Lean & Agile Project Management

Lean & Agile Project Management
for Large Programs & Projects Dr. David F. Rico, PMP, CSM Website: LinkedIn: Facebook:

Author Background DoD contractor with 27+ years of IT experience
B.S. Comp. Sci., M.S. Soft. Eng., & D.M. Info. Sys. Large gov’t projects in U.S., Far/Mid-East, & Europe Published six books & numerous journal articles Adjunct at George Washington, UMUC, & Argosy Agile Program Management & Lean Development Specializes in metrics, models, & cost engineering Six Sigma, CMMI, ISO 9001, DoDAF, & DoD 5000

 Need for Agile Project Mgt.
Agenda  Need for Agile Project Mgt. Intro to Agile Project Mgt. Types of Agile Project Mgt. Phases of Agile Project Mgt. Scaling Agile Project Mgt. Scaling Agile to Lean/Kanban Metrics for Agile Project Mgt. Cases of Agile Project Mgt. Summary of Agile Project Mgt.

Information Age U.S. is no longer an industrial-age nation
U.S. part of a group of post-industrial countries U.S. consists of information-age knowledge workers Bell, D. (1999). The coming of post industrial society. New York, NY: Basic Books. 4

Global Competition Globalization has intensified market competition
High-tech market dominated by international firms The trade deficit with the Far East is growing bigger Khanna, P. (2009). The second world: How emerging powers are redefining global competition in the twenty-first century. New York, NY: Random House. 5

Technological Change 21st century systems are technology-intensive
Technology is evolving at an exponential speed Technology is obsolete before project completion Kurzweil, R. (2005). The singularity is near: When humans transcend biology. New York, NY: Penguin Group. 6

Today’s Environment Highly-unstable global and domestic markets
Customers are demanding and difficult to please Project plans cannot cope with this level of volatility Market Technology Organization Project People Result Fierce rivalry Economic driver Downsizing Vague requirements Inability to cope Poor performance Global competition Market driver Restructuring Volatile specs. High stress Cost overruns Restructuring Dependent Bankruptcy Shorter schedules Over-allocated Schedule overruns Market fluctuation Constant change Mergers & Acq. Smaller budgets Over-worked Poor quality Currency instability Exponential change Lost revenues More work Work-life imbalance Angry customers Global recession Disruptive Budget reductions Tough customers Beleaguered Market share loss Market dependency Growing complexity Reorganizations Politically-sensitive Individualistic Business loss Imbalanced trade Software-intensive Interdependencies Large scale and size Poor people skills Revenue loss Political instability Smaller Bloated processes Globally-distributed Bad communication Unprofitability Regional warfare Ubiquitous Legacy systems Very high-risks No commitment Poor morale Emerging threats Poor usability Need technology Uncertainty Lack of ownership High attrition Cyber attacks Nano technology Project dependent No business value Poor customer skill Bad reputation Augustine, S. (2005). Managing agile projects. Upper Saddle River, NJ: Pearson Education. Chin, G. (2004). Agile project management: How to succeed in the face of changing project requirements. Broadway, NY: Amacom. DeCarlo, D. (2004). Extreme project management: Using leadership, principles, and tools to deliver value in the face of volatility. San Francisco, CA: Jossey-Bass. Highsmith, J. A. (2010). Agile project management: Creating innovative products. Boston, MA: Pearson Education.

Need for a New Model Need for a new model of project management
Cope with high-level of uncertainty and ambiguity With just the right balance of flexibility and discipline R&D Oriented People Centered Adaptive Customer Friendly Fast & Efficient Disciplined New discoveries Highly-talented people Global threats Customer interaction New technology Lightweight strategy Complex problems Cross-functional teams Market threats A lot of communication Quick decision-making Lightweight plans One-off systems Small team size New customer needs Customer demos Iterative delivery cycles Lightweight lifecycles Vague requirements A lot of communication Changing scope Customer feedback Frequent deliveries Security engineering Incomplete information Interpersonal trust Changing technology Business value focus Fast delivery schedules Light requirements High uncertainty Rich collaboration Changing regulations Customer satisfaction Short timelines Light architecture Experimentation Empowered decisions Continuous change Customer responsive Fast time-to-market Lightweight design Simulations Sustainable pace Flexible culture Customer sensitivity First-mover capability Code reviews Prototyping Daily interaction Flexible attitudes Customer relationships Minimal process costs Rigorous V&V Innovation oriented Rich communications Flexible policies Customer contact Low work-in-process - Rigorous CM New products Face-to-face interaction Flexible processes Customer involvement Flexible processes Rigorous QA Creative solutions Cohesiveness Flexible technologies Customer driven Market responsiveness Project reviews Augustine, S. (2005). Managing agile projects. Upper Saddle River, NJ: Pearson Education. Chin, G. (2004). Agile project management: How to succeed in the face of changing project requirements. Broadway, NY: Amacom. DeCarlo, D. (2004). Extreme project management: Using leadership, principles, and tools to deliver value in the face of volatility. San Francisco, CA: Jossey-Bass. Highsmith, J. A. (2010). Agile project management: Creating innovative products. Boston, MA: Pearson Education.

