Agile- To Infinity and Beyond
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The document discusses how agile principles can be applied beyond software development to other domains like business operations. It provides examples of how agile has been used to transform organizations and improve processes. The talk will review agile foundations, examples of other applications of agile, and the latest adaptations of the agile framework.
Agile- To Infinity and Beyond
- 1. Agile-To Infinity and Beyond and So Much More Than Just Agile Software Agile is a tool that is most often associated with the software process but like Buzz Lightyear in the movie Toy Story it can be applied to so much more. This talk will review some of the foundations of the agile process and look at the transformational adaptations of the agile framework. The talk will give examples of other applications and will explore some of the latest applications.
- 2. Agile-To Infinity and Beyond and So Much More Than Just Agile Software David Smith CEO HBMGInc. dsmith@HBMGINC.com linkedin.com/in/davidsmithaustin
- 3. Outline 1. Review Agile 2. What we have learned 3. Transformation 4. So What
- 4. Delivering business value is hard… “Of the work executed: “Many (possibly most) organizations lose as much as 45% of their total revenues due to costs associated with low quality” – Six Sigma “Some 75 percent of most large-scale J2EE projects fail by missing both time and budget projections …” – Mark Driver, Gartner “64% of features actually delivered are either rarely or never used” – Jim Johnson, Standish Group 4
- 5. Why? Technological innovation is now the most important driver for competitive success – Many firms earn over one-third of sales on products developed within last five years Product life cycles ( time between product introduction to market and its withdrawal) – Software 4-12 months – Computer hardware 12-24 months – Large home appliances 18-36 months Copyright, 2011 © HBMG, Inc.
- 6. Business, Knowledge, and Innovation Landscape • Typically 80% of the key knowledge (and value) is held by 20% of the people – we need to get it to the right people • Only 20% of the knowledge in an organization is typically used (the rest being undiscovered or under- utilized) • 80-90% of the products and services today will be obsolete in 10 years – companies need to innovate & invent faster Copyright 2012@ HBMG Inc.
- 7. Definitions The term agile can be defined as 1) marked by ready ability to move with quick easy grace, or 2) having a quick resourceful and adaptable character (Merriam-Webster 2002 3) Latin word agilis, which means “easily moved, light, nimble, active”.
- 8. Brief History of Development Methodologies AGILE e.g. XP (Kent Beck) Methodologies RUP (Rational) user Incremental, driven, low process RAD Object oriented, (James Martin)iterative, time-boxed, user driven Prototyping, RUP iterative, time-boxed, SPIRAL MODEL user driven RAD WATERFALL (Royce) (Barry Boehm) V-MODEL (Anon) Requirements, design Iterative Spiral Model implementation, Aligns testing to verification & Waterfall maintenance development V-Model Waterfall 1960 1970 1980 85 91 98 99 8
- 9. The Agile Manifesto (2001) • Not an “ideal” way - this comes from real experience We are uncovering better ways of developing software by doing it and helping others do it. Through this work we have come to value: – Individuals and interactions over processes and tools – Working software over comprehensive documentation – Customer collaboration over contract negotiation – Responding to change over following a plan http://agilemanifesto.org
- 10. The Agile Manifesto–a statement of values Agile Practice favors: Individuals and over Process and tools interactions Comprehensive Working Product over documentation Customer over Contract negotiation collaboration Responding to over Following a plan change
- 11. What is Agile Software Development? • Easily moved, light, nimble, active software processes • Fitting the process to the project • Avoidance of things that waste time
- 12. Agile Methods Several methods that are often cited to be agile, e.g., – Extreme Programming – Crystal Family – Open Source – Adaptive Software Development (ASD) – SCRUM – Feature Driven Development (FDD) – Dynamic System Development Method (DSDM) In addition, e.g., Rational Unified Process (RUP) and Capability Maturity Model (CMM) can be evaluated from Agile Manifesto point of view Further, organisations often develop their own methods, or modify existing methods to better suit their objectives – These are called local method development or in-house methods
- 13. Characteristics of an Agile Process • Empirical (relies on observation and experience) • Lightweight • Adaptive • Fast – but never hurried • Exposes wastefulness • Customer-centric • Pushes decision making to lower levels • Fosters trust, honesty and courage • Encourages self-organization
