Introducing SAFe® 5.0

Introducing SAFe 5.
0 ®
Your Operating System for Business Agility
© Scaled Agile, Inc. © Scaled Agile, Inc. 1

Those who master large-scale software
delivery will define the economic
landscape of the 21st century.
—Mik Kersten
© Scaled Agile, Inc. 2

Five technological revolutions
Installation Period Turning Point Deployment Period
1771 1793-1801
Industrial Canal Mania (UK) Great British Leap

Revolution
1829 1848-1850
Age of Steam
Railway Mania (UK) The Victoria Boom
& Railways
1875 1890-1895
Age of Steel & London funded global market Belle Epoque (Europe)
Heavy Engineering infrastructure build-up Progressive Era (USA)
1908 1929-1943
Age of Oil &

The Roaring Twenties Post-War Golden Age
Mass Production
1971 2000-?
Age of Software Dotcom and internet mania;

?
& Digital Global finance and housing bubbles
Adapted from Technological Revolutions and the Age of Software, Carlota Perez
Production capital follows financial capital
Installation Period – New technology and financial capital combine to

create a “Cambrian explosion” of new entrants, disrupting the entire
industries from the previous age
Turning Point – Existing business either master the new technology or

decline and become relics of the last age.
Deployment Period – Production capital of the new technological giants

starts to take over.
Installation Period Turning Point Deployment Period
1971 2000-?
Age of Software Dotcom and internet mania;

?
& Digital Global finance and housing bubbles

Are we at the turning point?
• “BMW Group’s CEO expects that in their future more than half of its R&D staff
will be software developers.” —Mik Kersten, Project to Product
• Amazon and Whole Foods Merger to Introduce Cross-Platform Selling and

Lower Prices (Forbes, August 2017)
• The market cap of Tesla ($43B market cap, $21B revenue) now exceeds the
market cap of Ford ($36.2B market cap, $160B revenue) 8:1 value ratio
(September 2019)
• Apple is now the biggest watchmaker in the world

(Investopedia 2019)

Competing in the Age of Software
The problem is not with our organizations realizing that

they need to transform; the problem is that organizations
are using managerial frameworks and infrastructure
models from past revolutions to manage their
businesses in this one.
—Mik Kersten

Rethinking the organization
The world is now changing at a rate at which the

basic systems, structures, and cultures built over
the past century cannot keep up with the
demands being placed on them.
—John P. Kotter

We started with a network

We add hierarchy for stability and execution
Speed of Innovation
Customer
Centricity

Guess what happens?

The solution is not to trash what we know and
start over but instead to reintroduce a second
system—one which would be familiar to most
successful entrepreneurs.
You need a dual operating system.
—John P. Kotter

We need a dual operating system for business agility
Speed of Innovation
Customer
Centricity
Efficiency and stability

And we have just such an operating system at our fingertips
Value Stream Functional

Network hierarchy

SAFe 5.0 the operating system for Business Agility

SAFe 5.0 brings the focus back
to what it takes to bring great
solutions to the marketplace.

Achieving a state of business agility means
that the entire organization—not just
development—is engaged in continually and
proactively delivering innovative business
solutions faster than the competition.

SAFe 5.0 is a monumental release that I am
convinced will be key in helping countless
enterprise organizations succeed in their
shift from project to product
—Mik Kersten

Business Agility requires
technical agility and
a business-level commitment to
product and value stream
thinking.
And it requires that everyone

involved in delivering
business solutions use Lean
and Agile practices.
What is SAFe®?
©©Scaled
ScaledAgile,
Agile,Inc.
Inc. 19
The world’s leading framework
for business agility
SAFe® for Lean Enterprises is a knowledge base

of proven, integrated principles, practices, and
competencies for Lean, Agile, and DevOps.
scaledagileframework.com
Delivers business results
30%
Happier, 50%
more motivated Faster
employees Time-to-Market
35% 50%
Increase in Defect
Productivity Reduction
Typical results from scaledagile.com/case-studies

Within enterprise and government
(Dutch Tax Administration)
© Scaled Agile, Inc.

scaledagile.com/case-studies 22
Recent news
TransUnion’s CEO announces strong earnings and

innovation-driven growth, then points to SAFe:
“And we are improving our software