 Intro to Agile Project Mgt.
Agenda Need for Agile Project Mgt.  Intro to Agile Project Mgt. Types of Agile Project Mgt. Phases of Agile Project Mgt. Scaling Agile Project Mgt. Scaling Agile to Lean/Kanban Metrics for Agile Project Mgt. Cases of Agile Project Mgt. Summary of Agile Project Mgt.

What is Agile Project Mgt.?
A-P-M (ā-pē-ĕm): Light, flexible, collaborative, and adaptive; Market-centric project management model: Sound, yet flexible process to manage projects under uncertainty, urgency, and a need for unique expertise Values, principles, and practices to help project teams in coming to grips with a challenging environment Managing the flow of human thoughts, emotions, and interactions in a way that produces business value Rapidly and reliably creating value by engaging customers, continuously learning, and adapting Lightweight, yet disciplined project management model for building high-quality technology-intensive systems Augustine, S. (2005). Managing agile projects. Upper Saddle River, NJ: Pearson Education. Chin, G. (2004). Agile project management: How to succeed in the face of changing project requirements. Broadway, NY: Amacom. DeCarlo, D. (2004). Extreme project management: Using leadership, principles, and tools to deliver value in the face of volatility. San Francisco, CA: Jossey-Bass. Highsmith, J. A. (2010). Agile project management: Creating innovative products. Boston, MA: Pearson Education.

F E F E F E Agile World View
“Agility” has many dimensions other than software Ranges from organizational to technological agility The focus of this brief is project management agility Agile Leadership F E Agile Acquisition Agile Organizations Agile Strategic Planning F Agile Capability Analysis E Agile Program Management Agile Project Management Agile Systems Development F E Agile Processes & Practices Agile Tools Agile Information Systems Agile Technology

Values of Agile Project Mgt.
People-centric way to create innovative solutions Market-centric model to maximize business value Alternative to large document-based methodologies Agile Manifesto. (2001). Manifesto for agile software development. Retrieved September 3, 2008, from

Essence of Agile Project Mgt.
High degree of customer & developer interaction Highly-skilled teams producing frequent iterations Right-sized, just-enough, and just-in-time process Business Value ROI, NPV, ROA Trust, Loyalty, Relationships Leadership Empowerment, trust Coaching, mentoring Market responsive Business agility Customer sensitive Early market feedback Experimentation Sense and response Highsmith, J. A. (2002). Agile software development ecosystems. Boston, MA: Addison-Wesley.

How do Lean & Agile Intersect?
Lean thinking provides the what (requirements) Agile thinking provides the how (implementation) Agile proj. mgt. is lean, light, adaptable, and flexible Womack, J. P., & Jones, D. T. (1996). Lean thinking: Banish waste and create wealth in your corporation. New York, NY: Free Press. Reinertsen, D. G. (2009). The principles of product development flow: Second generation lean product development. New York, NY: Celeritas. Reagan, R. B., & Rico, D. F. (2010). Lean and agile acquisition and systems engineering: A paradigm whose time has come. DoD AT&L Magazine, 39(6). 14

 Types of Agile Project Mgt.
Agenda Need for Agile Project Mgt. Intro to Agile Project Mgt.  Types of Agile Project Mgt. Phases of Agile Project Mgt. Scaling Agile Project Mgt. Scaling Agile to Lean/Kanban Metrics for Agile Project Mgt. Cases of Agile Project Mgt. Summary of Agile Project Mgt.

Scrum Project Management
Created by Jeff Sutherland at Easel in 1993 Product backlog comprised of customer needs Barely-sufficient project management framework Initial Planning Sprint Cycle Discovery Session Agile Training Project Discovery Process Discovery Team Discovery Initial Backlog Release Planning Business Case Desired Backlog Hi - Level Estimates Prioritize Backlog Finalize Backlog Product Backlog Prioritized Requirements Sprint Planning Set Sprint Capacity Identify Tasks Estimate Tasks Sprint Review Present Backlog Items Record Feedback Adjust Backlog Daily Scrum Completed Backlog Items Planned Backlog Items Impediments to Progress Sprint Backlog List of Technical Tasks Assigned to a Sprint Potentially Shippable Product Working Operational Software Sprint Select Tasks and Create Tests Create Simple Designs Code and Test Software Units Perform Integration Testing Maintain Daily Burndown Chart Update Sprint Backlog Sprint Retrospective Schwaber, K. (2004). Agile project management with scrum. Redmond, WA: Microsoft Press.

XP Project Management Created by Kent Beck at Chrysler in 1998
Release plan is comprised of customer needs Lightweight, rigorous near-term planning element Release Planning Exploration Phase Iteration Planning Build a Team Write User Stories Estimate User Stories Split User Stories Spike User Stories Write User Tests Commitment Phase Sort by Value Sort by Risk Set Velocity Choose a Scope Set Iteration Length Develop Release Plan Steering Phase Select Iteration Adjust Velocity Insert New Stories New Release Plan Select Tools Adjust Teams Analyze Release Plan Identify Iteration Goal Select User Stories Read User Stories Develop Tasks Split Tasks Accept Tasks Set Individual Velocity Estimate Tasks Analyze Schedules Set Load Factors Balance Tasks Select Partner Write Unit Tests Design and Code Unit/Integration Test User Acceptance Test Record Progress Beck, K., & Fowler, M. (2001). Planning extreme programming. Upper Saddle River, NJ: Addison-Wesley.

