SlideShare a Scribd company logo
UnderstandingAgile
Are you one of those managers who feel intimidated by Agile? Who would like to know more
about it but lack the confidence to implement it in their organization? If so, then don’t be
disheartened – this book has been written specifically for you, to guide you through the myths
and jargon that surround this very practical methodology.
Using lots of good examples, many of them personal, Understanding Agile is an easy-to-digest
guide aimed at managers who want to use Agile to add value and deliver benefits to their
organization. It clearly explains not only the concepts and essential principles of Agile but
also how to create a sustainable environment in which Agile initiatives can thrive.
Key features include:
• The benefits of using Agile
• Choosing the right approach for your business
• How to make the transition to an Agile culture
• The essential tools and techniques of Agile
• How Agile compares with traditional approaches
• How to deliver and measure value
• How to monitor risk and avoid pitfalls.
Steve Messenger has a wealth of experience in Agile, having worked at a senior level in
many corporate environments. He is the current chairman of the DSDM Consortium.
This book provides invaluable insight and practical help for managers working with Agile teams.
Jennifer Stapleton, independent consultant
This is a book for people who need to grasp the essence of Agile
within a business context. … It should be essential reading for any
manager who needs to know what their Agile teams are doing.
Richard Pharro, CEO, APM Group
9 780117 082946
ISBN 978-0-11-708294-6
www.internationalbestpractice.com
Understanding Agile
A Guide for Managers
STEVE MESSENGER
9981 IBP Understanding Agile COVER v1_0.indd All Pages 18/08/2016 12:43
7211 Greening Service v0_7.indd 4 21/07/2011 12:35
London: TSO
Understanding Agile
A Guide for Managers
10190 IBP Understanding Agile TEXT v0_9.indd 1 01/08/2016 15:18
International Best Practice (IBP) is a framework-neutral, independent imprint of TSO. We source, create
and publish guidance which improves business processes and efficiency. We deliver an ever-expanding
range of best-practice guidance and frameworks to a global audience.
© The Stationery Office 2016
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or
transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise
without the permission of the publisher.
Applications for reproduction should be made in writing to The Stationery Office Limited, St Crispins,
Duke Street, Norwich NR3 1PD.
The information contained in this publication is believed to be correct at the time of manufacture. Whilst
care has been taken to ensure that the information is accurate, the publisher can accept no responsibility
for any errors or omissions or for changes to the details given.
MoP®
, MSP®
, P3M3®
, P3O®
and PRINCE2®
are all registered trade marks of AXELOS Limited.
A CIP catalogue record for this book is available from the British Library.
A Library of Congress CIP catalogue record has been applied for.
First published 2016
ISBN 9780117082946
P002776720 07/16
Published by TSO (The Stationery Office), part of Williams Lea, and
available from:
Online
www.internationalbestpractice.com
www.tsoshop.co.uk
Mail, Telephone, Fax & E-mail
TSO
PO Box 29, Norwich, NR3 1GN
Telephone orders/General enquiries: 0333 202 5070
Fax orders: 0333 202 5080
E-mail: customer.services@tso.co.uk
Textphone 0333 202 5077
TSO@Blackwell and other Accredited Agents
10190 IBP Understanding Agile TEXT v0_9.indd 2 01/08/2016 15:18
iii
Contents
List of figures	 v
List of tables	 vi
About this guide	 vii
Foreword	ix
Preface	x
Acknowledgements	xi
1	 Why should managers adopt an Agile approach?	 1
1.1	 The benefits of Agile	 1
1.2	 The Agile approach	 5
1.3	 Agile myths	 11
1.4	 Agile approaches – what’s different?	 14
2	 Creating a sustainable Agile environment	 15
2.1	 Making and maintaining the Agile environment throughout the organization	 15
2.2	 The role of the manager	 17
2.3	 Instilling an Agile mindset into stakeholders	 19
2.4	 The effect of Agile on processes and procedures	 24
2.5	 Business as usual 	 26
2.6	 Individuals and interactions	 27
3	 Agile governance and organization	 33
3.1	 What is governance?	 33
3.2	 Meeting goals and remaining aligned with business strategy	 34
3.3	 Portfolio-level governance	 35
3.4	Budgeting	 35
3.5	 Developing objectives and vision	 38
3.6	 Governance levels	 39
3.7	 Dealing with change	 42
4	 Agile methods compared and contrasted	 45
4.1	Techniques	 46
4.2	 Development methods	 46
4.3	 Delivery methods and frameworks	 46
4.4	 Full project/programme methods and frameworks	 47
4.5	 Which method is for me?	 47
4.6	 Continual flow and delivery	 56
4.7	Hybrids	 56
4.8	 Mega-projects and scaling for Agile	 57
10190 IBP Understanding Agile TEXT v0_9.indd 3 01/08/2016 15:18
Understanding Agile
iv
5	 Directing Agile initiatives	 59
5.1	 Good Agile leadership	 59
5.2	 Managing the Agile team	 62
5.3	 Risk management	 65
5.4	 Incremental delivery of value	 65
5.5	 Retrospectives and continual improvement	 67
6	 Agile planning	 69
6.1	 Planning approaches and levels	 70
6.2	 Resource planning	 74
6.3	 Planning for incremental delivery	 76
6.4	 Incorporating change	 81
7	 Agile tracking	 83
7.1	 Standard Agile reporting techniques	 83
7.2	 Senior stakeholder reporting	 86
7.3	 Trust and openness	 87
7.4	Hybrids	 88
8	 The Agile organization	 89
8.1	 Agile beyond IT	 89
8.2	 Benefits management	 90
8.3	 Contract management	 91
9	Summary	 95
Appendix A  Agile and Waterfall compared	 97
Appendix B  Risks in Agile	 103
Glossary	107
Bibliography	109
Index		 111
10190 IBP Understanding Agile TEXT v0_9.indd 4 01/08/2016 15:18

v
List of figures
Figure 1.1	 Usage of IT systems	 7
Figure 1.2	 Iterative cycle	 8
Figure 1.3	 Scrum team composition	 9
Figure 1.4	 An example of a complex organization	 13
Figure 2.1	 Distributed Agile team	 29
Figure 3.1	 Gated processes in Agile projects	 38
Figure 3.2	 Decision-making in Agile	 40
Figure 4.1	 Sample hybrid model	 56
Figure 5.1	 DSDM project roles	 63
Figure 5.2	 DSDM programme roles	 65
Figure 6.1	 Agile planning levels	 71
Figure 6.2	 Simple Agile Gantt chart	 74
Figure 6.3	 Agile portfolio prioritization model	 75
Figure 6.4	 Emerging versus planned models	 79
Figure 6.5	 Reversal of iron triangle	 81
Figure 7.1	 Example of a burn-down chart	 84
Figure 7.2	 Example of a burn-up chart	 85
Figure 7.3	 Example of a Kanban board	 86
Figure 8.1	 Benefits decomposition	 91
Figure A.1	 The Waterfall approach	 97
Figure A.2	 Decomposition of a solution	 100
10190 IBP Understanding Agile TEXT v0_9.indd 5 01/08/2016 15:18
vi
List of tables
Table 3.1	 Comparison of budget approaches	 37
Table 4.1	 Agile techniques, methods and frameworks	 48
Table 5.1	 Summary of roles in an Agile environment	 66
Table 6.1	 MoSCoW prioritization	 82
10190 IBP Understanding Agile TEXT v0_9.indd 6 01/08/2016 15:18

vii
About this guide
Who’s it for?
This publication is for managers across all sectors of industry who want to understand what
Agile is and how it can benefit their organizations. It doesn’t matter what level of
management you are – managing Agile projects affects practically all levels. The aim is to
help managers and leaders understand what Agile is and to provide guidance on how to
introduce sustainable Agile approaches and manage them effectively.
Although the main audience is leaders and managers, the content is a comprehensive
foundation in understanding Agile that is as useful to the expert as it is to the novice.
Why do you need it?
Implementing an Agile approach can be a minefield. Many fail before they start because
of the lack of consideration for how Agile can be integrated into existing structures and
cultures, and how to manage that integration. There is now a plethora of different
approaches or methods, and understanding which is the right one for your organization
can be a complex task. This publication provides guidance on all these aspects and will
help you to choose and build a sustainable Agile capability that will be of real benefit to
your organization.
Who’s it by?
Steve Messenger
Steve has been involved in Agile since its inception and was pioneering iterative
approaches (now called Agile) from the mid-1990s. As a senior leader, Steve has
implemented Agile in many diverse organizations, including the highly regulated
pharmaceutical industry, and has successfully managed various projects and programmes
using Agile.
Steve has a strong reputation and global recognition. He has published articles on Agile
project and programme management and scaled Agile, as well as being lead author of
the DSDM®
AgilePgM Agile Programme Management Handbook (2014). He contributed
to the DSDM Agile Project Framework Handbook (2014) and the Agile PMO Pocketbook
(2012). He is also the current chairman of the DSDM Consortium, which is one of the
signatories of the Agile Manifesto.
10190 IBP Understanding Agile TEXT v0_9.indd 7 01/08/2016 15:18
Understanding Agile
viii
Steve now uses his experience to provide training and consultancy to large organizations,
and this keeps him up to date on current Agile thinking, trends and problems.
How is it organized?
Steve has included anecdotes and experiences from his own career in the hope that these
will provide colour and practical guidance. Each chapter is self-contained and can be read
independently.
A summary of what is covered in each chapter is as follows:
●● Chapter 1  Gives an overview of Agile and its principles and explains the benefits.
Various myths surrounding Agile are dispelled.
●● Chapter 2  Explores how to create a sustainable Agile environment, including the
implications for all stakeholders. Provides advice on transitioning to an Agile culture, and
examines the effect on corporate processes and procedures.
●● Chapter 3  Concentrates on governance within an Agile culture, describing how an
Agile approach can thrive while providing assurance to stakeholders. Also provides
advice on decision-making and budgeting, and the role of the business case in Agile.
●● Chapter 4  Looks at the various Agile approaches and methods, providing guidance on
choosing the right one for your organization and how to fit it together with the more
traditional approaches. Looks at blended/hybrid approaches and the benefits of
scaling.
●● Chapter 5  Concentrates on the processes, roles and skills required to manage and
direct Agile initiatives. Leading Agile at scale and managing risk are also covered.
●● Chapter 6  Looks at Agile planning and how this differs from the more traditional
approaches. Covers high-level features (known as ‘epics’) and prioritization, as well as
resource planning and incremental delivery.
●● Chapter 7  Shows how to track and control Agile initiatives, describing the tools and
techniques available. Includes the different tracking and reporting needs of stakeholders
and how to handle hybrid initiatives.
●● Chapter 8  Looks at Agile in the wider organization, examining areas such as benefits
and contract management with respect to Agile.
●● Chapter 9  Concluding notes.
