Step Away from the Waterfall: You Really Can Use ... - Rally Software
Step Away from the Waterfall: You Really Can Use ... - Rally Software
Step Away from the Waterfall: You Really Can Use ... - Rally Software
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<strong>Step</strong> <strong>Away</strong> <strong>from</strong> <strong>the</strong> <strong>Waterfall</strong>:<br />
<strong>You</strong> <strong>Really</strong> <strong>Can</strong> <strong>Use</strong> Agile on an ERP<br />
Project<br />
March 7, 2013
Contents <br />
• Welcome and Introduc,on <br />
• A Lean and Agile Approach to ERP <br />
• Lean Agile ERP – Challenges and Success Factors <br />
• Lean Agile ERP Delivery Models <br />
• Introducing Kanban to <strong>You</strong>r Teams <br />
• Customer Case Study -‐ Orange County, Florida <br />
• Ques,ons <br />
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Introduc,ons <br />
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Welcome and Introduc,ons <br />
Jason Fair <br />
• CEO, Genesis Consul,ng <br />
• 20+ years of industry <br />
experience leading ERP <br />
implementa,ons <br />
• Func,onal expert, <br />
Technical development, <br />
Integra,on Management <br />
and extensive Project <br />
Management <br />
• PMP, CSM, Cer,fied SAP <br />
Consultant, CPA <br />
• Thought leader for Lean <br />
Agile ERP <br />
Mike McLaughlin <br />
• Technical Account Manager, <br />
<strong>Rally</strong> SoVware <br />
• 15+ years of experience <br />
successfully delivering projects <br />
with Lean and Agile <br />
• Focuses on improving <br />
performance through <br />
op,mizing: <br />
– Agile lifecycle management <br />
– Lean thinking and methods <br />
– Requirements management <br />
– Quality management <br />
– SoVware development methodologies <br />
• Cer,fied Scrum Master, <br />
Cer,fied Scrum Product Owner <br />
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Poll – Who is in <strong>the</strong> Audience? <br />
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Genesis Consul,ng <br />
We specialize in delivering <strong>the</strong> following services: <br />
" SAP Technology: <br />
• Strategy and Planning <br />
• Project Management <br />
• Systems Integra,on and SAP Consul,ng <br />
• Industry Solu,ons <br />
– Grantor Management, Public Budget Formula,on (PBF), <br />
Procurement for Public Sector (PPS) <br />
" Lean Agile Coaching <br />
" Enterprise Performance Management <br />
" Organiza,onal Change Management <br />
Cer$fied small business in <strong>the</strong> Commonwealth of Virginia <br />
and registered with <strong>the</strong> Small Business Administra$on <br />
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Lean Agile SAP Network <br />
• QVC <br />
• Nike <br />
• Intermec <br />
• Jabil <br />
• Medtronic <br />
• McKesson <br />
• JJ Keller <br />
• Crayola <br />
• Vision Service Provider (VSP) <br />
• Johns Hopkins University <br />
• CN Railway <br />
• RIM <br />
• SAP -‐ Ne<strong>the</strong>rlands <br />
• U.S. Department of Agriculture <br />
• Northrop Grumman <br />
• Ray<strong>the</strong>on <br />
• U.S. Army <br />
• U.S. Department of Interior <br />
• Orange County Public Schools, FL <br />
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A Lean and Agile Approach to ERP <br />
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Defini,ons <br />
" Agile is a methodology, derived using Lean thinking. <br />
" Lean is a “thinking principle”. It tells you how to iden,fy <br />
opportuni,es for improvement. <br />
" Agile is Lean in IT. It is <strong>the</strong> proven project management <br />
methodology that encourages: <br />
• Frequent inspec9on and adapta9on <br />
• A leadership philosophy that encourages team work, self-‐organiza9on and <br />
accountability <br />
• A set of engineering best prac,ces that allow for rapid delivery of high-quality<br />
projects <br />
• A business approach that aligns development with customer needs and <br />
company goals <br />
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" Customer Value Added Work: Agile teams learn to make this <br />
work a priority <br />
