Agile as a Disrupter May 2017 Terrance Knecht

Agile as a Disrupter May 2017 Terrance Knecht MBA, SAFe SPC 4, CSP, PMI-ACP, PMP, CSM, CSPO, CGEIT, CISSP, ITIL, COBIT ZS Associates Los Angeles | +1 805 413 5900

PART I (Agile is Fun) © 2015 ZS Associates | CONFIDENTIAL − 2 − PMI Presentation 02

Agile as a Disrupter § What is Agile/Scrum § Scrum Roles and Responsibilities – The Scrum Journey § Scrum Concepts Deep Dive § Information Radiators § Summary © 2015 ZS Associates | CONFIDENTIAL − 3 − PMI Presentation 02

120 seconds to Scrum! © 2015 ZS Associates | CONFIDENTIAL − 4 − PMI Presentation 02

Agile versus Waterfall A Philosophy Change Waterfall Fixed Requirements © 2015 ZS Associates | CONFIDENTIAL Resources & Time Value Driven Plan Driven Estimated Agile Resources & Time Features The plan creates cost/schedule estimates Release themes and feature intent drive estimates − 5 − PMI Presentation 02

When to use Agile? © 2015 ZS Associates | CONFIDENTIAL − 6 − PMI Presentation 02

Agile Manifesto – February 2001 • • © 2015 ZS Associates | CONFIDENTIAL Four Values of Agile Individuals and interactions over processes and tools Working software over comprehensive documentation Customer collaboration over contract negotiation Responding to change over following a plan − 7 − PMI Presentation 02

Scrum Manifesto – February 2001 Twelve Principles of Agile – Part 1 • • • © 2015 ZS Associates | CONFIDENTIAL Satisfy the customer by early delivery of valuable software Welcome changing requirements Deliver working software frequently Business people and developers work together Best is face-to-face conversation Working software is the primary measure of progress Sustainable development Continuous attention to technical excellence Attention to Technical Debt enhances agility Simplicity The best results from self-organizing teams Team reflects on how to become better − 8 − PMI Presentation 02

Agile Family § Agile is a mindset more than a single methodology which the concepts in the Agile Manifesto § There are several Agile methodologies including: © 2015 ZS Associates | CONFIDENTIAL − 9 − PMI Presentation 02

Agile as a Disrupter § What is Agile/Scrum § Scrum Roles and Responsibilities – The Scrum Journey § Scrum Concepts Deep Dive § Information Radiators § Summary © 2015 ZS Associates | CONFIDENTIAL − 10 − PMI Presentation 02

Scrum Roles and Responsibilities § Owns the Product Budget Scrum Team Stakeholders Product Owners should have frequent interactions with stakeholders 5 -9 members § Keeps the team moving forward § Works on process improvements with the team § Remove impediments Business Owner Scrum Master Sprints Product Owner Development Team § Prioritizes the Product Backlog with stakeholder input § Responsible for maximizing the value of the product § Self Organizing § Determines the Product Increment © 2015 ZS Associates | CONFIDENTIAL − 11 − PMI Presentation 02

Getting ready for a Scrum project and want to learn what your journey looks like? Let’s look at the 5 events and 3 artifacts of Scrum Daily Scrum Product Vision Product Backlog Sprint 1 to 4 Weeks Sprint Backlog and Goal Sprint Retrospective Sprint Review Product Increment Sprint Planning To the Next Sprint © 2015 ZS Associates | CONFIDENTIAL − 12 − Scrum Training Presentation 03 -03 -2016_ms

Getting ready for a Scrum project and want to learn what your journey looks like? Let’s look at the 5 events and 3 artifacts of Scrum Daily Scrum There are 5 events…. . Product Vision Product Backlog Sprint 1 to 4 Weeks Sprint Backlog and Goal Sprint Retrospective Sprint Review Product Increment Sprint Planning To the Next Sprint © 2015 ZS Associates | CONFIDENTIAL − 13 − Scrum Training Presentation 03 -03 -2016_ms

