small is beautiful by sanjiv augustine

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9/10/2008 1 Small is Beautiful Sanjiv Augustine, LitheSpeed Chennai, Bangalore and Mumbai, India February 22, 25, 27, 2008 The Evolution of Agile to Complex, Multi-Project Environments Discussion Topics 2 Aspect Level 1: Basic Level 2: Evolved Small Batches Individual Projects Lean Project Portfolio Individual Products Product Lines Small, Integrated Teams Integrated Agile Team Federation of Agile Teams; Lean-Agile PMO Self-Organization Self-Management

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Sanjiv's presentation on applying agile at organization level. How to run an PMO in an agile fashion.

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Page 1: Small Is Beautiful by Sanjiv Augustine

9/10/2008

1

Small is Beautiful

Sanjiv Augustine, LitheSpeedChennai, Bangalore and Mumbai, India

February 22, 25, 27, 2008

The Evolution of Agile to Complex, Multi-Project Environments

Discussion Topics

22

Aspect Level 1: Basic Level 2: Evolved

Small Batches Individual Projects Lean Project Portfolio

Individual Products Product Lines

Small, Integrated

Teams

Integrated Agile

Team

Federation of Agile

Teams; Lean-Agile PMO

Self-Organization Self-Management

Page 2: Small Is Beautiful by Sanjiv Augustine

9/10/2008

2

Key Agile Principles

Key Agile principles are:

• Focus on Customer Value – Align project, product and team visions to deliver better product quality – faster and cheaper.

• Small Batches - Create a flow of value to customers by “chunking” feature delivery into small increments.

• Small, Integrated Teams - Intense collaboration via face-to-face communication, collocation, etc; diversified roles on integrated, self-organizing, self-disciplined teams.

• Small, Continuous Improvements – Teams reflect, learn and adapt to change; work informs the plan.

Delivering Customer Value with Delivering Customer Value with Agile Project Management

The right product, at the right time, for the right price.

• Higher Quality: “Designed-to-fit” product with flexibility to change.

• Increased Throughput: Iterative and incremental project and product “chunks” with earlier value delivery.

• Reduced Waste: Lean, efficient processes with lower costs and higher productivity.

33

Historical Sweet Spot:

• Small team (<10-15 people)

• Green field, custom

development

• Collocated team members

• On-site customer

• Supporting technology/

development environment

• Automated builds

• Automated unit testing

• Automated system testing

• Automated acceptance

testing

44

Source: Alistair Cockburn

Key question: How can we evolve Agile to complex, multiKey question: How can we evolve Agile to complex, multi--project project

environments?environments?

Agile Sweet Spot

Page 3: Small Is Beautiful by Sanjiv Augustine

9/10/2008

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Introducing “Small is Beautiful”

Small is Beautiful Principle (1973)

• Developed by the German-born British economist and

businessman ERNST SCHUMACHER (1911-1977), who

advocated 'intermediate' and alternative technologies.

• Schumacher proposed the idea of "smallness within

bigness"; in other words, a specific form of

decentralization: for a large organization to work it

must behave like a related group of small

organizations.

• Challenged the tradition of large organizations, which

Schumacher claimed were inefficient and a danger to the

environment. He proposed small working units,

communal ownership, and the use of local labor and

resources. He placed the emphasis on people rather than

the product.

Sources: http://www.economyprofessor.com/economictheories/small-is-beautiful-principle.php;

http://en.wikipedia.org/wiki/Small_is_Beautiful

55

Image source:

http://practicalactionconsulting.org/?id=is_small_bea

utiful

Exercise – Small Batches

Let’s do a simple exercise to see the difference between processing large batches and small ones:

• Round 1

o Each person first turn over all pennies a penny at a time

o When done with entire batch, pass to next person in line

• Round 2

o Each person turn one penny and pass to next person

o Keep flipping and passing a penny at a time until done

• Round 3

o Same rules apply; Each team creates its own approach to maximize

penny flow/throughput in least amount of time

66

Page 4: Small Is Beautiful by Sanjiv Augustine

9/10/2008

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Small Batches

L1 – Individual Agile Projects

Key Agile Practices:

• Release Planning

• Sprint Planning

• Daily Scrum/Standup

• Fixed-length sprints

• Sprint Review

• Sprint Retrospective

Identify topIdentify top--priority items and priority items and

deliver them rapidly in small deliver them rapidly in small

batches.batches.

