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Value Driven Development – Principles
                   and Values
                    Keynote
                Tom Gilb, Norway
           Teacher, Author, Consultant

                  Dobrŷ den !


By Tom Gilb                                 Agilia Conference
Tom@gilb.com                                Brno, CZ, March 27
www.gilb.com                                2013
                                            9:10 to 9:55
                                            (45 mins.)

                                            These slides will be
                                            available Gilb.com
  27 March 2013      Agilia Brno & Y Soft   downloads, Slides
                                                          1
Summary




27 March 2013    Agilia Brno & Y Soft   2
no external Value delivery?
          not even a thought about Stakeholders?

                      It is all about YOU
“You, the developer, have become the center of the universe!”
                        <- Scott Ambler
Our highest priority is to satisfy the
                customer
  through early and continuous delivery
          of valuable software.


Working software is the primary measure of
                progress.
Agile Manifesto: A Decade +, What can we do better? – A rewrite
 The intent of Agile has always been to focus on
        delivering value to our stakeholders.
                        But,
 I think we need to be a lot more specific about
                  what this means,
                      because
 some people think it means „delivering bug free
             code to a user or customer‟,
    even if the stakeholder gets no real value!

By Tom Gilb                                                       Agilia Conference
Tom@gilb.com                                                      Brno, CZ, March 27
www.gilb.com                                                      2013
                                                                  9:10 to 9:55
                                                                  (45 mins.)

                                                                  These slides will be
                                                                  available Gilb.com
  27 March 2013                    Agilia Brno & Y Soft           downloads, Slides
                                                                                5
Gilb’s ‘Value Driven Planning’ Principles:
1. Critical Stakeholders determine the values

2. Values can and must be quantified

3. Values are supported by Value Architecture

4. Value levels are determined by timing, architecture effect, and
     resources

5. Value levels can differ for different scopes (where, who)

6. Value can be delivered early

7. Value can be locked in incrementally

8. New Values can be discovered (external news,       experience)

9. Values can be evaluated as a function of architecture (Impact
     Estimation)

10. Value delivery will attract resources.


 27 March 2013                Agilia Brno & Y Soft              6
Value Driven Planning
                       Principles
                       in Detail:
Published in www.agilerecord.com
2010 Part 1 and 2

• Value-Driven Development: Principles and Values
  – Agility is the Tool, Not the Master.
• http://www.gilb.com/tiki-download_file.php?fileId=431

• Part 2
• “Values for Value”
• http://www.gilb.com/tiki-download_file.php?fileId=436
 27 March 2013          Agilia Brno & Y Soft         7
1. Critical Stakeholders determine the values

Critical: “having a decisive or crucial
importance in the success or failure of
  something ” <-Dictionary
• The primary and prioritized values we
  need to deliver are determined by
    – analysis of the needs and values of
      stakeholders
          • stakeholders who can determine whether
            we succeed or fail.
• We cannot afford to satisfy other
  (less critical) levels,
          • at other times and places, yet.
    – Because that might undermine our
      ability to satisfy the more critical
      stakeholders –
          • and consequently threaten our overall
            project success.

 27 March 2013                        Agilia Brno & Y Soft   8
Stakeholder Map
                                                Identify your „40‟ stakeholders and their
                                                                  needs




                                                                                                                              Suzanne Robertson
                                                                                                                              & James Robertson




Copyright The Atlantic Systems Guild, Used with Kind Permission.

http://www.requirementsnetwork.com/sites/requirementsnetwork.com/files/Volere_Requirements-A_Socio_Technical_Discipline.pdf
Impact Estimation: Value-for-Money Delivery Table
Quantify Value for resources to prioritize next delivery steps




                                                            29.5 : 1
 27 March, 2013                  © Gilb.com                        Slide 10
1. Critical Stakeholders determine the values




         Do the
       important
        stuff first

27 March 2013           Agilia Brno & Y Soft          11
2. ‘Values’ can and must be quantified
• Values can, if you want, be
  expressed numerically.
   – With a defined scale of measure
   – with a deliverable level of
     performance
   – and with qualifier info [Where,
     When, If]
• Quantification is useful:
   – to clarify your own thoughts
   – to get real agreement to one clear
     idea
   – to allow for varied targets and
     constraints
   – to allow direct comparison with
     benchmarks
   – to put in Request for bids, bids and
     contracts
   – to manage project evolutionarily :
     track progress
   – as a basis for measurement and
     testing
   – to enable research on methods

   27 March 2013                Agilia Brno & Y Soft   12
•Figure 1: Real (NON-CONFIDENTIAL version) example of an initial draft of setting the objectives that
                                   engineering processes must meet.




27 March 2013                               Agilia Brno & Y Soft                                          13
2. ‘Values’ can and must be quantified


   Be
perfectly
  clear


27 March 2013                 Agilia Brno & Y Soft       14
3. Values are supported by Value Architecture



•    Value Architecture: defined as:
      – anything you implement
        with a view to satisfying
        stakeholder values.

•     Value Architecture:
      – includes product/system
        objectives
         • Which are a „design‟ for
            satisfying stakeholder
            values
      – Has a multitude of
        performance and cost
        impacts
      – can impact a given system
        differently, depending on
        what is in the system, or
        what gets put in later
      – Needs to try to maximize
        value delivered for
        resources used.

    27 March 2013                Agilia Brno & Y Soft          15
Code quality – ”green” week
                  Confirmit (2005) Norway
decided to design „ease of change‟ in, to a legacy system, in
   one-week delivery-cycles, per month, using „Evo‟ Agile
  „Refactoring to reduce technical debt‟ -> Re-Engineering
  •   In these ”green” weeks, some of the deliverables will be less visible for the end users, but more visible
      for our QA department.
      We manage code quality through an Impact Estimation table.
  •
                                                                           Speed
                                                                           Maintainability
                                                                           Nunit Tests
                                                                           PeerTests
                                                                           TestDirectorTests
                                                                           Robustness.Correctness
                                                                           Robustness.Boundary
                                                                           Conditions
                                                                           ResourceUsage.CPU
                                                                           Maintainability.DocCode
                                                                           SynchronizationStatus
3. Values are supported by Value Architecture




    •Design
      the
    value in


27 March 2013                Agilia Brno & Y Soft          17
4. Value levels are determined by timing, architecture
                     effect, and resources

Value levels: defined as:
     the degree of satisfaction of
       value needs.

Value level:
    – depends on when you observe
      the level
          • The environment, the people,
            other system performance
            characteristics (security, speed,
            usability)
    – depends on the current
      incremental power of particular
      value architecture components
    – depends on resources
      available both in development
      and operation

 27 March 2013                       Agilia Brno & Y Soft    18
Real example of Levels of Conditions for a requirement
                                            And some suggested architecture    Testability:
Testability:
Type: Software Quality Requirement.
Version: 20 Oct 2006-10-20                                                          Suggested Architecture
Status: Demo draft,
Stakeholder: {Operator, Tester}.
Ambition: Rapid-duration automatic testing of <critical complex tests>, with
extreme operator setup and initiation.                                              Design Hypothesis:
                                                                                    Tool Simulators,
Scale: the duration of a
                                                                                    Reverse Cracking Tool,
   defined [Volume] of testing,
  or a defined [Type],                                                              Generation of simulated
                                                                                    telemetry frames entirely
   by a defined [Skill Level] of system                                             in software,
operator,
   under defined [Operating                                                         Application specific
Conditions].                                                                        sophistication, for drilling

Goal [All Customer Use,                                                              Recorded mode
                                                                                    simulation by playing
Volume = 1,000,000 data items,                                                      back the dump file,
Type = WireXXXX Vs DXX,
Skill = First Time Novice,                                                          Application test harness
Operating Conditions = Field, {Sea Or                                               console
Desert}]
              <10 mins.                                                             Source: 6.2.1 HFA
4. Value levels are determined by timing, architecture
                    effect, and resources


