Production capital follows financial capital

Installation Period
Turning Point
Deployment Period

What is SAFe?
SAFe as an operating system for Business Agility

Why SAFe?
Happier Employees,
Increase in Productivity,
Faster Time to Market,
Defect Reduction

The Seven Core Competencies of Business Agility

Left Side (Execution)

Enterprise Solution,

Agile Product Delivery,

Team And Technical Agility,

Right Side (Value)

Lean Portfolio Management,

Organizational Agility,

Continuous Learning Culture,

Lean-Agile Leadership

Exemplifying SAFe core values

Alignment,
Transparency,
Built-in Quality,
Program Execution

SAFe House of Lean

Roof - Value
Base - Leadership
L-R
Respect for people and culture
Flow
Innovation
Relentless improvement

Value
Achieve the shortest sustainable lead time with:
► The best quality and value to people and society
► High morale, safety, and Customer delight

Respect for people and culture

► Generative culture
► People do all the work
► Your Customer is whoever consumes your work
► Build long-term partnerships based on trust
► To change the culture, you have to change the organization

Flow
► Optimize sustainable value delivery
► Build in quality
► Understand, exploit, and manage variability
► Move from projects to products

Innovation
► Innovative people
► Provide time and space for innovation
► Go see
► Experimentation and feedback
► Innovation riptides
► Pivot without mercy or guilt

Relentless improvement
► A constant sense of danger
► Optimize the whole
► Problem-solving culture
► Base improvements on facts
► Reflect at key Milestones

Leadership
► Lead by example
► Adopt a growth mindset
► Exemplify the values and principles of Lean-Agile and SAFe
► Develop people
► Lead the change
► Foster psychological safety

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The Agile Manifesto
Individuals and interactions over processes and tools Working software over
comprehensive documentation Customer collaboration over contract negotiation
Responding to change over following a plan

The Agile Manifesto principles

1. Our highest priority is to satisfy the customer through early and continuous
delivery of valuable software.
2. Welcome changing requirements, even late in development. Agile processes harness
change for the customer's competitive advantage.
3. Deliver working software frequently, from a couple of weeks to a couple of
months, with a preference for the shorter timescale.
4. Business people and developers must work together daily throughout the project.
5. Build projects around motivated individuals. Give them the environment and
support they need, and trust them to get the job done.
6. The most efficient and effective method of conveying information to and within a
development team is face-to-face conversation.
7. Working software is the primary measure of progress. 8. Agile processes promote
sustainable development. The sponsors, developers, and users should be able to
maintain a constant pace indefinitely.
9. Continuous attention to technical excellence and good design enhances agility.
10.Simplicity—the art of maximizing the amount of work not done—is essential.
11. The best architectures, requirements, and designs emerge from self-organizing
teams.
12. At regular intervals, the team reflects on how to become more effective, then
tunes and adjusts its behavior accordingly.

Agile economics
Deliver early and often
Deliver value incrementally
Early delivery has higher value

SAFe Lean-Agile Principles

#1 Take an economic view
#2 Apply systems thinking
#3 Assume variability; preserve options
#4 Build incrementally with fast, integrated learning cycles
#5 Base milestones on objective evaluation of working systems
#6 Visualize and limit WIP, reduce batch sizes, and manage queue lengths
#7Apply cadence, synchronize with cross-domain planning
#8 Unlock the intrinsic motivation of knowledge workers
#9 Decentralize decision-making
#10 Organize around value

#1 Take an economic view

Agile economics: Deliver early and often
Deliver value incrementally
Early delivery has higher value

Solution economic trade-offs

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

#2 Apply systems thinking

The Solution and the Enterprise are both affected by the following:
► Optimizing a component does not optimize the system (Focus on the delays!!!!!)
► 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

#3 Assume variability; preserve options

► 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

#4 Build incrementally with fast, integrated learning cycles

PDCA
Plan, Do, Check, Adjust

PDCA
Plan, Do, Check, Adjust

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Integration Points
Control Product development and reduce risk

#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.

Phase gates fix requirements and designs too early, making adjustments too late and
costly as new facts emerge.

Apply objective Milestones - Program Increment (PI) System Demos are orchestrated
to deliver objective progress, product, and process Metrics.

