view from the executive suite, mn-pmi may 2014
TRANSCRIPT
View from the Executive Suite
What, you want me to become involved?
Start Building Code
Focus on ValueSee progress from a business perspectiveRedirect teams when
needed
Deliver ValueShip on market cadenceCapture value frequentlyReveal obstructions early
Optimize ValueMake excellent product
decisionsEliminate handoffs
Speed decision making
Optimize for Systems
Cross-pollinate perspectivesStimulate innovation
Optimize value stream
Team culture shift
Team skills shift
Organization structure
shift
Organization culture shift
50%
35%
5%
Very few
© James Shore and Diana Larsen
3
Agile Value Curve
Strategies• Adaptive• Evolutionary• Collaborative• Just-in-Time• Plan
Where is the right cut-off point?
Time (iterations)
Mon
ey
Value to Cost Curve
Value
Cost
AGILE METHODOLOGIES
Look, I am calling it “agile” – isn’t that enough?
What Flavor of Agile?
• Scrum• Crystal Clear• Extreme Programming (XP)• Adaptive Software Development• Feature Driven Development• Dynamic Systems Development Method
(DSDM)• Lean Software Development
Scrum
• Primarily a project management method– Project planning– Release planning– User Stories– Daily stand-up– Story points– Velocity
Ken Schwaber and Mike
Beedle
EstimatingAs a user I need to blah blah so that blah
4
As a user I need to blah blah so that blah
2
As a user I need to blah blah so that blah
4
As a user I need to blah blah so that blah
8
As a user I need to blah blah so that blah
1
As a user I need to blah blah so that blah
2
As a user I need to blah blah so that blah
4
As a user I need to blah blah so that blah
8
As a user I need to blah blah so that blah
8
As a user I need to blah blah so that blah
1
As a user I need to blah blah so that blah
2
As a user I need to blah blah so that blah
2
Universe of work =
46 points
Team velocity=
8 points
POIN
TS
TIME
Extreme Programming (XP)
• Primarily a developer-centric approach– Test Driven Development (TDD)– Unit tests– Pairing– Continuous Integration (CI)– Refactoring
Kent Beck
“Continuous Integration is a software development practice where members of a team integrate their work frequently, usually each person integrates at least daily - leading to multiple integrations per day. Each integration is verified by an automated build (including test) to detect integration errors as quickly as possible. Many teams find that this approach leads to significantly reduced integration problems and allows a team to develop cohesive software more rapidly.”
http://www.martinfowler.com/articles/continuousIntegration.html
Crystal Clear
• Focuses on people, not methods or artifacts– Teams of 6 to 8– Co-location– Reflective improvement– Team safety– Singular focus
Alistair Cockburn
Singular Focus..or “Focus and Finish”
Value realization
Lean Software Development
• Optimize the whole• Eliminate waste• Build quality in• Learn constantly• Deliver fast• Engage everybody• Keep getting better
Mary Poppendieck
Optimize the Whole
Requirements Development Testing
As an online banking customer, I want to be able to monitor my daily balance so that I never over-spend my account.
2
Training
Project kick-off
Release planning
Iteration planning
Daily stand-up
Review / demo
Retrospective
Short feedback loops
Inspect and adapt
Collaboration and teamwork
Deliver high-value, high-quality working software quickly and frequently
User stories
Task cards
Iterations
Story boardBurn chart
Planning poker
Pairing
Unit tests
Continuous
integration
Grooming
the backlog
Done-done-done
Participate
Fundamentals
Ceremonies
Techniques
So What?
Co-location
TDD
Goal
How Important is Health (Being)?• “Organizations that focused on performance AND health
simultaneously • were nearly twice as successful as those that focused on
health alone, • and nearly three times as successful as those that focused
on performance alone.”
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage, Scott Keller & Colin Price (McKinsey & Co.)
Execution Levers
The Standish GroupCHAOS Manifesto
©2011 ThoughtWorks, Inc.
