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1Copyright © 2014, Innolution, LLC. All Rights Reserved.
Economically Sensible Scrum
Scrum Gathering Keynote
New Orleans, LA
May 5, 2014
by Ken Rubin
2Copyright © 2014, Innolution, LLC. All Rights Reserved.
Background of Ken RubinAuthorTrainer
Coach
Exp
Trained more than
20,000 people
Coach developers
and executives
1st Managing
Director
1st Scrum project
was in 2000 for
bioinformatics
3Copyright © 2014, Innolution, LLC. All Rights Reserved.
4
Restaurant analogy takeaways
Copyright © 2014, Innolution, LLC. All Rights Reserved.
Restaurant and manger failed to grasp fundamental
principles of running long-term profitable restaurant
chain
Failed to evaluate specific actions in the context of an
economic framework based on those principles
Many organizations do good team-level Scrum, yet
don’t get desired business results because they fail
to grasp the fundamental principles that underlie
Scrum and how those principles should be used in
an economically sensible way
5
90 minutes from now…
Copyright © 2014, Innolution, LLC. All Rights Reserved.
You will walk out of here knowing the
three principal inhibitors to
organizational success with Scrum…
And how to use Economically Sensible
Scrum to address them
6
Scrum framework
Copyright © 2014, Innolution, LLC. All Rights Reserved.
Art available at: http://www.innolution.com/resources
Scrum isn’t sufficient for success,
Economically Sensible Scrum is
7Copyright © 2014, Innolution, LLC. All Rights Reserved.
8
Approaches
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9
ScrumBut(t) – violations of the
Scrum framework
Copyright © 2014, Innolution, LLC. All Rights Reserved.
We do Scrum, but…
Sprints are 8 weeks
No product owner
Daily scrums on M-W-F
Sprint planning is 2 days
Etc…
10
What if there are no Scrum
“violations?”
Copyright © 2014, Innolution, LLC. All Rights Reserved.
VIOLATION
YOUR USE OF SCRUM VIOLATES A
CORE PRACTICE AND IS HEREBY
DEEMED TO BE A SCRUMBUT
YOUR TEAM PHOTO HAS BEEN RECORDED
Do no violations = success with Scrum?
11
Three inhibitors to success using
Scrum
Copyright © 2014, Innolution, LLC. All Rights Reserved.
Ignorance or misapplication of core agile principles
during development
Failure to apply agile principles throughout the
value chain
Failure to structure teams in an economically
sensible way
Overall, not applying core agile principles in an
economically sensible way
12
Agile principles provide context for
inspecting & adapting
Copyright © 2014, Innolution, LLC. All Rights Reserved.
People who apply Scrum without understanding its
underlying principles lack the necessary context to
understand why they are doing things and when and
how best to inspect and adapt their approaches
13
Agile principles make
organizations robust & antifragile
Copyright © 2014, Innolution, LLC. All Rights Reserved.
Fragile
Harmed by
disorder
Robust
Resilient to
disorder
Antifragile
Benefits from
disorder
AgileWaterfall
Embracing Agile principles makes
the development process and
organization robust and at times
antifragile to the disorder of
uncertain events, avoiding harm
and reaping benefits of uncertainty
14
Economically sensible scrum
Copyright © 2014, Innolution, LLC. All Rights Reserved.
15
Economics – universal language of
product development
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16
We need an economic framework
Copyright © 2014, Innolution, LLC. All Rights Reserved.
Based on Reinertsen “The Principles of Product Development Flow: Second Generation Lean Product Development”
17
Example: waste
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Waste 1 Waste 2 Waste 3 Waste 4
Multiple forms
of waste
Waste 1 Waste 2 Waste 3 Waste 4
Can’t eliminate
them all
Waste 1 Waste 2 Waste 3 Waste 4
$ $$$$ $$ $$$
Determine which
cause most
economic damage
18
Example: cost of delay
Copyright © 2014, Innolution, LLC. All Rights Reserved.
Lead time
Variability
Money
Lead time
If you have to wait 3 weeks for the UX team to
design your UIs, and that delay could be
eliminated by having a UX designer on your team,
what would be the cost of the UX-team delay (in
lifecycle profits)?
19Copyright © 2014, Innolution, LLC. All Rights Reserved.
Ignorance or
Misapplication of
Core Agile
Principles During
Development
20
Misunderstanding of when change
occurs
Copyright © 2014, Innolution, LLC. All Rights Reserved.
We like Scrum,
because we can
make changes
anytime we want!
