So you want to be Agile in a Government setting?

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1 So you want to be Agile in a Government setting? De-Bunking Myths, Where to Get Started and What to Do March 2016

5 DELIVER CUSTOMER VALUE FASTER

10 Traditional Software Development Long, Large, Linear, (and now Late) Time to Market 12 to 36 Months Lifecycle Define Code Test Deploy Deliverables MRD PRD Tech spec Code Test plan Funct test Doc Train CA. ALL RIGHTS RESERVED.

Teams Of Teams Synchronize To Deliver Market

27 F35.. now the biggest US Waterfall FAIL $143 Billion over budget At least another year late The cost of the Navy's F35C grew from $273 million in 2014 to a wallet-busting $337 million by CA. ALL RIGHTS RESERVED.

28 Saab JAS 39E Gripen The World s Best Stealth Fighter is not Made in America - Bill Sweetman, Aviation Week All systems radically improved, cheaper than the previous version Cost $43M (80% less than F35) Agile development techniques Designed from software out CA. ALL RIGHTS RESERVED.

October 21,2013 Healthcare.gov "Nobody's madder than me about the website not working as well as it should, which means it's going to get fixed, https://www.washingtonpost.

29 October 21,2013 Healthcare.gov "Nobody's madder than me about the website not working as well as it should, which means it's going to get fixed, 3a65-11e3-b7ba-503fb5822c3e_story.html CA. ALL RIGHTS RESERVED.

Coordinated Agile Is More Successful Scattershot/Organic Fragmented Organic Scattershot Disintegrated Silo-ed Disconnected Uncoordinated Risky Rogue

34 Coordinated Agile Is More Successful Scattershot/Organic Fragmented Organic Scattershot Disintegrated Silo-ed Disconnected Uncoordinated Risky Rogue Organizational Agile Organizational Scaled Enterprise Purposeful Concerted Coordinated Holistic Optimized Disruptive CA. ALL RIGHTS RESERVED.

43 Key Takeaways The old way of working will NOT be relevant for the future. What s required: A change to your awareness and behavior Changing the whole business system But you can start with small steps A courageous change agent, sowing the seeds of business agility CA. ALL RIGHTS RESERVED.

45 So you want to be Agile in a Government setting? Agile Project Management in the Public Sector March 2016

46 Brian Reynolds Based in the Northern Virginia Industry experience: government, air transportation, utility, healthcare First Scrum Project: 2008 The usual Agile certifications CA. ALL RIGHTS RESERVED.

48 Project Management Body of Knowledge 47 Processes organized within 10 Knowledge Areas and 5 Process groups Q: Is the PMBOK Agile? A: PMBOK describes 'what should be done during the management of a project' Agile methodologies describe how to do the things that should be done in short, what versus how CA. ALL RIGHTS RESERVED.

Integration and Scope Management Comparison of Predictive (Waterfall) and Adaptive (Agile) Practices Predictive Managers develop Project Management Plan and related sub-plans Managers

(WBS) that defines deliverables Agile Team develops and refines Release, Iteration, and Sprint Plans Team progressively elaborates backlog and manages changes daily Agile Team

49 Integration and Scope Management Comparison of Predictive (Waterfall) and Adaptive (Agile) Practices Predictive Managers develop Project Management Plan and related sub-plans Managers execute formal change control process and documentation Predictive Team defines requirements needed to meet the project objective(s) at beginning Managers create a work breakdown structure (WBS) that defines deliverables Agile Team develops and refines Release, Iteration, and Sprint Plans Team progressively elaborates backlog and manages changes daily Agile Team progressively elaborates and iteratively prioritizes Product Backlog Team progressively elaborates backlog and develops release & iteration plans unwelcome CHANGE expected CA. ALL RIGHTS RESERVED.

Time and Cost Management Comparison of Predictive (Waterfall) and Adaptive (Agile) Practices Predictive Managers identify activities and durations needed to produce deliverables Managers estimate

50 Time and Cost Management Comparison of Predictive (Waterfall) and Adaptive (Agile) Practices Predictive Managers identify activities and durations needed to produce deliverables Managers estimate durations to establish an authorized schedule baseline; activity completion is focus of schedule Predictive Managers estimate cost to complete project work activities and deliverables Managers aggregate estimated costs to establish an authorized cost baseline Agile Team progressively defines features, epics, stories needed for product Team derives schedule from work estimates; velocity drives schedule; value delivery is focus of schedule Agile Team derives duration and cost from work estimates; Cost, not scope, is fixed Team and costs are stable; costs derived from work estimate and velocity estimated COST & SCHEDULE derived CA. ALL RIGHTS RESERVED.

