XR16 Agile Phase I – The Pragmatic Case Study of Schneider National 2005 AGILE CONFERENCE XR16 Agile Phase I – The Pragmatic Case Study of Schneider National

Schneider National, Inc. Schneider National, Inc. is a premier provider of transportation, logistics, and related services $3.2 billion in revenue in 2004 Operate 14,000 tractors, 15,500 drivers, and 48,000 trailers with 21,900 associates operating in 28 countries Purchase $1.7 billion in 3rd party transportation from 6,000 carriers Pay 104 million invoices totaling $7.8 billion to 8,500 carriers Commitment to superior information and communications technology We are known for the orange trucks, but our portfolio of services has grown to include intermodal/rail service, Logistics and financial services. In addition, we’ve expanded our portfolio of truckload services. Safe, courteous, hustling associates creating solutions that excite our customers. Copyright © Schneider National, Inc. – Contents of this document should not be reproduced without permission.

Schneider IT at a Glance 400+ Associates Utilize onsite contractors and offshore Ranked 15th Best IT Place to Work by Computer World Technology – JAVA J2EE, Websphere, DB2, Cognos, Oracle, COBOL, C++, Lawson, Siebel CRM Deploy software in 3 releases (every 4 months) in a year CIO – Judy Lemke The operating principles you see described here are driven by market conditions and will change periodically. These principles will support our strategies and drive our actions during upcoming years. Earnings, far more than revenues, will be the most important driver of our growth. Growth for the sake of growth is not enough; we must put the focus on earnings. Customer satisfaction and synergistic opportunities are complementary concepts, allowing us to come to the table with a complete portfolio of services and the ability to leverage our capabilities. Great companies have great balance sheets and can generate lots of cash. Revenue, when moved across our cost base, will determine the strength of our competitive edge. We are a service business with a strong need to develop our human capital. Our decisions must be data-driven, requiring robust dialog among our leaders and associates alike.

Reasons SNI Pursued Agility Corporate culture based on constant improvement and innovation Always looking for ways to do things better, faster, less expensively Provide greater delivery flexibility to the business Improve quality of delivery Improve developer’s quality of life

Kick Start the Process Researched Agile/Iterative concepts and benefits Reviewed with IT Leadership Attended Agile conference Developed plan of attack

Outside Experience Attended XP/Agile Universe 2004 Observations Gathered learnings Educated our people Refined understating of Agile/Iterative concepts Observations No cookbook existed Situational Point vs. counter point Minimal corporate experiences to reference Academic information … We needed to mold approaches into an SNI Agile Method

What Schneider Did … Selected pilot project with following criteria Sufficient size Team leadership Project Management Technical Strong customer relationship Change enablers Utilization of offshore Broke a four month release cycle into three 30-45 day iterations Aligned and worked closely with an offshore provider Developed iterative milestones to track progress

What Schneider Did … (cont) Buy-in from other IT groups Data Management Group (DAs and DBAs) Knowledge Services Technical Services (Hosting Group) Training Team Technical Architecture Addressed their concerns Environment conflicts Data changes Code contention

What Schneider Did … (cont) At the end of the first iteration, established a open pod concept Concerns raised include: Privacy Noise Different work pieces Explained Benefits Communication & Collaboration Integration of team Reduce learning curve Self policing

Eight Person Pod Layout

The Results So Far … Very successful pilot – we delivered! Rolled out SNI Agile Method to more project teams Quality improvement Improved communication & collaboration Accelerated functionality Eliminated non-value add functionality Defects are down, on schedule, on budget! Pods a success Quality of life improved

Watch outs One size does not fit all Business commitment and involvement FUD (Fear-Uncertainty-Doubt) factor

What’s next for SNI and Agile Continue rolling out to more project teams More Pods Share experiences Continually adjust Iterations to production

Conclusion Iterative successful for SNI… pragmatically Re-shaping deployment process Flexibility Quality of life for Project Team

Conclusion Right Functionality at the Right Time for the Right Cost

Questions?