Business Agility And Software Development Alan Chedalawada

[email protected] www.netobjectives.com

1 Copyright © 2008 Net Objectives. All Rights Reserved. April 7, 2023

Business Agility & SoftwareLean-Thinking

Alan Chedalawada


Alan Chedalawada

President Senior Enterprise Consultant, Coach,

Trainer, CSM Trainer Lean, Scrum, Coaching, Business and

Strategy Development MS with honors from Columbia

University’s Computer Technology and Application Masters program

Lean Systems & Software Consortium – President of Board of Directors

[email protected]


Agility

Its about Agility; you can be more agile or less agile in your efforts

An agile team is only as agile as the business & management is agile…


What Is your Goal (for IT)?

Improve Software development & Deployment?

- OR -

Faster realization of Business value?

_1s

Software, by itself, is useless


Conversation: Value

What is Value to the Customer? What is Value to the Business?

– How are these different?– How does this relate to priority?– Who defines / identifies value?– How is this assessed?– What are the primary drivers for the business?


Focus on Speed

Quality, low cost, speed: all are essential

Starting with low cost:– Has limited value – Causes poor decisions

Starting with speed gives insights Requires quality for sustainability –

Go fast now & also in the future! Speed and quality result in lower

cost

Low Cost

Speed

Quality


Speed of Business Value

Develop Faster Deploy Faster Use Faster!

8 April 7, 2023

Trends for Business Value

Realization


Type 1

Busi

ness

val

ue re

alize

d

Time

rele

ase

rele

ase

rele

ase


Type 2

Busi

ness

val

ue re

alize

d

Time

rele

ase

rele

ase

rele

ase


Type 3

Busi

ness

val

ue re

alize

d

Time

rele

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rele

ase

rele

ase


Type 4

Busi

ness

val

ue re

alize

d

Time

rele

ase

rele

ase

rele

ase


Business Value – Financial Institution (example)

Grow / Retain Assets Improve Operations Reduce Cost Compliance Mitigate Risk

15 April 7, 2023

Challenges with Software

Development


The Risks of Software Development

Building more than you need Building lower priority items Building the right thing wrong Poor quality of software

– Software is buggy– Software is not maintainable

Architectural risks Having the wrong resources Discovering functional needs late in the project* but

being unable to build them

* Could this be a good thing?_1dd


Waste: Building What You Do Not Need

Always7%

Often13%

Sometimes16%

Rarely19%

Never Used45%

Source: Standish GroupStudy of 2000 projects at 1000 companies

Usage of Features and Functions in Typical System

_1


Building What You Do Not Need

Top three reasons software projects fail– Lack of user (sponsor) involvement– No executive management support– Unclear, incomplete, & changing requirements

Typical project has 25% change in requirements 65% of features defined in early specs rarely or never

usedSuccess-ful Fin-ish 16%

Late Lack-ing Fea-

tures53%

Cancelled31%

Project Resolution by Type

Source: Standish GroupCHAOS Report 1994, 2004


Which Is More Important?

Discovery of what’s valuable?– To the Customer & To the Business

Building (and achieving it)?You can not build the right thing if you haven’t

discovered it first! Not everything is known or understood upfront by

Business / Customer (from a systems view) Business should be able to:

– Specify what’s most important at any given point in time– Learn from what is already implemented – Learn from their changing environment– Update and reprioritize their requirements


Change Tolerant Software

60-80% of all software is developed after first release to production.

Change-intolerant software becomes brittle and breaks easily after a short time.

A software development process that anticipates change will result in software that tolerates change.

Disciplined and frequent exploration of design spaces should be a normal part of the development process.


Make – Value - Flow

Business

Value

Management

Flow

Team

Make

Guidance: Value trumps Flow, Flow trumps eliminating waste


Primary Focus

Faster Business value realization Focus on cycle time, vs. throughput & resource

optimization Fewer things in work improves cycle time

Guidance: Value trumps Flow, Flow trumps eliminating waste


The Lean Enterprise

BusinessIncremental business value

drivenPortfolio & release planning

Manage-ment

Continuous flow of

business valueImpediment

Mgt

Technical AgilityBest engineering practices –

TDD, Design PatternsContinuous incremental

improvement of engineering practices

Team AgilityVisual ControlsFocus on speed while maintaining integrity

LeanEnterprise

Make

Value

Flow

Sustainably


Enterprise Agility

Business Agility Management Agility Team Agility Technical Agility


Lean Agile Software Development

Consists of Guiding Principles Core Practices for Iterative development Process for incremental discovery, development and

deployment of business value Continual improvement of the ‘System’ Knowledge stewardship