Quality Management Comparison of Predictive (Waterfall) and Adaptive (Agile) Practices Predictive Quality control techniques, like checklists and lessons learned, used to eliminate quality issues

51 Quality Management Comparison of Predictive (Waterfall) and Adaptive (Agile) Practices Predictive Quality control techniques, like checklists and lessons learned, used to eliminate quality issues Monitor results of project activities to assess conformance and performance Agile Quality control is built into the product development process; Definition of Ready and Done help ensure quality Quality of the real, emerging product, not just project artifacts, is verified iteratively CA. ALL RIGHTS RESERVED.

Which application of PMBOK is most effective?

Agile Planning Fundamentals Agile acknowledges that we cannot totally define the product up front when we know least; iteration is required to balance feature, resource, schedule decisions Agile

54 Agile Planning Fundamentals Agile acknowledges that we cannot totally define the product up front when we know least; iteration is required to balance feature, resource, schedule decisions Agile planning assumes Agile team members will: work collaboratively towards goal work in short, consistent iterations deliver demonstrable value each iteration prioritize work and deliver highest value first inspect, adapt, continually improve Agile Planning Fundamentals: Iterative, uncertainty recognized Multi-Level: Release, Sprint, Story Work, job size estimated Estimates are relative Cost/Schedule = Job Size / Velocity CA. ALL RIGHTS RESERVED.

55 Predictive Planning Assumptions Predictive approaches are based on four key seemingly flawed assumptions that are the root cause of many cost overruns and schedule delays 1. There exists a reasonably well-defined set of requirements, if only we take the time to understand 2. During development, requirement changes will be small enough that we will not need to revise plans 3. We can predict how well system integration will go based upon up-front architecture and planning 4. Software R&D required to innovate can be done on a predictable schedule Predictive Planning Overruns Causes: Activities don't finish early Lateness passed down schedule Activities are not independent Multitasking increases cycle times Precise estimates on uncertain work Estimates become commitments Leffingwell, Dean. Scaling Software Agility: Best Practices for Large Enterprises CA. ALL RIGHTS RESERVED.

Predictive Planning and Changing Requirements " changing business requirements suggests that any assumption that there will be little significant change to requirements once they have been documented

56 Predictive Planning and Changing Requirements " changing business requirements suggests that any assumption that there will be little significant change to requirements once they have been documented is fundamentally flawed " -- study of 1,027 IT projects in the United Kingdom, reference Leffingwell, Dean. Scaling Software Agility: Best Practices for Large Enterprises source CA. ALL RIGHTS RESERVED.

57 Agile vs Predictive Planning Characteristic Predictive Adaptive Focus Activity Feature / Value Estimate Cost, Schedule Work, Job Size Commitment Scope Cost, Schedule Change Unwelcome Expected Assignment In-Advance Just-In-Time Quality Check Missing Activities Missing Features Progress Activity Completion Value Delivery Multitasking Common Discouraged Priority Resource Availability Customer Value Scope Reduction Remaining Activities Least Valuable CA. ALL RIGHTS RESERVED.

Predictive Planning Process Predictive approaches attempt to define precise performance measurement baselines (PMB) at the beginning of the project. What could go wrong here?

58 Predictive Planning Process Predictive approaches attempt to define precise performance measurement baselines (PMB) at the beginning of the project. What could go wrong here? Develop Work Breakdown Structure 1 2 Project Use Critical Path Method to Define Network Path Work Package 1 Work Package 2 Work Package 3 Control accounts, planning packages not shown Work Package 4 Work Package 2 Work Package 1 Work Package 4 Work Package 3 3 Identify Work Product Deliverables, Cost, and Schedule 4 Define PMB (the triple constraint) D: 2w D: 4w D: 6w Work Package 2 C: $4K D: 4w Work Package 1 Work Package 4 Work Package 3 C: $8K C: $13K $30K $20K PMB C: $10K typically based on resource loaded task and activity work plan $10K month CA. ALL RIGHTS RESERVED.

Agile Planning: 5 Levels Large-scale Agile planning efforts rely on five planning levels to overcome need for large upfront investment in analysis and design common in predictive approaches

59 Agile Planning: 5 Levels Large-scale Agile planning efforts rely on five planning levels to overcome need for large upfront investment in analysis and design common in predictive approaches Uncertainty decreases as the planning horizon is shortened across planning levels Detail Predictability Therefore, planning detail can be increased without running the risk of expending resources on features that may not be built or may be built differently Long-term plans are coarse-grained, feature-based; short term plans finegrained, story- and task-based CA. ALL RIGHTS RESERVED.

