Innovative IT Project Management Practices Faster, Better, Cheaper 2.0. Tathagat Varma, Sr. Director Corp PMO and Business Ops 30-Apr-2011

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1 Innovative IT Project Management Practices Faster, Better, Cheaper 2.0 Tathagat Varma, Sr. Director Corp PMO and Business Ops 30-Apr-2011

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3 Disclaimer These are my personal opinions on the subject, and in no way represent that of my employer 3

4 Work then Blue-collar, Manual, Repetitive, Worker exploitation, Long hours, Unsafe work conditions, Individual productivity driven, Huge capex 4

5 and now! White-collar, Knowledge-worker, Gender equality, Work-life balance, Virtual teams, Globalised, Gen Y, Diversity, Multiple careers 5

6 Computers then Specialized equipment, Voluminous, Very costly, Not user-friendly, Required experts to operate, Forklift upgrades, Hardware-heavy 6

7 and now! Multi-device, Kids to Old users, Business to Entertainment to Lifesaving, Portable, User-friendly, Affordable, Rapid upgrade cycles 7

8 Adoption of computers 8

9 Cycle time today 9

10 Component cost today 10

11 Incomes and Consumption today 11

12 Nokia Timeline (number of handsets) 12

13 Facebook timeline (users in millions) 13

14 ipod, iphone, ipad first 3 years sales 14

15 Growth in Social Network Patents 15

16 Where are we headed with all this? The world is your consumer rare use-cases to be the norm Innovate at light-speed or die obsolescence at unprecedented rate Faster, Better, Cheaper this is serious this time! 16

17 Faster, Better, Cheaper (FBC) 1.0 The real Holy Grail of Software Development Pick any two! Pick any one!! 17

18 How do we deliver software Faster? By cutting quality? By cutting features? By cutting process? By latest technology and tools? By shortchanging user experience? 18

19 How do we deliver software Better? Formal methods? ISO / CMM / CMMi? PMP / PRINCE2? Open Source? Agile / Scrum? Hire smart engineers, build smart teams? 19

20 How do we deliver software Cheaper? Outsourcing? Quick and dirty methods? Reuse? Cloud? 20

21 Cost Overrun over the Years 21

22 Schedule Overrun over the Years How does a project get late by a month??? 22

23 Chaos Report 2009 The most authoritative and comprehensive survey on IT project performance since last 15+ years "This year's results show a marked decrease in project success rates, with 32% of all projects succeeding which are delivered on time, on budget, with required features and functions" says Jim Johnson, chairman of The Standish Group, "44% were challenged which are late, over budget, and/or with less than the required features and functions and 24% failed which are cancelled prior to completion or delivered and never used." "These numbers represent a downtick in the success rates from the previous study, as well as a significant increase in the number of failures", says Jim Crear, Standish Group CIO, "They are low point in the last five study periods. This year's results represent the highest failure rate in over a decade" 23

24 Chaos Report over the years Successful: deliver on-time, on-budget, with required features and functions Challenged: late, overbudget, and/or with less then the required features and functions Failed: cancelled prior to completion or delivered and never used Successful 32% 35% 29% 34% 28% 26% 27% 16% Challenged 44% 19% 53% 15% 23% 28% 40% 31% Failed 24% 46% 18% 51% 49% 46% 33% 53% 24

25 Is there a Silver Bullet? No Silver Bullet (NSB): there is no single development, in either technology or management technique, which by itself promises even one order-of-magnitude improvement within a decade in productivity, in reliability, in simplicity Fred Brookes, 1986 High-level languages? 4GL? OOP? Reuse? Offshoring? Rapid Prototyping? What next? 25

26 Why is it, considering that We improved the process from waterfall days Individuals are smarter than ever before Teams are highly empowered Tools have never been better Languages support faster development QA automation levels are all-time high Customers are highly educated Why why why??? 26

27 Where is the missing piece? 27

28 The missing piece is...the Interlock SUCCES S!!! 28

29 Faster, Better, Cheaper 2.0 Tighter alignment of People, Process and Technology Program management vs. Delivery Management Empowered teams vs. guided teams Situational Leadership vs. Command and Control Optimize Whole, not just the Parts alone Lean vs. Agile Fail fast to succeed faster Innovate, Iterate, Improve 29

30 Process Ideas to achieve BFC 2.0 Agile Scrum Lean TOC Kanban Scrum-ban Program Management let s discuss them 30

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32 Scrum 32

33 Lean Principles Identify customers and specify value Identify and map the value stream Create flow by eliminating waste Respond to customer pull Pursue perfection 33

34 Wastes ( muda ) in Lean Identified by TaiichiOhno, these are: Overproduction Delay Transporting Over-processing Inventory Motion Making Defective Parts 34

35 Kanban-based production Limit WIP (Work in Progress, aka Inventory ) Move from monolithic releases to phased releases 35

36 Kanban-based software engineering Identify product s MMF (Minimum Marketable Features) Prioritize their value Plan your releases around them Release highest-value features first to maximize ROI To accelerate delivery, have the entire team collaborate on one feature at a time and perform releases as often as possible 36

37 Kanban Board 37

38 Scrum-ban Software production model based on Scrum and Kanban Scrum practices + Kanban workflow Especially suited for maintenance projects with frequent and unexpected user stories or programming errors Major difference between Scrum and Kanban are derived from the fact that in Scrum work is divided into timeboxed sprints whereas in Kanban, the workflow is continuous 38

39 Theory of Constraints (TOC) in PM 39

40 Program Management Centralized coordinated management of a program to achieve program s strategic objectives and benefits that are not available from managing the sub-projects individually Focuses on the project interdependencies and helps to determine the optimal approach for managing them. Action related to these interdependencies may include: Resolve resource constraints and/or conflicts that affect multiple projects within the system Align organizational/strategic direction that affects project and program goals and objectives Resolve issues and change management within a shared governance structure

41 Project Management Office (PMO) A PMO is an organizational body assigned various responsibilities related to the centralized and coordinated management of those projects under its domain Responsibilities can range from providing project management support to actually being responsible for the direct management of project Project supported or administered by PMO may not be related, other than being managed together 41

42 Primary Functions of PMO Managing shared resources across all projects administered by PMO Identify and develop PM methodology, best practices and standards Coaching, mentoring, training and oversight Monitor compliance with PM standard policies, etc. Develop and manage project policies, etc. Coordinate communication across projects

43 Project Manager vs. PMO PMs and PMOs pursue different objectives and, as such, are driven by different requirements. All of these efforts, however, are aligned with the strategic needs of the organization. Differences: PM focuses on the specified project objectives, while the PMO manages major program scope changes which may be seen as potential opportunities to better achieve business objectives PM controls the assigned project resources to best meet project objectives while the PMO optimizes the use of shared organizational resources across all projects PM manages the constraints (scope, schedule, cost, and quality, etc.) of the individual projects while the PMO manages the methodologies, standards, overall risk/productivity, and 43 independencies among projects at the enterprise level

44 Right-size the process for innovation? 44

45 Conclusions Your Customers expect top-quality innovative solutions in less time and lesser dollars than ever before! Competing on cost arbitrage or part quality is necessary but not enough! Your project management processes must mirror the real world Process improvement is a journey, not a destination 45

46 References tatum.pdf?sequence= Phased%20Releases.html 46

47 References C4F2F87B3CD58D2ED10332?R=86116-PDF- ENG&conversationId=22181&E=

48 Questions Mail: Blog: 48