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Achieving Agility at Scale
                         Improving Software Economics
                             Managing Inn...
IBM Rational Software Conference 2009


The nature of innovation


   Innovation is not the predictable realization of a n...
IBM Rational Software Conference 2009


What I read on my vacation


                                  Magellan knew exact...
IBM Rational Software Conference 2009


The project model

Standard model                                            Moder...
IBM Rational Software Conference 2009


Critical culture shifts
Conventional Governance                     Agile Governan...
IBM Rational Software Conference 2009



    Schedule risk: Imagine you have 12 months to deliver
    a business critical ...
IBM Rational Software Conference 2009



Maybe you realize that program parameters
(cost, schedule, effort, quality, …) ar...
IBM Rational Software Conference 2009


Imagine you have 12 months to deliver a business
critical systems
    So you ask f...
IBM Rational Software Conference 2009


Imagine you have 12 months to deliver a business
critical systems
    In fact ther...
IBM Rational Software Conference 2009


Then what?


    Move out the date to improve likelihood of shipping?




        ...
IBM Rational Software Conference 2009


Then what?


    Or move in the estimate by sacrificing quality or content?




  ...
IBM Rational Software Conference 2009


Managing variances in scope, solution, plans:
The real key to improving software e...
IBM Rational Software Conference 2009


Then what?


    Determine the source of the variance


    Over the project lifec...
IBM Rational Software Conference 2009


Then what?


    Over the lifecycle, reduce the variance further to improve likeli...
IBM Rational Software Conference 2009


Measure and steer
   At onset of program
     Report:         Establish estimates/...
IBM Rational Software Conference 2009

Agile Governance = Managing Uncertainty = Managing Variance

   A completion date i...
IBM Rational Software Conference 2009

Practices included as part of Rational Method
Composer




                        ...
IBM Rational Software Conference 2009


Agenda


   Transitioning to Agile Software Delivery
      Economic governance
   ...
IBM Rational Software Conference 2009


Software and systems need a control framework
                                    ...
IBM Rational Software Conference 2009


Meters for software and systems
development and delivery improvement
             ...
IBM Rational Software Conference 2009


Tailor to organizational and project context
   Agree on business value measures: ...
IBM Rational Software Conference 2009

Select practices and measures based on business
and operational objectives
 High # ...
IBM Rational Software Conference 2009


Agenda


   Transitioning to Agile Software Delivery
      Economic governance
   ...
IBM Rational Software Conference 2009


Four patterns of success in achieving Agility at Scale
1. Scope management        ...
IBM Rational Software Conference 2009


Software cost models
                                                   Boehm COCO...
IBM Rational Software Conference 2009


Improving software economics
   Empirical software cost estimation models for:
   ...
IBM Rational Software Conference 2009


   Achieve continuous improvement by measuring cost
   against business outcomes
 ...
IBM Rational Software Conference 2009

Improve process to increase productivity by 25%-100%
Implement iterative / adaptive...
IBM Rational Software Conference 2009


Improving process and increasing flexibility                                      ...
Slide 29

A1         4) finally, on slide 4, i changed the heading that was iterative development to both iterative develo...
IBM Rational Software Conference 2009

Measured Capability Improvement Framework (MCIF):
A systematic approach to software...
IBM Rational Software Conference 2009


Some final thoughts



                Software delivery is a discipline of softwa...
IBM Rational Software Conference 2009




© Copyright IBM Corporation 2009. All rights reserved. The information contained...
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Transcript of "Achieving agility at_scale-martin_nally"

