Characteristics and Principles of Scaled Agile

Abstract

The Agile Manifesto and Agile Principles are typically referred to as the definitions of "agile" and "agility". There is research on agile values and agile practises, but how should " Scaled Agility " be defined, and what might be the characteristics and principles of Scaled Agile? This paper examines the characteristics of scaled agile, and the principles that are used to build up such agility. It also gives suggestions as principles upon which Scaled Agility can be built.

Full text

T. Dingsøyr et al. (Eds.): XP 2014 Workshops, LNBIP 199, pp. 9–20, 2014.
© Springer International Publishing Switzerland 2014
Characteristics and Principles of Scaled Agile
Maarit Laanti
Nitor Delta, Finland
Maarit.Laanti@nitor.fi
Abstract. The Agile Manifesto and Agile Principles are typically referred to as the
definitions of "agile" and "agility". There is research on agile values and agile practises,
but how should “Scaled Agility” be defined, and what might be the characteristics and
principles of Scaled Agile? This paper examines the characteristics of scaled agile, and
the principles that are used to build up such agility. It also gives suggestions as principles
upon which Scaled Agility can be built.
Keywords: large-scale agile software development, agile methods, software
engineering, project management, portfolio management, Scaled Agile.
1 Background and Models for Scaled Agile
Scaled agile has been an interest of the agile community for some years now [1]. Although
there exists already research on agile values [2] and practices [3], the agile community is
wondering if the principles listed in the agile manifesto scale as such or if something else is
needed [1].
The first models for scaling agility to the whole organization already exist. Scaled Agile
Framework [4, 5] was introduced to a wide audience in the Agile 2013 conference in August
2013 [6] and Disciplined Agile Delivery (DAD) [7] by Ambler in the International Conference
of Software Engineering in May 2013 [8]. Also other frames for scaling agile are emerging,
such as the Agility Path by Schwaber [9]. All the above-mentioned models have been created
by practitioners.
Scaled Agile and Agile Organizations have become hot topics since the launch of the Scaled
Agility Big Picture that describes an operational model for an Agile Organization, and the
Scaled Agile Academy that delivers certified training courses for Scaled Agility. The Scaled
Agile Framework (SAFe) is in use in multiple companies, including BMC Software, Mitchell
International, Trade Station Technologies, Discount Tire, John Deere, Valpak, Infogain and
SEI [10], and has become very popular. Scaled Agile Academy won the North American Red
Herring 100 competition that ranks new start-ups based on their success [11].
Early adopters of Scaled Agile Framework have reported significant improvement in terms
of productivity and quality. Improving productivity and quality is a key concern of any
organization, but there are also some global trends that amplify the reasons why organizations
are looking into ways to boost their performance.
1. Change or die. New innovations and new technologies come to markets with increased
speed. [12, 13]

10 M. Laanti
2. Constant need for further innovations. What is there is quickly copied – a need for constant
innovation to enable competitiveness. [14, 15]
3. Transaction cost is small or almost missing compared to traditional settings. Publishing new
(software) versions in the cloud is “free” once the cloud and the continuous deployment
infrastructure is there. This leads to a faster ROI circulation. [16, 17]
4. Markets are more unpredictable than before. There is a need to be flexible with investments
and capacity. [18, 19]
2 Principles Behind Scaled Agile Framework
Agile Software Development is most typically defined via the “Manifesto for Agile Software
Development” [20, 21]. When agile methods are taken into use in other organizational
disciplines (other than software development) it is typical to rely on other principles that are
compatible with Agile Principles. SAFe e.g. has practices that cover the Portfolio level
responsible for investments, Program level responsible for the execution of the planned
initiatives and Team level.
The Team level can work using Scrum method, Kanban method or their combination that
means that the SAFe Team level practices are compliant with Agile Principles like Scrum and
Kanban are. But the Agile Principles are not enough to tell how to most efficiently organize
Portfolio and Program levels. Thus SAFe builds on 2nd generation of Lean: Principles of the
Product Development Flow as defined by Reinertsen [16] to define new way of working
practices that are compliant with agile Team level practices for Program and Portfolio levels.
Agile changes when it scales, and lean principles provide a good source for this. For example, a
single agile team typically needs to worry only about one value chain, but lean principles
advice how to manage multiple value chains, which is an organizational level problem. On
Portfolio level the question is whether the organization has the right number of projects that
represent the best mix of opportunities [22].
2.1 Aspects of Scaled Agile
However, Scaled Agile means more than adding Adaptivity to Program and Portfolio level.
From various other sources we can find also other Aspects of Organizational-level agility, see
Table 1.
One could argue that in Table 1 the first three aspects (Strategic Agility, Business Agility,
and Agile Organization) are actually the same, only observed from different angles or
viewpoints. The list could also contain Agile Innovation [30] as one agile aspect. Oza and
Abrahamsson [30] define Agile Innovation as an aspect that combines innovation processes
with agile processes. Here it is omitted because creativity and innovation are seen as an
outcome of a Complex System tolerating internal conflicts [31]. Creativity and innovation can
thus be understood as intrinsic qualities of such an Agile Organization, and they could thus be
derived from other Agile Aspects as a result.

