Project management the agile way

Project Management the Agile Way Making it Work in the Enterprise John C Goodpasture, PMP Copyright ©2010 J Ross Publishing, Inc ISBN 978-1-60427-027-3 Printed and bound in the U.S.A Printed on acid-free paper 10 Library of Congress Cataloging-in-Publication Data Goodpasture, John C., 1943Project management the agile way : making it work in the enterprise / by John C Goodpasture p cm Includes index ISBN 978-1-60427-027-3 (hardcover : alk paper) Project management I Title HD69.P75G6655 2010 658.4’04 dc22 2009045639 This publication contains information obtained from authentic and highly regarded sources Reprinted material is used with permission, and sources are indicated Reasonable effort has been made to publish reliable data and information, but the author and the publisher cannot assume responsibility for the validity of all materials or for the consequences of their use All rights reserved Neither this publication nor any part thereof may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher PMI, PMP and PMBOK are registered mark of the Project Management Institute, Inc PMI does not endorse or otherwise sponsor this publication The copyright owner’s consent does not extend to copying for general distribution for promotion, for creating new works, or for resale Specific permission must be obtained from J Ross Publishing for such purposes Direct all inquiries to J Ross Publishing, Inc., 5765 N Andrews Way, Fort Lauderdale, FL 33309 Phone: (954) 727-9333 Fax: (561) 892-0700 Web: www.jrosspub.com Dedication To Emma, Zoey, and Luke who helped press the keys! Contents Acknowledgment ix Introduction xi Chapter A Quick Read A Short History Provides Context Agile Manifesto and Agile Principles Set Up Agile Methods Project Development Lifecycle Covers Business Case-to-Business Delivery Some Terminology to Make the Reading Easier 11 Plan-driven Provides Lessons Learned 12 Four Agile Methodologies Are Representative 17 The Spiral Methodology Is a Risk Reducer 24 Summary and Takeaway Points 30 Chapter The Agile Business Case 35 The Business Case Adds Value to the Project 35 Business Value Models Are the Setup for the Business Case .40 Project Balance Sheet Helps Communicate with the Business Decision Makers .45 The Agile Business Case Is Built by Levels 50 Summary and Takeaway Points 58 Chapter Quality in the Agile Space 61 Quality Is Built Around Values, Principles, and Practices 62 Thought Leaders Set Up Agile Quality Values and Principles .64 Quality Values and Principles Are Planned into the Agile Methods 71 Summary and Takeaway Points 79 Chapter Managing Test 81 Principles and Practices Guide Testing-in Quality .81 Test-driven Development Is the Starting Point 83 Test Planning Is Essential to Good Test Metrics 89 Testing by Sampling Conserves Time and Money .99 v vi     Contents Testing a Hypothesis Builds Confidence 104 Summary and Takeaway Points 106 Chapter Developing the Scope and Requirements 109 The Most Affordable Scope Is a Best Value .110 Vision Is the Beginning .112 An Agile Partnership with the Customer Is Built on Rights and Responsibilities 114 There Is a Process for Requirements 116 Teams Work with Stories, Models, and Prototypes 121 WBS Is a Tool for Organizing Scope 124 Manage Scope Emergence with the Planning Horizon 130 Summary and Takeaway Points 134 Chapter Planning Cost and Schedule 139 It’s Agile! Why Plan? 139 Make Agile Plans for Agile Projects 146 Time Boxes Are the Building Blocks of Schedules in the Agile Space .154 Summary and Takeaway Points 161 Chapter Estimating Cost and Schedule 165 The Character of Estimates Affect Predictability 166 Scope, Complexity, and Velocity Drive All Estimates .174 Summary and Takeaway Points 183 Chapter Teams Are Everything 187 Teams Are Formed from Social Units .188 Principles