Evolving a Continuous Improvement System Dan Craig Director, Agile CoE

Fannie Mae Single Family Multifamily By the NUMBERS A leading source of financing for mortgage lenders helping to make the 30-year, fixed rate possible. Single Family Helping lenders serve today’s home buyers and homeowners. Multifamily Providing financing for quality rental housing in every market, every day. By the NUMBERS 4 Years Agile Transformation 240 Agile Teams 97% Agile Releases

Continuous Improvement is the most critical element of agile Continuous Improvement is the most critical element of agile. With it, we will find our way to every other element. Without it, the impact of other elements is short-lived. -Fannie Mae Agile CoE

Where our Journey Started… In 2016, agile adoption grew from 32 to 160 agile teams but we saw little Continuous Improvement. Here is why: No Clear Vision of Target State Teams unclear regarding the desired target state of agile delivery within Fannie Mae. Leadership Disengaged from Teams Leaders unclear on how to support agile teams and still relying on traditional management practices. No Consistent, Meaningful Metrics Wide variance in tooling and inconsistent processes make organic, quantifiable metrics impossible. No Structure for Improvement With only a newly formed Agile CoE, the enterprise had no change management for improvement.

Define Target State Create an Agile Maturity Model (AMM) to ground enterprise on desired future state. SDLC AMM Playbook CoE Products Fannie Mae Agile Maturity Model (AMM) Level 1 – Foundational Level 2 – Transparent Level 3 – Predictable Level 4 – Aligned Level 5 – High-Performing 60+ Practices Portfolios Our Hypothesis Publication of an Agile Maturity Model (AMM) will: Inform teams and leaders on desired future state Focus team retrospectives and improvement backlogs Aid communication between teams and Leaders Programs Teams Benefits Learning Survey Established a shared vision Created a standard taxonomy for maturity Helped new teams start their journey Allowed leaders to continue “managing” AMM Score became goal rather than aspiration Impeded improvement on mature teams

Dashboard Metrics Release a Delivery Metrics dashboard to standardize at the Team and Program level. SDLC AMM Playbook Metrics CoE Products Fannie Mae Agile Delivery Metrics (AMM) Team Level Sprint Burndown Sprint Velocity Technical Debt Incurred Automated Test Coverage / Pass % Escaped Defects Program Level Release Burnup Running Tested Features Portfolios Our Hypothesis Standardizing Delivery Metrics will: Counter-balance focus on subjective AMM scores and practices Pivot discussions towards quantitative over qualitative Programs Teams Benefits Learning Survey Helped teams focus on critical metrics Provided standard for status delivery Reduced traditional PMO reporting Armed leaders with more data to “manage” Did not facilitate conversations between teams and leadership

Manage the Change CoE Products Implement structured framework to support improvement activities. SDLC AMM AHR Playbook Metrics CoE Products Portfolios Our Hypothesis A structured approach to continuous improvement will: Drive a connection between leaders and teams Identify systemic issues across programs Programs CIT Teams CIT Benefits Learning Survey Facilitated conversations with teams Provided insight for future investment in training Begins pivot from “managers” to “leaders” Leaders unskilled at work decomposition and managing WIP Insufficient transparency back to teams Escalations

Closing the Loop Trained leadership in Scrum and techniques for structured Problem Solving. SDLC AMM AHR Playbook Metrics CoE Products Portfolios Sprint Our Hypothesis Guiding Leadership to problem solve on a predictable cadence will: Promote a culture of leadership and trust Incent teams to report MORE impediments Make delivery more efficient and effective Programs Sprint CIT Teams CIT Benefits Learning Immediate positive impact to culture Teams gain full transparency Impediments actually being removed! Leaders unable to prioritize with empirical data. Still no way to measure the effect of change Escalations

Delivery Outcomes Release an Outcome Metrics dashboard to reflect state of delivery for each product. SDLC AMM AHR Playbook Metrics Outcomes CoE Products Fannie Mae Agile Outcome Metrics Speed Lead Time Release Frequency Stability Release Failure % Mean Time to Recovery (MTTR) Quality Escaped Defects Customer Reported Issues Satisfaction Customer (net promoter score) Employee Portfolios Sprint Our Hypothesis A focus on Outcome-based metrics will: Allow leaders to guide continuous improvement with empirical evidence Benchmark Fannie Mae delivery against industry Programs Sprint CIT Teams CIT Benefits Learning Leaders are learning to ask for desired outcomes Focus on health of the delivery “engine” Need for focus on actual business value delivered. That’s Next! Escalations

Our Continuous Improvement System After three years of systems thinking and experimentation, we have evolved a robust improvement system. STRUCTURED APPROACH ENGAGED LEADERSHIP Regular All Levels Structured / Tool-Based Transparent Well Understood Escalation Path Strategy Aligned Continuous Improvement Teams Cross Organizational Lines Program / Portfolio Level Scrum (or Kanban) Delivery Backlog Team Fed Accountability / Demos Problem Solving Approach Leadership MEANINGFUL METRICS CHANGE CULTURE Organic / Tool Based Quantitative Outcome Focused Consistent Timely Organic Metrics Culture Shared Vision Commitment Time Allocation Accountability Shared Learning Properly Resourced Recognition & Celebration

Thank You!