Risikominimering I IKT-prosjekter - experiences from the Danish Government

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1 Risikominimering I IKT-prosjekter - experiences from the Danish Government Christian Vindinge Rasmussen, Senior Advisor, Agency for Public Management and egovernment (Difi), Norway IKT anskaffelser 16 th of January 2014

2 About CSM, CSPO, CSP, Six Sigma Green Belt, PRINCE2 Agency for Public Management & egovernment, Norway Ministry of Finance, Denmark Ministry of Science, Tech. & Innovation, Denmark LEGO Software Innovation External ICT project auditor for European Commission since 2009 Agile coach & trainer SCRUM, Kanban, Six Sigma since /01/14 Direktoratet for forvaltning og IKT

3 Agenda and topics for today Why are we here? How do we run ICT projects today? How could we run our projects to minimize risk? What pitfalls are there with all this? 14/01/14 Direktoratet for forvaltning og IKT

4 So what is the problem? The world is getting smaller every day more competition on resources. more competition on prices. more competition on quality. And we need to excel at reducing our risks to improve our end product, and create better business value! 14/01/14 Direktoratet for forvaltning og IKT

5 In 2007 the Danish Ministry of Finance created a rapport with Gartner Between 60 70% of all public IT-projects in Danmark failed due to budget- or time- slippage and wrong estimates The projects that runs well contains up to 60% not needed functionality, when done typically caused by wrong requirement specs and changed needs All changes to the projects are extremely expensive, the further you are in the development 14/01/14 Direktoratet for forvaltning og IKT

6 So we needed to identify, what risks caused all this: Lack of suitable communication Lack of visibility Cost of change Dysfunctionel project methodology Not clearly identified and optimized processes Amount of risks too high in general for healthy projects! 14/01/14 Direktoratet for forvaltning og IKT

7 the old way of doing things: ZERO portfolio management PRINCE2 was the only tool for project managers in their execution of the projects Subcontractors managed 100% how repporting, test and delivery should be made! As projects progressed it became more and more difficult to talk with the subcontractor about changes or wishes for the system! Change Management was a daily rutine! Too much communication through mails and seldom through meetings, skype etc. 14/01/14 Direktoratet for forvaltning og IKT

8 Waterfall model example Requirements Design Implementation Testing Installation Handover between steps Surprise at the end (Tah-dah) Acceptance 14/01/14 Direktoratet for forvaltning og IKT

9 Over the Wall mentality 14/01/14 Direktoratet for forvaltning og IKT

10 We had (and wanted) to do something - cheaper - better - faster - smarter! (Words by Peter Corbett, istrategylabs) 14/01/14 Direktoratet for forvaltning og IKT

11 Our top priority To satisfy the customer or stakeholders through early and continuous delivery of valuable software 14/01/14 Direktoratet for forvaltning og IKT 11

12 Principles I Our highest priority is to satisfy the customer or stakeholder through early and continuous delivery of valuable software Welcome changing requirements, even late in development. Processes should harness change for the customer's competitive advantage Deliver working software frequently, from a couple of weeks to acouple of months, with a preference to the shorter timescale 12 14/01/14 Direktoratet for forvaltning og IKT

13 Principles II Business people and developers must work together daily throughout the project Build projects around motivated individuals. Give them the environment and support they need, and trust them to get the job done The most efficient and effective method of conveying information to and within a development team is face-to-face conversation 13 14/01/14 Direktoratet for forvaltning og IKT

14 Principles III Working software is the primary measure of progress Processes promote sustainable development. The sponsors, developers, and users should be able to maintain a constant pace indefinitely Continuous attention to technical excellence and good design enhances agility 14 14/01/14 Direktoratet for forvaltning og IKT

15 Principles IV Simplicity - the art of maximizing the amount of work not done - is essential The best architectures, requirements, and designs emerge from self-organizing teams At regular intervals, the team reflects on how to become more effective, then tunes and adjusts its behavior accordingly 15 14/01/14 Direktoratet for forvaltning og IKT

16 In 2007 we changed our management strategy Adopted two controversial project methods One fostered the startup and maintainance of a project The other fostered the core development We had to build a bridge over all the RISKs our old projects faced! If you had a budget of 100mio kroner worth of ICT projects, you wouldn t just let kaos loose, right? 14/01/14 Direktoratet for forvaltning og IKT

17 The two methods on one page: All employees in our department was certified in Scrum as either Master or Productowner, and most were already or was provided with certification in at least PRINCE2 Foundation or above. All internal teams and external projects started up with Scrum as primary methodology in their daily work and with PRINCE2 as overhead We supported the projects and portfolio with tools for both PRINCE2 and Scrum PRINCE2 SCRUM / PRINCE2 PRINCE2 Business Case RISK identification Stakeholders Proof of Concept Daily standup Sprint planning Retrospect Reporting Documentation RISK analysis Evaluations Transfer of ownership Maintainance RISK evaluation 14/01/14 Direktoratet for forvaltning og IKT