  1. 1. Achieving Agility at Scale Improving Software Economics Managing Innovation Martin Nally CTO IBM Rational, IBM Fellow Executive Summit Exec02 © 2009 IBM Corporation
  2. 2. IBM Rational Software Conference 2009 The nature of innovation Innovation is not the predictable realization of a new idea Innovation is a risky plunge into the unknown, but with a clear objective and a strong sense of general direction, a key idea Executive Summit 2
  3. 3. IBM Rational Software Conference 2009 What I read on my vacation Magellan knew exactly what he wished to achieve and his general plan for getting there Find a passage through South America Claim the Moluccas (Slice Islands) for Spain There were many unknowns and risks along the way There was no detailed plan – he steered as he went How would Magellan have managed a software project? Executive Summit 3
  4. 4. IBM Rational Software Conference 2009 The project model Standard model Modern model Distinct development phase Continuously evolving systems No distinct boundary between development Distinct handoff to maintenance and maintenance Requirements-design-code-test Sequence of released capabilities sequence with ever increasing value Phase and role specific tools Common platform of integrated process / tooling Collocated teams Distributed, web based collaboration Economic governance tailored Standard engineering governance to risk / reward profiles Engineering practitioner led Business value and outcome led Executive Summit 4
  5. 5. IBM Rational Software Conference 2009 Critical culture shifts Conventional Governance Agile Governance Activity-based management Results-based management Mature processes, PMI/PMBOK More art than engineering Plan in detail, then track variances Plan/steer/plan/steer… Adversarial relationships Honest collaborative communication Paper exchange, speculation Progressions/digressions, facts Requirements first Architecture (risk mitigation) first Assumes certainty in desired product Admits uncertainties Avoid change Manage change Early false precision Evolving artifacts “More detail = higher quality” Scope (Problem specs) Design (Solution specs) Constraints (Planning specs) Apply too much or too little process Right-size the process Process is primary, blind adherence Desired results drive process Manage variances Executive Summit 5
  6. 6. IBM Rational Software Conference 2009 Schedule risk: Imagine you have 12 months to deliver a business critical system Your estimators tell you it will be done in 11 months What do you do with the information? Rest easy, believing there is no risk? 0 6 12 Executive Summit 6
  7. 7. IBM Rational Software Conference 2009 Maybe you realize that program parameters (cost, schedule, effort, quality, …) are random variables Area under curve describes probability of measurement falling in range 0.45 0.4 0.35 Likelihood of actual value 0.3 falling in range is area under curve 0.25 0.2 0.15 0.1 0.05 0 00 60 40 20 00 80 20 00 80 20 00 40 80 60 40 60 0. 1. 2. 5. 6. 0. 1. 2. 2. 3. 4. 4. 4. 5. 0. 3. Executive Summit 7
  8. 8. IBM Rational Software Conference 2009 Imagine you have 12 months to deliver a business critical systems So you ask for the distribution and discover there is some uncertainty 0 6 12 Executive Summit 8
  9. 9. IBM Rational Software Conference 2009 Imagine you have 12 months to deliver a business critical systems In fact there is less than 50% chance of making the date 48% 0 6 12 Executive Summit 9
  10. 10. IBM Rational Software Conference 2009 Then what? Move out the date to improve likelihood of shipping? 95% 0 6 12 15 Executive Summit 10
  11. 11. IBM Rational Software Conference 2009 Then what? Or move in the estimate by sacrificing quality or content? 95% 0 6 12 Executive Summit 11
  12. 12. IBM Rational Software Conference 2009 Managing variances in scope, solution, plans: The real key to improving software economics Sources of uncertainty 0.45 0.4 and variance 0.35 Lack of knowledge 0.3 Lack of confidence 0.25 0.2 Lack of agreement 0.15 Reduction of 0.1 variance reflects 0.05 Increased predictability 0 00 40 00 60 80 20 60 80 20 60 40 80 40 00 20 of outcome 0. 0. 2. 5. 0. 1. 1. 2. 3. 3. 4. 4. 2. 4. 5. Increased knowledge about Client needs Technology capability Team capability Good decisions Executive Summit 12
  13. 13. IBM Rational Software Conference 2009 Then what? Determine the source of the variance Over the project lifecycle, reduce the variance to improve likelihood of shipping 90% 0 6 12 Executive Summit 13
