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1 February 7, 2018

2 Risks Business Risks Products/ Deliverables Project Risks Organizational Bus. Benefit Clear? Functions/ Rqmts Clear? Schedule Constraints? Politics Competition? Quality/ Accept. Crit. Clear? Budget Constraints? Stakeholders Customer Needs Identified? Technical Challenges? PM Experience? Virtual Team? Economy Team Resources Available? February 7,

3 1) What is the principal cause of project failure? A Vague, ambiguous scope statement. (Not being on the same page with the customer regarding scope.) This will lead to what we hate most! Scope Creep! 2) Allowing Half-Baked Ideas to Survive. 1 How do we handle these risks traditionally? How do we handle them using Agile? 1) Gopal Kapur Ten Dumb Mistakes Project Managers Make 1996; Management s Seven Deadly Sins 2013 February 7,

4 Make dust or eat dust! If you are standing still, you are falling behind! The only thing that is constant is change! Companies are dealing with global marketplaces, and more competition than ever. Customers are very demanding, very fickle The need to adapt to changing marketplace conditions is greater than ever February 7,

5 The World Is Flat That Used to Be Us - How America Fell Behind in the World It Invented Thank You For Being Late We are in an age of accelerations February 7,

6 In this age of accelerations, companies need to be very good at projects: creating new products and services that meet the demands of this changing marketplace. As project managers, we are agents of change, and key drivers of change. What s the most important project management methodology in this age of accelerations? Agile! February 7,

7 We start out behind schedule! With next to no budget! Unclear what resources we will be able to get Difficult Stakeholder Issues Customer and sponsor don t know what they really want! February 7,

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10 Many of our key risks and challenges occur right at the beginning of the project. Agile provides a very different approach for the dealing with these risks There is no one perfect approach or methodology. Most projects are probably hybrid Project Managers must know traditional approaches, as well as Agile For this to work, Senior Management must buy-in to the Agile concept and culture. Agile is not just a set of nice tools for the project team. There will be key challenges in selling Agile concepts to senior management, and getting their buy-in. All Rights Reserved Best Practices Team, LLC February 7,

11 #1) A poorly written Scope Statement which leads to Scope Creep. (Also called Requirements Creep. ) Missed requirements Misunderstood requirements Complexity - Requirements were not decomposed properly Missed key stakeholders in obtaining requirements February 7,

12 Requirements: Charter Scope Statement Communications Stakeholder Management

13 Do Requirements well, and create a Scope Statement where: Acceptance criteria well defined and SMART Specific Measurable Acceptable/Attainable/Agreed/Achievable Realistic/Reasonable Timebound Define boundaries and exclusions February 7,

14 World s most expensive fighter airplane. Each plane was estimated to cost $138M, but actual costs were $412M each when production was stopped in Years behind schedule, and billions of dollars over budget. According to Dr. Steven Meier, the program suffered from: Requirements creep Design by committee Over-zealous stakeholders advocating for including requirements. Especially untested, immature technologies Overly optimistic estimates of time and cost for adding numerous features Overly complex design February 7,

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16 The Cone of Uncertainty A simple four phase sequential lifecycle approach for a software project - (SDLC) Conceptual Design Detailed Design Development Testing February 7,

17 We will organize the phases in a sequential manner (or Waterfall structure.) Conceptual Design Detailed Design Development Unit Testing Integrated Testing Phases All Rights Reserved Best Practices Training, LLC February 7, 2018

18 Initiation Release Planning Iteration 1 Iteration 2 Iteration 3 Create Charter Create Backlog High-level estimates Create Roadmap Story Maps Story Estimating Planning Poker Build Release Plan Sprint Planning Development Unit Testing Integrated Testing Sprint Review/Demo. Retrospective Sprint Planning Development Unit Testing Integrated Testing Sprint Review/Demo. Retrospective Sprint Planning Development Unit Testing Integrated Testing Sprint Review/Demo. Retrospective All Rights Reserved Best Practices Training, LLC February 7, 2018

19 Product Owner and team creates the product backlog (requirements) Top priority requirements, most urgent requirements or most risky requirements are chosen for the first iterations Then very quickly (ideally, within 2-4 weeks) build first iteration/prototype and get customer feedback Identify fast failures! - Adapt and choose requirements for next iteration Pareto s law for requirements: 20% of the requirements fulfill 80% of the need Standish Survey 65% of requirements are never used?!? So use a Lean approach: delay adding features until last feasible moment MMF Minimum Marketable Features Doug DeCarlo: If a picture is worth a thousand words, a prototype is worth a thousand pictures. February 7,

20 There must be more flexibility & trust; especially flexibility with the scope requirements Ken Schwaber Scrum is about the art of the possible, not you give me what I paid for, when you said you d deliver it. February 7,

21 Phases Conceptual Design Detailed Design Coding/ Development Unit Testing Integrated Testing Time February 7,

22 Cost Phases Conceptual Design Detailed Design Coding/ Development Unit Testing Integrated Testing Time February 7,

23 Iteration 1 Iteration 2 Iteration 3 Iteration 4 Iteration 5 Sprint Planning Development Unit Testing Integrated Testing Sprint Review/Demo. Retrospective Sprint Planning Development Unit Testing Integrated Testing Sprint Review/Demo. Retrospective Sprint Planning Development Unit Testing Integrated Testing Sprint Rev./Demo Retrospective Sprint Planning Development Unit Testing Integrated Testing Sprint Rev./Demo Retrospective Sprint Planning Development Unit Testing Integrated Testing Sprint Review/Demo Retrospective Cost Time February 7,

