Agile Development Blog

Just got off the phone with Dan Montgomery who interviewed me on his BlogTalkRadio channel on Sustainable Leadership.

Following the ‘More…’ link will show my notes and links from the 50-minute interview using the Decker Grid.

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Jeff Windman posted a nice little article on TechCrunch IT about Lean, Agile, Rally and Toyota.  Please join the deep and skeptical discussion.

Right now, we are all working through our 2009 budget process with the unknowns of the economic recession staring us in the face. This budgeting cycle holds more unknowns than we’ve seen in awhile, so it’s making everyone cautious about finding the right moves that will cut costs in the short term without damaging our businesses.

Unfortunately, layoffs may be part of the solution to achieving short-term savings, especially for firms hit hard by the recession. In short, layoffs suck. These highly personal actions are sad, and I am sure you and your staff may need some time to grieve the losses. But prior to cuts, there is a bigger issue to consider while managing belt tightening -– your long-term vision and direction. Put simply, it is imperative to refresh your 2009 vision before the cutbacks, or you risk destroying the morale of the whole team, losing key personnel, and dropping market share.

As you look to make cost-saving cuts, the first question is, how are you going behave?

1. Take the easy way out and cut in a way that fixes the short-term at the risk of harming your long-term prospects. “Across the board” cuts fit this behavior.
2. Rise to the occasion and cut in ways that meet short-term needs and advance your long-term goals.

On Nov. 9, Rahm Emanuel, the new chief of staff for President-elect Barack Obama said, “Rule one: Never allow a crisis to go to waste… They are opportunities to do big things.” Clearly Mr. Emanuel is reacting by rising to the occasion – scenario number 2.

The trick to taking advantage of this crisis is to resist the pressure to simply cut without a long-term plan that everyone understands. When you do not have long-term goals, short-term fixes always lead to unintended consequences that are typically worse than the original problem. Said another way: While we sometimes get some of the intended consequences, we always get all of the unintended consequences.

A key goal of every IT department is to reduce the time and effort needed to deliver value to the business. To accomplish this, the best long-term trend we have in IT beyond Moore’s law and the power of the Internet is the improvement of IT agility. Increasing IT agility is important because it provides a value innovation and delivery method that harnesses these fundamental advances in infrastructure.

Tom Poppendieck, a leader in the Lean IT movement, recently said, “You can’t cut costs by focusing on cutting costs. You’ve got to focus on the changes that will lower your costs over the long run.”

If you are exploring the adoption of agile software development practices and you’re prepared to rise to the occasion, this recession and the resulting belt-tightening gives you an opportunity. You have the opportunity to rally your company around a vision that will not just cut costs, but improve morale and help you grow your business in the next economic spring.

IT agility

For the 70% of you who have not adopted enterprise agility, let’s do a quick overview. Agile practices enable teams to build less, but return the same value by focusing on early delivery of the features that have the highest business value and not wasting money on the features that don’t.

IT agility is driven by three major innovations: agile development, Software as a Service (SaaS), and Web 2.0 social networks. However, without agility in development and software releases, the innovations of service-oriented architecture (SOA) and Web 2.0 are elusive.

There are three costs savings for enterprise IT agility proven through benchmarking analysis:

1. Lean flow provides more productive development organizations.
2. Better prioritization delivers the most valuable software first.
3. Faster time to market and incremental delivery returns income sooner.

To realize those benefits, you and your team must develop, communicate and implement an effective agile enterprise adoption driven by a highly visible roadmap. Since the late 90s, agile adoptions have followed a ground-up and incremental funding approach as early adopters proved the benefits and scalability of agile in the enterprise. Starting in 2005, leadership-led or top-down approaches have begun to dominate the scene. These larger and more systemic approaches are required for organizations that need to act fast to derive short-term gains.

For managers and directors doing their budget planning now, the next three sections outline the proof points for agile, a roadmap to enterprise agility, and the implications on this roadmap from having to make savings cuts ahead of investment.

Proven impact of enterprise IT agility

Many large and distributed development organizations have proven the positive financial impact of agile over the past five years. These findings were quantified in the Agile Impact Report. In that study, QSM Associates benchmarked Agile teams against a database of 7,500 projects and delivered the following results. On average agile teams working with Rally were 25% more productive, had 50% faster time to market, and delivered one-fourth the number of defects. (Those teams not working got 50% of those results.)

