agile governance

FROM GOVERNANCE TO PROJECT MANAGEMENT: SCRUM ?

Pierre E. NEIS

Pierre NEIS - 4th PM Congress

2

Agenda

1. Scope & Results: market expectations in terms of Governance

2. Agile Management Framework

3. Agile Governance: AgileEVM

4. Indexes & References


3

Scope

1. 06.2009 : Fedil-ICT and Centre de Recherche Public Henri Tudor Report « Gouvernance IT et rôle du CIO dans les entreprises luxembourgeoises : Etat des lieux et bonnes pratiques »

2. The Report « Improving IT Governance. Manage, control and monitor IT within the Business », pWc 2008


4

1 – Fedil-ICT / CRP HT

Conclusions of the Fedil-ICT et Centre de Recherche Public Henri TUDOR Report


5


Result : IT Governance should reflect the needs of business

The priority skills of the CIO are: IT needs analysis Arbitrate and select Managing IT Security

How?


6


Solution : « Integration and Alignment »

The business strategy and IT strategy are defined simultaneously

The CIO participates at the Executive Comittee

IT is the subject of a specific item in the agenda of the executive committee

Platforms enable communication and sharing between business and IT

Business requirements are formalized in business cases

How?


7

Conclusions du Rapport Fedil-ICT et Centre de Recherche Public Henri TUDOR

Solution: The Role of IT

IT projects are subjects to Project Management

Business is involved in IT projects

IT accompanying uses

The CIO set up a Quality Management

IT communicate

IT ensure the IT Security

How?


8


Solution: Role and Competencies of the Chief Information Officer

CIO promotes Innovation

CIO trains himself

CIO gets informed

How?


9


In 3 words:

Cooperation between Business and IT

IT Governance is a Project Management

The CIO is the Project Pilot


10

# 1 Result

IT switches into Project


11

2 –PricewaterhouseCoopers Report

« Improving IT Governance. Manage, control and monitor IT within the Business », pWc 2008


12

The Report « Improving IT Governance. Manage, control and monitor IT within the Business », pWc 2008

Gouvernance IT, a holistic framework!

More organizational Aspects : CobIT, CMMI, ITIL, ISO17799, ISO27001

Inefectiveness if no aligment between IT Governance and IT Operations

Critical factors to control : Technology enablement Communication & change

management Performance management &

benefits tracking


13


Expected benefits by adopting this approach

Governance/Operation alignment

communication & cooperation

Increased agility and

flexibility of IT

Change Reaction

Greater Value delivery Added Value

Reduced risks & cost (…)

through more responsible IT

resource

Team Building


14


Identify the organizational culture and conditions change


Getting the support of Senior Management and Vision

Set goals and achievable expectationsDefine a Benefits Management

Evaluate Maturity Level


15


Communication value as a Key Success Factor


Quick wins to deliver results and to gain greater acceptance of project

Don’t over-engineer IT Governance

Linking IT Governance with Business Key Themes


16

# 2 Results

Communication

Commitment & Vision

Agility + Flexibility

Reactivity to ChangeAdded Value

Team Building

Lightweight


17

Agility?


18

Agile Management Framework

1. Agile Manifesto2. Agile Concept3. Scrum4. Agile Management Framework


19

Agile Manifesto

People & Interactions• Working Software• Working with the

Customer• Reacting to Change

Processes & Tools• Extensive

Documentation• Contract Negotiations• Follow the Plan

More

LessPri

ori

tiza

tion


20

Wealth

Employee EngagementEmpowered, committed and

happy employees

Customer Satisfaction

Serve the Customer

Value Creation

Maximize ROI and optimize

cash flow

The Magic Triangle

Agile Manifestoobjecti

ves


21

Scrum

22

Doing well (Process)

Doing well (Product)

