The document discusses challenges with traditional IT project development approaches which often run over budget, over schedule, and fail to deliver all features. It then introduces lean and agile approaches which aim to deliver value faster with better quality and lower costs. These approaches emphasize collaborative workshops, lightweight documentation, user stories, adaptive planning, test-driven development, continuous integration and feedback to continuously improve.

1. Better, faster, cheaper. Lean and agile approaches to IT development Marc McNeill, ThoughtWorks

2. IT doesn’t have a track record

3. “Two thirds of (IT) projects are challenged.”. Source: The Standish Group CHAOS Reports

4. Over budget by 189% . Source: The Standish Group CHAOS Reports

5. Over schedule by 220% . Source: The Standish Group CHAOS Reports

6. Only 61% of features delivered. Source: The Standish Group CHAOS Reports

7. 66% of projects fail or are ‘marginal’. Source: The Standish Group CHAOS Reports

8. $3.45 billion tax-credit overpayment UK Inland Revenue $2.6 billion spent system cancelled US Federal Aviation Administration $160 million lost because of ERP system problems Hewlett-Packard $527 million written off supply chain system abandoned J Sainsbury plc

9. Poor Quality Slow to Deliver Expensive

10. Better Faster Cheaper

11. What if…

12. Lean

13. Agile

14. but first...

15. Context just a little

17. A Company with a purpose

18. To be the home for the best knowledge workers in the world

19. To revolutionise the way software is delivered to make a positive difference to business and to society

20. Consultancy Global Delivery Training Products 1000+ employees 6 countries 15 years

21. A story

22. The business has an idea Increase revenue Decrease costs Regulatory pressures Cartoons courtesy of http://designcomics.org/

23. The idea is analysed High level design Detailed design

24. This takes time

25. The business sign off on the requirements

26. (Lots of requirements)

27. Developers start writing code

28. It gets tested

29. Then deployed

30. But it doesn’t always work like this

31. Long feedback cycles

32. The business changes

33. Dates slip, scope gets cut, effort wasted

34. Value is not delivered High project failure rate High cost of change Permanent state of maintenance Little innovation Unhappy stakeholders Poor customer experience

35. A different story?

36. 01. Agile

37. http://agilemanifesto.org/

38. 02. Lean

39. Scientific management “ It is only through enforced standardization of methods, enforced adoption of the best implements and working conditions and enforced cooperation that this faster work can be assured. And the duty of enforcing the adoption of standards and enforcing this cooperation rests with management alone.” Frederick Winslow Taylor Any colour so long as it is black

40. Lean Just in time “ All we are doing is looking at the time line, from the point the customer gives us an order to the point when we collect the cash. And we are reducing the time line by reducing the non-value added wastes.” Taiichi Ohno

41. Just in time Build in quality People and teamwork Reduce waste Regular cadence Stabilise and standardise Make problems visible Better quality Lower cost Shorter lead times Higher morale Continuous improvement

42. The story revisited

43. (v) Value-Added Time (e) Elapsed Time (c) Cumulative Elapsed Time Adapted from http://www.thoughtworks.com/pdfs/lean-qtb-jun08.pdf Requirements Gathering & Analysis (v) 1 Week (e) 4 Weeks (c) 4 Weeks Review & Approve Req. Spec. (v) 1 Day (e) 2 Weeks (c) 6 Weeks Solution Design (v) 2 Weeks (e) 6 Weeks (c) 12 Weeks Review & Approve Tech. Spec. (v) 1 Day (e) 2 Weeks (c) 14 Weeks Build Solution (Coding) (v) 8 Weeks (e) 14 Weeks (c) 28 Weeks System testing (v) 3 Weeks (e) 3 Weeks (c) 31 Weeks User Acceptance Testing (UAT) (v) 3 Weeks (e) 3 Weeks (c) 34 Weeks Deploy (v) 1 Week (e) 2 Weeks (c) 36 Weeks

44. Requirements Gathering & Analysis Review & Approve Req. Spec. Solution Design Review & Approve Tech. Spec. (v) 1 Week (e) 4 Weeks (c) 4 Weeks (v) 1 Day (e) 2 Weeks (c) 6 Weeks (v) 2 Weeks (e) 6 Weeks (c) 12 Weeks (v) 1 Day (e) 2 Weeks (c) 14 Weeks Deploy User Acceptance Testing (UAT) System testing Build Solution (Coding) (v) 1 Week (e) 2 Weeks (c) 36 Weeks (v) 3 Weeks (e) 3 Weeks (c) 34 Weeks (v) 3 Weeks (e) 3 Weeks (c) 31 Weeks (v) 8 Weeks (e) 14 Weeks (c) 28 Weeks Total Elapsed Time = 36 Weeks Estimated Project Cost (at $50k per week) = $1.8M Cycle Time Efficiency = 53% Systemic Faults: Inefficient Slow, expensive & poor quality Inflexible System often fails