The value you can
      deliver,
   depends on
       your
        design
   effectiveness and
                your
available resources

27 March 2013            Agilia Brno & Y Soft               20
5. Required Value levels can differ
                     for different scopes (where, who)

The level of value needed, and
 the level of value delivered -
 for a single attribute
 dimension (like Ease of Use)
 can vary for:
    – different stakeholders
    – at different times
          • (peak, holiday, slack,
            emergency, early
            implementation)
    – for different „locations‟
                 – countries, companies, industries
There is nothing simple like
 „one level for all‟
 27 March 2013                      Agilia Brno & Y Soft     21
Erieye Intuitiveness Requirement
        The Goal has 3 levels depending on Qualifier conditions
  INTUITIVE: USAB.INTUITIVENESS
  Ambition: High probability in % that operator will <immediately> within a specified
       time from deciding the need to perform the task (without reference to
       handbooks or help facility) find a way to accomplish their desired task.
  Scale: Probability that an <intuitive>, TRAINED operator will find a way to do
       whatever they need to do, without reference to any written instructions (i.e. on
       paper or on-line in the system, other than help or guidance instructions offered
       by the system on the screen during operation of the system) within 1 second of
       deciding that there is a necessity to perform the task. <-- MAB "I'm not sure if 1
       second is acceptable or realistic, it's just a guess"
  Meter: To be defined. Not crucial this 1st draft - TG
  Past        [GRAPES] 80% ?  LN
  Record [MAC] 99%?  TG
  Fail        [TRAINED, RARETASKS [{<1/week,<1/year}] ] 50 - 90%? MAB
   Goal       [TASKS DONE [<1/week (but more than 1/Month)]] 99% ? LN
              [TASKS DONE [<1/year]] 20% ? - JB
              [Turbulence, TASKS DONE [<1/year] ] 10% ? - TG


March 27, 2013                        © www.gilb.com                                   22
5. Required Value levels can differ
                for different scopes (where, who)


     The value you need
           depends
             on
            who
             and
            when
             and
           where
27 March 2013                Agilia Brno & Y Soft       23
6. Value can be delivered early

You do not have to wait until „the
  project is done‟ to deliver useful
  stakeholder value satisfaction.
You can intentionally target the
  highest priority stakeholders,
  and their highest priority value
  area, and levels.
   You can deliver them early and
     continuously
You can learn what is possible
   And what stakeholders really
     value.
      Discover new value ideas
      Discover new stakeholders
      Discover new levels of
        satisfaction
 27 March 2013            Agilia Brno & Y Soft     24
Value Added Paradigm

                               Value Added with Iterations




                               Project Cost

                                                      Value Added
                                                     without Iterations



               Project Start                                        Project End

Figure 1. Value Added by Iterative Delivery versus Non-iterative.
 Courtesy: Erik Simmons, Intel Oregon
6. Value can be delivered early


       Deliver
         the
       highest
        value
       earliest
27 March 2013            Agilia Brno & Y Soft     26
7. Value can be locked in incrementally


• You can increment the value
  satisfaction
    – towards longer term Goal levels
• You can spread the value deliveries
    – that are proven in some places,
    – more widely in the next increments
• This probably assumes that you
  have really handed over real results
  to real people.
    – Not just developed systems without
      delivery
 27 March 2013                 Agilia Brno & Y Soft        27
CONFIRMIT, Norway)
                        project step planning and accounting:
                         using an Impact Estimation Table
•   IET for MR Project – Confirmit 8.5
                                                                     Trond Johansen
•   This is end of Increment 9 (week 9 ) of Evo delivery to pilots
•   Before release to work at end of 12 week cycle.
•   The incremental value is locked in at each Evo step
Evo’s impact on Confirmit product qualities 1st Qtr
• Only 5 highlights of the 25 impacts are listed here




                       Release 8.5
                                          © Tom@Gilb.com www.gilb.com
7. Value can be locked in incrementally



               Prove
        real value delivery
               then
             Scale up
                and
            Spread out

27 March 2013                 Agilia Brno & Y Soft        30
8. New Values can be discovered
                    (external news, experience)

• Expect, and try to
  discover,
   – entirely new
     stakeholder values.
• These will of course
  emerge after you start
  delivering some
  satisfaction, because:
   – Stakeholders believe
     you can help
   – Things change
 27 March 2013              Agilia Brno & Y Soft   31
Experience: if top level requirements
                                             are separated from design, the
                                               „requirements‟ are stable!
•
•
      http://rsbatechnology.co.uk/blog:8
      Back in 2004, I was employed by a large investment bank in their FX e-commerce IT                     • “On the largest critical
      department as a business analyst.
•      The wider IT organisation used a complex waterfall-based project methodology that
      required use of an intranet application to manage and report progress.
                                                                                                              project,
•     However, it's main failings were that it almost totally missed the ability to track
      delivery of actual value improvements to a project's stakeholders, and the ability
      to react to changes in requirements and priority for the project's duration.                          • the original business
•     The toolset generated lots of charts and stats that provided the illusion of risk
      control. but actually provided very little help to the analysts, developers and testers
      actually doing the work at the coal face.                                                               functions & performance
•     The proof is in the pudding;

        –       I have used Evo             (albeit in disguise sometimes) on two large, high-risk
                                                                                                              objective requirements
                projects in front-office investment banking businesses, and several smaller tasks.
        –       On the largest critical project, the original business functions & performance

                      requirements document, which
                objective
                                                                                                              document,
                included no design, essentially remained
                unchanged over the 14 months the project took to deliver,
                                                                                                            • which included no
        –       but the detailed designs (of the GUI, business logic,                                         design,
                                               changed many many
                                                                                                            • essentially remained
                performance characteristics)

                times, guided by lessons learnt and feedback gained by delivering a succession
                of early deliveries to real users.
        –       In the end, the new system responsible for 10s of USD billions of notional risk,              unchanged
                successfully went live over over one
                weekend for 800 users worldwide, and                                                        • over the 14 months the
                was seen as a big success by the
                sponsoring stakeholders.
                                                                                                              project took to deliver,….”
    “ I attended a 3-day course with you and Kai whilst at Citigroup in 2006”, Richard Smith
27 March, 2013                                                                                       © Gilb.com                        32
Dynamic (Agile, Evo) design testing:
                                        not unlike ‘Lean Startup’
•      http://rsbatechnology.co.uk/blog:8
•      Back in 2004, I was employed by a large investment bank in their FX e-commerce IT

                                                                                                                     “… but the
                                                                                                                            detailed
       department as a business analyst.
•       The wider IT organisation used a complex waterfall-based project methodology that
       required use of an intranet application to manage and report progress.
                                                                                                               •
•
                                                                                                                     designs
       However, it's main failings were that it almost totally missed the ability to track
       delivery of actual value improvements to a project's stakeholders, and the ability to
       react to changes in requirements and priority for the project's duration.
•      The toolset generated lots of charts and stats that provided the illusion of risk control.
       but actually provided very little help to the analysts, developers and testers actually
       doing the work at the coal face.
                                                                                                                      – (of the GUI, business logic,
•      The proof is in the pudding;                                                                                     performance
         –        I haveused Evo             (albeit in disguise sometimes) on two large, high-risk projects
                                                                                                                        characteristics)
                 in front-office investment banking businesses, and several smaller tasks.
         –       On the largest critical project, the original business functions & performance objective

                 requirements document, which included no
                 design, essentially remained unchanged over
                 the 14 months the project took to deliver,
                                                                                                               • changed many
         –       but   the detailed designs (of the GUI, business logic, performance
                 characteristics)   changed many many times, guided by
                                                                                                                 many times,
                 lessons learnt and feedback gained by delivering a succession of early deliveries to real
                 users.                                                                                        •     guided by lessons learnt
         –        In the end, the new system responsible for 10s of USD billions of notional risk,