The Scrum Concept

Empowered

Involved

Just enough, Just in Time

Doing the Right Thing the Right Way + Product

+ Process

23

Self directed Teams vs. Traditional Organization

Self directed Teams

Traditional Organization

customer-driven management driven

multi-skilled workforceworkforce of isolated

specialists

few job descriptions Many Job DescriptionsInformation widely shared Information limitedFew levels of management

Many levels of Management

Whole-business focus Function/department focus

Shared goals Segregated goals

Seemingly chaotic Seemingly organizedPurpose achievement emphasis Problem-solving emphasisHigh worker commitment

High Management commitment

Continuous improvements Incremental improvements

Self-controlled Management-controlled

Values/principles based Policy/procedure based

Source: "Leading self-directed work teams“ by Kimball Fisher

SCRUM

24

Scrum: Scrum Process

Objectives:

Deliver a product per iteration

Quality is not negotiable

Velocity

Communication

Reactivity

Team Building

25

Agile Management Framework

The Agile Project Managers are concerned with two key performance indicators :

Backlog Size Velocity

Product Backlog = list of project requirements

Velocity = amount of backlog that the team can deliver in a Sprint / Iteration

Backlog Size ÷ Velocity per Sprint/Iteration = Number of Sprints/Iterations to deliver the Project

26

Scrum Planning Onion

Governance

Portfolio

Roadmap

Product

Release

Sprint

Day

Team + ScrumMaster

Product Owner

Chief Product Owner

CIO

Vis

ion

Road

ma

pA

dd

ed

Valu

e +

Velo

city

Concept

27

Scrum: the Artifacts

Product Backlog• Elaborate Vision

& make it implementable

• Contains Outstanding Works

Sprint Backlog• Contains all

activities necessary to sprint goal

Burndown Chart• Simple report

relating days in the Sprint and remaining the efforts in the Backlog


28

Agile Governance: AgileEVM

Project Portfolio Management with AgileEVM

Scrum: Metrics

Key Earned Value Management (EVM) – Concepts

AgileEVM Background

Expand AgileEVM to Portfolio

Source:Brent BARTO

N


29

Project Portfolio Management with AgileEVM

Objectives: We want to mesure the Outcome not the

Ouputs Business Value

Process Prioritization to maximize Business Value Efficient shipping to minimize costs Redistribution of resources when costs are

too high or profits too low.


30

Scrum: Metrics

Business Value and

riskSelf organizing,

cross-functional

teamsDefinition of Done

Potentially Shippable Increments

Velocity


31

Key Earned Value Management (EVM) Concepts

Integrates Cost and Schedule Performance

Financial forecasts based on actual cost : Consumed Costs, Consuming Rate, Time

Allocation, etc.

Unlike the velocity, the Actual Cost is the cumulative Team Costs

Follow the ANSI standard (ANSI/EIA -748)


32

AgileEVM Background

Release dates are based on average velocity (storypoints)= estimate at complete (euros)

Assumption: the ratio(story points completed)/(total story points in a release) is a good mesure for Actual Percent Complete

EVM SCRUM AgileEVM


33

Expand AgileEVM to Portfolio

AgileEVM can coexist with EVM at Portfolio level – with caution

Help to manage the delivery with integrating of the best of Agile, Scrum and EVM

We can compare productivity without degrade velocity


34

AgileEVM: brief Analyze

Earned Value > Actual Costs You spend less than expected

Actual Costs > Earned Value You spend more than expected

Earned Value< Planned Value You go over the schedule and deliver late

Earned Value>= Planned Value Tip Top, you're even

ahead


35

Examples

Scoreboard

Velocity

Release Burndown

SPI (schedule performance index) & CPI (cost performance index)


36

Scoreboard

PRSP: initial Story PointsBAC: budget as completed

IL: iteration length

PI: Planned iteration

n: iteration Number SPC:

Story Points completed

SPA: Story Points added

(BAC - cumEV)/cumCPI

BAC - cumEV

cumulative story point completed for n sprints

This gives us the ability to give a complex burndown chart that shows scope growth and velocty

Average velocity from start

Cumulative story points

Actual % completed

n/PI


37

Velocity


38

Release Burndown


39

SPI (schedule performance index) & CPI (cost performance index)


40

Governance Structures

Sample Product Owner Team Complex Product Owner Hierarchy


41

work is decomposed from goals, and reported to track progress in reaching goals

The wailing Wall


42

Indexes & References

1. Organizational Structure: What is the role of Management?

2. Scrum Reporting Relationship

3. Companies using SCRUM


43

Organizational Structure: What is the role of Management?