“… to create a complex platform with the capacity development capabilities by continuing to use
to quickly scale in a short amount of time. SAFe agile across our product and
Hennekens chose the SAFe (Scaled Agile technology organizations…we will continue to
Framework) methodology to do this due to its invest to improve our infrastructure and
reputation for handling challenging tasks at development capabilities to effectively meet
speed.” market needs.”
https://bit.ly/2QH0L2V
https://bit.ly/2KJZPXS

The seven core competencies
of Business Agility
©©Scaled
ScaledAgile,
Agile,Inc.
Inc. 24
Seven Core Competencies of Business
Agility

Why Lean-Agile
Leadership?
An organization’s managers,
executives, and other leaders
are responsible for the
adoption, success, and
ongoing improvement of Lean-
Agile development and the
competencies that lead to
business agility. Only they
have the authority to change
and continuously improve the
systems that govern how work
is performed.

Lean-Agile Leadership
The Lean-Agile Leadership

competency describes how
Lean-Agile Leaders drive
and sustain organizational
change and operational
excellence by empowering
individuals and teams to
reach their highest
potential.

Mindsets can change
“The basic tenets of Lean challenge many of the aspects of

traditional management theory and calls for a mindset that is
foreign to most executives.”
—Jacob Stoller, author of The Lean CEO
• Have Mindset awareness and openness to change

• Embody and exhibit the core values
• Exhibit Lean-Agile thinking and behaviors
• Understand, apply and teach Lean-agile principles

© Scaled Agile, Inc.
Respect for
people and culture
Work in the House of Lean
Flow
Innovation
VALUE
LEADERSHIP
Relentless
improvement
29
Embrace the Agile Manifesto
We are uncovering better ways of developing software by doing it and helping others do it.
Through this work we have come to value:
Individuals and interactions over processes and tools

Working software over comprehensive documentation
Customer collaboration over contract negotiation
Responding to change over following a plan
While there is value in the items on the right, we value the items on the left more.
agilemanifesto.org
Apply SAFe Lean-Agile Principles

Why Team and
Technical Agility?
Agile teams and teams of Agile
teams create and support the
business solutions that deliver
value to the enterprise’s
customers. Consequently, an
organization’s ability to thrive in
the digital age is entirely
dependent on the ability of its
teams to deliver solutions that
reliably meet a customer’s needs.

Team and Technical Agility
The Team and Technical Agility

competency describes the critical
skills and Lean-Agile principles
and practices that high-
performing Agile teams and
Teams of Agile teams use to
create high-quality solutions for
their customers.

Agile Teams
• Cross functional teams have all the skills they need to define, build, deliver and sustain value
• Teams iterate with Scrum, Kanban, XP, and SAFe scaled practices
• Feature teams deliver end to end value
• Component (complicated subsystem) teams build specialized components
• Enablement teams support DevOps, site reliability and specialty services
• Agile Business teams define, enable and support business solutions
Teams of Agile Teams
• Agile Release Trains (ARTs) are

cross-functional, cross-
component, business and
technology teams of Agile
teams
• Software, hardware, firmware,

security, compliance and more
• Organized around
enterprise Value Streams
• Virtual organizations (typically

50 – 125) people that define,
build, deliver and operate full
business solutions

Why Agile
Product Delivery?
In order to achieve Business
Agility, enterprises must rapidly
increase their ability to deliver
innovative products and
services. To be sure that the
enterprise is creating the right
solutions for the right
customers at the right time,
they must balance their
execution focus with a
customer focus.

Agile Product Delivery
Agile Product Delivery

is a customer-centric
approach to defining,
building, and releasing
a continuous flow of
valuable products and
services to customers
and users.

Customer Centricity and Design Thinking
Problem Space Solution Space
Epics &
Features
Gemba Walks Journey

Maps
Personas Prototyping
Empathy maps Story

Mapping
A clear and continuous understanding of the target market, customers,

the problems they are facing and the jobs to be done
DevOps and the Continuous Delivery Pipeline
Workflows, activities, and automation needed to shepherd

• Culture of shared responsibility a new piece of functionality from ideation to an on-demand
• Automate everything release of value to the end use
• Lean flow
• Measure flow
• Recovery

Agile Release Trains (ARTs) continuously deliver value
• 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

Synchronize with PI Planning
There is no magic in SAFe … except maybe for PI Planning

• All stakeholders face-to-face (but typically multiple locations)
• Management sets the mission, with minimum possible constraints
• Requirements and design emerge
• Important stakeholder decisions are accelerated
• Teams create—and take responsibility for—plans
For a short PI Planning

example, see:
https://bit.ly/2Y9cQQ2

Why Enterprise
Solution Delivery?
Humanity has always dreamed big;
and scientists, engineers, and
software developers then turn those
big dreams into reality. That requires
innovation, experimentation, and
knowledge from diverse disciplines.
Engineers and developers bring
Enterprise Solution Delivery
these innovations to life by defining
and coordinating all the activities to
successfully specify, design, test,
deploy, operate, evolve, and
decommission large, complex
solutions.