Lean-Agile Software Development Process

Lean Software Development enables the discovery, prioritization, and deployment of highest business value

Agile methods enable the incremental delivery of business value based on the team’s development capabilities

Business Discovery must move at the same pace as team’s capacity (velocity)

Support & Feedback

ProjectApproval

ProjectStaffing

ProjectDevelopment

ProjectDeploymentVisioning

LeanAgile

Patterns / TDD


Organizational Impacts

Business – Prioritize features by highest business value– ‘drive’ the development efforts to incrementally deliver– Value Stream Owner

Development Organization– Focus on SPEED in delivering software functionality – Must include functionality, maintainability, and extensibility– Requires excellent engineering practices

Management– What is the best way to achieve Fast, Flexible, Flow– Continuous Standards Improvement– Organizational guiding principles, Impediment removal


Organizational “Boundaries”

Team IT & Business Business

How do we achieve that value?

What – is the best way to deliver that value ?

Why – is this of value?

• Speed of • analysis• build• validation • deployment

• Continual standards improvement

• Technology• Process for Discovery and

Development• Core Engineering Practices• System integrity• Boundaries to empower

teams• Resolution of Impediments to

speed and flow• Skills excellence and optimized

team performance

• Portfolio of Projects• Budgets• Continual discovery of

highest business value• Priority & Sequence• Business Planning• Value Stream Owner• Realization of Business

Value

Iterative Iterative Incremental


Iterative vs. Incremental

Incremental development– Smaller ‘chunks’ at a time (based on business value ROI)

Iterative development– Solution evolved based on inspection and refinement

Whole Teams – all skills needed for discovery, development, & validation of software solution

Focus on speed of delivery– All efforts are primarily on current increments


Why Agile?

Challenges / Questions Does it work in the real world? Would it work for my company? What must we do? How long until we see results?


Challenges & New Approach

Current/Old Approach –Project based

Fixed Scope, Budget, Schedule Define all requirements without

priority Scope evolves, but budget and

schedule remain fixed Big Bang Deployment

New Approach – Business Value based

Discover highest business value, allocate budget here

Prioritize based on Business Value, Sequence based on ROI

Re-prioritize based on updated discovery, budget follows

Team only builds & deploys priority increments


Organizational Change

Change is situational; change only succeeds if people do things differently;

Transition is psychological - 3 phase process– Ending – letting go of the old ways and old identity– Neutral zone – when the old is gone, but the new isn’t

operational– New beginning – when people develop the new identity,

experience the new energy, and discover new sense of purpose that make the change begin to work


Success Factors for Business Agility

Business Value driven Scope of Portfolio Continual Business Planning Focus on Realizing Business Value!


Critical Success Factors to Agile

Process• Continuous planning, discovery and

development• Prioritization of technology spending

to highest business value • Boundaries to empower teams• Resolution of impediments to speed

and flow

People• The right business leads • Allocation of business SMEs to

support projects• Skills excellence and optimized team

performance

• Clear business vision, continuous planning and oversight• Dedicated and empowered business leader• Project scope can be partitioned into independent pieces that can be delivered separately


End Session



Business Driven Software

Development


Lean Thinking: Value

Value is what the customer wants What they are willing to pay for (or endears you to

them if you are not charging them) What you are trying to produce Information that is used to create value

– Discovering What to Build– Discovering How to Build

In the context of the business

_1dd


Lean Thinking: The Value Stream

The flow from beginning to end of creating the value Often cuts across companies, virtually always cuts

across organizations It should look at the sequence of steps that transform

the original idea into value in the customers’ hands

_1dd


Business Driven Software Development

Business Driven Software Development is where the Business:Owns Scope and Incremental ReleasesContinually discovers and prioritizes increments by

highest business valueContinually manages and validates what the

development teams are producing


Glossary

Minimum Marketable Feature – Increment of realizable business value; decomposed from projects, comprised of business capabilities.

Business Capability – business functionality ‘supporting’ the business and/or provides value to our customers

Business Feature – an increment of business value that is comprised of slices of business capabilities.


