RISK MANAGMENT ON AN AGILE PROJECT

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1 BIO PRESENTATION W3 6/28/ 11:30 AM RISK MANAGMENT ON AN AGILE PROJECT Michele Sliger Rally Software Development Better Software Conference June 26 29, Las Vegas, NV USA

2 Michele Sliger Michele Sliger has worked in software development for almost 20 years. Michele has extensive experience in agile methodologies, having employed agile practices as a founding member of the engineering teams at biotech start-ups UroCor and Genomica. At Genomica, Michele honed her Scrum and XP skills while working under Mike Cohn, a recognized founder of the Agile movement. She carried that experience forward into Qwest, where she served as an XP Coach on a team tasked with developing high-profile financial applications. She has an undergraduate degree in MIS and an MBA. She is a certified Project Management Professional (PMP), a Certified Scrum Master (CSM) and an active member of the board of the Agile Denver chapter. Currently, Sliger works as an agile consultant at Rally Software Development, where she trains software development teams in agile methodologies. In addition to her work for Rally, Sliger is also an adjunct faculty member of the University of Colorado where she teaches Software Project Management to graduate engineering students. Throughout her career, she has performed the gamut of software development roles, including programmer, database administrator, quality assurance manager, process manager and project manager.

3 Risk Management on an Agile Project Presented by Michele Sliger Agile Coach and PMP

4 Background on Speaker Michele Sliger 15+ years software development experience PMP (Project Management Professional) CSM (Certified Scrum Master) 6 years experience on Agile teams Agile Denver Board Member Currently an Agile consultant for Rally Software Development Adjunct instructor at the University of Colorado - Boulder 2

5 Objectives for Today What you will learn: The differences between risk management in traditional and agile environments Where the project manager and the team fit in the agile risk management process Typical risk management activities on an agile project 3

6 A Brief Agile Overview

7 Agile Principles The Agile Manifesto We are uncovering better ways of developing software by doing it and helping others do it. Through this work we have come to value: Individuals and interactions over processes and tools Working software over comprehensive documentation Customer collaboration over contract negotiation Responding to change over following a plan That is, while there is value in the items on the right, we value the items on the left more

8 Agile Project Vision Drives the Features Waterfall Agile The Plan creates cost/schedule estimates The Vision creates feature estimates Constraints Features Cost Schedule Plan Driven Value / Vision Driven Estimates Cost Schedule Features 6

9 A Generalized Agile Process Release 1: Theme Release Feature 1 Feature 2 Feature 3a R Backlog Story 1 Story 2 Story 3 Story Iteration 1 Iteration 2 Iteration 3 Iteration Story 1 Story 3 Story 2 Story 4 7 Story 5 Story 6 Story 7 Story 8 Story 9 Story 10 Backlog Story 11 Story 12 Story

10 Measuring the Transition Agile Development Waterfall Iterative Iterative and Incremental Parallel Acceptance Test Driven Cycle Time Year + Increase Throughput 2 weeks Detailed Inventory Whole Project Decrease Investment Increment Feedback Delays Most Defects caught in system test Decrease Operating Expense Most defects caught in the feature development Risks $1,200,000 Decrease Risk! $50,000 8

11 The Agile Framework Addresses Core Risks Intrinsic schedule flaw (estimates that are wrong and undoable from day one, often based on wishful thinking) A Detailed estimation is done at the beginning of each iteration Specification breakdown (failure to achieve stakeholder consensus on what to build) A Assignment of a product owner who owns the backlog of work Scope creep (additional requirements that inflate the initially accepted set) A Change is expected and welcome, at the beginning of each iteration Personnel loss A Self-organizing teams experience greater job satisfaction Productivity variation (difference between assumed and actual performance) A Demos of working code every iteration Core risks from Tom DeMarco and Tim Lister: Risk Management During Requirements IEEE Software 9

12 Relating traditional risk management activities to agile practices

13 Risk Management Planning The process of deciding how to approach and conduct risk management Traditional Planning meetings with managers and corporate representatives Resulting in a formal document outlining the risk management process Tell the team Agile Review of corporate risk requirements and discussions of need Little or no documentation on the process Merging corporate requirements into emergent team activities 11

14 Risk Identification Determining which risks might affect the project and documenting their characteristics Traditional Via checklists, doc reviews, info gathering, assumption analysis, diagramming In limited meetings Formally documented Agile Via info gathering, assumption analysis In every planning meeting with the whole team Informally documented 12

15 Risk Analysis Analysis and prioritization, determining which risks warrant response Traditional Qualitative and Quantitative Prioritization (Probability and Impact) Risks to respond to and risks to watch Agile Qualitative Prioritization (Probability and Impact) Risks to respond to and risks to watch 13

16 Risk Response Planning Developing options and actions to reduce threats and increase opportunities Traditional One or more people assigned to develop strategies: Avoid Mitigate Plan Contingency Transfer Accept Agile The team brainstorms strategies*: Avoid Mitigate Contain Evade *From Waltzing with Bears DeMarco & Lister 14

17 Risk Monitoring and Controlling Watching for new risks, tracking and validity of identified risks, tracking and reviewing risk responses Traditional Risk reassessment Risk audits Variance/trend analysis Technical performance measurement Reserve review Status meetings Agile Risk reassessment in planning meetings Reviews and Retrospectives Task Boards and Burndown Charts Daily Stand-up meetings 15

18 Risk Management Techniques for Agile Projects

19 Identifying Risks in Planning Meetings 17

20 Identification Daily Daily Stand-up Meeting Done since last meeting Plan for today Obstacles? 24 hours 18

21 Risk Analysis and Response Planning 19

22 Response Planning, Monitoring, Controlling 20

23 Response Planning, Monitoring, Controlling 21

24 Monitoring 22

25 Summary Risk management is owned by the team The project manager facilitates the process and makes the results visible Risks are identified in all planning meetings: release, iteration, and daily Risks are analyzed and addressed in iteration and release planning meetings the focus is on qualitative analysis, not quantitative Risks are monitored by the use of high visibility information radiators, daily stand-ups, and iteration reviews and retrospectives 23

26 The Art of the Possible People who don t take risks generally make about two big mistakes a year. People who do take risks generally make about two big mistakes a year. Peter Drucker 24

27 Thank You!

28 Additional Sources Websites: Books: Waltzing with Bears by Tom DeMarco and Tim Lister Agile Project Management with Scrum by Ken Schwaber Lean Software Development by Mary and Tom Poppendieck 26

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