and Values Guide Teams 191 Teams Are Building Blocks in the Agile Project 195 Some Teams Work; Others Do Not 206 Matrix Management Manages Resources in the Agile Space .213 Agile Teams Recruit their Members 216 Summary and Takeaway Points 217 Chapter Governance 221 Governance Is Built on Quality Principles 222 Governance Verifies Compliance 231 Summary and Takeaway Points 233 Chapter 10 Earning Value 237 Defining Value 238 Accounting for Value 239 Earned Value Is Earning Back the Investment 240 Contents     vii Value Is Earned at Every Agile Release .248 Plan, Do, Check, and Act at Every Release 254 Summary and Takeaway Points 259 Chapter 11 Scaling Up and Contracting 261 Scale Amplifies Every Problem 261 Networks Enable Large Scale 267 Virtual Teams Expand Throughput 270 Agile-by-Contract Enables Scale .272 Summary and Takeaway Points 280 Chapter 12 Benefit Realization 283 Benefits Are Part of the Plan .283 Measuring Results Drives Improvements 288 Summary and Takeaway Points 295 Appendix I Methodologies 297 The SCRUM Methodology Is Management-centric 297 Extreme Programming Is Disciplined 302 Crystal Methodology Is Human Powered 310 EVO Methodology Is PDCA-centric 316 Summary and Takeaway Points 320 Appendix II Glossary 323 References 331 Index 337 Acknowledgments There are many people to acknowledge who helped put this manuscript in a readable form and who lent their time and energies to making it a better book Reading a draft manuscript is a challenge, and finding a way to tell the author what has to be fixed is an art, but to the beta-book crew who worked along with me, there is really no way to say thank you enough First, a tip of the hat to Andrew Willard, an experienced executive in information technology (IT)—recently retired as Vice President for IT at Alternative Asset Management—who writes game software as a hobby Andrew read many of the most difficult chapters and gave generously of his time to critique and cajole and encourage a better product Andrew first heard about the book during our mutual trip to Costa Rica in the spring of 2009 He got right into the project soon as we returned to the USA and provided inestimable help reviewing the draft text Second, my colleague from Harris Corporation in Melbourne, FL, Dr Ken Ports, steeped in the science of project management and system engineering, provided valuable comments that I have incorporated throughout the text Dr Ports, now Director of Strategic Operations at Quantum Technology Sciences, particularly steered me straight on the chapters about quality and testing Karen Ellers, and Cathy Cortright, two terrific and experienced project managers, with whom I have worked on various web projects and ERP projects for Lanier Worldwide and Ricoh Americas Corporation, gave me many insightful comments, as always My many colleagues at Lanier Worldwide provided numerous opportunities to practice these ideas as Director of Development for E-Business and Lanier’s web information portals Bob Rhodes, as the Vice President and Chief Marketing Officer for E-business, ever demanding for customer value, patiently played the role of executive sponsor while my development team, led by Tim Pattison, worked out the kinks in agile methods ix INDEX comparison, people, 21 comparison, process, 22 comparison, technology practices, 23 within cycle of cycles, 31 cycles, responsiveness, and, 19–21 mission of, 31 as outcome focused, 17, 18–19 simplification, delivery and, 19 value of, 30 Agile network, described, 201 Agile networks, mind-shifting to, 199, 200– 201 network logic and, 201–203 Agile planning poker, 182 Agile plans for agile projects, 146–153 cone of uncertainty, 147–149 planning for Ag-PDCA, 151–152 planning schedule losses, 150 planning throughput, 149–150, 151 rhythm of schedule, 152–153 subsidiary function, principle