45. Requirements Gathering & Analysis Review & Approve Req. Spec. Solution Design Review & Approve Tech. Spec. (v) 1 Week (e) 4 Weeks (c) 4 Weeks (v) 1 Day (e) 2 Weeks (c) 6 Weeks (v) 2 Weeks (e) 6 Weeks (c) 12 Weeks (v) 1 Day (e) 2 Weeks (c) 14 Weeks Deploy User Acceptance Testing (UAT) System testing Build Solution (Coding) (v) 1 Week (e) 2 Weeks (c) 36 Weeks (v) 3 Weeks (e) 3 Weeks (c) 34 Weeks (v) 3 Weeks (e) 3 Weeks (c) 31 Weeks (v) 8 Weeks (e) 14 Weeks (c) 28 Weeks Extra Features Defects Defects Waiting (v) Value-Added Time (e) Elapsed Time (c) Cumulative Elapsed Time Movement Waiting Excess Inventory Movement Waiting Excess Inventory

46. The lean and agile way

47. Requirements Gathering & Analysis (v) 3 Week (e) 4 Weeks (c) 4 Weeks

48. Requirements Gathering & Analysis (v) 3 Week (e) 4 Weeks (c) 4 Weeks Collaborative workshops

49. Requirements Gathering & Analysis (v) 3 Week (e) 4 Weeks (c) 4 Weeks Visioning

50. Requirements Gathering & Analysis (v) 3 Week (e) 4 Weeks (c) 4 Weeks Shared understanding

51. Requirements Gathering & Analysis (v) 3 Week (e) 4 Weeks (c) 4 Weeks Lo-fi prototyping

52. Requirements Gathering & Analysis (v) 3 Week (e) 4 Weeks (c) 4 Weeks Collaborative prioritisation

53. Requirements Gathering & Analysis (v) 3 Week (e) 4 Weeks (c) 4 Weeks Group estimation

54. Requirements Gathering & Analysis (v) 3 Week (e) 4 Weeks (c) 4 Weeks Lightweight documentation

55. Requirements Gathering & Analysis (v) 3 Week (e) 4 Weeks (c) 4 Weeks

56. Requirements Gathering & Analysis (v) 3 Week (e) 4 Weeks (c) 4 Weeks Testing Design & Build User Acceptance

57. Requirements Gathering & Analysis (v) 3 Week (e) 4 Weeks (c) 4 Weeks Testing Design & Build User Acceptance Build in quality People and teamwork Reduce waste Regular cadence Stabilise and standardise Make problems visible Better quality Lower cost Shorter lead times Higher morale Continuous improvement Just in time

58. Requirements Gathering & Analysis (v) 3 Week (e) 4 Weeks (c) 4 Weeks Testing Design & Build User Acceptance Just in time Build in quality People and teamwork Reduce waste Regular cadence Stabilise and standardise Make problems visible Better quality Lower cost Shorter lead times Higher morale Continuous improvement User stories

59. Requirements Gathering & Analysis (v) 3 Week (e) 4 Weeks (c) 4 Weeks Testing Design & Build User Acceptance Just in time Build in quality People and teamwork Reduce waste Regular cadence Stabilise and standardise Make problems visible Better quality Lower cost Shorter lead times Higher morale Continuous improvement Adaptive planning

60. Requirements Gathering & Analysis (v) 3 Week (e) 4 Weeks (c) 4 Weeks Testing Design & Build User Acceptance Just in time Build in quality People and teamwork Reduce waste Regular cadence Stabilise and standardise Make problems visible Better quality Lower cost Shorter lead times Higher morale Continuous improvement Spike to solve hard technical problems through real experiments

61. Requirements Gathering & Analysis (v) 3 Week (e) 4 Weeks (c) 4 Weeks Testing Design & Build User Acceptance Build in quality People and teamwork Reduce waste Regular cadence Stabilise and standardise Make problems visible Better quality Lower cost Shorter lead times Higher morale Continuous improvement Test driven development Just in time Build in quality

62. Requirements Gathering & Analysis (v) 3 Week (e) 4 Weeks (c) 4 Weeks Testing Design & Build User Acceptance Build in quality People and teamwork Reduce waste Regular cadence Stabilise and standardise Make problems visible Better quality Lower cost Shorter lead times Higher morale Continuous improvement Continuous integration Just in time Build in quality

63. Requirements Gathering & Analysis (v) 3 Week (e) 4 Weeks (c) 4 Weeks Testing Design & Build User Acceptance Build in quality People and teamwork Reduce waste Regular cadence Stabilise and standardise Make problems visible Better quality Lower cost Shorter lead times Higher morale Continuous improvement Paired programming Just in time Build in quality

64. Requirements Gathering & Analysis (v) 3 Week (e) 4 Weeks (c) 4 Weeks Testing Design & Build User Acceptance Build in quality People and teamwork Reduce waste Regular cadence Stabilise and standardise Make problems visible Better quality Lower cost Shorter lead times Higher morale Continuous improvement The right documentation Just in time

