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Adopting Agile in the Organization
                                               Al Goerner
                                                Agile Edge - UK


                                                    28 October 2008




Bottom Line




An Agile team                              in a non-agile
                                            environment

                     will not
                  long survive.


                Development Agility
                 & Business Agility
                 go Hand-in-Hand.



                          ©2008 Valtech Technologies, Inc.
                                All Rights Reserved.
                                                                      1
It Starts with Trust

... or the Lack Thereof.

   ”Trust Us!”
   says the Agilist.

   ”Trust What?
   I am the one
   hanging out here!”
   says the Partner.




                           What Your Partner is
                           Thinking when you say …
                           “Everything you think you know is wrong.”
                               “What arrogance! You’ve got 3-6 months, max,
                                to impress me.”

                           “Leave us alone. We’ll get the job done.”
                               “I don’t have the time to baby-sit you, but I doubt
                               that I can afford to leave you alone.”

                           “We need 1 of your top people, full-time.”
                               “I need him/her more than you do. You’ll get
                                them in their spare-time.”

                           “We don’t need no stinking project manager.”
                               “But, that’s just exactly what you are gonna get!”

                           “We’re Agile now. We don’t give dates or
                              do reports.”
                               “That’s what YOU think!”




                                ©2008 Valtech Technologies, Inc.
                                      All Rights Reserved.
                                                                                     2
Legitimate Concerns of …

                                              Executive
  Business Customer                          Management
   Usable solutions to real
                                                Line
   problems.                                 Management
   Responsiveness to
                                               Business
   changing needs and
                                               Customer
   understanding.
   Predictable, reliable
                                                 Team
   results.
   Schedule reliability
   amidst dependencies.
                                               Individual




Make the Case
    with the Business Customer
  Agility is for the Business Customer’s benefit!
     To deliver business value …
      • Solving a real problem …
      • Faster …
                                              Benefit               Burden
      • With more flexibility …
      • At higher quality …
      • Reliably and sustainably …
      • At the same or lower cost.       Remember the Principle of Benefit & Burden!


     If your whole message about Agile development is about
     tactical development practices, then the best that you can
     expect from the business customer is benign disregard.




                                     ©2008 Valtech Technologies, Inc.
                                           All Rights Reserved.
                                                                                       3
Requirements – the Culture Shift

  Requirements are not a contract!
     “Perfect is the enemy of Good Enough.”
       • Perfect requirements take too long.
         That is not our objective.
       • There are some requirements no one
         knows at the beginning of a project.
     The business needs to change its mind as it clarifies its vision.

  Requirements are more
          exploration than specification!
     Invest the time to visualize, clarify, and iterate.
     Requirements analysis is just another kind of risk management.




Estimates – the Culture Shift

  Understand the accuracy of estimates!            Project Cost                                                                      Project


     Know the difference between                                                                                                    Schedule
                                                    (effort & size)


                                                        4X                                                                            1.6X

     estimates and commitments.                         2X                                                                            1.25X

     Insist on an estimation discipline,                              No-Fidelity
                                                                                                                                      1.15X
                                                     1.5X


     and train to that discipline.                                                  Lo-Fidelity
                                                    1.05X                                                                             1.05X
                                                     1.0X                                                                             1.0X
                                                                                                    Hi-Fidelity
                                                    0.95X                                                                             0.95X


     Improve estimation accuracy                    0.67X                                                                             0.85X

                                                     0.5X                                                                             0.8X

     through feedback about actuals.
                                                    0.25X                                                                             0.6X

                                                            Project                    Inception                  Elaboration Construction


  Expect re-forecasts!
                                                           Proposal                      Phase                       Phase        Phase
                                                                                       Assessment                  Assessment   Assessment




     When well done, commitments are
     pulled in more often than they are
     pushed out.
     Insist on knowing when the reforecast
     is due and its stability.




                                       ©2008 Valtech Technologies, Inc.
                                             All Rights Reserved.
                                                                                                                                               4
Legitimate Concerns of …

                                                       Executive
  Line Management                                     Management
   What resources to commit
                                                         Line
   to which project, when.                            Management
   Balancing too many
                                                            Business
   priorities with too few
                                                            Customer
   resources.
   How to get more with
                                                                  Team
   less, without breaking
   your people.
   How to serve without
   being enslaved.
                                                            Individual




Accountability – the Culture Shift
  Concerns of Management:
     Progress:                       100.0
                                                                                      90
                                      90.0
      • Is this project on-time?                                               81

                                      80.0
        Is it healthy?                                                    69
                                                                     66
                                      70.0                      63
                                                           61