Flexible Project Management
Created by Doug DeCarlo at Cutter in 2004 Focus is on collaboration, scoping, and speed Thinner traditional project management approach Visionate Speculate Innovate Re-Evaluate Disseminate Sponsor’s Vision Planning Meeting Learning by Doing Business Questions Product Launch Interview Sponsor Collective Vision SCORE Model Who Needs It? Acceptance Testing Describe Objectives Size Deliverables Architecture What Will It Take? Documentation Project Prospectus Map Schedule Development Can We Get It? Support Plan Business Questions Choose Life Cycle Construction Is It Worth It? Maintenance Plan Requirements ID’d Testing Deploy Solution Development Tools Time Boxing Collective Vision Project Review Customer Service Risk Planning Trial and Error Scope Meeting Check Performance Collaboration Future Scenarios Check Schedule Stabilization Post Meeting Project Skinny Check Costs Training/Education Project Boundaries PM Infrastructure Generate Results Check Benefits Utilization Project Vision Financial Goals Visibility Check Project ROI Performance Win Conditions Benefit Plan Early Value Go / No - Go Decision Feedback Benefit Map Partner Agreements Fast Failures Corrective Action Wow Factor Project Changes Uncertainty Profile Business Questions Business Questions Lessons Learned Re-Direct As-Needed Go/No-Go Decision Modify Questions Update Vision Collective Vision Team Rewards Update Stakeholders Select Core Team Update Prospectus Update Prospectus Re-examine Team Track Benefits DeCarlo, D. (2004). Extreme project management: Using leadership, principles, and tools to deliver value in the face of volatility. San Francisco, CA: Jossey-Bass.

Adaptive Project Management
Created by Sanjiv Augustine at CC Pace in 2005 Builds agile cultures, mind-sets, and environments Leadership model for managing agile project teams Foster Alignment and Cooperation Encourage Emergence and Self Organization Learning/Adaptation Organic Teams Guiding Vision Simple Rules Open Information Light Touch Adaptive Leadership Leadership Leadership Leadership Leadership Leadership Leadership Craftsmanship Team Vision Culture of Change Conduct Standups Adapt Style Embodied Presence Collaboration Team Alignment Value Focus Promote Feedback Roving Leadership Embodied Learning Guiding Coalition Bold Future Build Trust Go With Flow Community Shared Expectations Facilitate Action Work Life Quality Build on Strengths Gain Commitments Management Management Management Management Management Management Identify Community Business Outcomes Assess Status Quo Team Collocation Decentralize Control Daily Feedback Design Structures Delineate Scope Customize Method Get Onsite Customer Pull vs . Push Monitor/Adapt Rules Get Team Players Estimate Effort Release Plan Practice Pairing Manage Flow Monitor Practices Adaptive Enterprise Design Vision Box Iteration Plans Information Radiator Use Action Sprints Retrospectives Elevator Statement Facilitate Design Map Value Stream Scenario Planning Conduct Testing Manage Releases Augustine, S. (2005). Managing agile projects. Upper Saddle River, NJ: Pearson Education.

Agile Project Management
Created by Jim Highsmith at Cutter in 2003 Focus on strategic plans and capability analysis Most holistic agile project management framework Innovation Lifecycle Envision Speculate Explore Launch Close Product Vision Gather Requirements Iteration Management Final Review Clean Up Open Items Product Architecture Product Backlog Technical Practices Final Acceptance Support Material Project Objectives Release Planning Team Development Final QA Final Retrospective Project Community Risk Planning Team Decisions Final Documentation Final Reports Delivery Approach Cost Estimation Collaboration Final Deployment Project Celebration Iterative Delivery Technical Planning Development , Test , and Evaluation Operational Testing Adapt Story Analysis Development Pairing Integration Testing Focus Groups Task Development Unit Test Development System Testing Technical Reviews Task Estimation Simple Designs Operational Testing Team Evaluations Task Splitting Coding and Refactoring Usability Testing Project Reporting Task Planning Unit and Component Testing Acceptance Testing Adaptive Action Continuous Story Deployment Standups, Architecture, Design, Build, Integration, Documentation, Change, Migration, and Integration Highsmith, J. A. (2010). Agile project management: Creating innovative products. Boston, MA: Pearson Education.

 Phases of Agile Project Mgt.
Agenda Need for Agile Project Mgt. Intro to Agile Project Mgt. Types of Agile Project Mgt.  Phases of Agile Project Mgt. Scaling Agile Project Mgt. Scaling Agile to Lean/Kanban Metrics for Agile Project Mgt. Cases of Agile Project Mgt. Summary of Agile Project Mgt.

