Agility, governance and productivity

Size: px

Start display at page:

Download "Agility, governance and productivity"

Molly Griffin
6 years ago
Views:

1 Agility, governance and productivity Dr. Murray Cantor Distinguished Engineer, IBM Rational software IBM Rational Software Development Conferences IBM Corporation

2 Topics Uncertainty and development risk Value and Productivity Governance to improve productivity Governance for agility

3 Topics Uncertainty and development risk Value and Productivity Governance to improve productivity Governance for agility

4 Imagine you have 12 months to deliver a business critical system Your estimators tell you it will be done in 11 months What do you do with the information? Rest easy, believing there is no risk?

5 Maybe you realize that program parameters (cost, schedule, effort, quality, ) are random variables Area under curve describes probability of measurement falling in range Likelihood of actual value falling in range is area under curve

6 Imagine you have 12 months to deliver a business critical systems So you ask for the distribution and discover there is some uncertainty

7 Imagine you have 12 months to deliver a business critical systems In fact there is less than 50% chance of making the date 48%

8 Then what? Move out the date to improve likelihood of shipping? 95%

9 Then what? Or move in the estimate by sacrificing quality or content? 95%

10 The estimate variance reflects current state of understanding Source Lack of knowledge Lack of confidence Reduction of variance reflects Increased knowledge about Client needs Technology Team capability Good Decisions

11 Then what? Determine the source of the variance Over the project lifecycle, reduce the variance to improve likelihood 90%

12 Then what? Over the lifecycle, reduce the variance further to improve likelihood 95%

13 Risk reduces with completeness of information Project Lifecycle Phases Inception Elaboration Construction Transition/Maintenance Variance in Cost, Schedule High Variance 80% reduction Medium Variance 96% reduction Low Variance Time

14 The two keys to reducing variance Managed Collaboration Well identified roles, decision rights, Enabled by agile collaboration environment Iterative development Each iteration should reduce remaining project variance, i.e. improve certainty of successful delivery.

15 Each iteration should reduce variance Uncertainty in Stakeholder Satisfaction Space Initial Planned Path Uncertainty in delivery Actual Path Initial Planned Content

16 Topics Uncertainty and development risk Value and Productivity Governance to improve productivity Governance for agility

17 How much is an incomplete development program worth? NPV/Options Theory Value Conventional Wisdom 0 6 Ship date Conventional wisdom provides no opportunity for ongoing value management Net present value/options theory: project increases value when Decrease variance of time/effort/cost to complete improve likelihood of success Increase upside variance of value delivered Robustness, reuse.

18 Business value Product Innovation Your Business? Operational Efficiency Client Intimacy Based on The Discipline of Market Leaders by Michael Treacey and Fred Wiersma

19 Two questions you should be able to answer: How does your business/organization deliver value? How do your development projects support the value delivery? Product Innovation Your Business? Inceptio n Elaboration Construction Transition/Maintenance Innovation Operational Efficiency Client Intimacy Operational Efficiency Client Intimacy High Variance Medium Variance Low Variance

20 What we really mean by productivity Productivity is the most effective use of staff time Kinds of productivity Efficiently increase likelihood of successful delivery with right amount of staff Writing the right code Removing risk of a bad outcome Creating return/value on expense

21 How should we measure productivity? Code lines/programmer hour? Maybe, if you in the code lines business Function points/programmer hour? Maybe, if you in the function point business Change requests/programmer hour? Maybe, if you in the change request business What if you are in the telecom, banking, system development or embedded device business? Need to measure value/prog hr

22 Achieving business productivity In governance process plan phase, agree with stakeholders on value metrics, augment with roi, irr, roa. Calculate metric per programmer month as appropriate In design phase, choose internal measures (klocs, churn ) that contribute to business value. In monitor phase, report and adjust metrics Maintain metrics history for tracking improvement

23 Topics Uncertainty and development risk Value and Productivity Governance to improve productivity Governance for agility

24 The different perspectives of governance Policy-driven Execution of externally imposed processes, policies e.g., HR, spending guidelines Addresses business risk, regulatory compliance Results-oriented Better decisions to achieve better outcomes Balancing risk and value Improved culture Architecture alignment Business alignment Operational The processes of: Setting decision-rights, controls, measures Deploying the execution environment supporting governance solution The operational perspective is key to achieving business value and productivity

