Lean Software Development Comes of Age. Copyright 2012 Net Objectives, Inc. All Rights Reserved 1

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2 Product Portfolio Management Lean for Executives Business technical Team process Kanban / Scrum ATDD / TDD / Design Patterns Lean Enterprise Manage ment Lean Management Project Management ASSESSMENTS CONSULTING TRAINING COACHING

Four Reasons 68% of Development Projects Will Not Succeed This Year Even with the latest

Reason #1: Project Selection Methods Starting off on the wrong foot could mean a never-ending cycle According to IAG Consulting, 68% of projects are more likely to have a marginal project or outright

7 Reason #1: Project Selection Methods Starting off on the wrong foot could mean a never-ending cycle According to IAG Consulting, 68% of projects are more likely to have a marginal project or outright failure than a success due to how they approach business analysis Up to 80% of budgets from a challenged or failed project are consumed fixing self-inflicted problems And up to 25%-40% is spent on re-work Source: Business Benchmark Analysis, IAG Consulting, 2009, Business Analysis Benchmark Report, IAG Consulting, 2008 Copyright 2012 Net Objectives, Inc. All Rights Reserved 7

Reason #2: Not Taking A Holistic View A Gartner and CRM study showed - Many issues associated with project failure are people and managerial issues - not technical They account for 65% of failures

8 Reason #2: Not Taking A Holistic View A Gartner and CRM study showed - Many issues associated with project failure are people and managerial issues - not technical They account for 65% of failures While technical account for 35% Only 26% of technical issues are directly attributed to the programming team Source: The Failure Rate of IT Projects, JBSurveyer, 2005 Copyright 2012 Net Objectives, Inc. All Rights Reserved 8

Reason #3: Not Integrating With Company Culture No matter how much industry and software expertise consultants have, they cannot possibly know all the cultural and operational issues involved in the

9 Reason #3: Not Integrating With Company Culture No matter how much industry and software expertise consultants have, they cannot possibly know all the cultural and operational issues involved in the organization When consultants do it themselves, take over the project and actually make it happen, it may overlook the fact it does not work for the employees needs Consulting and training must incorporate coaching so employees can learn how to do the work themselves. Follow-up coaching should be available when necessary Source: The Iterative Cycle of Training and Consulting, Dr. CJ Rhoads, 2006 Copyright 2012 Net Objectives, Inc. All Rights Reserved 9

Reason #4: Not Knowing When To Abort Defining the project death march Any project involving a grueling amount of overwork, overtime and unrealistic expectations can easily become a death march Team

10 Reason #4: Not Knowing When To Abort Defining the project death march Any project involving a grueling amount of overwork, overtime and unrealistic expectations can easily become a death march Team members can see it is doomed to fail, but nevertheless continue because: Superior s request The threat of personal or group financial loss Reputation damage if the project is cancelled Source: Death March (Project Management), Wikipedia, April 2, 2011 Copyright 2012 Net Objectives, Inc. All Rights Reserved 10

Step #1: Accurate Diagnosis Budget overruns, overtime and bad specs are all symptomsthe root cause of these is often something else Starting a project with the proper business analysis

11 Step #1: Accurate Diagnosis Budget overruns, overtime and bad specs are all symptomsthe root cause of these is often something else Starting a project with the proper business analysis will increase chances of success in any project Proper business analysis means the right amount of analysis at the right time Copyright 2012 Net Objectives, Inc. All Rights Reserved 11

agree on top priority projects and focus on them Source: IT vs.

12 Choose the right projects Choosing the right project to take on in the first place is a huge step toward successful completion By monetizing the projected results, both the IT and business teams can agree on top priority projects and focus on them Source: IT vs. Business: Who Should You Blame When Projects Fail? Jeff Vance, February 28, 2011 Copyright 2012 Net Objectives, Inc. All Rights Reserved 12

13 Step #2: Get Rid of Assumptions About Failure What does this mean? If all your consulting and training is focused solely on the development team, which is responsible only 26% of the time Your best possible outcome is only a 26% improvement Begin each project with a holistic approach to ensure all involved work as a team and any areas of weakness are covered Copyright 2012 Net Objectives, Inc. All Rights Reserved 13