Given those improvements, it is becoming a business imperative to adopt agility, especially on your mission-critical applications. In the face of cuts and with a long-term outlook toward enterprise agility, you can now see your way to a 25% savings in 2009.

Enterprise agile adoption roadmap

Like any mission-critical systems or initiative, you need a vision and roadmap to steer your adoption and rally the troops. During the past four years, an approach fashioned from Lean manufacturing concepts and adopted in an incremental approach has proven very effective. The following illustration depicts that method.

There are three keys to effectively managing this process:

1. Work incrementally, in an agile fashion, through the steps and gain proficiency before widespread scaling.
2. Develop a vision/roadmap and change backlog with key executives before you attempt to move up to step 3 and beyond.
3. Share the vision and roadmap with the entire organization and manage the rollout in a collaborative fashion with complete transparency.

Many of these rollouts have started with a grassroots effort to get to Step 1 and Step 2. With the help of external coaching and parallel tool rollouts, many companies have taken more aggressive, “flash-cut” moves with top-down leadership and investment to jump to step 3 in the roadmap within months.

Flash-cut approaches

Given the pressure and opportunity of this crisis, as well as the increasing number of public proof points showing how large organizations can quickly transition to agile, you might be thinking about your ability to do accelerate your adoption and capture savings in 2009 from your efforts. From my experience, there are three things to heed while considering this:

1. Adopting agile needs complete management buy-in and a true sense of urgency. Many enterprises that have done this have used phrases like “burn the life rafts.” A recent Gartner report, “Case Study: Inovis Uses Agile Methods to Accelerate Product Development,” says, “The ‘big bang’ adoption approach is high risk, but it works in companies or business units with high levels of risk acceptance, and it can manage the ensuing organizational change.” What is it going to take for your management team to get buy-in to adopt Agile on a major portion of your organization? I assume the current recession will amplify any existing business needs.
2. You are going to need a strategic partner to help you manage this organization change effort. I do not know a company that followed the flash-cut approach without an outside coaching or consulting firm. As a result, you will have to budget for this investment and the time to choose and schedule them. These partners will help you build the organization capacity for agile while also supporting the professional development of your middle managers as the organization becomes flatter and leaner.
3. This is a whole system change from a world of plan-driven to value-driven ideas. As a result, you will see immediate changes in your process, organization, and technology. This transition will set up a culture of continuous improvement and even drive changes in your overall development and business strategies. To make this transition go well, you are going to need to implement a collaborative project management solution to provide visibility across your development teams. Enterprise IT agility does not scale or distribute around the world without it.

Don’t waste a crisis

We don’t know how long or how deep this recession will be. Belt-tightening and staffing cuts almost seem inevitable. You can either reduce costs by just cutting your budget, or you can use this opportunity to make systemic changes in your business. I strongly urge you to make your cuts in parallel with investment in the long-term to avoid fixes that fail.

Provided you have a longer-term vision of your organization around agile software development, some outside coaching to help accelerate your adoption and solution for distributed management, you can take advantage of this crisis to make big changes very quickly. Enterprise IT agility is proven to do that — more so than investments in technology point solutions that only have a point in time savings. Most important, this approach will help ensure the savings from today’s cuts do not create worse problems in the long run.

In the end of October, I did a short, 30 minute, webinar with the Ian McGuinness and Jeffrey Kaplan at the Mass Technology Leadership Council.  The topic was focused on the positive relationship between Agile and SaaS.  This talk spoke to software executives and provides an overview of agile and why it is a glove fit with SaaS business model.  I was joined on this call by one of our customer, Rick Simmons, Director of Agile Practices and Web Services, from Constant Contact. And, Rick’s color commentary was a huge addition to the webinar.  Thanks Rick!

If you are a SaaS provider or considering the move to SaaS, you should enjoy the talk, Rick’s comments and the questions from the folks in the Mass Technology Council that were on the call.  The recorded webinar for this call is available for viewing pleasure.

My theory is that the software industry’s move to SaaS and Agile are speeding up the value chain so fast that it is becoming a value cycle.  As a result of that value cycle, we are seeing an increasing need to become much better at managing customer uptake and successful application of new features.  If we do this well, a rapid ROI engine gets created for our customers and good things happen everywhere.  I see this value cycle as a great closed-loop model that is typical of the sustainable models that will become part of all industries as the 21 Century moves along.  My hope is that we leverage this model and become one of the first sustainable industries in the world.  If you want to read about what we are doing to make Rally sustainable, please visit these sites.

