Scrum e a Crise Mundial

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Palestra sobre as vantagens do uso do Framework Scrum para gestão de projetos em momentos de crise. Apresentado no Scrum Gathering Munich 2009

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Scrum e a Crise Mundial

  1. 1. and the World Crisis Rafael Sabbagh Marcos Garrido Scrum Why Scrum is the best choice for projects in times of crisis v 2.0
  2. 2. Speakers <ul><li>Rafael Sabbagh </li></ul><ul><ul><li>Certified Scrum Practitioner (CSP) / ScrumMaster </li></ul></ul><ul><ul><li>Seven years of experience in IT Project Management and Development Team Leadership </li></ul></ul><ul><ul><li>Computer Engineer - PUC-Rio </li></ul></ul><ul><ul><li>Master Student in Administration - PUC-Rio </li></ul></ul><ul><ul><li>MBA - PUC-Rio </li></ul></ul><ul><li>Marcos Garrido </li></ul><ul><ul><li>Certified Scrum Product Owner (CSPO) </li></ul></ul><ul><ul><li>Six years of experience in IT Project Management and Development Team Leadership </li></ul></ul><ul><ul><li>Information Technologist - PUC-Rio </li></ul></ul><ul><ul><li>Master Student in Administration - PUC-Rio </li></ul></ul><ul><ul><li>MBA - PUC-Rio </li></ul></ul>
  3. 3. Part I World Crisis
  4. 4. The world just faced a large crisis... U.S.-aided banks are offering less credit ADDICTED TO RISK
  5. 5. ...and it’s still healing from it! Who believes that we’re safe for now? … and who believes that there’s more coming?
  6. 6. World Crisis of the last 80 years 1929 Wall Street Crash 1944 WWII 1971 Oil 1973 2 nd Oil 1982 Mexican Debt 1994 Tequila Effect 1997 Asian Tigers 1998 Russian Financial 2000 Dot Com 2001 9/11 2002 Tango Effect 2007 Subprime ! 2010 China Credit Bubble More than 50% in the last 15 years! Come on! Another one?!
  7. 7. We’ve got to be prepared!
  8. 8. The crisis scenario is hard! <ul><li>Demand for projects shrinking </li></ul><ul><li>Investments in technology diminishing </li></ul><ul><li>Longer decision making process </li></ul><ul><li>Limited access to credit </li></ul><ul><li>Financial problems with most clients </li></ul><ul><li>Resource rationalization </li></ul><ul><li>Margin pressure </li></ul><ul><li>Environment of uncertainty </li></ul><ul><li>Constant changes </li></ul>
  9. 9. Part II How to survive?
  10. 10. How to survive? The market demands that organizations change the way they work in order to survive turbulent times. A true PARADIGM SHIFT
  11. 11. How to survive? This new way of work shall: <ul><li>Work well on rapidly changing environments , allowing frequent replanning </li></ul><ul><li>Focus on maximizing the client's Return On Investment (ROI) </li></ul><ul><li>Help reduce time-to-production or time-to-market </li></ul>
  12. 12. How to survive? This new way of work shall: <ul><li>Avoid wasted effort/time with subproducts (e.g. docs.) and features that will never be used </li></ul><ul><li>Always deliver value to the client, even if the project needs to be halted </li></ul><ul><li>increase the communication and feedback between the project's stakeholders, so people will know what needs to be done and what's being done </li></ul>
  13. 13. How to survive? What framework for project development focuses on all those issues ? Scrum
  14. 14. How to survive? Scrum is the best choice for projects in times of crisis! Also, Scrum helps to protect organizations from crisis to come!
  15. 15. Part III Why Scrum?
  16. 16. Why Scrum? We’ll offer several arguments so that people can decide or influence others to opt for Scrum in their organizations .
  17. 17. NO waste ! Non-agile methodologies defend that a big amount of documents must be generated so that a project may succeed Project Charter Preliminary Scope Statement Project Management Plan Change Requests Progress Report Performance Report Acceptance Report Project Closure Report Detailed Schedule Earned Value Analysis Lessons Learned Document Sequence Diagrams Components Diagram Collaboration Diagram State Diagrams Use Cases Diagram Packages Diagram Activities Diagram ...what else? Does the cost of production and maintenance of those documents pay? How many of those documents will be kept current ? How many will be really useful for the project development?
  18. 18. NO waste ! <ul><li>35% of requirements change </li></ul><ul><li>65% of functionalities are never or rarely used </li></ul>About 50% of a typical project’s time (and money) is spent on requisites, architecture and specifications Requirement Analysis Specification / Architecture Implementation Tests Maintenance all that is done before building any functionality ! and it gets worse...
  19. 19. NO waste ! In the current world scenario, is such waste of time and effort acceptable?
  20. 20. NO waste ! After all, the objective of a project is the product - not the documentation! With Scrum, only the documentation strictly sufficient and necessary must be produced for the project That is, produce only what will be used.
  21. 21. NO waste ! On Scrum, the Product Backlog must keep up with the client needs. And those change on the course of the project . Therefore, whatever is delivered has a better chance of actually being used by the client. The functionalities that’ll be implemented are the ones of most importance for the client before the beginning of every sprint.
  22. 22. Better value first! With waterfall , the client only gets value at the end of the project . THE release
  23. 23. Better value first! With Scrum , the Product Owner must constantly update and prioritize the Product Backlog by the items with better value for the client. Therefore, Scrum assures that items of most value get delivered first, generating ROI frequently for the client.
  24. 24. Better value first! <ul><li>In times of crisis , organizations must stay competitive . Prioritizing the Product Backlog based on value allows the organization to: </li></ul><ul><ul><li>deliver results to its clients faster than the other players </li></ul></ul><ul><ul><li>put in production functionalities that add better value to their businesses more quickly </li></ul></ul><ul><ul><li>launch products and new versions more frequently on the market, so that they keep up with the inevitable market changes </li></ul></ul>
  25. 25. May changes come! Large and frequent transformations happen in times of crisis Changes in legislation and regulation Changes in business rules New business opportunities Important players leave the market Big losses and budget becomes scarce Mergers and aquisitions / government interventions
