SPC Exam Review - Business Agility, Digital Age, SAFe, Agile Teams - PDF

**Lesson I** **Thriving in a Digital Age** Describe what is necessary to thrive in the digital age? Leaders need to move away from traditional ways (*rigid workplace, traditional design and legacy culture*; *entrenched set of values norms and behaviors that have defined the company for years and...

**Lesson I** **Thriving in a Digital Age** Describe what is necessary to thrive in the digital age? Leaders need to move away from traditional ways (*rigid workplace, traditional design and legacy culture*; *entrenched set of values norms and behaviors that have defined the company for years and no longer align with evolving goals*) of working towards a more modern way of working whereby Leaders strengthen others , develop new competencies and new behaviors critical to the success of a modern company. Organizations will face these common challenges when they want to implement SAFe: Transformation stagnation after several wins - No leadership backup - Fixed mindset and new silos emerge - Org dependent of handful of people for their heroic effort - Enterprise strategy disconnected from execution **Keys to leading a successful change :** - **Create a sense of urgency**: Leaders must communicate, demonstrate and advocate for change. - **Build a guiding coalition for change**: LACE serves this purpose. Leaders **MUST** form, fund and empower SAFe change agents. - **Form a strategic vision:** Leaders and LACE team must communicate the future of how things will be and their alignment to strategic goals once SAFe is implemented. - **Enlist Volunteer army** - **Enable action by removing barriers** - **Generate Short Term wins** - **Sustain acceleration** - **Institute change** A diagram of a company\'s company Description automatically generated with medium confidence **Recognize SAFe as an Operating System for Business Agility** **Business Agility** This is the ability for a company or an organization to compete in a digital age by quickly responding to market change and emerging opportunities with innovative, digitally enabled business solutions. Technologies that enable business agility is Big Data, AI , cloud and DevOps.  As an organization expand new responsibilities emerge , the focus shifts from customers because the business starts organizing functionally to scale thus causing silos. The company can only regain its momentum by shifting its focus to the customer. "*Organizational hierarchy supports the recruiting, retention, and growth of thousands of employees across the globe"-SAFe*. So cannot be discarded. It's still needed Dual Operating Systems - **Operational Value Streams:** An Operational Value Stream (OVS) is the sequence of activities needed to deliver a product or service to a customer. Take into account steps necessary to convert trigger to value , people who perform steps, systems needed for their work and flow of info/materials that are necessary to satisfy that request. - **Development Value Streams** (Entrepreneurial network): work is organized around value. Each value stream is separated into ARTs with shared business and technology mission. The Dev teams define, build , test and deploy products. A diagram of a step process Description automatically generated **Types of Operational Value Streams (OVS)** There are four common OVS patterns: **Fulfillment** represents the process of processing a customer order for a digitally enabled product or service by delivering it and receiving payment. Examples include providing a consumer with an insurance product or fulfilling an eCommerce sales order. **Manufacturing** converts raw materials into the products customers purchase. Examples include consumer products, medical devices, and complex cyber-physical systems. Like **Toyota** **Software products** offer and support software applications and solutions for sale to the end user or enterprise. Examples include ERP systems, SaaS, and desktop and **mobile applications.** **Supporting value streams** are end-to-end workflows for various repetitive and internal support activities. Examples include employee hiring, establishing and executing supplier contracts, performing the annual audit, and completing an enterprise sales cycle. **Workday and UKG** helps with employee hiring process **Seven Core Competencies for Achieving Business Agility** The focal point of all 7 core competencies is the customer with Lean-Agile leadership being the foundation. These core competencies offer knowledge and skills to achieve business agility. 1. **Team and Technical Agility:** This is the cornerstone of business agility. It consist of 3 dimensions i.e. **AGILE TEAMS**, **BUILT IN QUALITY** **AND Teams of Agile Teams**. It describes the skills and Lean Agile principles needed high performing/cross-functional teams that apply agile principles and practices to create high quality products 2. **Agile Product Delivery:** This competency focuses on the need for enterprises to create the right solutions for the right customers at the right. Business Agility demands an increase in innovative products and services at a rapid pace. It consist of 3 dimensions ie **Customer Centricity/Design thinking** (desired, feasible, viable and sustainable product is created), **Develop on cadence and release on demand** , **DevOps and the continuous delivery pipeline**. 3. **Enterprise Solution Delivery:** Describes applying Lean-Agile principles and practices to the specification, development, deployment, operation, and evolution of the world's largest and most sophisticated software applications, networks, and cyber-physical systems. It consists of three dimensions**; Lean System Engineering, Coordinating Trains and Suppliers, Continuously Evolve Live Systems.** **Lean Systems Engineering** applies Lean-Agile practices to align and coordinate all the activities necessary to specify, architect, design, implement, test, deploy, evolve, and ultimately decommission these systems. **Coordinating Trains and Suppliers** coordinates and aligns the extended set of value streams to a shared business and technology mission. It uses coordinated Vision, Backlogs, and Roadmaps with shared PIs and synchronization points. **Continually Evolve Live Systems** ensures that both the development pipeline and the large systems support continuous delivery during and after release into the field. 4. **Lean Portfolio Management:** The Lean Portfolio Management competency aligns **strategy** and **execution** by applying Lean and systems thinking. It consist of 3 dimensions, ie Strategy and Investment funding, Lean Governance and Agile Portfolio Operations. - **Strategy and Investment Funding** ensures that the entire portfolio is aligned and funded to create and maintain the solutions needed to meet business targets. It requires the cooperation of Business Owners, portfolio stakeholders, technologists, and Enterprise Architects. - **Agile Portfolio Operations** coordinates and supports decentralized execution, enabling operational excellence. It requires the cooperation of the Value Management Office/Lean-Agile Center of Excellence (VMO/LACE) and Communities of Practice (CoPs) for Release Train Engineers (RTEs) and Scrum Masters/Team Coaches. - **Lean Governance** manages spending, audit and compliance, forecasting expenses, and measurement. It requires the engagement of the VMO/LACE, Business Owners, and Enterprise Architects. 5. **Organizational Agility:** It consists of 3 dimensions. - **Lean-Thinking People and Agile Teams** -- This state occurs when everyone involved in solution delivery is trained in Lean and Agile methods and embraces and embodies the values, principles, and practices. - **Strategy Agility** occurs when an organization demonstrates the ability and adaptability needed to sense the market and continuously change strategy when necessary. - **Lean Business Operations** -- Teams apply Lean principles to understand, map, and continuously improve the business processes that support the business's products and services. 6. **Continuous Learning Culture:** The three dimensions are: - **Learning Organizaticon** -- Employees at every level are learning and growing so that the organization can transform and adapt to an ever-changing world. - **Relentless Improvement** -- Every part of the enterprise focuses on continuously improving its solutions, products, and processes. - **Innovation Culture** -- Employees are encouraged and empowered to explore and implement creative ideas that enable future value delivery. 7. **Lean-Agile Leadership** Three dimensions of Lean-Agile Leadership - **Mindset, Values, and Principles** -- By embedding the Lean-Agile way of working in their beliefs, decisions, responses, and actions, leaders model the expected norm throughout the organization. - **Leading by Example** -- Leader's gain earned authority by modeling the desired behaviors for others to follow, inspiring them to incorporate the leader's example into their development journey. - **Leading Change** -- Leader's lead (rather than support) the transformation by creating the environment, preparing the people, and providing the necessary resources to realize the desired outcomes.  Leaders must develop 3 distinct dimensions: 1. Agile Mindset (*this can be done by adopting SAFe core values, lean agile mindset and SAFe Principles*), Values (**Alignment**, **transparency,** **respect for people** **and relentless improvement**) and Principles 2. Leading by Example: Leaders must possess these characteristics; **Insatiable learning**, **Authenticity,** **emotional intelligence** , **courage** ,**growth of others** ,**decentralized decision making** 3. Leading Change: For change to be possible the following need to be done; **Change Vision,** **Build a guiding coalition for change**, **change leadership**, **psychological safety** and **training** Lesson II Building a Foundation with Mindset, Values, and Principles 2.1 The Lean-Agile Mindset 2.1.1 Lean thinking 2.1.2 Agile development 2.2 SAFe Core Values 2.3 Apply SAFe Principles ► Describe the value of a Lean-Agile Mindset ► Recognize the SAFe Core Values ► Apply the SAFe Lean-Agile principles A screenshot of a computer **SAFe Lean-Agile principles** 1. **Take an economic view** **It's important to understand the economic impact of the decisions we make. There are 2 ways to achieve optimum economic outcomes;** **deliver early and often and apply an economic framework.** - Deliver early and often: Delivering earlier and more often also allows for faster feedback as the product is incrementally developed, which improves the chances of an on-time release of the final product. - Apply an economic framework: An economic framework is a set of decision-making guidelines that align everyone to the **financial objectives of a portfolio**, and which inform the **continuous decision-making process.