88

Page 5: Small Is Beautiful by Sanjiv Augustine

9/10/2008

5

L2 – Lean Project Portfolio

• Some principles to manage

small “project batches”

o Optimize for Throughput

o Reduce Project Inventory/WIP

• Applying the Principles

o Portfolio Re-Alignment

o Lean Resource Management

o Platform Based Teams

P1

P2

Queue

Backlog

P3

99

1010

Optimize for Throughput

• Optimal utilization yields sub-optimal throughput

• “There is no free lunch”

• Delay has a cost

Source: The Lean-Agile PMO, Sanjiv Augustine and Roland Cuellar (Cutter Consortium 2006)

Page 6: Small Is Beautiful by Sanjiv Augustine

9/10/2008

6

• Projects are the “inventory” in the portfolio

• Big inventories are bad:

• They cost a lot

• They hide a lot of problems

• They are slow

1111

Reduce Project Inventory

• Terminate sick projects

• Split large projects in

smaller ones

• Prioritize projects by

business value, at least

within business unit

• Limit delivery timeframe to

months

• Re-prioritize projects

regularly

3 2 1

6 Months

Work in Process (WIP)

Prioritization

4

Cycle Time = WIP

Completion Rate

1212

Portfolio Realignment

Page 7: Small Is Beautiful by Sanjiv Augustine

9/10/2008

7

ROI

• Dedicate core resources

to each project team

• Ensure that each team

has all resources needed

to complete the project

• Stress maximum project

throughput

• ROI delivered

incrementally with each

project release

1313

Projects,

Resources

Time

Projects,

ResourcesROI

Lean Resource Management

Time

• Multiple teams each focused on a

single project

• Dedicated to platforms or lines of

business

• Platform owner prioritizes next

project

• Result:

o Support multiple lines of

business simultaneously

o Focused effort results in quick

delivery for individual projects

o Clear accountability

Source: The Lean-Agile PMO, Sanjiv Augustine and Roland Cuellar (Cutter Consortium 2006)

1414

Platform-Based Teams

Page 8: Small Is Beautiful by Sanjiv Augustine

9/10/2008

8

L1 – Individual Products

• Shared project and product

vision, with standalone

products

• Product Owner as

creator/arbiter of product

vision

• Incremental product

development and rollout

1515

Source: Managing Agile Projects, Sanjiv Augustine

L2 – Product Lines

• Engineering techniques for creating a portfolio

of similar software systems from a shared set

of software assets using a common means of

production

• Strategic software reuse – predictive versus

opportunistic software reuse.

• Software artifacts are created when reuse is

predicted in one or more products in a well

defined product line

• Common core components are developed

and shared quickly across multiple

projects.

• Enables mass customization - creating many

variations of a product by capitalizing on their

commonality

Source:http://www.softwareproductlines.com/introduction/introduction.html

1616

Diesel Engine Software Product Line, Cummins, Inc.

• Modern engines can contain over 100KSLOC of

software to micro-control ignition to produce an

optimum mix of power, economy, and emissions.

• In 1993, faced with the need to produce almost

20 new systems but with staff and resources

available only for six, Cummins embraced the

product line approach.

• Today, the Cummins software product line covers

9 basic engine types ranging over 4-18 cylinders

and 4-164 liters of displacement, with 12 kinds of

electronic control modules, 5 kinds of processors,

and 10 kinds of fuel systems.

• Cycle time has been reduced from around 250

person months to a few person months. Quality

and customer satisfaction are both up, and 15 of

15 projects are on track.

• To date, 20 basic software builds have been

parlayed into well over 1000 separate

products.

Source: http://www.sei.cmu.edu/productlines/plp_hof.html

Page 9: Small Is Beautiful by Sanjiv Augustine

9/10/2008

9

Exercise – Airplane Production Line

Four volunteers, please!

Performer 1Fold paper in half.Performer 1Fold paper in half.

