Economically Sensible Scrum -- Scrum Gathering New Orleans 2014

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Scrum is a tool for increasing team and organizational agility to deliver superior business results. To utilize Scrum (or any tool) appropriately, however, we must understand more than just its basic mechanics. We must also understand the core principals that inform its use and then apply those principals in an economically sensible way. Doing so allows us to elevate and select among the many alternative, and often conflicting, choices for how to apply Scrum in the context of each organization's unique culture and business goals.

In this talk, I introduce the concept of Economically Sensible Scrum, which is the application of Scrum within an economic framework that is grounded in core agile principles. To illustrate the utility of this approach, I examine several different issues that I encounter when visiting clients. Using the lens of an economic framework, I focus on how to use agile principles to overcome these issues and make quick, correct, and understandable choices when applying Scrum at both the team and organizational levels to achieve desirable business results.

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Economically Sensible Scrum -- Scrum Gathering New Orleans 2014

  1. 1. 1Copyright © 2014, Innolution, LLC. All Rights Reserved. Economically Sensible Scrum Scrum Gathering Keynote New Orleans, LA May 5, 2014 by Ken Rubin
  2. 2. 2Copyright © 2014, Innolution, LLC. All Rights Reserved. Background of Ken RubinAuthorTrainer Coach Exp Trained more than 20,000 people Coach developers and executives 1st Managing Director 1st Scrum project was in 2000 for bioinformatics
  3. 3. 3Copyright © 2014, Innolution, LLC. All Rights Reserved.
  4. 4. 4 Restaurant analogy takeaways Copyright © 2014, Innolution, LLC. All Rights Reserved. Restaurant and manger failed to grasp fundamental principles of running long-term profitable restaurant chain Failed to evaluate specific actions in the context of an economic framework based on those principles Many organizations do good team-level Scrum, yet don’t get desired business results because they fail to grasp the fundamental principles that underlie Scrum and how those principles should be used in an economically sensible way
  5. 5. 5 90 minutes from now… Copyright © 2014, Innolution, LLC. All Rights Reserved. You will walk out of here knowing the three principal inhibitors to organizational success with Scrum… And how to use Economically Sensible Scrum to address them
  6. 6. 6 Scrum framework Copyright © 2014, Innolution, LLC. All Rights Reserved. Art available at: http://www.innolution.com/resources Scrum isn’t sufficient for success, Economically Sensible Scrum is
  7. 7. 7Copyright © 2014, Innolution, LLC. All Rights Reserved.
  8. 8. 8 Approaches Copyright © 2014, Innolution, LLC. All Rights Reserved.
  9. 9. 9 ScrumBut(t) – violations of the Scrum framework Copyright © 2014, Innolution, LLC. All Rights Reserved. We do Scrum, but… Sprints are 8 weeks No product owner Daily scrums on M-W-F Sprint planning is 2 days Etc…
  10. 10. 10 What if there are no Scrum “violations?” Copyright © 2014, Innolution, LLC. All Rights Reserved. VIOLATION YOUR USE OF SCRUM VIOLATES A CORE PRACTICE AND IS HEREBY DEEMED TO BE A SCRUMBUT YOUR TEAM PHOTO HAS BEEN RECORDED Do no violations = success with Scrum?
  11. 11. 11 Three inhibitors to success using Scrum Copyright © 2014, Innolution, LLC. All Rights Reserved. Ignorance or misapplication of core agile principles during development Failure to apply agile principles throughout the value chain Failure to structure teams in an economically sensible way Overall, not applying core agile principles in an economically sensible way
  12. 12. 12 Agile principles provide context for inspecting & adapting Copyright © 2014, Innolution, LLC. All Rights Reserved. People who apply Scrum without understanding its underlying principles lack the necessary context to understand why they are doing things and when and how best to inspect and adapt their approaches
