Presenter Sally Elatta Agile for Government Part 1

Presenter: Sally Elatta Agile for Government Part 1 Why Adopt Agile?

About Me • Sally Elatta Sally@Agile. Training. com • President Agile Transformation Inc • Agile. Training. com | Agile. Videos. com | Agile. For. Government. com • Enterprise Agile Transformation Coach, Trainer and Speaker • Background: Java/. Net Software Architect • Certified Scrum Professional, Scrum. Master, IBM, Microsoft • Trained thousands and helped coach dozens of teams on Agile • Agile Expert for PMI. org Learning Community of Practice I am simply a transformer. Someone who is really passionate about transforming individuals, teams and organizations to doing what they do better. I believe in Servant Leadership as the way to lead change and create a culture of empowered collaborative high performing teams. 1 2 2

Our Questions Backlog What Problems Are We Solving? What is Agile? Does Agile Work? Show Me the Proof! Show Me Government Case Studies of Agile What are the Specific Government Challenges with Agile? Where Do I Learn More? 3 Copyright© Agile Transformation Inc 3

Workshop – Government Project Challenges e h t e r a k n i h t U What do YO h t i w s e g n e l l a h c real world g n i t u c e x e d n planning a ? s t c e j o r p v o G successful 4

Top Challenges/Drivers for Change Silos, handoffs, heavy processes, lack of trust/ communication Planning and estimating methods setup the project for failure Gov contracts attempt to fix everything upfront and mandate heavy processes Slow time to completion, too long to deliver Missing, incomplete, changing, ambiguous requirements No value measurement, only focus on cost measurement Lack of clear direction, no engaged customer, wasteful meetings Heavy engineering and testing processes, no automation Specialized roles, ‘not my task’ thinking Testing occurs at the end (too late) resulting in many defects Overproduction, working on wasteful features Lack of empowerment, low engagement and morale Copyright© Agile Transformation Inc 5

Global Project Failures Challenged and failed projects hover at 67% Big projects fail more often, which is 5% to 10% Of $1. 7 T spent on IT projects, over $858 B were lost • • 2010 33% 41% 26% 2008 32% 44% 24% 35% Year 2006 46% 29% 2004 1998 26% 1996 27% 16% 1994 0% Successful 15% 49% 46% 33% 40% 23% 28% 40% 53% 20% 18% 51% 28% 2000 19% 53% 34% 2002 $1. 8 31% 60% Challenged 80% 100% Failed Trillions (US Dollars) • $1. 4 $1. 1 $0. 7 $0. 4 $0. 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 Expenditures Standish Group. (2010). Chaos summary 2010. Boston, MA: Author. Sessions, R. (2009). The IT complexity crisis: Danger and opportunity. Houston, TX: Object Watch. Failed Investments 6

Failed Government Projects • The US Department of Defense canceled a Human Resources project after 12 years of wasted effort and 1 Billion dollars was written off costing every US taxpayer $100. (Thanks to CIO Vivak Kundra for doing so!) • Billion‑Dollar Flop: Air Force Stumbles on Software Plan: http: //bit. ly/14 YAa. M 0 53% of projects will cost 189% of their original estimates and deliver less that 42% of their original estimate. Standish Group Chaos Report Copyright© Agile Transformation Inc 7

Non-constructive strategies applied by IT project teams to stay “out of trouble” Note: 44% of respondents did either BRUF or change prevention 54% of respondents did at least one of the other strategies 8

WHAT IS AGILE? Copyright© Agile Transformation Inc 9

Agile is Value Driven Predictive Process (Waterfall) Constraints Requirements Cost Schedule The plan creates cost/schedule estimates Copyright© Agile Transformation Inc Cost Schedule Value/ Vision Driven Plan Driven Estimates Adaptive Process (Agile) 10 Features The vision creates feature estimates

The Agile Manifesto - 2001 The manifesto’s shared value statement: “We are uncovering better ways of developing software by doing it and helping others do it. Through this work we have come to value: Individuals & interactions Over Processes & Tools Working Software Over Comprehensive Documentation Customer Collaboration Over Contract Negotiation Responding to Change Over Following a Plan “That is, while there is value in the items on the right, we value the items on the left more. ” www. agilemanifesto. org 11

The Umbrella of Methods Kanban (Release Planning, Sprint and Iteration Planning, Daily Scrum, Sprint Demo and Retrospective. . etc) Copyright© Agile Transformation Inc (TDD, Automated Testing, Continuous Integration, Refactoring. . etc) 14 Limit Work in Progress (WIP) Optimize the Flow Make it Visible.