CIO, CTO, VP

Engineering

Product Line Manager



FunctionalManager

FunctionalManager

FunctionalManager

PMO

Usability Engineeri

ng

DBA

Infrastructure

Quality Assurance

Copyright 1996-2007, ADM, all rights reserved v8.0


44

Scrum Reporting Relationships

DevelopmentTeam

DevelopmentTeam

DevelopmentTeam


45

Companies using SCRUM


46


47

References

http://www.methodsandtools.com/mt/download.php?fall09http://www.infoq.com/articles/agile-evm

http://www.agile-lu.org/www.linkedin.com/groups?gid=1010877http://www.viadeo.com/hub/afficherubrique/?hubId=00228fpqzpnccn8v&forumId=002jx74kpan69flhttps://www.xing.com/net/agilelux/https://www.xing.com/net/a-saar/

Other: -AgileEVM Adding Cost Control to the Agile Toolkit by Tamara Sulaiman-Project Portfolio Management with AgileEVM by Brent Barton

http://www.methodsandtools.com/mt/download.php?fall09

http://www.infoq.com/articles/agile-evm

http://www.agile-lu.org/

http://www.linkedin.com/groups?gid=1010877



http://www.viadeo.com/hub/afficherubrique/?hubId=00228fpqzpnccn8v&forumId=002jx74kpan69fl

http://www.viadeo.com/hub/afficherubrique/?hubId=00228fpqzpnccn8v&forumId=002jx74kpan69fl

https://www.xing.com/net/agilelux/

https://www.xing.com/net/a-saar/


48

Thank You Pierre E. NEIS Certified Scrum Product Owner

President of AIGLU Senior Management Consultant

[email protected] www.linkedin.com/in/pierreneis

mailto:pneis@

http://www.linkedin.com/in/pierreneis

http://www.linkedin.com/in/pierreneis

The oak one day says to the reed:—You have a good right to blame the nature of things: A wren for you is a heavy thing to bear. The slightest wind which is likely To wrinkle the face of the water Compels you to bow your head—While my brow, like Mount Caucasus, Not satisfied with catching the rays of the sun, Resists the effort of the tempest. All for you is north wind, all seems to me soft breeze. Still, if you had been born in the protection of the foliage The surrounding of which I cover, I would defend you from the storm. But you come to be most often On the wet edges of the kingdoms of the wind. Nature seems to me quite unjust to you. —Your compassion, answered the shrub, Arises from a kind nature; but leave off this care. The winds are less fearful to me than to you. I bend and do not break. You have until now Against their frightening blows Stood up without bending your back; But look out for what can be. —As the reed said these words, From the edge of the horizon furiously comes to them The most terrible of the progeny Which the North has till then contained within it. The tree holds up well; the reed bends. The wind doubles its trying; And does so well that it uproots That, the head of which was neighbor to the sky, And the feet of which touched the empire of the dead.

The Oak and the Reed (Translation by Eli Siegel)Jean de LA FONTAINE (1621-1695)

http://poesie.webnet.fr/lesgrandsclassiques/poemes/jean_de_la_fontaine/jean_de_la_fontaine.html


50

agile governance

Leadership & Management

schedule performance index

cost performance index

pwc 2008pierre neis

project portfolio management

pwc 2008expectedbenefits

scrumpierre neis

actual cost

pierre neis