Holly *?&! they
can’t just change
things whenever
they want!
21
Economically sensible change
Copyright © 2014, Innolution, LLC. All Rights Reserved.
22
Misunderstanding of just-in-time
Copyright © 2014, Innolution, LLC. All Rights Reserved.
Holly *?&! This
sounds like total
chaos!!!
With Scrum we
do everything
just-in-time!
23
Balance up front predictive with
adaptive just in time
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24
Recognize inventory (WIP) waste
Copyright © 2014, Innolution, LLC. All Rights Reserved.
Manufacturing inventory
is both physically and
financially visible
Product-development inventory
is knowledge assets that are
physically and financially
invisible
25
Focus on Idle Work Not Idle
Workers
Watch the Baton Not the Runners
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26
Fast, flexible flow
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27
Economically sensible planning
Copyright © 2014, Innolution, LLC. All Rights Reserved.
28Copyright © 2014, Innolution, LLC. All Rights Reserved.
Failure to Apply
Scrum Principles
Throughout the
Value Chain
29
Example value chain
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30
Downstream misaligned
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31
Do Agile Here
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Internal management misaligned
Develop in an Agile way, but still provide all of the
same plan-driven artifacts (e.g., extensive up-front
requirements, full budget, and precise schedule)
like before to get the project approved
32
Sales Misaligned
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33
Portfolio planning misaligned
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34
Partners misaligned
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Fixed
FixedFixed
Contract
35
Protection of the fiefdoms
Copyright © 2014, Innolution, LLC. All Rights Reserved.
Sure, we can do
Scrum, as long as
I don’t have to
change anything in
my group!
George’s
Group
Me too!
Me too!
Me too!
Me too!
36
Failure to see the whole
Copyright © 2014, Innolution, LLC. All Rights Reserved.
Optimizing locally frequently sub-
optimizes the system
37Copyright © 2014, Innolution, LLC. All Rights Reserved.
Failure to
Structure Teams
in an Economically
Sensible Way
38
Economically sensible teaming
Copyright © 2014, Innolution, LLC. All Rights Reserved.
Reduce multitasking
Scaling teams based on economics, not dogma
Embrace T-shaped skills
Create and maintain long-lived teams
39
Reduce the amount of multitasking
Copyright © 2014, Innolution, LLC. All Rights Reserved.
Not about keeping people busy
40Copyright © 2014, Innolution, LLC. All Rights Reserved.
Cost of multitasking
Clark and Wheelwright (1992) studied multi-tasking and
determined that when working on more than two projects,
a person’s time spent on value-adding work drops rapidly
41
Teams with T-Shaped skills
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42
Team longevity
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Product 1 PB 1 Feature Team A
Product 2 PB 2 Feature Team A
?
43
Economics favor long-lived teams
Copyright © 2014, Innolution, LLC. All Rights Reserved.
More productive than newly
formed groups
Team familiarity can
positively impact efficiency
and quality of team output
Has a shared velocity and
estimating history that can
be used during planning
Have established trust and
team identity and integrity
44
Scaling with multiple teams
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As the scope of work gets
larger and one team is no
longer sufficient, what is your
scaling strategy?
45
Discipline teams
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46
Location teams
Copyright © 2014, Innolution, LLC. All Rights Reserved.
New York Mumbai
New York Mumbai
Deliberately
Distributed
Teams Team 2
Team 1
Team 1 Team 2
Coordinating
Collocated
Teams
47
Architectural layer teams
Copyright © 2014, Innolution, LLC. All Rights Reserved.
GUI
Middle Tier
Database
48
Component teams
Copyright © 2014, Innolution, LLC. All Rights Reserved.
Example component: Routing algorithms
(component) inside of a GPS
49
Feature teams
Copyright © 2014, Innolution, LLC. All Rights Reserved.
50
Feature
Example feature team working on
end-customer feature
Copyright © 2014, Innolution, LLC. All Rights Reserved.
51
Feature team tasks
Copyright © 2014, Innolution, LLC. All Rights Reserved.
52
(This looks like a feature)
(GUI Team) (Middle-tier Team) (Database Team)
Example “feature” to a component
team
Copyright © 2014, Innolution, LLC. All Rights Reserved.
53
Feature
That which is a feature to a component team is a task to a feature team
That which is a feature to a component
team is a task to a feature team
Copyright © 2014, Innolution, LLC. All Rights Reserved.
54
Don’t scale based on dogma!
Copyright © 2014, Innolution, LLC. All Rights Reserved.
