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Fully Distributed Scrum
                 Linear Scalability of Production between
                         San Francisco and India
Guido Schoonheim                                           Jeff Sutherland
    CTO, Xebia                                          Co-creator of Scrum
gschoonheim@xebia.com                               jeff.sutherland@scruminc.com
                                                   Chairman Scrum Training Institute
                                                              © 1993-2009 Jeff Sutherland & Xebia B.V.
software development
   done right
                             About Xebia
    India, Holland, France
    200 people
    100% Agile
    Java, Flex, CMS/Portal
    What we do:
        •   Agile offshoring
        •   Software development
        •   Agile consulting & training
        •   IT Architecture
                                          Core values:
                                          • People first
                                          • Customer intimacy
                                          • Quality without compromise
                                          • Share knowledge
                                                                © 1993-2009 Jeff Sutherland & Xebia B.V.
“If there are n workers on a project, there are
  (n2-n)/2 interfaces across which there may
  be communication, and there are potentially
  almost 2n teams within which coordination
  must occur.
The purpose of organization is to reduce the
  amount of communication and coordination
  necessary; hence organization is a radical
  attack on the communication problem.”

                                -- Fred Brooks
                                       © 1993-2009 Jeff Sutherland & Xebia B.V.
© 1993-2009 Jeff Sutherland & Xebia B.V.
Bell Labs Pasteur Project
                  James Coplien
 Hundreds of case studies show that “communication
  saturation” is directly correlated with high productivity
  in software development.
 Face to face communication in cross-functional team
  can increase productivity 50 times over waterfall
  teams
 This is why first Scrum team implemented daily
  meetings and performance over 20 times average
  waterfall performance was achieved with some teams

The “radical attack” of Scrum on the communication
  problem works for co-located teams, but can it work
  for distributed teams?

                                                  © 1993-2009 Jeff Sutherland & Xebia B.V.
Success factors in offshoring
Lower costs of labor
Capture talent not available locally
Increase and decrease project size without
 layoffs

We count this as successful only if quality and
 productivity match those locally




                                           © 1993-2009 Jeff Sutherland & Xebia B.V.
Outsourcing the traditional way
 What happens if you outsource $2M of
  development?
   – Industry data show 20% cost savings on average
 Outsourcing from PatientKeeper to Indian waterfall
  team:
   – Two years of data showed breakeven point occurs
     when Indian developer costs 10% of American Scrum
     developer
   – Actual Indian cost is 30%
 $2M of Scrum development at my company costs
  $6M when outsourced to waterfall teams
 Never outsource to waterfall teams. Only outsource
  to Scrum teams.

                                                © 1993-2009 Jeff Sutherland & Xebia B.V.
Distributed/Outsourcing Styles


  Isolated Scrums




 Distributed Scrum of Scrums




 Fully Distributed Scrums




                               © 1993-2009 Jeff Sutherland & Xebia B.V.
Isolated Scrums
Works when you have local PO (=separate
 project)
Otherwise you are doing waterfall with an
 iterative development team
Just beats around the bush, results in classic
 integration problems and code ownership
Still large degree of us / them


     Isolated Scrums

                                       © 1993-2009 Jeff Sutherland & Xebia B.V.
Distributed Scrum of Scrums

Recommended by Scrum Alliance
Recognizes that there is a link
Does not give us rich communication to
 close the gap
Still accepts the problem of distance as a
 given!




                                      © 1993-2009 Jeff Sutherland & Xebia B.V.
Fully Distributed Scrum
             Xebia OneTeam model
 Xebia (Netherlands) projects start localized with half
  Dutch and half Indian team members.
 After establishing localized hyperproductivity, they move
  the Indian members of the team to India and show
  increasing velocity with fully distributed teams.
 Running many distributed Scrum projects since 2006,
  Xebia has systematically productized a model, similar to
  SirsiDynix for high performance, distributed, offshore
  teams with linear scalability and outstanding quality.




                                                    © 1993-2009 Jeff Sutherland & Xebia B.V.
Aren’t Agile and Offshoring
       like oil and water?
  Good hyperproductive Agile teams are
 colocated with shared ownership, shared
      responsibility, high interaction




   And then you want to distribute them
halfway around the planet? Are you crazy?
                              © 2008 Xebia B.V.