Iterate to the optimum Solution

Objective Milestones facilitate learning and allow for continuous, cost-effective
adjustments towards an optimum Solution.

#6 Visualize and limit WIP, reduce batch sizes, and manage queue lengths
Reduce batch size for higher predictability and optimize flow

Finding optimal batch size

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 batch size smaller

Reducing optimal batch size

Reducing transaction costs reduces total costs and lowers optimum batch size.
► Reducing batch size: - Increases predictability - Accelerates feedback - Reduces
rework - Lowers cost ► Batch size reduction probably saves twice what you would
think

Manage queue lengths

Long queues: All bad
Longer lead times
Increased risk
More variability
Lower Quality
Less Motivation

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

Little's Law
Average wait time = average queue length/average processing rate

Cadence and synchronization

Cadence
► Converts unpredictable events into predictable occurrences and lowers cost

► Makes waiting times for new work predictable

► Supports regular planning and cross-functional coordination

► Limits batch sizes to a single interval

► Controls injection of new work

► Provides scheduled integration points

Note: Delivering on cadence requires scope or capacity margin

Synchronization

► Causes multiple events to happen simultaneously

► Facilitates cross-functional trade-offs

► Provides routine dependency management

► Supports full stem integration and assessment

► Provides multiple feedback perspectives

Note: To work effectively, design cycles must be synchronized

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Unlocking intrinsic motivation with autonomy, mastery, and purpose
► Autonomy is the desire to be self-directed and have control over what we work on,
how we do our work, and who we work with
► Mastery is the urge to get better at what we do and improve our personal and team
skills
► Purpose is the desire to do something that matters and has meaning

Decentralize decision-making
Centralize

► Infrequent – Not made very often and usually not urgent (Example:
Internationalization strategy)

► Long-lasting – Once made, highly unlikely to change (Example: Common technology

platform)

► Significant economies of scale – Provide large and broad economic benefit

(Example: Compensation strategy)

Decentralize everything else

► Frequent – Routine, everyday decisions (Example: Team and Program Backlog)

► Time critical – High cost of delay (Example: Point release to Customer)

► Requires local information – Specific and local technology or Customer context is

required (Example: Feature criteria)
Why organize around value
Value doesn't follow silos

Instead, organize around Development Value Streams

Build cross-functional Agile Teams

Agile Teams are cross-functional, self-organizing entities that can define, build,
test, and where applicable, deploy increments of value.
► Optimized for communication and delivery of value ► Deliver value every two weeks
► Contain two specialty roles: - Scrum Master - Product Owner

Responsibilities of the the Agile Tea

► Five to eleven team members
► Create and refine Stories and acceptance criteria
► Define, build, test and develop Stories
► Build quality in to each increment of the solution.
► Develop and commit to team PI Objectives and Iteration plans

Agile Teams have two speciality roles

Scrum Master

• Coaches the Agile Team in selfmanagement

• Helps the team focus on creating increments of value each iteration

• Facilitates the removal of impediments to the team’s progress

• Ensures that all team events take place, are productive and kept within the
timebox

Product Owner

• Contributes to the Vision and Roadmap

• Acts as the Customer for team questions

• Creates, clearly communicates and accepts Stories

• Prioritizes the Team Backlog

Teams execute Iterations with Scrum

Scrum is built on transparency, inspection, adaptation, and short learning cycles

Teams visualize flow with Kanban

Kanban visualizes and optimizes the flow of work through the system. (Backlog,
Analyze, Review, Build, Integrate and Test, Accepted)

Built-in Quality practices for software teams

Agile testing, behavior-driven development, test-driven development, refactoring,
code quality, and Agile architecture

Built-in Quality practices for hardware teams

Support hardware quality with exploratory, early iterations, frequent system-level
integration, design verification, Model-Based Systems Engineering (MBSE), and set-
based design.
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Agile Release Trains (ARTs)
► A virtual organization of 5 - 12 teams (50 - 125+ individuals)
► Synchronized on a common cadence, a Program Increment (PI)
► Aligned to a common mission via a single Program Backlog

Teams on the ART are organized for flow

Stream-aligned team – organized around the flow of work and has the ability to
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.

Roles on the Agile Release Train

Release Train Engineer acts as the chief Scrum Master for the train.

System Architect/Engineering provides architectural guidance and technical

enablement to the teams on the train.