** **Understanding trade-off parameters:** - ► Sequence jobs for maximum benefit - ► Do not consider money already spent - ► Make economic choices continuously - ► Empower local decision making - ► If you only quantify one thing, quantify the cost of delay  A close-up of a document 2. **Apply System Thinking** Aspects of system thinking include: The solution itself is a system, Enterprise building is a system too, Optimize the full value stream. **Attributes of systems thinking** ► Optimizing a component does not optimize the system ► For the system to behave well as a system, a higher-level understanding of behavior and architecture is required ► The value of a system passes through its interconnections ► A system can evolve no faster than its slowest integration point A text on a white background Description automatically generated 3. **Assume Variability; Preserve Option** Solution development is an inherently uncertain process. Technical variability and market variability are present throughout development. Innovative new systems have, by definition, never been developed before, so there is no guaranteed path to success. **Set-based design** Set-based design is one way to manage variability and preserve options. Set-based design allows you to assume variability and preserve options by keeping design options open for as long as possible, converging as necessary and producing more optimal technical and economic outcomes. **Development occurs in an uncertain world** ► You cannot possibly know everything at the start ► Requirements must be flexible to make economic design choices ► Designs must be flexible to support changing requirements ► Preservation of options improves economic results **Iterate to the optimum Solution:** Set-Based Design facilitates learning and allows for continuous, cost-effective adjustments towards an optimum Solution. 4. Build Incrementally with fast, integrated learning cycles (PDCA) 5. Base milestones on objective evaluation of working systems : The problem of phase-gate Milestones : They force design decisions too early; this encourages false positive feasibility , They assume a 'point' Solution exists and can be built correctly the first time , They create huge batches and long queues, and they centralize requirements and design in program management. Apply objective Milestones: Planning Interval (PI) System Demos are orchestrated to deliver objective progress, product, and process Metrics. Demonstrations (demos) of the Solution are conducted on a regular cadence for relevant stakeholders to measure, assess, and evaluate the system frequently. This provides the financial, technical, and fitness-for-purpose governance needed to ensure that the continuing investment will produce a commensurate return A diagram of a company\'s process 6. Make value flow without interruptions: Address the following. The eight flow accelerators 1\. Visualize and limit WIP 2\. Address bottlenecks 3\. Minimize handoffs and dependencies 4\. Get faster feedback 5\. Work in smaller batches 6\. Reduce queue length 7\. Optimize time 'in the zone' 8\. Remediate legacy practices and policies  **Finding optimal batch size**A diagram of cost reduction Description automatically generated Optimal batch size is an example of a U-curve optimization. ► Total costs are the sum of holding costs and transaction costs ► Higher transaction costs make optimal batch size bigger ► Higher holding costs make optimal batch size smaller **Reducing optimal batch size** **Reducing transaction costs reduces total costs and lowers optimal batch size.** ► Reducing batch size: -- Increases predictability -- Accelerates feedback -- Reduces rework -- Lowers cost ► Batch size reduction probably saves twice what you would think **Reduce queue lengths** ► Understand Little's Law \- Faster processing time decreases wait \- Shorter queue lengths decrease wait ► Control wait times by controlling queue lengths \- WIP limits, small batches, defer commitments **Measuring flow** It's difficult to improve what isn't measured. SAFe recommends monitoring six different Flow Metrics throughout the various levels of the organization to measure flow and find areas of improvement.   7. **Apply cadence, synchronize with cross-domain planning** 8. **Unlock the intrinsic motivation of knowledge workers** A screenshot of a computer Description automatically generated 9. ** Decentralize decision-making** Benefits of decentralized decision-making: - Reduces delays - Improves product development flow and quality - Enables fast feedback - Creates more innovative solutions - Empowers people 10. **Organize around value** Organize for optimal flow An organization's goal is to create value for the Customer. By visualizing the end-to-end flow of value, you can find where to optimize that flow. This often means organizing the enterprise in a way to allow teams across the organization to communicate and cooperate. This also means that teams are cross-functional and can create value on their own. In SAFe, people organize Agile Release Trains (ARTs) to support delivery of value.  QUIZ A screenshot of a diagram **Describe the value of a Lean-Agile Mindset**  **Lean- Agile Mindset** Lean Agile Mindset is a combination of Lean thinking (Precisely specifying value, identifying value stream , make value flow without interruptions , let customer pull value from the producer and pursue perfection) and Agile values **Agile Manifesto Principles (12)**   **Lesson III** At the end of this lesson, you should be able to: Learning objectives ► Prepare to form cross-functional Agile Teams ► Describe Built-in Quality practices ► Recommend organizing around value with Agile Release Trains (ARTs) **Cross-functional teams** Agile Teams are cross-functional, self-organizing entities that can define, build, test, and---where applicable, deploy increments of value. Typically, 10 or few team members. He has 2 specialty roles; Scrum Master/Team Coach and Product Owner. A screenshot of a diagram Description automatically generated **Built-In Quality** **[Basic Agile quality practices]** Agile quality practices apply to every team, whether business or technology ► **Shift learning left** -- Reveal problems sooner, take corrective action with minimum impact ► **Pairing and peer review** -- Multiple viewpoints enhance work quality and grow knowledge ► **Collective ownership and T-shaped skills** Reduce bottlenecks and increase flow ► **Artifact standards and definition of done.** Ensure consistent quality for each work product ► **Workflow automation** -- Enable small batches and reduce errors **Team Topology** **[Teams on the ART are organized for flow]** - **Stream-aligned team** -- Organized around the flow of work and can 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  **Lesson IV** At the end of this lesson, you should be able to: ► Describe the benefits of a Customer-centric culture ► Practice applying Design Thinking ► Prioritize the ART Backlog with weighted shortest job first (WSJF) ► Participate in a PI Planning simulation ► Explain the need to develop on cadence and release on demand ► Justify the need to build and maintain a Continuous Delivery Pipeline with DevOps Why AgileProduct Delivery?*In order to achieve Business Agility, Enterprises must rapidly increase their ability to deliver innovative products and services. To be sure that the Enterprise is creating the right Solutions for the right Customers at the right time, they must balance their execution focus with a Customer focus.* **Focus on Customer Centricity with Design Thinking** Design Thinking is a clear and continuous understanding of the target market, Customers, the problems they are facing, and the jobs to be done. There are benefits to designing a product with a deep understanding of the customer's needs. **Benefits include:** ► Greater revenue ► Increased employee engagement ► More satisfied Customers ► Alignment to mission ► Better product resiliency and sustainability A diagram of a problem Description automatically generated How do you understand customers? Use Personas (Personas are characterizations of the people who might use your product.) What will Persona's covey? the problems end users are facing in context, and key triggers for using the product and will capture rich, concise information that inspires great products without unnecessary details. How do you Identify with Customers? By Use of Empathy Maps (The empathy map is a tool that helps teams develop deep, shared understanding of and empathy for the Customer). Use empathy map to design better user experiences and Value Streams. Empathy Maps answer the following questions: - Who are we empathizing with? - What do they hear, see, do and say? - What do they need to do? - What do they think and feel? **Use journey maps to design the end-to-end Customer experience** **Prioritizing the ART Backlog**Vision aligns everyone on the product's directionThe product Vision is a description of the future state of the product ► How will our product solve our **Customer\'s problems**? ► What **Features** does it have? ► How will it **differentiate** us? ► What **nonfunctional requirements** does it deliver? **Features represent the work for the Agile Release Train**► The Feature benefit hypothesis justifies **development costs** and **provides business perspective** for decision-making ► Acceptance criteria are typically defined during ART Backlog refinement ► Reflect functional and nonfunctional requirements ► Fits in one PI **Enablers build the Architectural Runway** Enablers define the existing code, hardware components, marketing guidelines, and other variables that enable near-term business Features. ► Enablers also build up the runway, including exploration, architecture, infrastructure, and compliance. ► Features consume the runway. ► The Architectural Runway must be continuously maintained ► Capacity allocation (a percentage of the train's overall capacity in a PI) is used for Enablers that extend the runway.  