PMINJ Chapter May 5 th Symposium Agile Project Management Is Agile Project Management an Oxymoron?
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1 PMINJ Chapter May 5 th Symposium 2014 Agile Project Management Is Agile Project Management an Oxymoron? Chuck Cobb, PMP, MBA, PSM, CSPO, ACP Breakthrough Solutions, Inc. (508) chuck@breakthroughsolns.com
2 AGILE PROJECT MANAGEMENT IS AGILE PROJECT MANAGEMENT AN OXYMORON? Chuck Cobb Breakthrough Solutions, Inc. May 5,
3 Why Is Agile Important? Agile Provides: 1. Adaptability - An Alternative Way for Companies to Manage Projects that Involve High Levels of Uncertainty 2. Time-to-Market - The Potential To Significantly Accelerate the Startup Phase of New Projects 3. Reduced Costs - Opportunities to Reduce the Costs and Overhead Associated With Projects 4. Customer Satisfaction - Produce Higher Value Solutions that are More Well-aligned with User Needs 5. Organizational Agility - Build Much Higher Levels of Collaboration, Trust, and Shared Responsibility Within the Organization Breakthrough Solutions, Inc. 3
4 Why Is Agile Important? (cont.) Agile Provides: 1. Adaptability - An Alternative Way for Companies to Manage Projects that Involve High Levels of Uncertainty 2. Time-to-Market - The Potential To Significantly Accelerate the Startup Phase of New Projects 3. Reduced Costs - Opportunities to Reduce the Costs and Overhead Associated With Projects 4. Customer Satisfaction - Produce Higher Value Solutions that are More Well-aligned with User Needs 5. Organizational Agility - Build Much Higher Levels of Collaboration, Trust, and Shared Responsibility Within the Organization Breakthrough Solutions, Inc. 4
5 Is Agile Project Management an Oxymoron? (cont.) Many Popular Stereotypes and Misconceptions About Project Management: Some of These Stereotypical Behaviors Are Real, and Are Based on the Environment that Project Managers Typically Operate In A Lot of Confusion Exists About the Impact of Agile on the Project Management Profession: What is the Role for a Project Manager in an Agile Project? Are Traditional Project Management Principles and Practices in Conflict with Agile Principles and Practices? How Does a Typical Project Manager Shape His or Her Career to Move in a More Agile Direction? Breakthrough Solutions, Inc. 5
6 PROJECT MANAGER STEREOTYPES Breakthrough Solutions, Inc. 6
7 Popular Project Management Stereotypes Project Managers: Are Very Command-and-Control Oriented Project Managers Are Expected to Deliver Results Are Also Rigid and Inflexible Project Managers Are Often Measured on Achieving Cost and Schedule Goals Only Know How to Manage by the Waterfall Methodology Many Project Managers Have Been Heavily Trained in a Waterfall-style Methodology Cannot Adapt to an Agile Environment Because of the Characteristics Above, Project Managers Cannot Adapt to Agile Breakthrough Solutions, Inc. 7
8 Popular Project Management Stereotypes Project Managers: Are Very Command-and-Control Oriented Project Managers Are Expected to Deliver Results Are Also Rigid and Inflexible Project Managers Are Often Measured on Achieving Cost and Schedule Goals Only Know How to Manage by the Waterfall Methodology Many Project Managers Have Been Heavily Trained in a Waterfall-style Methodology Cannot Adapt to an Agile Environment Because of the Characteristics Above, Project Managers Cannot Adapt to Agile Breakthrough Solutions, Inc. 8
9 Popular Project Management Stereotypes Project Managers: Are Very Command-and-Control Oriented Project Managers Are Expected to Deliver Results Are Also Rigid and Inflexible Project Managers Are Often Measured on Achieving Cost and Schedule Goals Only Know How to Manage by the Waterfall Methodology Many Project Managers Have Been Heavily Trained in a Waterfall-style Methodology Cannot Adapt to an Agile Environment Because of the Characteristics Above, Project Managers Cannot Adapt to Agile Some of these behaviors are a product of the environment that project managers operate in and the project managers are only doing what is expected of them Breakthrough Solutions, Inc. 9