Business Owners are key stakeholders on the Agile Release Train.

Product Management owns, defines, and prioritizes the Program Backlog.

System team provides processes and tools to integrate and evaluate assets early and
often.

Why Customer Centricity?

Customer-centric Enterprises deliver whole-product Solutions that are designed with
a deep understanding of Customer needs.

What is Design Thinking?

Problem Space
Understand the problem (Discover and Define)
Solution Space
Design the right solution (Develop and Deliver)

Use personas to understand Customers

Personas are fictional characters that represent the different people who might use
your product.

Personas:
► Convey the problems they're facing in context and key triggers for using the
product
► Capture rich, concise information that inspires great products without
unnecessary details

Use empathy maps to identify with Customers

The empathy map is a tool that helps teams develop deep, shared understanding and
empathy for the Customer
Who are we empathizing with?
What do they hear?
What do the do?
What do they think and feel?
What do they need to do?
What do they see?
What do they say?

Prioritizing the Program Backlog

Features are managed through the Program Backlog

The Program Backlog is the holding area for upcoming Features that will address
user needs and deliver business benefits for a single Agile Release Train (ART).

What do Features represent?

Features represent the work for the Agile Release Train

►The Feature benefit hypothesis justifies development cost and provides business
perspective for decision-making
► Acceptance criteria are typically defined during Program Backlog refinement
► Reflect functional and nonfunctional requirements
► Fits in one PI

Estimate Stories with relative Story points

► A Story point is a singular number that represents: - Volume: How much is there?
- Complexity: How hard is it? - Knowledge: What do we know? - Uncertainty: What's
not known?
► Story points are relative. They are not connected to any specific unit of
measure.

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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
► What is the cost to implement the valuable thing?

WSJF
Weighted Shortest Job First

In the general case, give preference to jobs with shorter duration and higher CoD,
using weighted shortest job first (WSJF):

Components of cost of delay

User-Business Value
Time Criticality
Risk Reduction & Opportunity Enablement (RR&OE)

Calculate WSJF with relative estimating

(User-business value + Time criticality + Risk reduction and/or opportunity
enablement) / Job size

What is PI Planning?
Program Increment (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
► Architect/Engineering and 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/Program PI Objectives
► Identifying dependencies and fostering cross-team and cross-ART collaboration
► Providing the opportunity for just the right amount of architecture and Lean User
Experience (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.
► They often directly relate to intended Features in the backlog.
► Other examples:
- Aggregation of a set of Features
- A Milestone like a trade show
- An Enabler Feature supporting the implementation
- A major refactoring

Maintain predictability with uncommitted objectives

Uncommitted objectives help improve the predictability of delivering business value

► They are planned and aren't extra things teams do 'just in case you 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

PI Planning - Final plan review

Teams and Business Owners peer-review all final plans.

Building the final plan

► Final plans are reviewed by all teams
► Business Owners are asked whether they accept the plan
► If so, the plan is accepted
► If not, the plans stay in place, and the team continues planning after the review

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Addressing program risks
ROAMing risks:

Resolved - Has been addressed. No longer a concern. Owned - Someone has taken
responsibility.

Accepted - Nothing more can be done. If risk occurs, release may be compromised.
Mitigated - Team has plan to adjust as necessary

Confidence vote: Team and program

After dependencies are resolved and risks are addressed, a confidence vote is taken
by the team and program.

ART events drive the train

ART events create a closed-loop system to keep the train on the tracks.

Study ART Events vs Team Events - Page 144

ART sync is used to coordinate progress

Scrum of Scrums

▸ Visibility into progress and impediments

▸ Facilitated by RTE

▸ Participants: Scrum Masters, other select team members, SMEs if necessary

▸ Weekly or more frequently, 30–60 minutes

▸ Timeboxed and followed by a meet-after

PO Sync

▸ Visibility into progress, scope, and priority adjustments

▸ Facilitated by RTE or PM

▸ Participants: PM, POs, other stakeholders, and SMEs as necessary

▸ Weekly or more frequently, 30–60 minutes

▸ Timeboxed and followed by a meet-after

Innovation and Planning (IP) Iteration

Facilitate reliability, Program Increment readiness, planning, and innovation

► Innovation: Opportunity for innovation, hackathons, and infrastructure

improvements
► Planning: Provides for cadence-based planning
► Estimating guard band for cadence-based delivery

Without the IP Iteration...