Features are implemented by StoriesStories are small increments of value that can be developed in days and are relatively easy to estimate ► Story user-voice form captures the end user's roles, activities, and goals ► Features fit in one PI for one ART; Stories fit in one Iteration for one team A screenshot of a question mark Description automatically generated Apply estimating poker for fast, relative estimating **Prioritize Features for optimal ROI**In a flow system, job sequencing is the key to improving economic outcomes. To prioritize based on Lean economics, we need to know two things: ► The cost of delay (CoD) in delivering value ► How long it takes to implement value  **Components of cost of delay include User-Business Value , Time Criticality , &** **Risk Reduction and OpportunityEnablement (RR&OE)** - **User-business Value** Relative value to the Customer or business They prefer this over that Revenue impact? Potential penalty or other negative impact? - **Time Criticality** How user/business value decays over time Is there a fixed deadline? Will they wait for us or move to another Solution? What is the current effect on Customer satisfaction? - Risk Reduction and Opportunity Enablement (RR&OE) What else this does for our business Reduce the risk of this or future delivery? Is there value in the information we will receive? Enable new business opportunities? A blue card with white text  **PI Planning** Planning Interval (PI) Planning is a cadence-based event that serves as the heartbeat of the Agile Release Train (ART), aligning all teams on the ART to a shared mission and Vision. ► Two days every 8--12 weeks (10 weeks is typical) ► Everyone plans together ► Product Management owns Feature priorities ► Development teams own Story planning and high-level estimates ► System Architect and User Experience (UX) work as intermediaries for governance, interfaces, and dependencies **The benefits of PI Planning** ► Establishing personal **communication** across all team members and stakeholders ► **Aligning** development to business goals with the business context, Vision, and Team/ART PI Objectives ► Identifying **dependencies** and fostering cross-team and cross-ART **collaboration** ► Providing the opportunity for just the right amount of architecture and Lean UX guidance ► Matching demand to capacity; eliminating excess work in process (WIP) ► Fast decision-making **Create alignment with PI Objectives** ► Objectives are business summaries of what each team intends to deliver in the upcoming PI ► Objectives often directly relate to intended Features in the backlog **Maintain predictability with uncommitted objectives** Uncommitted objectives help **improve the predictability** of delivering business value.► Uncommitted objectives are planned and aren't extra things teams do 'just in case they have time' ► They are not included in the commitment, thereby making the commitment more reliable ► If a team has low confidence in meeting a PI Objective, it should be moved to uncommitted ► If an objective has many unknowns, consider moving it to uncommitted and put in early spikes ► Uncommitted objectives count when calculating load **Addressing ART PI Risks**After all plans have been presented, the remaining ART PI Risks and impediments are discussed and categorized. **Make planning adjustments** ► Based o.n the previous day's management review and problem-solving meeting, adjustments are discussed ► Possible changes: -- Business priorities -- Adjustment to Vision -- Changes to scope -- Realignment of work and teams **ROAMing risks:** ► Resolved - Addressed, no longer a concern ► Owned - Someone has taken responsibility ► Accepted - Nothing more can be done, and if risk occurs, release may be compromised ► Mitigated - Team has plan to adjust as necessary **Confidence vote: Teams and ART** Once ART PI Risks have been addressed, a confidence vote is taken by each team and the ART. A screen shot of a computer Description automatically generated **4.4 Develop on cadence, release on demandManage the flow of work with the ART Kanban** **ART events drive the train** ART events create a closed-loop system to keep the train on the tracks.  **Art Sync are used to coordinate progress:** Coaches Sync and PO Sync. **Demo the full system increment every two weeks** ► Features are functionally complete or toggled so as not to disrupt demonstrable functionality ► New Features work together and with existing functionality ► Happens after the Iteration Review (may lag by as much as one Iteration maximum) ► Demo from a staging environment which resembles production as much as possible **Without the IP Iteration\...** ► Lack of delivery capacity buffer impacts predictability ► Little innovation and \'tyranny of the urgent\' ► Technical debt grows uncontrollably ► People burn out ► No time for teams to plan, demo, or improve together **Run a planning meeting retrospective**The PI Planning event will evolve over time. Ending with a retrospective will help continuously improve it. **Inspect and Adapt** This is a 3-4 hour event done every PI with Teams and Stakeholders as attendees. 3 Aspects of Inspect and Adapt include: - PI SYSTEM DEMO - QUANTITATIVE AND QUALITATIVE MEASUREMENT - PROBLEM-SOLVING WORKSHOP **ART performance reporting**Prior to or as part of the PI System Demo, teams review the business value achieved for each of their PI Objectives. ► Teams meet with their Business Owners to self-assess the business value they achieved for each objective ► Each team's planned vs actual business value is then rolled up to the ART Predictability Measure **Measure ART predictability**The report compares the actual business value achieved against planned business value. A diagram with a graph and a chart with text Description automatically generated with medium confidence **Building a Continuous Delivery Pipeline with DevOps** *Our highest priority is to satisfy the customer through early and continuous delivery of valuable software.* **---Agile Manifesto** The Continuous Delivery Pipeline (CDP) represents the workflows, activities, and automation needed to deliver new functionality more frequently. DevOps is used to maximize speed and stability. This means operations, compliance, development, Architecture, security and business are working together for speed and stability. The Continuous Delivery Pipeline (CDP) is a significant element of the Agile Product Delivery competency. ► Each ART builds and maintains, or shares, a pipeline. ► Organizations map their current pipeline into this new structure and remove delays and improve the efficiency of each step 4 Aspects of Continuous delivery Pipeline include Continuous exploration (understanding customer's needs), Continuous integration (A critical technical practice of the ART), Continuous deployment (getting to PROD early) and Release on Demand (Making value available when it's needed) **Decouple release elements from the total Solution** Decoupling the web farm functionality from the physical launch eliminates the need for a monolithic release. It also increases Business Agility by allowing the delivery of solution components in response to frequent market changes.  **Separate deploy from release** **► Separate deploy to production from release** **► Hide all new functionality under Feature toggles** **► Enables testing background and foreground processes in the actual production environment before exposing new functionality to users** **► Timing of the release becomes a business decision** **Value Stream Mapping** Start by Mapping the Current Workflow The first step to improving value flow is **mapping** **the current pipeline**. Focusing initially on new feature development. Over time, this map would be extended to capture any change to the system, from new features to maintenance to architectural improvements. Once the current pipeline has been mapped, metrics can be collected and recorded on the value stream map to understand where delays occur. These metrics enable the ART to identify opportunities for improvement (such as eliminating delays or reducing rework). Four primary metrics - **Active time** is the time it takes to complete work in any given step. For example, in Figure 4, the 'Design' step takes four hours. - **Wait time** is the time between steps when no work is happening. For example features accepted by the Product Manager are delayed a staggering 696 hours before being deployed to staging. Locating and eliminating excessive wait time is critical to improving the flow of value. - **Percent complete and accurate** (%C&A) represents the percentage of work that the next step can process without needing rework. Often, delays are caused by poor quality in the upstream (prior) steps. The %C&A metric helps identify steps where poor quality might be causing delays in value delivery **LESSON V** Exploring Lean Portfolio Management 5.1 Defining a SAFe portfolio 5.2 Connecting the portfolio to the Enterprise strategy 5.3 Maintaining the Portfolio Vision 5.4 Realizing the Portfolio Vision through Epics 5.5 Establishing Lean Budgets and Guardrails 5.6 Establishing portfolio flow At the end of this lesson, you should be able to: Learning objectives ► Describe the purpose and elements of a SAFe portfolio ► Construct well-written Strategic Themes ► Employ the portfolio canvas to describe the current and future state ► Create Epic hypothesis statements to inform the Vision ► Distinguish traditional and Lean budgeting approaches ► Construct a Portfolio Kanban **Defining a SAFe portfolio** A SAFe portfolio is a collection of development Value Streams. ► Each Value Stream builds, supports, and maintains Solutions ► Solutions are delivered to the Customer, whether internal or external to Enterprise. An Enterprise may have a single portfolio or multiple portfolios **Define the portfolio with the portfolio canvas** ► The portfolio canvas is a **template for identifying a specific SAFe portfolio** ► It defines the domain of the portfolio and other key elements The Portfolio canvas consists of: - First Row: Value streams, solutions, customer segment, **channels** in which value stream uses to reach customer, Budget, KPI ( measurement to evaluate performance of each Value Stream) - Second Row: Key \[Partners, Activities and Resources\] - Third Row: Cost Structure and Revenue Streams A screenshot of a business canvas Description automatically generated **Connecting the portfolio to the Enterprise strategy** Strategy and investment funding ensures that the entire portfolio is aligned and funded to create and maintain the Solutions needed to meet business targets.The Enterprise Executives, Business Owners and Enterprise Architects collaborate to do the following \- Connect the portfolio to Enterprise strategy \- Maintain a Portfolio Vision \- Realize Portfolio Vision through Epics -Establish Lean Budgets and Guardrails \- Establish portfolio flow What are some elements of Enterprise Strategy Formulation? - Vision, Mission, and Core Values - Enterprise Business drivers - Distinctive Competence - Financial goals - Competitive Environment - Portfolio Context (Portfolio Vision, Lean Budget Guardrails, Outcomes, Flow, Competency) - Portfolio Budgets - Strategic Themes How are Portfolios connected to Enterprise? With Strategic Themes Strategic Themes are differentiating business objectives that: ► Are a collaboration between LPM and the larger Enterprise ► Drive the future state of a portfolio ► Connect the portfolio to the Enterprise strategy ► Provide context for the Portfolio Vision and Lean budgeting Strategic Themes influence portfolio strategy and provide business context for portfolio decision making.  **Maintaining the Portfolio Vision** SWOT means Strength, Weaknesses, Opportunities and Threats. SWOT Establishes an understanding of the portfolio's strengths and weaknesses. Helps identify the most significant opportunities and potential threats. A TOWS analysis is used primarily for identifying strategic options to create a better future state. A SWOT analysis is a great way to uncover the current situation of your Value Stream, product, or portfolio A white rectangular box with black text  **Envision the future state** ► The portfolio canvas captures the current state ► Use SWOT and TOWS to brainstorm potential future states Express the future state as a Vision A long view: ► How will our portfolio of future Solutions solve the larger Customer problems? ► How will these Solutions differentiate us? ► What is the future context within which our Solutions will operate? ► What is our current business context, and how must we evolve to meet this future state? A screenshot of a postcard Description automatically generated **Realizing the Portfolio Vision through Epics** **What is a portfolio Epic?** ► An Epic is a significant Solution **development initiative**. There are two types: -- **Business Epics** directly deliver business value -- **Enabler Epics** support the Architectural Runway and future business functionality ► Portfolio Epics are typically cross-cutting, typically spanning multiple Value Streams and PIs. ► Epics need a Lean business case, the definition of a minimum viable product (MVP), an Epic Owner, and approval by LPM. Epics are initially described with the Epic hypothesis statement Epics are described with four major fields: ► Epic Hypothesis Statement - Describes the Epic in detailed terms, including the "for-who-the..." portion ► Business Outcomes - States the quantitative or qualitative benefits that the business can anticipate if the hypothesis is proven to be correct ► Leading Indicators - Describe the early measures that will help predict the business outcomes ► Nonfunctional Requirements (NFRs) - Identify any NFRs associated with the Epic **Establishing Lean Budgets and Guardrails** **Problem**: Cost-center budgeting: Traditional project-based, cost-center budgeting creates overhead and friction, and lowers velocity. **Solution:** fund Value Streams, not projects Funding Value Streams provides for full control of spend, with: ► No costly and delay-inducing project cost variance analyses ► No resource reassignments ► No blame game for project overruns **Each portfolio establishes a set of budget Guardrails** Guardrails describe portfolio-level budgeting, spending, and governance policies that: 1\. Ensure the mix of investments, balance near-term opportunities with long-term strategy and growth 2\. Balance the backlog of new Features with the need to continuously invest in the Architectural Runway 3\. Ensure large, significant investments (Epics) are approved appropriately 4\. Actively engage Business Owners to ensure the alignment of ART and portfolio priorities Lean Budget Guardrails include: - Guiding Investments by Horizon - Applying capacity allocation - Approving significant initiatives - Continuous Business owner engagement **Establishing portfolio flow** Manage Epic flow with the Portfolio Kanban ► Makes largest business initiatives visible ► Brings structure to analysis and decision-making ► Provides WIP limits to ensure the teams analyze responsibly ► Helps prevent unrealistic expectations ► Helps drive collaboration among the key stakeholders ► Provides a transparent and quantitative basis for economic decision-making **Lesson VI** Leading Change Keys to leading successful change The key to successfully navigating complex change is embodied in four critical principles that unlock the full power of the eight-accelerator methodology. **1 Management + Leadership** In order to capitalize on windows of opportunity, leadership must be paramount---and not just from one executive. It's about vision, action, innovation, and celebration, as well as essential managerial processes. **2 "Have to" + "Want to"** Those who feel included in a meaningful opportunity will help create change in addition to their normal responsibilities. Existing team members can provide the energy---if you invite them. **3 Head + Heart** Most people aren't inspired by logic alone, but rather by the fundamental desire to contribute to a larger case. If you can give greater meaning and purpose toyour effort, extraordinary results are possible. **4 Select Few + Diverse Many** More people need to be able to make change happen---not just carry out someone else's directives. Done right, this uncovers leaders at all levels of an organization; ones you never knew you had. Kotter's 8- Step Process for leading change : Create Build Form Enlist Enable Generate Sustain Institute. **Keys to leading successful change** 1\. Create a sense of urgency - Communicates the need for change and the importance of acting immediately 2\. Build a guiding coalition - Recognizes that a volunteer army needs a coalition of effective people to coordinate and communicate activities and guide the change 3\. Form a strategic vision - Identifies the opportunity that changing circumstances offer and motivates people to action 4\. Enlist a volunteer army - Recognizes that large-scale change can only occur when optimal numbers of people rally around a common opportunity 5\. Enable action by removing barriers - Engages the volunteer army to remove barriers to work across silos and generate real impact 6\. Generate short-term wins - Communicates visible successes as soon as possible to track progress and energize volunteers to persist 7\. Sustain acceleration - Promotes change until Vision is a reality 8. Institute change - Replace old habits and traditions with new behaviors and organizational success **Lesson VIII** **Establishing a Vision for change** **Reaching the tipping point for Agile at scale** ► To achieve effective change, every Enterprise must reach its 'tipping point'---the point at which the overriding momentum is to change, rather than to remain the same ► **Two primary reasons to change:** -- A **Burning platform**: The company is failing to compete, and the existing way of working is inadequate to achieve a new Solution in time -- **Proactive leadership**: In the absence of a burning platform, leadership must create the sense of urgency to proactively drive change by taking a stand for a better future state **Establish the Vision for the change** Clarify the purpose and direction for the change and set the mission for all to follow ► Motivate people by giving them a compelling reason to make the change ► Empower and align people to take the detailed actions necessary to achieve Vision, without the constant need for supervision Building a powerful guiding coalition The importance of a 'sufficiently powerful guiding coalition' ► Transformations led by a sole leader or a low-credibility committee rarely succeed ► There is a need for an effective team that has: \- Enough powerful people to drive change and deter blocks \- The expertise to make informed and quick decisions \- The credibility to be taken seriously \- Leaders who can set the Vision and leaders who can implement  What is the role of an SPC ? To accelerate Business agility, embody a Lean-Agile Mindset, Coaching Flow , implementing SAFe and Leading the Change. Organization and operation of the LACE (Lean-Agile Center of Excellence) ► A LACE typically operates as an exemplary Agile Team of four to six individuals per business unit ► A Scrum Master/Team Coach facilitates the process and helps remove roadblocks ► A Product Owner works with stakeholders to prioritize the transformation backlog ► A senior C-level leader typically acts as the team's Product Manager ► The team is cross-functional, consisting of credible individuals from various disciplines who can address backlog items wherever they arise, be they organizational, cultural, process, or technology Lesson IX **Designing the Implementation** 9.1 Identifying Value Streams and Agile Release Trains 9.2 Creating the implementation plan Why organize around value? ► Fewer handoffs, and faster value delivery ► Easier to build in quality ► Built-in alignment between the business and technology ► Optimizing the system as a whole ► Result: Faster delivery, higher quality, and higher Customer satisfaction **Value Streams in SAFe** 1. **Operational Value Streams** The sequence of activities needed to deliver a product or service to a Customer. Examples include manufacturing a product, fulfilling an ecommerce order, admitting and treating a patient, providing a loan, and delivering a professional service. 2. **Development Value Streams** The sequence of activities needed to convert a business hypothesis into a technology-enabled Solution that delivers Customer value. Examples include designing and developing a medical device, developing and deploying a CRM system, and an e-commerce web site. Effective Agile Release Trains are most efficient at about 50--125 people ► Dunbar's number - A suggested cognitive limit to the number of people with whom one can maintain stable social relationships ► Empirical evidence - Beyond 125 members, logistics and inter-team dependencies become more difficult, and alignment and governance become harder to achieve Guidelines for splitting a large Value Stream ► Focused on a holistic system, products, or set of services ► Long-lived, consistently delivers value over time ► Minimize dependencies with other ARTs ► Can release value independently from other ARTs **ART topologies** Stream-aligned ARTs are aligned to a single, valuable stream of work, empowered to build and deliver Customer or user value as quickly, safely, and independently as possible, without requiring hand-offs to other ARTs to perform parts of the work. Complicated subsystem ARTs are responsible for building and maintaining a part of the system that depends heavily on **specialist** knowledge, thereby reducing the cognitive load on other ARTs. Platform ARTs provide the underlying internal services required by stream aligned ARTs to deliver higher-level services or functionalities, thus reducing their cognitive load. **Creating the implementation plan** ► Vision without an action plan leaves people unmotivated ► A transformation Roadmap defines how to: -- Incrementally implement the transformation -- Inspect and adapt for course correction ► The ART rollout can be done [sequentially] or in [parallel] Lesson X **Launching an Agile Release Train** **Prepare to Launch an ART** No matter who leads, the more significant activities in preparing for the launch include the following: - Define the ART: The stakeholders use ART Canvas to identify the first value stream and ART were detailed. At that planning stage, the ART is defined with just enough detail to determine that it's a potential ART. However, the parameters and boundaries of the ART are left to those who better understand the local context - Set the ART launch date and cadence