     Quality:                         60.0         52                51
                                                            48 48 50
                                                47    46 47
      • Is this release likely to be 50.0    43    43
                                                40
                                             38
                                      40.0
        fit-for-release when it is                                                         33
                                                                                                29
                                                   40 42
                                             40
                                             37 38 37 36 37          38
                                      30.0                                                           24
        ready-for-release?                      36                36
                                                         33 34                                            20
                                                            30 31    28                                        15
                                      20.0                     26 27
                                                                                                                    11
     Diagnostic:                                 6         5.25 5.75 4.75 5.25 4.75                                      6
                                      10.0                                       3.75
                                             3    2.5                                                                        1
                                             0   00         0    0    0    0    00
      • What can we do to get this 0.0                                     4
                                                                3.5 3.5
                                                 3          3
                                                     1.5
                                             1                                 0.5    0
        project back on track?               1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19



  Measure performance and manage by it!
     Only metrics – the right metrics – allow you to know
     the answers to these questions.
       • When? Who? How much? Why? What if?




                                         ©2008 Valtech Technologies, Inc.
                                               All Rights Reserved.
                                                                                                                                 5
Responsibilities – the Culture Shift

  Only cross-functional teams get projects done!
     Handoffs are a productivity and quality killer.
     A matrix is the natural structure
                    of an effective organization.
     Share your people so that others will share theirs.
     All stars shine in the night sky.
                  … They don’t have to dim others.

  Beware of staff fractionalization!
     The Rule of 10%: for every project assigned, you lose 10% of
     that person’s productivity to overhead and context switching.
     Consider the Stable Team pattern: it is more effective to
     assign projects to teams than teams to projects.




Planning – the Culture Shift

  The Plan is not the Product!
     Keep your eye on the prize.                        Prefer Checklists to Plans!
     “The plan is worthless.                            Don’t tell me what you plan to do;
      The planning is priceless.” - Eisenhower            tell me what you have done!
     Planning is risk management, too!

  Planning may proceed forward or backward!

              Acme Project Reality Machine
                                                                      [Depth]

                                                                      [Risk]

                 Function      Resource      Schedule

          The 3+2 Dimensions of the “Triple Constraint”




                                              ©2008 Valtech Technologies, Inc.
                                                    All Rights Reserved.
                                                                                             6
Legitimate Concerns of …

                                               Executive
  Executive Management                        Management
   How to allocate budget to
                                                 Line
   maximize ROI.                              Management
   How to advance company
                                                Business
   strategic goals.
                                                Customer
   How to stay on the right
   side of the law and the
                                                   Team
   marketplace.



                                                Individual




Governance – the Culture Shift

  Governance should be aligned
  to the development process,
  not vice versa!
     Project Governance
     Financial Governance
     Security Governance
     Legal, Risk, & Compliance Governance
     Technology & Strategic Architecture Governance

  The right question,
           asked at the right time,
                       answered and recorded.
                 Audits, after the fact, add no value.




                                       ©2008 Valtech Technologies, Inc.
                                             All Rights Reserved.
                                                                          7
6 Missions of a Project Mgmt Office

     Broaden and balance your PMO!

        Enabling               Establishing                    Empowering
        Change                  Behaviors                       Planning

                                Coaching &                         Project
        Evangelism
                                 Mentoring                        Monitoring
        Energy for Change
                                Shaping Behaviors               Measuring Outcomes




                                  Owning                         Portfolio
          Training               Practices                      Management
       Vocabulary for Change
                                Certifying Skillsets               Setting Goals




6 Wishes for Financial Governance

     Implement a rolling funding cycle
1.
     & rational contingency planning!
     Institute a deliberate process of project
2.
     proposal assessment and prioritization!
     Release project funding incrementally!
3.

     Incent for project success, not just
4.
     individual contribution!
     Accept and enculturate that canceling
5.
     a failing project is, itself, a success!
     Require a project benefit evaluation annually
6.
     for the 3 years following project completion!




                                                ©2008 Valtech Technologies, Inc.
                                                      All Rights Reserved.
                                                                                     8
As for the rest, …

   Security, Legal-Risk-Compliance, &
   Technology-Architecture governance
   processes should be facilitative and
   consultative, not juridical.

   The issues that are important to these
   governance groups must be articulated
   if they are to be constructively complied with!




