Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE
How Lean and Agile Are You?
Kieran Conboy, Deirdre Giblin, Orla ...
Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE
• Dr. Kieran Conboy is the Dean of the College of Business Publi...
Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE
Research Study on Software Project Portfolio
Management:
Challen...
Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE
Portfolio is a collection
of programs and projects
4
Portfolio, ...
Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE
Project
Portfolio
Mgt (PPM)
Alignment of
portfolio to
organisati...
Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE
Organisation
Regulatory
Bodies e.g.
ISO
Customers
Strategic
Part...
Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE 7
Participating organisations
Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE
To:
(a) identify challenges organisations face when managing
por...
Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE
• The unique features and constraints of PPM in a
software devel...
Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE
• Ensures projects are aligned to strategic objectives
• Focus o...
Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE 11
Why practice PPM?
“A portfolio should
be a true measure
of an...
Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE
• Participating organisations
– Different industries
– Different...
Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE 13
Case Profiles
Organisation Range From Range To
No. of employe...
Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE 14
PPM Challenges
PPM Challenges
1. Prioritisation
and selection...
Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE 15
PPM Challenges
PPM Challenges
1. Prioritisation
and selection...
Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE
Challenges
• Insufficient due diligence selecting projects
• Lac...
Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE
Challenges
• Multiple dependencies between projects
in relation ...
Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE
Challenges
• Competition for resources all the time
within sites...
Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE
Challenges
• Lack of release plan
o Different sites move at diff...
Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE
Challenges
• Difficult to determine business value
o No process ...
Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE
• For effective project portfolio management
– Prioritisation an...
Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE
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20140404 How Lean and Agile are You? _Orla O'Dwyer Lero

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The unique features and constraints of PPM in a software development context are not fully understood
Many organisations have clear plans in place to manage project portfolios
In others PPM is informal, ad-hoc and sometimes completely absent
How effective PPM is achieved is not entirely clear 9
Reasons for this study

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20140404 How Lean and Agile are You? _Orla O'Dwyer Lero

