Evidence-Based Managing of Software (Scrum Day Denmark)

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Opening keynote at the first Scrum Day Denmark, in Hellerup (Copenhagen) on June 17 2014.
The topic was "Evidence-Based Managing of Software"

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  • http://scrumday.dk/evidence-based-management/

    The survival and prosperity of organizations thriving on software products highly depends on the VALUE they deliver with their services. If no evidence is collected on value, informed management decisions to maximize value cannot be made.
    ‘Evidence-Based Management’ has its roots in medical practice and promotes evidence-based decision-making in the managerial domain. Outcome is measured as the only appropriate source of direct evidence of value; not teams or individuals. People and teams adapt processes and implement practices to improve the actual outcome, and provide supportive evidence, evidence on the ability to create value.
  • http://alistair.cockburn.us/oath+of+non-allegiance
  • Fad: a practice or interest followed for a time with exaggerated zeal:  craze
  • Based on „stam·pede„ ( /stʌmˈpiːd/ ):
    Sudden frenzied rush of (panic–stricken) animals.
    To flee in a headlong rush.
  • Many software professionals know about scrum as a simple line drawing that describes the Scrum framework
    Some think of Scrum as “That thing IT people do once a day when they stand in a circle.”
    Some oppressive managers, project managers, and self-anointed Scrum Masters have caused some developers to think of Scrum this way
    Bizarrely, some see Scrum and agile in the exact opposite mind frame. An excuse to focus on drama instead of getting down to business
  • Scrum-driven organizations see Scrum as a way to make money. Lots of it.
    Why? What do they know that you don’t?
    They know that Scrum is rooted in empiricism, and they learned how to apply this to their entire business.
    What’s empiricism?

    http://www.drdobbs.com/architecture-and-design/the-corruption-of-agile/240166698 (March 18, 2014):
    “[Agile] has been greatly abetted by the legions of Agile consultants. By stressing the practices, they have corrupted what Agile was about.”
  • One
    - The gears that turn the crank

    Two
    The heartbeat that started a regular and deliberate delivery cadence.
    In some organizations, this even led to genuine agility.
  • Nimble.
    Resilience.
    Agility is a need that arises from the fact that building software is complex and can’t be perfectly planned given the speed and amount of change. It takes courage to admit it, more courage to live by this fact.
  • Explore
    Empiricism
    Complexity
    Agility

    Learning Objectives
    Gain understanding of complexity in software environments
    How empiricism controls risk, and provides predictability in complex environments
    What is agility and what is Scrum’s place within the Agile discussion?

  • Indeed, the Agile movement promotes emergence. Indeed, Agile thrives on self-organization. Indeed, Scrum has no defined role of ‘manager’.

    But is that sufficient to label managers as useless or not needed?

    The Agile movement successfully established a set of values and principles that better fit the creative and complex nature of software development. The focus is on teams, collaboration, people, self-directed discovery. The Scrum framework provides a great foundation for organizations to grasp ‘Agility’.

    The adoption of the Agile thinking via Scrum represents a major and on-going shift in our industry. Even without Scrum having prescriptions for management, it is clear that the self-organizing fundaments of Scrum have a profound impact on the role, approach and act of managing. The challenge is to discover and implement the new needs and demands for managers.

    Self-organization requires boundaries, and shared goals and objectives. Self-organizing teams benefit from the provision of information on the market and company strategie. Self-organizing teams benefit from facilitation with standards, expectations, infrastructure and tools.
  • Indeed, the Agile movement promotes emergence. Indeed, Agile thrives on self-organization. Indeed, Scrum has no defined role of ‘manager’.

    But is that sufficient to label managers as useless or not needed?

    The Agile movement successfully established a set of values and principles that better fit the creative and complex nature of software development. The focus is on teams, collaboration, people, self-directed discovery. The Scrum framework provides a great foundation for organizations to grasp ‘Agility’.

    The adoption of the Agile thinking via Scrum represents a major and on-going shift in our industry. Even without Scrum having prescriptions for management, it is clear that the self-organizing fundaments of Scrum have a profound impact on the role, approach and act of managing. The challenge is to discover and implement the new needs and demands for managers.