Characteristics and Principles of Scaled Agile 11
Table 1. Different Aspects of Agility, detected in large organizations
Agile Aspect Definitions
1 Strategic Agility The ability to continuously redirect and reinvent the core businesses
without losing momentum (in contrast to traditional portfolio
restructuring) by maintaining balance with strategic sensitivity (awareness
and attention), leadership unity (collective commitment), and resource
fluidity (people rotation and organizational structures), working as an
integrated real-time system [23].
2 Business Agility The marriage of strategy (awareness) and agility (tactics) in order to
create a responsive organization for business benefit [24] or a sum of
process agility and technical agility or a sum of speed and flexibility that
we can then, e.g., use to enable mobile business solutions [25]. Hugos
[24] states that all products have two components: the actual product and
an information component that adds value to a customer. The information
component can be understood as covering all the immaterial benefits that
the user gets when purchasing the specific product in question. A product
ecosystem provides similar (immaterial) added value to the customer;
thus here the additional value provided by a product ecosystem is
included in the Business Agility aspect.
3 Agile Organization The well-working combination of Informal Networks and the Formal
Organizational structure, for which agility is key and pervading, trust a
necessity [26].
4 People Agility The ability to shuffle work around the organization when the priorities or
focuses change — this is roughly similar to the “Resource Fluidity” [23].
5 Tools Agility The ability to have tools that support the agile way of working and can
easily be modified for a new purpose as the process changes [27].
6 Organizational
Culture
The competing different organizational values and cultures related to
agile values and agile culture [28].
7 Agility of the Product
that is Built
The ability to modify, version, personalize, configure, or refresh the
product to reach new customer groups or please the existing user [29].
8 Agility of payoff
functions
Options thinking in regarding new investments. Balancing capacity into
most profitable work, instead of having people to work on designated
areas only. Prioritizing work based on future value [5].

