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Fact or Fiction:

ERP Projects Can Be Delivered Using Agile

August 10, 2011

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2011 Genesis Consulting Partners, LLC and/or its affiliate(s) (Unpublished). All rights reserved. The LSAP and ISAP methodology
is a component of Genesis Consulting Partners, LLC implementation content and contains processes, templates and techniques
used to deliver Genesis Consulting Partners, LLC services.

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Contents

Introductions
Our Vision
A Lean and Agile Approach to ERP
Addressing the Challenges of Agile ERP
Agile ERP Customer Case Study
Delivery Models for Agile ERP
Key Lessons Learned

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Jason Fair, CEO
More than 20 years of industry experience, 18 years specializing in implementing ERP
technologies. Industry experience includes: Commercial, Consumer Products, Retail ,
Aerospace and Defense, Healthcare, Federal, Department of Defense, Intelligence Community,
State and Local Government and Higher Education
Former Managing Director/Partner for SAP Solutions at BearingPoint leading a North American
practice with over $250M in revenues and over 350 dedicated SAP consultants
Program Manager for a $280M SAP implementation with over 250 team members. Deployed
SAP solutions to over 30,000 users at 126 sites worldwide
Recently led the delivery of a Lean Agile implementation to deliver enterprise solutions to
25,000 users. Leveraging Agile techniques, delivered the project ahead of schedule and
increased the SAP teams performance by over 250%
Nationally recognized as a thought leader in the Agile community driving new concepts for a
Lean Agile ERP implementation approach.
Certified SAP Consultant, Certified Project Management Professional (PMP), Certified Scrum
Master (CSM) , Certified Public Accountant (CPA), U.S. Government Top-Secret Clearance
Regular speaker at SAP, ASUG, Agile Alliance and various industry conferences.
In spare time, training for various triathlon, running and cycling races.

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Genesis Consulting Services
We specialize in delivering the following services:
SAP Technology:
Strategy and Planning
Project Management
Systems Integration and SAP Consulting
Lean Agile SAP
Data Management
Organizational Change Management
Business Process Management
Enterprise Performance Management

Certified small business in the Commonwealth of Virginia


and registered with the Small Business Administration
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Genesis Consulting - Our Vision
Deliver Value Consistently - Focus on Value Based Delivery
Challenge the Status Quo and the Way we have always
done it.
Introduce concepts of Lean and Agile to instill a culture of
continuous improvement
Evaluate where in the Lean and Agile adoption cycle an
organization is and help them become more Agile
Coach organization leaders on enterprise adoption of Lean
and Agile

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Who is in the Audience?

How many people work for an organization that has an


ERP system or COTS?

How many people have worked on an implementation


project for these software applications?

How many people have implemented a project for


these applications using Agile?

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Fact or Fiction?

Describe a key challenge that an ERP project faces using


Agile.

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A Lean and Agile Approach to ERP

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Waterfall vs. Agile
Delivering Incremental Value
Waterfall
Project Prep
Blueprint
Realization
Final Prep
Go-Live/Support

Sprint 1 Sprint 2 Sprint 3 Sprint 4 Sprint 5 Sprint 6 Sprint 7 Sprint 8

2 wks 2 wks 2 wks 2 wks 2 wks 2 wks 2 wks 2 wks

AGILE

Release #1 Release #2 Release #3

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Application Development vs. ERP

Feature Sets versus Process Sets


Not necessarily promoting code to production after each sprint
Coding vs. Configuration
Complexity of Business Requirements
Diverse set of skills required to complete ERP Process Sets
Introduction of integration sprints
Concurrent Support teams with dependencies
Systems Administration
Security
Organizational Change
Quality Assurance / Testing
Training / Deployment

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Challenges in Applying Agile to ERP
A new way to manage projects
Makes all the dysfunction in a team or organization visible
Bad products will be delivered sooner, and doomed projects will fail faster
People may follow the mechanics but not the values of Agile
People are most comfortable with what they know
ERP project team members have an attachment to Waterfall development
Lack of incentive to increase speed to delivery
ERP solutions are all encompassing
Environment includes development, proprietary programming system/language, a run
time environment, a source code control system
Integrated end-to-end business process that are difficult to decompose
ERP configuration is NOT programming
Managing dependencies and sequencing of stories, tasks, activities
Management of development objects integrated with Sprint delivery
Integrating off-shore development

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Addressing the Challenges of Agile Adoption

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Addressing the Challenges of ERP Agile Adoption

Assessing Agile Readiness


Tailor the approach to the Adoption Lifecycle
Identify the case for change
Identify a Champion for Agile
Change in Roles and Responsibilities
Select the right first project - demonstrate success
Set realistic expectations of delivery
Build a GREAT backlog
Integrate Organizational Change Management