                 successfully went live over over one                                                          •     and feedback gained by
                 weekend for 800 users worldwide, and                                                          •     delivering a succession of early
                 was seen as a big success by the                                                                    deliveries
                 sponsoring stakeholders.
                                                                                                               •     to real users”
     “ I attended a 3-day course with you and Kai whilst at Citigroup in 2006”, Richard Smith
    27 March, 2013                                                                                      © Gilb.com                                      33
It looks like the stakeholders liked
                              the top level system qualities,
                                         on first try
•
•
    http://rsbatechnology.co.uk/blog:8
    Back in 2004, I was employed by a large investment bank in their FX e-commerce IT
                                                                                                                – “ In the end, the new
•
    department as a business analyst.
     The wider IT organisation used a complex waterfall-based project methodology that
                                                                                                                  system responsible for 10s
•
    required use of an intranet application to manage and report progress.
    However, it's main failings were that it almost totally missed the ability to track
                                                                                                                  of USD billions of notional
    delivery of actual value improvements to a project's stakeholders, and the ability
    to react to changes in requirements and priority for the project's duration.
                                                                                                                  risk,
•   The toolset generated lots of charts and stats that provided the illusion of risk
    control. but actually provided very little help to the analysts, developers and testers
    actually doing the work at the coal face.
                                                                                                                – successfully went
•   The proof is in the pudding;                                                                                  live
      –

      –
              I have used Evo             (albeit in disguise sometimes) on two large, high-risk
              projects in front-office investment banking businesses, and several smaller tasks.
              On the largest critical project, the original business functions & performance
                                                                                                                – over over one
                    requirements document, which
              objective                                                                                           weekend
              included no design, essentially remained
              unchanged over the 14 months the project took to deliver,                                         – for 800 users
      –       but the detailed designs (of the GUI, business logic,                                               worldwide    ,

              performance characteristics)   changed many many                                                  – and was seen as a
              times, guided by lessons learnt and feedback gained by delivering a succession
              of early deliveries to real users.                                                                  big success
                                                                                                                – by the sponsoring
                                                                                                                  stakeholders.”
“ I attended a 3-day course with you and Kai whilst at Citigroup in 2006” , Richard Smith
27 March, 2013                                                                                     © Gilb.com                               34
8. New Values can be discovered
                   (external news, experience)


Discovering new
stakeholders and
  requirements
    is endless
         but
     is always
 an improvement

27 March 2013              Agilia Brno & Y Soft   35
9. Values can be evaluated as a function of
                    architecture    (using ‘Impact Estimation’)

• It is possible to get an overview of
   –   the totality of impacts
   –    that your architecture
   –   (all designs and strategies)
   –    might have
   –    on all your defined stakeholder
       needs.


• Use an Impact Estimation table
  – and you will be able to spot                           See next slide
    opportunities for                                      For enlargement
         • high value and
         • low cost       early deliveries
               – by analyzing the numbers on the
                 table
   27 March 2013                    Agilia Brno & Y Soft                36
Strategy Impact Estimation:
                for a $100,000,000 Organizational Improvement Investment




    Defined
    In earlier slide




27 March 2013                         Agilia Brno & Y Soft                 37
9. Values can be evaluated as a function of
                 architecture    (using ‘Impact Estimation’)


     Most
  architecture
    impacts
     most
 requirements                                         See next slide
                                                      For enlargement




27 March 2013                  Agilia Brno & Y Soft                38
10. Value delivery will attract resources.


• If you are really good at
  delivering value
    – You can expect to attract
          • even more funding
    – Managers like
          • to be credited with success
    – Money seeks
          • best interest rates



 27 March 2013                Agilia Brno & Y Soft   39
Return On Investment at Raytheon
                     about $10,000 per programmer/year
         http://www.sei.cmu.edu/pub/documents/95.reports/pdf/tr017.95.pdf

                            9
                            8
                            7
                            6
                            5
                            4
                            3
                            2
                            1
                            0
                                Invested   Payback


    • ROI = $7.70 per $1 invested at Raytheon
    • Sell your improvement program to top management on this basis
    • “we got almost all corporate investment available,
      because we could show the best return on
      investment”


Wednesday, March 27, 2013                  Copyright Gilb@acm.org           40
Raytheon 95 Software Productivity 2.7X better

Productivity



                                                           +
                                                          170%




   1988                                       1994
Achieving Project Predictability: Raytheon
                          95
Cost At Completion / Budget %


  140%




  100%

                       1988     1990                        1994



                                                           SEE PPT NOTE FOR
                                                           DEFINITION.
    Wednesday, March 27, 2013     Copyright Gilb@acm.org                 42
10. Value delivery will attract resources.



    Deliver value
     Resources
    will find you


27 March 2013           Agilia Brno & Y Soft        43
Meet Brian Wernham: Our Next Speaker Today:         10:05
 His book is great on well-documented case studies in
    agile use of stakeholder analysis and value focus




                 See my detailed opinion in the foreword to this book
   http://www.amazon.com/Agile-Project-Management-Government-Wernham/dp/0957223404
27 March 2013                        Agilia Brno & Y Soft                        44
Last slide
• Ecstatic Stakeholder!


• PS Special free offer Agilia:
   – If you email me tom@gilb.com
   – Subject ‘Book’
   – I will send you my Competitive
     Engineering book digitally
   – And several Agile papers

 27 March 2013          Agilia Brno & Y Soft   45
• Extra Slides




27 March 2013    Agilia Brno & Y Soft   46
27 March 2013   Agilia Brno & Y Soft   47
27 March 2013   Agilia Brno & Y Soft   48
End of Lecture
• In practice after 40 minutes.
• The rest of the slides are for additional
  documentation




27 March 2013        Agilia Brno & Y Soft     49
Gilb’s Value Manifesto: A Management Policy?

1.   Really useful value, for real stakeholders will be
     defined measurably.
      No nice-sounding emotive words please.
2.   Value will be seen in light of total long term costs
      as a decent return on investment.
3.   Powerful management devices, like motivation and
     follow-up, will make sure that the value for money
     is really delivered –
      or that the failure is punished, and the success is
           rewarded.
4.   The value will be delivered evolutionarily –
      not all at the end.
5.   That is, we will create a stream of prioritized value
     delivery to stakeholders, at the beginning of our
     value delivery projects;
      and continue as long as the real return on
           investment is suitably large.
6.   The CEO is primarily responsible for making all
     this happen effectively.
      1. The CFO will be charged with tracking all
           value to cost progress.
      2. The CTO and CIO will be charged with
           formulating all their efforts in terms of
           measurable value for resources.

      Source “Value Delivery in Systems Engineering” available at www.gilb.com
      Unpublished paper          http://www.gilb.com/community/tiki-download_file.php?fileId=137
      27 March 2013                                                  Agilia Brno & Y Soft          50
The Value Delivery Problem

• Sponsors who order and pay for systems
  engineering projects, must justify their money
  spent based on the expected consequential
  effects (hereafter called ‘value’) of the systems.
•
• The value of the technical system is often
  expressed in presentation slides and
  requirements documents as a set of nice-
  sounding words, under various titles such as
  “System Objectives”, and “Business Problem
  Definition”

27 March 2013            Agilia Brno & Y Soft          51
Some Assertions
Assertion 1. When top management allows large projects to proceed, with such badly formulated primary
    objectives, then
      – they are responsible as managers for the outcome (failure).
      – They cannot plead ignorance.

Assertion 2. The failure of technical staff (project management) to react to the lack of primary objective
    formulation by top management is also a total failure to do reasonable systems engineering.
      – Management might have a poor requirements culture, but we should routinely save them from
         themselves.

Assertion 3. Both top managers and project personnel can be trained and motivated to clarify and quantify
    critical objectives routinely.
      – But until the poor external culture of education and practice changes, it may take strong CEO action
          to make this happen in your corporation.
      – My experience is that no one else will fight for this.