calendar : With the ART definition in hand, the next step is to set a date for the first [PI Planning](https://scaledagileframework.com/pi-planning/) event. This creates a forcing function, a 'date-certain' deadline for the launch, which will create a starting point and define the planning timeline. The PI calendar usually includes the following activities: PI Planning , System Demos , ART/Coach/PO sync events, Inspect and Adapt workshop. - Train ART leaders and stakeholders - Form Agile teams - Train Product Managers and Product Owners - Train Scrum Masters/Team Coaches - Train System Architects - Assess and evolve launch readiness - Prepare the ART backlog - Set the launch date: A forcing function is a commitment that forces a sequence of actions to happen. Use it to start your train. ► By scheduling the PI Planning event, you will create the timebox in which the preparation must happen. ► This will minimize the expansion of work during preparation. Not everything can (or needs to) be perfect. ► Assure people that the Inspect and Adapt Workshop creates a closed-loop system so that impediments can be made visible and addressed as soon as possible. - Use the SAFe PI Planning Toolkit: includes all the presentation slides, workbooks, and templates needed to guide an ART through these preparation activities and to facilitate a successful PI Planning event. ► ART Readiness Workbook ► PI Planning Overview and Briefings ► ART Backlog Workbook ► ART and Team Events Calenda ► Capacity Allocation Spreadsheet ► Facilitators Guide to PI Planning and more - Train ART leaders ► Launching the first ART is crucial, as it builds a framework to allow employees to apply the Vision to meaningful change ► Training the leaders helps them create the mindset they need to empower employees for further action ► Training gives stakeholders the skills and motivation they need to change the organization ► As a team of teams, the ART removes silos that inhibit flow - Assess and evolve launch readiness **The importance of the first PI Planning** ► First impression of SAFe ► Generates a short-term win ► Builds the ART as a team ► Teaches teams about assuming responsibility for planning and delivery ► Creates visibility ► Creates confidence in the commitment of Lean-Agile leaders to the transformation Lesson XI Coaching ART Execution **Coaching the train and the teams** You just finished the ART launch. Now showcase its success. Generating short-term wins ► The PI Planning event itself is a short-term win, as it creates clear commitment to goals ► Next, it's important to showcase that the ART is meeting its PI Objectives and relentlessly improving its ART performance ► Invite stakeholders and showcase the success of the Team Demos and System Demos, as well as the PI System Demo ► Communicate real wins, not gimmicks ► The first PI is the most crucial to lead with confidence and clarity, as existing team, ART, and organizational issues become visible ► You will provide ongoing ART consulting and team coaching to build the organization's Lean-Agile capabilities Team activities and events Team activities are opportunities to coach the team. ► Helping teams plan, execute, review, and retrospect the first Iterations ► Coaching new Scrum Masters/Team Coaches and Product Owners in their roles ► Initiating and supporting Agile technical practices ► Helping teams establish the infrastructure, practices, and culture needed for DevOps and the Continuous Delivery Pipeline ART activities and events **Coaching the ART typically starts with the essential roles and events:** ► Helping to build and maintain the Vision and Roadmap ► Helping define and manage the ART Kanban and ART Backlog ► Coaching Product Managers, System Architects, and RTEs in their roles ► Supporting frequent system-level integration, including the System Demo ► Participating in Coach Sync, PO Sync, and ART Sync meetings ► Helping to facilitate Inspect & Adapt and follow-up of backlog improvement items ► Supporting the System Team and others in building development and deployment infrastructure and automation ► Keeping focus on the Architectural Runway ► Supporting release management in the new way of working ► Supporting or delivering additional training ► Establishing communities of practice (CoPs) **Continuously improving ART performance with Inspect & Adapt** **Improving results with the Inspect & Adapt event** Three parts of Inspect & Adapt:PI System Demo, Quantitative and Qualitative Measurement and Problem solving workshop. ► Timebox: Three to four hours per PI ► Attendees: Teams and stakeholders **PI System Demo** ► At the end of the PI, teams demonstrate the current state of the Solution to the appropriate stakeholders ► Often led by Product Management, POs, and the System Team ► Attended by Business Owners, ART stakeholders, Product Management, RTE, Scrum Masters/Team Coaches, and teams ► Timebox: 45--60 minutes Team performance assessment All teams' PI Objectives were assigned a business value between 1 and 10 ► Review and rate your PI achievements: -- Consider how well you did against your stated objectives, including timeliness, content, and quality -- Rate performance on a scale between zero and the planned business value ► Average these across all objectives and give yourself a ART percent achievement score ► Suggested timebox: 45--60 minutes Team PI performance report The planned total does not include uncommitted objective points ► Actual total includes uncommitted objectives ► Percent achievement equals actual total divided by planned total ► A team can achieve greater than 100% (as a result of uncommitted objectives achieved) ► Effort required for uncommitted objectives is included in the load (i.e., not extra work the team does on weekends) ► Individual team totals are rolled up into the ART predictability report ART performance Metrics ► Collect and discuss any other ART Metrics that the team has agreed to collect ► Suggested timebox: 45--60 minutes **The problem-solving workshop overview** After a short retrospective, teams systematically address the larger impediments that are limiting velocity by using root cause analysis. **Pareto analysis:** Identify the biggest root cause ► Also known as the 80/20 rule, the Pareto analysis is a statistical decision technique used to narrow down the number of actions that produce the most significant overall effect ► It uses the principle that 20% of root causes can cause 80% of problems ► It is useful where many possible sources and actions are competing **Lesson XII** Enhancing the Portfolio 12.1 Launching more ARTs and Value Streams 12.2 Enterprise Solution Delivery 12.3 Establishing Agile portfolio operations 12.4 Establishing Lean governance 12.5 Planning for LPM implementation Approaches for launching more ARTs and Value Streams ► Leverage wins to launch more ARTs and scale the implementation ► Launch all ARTs in a Value Stream ► Move to the next Value Stream ► Celebrate short-term wins but don't declare victory too soon ► Keep urgency high ► Don't forget to support existing trains as you scale Collect data and manage impediments ► Number of practitioners on each ART ► Start and end date for each Kanban state ► Number of people trained ► Date of first PI Planning ► Date of second PI Planning ► ART Predictability Measure **Enterprise Solution Delivery** Why Enterprise Solution Delivery? Big systems require big investments, and their construction activities have inherent uncertainty and risk that can severely impact business objectives. Traditional systems engineering approaches are inadequate to address today's challenges and opportunities The Enterprise Solution Delivery competency describes how to apply Lean-Agile principles and practices to specification, development, deployment, operation, and evolution of the world's largest and most sophisticated software applications, networks, and cyber-physical systems. Enterprise Solution Delivery practices include **:** **Lean Systems Engineering** - Specify the Solution incrementally - Apply multiple planning horizons - Design for change - Frequently integrate the end-to-end Solution - Continuously address compliance concerns **Coordinating Trains and Suppliers** - Use Solution Trains to build large Solutions - Manage the supply chain - **Continually Evolve Live Systems** - Build an end-to-end Continuous Delivery Pipeline - Evolve deployed systems - Actively manage artificial intelligence/machine learning systemsSpecify the Solution incrementally ► Many systems require specifications for alignment and compliance ► Lower the specification batch size ► Replace big design up-front initiatives with Continuous Exploration **Apply multiple planning horizons**  **Design for change** ► Modular designs with defined interfaces support efficient change ► Allows ARTs and teams to independently evolve their designs ► Supports exploration of independent design sets (Set-Based Design) ► Enables frequent integration **Continuously address compliance concerns** - Build the Solution and compliance incrementally - Organize for value and compliance Release validated Solutions on demand - Build quality and compliance in Continuously verify and validate **Use Solution Trains to build large Solutions** ► Driven by the Solution Train Backlog and Roadmap ► Led by Solution Management, Solution Architect, and Solution Train Engineer ► Aligned by a common cadence and coordination activities Solution Train events coordinate ARTs throughout the PI A diagram of a company\'s workflow Description automatically generated **Manage the supply chain** ► Strive to have suppliers behave like ARTs, particularly strategic partners ► Aligned on the same cadence and driven by a shared Vision and Roadmap ► Partner relationships can vary as they may serve many Customers **Build an end-to-end Continuous Delivery Pipeline** ► Many large Solutions remain in use for decades ► Change the mindset from a big-bang Solution delivery followed by maintenance to delivering an MVP and evolving it **Establishing Agile portfolio operations** Agile portfolio operations ( VMO , LACE ,RTE , and Scrum Master) coordinate and support decentralized ART execution, enabling operational excellence. They Coordinate Value Streams, Foster Operational Excellence and Support ART Execution. The VMO supports portfolio operations and ART execution The Value Management Office (VMO) supports portfolio operations and ART execution, and its work includes: ►Facilitates the Portfolio Sync ► Works with the LACE to develop, harvest, and apply successful ART execution patterns across the portfolio ► Facilitates Lean budgeting and coordinates portfolio governance ► Fosters decentralized PI Planning andoperational excellence ► Fosters more Agile contracts and leaner Supplier and Customer partnerships Fostering operational excellence with the VMO ► Transitions themselves and the portfolio to new ways of