" Business Value Added Work: Agile teams learn to: <br />
• Develop lighter yet just as effec,ve ar,facts <br />
• <strong>Use</strong> new techniques to shorten up <strong>the</strong>se ac,vi,es <br />
Lean Out <strong>the</strong> Waste <br />
• Replace some of <strong>the</strong> ar,facts with empirical evidence (demos and stand-‐ups <br />
versus status reports) <br />
• Iden,fy and simplify <strong>the</strong> ceremonial ac,vi,es that we tradi,onally <br />
perform to stay viable/compliant/lawful <br />
" Non Value Added Work (Waste): Agile teams learn to nego,ate <br />
this work completely out of a project <br />
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What Is <strong>the</strong> Big Deal? <br />
What is <strong>the</strong> amount of value-added work in most processes?<br />
Only 5-30%<br />
— James Womack<br />
What is <strong>the</strong> amount of value-added time in most processes?<br />
Only 0.5% – 5%<br />
—George Stalk<br />
79% of CEO’s polled, feel cost and cycle time reduction are<br />
a major need<br />
…Only 31% feel <strong>the</strong>y do a good job<br />
— The Nations CEOs Look to <strong>the</strong> Future Foundation for <strong>the</strong><br />
Malcolm Baldrige National Quality Award Study 818407<br />
“The problems that exist in <strong>the</strong> world today cannot be solved by <strong>the</strong> level of thinking that<br />
created <strong>the</strong>m.” — Albert Einstein<br />
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Founda,ons of Agile <br />
• Empiricism – Ability to perform, stop, reflect, improve, <br />
con,nue in a step by step process in efforts to increase <br />
produc,vity <br />
• Priori9za9on – Deliver work based on value <br />
• Self-‐Organiza9on – The team knows best how to deliver <strong>the</strong> <br />
work based on <strong>the</strong> resources and constraints <br />
• Time-‐Boxing <br />
• Collabora9on <br />
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Feasibility<br />
Definition<br />
<strong>Waterfall</strong> vs. Agile – <br />
Delivering Incremental Value <br />
Design<br />
Construction<br />
<strong>Waterfall</strong><br />
Release<br />
Sprint 1 Sprint 2 Sprint 3 Sprint 4 Sprint 5 Sprint 6 Sprint 7 Sprint 8<br />
AGILE<br />
2 wks 2 wks 2 wks 2 wks 2 wks 2 wks 2 wks 2 wks<br />
Release #1<br />
Release #2<br />
Release #3<br />
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<strong>Waterfall</strong> to Itera,on <br />
ASAP<br />
“<strong>Waterfall</strong>”<br />
Agile<br />
Approach<br />
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A Lean and Agile Approach to ERP <br />
Lean Thinking <br />
• Eliminate Waste <br />
• Pull From Demand – Focus <br />
on business value <br />
• Empower Workers <br />
• Enable Con,nuous <br />
Improvement <br />
Agile is a <br />
journey, not a <br />
des$na$on. <br />
Some Agile Techniques <br />
• Frequent inspec,on and adapta,on <br />
• Aligning development with customer needs & <br />
company goals <br />
• Co-‐loca,on <br />
• Self-‐organiza,on and accountability <br />
• Becoming a team player <br />
• Elimina,on of “waste” and “ceremony” <br />
• Empirical demonstra,on of results <br />
• Customer is always present <br />
• Product managers and owners <br />
• 5 planning events: product planning, release/<br />
feature planning, itera,on planning, sprint <br />
review, and stand-‐ups <br />
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Lean Agile ERP – <br />
Challenges and Success Factors <br />
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Applica,on Development vs. ERP <br />
• Feature Sets versus Process Sets <br />
• Not necessarily promo,ng “code” to produc,on aVer each sprint <br />
• Coding vs. Configura,on <br />
• Complexity of Business Requirements <br />
• Diverse set of skills required to complete ERP Process Sets <br />
• Introduc,on of integra,on sprints <br />
• Concurrent “Support” teams with dependencies <br />
– Systems Administra,on <br />
– Security <br />
– Organiza,onal Change <br />
– Quality Assurance / Tes,ng <br />
– Training / Deployment <br />
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Challenges in Applying Agile to ERP <br />
