The document discusses how agile practices can help address the 25 point Federal IT reform plan. It summarizes three key points: 1) Aligning the acquisition process with technology cycles by using iterative delivery. 2) Delivering working features in short intervals of 12 months or less by prioritizing features. 3) Aligning budgets with technology cycles by using incremental funding for each development iteration. Challenges include contracts, legislation, and culture, but education and process changes can help implementation.

1. Does Agile Address the 25 Point Federal IT Reformation Plan?
Devin B. Hedge PMI WDC Manoj Vadakkan
Devin@devinhedge.com manoj@vadakkan.org
Agile.devinhedge.com PM in the AM manoj.vadakkan.org

2. Who we are – Devin Hedge
20+ years of experience in the IT Industry
14 years of experience in the Agile Community
Certified Scrum Master (CSM)
Project Management Professional (PMP)
Agile Community Leader
PMI Agile Community if Practice Webinars (http://agile.vc.pmi.org/)
DC Lean Coffee (http://www.coactivate.org/projects/dc-lean-coffee/)
Speaker & Volunteer
Agile Leadership Network (www.aplndc.com)
Agile DC (www.agiledc.org)
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3. Who we are – Manoj Vadakkan
20 years of experience in the IT Industry
10 years of experience in Project management
Certified Scrum Master (CSM), Certified Scrum Professional (CSP)
Project Management Professional (PMP)
Agile Community Leader
Agile Leadership Network (www.aplndc.com)
Agile DC (www.agiledc.org)
Speaker & Writer
Articles on www.scrumalliance.org
Speaker at Seattle Scrum Gathering, Amsterdam Scrum Gathering, MN Govt IT
Symposium
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4. Three points we are examining
Align the Acquisition process with the technology cycle
Deliver working features in short intervals
Align the Budget Process with technology cycle
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5. ALIGN THE ACQUISITION
PROCESS WITH THE
TECHNOLOGY CYCLE
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6. Acquisition
Problem
Time lag between requirements definition and starting of
delivery is too long & technology usually changes before
the solution is delivered
Federal CIO’s Approach?
Align the Acquisition Process with the Technology Cycle
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7. Typical Stage Gate Methodology
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8. Today’s DoD Life Cycle Initial
Operational
Milestone B Capability
Planning Phase Build Phase
43 48
Analysis of Economic MS C
Alternatives Analysis
Development Test
14 29 40 5
91
Metrics calculated by
Long Cycle-Time Driven by Processes OASD(NII) on 32 Major
Developed to Counter a Cold Automated Information
War Adversary In Industrial Age Society
Systems (MAIS)
Source: "Acquisition of Information Technology Trends Within The Department of Defense", September 10, 2009, Don Johnson
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9. Changing Landscape of Government IT
Whereas in 1970, IT accounted for approx 20% of weapon system
functionality, by 2000 it accounted for as much as 80%
Today it is reported IT can deliver 90% or more of functionality
Software is a consistent
and persistent thread
through all DoD system
acquisition programs …
If most IT systems in Government
started as only accounting
systems with little direct
capabilities tied to IT, what
percentage of mission capabilities
rely on them today?
Source: "Acquisition of Information Technology Trends Within The Department of Defense", September 10, 2009, Don Johnson
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10. A Call for Change
DoD Leadership Responsible for IT Hon John Grimes (Former
ASD(NII)/DoD(CIO)
“Hardware development processes ill-suited to IT acquisition”
LTG Charles Croom (Former DISA Commander)
“I would change the acquisition process in how the DoD buys IT in a New York minute….”
LTG Jeff Sorenson (Army CIO/G-6)
“How we can make it better…. Policy –Acquiring IT not like tanks”
Defense Acquisition Performance Assessment (3/2006) The current system
is focused on programs, not on improving and standardizing the processes
of acquisition; it inhibits rather than promotes steady improvement in
achieving program success
GAO Assessment on “Information Technology: DOD’s Acquisition Policies
and Guidance Need To Incorporate Additional Best Practices And Controls”
(July/2004) “As you know, the way in which DOD has historically acquired
information technology (IT) systems has been cited as a root cause of these
systems failing to deliver promised capabilities and benefits on time and
within budget…”
Source: "Acquisition of Information Technology Trends Within The Department of Defense", September 10, 2009, Don Johnson
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11. Proposed New DoD IT Acquisition Process
Source: "Acquisition of Information Technology Trends Within The Department of Defense", September 10, 2009, Don Johnson
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12. An Even More “Agile” Acquisition Process
Combined Acquisition Lifecycle
IOC Release 2 Release 3 Release 4 Maintenance
JAD
It 1 It 2 It 3 It 4 It 5 It 6 It 7 It 8 It 9 It 10 It 11 It 12
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13. Flipping the Iron Triangle in Agile Contracts
The plan creates The Vision Creates
cost/schedule feature estimates
estimates
Fixed Features Cost Date
Value-
Driven
($)
Plan-
Driven
Estimated Cost Date Features
Source: “Inverting the Iron Triangle” by Mike Cottmeyer (http://www.leadingagile.com/2008/04/inverting-the-iron-triangle/ )
and “Agile Contracts” by Jesse Fewell 13

