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Selling Agile at Your Company



                     Presented by:
                    William F. Nazzaro
                  Nazzaro & Associates
                     +1.610.831.1151
                info@williamnazzaro.com
                                          Version 2.00
Presenter’s Background

        Twenty years of success in delivering enterprise software solutions for Fortune
        100 companies, he has provided unparalleled services in project mentoring, use
        case and user story training and modeling, agile SCRUM, XP, TDD, service-
        oriented architecture, Unified Process and CMMi adoption, Java, C++, C, and
        Smalltalk programming languages, and technical curriculum development and
        delivery.

        His pragmatic emphasis on project execution and process improvement has
        benefited major insurance, health-care, human resources, stock market
        organizations and Department of Defense where he has enabled the transformation
        of their corporate development processes and development teams of diverse skill-
        levels.

        He has provided in-depth talks on Agility, Use Case Modeling, Service-Oriented
        Architecture, Unified Process, Object Technology and Data Modeling.

        He has extensive background in project management, and has successfully led
        teams on multi-million dollar projects to provide the highest-quality technical
        solutions in the most efficient and effective manner.



Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com   Page - 2
Introduction

                                           I’m often asked by my clients


  “We want to move forward with the adoption of agile practices but we
     are met with resistance from others within our organization and
         we are unsure of how to sell the benefits of agility to our
                      customers and stakeholders.”


                           The good news is this is a common problem


     In this presentation we will discuss how to “sell” agile and address
       some of the common misconceptions that both your management
           and customers may have when trying to transition to agile.


Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com   Page - 3
Agenda

        Barriers to Agile Adoption


        Top 5 Common Misconceptions and Concerns
          1.   Agile teams don’t do long-range planning or estimating
          2.   Agile doesn’t work for matrixed teams or organizations
          3.   Agile doesn’t work for non co-located teams
          4.   Agile expects too much involvement from the customer
          5.   Agile works on a time and materials (T&M) basis


        Benefits of Agile – Some Numbers To Consider


        Wrap-Up


Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com   Page - 4
Barriers to Agile Adoption – 1




Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com   Page - 5
Barriers to Agile Adoption – 2




                     “Whether you think that you can, or that you can't,
                           you are usually right” – Henry Ford




Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com   Page - 6
Where Are We?

        Barriers to Agile Adoption


        Top 5 Common Misconceptions and Concerns
          1.   Agile teams don’t do long-range planning or estimating
          2.   Agile doesn’t work for matrixed teams or organizations
          3.   Agile doesn’t work for non co-located teams
          4.   Agile expects too much involvement from the customer
          5.   Agile works on a time and materials (T&M) basis


        Benefits of Agile – Some Numbers To Consider


        Wrap-Up


Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com   Page - 7
1. Agile Teams Don’t Do Long-Range Planning Or Estimating – 1


        Why do we plan?                                                         My one client told me she wanted to
          –   Reduce risk and uncertainty                                       get away from the way they ran their
          –   Support decision making                                           traditional projects
          –   Establish trust                                                     – We spend time planning and estimating at
                                                                                    the beginning of the project
          –   Convey information
                                                                                  – We commit to this project plan and
                                                                                    estimate at the beginning of the project
        A good plan is one that support                                           – We know, and our customer knows, the
        reliable decision making                                                    plan and estimate are incorrect
                                                                                  – Historical data verifies we are typically
                                                                                    incorrect on our plan and estimate
                          Steve McConnell, Software Estimation, 2006
                                                                                  – We move forward with the expectation that
                                                                                    the information is correct
                                                                                  – We are disappointed and our customer is
                                                                                    upset when we fail to deliver based on our
                                                                                    initial plan and estimate




Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com   Page - 8
1. Agile Teams Don’t Do Long-Range Planning Or Estimating – 2


        Somewhere along the line a belief
        cropped up that Agile projects don’t
        do planning or estimating
                                                                             Agile teams
        This is a MYTH, in fact I’ve found I’ve                              typical focus            Release
        done more planning and estimating
        it’s just that I plan to certain horizons                                                     Iteration

        There are different levels of planning                                                           Day
          – Release planning determines the scope,
            schedule, and resources needed for a
            product
          – Iteration planning determines which
            features will be built in an iteration, and
            what tasks need to be done to build them
          – Day planning monitors progress and deal                                    Planning Onion – Mike Cohn,
            with obstacles                                                          Agile Estimating and Planning, 2006


        We plan and estimate to our horizon,
        then we inspect and adapt

Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com   Page - 9
1. Agile Teams Don’t Do Long-Range Planning Or Estimating – 3