Assertion 4. All top level system performance improvements, are by definition, variables.
      – So, we can expect to define them quantitatively.
      – We can also expect to be able to measure or test the current level of performance.
      – Words like ‘enhanced’, ‘reduced’, ‘improved’ are not serious systems engineering requirements
         terms.
  27 March 2013                                Agilia Brno & Y Soft                                      52
THESE ARE SAME PRINCIPLES AND VALUES

• BUT WITH NO DETAILED TEXT FOR EACH AND
  NO GILB EXAMPLES

• FOR USE WHEN LITTLE TIME AND NOT TOO
  DEMANDING AUDIENCE




27 March 2013    Agilia Brno & Y Soft      53
Gilb’s Ten Key Agile Principles
                  to avoid bureaucracy and give creative freedom (Summary)

Control projects by quantified critical-few results. 1 Page total !
                    (not stories, functions, features, use cases, objects, ..)
Make sure those results are business results, not technical
             Align your project with your financial sponsor‟s interests!



     Give developers freedom, to find out how to deliver those results
Estimate the impacts of your designs, on your quantified goals
Select designs with the best impacts for their costs, do them first.
Decompose the workflow, into weekly (or 2% of budget) time boxes
Change designs, based on quantified experience of implementation
Change requirements, based on quantified experience, new inputs
Involve the stakeholders, every week, in setting quantified goals
Involve the stakeholders, every week, in actually using increments


                                     Copyright 2004-8 Gilb, may be used citing source
  27 March 2013                                    Agilia Brno & Y Soft                 54
Gilb’s Ten Key Agile Principles (Sum)
                 to avoid bureaucracy and give creative freedom

Main Idea:
      Get early and frequent real stakeholder net value delivered




 27 March 2013                    Agilia Brno & Y Soft            55
Control projects by quantified
         critical-few results. 1 Page total !
                (not stories, functions, features, use cases, objects, ..)




27 March 2013                          Agilia Brno & Y Soft                  56
Make sure those results are
                business results, not technical
                Align your project with your financial sponsor‟s interests!




27 March 2013                               Agilia Brno & Y Soft              57
Give developers freedom,
                      to find out how
                  to deliver those results




27 March 2013            Agilia Brno & Y Soft   58
Estimate the impacts of your designs,
                on your quantified goals




27 March 2013          Agilia Brno & Y Soft   59
Select designs with the best impacts
                       for their costs,
                        do them first.




27 March 2013            Agilia Brno & Y Soft     60
Decompose the workflow,
           into weekly (or 2% of budget) time boxes




27 March 2013            Agilia Brno & Y Soft     61
Change designs,
                               based on
                quantified experience of implementation




27 March 2013                Agilia Brno & Y Soft         62
Change requirements,
                based on quantified experience,
                          new inputs




27 March 2013             Agilia Brno & Y Soft    63
Involve the stakeholders,
                        every week,
                 in setting quantified goals




27 March 2013            Agilia Brno & Y Soft   64
Involve the stakeholders,
                        every week,
                in actually using increments




27 March 2013            Agilia Brno & Y Soft   65
My 10 Agile Values? (Summary)
•   Simplicity
      – 1. Focus on real stakeholder values
•   Communication
      – 2. Communicate stakeholder values quantitatively
      – 3. Estimate expected results and costs for weekly steps
•   Feedback
      – 4. Generate results, weekly, for stakeholders, in their environment
      – 5. Measure all critical aspects of the improved results cycle.
      – 6. Analyze deviation from your initial estimates
•   Courage
      – 7. Change plans to reflect weekly learning
      – 8. Immediately implement valued stakeholder needs, next week
            • Don’t wait, don’t study (analysis paralysis), don’t make excuses.
            • Just Do It!
      – 9. Tell stakeholders exactly what you will deliver next week
      – 10. Use any design, strategy, method, process that works quantitatively well - to get your
        results
            • Be a systems engineer, not a just programmer (a ‘Softcrafter’).
            • Do not be limited by your craft background, in serving your paymasters



    27 March 2013                                 Agilia Brno & Y Soft                           66
My 10 Agile Values? (Detail)
•   Simplicity
•   Communication
•   Feedback
•   Courage




    27 March 2013      Agilia Brno & Y Soft   67
Simplicity

      – 1. Focus on real stakeholder values




27 March 2013          Agilia Brno & Y Soft   68
Communication

      – 2. Communicate stakeholder values
        quantitatively




27 March 2013         Agilia Brno & Y Soft   69
Estimate Often
• 3. Estimate expected results and costs for
  weekly steps




27 March 2013       Agilia Brno & Y Soft       70
Feedback
      – 4. Generate results, weekly, for
        stakeholders, in their environment




27 March 2013          Agilia Brno & Y Soft   71
Measure Critical Stuff

• 5. Measure all critical aspects of the
  improved results cycle.




27 March 2013          Agilia Brno & Y Soft   72
Learn from Deviations
• 6. Analyze deviation from your initial
  estimates




27 March 2013          Agilia Brno & Y Soft   73
Courage

      – 7. Change plans to reflect weekly learning




27 March 2013          Agilia Brno & Y Soft          74
Deliver Value Now

• 8. Immediately implement valued
  stakeholder needs, next week
            • Don’t wait, don’t study (analysis
              paralysis), don’t make excuses.
            • Just Do It!




27 March 2013              Agilia Brno & Y Soft   75
Tell Stakeholders What’s next
• 9. Tell stakeholders exactly what you will
  deliver next week




27 March 2013              Agilia Brno & Y Soft   76
If it works, do it!
• 10. Use any design, strategy, method,
  process that works quantitatively
  well - to get your results
      • Be a systems engineer, not a just
        programmer (a ‘Softcrafter’).
      • Do not be limited by your craft
        background, in serving your
        paymasters


27 March 2013         Agilia Brno & Y Soft   77
Last slide
• Ecstatic Stakeholder!


• PS Special free offer Agilia:
   – If you email me tom@gilb.com
   – Subject ‘Book’
   – I will send you my Competitive
     Engineering book digitally
   – And several Agile papers

 27 March 2013          Agilia Brno & Y Soft   78

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Gilbs agile principles and values agilia conf keynote brno cz march 27 2013