    Self-organization requires boundaries, and shared goals and objectives. Self-organizing teams benefit from the provision of information on the market and company strategie. Self-organizing teams benefit from facilitation with standards, expectations, infrastructure and tools.
  • Many investments may provide more agility
    New methodologies exists that claim to make you Agile
    Is Agile/Agility a fad?
    What value is IT contributing to the organization?
    Outcome: deliver increased value.
  • On trail for killing birds
  • On trail for killing birds
  • On trail for killing birds
  • On trail for killing birds
  • ORGANIZATIONAL:
    Revenue per Employee
    Product Cost Ratio
    Employee satisfaction
    Customer satisfaction

    FOUNDATIONAL:
    Release frequency
    Release stabilization
    Cycle Time
    Installed Version Index
    Usage Index
    Innovation Rate
    Total defects
  • Try something that is hot in the market; or,

    Use evidence based management:
    Observe and analyze how work is done now;
    Assess and analyze the capability of the people doing the work;
    Identify the most likely improvement to add value.
    Does not include marketing, sales, or new product ideas.
  • Indeed, the Agile movement promotes emergence. Indeed, Agile thrives on self-organization. Indeed, Scrum has no defined role of ‘manager’.

    But is that sufficient to label managers as useless or not needed?

    The Agile movement successfully established a set of values and principles that better fit the creative and complex nature of software development. The focus is on teams, collaboration, people, self-directed discovery. The Scrum framework provides a great foundation for organizations to grasp ‘Agility’.

    The adoption of the Agile thinking via Scrum represents a major and on-going shift in our industry. Even without Scrum having prescriptions for management, it is clear that the self-organizing fundaments of Scrum have a profound impact on the role, approach and act of managing. The challenge is to discover and implement the new needs and demands for managers.

    Self-organization requires boundaries, and shared goals and objectives. Self-organizing teams benefit from the provision of information on the market and company strategie. Self-organizing teams benefit from facilitation with standards, expectations, infrastructure and tools.
  • Evidence-Based Managing of Software (Scrum Day Denmark)