14 Step #3: Align Business and Technology? Business Executives: IT is a socially awkward group with zero business savvy IT, on the other hand, is amazed when business executives can successfully power up their PCs and open a browser An industry expert sums it up best, So many projects depend on IT-Business alignment, yet so many fail because that alignment is like Bigfoot plenty of people believe it exists, but good luck spotting one in the real world Source: IT vs. Business: Who Should You Blame When Projects Fail? By Jeff Vance, February 28, 2011 Copyright 2012 Net Objectives, Inc. All Rights Reserved 14

Step #4: Deliver a Clear, Early Picture of Project Flaws To prevent a project from becoming a death march and a money pit with no chance of success Engage proactive people who look for signs that

15 Step #4: Deliver a Clear, Early Picture of Project Flaws To prevent a project from becoming a death march and a money pit with no chance of success Engage proactive people who look for signs that threaten the project s success Those who use an holistic approach will give the broadest results with the highest ROI in the shortest time Copyright 2012 Net Objectives, Inc. All Rights Reserved 15

Partner with diagnostic specialists Your

failure and prescribes the necessary changes

16 Partner with diagnostic specialists Your most valuable partner is one who views the problem through different points of view, discovers the true causes for project failure and prescribes the necessary changes Copyright 2012 Net Objectives, Inc. All Rights Reserved 16

17 Summary Failures due to: Poor project selection Not taking a holistic view Not integrating with company culture Not knowing when to abort Steps to take: Do proper business analysis to enable you to choose the right projects Get rid of assumptions about failure Align business and technology Deliver a clear, early picture of project flaws Copyright 2012 Net Objectives, Inc. All Rights Reserved 17

18 aste: Building What You Do ot Need Represents: Added Development Cost Lost Opportunity Technical Debt Delayed Time To Market Degradation in Quality Usage of Features and Functions in Typical System Never Used 45% Always 7% Often 13% Sometimes 16% Rarely 19% Source: Standish Group Study of 2000 projects at 1000 companies Copyright 2012 Net Objectives, Inc. All Rights Reserved _1 18

At Some Point Physics Was No Longer Newton s

27 Lean Science People are foundational The best way to assist people is to give them good environments to work in Delays cause waste Cause of delays Working on more than your capacity Working on large batches Working on things in the wrong order Copyright 2012 Net Objectives, Inc. All Rights Reserved 27

28 Lean Finance Drive to achieve your results quickly by adding value to your customers and stakeholders without delay. Money may or may not be your driver. Copyright 2012 Net Objectives, Inc. All Rights Reserved 28

30 Lean in a nutshell Achieve higher quality lower cost faster delivery by attending to time, process and striving to continuously learn Self-organization & leadership are important. An holistic view is essential. Copyright 2012 Net Objectives, Inc. All Rights Reserved 30

31 Essence of Lean Create environments so self-organizing teams can do their work Attend to flow of work to achieve high quality high productivity low cost Copyright 2012 Net Objectives, Inc. All Rights Reserved 31

32 ean-kanban Manifesto We are uncovering better ways of developing software by doing it and helping others do it. Through this work we have come to value: explicit conversations over intuitive abilities small steps over big changes quality systems over heroic individuals principles that guide our understanding over practices in which we must trust Copyright 2012 Net Objectives, Inc. All Rights Reserved 32

34 What Work Do You Do? Getting Requirements Design Programming Testing Planning Collaboration Integration Re-doing requirements Working from old requirements Fixing bugs Building unneeded features Documentation Deployment Training Integration errors Overbuilding frameworks What percentage of your time do you spend on the left? Write it down. Essentially duplicating components Copyright 2012 Net Objectives, Inc. All Rights Reserved 34

35 hat Causes Delays? Working on too many things Waiting for people Not appreciating the cost of delay Large batches of work that have different stages Complexity Copyright 2012 Net Objectives, Inc. All Rights Reserved 35

Stop Starting and Start Finishing David Anderson

Decision Is it technically feasible? Decision Is an SME ready? Decision Is it ready to release?