  • 1. Value Driven Development – Principles and Values Keynote Tom Gilb, Norway Teacher, Author, Consultant Dobrŷ den ! By Tom Gilb Agilia Conference Tom@gilb.com Brno, CZ, March 27 www.gilb.com 2013 9:10 to 9:55 (45 mins.) These slides will be available Gilb.com 27 March 2013 Agilia Brno & Y Soft downloads, Slides 1
  • 2. Summary 27 March 2013 Agilia Brno & Y Soft 2
  • 3. no external Value delivery? not even a thought about Stakeholders? It is all about YOU “You, the developer, have become the center of the universe!” <- Scott Ambler
  • 4. Our highest priority is to satisfy the customer through early and continuous delivery of valuable software. Working software is the primary measure of progress.
  • 5. Agile Manifesto: A Decade +, What can we do better? – A rewrite The intent of Agile has always been to focus on delivering value to our stakeholders. But, I think we need to be a lot more specific about what this means, because some people think it means „delivering bug free code to a user or customer‟, even if the stakeholder gets no real value! By Tom Gilb Agilia Conference Tom@gilb.com Brno, CZ, March 27 www.gilb.com 2013 9:10 to 9:55 (45 mins.) These slides will be available Gilb.com 27 March 2013 Agilia Brno & Y Soft downloads, Slides 5
  • 6. Gilb’s ‘Value Driven Planning’ Principles: 1. Critical Stakeholders determine the values 2. Values can and must be quantified 3. Values are supported by Value Architecture 4. Value levels are determined by timing, architecture effect, and resources 5. Value levels can differ for different scopes (where, who) 6. Value can be delivered early 7. Value can be locked in incrementally 8. New Values can be discovered (external news, experience) 9. Values can be evaluated as a function of architecture (Impact Estimation) 10. Value delivery will attract resources. 27 March 2013 Agilia Brno & Y Soft 6
  • 7. Value Driven Planning Principles in Detail: Published in www.agilerecord.com 2010 Part 1 and 2 • Value-Driven Development: Principles and Values – Agility is the Tool, Not the Master. • http://www.gilb.com/tiki-download_file.php?fileId=431 • Part 2 • “Values for Value” • http://www.gilb.com/tiki-download_file.php?fileId=436 27 March 2013 Agilia Brno & Y Soft 7
  • 8. 1. Critical Stakeholders determine the values Critical: “having a decisive or crucial importance in the success or failure of something ” <-Dictionary • The primary and prioritized values we need to deliver are determined by – analysis of the needs and values of stakeholders • stakeholders who can determine whether we succeed or fail. • We cannot afford to satisfy other (less critical) levels, • at other times and places, yet. – Because that might undermine our ability to satisfy the more critical stakeholders – • and consequently threaten our overall project success. 27 March 2013 Agilia Brno & Y Soft 8
  • 9. Stakeholder Map Identify your „40‟ stakeholders and their needs Suzanne Robertson & James Robertson Copyright The Atlantic Systems Guild, Used with Kind Permission. http://www.requirementsnetwork.com/sites/requirementsnetwork.com/files/Volere_Requirements-A_Socio_Technical_Discipline.pdf
  • 10. Impact Estimation: Value-for-Money Delivery Table Quantify Value for resources to prioritize next delivery steps 29.5 : 1 27 March, 2013 © Gilb.com Slide 10
  • 11. 1. Critical Stakeholders determine the values Do the important stuff first 27 March 2013 Agilia Brno & Y Soft 11
  • 12. 2. ‘Values’ can and must be quantified • Values can, if you want, be expressed numerically. – With a defined scale of measure – with a deliverable level of performance – and with qualifier info [Where, When, If] • Quantification is useful: – to clarify your own thoughts – to get real agreement to one clear idea – to allow for varied targets and constraints – to allow direct comparison with benchmarks – to put in Request for bids, bids and contracts – to manage project evolutionarily : track progress – as a basis for measurement and testing – to enable research on methods 27 March 2013 Agilia Brno & Y Soft 12
  • 13. •Figure 1: Real (NON-CONFIDENTIAL version) example of an initial draft of setting the objectives that engineering processes must meet. 27 March 2013 Agilia Brno & Y Soft 13
  • 14. 2. ‘Values’ can and must be quantified Be perfectly clear 27 March 2013 Agilia Brno & Y Soft 14
  • 15. 3. Values are supported by Value Architecture • Value Architecture: defined as: – anything you implement with a view to satisfying stakeholder values. • Value Architecture: – includes product/system objectives • Which are a „design‟ for satisfying stakeholder values – Has a multitude of performance and cost impacts – can impact a given system differently, depending on what is in the system, or what gets put in later – Needs to try to maximize value delivered for resources used. 27 March 2013 Agilia Brno & Y Soft 15
  • 16. Code quality – ”green” week Confirmit (2005) Norway decided to design „ease of change‟ in, to a legacy system, in one-week delivery-cycles, per month, using „Evo‟ Agile „Refactoring to reduce technical debt‟ -> Re-Engineering • In these ”green” weeks, some of the deliverables will be less visible for the end users, but more visible for our QA department. We manage code quality through an Impact Estimation table. • Speed Maintainability Nunit Tests PeerTests TestDirectorTests Robustness.Correctness Robustness.Boundary Conditions ResourceUsage.CPU Maintainability.DocCode SynchronizationStatus
  • 17. 3. Values are supported by Value Architecture •Design the value in 27 March 2013 Agilia Brno & Y Soft 17
  • 18. 4. Value levels are determined by timing, architecture effect, and resources Value levels: defined as: the degree of satisfaction of value needs. Value level: – depends on when you observe the level • The environment, the people, other system performance characteristics (security, speed, usability) – depends on the current incremental power of particular value architecture components – depends on resources available both in development and operation 27 March 2013 Agilia Brno & Y Soft 18
  • 19. Real example of Levels of Conditions for a requirement And some suggested architecture Testability: Testability: Type: Software Quality Requirement. Version: 20 Oct 2006-10-20 Suggested Architecture Status: Demo draft, Stakeholder: {Operator, Tester}. Ambition: Rapid-duration automatic testing of <critical complex tests>, with extreme operator setup and initiation. Design Hypothesis: Tool Simulators, Scale: the duration of a Reverse Cracking Tool, defined [Volume] of testing, or a defined [Type], Generation of simulated telemetry frames entirely by a defined [Skill Level] of system in software, operator, under defined [Operating Application specific Conditions]. sophistication, for drilling Goal [All Customer Use, Recorded mode simulation by playing Volume = 1,000,000 data items, back the dump file, Type = WireXXXX Vs DXX, Skill = First Time Novice, Application test harness Operating Conditions = Field, {Sea Or console Desert}] <10 mins. Source: 6.2.1 HFA
  • 20. 4. Value levels are determined by timing, architecture effect, and resources The value you can deliver, depends on your design effectiveness and your available resources 27 March 2013 Agilia Brno & Y Soft 20
  • 21. 5. Required Value levels can differ for different scopes (where, who) The level of value needed, and the level of value delivered - for a single attribute dimension (like Ease of Use) can vary for: – different stakeholders – at different times • (peak, holiday, slack, emergency, early implementation) – for different „locations‟ – countries, companies, industries There is nothing simple like „one level for all‟ 27 March 2013 Agilia Brno & Y Soft 21
  • 22. Erieye Intuitiveness Requirement The Goal has 3 levels depending on Qualifier conditions INTUITIVE: USAB.INTUITIVENESS Ambition: High probability in % that operator will <immediately> within a specified time from deciding the need to perform the task (without reference to handbooks or help facility) find a way to accomplish their desired task. Scale: Probability that an <intuitive>, TRAINED operator will find a way to do whatever they need to do, without reference to any written instructions (i.e. on paper or on-line in the system, other than help or guidance instructions offered by the system on the screen during operation of the system) within 1 second of deciding that there is a necessity to perform the task. <-- MAB "I'm not sure if 1 second is acceptable or realistic, it's just a guess" Meter: To be defined. Not crucial this 1st draft - TG Past [GRAPES] 80% ?  LN Record [MAC] 99%?  TG Fail [TRAINED, RARETASKS [{<1/week,<1/year}] ] 50 - 90%? MAB Goal [TASKS DONE [<1/week (but more than 1/Month)]] 99% ? LN [TASKS DONE [<1/year]] 20% ? - JB [Turbulence, TASKS DONE [<1/year] ] 10% ? - TG March 27, 2013 © www.gilb.com 22
  • 23. 5. Required Value levels can differ for different scopes (where, who) The value you need depends on who and when and where 27 March 2013 Agilia Brno & Y Soft 23
  • 24. 6. Value can be delivered early You do not have to wait until „the project is done‟ to deliver useful stakeholder value satisfaction. You can intentionally target the highest priority stakeholders, and their highest priority value area, and levels. You can deliver them early and continuously You can learn what is possible And what stakeholders really value. Discover new value ideas Discover new stakeholders Discover new levels of satisfaction 27 March 2013 Agilia Brno & Y Soft 24