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Agile Readiness -
Is your Organization Ready for Agile?
Project Characteristics Project Resources
Requirements Team size
Effort/Duration Resource Dedication
Interfacing Systems (3 or less) Technology / Business Domain
Regulatory Compliance knowledge
Project Inter-dependencies Collaboration
Collocation
Sponsor Characteristics
Testing automated
Sponsor buy-in
Sponsor time commitment Agile Awareness and Acceptance
Training for Agile Training at all levels
Periodic Validation Ability to apply agile techniques for all
End User Adoption aspects of the project
Coaches are available do not do it
alone

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INNOVATION.0 10..COOKBOOK

Relative Score
CATEGORY 0 => "INNOVATION" "COOKBOOK" <= 10
1<---->10
Requirements are very well defined. Customer is able to
Requirements are ill defined, uncertain and/or constantly open
Requirements - Definition 0 to change per team and customer.
communicate them clearly. Time is available at the start of the
project to create documentation.

Change 0 Scope changes frequently. Scope is relatively stable.

Little or no experience with this type of project in the past. Technology or business process is mature. Project methodology
Experience 0 Relatively new technology or business process. is already established and consists of repetitive tasks.

Project teams cannot be dedicated 100% to one project.


Resources - Dedication 0 Project team resources can be 100% dedicated to the project.
Resources are spread across different projects and tasks.

Resources - Physical Location 0 Project team resources are co-located. Project Teams resources are not co-located.

Customer involvement is intermittent at best, usually at


Customer is available to be involved on a consistent and
Customer - Involvement 0 regular basis.
requirements definition and sign off, scope verification and
user acceptance upon completion.

Customer requires a project completion delivery date early on


Customer - Timelines 0 Customer does not require end date for all deliverables.
in the engagement.

Documentation 0 Minimum documentation is acceptable. Rigorous and detailed documentation is required.

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Requirements / Backlog Decomposition
Process Level 1 / 2*
Release i.e. work stream and/or core
functionality

Theme 1 Theme
Process Level 2
i.e. Sales Order Process

Theme 2
Epic 1 Blueprint Document level
Theme Epic 1 i.e. BPxxx_Services_Order_Process
n (aka. Feature)
Epic 2 Detailed Requirement /
Story 1 Story 1 Process Step level
i.e. Create Services Order
Epic n Story 2
Task 1 Task 1
Maintain an iterative process of analysis to
Story n Task 2
continually refine and decompose Unit of Work
Requirements into discrete units of work Task n i.e. BPxxx_B_001
Level of Effort (LOE) estimates are *May be a Business
Requirement,
iteratively refined as decomposition reveals
RICEFW,
new information (gaps, complexities, Configuration, etc
redundancies, etc)

17
Story Mapping *
Represents business process flow and steps with tasks and activities
Discuss the steps of the process with candidate users
Record tasks as they say them
Rearrange tasks and insert tasks as you clarify the big story
Add activities as you identify them from discussion
activity

time
task
necessity

sub-tasks or
task details

For a user to successfully engage in this activity, is it necessary they


perform this task? If its not absolutely necessary, how critical is it?

* From Jeff Patton at Agile Product Design

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Story Mapping * Release Planning

time
necessary
first release
less
optional second release
priority

more third release


optional
Choose coherent groups of features that consider the span of business
functionality and user activities
Support all necessary activities with the first release
Improve activity support and add additional activities with subsequent
releases
* From Jeff Patton at Agile Product Design

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Story Mapping

User Story Mapping is an approach to Organizing and


Prioritizing user stories

* From Jeff Patton at Agile Product Design

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Agile ERP Customer Case Study

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OCPS Proof of Concept

Orange County Public Schools 10 year SAP customer


Full SAP suite of applications (FI/CO, MM, HR/Payroll, etc.)
Active production support team
Portfolio of on-going continuous improvement projects
Developed Lean Agile SAP Proof of Concept with Genesis
Selected Performance Management Project
Defined scope, selected resources
Legislative mandate to automate performance appraisals by 3/1/2009
3 weeks behind schedule before Lean Agile SAP
Implement EP and Performance Appraisals

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POC Approach
Raise OCPS Lean Agile Awareness
Just-In-Time training
Frequent demonstration of completed product to customer
All-Hands demonstration of Scrum Technique
High visibility of project health via information radiators

Led Team through First


Awkward Use
Utilized a seasoned Lean Agile
Master Coach to mentor team,
customer and management
Hands-on demonstration of
disciplines, techniques and tools

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Project Team Training

Certified Scrum Master Training


Advanced Project Management training
for PMO Program and Project Managers,
Business Managers and Project Coordinators
Team Training
Lean-Agile Orientation Iteration Planning and Tasking of Work
Release Planning Effective Daily Stand-ups
Scope Confirmation Sprint Close-out and Performance Data
Team Roles Collection
Story Telling and Documentation Uncovering Root Cause of Barriers
Project/Release Backlog Creation Applying Improvements
Leadership training

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Lean Agile to Manage SAP Initiatives

Visual
Management
approach
Promotes self-
management
Transparency of
assigned work
Facilitates
teamwork and
cross-training
Immediate
knowledge of
project status

