom were lower, but focussed only on the Conversion component
and were predicated on there being around 800 policies left on I90 by December this year. We have
since confirmed that there will actually be in excess of 2,594 policies needing to be mid-term converted
in December.
************************************************************************
Our recommendation is that the Technology and Business capacity which this would consume would be
better spent on higher value backlog items and we seek ratification of this outside of this forum with
due consideration to operational resourcing impacts and cost/benefit
************************************************************************
200 Workers Comp Early Learning WC NSW Early Learning was implemented as a new Producer Code (cost centre) - based
on the original requirement to segregate financials. Now that we can potentially write
under the same licence we need to modify the implementation so that the business is
allocated to the originating producer (region) for budgeting and other financial
reporting
Timing for this change is subject to when we want to go live with NSW Early Learning
210 Commercial Direct Revenue:
Cyber Insurance
07/2016
dependent on
policy volumes
Development of Cyber Product Current proposed approach is that this will initially be implemented avoiding any Guidewire system
build but PC has requested that once policy volumes are at 10 or more a month, then a Guidewire
solution is required
In the meantime we need to explore the ability in PC of being able to see
220 Claims Category Changes for
Property - BI Reporting Issue 2
30/06/2016 Commercial Property claims which impact multiple coverages are not being correctly
reported in BI reports - the financials are being rolled up into one coverage - e.g.
Buildings.
The allocation to a coverage appears to follow the order of Buildings -> Contents ->
Stock, and can sometimes be allocated to a coverage that wasn’t impacted at all by the
claim. As the data currently looks, there does not appear to be any Stock claims in CC7
– pure stock claims are being allocated to contents. PSD-15344
? ? ?
As a result of this, we are unable to obtain a true view of the performance of individual coverage
sections (Buildings, Contents and Stock).
230 Integration of ClaimCenter v7 to
external system provider Claim
Central
30/06/2016 Integration of external provider Claim Central to ClaimCenter v7 30 30 PSD-16167
240 Application Performance Tuning Review and Optimise system performance of Workflow Screens and other functions ISR Rater
Workflow Views
ISR Endorsements
250 PC: Workers Comp Ability for Customers to submit their Wages and Financials Declaration Online
15 15 15
Agreed in meeting on 23/03 that Stuart would confirm whether this should be deferred until next year -
question mark over business value at this time and capacity to implement
260 Liability Workshop updates to
CC7, result of immersion
Ongoing Items raised from immersion done by AP, TD and SB for Liability claims. 75 Jiras raised
and prioritised in Backlog. Please note that @8/2, 41 of these items have been
actioned.
5 5
270 Occurrence Policies with Claims
Made Endorsements
Company strategy has been determined. We are going to have Occurrence Policies
with Claims Made Endorsements changes will be required to PC and CC to
accommodate
Currently neither PC or CC can cater for Occurrence Policies with Claims Made Endorsements.
280 SMS Capability - for Billing and
Claims Reminders
Ability to remind customers to pay their premium (BC) or to attend their medical
appointments (Workers Comp Claims)
Effort to implement - 20 points of complexity per use case. Cost for 20,000 Claims and 20,000 Billing
would be approx. $5,000 (based on approx. 7 to 10 c per sms and a monthly subscription). Effort / cost
based on a basic implementation with minimal reporting capability
290 IVR for Claims Currently in Claims, a customer must call and speak to a claims specialist to pay their
excess. It would be Operationally effective for customers to be able to make Excess
payments via BPay without requiring in Claims Specialist intervention. This would free
the Claims Specialist up from lengthy phone calls to do this over the phone.
Claims currently do about 15 of these per week. The customer would also have the added benefit of
being able to pay their excess at a time convenient to them rather than in Guild's office hours.
300 Premium Capping/Cupping Revisit Capping / Cupping - are we losing revenue due to the methodology AL action to review Guidewire Axelerator with business to see if the approach is preferable. Possible
sequencing following Hollards Rating Changes
310 Superior Risk Selection:
Peril Assessment Summary
Risk Analysis Screen - new Peril Assessment Screen which captures the snapshot of the
Peril Assessment Results back in PC
Blocked awaiting Guidewire to provide an integration point to support snapshotting the results in PC
** OPERATIONAL IMPERATIVES**
Guidewire Delivery (Jun 2016 to Aug 2016) - Candidate Listing Final
Total Points available: 1 Technology head count =
15 Delivery Points per month
Items not yet 'business ready'
or 'decision pending'
Formalising the Governance
Framework

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Exec briefings
CEO & GM intro to Agile and Scrum
Visiting other Sites

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Step
2:
learning
and
doing
Change incrementally

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kick-start visual management with
each team
Teaching using games

