agile redefines global economics: what recent data reveals
DESCRIPTION
Kent Beck, inventor of eXtreme Programming, defined agile success as delivering more useful functionality with fewer defects. Against that definition, early research revealed mixed success. Many organizations did not know how to measure and thus could not have “fact-based” conversations about productivity and cost. Some teams achieved faster delivery, but quality did not improve. Others found both. What factors made the difference? New benchmark analysis by QSM Associates reveals the latest productivity, time-to-market, quality, and cost patterns. As a result, we may be seeing a major shift in software economics made possible by the promises of agile. Michael Mah shares this latest research in the QSM SLIM industry database, which contains more than 10,000 completed projects—waterfall, agile, offshore, onshore—collected worldwide. Michael offers consulting tricks to accelerate your success. Learn how to derive your own measurements to inform your executive teams, quantify your successes, or spotlight areas that need help.TRANSCRIPT
AW5 Session 6/5/2013 2:15 PM
"Agile Redefines Global Economics: What Recent Data Reveals"
Presented by:
Michael Mah QSM Associates, Inc.
Brought to you by:
340 Corporate Way, Suite 300, Orange Park, FL 32073 888‐268‐8770 ∙ 904‐278‐0524 ∙ [email protected] ∙ www.sqe.com
Michael Mah QSM Associates, Inc.
With twenty-five years of industry experience Michael Mah teaches, writes, and consults for QSM Associates to tech companies on measuring and estimating software projects for offshore, waterfall, and agile. Michael and his QSM partners have researched thousands of projects worldwide. His work examines time-pressure dynamics of teams and their contribution to project success and failure. Michael’s clients include Boeing, Progressive, Verizon Wireless, Nationwide, JPMorganChase, Roche, and other Fortune 100 companies. He is the director of the Benchmarking Practice at the Cutter Consortium in the US. A private pilot, Michael lives in the mountains of western Massachusetts. qsma.com.
Michael MahManaging Partner
Agile Redefines Global Economics: What Recent Data Reveals
June 2-7, 2013 Managing PartnerQSM Associates, Inc.75 South Church StreetPittsfield, MA USA 01201413-499-0988Fax 413-447-7322e-mail: [email protected]: www.qsma.comBlog: www.optimalfriction.com
,Las Vegas, Nevada
Caesars Palace
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Background
“Agile projects can be Agile projects can be considered more successful in the sense that they deliver more functionality with fewer defects.”
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- Kent Beck
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Rayleigh Curve Defect Rate
140
160
Defect Type (All)
Count of Severity*
40
60
80
100
120
Product+*
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0
20
Create Date Status Mode Status Severity* TR-Version
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Background
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“We don’t need no stinking metrics”
- Jim Highsmith
“Without metrics, you’re just someone with another opinion”
- Michael Mah
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The QSM SLIM Database
QSM maintains the world’s largest benchmarking database of 10,000+ completed software projects collected worldwide. We put industry productivity collected worldwide. We put industry productivity statistics on the desktop.
The QSM SLIM database contains projects in all industries, waterfall, Agile, offshore/outsourced, in-house, new development, and maintenance.
SLIM tools enable managers to measure and estimate Agile and/or waterfall projects, and determine ROI.
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British Telecom Fiserv Corp
The QSM SLIM Database
SAP MicrosoftIntel AT&T/BellSouth Nationwide
pIBM GlobalMisys HealthcareJPMorganChaseBoeingBank of New York Mellon
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Motorola VerizonWirelessRoche Diagnostics
Lockheed MartinProgressive InsuranceDirecTV
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Agile Metrics Capture – Velocity etc.
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Agile vs Waterfall - Schedule
C&T Duration (Months) vs Effective SLOC100
10
C&
T Duration (M
onths)
Agile 1
Agile 2
Traditional 1
Traditional 2
Agile 1
Agile 2
Traditional 1
Traditional 2
Industry Average10 mos
FASTER
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10 100 1000Effective SLOC (thousands)
1
Agile 3Agile 3
All Sy stems Special Project QSM 2002 Scientific Av g. Line Sty le 1 Sigma Line Sty le
Elan 3.2 Release6 mos
FASTER
Agile vs Waterfall - Quality
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FEWER BUGS
This Data Says: Kent was CORRECT
“Agile projects can be Agile projects can be considered more successful in the sense that they deliver more functionality with fewer defects.”