► Lack of delivery capacity buffer impacts predictability
► Little innovation; tyranny of the urgent
► Technical debt grows uncontrollably
► People burn out
► No time for teams to plan, demo, or improve together

Improving results with the Inspect and Adapt event

3 parts of Inspect and Adapt:
1) The PI System Demo
2) Quantitative and Qualitative Measurement
3) Problem-Solving Workshop
PI System Demo
► Often led by Product Management, POs, and the System Team
► Attended by Business Owners, ART stakeholders, Product Management, RTE, Scrum
Masters, and teams

Program performance reporting

► 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 program
predictability measure.

A CALMR approach to DevOps (CALMR)

► Culture - Establish a culture of shared responsibility for development,
deployment, and operations.
► Automation - Automate the Continuous Delivery Pipeline.
► Lean flow - Keep batch sizes small, limit WIP, and provide extreme visibility.
► Measurement - Measure the flow through the pipeline. Implement full-stack
telemetry.
► Recovery - Architect and enable low-risk releases. Establish fast recovery

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Building the Continuous Delivery Pipeline with DevOps
Continuous exploration, integration and deployment

What is 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 the
Enterprise

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

Map Solutions by horizon

Horizon 3 (Evaluating), Horizon 2 (Emerging), Horizon 1(Investing and Extracting),
Horizon 0 (Retiring)

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

Architect for releasability

Architectural Runway is existing code, hardware components, marketing branding
guidelines, etc., that enable near-term business Features.
► Enablers build up the runway
► Features consume it
► Architectural Runway must be continuously maintained
► Use capacity allocation (a percentage of train's overall capacity in a PI) for
Enablers that extend the runway

Identify opportunities for the portfolio's future state with SWOT

► Establishes an understanding of the portfolio's strengths and weaknesses
► Helps identify the most significant opportunities and potential threats

TOWS strategic options matrix

► The key difference between the SWOT and TOWS analyses are the outcomes that they
create
► TOWS analysis is used primarily for identifying strategic options to create a
better future state
► SWOT analysis is a great way to uncover the current situation of your Value
Stream, product, or portfolio

Envision the future state

► The portfolio canvas captures the current state
► Use SWOT and TOWS to brainstorm potential future states
► Evaluate your options and select a future state ► Identify the Epics that will
get you to this future state

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 (

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Epics are described with four major fields:
Epics are initially described with the Epic hypothesis statement

► The value statement - Describes the Epic in general terms: the "for-who-the ..."
portion
► Business outcomes hypothesis - 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

What is important on the EPIC Hypothesis Statement

Epic Description & Expected Outcomes

Problem: Cost-center budgeting

Traditional project-based, cost-center budgeting creates overhead and friction,
lowers velocity.

Establishing Lean Budgets and Guardrails - 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

Budgets are not affected by Feature overruns or changing priorities

Maintain the Guardrails

► Apply investment horizons
► Utilize capacity allocation
► Approve Epic initiatives
► Continuous Business Owner engagement
What do MVPs foster?
MVPs foster innovation and control scope

Extend into the business with Agile business teams

Agile Team maturity cycle

Be Agile
Know your Value Stream
Specialize the Principles & practices

Built-in Quality practices for software teams

Include software quality practices (most inspired by XP) like, Agile testing,
behavior-driven development, test-driven development, refactoring, code quality,
and Agile architecture.

How long is PI Planning

8-12 weeks

In the PI planning process, how many features to include?

10

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At the end of the PI Objectives
There is a Business Value and an Actual Value

When calculating capacity

Use the default method for the first plan since you have zero history...

Who comes us with the PI objective?

Team

Who drives the train?

ART Events

Devops is
A mindset and a culture of shared responsibility

How are epics initially described?

Epic hypothesis statement

The Solution funds

Value Streams, not projects

Who manages EPICS?

Portfolio

Who manages the Features?

ART

Who manages the User Stories

Team

What is a portfolio?
Collection of development value streams

What must management do for a successful Agile transformation?