14. DELIVER WORKING
FEATURES IN SHORT
INTERVALS
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15. Deliver working features in short intervals
Problem
Delivering working functionality after several year and late
Federal CIO’s Approach?
Deliver new working functionality to users at least every 12
months.
Delivering functionality in small chunks frequently
Capturing and incorporating feedback during that process
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16. How is it working today?
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17. How is it working today?
Our projects tend to be multiple years long
Our projects tend to not to deliver features for years
In addition to be being late and over budget
Our project tend to spend many months upfront to get the
“requirements” and “grand design”
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18. What can we do?
What can we do to start delivering early?
Start early
Deliver in small chunks
Start early?
If we want to start early, we can’t wait for all the detail requirements written
down
Deliver in small chunks?
If we want to deliver in small chunks, we need to prioritize the chunks
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19. How can weScrum Overview features in short intervals?
deliver working
Start with the high-
level view of the
requirements
Start producing
Elaborate a subset of
Gather feedback from Release to Production
the features
the customer
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20. Deliver working features in short intervals
Practices suggested in the 25 point Implementation plan
Deliver new working functionality to users at least every 12 months.
Delivering capabilities in small chunks frequently
Capturing and incorporating feedback during that process
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21. ALIGN THE BUDGET PROCESS
WITH TECHNOLOGY CYCLE
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22. Align the Budget Process with technology cycle
Problem
The rapid pace of technological change does not match
well with the Federal government’s budget formulation and
execution process
Federal CIO’s Approach?
Align the Budget Process with the Technology Cycle
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23. Recommendations from the Federal CIO
Work with Congress to develop IT budget models that align with
modular development
Develop supporting materials and guidance for flexible IT budget
models
Work with Congress to scale flexible IT budget models more broadly
Work with Congress to consolidate commodity IT spending under
Agency CIO
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24. Look Familiar?
Different Sources of Projects OMB - 300
Federal CIO Initiative
CIO Initiative
LOB needs
Legislative
• The Budget cycle is built based on horizon of predictability
• The Budget categories reinforce long stage-gated development cycles
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25. Agile Budgeting Is Easier
Because Scope is a Negotiation or Highest Value and Cost/Schedule
are fixed…
Budgeting is just about how many resources will be funded for the current
fiscal year
Most Enhancement/Maintenance contracts are already funded this way
For Net New Capabilities Development or System Conversions, budget can be
fixed and incrementally funded each progress iteration
When the Initial Operational Capability (IOC) is achieved, go/no go for
additional funding can be used to cut off spending on “frills” and that 40% of
functions that are RARELY or NEVER USED.
Earned Value Is REAL and Tangible: Every iteration can be valuated
based on mission capability delivered, and either it was delivered or it
wasn’t. Period.
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26. Effect of Agile Budgeting on the IT Spending Cost Curve
2.5
2
1.5
Development
Enhancements
1
Maintenance
Log. (Enhancements)
0.5
0
BY BY+1 BY+2 BY+3
-0.5
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27. Beyond Budgeting Principles
Enabling a Continuous Adaptive Process
Beyond Budgeting: How Managers Can Break Free from the Annual Performance Trap by Jeremy Hope and Robin Frasier
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28. An Even More “Agile” Acquisition Process
Combined Acquisition Lifecycle
IOC Release 2 Release 3 Release 4 Maintenance
JAD
It 1 It 2 It 3 It 4 It 5 It 6 It 7 It 8 It 9 It 10 It 11 It 12
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29. Challenges Implementing Agile Budgeting
Contracts, Contracts, Contracts
Legislation, Regulation, Policy and Procedures
Culture of “use it or lose it”
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30. What’s Required
Congressional Support for Acquisition Regulation Changes
Education of the Entire Federal Contracting Officer Labor Pool
Education of the Entire Federal Contractor Community
Changes to the Mission Needs Identification and Requirements
Development process
And by extension… changes to the budgeting lifecycle and OMB planning
guidance
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31. QUESTIONS?
Devin B. Hedge Manoj Vadakkan
Devin@devinhedge.com manoj@vadakkan.org
Agile.devinhedge.com manoj.vadakkan.org
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32. THANK YOU!
Devin B. Hedge Manoj Vadakkan
Devin@devinhedge.com manoj@vadakkan.org
Agile.devinhedge.com manoj.vadakkan.org
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