Enterprise Solution Delivery
The Enterprise Solution

Delivery competency
describes how to apply
Lean-Agile principles and
practices to the specification,
development, deployment,
operation, and evolution of
the world’s largest and most
sophisticated software
applications, networks, and
cyber-physical systems.

Align business and technology with the Solution Train
• Used to build large and complex customer Solutions that require the coordination of multiple Agile
Release Trains (ARTs) and Suppliers
• Aligns ARTs with a shared business and technology mission using the Solution Vision, Intent, Backlog,
and Roadmap
• Aligned Program Increments, integration, demos, and Inspect and Adapt

Nine best practices for Enterprise Solution Delivery
Continually refine the fixed/variable Solution Intent
Apply multiple planning horizons
Architect for scale, modularity, releasability, and serviceability

Enterprise Continually address compliance concerns
Solution
Build and integrate solution components and capabilities
Delivery with Agile Release Trains (ARTs) and Solution Trains
Apply ‘continuish integration’
Manage the supply chain with systems of systems thinking
Build a Continuous Delivery Pipeline
Evolve deployed systems

Why Lean Portfolio
Management?
Traditional approaches to
portfolio management were not
designed for a global economy
or the impact of digital
disruption. These factors put
pressure on enterprises to work
under a higher degree of
uncertainty, and yet deliver
innovative solutions much faster.

Lean Portfolio Management
The Lean Portfolio

Management competency
aligns strategy and execution
by applying Lean and
systems thinking approaches
to strategy and investment
funding, Agile portfolio
operations, and governance.

Meet business targets with strategy and investment funding
Strategy and investment funding ensures that the entire portfolio is

aligned and funded to create and maintain the solutions needed to meet
business targets.
Connect the portfolio to the Enterprise strategy

Enterprise
Enterprise
Executives
Executives Maintain a Portfolio Vision and Roadmap
Establish Lean Budgets and Guardrails

Business
Business Enterprise
Enterprise
Owners
Owners Architect
Establish portfolio flow
Architect Strategy &
Investment
Funding
Agile
Lean
Portfolio
Governance
Operations

Fund value streams aligned with the business strategy
Funding value streams instead of projects provides the following benefits:

• Full control of spend
• No costly and delay-inducing project cost variance analyses
• No resource reassignments
• No blame game for project overruns
Lean Budgets
Guardrails

Why
Organizational
Agility?
Without organizational agility,
enterprises simply cannot
respond sufficiently to the
challenges and opportunities
that today’s rapidly changing
markets present. Without it,
employees and the enterprise
associate an individual’s value
with their functional skills,
rather than business
outcomes.

Organizational Agility
The Organizational Agility

competency describes how
Lean-thinking people and
Agile teams optimize their
business processes, evolve
strategy with clear and
decisive new commitments,
and quickly adapt the
organization as needed to
capitalize on new
opportunities.

Respond quickly to opportunities and threats
• Continuous market sensing

• Make strategy changes decisively
• Organize and reorganize around value
• Innovate like a startup
• Implement changes quickly
• And…

Ignore
Sunk Costs

Why Continuous
Learning Culture?
In order to thrive in the current
climate, organizations must
evolve into adaptive engines of
change, powered by a culture
of fast and effective learning at
all levels. Learning
organizations leverage the
collective knowledge,
experience, and creativity of
their workforce, customers,
supply chain, and the broader
ecosystem.

Continuous Learning Culture
The Continuous Learning

Culture competency
describes a set of values
and practices that
encourage individuals—
and the enterprise as a
whole—to continually
increase knowledge,
competence, performance,
and innovation.

The management paradigm for the digital age

The management challenge
It is not enough that management commit

themselves to quality and productivity, they
must know what it is they must do.
Such a responsibility cannot be delegated.
—W. Edwards Deming
…and if you can’t come, send no one”

—Vignette from “Out of the Crisis,”, W. Edwards Deming
Lead the change: SAFe Implementation Roadmap
scaledagileframework.com/implementation-roadmap
Measure and grow assessment and practices

Measure and grow
Measure and Grow is

the way portfolios
evaluate their progress
towards business agility
and determine their next
improvement steps.