10 Popular Agile Stereotypes (cont.) Agile is Completely Unplanned: There is No Point in Planning an Agile Project Because it is Only Going to Change Planning is Inconsistent With Agile Because It Would Restrict The Adaptivity That is Needed Agile is Completely Uncontrolled An Agile Project is Not Really Managed at All There is No Discipline To Agile, It is Just a Bunch of Cowboys Writing Code All of These Stereotypes and Misconceptions About Project Management and Agile Have Led to the Misconception that There is a Binary, All-or-Nothing Choice Between: A Totally Unplanned and Uncontrolled Approach With 0% Upfront Planning (e.g., Agile) and A Rigidly Planned and Controlled Approach With 100% Upfront Planning (e.g., Waterfall) The Truth is That There is a Range of Alternatives Between Those Extremes, and You Have to Fit the Right Approach to the Project Rather Than Force-Fitting a Project To One of Those Extremes Breakthrough Solutions, Inc. 10
11 WHAT S REALLY DIFFERENT ABOUT AGILE PROJECT MANAGEMENT? Breakthrough Solutions, Inc. 11
12 Agile Project Management Major Areas of Difference 1. Emphasis on Maximizing Value versus Control Many project managers have been measured on controlling the costs and schedules of projects and that s how they ve been measured in their organizations. 2. Emphasis on Empowerment and Self-Organizing Teams Project Managers are also noted for being results-oriented where the project manager is the one who is primarily held responsible for the success of the project. 3. Limited Emphasis on Documentation Many project managers are used to a very document-centric approach where critical project documents that follow prescribed standards and templates are considered essential Breakthrough Solutions, Inc. 12
13 Emphasis on Maximizing Value vs. Control Traditional Project Management Iron Triangle Scope Primary Emphasis is on Managing Scope to Control Costs and Schedule (Change is the Exception and Must be Controlled) Breakthrough Solutions, Inc. 13
14 Emphasis on Maximizing Value vs. Control (cont.) Primary Impact Traditional Project Agile Project Heavy Emphasis on Planning & Control Decisions Based Heavily on Managing Costs and Schedules Project Manager Has Primary Responsibility for the Success of the Project More Emphasis on Producing Value Decisions Based Heavily on Maximizing Business Value Product Owner Has Primary Responsibility for the Success of the Project Breakthrough Solutions, Inc. 14
15 Emphasis on Empowerment and Self-Organization Traditional Project Agile Project The Team is Works Under Direction The Project Manager Plays an Active Role in Leading the Project Team The Team is Empowered and Self-Organizing The Scrum Master Plays a Facilitation Role The Scrum Master is a Servant Leader Breakthrough Solutions, Inc. 15
16 Limited Emphasis on Documentation Primary Impact Traditional Project Agile Project Heavy Emphasis On Documentation Project Manager Has a Key Role in Developing and Managing Project Documentation Emphasis on Producing Results Quickly Less Project Documentation is Required Breakthrough Solutions, Inc. 16
17 Where Does that Leave the Project Manager? Traditional Project Agile Project Reduced Emphasis on Planning & Control More Emphasis on Maximizing Value Less Emphasis on Active Leadership More Emphasis on Empowerment & Selforganization Less Emphasis on Documentation More Emphasis on Producing Results Quickly Breakthrough Solutions, Inc. 17
18 TEAM-LEVEL AGILE PROJECT MANAGEMENT ROLE Putting in Place People, Process, and Tools for Projects to Enable and Empower Teams to be Successful Coaching Team Members, Scrum Master, and Product Owner on Project Management Breakthrough Solutions, Inc. 18
19 Team-level Role 1. Officially, In an Ideal World, There is No Role for a Project Manager at the Team Level in an Agile Project; However: Although There May Be No One With The Title Of Project Manager, Project Management Skills Are Still Needed In the Other Agile Roles: Scrum Master Has Responsibility for Team Leadership and Facilitation Product Owner Has Overall Responsibility for the Success of the Project and for Planning and Prioritizing Work to be Done Many Times Those Individuals Need Help in Filling Those Roles 2. In Any Case, The Agile Project Management Orientation is Very Different in a Number of Ways: Emphasis on Maximizing Value versus Control Emphasis on Empowerment and Self-Organizing Teams Limited Emphasis on Documentation Breakthrough Solutions, Inc. 19
20 A Common Agile-Scrum Team Scenario Project Manager/Scrum Master Supports the Product Owner Project Manager and Scrum Master Roles Might be Combined Balanced Emphasis on Documentation/Tools and Results Breakthrough Solutions, Inc. 20
