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Economically Sensible Scrum Scrum Australia Keynote
April 10, 2013 by Kenny Rubin
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Background of Kenny Rubin
Author Trainer/Coach Trained more than 19,000 people in Agile/Scrum, SW dev and PM Provide Agile/Scrum coaching to developers and executives
Experience
My first Scrum project was in 2000 for bioinformatics
Former Managing Director
Executive
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Scrum Framework
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Art available at: http://www.innolution.com/resources
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Approaches
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ScrumBut(t) – Violations of the Scrum Framework
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We do Scrum, but…
Sprints are 8 weeks
No product owner
Daily scrums on M-W-F
Sprint planning is 2 days
Etc…
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What If We Had No Scrum Violations?
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VIOLATION YOUR USE OF SCRUM VIOLATES A CORE PRACTICE AND IS HEREBY
DEEMED TO BE A SCRUMBUT
YOUR TEAM PHOTO HAS BEEN RECORDED
Do no violations = success with Scrum?
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Current Industry Results – From Comparative Agility®
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>7,000 Surveys at www.comparativeagility.com
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VersionOne 7th Annual Survey
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0%
20%
40%
60%
1% 1% 1% 2% 2% 2% 2% 4% 4% 7% 9% 11%
54%
Of 4,048 respondents, most are using Scrum or Scrum variants (72%)
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Inhibitors to Success Using Scrum
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Ignorance or misapplication of core agile principles during development
Failure to apply agile principles throughout the value chain
Failure to structure teams in an economically sensible way
Overall, they don’t apply core agile principles in an economically sensible way
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Principles
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So What is Economically Sensible Scrum?
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Economic Framework Variability
& uncertainty
Prediction &
adaptation
Validated learning
Work in process (WIP)
Progress Performance
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Economics – The Universal Language of Product Development
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We Need a Economic Framework
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Waste
Lead time
Variability
Batch size
Customer sat
…
Lifecycle profits
Based on Reinertsen The Principles of Product Development Flow: Second Generation Lean Product Development
Compare effects of different product / process /organizational attributes by converting them all into the same unit of measure
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Example: Waste
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Waste 1 Waste 2 Waste 3 Waste 4 Multiple forms
of waste
Waste 1 Waste 2 Waste 3 Waste 4 Can t eliminate
them all
Waste 1 Waste 2 Waste 3 Waste 4
$ $$$$ $$ $$$
Determine which cause most
economic damage
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Example: Cost of Delay
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Lead time Variability
Money Lead time
If you have to wait 3 weeks for the UX team to design your UIs, and that delay could be eliminated by having a UX designer on your team, what would be the cost of the UX-team delay (in lifecycle profits)?
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Ignorance or Misapplication of
Core Agile Principles During
Development
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Misunderstanding of When Change Occurs
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We like Scrum, because we can make changes anytime we want!
Holly *?&! they can’t just change things whenever they want!
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Economically Sensible Change
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Misunderstanding of Just-in-Time
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Holly *?&! This sounds like total chaos!!!
With Scrum we do everything just-in-time!
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Balance Up Front Predictive with Adaptive Just in Time
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Recognize Inventory (WIP) Waste
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Manufacturing inventory is both physically and
financially visible
Product-development inventory are knowledge assets that
aren’t visible in the same way as physical parts
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Focus on Idle Work Not Idle Workers
Watch the Baton Not the Runners
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Economically Sensible Planning
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Failure to Apply Scrum Principles Throughout the
Value Chain
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Example Value Chain
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Management
Finance HR Legal
Sales
Marketing
Develop Ops
Cust
Dev Partners Dev
Partners Dev
Partners
Cust
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Do Agile Here
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Internal Management Misaligned
Develop in an Agile way, but still provide all of the same plan-driven artifacts (e.g., extensive up-front requirements, full budget, and precise schedule) like before to get the project approved
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Sales Misaligned
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Portfolio Planning Misaligned
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Downstream Misaligned
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Develop Ops Backlog of potentially
shippable product increments
Cust
Ops
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Partners Misaligned
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Fixed
Fixed Fixed
Contract
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Protection of the Fiefdoms
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Sure, we can do Scrum, as long as I don’t have to change anything in my group!
George s Group
Me too! Me too! Me too! Me too!
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Failure to See the Whole
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Optimizing locally frequently sub-optimizes the system
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Failure to Structure Teams
in an Economically Sensible Way
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Economically Sensible Teaming
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Reduce multitasking
Scaling teams based on economics, not dogma
Embrace T-shaped Skills
Create and maintain long-lived teams
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Reduce the Amount of Multi-tasking
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Not about keeping people busy
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Multitasking
Clark and Wheelwright (1992) studied multi-tasking and determined that when working on more than two projects, a person’s time spent on value-adding work drops rapidly
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Teams with T-Shaped Skills
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Team Longevity
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Product 1 PB 1 Feature Team A
Product 2 PB 2 Feature Team A
?
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Economics Favor Long-lived Teams
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More productive than newly formed groups
Team familiarity can positively impact efficiency and quality of team output
Has a shared velocity and estimating history that can be used during planning
Have established trust and team identity and integrity
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Projects with at least 100 people (320 surveys)
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Scaling With Multiple Teams
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As the scope of work gets larger and one team is no longer sufficient, what is your scaling strategy?
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Discipline Teams
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Location Teams
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Sydney New York
Sydney New York Deliberately Distributed
Teams Team 2
Team 1
Team 1 Team 2 Coordinating Collocated
Teams
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Architectural Layer Teams
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DB
Middle Tier
GUI
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Component Teams
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Feature Teams
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Don t Scale Based on Dogma!
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Do you honestly think there is a single answer to scaling that universally applies to all situations (sizes and types of organizations)?
Everyone knows feature teams are better!
Nuts! Component teams promote
conceptual integrity & reuse!
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Component Teams (Single Source)
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Component Teams (Multiple Sources)
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Combined Feature & Component Teams
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Summary
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Performing all Scrum practices and using generally accepted Scrum approaches is necessary, but not sufficient
If you want to see the real benefits of applying Scrum you need to apply Scrum within an economic framework that allows you to make sensible tradeoffs
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Contact Info for Kenny Rubin
Email: [email protected] Website: www.innolution.com Phone: (303) 827-3333 LinkedIn: www.linkedin.com/in/kennethrubin Twitter: www.twitter.com/krubinagile Essential Scrum: A Practical Guide to the Most Popular Agile Process
www.essentialscrum.com
Comparative Agility Website www.comparativeagility.com