Finally, for you consideration:
the Zen of Agile Adoption
  Problem in Evidence
     The symptoms and (eventually) causes are made visible and evident.
  Simple Elegance
     A few simple elements and the rules of their combination and
     interrelationship produce a rich behavior or set of possibilities.
  Balanced Reciprocity
      The participants in the transformed system must all benefit from the
      transformation in proportion to their investment and participation.
  Evolved Vocabulary
     Language shapes Thought. Thought shapes Values. Values shape Behavior.
     A new vocabulary must emerge and be differentiated from the old in order
     to ensure that Thought, Values and Behavior are in alignment.
  Embodied Metaphor
     Don’t make the metaphor abstract too soon. Don’t take it
     from our hands too soon, lest we abdicate of the responsibility
      to own & master the metaphor to our tools.
  Establish Context
     If only the affective levels of a system are modified,
     change will still not last. At least one contextual level
     must be mutated to establish the environment for success.
  Single Voice
     The voice of the change-agent must be unified and consistent.
                      change-
     Otherwise, the voice of the client will be dissonant.




                                                         ©2008 Valtech Technologies, Inc.
                                                               All Rights Reserved.
                                                                                            9
Three Things to Do Now…




Thank you for attending!



                         Questions???


     Contacts:

                             Al Goerner                          Jonathan Cook
             Principal Emterprise Consultant   Business Development, United Kingdom
                    al.goerner@valtech.com               jonathan.cooke@valtech.com
                           +01 214 724 7240                           +44 7748638031




                                                ©2008 Valtech Technologies, Inc.
                                                      All Rights Reserved.
                                                                                       10

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Adopting Agile In The Organization Al Goerner