The Traditional Way Copyright© Agile Transformation Inc 15

Consider this. . ( ) Customer (Need) Functional Manager (Advocate) Commander (Advocate) Joint Staff (Funding) Service (e. g. Air Force) (Funding) Program Executive Officer (Oversight) Program Manager (Execution) Contracting Officer (Oversight/Execution) Copyright© Agile Transformation Inc 16

Consider this. . ( ) Contractor Project Manager Developer Tester QA User Copyright© Agile Transformation Inc 17

Beware The Spiral of Death! 18

The Agile Way r sit orem ipsum dolo ctetur amet, co nse orem ipsum dolor sit amet, co nse ctetur r sit orem ipsum dolo r sit t, co nse ctetur orem ipsum dolo ame ctetur amet, co nse orem ipsum dolor sit amet, co nse ctetur orem ipsum dolor sit amet, co nse ctetur Backlog Interested Copyright© Agile Transformation Inc Committed 19

Sprint 4 Sprint 3 Sprint 2 Sprint 1 The Agile Way orem ipsum dolor sit amet, co nse ctetur orem ipsum dolor sit amet, co nse ctetur Sprint N orem ipsum dolor sit amet, co nse ctetur Sprint is 1 – 4 Weeks 20

The Ceremonies Sprint Planning Sprint Backlog 3 5 8 3 q Create UI (5 hrs) q Code, Unit test validation logic (3 hrs) q User Acceptance Testing (2 hrs) Daily Scrum 2 What did I complete yesterday? What am I working on today? What is slowing me down? 8 2 13 3 1 Product Backlog Sprint Review Sprint Retrospective Worked Well 21 Needs Improvement

The Leadership Triangle Team Backlog Business Vision What? Why? How Process Facilitator Copyright© Agile Transformation Inc 22

The Agile Lifecycle Copyright© Agile Transformation Inc 23

Sample Point and Cost Burn Up Chart What is ‘Done’? How much did it cost me? Copyright© Agile Transformation Inc 24

Sample Backlog Copyright© Agile Transformation Inc 25

Sample NON – IT Backlog A - Vendor Selection A 1 - As a … I want to develop the RFP we will submit for vendor selection so that our needs and qualifications are shared with potential vendors. 1. 1 as a …. I want to develop/brainstorm the list of catagories to include in the RFP 1. 2 as a. . I want to identify the stakeholder departments affected so I can invite them 1. 3 as a. . I want to include questions and requirements from the ABC dept 1. 4 as a … I want to develop initial draft of RFT 1. 5 as a … I want to review the RFP and gain consensus on final draft A 2 - As a … I want to submit the RFP to the potential vendors so they can respond to it. A 3 - As a … I want to select our top vendor based on their RFP responses so we can move forward with the contracting processes. B - Contracting Copyright© Agile Transformation Inc 26

WHY AGILE? DOES IT WORK? Copyright© Agile Transformation Inc 27

Value Drivers Adapted from Version. One Copyright© Agile Transformation Inc 28 Frequent visibility into what is ‘Done’ Automate testing Focus on quality Inspect and adapt the plan Adaptability Iteration demos/reviews High customer engagement Continuous feedback Visual information radiators Risk Deliver small chunks Deliver frequently Deliver what is ‘Done’ Focus team on customer value (stories) Visibility Business Value Agile Value Proposition Adapt to customer changing needs Focus on delivering highest value ‘Just in time’ details

DATA OVERLOAD WARNING! • This next part will likely result in. . Copyright© Agile Transformation Inc 29