  26. 26. May changes come! How do traditional methodologies deal with changes ? Change is undesirable! Change is risky! Change is expensive! Change must be negotiated! As almost all the planning is made at the beginning of the project, there’s very little room for changes !
  27. 27. May changes come! How do traditional methodologies deal with changes ? “ The limited scope contract will protect us! The client may want to change it all!” “ Every change must be negotiated with the client! Its impact must be quantified!” “ Every change must be revised , approved , planned , documented and managed !”
  28. 28. May changes come! Change Management is a source of stress on projects that use non-agile methodologies. Stress on the long-term relationship with the client . Daily stress on the project team.
  29. 29. May changes come! How Scrum deals with change ? Scrum maintains that change is a natural part of the development process Agile manifesto: “ respond to changes over following a plan” Changes are always reflected in the Product Backlog
  30. 30. May changes come! How Scrum deals with change ? Client’s new requests can be introduced on the product by the following sprint ! Such quick response to change becomes a great competitive advantage … ... making it possible to turn a crisis into an opportunity !
  31. 31. Parcels or partners? The client perceives the project as a big black box , which content will be revealed solely by the end of the process. On a typical waterfall project, when is the client encouraged to participate? Requirement Analysis Specification / Architecture Implementation Maintenance Tests Acceptance Tests
  32. 32. Parcels or partners? Therefore, it's unlikely that what the client asked for in the beginning of the project will fulfill his needs in the end.
  33. 33. Parcels or partners? How Scrum deals with communication ? The Product Owner is always in touch with client to identify his needs and update the Product Backlog. The client frequently gets new versions … ... and can give feedback more quickly to the team through the Product Owner .
  34. 34. Parcels or partners? How Scrum deals with communication ? That way, the client feels involved with the whole process ... ... sharing the responsibility over the project with the team ... ... increasingly trusting the team and the process itself .
  35. 35. Parcels or partners? The relationship with the client ceases being merely commercial and instead fosters : Partnership Complicity Satisfaction Fidelity A long-term relationship is then developed with the client, which can often overcome strong periods of crisis .
  36. 36. Parcels or partners? With non-agile methodologies, how is project visibility promoted to its stakeholders? Mainly through documentation , which... ... takes a lot of work to be produced ... is not efficient ...is hard to update ...ends up being dismissed Project Charter Prelminary Scope Statement Project Management Plan Package Diagram Progress Report Performance Reports Acceptance Report Project Closure Report Activity Diagrams Earned Value Analysis Lessons Learned Document Sequence Diagrams Component Diagram Collaboration Diagram State Diagrams Use Cases Diagram Change Requests Detailed Schedule
  37. 37. Parcels or partners? With Scrum , project visibility is constantly promoted ! Daily meetings Taskboard Working in a collocated environment Client involvement Burndown charts Frequent releases Review meeting Retros- pective ...are some examples.
  38. 38. Parcels or partners? Keeping communications open between the project’s stakeholders is the best way to assure that everyone knows what needs to be done and what’s being done . That leads to an increase of productivity , which is essential to surviving the new reality .
  39. 39. What if the project gets suspended ? Requirement Analysis Specification / Architecture Implementation Tests Maintenance In a non-agile project, what will be delivered to the client if the project gets suspended... ...here? ...or here? ...or even here?
  40. 40. What if the project gets suspended ? A project with Scrum works differently... VALUE is delivered in every iteration!
  41. 41. What if the project gets suspended ? A project with Scrum always produces an increment on the product which is potentially deliverable at the end of every sprint. As such, if the project gets suspended at any moment, the client may utilize what has been generated on previous sprints, minimizing his risks . In a non-agile project, chances are the client won’t be getting any return whatsoever on the investments made .
  42. 42. What if the project gets suspended ? On an environment of uncertainties , minimizing the client’s risks becomes an important competitive advantage .
  43. 43. What if members leave the team? With waterfall , roles inside the projects are very well defined, with high specialization . What happens in waterfall projects? If a member leaves the team, no one will be able to do his job . Periods of crisis lead to high turnover rates. Teams frequently change. Therefore, the whole project’s success is threatened !
  44. 44. What if members leave the team? The team is cross-functional . Responsibility over delivery belongs to the whole team. And what happens in projects with Scrum ? Although there is a natural specialization, people are stimulated to develop and utilize their secondary abilities ... ... and, in general, will do their best to compensate for the lack of team members. So, even with changes, the team can keep delivering .
  45. 45. Part IV Conclusions
  46. 46. Conclusions In this presentation, we showed that Scrum is the best choice for projects, specially in turbulent times .
  47. 47. Conclusions We offered several arguments so that people can decide or influence others to opt for Scrum in their organizations .
  48. 48. Conclusions Organizations which use Scrum are closer to its clients , focused on results , more compact , objective and transparent .
  49. 49. Conclusions Therefore these organizations will be more prepared to the new world reality, ahead of competition .
  50. 50. Part V Bibliography
  51. 51. Bibliography
  52. 52. Contact us http://scrumability.net Rafael Sabbagh [email_address] Marcos Garrido [email_address]

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