  • 25. Value Added Paradigm Value Added with Iterations Project Cost Value Added without Iterations Project Start Project End Figure 1. Value Added by Iterative Delivery versus Non-iterative. Courtesy: Erik Simmons, Intel Oregon
  • 26. 6. Value can be delivered early Deliver the highest value earliest 27 March 2013 Agilia Brno & Y Soft 26
  • 27. 7. Value can be locked in incrementally • You can increment the value satisfaction – towards longer term Goal levels • You can spread the value deliveries – that are proven in some places, – more widely in the next increments • This probably assumes that you have really handed over real results to real people. – Not just developed systems without delivery 27 March 2013 Agilia Brno & Y Soft 27
  • 28. CONFIRMIT, Norway) project step planning and accounting: using an Impact Estimation Table • IET for MR Project – Confirmit 8.5 Trond Johansen • This is end of Increment 9 (week 9 ) of Evo delivery to pilots • Before release to work at end of 12 week cycle. • The incremental value is locked in at each Evo step
  • 29. Evo’s impact on Confirmit product qualities 1st Qtr • Only 5 highlights of the 25 impacts are listed here Release 8.5 © Tom@Gilb.com www.gilb.com
  • 30. 7. Value can be locked in incrementally Prove real value delivery then Scale up and Spread out 27 March 2013 Agilia Brno & Y Soft 30
  • 31. 8. New Values can be discovered (external news, experience) • Expect, and try to discover, – entirely new stakeholder values. • These will of course emerge after you start delivering some satisfaction, because: – Stakeholders believe you can help – Things change 27 March 2013 Agilia Brno & Y Soft 31
  • 32. Experience: if top level requirements are separated from design, the „requirements‟ are stable! • • http://rsbatechnology.co.uk/blog:8 Back in 2004, I was employed by a large investment bank in their FX e-commerce IT • “On the largest critical department as a business analyst. • The wider IT organisation used a complex waterfall-based project methodology that required use of an intranet application to manage and report progress. project, • However, it's main failings were that it almost totally missed the ability to track delivery of actual value improvements to a project's stakeholders, and the ability to react to changes in requirements and priority for the project's duration. • the original business • The toolset generated lots of charts and stats that provided the illusion of risk control. but actually provided very little help to the analysts, developers and testers actually doing the work at the coal face. functions & performance • The proof is in the pudding; – I have used Evo (albeit in disguise sometimes) on two large, high-risk objective requirements projects in front-office investment banking businesses, and several smaller tasks. – On the largest critical project, the original business functions & performance requirements document, which objective document, included no design, essentially remained unchanged over the 14 months the project took to deliver, • which included no – but the detailed designs (of the GUI, business logic, design, changed many many • essentially remained performance characteristics) times, guided by lessons learnt and feedback gained by delivering a succession of early deliveries to real users. – In the end, the new system responsible for 10s of USD billions of notional risk, unchanged successfully went live over over one weekend for 800 users worldwide, and • over the 14 months the was seen as a big success by the sponsoring stakeholders. project took to deliver,….” “ I attended a 3-day course with you and Kai whilst at Citigroup in 2006”, Richard Smith 27 March, 2013 © Gilb.com 32
  • 33. Dynamic (Agile, Evo) design testing: not unlike ‘Lean Startup’ • http://rsbatechnology.co.uk/blog:8 • Back in 2004, I was employed by a large investment bank in their FX e-commerce IT “… but the detailed department as a business analyst. • The wider IT organisation used a complex waterfall-based project methodology that required use of an intranet application to manage and report progress. • • designs However, it's main failings were that it almost totally missed the ability to track delivery of actual value improvements to a project's stakeholders, and the ability to react to changes in requirements and priority for the project's duration. • The toolset generated lots of charts and stats that provided the illusion of risk control. but actually provided very little help to the analysts, developers and testers actually doing the work at the coal face. – (of the GUI, business logic, • The proof is in the pudding; performance – I haveused Evo (albeit in disguise sometimes) on two large, high-risk projects characteristics) in front-office investment banking businesses, and several smaller tasks. – On the largest critical project, the original business functions & performance objective requirements document, which included no design, essentially remained unchanged over the 14 months the project took to deliver, • changed many – but the detailed designs (of the GUI, business logic, performance characteristics) changed many many times, guided by many times, lessons learnt and feedback gained by delivering a succession of early deliveries to real users. • guided by lessons learnt – In the end, the new system responsible for 10s of USD billions of notional risk, successfully went live over over one • and feedback gained by weekend for 800 users worldwide, and • delivering a succession of early was seen as a big success by the deliveries sponsoring stakeholders. • to real users” “ I attended a 3-day course with you and Kai whilst at Citigroup in 2006”, Richard Smith 27 March, 2013 © Gilb.com 33
  • 34. It looks like the stakeholders liked the top level system qualities, on first try • • http://rsbatechnology.co.uk/blog:8 Back in 2004, I was employed by a large investment bank in their FX e-commerce IT – “ In the end, the new • department as a business analyst. The wider IT organisation used a complex waterfall-based project methodology that system responsible for 10s • required use of an intranet application to manage and report progress. However, it's main failings were that it almost totally missed the ability to track of USD billions of notional delivery of actual value improvements to a project's stakeholders, and the ability to react to changes in requirements and priority for the project's duration. risk, • The toolset generated lots of charts and stats that provided the illusion of risk control. but actually provided very little help to the analysts, developers and testers actually doing the work at the coal face. – successfully went • The proof is in the pudding; live – – I have used Evo (albeit in disguise sometimes) on two large, high-risk projects in front-office investment banking businesses, and several smaller tasks. On the largest critical project, the original business functions & performance – over over one requirements document, which objective weekend included no design, essentially remained unchanged over the 14 months the project took to deliver, – for 800 users – but the detailed designs (of the GUI, business logic, worldwide , performance characteristics) changed many many – and was seen as a times, guided by lessons learnt and feedback gained by delivering a succession of early deliveries to real users. big success – by the sponsoring stakeholders.” “ I attended a 3-day course with you and Kai whilst at Citigroup in 2006” , Richard Smith 27 March, 2013 © Gilb.com 34
  • 35. 8. New Values can be discovered (external news, experience) Discovering new stakeholders and requirements is endless but is always an improvement 27 March 2013 Agilia Brno & Y Soft 35
  • 36. 9. Values can be evaluated as a function of architecture (using ‘Impact Estimation’) • It is possible to get an overview of – the totality of impacts – that your architecture – (all designs and strategies) – might have – on all your defined stakeholder needs. • Use an Impact Estimation table – and you will be able to spot See next slide opportunities for For enlargement • high value and • low cost early deliveries – by analyzing the numbers on the table 27 March 2013 Agilia Brno & Y Soft 36
  • 37. Strategy Impact Estimation: for a $100,000,000 Organizational Improvement Investment Defined In earlier slide 27 March 2013 Agilia Brno & Y Soft 37
  • 38. 9. Values can be evaluated as a function of architecture (using ‘Impact Estimation’) Most architecture impacts most requirements See next slide For enlargement 27 March 2013 Agilia Brno & Y Soft 38
  • 39. 10. Value delivery will attract resources. • If you are really good at delivering value – You can expect to attract • even more funding – Managers like • to be credited with success – Money seeks • best interest rates 27 March 2013 Agilia Brno & Y Soft 39
  • 40. Return On Investment at Raytheon about $10,000 per programmer/year http://www.sei.cmu.edu/pub/documents/95.reports/pdf/tr017.95.pdf 9 8 7 6 5 4 3 2 1 0 Invested Payback • ROI = $7.70 per $1 invested at Raytheon • Sell your improvement program to top management on this basis • “we got almost all corporate investment available, because we could show the best return on investment” Wednesday, March 27, 2013 Copyright Gilb@acm.org 40
  • 41. Raytheon 95 Software Productivity 2.7X better Productivity + 170% 1988 1994