12 M. Laanti
3 Definition for S
c
When studying the different
people have used agile thinki
n
Design, Marketing, Portfolio
M
Fig.
Fig. 2. Left. Negative feedbac
k
system behaviour in electrical
How different disciplines
w
what Scaled Agile is, i.e. we
w
That would mean we set goal
s
between various initiatives.
W
based, cumulative metrics. Te
a
in-progress, and follow-up wi
t
c
aled Agile
Aspects of Large-Scale Agile the common nominator is
n
g to solve problems in different disciplines, such as Architec
t
M
anagement or Program Management.
1. Model for an Adaptive Organisation
k
system behaviour in electrical circuits. Right. Positive feed
b
circuits.
w
ould be enhanced by agile thinking could be a way to d
e
w
ould be adaptive on all levels of the organization, see Figu
r
s
to an organization that are relative, and balance the investm
e
W
e would use rolling forecasting and adaptive planning and f
l
a
ms would plan their work using increments or limiting the w
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t
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and then measuring the gap b
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known as a negative feedbac
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adaptive system on the contra
r
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e
suitable for volatile markets.
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An agile organization ma
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view with Goldman’s [63] de
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continually fragmenting, gl
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and growth-oriented. It is not
business hatches to ride out
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winning: about succeeding in
share, and customers in the ve
4 Principles for S
c
The Scaled Agile Framework
b
of the mentioned Aspects of
A
of Principles could be a sourc
e
of Scaled Agile are e.g. To
Principles [35] that cover bot
h
principles such as Blue Ocean
But what principles should
for Scaled Agile by studying t
h
as agile-minded. An alternat
i
some experience in Scaled Ag
i
present the list of principles
w
been peer-reviewed and sug
g
each principle, the origins of t
h
Characteristics and Principles of Scaled Agile
ack systems look for conformance. Right. Positive feed
b
direction.
e
red companies and projects by setting a target, creating a
p
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tween the progress and the plan. In electrical circuit design th
k
loop, looking for a conformance and stability, see figure
2
r
mance can never produce more than was originally planned.
r
y is a positive feedback system that measures the output an
d
e
ms tend to either grow or shrink exponentially, being thus
m
S
ee Figure 3.
y
be better at adapting to its surroundings. This is a compa
t
fi
nition of agility:
e to the business challenges of profiting from rapidly chan
g
o
bal markets for high-quality, high-performance, custo
m
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. It is dynamic, contex
t
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c
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arsome competitive “storms”, it is about succeeding and a
b
emerging competitive arenas, and about winning profits, m
a
ry center of the competitive storms many companies now fear
.
c
aled Agile
b
uilds on Principles of Lean Flow thinking, but does not cove
A
gility. The Agile Aspects and various other compatible sou
r
e
for new process innovations. The possible sources for Princi
p
yota Principles [32, 33], or Lean [34] or Beyond Budg
e
h
leadership principles and process principles, or various strat
e
[36]. See Appendix A for list of these related principles.
we choose? One could also find a number of potential princi
p
h
e values (if not the principles) of companies that people ide
n
i
ve way is to discuss with the people in organizations who
h
i
lity and derive the principles from this experience. In Table
2
w
e believe could form the principles for Scaled Agile. This list
g
estions incorporated from some experienced practitioners.
h
ought are also presented.
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14 M. Laanti
Table 2. Principles of Scaled Agile
Principle Explanation Origins
1 The content
is the key
Use the feedback from user and the
intrinsic knowledge based on expertise
and experience to create the best you can
dream of. Delighting the user is key to
success.
This principle combines Agile Principle
of Working software is the primary
measure of progress [20] with the first
values (Focus on the user and all else
will follow) of Google [37] and the first
value (Empathy for Customers/Users) of
Apple [38]. Great design as well as great
user experience can only be created
iteratively. Denning [39] emphasizes
NPS as primary metrics that correlate
with business success.
2 Co-creation Groups are faster solving problems than
individuals. Let the software evolve
together, as the sum of the whole is more
than its parts. Software Development is a
Co-operative Game.
This principle combines the idea that
groups are faster solving problems than
individuals [40, 41] with Cockburn’s
research [42] that Software
Development is a co-operative game.
The co-creation is a synergistic, rather
than a reductionistic view.
3 Feedback is
the
fuel to
learning
Use rapid and concrete feedback on all
work done. Study what creates success
and do more of that.
Reinertsen [16] emphasises fast
feedback . The plan-do-check-act is the
essence of all lean improvement actions.
4 Business
Agility
Releases generate revenue. The business
model must dictate the release rate and
user interest defines the business model.
A pay per month basis business can only
be based on continuous releasing.
Release less often when the transaction
cost is high.
See Reinertsen [16] on transaction and
holding costs. Business model
refactoring [43] discusses different ways
of generating money in software
business.
5 Use of
Automation
as Leverage
Use automation to leverage the manual
effort needed. Develop the system, so
that it gives a better leverage for the
work unit done.
Use of autonomination is one key idea of
Taiichi Ohno from Toyota [44]. The idea
of depeloping a system, rather than
people, comes from Deming [45].
6 Scale Using
Fractals
Fractals are nature’s way to scale, and
fairly permanent structures. Use higher
abstraction levels and nested systems,
such as nested control loops.
Refer to ideas of Panarchic systems [46].
7 Avoid
Combina-
torial
Explosions
Complexity is best tamed by splitting it
to smaller pieces. Internal releases must
be as small as possible.
Adding more people to project slows
down the progress, as need for
communication grows almost
exponentially when the number of
interfaces increases [47]. Combinatorial
explosions come from mathematics [48,
49].
8 Sequence for
maximal
throughput
Modular architecture increases speed.
Find the maximum throughput for your
portfolio by balancing what can be done
in parallel, and what must be done in
sequence.
Refer to theories of value chain, and
value chain analysis [40]. Per
researcher’s experiences [5].
9 Appreciate
deep
knowledge
Only more than five years experience
creates deep knowledge. Use the best
experts to tackle the most important and
wicked problems. Check what new is
learned and that your knowledge is still
deep. Give creativity room.
Per researcher’s experiences. Also Apple
[38], Facebook [50] and Netflix [51] are
known to value experience.

