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The Business Case for Agile


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How to get work done better, faster, and cheaper using an Agile approach. This brief provides an overview of current management challenges, recent research on the benefits of Agile, and a introduction to Maurice Hagar and Associates.

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The Business Case for Agile

  1. 1. Getting Work Done Better Faster Cheaper:The Business Case for Agile
  2. 2. Overview Business Realities and Challenges The Business Case for Agile How We Can Help
  3. 3. Business Realities• The manager’s challenge in today’s “new economy” — Do more with less — Work better, faster, cheaper — Juggle competing priorities — Manage continuous change — Navigate growing complexity• Project management standards help get the work done — The Project Management Institute’s (PMI) Project Management Body of Knowledge (PMBOK) is the ANSI and IEEE standard — Projects In Controlled Environments 2 (PRINCE2) is the UK standard• Numerous software development methodologies and process improvement models are employed on IT projects
  4. 4. Business Challenges• Most projects fail to meet budget, schedule, and quality expectations “It is difficult to say what we are doing better as a result of the surge in project management…It seems that projects…are inherently unpredictable and flawed, both in their execution and in their outcome, and modern project management has not, as yet, done much to change this.”***Standish Group. (2010). CHAOS Report Summary. 2010. Boston, MA.**Smith, Charles. ―To Protect and Serve.‖ Chief Executive Officer, (Nov. 2007). Accessed April 7, 2012.
  5. 5. Root Cause Analysis• The UK’s Engineering and Physical Sciences Research Council — Convened thought leaders from around the world — Included representatives from PMI, the Association for Project Management, and the International Project Management Association• Landmark report Rethinking Project Management released May 2006 — Existing standards are simplistic and rooted in early 20th-century practices — New approaches needed to manage today’s rapid changes and complexity “The gap between project management theory and real-world practice is growing; we need a fundamental rethink of the discipline…This is not to argue that conventional project management theory should now be abandoned, only that there is a need now to develop this field beyond its current foundations.”**Winter, Mark, and Charles Smith. Rethinking Project Management: Final Report, 2006. EPSRC Network, 2004– Accessed April 7, 2011.
  6. 6. Overview Business Realities and Challenges The Business Case for Agile How We Can Help
  7. 7. Introducing Agile• Agile has emerged as the most effective approach for successfully managing dynamic, complex work — Rooted in W. Edwards Deming and lean manufacturing — The Agile Manifesto signed by software thought leaders in 2001 — PMI’s Agile project management credential (PMI-ACP) launched in 2011• Rapid and widespread adoption — The US military uses Agile approaches for mission planning — Gartner estimates that 80% of IT shops are using or learning Agile — Non-IT managers, entrepreneurs, and MBA students are now learning Agile “The use of Agile practices…has become an essential approach for effectively delivering project work in environments where change is the norm.”* “There is no question that Agile project management is a leading and emergent practice…critical to understand.”—Gregory Balestrero, CEO Emeritus, PMI***Project Management Institute. ―PMI Introduces New Agile Certification.‖Credential Passport: PMI’s Global Credential Holder Newsletter. (March 2011) Accessed April 7, 2011.**Balestrero, Gregory. On the Threshold of Agility. March 18, 2009. Accessed April 7, 2011.
  8. 8. What Is Agile?• Agile is a family of lean methodologies built on iterative work, incremental deliveries, open collaboration, and continuous learning and improvement• Scrum is the most widely used Agile framework**House, D. Sixth Annual State of Agile Survey, 2012. Atlanta, GA: VersionOne.
  9. 9. When to Use Agile• Simple projects — ―Ready, aim, fire!‖ — Traditional approaches work• Complex projects — ―Fire, aim, fire!‖ — Use Agile approaches• Chaotic projects — ―Retreat!‖ — Restructure project Stable Changing Predictable Uncertain Slow-Moving Fast-Paced
  10. 10. Agile Benefits• Study after study demonstrates gains realized via Agile methodologies Improvements Year Author Sample Size Productivity Cost Savings Quality 2003 Johnson 131 93% 49% 88% 2006 Barnett 400 45% 23% 43% 2007 Begel 492 14% 16% 32% 2007 Rico 250 81% 75% 80% 2008 Ambler 642 82% 72% 72% 2008 Wolf 207 78% 72% 74% 2008 Hanscom 3,061 74% 38% 68% Mean 67% 49% 65%
  11. 11. A Closer Look• 2008 University of Maryland research* — In-depth analysis of 153 metrics of business value delivered — Across 72 studies comparing traditional and Agile methodologies Metric Traditional Agile Cost Savings 20% 29% Schedule Reduction 37% 70% Productivity Gains 62% 117% Quality Improvement 50% 74% Customer Satisfaction Gains 14% 70% Return on Investment 470% 2,811%*Rico, D. F. What is the ROI of Agile vs. Traditional Methods? 2008. TickIT International, 10(4), 9-18.
  12. 12. Top Benefits Reported by 6,042 Agile Practitioners Rank Benefit Respondents 1 Better management of changing priorities 84% 2 Improved business visibility 77% 3 Increased productivity 75% 4 Improved team morale 72% 5 Faster time-to-market 71% 6 Better alignment between IT and the business 68% 7 Enhanced quality 68% 8 Simpler processes 68% 9 Reduced risks 65% 10 More discipline 62% 11 Enhanced software maintainability/extensibility 60% 12 Reduced costs 49% 13 Improved management of distributed teams 41%*House, D. Sixth Annual State of Agile Survey, 2012. Atlanta, GA: VersionOne.
  13. 13. Overview Business Realities and Challenges The Business Case for Agile How We Can Help
  14. 14. Introducing Maurice Hagar & Associates Maurice Hagar holds a graduate degree and multiple certifications in project management with additional certifications in business analysis and change management. Maurice brings 25 years proven experience delivering quantifiable business results for both start-ups and Fortune 500 companies such as Boeing, Citigroup, Coca-Cola, General Motors, GlaxoSmithKline, Northwestern University, and the US Military. Maurice has served in a variety of roles from software development manager to global program manager to CIO, and has offered project management consulting and training since 2005.Maurice’s broad experience, along with his expertise across a wide spectrum of project managementmethodologies and his capabilities as both a practitioner and a strong communicator, make him uniquein the field of project management. Maurice has won a number of industry awards, he was featured inan Information Week article, and he is a sought-after speaker, trainer, and consultant around the world.―& Associates‖ refers to Maurice’s strategic partnerships: — Gear Stream is a global company with 10 years experience offering Agile management solutions that radically improve performance around product innovation and development. — Learning Tree International is a world leader in hands-on training for management, project management, and technology professionals with over 2 million students since 1974.
  15. 15. How We Can HelpOur areas of expertise include: — Project kick-start and rescue — Project management processes — Agile management and coaching — Complex systems management — Program and portfolio management — Corporate strategy and governance — Project management training and mentoring — Management and leadership trainingWorking together we can help you: — Efficiently control projects resulting in quantifiable cost savings and improved margins — Achieve project management excellence resulting in improved stakeholder satisfactionOur unique ability to provide a complete solution, including best practices from across the spectrum ofproject management methodologies, along with our extensive experience and successful track recordmakes us an able partner. And we guarantee our work: you pay only as much of our invoice as you feelrepresents fair value to you and your business. We care much more about our reputation as a trustedpartner than about making a few extra dollars.