65. Requirements Gathering & Analysis (v) 3 Week (e) 4 Weeks (c) 4 Weeks Testing Design & Build User Acceptance Build in quality People and teamwork Reduce waste Regular cadence Stabilise and standardise Make problems visible Better quality Lower cost Shorter lead times Higher morale Continuous improvement Continuous feedback - showcases Just in time

66. Requirements Gathering & Analysis (v) 3 Week (e) 4 Weeks (c) 4 Weeks Testing Design & Build User Acceptance Build in quality People and teamwork Regular cadence Stabilise and standardise Make problems visible Better quality Lower cost Shorter lead times Higher morale Continuous improvement Collective ownership Just in time Reduce waste

67. Requirements Gathering & Analysis (v) 3 Week (e) 4 Weeks (c) 4 Weeks Testing Design & Build User Acceptance Build in quality People and teamwork Regular cadence Stabilise and standardise Make problems visible Better quality Lower cost Shorter lead times Higher morale Continuous improvement Stand-ups Just in time Reduce waste

68. Requirements Gathering & Analysis (v) 3 Week (e) 4 Weeks (c) 4 Weeks Testing Design & Build User Acceptance Build in quality Regular cadence Stabilise and standardise Make problems visible Better quality Lower cost Shorter lead times Higher morale Continuous improvement Time boxed increments Just in time Reduce waste People and teamwork

69. Requirements Gathering & Analysis (v) 3 Week (e) 4 Weeks (c) 4 Weeks Testing Design & Build User Acceptance Build in quality Regular cadence Stabilise and standardise Make problems visible Better quality Lower cost Shorter lead times Higher morale Continuous improvement Sustainable pace Just in time Reduce waste People and teamwork

70. Requirements Gathering & Analysis (v) 3 Week (e) 4 Weeks (c) 4 Weeks Testing Design & Build User Acceptance Build in quality Regular cadence Stabilise and standardise Make problems visible Better quality Lower cost Shorter lead times Higher morale Continuous improvement Patterns, standards and ubiquitous language Just in time Reduce waste People and teamwork

71. Requirements Gathering & Analysis (v) 3 Week (e) 4 Weeks (c) 4 Weeks Testing Design & Build User Acceptance Build in quality Regular cadence Stabilise and standardise Make problems visible Better quality Lower cost Shorter lead times Higher morale Continuous improvement Information radiators Just in time Reduce waste People and teamwork

72. Requirements Gathering & Analysis (v) 3 Week (e) 4 Weeks (c) 4 Weeks Testing Design & Build User Acceptance (v) 8 Weeks (e) 10 Weeks (c) 14 Weeks (v) Value-Added Time (e) Elapsed Time (c) Cumulative Elapsed Time

73. Requirements Gathering & Analysis (v) 3 Week (e) 4 Weeks (c) 4 Weeks Testing Design & Build User Acceptance (v) 8 Weeks (e) 10 Weeks (c) 14 Weeks (v) Value-Added Time (e) Elapsed Time (c) Cumulative Elapsed Time Deploy User Acceptance Testing (UAT) System testing (v) 1 Week (e) 2 Weeks (c) 18 Weeks (v) 1 Week (e) 1 Week (c) 16 Weeks (v) 1 Week (e) 1 Week (c15 Weeks

74. Requirements Gathering & Analysis (v) 3 Week (e) 4 Weeks (c) 4 Weeks Testing Design & Build User Acceptance (v) 8 Weeks (e) 10 Weeks (c) 14 Weeks Deploy User Acceptance Testing (UAT) System testing (v) 1 Week (e) 2 Weeks (c) 18 Weeks (v) 1 Week (e) 1 Week (c) 16 Weeks (v) 1 Week (e) 1 Week (c15 Weeks (v) Value-Added Time (e) Elapsed Time (c) Cumulative Elapsed Time

75. Requirements Gathering & Analysis (v) 3 Week (e) 4 Weeks (c) 4 Weeks Testing Design & Build User Acceptance (v) 8 Weeks (e) 10 Weeks (c) 14 Weeks Deploy User Acceptance Testing (UAT) System testing (v) 1 Week (e) 2 Weeks (c) 18 Weeks (v) 1 Week (e) 1 Week (c) 16 Weeks (v) 1 Week (e) 1 Week (c15 Weeks Total Elapsed Time = 18 Weeks (from 36 weeks) Estimated Project Cost = $900,000 (from $1.8M) Cycle Time Efficiency = 78% (from 53%) Lean Concepts Applied: Eliminate Waste Build Quality In Defer decision making and adaptively plan

76. Lower cost of change Cost of Change Time More defects prevented and fixed Continuous testing Fast feedback Adaptive planning Traditional Project Agile Project

77. Adaptive planning Scope Time Release

78. Adaptive planning Scope Time Release

79. So who does this?

80. http://www.thoughtworks.com/our-clients/case-studies/case-studies.html

81. “Too risky for my mission critical applications”

82. http://www.thoughtworks.com/our-clients/case-studies/case-studies.html

83. Marc McNeill Hong Kong Practice Lead [email_address]