Steve begins each chapter with a quote from the Tao Te Ching, a fundamental text for
Taoism written in the sixth century BCE by Laozi (also known as Lao Tzu). Although not a
Taoist, Steve found that many of the passages related well to the concepts he was trying to
relay. It is also interesting that much of the thinking in Agile has been around that long!
10190 IBP Understanding Agile TEXT v0_9.indd 8 01/08/2016 15:18

ix
Foreword
Richard Pharro, CEO APM Group
Steve Messenger has been using and teaching Agile for a very long time. He will readily
admit that he is still a student of how Agile can be used in the wider business. This
publication brings together more than two decades of his experience as a manager using
Agile techniques in a variety of businesses. He has distilled the essentials into a very
readable format that can be understood by any manager.
This is not a manual for the technician. It is aimed at people who need to grasp the
essence of Agile within a business context. If you are a manager and you want to
understand the real benefits of Agile (namely that it is people-centric and delivers early
benefits) without being hoodwinked by the technical team through a lexicon of jargon, then
this guide is for you. It is an easy read with lots of good examples, some of them very
personal, which bring Agile to life. It also busts the many myths surrounding Agile.
Understanding Agile should be essential reading for any manager who needs to know
what their Agile teams are doing.
Jennifer Stapleton, independent consultant
This publication addresses a real need. Much has been written about how Agile teams are
self-organizing, deciding amongst themselves how best to go about what they are doing,
where they are going and how to monitor their own progress. This all works well at the
individual team level but Agile teams do not work in isolation. They are part of a larger
organization that needs to understand what they are doing and why. Understanding Agile
provides invaluable insight and practical help for managers working with Agile teams.
I have known Steve Messenger for many years and he is ideally positioned to provide this
insight. He has managed and worked with Agile development projects since the mid-
1990s, predominantly in the very highly regulated pharmaceutical industry. This has
equipped him with a strong understanding of how to implement Agile within the constraints
of an existing corporate environment.
Steve is currently chairman of the DSDM Consortium, which has arguably led the field in
the governance of Agile projects and programmes and has moved Agile from its
beginnings in IT to the wider business. Hence this guide is well-founded in its focus on
managers who are wondering how their role is affected when dealing with self-organizing
teams, while still satisfying the needs of the management hierarchy above them.
I would recommend Understanding Agile not only to managers who are new to the Agile
world but also to those who are more experienced – Agile people are always learning
and improving!
10190 IBP Understanding Agile TEXT v0_9.indd 9 01/08/2016 15:18
x
Preface
I was delighted when I was asked to write this publication. I have always been passionate
about the Agile approach and the continual improvement of the capabilities required to run
our businesses, even our lives. For many years, even before Agile was recognized as a
successful methodology, I had thought that working in incremental steps was an obvious,
common-sense thing to do. I had been one of the few voices trying to get organizations to
work in this way.
I am also aware that various levels of management throughout industry have been blinded
by Agile terminology. They do not know enough about Agile to be able to implement it;
they have tried it and become stuck; or they believe it will never work in their organization.
For all these reasons, the value of Agile is not being recognized, and business outcomes
are suffering as a result.
However, all is not lost. I attend many conferences and take pleasure in seeing that the
Agile message is finally gaining attention. But I also see some worrying trends. These have
prompted me to write this guide to help those struggling to gain more knowledge about
Agile implementation. My aim is to provide practical, easy-to-digest advice about Agile,
what it means and how it can be successfully implemented and sustained in organizations.
I want to allay the fears about Agile but at the same time ensure that readers can
implement it with their eyes wide open.
Today Agile is in use throughout many different industries and business areas. I hope that
this publication will help you to gain insight and provide practical guidance on how you
can adopt and implement Agile to add value to your business.
Steve Messenger
Chair, DSDM Consortium
10190 IBP Understanding Agile TEXT v0_9.indd 10 01/08/2016 15:18

xi
Acknowledgements
This publication is endorsed by the DSDM Consortium, and the author and publisher
greatly appreciate the recognition from this organization.
Author acknowledgements
Although I have based this publication on my many years’ experience as a manager
working in an Agile environment, it would not have been possible without the help and
guidance of others. I would like to thank my reviewers for taking the time to read the drafts
and provide me with extremely valuable feedback, which has made the publication far
better than it would have been.
I would particularly like to thank Jennifer Stapleton, who has been instrumental in helping
me focus the publication on its main audience and also provided me with advice and
guidance based on her wide experience in the Agile world.
Finally, I would like to thank the DSDM Consortium for allowing use of their materials and
also for their support in making this publication a reality. The DSDM material used in this
book is copyright of the Dynamic Systems Development Method (DSDM) Limited and
reproduced by permission.
About the reviewers
Ed Holt
Ed Holt of Intrinsica Consulting Ltd has been involved in the development and deployment
of Agile methods for more than 20 years, having co-founded and become the first
chairman of the DSDM Consortium in 1994. His business experience spans the
management of all aspects of sales, marketing and operations in high-tech companies.
While his original focus was very much in the IT project space, his more recent application
of Agile methods, frameworks and techniques demonstrates how business in its widest
sense can benefit.
Manuel Mazán
Manuel Mazán is an experienced Lean Agile consultant for Agiland SAC, with strong
leadership, mentoring, training, facilitation and project management skills. He has proven
results in leading software teams to deliver value and meet organizational goals in complex
technology environments. Manuel is a certified Scrum master, certified Scrum professional
and regular speaker at international conferences in Lean and Agile methods. He currently
works as an Enterprise Agile coach in a worldwide initiative to transform the digital banking
function of one of the biggest banks in Europe and Latin America.
10190 IBP Understanding Agile TEXT v0_9.indd 11 01/08/2016 15:18
Understanding Agile
xii
David Wright
David Wright is a project management professional with expert knowledge in project,
programme and portfolio management. He has won Australian national awards for his
projects and is highly regarded for his advice, assurance and mentoring, while working
closely with lead authors of AXELOS products. David is certified in PMP®
, PRINCE2®
,
MoP®
, P3M3®
and AgilePM and is a certified Gateway Review team leader. He is highly
proficient in MSP®
, P3O®
, OPM3®
and PMI’s Programme and Portfolio Standards. David is
a graduate of the Australian Institute of Company Directors, president of PMI Queensland,
CEO of QVC Solutions and a board director of a credit union.
10190 IBP Understanding Agile TEXT v0_9.indd 12 01/08/2016 15:18
1
1 Why should managers adopt an
Agile approach?
When a man is alive, he is soft and supple.
When he dies, the body becomes hard and stiff.
When a plant is alive, it is soft and flexible.
When it is dead, it becomes dry and brittle.
Therefore, hard and rigid shall lead to death.
Soft and gentle shall lead to life. Lao Tzu
As a leader and manager, I feel that I need to understand a situation, concept or new tool
before deciding whether it is right for my organization. This also helps me to decide on the
approach to take to introduce it. With this in mind, I will spend this introductory chapter
defining Agile.
There are a lot of misconceptions about Agile. For example, I have heard people say,
‘We are Agile – we use Kanban boards,’ but everything else is done as it has always
been. You may also come across those I call ‘Agilistas’. They are dogmatic and claim that
‘If you’re not doing Agile our way, you’re not doing Agile.’ Given the values and mindset
behind Agile, this is quite ironic.
Later, we will look at what Agile actually is, but let’s start by looking at the potential
benefits.
1.1 The benefits of Agile
The 9th Annual State of Agile Report from VersionOne claims 94% of companies surveyed
now use Agile in some form or another. This is an impressive figure, given that Agile as we
know it started only in 2001. It means that Agile is now an established way of working
and has gone beyond the ‘passing fad’ stage. This is further evidenced by the increasing
number of Agile conferences. These are well attended events, and the audience has
changed over the past few years from software developers to senior members of
companies wanting to understand how to implement Agile in a sustainable way in their
organizations.
So what has made Agile so popular? The following are some of the reasons senior
managers want to adopt Agile.
10190 IBP Understanding Agile TEXT v0_9.indd 13 01/08/2016 15:18
Understanding Agile
2
1.1.1 Responsiveness to change
There is an increasing pace of change in all walks of life, but particularly in business.
Businesses can no longer afford to ignore the changes happening or to react too slowly to
them. The successful businesses of the future will be those that are highly responsive to
change.
Small, empowered teams with defined goals are central to all Agile thinking. These teams
can react to and embrace change quickly and redirect their efforts to the current business
priorities.
The Agile approach also emphasizes delivery of value early and often. This means that the
organization can realize benefits sooner, benefiting from otherwise lost opportunities and
potentially beating competitors to the marketplace.
1.1.2 Better value for money
We all need to do more for less. A very competitive world market squeezes prices and
demands that we keep costs down.
The Agile approach is to concentrate on the business need and on what will add real
value. We focus on delivering the outcomes that add significant value to the organization.
We reduce waste by, for example, not implementing business changes that were never
required or add little value. It also ensures efficient use of all resources, such as money,
people’s time and equipment.
The Agile approach can be applied at many levels of an organization. The prioritization
techniques, for example, can be used at the portfolio level to determine exactly which
high-level initiatives will add most value to the organization. Introducing a big initiative in
small, frequent steps allows your organization to get most benefit as early as possible. You
can also react quickly to change, moving resource and budgets to other initiatives if they
become more urgent or represent better value for money.
1.1.3 Pleasing the customer
To remain competitive, all businesses need to please their customers and build relationships
that can last well into the future. This is obviously true for our external customers, but a
culture where internal parts of an organization can have a similar relationship with its
internal customers can also result in a highly motivated, effective organization.
Agile has the customer at the heart of every initiative. It is customers who make the business
decisions and constantly have the chance to provide feedback and redirect Agile initiatives
within governance guidelines. They also benefit from high-quality outcomes delivered on
time, enabling them to plan the inevitable business change activities to get the most value
from what is delivered.
10190 IBP Understanding Agile TEXT v0_9.indd 14 01/08/2016 15:18
Why should managers adopt an Agile approach?
3
It is therefore no surprise that there is a high level of customer satisfaction with respect to
both the outcomes and the initiatives that created them. Customers often feel real ownership
of the solutions they are given and will promote them and their creators within their spheres
of influence.
1.1.4 A collaborative culture
Traditionally, initiatives in organizations are undertaken with much trepidation. There is
contention between the customer and the supplier. This often leads to a total breakdown of
communication and trust, and the probability of being successful is greatly reduced.
Agile approaches demand the creation of cross-functional teams focused on the same
goals. The customer is a central and key member, and everyone involved soon works in a
collaborative way as they have the same goal and feel part of the same team. This is
equally true of the other stakeholders represented in the team.
This collaborative atmosphere does not disappear when the initiative is over. Those who
have worked in such teams develop relationships that go further than just that initiative;
collaboration and mutual respect grow and start to permeate the organization. This can
lead to a working environment that promotes innovation and removes conflict.
1.1.5 Higher-quality outcomes
Although cost and competitiveness are important, organizations are unlikely to succeed for
long if they are not seen as producing quality products and offering a quality service.