Getting ready for a Scrum project and want to learn what your journey looks like? Let’s look at the 5 events and 3 artifacts of Scrum Daily Scrum …and 3 artifacts. Product Vision Product Backlog Sprint 1 to 4 Weeks Sprint Backlog and Goal Sprint Retrospective Sprint Review Product Increment Sprint Planning To the Next Sprint © 2015 ZS Associates | CONFIDENTIAL − 14 − Scrum Training Presentation 03 -03 -2016_ms

HOURS Sustainable HOURS DURATION SPRINT 1 © 2015 ZS Associates | CONFIDENTIAL SPRINT 2 − 15 − SPRINT 3 SPRINT 4 Scrum Training Presentation 03 -03 -2016_ms

Agile as a Disrupter § What is Agile/Scrum § Scrum Roles and Responsibilities – The Scrum Journey § Scrum Concepts Deep Dive § Information Radiators § Summary © 2015 ZS Associates | CONFIDENTIAL − 16 − Scrum Training Presentation 03 -03 -2016_ms

Building A Scrum Project While there are many pieces to the Scrum environment, they are all designed to allow the Scrum team to quickly move forward by only investing the minimum time needed to be good enough to move forward quickly User Stories Estimates Time Boxing Sprints Releases Meeting Facilitation © 2015 ZS Associates | CONFIDENTIAL − 17 − Scrum Training Presentation 03 -03 -2016_ms

User Story Is v The Building Block of Agile v A small chuck of business functionality (4 to 40 hours to accomplish) v FORMAT: As a <type of user>, I want <some feature>, so that <reason> v Details and Estimate will evolve through Progressive Elaboration as the User Story progresses along the SCRUM JOURNEY USER STORY As a Claims Processor, I (Mary) want the ability to create a note so that I can refresh my memory during a subsequent call Product Backlog of User Stories As a user, I want to have a flat phone that can wrap around my wrist like a watch As a user, I want to be able to have an exterior color that can be changed by pressing a button © 2015 ZS Associates | CONFIDENTIAL − 18 − Stories are decomposed into tasks at Sprint Planning and assigned to a developer Developer Tasks Create flexible phone casing Create flexible phone display Program ability to colorized exterior PMI Presentation 02

Process for Defining User Stories § Three C’s o Use a Card – just enough text to convey the idea o Have a Conversation • Details of requirements from User Story Workshop, Release Planning, Sprint Planning and other points along the way • Identify “DONE” as a list of what needs to be completed to be accepted by the user and is placed on the back of the card o Get Confirmation – review of results for DONE – at Sprint Review § User Story Sources – In order of occurrence o Project Charter & SOW o Business Owner/Sponsor o Product Owner o Stakeholders o Scrum Team o As the project evolves (progressive elaboration) © 2015 ZS Associates | CONFIDENTIAL − 19 − Scrum Training Presentation

Guiding Principles for Developing Effort Estimates for User Stories § Focused on reducing the time spent estimating § Participatory § Needs the person who does the work § Not perfect and will refine over time § Progressive Elaboration as project moves forward © 2015 ZS Associates | CONFIDENTIAL − 20 − Scrum Training Presentation

Story Points § Story Points are one possible unit of measure for User Stories o Story Points are an Abstraction o Story Points are relative estimates o Fibonacci Sequence (0, 1, 2, 3, 5, 8, 12, 21) – used in several estimation systems to recognize that estimates are inexact o Story Points are only consistent within a single project © 2015 ZS Associates | CONFIDENTIAL − 21 − Scrum Training Presentation

Estimation Approaches User Story estimates evolve into more exact amounts as the project progresses (Progressive Elaboration). Different tools are used as more refined estimates are needed because we are focused on reducing the time spent on the activity § Rough Estimates (early in project) o Affinity Estimation o T-Shirt Estimates § Refined Estimates (later in project) o Planning Poker o Heuristic (expert knowledge based) o Parametric (calculation based) § Hours o At Sprint Planning when User Stories are broken down to tasks © 2015 ZS Associates | CONFIDENTIAL − 22 − Scrum Training Presentation

Planning Poker Estimation Approaches T-Shirts Affinity US 1 US 7 US 9 US 8 US 3 US 2 US 6 US 4 US 5 US 8 Parametric 50 items X 20 Story Points = 1000 Story Points © 2015 ZS Associates | CONFIDENTIAL − 23 − Scrum Training Presentation

