Case Story: TD Bank

TD Bank undertook an organization-wide transformation initiative called NEW (Next Evolution of Work), with Rajesh Jetty serving as the Agile transformation leader. TD Bank has defined many value streams and consider themselves to be at a level 3 out of 5 in terms of VSM maturity, indicating that their value streams are often localized rather than fully end-to-end.

 

A key aspect of TD Bank's VSM implementation involves integrating the value stream framework with their existing Agile scaling framework. This integration occurs at the intersection of the two methodologies when new functionality is delivered to customers, utilizing Agile Release Trains (ARTs) within the Scaled Agile Framework. TD Bank views ARTs as closely aligned with value streams, enabling the organization of business and technology around dedicated product teams focused on delivering value to customers. In some mature areas within TD Bank, the ART functions as a true end-to-end value stream.

 

The success of ARTs has led to some business executive champions advocating for an organization-wide adoption of this approach. TD Bank's approach involves blending methods and tools that are effective for them, demonstrating organizational agility. According to Jetty, these steps, even if not strictly adhering to the "pure VSM playbook," are helping TD Bank progress toward achieving end-to-end value streams.

 

TD Bank's adoption of value stream management is driven by the goal to "sell value" faster, citing the example of wanting to launch marketing campaigns rapidly. To achieve this, the IT team identifies necessary tech assets, and line-of-business (LOB) teams define the scope and success parameters of the value stream. These efforts converge in an Agile Release Train, facilitating end-to-end work to shorten development lifecycles and feedback loops. These dedicated teams are maintained to foster expertise and affinity for specific capabilities.

 

Product managers at TD Bank play a crucial role by interfacing with end-users, conducting market analysis, identifying unmet needs, and defining user pain points or areas for delight. They often incorporate design thinking into the value stream solution and translate their observations and research into actionable tasks for engineering teams.

 

TD Bank emphasizes the importance of team stability, avoiding the constant repetition of forming, storming, norming, and performing stages in ARTs. By maintaining team continuity, TD Bank aims to foster clear focus, identity, and subject matter expertise, leading to faster delivery and shorter development times.

 

TD Bank's key performance indicators revolve around achieving faster feedback, quicker value delivery, and the elimination or minimization of bottlenecks. They leverage Agile methodologies for rapid feedback and value stream management for end-to-end alignment and optimization. Furthermore, TD Bank incorporates architectural improvements and the theory of constraints to enable continuous fine-tuning.

TD Bank has observed "encouraging signs" of progress in their journey toward end-to-end value streams. However, achieving realignment across the organization is recognized as a significant challenge, requiring a coalition of influential advocates, early adopters, and executives willing to experiment and negotiate. Despite the challenges, TD Bank is focused on the benefits of VSM, particularly reusability. They aim to build once and use many times (e.g., marketing campaigns or security tools) to enable different business verticals to leverage common capabilities.

Ultimately, TD Bank's objectives for VSM implementation are to enhance their competitive edge, accelerate value delivery to the market, and maximize efficiency. They seek to establish a common purpose, improve feedback loops, minimize rework, and achieve a greater return on investment, ultimately leading to shorter cycle and lead times, which they equate to financial gains.