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Scrum Day London 2016 - Empirical Management Explored (by Gunther Verheyen)

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by Scrum.org – Improving the Profession of Software Development
Empirical Management Explored
Evidence-Based Managing of S...

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2© 1993-2016 Scrum.org, All Rights Reserved
Is that a Gorilla I see over there?
Source: https://versionone.com/pdf/Version...

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3© 1993-2016 Scrum.org, All Rights Reserved
Are we Done yet?

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Scrum Day London 2016 - Empirical Management Explored (by Gunther Verheyen)

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More than 15 years ago, the Manifesto for Agile Software Development was created—the “Magna Carta” for agile development. And while this was a powerful document for development work, managers felt left out. To this day, some claim there is no place for managers in Agile. But the act of managing is not obsolete by any stretch in software development—it merely needs some refinement and an update in focus.

A core objective of the agile movement was to shift the focus of software development to creating more valuable software, frequently. It can be expected that the act of managing in an agile environment is different than traditional project or employee management: at its center, it must maximize the value that the software brings. Enter a new management culture, Empirical Management, thriving on evidence-based decision-making. Managers in product-development organizations are making the shift from predictive management, where plans and predictions prevail, to empirical management, where evidence and experience is used for better decision-making.

There is value in applying the Scrum stance in the managerial domain. Informed management decisions can be made if it is made transparent whether the software created is indeed valuable; valuable to the organization, its users and the wider ecosystem. Indicators of value become the primary source for inspection, in order to adapt how the software is being produced.

In the opening keynote of the first edition of the Scrum Day London event, Gunther Verheyen explored the idea of Empirical Management and the updated act of managing in today’s agile software development.

More than 15 years ago, the Manifesto for Agile Software Development was created—the “Magna Carta” for agile development. And while this was a powerful document for development work, managers felt left out. To this day, some claim there is no place for managers in Agile. But the act of managing is not obsolete by any stretch in software development—it merely needs some refinement and an update in focus.

A core objective of the agile movement was to shift the focus of software development to creating more valuable software, frequently. It can be expected that the act of managing in an agile environment is different than traditional project or employee management: at its center, it must maximize the value that the software brings. Enter a new management culture, Empirical Management, thriving on evidence-based decision-making. Managers in product-development organizations are making the shift from predictive management, where plans and predictions prevail, to empirical management, where evidence and experience is used for better decision-making.

There is value in applying the Scrum stance in the managerial domain. Informed management decisions can be made if it is made transparent whether the software created is indeed valuable; valuable to the organization, its users and the wider ecosystem. Indicators of value become the primary source for inspection, in order to adapt how the software is being produced.

In the opening keynote of the first edition of the Scrum Day London event, Gunther Verheyen explored the idea of Empirical Management and the updated act of managing in today’s agile software development.

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Scrum Day London 2016 - Empirical Management Explored (by Gunther Verheyen)

