A Tale of Two Transformations：Bringing Lean and Agile Software Development to Life

There are many books that seek to explain Lean and Agile software that offer theory, techniques, and examples. Michael Levine’s first book, A Tale of Two Systems, is one of the best, synthesizing Lean manufacturing and product development with agile software concepts in an engaging business novel. However, there has been precious little practical guidance for those seeking to change existing organizations to become Lean and Agile, until now. Mr. Levine has followed the successful approach of A Tale of Two Systems, telling two simultaneous intertwined and contrasting stories, to bring organizational transformation to life.
Mary O’Connell and James "Wes" Wesleyan, recently engaged to be married, share a commitment to Lean and Agile Software. They have recently become leaders in two very different companies – one, stuck in a slow-moving, unresponsive, process-driven quagmire of a software culture; the other, struggling through the chaos of a sales-driven, process-less swirl. Together with their wise mentor, Neville Roberts, they identify two approaches to making needed changes: Drive People (a top-down approach focused on processes and tools), and People Driven (an enablement approach focused on people and organizations). Mary and Wes evaluate their situations and choose approaches that best fit for them, and the transformations commence.
A Tale of Two Transformations differs from many information technology books by grappling with all the complexities of our organizations: the people, the politics, the financials, the processes – in short, the culture from which our Lean and Agile journeys must begin. The change model presented in the flow of the stories is generally applicable, and can help anyone thinking about how to improve their organization.

Michael K. Levine has led a 26-year career primarily focused on how to profit through the application of information technology. He was educated in international relations and economics at Carleton College and Princeton University and began his career in international trade negotiation in Washington, D.C. He moved on to commercial lending and financial product management at First Bank System in Minneapolis. In each of his early jobs, he saw the promise of applying information technology to solve business problems; eventually, he moved his career more formally in that direction by joining Norwest Corporation as strategic technology planner and large-scale software project manager.

Michael continued his immersion in technology leadership when he became chief technology officer of Moore Data/Vista Information Solutions, a leading provider of information technology solutions to the real estate field. For the last 6 years, Michael has been at Wells FargoHome Mortgage, leading Operations and Technology Groups. One of the constant elements in Michael’s work has been the innovative, business-driven application of information technology. The accomplishments of his teams range from the first system to calculate duties on unfair trade, to cross-business line customer information systems in two large banks, to an early Internet-based real estate search engine, to an image-based, straight-through/exception-based loan processing system.

His continuing search for better ways to build complex business software drew him to the operations and product development approaches coming out of Toyota (Lean) and the Agile software development movement. Michael and his teams have used many of the Lean and Agile approaches over the last several years. This practical application experience, in addition to his extensive, successful career at the junction of business operations and software technology, gives Michael a unique, practical perspective on how business leaders can improve their results through better technology leadership.

SETTING THE STAGE FOR CHANGE: FEBRUARY

Wes’s Challenge at MCCA: February Narrator: Wes MCCA’s Past (in Microfilm) versus Its Future (in Information Management) MCCA’s Transformation Goal: Fix Operations and Build New Technology Products Wes’s New Role: New Product Development, Including Technology Wes’s New Organization and People Endnotes Mary’s Challenge at FinServia: February Narrator: Mary FinServia’s Troubles: Glacial, Unresponsive Product Development FinServia’s Transformation Goal: Faster and Cheaper

Setting Initial Approaches for Both Companies: February Narrator: Wes Building a Lean and Agile Change Model Comparing the Two Opportunities, and Selecting an Approach Wes and Mary Make Their Initial Plans Endnotes
UNDERSTANDING THE LANDSCAPE: MARCH

Getting to Know the MCCA Team and Culture: MarchNarrator: WesMeeting My Development TeamTransforming Operations, Including the Relationship with SalesWes Visits San Diego National InsurancePreparing to Meet SDNIListening for Customer ValueUnderstanding the Customer’s NeedsEndnotes

Reorienting FinServia’s Relationship with GRI: MarchNarrator: MaryGRI’s Death Grip on Finservia’s TechnologyMeeting with GRI: Being Clear about What FinServia NeedsGRI Goals and the Win–WinEndnotes