Do Less (But Get More)
19
Do the simplest
thing possible that delights the customer
+ Throughput
+ Innovation
+ Value
+ Quality
Span PlanningFunctio
nEpic
Story
Function
Function
Epic Epic Epic
Story
Story
Story
Story
Story
Story
Story
Story
Story
Story
Story
Story
Story
Time
Necessity
MM
F
Execution Levers
Iron Triangle
Cost
Schedule Scope
Speed to Value: The Agile Triangle
23
External Quality(Value, Releasable Product)
Internal Quality(Reliable, Adaptable Product)
Constraints(cost, schedule, scope)
Current and Future Quality
Robust “done”
Weak “done”
Technical debt
Appropriate Quality
Pizza Company – “many of our customers can barely read…”
Medical device company – “Our software truly is mission critical to our patients…”
Execution Levers
Scale What is measured?
MeterHow it will be measured?
BenchmarkSituation as it stands now
ConstraintMinimum acceptable value
Target Desired result
Tom Gilb, Competitive Engineering
Success Metrics
Identify the metrics defining when the project is a success
Value Calculation Framework
Value Cost
Portfolio Financial Business Case (NPV/IRR) Portfolio T-Shirt Sizing
Project Same as aboveInception - Revised Cost Estimate
Iterative Development - Monthly Forecast
Capability Decision Making Sweet SpotWhere we want to start/continue to make better informed
Value Engineering Decisions
ROI = Value/CostFeature
StoryMoSCoW or other prioritization
methodStory Points (3,5,8)
Value Cost
Portfolio Financial Business Case (NPV/IRR) Portfolio T-Shirt Sizing
Project Same as aboveInception - Revised Cost Estimate
Iterative Development - Monthly Forecast
Capability Decision Making Sweet SpotWhere we want to start/continue to make better informed
Value Engineering Decisions
ROI = Value/CostFeature
StoryMoSCoW or other prioritization
methodStory Points (3,5,8)
Top Down –Allocation of
Value
Bottoms Up –Calculation of
Cost
We need to understand both Value and Cost at the Capability/Feature level.
Source: Pat Reed
Features with Value Points
As a sales associate, the ability to calculate the total amount of the sale.
C-5
As a sales executive, the ability to view all sales by product type, geographic region, and sales associate. C-8
As a sales supervisor, the ability to Verify the adequacy of the Customer’s Credit Rating.
C-3V-13
V-11
V-2
Feature Points are a calculation of cost. Value Points are an allocation of revenue.
If we do not measure both the cost and the value, the entire project can cost us more than it is worth.
Measuring Value Against Iterations
When to finish?
This is the art of leadership – and the agile approach gives us the option to finish anytime we see “enough” value.
What is your definition of enough?
We could finish here, or here, but never here
Measuring Value Against Iterations
Execution Levers
Build Capability
©2011 ThoughtWorks, Inc. 33
People Technology Process Culture
©2011 ThoughtWorks, Inc.
Engage/Inspire
Daniel Pink, Drive: The Surprising Truth about What Motivates Us
34
35
Create an Innovative Team Culture
©2010 Jim Highsmith
TeamEngagement
Autonomy
Empowerment
Self-organizing
Delegation
DecisionFraming
Leadership
Peer-to-Peer
SO WHAT GETS IN OUR WAY?Executive Leadership in the Agile Enterprise
Culture – “how we get things done”
AgileProjectTeam
Indicative Team Composition
Product OwnerArchitectTech Lead
Developer
Tester
IM
BusinessAnalyst
UX Designer
Project Owner / Sponsor
Database Administrator
Infrastructure Delivery Mgr.
Operations, Integration & Support
Program Manager
CoreTeam
Security Architect
Other Business Representatives
ExtendedTeam
Coach
Project Stakeholder Board PM
Architects, Process Specialists and SMEs
Team ratios
One Analyst One TesterTwo Develop Pairs
Geography
Technology
Offshore / Near Shore
Communicate!
Information Radiators
1 2 3 4 5 6 7 8 9 100
50
100
150
200
250
ScopeDone
Effort
Project Burn-Up
Scope
Velocity
Running Tested Features
Iterations
Num
ber o
f run
ning
te
sted
feat
ures
©2011 ThoughtWorks, Inc.
Goals of Adaptive Leaders
49
Envision a Responsive Enterprise
Deliver a Continuous Stream of Value
Create an Innovative Culture
Why Agile?
Be Agile
Do Agile
Portfolio Agility