Time Boxing (and how do things fit together) § Time Boxing brings order to the Scrum approach § Agile believes that things will change during the course of the project so the amount of time for an individual activity is restricted because focused on reducing the time spent on activities § Events (Meetings, Reviews, Retrospectives, Sprints) in Agile are Time Boxed: they are given a set time frame in which to be accomplished § If a User Story is not completed by the end of a Sprint, then the User Story goes into the Product Backlog to be prioritized by the Product Owner for the next Sprint or a later Sprint, or never… § Save time to build value! © 2015 ZS Associates | CONFIDENTIAL − 24 − Scrum Training Presentation

User Stories Add Up To A Sprints (a development cycle) are set at 1 to 4 weeks. The number of User Stories assigned to a Sprint is HOW MANY WILL FIT in the Time Box User Story 4 Sprint Time Box (Fixed Capacity) © 2015 ZS Associates | CONFIDENTIAL User Story 1 − 25 − User Story 5 User Story 2 User Story 3 PMI Presentation 02

Sprint Types Most Sprints deliver value to the Business Owner in the form a completed User Stories and a Product Increment. However, there may be specialized Sprints needed to support the project which do not deliver value directly to the Business Owner Sprint Type Sprint 0 Usage Set the stage for development Architectural Spike Dedicated to “proof of concept” ; explore the viability of an approach; or “fast failure” Risk-Based Spike Investigate, mitigate or eliminate risk (an issue or threat to the project) Hardening Prepare the Product (Increment) for the Production Environment (wrap up) Refactoring Clean up code (preventive maintenance) to reduce time needed to make additional enhancements (this function may be part of a Value Based Sprint) – Technical Debt © 2015 ZS Associates | CONFIDENTIAL − 26 − Scrum Training Presentation

There a variable number of Sprints in a Release The Release dates and the composition of a Release (what User Stories that are in the Release) are determined by the Product Owner PROJECT RELEASE 1 S 2 S 3 S 4 RELEASE 2 S 5 S 6 S 7 S 8 S 9 S 10 S 11 SPRINTS © 2015 ZS Associates | CONFIDENTIAL − 27 − PMI Presentation 02

Story Map is the Foundation of the Release Plan (Project Plan)_ Backbone US US Sequence Walking Skeleton Optionality Less optional US US US More optional US US US US US US US US Subsequent releases © 2015 ZS Associates | CONFIDENTIAL − 28 − PMI Presentation 02

Meeting Facilitation Approaches The Agile approach is to meet face to face but reduce the length and detail of a meeting – especially in decision making. Agile approach is to move quickly and make decisions at the latest possible time without jeopardizing the deliverable § § § Time Boxing Standup Meeting Talking Token Simple Voting Thumbs up, down, sideways Fist of Five Voting © 2015 ZS Associates | CONFIDENTIAL − 29 − Scrum Training Presentation

A Few Review Terms § User Story § Story Point § Story Map o Backbone – User Stories Needed to function o Walking Skeleton – User Stories needed for MVP § Minimal Viable Product (MVP) § Technical Debt § Sustainability © 2015 ZS Associates | CONFIDENTIAL − 30 − Scrum Training Presentation

Agile as a Disrupter § What is Agile/Scrum § Scrum Roles and Responsibilities – The Scrum Journey § Scrum Concepts Deep Dive § Information Radiators § Summary © 2015 ZS Associates | CONFIDENTIAL − 31 − Scrum Training Presentation

Information Radiators § “Information Radiator” is Agile’s term for highly visible displays of information (e. g. , Kanban, Burnup Chart, Burndown Chart, etc. ) § Rather than spending time on status reports, individuals are asked to just look around! § Someone needs a status and cannot come to the room, take a picture and sent the picture to them! © 2015 ZS Associates | CONFIDENTIAL − 32 − PMI Presentation 02

Kanban “Signboard”; Can Support Scrum Or Be Its Own System § Five principles o Visualize the workflow o Limit WIP (work in progress) o Manage flow o Make process policies explicit o Improve collaboratively (3) (6) (3) (2) § Processes (as a system) o Pull system o Work In Process Limits © 2015 ZS Associates | CONFIDENTIAL − 33 − Scrum Training Presentation