In the past, products and solutions were created with little customer feedback until well into
the process. In an Agile approach, customers are asked for their contributions and
feedback throughout. This means that the solution delivered will really meet their
requirements. Technical testing of a solution is also included from the start, test personnel
being an integral part of the team and contributing to design discussions. In this way, both
technical and functional product quality are built in throughout the Agile lifecycle. Potential
problems are discovered early on and can be corrected before they become major.
As long as these principles are followed, the result is a high-quality outcome that really
meets customer needs and adds value to the organization.
Agile in practice
I am always surprised by what happens in workshops or training courses when I create
arbitrary teams. The individuals often do not know each other, but within a short time they
are working together towards a goal. They also have a common identity and see the
other teams as ‘them’ – a competitive spirit emerges between teams! Of course this isn’t
always desirable, especially if we consider scaling Agile to large organizations.
10190 IBP Understanding Agile TEXT v0_9.indd 15 01/08/2016 15:18
Understanding Agile
4
1.1.6 Better-motivated people
We all want our organizations to be full of motivated individuals. As well as making the
organization a fun place to work and attracting the best people, motivation can lead to
high performance and give the business a competitive edge.
Central to Agile are empowered, cross-functional teams working together to achieve a
goal. Having such teams actually improves motivation. Once the team becomes a unit, it
normally enjoys what it is doing. There may be disagreements and heated discussions, but
generally the team is focused on the outcome and collaborates to achieve it. The final
outcome is normally very positive, and therefore the team’s motivation remains high even at
the end of the initiative, when it looks forward to the next one.
1.1.7 Better perception by customers
As Agile becomes embedded in an organization, the customer starts to get frequent,
punctual deliveries of high-quality solutions that meet their requirements and add value.
Inevitably, this changes the customer’s perception of the supplier. A relationship that was
once strained and mistrustful becomes collaborative and trusting. In fact, the customer will
start to promote the supplier (whether internal or external) throughout the organization and
beyond.
As the customer is closely and continually involved in the initiatives, it will start to understand
the stresses and strains of the supplier organization, and vice versa. This builds an
environment of respect and trust and enables both sides to create future plans together.
1.1.8 Summary
Of course, there are other advantages to the Agile approach, including, for product-based
companies, shorter time to market. A great advantage of Agile is the environment of
transparency, trust and respect that it creates. People working in such an environment want
to do the best job they can. As they focus on the goals, not on the politics, innovation
becomes the norm, and delivering the right solution is guaranteed.
Agile in practice
In one of my roles, I implemented Agile practices in a pharmaceutical company. We
undertook a project normally classed as ‘validated’ – that is, subject to the regulations
set by the Food and Drug Administration, Medical and Healthcare products Regulatory
Agency or another regulatory body. The validation expert from the Quality department
was appointed as a core member of the project team. He was sceptical at first, but as
the project continued he said to me one day, ‘Actually, this Agile approach means better
quality, doesn’t it?’
10190 IBP Understanding Agile TEXT v0_9.indd 16 01/08/2016 15:18
Why should managers adopt an Agile approach?
5
1.2 The Agile approach
Having looked at some of the benefits of adopting Agile, let us now understand what it
means for us. Is it a tool, a method or a technique?
Although Agile implementations may include Kanban, Scrum, Lean or other methods and
tools, these do not in themselves define an Agile approach. Agile is, foremost, a way of
thinking and acting. The Agile Manifesto explains this to some extent; however, in my
opinion, it does not give a complete answer, being limited to software development. In
recent years, the Agile way of thinking has gone a lot further and now whole businesses
are being run on Agile principles.
So what is the approach? In essence it is centred on people and their interactions, and
delivering benefits to an organization early and often.
Central to the approach are a number of fundamental ways of thinking, working and
interacting. It may come as no surprise to you that, as good managers and leaders, you
have already introduced some of these ways into your organization. Whether this is the
case or not, you have to take the following ideas seriously if you are to benefit from the
Agile approach.
1.2.1 The future is uncertain
We have talked about businesses being responsive to change. The way we approach
planning at all levels in our organization is a key part of enabling this.
Traditionally, throughout our organization, we have tried to plan well into the future, get
plans agreed and then stick to them. We have also tried to predict what the organization
might need in future. Budgeting activities, where we have to lay out what we will need for
the year ahead and possibly longer, are an example of this. If we adopt an Agile mindset,
we accept that this is not generally possible as business imperatives change quickly. The
experience of talking about and using the capabilities we introduce into our organizations,
The Agile Manifesto
http://agilemanifesto.org/
In February 2001, a group of software developers published the Manifesto for Agile
Software Development. In this manifesto, they stated that by ‘uncovering better ways of
developing software by doing it and helping others do it’, they had 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.
In other words, while they acknowledged that there was value in the items on the right,
they valued the items on the left more.
10190 IBP Understanding Agile TEXT v0_9.indd 17 01/08/2016 15:18
Understanding Agile
6
or introducing new products and services into the marketplace, clarifies our understanding
of what they actually need to do.
So does this mean we do not need to plan and we should just let everything evolve? No
– taking this approach, we would not fulfil our responsibilities as leaders and managers.
Although we have to accept that the future is full of uncertainty and change, we still need
to have a clear idea of what we want to achieve and why. We need to ask ourselves
whether the benefits outweigh the potential costs, risks and disruption of making the
journey. We need to have a clear vision, and then plan how to achieve it. Planning the
whole journey as an outline is sufficient; however, we need to recognize that this is likely to
change. As we embark on the each step, we can plan in more detail as requirements
become more obvious.
1.2.2 Change is normal and inevitable
The pace of change in today’s business is phenomenal. Unless we can make our
organizations responsive to change, we put them in danger of lagging behind, losing
opportunities and business. Generally, we understand that some events that occur will
change our status quo. These can be changes for the better or for worse. As human beings
we are equipped to cope with and embrace change, learn from it and move forward.
Charles Darwin taught us that those living things most responsive to change are more likely
to survive.
Ironically, we often create complex bureaucratic procedures for change in our
organizations. We see change as a disruption to be avoided or assessed in detail and
minimized. We think we will fail to achieve our goals if we let change happen. In fact, we
are more likely to fail if change doesn’t happen. Our organization will be out of date and
will not meet today’s requirements. But if change is inevitable, why not embrace and plan
for it? This is exactly what Agile asks us to do.
Budget and time constraints are still important. So if we want to use Agile to accommodate
change, we must find a way to protect budgets and time, but still get what we need. In
section 3.4, I will explore how this is possible within the Agile approach.
1.2.3 Provide capabilities early and often
Traditionally, it can take a long time for the benefits of change initiatives to become a
reality and to start to add real value to our organizations. Could we have benefited if some
of the change was delivered earlier? Could we have used our experience and feedback to
Agile in practice
Assume we are travelling from A to B. We may plan a route, but events on the way – for
example, closure of a major motorway or main road – will demand that you change plans.
The important thing is that we want to get to B; the plan may change along the way.
10190 IBP Understanding Agile TEXT v0_9.indd 18 01/08/2016 15:18
Why should managers adopt an Agile approach?
7
influence future outcomes? We may also gain confidence that the initiative is working and
delivering, instead of seeing it as a potential failure that is late, and over budget.
The Agile approach is to design our initiatives to provide the organization with capabilities
incrementally, as early and often as possible. The organization then reaps the benefits of
early use and becomes more and more confident of the value of the change and of the
team making it happen. Of course, this implies we must continually prioritize what we are
doing to ensure we optimize the value delivered into the organization. Prioritization is
discussed in more detail in section 6.1.3.
1.2.4 Iterative feedback
How often have you been frustrated that something you have bought or commissioned
does not do what you want it to? Unless we are people of exceptional vision, we find it
difficult to explain what we need. We often don’t know until we see it, or until we have
seen some examples. This can lead to real problems if we are trying to define our exact
requirements years into the future. We confuse what we would like with what is needed to
do the job, and we tend to include bells and whistles that seem like a good idea, but in
reality are hardly ever of any use. The result is often something that doesn’t really meet our
requirements, or in fact is almost unusable. Figure 1.1 shows an example of the usage of IT
systems as presented in Chaos: A Recipe for Success (The Standish Group, 1999).
Agile in practice
A central theme in Agile thinking is the delivery of value early and often. It is important
that the emphasis is on real value. It is not enough, for example, just to deliver a new
software package, new production equipment or a new office. The real value comes
when the business processes and organizational structures are aligned in order to get the
most benefit from it.
7%13%
16%
19%
45%
Never used
Rarely used
Sometimes used
Often used
Always used
Figure 1.1  Usage of IT systems
10190 IBP Understanding Agile TEXT v0_9.indd 19 01/08/2016 15:18
Understanding Agile
8
Figure 1.2  Iterative cycle
The Agile approach recognizes that it is impossible to define completely and in detail
exactly what is required upfront. It is necessary to set the landscape – i.e. what the overall
requirement is – but then to understand that the detail will emerge and change as more is
known and as inevitable changes in the business environment affect the requirements.
With the best form of Agile, enough investigation is done initially to understand the problem
and engage potential suppliers in discussions. Then iterative feedback techniques, such as
Plan-Do-Check-Act (see Figure 1.2) are used to identify a solution that will really meet
requirements.
The benefit of this approach is that each requirement is assured to meet customer needs
and no time or money is lost trying to define something that is not known.
1.2.5 Small, motivated and empowered teams
Process-driven techniques are often applied to what is essentially innovation. Although this
approach may work well for a production line or other repeatable tasks, it tends to stifle
innovation and delay the process.
In process-driven techniques, individuals are responsible only for their part of the process.
There is often little or no communication between the individuals involved in the different
processes. If we apply this process to complex innovative situations, it can lead to
ambiguities in understanding, and quite often the end product will not meet requirements.
Agile in practice
A Swedish car manufacturer questioned the process approach to building cars, pioneered
by Ford. They set up small teams responsible for the whole car. The result was a better-
quality product in a shorter time.
Plan
Act Do
Check
10190 IBP Understanding Agile TEXT v0_9.indd 20 01/08/2016 15:18
Why should managers adopt an Agile approach?
9
Figure 1.3  Scrum team composition
The Agile approach is different. Small, multidisciplinary and multifunctional teams are
created (see Figure 1.3), comprising representatives from those that will benefit from the
solution as well as those that will create it. The team is given a specific goal and this sense
of common purpose helps to unite it. The team builds a collaborative environment in which
all team members understand that the goal is the priority and that they will contribute in any
way they can to achieve it. The team is responsible for all aspects of achieving its goal;
there are no points where the process moves to a different team.
So, to get the most from adopting an Agile approach, we will need to examine the
structure of our organizations. In creating an Agile business, we may need to remove
separate departmental ‘silos’, and consider creating multidisciplinary teams focused on
specific products or goals.