24 Risk #2: Allowing Half-Baked Ideas to Survive Gopal Kapur Ten Dumb Mistakes Project Managers Make February 7,

25 Project Lifecycle Kill Points Phases Conceptual Detailed Design Coding/ Development Unit Testing Integrated Testing Phase gates and Kill points occur as we move from phase to phase. February 7,

26 Do Project Selection Techniques Well Net-Present Value IRR Payback Period Analyze Opportunity Costs Economic Value Add Senior Management does this in initiation (feasibility study) before picking a project, and for Kill-Point decisions as we move through the project February 7,

27 Also, - do Progressive Elaboration As we move through the planning processes in a waterfall way, we will get better estimates of time and cost. Management can make more informed decisions on whether or not the business case still exists. February 7,

28 Empirically, on a very frequent basis, demonstrate the deliverables to the customer or customer representative (Product Owner) Identify Fast Failures! Or Fail, but fail fast. Do product reviews with the customer (or Product Owner) very frequently. (At minimum, at the end of each Sprint or Iteration.) - Use low-tech techniques Information Radiator to show the project s progress February 7,

29 Levels of Feedback & Improvement & Knowledge Sharing - XP + Scrum Iteration Demo/ Review Meeting Continuous Collaboration February 7, 2018 All Rights Reserved Best Practices Training, LLC

30 All Rights Reserved Best Practices Training, LLC February 7, 2018

31 Burndown Chart Shows the team and management how we are trending in getting work accomplished against our plan May hide Scope Creep! Was the flatter performance between June and July due to performance, or increased scope? 250 Burndown Chart for Introduction to Agile Class Update Project 200 Story Points Planned (Ideal) Actual March April May June July August Sept All Rights Reserved Best Practices Training, LLC February 7, 2018

32 Burnup Chart Shows what we ve accomplished, or what we ve earned! Particularly useful at the release level. How are we doing achieving our goal? Burnup Chart for Introduction to Agile Class Update Project Story Points Project Scope Work Accepted March April May June July August Sept All Rights Reserved Best Practices Training, LLC February 7, 2018

33 Information Radiator Big Visible Chart Purposefully Low-Tech and High-Touch Burnup Chart for PM Class Update Project Cumulative Flow Diagram Velocity for PM Class Update Project Iteration 1 Iteration 2 Iteration 3 Iteration 4 Iteration 5 All Rights Reserved Best Practices Training, LLC February 7, 2018

34 No! Of course not. There is no one perfect process or methodology for all problems Most projects are probably hybrid projects There are elements that can and should be handled with traditional methods But, oftentimes, there will also be elements that require creativity, and requirements need to be discovered February 7,

35 This is essentially a Time & Materials world! What does senior management typically think of Time & Materials? Not much! Can we make Fixed Price work with Agile? Yes, I can give the customer (or senior management) a fixed number of iterations, and I know the cost and timeframe of each of each iteration. So, I can give them a fixed price. BUT I can t guarantee exactly what we will achieve at the end of the fixed number of iterations! February 7,

36 Agile is not just a nice set of cool tools for the project team to use. Senior Management must be much more involved. The Agile culture (or Agile ethos ) must be adopted throughout the company. Management wants the single point of contact for the project. One throat to choke! February 7,

37 That Used to Be Us: How America Fell Behind in the World It Invented - Thomas Friedman & Michael Mandelbaum Thank You For Being Late - Thomas Friedman Agile Estimating and Planning - Mike Cohn Agile Excellence for Product Managers - Greg Cohen Agile Project Management: Creating Innovative Products - Jim Highsmith Agile Project Management With Scrum - Ken Schwaber Extreme Project Management Doug DeCarlo Identifying and Managing Project Risk: Essential Tools for Project Managers Tom Kendrick Project Impossible Michael Dobson All Rights Reserved Best Practices Team, LLC February 7,

38 Mark Tolbert, PMP, PMI-ACP Best Practices Team, LLC (703) February 7,

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40 Risk Management is absolutely necessary, yes? If you don t do risk well, there is no way you can be? Proactive! We ll look at three key risks that we have to deal with on all projects. We ll look at the traditional approach (or waterfall approach) for handling these risks. Then we ll look at how we handle these risks using Agile. February 7,

41 Can Help Define the Product Roadmap Can Help Define Portfolios and Programs Don t use a centralized, detailed planning approach for defining product roadmaps and portfolio. Instead, use a decentralized, iterative approach with Lean concepts. Many companies today especially in Tech like to describe how agile they are (how quickly they are turning over their product lines). All Rights Reserved Best Practices Team, LLC February 7,

42 But to make Agile work correctly, senior management must buy-in. This is not a simple pancea just for project teams to use that provides nice tools for doing things better. The whole corporation should really be involved and understand. Jim Highsmith Stop Doing Agile and Start Being Agile February 7,

43 Avoid Surprises! (Negative Surprises) What s the traditional approach for handling this risk? Do monitoring & controlling very well. Especially, use EVM! Frequent communications (Both good news and bad news.) But we re doing this analytically through reports and data analysis: S-Curves, Dashboards, EVM metrics TCPI February 7,

44 Agile does it in an even more effective way! How? Empirically. In each Sprint review meeting every 2 to 4 weeks demonstrate the products of the Sprint to the customer More frequent customer interaction February 7,