Do you honestly think there is a single answer
to scaling that universally applies to all
situations (sizes and types of organizations)?
Everyone knows
feature teams
are better!
Nuts! Component
teams promote
conceptual
integrity & reuse!
55Copyright © 2014, Innolution, LLC. All Rights Reserved.
Component teams (single source)
56Copyright © 2014, Innolution, LLC. All Rights Reserved.
Component teams (multiple
sources)
57Copyright © 2014, Innolution, LLC. All Rights Reserved.
Combined feature & component
teams
58
Fast, flexible flow
Copyright © 2014, Innolution, LLC. All Rights Reserved.
59
Summary
Copyright © 2014, Innolution, LLC. All Rights Reserved.
Performing all Scrum practices...
using proven approaches…
Need to apply Scrum
on foundation of core agile principles
within an economic framework that
allows sensible tradeoffs
60
Visual AGILExicon®
Copyright © 2007-2014, Innolution, LLC. All Rights Reserved.
61
www.essentialscrum.com
Copyright © 2007 - 2014, Innolution, LLC. All Rights Reserved.
62Copyright © 2014, Innolution, LLC. All Rights Reserved.
Contact info for Ken Rubin
Email: krubin@innolution.com
Website: www.innolution.com
Phone: (303) 827-3333
LinkedIn: www.linkedin.com/in/kennethrubin
Twitter: www.twitter.com/krubinagile
Facebook: www.facebook.com/InnolutionLLC
Essential Scrum: A Practical
Guide to the Most Popular
Agile Process
www.essentialscrum.com
Comparative Agility Website www.comparativeagility.com

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Economically Sensible Scrum -- Scrum Gathering New Orleans 2014

  • 1. 1Copyright © 2014, Innolution, LLC. All Rights Reserved. Economically Sensible Scrum Scrum Gathering Keynote New Orleans, LA May 5, 2014 by Ken Rubin
  • 2. 2Copyright © 2014, Innolution, LLC. All Rights Reserved. Background of Ken RubinAuthorTrainer Coach Exp Trained more than 20,000 people Coach developers and executives 1st Managing Director 1st Scrum project was in 2000 for bioinformatics
  • 3. 3Copyright © 2014, Innolution, LLC. All Rights Reserved.
  • 4. 4 Restaurant analogy takeaways Copyright © 2014, Innolution, LLC. All Rights Reserved. Restaurant and manger failed to grasp fundamental principles of running long-term profitable restaurant chain Failed to evaluate specific actions in the context of an economic framework based on those principles Many organizations do good team-level Scrum, yet don’t get desired business results because they fail to grasp the fundamental principles that underlie Scrum and how those principles should be used in an economically sensible way
  • 5. 5 90 minutes from now… Copyright © 2014, Innolution, LLC. All Rights Reserved. You will walk out of here knowing the three principal inhibitors to organizational success with Scrum… And how to use Economically Sensible Scrum to address them
  • 6. 6 Scrum framework Copyright © 2014, Innolution, LLC. All Rights Reserved. Art available at: http://www.innolution.com/resources Scrum isn’t sufficient for success, Economically Sensible Scrum is
  • 7. 7Copyright © 2014, Innolution, LLC. All Rights Reserved.
  • 8. 8 Approaches Copyright © 2014, Innolution, LLC. All Rights Reserved.
  • 9. 9 ScrumBut(t) – violations of the Scrum framework Copyright © 2014, Innolution, LLC. All Rights Reserved. We do Scrum, but… Sprints are 8 weeks No product owner Daily scrums on M-W-F Sprint planning is 2 days Etc…
  • 10. 10 What if there are no Scrum “violations?” Copyright © 2014, Innolution, LLC. All Rights Reserved. VIOLATION YOUR USE OF SCRUM VIOLATES A CORE PRACTICE AND IS HEREBY DEEMED TO BE A SCRUMBUT YOUR TEAM PHOTO HAS BEEN RECORDED Do no violations = success with Scrum?
  • 11. 11 Three inhibitors to success using Scrum Copyright © 2014, Innolution, LLC. All Rights Reserved. Ignorance or misapplication of core agile principles during development Failure to apply agile principles throughout the value chain Failure to structure teams in an economically sensible way Overall, not applying core agile principles in an economically sensible way
  • 12. 12 Agile principles provide context for inspecting & adapting Copyright © 2014, Innolution, LLC. All Rights Reserved. People who apply Scrum without understanding its underlying principles lack the necessary context to understand why they are doing things and when and how best to inspect and adapt their approaches
  • 13. 13 Agile principles make organizations robust & antifragile Copyright © 2014, Innolution, LLC. All Rights Reserved. Fragile Harmed by disorder Robust Resilient to disorder Antifragile Benefits from disorder AgileWaterfall Embracing Agile principles makes the development process and organization robust and at times antifragile to the disorder of uncertain events, avoiding harm and reaping benefits of uncertainty
  • 14. 14 Economically sensible scrum Copyright © 2014, Innolution, LLC. All Rights Reserved.