Burndown Chart What When How • • A Burndown Chart is a graphical representation of work left to do versus time An Ideal Work Remaining Line is a straight line from start to finish It is useful for predicting when all of the work will be completed and tracking project progress. Updated at Sprint completions The outstanding work (or backlog) is on the vertical axis, with time or Sprints along the horizontal axis Burndown Chart Work Remaining (Story Points) 3000 2500 2100 2000 Ideal Work Remaining Line 1950 1500 Actual Work Remaining Line 1200 1000 “As of sprint 3, project is estimated to finish by Sprint 6” 500 0 0 1 2 3 4 5 6 7 8 Sprints © 2015 ZS Associates | CONFIDENTIAL − 34 − PMI Presentation 02

Velocity Chart What When • • Velocity is a measure of a team’s capacity for work per Sprint • How Measured at the end of each • Sprint Velocity usually varies the most in the first few Sprints and then begins to stabilize The completed work per Sprint is on the vertical axis, with time or Sprint along the horizontal Velocity Chart 750 Story Points Completed per Sprint 800 700 Max Velocity = 750 Pts/SP 600 500 400 300 150 200 100 Min Velocity = 150 Pts/SP 0 1 © 2015 ZS Associates | CONFIDENTIAL 2 3 4 5 Sprints − 35 − 6 7 8 9 PMI Presentation 02

Agile as a Disrupter § What is Agile/Scrum § Scrum Roles and Responsibilities – The Scrum Journey § Scrum Concepts Deep Dive § Information Radiators § Summary © 2015 ZS Associates | CONFIDENTIAL − 36 − PMI Presentation 02

Agile/Scrum Resources § SCRUM ALLIANCE is a nonprofit membership organization that encourages and supports the widespread adoption and effective practice of Scrum. o https: //www. scrumalliance. org § AGILE ALLIANCE is a nonprofit organization with global membership, committed to advancing Agile development principles and practices https: //www. agilealliance. org § SCRUM. ORG global membership, committed to advancing Agile development principles and practices © 2015 ZS Associates | CONFIDENTIAL − 37 − PMI Presentation 02

PART II © 2015 ZS Associates | CONFIDENTIAL − 38 − PMI Presentation 02

Agile as a Disrupter § Scrum of Scrums § Le. SS § SAFe § Planning § Budgeting § Auditing § Contracts © 2015 ZS Associates | CONFIDENTIAL − 39 − PMI Presentation 02

Raise Scrum to a Higher Level – Scrum of Scrums § How do we use Scrum on a large project with a team limited to nine persons? § If we divide the team into parts then there will be problems: o Lack of a unified view of the product o Redundancy of work (two teams implementing the same phase of the scope) o Communication failure - Integration Hell - (how to integrate different parts of a Sprint developed by different teams) o Dependencies between tasks of different teams lead to complex change management © 2015 ZS Associates | CONFIDENTIAL − 40 − PMI Presentation 02

Scrum of Scrums § Establish independent Scrum teams: Product Owner, Scrum Master and Development Team. § Teams are composed of individuals, and the teams are different - Each team has its own velocity and production capability. § Align releases in a time-box while allowing the teams to have as many Sprints as needed. § Along with each team having its own Daily Scrum, there is a Daily Scrum of Scrums meeting where representatives of each team can align their issues and objectives. © 2015 ZS Associates | CONFIDENTIAL − 41 − PMI Presentation 02

© 2015 ZS Associates | CONFIDENTIAL − 42 − PMI Presentation 02

Agile as a Disrupter § Scrum of Scrums § Le. SS § SAFe § Planning § Budgeting § Auditing § Contracts © 2015 ZS Associates | CONFIDENTIAL − 43 − PMI Presentation 02

Agile Across Multiple Projects § #1. Le. SS – Large Scale Scrum o Less formal than SAFe (the alternative) o Built on Scrum teams: self-managing, cross functional, co-located and long lived o Product Owner sits at the top of the pyramid o Le. SS - minimum organization group for 8 or fewer Scrum teams • Product Group – implement all at one time o “Le. SS Huge” for over 8 teams – implement gradually • Create Requirements Areas • Each Requirements Area has one Product Owner • Each Requirements Area has 4 -8 teams © 2015 ZS Associates | CONFIDENTIAL − 44 − PMI Presentation 02