Business
owner
Stakeholders
Product ownerScrum master
Scrum team
10190 IBP Understanding Agile TEXT v0_9.indd 21 01/08/2016 15:18
Understanding Agile
10
1.2.6 Empowerment or decision-making close to the impact
The Agile belief is that teams work best when left alone to deliver their goals, making their
own decisions and finding the solution. Teams are empowered to fulfil the goals they have
been given. This will create high-performing, motivated teams. Of course, there may be
times when specialists are required to perform some functions that the team cannot.
Clearly, the empowerment is not limitless; it is restricted to the fulfilment of the goal. It does
not allow decisions that may impact others outside the team. The team must also consider
the impact on other teams and determine when it will need to interact with them.
A small team (that could be in more than one location) communicates more easily with less
confusion or misunderstanding. The fact that all disciplines are represented in the team
means that any potential miscommunication between the customer and those developing
the solution can be avoided.
You may be thinking, quite rightly, that small teams are all very well, but what about when
the project or programme demands larger, more complex structures? I will discuss this in
more detail in later chapters.
1.2.7 Continual and close involvement of the customer
The previous sections imply that those who will benefit from the initiative – the customers –
are an integral part of the team and are making decisions on a daily basis towards the
final outcomes. This places the onus of making business decisions on the customer, and
helps to ensure that the right outcome will be delivered. It also means that the customer has
to be available as required to participate in the process and give business knowledge and
feedback. In section 2.3.2, I will discuss this in more detail.
1.2.8 Learning from experience
Throughout our lives we are learning, and this often comes from trying something new. The
result of this is that we review and modify our future behaviour based our experience.
Often, this natural learning cycle is forgotten when we are placed in a work environment.
We carry out tasks, complete them, and start the next one without taking time to understand
what went well or not so well.
The Agile approach embraces the learning process and incorporates the concept of
continual improvement. Many Agile methods have specific techniques to facilitate the
process. One example is the ‘retrospective’. A retrospective is a meeting that takes place
after most significant events or deliveries and often at regular intervals. The team reviews
what has been done, with the objective to learn and to change future behaviour,
interactions and processes.
10190 IBP Understanding Agile TEXT v0_9.indd 22 01/08/2016 15:18
Why should managers adopt an Agile approach?
11
1.2.8.1 Fail fast
Uncertainty is one of the drivers within the Agile approach. In order to understand exactly
what is required, Agile teaches us to try something early and get feedback. If it is wrong,
we can modify it. This concept is known as ‘fail fast’.
A word of caution – fail fast means failing early so that you can change in time for it not to
be a problem. This doesn’t mean, as one developer once told me, putting live something
that is not fit for purpose: ‘We put the change live and the system failed – no-one could use
it. But we had identified the problem and corrected it within an hour. We failed fast!’
In fact, Agile should never mean compromising quality.
1.3 Agile myths
Now that we have looked at the benefits and the Agile approach, you may be wondering
what the catch is. As leaders and managers, we always need to approach change
initiatives with our eyes open. Agile is obviously a good approach, but it is not a panacea.
The following sections describe six of the myths I have come across in my Agile journey.
Myth 1 – Agile is faster
Some organizations have adopted Agile because they have heard it can be faster. Does
this mean work can be done more quickly merely by adopting Agile? What about the
quality of the work? Why should an individual suddenly work faster just because they are
using Agile techniques? Does this imply they are taking more risks?
In fact, Agile demands very high quality and often reduces risk. The savings in time come
from concentrating on things that add value and are really required. The same initiative can
appear to go faster because we have removed a lot of the unnecessary ‘padding’.
Potential delays caused by communication and decision-making can be eliminated using
Agile approaches. This is because the teams consist of stakeholders from all areas affected
by, or benefiting from, the initiative. They can make decisions quickly and communicate
well as they are often together, possibly even co-located.
The use of techniques such as Lean and Kanban can also identify and eliminate process
delays in the way we do things, hence speeding up the Agile processes.
So Agile really can be faster, but only because waste in functionality, communication and
process is eliminated.
Agile in practice
‘Fail fast’ implies that no time is wasted following the wrong path. Finding out what is
wrong early in the process is more economic in the long term. Each failure eliminates
wrong assumptions and helps to create the right and best solution.
10190 IBP Understanding Agile TEXT v0_9.indd 23 01/08/2016 15:18
Understanding Agile
12
Myth 2 – Agile is easy
On the surface, Agile can seem very simple and easy. A cross-functional team is
assembled, it is given a goal and is empowered to do what is required to meet that goal.
Short steps are then executed to produce an incremental set of quality outcomes.
In fact, good Agile requires discipline and control. It is important to get the following right
when implementing Agile in your organizations:
●● Each person must accept the personal accountability and responsibility that comes with
empowerment.
●● Agile initiatives are normally fast moving, and teams can get caught up in the
enthusiasm of it – they need to be disciplined to keep their focus on the goals.
●● The iterative techniques can lead some to believe that an initiative is closer to
completion than it actually is, and this can cause a problem with customer expectations.
●● Agile requires fast, efficient decision-making and commitment from all involved to reach
the goals in the time defined.
Empowerment is powerful, but the limits of it need to be clear –otherwise teams may make
decisions that are out of their control or not appropriate. 
Myth 3 – Agile is a documentation- and governance-free zone
Having once been a software developer, I can see how lack of documentation could be
seen as a benefit. Having also been a member of my organization’s leadership team, I see
the opposite problem with this. How can we support something without any knowledge of
it? How do we satisfy our auditors? How do we decide what to do, and who should do
it? How do we communicate with senior stakeholders?
The use of Agile approaches does not imply that documentation and governance are not
necessary; rather that they should add value to the process. Chapter 4 describes the
various Agile methods. Those in the ‘full project/programme’ category provide good
support for Agile governance, suggestions for documentation and its use.
Myth 4 – Agile is a planning-free zone
I have heard anecdotes of customers being told statements such as, ‘We can’t tell you how
long it will take. The requirements will emerge as we do it.’ Or, ‘In Agile you just dive in
and do it.’ Perhaps you have been told the same. Whenever I have done either of these
things the result has been disastrous, costly, or both.
Although it is true that we have to let the detail emerge, we still need to understand the
problem sufficiently to be able to plan. We must determine that the projected benefits
outweigh the costs. Otherwise, Agile or not, we should not do it. Also, if we don’t plan,
how can we know how to deliver incrementally?
10190 IBP Understanding Agile TEXT v0_9.indd 24 01/08/2016 15:18
Why should managers adopt an Agile approach?
13
Planning is vital in Agile, but only to a level of detail that is appropriate for the period we
are considering. In general, the further into the future we plan, the less detailed our plans
are and we accept that they may change. As we embark on a specific, shorter timeframe,
we plan in more detail. There is often more planning in Agile than in more traditional
environments – the difference is that planning is integrated throughout.
Myth 5 – Agile does not need managers
By implementing Agile, do you make management redundant? Of course not. In many
early Agile implementations, the team was seen as all that was needed to deliver a
solution. Anything else was seen as unnecessary interference – it would either slow the
team down or undermine its empowerment.
This may be true for a very small piece of work in which there are no complex interfaces or
politics. As we know, however, this is rarely true. Normally, the small piece of work is part
of a larger initiative (see Figure 1.4).
There are many areas that may be affected, or need amendment to be able to reap the
real benefits of what we are doing. These can include business processes, organizational
structures and company infrastructure. Senior stakeholders also need to be kept informed.
Having multiple suppliers, locations and customers can complicate the picture.
Good project management has always been about dealing with all of these different
aspects. So please don’t sack all your project managers, or yourselves!
Figure 1.4  An example of a complex organization
10190 IBP Understanding Agile TEXT v0_9.indd 25 01/08/2016 15:18
Understanding Agile
14
Project and programme managers need to change their approach – command-and-control
or micro-management will not work.
Myth 6 – Agile never fails
In theory, Agile initiatives deliver new capabilities early and often. These capabilities are
tangible and can either be used in the live business, or form part of something that will.
We can class them as ‘done’, meaning that no more work is required on them. Since they
are real and not merely documents, models, architects’ drawings or other specifications, we
can get a good impression of progress. We are also provided with early signs of problems.
If we also take into account the constant involvement of the customer, ensuring that the
solution will really meet their requirements, it becomes obvious that taking an Agile
approach can be less risky than more traditional methods.
However, Agile initiatives can and do fail and there are some spectacular examples. Some
reasons are:
●● Company philosophy or culture in conflict with an Agile approach
●● Unwillingness to change, leading to pressure to follow more traditional processes
●● Organizational or communication problems
●● Lack of sufficient training or coaching
●● Lack of experience with Agile methods
●● Unwillingness of the team to follow Agile
●● Lack of management support.
Failures are generally caused by people. Starting with yourself, ensure that everyone
understands the risks associated with Agile and put in adequate risk management
processes; this way the probability of failure can be minimized. We will examine the risks
in more detail in section 5.3.
1.4 Agile approaches – what’s different?
I haven’t yet compared Agile with other ways of working. Ten years ago there was a lot of
scepticism about Agile as opposed to more traditional techniques, such as the Waterfall
process in software development. Now, however, the distinctions between Agile and
Waterfall approaches are very clear (see Appendix A).
Agile in practice
The impact of project management can best be seen when it is not present. Initiatives start
to go wrong and it can be difficult to bring them back on track.
10190 IBP Understanding Agile TEXT v0_9.indd 26 01/08/2016 15:18

More Related Content

PPTX
Using Agile in non-Agile Organisations - Jose Casal - BCS Agile SG
PDF
Ahmed Sidky (ICAgile)
PPTX
Scaling Agile at enterprise Chema Garcia
PDF
AgileLIVE – Accelerate Enterprise Agile with the Scaled Agile Framework®: Part I
PPTX
Agile Transformation | Mike Cottmeyer
PDF
Ahmed Sidky (Keynote)
PPTX
Building an agile culture
PPTX
AgileCamp 2014 Track 1: Scaling agile with Disciplined Agile Delivery
Using Agile in non-Agile Organisations - Jose Casal - BCS Agile SG
Ahmed Sidky (ICAgile)
Scaling Agile at enterprise Chema Garcia
AgileLIVE – Accelerate Enterprise Agile with the Scaled Agile Framework®: Part I
Agile Transformation | Mike Cottmeyer
Ahmed Sidky (Keynote)
Building an agile culture
AgileCamp 2014 Track 1: Scaling agile with Disciplined Agile Delivery

What's hot (19)

PDF
Using Agile in non-Agile Organisations (2014 version)
PDF
The importance of early testing and automation
PDF
Agile transformation 1.3
PDF
Disciplined Agile Delivery: Foundation for Scaling Agile
PDF
The Disciplined Agile Enterprise: Harmonizing Agile and Lean
PDF
The Challenges of Agile Adoption
PDF
Choose Your WoW! DevOps in the Enterprise
PDF
PPTX
LeSS - Moving beyond single team scrum
PDF
Fool with a tool presentation
PDF
Agile transformations: The good, the bad, and the ugly
PDF
Introduction to Disciplined Agile Technology
PDF
[en] Agile transformation - How to deconstruct your organization step by step
PDF
Large Scale Agile Transformation by Husni Roukbi
PDF
[en] Agile Management is different - CAS2014
PDF
AgileLIVE Webinar: Agile Leadership for the Enterprise
PDF
Common challenges in adopting Agile: IIBA Northampton event 23rd August 2011
PDF
Choose Your Way of Working (WoW)!