37 P O R T F O L I O V A L U E S T R E A M O W N E R B U S I N E S S S P O N S O R, T E C H N I C A L S P O N S O R S TA K E H O L D E R S c h u n k i n g s l i c i n g BUSINESS DISCOVERY BUSINESS DELIVERY Business Priority Business Planning Business Readiness Ready to Pull Incremental Development Incremental Deployment Support & Feedback Decision Is there enough business value? Decision Is it technically feasible? Decision Is an SME ready? Decision Is it ready to release? Identify potential capabilities Define increments as MMFs Set acceptance criteria and feature sequence Build iteratively Scrum / Kanban / Hybrid ATDD and Emergent Design P O D H U B BPO PO (Release) BUSINESS PM TDM ADM LEAN-AGILE PM TEAM Copyright 2012 Net Objectives, Inc. All Rights Reserved 37

38 V A L U E S T R E A M O W N E R B U S I N E S S S P O N S O R, T E C H N I C A L S P O N S O R S TA K E H O L D E R S BUSINESS DISCOVERY BUSINESS DELIVERY Business Priority Business Planning Business Readiness Ready to Pull Incremental Development Incremental Deployment Support & Feedback Copyright 2012 Net Objectives, Inc. All Rights Reserved 38

Concept Product Managers Business Regional Coordinators Business

Requirements Customer Customers Consumption Capabilities

Product Related Shared Components Product Related Shared

39 Concept Product Managers Business Regional Coordinators Business Leaders Trainers & Educators Product Champion(s) New Requirements Customer Customers Consumption Capabilities Software Product Software Release Support Product Related Product Related Shared Components Product Related Shared Components Development The Value Stream Copyright 2012 Net Objectives, Inc. All Rights Reserved 39

Approv Request Reqts Sign Off e Analysis Design Review Code Test Deploy 1.

41 Approv Request Reqts Sign Off e 0.5 hrs 8 hrs 160 hrs 8 hrs Analysis 100 hrs Design Review Code Test 120 hrs 2 hrs 280 hrs 240 hrs Deploy 8 hrs 1. Identify the actions taken in the value stream 2. What was the real time from start to finish of the action? Copyright 2012 Net Objectives, Inc. All Rights Reserved 41

42 Request 0.5 / 0.0 hr Approve.1 / 7.9 hrs Reqts 60 / 100 hrs Sign Off 1 / 7 hrs Analysis 40 / 60 hrs 0.5 hrs 8 hrs 160 hrs 8hrs 100 hrs Design 40 / 80 hrs Review 2 / 0 hrs Code 80 / 200 hrs Test 40 / 200 hrs Deploy 3 / 5 hrs 120 hrs 2 hrs 280 hrs 240 hrs 8 hrs 1. Identify the actions taken in the value stream 2. What was the real time from start to finish of the action? 3. What was the average time working on this vs working on other things? Copyright 2012 Net Objectives, Inc. All Rights Reserved 42

hrs 80 hrs 120 hrs 2 hrs 280 hrs 240 hrs Deploy 3 / 5 hrs 8 hrs 1. Identify the actions taken in the value stream 2.

43 Request 0.5 / 0.0 hr Approve Reqts Sign Off 320 hrs.1 / 7.9 hrs 80 hrs 60 / 100 hrs 320 hrs 1 / 7 hrs 80 hrs 0.5 hrs 8 hrs 160 hrs 8hrs Analysis 40 / 60 hrs 100 hrs 80 hrs Design 40 / 80 hrs Review Code Test 2 / 0 hrs 160 hrs 80 hrs 80 / 200 hrs 80 hrs 40 / 200 hrs 80 hrs 120 hrs 2 hrs 280 hrs 240 hrs Deploy 3 / 5 hrs 8 hrs 1. Identify the actions taken in the value stream 2. What was the real time from start to finish of the action? 3. What was the average time working on this vs working on other things? 4. Identify time between actions Copyright 2012 Net Objectives, Inc. All Rights Reserved 43

44 Request 0.5 / 0.0 hr Approve Reqts Sign Off 320 hrs.1 / 7.9 hrs 80 hrs 60 / 100 hrs 320 hrs 1 / 7 hrs 80 hrs 0.5 hrs 8 hrs 160 hrs 8hrs Analysis 40 / 60 hrs 100 hrs 80 hrs Design 40 / 80 hrs Review Code Test 2 / 0 hrs 160 hrs 80 hrs 80 / 200 hrs 80 hrs 40 / 200 hrs 80 hrs 120 hrs 2 hrs 280 hrs 240 hrs Deploy 3 / 5 hrs 8 hrs 20% rejected Repeat 1X 65% defective Repeat 3X 1. Identify the actions taken in the value stream 2. What was the real time from start to finish of the action? 3. What was the average time working on this vs working on other things? 4. Identify time between actions 5. Identify any loop backs required Copyright 2012 Net Objectives, Inc. All Rights Reserved 22 March