Envision Phase Determine product vision and project objectives
Identifies project community and project team The major output is a “Product Vision Box” Envision Phase Delivery Approach Self-Organization Strategy Collaboration Strategy Communication Strategy Process Framework Tailoring Practice Selection and Tailoring Project Objectives Project Data Sheet Key Business Objectives Tradeoff Matrix Exploration Factor Requirements Variability Product Architecture Product Skeleton Architecture Hardware Feature Breakdown Software Feature Breakdown Organizational Structure Guiding Principles Project Community Get the Right People Participant Identification Types of Stakeholders List of Stakeholders Customer-Developer Interaction Product Vision Product Vision Box Elevator Test Statement Product Roadmap Product Features Product Vision Document Highsmith, J. A. (2010). Agile project management: Creating innovative products. Boston, MA: Pearson Education.

Speculate Phase Determine organizational capability/mission needs
Identifies feature-sets and system requirements The major output is a “System Release Plan” Speculate Phase Release Planning Project Startup Activities Assign Stories to Iterations First Feasible Deployment Estimate Feature Velocity Determine Product Scope Risk Planning Risk Identification Risk Analysis Risk Responses Risk Monitoring Risk Control Product Backlog Product Features List Feature Cards Performance Requirements Prioritize Features Feature Breakdown Structure Cost Estimation Establish Estimate Scope Establish Technical Baseline Collect Project Data Size Project Information Prepare Baseline Estimates Gather Requirements Analyze Feasibility Studies Evaluate Marketing Reports Gather Stakeholder Suggestions Examine Competitive Intelligence Collaborate with Customers Highsmith, J. A. (2010). Agile project management: Creating innovative products. Boston, MA: Pearson Education.

Explore Phase Determine technical iteration objectives/approaches
Identifies technical tasks and technical practices The major output is an “Operational Element” Explore Phase Team Development Focus Team Molding Group into Team Develop Individual Capabilities Coach Customers Orchestrate Team Rhythm Team Decisions Decision Framing Decision Making Decision Retrospection Leadership and Decision Making Set and Delay Decision Making Technical Practices Reduce Technical Debt Simple Design Continuous Integration Ruthless Automated Testing Opportunistic Refactoring Collaboration Pair Programming Daily Standup Meetings Daily Product Team Interaction Stakeholder Coordination Customer Interactions Iteration Management Iteration Planning Estimate Task Size Iteration Length Workload Management Monitoring Iteration Progress Highsmith, J. A. (2010). Agile project management: Creating innovative products. Boston, MA: Pearson Education.

Adapt Phase Determine the effectiveness of operational elements
Identifies customer feedback and corrective actions The major output is a “Process Improvement Plan” Adapt Phase Team Evaluations Communications Quality Team Cohesiveness Interpersonal Trust Individual Talent and Effort Team Performance/Effectiveness Project Reporting Scope and Quality Status Cost and Schedule Status Risk and Value Status Customer Satisfaction Status Team and Agility Status Technical Reviews Desk Checks/Individual Reviews Structured Walkthroughs Formal Software Inspections Quality Assurance Audits Configuration Management Audits Adaptive Action Release Plan Adaptations Iteration Plan Adaptations Feature Set Adaptations User Story Adaptations Task Plan Adaptations Customer Focus Groups Requirements Reviews Preliminary Design Reviews Critical Design Reviews Product Demonstration Reviews Acceptance Testing Reviews Highsmith, J. A. (2010). Agile project management: Creating innovative products. Boston, MA: Pearson Education.

Close Phase Determine project outcome and effectiveness
Identifies strengths, weaknesses, and rewards The major output is a “Lessons-Learned Report” Close Phase Support Material Finalize Documentation Finalize Production Material Finalize Manufacturing Material Finalize Customer Documentation Finalize Maintenance Information Final Reports End-of-Project Reports Administrative Reports Release Notes Financial Reports Facilities Reports Final Retrospective Process Performance Assessment Internal Product Assessment External Product Assessment Team Performance Assessment Project Performance Assessment Project Celebration Individual Rewards Group Rewards Partner Rewards Managerial Rewards Product Rewards Clean Up Open Items Close Open Action Items Close Open Change Requests Close Open Problem Reports Close Open Defect Reports Close Open Project Issues Highsmith, J. A. (2010). Agile project management: Creating innovative products. Boston, MA: Pearson Education.

 Scaling Agile Project Mgt.
Agenda Need for Agile Project Mgt. Intro to Agile Project Mgt. Types of Agile Project Mgt. Phases of Agile Project Mgt.  Scaling Agile Project Mgt. Scaling Agile to Lean/Kanban Metrics for Agile Project Mgt. Cases of Agile Project Mgt. Summary of Agile Project Mgt.

Multi-Level Teams Enables projects to plan for the future and present
Decomposes capabilities into implementable pieces Unclogs the drainpipes to let the execution flow freely Multi-Level Teams Product Management Team Product Management Team Chief Product Manager Chief Architect Product Development Manager Release Management Team members (1-2 per release team) Release Management Team Release Management Team Product Manager Project Manager Chief Architect Feature team members (1-2 per feature team) Feature Team Feature Teams Product Specialist (and owner) Iteration Manager Technical and product Members Development team members (1-2 per development team) Highsmith, J. A. (2010). Agile project management: Creating innovative products. Boston, MA: Pearson Education.

