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Special Report

 Four Myths of Software Development
            Management
 How You Can Use Proven Methods to Complete Projects
On-Time, Within Budget AND Dramatically Improve Quality

                  By Terry A. Ehrhard
Four Myths of Software Development
                      Management
Today’s management of software development is constantly influenced on the
approach they should take with their projects. One moment it’s the Capability
Maturity Model (CMM), then its Rapid Development (RAD), or perhaps it’s the
Rational Unified Process (RUP), but all too many times its often done like Nike
says…“Just Do It”. However, project management does not have to be this
complicated or this simplified to be effective. Often it is a matter of
understanding the myths behind software project management and how critical it
is to long-term success to understand these myths.

Myth #1: Following a development process takes longer to finish a project.

Many studies have shown that following a strong process will improve
productivity and quality. For instance, a study done on companies using
Software Engineering Institute’s (SEI) Capability Maturity Model (CMM) found
that the companies working at the higher levels of the model had three times the
productivity than those at Level 1.

Companies such as Boeing have embraced CMM and their studies are quite
impressive.

   •   project estimates - improved by 87%
   •   software quality - improved by 130%
   •   productivity - improved by 62%

These techniques have been around for over 15 years and countless studies
have proved their positive effects.

So, how do you address this myth?

   •   Take steps to constantly improve the process. The best way to begin is to
       identify what works and then focus on improving the steps of your process
       requiring improvement. Each project should incorporate a final step to
       reflect on the project activities to identify what steps worked and what
       could be improved. Identifying the problem areas will determine where to
       focus your efforts on improving your process.

   •   Use a proven methodology to guide you in defining a process. Each
       environment is different and not every method works for everyone, but
       using perspectives from proven methodologies such as CMM, RUP, or
       others, will prevent you from reinventing the wheel and put you on the fast
       track toward streamlining your project activities.

Could your company benefit from results such as Boeing?


                                   Page 2 of 5
Myth #2: Defects are found at the end of the project.

Studies have shown that defects can be 100 times more expensive to correct in
the final phases of a project than in the requirements phase and over 1000 times
more expensive when caught after the product is released. For example,
studies done at the Department of Defense, NASA, Boeing and others
determined that, on average, defects found at the requirements phase cost $50
but those found after release of the product cost $10,000! At one company I
determined that over $30 million could have been saved in a two-year period
had they caught their defects at the requirement stage.

So, how do you address this myth?
   • Gather detailed user requirements. Really get into the needs and wants of
      the user. Most software projects miss their mark because analysis was
      cut short before a complete understanding of the users was determined.
   • Create a conceptual system design. This document will provide enough
      information to describe the details of how the system works from a user
      perspective but not so much detail that the user gets lost in technical
      jargon.
   • Create detailed designs before any coding begins. This will define exactly
      what each module will do and include such things as screen
      layout/functionality, inputs, outputs, methods, properties, events, etc. This
      will alleviate any doubt as to exactly what each module will do.
   • Involve quality assurance (QA) personnel at the beginning of the project.
      It is a common misconception that QA should only be involved at the end
      of the project. Instead, consider having QA involved throughout the
      project verifying the design documents match the business requirements,
      verifying the prototypes match business requirements, and performing
      functional tests on components as they are created instead of waiting until
      system test.

      Likewise, QA should be finding a required number of defects in each step
      of the process.
      Product Phase      Activity                              Defects/KLOC*   % of Total
      Requirements       Product Requirements of Document      2.5             5.0
      Definition         Product Objectives Document           3.5             7.0
                         Product Specifications Document       8.5             17.0
      Design             Conceptual System Design Inspection   5.0             10.0
                         Detail Design Inspection              7.5             15.0
      Code               Code Inspection                       6.4             12.8
      Development Test   Unit Test Plan                        0.5             1.0
                         Unit Test                             4.5             9.0
                         Function Test Plan                    0.5             1.0
                         Function Test                         4.5             9.0
      Independent Test   Component Test Plan                   0.5             1.0
                         Component Test                        3.5             7.0



                                        Page 3 of 5
System Test Plan                             0.3    0.6
                        System Test                                  2.0    4.0
                        Regression Test Plan                         --     --
                        Regression Test                              0.2    0.4
       After Delivery   Customer-reported problems                   .01    .02
                                                            Totals   50.0   100.0
                        * Defects per Thousands of Lines of Code


       This means that if you are not finding the number of defects at each step
       in the process, then those defects will show up later in the process…at
       much a higher cost to fix.

Are you loosing money because you are finding defects late in the process?

Myth #3: User involvement only occurs at the beginning of a project.

To this day, many believe user involvement only happens at the beginning and
end of a project. However, a truly successful project involves users in virtually all
phases of the process.