  14. 14. IBM Rational Software Conference 2009 Then what? Over the lifecycle, reduce the variance further to improve likelihood of shipping 95% 0 6 12 Executive Summit 14
  15. 15. IBM Rational Software Conference 2009 Measure and steer At onset of program Report: Establish estimates/variances of effort, cost, establish initial plan Collaborate: Set initial scope and expectations with stakeholders Automate: Establish a collaborative development environment At each iteration, improve estimates and report Report: Values and variances of progress achieved, quality achieved, resources expended Collaborate: With stakeholders to refine scope and plans Automate: Manage changes to plans, baselines, test-beds Initial Plan Initial State Initial Planned Path Uncertainty in stakeholder satisfaction space Variance in Actual Path estimate to complete Executive Summit 15
  16. 16. IBM Rational Software Conference 2009 Agile Governance = Managing Uncertainty = Managing Variance A completion date is not a point in time, it is a probability distribution 0 6 12 Scope is not a requirements document, it is a continuous negotiation Plans/Resource estimates Scope Product features/quality A plan is not a prescription, it is an evolving, moving target Uncertainty in Stakeholder Satisfaction Space Initial State Initial Plan Actual path and precision of Scope/Plan Executive Summit 16
  17. 17. IBM Rational Software Conference 2009 Practices included as part of Rational Method Composer Executive Summit 17
  18. 18. IBM Rational Software Conference 2009 Agenda Transitioning to Agile Software Delivery Economic governance Steering and managing uncertainty Metrics and Measures Instrumentation for gaining control, improving efficiency and optimizing value Improving Software Economics A framework for improvement priorities Executive Summit 18
  19. 19. IBM Rational Software Conference 2009 Software and systems need a control framework Performance Measurement Value Value Metrics Business Objectives measures e.g., ROI, ROA for SSD Efficiency Operational Effectiveness Metrics feedback Operational Objectives measures e.g., Time to market, productivity Control Process Definition / Practices measures Practice Practice Rational Method Composer Adoption/Maturity Artifacts subjective Objective Process Enactment / Governance Enforcement / Process Awareness Jazz Platform Executive Summit 19
  20. 20. IBM Rational Software Conference 2009 Meters for software and systems development and delivery improvement BRIDGE to MCIF Value Return on Investment (ROI) Return on Assets (ROA) $0 Business $15 Product revenue profile Value $M Efficiency Time to market, productivity Program portfolio investment profile Defect phase containment, scrap and rework rates 0% Operational 100% Application service levels Efficiency Defect densities, requirements churn, design churn Skills improvement, training cost reduction Control Practice adoption, project checkpoints Process 0% 100% Artifact time between gates Adoption Collaboration, skills mix Executive Summit 20
  21. 21. IBM Rational Software Conference 2009 Tailor to organizational and project context Agree on business value measures: Cost, profit, return on assets, market share, etc. Determine project mix type Choose appropriate operational measures Choose practices to achieve measures for project mix Establish measures and feedback channels for closed loop control Variance Examples Low Medium High Value Cost of operations Market share growth Profitability of one-of-a- (Business Time to market for new features kind system Measures) Efficiency Cost per change request Cost per change request Architectural stability (Operational Individual productivity Team Productivity Organizational productivity Measure) Controls Self check for practices Beta releases Stakeholder demonstrations Defect densities, removal rates Practices Requirements management Agile planning Shared vision Change management Test driven development Risk based lifecycle Iterative development Evolutionary Architecture Executive Summit 21