PDF
Lean Leadership for Executives: Initial findings from LGN Research
Using Agile in non-Agile Organisations (2014 version)
The importance of early testing and automation
Agile transformation 1.3
Disciplined Agile Delivery: Foundation for Scaling Agile
The Disciplined Agile Enterprise: Harmonizing Agile and Lean
The Challenges of Agile Adoption
Choose Your WoW! DevOps in the Enterprise
LeSS - Moving beyond single team scrum
Fool with a tool presentation
Agile transformations: The good, the bad, and the ugly
Introduction to Disciplined Agile Technology
[en] Agile transformation - How to deconstruct your organization step by step
Large Scale Agile Transformation by Husni Roukbi
[en] Agile Management is different - CAS2014
AgileLIVE Webinar: Agile Leadership for the Enterprise
Common challenges in adopting Agile: IIBA Northampton event 23rd August 2011
Choose Your Way of Working (WoW)!
Lean Leadership for Executives: Initial findings from LGN Research
Ad

Similar to Understanding Agile look inside (20)

PDF
Discover the benefits of Agile - 2015
PDF
Getting started with an Agile career
PPTX
agile vs waterfall intro generic.pptx
PDF
Agile Final PDF
PPTX
Agile Implementations - Tim FitzGerald - US Assure
PPT
Agile Executive Briefing - Situational Assessment + 50k Ft View
PPT
Agile Project Management 1 17 2007[1]
ODP
Agile Project management
PDF
Thriving in the 21st century with Agile - with Barbara Roberts
PDF
Successful change - good culture and governance matter Conference - Adrian Py...
PPTX
Olena Grygorchuk - Refactor your understandings about Agile development
PPTX
Make better share point stuff with an agile methodology
PDF
B270818
PPTX
Barbara Roberts - Dispelling myths and misconceptions that surround Agile
PPTX
Emerging Trends of Software Engineering
PDF
Fundamental of Agile, What is Agile? and What is Agile methodology?
PPTX
Agile applied to project management
PPTX
What is agile?
PDF
Introduction to Agile Project Management
PPTX
Agile Fundamentals
Discover the benefits of Agile - 2015
Getting started with an Agile career
agile vs waterfall intro generic.pptx
Agile Final PDF
Agile Implementations - Tim FitzGerald - US Assure
Agile Executive Briefing - Situational Assessment + 50k Ft View
Agile Project Management 1 17 2007[1]
Agile Project management
Thriving in the 21st century with Agile - with Barbara Roberts
Successful change - good culture and governance matter Conference - Adrian Py...
Olena Grygorchuk - Refactor your understandings about Agile development
Make better share point stuff with an agile methodology
B270818
Barbara Roberts - Dispelling myths and misconceptions that surround Agile
Emerging Trends of Software Engineering
Fundamental of Agile, What is Agile? and What is Agile methodology?
Agile applied to project management
What is agile?
Introduction to Agile Project Management
Agile Fundamentals
Ad

Understanding Agile look inside

  • 1. UnderstandingAgile Are you one of those managers who feel intimidated by Agile? Who would like to know more about it but lack the confidence to implement it in their organization? If so, then don’t be disheartened – this book has been written specifically for you, to guide you through the myths and jargon that surround this very practical methodology. Using lots of good examples, many of them personal, Understanding Agile is an easy-to-digest guide aimed at managers who want to use Agile to add value and deliver benefits to their organization. It clearly explains not only the concepts and essential principles of Agile but also how to create a sustainable environment in which Agile initiatives can thrive. Key features include: • The benefits of using Agile • Choosing the right approach for your business • How to make the transition to an Agile culture • The essential tools and techniques of Agile • How Agile compares with traditional approaches • How to deliver and measure value • How to monitor risk and avoid pitfalls. Steve Messenger has a wealth of experience in Agile, having worked at a senior level in many corporate environments. He is the current chairman of the DSDM Consortium. This book provides invaluable insight and practical help for managers working with Agile teams. Jennifer Stapleton, independent consultant This is a book for people who need to grasp the essence of Agile within a business context. … It should be essential reading for any manager who needs to know what their Agile teams are doing. Richard Pharro, CEO, APM Group 9 780117 082946 ISBN 978-0-11-708294-6 www.internationalbestpractice.com Understanding Agile A Guide for Managers STEVE MESSENGER 9981 IBP Understanding Agile COVER v1_0.indd All Pages 18/08/2016 12:43
  • 2. 7211 Greening Service v0_7.indd 4 21/07/2011 12:35
  • 3. London: TSO Understanding Agile A Guide for Managers 10190 IBP Understanding Agile TEXT v0_9.indd 1 01/08/2016 15:18
  • 4. International Best Practice (IBP) is a framework-neutral, independent imprint of TSO. We source, create and publish guidance which improves business processes and efficiency. We deliver an ever-expanding range of best-practice guidance and frameworks to a global audience. © The Stationery Office 2016 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without the permission of the publisher. Applications for reproduction should be made in writing to The Stationery Office Limited, St Crispins, Duke Street, Norwich NR3 1PD. The information contained in this publication is believed to be correct at the time of manufacture. Whilst care has been taken to ensure that the information is accurate, the publisher can accept no responsibility for any errors or omissions or for changes to the details given. MoP® , MSP® , P3M3® , P3O® and PRINCE2® are all registered trade marks of AXELOS Limited. A CIP catalogue record for this book is available from the British Library. A Library of Congress CIP catalogue record has been applied for. First published 2016 ISBN 9780117082946 P002776720 07/16 Published by TSO (The Stationery Office), part of Williams Lea, and available from: Online www.internationalbestpractice.com www.tsoshop.co.uk Mail, Telephone, Fax & E-mail TSO PO Box 29, Norwich, NR3 1GN Telephone orders/General enquiries: 0333 202 5070 Fax orders: 0333 202 5080 E-mail: customer.services@tso.co.uk Textphone 0333 202 5077 TSO@Blackwell and other Accredited Agents 10190 IBP Understanding Agile TEXT v0_9.indd 2 01/08/2016 15:18
  • 5. iii Contents List of figures v List of tables vi About this guide vii Foreword ix Preface x Acknowledgements xi 1 Why should managers adopt an Agile approach? 1 1.1 The benefits of Agile 1 1.2 The Agile approach 5 1.3 Agile myths 11 1.4 Agile approaches – what’s different? 14 2 Creating a sustainable Agile environment 15 2.1 Making and maintaining the Agile environment throughout the organization 15 2.2 The role of the manager 17 2.3 Instilling an Agile mindset into stakeholders 19 2.4 The effect of Agile on processes and procedures 24 2.5 Business as usual 26 2.6 Individuals and interactions 27 3 Agile governance and organization 33 3.1 What is governance? 33 3.2 Meeting goals and remaining aligned with business strategy 34 3.3 Portfolio-level governance 35 3.4 Budgeting 35 3.5 Developing objectives and vision 38 3.6 Governance levels 39 3.7 Dealing with change 42 4 Agile methods compared and contrasted 45 4.1 Techniques 46 4.2 Development methods 46 4.3 Delivery methods and frameworks 46 4.4 Full project/programme methods and frameworks 47 4.5 Which method is for me? 47 4.6 Continual flow and delivery 56 4.7 Hybrids 56 4.8 Mega-projects and scaling for Agile 57 10190 IBP Understanding Agile TEXT v0_9.indd 3 01/08/2016 15:18
  • 6. Understanding Agile iv 5 Directing Agile initiatives 59 5.1 Good Agile leadership 59 5.2 Managing the Agile team 62 5.3 Risk management 65 5.4 Incremental delivery of value 65 5.5 Retrospectives and continual improvement 67 6 Agile planning 69 6.1 Planning approaches and levels 70 6.2 Resource planning 74 6.3 Planning for incremental delivery 76 6.4 Incorporating change 81 7 Agile tracking 83 7.1 Standard Agile reporting techniques 83 7.2 Senior stakeholder reporting 86 7.3 Trust and openness 87 7.4 Hybrids 88 8 The Agile organization 89 8.1 Agile beyond IT 89 8.2 Benefits management 90 8.3 Contract management 91 9 Summary 95 Appendix A  Agile and Waterfall compared 97 Appendix B  Risks in Agile 103 Glossary 107 Bibliography 109 Index 111 10190 IBP Understanding Agile TEXT v0_9.indd 4 01/08/2016 15:18
  • 7.  v List of figures Figure 1.1 Usage of IT systems 7 Figure 1.2 Iterative cycle 8 Figure 1.3 Scrum team composition 9 Figure 1.4 An example of a complex organization 13 Figure 2.1 Distributed Agile team 29 Figure 3.1 Gated processes in Agile projects 38 Figure 3.2 Decision-making in Agile 40 Figure 4.1 Sample hybrid model 56 Figure 5.1 DSDM project roles 63 Figure 5.2 DSDM programme roles 65 Figure 6.1 Agile planning levels 71 Figure 6.2 Simple Agile Gantt chart 74 Figure 6.3 Agile portfolio prioritization model 75 Figure 6.4 Emerging versus planned models 79 Figure 6.5 Reversal of iron triangle 81 Figure 7.1 Example of a burn-down chart 84 Figure 7.2 Example of a burn-up chart 85 Figure 7.3 Example of a Kanban board 86 Figure 8.1 Benefits decomposition 91 Figure A.1 The Waterfall approach 97 Figure A.2 Decomposition of a solution 100 10190 IBP Understanding Agile TEXT v0_9.indd 5 01/08/2016 15:18
  • 8. vi List of tables Table 3.1 Comparison of budget approaches 37 Table 4.1 Agile techniques, methods and frameworks 48 Table 5.1 Summary of roles in an Agile environment 66 Table 6.1 MoSCoW prioritization 82 10190 IBP Understanding Agile TEXT v0_9.indd 6 01/08/2016 15:18
  • 9.  vii About this guide Who’s it for? This publication is for managers across all sectors of industry who want to understand what Agile is and how it can benefit their organizations. It doesn’t matter what level of management you are – managing Agile projects affects practically all levels. The aim is to help managers and leaders understand what Agile is and to provide guidance on how to introduce sustainable Agile approaches and manage them effectively. Although the main audience is leaders and managers, the content is a comprehensive foundation in understanding Agile that is as useful to the expert as it is to the novice. Why do you need it? Implementing an Agile approach can be a minefield. Many fail before they start because of the lack of consideration for how Agile can be integrated into existing structures and cultures, and how to manage that integration. There is now a plethora of different approaches or methods, and understanding which is the right one for your organization can be a complex task. This publication provides guidance on all these aspects and will help you to choose and build a sustainable Agile capability that will be of real benefit to your organization. Who’s it by? Steve Messenger Steve has been involved in Agile since its inception and was pioneering iterative approaches (now called Agile) from the mid-1990s. As a senior leader, Steve has implemented Agile in many diverse organizations, including the highly regulated pharmaceutical industry, and has successfully managed various projects and programmes using Agile. Steve has a strong reputation and global recognition. He has published articles on Agile project and programme management and scaled Agile, as well as being lead author of the DSDM® AgilePgM Agile Programme Management Handbook (2014). He contributed to the DSDM Agile Project Framework Handbook (2014) and the Agile PMO Pocketbook (2012). He is also the current chairman of the DSDM Consortium, which is one of the signatories of the Agile Manifesto. 10190 IBP Understanding Agile TEXT v0_9.indd 7 01/08/2016 15:18
  • 10. Understanding Agile viii Steve now uses his experience to provide training and consultancy to large organizations, and this keeps him up to date on current Agile thinking, trends and problems. How is it organized? Steve has included anecdotes and experiences from his own career in the hope that these will provide colour and practical guidance. Each chapter is self-contained and can be read independently. A summary of what is covered in each chapter is as follows: ●● Chapter 1  Gives an overview of Agile and its principles and explains the benefits. Various myths surrounding Agile are dispelled. ●● Chapter 2  Explores how to create a sustainable Agile environment, including the implications for all stakeholders. Provides advice on transitioning to an Agile culture, and examines the effect on corporate processes and procedures. ●● Chapter 3  Concentrates on governance within an Agile culture, describing how an Agile approach can thrive while providing assurance to stakeholders. Also provides advice on decision-making and budgeting, and the role of the business case in Agile. ●● Chapter 4  Looks at the various Agile approaches and methods, providing guidance on choosing the right one for your organization and how to fit it together with the more traditional approaches. Looks at blended/hybrid approaches and the benefits of scaling. ●● Chapter 5  Concentrates on the processes, roles and skills required to manage and direct Agile initiatives. Leading Agile at scale and managing risk are also covered. ●● Chapter 6  Looks at Agile planning and how this differs from the more traditional approaches. Covers high-level features (known as ‘epics’) and prioritization, as well as resource planning and incremental delivery. ●● Chapter 7  Shows how to track and control Agile initiatives, describing the tools and techniques available. Includes the different tracking and reporting needs of stakeholders and how to handle hybrid initiatives. ●● Chapter 8  Looks at Agile in the wider organization, examining areas such as benefits and contract management with respect to Agile. ●● Chapter 9  Concluding notes. Steve begins each chapter with a quote from the Tao Te Ching, a fundamental text for Taoism written in the sixth century BCE by Laozi (also known as Lao Tzu). Although not a Taoist, Steve found that many of the passages related well to the concepts he was trying to relay. It is also interesting that much of the thinking in Agile has been around that long! 10190 IBP Understanding Agile TEXT v0_9.indd 8 01/08/2016 15:18