  • 15. 15 Economics – universal language of product development Copyright © 2014, Innolution, LLC. All Rights Reserved.
  • 16. 16 We need an economic framework Copyright © 2014, Innolution, LLC. All Rights Reserved. Based on Reinertsen “The Principles of Product Development Flow: Second Generation Lean Product Development”
  • 17. 17 Example: waste Copyright © 2014, Innolution, LLC. All Rights Reserved. Waste 1 Waste 2 Waste 3 Waste 4 Multiple forms of waste Waste 1 Waste 2 Waste 3 Waste 4 Can’t eliminate them all Waste 1 Waste 2 Waste 3 Waste 4 $ $$$$ $$ $$$ Determine which cause most economic damage
  • 18. 18 Example: cost of delay Copyright © 2014, Innolution, LLC. All Rights Reserved. Lead time Variability Money Lead time If you have to wait 3 weeks for the UX team to design your UIs, and that delay could be eliminated by having a UX designer on your team, what would be the cost of the UX-team delay (in lifecycle profits)?
  • 19. 19Copyright © 2014, Innolution, LLC. All Rights Reserved. Ignorance or Misapplication of Core Agile Principles During Development
  • 20. 20 Misunderstanding of when change occurs Copyright © 2014, Innolution, LLC. All Rights Reserved. We like Scrum, because we can make changes anytime we want! Holly *?&! they can’t just change things whenever they want!
  • 21. 21 Economically sensible change Copyright © 2014, Innolution, LLC. All Rights Reserved.
  • 22. 22 Misunderstanding of just-in-time Copyright © 2014, Innolution, LLC. All Rights Reserved. Holly *?&! This sounds like total chaos!!! With Scrum we do everything just-in-time!
  • 23. 23 Balance up front predictive with adaptive just in time Copyright © 2014, Innolution, LLC. All Rights Reserved.
  • 24. 24 Recognize inventory (WIP) waste Copyright © 2014, Innolution, LLC. All Rights Reserved. Manufacturing inventory is both physically and financially visible Product-development inventory is knowledge assets that are physically and financially invisible
  • 25. 25 Focus on Idle Work Not Idle Workers Watch the Baton Not the Runners Copyright © 2014, Innolution, LLC. All Rights Reserved.
  • 26. 26 Fast, flexible flow Copyright © 2014, Innolution, LLC. All Rights Reserved.
  • 27. 27 Economically sensible planning Copyright © 2014, Innolution, LLC. All Rights Reserved.
  • 28. 28Copyright © 2014, Innolution, LLC. All Rights Reserved. Failure to Apply Scrum Principles Throughout the Value Chain
  • 29. 29 Example value chain Copyright © 2014, Innolution, LLC. All Rights Reserved.
  • 30. 30 Downstream misaligned Copyright © 2014, Innolution, LLC. All Rights Reserved.
  • 31. 31 Do Agile Here Copyright © 2014, Innolution, LLC. All Rights Reserved. Internal management misaligned Develop in an Agile way, but still provide all of the same plan-driven artifacts (e.g., extensive up-front requirements, full budget, and precise schedule) like before to get the project approved
  • 32. 32 Sales Misaligned Copyright © 2014, Innolution, LLC. All Rights Reserved.
  • 33. 33 Portfolio planning misaligned Copyright © 2014, Innolution, LLC. All Rights Reserved.
  • 34. 34 Partners misaligned Copyright © 2014, Innolution, LLC. All Rights Reserved. Fixed FixedFixed Contract
  • 35. 35 Protection of the fiefdoms Copyright © 2014, Innolution, LLC. All Rights Reserved. Sure, we can do Scrum, as long as I don’t have to change anything in my group! George’s Group Me too! Me too! Me too! Me too!
