Agile Development Blog

I love the leverage  you get when strategic planning is working well.

At Rally, I run our strategic planning process with help from Jean and others in our organization. We have experimented with many agendas, internal facilitators and guests, but we’ve found the most success when Jean facilitates these meetings and I lead them. It is challenging work and we try really hard to create a setting that leads to magic and allows the best to emerge from the group.  As you might imagine, if you know Jean and me, we never stop trying to improve the process. In addition to our desire to keep advancing, the context at Rally keeps changing. Whether from growth, hiring, market changes, maturation of agile, or changes in customer demographics; our overall setting for strategic planning keeps shifting. It is a difficulty that we wrestle with, but knowing it is ultimately unsolvable, we have learned to embrace the dance.

I do not recall what was the chicken and what was the egg, but we started working on strategic agile topics last year and it launched two efforts and blog series: N Levels of Planning, and Scaling Agile to the Strategic Level. In this post I am bringing the two series together to explore tooling the process of strategic planning in an agile context with Catherine and Ronica. Larger Rally customers and past employers have shown that managing a strategic plan in a spreadsheet creates vacuums. Through our efforts at Rally, we have learned that trying to maintain strategic alignment with our development teams without a single source of record to visualize variances on plan versus actual is challenging. (HINT: Slides are not a very capable source-of-record :)

It is difficult to integrate big-bang, waterfall planning/stage-gates and traditional budgeting with effective agile teams who keep learning and adjusting. It is even more difficult to stay on course as an agile organization without effectively closing the feedback loop on roadmap/strategic planning efforts. In the first instance, it is easy to simply be driven by a naive plan. In the latter, it is easy for the development effort to drift apart from the goals and direction.

These well-validated difficulties led to the birth of Project Stratus and the N-Levels of Planning efforts at Rally. These two initiatives are intended to help increase the effectiveness of strategic planning in an agile context.  They are helping us balance the need for forecasting delivery while also benefiting from the fast feedback that flows out of agile teams and programs. We like to talk about this process as steering realistic roadmaps to maximize the delivery of value.

To explore this problem space, we diligently carried out discovery and validation exercises that led to a working application (Project Stratus) and a service offering (Agile Strategic Planning) that we use to ensure the delivery of a Whole Solution. Through our customer interviews, we found that the most common strategic planning solution when doing agile development is a strategic planning person holding the plan of record in an Excel spreadsheet. This spreadsheet holds some form of a roadmap of releases, programs and resource allocations. It is updated on a regular cycle, typically quarterly. However, two major problems exist with the spreadsheet approach.

1. The plan is outdated as soon as the work starts because there are two sources of data; one for planning and one for tracking progress
2. Planning in a vacuum happens as correlating the empirical data into a highly customized spreadsheet leads to outdated data which tends to erode trust

As a result, this most common solution is horribly disappointing with human translations that lead to over-aggressive estimates and/or status updates progress reports. Bringing agile values into this faulty process will shorten feedback loops and bring real data effectively into the cycle.

In exploring the space, we are discovering multiple ways that organizations manage the strategic planning process. As we are still making sense of these patterns, it is early to report on our findings.  However, one approach does stand out.

The model articulated in Dean Leffingwell’s newest book, ”Agile Software Requirements: Lean Requirements, Practices for Teams, Programs and the Enterprise“ is clearly one of the patterns of agile strategic planning. You can see a snapshot of this method on his blog, but if you really want to learn it, you should get his book. It is a clear articulation of how to manage your strategic priorities as series of releases. The book breaks the problem into three agile requirements management areas: the team, the program and the portfolio. The beauty of this approach is how it trains all levels of product owners, product managers and portfolio managers to run in agile unison. Dean developed this model starting with the teams and working systematically up through the enterprise portfolio level (ie bottom to top). And, importantly, Dean worked this iteratively through a number of his consulting customers over the past decade (see the Big Picture section of his blog to the incremental progress laid out over time).

In addition, in Agile Software Requirements, Dean has described a “business epic kanban system” which he uses to make the work in process visible, understand the state of epics as they transition to development, and to get the portfolio planners on a similar agile page as are the agile development teams. He and a number of our customers have used this system effectively in a number of large enterprises, so we know it makes a good starting model for portfolio/strategic planners who run portfolios as a sereis of releases.

As a result, this model of strategic allocation and roadmap planning is proven to work well for agile teams that ship code series of releases. Here is Dean’s model from that book and his web site.

Big Picture: Scaled Agile Delivery Model by Dean Leffingwell

We have a number of customers making very good progress in developing strategic roadmap steering capabilities using this approach and Rally’s Project Stratus. If you are interested in this approach paired with Stratus, consider contacting Dean or Ronica, our services owner, directly or through your Rally Account Manager. (See Ronica’s contact information below.)

We will continue to explore hybrid waterfall/stage-gate, other hybrid agile (scrum/kanban), and continuous flow techniques for strategic planning in the coming months. Please stay tuned.