Key Business Roles

Role ResponsibilitiesSponsor Ultimately accountable for

project/program success; Sets the vision, direction and priorities; Dedicates resources and assigns Product Owner

Product Owner Defines, Tests, and accepts product; sets priorities based on business value; accountable for the realization of vision and business benefits

Business Technology Lead / SMEs

Facilitates continuous planning to front-run teams; provides knowledge of business processes, products and services; defines requirements / scenarios; executes acceptance tests; manages implementation, business acceptance, elevation and transition.


We Have Two Pipelines

Selecting what to work on Developing It

Give Feedback

Fast – Flexible - Flow

_1s


Business Driven Software Development

4 Stages (containers)1) Business Portfolio2) Business Product Portfolio (MMFs)3) Release Product Backlog4) Sprint Backlog(s)


Business Portfolio – Container 1

Business Product Portfolio - MMF’s

Inputs: Prioritized Projects, budgets

Outputs: Release goals, MMFs


Business Value – Financial Institution (example)

Grow / Retain Assets Improve Operations Reduce Cost Compliance Mitigate Risk


Minimum Marketable Features – Container 2

Business Product Portfolio - MMF’s

Inputs: Prioritized Projects, budgets

Outputs: Release goals, MMFs


Decompose MMFs into Business Features


Release Product Backlog – Container 3

Release Product Backlog

Inputs: Release Goals, Prioritized MMFsOutputs: Scope of Effort, Refined Prioritized Business Features (Scenarios/personas), Release Plan, User Stories for team(s)


Release View cont’d.


Business Planning

Submit to Team Design Define

• Minimal Marketable Feature (MMFs) prioritized by Business Value

• Prioritized Business Features

• Scenarios / Personas• Validation approach &

Acceptance Criteria

• Business Capabilities• Workflows• Process models / maps• Scenarios

• Define Goals• Business Value criteria• Success Metrics• Message Map• Segments / audience• OBT & Budget

WhyWhatHow

Product Owner & Customer Team Business Team Business Sponsor / Manager


Example

Whiteboard


Do You Need to Know the Cost in Order to Prioritize?

Business value should be identified without cost;

Whether it is prioritized (sequenced) will depend on cost; H-L estimates would be utilized to determine ROI


What Is “The Product”?

The product is the long term value goal of the business The releases are the interim rollouts of this value to the

customers Projects are the means of organizing the delivery of one

or more releases


Think Products, not Projects

Projects Up-front funding Scope fixed at onset Success = cost/schedule/scope Team disbands at completion Documentation tossed

over-the-wall to maintenance

Products Incremental funding Scope expected to evolve Success = profit/market share Team stays with product Team uses its own

documentation

Start of Project

Completion

Maintenance

ConceptFeasibility

Internal Release

Alpha Release

Beta Release

First Production Release

Major Release

Dot upgrade

Short Term Thinking

Lasting Value


Product Development Staffing

Intact teams invested in the product’s success– Long term domain learning– Long term software understanding – Team members learn to work well together

Product Development Scheduling– Product Champion / Product Manager– Regular convergence points (gates)– Long term release schedule


Think Products, Not Projects

Value-Based Decisions– All requirements are not created equal

Learning-Based Processes– Deploy early, deploy often

Long Term Thinking– Design for maintainability

Global Optimization– Software, all by itself, is useless


Product View: All Types of Development

All work is prioritized and done by the same team(s) New functionality Enhancements Maintenance Defects Change Management


Project Priority Challenges

Project-Driven Approach

Can we do this?


Project View: By Project Business Value

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Delivery Plan Feature Burn Up10/07 04/084Q07

Features

The project has been prioritized. Making good progress on completing features in release.


Product Portfolio View: By Business Value

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Feature Burn Up by Business Value

% C

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Features

Same project, within program, sorted by business valueQ: Why is so much work being spent on lower priority features?


Break



Product Backlog Management

Low Cost

Speed

Quality


We Have Two Pipelines

Selecting what to work on Developing It

Give Feedback

Fast – Flexible - Flow

_1s


Basic Agile Flow

s

*Sprint = Iteration


Key Roles

Role ResponsibilitiesProduct Owner Business Value, Priority & Sequencing for

incremental delivery, Business ROI, and validation

Technical Owner Project Delivery of software solution; Represents the system integrity and system evolution; Leverages the process for achieving the project objective

Scrum Master/Agile PM Ensures the process is understood & followed; Facilitates the teams efficiency and health; ensures visibility on progress