  • 11.  ix Foreword Richard Pharro, CEO APM Group Steve Messenger has been using and teaching Agile for a very long time. He will readily admit that he is still a student of how Agile can be used in the wider business. This publication brings together more than two decades of his experience as a manager using Agile techniques in a variety of businesses. He has distilled the essentials into a very readable format that can be understood by any manager. This is not a manual for the technician. It is aimed at people who need to grasp the essence of Agile within a business context. If you are a manager and you want to understand the real benefits of Agile (namely that it is people-centric and delivers early benefits) without being hoodwinked by the technical team through a lexicon of jargon, then this guide is for you. It is an easy read with lots of good examples, some of them very personal, which bring Agile to life. It also busts the many myths surrounding Agile. Understanding Agile should be essential reading for any manager who needs to know what their Agile teams are doing. Jennifer Stapleton, independent consultant This publication addresses a real need. Much has been written about how Agile teams are self-organizing, deciding amongst themselves how best to go about what they are doing, where they are going and how to monitor their own progress. This all works well at the individual team level but Agile teams do not work in isolation. They are part of a larger organization that needs to understand what they are doing and why. Understanding Agile provides invaluable insight and practical help for managers working with Agile teams. I have known Steve Messenger for many years and he is ideally positioned to provide this insight. He has managed and worked with Agile development projects since the mid- 1990s, predominantly in the very highly regulated pharmaceutical industry. This has equipped him with a strong understanding of how to implement Agile within the constraints of an existing corporate environment. Steve is currently chairman of the DSDM Consortium, which has arguably led the field in the governance of Agile projects and programmes and has moved Agile from its beginnings in IT to the wider business. Hence this guide is well-founded in its focus on managers who are wondering how their role is affected when dealing with self-organizing teams, while still satisfying the needs of the management hierarchy above them. I would recommend Understanding Agile not only to managers who are new to the Agile world but also to those who are more experienced – Agile people are always learning and improving! 10190 IBP Understanding Agile TEXT v0_9.indd 9 01/08/2016 15:18
  • 12. x Preface I was delighted when I was asked to write this publication. I have always been passionate about the Agile approach and the continual improvement of the capabilities required to run our businesses, even our lives. For many years, even before Agile was recognized as a successful methodology, I had thought that working in incremental steps was an obvious, common-sense thing to do. I had been one of the few voices trying to get organizations to work in this way. I am also aware that various levels of management throughout industry have been blinded by Agile terminology. They do not know enough about Agile to be able to implement it; they have tried it and become stuck; or they believe it will never work in their organization. For all these reasons, the value of Agile is not being recognized, and business outcomes are suffering as a result. However, all is not lost. I attend many conferences and take pleasure in seeing that the Agile message is finally gaining attention. But I also see some worrying trends. These have prompted me to write this guide to help those struggling to gain more knowledge about Agile implementation. My aim is to provide practical, easy-to-digest advice about Agile, what it means and how it can be successfully implemented and sustained in organizations. I want to allay the fears about Agile but at the same time ensure that readers can implement it with their eyes wide open. Today Agile is in use throughout many different industries and business areas. I hope that this publication will help you to gain insight and provide practical guidance on how you can adopt and implement Agile to add value to your business. Steve Messenger Chair, DSDM Consortium 10190 IBP Understanding Agile TEXT v0_9.indd 10 01/08/2016 15:18
  • 13.  xi Acknowledgements This publication is endorsed by the DSDM Consortium, and the author and publisher greatly appreciate the recognition from this organization. Author acknowledgements Although I have based this publication on my many years’ experience as a manager working in an Agile environment, it would not have been possible without the help and guidance of others. I would like to thank my reviewers for taking the time to read the drafts and provide me with extremely valuable feedback, which has made the publication far better than it would have been. I would particularly like to thank Jennifer Stapleton, who has been instrumental in helping me focus the publication on its main audience and also provided me with advice and guidance based on her wide experience in the Agile world. Finally, I would like to thank the DSDM Consortium for allowing use of their materials and also for their support in making this publication a reality. The DSDM material used in this book is copyright of the Dynamic Systems Development Method (DSDM) Limited and reproduced by permission. About the reviewers Ed Holt Ed Holt of Intrinsica Consulting Ltd has been involved in the development and deployment of Agile methods for more than 20 years, having co-founded and become the first chairman of the DSDM Consortium in 1994. His business experience spans the management of all aspects of sales, marketing and operations in high-tech companies. While his original focus was very much in the IT project space, his more recent application of Agile methods, frameworks and techniques demonstrates how business in its widest sense can benefit. Manuel Mazán Manuel Mazán is an experienced Lean Agile consultant for Agiland SAC, with strong leadership, mentoring, training, facilitation and project management skills. He has proven results in leading software teams to deliver value and meet organizational goals in complex technology environments. Manuel is a certified Scrum master, certified Scrum professional and regular speaker at international conferences in Lean and Agile methods. He currently works as an Enterprise Agile coach in a worldwide initiative to transform the digital banking function of one of the biggest banks in Europe and Latin America. 10190 IBP Understanding Agile TEXT v0_9.indd 11 01/08/2016 15:18
  • 14. Understanding Agile xii David Wright David Wright is a project management professional with expert knowledge in project, programme and portfolio management. He has won Australian national awards for his projects and is highly regarded for his advice, assurance and mentoring, while working closely with lead authors of AXELOS products. David is certified in PMP® , PRINCE2® , MoP® , P3M3® and AgilePM and is a certified Gateway Review team leader. He is highly proficient in MSP® , P3O® , OPM3® and PMI’s Programme and Portfolio Standards. David is a graduate of the Australian Institute of Company Directors, president of PMI Queensland, CEO of QVC Solutions and a board director of a credit union. 10190 IBP Understanding Agile TEXT v0_9.indd 12 01/08/2016 15:18
  • 15. 1 1 Why should managers adopt an Agile approach? When a man is alive, he is soft and supple. When he dies, the body becomes hard and stiff. When a plant is alive, it is soft and flexible. When it is dead, it becomes dry and brittle. Therefore, hard and rigid shall lead to death. Soft and gentle shall lead to life. Lao Tzu As a leader and manager, I feel that I need to understand a situation, concept or new tool before deciding whether it is right for my organization. This also helps me to decide on the approach to take to introduce it. With this in mind, I will spend this introductory chapter defining Agile. There are a lot of misconceptions about Agile. For example, I have heard people say, ‘We are Agile – we use Kanban boards,’ but everything else is done as it has always been. You may also come across those I call ‘Agilistas’. They are dogmatic and claim that ‘If you’re not doing Agile our way, you’re not doing Agile.’ Given the values and mindset behind Agile, this is quite ironic. Later, we will look at what Agile actually is, but let’s start by looking at the potential benefits. 1.1 The benefits of Agile The 9th Annual State of Agile Report from VersionOne claims 94% of companies surveyed now use Agile in some form or another. This is an impressive figure, given that Agile as we know it started only in 2001. It means that Agile is now an established way of working and has gone beyond the ‘passing fad’ stage. This is further evidenced by the increasing number of Agile conferences. These are well attended events, and the audience has changed over the past few years from software developers to senior members of companies wanting to understand how to implement Agile in a sustainable way in their organizations. So what has made Agile so popular? The following are some of the reasons senior managers want to adopt Agile. 10190 IBP Understanding Agile TEXT v0_9.indd 13 01/08/2016 15:18
  • 16. Understanding Agile 2 1.1.1 Responsiveness to change There is an increasing pace of change in all walks of life, but particularly in business. Businesses can no longer afford to ignore the changes happening or to react too slowly to them. The successful businesses of the future will be those that are highly responsive to change. Small, empowered teams with defined goals are central to all Agile thinking. These teams can react to and embrace change quickly and redirect their efforts to the current business priorities. The Agile approach also emphasizes delivery of value early and often. This means that the organization can realize benefits sooner, benefiting from otherwise lost opportunities and potentially beating competitors to the marketplace. 1.1.2 Better value for money We all need to do more for less. A very competitive world market squeezes prices and demands that we keep costs down. The Agile approach is to concentrate on the business need and on what will add real value. We focus on delivering the outcomes that add significant value to the organization. We reduce waste by, for example, not implementing business changes that were never required or add little value. It also ensures efficient use of all resources, such as money, people’s time and equipment. The Agile approach can be applied at many levels of an organization. The prioritization techniques, for example, can be used at the portfolio level to determine exactly which high-level initiatives will add most value to the organization. Introducing a big initiative in small, frequent steps allows your organization to get most benefit as early as possible. You can also react quickly to change, moving resource and budgets to other initiatives if they become more urgent or represent better value for money. 1.1.3 Pleasing the customer To remain competitive, all businesses need to please their customers and build relationships that can last well into the future. This is obviously true for our external customers, but a culture where internal parts of an organization can have a similar relationship with its internal customers can also result in a highly motivated, effective organization. Agile has the customer at the heart of every initiative. It is customers who make the business decisions and constantly have the chance to provide feedback and redirect Agile initiatives within governance guidelines. They also benefit from high-quality outcomes delivered on time, enabling them to plan the inevitable business change activities to get the most value from what is delivered. 10190 IBP Understanding Agile TEXT v0_9.indd 14 01/08/2016 15:18
