Challenges with agile offshoring
Download as PPTX, PDF0 likes474 views
The document discusses challenges with agile offshoring based on the author's experience. Some key challenges identified are governance, people issues like attrition, building an effective team across cultures, cultural differences, and ensuring transparency with partners. Recommendations include focusing on standard systems instead of core work, starting simple to establish processes, taking a long term view beyond 1 year, enforcing risk management processes, understanding different cultures, and prioritizing processes and tools when offshoring to enable effective interactions.
Challenges with agile offshoring
- 1. 1 My challenges with Agile offshoring so far 2013-05-07 Ove Holmberg, OHC
- 2. 2 Me • Developer, project manager, agile coach. • Pragmatic agile evangelist since 2002. • As a client: worked 2 years with a Agile PMO setup together with a russian partner. Fail! • As a vendor: worked 1,5 years with delivery of e- com and CMS projects to Scandinavia from India. Fail! • Today: Setting up the biggest e-com site in Europe with Agile offshoring. To be continued…
- 3. 3 Agile 1. Working software over comprehensive documentation 2. Customer collaboration over contract negotiation 3. Responding to change over following a plan 4. Individuals and interactions over processes and tools
- 4. 4 Why agility? • Speed (Time to market) – MVP – Fail early (fast and wrong) • Business involvment • Releases creativity • Focus on value
- 5. 5 Offshoring • Wikipedia: Offshoring is defined as the movement of a business process done at a company in one country to the same or another company in another, different country.
- 6. 6 Why offshoring? • Reduced cost • Avoid repetitive work • Focus on core • Flexible people planning • Speed to market • Access to experts
- 7. 7 Key challenges with AO 1. Governance 2. People 3. Team 4. Culture 5. Partner
- 8. 8 Challenge 1: Governance • Do – Reports with KPIs – RAG automation – Meetings – Travel – Coaching (Audits) – Doubling – Repeat! • KPI: Amber is back to green within one week. Beware: The fear of red Note: Gov is increased by 200% if offshoring Example: The 10 new developers
- 9. 9 Challenge 2: People • Watch out for – 20% attrition – Sudden floating holidays – Trainees – Visa problems – Annual appraisals – Marriages – Titles – Etiquette – Loyalty • Communication throughput 20% • KPI: <10% resignations Example: The manager I sent home
- 10. 10 Challenge 3: Team • Sports in India • 10% rule • Do: Project understanding (chartering) – Vision – Expectations – Objectives, effects – Priorities • KPI: From Forming to Performing within 6 months. Example: The Indian team board Example: The alibi coach In China
- 11. 11 Challenge 4: Culture • The genus perspective challenge • Do: Invest time in culture • KPI: Hofstaede improvement… Example: The female Coach in Ukraine Example: The operations Team in Dalsland Example: The Boeing dilemma
- 12. 12 Hofstede cultural theory PDI = Power Distance IDV = Individualism MAS = Masculinity UAI = Uncertinity avoidance LTO = Long term orientation
- 13. 13 Challenge 5: The partner • Do: Use more than 1 partner • Negative: Them, the russians • Positive: WE • Discipline/good habits • Do: Delivery Focus Areas survey • KPI: Transparency in reports and upcoming issues. Beware: CMMI and Agile in the Same sales deck.. Example: The russian team that disappeared Beware: Corruption
- 14. 14 Do: Iterative risk management • Daily focus on top risk • Weekly focus on top 5 risks • Monthly focus on top 10 risks • Include risks in retro and planning • Include risks in RAG definition • A common learning risk log: Title Descr Mitigation Challenge Std Culture Work log Impact Probab. Rank Resp The bus May hit a key person Work 24*7, go by taxi. People Yes Masculinity Own driver hired 50% 10% 5% John
- 15. 15 Recommendations • Don’t outsource core stuff such as customer facing and complex business focused systems - do standard systems. • Don’t start with a complex project – do a simple with an objective on the process. • Don’t expect enterprise ROI on short term (1 year) basis - focus on sustainability. • Don’t be reactive – enforce a iterative risk management process. • Don’t say them and us – invest in understanding each others cultures.
- 16. 16 The offshoring amendment to Agile • Individuals and interactions over processes and tools • Processes and tools first – then Individuals and interactions
- 17. 17 • Twitter: @ovehol • Email: ove.holmberg@gmail.com • Slideshare: slideshare.net/oveholmberg • Feedback please! • Questions… Thanks for listening!