  22. 22. IBM Rational Software Conference 2009 Select practices and measures based on business and operational objectives High # of defects (pre/post-ship) CEO Business Value High support or maintenance costs without High maintenance costs (devt) of fixing defects high defect #s Customer downtime Low pipeline conversion IT Quality Goals Low customer satisfaction CIO Dev. Mgr. Development Quality Goals Operational Quality Goals ? ? High defects both pre- Non-functional Req. Issues and post-ship High # of Help Desk Calls Reduce Post-Delivery Defects Deliver What Stakeholder Needs Growing defect backlog High Incidence Resolution Times H L M L ? ? ? ? Improve Non- Increase Defect Increase Defect Deliver on Customer Functional Quality Prevention Detection Requirements M M H L M L Attributes M L High post-ship or customer-reported Measures: Measures: Measures: Measures: defects Post-ship problem reports Post-ship problem reports Defect density Defect density, distribution Customer satisfaction Customer satisfaction High error rates in Defect arrival/closure Defect arrival/closure rates Pipeline conversion? Support / maint. costs fixes rates Defect removal effectiv. High Requirements Churn Support / maint. costs Requirement test coverage Defect backlog Fixes failing verification Requirem. test coverage Test execution results High Post Delivery Support Fixes failing verification Test coverage Rework effort Test execution status Requirements delivery Aging ER Backlog Survey of feature usage Practices: Performance Testing Practices: Practices: Test-driven Dev. Requirements Mgnt. Test management Practices: Design-driven Implem. Shared Vision Shared Vision Continuous integration C&C management Use-case Driven Dev Risk-Value Lifecycle Evolutionary Architecture System Component Arch. Requirements Mgnt. Evolutionary Architecture Component Architecture Whole Team Test-Driven Development Whole team Test-driven dev. Pair Programming Iterative Dev. Iterative Development Test practices Revenue / Cost Functional Testing Evolutionary Design Review/Inspection Iterative Dev. C&C Management Component Architecture Risk Value Lifecycle Review/Inspection Continuous Integration C&C Management Value (H,M or L) Concurrent Testing Review/Inspection Cost (H, M or L) Whole Team Review/Inspection Hot Component Executive Summit 22
  23. 23. IBM Rational Software Conference 2009 Agenda Transitioning to Agile Software Delivery Economic governance Steering and managing uncertainty Metrics and Measures Instrumentation for gaining control, improving efficiency and optimizing value Improving Software Economics A framework for improvement priorities Executive Summit 23
  24. 24. IBM Rational Software Conference 2009 Four patterns of success in achieving Agility at Scale 1. Scope management Asset based development Solutions evolve from requirements AND requirements evolve from available assets As opposed to getting all the requirements right up front 2. Process management Rightsize the process Process and instrumentation rigor evolves from light to heavy As opposed to the entire project’s lifecycle process should be light or heavy depending on the character of the project 3. Progress management Honest assessments Healthy projects display a sequence of progressions and digressions As opposed to progressing to 100% earned value with monotonically increasing progress against a static plan 4. Quality management Incremental demonstrable results Testing needs to be a 1st class, full lifecycle activity As opposed to a subordinate, later lifecycle activity Executive Summit 24
  25. 25. IBM Rational Software Conference 2009 Software cost models Boehm COCOMO Effort Estimation Accuracy ISBSG Effort Estimation Accuracy 1000.00 1000.00 Effort (Staff-months) 100.00 100.00 E ffort (L M ) Rone Effort Estimation Accuracy 10.00 10.00 1000.00 1.00 1.00 100 1000 10000 100000 100.00 1.00 10.00 100.00 1000.00 10000.00 Effort (SM) Size (SLOC) Size (FP) 10.00 Jones Effort Estimation Accuracy Basili & Bailey Effort Estimation Accuracy 1000.00 1000.00 1.00 1.00 10.00 100.00 1000.00 10000.00 Size (SLOC) 100.00 100.00 Effort (LM ) Effort (LM) 10.00 10.00 1.00 1.00 1.00 10.00 100.00 1000.00 10000.00 100 1000 10000 100000 1000000 Size (FP) Size (SLOC) From George Stark, Paul Oman, “A comparison of parametric Software Estimation Models using real project data”, in press Executive Summit 25
  26. 26. IBM Rational Software Conference 2009 Improving software economics Empirical software cost estimation models for: Enterprise modernization, software maintenance New developments, new releases, early prototypes Packaged applications, systems engineering Time or Cost To Build = (Complexity) (Process) * (Team) * (Tools) Complexity Process Team Tools Volume of human Methods Skills/Experience Automation generated stuff Maturity Collaboration Process enactment - KSLOC, FPs, UCs Agility Motivation Quality/performance Precedence Scope Executive Summit 26
