agile redefines global economics: what recent data reveals

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 ∙ sqeinfo@sqe.com ∙ 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: michael.mah@qsma.comWebsite: 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: michael.mah@qsma.comwebsite: 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: andrea.gelli@qsma.ch