Performer 2Fold nose cone.Performer 2Fold nose cone.

Performer 3Fold wings, tail and ailerons.

Performer 3Fold wings, tail and ailerons.

Performer 4Test plane (throw it into the trash).

Performer 4Test plane (throw it into the trash).

Performer 1Create airplane.Performer 1Create airplane.

Performer 2Create airplane.Performer 2Create airplane.

Performer 3Create airplane.Performer 3Create airplane.

Performer 4Test plane (throw it into the trash).

Performer 4Test plane (throw it into the trash).

Round 1 – Push System

Performer 1Fold paper in half.Performer 1Fold paper in half.

Performer 2Fold nose cone.Performer 2Fold nose cone.

Performer 3Fold wings, tail and ailerons.

Performer 3Fold wings, tail and ailerons.

Performer 4Test plane (throw it into the trash).

Performer 4Test plane (throw it into the trash).

Round 2 – Pull System

Round 3 – Pull System with Versatilist Performers

Begin work as soon as your “inbox” is occupied.

Begin work only when your “outbox” is empty.

Pass plane to Performer 4 when you’re done.

Small Teams

Page 10: Small Is Beautiful by Sanjiv Augustine

9/10/2008

10

L1 – Integrated Agile Team

1919

Core Project

Team

BA

PM

Tester

Product

Owner

Developer

Designer

Developer DBA

Release

Manager

Capacity

Planner

Prod.

Architect

Tech

Ops

Business

Sponsor

Risk

Assessor

Security

Product

OwnerBA Designer Developer TesterTraditional Silos:

Integrated Agile Team:

PM

Extended

Project Team

Dispersed Teams Dislike Being

Isolated

- Lack of relationship building

opportunities

- Predisposition for

misunderstanding, mistrust and

sectarian interests

- Special attention needs to be paid

to how the team communicates,

understands, utilizes information

Focus by Bindhu Sridhar, The

Hindu, February 20, 2008

The Lean Work Cell, an Agile Workspace

2020

Page 11: Small Is Beautiful by Sanjiv Augustine

9/10/2008

11

Shared Visual Workspace

• Information transfer

maximized through

collocation

• Constant face-to-face

communication and

collaboration

• Self-organization

and management

facilitated by

information

radiators – charts,

posters,

whiteboards, etc.

2121

L2 – Federation of Agile Teams

2222

“…for a large organization to work it must

behave like a related group of small

organizations.”

Building a “federation of agile teams:”

• Build the “whole” into the “parts”

• Set a size limit ( E.g. in Scrum 7+-2

people)

• To grow, break off new integrated Agile

teams when team size limit is reached

• Coordinate at higher level via Lean-

Agile PMO

Page 12: Small Is Beautiful by Sanjiv Augustine

9/10/2008

12

Example Organizational Structure

• Encourage face-to-face dialogue across levels

• Overlapping management with “linking pins”

• Lean-Agile PMO run as an Agile project team

Source: The Lean-Agile PMO, Sanjiv Augustine and Roland Cuellar (Cutter Consortium 2006)

2323

L1 – Self Organization

Self-organization refers to a process in which the internal organization of a system, normally an open system, increases automatically without being guided or managed by an outside source.

Wikipedia

Self-organizing teams:

• Exhibit a high degree of collaboration

• Operate with a high degree of trust and autonomy

• Work towards very high performance

• Produce measurably great results

• Are very fulfilling to work on

Characteristics of Agile

Self-Organizing Teams

� Small team size

� Customer value orientation

� Individual competence

� Sustainable self-discipline

� Intense collaboration

� Easy information transfer

� Low decision feedback time

� Constant learning and interaction

2424

Page 13: Small Is Beautiful by Sanjiv Augustine

9/10/2008

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Success Criteria for Self Organization

• Small integrated team

• Clear mission

• Short timeframe

• Proper leadership

• All necessary roles:

o ScrumMaster/PM

o Business Analyst

o Tester

o Developer

o Data Designer/DBA

• Good understanding of customer needs

• Assured of getting needed resources

• Empowered to take action

• Basic engineering and other disciplines in place

Source: Mary and Tom Poppendieck

2525

Core Project

Team

BA

PM

Tester

Product

Owner

Developer

Designer

Developer DBA

Release

Manager

Capacity

Planner

Prod.