  13. 13. 13 Agile principles make organizations robust & antifragile Copyright © 2014, Innolution, LLC. All Rights Reserved. Fragile Harmed by disorder Robust Resilient to disorder Antifragile Benefits from disorder AgileWaterfall Embracing Agile principles makes the development process and organization robust and at times antifragile to the disorder of uncertain events, avoiding harm and reaping benefits of uncertainty
  14. 14. 14 Economically sensible scrum Copyright © 2014, Innolution, LLC. All Rights Reserved.
  15. 15. 15 Economics – universal language of product development Copyright © 2014, Innolution, LLC. All Rights Reserved.
  16. 16. 16 We need an economic framework Copyright © 2014, Innolution, LLC. All Rights Reserved. Based on Reinertsen “The Principles of Product Development Flow: Second Generation Lean Product Development”
  17. 17. 17 Example: waste Copyright © 2014, Innolution, LLC. All Rights Reserved. Waste 1 Waste 2 Waste 3 Waste 4 Multiple forms of waste Waste 1 Waste 2 Waste 3 Waste 4 Can’t eliminate them all Waste 1 Waste 2 Waste 3 Waste 4 $ $$$$ $$ $$$ Determine which cause most economic damage
  18. 18. 18 Example: cost of delay Copyright © 2014, Innolution, LLC. All Rights Reserved. Lead time Variability Money Lead time If you have to wait 3 weeks for the UX team to design your UIs, and that delay could be eliminated by having a UX designer on your team, what would be the cost of the UX-team delay (in lifecycle profits)?
  19. 19. 19Copyright © 2014, Innolution, LLC. All Rights Reserved. Ignorance or Misapplication of Core Agile Principles During Development
  20. 20. 20 Misunderstanding of when change occurs Copyright © 2014, Innolution, LLC. All Rights Reserved. We like Scrum, because we can make changes anytime we want! Holly *?&! they can’t just change things whenever they want!
  21. 21. 21 Economically sensible change Copyright © 2014, Innolution, LLC. All Rights Reserved.
  22. 22. 22 Misunderstanding of just-in-time Copyright © 2014, Innolution, LLC. All Rights Reserved. Holly *?&! This sounds like total chaos!!! With Scrum we do everything just-in-time!
  23. 23. 23 Balance up front predictive with adaptive just in time Copyright © 2014, Innolution, LLC. All Rights Reserved.
  24. 24. 24 Recognize inventory (WIP) waste Copyright © 2014, Innolution, LLC. All Rights Reserved. Manufacturing inventory is both physically and financially visible Product-development inventory is knowledge assets that are physically and financially invisible
  25. 25. 25 Focus on Idle Work Not Idle Workers Watch the Baton Not the Runners Copyright © 2014, Innolution, LLC. All Rights Reserved.
  26. 26. 26 Fast, flexible flow Copyright © 2014, Innolution, LLC. All Rights Reserved.
  27. 27. 27 Economically sensible planning Copyright © 2014, Innolution, LLC. All Rights Reserved.
  28. 28. 28Copyright © 2014, Innolution, LLC. All Rights Reserved. Failure to Apply Scrum Principles Throughout the Value Chain
  29. 29. 29 Example value chain Copyright © 2014, Innolution, LLC. All Rights Reserved.
  30. 30. 30 Downstream misaligned Copyright © 2014, Innolution, LLC. All Rights Reserved.
  31. 31. 31 Do Agile Here Copyright © 2014, Innolution, LLC. All Rights Reserved. Internal management misaligned Develop in an Agile way, but still provide all of the same plan-driven artifacts (e.g., extensive up-front requirements, full budget, and precise schedule) like before to get the project approved
  32. 32. 32 Sales Misaligned Copyright © 2014, Innolution, LLC. All Rights Reserved.
  33. 33. 33 Portfolio planning misaligned Copyright © 2014, Innolution, LLC. All Rights Reserved.
  34. 34. 34 Partners misaligned Copyright © 2014, Innolution, LLC. All Rights Reserved. Fixed FixedFixed Contract
  35. 35. 35 Protection of the fiefdoms Copyright © 2014, Innolution, LLC. All Rights Reserved. Sure, we can do Scrum, as long as I don’t have to change anything in my group! George’s Group Me too! Me too! Me too! Me too!
  36. 36. 36 Failure to see the whole Copyright © 2014, Innolution, LLC. All Rights Reserved. Optimizing locally frequently sub- optimizes the system
  37. 37. 37Copyright © 2014, Innolution, LLC. All Rights Reserved. Failure to Structure Teams in an Economically Sensible Way