Multi-Level Planning Enables multiple level enterprise plans to co-exist Allows stakeholders to build viewpoint-specific plans Ensures capabilities are delivered at regular intervals Multi-Level Planning Product Roadmap Product Roadmap Enterprise architecture needs Capability focused Vision, objectives, and backlog 18 to 36 weeks Release Plan Release Plan Subsystem architecture Feature set focused Strategy, objectives, and backlog 6 to 12 weeks Iteration Plan Iteration Plan Component-level architecture User story focused Implementation plan, objectives, and backlog 2 to 4 weeks Highsmith, J. A. (2010). Agile project management: Creating innovative products. Boston, MA: Pearson Education.

Multi-Level Backlog Enables multiple levels of abstraction to co-exist
Allows customers and developers to communicate Makes optimum use of people’s time and resources Multi-Level Backlog Capabilities Capability Mission goal or objective level Capability Capability Capability High-level business or product function 1 2 3 Also called an Epic, i.e., multiple feature sets Comprises 18 - 90 days worth of work Feature Sets Feature Set Cross-functional mission threads Feature Feature Feature Related user stories that are grouped together 1 2 3 Also called a Theme, i.e., implemented as an entity Comprises 6 to 30 days worth of work User Stories User Story Functional, system-level requirements Story 1 Story 4 Story 7 Simple requirement written by customer or user Story 2 Story 5 Story 8 A small unit of functionality having business value Story 3 Story 6 Story 9 Comprises 2 to 10 days worth of work Highsmith, J. A. (2010). Agile project management: Creating innovative products. Boston, MA: Pearson Education.

Multi-Level Coordination
Enables lean and agile methods to scale-up Allows enterprises to create large-scale programs Unleashes optimum productivity and overall control Multi-Level Coordination Capability Team Feature Set Team Feature Set Team Feature Set Team Feature Team Feature Team Feature Team Highsmith, J. A. (2010). Agile project management: Creating innovative products. Boston, MA: Pearson Education.

Multi-Level Governance
Enables enterprises to achieve functional needs Allows programs to coordinate functional activities Ensures optimal technical performance is achieved Multi-Level Governance Governing Team R T S Functional Team Functional Team Functional Team R R R T T T S S S R R R T T T S S S R R R T T T S S S Feature Team Feature Team Feature Team R A D R A D R A D R A D R A D R A D R A D R A D R A D I T C I T C I T C I T C I T C I T C I T C I T C I T C Q M S Q M S Q M S Q M S Q M S Q M S Q M S Q M S Q M S R A D R A D R A D R A D R A D R A D R A D R A D R A D I T C I T C I T C I T C I T C I T C I T C I T C I T C Q M S Q M S Q M S Q M S Q M S Q M S Q M S Q M S Q M S R A D R A D R A D R A D R A D R A D R A D R A D R A D I T C I T C I T C I T C I T C I T C I T C I T C I T C Q M S Q M S Q M S Q M S Q M S Q M S Q M S Q M S Q M S Highsmith, J. A. (2010). Agile project management: Creating innovative products. Boston, MA: Pearson Education.

 Scaling Agile to Lean/Kanban
Agenda Need for Agile Project Mgt. Intro to Agile Project Mgt. Types of Agile Project Mgt. Phases of Agile Project Mgt. Scaling Agile Project Mgt.  Scaling Agile to Lean/Kanban Metrics for Agile Project Mgt. Cases of Agile Project Mgt. Summary of Agile Project Mgt. 33

What is Kanban? Kan-ban ('kæn-bæn): Signboard, billboard, signal cards; Lean, just-in-time system of production: A lean and just-in-time manufacturing process for regulating the flow of production based on demand A pull-system philosophy of customized production vs. a push system of mass-market manufacturing A set of principles for creating a lean, efficient, and waste-free product flow by limiting work-in-process Use of simple organizational policy changes resulting in order-of-magnitude performance improvements Results in high customer satisfaction, stakeholder trust, quality, productivity, efficiency, and morale 34

Kanban Goals Kanban seeks initially to change as little as possible
Change without resistance is the first Kanban goal Focus on improving quality, lead time and morale Goal 1 Optimize existing processes (rather than change them) Goal 2 Deliver high product quality (to build stakeholder trust) Goal 3 Reduce long lead times (and stabilize them) Goal 4 Achieve sustainable pace (work-life balance) Goal 5 Provide process slack (for process improvement) Goal 6 Simplify workload prioritization (of customer needs) Goal 7 Provide transparency (into design and operations) Goal 8 Strive for process maturity (to improve performance) Anderson, D. J. (2010). Kanban: Successful evolutionary change for your technology business. Sequim, WA: Blue Hole Press. 35