    Release

            Conditions of
             satisfaction
         (features, budget,                                                                                 Feedback
              schedule)

                                           Release
                                           planning




                              Iteration
                                                                                  Feedback

                                        Conditions of
                                         satisfaction
                                       (features, tests)



                                                             Iteration                                                     Product
                                                                                         Development
                                                             planning                                                     increment



                                                                           Source: Mike Cohn, Agile Estimating and Planning, 2006

Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com    Page - 10
2. Agile Doesn’t Work For Matrixed Teams Or Organizations – 1


        Matrixed teams are created by pulling a variety of
        different resources from resource managers and
        these resources are allocated to a project manager
        while working on that project

        I’m actually fine with this concept of matrixed if
        that’s all we did and Agile does work if that’s all we
        did

        However, we usually go way beyond this

        We’ve mutated the concept of matrix into time-
        slicing to gain maximum efficiency of resources
          – Bill and Patty are each allocated 50% to project A and
            50% to production support
                                 – OR –
          – Rick is allocated to four projects and each project is
            expecting that he is available to work 35% on their project
            (OK, who’s checking the math here?)



Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com   Page - 11
2. Agile Doesn’t Work For Matrixed Teams Or Organizations – 2


        What’s an interruption?
          1. To break the continuity,
          2. To hinder or stop the action of (someone) by breaking in on,
          3. To break in on an action

        Why am I not a fan of time-slicing?
          – If you're being interrupted while working on a task you’re losing time
          – For a simple IM or telephone call Microsoft 1 found it took their workers 15
            minutes to get back into the task whenever they were interrupted
          – The impact of changing projects is even greater, every time you're have a
            context switch, it takes even longer to remember not just the task but why
            you were working on the task
          – Studies have shown that productivity can be hindered by as much as 40% 2


                                                                                    1 Microsoft – “The Grand Seduction of Multitasking”
                                                                                    2   Mike Cohn – “The Dark Side of Multi-Tasking


Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com          Page - 12
3. Agile Doesn’t Work For Non Co-located Teams – 1


        To be truthful, agility can be more
        difficult for teams that aren’t co-
        located because of the expectation to
        communicate more

        So how can we over come this?

        We have to be more creative
          –    Shifting of hours or work schedules to
               create an opportunity for overlap
          –    Leveraging a variety of communication
               tools (e.g., GoogleTalk, IM, Wikis, virtual
               team rooms, digital cameras, etc.)


        Strive for purpose and value-driven
        communication


Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com   Page - 13
3. Agile Doesn’t Work For Non Co-located Teams – 2


        When hiring team members stress their
        ability to be able to communicate


        Communication is more than just
        talking, it can also be
          –    How to express an idea (i.e., Textual, UML,
               Architecturally, code)
          –    Do they seek to be understood or to
               understand
          –    How do they listen?


        Ironically, teams that don’t
        communicate very well that are co-
        located are the first to mention that
        agile won’t work for teams that aren’t
        co-located

Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com   Page - 14
4. Agile Expects Too Much Involvement From The Customer – 1


        The reality is that agile does expect
        the customer or Product Owner to be
        involved with the team

        Ideally the product owner should be
        thought of as part of the team

        Scenario: Customer may say,
          – “Perfect, I really want to get this done”
               » On this project, we physically co-located
                 the product owner with the team
          – “I want to be engaged but I don’t have
            enough time”
               » On this project, the product owner
                 established “office hours” and the team
                 knew they could call on him during those
                 times
          – “Working with you isn’t my day job”
               » On this project, the product owner was
                 unavailable with the exception of
                 possibly 30 minutes at the beginning or
                 end of day


Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com   Page - 15
4. Agile Expects Too Much Involvement From The Customer – 2


        Regardless of the scenario we need
        to be prepared to let our customer
        know our expectations for their time
        and the amount of involvement we
        will require of them


        We can let them know we will
        require them for
          – Product Backlog
          – Release & Sprint Planning
          – Review and Retrospective


        We can be creative with their
        involvement and work with them



Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com   Page - 16
5. Agile Works On A Time And Materials (T&M) Basis * – 1


        This is most likely the biggest deterrent and concern that a
        customer will have when you are trying to move towards Agile




                                                                                         Source: http://www.rallydev.com




        On an agile project the customer can set the budget they want to
        spend, they can set the timeline, and then they can prioritize the
        features
                                                        * Sliger and Broderick, The Software Project Manager’s Bridge to Agility, 2008

Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com         Page - 17
5. Agile Works On A Time And Materials (T&M) Basis * – 2


        Based on the Standish Group, we should remind
        our customers that 64% of software features are
        rarely or ever used
          –     The Standish Group’s CHAOS Report 2006