Request 0.5 / 0.0 hrs Approve Reqts Sign Off 320 hrs.1 / 7.9 hrs 80 hrs 60 / 100 hrs 320 hrs 1 / 7 hrs 80 hrs 0.

hrs 160 hrs 80 hrs 80 hrs 80 hrs 120 hrs 2 hrs 280 hrs 240 hrs Deploy 3 / 5 hrs 8 hrs 20% rejected Repeat 1X 65% defective Repeat

What was the real time from start to finish of the action? 3. What was the average time working on this vs working on other things?

45 Request 0.5 / 0.0 hrs Approve Reqts Sign Off 320 hrs.1 / 7.9 hrs 80 hrs 60 / 100 hrs 320 hrs 1 / 7 hrs 80 hrs 0.5 hrs 8 hrs 160 hrs 8hrs Analysis 40 / 60 hrs 100 hrs 80 hrs Design 40 / 80 hrs Review Code Test 2 / 0 hrs 80 / 200 hrs 40 / 200 hrs 160 hrs 80 hrs 80 hrs 80 hrs 120 hrs 2 hrs 280 hrs 240 hrs Deploy 3 / 5 hrs 8 hrs 20% rejected Repeat 1X 65% defective Repeat 3X 509 hrs PCE = = 14.9% 3433 hrs 1. Identify the actions taken in the value stream 2. What was the real time from start to finish of the action? 3. What was the average time working on this vs working on other things? 4. Identify time between actions 5. Identify any loop backs required Avg Time Worked 6. Calculate Process Cycle Efficiency: Total Cycle Time Copyright 2012 Net Objectives, Inc. All Rights Reserved 45

hrs 80 hrs 80 hrs 80 hrs 120 hrs 2 hrs 280 hrs 240 hrs Deploy 3 / 5 hrs 8 hrs 20% rejected Repeat 1X 65% defective Repeat 3X 3433 509 =

46 Request 0.5 / 0.0 hrs Approve Reqts Sign Off 320 hrs.1 / 7.9 hrs 80 hrs 60 / 100 hrs 320 hrs 1 / 7 hrs 80 hrs 0.5 hrs 8 hrs 160 hrs 8hrs Analysis 40 / 60 hrs 100 hrs 80 hrs Design 40 / 80 hrs Review Code Test 2 / 0 hrs 80 / 200 hrs 40 / 200 hrs 160 hrs 80 hrs 80 hrs 80 hrs 120 hrs 2 hrs 280 hrs 240 hrs Deploy 3 / 5 hrs 8 hrs 20% rejected Repeat 1X 65% defective Repeat 3X = 2924 Which gives a better return? Getting better at what you do Eliminating delays between what you do Copyright 2012 Net Objectives, Inc. All Rights Reserved 46

47 DELAY IS finding redoing reworking waiting hand-offs bottlenecks information delay untested code unread requirements transaction related coordination related Copyright 2012 Net Objectives, Inc. All Rights Reserved 47

he software value stream Product Managers Business

Educators Capabilities Managing here Lean- Agile Product

Product Software Release Shared Components Development

Components Customers Support Reduces induced waste here

49 he software value stream Product Managers Business Regional Coordinators Business Leaders Trainers & Educators Capabilities Managing here Lean- Agile Product Champion(s) Product Related Product Related Software Product Software Release Shared Components Development Concept New Requirements Consumption Customer Shared Components Customers Support Reduces induced waste here Product Portfolio Management Copyright 2012 Net Objectives, Inc. All Rights Reserved 49

51 Questions Webinars: Capturing Business Rules in Stories. Amir Kolsky. TBD Courses: Lean-Agile Project Management. Atlanta April 3-5 Seattle April 3-5ay Washington DC April 17-19ay Copyright 2012 Net Objectives, Inc. All Rights Reserved 51

An Executive s Guide to the Scaled Agile Copyright Net Objectives, Inc. All Rights Reserved 2

An Executive s Guide to the Scaled Agile Framework Al Shalloway CEO, Net Objectives Al Shalloway CEO, Founder alshall@netobjectives.com @AlShalloway Copyright Net Objectives, Inc. All Rights Reserved 2