of, 146 voice of business in plans, 146–147 Agile PMB, 255, 256 Agile Principles, 5–6 Principle 1, 241 Principle 2, 203 Principle 3, 160, 161 Principle 4, Principle 5, 14, 209 Principle 6, Principle 7, 250 Principle 8, 152, 209 Principle 9, Principle 10, Principle 11, 161 Principle 12, 151–152 Agile projects, sweet spot for, 30 Agile schedule grid, 156 A Acceptance tests, 84 Accountability business case and, 230 commitment, and, 271 mechanism for, 229–230 teams, commitment and, 193 Activity vs product, 177 Activity-driven network schedules, 183 Adapting plans, 140–141, 161 Adaptive planning, 36 Adaptive/Emergent methods, 110 Administrative assistant daily agenda, team-of-teams, 206 Adoption, benefit realization and, 287–288 Affordability, balanced scorecard and, 42 After receipt of order (ARO), 155 Agile commitments, 10 Agile estimates, 166 Agile EV comparison, 253–254 Agile lifecycle, 8–9 Agile manager’s agenda, 9–10 Agile Manifesto agile principles and, 4–6 customer collaboration over contract negotiation, documentation and, 268 individuals/interactions over processes/ tools, naming of, PD-PDLC and, 140–141 responding to change following a plan, working software over comprehensive documentation, 4–5 Agile methods advantages/disadvantages of, 24–25 common idea in, 18 compared, 21–24 337 338     Project Management the Agile Way: Making It Work in the Enterprise Agile-by-contract See Contracting Ag-PDCA (agile PDCA cycle) See also Plan-do-check-act as drum in DBR, 153 earned value and, 250 planning for, 151–152 Ag-PDLC (agile PDLC), 8–9 emergent characteristic, 8–9 incremental characteristic, iterative/evolutionary characteristic, NPV and, 294 Annual business planning cycle, 20 Architecture impact on TDD, 89 planning for, 161 planning horizon and, 130–131 scaling up and, 262 XP and, 309 Architecture/system engineering work stream, 129 ARO See After receipt of order Asserts meaning of, 85 testing with scripted, 86 Assignment of resources See Matrix management; Resource Assignment Matrix Attempt sequence, 30-50-20, 92–94 Automated tests, 84 B Backlog, project allocation in teams, 203 backlog variation, 316 estimates and, 172–173 Balance sheet, planning the, 141–142 Balanced scorecard, 40–43 See also Key performance indicators agile and, 41–43, 44, 45 customer perspective, 43, 44 financial perspective, 42, 44 internal operations perspective, 43, 45 KPIs on, 230 learning/innovation perspective, 43, 45 Baseline See Performance measurement baseline BDUF See Big Design Up Front Beck, Kent, 3, 64, 302, 304, 306 Bell curve, 170, 171 Benchmarking meter/scale, building estimate, 176–178 scorecards and, 231, 234 Benefit plan, 284 Benefit realization, 283–295 adoption and, 287–288 ambassadors for benefits, 286 benefits are part of plan, 283–288 benefits manager and, 284 big-bang plans, avoiding, 285 business preparation work stream, 284– 285 data collection, benefits and, 290 driving for benefits, 285–286 handing off for benefits, 288 measurement, improvements and, 288– 295 measuring results and, 288–295 regression applied to benefits, 289 risk-adjusted view, 295 sequencing for benefits, 286 Benefit value, 238, 239 Best value, 135, 239 defined, 111, 134, 238 Best-value outcome as empirically derived, 37, 38–40 point solution and, 36 strategy and, 40 value flow-down and, 39 Beta distribution, 171, 172 Big Design Up Front (BDUF), 6, 19 Black box, 50 lean scorecard for, 231–233 project black box with governance, 232 Boehm, Barry W cone of uncertainty and, 147 Delphi methodology and, 181 spiral methodology and, 24–27, 29 Bonused managers, 211 Bridge, establishment of, 50, 58 Brooks, Fred P., 49, 265 Brook’s Law, 166, 182–183, 200, 251 Building an estimate, 176–178 compare/make adjustments, 177 scoring system, 177 story points and, 177–178, 179 wideband Delphi and, 176 