Commit to quality and be the change agent in the system

How does SAFe provide a second operating system that enables Business Agility?
By focusing on customers, products, innovation, and growth

Which of the core competencies of the Lean Enterprise helps align strategy and
execution?
Lean Portfolio Management

The House of Lean is a classic metaphor describing the mindset essential for Lean
thinking. Which one of the four pillars advocates a 'Go See' mindset?
Innovation

What are the three primary keys to implementing flow? (Choose three.)
Reduce the batch sizes of work; Visualize and limit work in process (WIP);Manage
queue lengths;

What is an example of applying cadence-based synchronization in SAFe?

Teams align their Iterations to the same schedule to support communication,
coordination, and system integration

What is one benefit of unlocking the intrinsic motivation of knowledge workers?

To provide autonomy with purpose, mission, and minimum constraints

What is the biggest benefit of decentralized decision-making?

Delivering value in the shortest sustainable lead time

What is the basic building block when organizing around value?

Agile Teams

What is one issue when organizing around hierarchical functions?

It is not how value flows

The Agile Release Train uses which type of teams to get work done?
Cross-functional teams

What is part of the role of Product Management?

To prioritize the Program Backlog

What is the impact of Customer Centricity?

To understand the Customer's needs

Which statement correctly describes one aspect of the team's commitment at the end
of PI Planning?
A team does not commit to uncommitted objectives

What is considered an anti-pattern when assigning business values to team PI

Objectives?
All PI Objectives are given a value of 10

On day two of PI Planning, management presents adjustments based on the previous

day's management review and problem solving meeting. What is one possible type of
adjustment they could make?
Adjust business priorities

In the Program Kanban some steps have work in process (WIP) limits. Why is this
necessary?
To ensure large queues are not being built
What is one of the Agile Release Train sync meetings?
Scrum of scrums

Which statement is true about the Innovation and Planning (IP) Iteration?
Without the IP Iteration, there is a risk that the 'tyranny of the urgent'
outweighs all innovation activities

Which statement is true about DevOps?

DevOps is an approach to bridge the gap between development and operations

If a program repeatedly shows separate Feature branches rather than a true System
Demo, which practice should be reviewed to address the issue?
Continuous Integration

What can be used to capture the current state of the portfolio?

Portfolio Canvas

What is a minimum viable product?

A minimal version of a new product used to test a hypothesis

What is one Guardrail on Lean Budget spend?

Continuous Business Owner engagement

What can be used to script the change to SAFe?

The Implementation Roadmap

What is the last step in Kotter's approach to change management?

Anchor new approaches in the culture

Which statement accurately characterizes Strategic Themes?

They are business objectives that connect the SAFe portfolio to the Enterprise
business strategy

What is the best measure of progress for complex system development?

System Demo

What is one component of the Continuous Delivery Pipeline?

Continuous Exploration

Who has content authority to make decisions at the User Story level during Program
Increment (PI) Planning?
Product Owners

What is found on a program board?

Feature delivery, dependencies, and Milestones

Design Thinking identifies at least four new ways to measure success. What are two
of those ways?
Design Thinking is a clear and continuous understanding of the target market,
Customers, the problems they are facing, and the jobs to be done.

Product Management has content authority over the Program Backlog. What do Product
Owners have content authority over?
Team Backlog

When basing decisions on economics, how are lead time, product cost, value, and
development expense used?
To identify different parameters of the economic framework
What is the foundation of the SAFe House of Lean?
Leadership

What can be used as a template for putting SAFe into practice within an
organization?
ImplementationRoadmap

What are the last three steps of the SAFe Implementation Roadmap?
1) Launch more ARTs and Value streams
2) Extend to the portfolio
3) Accelerate

What is Business Agility?

The entire organization—not just development—is engaged in continually and
proactively delivering innovative business solutions faster than the competition.

Which statement fits with the SAFe Core Value of Built-in Quality?
You cannot scale crappy code

Which statement is a principle of the Agile Manifesto?

Simplicity-the art of maximizing the amount of work not done-is essential

Which is an aspect of systems thinking?

Optimizing a component does not optimize the system

What are the three primary keys to implementing flow? (Choose three.)
Manage queue lengths;Visualize and limit work in process (WIP);Reduce the batch
sizes of work;

What is an example of applying cadence-based synchronization in SAFe?

Teams align their Iterations to the same schedule to support communication,
coordination, and system integration

Which two quality practices apply to Agile teams? (Choose two.)

Establishing flow;Peer review and pairin