Tag: Enterprise

Enterprise Transition Community | Glossary

Prashant MJ Leave a comment

Definition:

Enterprise Transition Community (ETC) is a small group in an organisation that supports the initiatives, efforts to introduce and improve Scrum. It exists to create a culture and environment where change can be released by members who are passionate about the success of the organisation. The acronym ETC is consistently used by Ken Schwaber in “The Enterprise in Scrum”.

It does this by not imposing changes but by guiding groups who are implementing changes, by removing obstacles, by creating energy and excitement for the change. The members of ETC are not more than a dozen but comes from the highest level involved in the transition to Scrum. If the company is adopting Scrum organisation-wide, the ETC should include senior people from Engineering, Development, VPs where the key is that ETC is made up of most senior people for the level at which transition is happening.

Further Reading:
Book: SUCCEEDING WITH AGILE Software Development Using Scrum by Mike Cohn

Lean Budget | Glossary

Prashant MJ Leave a comment

Definition:

SAFe Principle #1 – Take an economic view highlights the key role of economics in successful solution development. SAFe recommends a dramatically different approach to budgeting, reducing the overhead and costs associated with traditional cost accounting while empowering decentralise decision making.

Lean enterprise moves to ’Lean Budgeting, beyond project cost accounting’ which provides effective financial control over all investments with far less overhead and friction. Lean Budget is a set of practices empowering value streams rather than projects while maintaining financial and fitness-for-use governance.

In Traditional way, cost-center budgeting creates multiple problems where the project budget process is slow and complicated, where it requires many individual cost centre budgets to fund. This leads to fine-grained decisions early in the ‘cone of uncertainty’. Project based constraints are induced which impede adaptability and positive economic outcomes. Traditional cost accounting undermines the goal of faster delivery and better economic outcomes.

Lean Agile enterprise moves from project based, cost-center accounting to a more streamlined, leaner budget process where funding is allocated to long lived value streams. Each value stream budget can be adjusted over time a PI boundaries, based on relative value that each value stream provides to the portfolio.

Further Reading:

Book: Principles of Product Development Flow: Second Generation Lean Product Development
by Don Reinertsen
https://www.scaledagileframework.com/economic-framework/
https://www.scaledagileframework.com/lean-budgets/