  1. 1. Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE How Lean and Agile Are You? Kieran Conboy, Deirdre Giblin, Orla O’Dwyer National College of Ireland 4th April 2014 1 ISIN/Lero/NUI Galway Event
  2. 2. Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE • Dr. Kieran Conboy is the Dean of the College of Business Public Policy and Law and is leading a Science Foundation Ireland funded project with the Lero research centre in this area. He has worked with many companies on their agile initiatives including Atlassian, Accenture, Fidelity Investments and Suncorp. • Deirdre Giblin is a manager with Ericsson with over 9 years’ experience in both project and line management. She has led teams of varying size and complex programs of work, delivering projects to multiple stakeholders and large Telecom operators. Her current roles involves the line management of 8 software development teams working in an agile environment delivering multiple features for Ericsson Network Management System. • Dr. Orla O’Dwyer is a post-doctoral researcher with the Lero software engineering research center and Whitaker Institute at NUI Galway, Ireland. Her research focuses on various aspects of project portfolio management including the challenges organisations face when managing IS project portfolios. 2 About the Presenters
  3. 3. Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE Research Study on Software Project Portfolio Management: Challenges and Solutions Orla O’Dwyer, Roger Sweetman Kieran Conboy April 4th, 2014 3
  4. 4. Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE Portfolio is a collection of programs and projects 4 Portfolio, program and projects Program is a group of related projects Project is a temporary body of work to create a new product or service Portfolio Program 1 Project 1 Project 2 Program 2 Project 1 Project 2 Project 3 Project management is “doing things right”; Portfolio management is “doing the right things”
  5. 5. Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE Project Portfolio Mgt (PPM) Alignment of portfolio to organisational strategy Portfolio Balancing Resource Management Pipeline Management Risk Management Financial Management Change Management 5 Project Portfolio Management (PPM) involves:
  6. 6. Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE Organisation Regulatory Bodies e.g. ISO Customers Strategic Partners Competitors Sales Marketing Finance Employees Sponsors 6 Stakeholders External Stakeholders Internal Stakeholders
  7. 7. Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE 7 Participating organisations
  8. 8. Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE To: (a) identify challenges organisations face when managing portfolios of software projects and to (b) establish solutions to those challenges 8 Objective of the study
  9. 9. Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE • The unique features and constraints of PPM in a software development context are not fully understood • Many organisations have clear plans in place to manage project portfolios – In others PPM is informal, ad-hoc and sometimes completely absent • How effective PPM is achieved is not entirely clear 9 Reasons for this study
  10. 10. Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE • Ensures projects are aligned to strategic objectives • Focus on the most important projects for the organisation • Maximises delivery of value • Allocates resources to the most important projects • Central oversight of budget and projects • Balance of risk across all projects 10 Why is PPM important?
  11. 11. Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE 11 Why practice PPM? “A portfolio should be a true measure of an organization’s intent, direction and progress.” (PMI, 2012)
  12. 12. Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE • Participating organisations – Different industries – Different sizes – Differing levels of maturity – Geography (co-located vs. distributed) – Differing levels of PPM process – Customer (internal, external) • Interviews included – Senior management, managers, portfolio managers, program managers, product managers 12 Data Collection
  13. 13. Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE 13 Case Profiles Organisation Range From Range To No. of employees (local site) 45 4,500 No. of employees (globally) 230 114,000 Portfolio budget €50k €20 million No. of projects in portfolio 1 47 Project duration 6 weeks 3 years Interviewee Min Max No. of years experience 8 years 30 years No. of years in role 6 months 11 years
  14. 14. Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE 14 PPM Challenges PPM Challenges 1. Prioritisation and selection of the right projects 2. Project inter- dependencies 3. Resource allocation 4. Release Management 5. Metrics 6. Communication 7. Alignment of project portfolio with strategic objectives 8. Centralised view of the project portfolio 9. Balancing the project portfolio 10. Frequency of portfolio reviews 11. Forward Planning 12. Risk analysis 13. Lack of PPM process 14. Terminology 15. Political environment 16. Organisational culture
  15. 15. Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE 15 PPM Challenges PPM Challenges 1. Prioritisation and selection of the right projects 2. Project inter- dependencies 3. Resource allocation 4. Release Management 5. Metrics 6. Communication 7. Alignment of project portfolio with strategic objectives 8. Centralised view of the project portfolio 9. Balancing the project portfolio 10. Frequency of portfolio reviews 11. Forward Planning 12. Risk analysis 13. Lack of PPM process 14. Terminology 15. Political environment 16. Organisational culture
  16. 16. Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE Challenges • Insufficient due diligence selecting projects • Lack of alignment to strategy • Regular switching of priorities • External influences re-prioritising projects o Competitors o Customers o Release of new operating system o Accreditation bodies • Pet Projects 16 1. Prioritisation and Selection Process Impact • Demoralisation and employee turnover • Low quality • Employees working on the ‘wrong’ projects Solutions • Introduce a scoring/ranking system - Rank projects by value and benefits (business case) o Develop and weight value and risk criteria • Ensure projects selected are aligned to organisational strategy • Balance benefits (long-term, short-term) and risks (high/low) across markets, technologies, products • Challenge peers/senior management to see why projects are selected. o Credibility factor – are you credible to challenge? “Not enough due diligence done to ensure the right projects are selected…. It used to be who could go in and argue the best”
  17. 17. Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE Challenges • Multiple dependencies between projects in relation to delivery dates • Technical dependency on core or other teams, which is not delivered • Individuals part of a centre of excellence and assigned to a team (not a member) 17 2. Project Inter-Dependencies Impact • Missing a date can have huge financial implications for the business • Option to work around, delay, or build it • Core code developed by multiple teams • Causes frustration amongst teams Solutions • Define inter-dependencies up-front • Signed agreement between teams to deliver where there are dependencies o Renegotiation takes place at very senior level • Sometimes teams need to work it out amongst themselves • Team who write the code give it to the CORE team • Putting relevant skills on each team e.g. instead of database team, include a database resource on each team “Another team may down- prioritise a feature because it is not important for them, but we were depending on them delivering”
  18. 18. Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE Challenges • Competition for resources all the time within sites/across sites • Too many projects for resourcing available • Politics involved in allocating resources o Lots of negotiation o Often based on numbers rather than skill set/expertise of employees o At lower level managers fight over skills • Flexible resource model vs. dedicated resources 18 3. Resource Allocation Impact • Resources must be requested from central teams/other teams (negotiation process) • Right resources may not be allocated to projects • Resources may be allocated to multiple projects • Teams may move on an ad-hoc basis Solutions • No easy solution o Larger organisations tend to dedicate a person/headcount board to manage resource allocations o Tools are used in some cases to ensure resources are allocated and utilised o Conduct regular meetings in relation to resources and project priorities o Resources are moved accordingly “we need to be flexible and nimble as we can have developers working on three different projects in any one week”
  19. 19. Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE Challenges • Lack of release plan o Different sites move at different pace o Desire to include too many features in a release o Teams working on features that are not a real priority (decreasing priority on the backlog) • Lack of buy-in to planning releases • Aligning releases with timing of the product suite o Aligning each individual module/feature of a product with the release date for the overall product suite o Inter-related projects delivering together 19 4. Release Management Impact • Delayed delivery of features • Lack of forward planning • Developing features that are no longer a priority • Increased cost and overheads Solutions • Aim to release regularly with agreed achievable functionality • Focus on the top priorities all the time • Some organisations have created a release management function responsible for software delivery, packaging etc. • Need to plan well ahead of time to avoid a bottleneck with resources e.g. service packs, beta release “We have the concept or are at least trying to get to the concept of quarterly releases”
  20. 20. Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE Challenges • Difficult to determine business value o No process to evaluate if ROI was achieved o Sales staff sell a product and give your module/feature for free to make the sale o How is value determined? Who obtains the sale? • Lack of involvement of finance personnel • Senior management need other metrics since transitioning to agile • Strict quality metrics 20 5. Metrics Impact • No closing of the loop in relation to ROI/business case • Lack of clarity on revenue • Lack of transparency/visibility on progress • Team is accountable as opposed to individuals • Increased cost if quality targets are not met Solutions • Introducing new templates for senior management to detail progress of agile projects • Involve finance/accountants in the process • Define and implement metrics appropriate for your organisation o E.g. Financial metrics to support business case (NPV, ROI), Stage gates/milestones, time, budget, quality, revenue, number features delivered, no. of o/s defects, no. sales, profit margin “Our product may have been written off because sales staff are trying to secure a wider deal (of multiple products)”
  21. 21. Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE • For effective project portfolio management – Prioritisation and selection of the right projects is critical • Have a strong process in place – Build a portfolio road map that is updated regularly • 6, 12, 18, 24+ months ahead – Good supports must exist • e.g. tools, templates, accurate reporting, frequent reviews to ensure investments deliver business strategy – Provide transparency and visibility across the organisation to all relevant stakeholders – Communication is important, especially in relation to the strategic direction of the organisation 21 Conclusion
  22. 22. Lero© 2013 THE IRISH SOFTWARE ENGINEERING RESEARCH CENTRE Thank you Thank you Questions?

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