- 14. The Big Paradigm Shift We’re used to Agile Wants Time Lines We’re done when it’s done. Project Managers Disciplined self managing teams. Fixed Budgets Assumed change means no fixed cost. Predictable, all at once deliverables Incremental deliverables driven by value and constant learning. Multiple matrixed units in multiple Co-location – one team. locations make up team Communication by Document Information Radiators. Customer is removed Customer is part of team. Certain Knowledge Action
- 15. Agile Project Management Can wrap around most existing practices – But most effective when the practices are also Agile Supports Iterative and incremental development Uses Inspect/Adapt principles – For project planning (daily/iteration/release) – To ensure highest customer value Tracks time remaining only – Does not track • People. Accuracy of estimates. Task dependencies Example methodologies: Scrum, Crystal
- 17. Agile Engineering Essential Practices – Regular refactoring (many times daily) • This produces well-componentized designs, clear APIs and clean code without duplications – Frequent check ins (many times daily) – Unit Testing • Leading to Test Driven Development (TDD) – Continuous Build and Integration • Running automated tests on each build – Just-in-time code reviews (e.g. pair programming) Example methodologies: XP, Agile Modeling
- 18. Agile - XP The Values Communication Simplicity Feedback Courage Respect
- 19. Agile Testing Early involvement – An Agile project begins when testers convert high-level requirements into testable specifications. Work as part of the development team – The testers work with the developers to pick unit test and acceptance test frameworks, and to test the software in parallel with development. This requires a shift in thinking. Automate everything – (wherever possible) Test early, test often – Never leave the testing until the end
- 20. Customer Customer requirements Project Iteration Requirements Management plan Management Estimated CR Project planning Estimations Communication Design Testing scenarios Test-before- code Code Coding standard Test software product
- 21. The Agile Customer “Customer’ is a role, not a person – Also known as Product Manager, Product Owner – Proxy for the entire customer group Responsible for the Release Plan Responsible for managing the Product Backlog Determines business value & priority on a regular basis Provides information to development team for estimation purposes Works with testers to produce clear, testable user stories for each iteration Inspects software regularly (e.g. runs acceptance tests) and provides feedback to the development team
- 22. 40 years of process* development * Process, Method, Methodology, Late ’60s whatever... Ericsson Approach ‘87 –’96 CMM Objectory Process SW-CMM XP, SCRUM & ‘96 –’00 The Unified “Lightweight Process Methods” XX-CMM Agile Manifesto ‘01 –’06 IBM RUP CMMI Everyone's Agile EssUP ‘07 –> ? The Rise of Practices ?
- 23. Adoption Detractors • Inconsistent and diverse definitions • Lack of theoretical grounding • Different way of thinking – Role changes – Situational customization • Solid people skills required • Short iterations inhibit long-term perspective • Risks – Harder to manage feature creep and customer expectations – Difficult to quantify cost, time, quality.
- 24. Outline 1. Review Agile 2. What we have learned 3. Transformation 4. So What
- 25. What have we learn? They’re hard to learn… You can get knowledge from books . . . ….or from a web-site.
- 26. Agile vs. Plan Driven Processes 1. Small products and 1. Large products and teams; scalability teams; hard to scale limited down 2. Untested on safety- 2. Handles highly critical critical products products; hard to scale 3. Good for dynamic, but down expensive for stable 3. Good for stable, but environments. expensive for dynamic 4. Require experienced environments Agile personnel 4. Require experienced throughout personnel only at start 5. Personnel thrive on if stable environment freedom and chaos 5. Personnel thrive on structure and order
- 28. There are 100’s of so-called practices… Business Test-Driven Scrum Product-Line Risk-Driven Systems Modeling Development Engineering Iterative Engineering Development Aspect Robustness Retro- Business Process Use-Case Pair Orientation Analysis spectives Re-Engineering Driven Programming Development PSP User Stories SOA Prince2 Use-Case Program Modeling Management …but are really all the same kind of thing?
- 29. Practices are ’end-to-end’ aspects of process Practices cross-cut the traditional EssUP Practices software engineering disciplines Architecture Iteration Use Case $ Component Product Process Team Modeling
- 30. Self Adaptive Process Changes over time Alters itself to the task at hand • Starts off with a problem that can be improved as a project continues • Should adapt to the team that uses it as well as the problem
- 31. 1. Review Agile 2. What we have learned 3. Transformation 4. So What
- 32. • During the 1990s, management commentators such as Peter Senge were pursuing learning organizations, systems thinking and dynamic business as the new orthodoxy in organizational studies (Senge, 1990) • General Motors, for example tried to become a ‘boundary less organization’, characterized by fluid boundaries between hierarchies and units, between inside and outside, and across different geographic locations.