21 Team Level - What s Needed to Perform this Role 1. Ability to Blend the Right Level of Traditional Project Management Skills with Agile Principles and Practices to Fit the Situation Knowledge of Both Agile and Traditional Project Management Methodologies and Practices Deep Knowledge of the Principles Behind Them 2. Adaptive Leadership and Emphasis on Leadership Over Management 3. Effective Use of Tools and Communications to Minimize the Need for Traditional Project Management Documentation Shift in Focus: Focus on Managing People and Tasks Focus on Putting in Place People, Process, and Tools And Leadership Rather Than Management Breakthrough Solutions, Inc. 21
22 ENTERPRISE-LEVEL AGILE PROJECT/PROGRAM MANAGEMENT ROLE Providing Project/Program Management of Large, Complex Initiatives Requiring Additional Planning and Management Above the Team Level Planning and Leading Enterprise-level Agile Transformations Designed to Align with the Company s Business Objectives Breakthrough Solutions, Inc. 22
23 Example Case Study Harvard Pilgrim Healthcare (Provided by Michael Hurst) Overview: Very Large, Complex Effort with Approximately 100 Teams A Large Part of the Development Effort Was Outsourced Hybrid Agile/Plan-driven Approach Key Success Factors: Immediacy and Persistency Leadership Support Well-trained People Cultural Change Integrated, Hybrid Methodology Results: Very Successful Hybrid Approach and Portfolio Management Agile Contracting Approach Ranked #1 for Nine Years in Member Satisfaction and Quality of Care Despite Massive Changes Tools Collaborative Approach with Other Companies Early Planning Execution and Bringing it Home Breakthrough Solutions, Inc. 23
24 Enterprise-level Role What s Needed to Perform this Role 1. Shift in Thinking and Skills Similar to the Team-level Role 2. Higher-level Overall Program Management Role 3. Planning and Leading Enterprise-level Agile Transformations 4. Integrating an Agile Development Approach With Higherlevel Management Frameworks Will be Discussed in More Detail Later Regarding Scaling Agile to an Enterprise Level Breakthrough Solutions, Inc. 24
25 HYBRID AGILE PROJECT ROLE Blending Traditional Agile and PM Principles and Practices in the Right Proportions to Develop a Hybrid Management Approach When Required Taking a more iterative and adaptive approach to traditional project management projects Breakthrough Solutions, Inc. 25
26 Hybrid Agile Project Management Approach Control Extreme Waterfall Agility Pure Forms Of Agile (e.g. Scrum) TRADITIONAL APPROACH EMPHASIS ON PLANNING AND CONTROL HYBRID APPROACHES FOCUS ON BUSINESS OUTCOMES ABILITY TO BLEND AND TAILOR AGILE AND TRADITIONAL PROJECT MANAGEMENT PRINCIPLES AND PRACTICES TO FIT THE BUSINESS PURE AGILE APPROACH (E.G. SCRUM) HEAVY FOCUS ON CUSTOMER VALUE & PARTICIPATION EMPHASIS ON TEAM FACILITATION VERY DYNAMIC AND ADAPTIVE APPROACH Breakthrough Solutions, Inc. 26
27 Situations Where a Hybrid Agile Approach Might Be Needed 1. Contracts, Especially Fixed-Price Government Contracts Need to Manage Overall Cost and Schedule Against Contracts, And At The Same Time, Provide Some Level of Flexibility 2. Regulatory Requirements Need to Show Traceability to Requirements, And Sufficient Control Over Testing and Release Processes 3. Larger, More Complex Enterprise-level Projects Significant Levels of Coordination Might Be Required Outside of the Development Effort For Training, Support, and Operational Cutover Will Be Discussed Separately Breakthrough Solutions, Inc. 27
28 Hybrid Process Example: Managed Agile Development Process Macro Layer: Project Charter Project Schedule Limited Form of Change Management On-going Project Management Traditional Project Management Layer Micro Layer: Development Layer Based on Scrum SOURCE: Breakthrough Solutions, Inc. 28
29 Using Agile Concepts in Non-Agile Projects Agile and Waterfall Are Not Binary, Black-and-White Alternatives There Are Many Ways to Use Agile Concepts in a Non-Agile Project: Developing a More Collaborative Approach With the Business Users Putting More Emphasis on Maximizing Business Value Taking a More Iterative Approach Reducing Unnecessary Documentation and Overhead Breakthrough Solutions, Inc. 29
30 AGILE CONTRACTS ROLE Breakthrough Solutions, Inc. 30