  • 42. Achieving Project Predictability: Raytheon 95 Cost At Completion / Budget % 140% 100% 1988 1990 1994 SEE PPT NOTE FOR DEFINITION. Wednesday, March 27, 2013 Copyright Gilb@acm.org 42
  • 43. 10. Value delivery will attract resources. Deliver value Resources will find you 27 March 2013 Agilia Brno & Y Soft 43
  • 44. Meet Brian Wernham: Our Next Speaker Today: 10:05 His book is great on well-documented case studies in agile use of stakeholder analysis and value focus See my detailed opinion in the foreword to this book http://www.amazon.com/Agile-Project-Management-Government-Wernham/dp/0957223404 27 March 2013 Agilia Brno & Y Soft 44
  • 45. Last slide • Ecstatic Stakeholder! • PS Special free offer Agilia: – If you email me tom@gilb.com – Subject ‘Book’ – I will send you my Competitive Engineering book digitally – And several Agile papers 27 March 2013 Agilia Brno & Y Soft 45
  • 46. • Extra Slides 27 March 2013 Agilia Brno & Y Soft 46
  • 47. 27 March 2013 Agilia Brno & Y Soft 47
  • 48. 27 March 2013 Agilia Brno & Y Soft 48
  • 49. End of Lecture • In practice after 40 minutes. • The rest of the slides are for additional documentation 27 March 2013 Agilia Brno & Y Soft 49
  • 50. Gilb’s Value Manifesto: A Management Policy? 1. Really useful value, for real stakeholders will be defined measurably. No nice-sounding emotive words please. 2. Value will be seen in light of total long term costs as a decent return on investment. 3. Powerful management devices, like motivation and follow-up, will make sure that the value for money is really delivered – or that the failure is punished, and the success is rewarded. 4. The value will be delivered evolutionarily – not all at the end. 5. That is, we will create a stream of prioritized value delivery to stakeholders, at the beginning of our value delivery projects; and continue as long as the real return on investment is suitably large. 6. The CEO is primarily responsible for making all this happen effectively. 1. The CFO will be charged with tracking all value to cost progress. 2. The CTO and CIO will be charged with formulating all their efforts in terms of measurable value for resources. Source “Value Delivery in Systems Engineering” available at www.gilb.com Unpublished paper http://www.gilb.com/community/tiki-download_file.php?fileId=137 27 March 2013 Agilia Brno & Y Soft 50
  • 51. The Value Delivery Problem • Sponsors who order and pay for systems engineering projects, must justify their money spent based on the expected consequential effects (hereafter called ‘value’) of the systems. • • The value of the technical system is often expressed in presentation slides and requirements documents as a set of nice- sounding words, under various titles such as “System Objectives”, and “Business Problem Definition” 27 March 2013 Agilia Brno & Y Soft 51
  • 52. Some Assertions Assertion 1. When top management allows large projects to proceed, with such badly formulated primary objectives, then – they are responsible as managers for the outcome (failure). – They cannot plead ignorance. Assertion 2. The failure of technical staff (project management) to react to the lack of primary objective formulation by top management is also a total failure to do reasonable systems engineering. – Management might have a poor requirements culture, but we should routinely save them from themselves. Assertion 3. Both top managers and project personnel can be trained and motivated to clarify and quantify critical objectives routinely. – But until the poor external culture of education and practice changes, it may take strong CEO action to make this happen in your corporation. – My experience is that no one else will fight for this. Assertion 4. All top level system performance improvements, are by definition, variables. – So, we can expect to define them quantitatively. – We can also expect to be able to measure or test the current level of performance. – Words like ‘enhanced’, ‘reduced’, ‘improved’ are not serious systems engineering requirements terms. 27 March 2013 Agilia Brno & Y Soft 52
  • 53. THESE ARE SAME PRINCIPLES AND VALUES • BUT WITH NO DETAILED TEXT FOR EACH AND NO GILB EXAMPLES • FOR USE WHEN LITTLE TIME AND NOT TOO DEMANDING AUDIENCE 27 March 2013 Agilia Brno & Y Soft 53
  • 54. Gilb’s Ten Key Agile Principles to avoid bureaucracy and give creative freedom (Summary) Control projects by quantified critical-few results. 1 Page total ! (not stories, functions, features, use cases, objects, ..) Make sure those results are business results, not technical Align your project with your financial sponsor‟s interests! Give developers freedom, to find out how to deliver those results Estimate the impacts of your designs, on your quantified goals Select designs with the best impacts for their costs, do them first. Decompose the workflow, into weekly (or 2% of budget) time boxes Change designs, based on quantified experience of implementation Change requirements, based on quantified experience, new inputs Involve the stakeholders, every week, in setting quantified goals Involve the stakeholders, every week, in actually using increments Copyright 2004-8 Gilb, may be used citing source 27 March 2013 Agilia Brno & Y Soft 54
  • 55. Gilb’s Ten Key Agile Principles (Sum) to avoid bureaucracy and give creative freedom Main Idea: Get early and frequent real stakeholder net value delivered 27 March 2013 Agilia Brno & Y Soft 55
  • 56. Control projects by quantified critical-few results. 1 Page total ! (not stories, functions, features, use cases, objects, ..) 27 March 2013 Agilia Brno & Y Soft 56
  • 57. Make sure those results are business results, not technical Align your project with your financial sponsor‟s interests! 27 March 2013 Agilia Brno & Y Soft 57
  • 58. Give developers freedom, to find out how to deliver those results 27 March 2013 Agilia Brno & Y Soft 58
  • 59. Estimate the impacts of your designs, on your quantified goals 27 March 2013 Agilia Brno & Y Soft 59
  • 60. Select designs with the best impacts for their costs, do them first. 27 March 2013 Agilia Brno & Y Soft 60
  • 61. Decompose the workflow, into weekly (or 2% of budget) time boxes 27 March 2013 Agilia Brno & Y Soft 61
  • 62. Change designs, based on quantified experience of implementation 27 March 2013 Agilia Brno & Y Soft 62
  • 63. Change requirements, based on quantified experience, new inputs 27 March 2013 Agilia Brno & Y Soft 63
  • 64. Involve the stakeholders, every week, in setting quantified goals 27 March 2013 Agilia Brno & Y Soft 64
  • 65. Involve the stakeholders, every week, in actually using increments 27 March 2013 Agilia Brno & Y Soft 65
  • 66. My 10 Agile Values? (Summary) • Simplicity – 1. Focus on real stakeholder values • Communication – 2. Communicate stakeholder values quantitatively – 3. Estimate expected results and costs for weekly steps • Feedback – 4. Generate results, weekly, for stakeholders, in their environment – 5. Measure all critical aspects of the improved results cycle. – 6. Analyze deviation from your initial estimates • Courage – 7. Change plans to reflect weekly learning – 8. Immediately implement valued stakeholder needs, next week • Don’t wait, don’t study (analysis paralysis), don’t make excuses. • Just Do It! – 9. Tell stakeholders exactly what you will deliver next week – 10. Use any design, strategy, method, process that works quantitatively well - to get your results • Be a systems engineer, not a just programmer (a ‘Softcrafter’). • Do not be limited by your craft background, in serving your paymasters 27 March 2013 Agilia Brno & Y Soft 66
  • 67. My 10 Agile Values? (Detail) • Simplicity • Communication • Feedback • Courage 27 March 2013 Agilia Brno & Y Soft 67
  • 68. Simplicity – 1. Focus on real stakeholder values 27 March 2013 Agilia Brno & Y Soft 68
  • 69. Communication – 2. Communicate stakeholder values quantitatively 27 March 2013 Agilia Brno & Y Soft 69
  • 70. Estimate Often • 3. Estimate expected results and costs for weekly steps 27 March 2013 Agilia Brno & Y Soft 70
  • 71. Feedback – 4. Generate results, weekly, for stakeholders, in their environment 27 March 2013 Agilia Brno & Y Soft 71
  • 72. Measure Critical Stuff • 5. Measure all critical aspects of the improved results cycle. 27 March 2013 Agilia Brno & Y Soft 72
  • 73. Learn from Deviations • 6. Analyze deviation from your initial estimates 27 March 2013 Agilia Brno & Y Soft 73
  • 74. Courage – 7. Change plans to reflect weekly learning 27 March 2013 Agilia Brno & Y Soft 74
  • 75. Deliver Value Now • 8. Immediately implement valued stakeholder needs, next week • Don’t wait, don’t study (analysis paralysis), don’t make excuses. • Just Do It! 27 March 2013 Agilia Brno & Y Soft 75
  • 76. Tell Stakeholders What’s next • 9. Tell stakeholders exactly what you will deliver next week 27 March 2013 Agilia Brno & Y Soft 76
  • 77. If it works, do it! • 10. Use any design, strategy, method, process that works quantitatively well - to get your results • Be a systems engineer, not a just programmer (a ‘Softcrafter’). • Do not be limited by your craft background, in serving your paymasters 27 March 2013 Agilia Brno & Y Soft 77
  • 78. Last slide • Ecstatic Stakeholder! • PS Special free offer Agilia: – If you email me tom@gilb.com – Subject ‘Book’ – I will send you my Competitive Engineering book digitally – And several Agile papers 27 March 2013 Agilia Brno & Y Soft 78