- 33. Traditional Approach to Business Operations • Vertical structure that focuses only on own area • Areas that carry out similar tasks tend to have their own distinct set of procedures • Often different areas have their own terminology for what is in effect the same thing • Vital information is often stored locally and not available centrally • Communications between different areas can be patchy
- 34. Problems with Traditional Approach • Over time processes tend to become overly complex • Flexibility and mobility is difficult • Often there is duplication of work and information • Can lead to poor customer service and customer relationships • Plethora of IT Systems doing similar work – Growing maintenance bill – Not best use of resources
- 35. Approach to Change Models to introduce change into the organisation – Incremental approach – Step change – Thin threads Scope of change island or wholesale Prerequisites for change Blockers & enablers - timing – Key influencers – Other changes – Disasters
- 36. What to change – Best Practices Most Useful Collaborative working Iterative projects Visual Modelling Risk based prioritisation Requirements Management Change Management Configuration Management Tools Traceability Least Useful 36
- 37. Agile organizations • Agile organizations are ‘hyper strategic’, tackling challenges wrought by turbulent external environments, while also preparing for future changes that are not yet apparent • They move through an agility cycle, seeking out and interpreting information to inform short, medium and long term decision making and action.
- 38. In practice, agility features the following four characteristics: • Short term frontline responsiveness • Strategic adaptation • Outcomes focus • Preventing or reducing problems before they arise.
- 39. AGILITY CYCLE future emerging environments trends and shape issue scan and forecast AGILITY CYCLE Sense and opportunities to respond design translate information Innovation into actionable opportunities solutions and products and risks
- 40. 1. Review Agile 2. What we have learned 3. Transformation 4. So What
- 41. How the World Has Changed • Most businesses are global at launch • Businesses are increasingly real time • Convergence has become a way of life • Science, product development, and product cycles are compressing • The source of value has shifted for manufacturing • Competencies, future capabilities, and “ultra tech” are the prime driver • The traditional value chain is forever dead
- 42. Imagine…each time we ordered a meal at our favorite restaurant, the owners went out shopping for the ingredients to cook.
- 43. But don’t go too far I’ve got all this guidance but it doesn’t help me
- 44. Structure – Skunk Works Lockhead Martin needed to develop secret projects, outside formal control Formed in June 1943 – Burbank CA 14 rules to ensure efficiency – similar to XP principles Now seen as technique for introducing change – but … 44
- 45. KELLY'S 14 RULES Kelly’s rules got their start on the XP-80 project in 1943, but it wasn’t until the early 1950’s that they were formalized and set in place as the Skunk Works’ rules of operation. 1. The Skunk Works manager must be delegated practically complete control of his program in all aspects. He should report to a division president or higher. 2. Strong but small project offices must be provided both by the military and industry. 3. The number of people having any connection with the project must be restricted in an almost vicious manner. Use a small number of good people (10% to 25% compared to the so-called normal systems). 4. A very simple drawing and drawing release system with great flexibility for making changes must be provided. 5. There must be a minimum number of reports required, but important work must be recorded thoroughly.
- 46. KELLY'S 14 RULES • 6 There must be a monthly cost review covering not only what has been spent and committed but also projected costs to the conclusion of the program. Don't have the books ninety days late and don't surprise the customer with sudden overruns. 7. The contractor must be delegated and must assume more than normal responsibility to get good vendor bids for subcontract on the project. Commercial bid procedures are very often better than military ones. 8. The inspection system as currently used by the Skunk Works, which has been approved by both the Air Force and Navy, meets the intent of existing military requirements and should be used on new projects. Push more basic inspection responsibility back to subcontractors and vendors. Don't duplicate so much inspection. 9. The contractor must be delegated the authority to test his final product in flight. He can and must test it in the initial stages. If he doesn't, he rapidly loses his competency to design other vehicles.
- 47. KELLY'S 14 RULES 10. The specifications applying to the hardware must be agreed to well in advance of contracting. The Skunk Works practice of having a specification section stating clearly which important military specification items will not knowingly be complied with and reasons therefore is highly recommended. 11. Funding a program must be timely so that the contractor doesn't have to keep running to the bank to support government projects. 12. There must be mutual trust between the military project organization and the contractor with very close cooperation and liaison on a day-to-day basis. This cuts down misunderstanding and correspondence to an absolute minimum. 13. Access by outsiders to the project and its personnel must be strictly controlled by appropriate security measures. 14. Because only a few people will be used in engineering and most other areas, ways must be provided to reward good performance by pay not based on the number of personnel supervised.