Explore the SAFe knowledge base
and find free resources:
▪ Articles
▪ Guidance
▪ Presentations
▪ White papers
▪ Videos
▪ Customer stories
▪ SAFe Glossaries in
multiple languages
scaledagileframework.com
Configure SAFe to meet your needs
Full Configuration
Large Solution Configuration
Portfolio Configuration
Essential Configuration

Produce consistent
results across the
enterprise with
Scaled Agile’s role-
based curriculum
scaledagile.com/learning

Connect with the
global SAFe Community
SAFe Community Platform

(accessible to those who certify)
500,000 +
SAFe Meetups
Find a SAFe Meetup near you at trained in SAFe
scaledagile.com/calendar and select SAFe
Meetup from the Event Type dropdown menu. in over 110 countries
SAFe Summits
Attend the world’s largest gathering of SAFe
professionals at the Global and Regional SAFe
Summit events. Details at safesummit.com.

What inspired us to begin the SAFe transformation was the need
to adapt to market conditions and to essentially deliver business
value faster.
We had all of the knowledge, all of the skills, but we just didn’t
have the experience. I think it was extremely important to work
with a Scaled Agile Partner, … to essentially shorten the
timeframe when we could take the wheel back and run the
transformation ourselves.
—Russ McCabe
Associate Director - Technology, AT&T

Work with a Partner
to ensure success
300
Global Partners
• Training and coaching for all in 50 countries & 350 cities
SAFe roles
• Implementation and consulting services

across industries and disciplines
• Platforms for SAFe automation,

visibility, and flow
scaledagile.com/find-a-partner

Questions

Introducing SAFe® 5.0

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Introducing SAFe® 5.0

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Introducing SAFe 5.

Your Operating System for Business Agility

© Scaled Agile, Inc. © Scaled Agile, Inc. 1

© Scaled Agile, Inc. 2

Industrial Canal Mania (UK) Great British Leap

Age of Oil &

Age of Software Dotcom and internet mania;

Installation Period – New technology and financial capital combine to

Turning Point – Existing business either master the new technology or

Deployment Period – Production capital of the new technological giants

Age of Software Dotcom and internet mania;

© Scaled Agile, Inc. 4

• Amazon and Whole Foods Merger to Introduce Cross-Platform Selling and

• Apple is now the biggest watchmaker in the world

© Scaled Agile, Inc. 5

The problem is not with our organizations realizing that

© Scaled Agile, Inc. 6

The world is now changing at a rate at which the

© Scaled Agile, Inc. 7

© Scaled Agile, Inc. 8

© Scaled Agile, Inc. 9

© Scaled Agile, Inc. 10

You need a dual operating system.

© Scaled Agile, Inc. 11

Efficiency and stability

Value Stream Functional

© Scaled Agile, Inc. 13

© Scaled Agile, Inc. 14

© Scaled Agile, Inc. 15

© Scaled Agile, Inc. 16

© Scaled Agile, Inc. 17

And it requires that everyone

SAFe® for Lean Enterprises is a knowledge base

Typical results from scaledagile.com/case-studies

(Dutch Tax Administration)

© Scaled Agile, Inc.

TransUnion’s CEO announces strong earnings and

“And we are improving our software

© Scaled Agile, Inc. 23

© Scaled Agile, Inc. 25

© Scaled Agile, Inc. 26

The Lean-Agile Leadership

© Scaled Agile, Inc. 27

“The basic tenets of Lean challenge many of the aspects of

• Have Mindset awareness and openness to change

© Scaled Agile, Inc. 28

Individuals and interactions over processes and tools

© Scaled Agile, Inc. 31

© Scaled Agile, Inc. 32

The Team and Technical Agility

© Scaled Agile, Inc. 33

• Agile Release Trains (ARTs) are

• Software, hardware, firmware,

• Virtual organizations (typically

© Scaled Agile, Inc. 35

© Scaled Agile, Inc. 36

Agile Product Delivery

© Scaled Agile, Inc. 37

Problem Space Solution Space

Gemba Walks Journey

Empathy maps Story

A clear and continuous understanding of the target market, customers,

Workflows, activities, and automation needed to shepherd

© Scaled Agile, Inc. 39