Economically Sensible Scrum -- Scrum Gathering New Orleans 2014

1Copyright © 2014, Innolution, LLC. All Rights Reserved.
Economically Sensible Scrum
Scrum Gathering Keynote
New Orleans, LA
May 5, 2014
by Ken Rubin

Background of Ken RubinAuthorTrainer
Coach
Exp
Trained more than
20,000 people
Coach developers
and executives
1st Managing
Director
1st Scrum project
was in 2000 for
bioinformatics

4
Restaurant analogy takeaways
Copyright © 2014, Innolution, LLC. All Rights Reserved.
Restaurant and manger failed to grasp fundamental
principles of running long-term profitable restaurant
chain
Failed to evaluate specific actions in the context of an
economic framework based on those principles
Many organizations do good team-level Scrum, yet
don’t get desired business results because they fail
to grasp the fundamental principles that underlie
Scrum and how those principles should be used in
an economically sensible way

5
90 minutes from now…
You will walk out of here knowing the
three principal inhibitors to
organizational success with Scrum…
And how to use Economically Sensible
Scrum to address them

6
Scrum framework
Art available at: http://www.innolution.com/resources
Scrum isn’t sufficient for success,
Economically Sensible Scrum is

8
Approaches

9
ScrumBut(t) – violations of the
Scrum framework
We do Scrum, but…
Sprints are 8 weeks
No product owner
Daily scrums on M-W-F
Sprint planning is 2 days
Etc…

10
What if there are no Scrum
“violations?”
VIOLATION
YOUR USE OF SCRUM VIOLATES A
CORE PRACTICE AND IS HEREBY
DEEMED TO BE A SCRUMBUT
YOUR TEAM PHOTO HAS BEEN RECORDED
Do no violations = success with Scrum?

11
Three inhibitors to success using
Scrum
Ignorance or misapplication of core agile principles
during development
Failure to apply agile principles throughout the
value chain
Failure to structure teams in an economically
sensible way
Overall, not applying core agile principles in an
economically sensible way

12
Agile principles provide context for
inspecting & adapting
People who apply Scrum without understanding its
underlying principles lack the necessary context to
understand why they are doing things and when and
how best to inspect and adapt their approaches

13
Agile principles make
organizations robust & antifragile
Fragile
Harmed by
disorder
Robust
Resilient to
disorder
Antifragile
Benefits from
disorder
AgileWaterfall
Embracing Agile principles makes
the development process and
organization robust and at times
antifragile to the disorder of
uncertain events, avoiding harm
and reaping benefits of uncertainty

14
Economically sensible scrum

15
Economics – universal language of
product development

16
We need an economic framework
Based on Reinertsen “The Principles of Product Development Flow: Second Generation Lean Product Development”

17
Example: waste
Waste 1 Waste 2 Waste 3 Waste 4
Multiple forms
of waste
Can’t eliminate
them all
$ $$$$ $$ $$$
Determine which
cause most
economic damage

18
Example: cost of delay
Lead time
Variability
Money
Lead time
If you have to wait 3 weeks for the UX team to
design your UIs, and that delay could be
eliminated by having a UX designer on your team,
what would be the cost of the UX-team delay (in
lifecycle profits)?

Ignorance or
Misapplication of
Core Agile
Principles During
Development

20
Misunderstanding of when change
occurs
We like Scrum,
because we can
make changes
anytime we want!
Holly *?&! they
can’t just change
things whenever
they want!

21
Economically sensible change

22
Misunderstanding of just-in-time
Holly *?&! This
sounds like total
chaos!!!
With Scrum we
do everything
just-in-time!

23
Balance up front predictive with
adaptive just in time

24
Recognize inventory (WIP) waste
Manufacturing inventory
is both physically and
financially visible
Product-development inventory
is knowledge assets that are
physically and financially
invisible

25
Focus on Idle Work Not Idle
Workers
Watch the Baton Not the Runners

26
Fast, flexible flow

27
Economically sensible planning

Failure to Apply
Scrum Principles
Throughout the
Value Chain

29
Example value chain

30
Downstream misaligned

31
Do Agile Here
Internal management misaligned
Develop in an Agile way, but still provide all of the
same plan-driven artifacts (e.g., extensive up-front
requirements, full budget, and precise schedule)
like before to get the project approved

32
Sales Misaligned

33
Portfolio planning misaligned

34
Partners misaligned
Fixed
FixedFixed
Contract

35
Protection of the fiefdoms
Sure, we can do
Scrum, as long as
I don’t have to
change anything in
my group!
George’s
Group
Me too!
Me too!
Me too!
Me too!

36
Failure to see the whole
Optimizing locally frequently sub-
optimizes the system

Failure to
Structure Teams
in an Economically
Sensible Way

38
Economically sensible teaming
Reduce multitasking
Scaling teams based on economics, not dogma
Embrace T-shaped skills
Create and maintain long-lived teams

39
Reduce the amount of multitasking
Not about keeping people busy

Cost of multitasking
Clark and Wheelwright (1992) studied multi-tasking and
determined that when working on more than two projects,
a person’s time spent on value-adding work drops rapidly

41
Teams with T-Shaped skills

42
Team longevity
Product 1 PB 1 Feature Team A
Product 2 PB 2 Feature Team A
?

43
Economics favor long-lived teams
More productive than newly
formed groups
Team familiarity can
positively impact efficiency
and quality of team output
Has a shared velocity and
estimating history that can
be used during planning
Have established trust and
team identity and integrity

44
Scaling with multiple teams
As the scope of work gets
larger and one team is no
longer sufficient, what is your
scaling strategy?

45
Discipline teams

46
Location teams
New York Mumbai
New York Mumbai
Deliberately
Distributed
Teams Team 2
Team 1
Team 1 Team 2
Coordinating
Collocated
Teams

47
Architectural layer teams
GUI
Middle Tier
Database

48
Component teams
Example component: Routing algorithms
(component) inside of a GPS

49
Feature teams

50
Feature
Example feature team working on
end-customer feature

51
Feature team tasks

52
(This looks like a feature)
(GUI Team) (Middle-tier Team) (Database Team)
Example “feature” to a component
team

53
Feature
That which is a feature to a component team is a task to a feature team
That which is a feature to a component
team is a task to a feature team

54
Don’t scale based on dogma!
Do you honestly think there is a single answer
to scaling that universally applies to all
situations (sizes and types of organizations)?
Everyone knows
feature teams
are better!
Nuts! Component
teams promote
conceptual
integrity & reuse!

Component teams (single source)

Component teams (multiple
sources)

Combined feature & component
teams

58
Fast, flexible flow

59
Summary
Performing all Scrum practices...
using proven approaches…
Need to apply Scrum
on foundation of core agile principles
within an economic framework that
allows sensible tradeoffs

Contact info for Ken Rubin
Email: krubin@innolution.com
Website: www.innolution.com
Phone: (303) 827-3333
LinkedIn: www.linkedin.com/in/kennethrubin
Twitter: www.twitter.com/krubinagile
Facebook: www.facebook.com/InnolutionLLC
Essential Scrum: A Practical
Guide to the Most Popular
Agile Process
www.essentialscrum.com
Comparative Agility Website www.comparativeagility.com

Economically Sensible Scrum -- Scrum Gathering New Orleans 2014

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