• A new way to manage projects <br />
– Makes all <strong>the</strong> dysfunc,on in a team or organiza,on visible <br />
– Bad products will be delivered sooner, and doomed projects will fail faster <br />
– People may follow <strong>the</strong> mechanics but not <strong>the</strong> values of Agile <br />
• People are most comfortable with what <strong>the</strong>y know <br />
– ERP consultants have an aoachment to waterfall development <br />
– Lack of incen,ve to increase speed to delivery <br />
• ERP solu,ons are all encompassing <br />
– Environment includes development, proprietary programming system/language, a run <br />
,me environment, a source code control system <br />
– Integrated end-‐to-‐end business process that are difficult to decompose <br />
• ERP configura,on is NOT programming <br />
• Managing dependencies and sequencing of stories, tasks, ac,vi,es <br />
• Management of RICEFW objects in line with Sprint delivery <br />
• Integra,ng off-‐shore development <br />
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• Conduct Agile Readiness and Cultural Assessments <br />
• Iden,fy <strong>the</strong> Execu,ve Champion(s) <br />
Success Factors <br />
• Be flexible in crea,ng a model that works for <strong>the</strong> culture of <strong>the</strong> <br />
organiza,on <br />
• Consider varying steps of adop,on (it’s a journey…) <br />
• Select <strong>the</strong> right first project – Not all projects are good <br />
candidates for Agile <br />
• Train <strong>the</strong> team – at all levels <br />
• Develop a Product Council that is willing to work <br />
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Success Factors <br />
• Find <strong>the</strong> right Product Owner and engage Stakeholders <br />
• Focus on Team Work over mechanics <br />
• Collabora,on over co-‐loca,on <br />
• Building <strong>the</strong> Backlog – Story Mapping and Stories <br />
• Set rules of engagement for <strong>the</strong> team <br />
• Selec,ng <strong>the</strong> right metrics and <strong>the</strong> right repor,ng tools <br />
• Align team and individual performance metrics to tangible <br />
project goals <br />
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Lean Agile ERP Delivery Models <br />
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Phased Planning <br />
Planning and Requirements <br />
<strong>Waterfall</strong><br />
Build/Test/Deploy <br />
• Constraints of resources <br />
• Unknown scope/requirements <br />
• Lack of Buy-‐in <strong>from</strong> Stakeholders for Scope <br />
• Known Gaps/Solu,on Complexity <br />
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Itera,ve <strong>Waterfall</strong> – “Agilefall” <br />
Planning<br />
Requirements<br />
Build<br />
Test<br />
• Not sure if Agile “will work for us” <br />
• Introduc,on of Agile to Teams <br />
• Resistors to Agile <br />
Deploy<br />
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Lag Teams <br />
Iteration #1 Iteration #2 Iteration #3 Iteration #4<br />
Development<br />
Team<br />
Quality/<br />
Testing Team<br />
• Compliance and regulatory tes,ng <br />
• Independent tes,ng and QA teams <br />
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Agile Itera,ons <br />
PLAN/REQUIREMENTS/BUILD/TEST/DEPLOY <br />
Release #1 Release #2 Release #n<br />
• Known scope and requirements <br />
• Teams with func,onal and technical exper,se <br />
• Smaller projects <br />
• Shorter release cycles <br />
• Smaller teams <br />
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INTEGRATION LAYER <br />
Scrum of Scrums <br />
Team 1 Team 2<br />
Team 3<br />
• Large teams <br />
• Complex solu,ons <br />
• Integrated Dependencies <br />
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Introducing Kanban to <strong>You</strong>r Team <br />
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Kanban ( 看 板 ) <br />
• Literally means signboard in Japanese <br />
What is Kanban? <br />
• Describes a Lean, pull-‐based process that controls knowledge <br />
workflow with visual no,fica,ons and by limi,ng waste <strong>from</strong> <br />
