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Does Agile address the 25 point Federal IT Reformation plan?
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Does Agile address the 25 point Federal IT Reformation plan?

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In this talk, Devin & Manoj will address what the biggest challenges are in adopting Agile in government. Devin and Manoj will discuss the challenges they have faced during their recent work with …

In this talk, Devin & Manoj will address what the biggest challenges are in adopting Agile in government. Devin and Manoj will discuss the challenges they have faced during their recent work with various government agencies. Some of the challenges discussed will be issues with culture, stakeholder participation, and budgeting/contracting process. They will also talk about possible solutions to these challenges.

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  • 1. Does Agile Address the 25 Point Federal IT Reformation Plan? Devin B. Hedge PMI WDC Manoj Vadakkan Devin@devinhedge.com manoj@vadakkan.org Agile.devinhedge.com PM in the AM manoj.vadakkan.org
  • 2. Who we are – Devin Hedge20+ years of experience in the IT Industry14 years of experience in the Agile CommunityCertified Scrum Master (CSM)Project Management Professional (PMP)Agile Community Leader PMI Agile Community if Practice Webinars (http://agile.vc.pmi.org/) DC Lean Coffee (http://www.coactivate.org/projects/dc-lean-coffee/)Speaker & Volunteer Agile Leadership Network (www.aplndc.com) Agile DC (www.agiledc.org) 2
  • 3. Who we are – Manoj Vadakkan20 years of experience in the IT Industry10 years of experience in Project managementCertified Scrum Master (CSM), Certified Scrum Professional (CSP)Project Management Professional (PMP)Agile Community Leader Agile Leadership Network (www.aplndc.com) Agile DC (www.agiledc.org)Speaker & Writer Articles on www.scrumalliance.org Speaker at Seattle Scrum Gathering, Amsterdam Scrum Gathering, MN Govt IT Symposium 3
  • 4. Three points we are examiningAlign the Acquisition process with the technology cycleDeliver working features in short intervalsAlign the Budget Process with technology cycle 4
  • 5. ALIGN THE ACQUISITIONPROCESS WITH THETECHNOLOGY CYCLE 5
  • 6. AcquisitionProblem Time lag between requirements definition and starting of delivery is too long & technology usually changes before the solution is deliveredFederal CIO’s Approach? Align the Acquisition Process with the Technology Cycle 6
  • 7. Typical Stage Gate Methodology 7
  • 8. Today’s DoD Life Cycle Initial Operational Milestone B Capability Planning Phase Build Phase 43 48 Analysis of Economic MS C Alternatives Analysis Development Test 14 29 40 5 91 Metrics calculated byLong Cycle-Time Driven by Processes OASD(NII) on 32 MajorDeveloped to Counter a Cold Automated InformationWar Adversary In Industrial Age Society Systems (MAIS)Source: "Acquisition of Information Technology Trends Within The Department of Defense", September 10, 2009, Don Johnson 8
  • 9. Changing Landscape of Government IT Whereas in 1970, IT accounted for approx 20% of weapon system functionality, by 2000 it accounted for as much as 80% Today it is reported IT can deliver 90% or more of functionality Software is a consistent and persistent thread through all DoD system acquisition programs … If most IT systems in Government started as only accounting systems with little direct capabilities tied to IT, what percentage of mission capabilities rely on them today?Source: "Acquisition of Information Technology Trends Within The Department of Defense", September 10, 2009, Don Johnson 9
  • 10. A Call for Change DoD Leadership Responsible for IT Hon John Grimes (Former ASD(NII)/DoD(CIO) “Hardware development processes ill-suited to IT acquisition” LTG Charles Croom (Former DISA Commander) “I would change the acquisition process in how the DoD buys IT in a New York minute….” LTG Jeff Sorenson (Army CIO/G-6) “How we can make it better…. Policy –Acquiring IT not like tanks” Defense Acquisition Performance Assessment (3/2006) The current system is focused on programs, not on improving and standardizing the processes of acquisition; it inhibits rather than promotes steady improvement in achieving program success GAO Assessment on “Information Technology: DOD’s Acquisition Policies and Guidance Need To Incorporate Additional Best Practices And Controls” (July/2004) “As you know, the way in which DOD has historically acquired information technology (IT) systems has been cited as a root cause of these systems failing to deliver promised capabilities and benefits on time and within budget…”Source: "Acquisition of Information Technology Trends Within The Department of Defense", September 10, 2009, Don Johnson 10
  • 11. Proposed New DoD IT Acquisition ProcessSource: "Acquisition of Information Technology Trends Within The Department of Defense", September 10, 2009, Don Johnson 11