Comparing Success Factors by Method (Scale is from -10 to +10). 30

Bottom Line from Survey Data from 15183 respondents worldwide suggests consensus on 67% more productivity, 65% more Quality and 49% better on cost compared with traditional methods. Source : The Business Value of Agile Software Methods by Dr. F Rico, Dr. H Sayani, Dr. S Sone Page 89 Copyright© Agile Transformation Inc 31

Bottom Line from Case Studies 79 studies with quantitative data proves average ROI of 1872% ($20 return for $1 invested) for Agile - ROI is due to high productivity and high quality Source : The Business Value of Agile Software Methods by Dr. F Rico, Dr. H Sayani, Dr. S Sone Copyright© Agile Transformation Inc 32

ROI of Agile Methods vs. Traditional Source : The Business Value of Agile Software Methods by Dr. F Rico, Dr. H Sayani, Dr. S Sone Picture Souce: www. People 10. com Copyright© Agile Transformation Inc 33

Agile vs. Traditional Success Standish Group. (2012). Chaos manifesto. Boston, MA: Author. Agile Success 14% Success 42% Failed 9% Traditional Challenged 49% Failed 29% Challenged 57% 34

Agile vs. CMMI • • • Dozens of surveys of agile methods since 2003 100 s of Agile and CMMI case studies documented Agile productivity, quality, and cost better than CMMI Rico, D. F. (2008). What is the return-on-investment of agile methods? Retrieved February 3, 2009, from http: //davidfrico. com/rico 08 a. pdf Rico, D. F. (2008). What is the ROI of agile vs. traditional methods? Tick. IT International, 10(4), 9 -18. 35

Cost, Time, Staffing, Quality (QSM) • • • Analysis of 23 agile vs. 7, 500 traditional projects Agile projects are 54% better than traditional ones Agile has lower costs (61%) and fewer defects (93%) 2. 8 Before Agile 3. 00 After Agile 2. 25 F 0. 75 Project Cost in Millions $ 18 20 F 61% Lower Cost After Agile Total Staffing 2270 10 1250 Delivery Time in Months E Before Agile 2500 1875 24% Faster 39% Less Staff 5 15 5 After Agile 10 Before Agile 13. 5 Before Agile 11 15 1. 1 1. 50 18 20 After Agile 381 625 Cumulative Defects 93% Less Defects E Mah, Michael. QSM (2008). Measuring agile in the enterprise: Proceedings of the Agile 2008 Conference, Toronto, Canada. 36

Agility = Above Industry Performance • • • Study of 15 agile vs. non-agile Fortune 500 firms Based on models to measure organizational agility Agile firms out perform non agile firms by up to 36% Hoque, F. , et al. (2007). Business technology convergence. The role of business technology convergence in innovation and adaptability and its effect on financial performance. Stamford, CT: BTM Institute. 37

Version. One State of Agile Survey 2011 Benefits Realized from Agile Adoption Copyright© Agile Transformation Inc 38

Common Agile Practices Copyright© Agile Transformation Inc 39

Top Agile Value Drivers Source: Version. One, State of Agile Survey 2012 Copyright© Agile Transformation Inc 40

Not Expected, Source: Version. One, State of Agile Survey 2012 But Often Realized Copyright© Agile Transformation Inc 41

Barriers to Agile Adoption Source: Version. One, State of Agile Survey 2012 Copyright© Agile Transformation Inc 42

Agile Adoption – Future Predictions Gartner predicts that 80% of all software projects will move to Agile in the next couple of years. • PMI has put their full weight behind Agile which will lead to faster global acceptance and adoption of Agile. Copyright© Agile Transformation Inc 43