        Fixed scope / fixed price results in
          –     Customer required to specify everything upfront
          –     Any change to the original specifications goes to
                through a change control process
          –     Customer realizes a change is need
          –     IT doesn’t want to change it because it will impact the
                project plan and budget
          –     Customer doesn’t want to pay for the change because
                it should have been there all along

        Sligler and Broderick stated in their book
                                                                                                       Source: www.softhouse.se
          –     Changing contracts from fixed scope / fixed price to a
                pay-as-you-go time and material (T&M) means that
                customers are now more responsible for the success
                of the product
          –     The customer directly control the cost of the contract
                because they authorize its existence on a recurring
                basis
                                                        * Sliger and Broderick, The Software Project Manager’s Bridge to Agility, 2008

Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com         Page - 18
Where Are We?

        Barriers to Agile Adoption


        Top 5 Common Misconceptions and Concerns
          1.   Agile teams don’t do long-range planning or estimating
          2.   Agile doesn’t work for matrixed teams or organizations
          3.   Agile doesn’t work for non co-located teams
          4.   Agile expects too much involvement from the customer
          5.   Agile works on a time and materials (T&M) basis


        Benefits of Agile – Some Numbers To Consider


        Wrap-Up


Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com   Page - 19
Benefits of Agile – Some Numbers To Consider *

        93% increased productivity 1
        88% increased quality 1
        83% improved stakeholder
        satisfaction 1
        49% reduced costs 1
        66% three-year, risk-adjusted return
        on investment 2


        Reasons for Agile adoption include:
          – 47% to better manage project scope 3
          – 45% to create clear business
            requirements 3                                                  1 “Agile Methodologies: Survey Results”, Shine Technologies, 2003
                                                                            2 Forrester Research, 2004
          – 40% to speed or better predict time to                          3 “Agile 2006 Survey Results and Analysis”, Digital Focus, 2005
            market 3

                                                                                                * Source: http://www.rallydev.com

Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com      Page - 20
Wrap-Up

        Barriers to Agile Adoption


        Top 5 Common Misconceptions and Concerns
          1.   Agile teams don’t do long-range planning or estimating
          2.   Agile doesn’t work for matrixed teams or organizations
          3.   Agile doesn’t work for non co-located teams
          4.   Agile expects too much involvement from the customer
          5.   Agile works on a time and materials (T&M) basis


        Benefits of Agile – Some Numbers To Consider




Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com   Page - 21
Thank You!




             Version 2.00
More Information

        To contact us our consulting and training services or how we
        work with organizations to build a Business Analysis Center of
        Excellence

          – Please call +1.610.831.1151
          – E-mail: info@williamnazzaro.com

        Ask about some of our popular courses like:
          –   Effective Use Case Development
          –   Business Analysis – Requirements Discovery and Facilitation
          –   Agile Project Management Primer
          –   Developing Requirements with User Stories
          –   Applying Scrum with User Stories
          –   Applying Scrum with Use Cases
          –   Service-Oriented Analysis

Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com   Page - 23

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Selling Agile At Your Company

