Keynote Scrum Is a Productivity Superweapon - Jeff Sutherland

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Disruptive Leadership
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Lean
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Scaling
Leadership
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Ericsson
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Macy’s
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Symantec
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Twitter
Paypal
Version One
Lean IT
BBC
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Google
UK Cabinet
Sky News
GOTO
Rabobank
HBS
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Simplicity
Agile Camp

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Who We Are
Scrum Inc. is the Agile leadership company of Dr. Jeff Sutherland, co-creator of Scrum.
We are based at the MIT Cambridge Innovation Center, MA.
Chief Product Owner JJ Sutherland leads operations and maintains the
Scrum framework by:
• Capturing and codifying evolving best practices (Scrum Guide)
• Conducting original research on organizational behavior
• Publishing (3 books) and productizing ScrumLab
CEO Jeff Sutherland helps companies achieve the full benefits of Scrum leading our
comprehensive suite of support services and leadership training:
• Scaling the methodology to an ever-expanding set of industries, processes and business
challenges Training (Scrum Master, Product Owner, Agile Leadership, online courses, etc.)
• Consulting (linking Scrum and business strategy, customizing Scrum)
• Coaching (hands-on support to Scrum teams)
We run our company using Scrum as the primary management framework, making us a living
laboratory on the cutting edge of “Enterprise Scrum”
President Scrum@Hardware Joe Justice leads our hardware consulting practice:
• Worldwide consulting at leading hardware companies
• 700-800% performance improvement in hardware development
• Builds 100 mpg cars in his garage with help from 500 people in 32 countries

3. 2014ScrumInc.
Achieving the Dream
We hold these truths to be self-evident, that all men are created
equal, that they are endowed by their Creator with certain
unalienable rights, that among these are life, liberty and the
pursuit of happiness.
United
States
Declaration
of
Independence

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Most People Don’t Have a Life
• 55% of workers are unhappy in their job (Conference Board)
• 65% are looking for a new job (Deloitte)
• We find paid work is ranked lower than any of the other 39
activities individuals engage in, with the exception of being sick
in bed. (Center for Economic Performance)

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New York Times Sunday Review
Why People Hate Work
By TONY SCHWARTZ and CHRISTINE PORATH MAY 30, 2014

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Few Achieve the Dream
The best-laid schemes o' mice an' men
Gang aft agley,
An' lea'e us nought but grief an' pain,
For promis'd joy!
Robert Burns

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Twice as much sweat in half the time

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Make Work Visible
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#1 Corporate Problem - No Clear Backlog
• The #1 problem for most organizations is lack of a single, clear, ordered backlog or products
and projects.
• This leads to confusion, wheel spinning, and demotivated employees which results in missed
dates, excuses, and finger pointing,
• Fixing this problem can quickly double the production of an organization and double the
revenue per unit of production.
• From an investors point of view, increasing business value delivery of the same organization by
400% this year needs to be the CEO's top priority.
• We have solution to this problem. It is called Scrum Product Ownership.
• Acceptance Tests:
• Every team has a clear, ordered backlog every sprint so they know exactly what they need to do
and in what order.
• Teams are stable. No teams are raided for people to start new projects. Backlog flows to stable
teams.
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Learning From Leaders
General Douglas MacArthur
Duty,
Honor,
Country
The shadows are lengthening for me.
The twilight is here… But I want you to
know that when I cross the river, my
last conscious thoughts will be of
the Corps, and the Corps, and the
Corps.

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Plans are Worthless, Planning is Everything!

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Plans are Worthless, Planning is Everything!
Captain Edwin Atterberry Shot Down August 1967- Wikipedia

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U.S. Air Force Academy

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Cells, People, Teams, and Organizations
Change in Small Increments
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John Bailar, M.D., Ph.D.

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Systems Architecture: Massively Parallel

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Traditional Projects: 89% Failure Rate
Death March at the Bank
A Fundamentally Flawed Process

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Landing the Project
YouTube: RF-4E of the Hellenic Air Force

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Adding the Turndown Chart!