Solving the Chief Engineer Puzzle at MCCA: MarchNarrator: WesFinding a Project Manager to Handle Part of the Chief Engineer RoleFinding a Product Manager to Handle Part of the Chief Engineer RoleExploring Alternative Development Models: Powerful Individual Chief Engineers versus Development Teams of PeersEndnotes

BEGINNING THE TRANSFORMATIONS: APRIL–MAY

Six Weeks to Change the FinServia Organization: AprilNarrator: MaryEarly Week One: Planning the FinServia Development OrganizationOption 1: A Functional OrganizationOption 2: A Divisional OrganizationOption 3: A Matrix OrganizationOption 4: Chief Engineers with Shared SupportLater in Week One: Planning the Transition with GRIWeek Four: Selecting the PeopleWeek Six: Announcement DayEndnotes

Six Weeks to Start the MCCA Transformation: MayNarrator: WesWeek One: Preparing for the Management ScrumWeek Two: Assembling and Training the Team The Team Assembles: Overview Training MCCA Value Defined by Owners, Customers Lean Product Development Introduced Agile Software Development: An Implementation of Lean Product Development Agile Introduced Scrum Explained Next StepsWeek Four: Creating the Management Backlog and the Release PlanWeek Six: Lean Team Scrum MeetingEndnotes

TRANSFORMATIONS TAKE HOLD: MAY–SEPTEMBER

Making Delivery Commitments at FinServiea: MayNarrator: MaryThe Classic Struggle: Setting Dates and CostsThe Date/Cost Commitment Struggle at FinServiaConfiguring Agile Releases: Distributing to and Managing Multiple BacklogsEndnotes
MCCA Engages with Its Sales Force and Customers at DocWorld: Late JulyNarrator: WesWes’s Six-Month RetrospectiveUser Conference Preparation: The Product Roadmap and Customer Engagement PlanningConnie and Wes Agree on Sales GuidancePartnering with Customers and Prospects: Demos and BacklogsEndnotes

Sprint 1 Demo at FinServia—Dealing with Disappointment: JulyNarrator: MaryMary’s Six-Month RetrospectiveTools Can Help, Tools Can HurtResults of Sprint 1 Disappointing: The Sprint Demo Discord during the SprintReady or Not, Sprint and Demo Reviewing the Plan for Sprint 1 (Lack of) Accomplishments of Sprint 1 Code Demo for Sprint 1Sprint 1 Retrospective Margaret Plans and Facilitates the RetrospectiveEndnotes

Jack’s Gambit at MCCANarrator: WesPhillip Spills the BeansGetting Advice from ConnieJack’s ProposalMary and Wes Consider Lynn’s OptionsLynn Hollander Makes Her ChoiceLOOKING BACK AND LOOKING AHEAD: DECEMBER

Sustaining Lean and Agile: DecemberNarrator: WesComparing the MCCA and FinServia ExperiencesSustaining a Lean and Agile Software Culture Building Towering Technical Competence Building and Sustaining Cultural Values Strategic Planning and Study Customer-Focused, Hands-On Leaders Lightweight ProcessesEndnotes

SUMMARY AND CONCLUSIONS

Transforming to Become Lean and AgileSummary of the People Driven ApproachSummary of the Drive People ApproachVision and Leadership Set a Simple and Compelling Vision Build a Supporting Coalition Make a Plan, Specific to Your Reality Use Integrating Events Accelerate Delivery Find Outside Wisdom Encourage Engagement and Debate, within Limits Understand Your Boundaries It’s (Almost) Always about the MoneyPeople Give Existing Leaders a Chance Let Obstructionists Continue Their Careers Elsewhere Stir Up the Pot by Adding Some New Blood Get Them to Do It Themselves Build Chief Engineers, but Adapt to the Situation at Hand Teach to Lead, and Lead by Teaching Spreading Knowledge—Institutionalize Knowledge and Learning "You Go to War with the Army You Have"2 or Build Your Capability before You Build Your SoftwareOrganization Customer Focus Demolish the Barriers: We Are All "The Business" Small Intact TeamsProcess Process Can Drive Lean/Agile Change, but It’s Not Enough by Itself Start Slow and Simple PDCA Yourself! Methods—Don’t Overprescribe But Do Insist on Some Basic PracticesTools Tools Can Help, but Be Careful! Vendor PartnershipsFinal WordsEndnotesIndex