Editor's Notes

  1. http://www.orangefortune.com/images/Why%20Agile.JPGUpdated March 26 2013 Brno Agilia
  2. http://www.orangefortune.com/images/Why%20Agile.JPGUpdated March 26 2013 Brno Agilia
  3. Requirements – A Socio Technical DisciplineThis is the fourth article in a series that explains thethinking behind the Volere1 requirements techniques.Subsequent articles will explore various aspects ofapplying these techniques in your environment.bySuzanne Robertson &amp; James RobertsonThe Atlantic Systems GuildFebruary 2009A Combination of PerspectivesOn 8 Apr 2009, at 11:00, Suzanne Robertson wrote:Tom,Yes, with the usual copyright acknowledgements. What do you want to use it for?Have a happy EasterSuzanne
  4. 29.5 to 1 fixed and 2 rectangles moved to right 12 3 2013 stockholm27 3 2013 Retext heading for Brno
  5. Yes, Richard was trained in Requirements by you and Kai while he was at Citi.Thi was I believe a book rviewputon Amazon for CE book.From: Tom Gilb [mailto:tom@gilb.com] Sent: 26 February 2009 15:16To: Dick HollandHi Tom,I am honoured to be in contact with you again! I attended a 3-day course with you and Kai whilst at Citigroup in 2006 (I worked in the FX e-commerce front-office team at the time). You may be interested to know that I wrote a detailed business requirements spec (no design, just requirements) adopting many of your ideas shortly after the course including key quantified requirements. This spec ended up staying largely stable for a year as we did an evo – like development process, at the end of which we successfully went live with a brand-new FX order management system in a global big-bang release to 800 Citi users in 20 locations. I hope to continue to use and expand competitive engineering practises at my new home here at LZ, with Dick’s help!Many regards,Richard.Hi Tom,Thought you might like to know I have just completed a review of Competitive Engineering on my own company&apos;s blog:http://rsbatechnology.co.uk/blog:8As I tried to do when I worked with Dick at LatentZero, I continue to try and spread the word to a world of (initial) unbelievers! I actually have an interesting opportunity right now to demonstrate the benefits of early &amp; often delivery of value to stakeholders in a couple of new projects. Look forward to meeting you and Kai again sometime ...Regards,Richard Smith.sept 10 2011
  6. Yes, Richard was trained in Requirements by you and Kai while he was at Citi.From: Tom Gilb [mailto:tom@gilb.com] Sent: 26 February 2009 15:16To: Dick HollandHi Tom,I am honoured to be in contact with you again! I attended a 3-day course with you and Kai whilst at Citigroup in 2006 (I worked in the FX e-commerce front-office team at the time). You may be interested to know that I wrote a detailed business requirements spec (no design, just requirements) adopting many of your ideas shortly after the course including key quantified requirements. This spec ended up staying largely stable for a year as we did an evo – like development process, at the end of which we successfully went live with a brand-new FX order management system in a global big-bang release to 800 Citi users in 20 locations. I hope to continue to use and expand competitive engineering practises at my new home here at LZ, with Dick’s help!Many regards,Richard.Hi Tom,Thought you might like to know I have just completed a review of Competitive Engineering on my own company&apos;s blog:http://rsbatechnology.co.uk/blog:8As I tried to do when I worked with Dick at LatentZero, I continue to try and spread the word to a world of (initial) unbelievers! I actually have an interesting opportunity right now to demonstrate the benefits of early &amp; often delivery of value to stakeholders in a couple of new projects. Look forward to meeting you and Kai again sometime ...Regards,Richard Smith.sept 10 2011
  7. Yes, Richard was trained in Requirements by you and Kai while he was at Citi.From: Tom Gilb [mailto:tom@gilb.com] Sent: 26 February 2009 15:16To: Dick HollandHi Tom,I am honoured to be in contact with you again! I attended a 3-day course with you and Kai whilst at Citigroup in 2006 (I worked in the FX e-commerce front-office team at the time). You may be interested to know that I wrote a detailed business requirements spec (no design, just requirements) adopting many of your ideas shortly after the course including key quantified requirements. This spec ended up staying largely stable for a year as we did an evo – like development process, at the end of which we successfully went live with a brand-new FX order management system in a global big-bang release to 800 Citi users in 20 locations. I hope to continue to use and expand competitive engineering practises at my new home here at LZ, with Dick’s help!Many regards,Richard.Hi Tom,Thought you might like to know I have just completed a review of Competitive Engineering on my own company&apos;s blog:http://rsbatechnology.co.uk/blog:8As I tried to do when I worked with Dick at LatentZero, I continue to try and spread the word to a world of (initial) unbelievers! I actually have an interesting opportunity right now to demonstrate the benefits of early &amp; often delivery of value to stakeholders in a couple of new projects. Look forward to meeting you and Kai again sometime ...Regards,Richard Smith.sept 10 2011
  8. http://www.centerforvibrationalhealing.info/images/ecstatic-woman.jpg
  9. http://www.hit.nl/images/content/BSCStrategyMap.png
  10. http://dashboardsbyexample.com/wp-content/uploads/2008/06/marketing-spend-business-results-model.png
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  13. http://bellagio.typepad.com/main/images/vaccine_priority_groups.jpg
  14. http://www.agileadvice.com/archives/IterationValueDelivery.png
  15. http://blogs.warwick.ac.uk/images/eludlow/2007/06/20/modepaleizen04_groot.jpghttp://blogs.warwick.ac.uk/images/eludlow/2007/06/20/modepaleizen04_groot.jpg
  16. http://projects.staffs.ac.uk/suniwe/images/rup-cycle.gif
  17. http://www.performance-measurement.net/assets/neely/prism03.gif
  18. http://www.lab49.com/files/company/IterativeProjectDelivery.png
  19. http://www.emeraldinsight.com/fig/2610320307001.png
  20. http://www.propcom.org/Value-chain-Presentation.gif/Value-chain-Presentation-full.gif
  21. http://2.bp.blogspot.com/_TUs17IBrSL4/Sj61EkJr1BI/AAAAAAAAAOc/SLC-E4mSgCE/s400/dilbert_cost_estimation_adjusted.png
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  23. http://www.idiolect.org.uk/pics/lweb/measuring%20happiness.gif
  24. http://www.hitecproducts.no/uploads/images/pagePics/Quality-Circle.jpg
  25. http://media.photobucket.com/image/change%20plans/3uonline/idea.jpg
  26. blog.oregonlive.com/ pdxgreen/2008/03/
  27. http://happyinvestors.in/yahoo_site_admin/assets/images/CORE_VALUES2.32713742_std.jpg
  28. http://weblogs.baltimoresun.com/entertainment/dining/reviews/blog/Winewhiskglass.jpg
  29. http://www.centerforvibrationalhealing.info/images/ecstatic-woman.jpg