Adaptive Project Management PART I Version Scope Agenda

Adaptive Project Management PART I – Version Scope

Agenda 1. TPM vs. APM 2. APM – framework 3. Version Scope

Traditional Project Management vs. Adaptive Project Management Approach Project goal TPM APM Getting the job on time, on Getting business results, budget and within requirements meeting multiple criteria Source: Dvir D. , Shenhar A. J. , Reinventing Project Management: The Diamond Approach To Successful Growth and Innovation, Harvard Business School Press, Boston, MA, 2007 3/51

Traditional Project Management vs. Adaptive Project Management Approach TPM APM Project goal Getting the job on time, on Getting business results, budget and within requirements meeting multiple criteria Planning Plan once at project initiation Plan at outset and replan when needed Source: Dvir D. , Shenhar A. J. , Reinventing Project Management: The Diamond Approach To Successful Growth and Innovation, Harvard Business School Press, Boston, MA, 2007 4/51

Traditional Project Management vs. Adaptive Project Management Approach TPM APM Project goal Getting the job on time, on Getting business results, budget and within requirements meeting multiple criteria Planning Plan once at project initiation Plan at outset and replan when needed Project work Sequential Iterative Source: Dvir D. , Shenhar A. J. , Reinventing Project Management: The Diamond Approach To Successful Growth and Innovation, Harvard Business School Press, Boston, MA, 2007 4/51

Traditional Project Management vs. Adaptive Project Management Approach TPM APM Project goal Getting the job on time, on Getting business results, budget and within requirements meeting multiple criteria Planning Plan once at project initiation Plan at outset and replan when needed Project work Sequential Iterative Project control Identify deviations from plan and things back on track Identify changes and adjust the plan accordingly Source: Dvir D. , Shenhar A. J. , Reinventing Project Management: The Diamond Approach To Successful Growth and Innovation, Harvard Business School Press, Boston, MA, 2007 4/51

Traditional Project Management vs. Adaptive Project Management Approach TPM APM Project goal Getting the job on time, on Getting business results, budget and within requirements meeting multiple criteria Planning Plan once at project initiation Plan at outset and replan when needed Project work Sequential Iterative Project control Identify deviations from plan and things back on track Identify changes and adjust the plan accordingly Management style One-size-fits-all One size does not fit all Source: Dvir D. , Shenhar A. J. , Reinventing Project Management: The Diamond Approach To Successful Growth and Innovation, Harvard Business School Press, Boston, MA, 2007 4/51

Adaptive project framework People and interactions above processes and tools. Satisfactory product above extensive documentation. Cooperation with the client above formal arrangements. We appreciate the red part, but greater value has the green part. 5/51

Popular agile methods • Crystal Clear • Dynamic systems development • Extreme programming • Feature-driven development • Lean software development • Kanban (development) • Scrumban

6/51 Source: Wysocki R. K. , Effective Project Management. Traditional, Adaptive, Extreme, Wiley Publishing Inc. Indianapolis 2007 Adaptive project framework

Version Scope Prediction is very difficult, especially about the future. —Neils Bohr Define the problem before you pursue a solution. —John Williams, CEO, Spence Corp. After this lecture you should be able to: - describe the components of the Version Scope Phase - conduct a Conditions of Satisfaction process - write a Project Overview Statement for and APF project - develop a mid-level WBS - determine the number of cycles and cycle time boxes - prioritize version functionality and assign functionality to cycles

Two parts to version scope ØA defining part ØA planning part 12

Defining the Version Scope § Developing the Conditions of Satisfaction (COS) Determined by a one-on-one, real-time, face-to-face dialogue 13

Clarify Request Response Request Agree on Response Negotiate agreement and write Project Overview Statement

What Are Requirements? A requirement is something the product/project should do/produce or a quality that it must have.

Categories of Requirements • Functional (‘The service must accept a scheduled time and place for delivery’) • Non-functional ( ‘The product shall have a homemade appearance’ or ‘The product shall be packaged so as to be attractive to senior citizens’) • Global ( ‘The system shall run on the existing network’ or ‘‘The system must be scalable’) • Product/project constraints (‘The maximum system response time for any client-based transaction must not exceed 4 milliseconds’ or ‘The total cost plus five-year maintenance must not exceed $35 million’)

Clarify Request Response Request Agree on Response Negotiate agreement and write Project Overview Statement

Different Perspectives on Requirements

Who is Our Client? Good Client § § § Know what they want Know what it takes to deliver Work towards best solution Easy to work with Meaningfully involved Not So Good Client § § § Not sure of what they want Constantly change their mind Not interested in solving project problems Hard to satisfy Not very involved Project manager & team (PT) must satisfy the needs of both.

Defining the Version Scope § Developing the Conditions of Satisfaction (COS) § Writing the Project Overview Statement (POS) 20

Project Overview Statement P s S O A one-page description that is: ØA general statement of the project ØA reference for the planning team ØA decision aid for the project ØTo get management approval to plan the project

Contents of the Project Overview Statement

PROJECT OVERVIEW STATEMENT Example POS Project Name Project No. Project Manager Office Supply Cost Reduction PAUL BEARER Problem/Opportunity Our cost reduction task force reports that office supply expenses have exceeded budget by an average of 4% for each of the last three fiscal years. In addition an across the board budget cut of 2% has been announced and there is an inflation rate of 3% estimated for the year. Goal To implement a cost containment program that will result in office supply expenses being within budget by the end of the next fiscal year. Objectives 1. 2. 3. 4. Establish a departmental office supply budgeting and control system. Implement a central stores for office and copying supplies. Standardize the types and brands of office supplies used by the company. Increase employee awareness of copying practices that can reduce the cost of meeting their copying needs Success Criteria 1. 2. 3. 4. The total project cost is less than 4% of the current year office supply budget. At least 98% of office supply requests are filled on demand. At least 90% of the departments have office supply expenses within budget. No department office supply expense exceeds budget by more than 4%. Assumptions, Risks, Obstacles 1. Central stores can be operated at or below the breakeven point. 2. 3. 4. 5. Users will be sensitive to and supportive of the cost containment initiatives. Equitable office supply budgets can be established. Management will be supportive and consistent. The existing inventory control system can support the central stores operation. Prepared By Olive Branch Date 9/2/2014 Approved By Del E. Lama Date 9/3/2014