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Bootstrapping
• Helen Greiner, First Lady of Robots
• Colin Angle
• Prof. Rodney Brooks
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Prof. Muhammed Yunus

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The Importance of Architecture

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State Machine Mutations: How Things Really Work
Intervention
Visible Value
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“All complex systems evolve through a series of stable states.”
Herbert Simon. The Sciences of the Artificial, Third Edition. MIT Press, 1996

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#2 Corporate Problem - No Continuously Deployable Stable States
• The #2 problem for most organizations is lack of ability to quickly deliver product in short interations.
• The most critical factor is fully integrated system build time and associated testing. If this takes months or weeks
and can be reduced to days or hours, production of the organization can increase by an order of magnitude.
• We have an Agile solution for this. It is called:
• Continuous Integration
• Automated Acceptance Test Driven Development
• Continuous Deployment
• Acceptance tests:
• Incremental fully integrated builds can be done multiple times per day
• Automated acceptance tests are run with every build
• Teams have a potentially shippable increment of code at the end of a sprint (or more often)

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Organizational Architecture: 3 Constraints
• Conway's law
• organizations which design systems ... are constrained to
produce designs which are copies of the communication
structures of these organizations
• Brook’s Law
• adding people to a late project makes it later
• Drucker’s “Cuckoo Effect”
• any innovation in a corporation will stimulate the corporate
immune system to create antibodies that destroy it

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Fractal Organization: Optimal Team Size = 4.6
If there was a Nobel Prize for management, and if
there was any justice in the world, I believe that
the prize would be awarded, among others, to Jeff
Sutherland, Ken Schwaber and Mike Cohn for
their contributions to the invention of Scrum.
Steve Denning, Forbes 29 Apr 2011

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Goodbye
Org
Chart.
Fast
Company
Jun
2015
Your
structure
is
your
strategy!

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#3 Corporate Problem - Organizational Debt
• The #3 problem for most organizations is organizational debt. The
structure of the organization creates so many dependencies in the
product that production is crippled.
• Symptoms are missing delivery dates and unhappy customers.
• We have a solution for this. It is called Scrum@Scale.
• Acceptance tests:
• There is an Enterprise Action Team that is removing organizational
impediments on a weekly basis.
• Scrum Inc. provides training, consulting, and coaching to help fix these
problems.

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Formalizing the Scrum Process: Takeuchi and Nonaka
The New New Product Development Game
Harvard Business Review, Jan1986
Type A – Isolated cycles of work
Type B – Overlapping work
Type C – All at once
NASA
Fuji Xerox
Honda, Canon, 3M, …
Scrum Project Management

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Characteristics of Great Teams
• Transcendent Goals
• Autonomy
• Cross-Fertilization

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Agile = Lean + Customer Collaboration
Agile competition goes beyond lean manufacturing by permitting
the customer, jointly with the vendor or provider, to determine what the
product will be.
For agile competitors, the ability to individualize products comes at little
or no increase in manufacturing cost. It does, however exact a cost: It
requires major changes in organization, management philosophy,
and operations.
Leadership needs to change focus:
• Eliminate waste
• Understand Value Stream Analysis
• Implement Single Piece Continuous Flow

30. © 1993-2015 Jeff Sutherland & Scrum Inc.
Scrum in complex systems deliveries
• $143 billion over budget
• Delayed until 2022 (final
systems integration)
• Cost of Navy F-35C grew
from $273 million in
2014 to $337 million by
2015
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Cumulative program cost of $15 billion
New iteration of all systems released every
6 months
$43M cost1
(20% of F-35)
1. According to Jane’s Aviation Weekly, the Gripen is the
world’s most cost-effective military aircraft
2. “How DOD’s $1.5 Trillion F-35 Broke the Air Force” -
FiscalTimes July 2014
3. “we are presently taking the newest strategic foundation
and analyzing whether 2,443 aircraft is the correct
number” Marine Corps Gen. Joseph Dunford, July 2015
WATERFALL
LATE 9 OUT OF 10 TIMES
SCRUM
BETTER PLANE EVERY 6MO

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Agile Leadership
• Sales, Marketing, Finance
• Manufacturing
• Technology, Software
• Families and weddings
• Education
• Agriculture
• Government
• Space

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Changing the World of Education
eduscrum.com
Higher grades
Faster learning
More fun
Leadership Development
Involves handicapped
Motivated students
Self-discipline

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Agile Sucess Rates 2011-2015Standish Group International, Inc.
Waterfall vs Agile 2011-2015 Data
Previously Published Data 2002-2010

34. © 1993-2015 Jeff Sutherland & Scrum Inc.
Typical Initial Team Assessment
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35. © 1993-2015 Jeff Sutherland & Scrum Inc.
Team After One Sprint with Good Cocah
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36. © 1993-2015 Jeff Sutherland & Scrum Inc.
Team After a Few Sprints
Good results from other teams as well
• 209% (The Avengers)
• 275% (The Warriors)
• 367% (The Chargers)
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37. © 1993-2015 Jeff Sutherland & Scrum Inc.
Schroedinger’s Buffer
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Source: Stephen Daukas, Simplicity

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Deploy Aggressive Scrum!
The
faster
you
go,
the
more
resistance
you
get!

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Scrum is a Productivity Superweapon - It is
Shockingly Efficient
Rick Horgan, Sr. Editor, Crown Business
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