Bureaucracies/populations/partnerships, 189 Burn charts, 315 Index     339 Burn-down/burn-up progress, 313 Business, big picture issues and, 263 Business case, 35–59 accountability to, 230 adding value to project, 35–36 agile framework for, 36, 37 bridge establishment and, 50, 58 business value models and, 40–45 business-case levels, 35–36 checklist of content of, 51 getting started on, 50–52 levels 0, & in, 50, 53–58 milestone planning horizons, 143 planning element relationships, 36, 37–38 relationships in, 38 rights/responsibilities in, 38 seat at table/face-to-face, 52 Business cycles, agile in, 19–21 Business need, project capability and, 47 Business performance, benefits realization, 291 Business preparation work stream, 284–285 Business unit manager, 284 Business value models, 40–45 balanced scorecard, 40–43 project balance sheet and, 45–50 Treacy-Wiersema model, 43, 44, 45 C Calendars and timelines, 154 Centrally planned methods, uncertainty and, 15 Champy, James, 208 Change, responding to, Chaos, 169, 208 Chargeback rate, 144 Charting problem, 313 CoBIT, 224 Cockburn, Alistair, 3, 120, 122, 187 Crystal beginnings and, 310 people as nonlinear, 208 on personal safety/trust, 192 Cohesion and coupling, 87–88 Co-located teams See Virtual teams Commissioned sales staff, 211 Commitment, 271 Common distributions, project management, 171–172 Communication See also Dashboards electronic, 268, 270 in large-scale network, 267–269 teams and, 200 Compensation See Incentives/compensation Complexity complexity drivers, 173 estimating, 180–181, 184 ideas about, 169 planning throughput, velocity and, 149 of requirements, 176 scaling up and, 262 scope, velocity, estimates and, 174–183 software complexity, 69 testing, estimates and, 94, 95 uncertainty, estimates and, 166–167 understanding, 167–169 Compliance, governance and, 231–233 Concurrency situation, 99 Cone of uncertainty, 147–149 optimism/pessimism and, 148 planning waves and, 148 Confidence estimates, 170–171 Confidence figure, sample results and, 102– 103, 106 Conflict, matrix management and, 214 Conflict resolution, 210–211 competitiveness within team, 210 new members in team, 210 not a team player, 210 trusting new relationships, 210 virtual teams, 211 Conformance errors in software, 69 Constantine, Larry, 88 Continuous improvement, software opportunity space and, 69, 70 Contracting, 261–281 concepts for cost/results, 274–275 contract dilemma, 265 contract objectives, 272–273 incentives/rewards and, 276, 277 scale and, 272–276 Contracting in agile space, 277–280 fixed-price contracts and, 276–279 incentive contracts, 276 Contracts cost reimbursable, 279–280 elements for enforceable, 273 fixed-price, 276–279 incentive contracts, 276 negotiation, customer collaboration over, 340     Project Management the Agile Way: Making It Work in the Enterprise as risk management tools, 272 scaling up and, 281 T&M, 280 Cooper, Robert G., 113 Corporate America, teams in, 206 Cost, contracting concepts for, 274–275 Cost accounting, 240 Cost estimates See Estimating cost and schedule Cost reimbursable contracts, 279–280 Coupling and cohesion, 87–88 Covariance, 183 Covey, Steven, 84, 213 four quadrants, 131–132, 134 Crosby, Philip, 68, 71, 79 Cross-training, 209, 216 Crystal family, 3, 320 Crystal methodologies, 310–316 backlog variation, 316 beginnings of, 310–311 body of knowledge of, 311–316 burn charts, 315 compared to other agile methods, 21–24 Crystal Clear process, 209, 317 Crystal Principles, 311–312 Crystal techniques, 314 godfather of, 122 implementation strategies, 312, 313 people are not machines, 208–209 people-power theme of, 310 principles in, 192 Culture contracts and, 277 informality, business relationships, 268 teams and, 209 virtual teams and, 212, 213 Cunningham, Ward, 3, 303 Customer at arm’s length, 19 big picture