31 Jeff Sutherland Agile Contracting Approach: Money For Nothing Change For Free Customer Participation in Scrum Team - The Customer is expected to be active in the project. The role of the Customer includes the following: 1. Prioritize features by business value and have them implemented in order of maximum value 2. Mutually agreed estimates for all work items. The official representatives of both parties need to agree. This needs to be noted in a signed addendum to the contract for each change. 3. Participate in each Sprint planning meeting by discussing the selected features with Company team, including answering questions to provide clarification to the team. 4. Participate in writing the conditions of satisfaction for each feature, so the team and client have a shared definition of when a feature is done. These conditions should be completed as part of a user story before any code is written. 5. Participate in each Sprint review meeting, and provide timely feedback both for both work-in-progress and completed work. Agile Contracts: Money for Nothing and Your Change for Free, Breakthrough Solutions, Inc. 31
32 Jeff Sutherland Agile Contracting Approach: Money For Nothing Change For Free (cont.) Clause: Change For Free - If the Customer maintains Participation in Scrum Team during the entire project, Customer shall be able to make changes to the Scope without incurring any additional cost if total Scope of contracted work is not changed. New features may be added for free at Sprint boundaries if items of equal scope are removed from the contract. Clause: Early Termination (Money for Nothing) - The Customer may terminate the contract at the end of any Sprint. The standard metric for termination is when the Customer perceives the cost of continuing the project is higher than the additional value received. The Customer will pay Company 20% of the remaining contract value to exercise early termination. Agile Contracts: Money for Nothing and Your Change for Free, Breakthrough Solutions, Inc. 32
33 Successful Case Studies General Dynamics, UK (Provided by Nigel Edwards) Overview: Large, Fixed-Price Government Contract Used Hybrid Management Process Based on DSDM Prioritized Requirements to Manage Scope Key Success Factors: Relationships, Professionalism, and Transparency Coaching and Mentoring Teamwork Conflict Management Risk Management Results: Collaborative Approach to Contract Management Was a Big Win More Efficient Project Management Approach Very Successful Project and Highly Satisfied Customer Breakthrough Solutions, Inc. 33
34 General Dynamics, UK - Why it Was Successful Collaborative Partnership Between the Government Agency and the Defense Contractor Used the MoSCoW Method for Prioritizing Requirements: Must Have s Should Have s Could Have s Would Have s In order to manage the overall costs and schedules of the project, when there was a change in any of the requirements, something else of equivalent effort and lower value had to be given up Breakthrough Solutions, Inc. 34
35 Overall Summary In Order to Better Understand Agile Project Management, We Need to Get Past a Lot of Stereotypes and Misconceptions That Exist About Both Agile and Traditional Project Management There is a Role for an Agile Project Manager; However, it Will Require a Shift in Thinking for Many Project Managers: Emphasis on Maximizing Value versus Control Emphasis on Empowerment and Self-Organizing Teams Limited Emphasis on Documentation These Changes May Not Be Easy for Many Project Managers and Will Also Require Changes in the Environments That They Operate In and The Measurements and Expectations of Project Managers Breakthrough Solutions, Inc. 35
36 Overall Summary (cont.) There Are Several Potential Roles that a Project Manager Might Play in an Agile Project: Team Level Putting in Place People, Process, and Tools for Projects to Enable and Empower Teams to be Successful Coaching Team Members, Scrum Master, and Product Owner on Project Management Enterprise Level Providing Project/Program Management of Large, Complex Initiatives Requiring Additional Planning and Management Above the Team Level Planning and Leading Enterprise-level Agile Transformations Designed to Align with the Company s Business Objectives Hybrid Agile Projects and Agile Contracts Blending Traditional Agile and PM Principles and Practices in the Right Proportions to Develop a Hybrid Management Approach When Required Taking a more iterative and adaptive approach to traditional project management projects Managing Agile Contracts Breakthrough Solutions, Inc. 36
37 THANK YOU! Chuck Cobb Breakthrough Solutions, Inc. (508) Kindle: Paperback: Breakthrough Solutions, Inc. 37
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