25 Operational Perspective: Governance is a process to create and maintain the governance solution Some governance solution artifacts Responsible Accountable Consulted Informed (RACI) matrices Governance effectiveness measures Operation metrics specifications Policy libraries Compliance specifications Governance Deployment architecture Process choreography Policy enforcement Metrics collection and reporting Compliance audit trails Evaluate and analyze results against current business and IT objectives; determine value and risk of IT and other resources; provide business insight and use it to improve the governance solution The governance solution lifecycle Monitor Control Execute governance solution; monitor operational performance, compliance and Manage risk events; Assess Set business and IT objectives, set scope, policies and practices; set Plan measurable goals Set Objectives Analyze Design Governance Lifecycle Evaluate Deploy Implement Design, deploy, and automate governance solution (controls and measures; organizations; roles and responsibilities, polices, and compliance)

26 Governance process and the governed processes Processes are characterized by the lifecycle of their artifacts Examples range from entire programs to a change request or block of code As artifacts evolve through their lifecycle, decisions must be made, i.e., decision points In the governance process, each decision point is addressed by elements of the governance solution: Assigning decision rights Specifying appropriate policies to guide or constrain the decision Associated metrics to support the decision Compliance records to document the decision Executing the governance process may entail new organization role

27 Development governance is applying governance to processes carried out by development organizations Project Program management Release management Change Management Configuration Management Organization Value management Portfolio management Estimation Compliance

28 Some value metrics for innovation and product leadership Objective What new sets of value can the products deliver? Metrics Revenue growth Portfolio value Project value How quickly can the product be delivered? Does it establish new markets for the corporation? Cycle time Architecture value Customer growth Revenue per customer

29 Some value metrics for operational efficiency Objective System throughput System stability Code productivity Time to delivery Metrics Transactions/sec Mean and variance of response time Uptime Mean and variance of time to recovery Klocs/prog month Function points/prog month Cycle time Test execution cost in $ for a release

30 Value metrics for client Intimacy Objective Customer defects reduced Customer support calls reduced Metrics Customer reported defects Customer support calls Requested enhancements delivered Number of enhancements Cycle time for enhancements

31 Topics Uncertainty and development risk Value and Productivity Governance to improve productivity Governance for agility

32 Project agility Ability to respond to changing requirements, dependencies Apply governance process to distribute rights to foster extended team learning Inception Elaboration Construction Transition/Maintenance Innovation Operational Efficiency Client Intimacy High Variance Medium Variance Low Variance

33 Kinds of development: Initial variance Inception Elaboration Construction Transition/Maintenance Variance in Cost, Schedule New platform architecture High Variance New capability with existing architecture Medium Variance Change requests to existing code Low Variance Much discovery Some discovery Little discovery

34 Tailoring the governance solution Kind of value for organization processes Kind of projects Full variance foster discovery and learning Medium Variance architecture alignment, lean methods Low variance focus on automation, cost Inception Elaboration Construction Transition/Maintenance Variance in Cost, Schedule New platform architecture High Variance New capability with existing architecture Medium Variance Change requests to existing code Low Variance Much discovery Some discovery Little discovery

35 Organization agility Ability to respond to changing business needs, i.e., staying aligned Execute governance solution periodically revisiting business needs Plan Set business and IT objectives, set scope, policies and practices; set measurable goals Set Objectives Evaluate and analyze results against current business and IT objectives; determine value and risk of IT and other resources; provide business insight and use it to improve the governance solution Assess Analyze Evaluate Governance Lifecycle Monitor Control Design Deploy Implement Design, deploy, and automate governance solution (controls and measures; organizations; roles and responsibilities, polices, and compliance) Execute governance solution; monitor operational performance, compliance and risk events; Manage

36 Rational supports the full range of variance faced by development projects Variance in Cost, Schedule Inception Elaboration Construction Transition/Maintenance Analysis, Modeling, Design & Construction Requirements & Analysis High Variance Process and Portfolio Management Medium Variance Traditional Programming Languages & Compilers Software Quality Management Change Configuration & Release Management Low Variance Much discovery Some discovery Little discovery

37 Some final thoughts The choice is not between governance and no governance. The choice is between good and bad governance. Good governance increases productivity and agility. Good governance requires attention.

38 Thank You

Development Environment Definition

IBM Rational January 2011 Technical White Paper Development Environment Definition Ensuring a comprehensive consideration of all elements of a development environment 2 Development Environment Definition