The Danish Experience in Agile Projects. HANNE SOMMERFELT (Assistant Director) RIKKE HALLAND (Senior Project Manager)
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1 The Danish Experience in Agile Projects HANNE SOMMERFELT (Assistant Director) RIKKE HALLAND (Senior Project Manager)
2 Danish Business Authority employs 500 people and is organized as an agency under the Ministry of Industry, Business and Financial Affairs We govern the framework conditions for Danish businesses. Responsibilities: REGISTRATION OF COMPANIES BUSINESS REGULATION AND SUPERVISION BUSINESS DEVELOPMENT INTERNATIONAL RELATIONS
3 IN CONTACT WITH EVERYONE IN THE BUSINESS COMMUNITY IN 2016 we HAD 24M visitors at VIRK.DK 10M look-ups at VIRK INDBERET companies in the Central Business Register registration of companies (1000 a day) annual reports recieved Answering calls annually (700 a day) 95% immediate decisions 87,5 % customer satisfaction Erhvervsstyrelsen Please do not distribute without prior consent from Erhvervsstyrelsen.
4 OUR STARTING POINT PAPER- BASED HARD- WIRED AND INFLEXIBLE LEGACY IT INTROVERT
5 WHY WE NEEDED TO DIGITIZE SITUATION 2009 NEED TO MODERNIZE IT Difficult to meet new digital customer demands Difficult to implement changes to comply with law changes Inefficient operations MODERNIZATION PROGRAM From 14 to 1 registration systems Digitizing our customer service Changing the agency
6 THE MODERNIZATION PROGRAM - A LARGE EFFORT 2009 program approved in finance committee Initial external funding of 60 DKKM, otherwise funded through internal savings 5 years: start end 2015 Total program cost ~600 DKKM. Direct program cost over 6 years estimated ~210 DKKM On average 45 ERST FTE involved, 100+ during the program ~ hours in total Comprised of ~30 projects More than lines of code written 11 underlying applications
7 BEGINNINGS ARE DIFFICULT EFFORTS INITIALLY FOCUSED ON: DEFINING THE VISION DRAWING THE BLUEPRINTS GETTING THINGS STARTED
8 OUR NORTH STAR A CUSTOMER CENTRIC VISION VISION FOR THE PROGRAM We are an EFFECTIVE AND FLEXIBLE SERVICE- ORIENTED authority that creates simplicity and added value for customers and society SIMPLICITY (in solutions) CONSISTENCY (in data and process) RELEVANCE (for the clients) TRUST (all the way through the journey) IN EVERYTHING WE DO THE EXTRA MILE FOR THE CLIENT. Erhvervsstyrelsen Please do not distribute without prior consent from Erhvervsstyrelsen.
9 THE NUMBERS: WE HAVE REAPED SEVERAL BENEFITS REALIZED BENEFITS FOR CUSTOMERS REALIZED BENEFITS FOR ERST Support calls per application 0,5 0,3-40% Number of registration systems % Once- and- done ratio 1 % Average case handling time minutes Ramp- up time for new employee months, average 5-69% ,5-90% 1 Once- and- done (straksafgørelser), meaning without manual processing post notification Source: Realisering af gevinster i Moderniseringsprogrammet - delstatus august 2015, Erhvervsstyrelsen Erhvervsstyrelsen Please do not distribute without prior consent from Erhvervsstyrelsen
10 GETTING HERE HAS BEEN A JOURNEY NOT A STRAIGHT LINE WHEN WE STARTED THE PROGRAM, WE DIDN T KNOW HOW TO DO IT WE LEARNED THIS ALONG THE WAY, E.G. BY INTRODUCING AGILE Erhvervsstyrelsen Please do not distribute without prior consent from Erhvervsstyrelsen.
11 LACK OF FOCUS AND INEFFECTIVE DECISIONS SLOWED DOWN THE PROGRAM LACK OF FOCUS Resources not full- time assigned to the program and not a management priority LACK OF RIGOR IN QUALITY ASSURANCE Difficulties in determining requirements ensuring high quality of design and code INEFFECTIVE DECISION- MAKING Inability to reach decision on standard process for registering a new company
12 NEW BEGINNINGS DOING IT THE AGILE WAY 7 A culture of trust 6 Multi- vendor set- up & outsourcing AN EFFECTIVE PROJECT & COOPERATION MODEL A STRONG FOUNDATION Agile organization & processes Roadmap of manageable projects Architecture supporting gradual change 2 Strong governance & swift decision- making 1 Customer- centric vision aligning business & IT
13 KEY SUCCESS INGREDIENTS TRUST AND LEARNING EMPOWER EMPLOYEES TO MAKE DECISIONS CREATE A TRUST- BASED RELATIONSHIP WITH PARTNERS EXPERIMENT AND ACCEPT THAT YOU WILL OFTEN FAIL (THE FIRST TIME) Erhvervsstyrelsen Please do not distribute without prior consent from Erhvervsstyrelsen.
14 WHAT IS AGILE? AGILE IS A SOFTWARE DEVELOPMENT PARADIGM WATERFALL DEVELOPMENT MODEL Date driven project management Hard to manage Pre- defined requirements and fixed price contracts Multi- step process with sequential phases Problems in early phases may lead to major flaws later. The later problems are discovered the more expensive AGILE DEVELOPMENT MODEL Value driven project management Roll- wave planning and flex price contracts Iterative process Development split into functional components Components are developed in short sprints Erhvervsstyrelsen Please do not distribute without prior consent from Erhvervsstyrelsen.