Work in Progress or WIP <br />
• At <strong>the</strong> crux of Kanban is—as with any lean or agile process—<br />
ongoing process improvement, <br />
…with one key principle in <strong>the</strong> star,ng point: <br />
First step is to change nothing (or as liGle as possible)!* <br />
…and ano<strong>the</strong>r principle to guide a team toward maturity: <br />
Build a culture of metrics-‐driven delivery improvements. <br />
*DJAA Kanban <br />
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Evolu,onary Change <br />
Agile/Scrum v. Kanban Change Curve <br />
" Agile can require significant up-front development process and<br />
organizational change<br />
" Kanban seeks to leverage existing development processes and limited initial<br />
organizational change<br />
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5 4 4<br />
3 2 2<br />
Kanban Board <br />
Input<br />
Queue<br />
Analysis<br />
In Prog Done<br />
Dev Development<br />
Ready In Prog Done<br />
Build<br />
Ready<br />
Test<br />
Release<br />
Ready<br />
Stage<br />
Prod.<br />
Flow<br />
Courtesy David J. Anderson & Associates, Olav Maassen QNH <br />
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Manage Flow <br />
Input <br />
Queue <br />
(WIP 1 =5) <br />
Analysis <br />
(WIP 1 =3) <br />
DEV <br />
(WIP 1,2 =7) <br />
INT <br />
Test <br />
(WIP=4) <br />
QA Ready <br />
QA <br />
Release/<br />
Verify <br />
(WIP=4) <br />
PROD <br />
Ready <br />
PROD <br />
Release/<br />
Verify <br />
(WIP 3 =3) <br />
Expedite <br />
(Max 2) <br />
In Progress Done In <br />
Progress <br />
Done <br />
Minimize time <strong>from</strong> start to finish – CYCLE TIME!<br />
Fixed <br />
Delivery Date <br />
(Max 3) <br />
Blockers building<br />
Standard/ <br />
Intangible <br />
(No Max) <br />
These queues are getting low…<br />
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Customer Case Study -‐ OCPS <br />
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OCPS – Proof of Concept <br />
• Orange County Public Schools – 10 year SAP customer <br />
• Full SAP suite of applica,ons (FI/CO, MM, HR/Payroll, etc.) <br />
• Ac,ve produc,on support team <br />
• Poruolio of on-‐going con,nuous improvement projects <br />
• Developed Lean Agile SAP Proof of Concept with Genesis <br />
• Selected Performance Management Project <br />
– Defined scope, selected resources <br />
– Legisla,ve mandate to automate performance appraisals by 3/1/2009 <br />
– 3 weeks behind schedule before Lean Agile SAP <br />
– Implement EP and Performance Appraisals <br />
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§ Raise OCPS Lean Agile Awareness <br />
§ Just-‐In-‐Time training <br />
§ Frequent demonstra,on of completed product to customer <br />
§ All-‐Hands demonstra,on of Scrum Technique <br />
§ High visibility of project health via informa,on radiators <br />
§ Led Team through ‘First <br />
Awkward <strong>Use</strong>’ <br />
§ U,lized a seasoned Lean Agile <br />
Master Coach to mentor team, <br />
customer and management <br />
§ Hands-‐on demonstra,on of <br />
disciplines, techniques and tools <br />
POC Approach <br />
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Project Team Training <br />
• Cer,fied Scrum Master Training <br />
• Advanced Project Management training <br />
for PMO Program and Project Managers, <br />
Business Managers and Project Coordinators <br />
• Team Training <br />
– Lean-‐Agile Orienta,on <br />
– Release Planning <br />
– Scope Confirma,on <br />
– Team Roles <br />
– Story Telling and Documenta,on <br />
– Project/Release Backlog Crea,on <br />
– Itera,on Planning and Tasking of Work <br />
– Effec,ve Daily Stand-‐ups <br />
– Sprint Close-‐out and Performance Data <br />
Collec,on <br />
– Uncovering Root Cause of Barriers <br />
– Applying Improvements <br />
– Leadership training <br />
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Planning Tools <br />
" LSAP introduces <br />
batch processing <br />
by breaking scope <br />
up into small <br />
product units <br />
called stories <br />
" Stories sit in a list <br />
controlled by <strong>the</strong> <br />
Product Owner <br />