Kanban Recipe for Success
Based on principles for product development flow Uses operations and mathematical queue theory Pragmatic operating principles for development Focus on Quality Reduce WIP Deliver Often Balance Demand Prioritize Attack Variability Walkthroughs Process flowcharting Short releases Regulate inputs Prioritize inputs Work item size Inspections Workflow analysis Short increments Identify bottlenecks Business focus - Work item type mix Technical reviews Kanban boards Short iterations Create slack Business value focus Service class mix Peer reviews Limit work tasks Small releases Limit work-in-process Influence prioritization Irregular flow Pair programming Limit queues Frequent releases Create pull system Stabilize process Rework Test driven design Limit buffers Small batch sizes Focus on precision Build stakeholder trust Ambiguous reqmnts. Continuous integration Limit backlogs Customer collaboration Focus on quality Perform risk analysis Expedited requests Design patterns Simple prioritization Developer collaboration Take pride in work Analyze demand Environment avail. Refactoring Adequate resources Ample communication Improve morale Evaluate size Market fluctuations Design simplicity Process automation Frequent builds Learn new skills Evaluate complexity Coordination Usability engineering Policy statements Deploy often Obtain training Market forecasting Technological change Formal methods Simplify process Automatic updates Continuously improve Technology analysis Skill/experience mix Anderson, D. J. (2010). Kanban: Successful evolutionary change for your technology business. Sequim, WA: Blue Hole Press. 36

Value Stream Mapping Start by flow-charting the as-is product workflow
Add buffers and queues one feels are necessary Add WIP limits to buffers, queues, and activity Anderson, D. J. (2010). Kanban: Successful evolutionary change for your technology business. Sequim, WA: Blue Hole Press. 37

Work-in-Process High work-in-process leads to longest lead times
Low work-in-process greatly reduces lead times Results in better customer trust and satisfaction Anderson, D. J. (2010). Kanban: Successful evolutionary change for your technology business. Sequim, WA: Blue Hole Press. 38

 Metrics for Agile Project Mgt.
Agenda Need for Agile Project Mgt. Intro to Agile Project Mgt. Types of Agile Project Mgt. Phases of Agile Project Mgt. Scaling Agile Project Mgt. Scaling Agile to Lean/Kanban  Metrics for Agile Project Mgt. Cases of Agile Project Mgt. Summary of Agile Project Mgt.

Basic Agile Metrics Agile methods are based on traditional measures
Size, effort, and velocity metrics are most common Top-notch shops use complexity and testing metrics Type Example Size Story, Story Point, Task, Function Point, LOC, etc. Effort Ideal or Actual Hours, Days, Weeks, Months, Years, etc. Velocity Story, Story Points, Function Points, or LOC per Iteration/Sprint Complexity McCabe, Halstead, Object-Oriented, Relational Database, etc. Quality Defect Density, Defect Removal Efficiency, Rayleigh, etc. Testing Tests Passed/Failed/Broken, Running Tested Features, etc. Reliability Mean Time to Failure, Mean Time between Failure, etc. Rico, D. F., Sayani, H. H., & Sone, S. (2009). The business value of agile software methods: Maximizing ROI with just-in-time processes and documentation. Ft. Lauderdale, FL: J. Ross Publishing.

Burndown/Burnup Metrics
Time expended is used for project tracking Tracked on a per-iteration or per-sprint basis Often described as a basic earned-value metric Type Example Ideal Days How many days something takes without interruptions Actual Days How many days something takes with interruptions Ideal Hours How many hours something takes without interruptions Actual Hours How many hours something takes with interruptions User Stories How many customer requirements have been satisfied Story Points How many units of software size have been satisfied Technical Tasks How many technical tasks have been completed Cohn, M. (2006). Agile estimating and planning. Upper Saddle River, NJ: Pearson Education.

Agile Cost Models Development costs based on LOC  productivity rate
Costs based on productivity and quality models Development costs based on LOC  productivity rate Maintenance costs based on defects  KLOC  MH Type Example Basic Form (LOC  Productivity + Quality  KLOC  100)  Hourly Rate XP (LOC   KLOC  100)  Hourly Rate TDD (LOC   KLOC  100)  Hourly Rate PP (LOC   KLOC  100)  Hourly Rate Scrum (LOC   KLOC  100)  Hourly Rate Agile (LOC   KLOC  100)  Hourly Rate Rico, D. F., Sayani, H. H., & Sone, S. (2009). The business value of agile software methods: Maximizing ROI with just-in-time processes and documentation. Ft. Lauderdale, FL: J. Ross Publishing.

Agile Business Value A major principle of Agile Methods is creating value ROI is the measure of value within Agile Methods There are seven closely related ROI measures Type Example Costs Total amount of money spent on agile methods Benefits Total amount of money gained from using agile methods Breakeven Point when the benefits of using agile methods exceed the costs B/CR Ratio of agile methods benefits to costs of using agile methods ROI Ratio of adjusted agile methods benefits to costs of using them NPV Present value of agile methods benefits that result from their use Real Options Value gained from incremental investments in high-risk projects Rico, D. F., Sayani, H. H., & Sone, S. (2009). The business value of agile software methods: Maximizing ROI with just-in-time processes and documentation. Ft. Lauderdale, FL: J. Ross Publishing.

Agile EVM EVM has been adapted to Agile Methods
EVM based on notion that total scope is known EVM is “not” well-suited for large-scale agile projects Type Example PMB Total number of story points planned for a release SBL Total number of iterations multiplied by iteration length BAC The planned budget for the release PPC Number of current iterations divided by planned iterations APC Total story points completed divided by story points planned SPC Story points of work completed from backlog during iteration SPA Story points added/subtracted from backlog during iteration Sulaiman, T., Barton, B., & Blackburn, T. (2006). Agile EVM: Earned value management in scrum projects. Proceedings of the Agile 2006 Conference (Agile 2006), Minneapolis, Minnesota, USA, 7-16.