Agile Planning Cadence Instead of attempting to develop a detailed plan for the entire project up front, Agile uses incremental planning techniques to incorporate feedback and change Priority

60 Agile Planning Cadence Instead of attempting to develop a detailed plan for the entire project up front, Agile uses incremental planning techniques to incorporate feedback and change Priority features are delivered via iterations comprised within Program Increments (PI) Each PI has a uniform length of weeks and can be aligned with releases PIs comprise ~4 development sprints and 1 Innovation and Planning (IP) sprint PI length informs and constrains the size of features we plan to deliver IP sprints used to plan upcoming PI, to execute spikes, and perform refactoring IP0 I1 I2 I3 I4 IP I1 I2 I3 I4 IP Week 0 Week 2 Week 4 Week 6 Week 8 Week 10 Week 12 Week 2 Week 4 Week 6 Week 8 Week 10 PI 1 PI CA. ALL RIGHTS RESERVED.

61 Agile Planning Process 1 Develop Feature Backlog from BA 2 Develop Product Roadmap 3 Develop Release Plan 4 Develop Iteration Plan 5 Revise Roadmap and Release Plan per story-level estimates and commit CA. ALL RIGHTS RESERVED.

Philosophy Customer First (maximize value) People Most Valued Resource Continuous Improvement (remove Muda) Shop Floor

64 Lean: Three Key Elements Lean a set of management practices based on the Toyota Production System (TPS) Three key elements: 1. Philosophy Customer First (maximize value) People Most Valued Resource Continuous Improvement (remove Muda) Shop Floor Focus (Go to the work to improve the work) 2. Tools and Practices Just-in-Time Production (reduce WIP) Build-in Quality (eliminate unplanned work) 3. Managerial Role Develop People to Improve Performance CA. ALL RIGHTS RESERVED.

65 The 8 Wastes of Lean Inspect and adapt metrics and Agile management practices are designed to identify performance causes-and-effects and to mitigate Lean's 8 wastes: Wastes Defects Overproduction Waiting Non-Utilized Talent Transportation Inventory Motion Extra-Processing Agile Mitigation Techniques Test-driven development, unplanned work, integrity metrics Product vision, feature prioritization, release planning Limited Multi-tasking, defined ceremonies, productivity metrics Self-organizing teams, T-shaped individuals, team-based planning Test automation, continuous Integration, agile lifecycle mgmt. tools Small story (batch) sizes; predictability metrics Cross-functional teams, co-location, information radiators Definition of ready and done CA. ALL RIGHTS RESERVED.

66 Value and ROI via Lean Lean combines low inventory and just-in-time techniques with Total Quality Management (TQM) techniques to improve value delivery and return on investment Throughput Accounting is a management accounting process that grew out of the manufacturing industry application of the Theory of Constraints (ToC). To deliver increased value and improved ROI, Agile management practices must focus on: 1. Increasing Throughput (T) 2. Decreasing Investment (I) 3. Decreasing Operating Expenses (OE) In the language of Lean: more value must be delivered, waste (rework) must be eliminated, and inventory (work-in-process) levels must be reduced CA. ALL RIGHTS RESERVED.

68 Inspect and Adapt Metrics Measurement drives action and focus; to realize measurable agile performance improvements, use inspect and adapt metrics to focus improvement efforts Core Management Measures productivity (velocity) predictability (sprint plan variance) unplanned work (defect density) integrity (test case coverage/execution) deployable value (Feature completion) Backlog Management Measures backlog dynamics (growth, change) backlog points by story type/state Defect Measures open defect aging, by priority defect closure duration, by priority defect open/close trending defects found by/found in (environment) % stories w/ defect Planning Measures actual hour range & std deviation per story average plan & actual hours per story size average plan & actual hours per accepted point % points split (pushed to subsequent sprint) Efficiency Measures velocity % increase / decrease actual hours per task/task type Product Flow Measures work utilization actual hours /accept duration acceptance slack, by story size average story size / sprint Quality Assurance Measures test case pass/fail/no result % test cases automated CA. ALL RIGHTS RESERVED.