15 MANIFESTO FOR AGILE SOFTWARE DEVELOPMENT 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 and interactions over processes and 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. ( Erhvervsstyrelsen Please do not distribute without prior consent from Erhvervsstyrelsen.
16 MULTI VENDOR STRATEGY WHY? Ensure competition among vendors Avoid vendor lock- in HOW? FRAME CONTRACT: EU tender with prequalification of 10 vendors and final selection of 5 vendors. Not a promise of actual work and financial outcome for the vendors, but the possibility of winning contracts in mini- tenders under the frame contract. Different types of subcontracts that can be used when needed, e.g. for a specific project. BITS OF THE ELEPHANT: A roadmap of manageable projects that the vendors could compete on to win.
17 MULTI VENDOR STRATEGY UPSIDES AND DOWNSIDES? Upsides: Flexibility AND continuity Shortens the tender period compared to EU tenders LIMITED multi vendor strategy the vendors get to know us. Downsides: Potentially difficult to find the right resources for special cases. If a vendor regrets being on the frame contract and does not bid limits competition and scalability
18 THE CHANGE CHANGE IN USES OF CONTRACTS à à Fixed price Fixed price Agile price incent. Agile price incent. Waterfall Waterfall/agile Agile vendor way Agile DBA way Black box Co- located Co- located Co- located Requirements specification à Business needs (Epics and User Stories) Erhvervsstyrelsen Please do not distribute without prior consent from Erhvervsstyrelsen.
19 ORGANISATION UX Test Implement. Steering commitee ERST Project Project managers GOAL Steering commitee Development Product Owner SCRUM Master SME / Business analysts Strategic planning controlled by ERST Cross- functional team, and roles are mirrored between ERST and vendor Decision- making at the right levels courage to make mistakes Teams are co- located and at around 10 FTE All code written and checked by outside development firms IT infrastructure completely outsourced to outside vendors Architects Developers Erhvervsstyrelsen Please do not distribute without prior consent from Erhvervsstyrelsen.
20 IMPLEMENTATION PHASE FOLLOWS STANDARD AGILE PRACTICE ERST AGILE IMPLEMENTATION PHASE, 4-18 MONTHS 1 6 months 1 6 months 1 6 months DELIVERY DELIVERY DELIVERY SPRINT SPRINT SPRINT SPRINT SPRINT SPRINT SPRINT SPRINT SPRINT 2-5 usability evaluations in a usability lab with real users Bi- weekly steering committees, operational and commercial Test checkpoints against contractual KPIs Erhvervsstyrelsen Please do not distribute without prior consent from Erhvervsstyrelsen.
21 THE LIFE OF A USER STORY - NOW ERST Leverandør Leverandør Leverandør ERST Accept Accept Accept Accept Accept 50 Opdateret Løsningsbeskrivelse Kode Backlog US Oprettet Afklaring US Afklaret og beskrevet Løsningsforslag Testplan Klargøring US Klargjort og klar til udvikling Testmateriale Dokumentation Tekster Udvikling m.v. US Udviklet og klar til test Fejlrapporter Test US Testet og klar til release Udvidet kontrol US DONE Iteration (sprint, hvis Scrum anvendes) US kan indgå i Agil Leverance Erhvervsstyrelsen Please do not distribute without prior consent from Erhvervsstyrelsen.
22 TRANSPARANCY Erhvervsstyrelsen Please do not distribute without prior consent from Erhvervsstyrelsen.
23 TRANSPARANCY 1400 Story Points Burn up (incl. uestimerede med gennemsnits SP) Story Points Sprint 1 Sprint 2 Sprint 3 Sprint 4 Sprint 5 Sprint 6 Sprint 7 Sprint 8 Sprint 9 Tid Sprint 10 Sprint 11 Sprint 12 Sprint 13 Sprint 14 Sprint 15 Sprint 16 SP i sprintet 0 SP Realiseret i sprintet 0 Scope 0 Done 0 Fremskrivning (historisk - avg) 0 Fremskrivning (max) Fremskrivning (gennemsnit) Fremskrivning (min)
24 HOW WE HAVE FORMALLY DESIGNED OUR WORK WITH VENDORS 4- YEAR FRAME AGREEMENT Vendor- specific fixed price per hour Intellectual property arrangements Scoring criteria for proposals COMPETITIVE TENDERS FOR EACH PROJECT Required team setup Mandating Agile practice All artefacts (design, code, test plans) are shared with ERST and other vendors Quality KPIs HIGH- LEVEL scoping allows for collaborative refinements RISK IS SHARED for under- or over- scoping VENDORS PERFORM as there is repeat business VENDORS LEARN from each other VENDORS INVEST in maintain- ability
25 FAIL TO SUCCEED LeBron James:
26 KEY SUCCESS INGREDIENTS MAKE DIGITAL AN ORGANIZATIONAL PRIORITY GET BUSINESS AND IT TO WORK TOGETHER BREAK THE PROGRAM DOWN INTO SMALLER PARTS AND ITERATE EMPOWER AND TRUST YOUR EMPLOYEES TO EXPERIMENT AND LEARN HAVE AN 80/20 APPROACH WHEN DIGITIZING RULES & REGULATION BUILD TRUSTING RELATIONSHIPS WITH MULTIPLE VENDORS
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