  27. 27. IBM Rational Software Conference 2009 Achieve continuous improvement by measuring cost against business outcomes Improve Improve Improve Increase Flexibility Automation Collaboration Process & Investment Value Implement tools Implement tools Implement Implement enterprise to integrate & processes iterative / adaptive architecture & reuse Business workflows & leverage skills processes web services Value Productivity: Productivity: Productivity: Productivity: 5-25% 15-35% 25-100% 50-200+% ECONOMIC IMPACTS Timeframe = Days Timeframe = Weeks Timeframe = Months Timeframe = Years Efficiency Control Implementation costs Individual Team Organization Business are per person per year Executive Summit 27
  28. 28. IBM Rational Software Conference 2009 Improve process to increase productivity by 25%-100% Implement iterative / adaptive processes Perceived Progress Against Plan Demo Test Releases Releases Business Test and Release Value Coding Requirements/Design True Technical Progress Late scrap and rework Efficiency Cost of Change Integration Implementation Maintenance Unit Test Implementation Integration Maintenance Unit Test Control Executive Summit 28
  29. 29. IBM Rational Software Conference 2009 Improving process and increasing flexibility Improve Process Reducing the significant uncertainties in quality and Increase Flexibility and performance WATERFALL DEVELOPMENT ITERATIVE DEVELOPMENT AND AGILE DELIVERY Late quality and performance insight Continuous quality and performance insight allows constrains flexibility to make tradeoffs flexibility in trading off cost, quality, and features Measured First indications of performance Demonstrated MTBF progress challenges and quality Indications of other quality challenges Software MTBF allocation Requirements/Design Baseline and freeze Requirements/Design negotiation Speculative quality requirements Release qualities that matter Unpredictable cost/schedule performance Quality progressions/digressions Late shoehorning of suboptimal changes Early requirement verification that impact quality and/or negotiation Executive Summit 29
  30. 30. Slide 29 A1 4) finally, on slide 4, i changed the heading that was iterative development to both iterative development and agile delivery. not sure if that matters but it matches my paper and danny may prefer agile delivery rather than iterative development. Author, 4/29/2009
  31. 31. IBM Rational Software Conference 2009 Measured Capability Improvement Framework (MCIF): A systematic approach to software excellence Determine right solution Phase Elicit and set business value objectives to deploy 1 Business objectives, contexts to operate within, and development approaches Phase Determine the solution components 2 Incremental improvement roadmap Do Financial Analysis Deploy solution Phase Accelerate and monitor solution adoption using Rational’s and measure 3 results preferred approach Deploy practices and tools Adopt proper usage model to maximize ROI Measure and adapt Phase 4 Review and communicate business results Compile business value and results Confirm results delivered and start on next project Conduct formal review with stakeholders Executive Summit 30
  32. 32. IBM Rational Software Conference 2009 Some final thoughts Software delivery is a discipline of software economics balancing risks and opportunities Process enactment and measurement are imperatives to achieving agility at scale Software delivery requires a platform that is architected for automation, collaboration and reporting Executive Summit 31
  33. 33. IBM Rational Software Conference 2009 © Copyright IBM Corporation 2009. All rights reserved. The information contained in these materials is provided for informational purposes only, and is provided AS IS without warranty of any kind, express or implied. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, these materials. Nothing contained in these materials is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software. References in these materials to IBM products, programs, or services do not imply that they will be available in all countries in which IBM operates. Product release dates and/or capabilities referenced in these materials may change at any time at IBM’s sole discretion based on market opportunities or other factors, and are not intended to be a commitment to future product or feature availability in any way. IBM, the IBM logo, Rational, the Rational logo, Telelogic, the Telelogic logo, and other IBM products and services are trademarks of the International Business Machines Corporation, in the United States, other countries or both. Other company, product, or service names may be trademarks or service marks of others. Executive Summit 32
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