Whole Team Produces and delivers the product


Responsibilities of a Product Owner

Determine what Stakeholders Want Decide what They Actually Get Drive the Team at a Sustainable Pace Write Stories Representing This Explain The Stories to the Team Approve the Functional Tests Validate That We Got What We Wanted Release the Product

These responsibilities are often separated into different people– Business people, Customer SMEs,– Analysts and Testers


Iterative vs. Incremental

Incremental development– Smaller ‘chunks’ at a time (based on business value ROI)

Iterative development– Solution evolved based on inspection and refinement

Whole Teams – all skills needed for discovery, development, & validation of software solution

Focus on speed of delivery– All efforts are primarily on current increments


Focus on Business Evolution vs. System Evolution

Example - whiteboard


Product Backlog

A constantly evolving, prioritized, collection of business and technical functionality that needs to be developed into a system (Use Cases, Stories, Tasks, Features…)– Really only four priorities: frontburner, backburner, fridge, and freezer

Initial elements of Functional Requirements are Features Features are fleshed out and decomposed into Stories/Tasks Can use a WBS to organize and find other Stories (now or later)

– Functional Architecture Stories are added (refactoring,…)– Team Stories are added (infrastructure, process,…)– Business Stories are added (documentation, training, …)

Stories are Sized Stories are chosen to expand based on business value

– Business priority– Architectural interest– Technical Risk

All Stories/Tasks are sized by those who do them…


Considerations / Questions

New application vs. enhancement? New technology? To our Company? To Team? What skills do I need? And who… from external groups? Identify ‘Tent Poles’? External Vendor dependencies? Special security risks? Business team with understanding? Budget gaps? Or constraints? Schedule? SI initiatives?


Technology Precision


Transition to Product Backlog / Release Planning


Work Breakdown Structure (WBS)

Login

Withdraw Cash

DepositCheck

…

TransferFunds

Refresh CashDrawer

ATM Project

Team BusinessProduct

Management

TeamTraining

Dev/SCM/TestEnvironments

DevProcess

…

AppFramework

Tools

MaintenanceDocs

Sales Spt

MarketingSupport

User Training

User Docs

…

Structure

Conversions

Rewrites

Refactorings

…

BusinessFramework

AdaptProcesses

Function

DomainModel


Sprint Backlog(s) – Container 4

Container 4 – Sprint Backlog(s)

Inputs: Priority sequenced User stories, next priority business featuresOutputs: Validated completed user stories and next sprints’ prioritized user stories


Teams Pull from Business Needs

Build Defined Undefined

• Build product• Use Agile methods for high

quality and responsiveness

• Marry features with system evolution on how to build them

• Perform detailed design

• Discovery of what is valuable

• How to incrementally achieve this value

• Features defined at a conceptual level

WhyWhatHow

Customer / User Feedback

Team Business Owner & Tech owner Business Owner


Things to Look For

Is ‘Done’ on stories achievable within a sprint? How often does the team adjust estimates? (size) How often does the Top-line change? Are all risks visible? Meeting the sprint commitments? Pace?


Is it Complete?

All work is represented All dependencies are noted All risks uncovered – stories / tasks created to mitigate All discovery managed – stories / tasks

How long (in sprints) does it take to complete your Product Backlog? Is it ever complete?


Making It Visible

Risks Issues Uncertainties Impediments Dependencies

Should be known and shared between and among teams

Mitigate with Stories in the Backlog


Burn-Up Chart to Show Progress

Same data as erstwhile Burn-Down chart Clearer to see what happened

Sprint Burn Up Chart

0

20

40

60

80

100

120

140

160

180

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Days in Sprint

Sto

ry P

oin

ts/T

asks


Sprint 4: Feature Burn Up by Release

This graph shows– Num features

actively in work– Swarming well on

incremental delivery?

Q: In Sprint 4, likely to succeed in release?– Why so many

activities for future releases?

FEATURES

% C

ompl

ete

Business view: Feature completion


Sprint 5: Refocused Based on Priorities

In Sprint 5, Product Owner refocuses team based on business value priorities– Increases

likelihood of success in earlier releases

– Less work on features for future releases

FEATURES

% C

ompl

ete

high Business Priority l low

Business view: Feature completion by priorities


Product Backlog Topline – Sprint 4

Actual to Estimated Story Points Burn-Up

0

200

400

600

800

1000

1200

1400

1600

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Sprint

Sto

ry P

oin

ts

Actual Burn-Up Estimated Burn-Up Top Line

1472

1460, Security Depository variance

Feb’07

May 2007 complete

August 2007 committed

Dec’07 Sep’08

Nov. 2007 Planned

138 point short fall

1465, May Elevation variance

86 April 7, 2023

Question and Answer



Thank You!