Finally, to fully explore the problem and solution space, we created the RallyON conference. We will host this conference in Boulder on May 10th and 11th. We limited the conference to 150 attendees and it has sold out quickly to our most active users and champions. Don’t worry if you are not attending as there are a number of ways to engage in the conversation including:

• Responding to this post with your challenges, ideas and comments on strategic planning in an agile context
• Sharing your opinion or challenges related to topics that Rally Coaches, Technical Account Managers and Product team members are posting for the conference on our new Coaching Blog.
• Posting your agile, scrum, kanban and xp questions on pm.stackexchange.com or programers.stackexchange.com to have a the community formulate answers to your questions prior, during and after the conference. We will have expert users from both of these stackexhanges on site at the conference to help us leverage this rapidly growing community.
• No matter what choice you make, please tweet your efforts with the #RallyOn11 hashtag. It will get the attention of the Rally coaches, technical account managers and product team, in addition to all the physical and virtual RallyOn attendees.

Please join us online before during and after the conference to explore the topic of strategic agile.

About the authors:

Ryan Martens is a member of NRDC’s Environmental Entrepreneurs,  founder/CEO of the Entrepreneurs Foundation of Colorado, and Founder/CTO at Rally Software Development.

Special Thanks to Catherine Connor, the lead on Project Stratus at Rally and Solutions Evangelist Ronica Roth, who owns our Services strategy at Rally.You can reach Ronica at ronica[at]rallydev.com

In the last month, I have gotten the question “Where does Agile *not* work?” numerous times, mainly from large firms planning their first Agile rollout efforts.  That question is quickly followed by, “And I don’t want to hear that it works everywhere!”

Admittedly, that’s a tough one for me. My answer is that Agile approaches can be applied anywhere – from your home moving project to the creation of space crafts. So I usually flip the question. If Agile conceivably could work anywhere, the question is really, “On which projects do you choose to start your Agile adoption?”

Where To Start

Jean and I and our fellow Rally coach Ronica Roth tend to apply two criteria: the strategic importance and risk of the effort. The iterative nature of Agile development is going to provide you with the tools to steer a risky and highly strategic project much better than phased development approach.

Our rendition from "Stand Back and Deliver"

In their new book Stand Back and Deliver, Pollyanna Pixton, Niel Nickolaisen, Todd Little and Kent McDonald provide a more elaborate portfolio model to assess your efforts.  They map uncertainty versus complexity in a 2×2 matrix with nice labels of colts, bulls, sheepdogs and cows. I find the model is very effectively elaborated in the book and some very useful implications for staffing, selecting and managing the value flow are discussed.  The variables used in the book include:

• Uncertainty Attributes: Market, technology, customer size, project duration, scope of change
• Complexity Attributes: Team size, mission critical, team locations, team maturity, domain gaps, dependencies

Three Perspectives

1. We agree with the authors, the best place to start using Agile practices are projects that are High Uncertainty (because you leverage Agile to learn as you go) and Low Complexity (to avoid the headaches of technical risk).
2. If the risk to the business is significant, such as eroding market share or the possibility the project will be canceled, then accept the technical risk and use Agile for a High Uncertainty-High Complexity project.  The use of Agile will help with the uncertainty. It will be important on those projects to increase the discipline level around process and communication.
3. Projects of Low Uncertainty and Low Complexity rank third.  They could easily transition to Agile and benefit from the improvements to productivity, quality, and collaboration. Yet they don’t need Agile to be successful. For these projects, the tie-breaker may be the next set of criteria – the environment.

Environmental Factors

Once the project is right for Agile by its nature, the next question is whether you can quickly create an environment for success.  Many people talk about this as the organizational readiness for Agile or assess these concepts via Agile team assessments.  Here is a snippet of that kind of team assessment:

Does the Product Owner have the right level of authority and influence? Are they…

• Embedded with team?
• Dedicated to the project?
• Able to gain consensus from stakeholders on goals and features?
• Able to evolve the product backlog (with training)?
• Able to support the team through constant feedback and decision-making?
• Able to plan at multiple levels (with training)?

Is there a dedicated, persistent, cross-functional team?

• The team is dedicated to the work being planned using Agile (note: The team could actually work on multiple projects, as long as they are working a single backlog and work from all projects is scheduled via Agile planning cycles).
• ScrumMaster, Product Owner, Product Development and Quality Assurance must be full-time dedicated resources.
• Other resources might be part-time for any one Scrum team, but they should be spread across as few Scrum teams as possible. These include: Database, User Education, Apps Architect and Ops Architect.
• Architects might be contributing members, or might be advisory.

Is the team co-located?

• It’s not required, but can be a risk factor.
• For distributed teams, it is important to have good communication constructs, and to have a leader in remote locations to partner with the ScrumMaster and Product Owner of the core team.

Do you have an Uber Product Owner and Uber ScrumMaster?

• For multi-Scrum-team projects, it is important to have an overall Product Owner and ScrumMaster to own releases and communication across teams.

Is there a controlled build environment?

• To ensure quality and a smooth flow of work, the team should be able to provide QA with builds multiple times during a two-week sprint.
• As a Scrum team matures, and to increase velocity, the team will want to integrate code to a shared dev environment continuously (at least daily).

You can get a copy of Rally’s Team Agility Assessment and we welcome your feedback. I hope you will buy their book and try team assessments to help you map your own approach.  To me, Agile works everywhere,  it is just a question of how good do you want to be and by when.

About the Author: Ryan Martens is a fly-fisherman, founding board member of Entrepreneurs Foundation of Colorado, and Founder and CTO at Rally Software Development. Subscribe today to get free updates by email or RSS.