Characteristics and Principles of Scaled Agile 15
Table 2. (Continued)
10 Work
Leveling
Even distribution of work and
elimination of unnecessary work and
waiting time based on measured
performance. Work prioritization and
Kanban are the tools here.
According to lean thinking, muri
(uneven distribution of work) creates
mura (overburden) that creates muda
(waste). According to researcher’s
experience, the concepts are applicable
to both humans and machinery [52].
11 Simplicity Seek simplicity in solutions.
Simplicity is one of the Agile Principles
[20].
12 Situationality Use Pareto principle to avoid making
processes overly complex. Not all cases
need to be treated equally.
Refer to Beyond Budgeting Principles
[35].
13 Control
process,
not items
Create simple rules for decision-making,
instead of controlling each decision
individually. Make clear game rules.
Refer to Reinertsen [16] and Beyond
Budgeting [53] for distributed decision-
making.
14 Growth
mindset
Do more of what created success. Best
leaders do not reject faulty attempts, but
instead twist them to create more
success. Have a growth mindset and
improve what originally created success.
Failures are the secret source of success.
Systematic on actions. Refer how Pixar
works [54].
Refer to Mindset [55].
15 Listen to
employees,
they know
all the
problems
Value is created in the front-line. The
rate at which you are able to remove
impediments of progress or service
correlates with the improvement done
for business. Understand the problem
you are solving.
Unused employee creativity is one form
of waste [56]. Your people create the
service, the rest of the organization is
there to help them [57].
16 Detect and
use patterns
Use and apply patterns. Your problems
have already been solved by someone
and somewhere.
Refer to TRIZ for patterns to solve
product engineering problems [58].
17 Cost
innovation
Ease the user’s burden with a solution
that costs less. Provide better service or
fill the gaps between value chains. Do
not tie capital, allow flexibility in
investments and option thinking in
portfolio level. Optimize cost of
portfolio.
For cost innovation, refer to [14]. For
value chains refer to [40]. For agile
portfolio and cost thinking, refer to [59].
18 Utilize tacit
knowledge.
Crowdsource the strategy. Use tacit
knowledge of people to tell if you are
heading in the right direction or not.
When people feel proud of the outcome,
you are heading in the right direction.
According to researcher’s experience.
The idea is similar to lean Niko-niko
tables [60]
19 Learning
happens
between
teams
Create collective knowledge that share
the same vision and ambition. Collective
must have multitalented semi-permanent
teams combined with deep individual
knowledge.
See organizational learning theories
[61].
20 Fast is better
than
perfection.
Maximize the work undone. If it is not
broken, do not fix it. Tolerate small
imperfections. Fast is better than
perfection. The best is the enemy of the
good.
Lean startups are good when quickly
trying new ideas [62].
21 Prevent
problems
when small.
Success hides small problems. In order
to stay successful do not become
ignorant for small problems.
See Creativity, Inc. [54]