  1. 1. by Scrum.org – Improving the Profession of Software Development Empirical Management Explored Evidence-Based Managing of Software Gunther Verheyen Scrum.org Scrum Day London 11 May 2016
  2. 2. 2© 1993-2016 Scrum.org, All Rights Reserved Is that a Gorilla I see over there? Source: https://versionone.com/pdf/VersionOne-10th-Annual-State-of-Agile-Report.pdf
  3. 3. 3© 1993-2016 Scrum.org, All Rights Reserved Are we Done yet?
  4. 4. 4© 1993-2016 Scrum.org, All Rights Reserved Improving the profession of software development
  5. 5. 5© 1993-2016 Scrum.org, All Rights Reserved Observed challenges Scrum People Ceremonies Principles and Values Technical Excellence Done Increments The power of the possible product Maximizing Scrum Scaling Upstream adoption Embedding Scrum Professional Scrum Creating releasable software (every Sprint) Increasing effectiveness (over scaling dysfunctions) The enterprise and Scrum Growing Product Ownership Humanizing the workplace (It starts and ends with people)
  6. 6. 6© 1993-2016 Scrum.org, All Rights Reserved Help! (What’s a manager to do in this?)
  7. 7. 7© 1993-2016 Scrum.org, All Rights Reserved • Long-term detailed plans • Assign and control the work • Maximize capacity and effort • Keep all on schedule • Meeting and report driven • Step in to fix all problems • Provide external motivators ($, career) • Goals, vision, direction • Foster the environment • Remove Impediments • Attend Sprint Reviews • Share incremental feedback • Manage for value • Autonomy, mastery, purpose A Shift Predictive Management Empirical Management
  8. 8. 8© 1993-2016 Scrum.org, All Rights Reserved Where to begin?
  9. 9. 9© 1993-2016 Scrum.org, All Rights Reserved How IT is typically managed • IT is a cost center. • Software development is an expense, some of which may be capitalized. • Expenditures are ‘managed’ through projects. If you manage Scrum similarly: • The goal is often more Scrum, more scope. Success = f { Planned_Time, Predicted_Scope, Allocated_Budget }
  10. 10. 10© 1993-2016 Scrum.org, All Rights Reserved Remember? “Our highest priority is to satisfy the customer through early and continuous delivery of valuable software.” How is that for a purpose?
  11. 11. 11© 1993-2016 Scrum.org, All Rights Reserved Measure one level up. Measure outcomes, not teams. 1. Direct Value 3. New Value 2. Sustained Value Key Value Indicators Release Cadence Release Stabilization Cycle Time Installed Version Index Usage Index Innovation Rate Feature Turnover Rate Financial Returns Employee Satisfaction Customer Satisfaction
  12. 12. 12© 1993-2016 Scrum.org, All Rights Reserved The Scrum stance for managers • Inspect the results of the work, regularly – Use key value indicators to increase transparency • To help adapt how the results are achieved – Facilitate change to the organization, the environment, the teams
  13. 13. 13© 1993-2016 Scrum.org, All Rights Reserved Managing for value Measure Facilitate Change • Skills, Knowledge, Understanding  Product managers  Managers  Developers • Practices, Tools, Standards Secondary Indicators Primary Indicators
  14. 14. 14© 1993-2016 Scrum.org, All Rights Reserved Wait. There may be more.
  15. 15. 15© 1993-2016 Scrum.org, All Rights Reserved Embedding Scrum A Scrum Studio is a contained, yet integrated, part of the organization where software development employs Scrum • A physical or a virtual area • Value over capacity or hours • Stable product teams • Tooling and infrastructure • Facilities and resources for people A center of innovative and creative software and people development.
  16. 16. 16© 1993-2016 Scrum.org, All Rights Reserved Updating the organization’s OS
  17. 17. 17© 1993-2016 Scrum.org, All Rights Reserved So?
  18. 18. 18© 1993-2016 Scrum.org, All Rights Reserved Management – Definitely • Teams manage themselves. • Product Owners manage the product’s vision and investments. • A Scrum Master manages through Scrum. • Others might manage company structures, objectives, identity, …
  19. 19. 19© 1993-2016 Scrum.org, All Rights Reserved ‘Management’ is not a collection of people exerting hierarchical powers. It is an emergent, networked structure of co-managers. – Removing Impediments – Optimizing a product’s value – Updating the organization’s OS
  20. 20. 20© 1993-2016 Scrum.org, All Rights Reserved About Gunther Verheyen Independent Scrum caretaker • eXtreme Programming and Scrum since 2003 • Professional Scrum Trainer • Shepherded Professional Scrum at Scrum.org • Co-developed the Scaled Professional Scrum framework at Scrum.org • Author of “Scrum – A Pocket Guide (A smart travel companion)” and “Scrum Wegwijzer” (Een kompas voor de bewuste reiziger)” Mail gunther.verheyen@mac.com Twitter @Ullizee Blog http://guntherverheyen.com
  21. 21. 21© 1993-2016 Scrum.org, All Rights Reserved 90% Agile teams use Scrum Over 53,693 Professional Scrum Masters Over 2,351 Professional Scrum Developers 150 Professional Scrum Trainers Americas, Europe, Africa, Oceania & Asia Over 47,361 Taught Over 6,916 Professional Scrum Product Owners Over 748,912 Assessments As of the end of Jan 2016
  22. 22. 22© 1993-2016 Scrum.org, All Rights Reserved 22© 1993-2016 Gunther Verheyen, Scrum.org, All Rights Reserved Advance through the Professional Scrum program Free Resources Assessments Courses
  23. 23. 23© 1993-2016 Scrum.org, All Rights Reserved Scrum.org is a community. Connect. Twitter @scrumdotorg LinkedIn LinkedIn.com /company/Scrum.o rg Facebook Facebook.com /Scrum.org Forums Scrum.org /Community RSS Scrum.org/RSS
  24. 24. 24© 1993-2016 Scrum.org, All Rights Reserved T H A N K Y O U