  • 1. Adopting Agile in the Organization Al Goerner Agile Edge - UK 28 October 2008 Bottom Line An Agile team in a non-agile environment will not long survive. Development Agility & Business Agility go Hand-in-Hand. ©2008 Valtech Technologies, Inc. All Rights Reserved. 1
  • 2. It Starts with Trust ... or the Lack Thereof. ”Trust Us!” says the Agilist. ”Trust What? I am the one hanging out here!” says the Partner. What Your Partner is Thinking when you say … “Everything you think you know is wrong.” “What arrogance! You’ve got 3-6 months, max, to impress me.” “Leave us alone. We’ll get the job done.” “I don’t have the time to baby-sit you, but I doubt that I can afford to leave you alone.” “We need 1 of your top people, full-time.” “I need him/her more than you do. You’ll get them in their spare-time.” “We don’t need no stinking project manager.” “But, that’s just exactly what you are gonna get!” “We’re Agile now. We don’t give dates or do reports.” “That’s what YOU think!” ©2008 Valtech Technologies, Inc. All Rights Reserved. 2
  • 3. Legitimate Concerns of … Executive Business Customer Management Usable solutions to real Line problems. Management Responsiveness to Business changing needs and Customer understanding. Predictable, reliable Team results. Schedule reliability amidst dependencies. Individual Make the Case with the Business Customer Agility is for the Business Customer’s benefit! To deliver business value … • Solving a real problem … • Faster … Benefit Burden • With more flexibility … • At higher quality … • Reliably and sustainably … • At the same or lower cost. Remember the Principle of Benefit & Burden! If your whole message about Agile development is about tactical development practices, then the best that you can expect from the business customer is benign disregard. ©2008 Valtech Technologies, Inc. All Rights Reserved. 3
  • 4. Requirements – the Culture Shift Requirements are not a contract! “Perfect is the enemy of Good Enough.” • Perfect requirements take too long. That is not our objective. • There are some requirements no one knows at the beginning of a project. The business needs to change its mind as it clarifies its vision. Requirements are more exploration than specification! Invest the time to visualize, clarify, and iterate. Requirements analysis is just another kind of risk management. Estimates – the Culture Shift Understand the accuracy of estimates! Project Cost Project Know the difference between Schedule (effort & size) 4X 1.6X estimates and commitments. 2X 1.25X Insist on an estimation discipline, No-Fidelity 1.15X 1.5X and train to that discipline. Lo-Fidelity 1.05X 1.05X 1.0X 1.0X Hi-Fidelity 0.95X 0.95X Improve estimation accuracy 0.67X 0.85X 0.5X 0.8X through feedback about actuals. 0.25X 0.6X Project Inception Elaboration Construction Expect re-forecasts! Proposal Phase Phase Phase Assessment Assessment Assessment When well done, commitments are pulled in more often than they are pushed out. Insist on knowing when the reforecast is due and its stability. ©2008 Valtech Technologies, Inc. All Rights Reserved. 4
  • 5. Legitimate Concerns of … Executive Line Management Management What resources to commit Line to which project, when. Management Balancing too many Business priorities with too few Customer resources. How to get more with Team less, without breaking your people. How to serve without being enslaved. Individual Accountability – the Culture Shift Concerns of Management: Progress: 100.0 90 90.0 • Is this project on-time? 81 80.0 Is it healthy? 69 66 70.0 63 61 Quality: 60.0 52 51 48 48 50 47 46 47 • Is this release likely to be 50.0 43 43 40 38 40.0 fit-for-release when it is 33 29 40 42 40 37 38 37 36 37 38 30.0 24 ready-for-release? 36 36 33 34 20 30 31 28 15 20.0 26 27 11 Diagnostic: 6 5.25 5.75 4.75 5.25 4.75 6 10.0 3.75 3 2.5 1 0 00 0 0 0 0 00 • What can we do to get this 0.0 4 3.5 3.5 3 3 1.5 1 0.5 0 project back on track? 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Measure performance and manage by it! Only metrics – the right metrics – allow you to know the answers to these questions. • When? Who? How much? Why? What if? ©2008 Valtech Technologies, Inc. All Rights Reserved. 5
  • 6. Responsibilities – the Culture Shift Only cross-functional teams get projects done! Handoffs are a productivity and quality killer. A matrix is the natural structure of an effective organization. Share your people so that others will share theirs. All stars shine in the night sky. … They don’t have to dim others. Beware of staff fractionalization! The Rule of 10%: for every project assigned, you lose 10% of that person’s productivity to overhead and context switching. Consider the Stable Team pattern: it is more effective to assign projects to teams than teams to projects. Planning – the Culture Shift The Plan is not the Product! Keep your eye on the prize. Prefer Checklists to Plans! “The plan is worthless. Don’t tell me what you plan to do; The planning is priceless.” - Eisenhower tell me what you have done! Planning is risk management, too! Planning may proceed forward or backward! Acme Project Reality Machine [Depth] [Risk] Function Resource Schedule The 3+2 Dimensions of the “Triple Constraint” ©2008 Valtech Technologies, Inc. All Rights Reserved. 6
  • 7. Legitimate Concerns of … Executive Executive Management Management How to allocate budget to Line maximize ROI. Management How to advance company Business strategic goals. Customer How to stay on the right side of the law and the Team marketplace. Individual Governance – the Culture Shift Governance should be aligned to the development process, not vice versa! Project Governance Financial Governance Security Governance Legal, Risk, & Compliance Governance Technology & Strategic Architecture Governance The right question, asked at the right time, answered and recorded. Audits, after the fact, add no value. ©2008 Valtech Technologies, Inc. All Rights Reserved. 7
  • 8. 6 Missions of a Project Mgmt Office Broaden and balance your PMO! Enabling Establishing Empowering Change Behaviors Planning Coaching & Project Evangelism Mentoring Monitoring Energy for Change Shaping Behaviors Measuring Outcomes Owning Portfolio Training Practices Management Vocabulary for Change Certifying Skillsets Setting Goals 6 Wishes for Financial Governance Implement a rolling funding cycle 1. & rational contingency planning! Institute a deliberate process of project 2. proposal assessment and prioritization! Release project funding incrementally! 3. Incent for project success, not just 4. individual contribution! Accept and enculturate that canceling 5. a failing project is, itself, a success! Require a project benefit evaluation annually 6. for the 3 years following project completion! ©2008 Valtech Technologies, Inc. All Rights Reserved. 8
  • 9. As for the rest, … Security, Legal-Risk-Compliance, & Technology-Architecture governance processes should be facilitative and consultative, not juridical. The issues that are important to these governance groups must be articulated if they are to be constructively complied with! Finally, for you consideration: the Zen of Agile Adoption Problem in Evidence The symptoms and (eventually) causes are made visible and evident. Simple Elegance A few simple elements and the rules of their combination and interrelationship produce a rich behavior or set of possibilities. Balanced Reciprocity The participants in the transformed system must all benefit from the transformation in proportion to their investment and participation. Evolved Vocabulary Language shapes Thought. Thought shapes Values. Values shape Behavior. A new vocabulary must emerge and be differentiated from the old in order to ensure that Thought, Values and Behavior are in alignment. Embodied Metaphor Don’t make the metaphor abstract too soon. Don’t take it from our hands too soon, lest we abdicate of the responsibility to own & master the metaphor to our tools. Establish Context If only the affective levels of a system are modified, change will still not last. At least one contextual level must be mutated to establish the environment for success. Single Voice The voice of the change-agent must be unified and consistent. change- Otherwise, the voice of the client will be dissonant. ©2008 Valtech Technologies, Inc. All Rights Reserved. 9
  • 10. Three Things to Do Now… Thank you for attending! Questions??? Contacts: Al Goerner Jonathan Cook Principal Emterprise Consultant Business Development, United Kingdom al.goerner@valtech.com jonathan.cooke@valtech.com +01 214 724 7240 +44 7748638031 ©2008 Valtech Technologies, Inc. All Rights Reserved. 10