issues and, 263 customer scale, 263–264 defined, 62 end user/business terms, 238 role in agile team, 199 role in PD-PDLC, 16 and the user, 61 Customer e-mail address test, 87 Customer perspective, agile in, 43 Customer-driven value, 46, 71 Cycle of change, business preparation and, 285 Cycle of cycles, 31 D Daily plan, 145 Daily stand-up meeting, 271 Dashboards, 231, 259, 269 Data collection, benefits and, 290 Data errors in software, 69 DCF See Discounted cash flow methods Decision makers, 229–230 five-stage decision-making process, 287–288 Decision rights, empowerment and, 223 Decision rights, protocol for, 227–229 See also Leadership rules for decision making, 228–229 who/what/how much, examples, 228 Defects defect creep, 69 following the defect, 68 known/unknowable, 69 in software, 69 unforeseen consequences and, 74 zero defects, 68 Defined process control, 65, 73 Six Sigma and, 68 Deliverables, nonfunctional, 161 Deliveries, incremental, 294, 295 Delphi method/poker process, estimating, 181–182 Deming, W Edwards, 71, 79, 316 agile products, impact on, 66 incentives/penalties and, 277 PDCA cycle and, 65–66 zero defects and, 68 Descriptive statistics, 76 Design-Measure-Analyze-Improve-Control (DMAIC), 68 Detail planning See Rolling-wave planning Development, test-driven See Test-driven development (TDD) Diffusion of innovations, 187 Discounted cash flow (DCF) methods, 286 Distributions, rule of thumb, 150 DMAIC (Design-Measure-Analyze-ImproveControl), 68 Six Sigma and, 71 Index     341 Documentation Agile Manifesto and, 268 contracts and, 265 high ceremony and, 14 as not cost effective, 19 working software over, 4–5 Documentation management work stream, 129 DRIFT (doing it right the first time), 68 Drivers, cost/schedule estimates, 172–174 Drucker, Peter, 64 Drum-buffer-rope (DBR), 153 Duration, cost and, 175–176 E Early adopters of change, 287 Early thinkers, untraditional methodologies, 2–3 Earn-burn data, 271 Earned schedule, 246, 247 Earned value (EV), 237–260 accounting for value, 239–240 agile EV arithmetic, 243 agile EV comparison, 253–254 agile project background, 251 agile releases, value at each, 248, 250–254 agile rule for, 237 applied to agile methods, 250 commitment, focus on, 247 defining value, 238–239 as earning back investment, 240, 241 earning forecasts for project, 249 EV example 1, 242–244, 245 EV example 2, 244, 246–247 examples in agile terms, 250–253 forecast, 247–248, 249 formulas for, 257 labels/acronyms used in, 242 M1 milestone results, 243 M2 milestone results, 244 M3 milestone results, 244 PDCA at every release, 254–259 PMB reviews, M1-M3, 251–253 PMB scorecards, 245, 246 reporting, dashboards and, 259 three components of, 242–248 Economic value added (EVA), 291 EIA, 748, 242 80-20 rules, 67 Emergent/adaptive methods, 110 Empirical process control, 65–66 Entropy, 169 Environmental drivers, cost/schedule and, 174 Envisioning, 112–113 Error control chart example, 74 Error rate, software code, 70 Estimates within a range, 169–172 common distributions, project management, 171–172 confidence estimates/bell curve, 170–171 confidence/real value and, 170 risk-weighted average/expected value, 169–170 Estimating cost and schedule, 162–185 Brook’s Law, 166 character of estimates, 166–172 close/good enough is agile, 167, 172, 181 complexity, estimating, 180–181 complexity/uncertainty and, 166–167 cost/duration, how derived, 175–176 Delphi method/poker process, 181–182 drivers on estimates, 172–174 environmental drivers and, 174 estimates become commitments, 167 estimates within a range, 169–172 estimating scales, popular, 180 interdependence/covariance and, 183 mainstreaming estimating practices, 175 meter/scale, building estimate, 176–178 scope/complexity/velocity and, 174–183 staffing effects on estimates, 182–183 story points and, 177–178, 