16 M. Laanti
5 Conclusions
This paper has examined Scaled Agile from Agile Aspects point of view, and presented a set of
Principles for Scaled Agile. Simply put, Scaled Agility can be understood as an attempt to
solve process problems other than software development on team level using agile mind-set
and tools (adaptivity).
The new kind of emerging and disappearing opportunities, shortening cycles times, constant
need for further innovations and disappearing transaction costs combined with cloud
technologies may make future organizations as growing and shrinking adaptive fractals. This
metaphor of an adaptive fractal may replace the old metaphor of an organization as a hierarchy
over time.
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Characteristics and Principles of Scaled Agile 19
Appendix A. List of Related Principles
Source Principles
1 Toyota [32] 1.
Honor the language and spirit of the law of every nation and
undertake open and fair business activities to be a good corporate
citizen of the world.
2.
Respect the culture and customs of every nation and contribute to
economic and social development through corporate activities in
their respective communities.
3.
Dedicate our business to providing clean and safe products and
to enhancing the quality of life everywhere through all of our
activities.
4.
Create and develop advanced technologies and provide
outstanding products and services that fulfill the needs of
customers worldwide.
5.
Foster a corporate culture that enhances both individual
creativity and the value of teamwork, while honoring mutual
trust and respect between labor and management.
6.
Pursue growth through harmony with the global community via
innovative management.
7.
Work with business partners in research and manufacture to
achieve stable, long-term growth and mutual benefits, while
keeping ourselves open to new partnerships.
2 Lean Thinking [34]
1. Specify value from the standpoint of the end customer by product
family.
2. Identify all the steps in the value stream for each product family,
eliminating whenever possible those steps that do not create value.
3. Make the value-creating steps occur in tight sequence so the product
will flow smoothly toward the customer.
4. As flow is introduced, let customers pull value from the next
upstream activity.
5.
As value is specified, value streams are identified, wasted steps
are removed, and flow and pull are introduced, begin the process
again and continue it until a state of perfection is reached in
which perfect value is created with no waste.
3 Beyond Budgeting
[35]
Governance and transparency
1. Values Bind people to a common cause; not a central
plan
2. Governance Govern through shared values and sound
judgement; not detailed rules and regulations
3.
Transparency
Make information open and transparent; don't
restrict and control it
Accountable teams
4. Teams Organize around a seamless network of
accountable teams; not centralized functions
5. Trust Trust teams to regulate their performance; don't
micro-manage them
6.
Accountability
Base accountability on holistic criteria and peer
reviews; not on hierarchical relationships

20 M. Laanti
Goals and rewards
7. Goals Set ambitious medium-term goals, not short-term
fixed targets
8. Rewards Base rewards on relative performance; not on
meeting fixed targets
Planning and controls
9. Planning Make planning a continuous and inclusive
process; not a top-down annual event
10.
Coordination
Coordinate interactions dynamically; not through
annual budgets
11. Resources Make resources available just-in-time; not just-in-
case
12. Controls Base controls on fast, frequent feedback; not
budget variances
4 Blue Ocean [36]
1. Reconstruct market boundaries. This principle identifies the paths by
which managers can systematically create uncontested market space
across diverse industry domains, hence attenuating search risk. Using a
Six Paths framework, it teaches companies how to make the competition
irrelevant by looking across the six conventional boundaries of
competition to open up commercially important blue oceans.
2. Focus on the big picture, not the numbers. This principle, which
addresses planning risk, presents an alternative to the existing strategic
planning process, which is often criticized as a number-crunching
exercise that keeps companies locked into making incremental
improvements. Using a visualizing approach that drives managers to
focus on the big picture, this principle proposes a four-step planning
process for strategies that create and capture blue ocean opportunities.
3. Reach beyond existing demand. To create the greatest market of new
demand, managers must challenge the conventional practice of aiming for
finer segmentation to better meet existing customer preferences, which
often results increasingly small target markets. Instead, this principle,
which addresses scale risk, states the importance of aggregating demand,
not by focusing on the differences that separate customers but rather by
building on the powerful commonalities across noncustomers.
4. Get the strategic sequence right. The fourth principle describes a
sequence that companies should follow to ensure that the business model
they build will be able to produce and maintain profitable growth. When
companies follow the sequence of (1) utility, (2) price, (3) cost, and (4)
adoption requirements, they address the business model risk.
The remaining two principles address the execution risks of blue ocean
strategy.
5. Overcome key organizational hurdles. Tipping point leadership shows
managers how to mobilize an organization to overcome the key
organizational hurdles that block the implementation of a blue ocean
strategy. This principle mitigates organizational risk, outlining how
leaders and managers can surmount the cognitive, resource, motivational,
and political hurdles in spite of limited time and resources.
6. Build execution into strategy. This principle introduces fair process to
address the management risk associated with people’s attitudes and
behaviors. Because a blue ocean strategy represents a departure from the
status quo, fair process is required to facilitate both strategy making and
execution by mobilizing people for the voluntary cooperation needed for
execution. By integrating execution into strategy formulation, people are
motivated to act.