Defining the Version Scope § Developing the Conditions of Satisfaction (COS) § Writing the Project Overview Statement (POS) § Holding a Fixed Version Budget and Timebox 24

Planning the Version Scope § Developing the Mid-Level WBS 25

Generic version of mid-level WBS Source: Wysocki R. , K. , Effective Project Management. Traditional, Adaptive, Extreme, Wiley Publishing Inc. Indianapolis 2007

Case Study: PIZZA DELIVER QUICKLY § 4 Pizza Stores § Lost 30 percent of sales revenue § Competitor promoted a program that guarantees 45 -minute delivery service from order entry to home delivery § Owner is building „pizza factory” § Need software to: • Identify good factory location • Order Fulfillemnt

Case study: Mid-level WBS Home delivery system Order Entry to Order Fulfillment Process Request for Order Fulfillment Information Store Location System Gather Requirements

Task no. 1 • Define your project • Create mid-level WBS (at least three functions) Home delivery system Order Entry to Order Fulfillment Process Request for Order Fulfillment Information Store Location System Gather Requirements

Planning the Version Scope § Developing the Mid-Level WBS § Prioritizing the Version Functionality

Prioritizing the Version Functionality – criteria: § Risk: high-risk functionality has the highest priority and low-risk functionality has the lowest priority § Complexity: highly complex functionality has the highest priority and low-complexity functionality has the lowest priority § Duration: short duration functionality has the highest priority and long duration functionality has the lowest priority § Business Value: value has the highest priority and low business value has the lowest priority

Planning the Version Scope § Developing the Mid-Level WBS § Prioritizing the Version Functionality § Prioritization Approaches 1. Forced ranking 2. Must-Haves, Should-Haves, Nice-to-Haves 3. Q- Sort

Forced ranking

Must-Haves, Should-Haves, Nice-to-Haves F OR MUST HAVES SHOULD - HAVES OR NICE - TO - HAVES 20 %

Q - Sort

Task no. 2 • Prioritize functions in your project • Justify your choice Home delivery system Chosen criterion: Business Value - value has the highest priority and low business value has the lowest priority 2 3 Order Entry to Order Fulfillment Process Request for Order Fulfillment Information Store Location System 1 Gather Requirements

Planning the Version Scope § Developing the Mid-Level WBS § Prioritizing the Version Functionality § Prioritization Approaches § Determining the Number of Cycles and Cycle Timeboxes EXAMPLE TOTAL PROJECT DURATION: 15 WEEKS NUMBER OF CYCLES: 15 / 4 = 3 CYCLE TIMEBOXES: C 1: 1 – 6 WEEK C 2: 7 – 10 WEEK C 3: 11 -15 WEEK

Planning the Version Scope § Developing the Mid-Level WBS § Prioritizing the Version Functionality § Prioritization Approaches § Determining the Number of Cycles and Cycle Timeboxes § Assigning Functionality to Cycles

Assigning Functionality to Cycles ■ Based on the dependencies between functionality and the resources available, does this assignment make sense? ■ When you finish the first few cycles, will you have a working version of part of the final solution? ■ Can you improve on this assignment if you vary cycle length for the early cycles? ■ Does this assignment fully utilize your resources in the early cycles? ■ Are you practicing the core value to “deliver incremental results early and often”?

Assigning Functionality to Cycles - EXAMPLE Home delivery system 3 Order Entry to Order Fulfillment Process Store Location System TOTAL PROJECT DURATION: 15 WEEKS NUMBER OF CYCLES: 15 / 4 = 3 CYCLE TIMEBOXES: C 1: 0 – 6 WEEK C 2: 6 – 10 WEEK 2 Request for Order Fulfillment Information 1 Gather Requirements C 3: 11 – 15 WEEK

Task no. 3 • Determine the Number of Cycles and Cycle Timeboxes for your project and assign functionalities to Cycles. EXAMPLE Home delivery system 3 Order Entry to Order Fulfillment Process Store Location System TOTAL PROJECT DURATION: 15 WEEKS NUMBER OF CYCLES: 15 / 4 = 3 CYCLE TIMEBOXES: C 1: 0 – 6 WEEK C 2: 6 – 10 WEEK 2 Request for Order Fulfillment Information 1 Gather Requirements C 3: 11 – 15 WEEK

Planning the Version Scope § Developing the Mid-Level WBS § Prioritizing the Version Functionality § Prioritization Approaches § Determining the Number of Cycles and Cycle Timeboxes § Assigning Functionality to Cycles § Writing Objective Statements for Each Cycle

Afters this lecture you shoul be able to: - describe the components of the Version Scope Phase conduct a Conditions of Satisfaction process write a Project Overview Statement for and APF project develop a mid-level WBS determine the number of cycles and cycle time boxes prioritize version functionality and assign functionality to cycles

6/51 Source: Wysocki R. K. , Effective Project Management. Traditional, Adaptive, Extreme, Wiley Publishing Inc. Indianapolis 2007 Adaptive project framework

Thank you