                                                  © 1993-2009 Jeff Sutherland & Xebia B.V.
Mixing both worlds makes
           a killer combination
  Agile hyperproductivity and
  quality combined with
  offshoring benefits:
   – Availability of talent
   – Scaling up/down with
     knowledge retention and without
     local layoffs
   – Cost reduction


Solution: Fully Distributed Scrum


                                       © 1993-2009 Jeff Sutherland & Xebia B.V.
The real problem with distribution
        is indeed distance
Geography
Time zones
Culture
Language
Different standards
No shared ownership
Us – Them

It’s all a form of distance between people
   increasing the cost of communication
                                        © 1993-2009 Jeff Sutherland & Xebia B.V.
How do we bridge that gap?




            =

                        © 1993-2009 Jeff Sutherland & Xebia B.V.
Or… we can look at the people




                         © 1993-2009 Jeff Sutherland & Xebia B.V.
© 1993-2009 Jeff Sutherland & Xebia B.V.
Getting into the same mindspace
We are looking for:
• Shared ownership
• Shared context
• Personal relationships
• Team culture and standards
• Shared Agile value system

We need to tie people closely together with shared goals:
SCRUM!



                                                 © 1993-2009 Jeff Sutherland & Xebia B.V.
A day in the life...


Local standup                                                               India

                                                                                        Update Scrum board


                              Stand up


 9:00      10:00   11:00      12:00        13:00       14:00        15:00    16:00   17:00    18:00
                       TIME
                       LINE
                                                           TIME
                                                           LINE
                              9:00       10:00     11:00          12:00     13:00    14:00     15:00     16:00         17:00          18:00




                              Stand up

                                                                                                                         Update Scrum board
                                                                             NL



                                                                                                             © 1993-2009 Jeff Sutherland & Xebia B.V.
What do you do if you have no time
         overlap at all?




                            © 1993-2009 Jeff Sutherland & Xebia B.V.
Case study: TBD.com    software development
                              done right




                      © 1993-2009 Jeff Sutherland & Xebia B.V.
Engagement profile
Goal is to create a cross company, cross
 culture, cross timezone team
Mixed TBD people and Xebia people
6 week pilot followed by 8 month project
Quick co-located setup in India
Total team of 7 people



                                   © 1993-2009 Jeff Sutherland & Xebia B.V.
TBD.com as a modern Java project


YUI
   Spring Web MVC
JSP 2.0




                          © 1993-2009 Jeff Sutherland & Xebia B.V.
Initial setup
Product Owner and tech lead to India
Knowledge transfer & technical setup
Norming session & evaluation model
After one week of setup first sprint is
 kicked off
After one week of co-located development
 TBD staff travels back


                                  © 1993-2009 Jeff Sutherland & Xebia B.V.
Modifying the Scrum cycle
All large Scrum meetings are shared with
 video conferencing
Daily standup for Indian team members
 with US Proxy, rotating role
Daily wiki & Scrum board updates
Weekly standup meeting with entire team
Shifting work hours is limited to avoid
 fatigue

                                   © 1993-2009 Jeff Sutherland & Xebia B.V.
Agile practices
Once code base
Shared definition of done
Everyone is equal
Everyone pulls from same sprint backlog
Full set of XP practices implemented
Distributed design
Digital Scrum tooling (Pivotal tracker,
 JIRA, Confluence)
                                   © 1993-2009 Jeff Sutherland & Xebia B.V.
TBD.com productivity

               Average Per Person Velocity
Story Points




                  12

                  10

                  8

                  6

                  4

                  2

                  0
                                                          1



                                             Iterations




                                                              © 1993-2009 Jeff Sutherland & Xebia B.V.
Project review in India by
Mary & Tom Poppendieck




                         © 1993-2009 Jeff Sutherland & Xebia B.V.
Focusing on business value
                         Member Growth                                                 Monthly Page View per visit                                        Monthly Page Views
                80,000                                                               20.00                                                        6,000,000




                                                    Number of page views per visit
                                         January                                                                January                                                                       January
                70,000
                                                                                                                                                  5,000,000




                                                                                                                           Number of page views
                                         February                                                               February                                                                      February
                60,000                                                               15.00
Total Members




                                         March                                                                  March                             4,000,000                                   March
                50,000
                                         April                                                                  April                                                                         April
                40,000                                                               10.00                                                        3,000,000
                                         May                                                                    May                                                                           May
                30,000                                                                                                                            2,000,000                                   June
                                         June                                                                   June
                20,000                                                                5.00                                                                                                    July
                                         July                                                                   July                              1,000,000
                                                                                                                                                                                              August
                10,000                   August                                                                 August
                                                                                                                                                         0
                    -                                                                 0.00
                                                                                                                                                               Time
                           Time                                                                Time




