Agile Governance

Pierre E. NEIS
From Governance to Project Management: Scrum ?

Agenda
Scope & Results: market expectations in terms of Governance
Agile Management Framework
Agile Governance: AgileEVM
Indexes & References
Pierre NEIS - 4th PM Congress
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Scope
06.2009 : Fedil-ICT and Centre de Recherche Public Henri Tudor Report « Gouvernance IT et rôle du CIO dans les entreprises luxembourgeoises : Etat des lieux et bonnes pratiques »
The Report « Improving IT Governance. Manage, control and monitor IT within the Business », pWc 2008
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1 – Fedil-ICT / CRP HT
Conclusions of the Fedil-ICT et Centre de Recherche Public Henri TUDOR Report
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Result :

IT Governance should reflect the needs of business
The priority skills of the CIO are:
IT needs analysis
Arbitrate and select
Managing IT Security

How?
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Solution : « Integration and Alignment »

The business strategy and IT strategy are defined simultaneously
The CIO participates at the Executive Comittee
IT is the subject of a specific item in the agenda of the executive committee
Platforms enable communication and sharing between business and IT
Business requirements are formalized in business cases

How?
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Conclusions du Rapport Fedil-ICT et Centre de Recherche Public Henri TUDOR
Solution: The Role of IT

IT projects are subjects to Project Management
Business is involved in IT projects
IT accompanying uses
The CIO set up a Quality Management
IT communicate
IT ensure the IT Security

How?
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Solution: Role and Competencies of the Chief Information Officer

CIO promotes Innovation
CIO trains himself
CIO gets informed

How?
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In 3 words:

Cooperation between Business and IT
IT Governance is a Project Management
The CIO is the Project Pilot

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# 1 Result
IT switches into Project
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2 –PricewaterhouseCoopers Report
« Improving IT Governance. Manage, control and monitor IT within the Business », pWc 2008
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Gouvernance IT, a holisticframework!

More organizational Aspects : CobIT, CMMI, ITIL, ISO17799, ISO27001
Inefectiveness if no aligmentbetween IT Governance and IT Operations
Criticalfactors to control :
Technologyenablement
Communication & change management
Performance management & benefitstracking

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Expectedbenefits by adoptingthisapproach
Governance/
Operationalignment
communication & cooperation
Increased agility and flexibility of IT
Change Reaction
Greater Value delivery
Added Value
Reduced risks & cost (…) through more responsible IT resource
Team Building
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Identify the organizational culture and conditions change
Getting the support of Senior Management and Vision
Set goals and achievable expectations
Define a Benefits Management
EvaluateMaturityLevel
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Communication value as a Key Success Factor
Quick wins to deliver results and to gain greater acceptance of project
Linking IT Governance with Business Key Themes
Don’t over-engineer IT Governance
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# 2 Results
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Agility?
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Agile Manifesto
Agile Concept
Scrum
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Agile Manifesto
More
Prioritization
Less
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Agile Manifesto
objectives
Employee Engagement
Empowered, committed and happy employees
The Magic Triangle
Value Creation
Maximize ROI and optimize cash flow
Customer Satisfaction
Serve the Customer
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Scrum
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The Scrum Concept
+ Product
+ Process
Empowered
Involved
Just enough, Just in Time
Doing the Right Thing the Right Way
Doingwell (Product)
Doingwell (Process)
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Self directed Teams vs. Traditional Organization
Source:
"Leading self-directed work teams“
by Kimball Fisher
SCRUM
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Scrum: Scrum Process
Objectives:

Deliver a product per iteration
Quality is not negotiable
Velocity
Communication
Reactivity
Team Building