Editor's Notes

  • Abstract
    Scrum has been around for more than two decades. Since the release of the Agile Manifesto in 2001, the adoption of agile and Scrum have grown incredibly. Now, the survival and prosperity of many people and organizations are heavily intertwined with software. Scrum has been a key tool for teams and organizations to deal with the increased criticality of software.

    But the dependence of businesses and society on software has increased even more. Software is eating the world. Complexity and unpredictability continue to increase. The urgency to improve remains.

    The key for future success is still Scrum – and we are not yet Done with Scrum. The key to employing Scrum professionally is creating Done Increments of product, where “Done” actually means “releasable in production.” This requires professional development, proper practices and standards, cross-functional collaboration, and inner-Sprint feedback loops. It might take another two decades to actually get there.

    In his session, Gunther Verheyen explores the system called ‘Scrum’, how it has helped, and how it can continue to help.

    Gunther is a longtime Scrum professional. Working with Scrum.org, home of the agile software development framework, he shepherds the group’s Professional series. He leads Scrum.org European operations and represents Scrum co-creator Ken Schwaber on the continent.

    An additional resource is the Scrum Guide, http://www.scrumguides.org/scrum-guide.html and Gunther’s book, “Scrum - A Pocket Guide”, which builds upon and extends the Scrum Guide, http://guntherverheyen.com/2015/10/06/my-pocket-guide-to-scrum/.
  • Let’s postpone the celebration a while.
  • A world of self-organisation.
  • An activity without value. The ideal victim for cost cutting.
  • A world of self-organisation.
  • About Gunther Verheyen

    Gunther Verheyen (gunther.verheyen@mac.com) is a seasoned Scrum practitioner. He shepherds Professional Scrum through Scrum.org and represents Scrum.org and Scrum co-creator Ken Schwaber in Europe.
    Gunther ventured into IT and software development after graduating in 1992. His Agile journey started with eXtreme Programming and Scrum in 2003. Years of dedication followed, years in which he was involved in Scrum in diverse circumstances. As from 2010 Gunther became the inspiring force behind some large-scale enterprise transformations.

    Gunther left consulting in 2013 to partner with Ken Schwaber, Scrum co-creator, at Scrum.org. He is Professional Scrum Trainer, shepherds the ‘Professional Scrum’ series, works with Scrum.org’s global network of Professional Scrum Trainers. He is co-creator to Agility Path and the Nexus framework for Scaled Professional Scrum.

    In 2013 Gunther published the acclaimed book “Scrum – A Pocket Guide (a smart travel companion)”, translated to Dutch in 2016 as “Scrum Wegwijzer (een kompas voor de bewuste reiziger)”. Ken Schwaber recommends his book as ‘the best description of Scrum currently available’ and ‘an extraordinarily competent book’.

    When not travelling for Scrum and professionalism, Gunther lives and works in Antwerp (Belgium).
    Find Gunther on Twitter as http://twitter.com/ullizee or read more of his musings on Scrum on his personal blog, http://guntherverheyen.com.
  • DW 90% - Forrester research data https://www.forrester.com/How+Can+You+Scale+Your+Agile+Adoption/fulltext/-/E-res110444#AST962998 2013

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