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POC Results
Completed project 1 week ahead of schedule
Team realized a 200% increase in productivity and efficiency
Project validated that customer needs evolve
Scope Changes
20% Adds
18% Drops
Process validated Lean Agile processes are adaptive
Team was not disrupted by the scope changes
Team adapted to change in just 4 sprints
Customer, Team Members and Project Management
Confirm empirical evidence is better that Progress Reports
Scrum planning events free up significant time for teams to focus on
Value Add work
Work products completed significantly faster
Team habits have changed becoming Lean Thinkers
OCPS now deploying Lean Agile approach across portfolio of SAP Projects

Change is an Asset and Not a Liability


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Customer Testimonials
"Having the business decision-makers in the room to answer my questions in a timely manner,
as well as to make decisions right when I needed them, was very powerful. In the past seven
days, I saved one weeks worth of work." SAP Developer
This team was able to get three weeks worth of work done in just one week by using this
Lean Agile SAP approach." Business Process Specialist
"By being collocated there is a higher awareness of each of the team members'
contributions towards the project's common goal. This has helped us as a project team have
clearer communication on levels we dont normally have" NetWeaver Analyst
"Post production support will be much easier and quicker, because the support people have
been involved from the beginning and truly understand what we will be delivering on go-
live" Business SME
"This process requires that we demonstrate our work every few weeks. The project
stakeholders are now so much more informed about what we are doing, and the business
is more prepared for what we will be delivering to them when we go live." Configuration
Analyst
"I was just so impressed. Everyone was so happy and proud when they demonstrated their
work to the stakeholders after each iteration" Project Manager
Before this process, I was uncertain how this project would get done in time. Now I am
comfortable that we will get it done in time. Business SME

SAP project teams are realizing up to 200% increase in productivity and efficiency.
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Expanding Lean Agile to
Manage SAP Operations

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A New Process Evolves
To stay productive
Portfolio
these activities must
Planning
be ready to request
Portfolio
Blue Print Backlog of work Just-in-Time
of Work Customer
Valued Stories

Product
Customer Escalated Council Approved
Care Problem Stories/Release
Plan
Capacity Stats
Power
Service User Expediter Business Realization
Request
Business
Urgent Solutions
Break Request
Fix to Fix

Independent Test
The Lean Agile Team
performs work here Validated
Production
Ready

Deploy

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ERP Customer Adoption of Agile

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Survey Results from Agile Product Teams & Mgt

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Survey Results from Agile Product Teams & Mgt

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Agile Metrics FY2010

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Delivery Models for Agile ERP

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Agile ERP Delivery Models

Lean Approach
Iterative Waterfall
Waterfall PlanningAgile Delivery
Agile Iterations
Lag Teams
Scrum of Scrums

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Lean and Kanban
Reducing waste in the project
Focus on Customer Value Add
activities
Focus on Continuous Improvement

Introducing the Concept of Flow of


Work and WIP
Streamline Governance
Reduce documentation

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Agile ERP Lessons Learned

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12 Key Lessons Learned

1. Be flexible in creating a model that works for the culture of the


organization
2. Consider varying steps of adoption
3. Find the Champion
4. Select the right first project Not all projects are good
candidates for Agile
5. Train the team at all levels
6. Develop a Product Council that is willing to work

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12 Key Lessons Learned

7. Find the right Product Owner


8. Focus on Team Work over mechanics
9. Collaboration over co-location
10. Building the Backlog Story Mapping and Stories
11. Set rules of engagement for the team
12. Selecting the right metrics and the right reporting tools

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Success Factors for an Agile SAP Team
Establish Buy-In to the process at all levels
Start with something that can deliver a quick win Establish
Confidence
The Art of Storytelling
Do not be discouraged at the moment of First Awkward Use
Integrating members of team that are not co-located
Ability to remove impediments
Manage the flow of work
Establish a process and framework that works best with your
culture, resources, and environment
Continuously update process and framework Learn and
Adjust

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Connect with Genesis Consulting
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jason fair mary fowlkes
CEO Managing Partner

5207 Hickory Park Drive, Suite E 5207 Hickory Park Drive, Suite E
Glen Allen, VA 23059 Glen Allen, VA 23059

e | jason.fair@genesisconsulting.com e | mary.fowlkes@genesisconsulting.com
t | 804.523.8007 t | 804.523.8007
w | www.genesisconsulting.com w | www.genesisconsulting.com

richard dolman
Director of Lean and Agile Solutions

5207 Hickory Park Drive, Suite E


Glen Allen, VA 23059

e | richard.dolman@genesisconsulting.com
t | 804.523.8007
w | www.genesisconsulting.com

To contact me after my presentation, text YCM to INTRO (46876)

Genesis Consulting, LLC 44 www.genesisconsulting.com


Visit our website at:
www.genesisconsulting.com

Genesis Consulting, LLC www.genesisconsulting.com