  • 1. Selling Agile at Your Company Presented by: William F. Nazzaro Nazzaro & Associates +1.610.831.1151 info@williamnazzaro.com Version 2.00
  • 2. Presenter’s Background Twenty years of success in delivering enterprise software solutions for Fortune 100 companies, he has provided unparalleled services in project mentoring, use case and user story training and modeling, agile SCRUM, XP, TDD, service- oriented architecture, Unified Process and CMMi adoption, Java, C++, C, and Smalltalk programming languages, and technical curriculum development and delivery. His pragmatic emphasis on project execution and process improvement has benefited major insurance, health-care, human resources, stock market organizations and Department of Defense where he has enabled the transformation of their corporate development processes and development teams of diverse skill- levels. He has provided in-depth talks on Agility, Use Case Modeling, Service-Oriented Architecture, Unified Process, Object Technology and Data Modeling. He has extensive background in project management, and has successfully led teams on multi-million dollar projects to provide the highest-quality technical solutions in the most efficient and effective manner. Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com Page - 2
  • 3. Introduction I’m often asked by my clients “We want to move forward with the adoption of agile practices but we are met with resistance from others within our organization and we are unsure of how to sell the benefits of agility to our customers and stakeholders.” The good news is this is a common problem In this presentation we will discuss how to “sell” agile and address some of the common misconceptions that both your management and customers may have when trying to transition to agile. Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com Page - 3
  • 4. Agenda Barriers to Agile Adoption Top 5 Common Misconceptions and Concerns 1. Agile teams don’t do long-range planning or estimating 2. Agile doesn’t work for matrixed teams or organizations 3. Agile doesn’t work for non co-located teams 4. Agile expects too much involvement from the customer 5. Agile works on a time and materials (T&M) basis Benefits of Agile – Some Numbers To Consider Wrap-Up Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com Page - 4
  • 5. Barriers to Agile Adoption – 1 Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com Page - 5
  • 6. Barriers to Agile Adoption – 2 “Whether you think that you can, or that you can't, you are usually right” – Henry Ford Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com Page - 6
  • 7. Where Are We? Barriers to Agile Adoption Top 5 Common Misconceptions and Concerns 1. Agile teams don’t do long-range planning or estimating 2. Agile doesn’t work for matrixed teams or organizations 3. Agile doesn’t work for non co-located teams 4. Agile expects too much involvement from the customer 5. Agile works on a time and materials (T&M) basis Benefits of Agile – Some Numbers To Consider Wrap-Up Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com Page - 7
  • 8. 1. Agile Teams Don’t Do Long-Range Planning Or Estimating – 1 Why do we plan? My one client told me she wanted to – Reduce risk and uncertainty get away from the way they ran their – Support decision making traditional projects – Establish trust – We spend time planning and estimating at the beginning of the project – Convey information – We commit to this project plan and estimate at the beginning of the project A good plan is one that support – We know, and our customer knows, the reliable decision making plan and estimate are incorrect – Historical data verifies we are typically incorrect on our plan and estimate Steve McConnell, Software Estimation, 2006 – We move forward with the expectation that the information is correct – We are disappointed and our customer is upset when we fail to deliver based on our initial plan and estimate Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com Page - 8
  • 9. 1. Agile Teams Don’t Do Long-Range Planning Or Estimating – 2 Somewhere along the line a belief cropped up that Agile projects don’t do planning or estimating Agile teams This is a MYTH, in fact I’ve found I’ve typical focus Release done more planning and estimating it’s just that I plan to certain horizons Iteration There are different levels of planning Day – Release planning determines the scope, schedule, and resources needed for a product – Iteration planning determines which features will be built in an iteration, and what tasks need to be done to build them – Day planning monitors progress and deal Planning Onion – Mike Cohn, with obstacles Agile Estimating and Planning, 2006 We plan and estimate to our horizon, then we inspect and adapt Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com Page - 9
  • 10. 1. Agile Teams Don’t Do Long-Range Planning Or Estimating – 3 Release Conditions of satisfaction (features, budget, Feedback schedule) Release planning Iteration Feedback Conditions of satisfaction (features, tests) Iteration Product Development planning increment Source: Mike Cohn, Agile Estimating and Planning, 2006 Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com Page - 10
  • 11. 2. Agile Doesn’t Work For Matrixed Teams Or Organizations – 1 Matrixed teams are created by pulling a variety of different resources from resource managers and these resources are allocated to a project manager while working on that project I’m actually fine with this concept of matrixed if that’s all we did and Agile does work if that’s all we did However, we usually go way beyond this We’ve mutated the concept of matrix into time- slicing to gain maximum efficiency of resources – Bill and Patty are each allocated 50% to project A and 50% to production support – OR – – Rick is allocated to four projects and each project is expecting that he is available to work 35% on their project (OK, who’s checking the math here?) Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com Page - 11
  • 12. 2. Agile Doesn’t Work For Matrixed Teams Or Organizations – 2 What’s an interruption? 1. To break the continuity, 2. To hinder or stop the action of (someone) by breaking in on, 3. To break in on an action Why am I not a fan of time-slicing? – If you're being interrupted while working on a task you’re losing time – For a simple IM or telephone call Microsoft 1 found it took their workers 15 minutes to get back into the task whenever they were interrupted – The impact of changing projects is even greater, every time you're have a context switch, it takes even longer to remember not just the task but why you were working on the task – Studies have shown that productivity can be hindered by as much as 40% 2 1 Microsoft – “The Grand Seduction of Multitasking” 2 Mike Cohn – “The Dark Side of Multi-Tasking Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com Page - 12