  38. 38. 38 Economically sensible teaming Copyright © 2014, Innolution, LLC. All Rights Reserved. Reduce multitasking Scaling teams based on economics, not dogma Embrace T-shaped skills Create and maintain long-lived teams
  39. 39. 39 Reduce the amount of multitasking Copyright © 2014, Innolution, LLC. All Rights Reserved. Not about keeping people busy
  40. 40. 40Copyright © 2014, Innolution, LLC. All Rights Reserved. Cost of multitasking Clark and Wheelwright (1992) studied multi-tasking and determined that when working on more than two projects, a person’s time spent on value-adding work drops rapidly
  41. 41. 41 Teams with T-Shaped skills Copyright © 2014, Innolution, LLC. All Rights Reserved.
  42. 42. 42 Team longevity Copyright © 2014, Innolution, LLC. All Rights Reserved. Product 1 PB 1 Feature Team A Product 2 PB 2 Feature Team A ?
  43. 43. 43 Economics favor long-lived teams Copyright © 2014, Innolution, LLC. All Rights Reserved. More productive than newly formed groups Team familiarity can positively impact efficiency and quality of team output Has a shared velocity and estimating history that can be used during planning Have established trust and team identity and integrity
  44. 44. 44 Scaling with multiple teams Copyright © 2014, Innolution, LLC. All Rights Reserved. As the scope of work gets larger and one team is no longer sufficient, what is your scaling strategy?
  45. 45. 45 Discipline teams Copyright © 2014, Innolution, LLC. All Rights Reserved.
  46. 46. 46 Location teams Copyright © 2014, Innolution, LLC. All Rights Reserved. New York Mumbai New York Mumbai Deliberately Distributed Teams Team 2 Team 1 Team 1 Team 2 Coordinating Collocated Teams
  47. 47. 47 Architectural layer teams Copyright © 2014, Innolution, LLC. All Rights Reserved. GUI Middle Tier Database
  48. 48. 48 Component teams Copyright © 2014, Innolution, LLC. All Rights Reserved. Example component: Routing algorithms (component) inside of a GPS
  49. 49. 49 Feature teams Copyright © 2014, Innolution, LLC. All Rights Reserved.
  50. 50. 50 Feature Example feature team working on end-customer feature Copyright © 2014, Innolution, LLC. All Rights Reserved.
  51. 51. 51 Feature team tasks Copyright © 2014, Innolution, LLC. All Rights Reserved.
  52. 52. 52 (This looks like a feature) (GUI Team) (Middle-tier Team) (Database Team) Example “feature” to a component team Copyright © 2014, Innolution, LLC. All Rights Reserved.
  53. 53. 53 Feature That which is a feature to a component team is a task to a feature team That which is a feature to a component team is a task to a feature team Copyright © 2014, Innolution, LLC. All Rights Reserved.
  54. 54. 54 Don’t scale based on dogma! Copyright © 2014, Innolution, LLC. All Rights Reserved. Do you honestly think there is a single answer to scaling that universally applies to all situations (sizes and types of organizations)? Everyone knows feature teams are better! Nuts! Component teams promote conceptual integrity & reuse!
  55. 55. 55Copyright © 2014, Innolution, LLC. All Rights Reserved. Component teams (single source)
  56. 56. 56Copyright © 2014, Innolution, LLC. All Rights Reserved. Component teams (multiple sources)
  57. 57. 57Copyright © 2014, Innolution, LLC. All Rights Reserved. Combined feature & component teams
  58. 58. 58 Fast, flexible flow Copyright © 2014, Innolution, LLC. All Rights Reserved.
  59. 59. 59 Summary Copyright © 2014, Innolution, LLC. All Rights Reserved. Performing all Scrum practices... using proven approaches… Need to apply Scrum on foundation of core agile principles within an economic framework that allows sensible tradeoffs
  60. 60. 60 Visual AGILExicon® Copyright © 2007-2014, Innolution, LLC. All Rights Reserved.
  61. 61. 61 www.essentialscrum.com Copyright © 2007 - 2014, Innolution, LLC. All Rights Reserved.
  62. 62. 62Copyright © 2014, Innolution, LLC. All Rights Reserved. Contact info for Ken Rubin Email: krubin@innolution.com Website: www.innolution.com Phone: (303) 827-3333 LinkedIn: www.linkedin.com/in/kennethrubin Twitter: www.twitter.com/krubinagile Facebook: www.facebook.com/InnolutionLLC Essential Scrum: A Practical Guide to the Most Popular Agile Process www.essentialscrum.com Comparative Agility Website www.comparativeagility.com

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