working ► Participates in the SAFe rollout ► Helps cultivate and apply successful ART execution patterns across the portfolio ► Leads the move to objective Metrics and reporting ► Leads process excellence and supports RTE (and STE) and Scrum Master/ Team Coach CoPs **Establish LPM events** The effective operation of the LPM function relies on three significant events: ► Strategic portfolio review (Happens every PI) ► Portfolio Sync (Happens Monthly) ► Participatory Budgeting (q6months) **LPM events overview** **Strategic Portfolio Review** Focused on achieving and advancing the portfolio Vision Provides continuous strategy, implementation, and budget alignment Typically held once a PI, at least one month before the next PI Planning **Portfolio Sync** Focused on portfolio operations Provides visibility into how well the portfolio is progressing toward meeting its objectives Typically held monthly and may be replaced on a given month with the strategic portfolio review **Participatory Budgeting** Focused on establishing and adjusting Lean budgets Provides a forum for stakeholders to decide how to invest the portfolio budget across Solutions and Epics Typically held every two PIs **Lean governance:** Collaboration and responsibilities Lean governance manages spending, audit and compliance, forecasting expenses, and measurement. The people involved in this activity include: Enterprise Architect , VMO/LACE , Business Owners. They Forecast and budget dynamically, Measure portfolio performance and Coordinate continuous compliance. **Coordinate continuous compliance** A Lean-Agile quality management system (QMS) improves quality and makes compliance more predictable. Lean Portfolio Management establishes the portfolio groundwork ► This two-day course sets the groundwork for Lean Portfolio Management ► It offers the tools and techniques for: -- Aligning strategy with execution -- Merging the insights of executives, Product Management, Business Owners, and Agile Teams into a new, Lean-Agile way of working -- Establishing Lean Budgets and adjusting the budgets dynamically with participatory budgeting forums -- Guiding investments by horizon -- Sequencing and forecasting portfolio initiatives  **Lesson XIII** Accelerating Business Agility 13.1 Establishing Organizational Agility 13.2 Building a Continuous Learning Culture 13.3 Measure and Grow 13.4 Coaching Flow **Establishing Organizational Agility** Why Organizational Agility? Without Organizational Agility, Enterprises simply cannot respond sufficiently to the challenges and opportunities that today's rapidly changing markets present. Without it, employees and the Enterprises associate an individual's value with their functional skills, rather than business outcomes. The Organizational Agility competency describes how **Lean-thinking people** and **Agile Teams optimize their business processes**, evolve strategy with clear and decisive new commitments, and quickly adapt the organization as needed to capitalize on new opportunities. Organizational Agility has 3 parts : Lean- Thinking People and Agile Teams (Lean-Agile Mindset , Core Values and SAFe Principles) , Lean Business Operations ( Process and Delay Time) and Strategy Agility. **What is strategy Agility?** Strategy Agility is the ability to change and implement new strategies quickly and decisively when necessary and to persevere on the strategies that are working---or will work---if given sufficient focus and time. Ways you can achieve this is through Market sensing, Flow strategy changes to execution , Ignore sunk costs, and Change the network to meet changing mission demands **Market sensing** ► Conducting research using open and confidential sources ► Analysis of quantitative and qualitative data ► Direct and indirect user/ operator feedback ► Direct observation of Solutions/processes in real use **Ignore sunk costs** Sunk costs cannot be recovered or changed and are independent of any future costs that may be sustained. ► Because strategic decision-making affects only the future course of the mission, sunk costs are absolutely irrelevant. ► Instead, decision-makers should base all strategies solely on future costs. This way, strategy Agility provides the opportunity for the greatest economic benefit, without the need to defend past spending **Change the network to meet changing mission demands** **Building a Continuous Learning Culture** Why Continuous Learning Culture? In order to thrive in the current climate, organizations must evolve into adaptive engines of change, powered by a culture of fast and effective learning at all levels. Learning organizations leverage the collective knowledge, experience, and creativity of their workforce, Customers, supply chain, and the broader ecosystem. Continuous Learning Culture competency describes a set of values and practices that encourage individuals, and the Enterprise as a whole, to continually increase knowledge, competence, performance, and innovation. Building a continuous learning Culture through learning organization , relentless improvement , and innovative culture. A diagram of a learning organization Description automatically generated **Learning organization** ► Personal mastery - Build individual **"T-shaped"** breadth of knowledge in multiple disciplines for deep and broad expertise ► Shared Vision - Leaders envision and articulate exciting possibilities and invite others to contribute to a view of the future ► Team learning - Teams achieve common objectives by sharing knowledge, suspending assumptions, and 'thinking together' ► Mental models - Teams surface their existing assumptions and generalizations with an open mind to creating new models ► Systems thinking - Everyone recognizes that optimizing individual components does not optimize the system **Relentless improvement** The entire Enterprise as a system is challenged to improve continuously. ► A \'constant sense of urgency' - Drives improvement activities that are essential to the survival of an organization ► A problem-solving culture - Is the driver for continuous improvement ► Reflect and adapt frequently - Improvement activities are treated with as much urgency as new Feature development, fixing defects, and responding to the latest outage ► Fact-based improvement - Leads to changes guided by the data about the problem rather than conjecture or opinions ► Optimize the whole - Improvements increase the effectiveness of the entire system **Innovation culture** Leaders create an environment that supports creative thinking, curiosity, and challenging the status quo. ► Innovative people - Instilling innovation requires a commitment to cultivating courage and aptitude for innovation and risk-taking ► Time and space for innovation - Providing work areas conducive to creative activities; setting aside time to innovate ► Go see - Innovate by witnessing how Customers interact with Solutions and understanding their problems ► Experimentation and feedback - Conducting iterative experiments is the most effective path to learning ► Pivot without mercy or guilt - When fact patterns dictate that a hypothesis will be proven false, pivot quickly to a new one ► Innovation riptides - Innovation flows continuously up, down, and across the Enterprise **Establish communities of practice (CoP)** "Communities of practice are groups of people who share a concern, a set of problems, or passion about a topic, and who deepen their knowledge and expertise in this area by interacting on an ongoing basis." **Measure and Grow** **Outcome Metrics** **Do our solutions deliver the expected benefits to the business?** ► KPIs represent ongoing 'health' Metrics that can be used to measure overall business performance ► OKRs define the specific objectives that we are working towards in order to achieve future success **Objectives and key results (OKRs)** Three use cases for OKRs in SAFe: ► Enhancing strategic alignment across a SAFe portfolio ► Defining business outcomes for Epics and Lean business cases ► Setting improvement goals for the SAFe transformation Well-written OKRs can be effective in aligning individuals and teams to measurable outcomes Objectives: ► Inspirational ► Clear and memorable ► Committed or aspirational ► Doing work or improving work Objectives have two to five key results: ► Value-based ► Measurable ► Gradable **Flow Metric:** Provide insights into the efficiency of our delivery pipeline. Highlights opportunities for removing delays and increasing our speed and agility Flow Distribution: measures the amount of each type of work in the system over time. Flow velocity: Flow velocity measures the number of backlog items completed in a given timeframe. Flow time measures the elapsed time from when an item enters the system to the moment it is delivered to the Customer. Flow load indicates how many items are currently in the system. Flow efficiency measures how much of the overall flow time is spent in value added work activities vs. waiting between steps. Flow predictability measures how well teams, ARTs, and Solution Trains are able to plan and meet their PI Objectives. Competency Metrics How proficient is the organization in the practices that enable Business Agility? Organizations use the Seven Core Competency assessments to improve technical and business practices that support Business Agility ► Levels of proficiency can be compared against the 'worldwide index' and other organizations in your industry Measure competency: Business Agility assessment Set the improvement strategy with the Business Agility assessment ► Assess across all Seven Core Competencies ► Measure overall progress on the goal of true Business Agility ► Identify focus areas that would benefit from improvement activities ► Create a baseline for demonstrating progress ► Available in multiple languages Measure competency: Core competency assessments ► One assessment for each one of the Seven Core Competencies ► Assess at a greater level of detail to generate deeper insights ► Measure the progress being made toward a specific core competency ► Identify specific practices for potential improvement 13.4 Coaching Flow **Activities for coaching flow** 1.Facilitate Value Stream mapping 2\. Establish the Kanban systems 3\. Measure flow 4\. Apply the Eight Flow Accelerators 5\. Foster a flow mindset The Eight Flow Accelerators 1\. Visualize and limit WIP 2\. Address bottlenecks 3\. Minimize handoffs and dependencies 4\. Get faster feedback 5\. Work in smaller batches 6\. Reduce queue length 7\. Optimize time 'in the zone' 8\. Remediate legacy practices and policies Questions Multiple Choice Questions on ART Launch Why are short-term wins considered crucial during the ART launch phase? A\) They create immediate financial benefits. B\) They help build necessary momentum for long-term success. C\) They reduce the complexity of the ART structure. D\) They ensure compliance with external regulations. Which