  • 12. An Even More “Agile” Acquisition ProcessCombined Acquisition Lifecycle IOC Release 2 Release 3 Release 4 Maintenance JAD It 1 It 2 It 3 It 4 It 5 It 6 It 7 It 8 It 9 It 10 It 11 It 12 12
  • 13. Flipping the Iron Triangle in Agile Contracts The plan creates The Vision Creates cost/schedule feature estimates estimatesFixed Features Cost Date Value- Driven ($) Plan- DrivenEstimated Cost Date FeaturesSource: “Inverting the Iron Triangle” by Mike Cottmeyer (http://www.leadingagile.com/2008/04/inverting-the-iron-triangle/ )and “Agile Contracts” by Jesse Fewell 13
  • 14. DELIVER WORKINGFEATURES IN SHORTINTERVALS 14
  • 15. Deliver working features in short intervalsProblem Delivering working functionality after several year and lateFederal CIO’s Approach? Deliver new working functionality to users at least every 12 months. Delivering functionality in small chunks frequently Capturing and incorporating feedback during that process 15
  • 16. How is it working today? 16
  • 17. How is it working today?Our projects tend to be multiple years longOur projects tend to not to deliver features for years In addition to be being late and over budgetOur project tend to spend many months upfront to get the“requirements” and “grand design” 17
  • 18. What can we do?What can we do to start delivering early? Start early Deliver in small chunksStart early? If we want to start early, we can’t wait for all the detail requirements written downDeliver in small chunks? If we want to deliver in small chunks, we need to prioritize the chunks 18
  • 19. How can weScrum Overview features in short intervals? deliver workingStart with the high- level view of the requirements Start producing Elaborate a subset of Gather feedback from Release to Production the features the customer 19
  • 20. Deliver working features in short intervalsPractices suggested in the 25 point Implementation plan Deliver new working functionality to users at least every 12 months. Delivering capabilities in small chunks frequently Capturing and incorporating feedback during that process 20
  • 21. ALIGN THE BUDGET PROCESSWITH TECHNOLOGY CYCLE 21
  • 22. Align the Budget Process with technology cycleProblem The rapid pace of technological change does not match well with the Federal government’s budget formulation and execution processFederal CIO’s Approach? Align the Budget Process with the Technology Cycle 22
  • 23. Recommendations from the Federal CIOWork with Congress to develop IT budget models that align withmodular developmentDevelop supporting materials and guidance for flexible IT budgetmodelsWork with Congress to scale flexible IT budget models more broadlyWork with Congress to consolidate commodity IT spending underAgency CIO 23
  • 24. Look Familiar?Different Sources of Projects OMB - 300 Federal CIO Initiative CIO Initiative LOB needs Legislative • The Budget cycle is built based on horizon of predictability • The Budget categories reinforce long stage-gated development cycles 24
  • 25. Agile Budgeting Is EasierBecause Scope is a Negotiation or Highest Value and Cost/Scheduleare fixed… Budgeting is just about how many resources will be funded for the current fiscal year Most Enhancement/Maintenance contracts are already funded this way For Net New Capabilities Development or System Conversions, budget can be fixed and incrementally funded each progress iteration When the Initial Operational Capability (IOC) is achieved, go/no go for additional funding can be used to cut off spending on “frills” and that 40% of functions that are RARELY or NEVER USED.Earned Value Is REAL and Tangible: Every iteration can be valuatedbased on mission capability delivered, and either it was delivered or itwasn’t. Period. 25
  • 26. Effect of Agile Budgeting on the IT Spending Cost Curve2.5 21.5 Development Enhancements 1 Maintenance Log. (Enhancements)0.5 0 BY BY+1 BY+2 BY+3-0.5 26
  • 27. Beyond Budgeting Principles Enabling a Continuous Adaptive ProcessBeyond Budgeting: How Managers Can Break Free from the Annual Performance Trap by Jeremy Hope and Robin Frasier 27
  • 28. An Even More “Agile” Acquisition ProcessCombined Acquisition Lifecycle IOC Release 2 Release 3 Release 4 Maintenance JAD It 1 It 2 It 3 It 4 It 5 It 6 It 7 It 8 It 9 It 10 It 11 It 12 28
  • 29. Challenges Implementing Agile BudgetingContracts, Contracts, ContractsLegislation, Regulation, Policy and ProceduresCulture of “use it or lose it” 29
  • 30. What’s RequiredCongressional Support for Acquisition Regulation ChangesEducation of the Entire Federal Contracting Officer Labor PoolEducation of the Entire Federal Contractor CommunityChanges to the Mission Needs Identification and RequirementsDevelopment process And by extension… changes to the budgeting lifecycle and OMB planning guidance 30
  • 31. QUESTIONS?Devin B. Hedge Manoj VadakkanDevin@devinhedge.com manoj@vadakkan.orgAgile.devinhedge.com manoj.vadakkan.org 31
  • 32. THANK YOU!Devin B. Hedge Manoj VadakkanDevin@devinhedge.com manoj@vadakkan.orgAgile.devinhedge.com manoj.vadakkan.org 32