Why All the Fuss About Agile (And Why You Should Care)

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1 Why All the Fuss About Agile (And Why You Should Care) Kevin Aguanno B.A., MAPM, CSPM (IPMA-B), Cert.APM, PMP, PMI-ACP, CSM, CSP, FPMAC 17 Sep GenXus Management Consulting. All rights reserved.

2 Your Presenter: Kevin Aguanno B.A., MAPM, CSPM (IPMA-B), PMP, Cert.APM, PMI-ACP, CSM, CSP 25+ years of PM experience 30+ published books, audiobooks, DVDs, and CD- ROMs most on agile and PM-related topics Principal Consultant and Certified Executive Project Manager with 15 years at IBM Was IBM s Agile Centre of Competency Lead for many years Has been teaching Scrum since 1999, XP since 2005, and Lean since 2006 Winner of SCS Excellence in Teaching Award at the University of Toronto Fellow of the Project Management Association of Canada 17 Sep

3 Agenda Agile Definition, Objectives, Principles Benefits of Agile Use of Agile in Industry 17 Sep

4 Agile Definition, Objectives and Principles 17 Sep

5 We Work at the Edge of Chaos Chrysler Comprehensive Compensation (C3) Early 1990s, unify 3 payroll systems for 86,000 employees. Highly complex, no COTS package meets requirements. Many stakeholders within Chrysler. Existing project a failure, floundering in all the complexity and making no progress. Singapore Project Highly complicated lending system 2 years, 3500 pages of use cases, object model with hundreds of classes and thousands of attributes (but no methods) But NO Code 17 Sep

6 Traditional Methods Don t Always Help Lock Down Requirements Stopping change means unresponsive and possibly not delivering value. Tighten Control Traditional methods fight market demands for speed and innovation. Fall Back to the Contract Sticking to original plans leads to customer dissatisfaction 17 Sep

7 Defined versus Empirical Processes Defined = Bullet Empirical = Cruise Missile 17 Sep Diagram ADM Inc. (

8 Systems Development Approaches Month 1 Month 2 Month 3 Waterfall Iterative A B C A/B/C A B C A B C Big Bang Incremental Agile A A+B A+B+C A 1 B 1 C 1 A 1,2 B 1,2 C 1,2 A 1,2,3 B 1,2,3 C 1,2,3 Phased The Agile Approach is Iterative AND Incremental Legend Boxes shaded when work is complete. 17 Sep

9 We Need a Range of Methods Defined or Deterministic (Plan-Based) Empirical (Observation- Based) Linear / Waterfall Incremental Iterative Agile Focus is on adherence to plan Focus is on delivering value to customer 17 Sep

10 Agile Manifesto Adherents stress: Individuals and interactions over processes and tools Working software over comprehensive documentation Customer collaboration over contract negotiation Responding to change over following a plan That is, while there is value in the items on the right, we value the items on the left more The Agile Alliance 17 Sep

11 The Benefits of Agile 17 Sep

12 Applicability to High-Change Projects Efficiency (Speed to achieving value) Low High Incremental Agile Waterfall Iterative Low High Need for Feedback 17 Sep

13 Applicability to Low-Change Projects Efficiency (Cheap & fast) Low High Waterfall Iterative Agile Incremental Low High Quality (Absence of significant defects at completion) 17 Sep

14 Choosing the Right Approach Start No Does project success DEPEND on frequent feedback? Yes Phased Deployment What is the delivery strategy? Big Bang Deployment Big Bang Deployment What is the delivery strategy? Phased Deployment Incremental Yes Will the project invest in enhanced quality? Will the project invest in enhanced quality? Yes Agile No No Waterfall Iterative 17 Sep

15 Myth: Agile is Just Another Fad Has your organization adopted one or more agile techniques? If No, when will you adopt agile? From Agile Adoption Survey 2008 by Scott W. Ambler, August 2008 issue of Doctor Dobb s Journal. 17 Sep GenXus Management Consulting. 15 All rights reserved.

16 How Agile Approaches Affect Productivity From Agile Adoption Survey 2008 by Scott W. Ambler, August 2008 issue of Doctor Dobb s Journal. 17 Sep GenXus Management Consulting. 16 All rights reserved.

17 Agile s Impact on the Quality of Systems Deployed From Agile Adoption Survey 2008 by Scott W. Ambler, August 2008 issue of Doctor Dobb s Journal. 17 Sep GenXus Management Consulting. 17 All rights reserved.

18 Agile s Impact on the Cost of System Development From Agile Adoption Survey 2008 by Scott W. Ambler, August 2008 issue of Doctor Dobb s Journal. 17 Sep GenXus Management Consulting. 18 All rights reserved.

19 Agile s Impact on Business Stakeholder Satisfaction From Agile Adoption Survey 2008 by Scott W. Ambler, August 2008 issue of Doctor Dobb s Journal. 17 Sep GenXus Management Consulting. 19 All rights reserved.

20 The Standish Group s CHAOS Report Studies have shown that more than half of features implemented in production are not used. Symptomatic of projects spending a long time in requirements gathering where requirements cannot be adequately prioritized or articulated. Resulting in longer, more expensive projects with non-usable functioning software. Feature Usage Within Deployed Applications Source: Chaos Report v Sep

21 Use of Agile in Industry 17 Sep

22 Case Study: Yahoo! Large-scale, corporate-wide adoption of Scrum > 200 projects with over 1,500 employees in the US, Europe, and India Results: Average productivity increase was estimated conservatively at 35% per year. Some projects achieved 300%-400% Net development cost reduction of over $1 million a year Lessons Learned There might be just a single window of opportunity. Do a deep dive, train managers as soon as possible. Invest in coaching, otherwise it is too easy to go back to waterfall. Get total commitment from all parties or they will shoot you. Source: Gabrielle Benefield, Senior Director of Agile Development, Yahoo! 17 Sep

23 Case Study: Google AdWords Project Large, multi-lingual application (500K+ LOC) Includes: sales material, support staff training, help docs, change communications plans Large team spread across 5 global offices Had trouble meeting committed delivery dates were taking 7 weeks to meet a 3 week schedule Decided to implement Scrum Results: Now regularly meeting deadlines Scrum now used on 50% of company s projects 17 Sep

24 Case Study: SirsiDynix Horizons Project ERP system for libraries Large install base: 12,000 customers in 42 countries with over 120 million users Client/server application Complete rewrite using new technology Previous Project Colocated Team Horizons Project Distributed Team Waterfall (Original) Scrum (Rewrite) Scrum # Developers Duration (months) LOC (Java) 54,000 50, ,688 Function Points ,673 FP/developer/month Sep GenXus Management Consulting. 24 All rights reserved.

25 Case Study: Insurance Division of a Large Canadian Bank Replacement of a core enterprise system Decided to use agile (Scrum) for the first time on this project Massive investment in retraining, reorg, and even renovations Result: Huge success. Many new agile projects launched. Agile is preferred approach for new projects. Manual vs. Automated Testing Study Results (25 test cases) Testing Time Required (in minutes) Iterations Manual Testing Automated Testing 17 Sep GenXus Management Consulting. 25 All rights reserved.

26 Questions? PMI members get a 20% discount on any of Kevin s publications at using discount code PMIDISCOUNT. Kevin Aguanno (your speaker) is available for consultation at He is the author of over 30 books, audiobooks, DVDs, and CD-ROMs including: Books: CD-ROMs: DVDs:: Audiobooks: 17 Sep

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