69 Using I&A to get Lean Throughput Accounting focuses on delivering value by improving the efficiency at which Investments are converted to Throughput; Metrics are key. Throughput: improved productivity, in the Lean vernacular, helps teams "focus on value" Productivity, measures velocity at which Agile process is delivering valuable software; should be measured and improved throughout the project Unplanned Work, which measures defect density of delivered software; effort spent on defect remediation increases Operating Expenses and does not contribute to Throughput Integrity, a predictive indicator of defect occurrence that measures test case coverage and degree to which software conformance to requirements has been validated Investment: reduced inventory leads to shorter lead Times and improved ROI Predictability, measures iteration variance, this is the team's "Say-Do Ratio;" where predictability is low, iteration commitments are not being met and Investment (WIP) is increased Story Size, which the average size of stories scheduled within an iteration; larger stories are converted to working software more slowly (e.g. have longer Lead Times), this increases WIP and threatens Throughput CA. ALL RIGHTS RESERVED.

71 Not New to Government Agile delivery models align with government IT policies and recommendations "only approve funding of major IT programs that use a modular approach with usable functionality delivered every six months" 25 Point Implementation Plan to Reform Federal IT Management, 2010 " adopt a modular approach that combines controlled system development with rapid prototyping techniques" projects should be as "narrow in scope and brief in direction as possible to reduce risk" Capital Programming Guide, Appendix II, OMB Circular A-11, July 2013 "agencies should consider breaking large acquisitions into smaller, more manageable segments or modules. each module should be economically and programmatically viable (i.e., useful) " Capital Programming Guide, OMB Circular A-11, July 2013 "officials who have used Agile methods on federal projects generally agree that these practices are effective" GAO Effective Practices and Federal Challenges in Applying Agile Methods, July 2012 Agile-consistent critical success factors: actively engaged stakeholders end users and stakeholders are involved program staff prioritized requirements end users tested functionality prior to UAT regular communications between program and contractor GAO-12-7 IT Critical Factors Underlying Successful Major Acquisitions, CA. ALL RIGHTS RESERVED.

72 Agile Acquisition Model Use PMO, backlog management, release planning, architecture, and deployment pipeline to provide program continuity and enable engagement of specialized, alternate developers CA. ALL RIGHTS RESERVED.

Agile Acquisition Cadence (Release-Based) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Phase 1 / Release 3 Phase 1 / Release 4 Phase 2 / Release 1 Phase 2 / Release 2 S6 S1 S2 S3 S4 S5 S6 S1 S2 S3

73 Agile Acquisition Cadence (Release-Based) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Phase 1 / Release 3 Phase 1 / Release 4 Phase 2 / Release 1 Phase 2 / Release 2 S6 S1 S2 S3 S4 S5 S6 S1 S2 S3 S4 S5 S6 S1 S2 S3 S4 S5 S6 S1 S2 S3 S4 S5 S6 S1 Performed during project planning phase, prior to project start Release Commitment and Contracting Release Commitment and Contracting Develop Charter Elaborate Stories Inspect & Forecast Release Commitment and Contracting Define Features Plan Releases Implement Stories CA. ALL RIGHTS RESERVED.

74 Challenges Using Typical contract Structure for Agile Non-traditional SDLC Design, Development, Testing occur continuously License cost may be unknown because buyer is typically procuring services in support of functionality rather than an end software product Requirements Uncertainty Requirements are variable prior to, and throughout, project FFP has fixed schedule, cost, and scope Fixing scope in Agile inhibits the team's ability to deliver value that meets changing needs Requirements uncertainty coupled with FFP places undue risk on contractors who will charge a price premium to compensate for risk CA. ALL RIGHTS RESERVED.

75 Procurement Considerations Expectation for use of Agile approach should be explicit. Without detailed requirements, procurement needs to focus on service provider, not solution, quality. Prototyping sometimes used as part of evaluation process. Contract cannot assume fully defined scope, schedule and cost at contract award. Product Vision important to define scope provides basis for determining that requirements changes are still within scope. Baseline metrics (e.g., velocity, delivery efficiency) very important as gauge of vendor productivity. RFP should include 'Definition of Done' and require bidders to describe how they will manage quality and performance CA. ALL RIGHTS RESERVED.

76 Example: Tiered Fixed-Price Menu Line Item Services POP Type Quantity Unit Unit Price Price 0001 Discovery & Stabilization 3 Mos. T&M x Hours Vendor Proposed Hours, & Rates $ 0002 Release 3 Mos. FFP 6 Sprint $ 0003 Release 3 Mos. FFP 6 Sprint $ 0004 Release 3 Mos. FFP 6 Sprint $ Not to Exceed $ (specified in RFP) Not to Exceed $ Not to Exceed $ Not to Exceed $ 0005 Non- Development Activities 12 Mos. T&M x Hours Vendor Proposed Hours, & Rates $ Not to Exceed $ (specified in RFP) TOTAL Not to Exceed $ (specified in RFP) CA. ALL RIGHTS RESERVED.