23. 4/30/16
23
Coaching
• Setup
wall
• Workflow
• Policies
Toolbox for the Agile Coach – Visualization Examples Jimmy Janlén
71
Limit by Space
If your team does Kanban or some version of Scrumban and
have a hard time honoring the WIP Limits you have set for
yourselves, perhaps this approach can help you.
Instead of writing the WIP Limits, adjust the spaces. Make the
boxes and areas containing the Post‐its so small that you can’t
physically fit more Post‐its than the space allows without
breaking the WIP Limit.
This approach also makes it bluntly obvious if the WIP Limit
has been broken somewhere, just look for Post‐its stacked
upon each other.
Toolbox for the Agile Coach – Visualization Examples Jimmy Janlén
76
Stuff Collectors
Having a hard time finding the right colored Post‐its? Do the
pens seem to constantly disappear? Why not put up boxes
beneath or beside the whiteboard where you can collect them.
You can even add labels that at the same time will function as
a legend, explaining the colors of the Post‐its.
The boxes could be made out of cardboard and put up using
adhesive tape. Or buy yourself shower storage baskets with
suction cups, attaching them to the whiteboard itself or a
nearby window.
Toolbox for the Agile Coach – Visualization Examples Jimmy Janlén
19
Blocker Notes
If you for some reason become blocked while working on a
task, preventing you from moving forward ‐ add a red blocker
note on top of that task. This makes the reason known for
everyone, and also works as a follow‐up reminder.
Review the blockers during the Daily Stand‐up and discuss how
to address and resolve each of them.
The description clearly states why you are blocked, who you
are waiting for (and why), or what the problem is. To make it
even clearer, write your own name and the date you became
blocked in the corner of the Post‐it.
Toolbox for the Agile Coach – Visualization Examples Jimmy Janlén
88
Hourglass Scrum Wall
A Scrum wall doesn’t need to be in the shape of a grid. The
Hourglass Scrum Wall replaces a User Story lane with an
Hourglass where tasks flow downwards. It provides two
natural dimensions for limiting work in progress; the number
of concurrent User Stories, and an upper limit of two active
tasks per User Story. If a story is too small to be broken down
into tasks (i.e. the team can finish the entire story within a day)
it simply occupies the whole Hourglass.
Not separating “Work in progress” into “Coding”, “Reviewing”,
and “Testing” and so on also enforces cross‐discipline
collaboration and knowledge sharing.
Result: 28 boards
across 10 departments

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Marketing
Underwriting

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PMs board
Superannuation sales

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Superannuation operations
Sales team

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Risk and Compliance
Finance

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Boards for cross department
strategic initiatives
Second cross department initiative

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Visualisation:
1. Work
Items
2. Work
Flow
3. Blocked
work
4. Workers
/
Avatars
5. Work
Types
/
Classes
of
Service
6. Priority
/
Expedite
7. Impediments
/
Issues
8. Ready
for
Pull
/
Done
columns
9. WIP
Limits
10. Size
11. Start
/
Finish
Dates
/
Lead
time
12. Due
Dates
13. Team
culture
/
fun
Limiting
WIP
1. Agreement
to
limit
WIP
2. Per
person
limits
/
limiting
some
of
the
time
3. Overall
limits
are
set
and
kept
Measure
and
Manage
Flow
1. Measuring
throughput
2. Measuring
WIP
3. Measuring
days
blocked
4. CFD
Chart
5. Measuring
Start
/
Finish
/
Lead
Time
6. Calculated
SLA
/
Lead
Time
targets
7. Measuring
team
satisfaction
8. Measuring
customer
satisfaction
Explicit
Policies
1. Wall
policy:
card
design,
colour,
placement
2. Defined
Purpose
and
Measures
of
Performance
3. Prioritisation
policy
4. Queue
replenishment
policy
5. Work
Sizing
/
Splitting
Policy
6. Definition
of
done
/
column
entry/exit
criteria
7. Definition
of
“Ready
to
start”
8. Staff
/
work
allocation
policy
9. Classes
of
service
policy
10. Over
WIP
Limit
Policy
Feedback
Loops
1. Daily
meeting
2. Service
review
/
Measurement
cadence
3. Risk
review
/
blocker
review
4. Operations
Review
/
Retrospective
5. Review
/
Demo
/
Customer
Feedback
Improve
Experimentally
1. Visualisation
is
improving
2. WIP
is
reducing
over
time
3. Measures
show
improvement
over
time
4. Policies
are
being
updated
5. Retrospectives
/
Reviews
drive
actual
improvements
6. Overall
depth
of
Kanbanis
improving
7. Using
toyota /
kanbankata:
mentor/mentee
coaching
Visualise(
Limit(WIP(
Manage(Flow(
Explicit(Policies(
Feedback(Loops(
Improve(
Current(
Kanban
self
assessment
chart
Version
2.
Questions
or
feedback
contact
ben@agileben.com

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Results
Lessons learned
Visualising work was much easier
than limiting WIP

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Result: known overburdening
7-8Avg Number of Tasks In Progress Per Person
Weinberg,
G.M.
Quality
Software
Management:
Vol.
1
System
Thinking. New
York.
Dorset
House,
1992.
https://insights.sei.cmu.edu/devops/2015/03/addressing-­‐the-­‐detrimental-­‐effects-­‐of-­‐context-­‐switching-­‐with-­‐devops.html

32. 4/30/16
32
Elfving and Tommelein (2003)"Impact of Multitasking and merge bias on
procurement of complex equipment”
http://www.betterprojects.net/2010/12/multitasking-is-enemy-of-focus.html
2x
3x
Lessons learned
Small changes can have large impacts

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Result: new office design
What would you do next?
Start
End

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Next steps
Limiting
and
Measuring
WIP
Portfolio
visualisation
and
prioritisation
New
office
and
visualisation
kits
73
Visual Management Master Class
​agileben.com/visual-management
§ Public Class: Half-Day 22nd
June
§ Private classes by appointment

35. 4/30/16
35
On your phone: get the materials
Subscribe at
agileben.com for
goodies:
Slides
Visual Management
Mastery booklet
Self assessment tool
Discounts
On your phone: get the materials
Subscribe at
agileben.com for
goodies
Start
End

36. 4/30/16
36
Questions
Start
End