… and following is more to help you plan your next steps


Resources

Resources: www.netobjectives.com/resources – Webinars/Training Videos (PowerPoint with audio)– Articles and whitepapers– Pre/post course support Supporting materials– Quizzes– Recommended reading paths

Blogs and podcasts: blogs.netobjectives.com Annotated Bibliography After-Course Support (students only) Additional Training Two User Groups

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Join our e-mail list to receive regular updates and information about our resources and training of interest to you


Bibliography

Science of Lean-Thinking– Managing the Design Factory, Don Reinertsen– Principles of Product Development Flow: Second Generation

Lean Product Development, Donald Reinertsen– Lean Thinking: Banish Waste and Create Wealth in Your

Corporation, Revised and Updated, James Womack, Daniel Jones Lean Management

– Leader’s Handbook: Making Things Happen, Getting Things Done, Peter Scholtes

– Creating a Lean Culture: Tools to Sustain Lean Conversions, David Mann

Lean Learning– Managing to Learn, John Shook


Net Objectives Services

Training in Sustainable Product DevelopmentNet Objectives offers the most comprehensive Lean-Agile training in the world. Our offerings include Lean, Agile Analysis, Scrum, Design Patterns, Test-Driven Development, and Lean-Agile Testing.

Our approach is a blend of principles and practices to provide a complete team and/or enterprise wide training solution.

Certification Programs by Net ObjectivesNet Objectives offers certification programs that provides a road-map of knowledge as well as resources to get there.• Scrum Certification• Scrum Master Certification• Product Owner Certification

Net Objectives is not affiliated with the Scrum Alliance

Assessment ServicesAn effective way to embark on an enterprise level transition to Lean-Agile methods is to start with an assessment of where you are, where you want to go and options on how to get there that are right for you and your budget.

Lean-Agile CoachingWhile training provides foundational knowledge and is a great jump start, coaching is another effective way to increase the abilities of teams.

Our coaches work with your teams to provide guidance in both the direction your teams need to go and in how to get there.

Coaching provides the knowledge transfer while working on your own problem domain.


Best Practices Curriculum

Tester

Technical

Senior Management

IT Management

Business Management

Analyst

Process

Exec Mgmt

IT Mgmt

Business Mgmt

Analyst

Process

Lean Agile Overview for

Leaders

Implementing Scrum for Your Team

OR

Implementing Agile

Development With VSTS for Agile Teams

Agility for Managers (if not taking

Implementing Scrum for Your Team course)

Lean Software Development

For Management

Scrum Master Practitioner

Scrum Master Certification

By Net ObjectivesLean Software

Development

Design Patterns for Agile

Developers

Sustainable Test-Driven

Development Emer

gent

Des

ign

Advanced Software

Design

TDD Database Boot Camp

Business Product Owner

Advanced Agile

Lean-Agile Testing

Practices(if not taking

Implementing Scrum for Your Team course)

Effective Object-

Oriented Analysis and

Design(if needed)

Lean-Agile Enterprise

Release Planning

Tester

Acceptance Test-Driven

Development

Developer

Technical Training: C++, C#, Java

Agile Planning and

Estimating with User

Stories

OR


A Top 5 CourseA New Course

Net Objectives Courses

Lean Software Development– Lean Software Development for Management– Lean Software Development– Lean-Agile Software Development

Agile/Scrum– Implementing Scrum for Your Team– Implementing Scrum for Multiple Teams– Scrum Master Certification by Net Objectives– Lean-Agile Enterprise Release Planning– Agile Planning and Estimating with User Stories– Agile Life-Cycle Management with VersionOne– Product Owner Certification by Net Objectives– Implementing Agile Development with Microsoft™

Visual Studio Team System™

Agile Software Development– Design Patterns Explained– Emergent Design: Effective Agile Software

Development– Design Patterns for Agile Developers– Sustainable Test-Driven Development– Acceptance Test-Driven Development– TDD Database Boot Camp– Advanced Software Design– Lean-Agile Testing Practices– Test-Driven ASP.NET– Effective Object-Oriented Analysis and Design

For more information, see: www.netobjectives.com/training

Date post:	14-Sep-2014
Category:	Technology
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