© 2015 ZS Associates | CONFIDENTIAL − 45 − PMI Presentation 02

Agile as a Disrupter § Scrum of Scrums § Large Scale Scrum (Le. SS) § Scaled Agile Framework (SAFe) § Planning § Budgeting § Auditing § Contracts © 2015 ZS Associates | CONFIDENTIAL − 46 − PMI Presentation 02

Scaled Agile Framework (SAFe) Embraces Lean-Agile Values House of Lean We are uncovering better ways of developing software by doing it and helping others do it. Through this work we have come to value: Relentless improvement Innovation Flow Respect for people and culture VALUE Agile Manifesto Individuals and interactions over processes and tools Working software over comprehensive documentation Customer collaboration over contract negotiation LEADERSHIP Responding to change over following a plan Value in the sustainably shortest lead time © 2015 ZS Associates | CONFIDENTIAL That is, while there is value in the items on the right, we value the items on the left more. − 47 − PMI Presentation 02

Three-level SAFe 4. 0 Expand one level © 2015 ZS Associates | CONFIDENTIAL − 48 − PMI Presentation 02

Nothing beats an Agile Team § Cross-functional, self-organizing entities that can define, build and test a thing of value § Applies basic scientific practice: Plan—Do—Check—Adjust § Delivers value every two weeks Plan Team 1 Do PDCA Team n © 2015 ZS Associates | CONFIDENTIAL Adjust − 49 − Check PMI Presentation 02

Except a Team of Agile Teams § Align 50 -125 practitioners to a common mission § Apply cadence and synchronization, Program Increments every 6 -12 weeks § Provide Vision, Roadmap, architectural guidance P D A C P D P D A C A C © 2015 ZS Associates | CONFIDENTIAL − 50 − PMI Presentation 02

With some Architectural Runway—existing code, hardware components, etc. that technically enable near-term business features Feature 4 Enablers build up the runway 4 Features consume it Feature 4 Architectural Runway must be continuously maintained Implemented now … Enabler … to support future features 4 Enablers extend the runway Architectural Runway © 2015 ZS Associates | CONFIDENTIAL − 51 − PMI Presentation 02

The ART takes a systems view Business Product Arch/ Mgmt Sys Eng. Program Hardware Software Testing Deployment AGILE RELEASE TRAIN © 2015 ZS Associates | CONFIDENTIAL − 52 − PMI Presentation 02

The Challenge Corporate planning, budgeting, auditing, and contracting are designed to work with Waterfall – not Agile – but there are solutions © 2015 ZS Associates | CONFIDENTIAL − 53 − PMI Presentation 02

Agile as a Disrupter § Scrum of Scrums § Large Scale Scrum (Le. SS) § Scaled Agile Framework (SAFe) § Planning § Budgeting § Auditing § Contracts © 2015 ZS Associates | CONFIDENTIAL − 54 − PMI Presentation 02

Organizational Planning in an Agile Environment § Three Values of Agile o Responding to change over following a set plan o Ideas and innovation over a hitting fixed targets o Dynamic utilization of funds over frozen fund allocation § Stopgap measures o Rolling budgets and rolling forecasts o Flexible budgets o Balanced goals (including innovation) § Goals o Corporate planning needs to be at the Value Stream level o Reduce Work In Progress (WIP) © 2015 ZS Associates | CONFIDENTIAL − 55 − PMI Presentation 02

Agile as a Disrupter § Scrum of Scrums § Large Scale Scrum (Le. SS) § Scaled Agile Framework (SAFe) § Planning § Budgeting § Auditing § Contracts © 2015 ZS Associates | CONFIDENTIAL − 56 − PMI Presentation 02

Organizational Budgeting in an Agile Environment § Budgeting paradigm must shift o A budget (at a low organizational level) can become a committed plan o Budgeting should be about making investment decisions o Venture capital style budgeting can fund Minimally Viable Products (MVP) § Budget at a higher level: budget at the Value Stream level. That is at the product domain o Ongoing funding by Value Stream o Funding by Product Roadmap § Organize for higher level budgeting o Development Council to make Go/No Go decisions at Value Stream level o Chief Product Owners charged with tactical allocation of funds o Product Owners responsible for managing Sprints © 2015 ZS Associates | CONFIDENTIAL − 57 − PMI Presentation 02