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The Agile Project Managers are concerned with two key performance indicators :
Backlog Size
Velocity
Product Backlog = list of project requirements
Velocity = amount of backlog that the team can deliver in a Sprint / Iteration
Backlog Size ÷ Velocity per Sprint/Iteration = Number of Sprints/Iterations to deliver the Project
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Scrum Planning Onion
Concept
CIO
Chief Product Owner
Vision
Product Owner
Added Value + Velocity
Roadmap
Team + ScrumMaster
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Scrum: the Artifacts
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Agile Governance: AgileEVM
Project Portfolio Management with AgileEVM
Scrum: Metrics
Key Earned Value Management (EVM) – Concepts
AgileEVM Background
Expand AgileEVM to Portfolio
Source:
Brent BARTON
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Project Portfolio Management with AgileEVM
Objectives:
We want to mesure the Outcome not the Ouputs
Business Value
Process
Prioritization to maximize Business Value
Efficient shipping to minimize costs
Redistribution of resources when costs are too high or profits too low.
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Scrum: Metrics
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Key Earned Value Management (EVM) Concepts
Integrates Cost and Schedule Performance
Financial forecasts based on actual cost :
Consumed Costs, Consuming Rate, Time Allocation, etc.
Unlike the velocity, the Actual Cost is the cumulative Team Costs
Follow the ANSI standard (ANSI/EIA -748)
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AgileEVM Background
Release dates are based on average velocity (storypoints)= estimate at complete (euros)
Assumption: the ratio(story points completed)/(total story points in a release) is a good mesure for Actual Percent Complete
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Expand AgileEVM to Portfolio
AgileEVM can coexist with EVM at Portfolio level – with caution
Help to manage the delivery with integrating of the best of Agile, Scrum and EVM
We can compare productivity without degrade velocity
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AgileEVM: brief Analyze
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Examples
Scoreboard
Velocity
Release Burndown
SPI (schedule performance index) & CPI (cost performance index)
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Scoreboard
PI: Planned iteration
IL: iteration length
PRSP: initial Story Points
BAC: budget as completed
Average velocity from start
Actual % completed
Cumulative story points
n/PI
SPA: Story Points added
This gives us the ability to give a complex burndown chart that shows scope growth and velocty
BAC - cumEV
n: iteration Number
(BAC - cumEV)/cumCPI
cumulative story point completed for n sprints
SPC: Story Points completed
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Velocity
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Release Burndown
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SPI (schedule performance index) & CPI (cost performance index)
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Governance Structures
Sample Product Owner Team
Complex Product Owner Hierarchy
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work is decomposed from goals, and reported to track progress in reaching goals
The wailing Wall
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Indexes & References
Organizational Structure: What is the role of Management?
Scrum Reporting Relationship
Companies using SCRUM
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Organizational Structure: What is the role of Management?
CIO, CTO,
VP Engineering
Product Line Manager
Functional
Manager
Functional
Manager
Functional
Manager
Usability Engineering
DBA
Infrastructure
Quality Assurance
PMO
Copyright 1996-2007, ADM, all rights reserved v8.0
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Scrum Reporting Relationships
Development
Team
Development
Team
Development
Team
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Companies using SCRUM
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References
http://www.methodsandtools.com/mt/download.php?fall09
http://www.infoq.com/articles/agile-evm
http://www.agile-lu.org/
www.linkedin.com/groups?gid=1010877
http://www.viadeo.com/hub/afficherubrique/?hubId=00228fpqzpnccn8v&forumId=002jx74kpan69fl
https://www.xing.com/net/agilelux/
https://www.xing.com/net/a-saar/
Other:

AgileEVM Adding Cost Control to the Agile Toolkit by Tamara Sulaiman
Project Portfolio Management with AgileEVM by Brent Barton

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Thank You
Pierre E. NEIS
Certified Scrum Product Owner
President of AIGLU
Senior Management Consultant
pneis@agilepartner.net
www.linkedin.com/in/pierreneis
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The oak one day says to the reed:—You have a good right to blame the nature of things: A wren for you is a heavy thing to bear. The slightest wind which is likely To wrinkle the face of the water Compels you to bow your head—While my brow, like Mount Caucasus, Not satisfied with catching the rays of the sun, Resists the effort of the tempest. All for you is north wind, all seems to me soft breeze. Still, if you had been born in the protection of the foliage The surrounding of which I cover, I would defend you from the storm. But you come to be most often On the wet edges of the kingdoms of the wind. Nature seems to me quite unjust to you. —Your compassion, answered the shrub, Arises from a kind nature; but leave off this care. The winds are less fearful to me than to you. I bend and do not break. You have until now Against their frightening blows Stood up without bending your back; But look out for what can be. —As the reed said these words, From the edge of the horizon furiously comes to them The most terrible of the progeny Which the North has till then contained within it. The tree holds up well; the reed bends. The wind doubles its trying; And does so well that it uproots That, the head of which was neighbor to the sky, And the feet of which touched the empire of the dead.
The Oak and the Reed (Translation by Eli Siegel)
Jean de LA FONTAINE (1621-1695)