• Greening of the Software Industry forum
• Greening of Rally forum
• Rally’s Sustainability page

If you are more interested in the value cycle concept, I turned much of this content into an article for the Sterling Report; that article is available on the Sterling Report in this month’s issue.

If you are a software executive, I would encourage you to subscribe to their monthly publication of thoughtful and provocative articles.  If you want a complete white paper on the topic, you can download it from the Rally Download section.

If you have any comments on this article, I would love to see your comments below or on one of two forums mentioned above.

There are several problems with traditional requirements formats

• They cost a lot of money to produce and yet you can’t sell them to your customers (waste)
• They can be monolithic (90 page use cases) and so they’re hard to manage when different pieces have different importance.  The desire to make them comprehensive loads extra work onto the development team. (strain)
• They take a long time to produce, holding up the development process and delaying the feedback that comes when users get to see working software (wait time)
• The more detailed they are, the more the team thinks they’re complete and the less critical thinking gets applied to them, leading to more defects (waste)

User stories are designed to address these issues.  A user story represents a small piece of business value that a software team can deliver within an iteration.  Here’s one:

As a customer, I want to check my order status online so that I can know when to expect my package.

There’s actually a lot in that little line – we know who the user is, what’s the activity they want to do, and what’s the underlying goal.

Ron Jeffries has said that there are actually three parts of a user story:

1. Card - the part we wrote in italics above.  It’s just a placeholder – a project management mechanism that we’ll use to remind us that at some point we probably should get around to building an order status thingy.  This part should be short enough to write on one side of an index card with a sharpie marker.  You could even word it “Order Status Checker Thingy” to emphasize that it’s a placeholder, not a requirement.
2. Conversation - When this card comes up in the stack as the top priority, the team will talk during iteration planning about the acceptance criteria that will need to be met to satisfy the customer or Product Owner that they built the right kind of “Order Status Checker Thingy”.  Sometimes the criteria are noted on the back of an index card or in an agile tracking tool.
3. Confirmation – The detailed acceptance tests that the team writes during the iteration to define exactly how an “Order Status Checker Thingy” should work, in excruciating detail

A user story is unlike regular requirements because the requirements aren’t specified in detail until the tests are written, around the same time as implementation.  Benefits of this approach:

• No inherent waste.  We’re only writing down as much as we need to document our conversations and make sure we’re all on the same page
• Encourages discussion. Your developers and testers know a lot about what they’re building.  They’re capable of thinking of important details and preventing defects and other bigger mistakes, if the process encourages them
• Easy to manage.  If you’re used to use cases, break down your scenarios and steps into stories.  You can do the important parts early and postpone the less important parts later.
• Easy to manage scope creep.  If you think of new things to do, create new stories and add them to your list in priority order.  Since you’re always doing the most important things first, you’ll end up naturally managing scope in a way you can’t when you’re working off of requirements documents.

(This is a draft – please add comments or edit the pattern itself)

When multiple teams are working together on a project, there are many cross-team issues and dependencies that need to be resolved. Significant organizational change is generally needed to support agile development; often this change is more than one team can create on their own.

A Scrum of Scrums is a scrum team made up of representatives from each of several other teams. Usually the representatives are the ScrumMasters for each team, although sometimes technical leaders and product owners also participate. An Uber ScrumMaster acts as the facilitator for the Scrum of Scrums.

Just like a regular scrum team, the Scrum of Scrums works iteratively to deliver value in the form of removed organizational obstacles. Usually this group’s meetings lag just behind the regular Scrum meetings. For example, if the Scrum teams have their daily meeting at 9AM, the Scrum of Scrums might meet at 9:15AM.

Some tips to make this group successful:
1. Remove any unintentional or intentional hierarchy or power associated with this meeting. (This is only a role!)
2. Remind people of the intent and purpose: to remove escalated obstacles or resolve dependencies between teams
3. Have the SOS team create a backlog to work through iteratively
4. Engage the team in a mission/value statement exercise for clarity when stuck
5. For Daily Scrum of Scrums Meetings, stick to the point and stay after to solve problems, just like in the other daily meetings
6. Bring an expert with you or send him in your place if he is better equipped to solve the problem; it’s all about waste and obstacle eradication
7. Make SOS progress visible to the organization via demos
8. Hold retrospectives
9. Don’t give SOS power to inflict decisions on other teams

Consider this pattern when:

• You have multiple interdependent agile teams
• You have a large backlog of organizational impediments
• You are transitioning to Agile development