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Lean Agile to Manage SAP Ini,a,ves <br />
• Visual <br />
Management <br />
approach <br />
• Promotes self-management<br />
<br />
• Transparency of <br />
assigned work <br />
• Facilitates <br />
teamwork and <br />
cross-‐training <br />
• Immediate <br />
knowledge of <br />
project status <br />
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POC Results <br />
§ Completed project 1 week ahead of schedule <br />
§ Team realized a 200% increase in produc,vity and efficiency <br />
§ Project validated that customer needs evolve <br />
§ Scope Changes – <br />
§ 20% Adds <br />
§ 18% Drops <br />
§ Process validated Lean Agile processes are adap,ve <br />
§ Team was not disrupted by <strong>the</strong> scope changes <br />
§ Team adapted to change in just 4 sprints <br />
§ Customer, Team Members and Project Management <br />
§ Confirm empirical evidence is beoer that Progress Reports <br />
§ Scrum planning events free up significant ,me for teams to focus on “Value <br />
Add” work <br />
§ Work products completed significantly faster <br />
§ Team habits have changed – becoming “Lean Thinkers” <br />
§ OCPS now deploying Lean Agile approach across poruolio of SAP Projects <br />
Change is an Asset and Not a Liability <br />
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Customer Tes,monials <br />
"Having <strong>the</strong> business decision-makers in <strong>the</strong> room to answer my questions in a timely manner,<br />
as well as to make decisions right when I needed <strong>the</strong>m, was very powerful. In <strong>the</strong> past seven<br />
days, I saved one week’s worth of work." – SAP Developer<br />
“This team was able to get three weeks worth of work done in just one week by using this<br />
Lean Agile SAP approach." – Business Process Specialist<br />
"By being collocated <strong>the</strong>re is a higher awareness of each of <strong>the</strong> team members'<br />
contributions towards <strong>the</strong> project's common goal. This has helped us as a project team have<br />
clearer communication on levels we don’t normally have" – NetWeaver Analyst<br />
"Post production support will be much easier and quicker, because <strong>the</strong> support people have<br />
been involved <strong>from</strong> <strong>the</strong> beginning and truly understand what we will be delivering on golive"<br />
– Business SME<br />
"This process requires that we demonstrate our work every few weeks. The project<br />
stakeholders are now so much more informed about what we are doing, and <strong>the</strong> business<br />
is more prepared for what we will be delivering to <strong>the</strong>m when we go live." – Configuration<br />
Analyst<br />
"I was just so impressed. Everyone was so happy and proud when <strong>the</strong>y demonstrated <strong>the</strong>ir<br />
work to <strong>the</strong> stakeholders after each iteration" – Project Manager<br />
“Before this process, I was uncertain how this project would get done in time. Now I am<br />
comfortable that we will get it done in time.” – Business SME <br />
SAP project teams are realizing up to 200% increase in productivity and efficiency.<br />
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Expanding Lean Agile to <br />
Manage SAP Opera,ons <br />
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A New Process Evolves <br />
Portfolio<br />
Planning<br />
Portfolio<br />
of Work<br />
Blue Print<br />
Backlog of<br />
Customer<br />
Valued Stories<br />
To stay productive<br />
<strong>the</strong>se activities must<br />
be ready to request<br />
work Just-in-Time<br />
Customer<br />
Care<br />
Escalated<br />
Problem<br />
Product<br />
Council<br />
Approved<br />
Stories/Release<br />
Plan<br />
Service<br />
Request<br />
Power<br />
<strong>Use</strong>r<br />
Break<br />
Fix<br />
Expediter<br />
Capacity Stats<br />
Urgent<br />
Request<br />
to Fix<br />
Business Realization<br />
Business<br />
Solutions<br />
Independent Test<br />
The Lean Agile Team<br />
performs work here<br />
Deploy<br />
Validated<br />
Production<br />
Ready<br />