                                                                                                                                                              © 1993-2009 Jeff Sutherland & Xebia B.V.
Success factors
Same level of talent on both sides
Indian developers very experienced in Agile
 and modern Java technology
Extra Xebia expertise available as needed
Matching company cultures
Transparency and openness on business
 drivers by TBD.com
Evaluation system brings out expectations
Scrum cycle facilitates all communication

                                      © 1993-2009 Jeff Sutherland & Xebia B.V.
Difficulties faced
Limited travel possible
Distributed demos with external stakeholders
 are hard to organize
Distributed design is limited due to little
 overlap
Some work is local, like performance tuning
 the hardware environments with provider
 staff


                                      © 1993-2009 Jeff Sutherland & Xebia B.V.
Customer success factors
Cost reductions
Availability of skilled talent
24/7 support by development team
Scaling up/down without layoffs and with
 full knowledge retention

Because of Fully Distributed Scrum
 TBD.com got the max. offshoring benefits

                                   © 1993-2009 Jeff Sutherland & Xebia B.V.
Summary

 Fully Distributed Scrum brings Fred Brooks
   “Radical Attack on the communication
  problem” to distributed development. It
        works around the entire globe.

This makes it the recommended way to apply
              Agile to offshoring

                                   © 1993-2009 Jeff Sutherland & Xebia B.V.
Fully Distributed Scrum solves the
      complete offshoring challenge
Guido Schoonheim                     Jeff Sutherland
    CTO, Xebia                    Co-creator of Scrum
gschoonheim@xebia.com         jeff.sutherland@scruminc.com
                             Chairman Scrum Training Institute
                                        © 1993-2009 Jeff Sutherland & Xebia B.V.

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Fully Distributed Scrum Schoonheim Sutherland Agile2009