  • 36. 36 Failure to see the whole Copyright © 2014, Innolution, LLC. All Rights Reserved. Optimizing locally frequently sub- optimizes the system
  • 37. 37Copyright © 2014, Innolution, LLC. All Rights Reserved. Failure to Structure Teams in an Economically Sensible Way
  • 38. 38 Economically sensible teaming Copyright © 2014, Innolution, LLC. All Rights Reserved. Reduce multitasking Scaling teams based on economics, not dogma Embrace T-shaped skills Create and maintain long-lived teams
  • 39. 39 Reduce the amount of multitasking Copyright © 2014, Innolution, LLC. All Rights Reserved. Not about keeping people busy
  • 40. 40Copyright © 2014, Innolution, LLC. All Rights Reserved. Cost of multitasking Clark and Wheelwright (1992) studied multi-tasking and determined that when working on more than two projects, a person’s time spent on value-adding work drops rapidly
  • 41. 41 Teams with T-Shaped skills Copyright © 2014, Innolution, LLC. All Rights Reserved.
  • 42. 42 Team longevity Copyright © 2014, Innolution, LLC. All Rights Reserved. Product 1 PB 1 Feature Team A Product 2 PB 2 Feature Team A ?
  • 43. 43 Economics favor long-lived teams Copyright © 2014, Innolution, LLC. All Rights Reserved. More productive than newly formed groups Team familiarity can positively impact efficiency and quality of team output Has a shared velocity and estimating history that can be used during planning Have established trust and team identity and integrity
  • 44. 44 Scaling with multiple teams Copyright © 2014, Innolution, LLC. All Rights Reserved. As the scope of work gets larger and one team is no longer sufficient, what is your scaling strategy?
  • 45. 45 Discipline teams Copyright © 2014, Innolution, LLC. All Rights Reserved.
  • 46. 46 Location teams Copyright © 2014, Innolution, LLC. All Rights Reserved. New York Mumbai New York Mumbai Deliberately Distributed Teams Team 2 Team 1 Team 1 Team 2 Coordinating Collocated Teams
  • 47. 47 Architectural layer teams Copyright © 2014, Innolution, LLC. All Rights Reserved. GUI Middle Tier Database
  • 48. 48 Component teams Copyright © 2014, Innolution, LLC. All Rights Reserved. Example component: Routing algorithms (component) inside of a GPS
  • 49. 49 Feature teams Copyright © 2014, Innolution, LLC. All Rights Reserved.
  • 50. 50 Feature Example feature team working on end-customer feature Copyright © 2014, Innolution, LLC. All Rights Reserved.
  • 51. 51 Feature team tasks Copyright © 2014, Innolution, LLC. All Rights Reserved.
  • 52. 52 (This looks like a feature) (GUI Team) (Middle-tier Team) (Database Team) Example “feature” to a component team Copyright © 2014, Innolution, LLC. All Rights Reserved.
  • 53. 53 Feature That which is a feature to a component team is a task to a feature team That which is a feature to a component team is a task to a feature team Copyright © 2014, Innolution, LLC. All Rights Reserved.
  • 54. 54 Don’t scale based on dogma! Copyright © 2014, Innolution, LLC. All Rights Reserved. Do you honestly think there is a single answer to scaling that universally applies to all situations (sizes and types of organizations)? Everyone knows feature teams are better! Nuts! Component teams promote conceptual integrity & reuse!
  • 55. 55Copyright © 2014, Innolution, LLC. All Rights Reserved. Component teams (single source)
  • 56. 56Copyright © 2014, Innolution, LLC. All Rights Reserved. Component teams (multiple sources)
  • 57. 57Copyright © 2014, Innolution, LLC. All Rights Reserved. Combined feature & component teams
  • 58. 58 Fast, flexible flow Copyright © 2014, Innolution, LLC. All Rights Reserved.
  • 59. 59 Summary Copyright © 2014, Innolution, LLC. All Rights Reserved. Performing all Scrum practices... using proven approaches… Need to apply Scrum on foundation of core agile principles within an economic framework that allows sensible tradeoffs
  • 60. 60 Visual AGILExicon® Copyright © 2007-2014, Innolution, LLC. All Rights Reserved.
  • 61. 61 www.essentialscrum.com Copyright © 2007 - 2014, Innolution, LLC. All Rights Reserved.
  • 62. 62Copyright © 2014, Innolution, LLC. All Rights Reserved. Contact info for Ken Rubin Email: krubin@innolution.com Website: www.innolution.com Phone: (303) 827-3333 LinkedIn: www.linkedin.com/in/kennethrubin Twitter: www.twitter.com/krubinagile Facebook: www.facebook.com/InnolutionLLC Essential Scrum: A Practical Guide to the Most Popular Agile Process www.essentialscrum.com Comparative Agility Website www.comparativeagility.com