  • 17. Why should managers adopt an Agile approach? 3 It is therefore no surprise that there is a high level of customer satisfaction with respect to both the outcomes and the initiatives that created them. Customers often feel real ownership of the solutions they are given and will promote them and their creators within their spheres of influence. 1.1.4 A collaborative culture Traditionally, initiatives in organizations are undertaken with much trepidation. There is contention between the customer and the supplier. This often leads to a total breakdown of communication and trust, and the probability of being successful is greatly reduced. Agile approaches demand the creation of cross-functional teams focused on the same goals. The customer is a central and key member, and everyone involved soon works in a collaborative way as they have the same goal and feel part of the same team. This is equally true of the other stakeholders represented in the team. This collaborative atmosphere does not disappear when the initiative is over. Those who have worked in such teams develop relationships that go further than just that initiative; collaboration and mutual respect grow and start to permeate the organization. This can lead to a working environment that promotes innovation and removes conflict. 1.1.5 Higher-quality outcomes Although cost and competitiveness are important, organizations are unlikely to succeed for long if they are not seen as producing quality products and offering a quality service. In the past, products and solutions were created with little customer feedback until well into the process. In an Agile approach, customers are asked for their contributions and feedback throughout. This means that the solution delivered will really meet their requirements. Technical testing of a solution is also included from the start, test personnel being an integral part of the team and contributing to design discussions. In this way, both technical and functional product quality are built in throughout the Agile lifecycle. Potential problems are discovered early on and can be corrected before they become major. As long as these principles are followed, the result is a high-quality outcome that really meets customer needs and adds value to the organization. Agile in practice I am always surprised by what happens in workshops or training courses when I create arbitrary teams. The individuals often do not know each other, but within a short time they are working together towards a goal. They also have a common identity and see the other teams as ‘them’ – a competitive spirit emerges between teams! Of course this isn’t always desirable, especially if we consider scaling Agile to large organizations. 10190 IBP Understanding Agile TEXT v0_9.indd 15 01/08/2016 15:18
  • 18. Understanding Agile 4 1.1.6 Better-motivated people We all want our organizations to be full of motivated individuals. As well as making the organization a fun place to work and attracting the best people, motivation can lead to high performance and give the business a competitive edge. Central to Agile are empowered, cross-functional teams working together to achieve a goal. Having such teams actually improves motivation. Once the team becomes a unit, it normally enjoys what it is doing. There may be disagreements and heated discussions, but generally the team is focused on the outcome and collaborates to achieve it. The final outcome is normally very positive, and therefore the team’s motivation remains high even at the end of the initiative, when it looks forward to the next one. 1.1.7 Better perception by customers As Agile becomes embedded in an organization, the customer starts to get frequent, punctual deliveries of high-quality solutions that meet their requirements and add value. Inevitably, this changes the customer’s perception of the supplier. A relationship that was once strained and mistrustful becomes collaborative and trusting. In fact, the customer will start to promote the supplier (whether internal or external) throughout the organization and beyond. As the customer is closely and continually involved in the initiatives, it will start to understand the stresses and strains of the supplier organization, and vice versa. This builds an environment of respect and trust and enables both sides to create future plans together. 1.1.8 Summary Of course, there are other advantages to the Agile approach, including, for product-based companies, shorter time to market. A great advantage of Agile is the environment of transparency, trust and respect that it creates. People working in such an environment want to do the best job they can. As they focus on the goals, not on the politics, innovation becomes the norm, and delivering the right solution is guaranteed. Agile in practice In one of my roles, I implemented Agile practices in a pharmaceutical company. We undertook a project normally classed as ‘validated’ – that is, subject to the regulations set by the Food and Drug Administration, Medical and Healthcare products Regulatory Agency or another regulatory body. The validation expert from the Quality department was appointed as a core member of the project team. He was sceptical at first, but as the project continued he said to me one day, ‘Actually, this Agile approach means better quality, doesn’t it?’ 10190 IBP Understanding Agile TEXT v0_9.indd 16 01/08/2016 15:18
  • 19. Why should managers adopt an Agile approach? 5 1.2 The Agile approach Having looked at some of the benefits of adopting Agile, let us now understand what it means for us. Is it a tool, a method or a technique? Although Agile implementations may include Kanban, Scrum, Lean or other methods and tools, these do not in themselves define an Agile approach. Agile is, foremost, a way of thinking and acting. The Agile Manifesto explains this to some extent; however, in my opinion, it does not give a complete answer, being limited to software development. In recent years, the Agile way of thinking has gone a lot further and now whole businesses are being run on Agile principles. So what is the approach? In essence it is centred on people and their interactions, and delivering benefits to an organization early and often. Central to the approach are a number of fundamental ways of thinking, working and interacting. It may come as no surprise to you that, as good managers and leaders, you have already introduced some of these ways into your organization. Whether this is the case or not, you have to take the following ideas seriously if you are to benefit from the Agile approach. 1.2.1 The future is uncertain We have talked about businesses being responsive to change. The way we approach planning at all levels in our organization is a key part of enabling this. Traditionally, throughout our organization, we have tried to plan well into the future, get plans agreed and then stick to them. We have also tried to predict what the organization might need in future. Budgeting activities, where we have to lay out what we will need for the year ahead and possibly longer, are an example of this. If we adopt an Agile mindset, we accept that this is not generally possible as business imperatives change quickly. The experience of talking about and using the capabilities we introduce into our organizations, The Agile Manifesto http://agilemanifesto.org/ In February 2001, a group of software developers published the Manifesto for Agile Software Development. In this manifesto, they stated that by ‘uncovering better ways of developing software by doing it and helping others do it’, they had 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. In other words, while they acknowledged that there was value in the items on the right, they valued the items on the left more. 10190 IBP Understanding Agile TEXT v0_9.indd 17 01/08/2016 15:18
  • 20. Understanding Agile 6 or introducing new products and services into the marketplace, clarifies our understanding of what they actually need to do. So does this mean we do not need to plan and we should just let everything evolve? No – taking this approach, we would not fulfil our responsibilities as leaders and managers. Although we have to accept that the future is full of uncertainty and change, we still need to have a clear idea of what we want to achieve and why. We need to ask ourselves whether the benefits outweigh the potential costs, risks and disruption of making the journey. We need to have a clear vision, and then plan how to achieve it. Planning the whole journey as an outline is sufficient; however, we need to recognize that this is likely to change. As we embark on the each step, we can plan in more detail as requirements become more obvious. 1.2.2 Change is normal and inevitable The pace of change in today’s business is phenomenal. Unless we can make our organizations responsive to change, we put them in danger of lagging behind, losing opportunities and business. Generally, we understand that some events that occur will change our status quo. These can be changes for the better or for worse. As human beings we are equipped to cope with and embrace change, learn from it and move forward. Charles Darwin taught us that those living things most responsive to change are more likely to survive. Ironically, we often create complex bureaucratic procedures for change in our organizations. We see change as a disruption to be avoided or assessed in detail and minimized. We think we will fail to achieve our goals if we let change happen. In fact, we are more likely to fail if change doesn’t happen. Our organization will be out of date and will not meet today’s requirements. But if change is inevitable, why not embrace and plan for it? This is exactly what Agile asks us to do. Budget and time constraints are still important. So if we want to use Agile to accommodate change, we must find a way to protect budgets and time, but still get what we need. In section 3.4, I will explore how this is possible within the Agile approach. 1.2.3 Provide capabilities early and often Traditionally, it can take a long time for the benefits of change initiatives to become a reality and to start to add real value to our organizations. Could we have benefited if some of the change was delivered earlier? Could we have used our experience and feedback to Agile in practice Assume we are travelling from A to B. We may plan a route, but events on the way – for example, closure of a major motorway or main road – will demand that you change plans. The important thing is that we want to get to B; the plan may change along the way. 10190 IBP Understanding Agile TEXT v0_9.indd 18 01/08/2016 15:18
  • 21. Why should managers adopt an Agile approach? 7 influence future outcomes? We may also gain confidence that the initiative is working and delivering, instead of seeing it as a potential failure that is late, and over budget. The Agile approach is to design our initiatives to provide the organization with capabilities incrementally, as early and often as possible. The organization then reaps the benefits of early use and becomes more and more confident of the value of the change and of the team making it happen. Of course, this implies we must continually prioritize what we are doing to ensure we optimize the value delivered into the organization. Prioritization is discussed in more detail in section 6.1.3. 1.2.4 Iterative feedback How often have you been frustrated that something you have bought or commissioned does not do what you want it to? Unless we are people of exceptional vision, we find it difficult to explain what we need. We often don’t know until we see it, or until we have seen some examples. This can lead to real problems if we are trying to define our exact requirements years into the future. We confuse what we would like with what is needed to do the job, and we tend to include bells and whistles that seem like a good idea, but in reality are hardly ever of any use. The result is often something that doesn’t really meet our requirements, or in fact is almost unusable. Figure 1.1 shows an example of the usage of IT systems as presented in Chaos: A Recipe for Success (The Standish Group, 1999). Agile in practice A central theme in Agile thinking is the delivery of value early and often. It is important that the emphasis is on real value. It is not enough, for example, just to deliver a new software package, new production equipment or a new office. The real value comes when the business processes and organizational structures are aligned in order to get the most benefit from it. 7%13% 16% 19% 45% Never used Rarely used Sometimes used Often used Always used Figure 1.1  Usage of IT systems 10190 IBP Understanding Agile TEXT v0_9.indd 19 01/08/2016 15:18
  • 22. Understanding Agile 8 Figure 1.2  Iterative cycle The Agile approach recognizes that it is impossible to define completely and in detail exactly what is required upfront. It is necessary to set the landscape – i.e. what the overall requirement is – but then to understand that the detail will emerge and change as more is known and as inevitable changes in the business environment affect the requirements. With the best form of Agile, enough investigation is done initially to understand the problem and engage potential suppliers in discussions. Then iterative feedback techniques, such as Plan-Do-Check-Act (see Figure 1.2) are used to identify a solution that will really meet requirements. The benefit of this approach is that each requirement is assured to meet customer needs and no time or money is lost trying to define something that is not known. 1.2.5 Small, motivated and empowered teams Process-driven techniques are often applied to what is essentially innovation. Although this approach may work well for a production line or other repeatable tasks, it tends to stifle innovation and delay the process. In process-driven techniques, individuals are responsible only for their part of the process. There is often little or no communication between the individuals involved in the different processes. If we apply this process to complex innovative situations, it can lead to ambiguities in understanding, and quite often the end product will not meet requirements. Agile in practice A Swedish car manufacturer questioned the process approach to building cars, pioneered by Ford. They set up small teams responsible for the whole car. The result was a better- quality product in a shorter time. Plan Act Do Check 10190 IBP Understanding Agile TEXT v0_9.indd 20 01/08/2016 15:18