In an extensive five-year CHAOS study by the renowned Standish Group, the
results discovered the number one contributor to project success was user
involvement. By no surprise, the same study found that the major cause of
project failure was also user involvement. Sometimes a project can be on time
and within budget and still fail because the solution did not satisfy the user’s
needs.

Are a large number of your projects being rejected due to user dissatisfaction?

Myth #4: Project management is a waste of money.

In a study done at Stanford, more than 70 percent of the companies surveyed
regularly missed scheduled deadlines and on average took an additional 4
months to complete.

In a similar study, the Standish Group clearly showed that projects are likely to
be less challenged and more successful when lead by a competent and
experienced project manager.

With a GDP of IT surpassing $3 Trillion worldwide, with United States spending
near $1 trillion, there is considerable money to be saved.

Some of the qualities in a good manager that can save you money are:

   •   Maintaining accountability. Team members who are accountable to the
       team and management are more likely to perform better than those who
       do not.


                                       Page 4 of 5
•   Providing direction. A good manager keeps a project on track and
       traveling in the right direction. Any deviations are quickly pulled back on
       track thus averting costly mistakes. This involves having a solid plan and
       sticking to the plan. As I like to say, “An orchestra without a conductor is
       simply a bunch of musicians making noise”.

   •   Increase team coherence. A team that works well together performs
       better. A good manager takes the time to build morale and team cohesion.

   •   Managers not technical (or too technical) in areas they manage. All too
       frequently, managers fall into the category of being either not technical or
       too technical. This causes the project to be misguided because the
       manager lacks the expertise to lead in the right direction, or, upon being
       too technical, cannot break free from the technical interests to devote to
       leading the team from a management perspective. A manager with a
       good blend of people skills and technical expertise serves as a good
       foundation for success.

Are you wasting money by not having a seasoned project manager lead your
projects?

Project management has proven repeatedly saving millions of dollars based on
my experience and research from government and private industries in software
development ranging from core businesses as warehousing, inventory control,
accounting, change management, automobile, order entry, insurance/annuities,
retail finance, title/escrow, and overall retail/business

About the Author:

                Terry Ehrhard
                Sr. IT Project Manager
                An MBA with engaging and enthusiastic vigor for bridging the gap
                between Technology and Business. Leads strategically and
                tactically multiple teams concurrently developing “cradle to grave”
                home-grown enterprise-wide web-based systems in fast-paced
                ever-changing environments.
http://www.linkedin.com/in/terryehrhard

Note: This Special Report is not copyrighted. Please feel free to make copies
and distribute as you would like.




                                    Page 5 of 5

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Special Report Four Myths Of Software Development Management