 Cases of Agile Project Mgt.
Agenda Need for Agile Project Mgt. Intro to Agile Project Mgt. Types of Agile Project Mgt. Phases of Agile Project Mgt. Scaling Agile Project Mgt. Scaling Agile to Lean/Kanban Metrics for Agile Project Mgt.  Cases of Agile Project Mgt. Summary of Agile Project Mgt.

E-Commerce—Google Google started using agile methods in 2005
Used it on one of their most profitable products Incrementally adopted agile one practice at a time Project Name AdWords Project Type Pay-per-Click (PPC) Internet Advertising Mechanism Project Size 20 teams of 140 people distributed over 5 countries Product Size 1,838 user stories, 6,250 function points, 500,000 lines of code Environment Entrepreneurial, egalitarian, dynamic, unpredictable, informal, unstructured Before APM Chronic schedule delays, poor quality, unpredictability, poor estimation APM Practices Release planning, wikis for APM support, early testing and continuous integration After APM Better planning and estimates, earlier testing, better quality, large-scale adoption Lessons Learned Agile fit like a hand-in-glove, introduce agile methods slowly and then scale-up Striebeck, M. (2006). Ssh: We are adding a process. Proceedings of the Agile 2006 Conference (Agile 2006), Minneapolis, Minnesota, USA,

Shrink-Wrapped—Primavera
Primavera started using agile methods in 2004 Used it on their flagship project management tools Adopted agile all-at-once with top-down mgt. support Project Name Primavera Project Type Enterprise Project Management Tool Project Size 15 teams of 90 people collocated at one site Product Size 26,809 user stories, 91,146 function points, 7,291,666 lines of code Environment Top-down, hierarchical, command and control, traditional, waterfall approach Poor relationships, quality, usability, and customer satisfaction, functional silos, 18-hour days, 7-day work weeks, frustration, disappointment, apathy, exhaustion Before APM APM Practices Release planning, agile project management tools, automated testing tools After APM 75% quality and 40% cycle time improvement, 40-hour work week, 0% attrition Lessons Learned Agile results in better communication, motivation, and empowerment Schatz, B., & Abdelshafi, I. (2005). Primavera gets agile: A successful transition to agile development. IEEE Software, 22(3),

Healthcare—FDA FDA suppliers started using agile methods in 2008
Used it on most stringent Class 3 certified products Used to modernize 1990s era products & processes Project Name m2000 Real-time PCR Diagnostics System Project Type Human Blood Analysis Tool (i.e., HIV-1, HBV, HCV, CT, NG, etc.) Project Size 4 teams of 20 people collocated at one site Product Size 1,659 user stories, 5,640 function points, 451,235 lines of code Environment FDA-regulated medical devices, real-time, safety-critical, Class III–most stringent Cumbersome process, poor quality, long cycle time, slow big-bang integration, obsolete, hard-to-staff tools and methods, inability to keep pace with changing requirements, Intense market competition, exponential rate of technological change, fewer resources Before APM APM Practices Release planning, lighter-weight agile testing techniques, continuous integration After APM 25% cycle time and staff-size reduction, 43% cost reduction, fewer defects Lessons Learned Agile enables the ability to balance fast cycle time with high-quality safety-critical solutions Rasmussen, R., Hughes, T., Jenks, J. R., & Skach, J. (2009). Adopting agile in an FDA regulated environment. Proceedings of the Agile 2009 Conference (Agile 2009), Chicago, Illinois, USA,

Law Enforcement—FBI IC started using agile methods following 9/11
Used it on billion dollar transformation initiatives Goal is to catch bad guys better, faster, and cheaper Project Name Inter-Agency Intelligence Sharing System Project Type Domestic Terrorist Database/Data Warehouse Project Size 3 teams of 12 people collocated at one site Product Size 643 user stories, 2,188 function points, 175,000 lines of code CMMI Level 3, ISO 9001, government-mandated document-driven waterfall life cycle, emerging federal directives for more information sharing and integration among intelligence community partners, rapidly changing customer requirements Environment Unresponsive waterfall life cycles, chronic schedule delays, anxious customers, unhappy developers, resource focus on becoming CMMI Level 3 certified caused everyone to lose track of the real goal, which was to “catch bad guys” Before APM APM Practices Release planning, user stories, test-driven development, continuous integration After APM 50% quality improvement, 200% productivity increase, FBI created policy for agile methods Lessons Learned Agile enables fast response times, customer satisfaction, and ability to "catch bad guys" Babuscio, J. (2009). How the FBI learned to catch bad guys one iteration at a time. Proceedings of the Agile 2009 Conference (Agile 2009), Chicago, Illinois, USA,