- 48. The Open Economy • New business models based on collaboration, co-creation & sharing • Transparency as a normal practice • Conversations (two way communication) • Open interfaces to partners, vendors, suppliers, customers • Common technology and business standards • Service and Experience Mentality
- 49. www.ccplace.con
- 50. Forces that drive the practices used… • Stakeholder relationships • Stakeholder access • Number of requirements • Number of usage scenarios • Novelty of the system • Legal requirements • Business domain • Severity of errors (safety criticalness) • Team distribution and communication Select practices based on the nature of the problem not the nature of the process.
- 52. Evolving—Self Forming A.I. Deep Search Intelligent Intelligent Virtual Agents Marketplaces Group Worlds Weak Inference Intelligence Signals Engines Knowledge Reed’s - Enterprise Speed of Connectivity — Informational Networks XML Semantic Web Self Formation Minds Knowledge Massive Metaweb Multiplayer Digital World Ontologies Knowledge Games Group Life Logs Minds Knowledge Management Bases Life Market Emergent Taxonomics Casting Places Groups Search Engines Enterprise Mobile Wikis WeBlogs Portals Technologies Content Portals Auctions Websites Social SOCIAL MEDIA Networks WEB Groupware People Databases Information Email Community Conference PIMs Computer Portals Calls Conferencing P2P File File Servers Phone Calls Sharing IM Speed of Connectivity — Social Source: David Smith Copyright, 2010 © HBMG, Inc
- 53. The Big Paradigm Shift – some reality We’re used to Agile Wants What Works Time Lines We’re done when it’s done. Time Boxes Project Managers Disciplined self managing Collaboration between Coach teams. and P.O. Fixed Budgets Assumed change means no Cost Boxes – not more than fixed cost. x to spend. Predictable, all at once Incremental deliverables Pre-project user story deliverables driven by value and constant sessions learning. Team spread out Co-location. Core time in room or on phone Communication by Information Radiators & Information Radiators Document Conversations captured electronically and posted. Daily Meetings Customer is removed Customer is in room as part Core time in room and end of team. user interaction
- 55. Agile is a Process and Method to deliver Strategic Business Outcomes (Not Just Software!): ▬ Bringing New Business Models to life faster with “Product & Process Innovation”. ▬ Integrating the new Business Model with the existing one seamlessly without causing dysfunction to the current operations. ▬ Generating Productivity Innovating on the existing Processes (Out of the Box). ▬ Integrating the Process Innovation with the Operational Continuous Improvement practices (Reengineering). In essence, Agile is about the business being able to achieve growth and productivity; without compromising one for the other
- 56. Competing in a Global Business Environment Taylor’s Law Sarnoff’s Law Metcalfe’s Law Reed’s Law (1910 – 1950s) (1960 - 1980) (1980 - 2000) (2000 - Future) Scientific Management “Human Side” Management Quality Management Era E-Manufacturing Value Chain Value Shop Firm Infrastructure Firm Infrastructure Human Resources Management Human Resources Management Infrastructure Technology Development Support Technology Development Procurement Procurement Problem Finding Problem & Acquisition Solving After- Inbound Operations Outbound Marketing sales Logistics Logistics & Sales Service Simon’s Problem Solving Model Choice Control/ Execution Evaluation Value Created in the Assembly Value Created by Transforming Value Created by Providing Value Created By Line (Operations) Inputs Into Products Solutions, Not Services Self Forming Groups •Standardization Parts •Stable Relationships •Lean Manufacturing •Consumer Centric and Processes Design and Delivery •Price Conscious •Shift to Horizontal Structure •Economies of Scale •Flat Corporate •Producer Led Design •Focus on Core Structures •Producer-Centric Competency •Global Companies Design, Mfg., and •Collaborative Virtual •Reliability and Durability Delivery •Regionalism Networks •Producer Led Design •Vertical Orientation •Productivity •Mass Customization •Multinational Trade •Required inventory •Subsidiaries •Transparency buffers •Market Centric •Plant Replication by •Speed and Agility Design & Delivery •Locally Oriented Region •Global Orientation HBMG Inc. Copyright 2009
- 57. Key Points • The future of business is relationships • A collective mentality to problems • People are human and digital • The relationship comes first • Today requires FAST, AGILE, and COLLABORATIVE
- 58. “Planning” is everything. A Plan is NOTHING! DWIGHT EISENHOWER
- 59. In Parting: Be Paranoid “Sooner or later, something fundamental in your business world will change.” Andrew S. Grove, Founder, Intel “Only the Paranoid Survive” Copyright @2008 HBMG Inc.
- 60. In Parting: Be Paranoid “Sooner or later, something fundamental in your business world will change.” Andrew S. Grove, Founder, Intel “Only the Paranoid Survive” Copyright @2008 HBMG Inc.
- 61. Lean Canvas