  • 13. 3. Agile Doesn’t Work For Non Co-located Teams – 1 To be truthful, agility can be more difficult for teams that aren’t co- located because of the expectation to communicate more So how can we over come this? We have to be more creative – Shifting of hours or work schedules to create an opportunity for overlap – Leveraging a variety of communication tools (e.g., GoogleTalk, IM, Wikis, virtual team rooms, digital cameras, etc.) Strive for purpose and value-driven communication Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com Page - 13
  • 14. 3. Agile Doesn’t Work For Non Co-located Teams – 2 When hiring team members stress their ability to be able to communicate Communication is more than just talking, it can also be – How to express an idea (i.e., Textual, UML, Architecturally, code) – Do they seek to be understood or to understand – How do they listen? Ironically, teams that don’t communicate very well that are co- located are the first to mention that agile won’t work for teams that aren’t co-located Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com Page - 14
  • 15. 4. Agile Expects Too Much Involvement From The Customer – 1 The reality is that agile does expect the customer or Product Owner to be involved with the team Ideally the product owner should be thought of as part of the team Scenario: Customer may say, – “Perfect, I really want to get this done” » On this project, we physically co-located the product owner with the team – “I want to be engaged but I don’t have enough time” » On this project, the product owner established “office hours” and the team knew they could call on him during those times – “Working with you isn’t my day job” » On this project, the product owner was unavailable with the exception of possibly 30 minutes at the beginning or end of day Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com Page - 15
  • 16. 4. Agile Expects Too Much Involvement From The Customer – 2 Regardless of the scenario we need to be prepared to let our customer know our expectations for their time and the amount of involvement we will require of them We can let them know we will require them for – Product Backlog – Release & Sprint Planning – Review and Retrospective We can be creative with their involvement and work with them Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com Page - 16
  • 17. 5. Agile Works On A Time And Materials (T&M) Basis * – 1 This is most likely the biggest deterrent and concern that a customer will have when you are trying to move towards Agile Source: http://www.rallydev.com On an agile project the customer can set the budget they want to spend, they can set the timeline, and then they can prioritize the features * Sliger and Broderick, The Software Project Manager’s Bridge to Agility, 2008 Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com Page - 17
  • 18. 5. Agile Works On A Time And Materials (T&M) Basis * – 2 Based on the Standish Group, we should remind our customers that 64% of software features are rarely or ever used – The Standish Group’s CHAOS Report 2006 Fixed scope / fixed price results in – Customer required to specify everything upfront – Any change to the original specifications goes to through a change control process – Customer realizes a change is need – IT doesn’t want to change it because it will impact the project plan and budget – Customer doesn’t want to pay for the change because it should have been there all along Sligler and Broderick stated in their book Source: www.softhouse.se – Changing contracts from fixed scope / fixed price to a pay-as-you-go time and material (T&M) means that customers are now more responsible for the success of the product – The customer directly control the cost of the contract because they authorize its existence on a recurring basis * Sliger and Broderick, The Software Project Manager’s Bridge to Agility, 2008 Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com Page - 18
  • 19. Where Are We? Barriers to Agile Adoption Top 5 Common Misconceptions and Concerns 1. Agile teams don’t do long-range planning or estimating 2. Agile doesn’t work for matrixed teams or organizations 3. Agile doesn’t work for non co-located teams 4. Agile expects too much involvement from the customer 5. Agile works on a time and materials (T&M) basis Benefits of Agile – Some Numbers To Consider Wrap-Up Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com Page - 19
  • 20. Benefits of Agile – Some Numbers To Consider * 93% increased productivity 1 88% increased quality 1 83% improved stakeholder satisfaction 1 49% reduced costs 1 66% three-year, risk-adjusted return on investment 2 Reasons for Agile adoption include: – 47% to better manage project scope 3 – 45% to create clear business requirements 3 1 “Agile Methodologies: Survey Results”, Shine Technologies, 2003 2 Forrester Research, 2004 – 40% to speed or better predict time to 3 “Agile 2006 Survey Results and Analysis”, Digital Focus, 2005 market 3 * Source: http://www.rallydev.com Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com Page - 20
  • 21. Wrap-Up Barriers to Agile Adoption Top 5 Common Misconceptions and Concerns 1. Agile teams don’t do long-range planning or estimating 2. Agile doesn’t work for matrixed teams or organizations 3. Agile doesn’t work for non co-located teams 4. Agile expects too much involvement from the customer 5. Agile works on a time and materials (T&M) basis Benefits of Agile – Some Numbers To Consider Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com Page - 21
  • 22. Thank You! Version 2.00
  • 23. More Information To contact us our consulting and training services or how we work with organizations to build a Business Analysis Center of Excellence – Please call +1.610.831.1151 – E-mail: info@williamnazzaro.com Ask about some of our popular courses like: – Effective Use Case Development – Business Analysis – Requirements Discovery and Facilitation – Agile Project Management Primer – Developing Requirements with User Stories – Applying Scrum with User Stories – Applying Scrum with Use Cases – Service-Oriented Analysis Copyright © 2010 Process Synergy, LLC. All Rights Reserved. | www.williamnazzaro.com | +1.610.831.1151 | info@williamnazzaro.com Page - 23