  • 23. Why should managers adopt an Agile approach? 9 Figure 1.3  Scrum team composition The Agile approach is different. Small, multidisciplinary and multifunctional teams are created (see Figure 1.3), comprising representatives from those that will benefit from the solution as well as those that will create it. The team is given a specific goal and this sense of common purpose helps to unite it. The team builds a collaborative environment in which all team members understand that the goal is the priority and that they will contribute in any way they can to achieve it. The team is responsible for all aspects of achieving its goal; there are no points where the process moves to a different team. So, to get the most from adopting an Agile approach, we will need to examine the structure of our organizations. In creating an Agile business, we may need to remove separate departmental ‘silos’, and consider creating multidisciplinary teams focused on specific products or goals. Business owner Stakeholders Product ownerScrum master Scrum team 10190 IBP Understanding Agile TEXT v0_9.indd 21 01/08/2016 15:18
  • 24. Understanding Agile 10 1.2.6 Empowerment or decision-making close to the impact The Agile belief is that teams work best when left alone to deliver their goals, making their own decisions and finding the solution. Teams are empowered to fulfil the goals they have been given. This will create high-performing, motivated teams. Of course, there may be times when specialists are required to perform some functions that the team cannot. Clearly, the empowerment is not limitless; it is restricted to the fulfilment of the goal. It does not allow decisions that may impact others outside the team. The team must also consider the impact on other teams and determine when it will need to interact with them. A small team (that could be in more than one location) communicates more easily with less confusion or misunderstanding. The fact that all disciplines are represented in the team means that any potential miscommunication between the customer and those developing the solution can be avoided. You may be thinking, quite rightly, that small teams are all very well, but what about when the project or programme demands larger, more complex structures? I will discuss this in more detail in later chapters. 1.2.7 Continual and close involvement of the customer The previous sections imply that those who will benefit from the initiative – the customers – are an integral part of the team and are making decisions on a daily basis towards the final outcomes. This places the onus of making business decisions on the customer, and helps to ensure that the right outcome will be delivered. It also means that the customer has to be available as required to participate in the process and give business knowledge and feedback. In section 2.3.2, I will discuss this in more detail. 1.2.8 Learning from experience Throughout our lives we are learning, and this often comes from trying something new. The result of this is that we review and modify our future behaviour based our experience. Often, this natural learning cycle is forgotten when we are placed in a work environment. We carry out tasks, complete them, and start the next one without taking time to understand what went well or not so well. The Agile approach embraces the learning process and incorporates the concept of continual improvement. Many Agile methods have specific techniques to facilitate the process. One example is the ‘retrospective’. A retrospective is a meeting that takes place after most significant events or deliveries and often at regular intervals. The team reviews what has been done, with the objective to learn and to change future behaviour, interactions and processes. 10190 IBP Understanding Agile TEXT v0_9.indd 22 01/08/2016 15:18
  • 25. Why should managers adopt an Agile approach? 11 1.2.8.1 Fail fast Uncertainty is one of the drivers within the Agile approach. In order to understand exactly what is required, Agile teaches us to try something early and get feedback. If it is wrong, we can modify it. This concept is known as ‘fail fast’. A word of caution – fail fast means failing early so that you can change in time for it not to be a problem. This doesn’t mean, as one developer once told me, putting live something that is not fit for purpose: ‘We put the change live and the system failed – no-one could use it. But we had identified the problem and corrected it within an hour. We failed fast!’ In fact, Agile should never mean compromising quality. 1.3 Agile myths Now that we have looked at the benefits and the Agile approach, you may be wondering what the catch is. As leaders and managers, we always need to approach change initiatives with our eyes open. Agile is obviously a good approach, but it is not a panacea. The following sections describe six of the myths I have come across in my Agile journey. Myth 1 – Agile is faster Some organizations have adopted Agile because they have heard it can be faster. Does this mean work can be done more quickly merely by adopting Agile? What about the quality of the work? Why should an individual suddenly work faster just because they are using Agile techniques? Does this imply they are taking more risks? In fact, Agile demands very high quality and often reduces risk. The savings in time come from concentrating on things that add value and are really required. The same initiative can appear to go faster because we have removed a lot of the unnecessary ‘padding’. Potential delays caused by communication and decision-making can be eliminated using Agile approaches. This is because the teams consist of stakeholders from all areas affected by, or benefiting from, the initiative. They can make decisions quickly and communicate well as they are often together, possibly even co-located. The use of techniques such as Lean and Kanban can also identify and eliminate process delays in the way we do things, hence speeding up the Agile processes. So Agile really can be faster, but only because waste in functionality, communication and process is eliminated. Agile in practice ‘Fail fast’ implies that no time is wasted following the wrong path. Finding out what is wrong early in the process is more economic in the long term. Each failure eliminates wrong assumptions and helps to create the right and best solution. 10190 IBP Understanding Agile TEXT v0_9.indd 23 01/08/2016 15:18
  • 26. Understanding Agile 12 Myth 2 – Agile is easy On the surface, Agile can seem very simple and easy. A cross-functional team is assembled, it is given a goal and is empowered to do what is required to meet that goal. Short steps are then executed to produce an incremental set of quality outcomes. In fact, good Agile requires discipline and control. It is important to get the following right when implementing Agile in your organizations: ●● Each person must accept the personal accountability and responsibility that comes with empowerment. ●● Agile initiatives are normally fast moving, and teams can get caught up in the enthusiasm of it – they need to be disciplined to keep their focus on the goals. ●● The iterative techniques can lead some to believe that an initiative is closer to completion than it actually is, and this can cause a problem with customer expectations. ●● Agile requires fast, efficient decision-making and commitment from all involved to reach the goals in the time defined. Empowerment is powerful, but the limits of it need to be clear –otherwise teams may make decisions that are out of their control or not appropriate.  Myth 3 – Agile is a documentation- and governance-free zone Having once been a software developer, I can see how lack of documentation could be seen as a benefit. Having also been a member of my organization’s leadership team, I see the opposite problem with this. How can we support something without any knowledge of it? How do we satisfy our auditors? How do we decide what to do, and who should do it? How do we communicate with senior stakeholders? The use of Agile approaches does not imply that documentation and governance are not necessary; rather that they should add value to the process. Chapter 4 describes the various Agile methods. Those in the ‘full project/programme’ category provide good support for Agile governance, suggestions for documentation and its use. Myth 4 – Agile is a planning-free zone I have heard anecdotes of customers being told statements such as, ‘We can’t tell you how long it will take. The requirements will emerge as we do it.’ Or, ‘In Agile you just dive in and do it.’ Perhaps you have been told the same. Whenever I have done either of these things the result has been disastrous, costly, or both. Although it is true that we have to let the detail emerge, we still need to understand the problem sufficiently to be able to plan. We must determine that the projected benefits outweigh the costs. Otherwise, Agile or not, we should not do it. Also, if we don’t plan, how can we know how to deliver incrementally? 10190 IBP Understanding Agile TEXT v0_9.indd 24 01/08/2016 15:18
  • 27. Why should managers adopt an Agile approach? 13 Planning is vital in Agile, but only to a level of detail that is appropriate for the period we are considering. In general, the further into the future we plan, the less detailed our plans are and we accept that they may change. As we embark on a specific, shorter timeframe, we plan in more detail. There is often more planning in Agile than in more traditional environments – the difference is that planning is integrated throughout. Myth 5 – Agile does not need managers By implementing Agile, do you make management redundant? Of course not. In many early Agile implementations, the team was seen as all that was needed to deliver a solution. Anything else was seen as unnecessary interference – it would either slow the team down or undermine its empowerment. This may be true for a very small piece of work in which there are no complex interfaces or politics. As we know, however, this is rarely true. Normally, the small piece of work is part of a larger initiative (see Figure 1.4). There are many areas that may be affected, or need amendment to be able to reap the real benefits of what we are doing. These can include business processes, organizational structures and company infrastructure. Senior stakeholders also need to be kept informed. Having multiple suppliers, locations and customers can complicate the picture. Good project management has always been about dealing with all of these different aspects. So please don’t sack all your project managers, or yourselves! Figure 1.4  An example of a complex organization 10190 IBP Understanding Agile TEXT v0_9.indd 25 01/08/2016 15:18
  • 28. Understanding Agile 14 Project and programme managers need to change their approach – command-and-control or micro-management will not work. Myth 6 – Agile never fails In theory, Agile initiatives deliver new capabilities early and often. These capabilities are tangible and can either be used in the live business, or form part of something that will. We can class them as ‘done’, meaning that no more work is required on them. Since they are real and not merely documents, models, architects’ drawings or other specifications, we can get a good impression of progress. We are also provided with early signs of problems. If we also take into account the constant involvement of the customer, ensuring that the solution will really meet their requirements, it becomes obvious that taking an Agile approach can be less risky than more traditional methods. However, Agile initiatives can and do fail and there are some spectacular examples. Some reasons are: ●● Company philosophy or culture in conflict with an Agile approach ●● Unwillingness to change, leading to pressure to follow more traditional processes ●● Organizational or communication problems ●● Lack of sufficient training or coaching ●● Lack of experience with Agile methods ●● Unwillingness of the team to follow Agile ●● Lack of management support. Failures are generally caused by people. Starting with yourself, ensure that everyone understands the risks associated with Agile and put in adequate risk management processes; this way the probability of failure can be minimized. We will examine the risks in more detail in section 5.3. 1.4 Agile approaches – what’s different? I haven’t yet compared Agile with other ways of working. Ten years ago there was a lot of scepticism about Agile as opposed to more traditional techniques, such as the Waterfall process in software development. Now, however, the distinctions between Agile and Waterfall approaches are very clear (see Appendix A). Agile in practice The impact of project management can best be seen when it is not present. Initiatives start to go wrong and it can be difficult to bring them back on track. 10190 IBP Understanding Agile TEXT v0_9.indd 26 01/08/2016 15:18