Roles and Responsibilities Traditional / Phased Agile Customers Product Owner Government Team Project Manager Customers CO Representative

Team Traditional / Phased Project Manager Development Team Contracts Manager Agile Project Manager* Scrum Master Scrum Team Contracts Manager

77 Roles and Responsibilities Traditional / Phased Agile Customers Product Owner Government Team Project Manager Customers CO Representative Contracting Officer Project Manager* Product Owner Agile Coach Users/Customers CO Representative Contracting Officer Contractor CO COR Contractor Team Traditional / Phased Project Manager Development Team Contracts Manager Agile Project Manager* Scrum Master Scrum Team Contracts Manager *Depending on the scope of the contract, Project Managers may be needed to manage cost, scope, and schedule of the overall project CA. ALL RIGHTS RESERVED.

78 Not Just About Development Focus is often on software development process, but all the traditional elements of the full system development lifecycle remain important: Business process reengineering Organizational change management Training Project management In addition, contract assistance may be required with other processes: Planning (Roadmap, Release Plans) Requirements (Backlog development and grooming) Agile coaching/oversight CA. ALL RIGHTS RESERVED.

79 Michael DeAngelo

agile strategy. (INTENT: Drive agencies to producing value more quickly and incrementally).

80 Agile in WA Customer facing value (26.0%): Add value in short increments -- This criterion will be used to determine if the initiative provides customer-facing value in small increments, quickly to drive our agile strategy. (INTENT: Drive agencies to producing value more quickly and incrementally). 100% of points: The project is designed to produce customerusable value every six months. 50% of points: The project is designed to produce customerusable value every twelve months. 25% of points: The project is designed to produce customerusable value every 18 months. 0% of points: The project does not take an agile approach, and/or does not deliver customer-facing value every 18 months.

81 Resources

82 DES IT Contracting

83 DES IT Contracting Guidance

84 Agile Contracts

85 Waterfall v. Agile The main characteristic of a shift to the agile paradigm is that the scope of a project is in contrast to the classic waterfall model, no longer fixed in detail from the start.

86 Money for Nothing (Early Termination) Contract termination can occur at the end of any sprint; Agile contracting allows for termination of the contract when the value of features drops below an ROI (diminishing return); Customer pays vendor a negotiated percentage of the remaining contract value to exercise early termination; Contract allows the customer to save a percentage of their remaining funds by giving the Agile vendor a percentage of the remaining contract value. This drives your vendor s margins in agile contracting from 15-20% up to 50-80%

87 Change for Free With active client participation with the scrum team during the entire project, the customer can make changes to the scope without incurring additional cost; This means new features being added, while the total scope remains the same; & New features may be added for free at sprint boundaries if items of equal scope are removed from the contract.

88 Scrum is an Agile Process Framework DES developed scrum team to deliver non-it product The non-it product in this scenario is the Solicitation Process Steps (Modified) Agile Manifesto: We are uncovering better ways of developing product by doing it and helping others do it. Through this work we have come to value: Individuals and interactions over processes and tools; Working product over comprehensive documentation; Customer collaboration over contract negotiation; & Responding to change over following a plan.

89 Scrum Environment

90 Scrum Environment

for implementing Agile as well as the challenges

Rethink Responsibilities Stakeholder involvement during Agile delivery goes beyond requirements definition and user acceptance, Product Owners are responsible for prioritization Involve business

93 Rethink Responsibilities Stakeholder involvement during Agile delivery goes beyond requirements definition and user acceptance, Product Owners are responsible for prioritization Involve business units: OCIO issued and managed integrator contracts can lead to confusion, as Product Owners within business units set priorities Clearly define roles: Use RACI matrices, or similar, to reduce confusion about responsibilities, especially where non-standard Agile roles (PMs and Coaches) are concerned Value conversation: business unit collaboration is important; limit use of intermediaries, who reduce direct interaction between developers and Product Owners Plan together (Hoshin Kanri): Align OCIO and business unit goals, plans, and commitments; limit predictive plans, where adaptation is needed Pursue DevOps: improve IT collaboration where functional silos undermine Agility CA. ALL RIGHTS RESERVED.

So you want to be Agile in a Government setting?

So you want to be Agile in a Government setting? De-Bunking Myths, Where to Get Started and What to Do March 2016 Tom Perry Based in the Seattle Area First Agile (XP) Project: 1998 The usual Agile certifications