Agile as a Disrupter § Scrum of Scrums § Large Scale Scrum (Le. SS) § Scaled Agile Framework (SAFe) § Planning § Budgeting § Auditing § Contracts © 2015 ZS Associates | CONFIDENTIAL − 58 − PMI Presentation 02

Auditing Agile Projects § A senior finance systems manger observed in an article in the ISACA Journal that he does not have to audit less on Agile projects, but just differently. o Extensive documentation at the project beginning can be counterintuitive when solutions change as requirements become better defined (spending time on something that will change) o Agile has better transparency because false documentation does not cover up the real requirements o User stories allow for active updating of requirements (grooming) with auditor participation o Acceptance criteria (DONE) force the reduction of the size of user stories for clarity o User story scenarios can uncover gold plating o By participating in the Scrum team, auditors can add stories that provide additional system review © 2015 ZS Associates | CONFIDENTIAL − 59 − PMI Presentation 02

Auditing Agile Projects § Auditors need to adopt the way they perform audits § § o Ask for system log of executable specifications o See a more complete picture of user roles from user stories Consider abuse scenarios in user stories – build in rather than create a post development tests Use the Product Owner to champion compliance objectives Auditors can audit development teams on how well they do Agile – artifacts and ceremonies - which result in desired outcomes Outcome based approach rather than signoff based approach can focus review on “fit for use” © 2015 ZS Associates | CONFIDENTIAL − 60 − PMI Presentation 02

Agile as a Disrupter § Scrum of Scrums § Large Scale Scrum (Le. SS) § Scaled Agile Framework (SAFe) § Planning § Budgeting § Auditing § Contracts © 2015 ZS Associates | CONFIDENTIAL − 61 − PMI Presentation 02

Agile Contracts § Third value of the Agile Manifesto is “customer collaboration over contract negotiation” § A software project is not similar to a construction project (predictable) § Lawyers should learn Agile methodology to better serve their clients § Agile is NOT a zero sum game § Contracts that mandate or promote sequential life cycle development increase project risk § Avoid mandating change management boards © 2015 ZS Associates | CONFIDENTIAL − 62 − PMI Presentation 02

Agile Contracts § Story Points o Not a value measure o Relative effort concept o Have no independent meaning § Agile projects require a high level of participation by the client and this should be called out in planning and in the contract § Agile projects work best based on TRUST so build this as quickly as possible © 2015 ZS Associates | CONFIDENTIAL − 63 − PMI Presentation 02

Agile Contracts § Waterfall o Early specific requirement lists often backfire o Assumes the buyer knows exactly what she wants at the beginning § To have a Fixed Price Contract you need a Fixed Scope o Lack of trust between parties o Lack of understanding how software development works o Misunderstanding what scope means § Wrong Assumptions o The more detail in the up front scope, the better we understand each other o Well-defined scope prevents changes o Fixed scope is needed to fix price and time © 2015 ZS Associates | CONFIDENTIAL − 64 − PMI Presentation 02

Organizational Agile Contracts § While Agile can succeed with any type of contract, favorable contract types are: o Capped T&M Contract • Limits the risk of the Buyer at some point o Incremental Delivery Contract • Structured with regular inspection points (Sprint Reviews) where the buyer can make a Go/No Go decision and the buyer still has a product o Cost Targeted Contract • Buyer and Seller determine a realistic final price and both the Buyer and the Seller share in any savings or overage o Progressive Contracts • No scope defined beyond one iteration © 2015 ZS Associates | CONFIDENTIAL − 65 − PMI Presentation 02

CONCUSION § Agile is FUN § Agile can be scaled through the entire organization § Implementing Agile requires changes in how the organization operates. Not so Agile will work, but so the organization can take full advantage of Agile – especially to achieve productivity gains and reduced delivery time to market © 2015 ZS Associates | CONFIDENTIAL − 66 − PMI Presentation 02