critical move in the SAFe Implementation Roadmap focuses on defining the organizational structure to support agile practices? A\) Create the Implementation Plan B\) Organize Around Value C\) Train Executives, Managers, and Leaders D\) Reach the Tipping Point When defining the ART, what is essential to ensure its effectiveness? A\) A rigid set of predetermined roles and responsibilities B\) The right blend of responsibilities among the selected team members C\) Complete independence from business owners D\) A focus solely on external stakeholders What role does the ART cadence play in the success of the initiative? A\) It allows for frequent changes in team composition. B\) It creates a predictable rhythm and stabilizes planning. C\) It eliminates the need for PI Planning events. D\) It encourages teams to work in isolation. In the context of ART, what is the \'forcing function\' referred to in the passage? A\) The need for constant team reorganization B\) The set date for the first PI Planning event C\) The requirement for stakeholder participation D\) The establishment of Agile teams What is the significance of assessing and evolving launch readiness in the ART context? A\) It guarantees a perfect launch outcome. B\) It identifies areas for improvement post-launch. C\) It ensures that all roles are filled before launch. D\) It determines the financial viability of the ART. Which role is primarily responsible for facilitating effective communication across Agile teams in an ART? A\) Product Owner B\) Scrum Master/Team Coach C\) Business Owner D\) System Architect What is indicated by the principle of \'one person--one team\' in Agile practices? A\) Each team should have multiple leaders. B\) Team members should not collaborate with others. C\) Every individual should belong to only one Agile team to enhance focus. D\) Team composition should be fluid and change frequently. The four team topologies recognized by SAFe aim to address what key challenge? A\) Reducing costs in team management B\) Enhancing team alignment and collaboration around value streams C\) Increasing the hierarchy within teams D\) Minimizing the need for training What constitutes a \'critical success factor\' for the roles of Product Managers and Product Owners in ART? A\) Their ability to manage their own teams without external input B\) Their collaboration in steering the ART and managing the backlog effectively C\) Their focus on technical skills rather than customer value D\) Their independence from Agile methodologies What is the primary learning outcome of the SAFe Product Owner/Product Manager course? A\) To teach financial forecasting B\) To improve team leadership skills only C\) To drive value delivery and manage backlogs effectively D\) To develop marketing strategies for new products Why is it suggested that teams should fill out an Agile team roster? A\) To track financial resources B\) To clarify roles and enhance visibility within the team C\) To limit communication among team members D\) To establish a rigid team structure What is the inherent risk of trying to achieve perfect readiness before launching the ART? A\) It may lead to increased costs. B\) It can delay learning and transformation benefits. C\) It guarantees a successful launch. D\) It fosters strong team cohesion. What does the term \'architectural runway\' imply in a Lean-Agile context? A\) A temporary structure for hosting meetings B\) The foundational architectural work necessary for future development C\) The physical space for Agile teams to collaborate D\) A set of guidelines for marketing new features In the SAFe framework, why is it essential for Scrum Masters/Team Coaches to receive training before the first PI? A\) To ensure they know how to manage project budgets B\) To prepare them for facilitating team events and improving flow C\) To teach them traditional project management techniques D\) To limit their roles to administrative tasks Answers 1. B 2. B 3. B 4. B 5. B 6. B 7. B 8. C 9. B 10. B 11. C 12. B 13. B 14. B 15. B **Coach ART Execution** **Multiple-Choice Questions** 1. **What is the primary purpose of the SAFe Implementation Roadmap series?** - A\) To provide financial guidelines for Agile teams. - B\) To outline a structured approach for implementing SAFe. - C\) To focus on individual team performance. - D\) To eliminate the need for training. 2. **How do SPCs (SAFe Practice Consultants) contribute to the success of newly formed ARTs?** - A\) By monitoring financial outcomes. - B\) By providing ongoing coaching and support for Agile practices. - C\) By enforcing strict compliance with traditional practices. - D\) By managing project timelines exclusively. 3. **What does the phrase \"knowledge does not equal understanding\" suggest about Agile training?** - A\) Training is sufficient for immediate success. - B\) Understanding and practical experience are essential for effective Agile practices. - C\) Knowledge is irrelevant in Agile environments. - D\) Training should focus solely on theory. 4. **Which of the following is a key focus area for team coaching in Agile environments?** - A\) Financial metrics - B\) Mastering team-level SAFe roles and events - C\) Limiting stakeholder input - D\) Individual performance assessment 5. **What is the significance of Iteration Retrospectives in the Agile process?** - A\) To finalize project documentation. - B\) To review team practices and identify areas for improvement. - C\) To assess financial outcomes only. - D\) To create a competitive atmosphere among teams. 6. **Which software engineering practices are highlighted as essential for Agile Teams?** - A\) Waterfall methodology - B\) Test Driven Development and Continuous Integration - C\) Traditional project management techniques - D\) Solely focusing on documentation 7. **What role does the Agile Product Management course play in SAFe?** - A\) It focuses solely on technical skills. - B\) It prepares teams for market strategy and customer-centric solutions. - C\) It eliminates the need for product vision and strategy. - D\) It reinforces outdated practices. 8. **What is the primary goal of the Inspect and Adapt workshop?** - A\) To focus on individual performance reviews. - B\) To collaboratively assess performance and identify improvement areas. - C\) To eliminate team autonomy. - D\) To prioritize financial outcomes. 9. **How do SPCs facilitate the Inspect and Adapt process?** - A\) By dictating outcomes without team input. - B\) By guiding teams in collaborative problem-solving and performance assessment. - C\) By managing financial outcomes only. - D\) By limiting discussions to technical aspects. 10. **What does the passage suggest about the future of the first ART after its launch?** - A\) It will revert to traditional methods. - B\) It will continue to evolve and adapt based on feedback and learning. - C\) It will prioritize documentation over collaboration. - D\) It will limit interactions with stakeholders. 11. **What is implied about the relationship between Lean-Agile principles and modern software engineering?** - A\) They complicate the development process. - B\) They enhance the speed and quality of software delivery. - C\) They are irrelevant to contemporary practices. - D\) They should not be integrated into traditional methods. 12. **How does the passage define the concept of \"Continuous Delivery Pipeline\"?** - A\) A fixed process that does not allow for adaptations. - B\) A framework for delivering validated features into production. - C\) A method for evaluating team performance. - D\) A series of meetings to discuss project updates. 13. **What is the significance of the Agile Software Engineering course mentioned in the passage?** - A\) To provide a theoretical understanding of Agile principles. - B\) To accelerate the development of critical software engineering disciplines. - C\) To limit team interactions with stakeholders. - D\) To emphasize individual contributions over team efforts. 14. **Which tool is highlighted as a primary resource for SPCs when enhancing ART capabilities?** - A\) Traditional project management tools - B\) Value Stream Mapping - C\) Individual performance metrics - D\) Compliance regulations 15. **What does \"whole product thinking\" emphasize in the context of SAFe?** - A\) Individual contributions over team efforts. - B\) The importance of understanding customer needs and delivering comprehensive solutions. - C\) Limiting stakeholder involvement in product development. - D\) Creating a rigid team structure. **Answers** 1. B 2. B 3. B 4. B 5. B 6. B 7. B 8. B 9. B 10. B 11. B 12. B 13. B 14. B 15. B Launch More ARTs and Value Streams **Challenging Multiple-Choice Questions** 1. **Which of the following best describes the primary purpose of launching additional Agile Release Trains (ARTs) after the initial one?** - A\) To reduce the time-to-market for products. - B\) To foster a culture of collaboration and continuous improvement. - C\) To centralize decision-making and control. - D\) To enforce strict compliance with existing processes. 2. **What impact does the success of the first ART have on organizational buy-in for Agile practices?** - A\) It creates skepticism and resistance in other departments. - B\) It necessitates a re-evaluation of leadership roles. - C\) It builds a solid foundation for broader acceptance of Agile across the organization. - D\) It leads to a temporary interest that fades over time. 3. **In what way does the Lean-Agile Center of Excellence (LACE) contribute to sustaining Agile practices?** - A\) By eliminating the need for any further training. - B\) By providing coaching and resources tailored to specific team needs. - C\) By mandating a one-size-fits-all approach to Agile implementation. - D\) By focusing solely on financial metrics and outcomes. 4. **Why is it critical to develop a clear Solution Intent when working on large solutions?** - A\) It simplifies the development process by limiting scope. - B\) It ensures alignment across teams and stakeholders on objectives and outcomes. - C\) It reduces the communication overhead among teams. - D\) It prioritizes technical specifications over user needs. 5. **What is the most significant benefit of establishing a guiding coalition in the transformation process?** - A\) It empowers a select few leaders to make decisions. - B\) It focuses exclusively on operational tasks. - C\) It helps in managing change resistance and fosters ownership among stakeholders. - D\) It ensures that all voices are heard equally. 6. **How can organizations effectively address the challenges of implementing Agile practices across multiple value streams?** - A\) By centralizing all decision-making at the upper management level. - B\) By recognizing the unique context and needs of each value stream and adapting accordingly. - C\) By applying the same strategy used for the first ART to all others. - D\) By limiting the number of ARTs launched at any given time. 7. **What approach can be taken to manage the increased demand for changes following the success of an ART?