  • 1. Special Report Four Myths of Software Development Management How You Can Use Proven Methods to Complete Projects On-Time, Within Budget AND Dramatically Improve Quality By Terry A. Ehrhard
  • 2. Four Myths of Software Development Management Today’s management of software development is constantly influenced on the approach they should take with their projects. One moment it’s the Capability Maturity Model (CMM), then its Rapid Development (RAD), or perhaps it’s the Rational Unified Process (RUP), but all too many times its often done like Nike says…“Just Do It”. However, project management does not have to be this complicated or this simplified to be effective. Often it is a matter of understanding the myths behind software project management and how critical it is to long-term success to understand these myths. Myth #1: Following a development process takes longer to finish a project. Many studies have shown that following a strong process will improve productivity and quality. For instance, a study done on companies using Software Engineering Institute’s (SEI) Capability Maturity Model (CMM) found that the companies working at the higher levels of the model had three times the productivity than those at Level 1. Companies such as Boeing have embraced CMM and their studies are quite impressive. • project estimates - improved by 87% • software quality - improved by 130% • productivity - improved by 62% These techniques have been around for over 15 years and countless studies have proved their positive effects. So, how do you address this myth? • Take steps to constantly improve the process. The best way to begin is to identify what works and then focus on improving the steps of your process requiring improvement. Each project should incorporate a final step to reflect on the project activities to identify what steps worked and what could be improved. Identifying the problem areas will determine where to focus your efforts on improving your process. • Use a proven methodology to guide you in defining a process. Each environment is different and not every method works for everyone, but using perspectives from proven methodologies such as CMM, RUP, or others, will prevent you from reinventing the wheel and put you on the fast track toward streamlining your project activities. Could your company benefit from results such as Boeing? Page 2 of 5
  • 3. Myth #2: Defects are found at the end of the project. Studies have shown that defects can be 100 times more expensive to correct in the final phases of a project than in the requirements phase and over 1000 times more expensive when caught after the product is released. For example, studies done at the Department of Defense, NASA, Boeing and others determined that, on average, defects found at the requirements phase cost $50 but those found after release of the product cost $10,000! At one company I determined that over $30 million could have been saved in a two-year period had they caught their defects at the requirement stage. So, how do you address this myth? • Gather detailed user requirements. Really get into the needs and wants of the user. Most software projects miss their mark because analysis was cut short before a complete understanding of the users was determined. • Create a conceptual system design. This document will provide enough information to describe the details of how the system works from a user perspective but not so much detail that the user gets lost in technical jargon. • Create detailed designs before any coding begins. This will define exactly what each module will do and include such things as screen layout/functionality, inputs, outputs, methods, properties, events, etc. This will alleviate any doubt as to exactly what each module will do. • Involve quality assurance (QA) personnel at the beginning of the project. It is a common misconception that QA should only be involved at the end of the project. Instead, consider having QA involved throughout the project verifying the design documents match the business requirements, verifying the prototypes match business requirements, and performing functional tests on components as they are created instead of waiting until system test. Likewise, QA should be finding a required number of defects in each step of the process. Product Phase Activity Defects/KLOC* % of Total Requirements Product Requirements of Document 2.5 5.0 Definition Product Objectives Document 3.5 7.0 Product Specifications Document 8.5 17.0 Design Conceptual System Design Inspection 5.0 10.0 Detail Design Inspection 7.5 15.0 Code Code Inspection 6.4 12.8 Development Test Unit Test Plan 0.5 1.0 Unit Test 4.5 9.0 Function Test Plan 0.5 1.0 Function Test 4.5 9.0 Independent Test Component Test Plan 0.5 1.0 Component Test 3.5 7.0 Page 3 of 5
  • 4. System Test Plan 0.3 0.6 System Test 2.0 4.0 Regression Test Plan -- -- Regression Test 0.2 0.4 After Delivery Customer-reported problems .01 .02 Totals 50.0 100.0 * Defects per Thousands of Lines of Code This means that if you are not finding the number of defects at each step in the process, then those defects will show up later in the process…at much a higher cost to fix. Are you loosing money because you are finding defects late in the process? Myth #3: User involvement only occurs at the beginning of a project. To this day, many believe user involvement only happens at the beginning and end of a project. However, a truly successful project involves users in virtually all phases of the process. In an extensive five-year CHAOS study by the renowned Standish Group, the results discovered the number one contributor to project success was user involvement. By no surprise, the same study found that the major cause of project failure was also user involvement. Sometimes a project can be on time and within budget and still fail because the solution did not satisfy the user’s needs. Are a large number of your projects being rejected due to user dissatisfaction? Myth #4: Project management is a waste of money. In a study done at Stanford, more than 70 percent of the companies surveyed regularly missed scheduled deadlines and on average took an additional 4 months to complete. In a similar study, the Standish Group clearly showed that projects are likely to be less challenged and more successful when lead by a competent and experienced project manager. With a GDP of IT surpassing $3 Trillion worldwide, with United States spending near $1 trillion, there is considerable money to be saved. Some of the qualities in a good manager that can save you money are: • Maintaining accountability. Team members who are accountable to the team and management are more likely to perform better than those who do not. Page 4 of 5
  • 5. Providing direction. A good manager keeps a project on track and traveling in the right direction. Any deviations are quickly pulled back on track thus averting costly mistakes. This involves having a solid plan and sticking to the plan. As I like to say, “An orchestra without a conductor is simply a bunch of musicians making noise”. • Increase team coherence. A team that works well together performs better. A good manager takes the time to build morale and team cohesion. • Managers not technical (or too technical) in areas they manage. All too frequently, managers fall into the category of being either not technical or too technical. This causes the project to be misguided because the manager lacks the expertise to lead in the right direction, or, upon being too technical, cannot break free from the technical interests to devote to leading the team from a management perspective. A manager with a good blend of people skills and technical expertise serves as a good foundation for success. Are you wasting money by not having a seasoned project manager lead your projects? Project management has proven repeatedly saving millions of dollars based on my experience and research from government and private industries in software development ranging from core businesses as warehousing, inventory control, accounting, change management, automobile, order entry, insurance/annuities, retail finance, title/escrow, and overall retail/business About the Author: Terry Ehrhard Sr. IT Project Manager An MBA with engaging and enthusiastic vigor for bridging the gap between Technology and Business. Leads strategically and tactically multiple teams concurrently developing “cradle to grave” home-grown enterprise-wide web-based systems in fast-paced ever-changing environments. http://www.linkedin.com/in/terryehrhard Note: This Special Report is not copyrighted. Please feel free to make copies and distribute as you would like. Page 5 of 5