Architect

Tech

Ops

Business

Sponsor

Risk

Assessor

Security

Extended

Project Team

Keys to managing oneself on Agile

teams:

• Build on personal strengths

• Improve personal productivity

• Institute intelligent metrics

2626

L2 – Self Management

Page 14: Small Is Beautiful by Sanjiv Augustine

9/10/2008

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Build on Personal Strengths

Build on Personal Strengths.

• Applying it to Others:

o Each person is unique and has unique strengths and weaknesses

o Great managers recognize that trying to standardize human behavior is futile, and don’t waste their time trying to change people dramatically

o Rather than focus on weaknesses, they build on the personal strengths of their team members and help them become more of “who they already are”

• Applying it to Yourself:

o Find out what you don’t like doing and stop doing it

o "The point is to feel authentic, self-assured or creative” http://www.marcusbuckingham.com

o Conduct feedback analysis

2727

Build on Personal Strengths (Cont’d)

• Concentrate on your

strengths

• Improve your strengths

• Overcome intellectual

arrogance

• Avoid areas of weakness

2828

Page 15: Small Is Beautiful by Sanjiv Augustine

9/10/2008

15

Improve Personal Productivity

“Productivity” is not a mechanical

measure of speed.

• Knowledge drives productivity

• Knowledge workers need to own the

responsibility for their own

productivity

• Continuous innovation, learning and

teaching need to be part of the job

• Knowledge worker productivity is

dependent on quality at least as much

as quantity

• Optimal quality is the path to high

productivity

2929

Cut Distractions, Increase

productivity

The average employee does no more

than 3-4 hours of focused work in

an 8.5 hour workday :

• 10-15 hours per week on

unproductive work

•20% of work time on non-

work related activities

• 5.6 hours/week in

unproductive meetings

• 1.5 hours/week dealing with

office clutter

Corporate Health by Bindhu Sridhar,

The Hindu, February 13, 2008

Institute Intelligent Metrics

• 6x Honda's President Award

winner

o “Most prestigious and coveted honor that

Honda can grant to its dealerships. The

award recognizes those dealership teams

that demonstrate superior achievement

in customer satisfaction, new-car-unit

sales volume and business management.

Approximately 15% of Honda dealerships

achieve the President's Award status each

year. “

o “The President's Award reflects a total

commitment to customers; it is the

highest award that a Honda dealership

can receive because it demands the

highest personal investment and

stimulates the greatest results -

satisfied, loyal customers.”

• “Although some of them seem to rate

our entire operation, in fact they all

rate my personal performance

and the scores become part of my

permanent record.”

3030

Page 16: Small Is Beautiful by Sanjiv Augustine

9/10/2008

16

Institute Intelligent Metrics (Cont’d)

• How do we define quality?

o Largely a matter of defining the work

at hand

• Knowledge workers need to first

define:

o What is our business?

o Who is our customer?

o What does our customer consider

valuable?

3131

Measures of quality must flow

from the above.

Tips:�Measure outcome, not output

�Measure only a few things

�Ensure commonly understood

operational definition and

measurement plan

�Target specific questions and

audiences

From “Appropriate Agile Measurement: Using Metrics

and Diagnostics to Deliver Business Value” by Deborah

Hartmann and Robin Dymond

3232

Contact Us for Further Information

Sanjiv Augustine

[email protected]

Arlen Bankston

Vice [email protected]

On the Web:

http://www.lithespeed.com

http://www.sanjivaugustine.com

"I only wish I had read this book when I started my career in

software product management, or even better yet, when I was

given my first project to manage. In addition to providing an

excellent handbook for managing with agile software development

methodologies, Managing Agile Projects offers a guide to more

effective project management in many business settings."

John P. Barnes, former Vice President of Product Management at

Emergis, Inc.

Page 17: Small Is Beautiful by Sanjiv Augustine

9/10/2008

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Coordinating Product Delivery

Source: Steering Projects with Agile Project Management, Sanjiv Augustine et al

3333