    1. 1. by Scrum.org – Improving the Profession of Software Development Evidence-Based Managing of Software Measure  Focus  Change Gunther Verheyen Directing the Professional Series Scrum.org Scrum Day Denmark København June 17, 2014
    2. 2. 2© 1993-2014 Scrum.org, All Rights Reserved MIN 3 How would you describe your contribution to the wonderful act of software creation? Raise your hand if it is: • Coding • Testing • Architecting • Designing • Analyzing • Documenting • Coaching • Managing Short Survey About You Thank you for thinking in terms of activities and (multiple) skills, not titles and positions.
    3. 3. 3© 1993-2014 Scrum.org, All Rights Reserved Backlog • The State of Agile • The Act of Managing • Evidence of Agility
    4. 4. 4© 1993-2014 Scrum.org, All Rights Reserved The State of Agile Evidence-Based Managing of Software I promise not to exclude from consideration any idea based on its source, but to consider ideas across schools and heritages in order to find the ones that best suit the current situation. - The oath of non-allegiance (Alistair Cockburn)
    5. 5. 5© 1993-2014 Scrum.org, All Rights Reserved MIN 3 Raise your hand if: • You are Agile? • You are becoming Agile? • You have been told to be Agile and are going to start soon? • Agile is not in your immediate horizon? or: • You have done Agile but discovered it was a fad*? Where Are You On Your Journey? *Fad: a practice or interest followed for a time with exaggerated zeal
    6. 6. 6© 1993-2014 Scrum.org, All Rights Reserved A Craze During the First Decade of Agile? scrum·pede/skrʌmˈpiːd/ 1. Sudden frenzied rush of (panic–stricken) companies to do Scrum because they want to be Agile, too. 2. To flee in a headlong rush back to prescriptive ways of doing things because Scrum is hard work.
    7. 7. 7© 1993-2014 Scrum.org, All Rights Reserved How Some May Recognize Scrum
    8. 8. 8© 1993-2014 Scrum.org, All Rights Reserved How Some In The Industry See Scrum
    9. 9. 9© 1993-2014 Scrum.org, All Rights Reserved How Others Know Scrum and Agile
    10. 10. 10© 1993-2014 Scrum.org, All Rights Reserved In The Meantime Software has become critical to business and society. The growing demands of our population and society require: • Software to weave it together • Greater efficiencies • Profoundly more complex infrastructure
    11. 11. 11© 1993-2014 Scrum.org, All Rights Reserved Agile as the Driver to Business Success • Not quantified or proven • Some are seeing Agile as faddish • A money rush is on • Values and principles are being discarded Because the correlation between agile values and principles and business value is not established, it has disappeared into a flurry of buzzwords and fads.
    12. 12. 12© 1993-2014 Scrum.org, All Rights Reserved What I Thought Scrum Was About Framing the creativity of people to solve complex problems using • Discovery, • Experimentation-based learning, and • Collaboration through • Short, high value iterations, • Self-organizing, cross-functional teams, and • High visibility. With its distinct rules, Scrum is an actionable way to shift to the Agile paradigm for software development.
    13. 13. 13© 1993-2014 Scrum.org, All Rights Reserved Agility is the ‘Why’ of Scrum • Agility is the state envisioned by moving to Agile processes; a state of constant change, evolution, innovation, improvement and re-invention. • Agility is the capability to respond to challenges, change direction, take advantage of opportunities, cause change. React Explore (options) Lead
    14. 14. 14© 1993-2014 Scrum.org, All Rights Reserved • The Agile movement has achieved much • Much potential remains unused, a potential that resides much in the values of Agile • The challenges imposed on software development keep increasing Take Aways
    15. 15. 15© 1993-2014 Scrum.org, All Rights Reserved The Act of Managing Evidence-Based Managing of Software
    16. 16. 16© 1993-2014 Scrum.org, All Rights Reserved An Endangered Species Have you also heard? “Managers are useless and not needed in Agile.” I wonder…
    17. 17. 17© 1993-2014 Scrum.org, All Rights Reserved How IT Budgets Are Typically Managed • IT is a cost center. • Software development is an expense, some of which may be capitalized. • Expenditures are ‘managed’ through projects. Success = f { Planned_Time, Predicted_Scope, Allocated_Budget }
    18. 18. 18© 1993-2014 Scrum.org, All Rights Reserved How Scrum Is Typically Managed • Scrum is the new methodological flavor for delivery from IT to business. • Delivery is done through projects. But we now measure and compare at the team level, no longer the individual’s level. • The goal = more Scrum. Success = f { Practices, Velocity, Performance }
    19. 19. 20© 1993-2014 Scrum.org, All Rights Reserved Back To The Drawing Board Remember? “Our highest priority is to satisfy the customer through early and continuous delivery of valuable software.” How is that for a purpose?
    20. 20. 21© 1993-2014 Scrum.org, All Rights Reserved A Matter of Managerial Culture Evidence-Based Management (“EBM”): • Roots in medical practice. • The application of direct, objective evidence to make decisions. • For software organizations, EBM is employed to maximize the value of software to the organization.
    21. 21. 22© 1993-2014 Scrum.org, All Rights Reserved Evidence Broadly Construed • Anything presented in support of an assertion • Strongest evidence provides direct proof the assertion is false/true • Weakest evidence is circumstantial – Is merely consistent with the assertion – Doesn’t rule out contradictory assertions