18 Why two project methodologies? - Most people think the two methodologies dont match! - PRINCE2 is great at starting up and ending the projects - Scrum is excellent at executing the project! - but common for both of them is that communication is a central element and tool you should use every day, hour, minute, second 14/01/14 Direktoratet for forvaltning og IKT

19 Classic it-project Finished Product Implementation document Requirement specification Need Developer Customer PM/ Architect Salesforce Actual need 14/01/14 Direktoratet for forvaltning og IKT

20 Agile it-project Vision Customer Team Actual needs 14/01/14 Direktoratet for forvaltning og IKT

21 Communication is the key to reducing your RISKs! Set expectations Define goals Prioritize effort Act on problems Sharing Work as a team 14/01/14 Direktoratet for forvaltning og IKT 21

22 RISK considerations I Business value 14/01/14 Direktoratet for forvaltning og IKT

23 RISK considerations II Change Management 14/01/14 Direktoratet for forvaltning og IKT

24 RISK considerations III Communication 14/01/14 Alistair Cockburn

25 RISK considerations IV RISK management 14/01/14 Direktoratet for forvaltning og IKT

26 RISK considerations V 14/01/14 Direktoratet for forvaltning og IKT

27 Maximize delivered value for money... The Lean Message: Reduce waste Just-in-time Stop the line The Agile Message: Frequent deliveries Learn and adapt Team work Value and Waste Maximize Throughput People and Leadership Optimize the Whole Continuous Improvement The TOC Message: The goal is to maximize profit Constraints limit throughput Optimize the whole 27 14/01/14 Direktoratet for forvaltning og IKT

28 Value and Waste Value What the customer is willing to pay for. Waste Everything that do not create value are potential waste candidates. 14/01/14 Direktoratet for forvaltning og IKT 28

29 7 Wastes of Software Development Partially done work (inventory) Paperwork Extra features (overproduction) Task switching Handoffs Delays Defects 14/01/14 Direktoratet for forvaltning og IKT 29

30 Optimize the Whole Describe problem at the support web site Evaluate severity Technical analysis Code & Fix 30 min 7 days 30 min 14 days ½ day 0 days 1 day Document fix Package & release bug fix Download and review bug fix Install bug fix at customer site ½ day 0 days ½ day 30 days 30 min 30 days ½ day 84 days cycle time 3 days of value 81 days of waste 3.6% efficiency 30 14/01/14 Direktoratet for forvaltning og IKT

31 Maximize throughput Pull Delivered value Define cross-functional teams Early and frequent delivery of value Pull work at bottleneck rate Reduce project size Reduce multitasking 14/01/14 Direktoratet for forvaltning og IKT 31

32 Theory of Constraints Eli Goldratt Pull Delivered value 1.Identify Bottleneck 2. Exploit Bottleneck 3. Subordinate 4. Increase Bottleneck Capacity 5. Goto 1 Critical Chain Throughput Accounting Inventory is a cost 32 14/01/14 Direktoratet for forvaltning og IKT

33 Reduce Multitasking A1 B1 C1 A2 B2 C2 A3 B3 C3 100k 50k 20k A1 A2 A3 B1 B2 B3 C1 C2 C3 100k 50k 20k 33 14/01/14 Direktoratet for forvaltning og IKT

34 KNOK Return on Investment Parallel Serial 14/01/14 Direktoratet for forvaltning og IKT 34

35 KNOK Inventory Parallel Serial 14/01/14 Direktoratet for forvaltning og IKT 35

36 People and Leadership Simple Rules Dee Hock Simple clear purpose and principles give rise to complex intelligent behavior Complex rules and regulations give rise to simple, stupid behavior Empowered teams Define the purpose for the team Give the team access to customers Let the team make its own commitments Cross-functional and collocated teams Let the team self-organize 100% focus on actual feature, when done, pull next feature from priority list 36 14/01/14 Direktoratet for forvaltning og IKT

37 Optimize the whole Look at the whole Value Stream, from the arrival of a Customer request to its completion. No value until end-users start using what we ve done Tell me how you measure me, and I tell you how I behave Eli Goldratt 37 14/01/14 Direktoratet for forvaltning og IKT

38 However Scrum, PRINCE2, Six Sigma and other methodologies ia not a silver bullet You, your organization and your subcontractor has to be mature and ready for adopting changes Changes needs to anchored buttom-up especially agile changes PRINCE2 gives management tools SCRUM gives subcontractor and/or your employees tools Dato 14/01/14 Direktoratet for forvaltning og IKT

39 Thank you for listening ( now go and communicate!) E: M: L:

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