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- Kent Beck
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Case Study: Co-Located XP - Follett Software
Team size24 Developers7 T t7 Testers3 Customers3 Project Leaders
Code Base1,000,000 lines of code
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7,000 automated unit test10,000 automated acceptance test
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Project Sketch – Core Metrics
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Input to SLIM
Size Defects
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Time Effort
Industry Average
Current Performance
Delta
Follett vs. Industry Average
Project Cost $3.5 Million $2.2 Million -$1.3M
Schedule 12.6 months 7.8 months -4.8 mos
QA Defects 242 121 50%
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QA Defects 242 121 -50%
Staffing 35 35 n/a
Distributed SCRUM – BMC Software
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Project Sketch – Core Metrics
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Industry Average
Current Performance
Delta
BMC vs. Industry Average
Project Cost $5.5 Million $5.2 Million -$.3M
Schedule 15 months 6.3 months -8.7 mos
QA Defects 713 635 11%
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QA Defects 713 635 -11%
Staffing 40 92 +52
Agile Assessment — Schedule
SCHEDULE100
10
C&T D
uration (Months)
Faster Schedules
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10 100 1,000PROJECT SIZE (thousands)
1
Agile Companies Company B SCRUM Company A XP QSM 2005 Business Avg. Line Style 1 Sigma Line Style
Agile Assessment – Quality
BUGS10,000
100
1,000
Errors (SysInt-Del)
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10 100 1,000Effective SLOC (thousands)
1
10
Agile Companies Company B SCRUM Company A XP QSM 2005 Business Avg. Line Style 1 Sigma Line Style
Fewer Defects
This Data also Says: Kent was CORRECT
“Agile projects can be Agile projects can be considered more successful in the sense that they deliver more functionality with fewer defects.”
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- Kent Beck
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The Columbus Agile Benchmark Study(Columbus vs the World)(Columbus vs the World)
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SLIM-M t Pl
SLIM-Estimate:
SLIM-Control:Variance Analysis
&Adaptive
Forecasting SLIM-Metrics: Industry
MasterPlan: Incremental
Development & Project
Aggregation
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Estimate:Size, Schedule, Cost & Quality
EstimatingSLIM-DataManager
Software Project Metrics Repository
Industry Benchmarking
& Process Improvement
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Agile Captures the Right Metrics for SLIM
Velocity/Burndown
Headcount
Stories and Point Sizing
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Bugs
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SpeedTime-to-Market
100
10
Months
Faster Schedules
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1 10 100 1,000New + Modified Size (thousands)
1
All Sy stems QSM Business Av g. Line Sty le 1 Sigma Line Sty le
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Bugs
Bugs During QA10,000
100
1,000
Defects
Fewer Defects
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1 10 100 1,000New + Modified Size (thousands)
1
10
All Sy stems QSM Business Av g. Line Sty le 1 Sigma Line Sty le
Short Feedback Loops
Paired programmersPaired programmersInstantaneous code
reviewsAccelerated learning
and executionF f
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Face to face communication channel
Transparency
“Transparency is a great floodlight. People who thrive in political maneuvering hate SCRUM…”
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- Ken Schwaber
Avoiding Burnout
XP = Sustainable pace
40 Hour Work Weeks
Prevent productivity collapse for
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poverworked teams
High-bandwidth Communication
The best teams have “wide-open pipes”
Domain knowledge moves among the team
Information flows
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rapidly and accurately
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But wait, there’s more…
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New Agile Benchmark Trends
Agile Trends - Iterations/Build Phase
Time-to-Market100
Effort10,000
10 100 1,000New + Modified Size (thousands)
1
10
Months
10 100 1,000New + Modified Size (thousands)
1
10
100
1,000 Person-Months
Average Staff1,000
Bugs During QA10,000
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10 100 1,000New + Modified Size (thousands)
1
10
100 Headcount
10 100 1,000New + Modified Size (thousands)
1
10
100
1,000
Defects
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For Additional Information
Michael MahManaging PartnerQSM AssociatesQSM Associatesemail: [email protected]: www.qsma.comblog: www.optimalfriction.comtwitter: @michaelcmahTel: 1 413-499-0988
Andrea GelliQSM A i t S it l d
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QSM Associates Switzerland8032 ZurichT +41 44 555 9126email: [email protected]