AGILE IN THE GOVERNMENT Copyright© Agile Transformation Inc 44

Industries Adopting Agile • • • 80% of worldwide IT projects use agile methods Includes regulated industries, i. e. , Do. D, FDA, etc. Agile now used for safety critical systems, FBI, etc. Industry Electronic Commerce Org Google Shrink Wrapped Primavera Health Care FDA Project Adwords Purpose Advertising Size · 20 teams · 140 people · 5 countries · 15 teams Project · 90 people Primavera Management · Collocated Metrics · 1, 838 User Stories · 6, 250 Function Points · 500, 000 Lines of Code · 26, 809 User Stories · 91, 146 Function Points · 7, 291, 666 Lines of Code m 2000 Blood Analysis · 4 teams · 20 people · Collocated · 1, 659 User Stories · 5, 640 Function Points · 451, 235 Lines of Code Case File Workflow · 10 teams · 50 people · Collocated · 3, 947 User Stories · 13, 419 Function Points · 1, 073, 529 Lines of Code Law Enforcement FBI Sentinel U. S. Do. D Stratcom SKIweb Knowledge · 3 teams · 12 people Management · Collocated · 390 User Stories · 1, 324 Function Points · 105, 958 Lines of Code Rico, D. F. , Sayani, H. H. , & Sone, S. (2009). The business value of agile software methods: Maximizing ROI with just-in-time processes and Rico, D. Ft. F. (2010). Lean and project management: For large programs and projects. Proceedings of the First International Conference on Lean documentation. Lauderdale, FL: agile J. Ross Publishing. Enterprise Software and Systems, Helsinki, Finland, 37 -43. 45

The FBI’s Sentinel Project Succeeds with Agile “After almost a decade of mismanagement and waste at the FBI (costing $597 Million), its CIO turned the agency's maligned case management implementation into an agile project. Two years later (and $99 Million), the system is live. This relative success, as well as the example of other federal agencies, shows that agile can work in Washington. ” - By Jason Bloomberg • Project: Sentinel came under it’s $451 Million revamped budget • Source: http: //bit. ly/PKayy. X Copyright© Agile Transformation Inc 46

Agile in the Government The US Army Software Radio was also a large multi-billion dollar Waterfall project saved by Agile methods in the 11 th hour. A small Agile team finished all the hardware and software at a fraction of the total budget delivering a complex system on time. Agile methods are now being used to complete the avionics software systems for both the F 35 and F 22. The Ministry of Defense, US Veteran Affairs, the UK Government Digital Service, in India, Australia and New Zealand have all demonstrated that Agile can work for Governments. Copyright© Agile Transformation Inc 47

Government Mandates for Agile • The Office of Management & Budget (OMB) and the Department of Defense (Do. D) have mandated that major IT programs adopt iterative delivery models. HR 2647 Section 804 of NDDA 2010 Copyright© Agile Transformation Inc 48

Agile Government – Really? ? • Department of Defense CIO Teri Takai’s new mission statement: • "To deliver agile and secure information capabilities to enhance combat power and decision-making. " • DOD looks to reduce overall spending by $500 billion over 10 years. • The GAO report profiles agile initiatives from the Department of Defense, NASA, the US Patent and Trademark Office, the VA and the IRS. • Source: http: //bit. ly/PMPTIa - Jason Bloomberg www. cio. com Copyright© Agile Transformation Inc 49

Government Leadership Support for Agile • Agile and iterative development is now backed by the top leaders in the Government: • Steven Van. Roekel: the new federal CIO calls on agencies to embrace modular development and “run our projects in lean startup mode” “Assemble agile teams to solve problems using rapid cycle, lean engineering principles” • Source: http: //bit. ly/PMPTIa Copyright© Agile Transformation Inc 50

Next Presentation Government Leaders - ‘HOW’ to Transform to Agile Copyright© Agile Transformation Inc 51

Learn More! Training Agile Overview for Government Leaders – 1 day Aug 13 th Real World Agile for Government – 3 days Aug 14 th – 16 th Free Resources www. Agile. Videos. com www. Agile. For. Government. com www. afei. org > ADAPT Group Contact Sally Elatta – Sally@Agile. Training. com Darin Plum - dcplum@gmail. com Michael Ballou - mikeblaa@gmail. com Copyright© Agile Transformation Inc 52

Get Engaged and Informed! • Download this presentation & giveaways : Agilefor. Governmemt. com/download • Learn Agile with www. Agile. Videos. com! • On-site and online Agile workshops: www. Agile. Training. com Sally@Agile. Training. com Twitter. com/sallyelatta Linkedin. com/in/elatta 53