  • 1. Fully Distributed Scrum Linear Scalability of Production between San Francisco and India Guido Schoonheim Jeff Sutherland CTO, Xebia Co-creator of Scrum gschoonheim@xebia.com jeff.sutherland@scruminc.com Chairman Scrum Training Institute © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 2. software development done right About Xebia  India, Holland, France  200 people  100% Agile  Java, Flex, CMS/Portal  What we do: • Agile offshoring • Software development • Agile consulting & training • IT Architecture Core values: • People first • Customer intimacy • Quality without compromise • Share knowledge © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 3. “If there are n workers on a project, there are (n2-n)/2 interfaces across which there may be communication, and there are potentially almost 2n teams within which coordination must occur. The purpose of organization is to reduce the amount of communication and coordination necessary; hence organization is a radical attack on the communication problem.” -- Fred Brooks © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 4. © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 5. Bell Labs Pasteur Project James Coplien  Hundreds of case studies show that “communication saturation” is directly correlated with high productivity in software development.  Face to face communication in cross-functional team can increase productivity 50 times over waterfall teams  This is why first Scrum team implemented daily meetings and performance over 20 times average waterfall performance was achieved with some teams The “radical attack” of Scrum on the communication problem works for co-located teams, but can it work for distributed teams? © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 6. Success factors in offshoring Lower costs of labor Capture talent not available locally Increase and decrease project size without layoffs We count this as successful only if quality and productivity match those locally © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 7. Outsourcing the traditional way  What happens if you outsource $2M of development? – Industry data show 20% cost savings on average  Outsourcing from PatientKeeper to Indian waterfall team: – Two years of data showed breakeven point occurs when Indian developer costs 10% of American Scrum developer – Actual Indian cost is 30%  $2M of Scrum development at my company costs $6M when outsourced to waterfall teams  Never outsource to waterfall teams. Only outsource to Scrum teams. © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 8. Distributed/Outsourcing Styles Isolated Scrums Distributed Scrum of Scrums Fully Distributed Scrums © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 9. Isolated Scrums Works when you have local PO (=separate project) Otherwise you are doing waterfall with an iterative development team Just beats around the bush, results in classic integration problems and code ownership Still large degree of us / them Isolated Scrums © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 10. Distributed Scrum of Scrums Recommended by Scrum Alliance Recognizes that there is a link Does not give us rich communication to close the gap Still accepts the problem of distance as a given! © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 11. Fully Distributed Scrum Xebia OneTeam model  Xebia (Netherlands) projects start localized with half Dutch and half Indian team members.  After establishing localized hyperproductivity, they move the Indian members of the team to India and show increasing velocity with fully distributed teams.  Running many distributed Scrum projects since 2006, Xebia has systematically productized a model, similar to SirsiDynix for high performance, distributed, offshore teams with linear scalability and outstanding quality. © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 12. Aren’t Agile and Offshoring like oil and water? Good hyperproductive Agile teams are colocated with shared ownership, shared responsibility, high interaction And then you want to distribute them halfway around the planet? Are you crazy? © 2008 Xebia B.V. © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 13. Mixing both worlds makes a killer combination Agile hyperproductivity and quality combined with offshoring benefits: – Availability of talent – Scaling up/down with knowledge retention and without local layoffs – Cost reduction Solution: Fully Distributed Scrum © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 14. The real problem with distribution is indeed distance Geography Time zones Culture Language Different standards No shared ownership Us – Them It’s all a form of distance between people increasing the cost of communication © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 15. How do we bridge that gap? = © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 16. Or… we can look at the people © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 17. © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 18. Getting into the same mindspace We are looking for: • Shared ownership • Shared context • Personal relationships • Team culture and standards • Shared Agile value system We need to tie people closely together with shared goals: SCRUM! © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 19. A day in the life... Local standup India Update Scrum board Stand up 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 TIME LINE TIME LINE 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 Stand up Update Scrum board NL © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 20. What do you do if you have no time overlap at all? © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 21. Case study: TBD.com software development done right © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 22. Engagement profile Goal is to create a cross company, cross culture, cross timezone team Mixed TBD people and Xebia people 6 week pilot followed by 8 month project Quick co-located setup in India Total team of 7 people © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 23. TBD.com as a modern Java project YUI Spring Web MVC JSP 2.0 © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 24. Initial setup Product Owner and tech lead to India Knowledge transfer & technical setup Norming session & evaluation model After one week of setup first sprint is kicked off After one week of co-located development TBD staff travels back © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 25. Modifying the Scrum cycle All large Scrum meetings are shared with video conferencing Daily standup for Indian team members with US Proxy, rotating role Daily wiki & Scrum board updates Weekly standup meeting with entire team Shifting work hours is limited to avoid fatigue © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 26. Agile practices Once code base Shared definition of done Everyone is equal Everyone pulls from same sprint backlog Full set of XP practices implemented Distributed design Digital Scrum tooling (Pivotal tracker, JIRA, Confluence) © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 27. TBD.com productivity Average Per Person Velocity Story Points 12 10 8 6 4 2 0 1 Iterations © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 28. Project review in India by Mary & Tom Poppendieck © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 29. Focusing on business value Member Growth Monthly Page View per visit Monthly Page Views 80,000 20.00 6,000,000 Number of page views per visit January January January 70,000 5,000,000 Number of page views February February February 60,000 15.00 Total Members March March 4,000,000 March 50,000 April April April 40,000 10.00 3,000,000 May May May 30,000 2,000,000 June June June 20,000 5.00 July July July 1,000,000 August 10,000 August August 0 - 0.00 Time Time Time © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 30. Success factors Same level of talent on both sides Indian developers very experienced in Agile and modern Java technology Extra Xebia expertise available as needed Matching company cultures Transparency and openness on business drivers by TBD.com Evaluation system brings out expectations Scrum cycle facilitates all communication © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 31. Difficulties faced Limited travel possible Distributed demos with external stakeholders are hard to organize Distributed design is limited due to little overlap Some work is local, like performance tuning the hardware environments with provider staff © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 32. Customer success factors Cost reductions Availability of skilled talent 24/7 support by development team Scaling up/down without layoffs and with full knowledge retention Because of Fully Distributed Scrum TBD.com got the max. offshoring benefits © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 33. Summary Fully Distributed Scrum brings Fred Brooks “Radical Attack on the communication problem” to distributed development. It works around the entire globe. This makes it the recommended way to apply Agile to offshoring © 1993-2009 Jeff Sutherland & Xebia B.V.
  • 34. Fully Distributed Scrum solves the complete offshoring challenge Guido Schoonheim Jeff Sutherland CTO, Xebia Co-creator of Scrum gschoonheim@xebia.com jeff.sutherland@scruminc.com Chairman Scrum Training Institute © 1993-2009 Jeff Sutherland & Xebia B.V.