    22. 22. 23© 1993-2014 Scrum.org, All Rights Reserved What Type of Evidence?  Circumstantial  Direct
    23. 23. 24© 1993-2014 Scrum.org, All Rights Reserved What Type of Evidence?  Circumstantial  Direct
    24. 24. 25© 1993-2014 Scrum.org, All Rights Reserved What Type of Evidence?  Circumstantial  Direct
    25. 25. 26© 1993-2014 Scrum.org, All Rights Reserved What Type of Evidence?  Circumstantial  Direct
    26. 26. 27© 1993-2014 Scrum.org, All Rights Reserved • Software is not a cost, but has an essential position in the value an organization can generate • Given its importance, managing software serves to maximize its value to our organizations • Evidence is to be preferred over opinions when managing the software and the value it represents to the organization Take Aways
    27. 27. 28© 1993-2014 Scrum.org, All Rights Reserved Evidence of Agility Evidence-Based Managing of Software Not everything that can be counted, counts, and not everything that counts can be counted. - Albert Einstein
    28. 28. 29© 1993-2014 Scrum.org, All Rights Reserved What if we added evidence to opinion, intuition and best practice?
    29. 29. 31© 1993-2014 Scrum.org, All Rights Reserved What Type of Evidence?  Circumstantial  Direct • What’s your development process? • How strictly do you follow the process? • How many features gave you produced last Sprint? • Are your Daily Scrums always <= 15 minutes? • Have you got DevOps in place? • Do you do Continuous Delivery? • How big are your teams? • Is everybody trained? • Do you do TDD? • …
    30. 30. 32© 1993-2014 Scrum.org, All Rights Reserved Collect direct evidence, i.e. evidence on the outcome of the work, to drive your investments in Agility
    31. 31. 33© 1993-2014 Scrum.org, All Rights Reserved Perspectives to Direct Evidence of Value
    32. 32. 34© 1993-2014 Scrum.org, All Rights Reserved Current Value Ability to InnovateTime to Market Direct Evidence Of Value Release Frequency Release Stabilization Cycle Time Installed Version Index Usage Index Innovation Rate Defects Revenue per Employee Employee Satisfaction Customer Satisfaction Product Cost Ratio
    33. 33. 35© 1993-2014 Scrum.org, All Rights Reserved Evolution of Direct Evidence
    34. 34. 36© 1993-2014 Scrum.org, All Rights Reserved Using Direct Evidence Direct Evidence Circumstantial Evidence Measure Change • Skills, Knowledge, Understanding  Product managers  Managers  Developers • Practices, Tools, Standards Focus Facilitate
    35. 35. 37© 1993-2014 Scrum.org, All Rights Reserved Evaluate Investments Against Direct Outcomes
    36. 36. 38© 1993-2014 Scrum.org, All Rights Reserved Circumstantial Evidence Is Supportive, Secondary • Adapting organizational practices should ultimately have a positive impact on the outcome, reflected in the metrics. • Evidence over the effectiveness of teams and practices is circumstantial evidence.
    37. 37. 39© 1993-2014 Scrum.org, All Rights Reserved The People’s Financial Group is a strong retail bank with 1500 branches, 3800 ATMs, and 17000 employees (of which 1100 in IT) across the US. • PFG was a pioneer in online banking, has done it for several years with rich applications and is ahead of the competition. • PFG only recently added mobile banking capabilities, after seeing a significant loss of market share to a smaller player. • Entry to the mobile market seems very slow. Exercise: People’s Financial Group
    38. 38. 40© 1993-2014 Scrum.org, All Rights Reserved MIN Productivity Is High 2 Yet, the IT development manager reports an impressive increase in productivity for the mobile teams which he claims is the result of adopting Scrum:  Circumstantial  Direct Productivity
    39. 39. 41© 1993-2014 Scrum.org, All Rights Reserved MIN Where’s The Value? 2 At the next board meeting however: • The VP of product management shows customer satisfaction. • HR summarizes the last employee happiness survey. A future proof company? Employee Happiness Customer Satisfaction
    40. 40. 42© 1993-2014 Scrum.org, All Rights Reserved MIN Take A Hunch At The Actions PFG Should Take 5
    41. 41. 43© 1993-2014 Scrum.org, All Rights Reserved Case Closed? Have you also heard? “Managers are useless and not needed in Agile.” Do you wonder too?
    42. 42. 44© 1993-2014 Scrum.org, All Rights Reserved Evidence-based Management Organizations • Make better investments • Generate more business value • Avoid wasting energy on fads • Create an evidence-based profession Take Aways
    43. 43. 45© 1993-2014 Scrum.org, All Rights Reserved Closing Evidence-Based Management of Software The future state of Scrum will no longer be called ‘Scrum’. What we now call Scrum will have become the norm, and organizations have re-invented themselves around it. -Gunther Verheyen
    44. 44. 46© 1993-2014 Scrum.org, All Rights Reserved About Gunther Verheyen • eXtreme Programming and Scrum since 2003 • Professional Scrum Trainer • Directing the Professional series at Scrum.org • Co-developing EBM at Scrum.org • Author of “Scrum – A Pocket Guide (A Smart Travel Companion)” (2013) Mail gunther.verheyen@scrum.org Twitter @Ullizee Blog http://ullizee.wordpress.com
    45. 45. 47© 1993-2014 Scrum.org, All Rights Reserved Connect with the Scrum.org community Twitter @scrumdotorg LinkedIn LinkedIn.com /company/Scrum.or g Facebook Facebook.com /Scrum.org Forums Scrum.org /Community RSS Scrum.org/RSS
    46. 46. 48© 1993-2014 Scrum.org, All Rights Reserved Thank you

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