** - A\) By allowing all requests to be processed without prioritization. - B\) By creating a formalized intake process to assess and prioritize new ART requests. - C\) By pausing new initiatives until existing ones are fully completed. - D\) By implementing changes rapidly without stakeholder feedback. 8. **In the context of the SAFe framework, what does the \"Sustain and Improve\" phase focus on?** - A\) Reducing the number of ARTs in operation. - B\) Streamlining communication across all departments. - C\) Completing the transformation process and moving back to traditional methods. - D\) Continuously enhancing processes and practices to maximize value delivery. 9. **What is the role of SPCs (SAFe Program Consultants) in the context of Agile transformation?** - A\) To implement all Agile changes top-down without team input. - B\) To provide training and coaching to empower teams and leaders in Agile practices. - C\) To manage the operational aspects of each ART independently. - D\) To focus on compliance and regulatory issues exclusively. 10. **How does a focus on \"Whole Product Thinking\" enhance the SAFe implementation process?** - A\) It narrows the focus to technical execution and deadlines. - B\) It ensures that all aspects of customer needs are considered in product development. - C\) It limits collaboration with external partners. - D\) It prioritizes cost-cutting over user experience. 11. **Why is the \"Big Visible Information Radiator\" (BVIR) crucial in Agile environments?** - A\) It allows for detailed financial tracking of projects. - B\) It enhances visibility of progress and fosters accountability among teams. - C\) It focuses on individual performance metrics. - D\) It replaces regular status meetings. 12. **What challenges does regulatory compliance introduce to large solutions in a SAFe environment?** - A\) It simplifies team collaboration. - B\) It requires additional layers of documentation and alignment. - C\) It decreases the focus on customer feedback. - D\) It limits the need for cross-team coordination. 13. **In the context of transformation, how should organizations approach legacy processes?** - A\) By entirely discarding them without consideration. - B\) By reinforcing them as the standard operating procedure. - C\) By integrating Lean-Agile principles to modernize their relevance. - D\) By ignoring them to focus solely on new initiatives. 14. **What is a critical outcome of a successful SAFe implementation?** - A\) A temporary increase in profits. - B\) A shift away from customer-centric approaches. - C\) Establishing a sustainable culture of Agile practices. - D\) A return to pre-Agile management methods. 15. **What does the principle of \"Inspect and Adapt\" signify in the context of ARTs?** - A\) Focusing solely on compliance issues. - B\) Emphasizing continuous improvement based on feedback and data. - C\) Adhering strictly to the original plan. - D\) Limiting changes to financial aspects only. 16. **In what scenario is a large solution vision most necessary?** - A\) When the focus is solely on individual team performance. - B\) For complex projects that require coordination among multiple ARTs. - C\) When all stakeholders are in complete agreement. - D\) When dealing with simple, straightforward projects. 17. **Why is patience emphasized during the SAFe transformation journey?** - A\) Because lasting change takes time and continuous effort. - B\) To allow for immediate results without thorough analysis. - C\) To minimize the need for stakeholder involvement. - D\) To focus solely on financial returns. 18. **What function does the Solution Train serve in managing large solutions?** - A\) To limit the number of stakeholders involved. - B\) To eliminate the need for compliance checks. - C\) To coordinate efforts across multiple ARTs for complex solutions. - D\) To focus on individual team outcomes. 19. **What role does organizational culture play in the success of SAFe implementation?** - A\) A supportive culture is essential for sustaining Agile practices. - B\) It is irrelevant to the transformation process. - C\) Culture can remain unchanged if processes are followed. - D\) Culture only impacts financial outcomes. 20. **Why is it important to engage local representatives in the guiding coalition?** - A\) To ensure that diverse perspectives are included in decision-making. - B\) To centralize authority and control. - C\) To diminish communication about the transformation. - D\) To focus purely on operational tasks. 21. **What potential difficulties might arise when launching multiple ARTs simultaneously?** - A\) Improved clarity and communication among teams. - B\) Challenges in managing change capacity and stakeholder expectations. - C\) Simplified operational processes. - D\) Uniform adoption of SAFe principles across the board. 22. **How can the SAFe Implementation Railway improve communication during transformation?** - A\) By providing clear visual indicators of progress and issues. - B\) By focusing solely on financial metrics. - C\) By eliminating the need for stakeholder involvement. - D\) By standardizing all processes across departments. 23. **What is the significance of training additional SPCs during the transformation process?** - A\) To support ongoing coaching and maintain momentum in Agile practices. - B\) To reduce the number of teams involved. - C\) To focus solely on compliance with regulations. - D\) To limit the scope of transformation initiatives. 24. **How should organizations approach the launch of additional value streams?** - A\) As a way to immediately reduce costs. - B\) As a straightforward replication of previous efforts. - C\) As a complex endeavor requiring tailored strategies for each context. - D\) As an unnecessary step in the transformation process. 25. **What does \"confidence earned with the first ART\" suggest about future initiatives?** - A\) It guarantees success across all future initiatives. - B\) It establishes a foundation for broader acceptance of Agile practices. - C\) It minimizes the need for ongoing training and support. - D\) It simplifies the transformation process significantly. **Correct Answers** 1. **B** 2. **C** 3. **B** 4. **B** 5. **C** 6. **B** 7. **B** 8. **D** 9. **B** 10. **B** 11. **B** 12. **B** 13. **C** 14. **C** 15. **B** 16. **B** 17. **A** 18. **C** 19. **A** 20. **A** 21. **B** 22. **A** 23. **A** 24. **C** 25. **B** Organizational Agility and Continuous Learning Culture 1. **How does embracing a culture of failure and experimentation contribute to organizational agility, and what barriers might prevent this acceptance?** - A\) It fosters innovation; barriers include fear of repercussions. - B\) It leads to chaos; barriers include strict policies. - C\) It improves efficiency; barriers include lack of resources. - D\) It solely increases profits; barriers include management resistance. 2. **In what ways can the principles of Lean thinking be applied beyond manufacturing and into creative and service-oriented industries?** - A\) By focusing only on cost reduction. - B\) By enhancing collaboration and customer feedback. - C\) By limiting flexibility in processes. - D\) By maintaining traditional management structures. 3. **What are the potential risks of decentralizing decision-making, and how can organizations effectively mitigate these risks while fostering autonomy?** - A\) Increased misalignment; through clear communication. - B\) Slower decision-making; through more strict oversight. - C\) Lack of accountability; through detailed reporting. - D\) Enhanced creativity; through rigid guidelines. 4. **How can organizations balance the need for quick responses to market changes with the importance of strategic planning and long-term vision?** - A\) By prioritizing short-term gains over long-term goals. - B\) By integrating continuous feedback into strategic plans. - C\) By avoiding any changes to the original strategy. - D\) By delegating all decisions to lower-level teams. 5. **What role does leadership play in fostering a continuous learning culture, and how can leaders model the behaviors they want to see in their teams?** - A\) Leaders should maintain authority and control. - B\) Leaders should encourage open communication and feedback. - C\) Leaders should focus solely on results. - D\) Leaders should avoid taking risks. 6. **In an Agile environment, how can organizations ensure that their metrics for success align with customer value rather than internal processes?** - A\) By focusing on internal efficiency metrics only. - B\) By incorporating customer feedback into performance indicators. - C\) By prioritizing financial metrics above all else. - D\) By standardizing all processes uniformly. 7. **How can organizations identify and eliminate non-value-creating activities in their processes, and what challenges might they face in doing so?** - A\) By conducting regular audits; challenges include resistance to change. - B\) By relying on employee suggestions; challenges include lack of expertise. - C\) By implementing new technologies; challenges include costs. - D\) By ignoring existing processes; challenges include confusion. 8. **What strategies can be employed to cultivate a mindset of relentless improvement among employees, and how can resistance to change be addressed?** - A\) By imposing strict deadlines; resistance can be ignored. - B\) By offering training and support; resistance can be addressed through dialogue. - C\) By eliminating all existing processes; resistance can be minimized by avoiding discussions. - D\) By focusing solely on top-down directives; resistance can be dismissed. 9. **In what ways can Agile HR practices transform the relationship between employees and the organization, and what impact might this have on employee engagement?** - A\) By emphasizing compliance; engagement may decline. - B\) By fostering autonomy and value recognition; engagement may increase. - C\) By maintaining traditional roles; engagement may remain the same. - D\) By limiting feedback opportunities; engagement may fluctuate. 10. **In what ways can communities of practice enhance innovation within an organization, and how can they be structured to maximize their effectiveness?** - A\) By isolating teams; effectiveness can be maximized by reducing interactions. - B\) By promoting collaboration and knowledge sharing; effectiveness can be maximized by offering resources. - C\) By focusing solely on project outcomes; effectiveness can be maximized by limiting participation. - D\) By enforcing hierarchical structures; effectiveness can be maximized by maintaining control. **Answers** 1. **A** 2. **B** 3. **A** 4. **B** 5. **B** 6. **B** 7. **A** 8. **B** 9. **B** 10. **B**