U.S. DoD—STRATCOM U.S. DoD started using agile methods following 9/11
Used it on billion-dollar software-intensive systems Goals are to respond to rapidly emerging threats Project Name Strategic Knowledge Integration Website (SKIweb) Project Type Knowledge Management System (KMS)—Advanced Search Capability Project Size 3 teams of 12 people collocated at one site Product Size 390 user stories, 1,324 function points, 105,958 lines of code Traditional linear documentation-based development, contract-oriented, hierarchical communication, rapidly changing operational requirements, need for leaner U.S. military force, seeking better and faster ways of getting critical information to decision makers, decentralization, migration to net-centric service oriented architectures, egalitarian decisions Environment Before APM Long cycle times, dissatisfied customers, unresponsive life cycles, poor quality APM Practices Release planning, frequent customer collaboration, continuous integration After APM Good teamwork, 200% productivity increase, improved quality, fewer defects Lessons Learned Agile improves customer satisfaction/communication, and overall product quality Fruhling, A., McDonald, P, & Dunbar, C. (2008). A case study: Introducing extreme programming in a U.S. government system development project. Proceedings of the 41st Annual Hawaii International Conference on System Sciences (HICSS 2008), Waikaloa, Big Island, Hawaii, USA,

 Summary of Agile Project Mgt.
Agenda Need for Agile Project Mgt. Intro to Agile Project Mgt. Types of Agile Project Mgt. Phases of Agile Project Mgt. Scaling Agile Project Mgt. Scaling Agile to Lean/Kanban Metrics for Agile Project Mgt. Cases of Agile Project Mgt.  Summary of Agile Project Mgt.

Advanced Agile Measures
Agile Methods are a fundamentally new paradigm Agile Methods are “not” lighter Traditional Methods They should not be viewed through a traditional lens Customer Collaboration Contracts Interaction frequency Customer trust valued Contract compliance Communication quality Customer loyalty more than Contract deliverables Strength of Relationship Customer satisfaction Contract change orders Individuals & Interactions Processes Team competence Team trust valued Lifecycle compliance Team motivation Team cohesion more than Process Maturity Level Agile Metrics Team cooperation Team communications Regulatory compliance Traditional Metrics Working Software Documentation Iteration size Continuous iterations valued Document deliveries Iteration number Operational iterations more than Document comments Iteration frequency Validated iterations Document compliance Responding to Change Project Plans Organizational flexibility Process flexibility valued Cost Compliance Management flexibility Design flexibility more than Scope Compliance Individual flexibility Technology flexibility Schedule Compliance Rico, D. F., Sayani, H. H., & Sone, S. (2009). The business value of agile software methods: Maximizing ROI with just-in-time processes and documentation. Ft. Lauderdale, FL: J. Ross Publishing.

Benefits of Agile Proj. Mgt.
Analysis of 23 agile vs. 7,500 traditional projects Agile projects are 54% better than traditional ones Agile has lower costs (61%) and fewer defects (93%) 2 . 8 18 Before Agile Before Agile 3 . 00 After Agile 20 After Agile 11 2 . 25 15 1 . 1 1 . 50 10 61% 39% . 75 Lower 5 Less Cost Staff Project Cost in Millions $ Total Staffing 18 2270 Before Agile Before Agile 20 13 . 5 After Agile 2500 After Agile 15 1875 10 1250 381 93% 5 24% 625 Less Faster Defects Delivery Time in Months Cumulative Defects Mah, M. (2008). Measuring agile in the enterprise: Proceedings of the Agile 2008 Conference, Toronto, Canada.

Myths about Agile Proj. Mgt.
Common myths abound, although agile methods have been around for ~20 years: Agile methods are only for software development Agile methods are only for small co-located teams Agile methods have no documentation Agile methods have no requirements Agile methods need traditional system architectures Agile methods have no project management Agile methods are undisciplined and unmeasurable Systems built using agile methods are unmaintainable and insecure

When to use Agile Proj. Mgt.
On exploratory or research/development projects When fast customer responsiveness is paramount In organizations that are highly-innovative & creative Traditional Project Management Agile Project Management Predictable situations High-levels of uncertainty and unpredictability Low-technology projects High-technology projects Stable, slow-moving industries Fast-paced, highly-competitive industries Low-levels of technological change Rapid pace of technological change Repeatable operations Research-oriented, discovery projects Low-rates of changing project performance Large-fluctuations in project performance Long-term, fixed-price production contracts Shorter-term, performance-based RDT&E contracts Achieving concise economic efficiency goals Achieving high-impact product/service effectiveness Highly-administrative contracts Highly-creative new product development contracts Mass production and high-volume manufacturing Customer-intensive, one-off product/service solutions Highly-predictable and stable market conditions Highly-volatile and unstable market conditions Low-margin industries such as commodities High-margin, intellectually-intensive industries Delivering value at the point-of-plan Delivering value at the point-of-sale Pine, B. J. (1993). Mass customization: The new frontier in business competition. Boston, MA: Harvard Business School Press.

Conclusion Traditional methods are well-suited for predictability
Agile Methods are well-suited for high uncertainty It comes down to efficiency versus effectiveness Thomke, S. (2003). Experimentation matters: Unlocking the potential of new technologies for innovation. Boston, MA: Harvard Business School Publishing. Reinertsen, D. G. (2009). The principles of product development flow: Second generation lean product development. New York, NY: Celeritas.

New Book on Agile Methods
Guide to Agile Methods for business leaders Communicates business value of Agile Methods Rosetta stone to Agile Methods for traditional folks (Description) (Amazon)

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