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Managing <strong>You</strong>r Agile Projects -‐ <strong>Rally</strong> <br />
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Integra,ng and Accelera,ng <br />
§ Partnership with <strong>Rally</strong> SoVware <br />
§ Developing SAP templates as <br />
accelerators <br />
§ Considering developing <br />
Solu,on Manager adapters <br />
• <strong>Rally</strong> iden,fied as leader for <br />
Agile development <br />
management tools * <br />
• <strong>Rally</strong> provides <strong>the</strong> capability to <br />
provide real ,me status <br />
updates for Program <br />
Management <br />
* Source: "The Forrester Wave TM : Agile Development Management Tools, Q4 2012," Forrester Research, Inc., October 2012 <br />
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Story Mapping <br />
Visually display <strong>the</strong> <br />
rela,onships between Epics <br />
and Stories <br />
<strong>Use</strong> Story Maps to create <br />
stories that represent an end <br />
to end business process <br />
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Inside <strong>the</strong> Story <br />
Aoachments can be made for <br />
documenta,on of each business <br />
process capability. <br />
Dependencies and Parent/Child rela,onships <br />
are tracked to keep work grouped toge<strong>the</strong>r as <br />
well as roll up to <strong>the</strong> process map. <br />
Genesis Solu,on Accelerators such as BC <br />
Sets are referenced in <strong>the</strong> Story: Z-‐<br />
SRM_PPS: Define Order Type <br />
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Requirements Traceability <br />
Requirements can be set up <br />
under a separate project as <br />
requirement stories. <br />
Requirement Stories are <strong>the</strong>n <br />
referenced as a child to <strong>the</strong> <br />
Business Process user story <br />
for traceability. <br />
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Story Dashboard <br />
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<strong>Rally</strong> Poruolio Management <br />
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ERP Work Breakdown Structure
Priori,zing and Grooming
Itera,on Tracking
Program Repor,ng
Execu,ve Status
Program Roadmaps
Ques,ons <br />
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Upcoming Events <br />
• <strong>Step</strong> <strong>Away</strong> From <strong>the</strong> <strong>Waterfall</strong> – Part 2 -‐ Webinar <br />
April 18 th – 1:00PM ET <br />
• Agile Readiness <br />
• Ge|ng Started on your Agile ERP Projects <br />
• Epics, Stories and Story Mapping <br />
• Release Planning <br />
Register by responding to <strong>Rally</strong> invita,on or <br />
Sending email to registra,on@genesisconsul,ng.com<br />
<br />
• Geang Started with your Agile ERP Journey -‐ An Agile Workshop <br />
April 25 th – All Day Workshop and Networking Recep,on <br />
Denver, Colorado <br />
• Agile Concepts 201 <br />
• Developing an Agile ERP <br />
Framework <br />
• Assess <strong>You</strong>r Agility <br />
Register by sending email to registra,on@genesisconsul,ng.com<br />
• Epics and Stories – How Do I Get Started? <br />
• Story Mapping Techniques <br />
• Kanban Simula,ons <br />
• Simulate an ERP Project using Agile <br />
<br />
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Upcoming Events <br />
• “Agilize” <strong>You</strong>r SAP Project Poreolio – ASUG/SAPPHIRE Pre-‐Conference Workshop <br />
May 13 th – 2:00 – 5:00 ET <br />
Orlando, FL <br />
• Beyond <strong>the</strong> Basic of Lean and Agile <br />
• Ge|ng Started on your Agile ERP Projects <br />
• SAP Customer Success Stories and Lessons Learned <br />
• ASUG/SAP Integra,on of Agile into <strong>the</strong> ASAP Roadmap <br />
• Hands – On Exercises to Learn More About Lean and Agile <br />
• Simula,ons of Agile Techniques to take to your Projects <br />
• Networking Recep,on <br />
For more informa,on or register by sending email to registra,on@genesisconsul,ng.com <br />
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Vice President, Marketing and Sales<br />
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