179, 184 velocity, estimating, 178, 180 Estimating hours, testing and, 94–95, 96 complexity and, 94, 95 tasks and hours, 94–95 test plan hours, 95 EV See Earned value EVA See Economic value added EVO methodology, 3, 209, 316–320 compared to other agile methods, 21–24 delivery cycles/steps in, 20 EVO cycle plan, 319 EVO cycle/EVO step, 317, 318 EVO principles, 317, 318 evolutionary term and, 316 as PDCA-centric, 316–320 342     Project Management the Agile Way: Making It Work in the Enterprise planning EVO cycle, 318–319 staffing EVO project, 320 Extensions, 122 Extreme Programming See XP Groups as genesis of teams, 188–189 Group of 17, 3–4 teams from, 190–191 F H Farquhar, John, 181 FFP See Firm-fixed price completion contracts Financial perspective, agile in, 43 Finley, Michael, 207 Firm-fixed price (FFP) completion contracts, 278 Fitness for use concept, 67 Fixed-fee arrangement See Cost reimbursable contracts Fixed-price contracts, 276–279, 281 Fixed-price incentive (FPI) contracts, 279 Forming-storming-norming-performingadjourning, 190 Formula confidence range, 103 earned value (EV), 257 net present value (NPV), 292 present value, 292 Fowler, Martin, 3, 303 FPI See Fixed-price incentive contracts Free quality, 68 Free-value, 238, 239 Future, discounting the, 291–295 Hammer, Michael, 208 Handoffs, 288, 295 Headcount, business performance, 291 High ceremony project methodology, 14 Highsmith, Jim, 268 History, 2–4 early thinkers, untraditional methodologies, 2–3 Group of 17, 3–4 Hopper, Grace, Humphrey, Watts, 70 Hypothesis testing, confidence building, 104–105 hypothesis example, 105 null hypothesis, 104 Type 1/Type errors, 104 zone of acceptance, 105 G GAAP, 224 Generic network, 200 Generic team schedule, 202 Gilb, Tom, 316 Glossary, 11–12 Goldratt, Eliyahu M., 153 Governance, 221–260 compliance verification and, 231–233 empowerment/decision-making and, 223 governance council, 225–227 guiding principles, 234 mechanics and, 224 mission statement for, 222 operating elements for, 224–230, 234 quality principles and, 222–223 reasons for, 233–234 Government WBS, 128 I IEEE 12207, 43 IEEE 830, 117 IEEE WESCON, 1970, 14 Incentives/compensation contracted, 276, 277 cost reimbursable contracts and, 280 teams and, 211–212, 217 for virtual teams, 271–272 Inclusions, 122, 123 Incremental product deliveries, 294, 295 Index story cards, 269 Inference statistics, 76–77 Innovation, 287 See also Diffusion of innovations Instant messaging, 268 Interdependent activities, 183 Internal operations perspective, agile in, 43 International Standards Organization (ISO), 216, 224 Internet, 268 Investment value, 238 Investment/funding, balanced scorecard and, 42 ISO See International Standards Organization Index     343 Iteration-0, 121, 135, 161 Iterations, cycles and, 19–20 Iteration/sprint and release schedule, 157–160 shift-right phenomenon and, 159 typical release schedule, 158 ITIL, 224 J Jefferies, Ron, 3, 303 Juran, Joseph M., 66–67, 71, 79 agile products, impact on, 67 fitness for use concept and, 67 Juran trilogy, 66 Just-in-time, 71 K Kano charts, 113–114 ah-hah! quadrant of, 223 feature and function, investments and, 114 insights provided by, 113, 114 nonfunctional deliverables and, 161 unimportant requirements and, 132 Kaplan, Robert, 40–43 Key performance indicators (KPIs), 288–290 See also Balanced scorecard Knowledge worker, 64 KPIs See Key performance indicators L Labor plans by team-by-team, 144–145 Leadership See also Decision makers empowerment and, 223 situational, 191 Lean practices governance council and, 226 for quality, 71 scorecard for black box, 231–233 Lean thinking, 64–65 Learning/innovation, agile in, 43 Legacy testing, 85 Lencioni, Patrick, 187 Lessons learned, PD-PDLC and, 12–13 Level 0, & business case, 50, 53–58 architecture and, 161 building Level case, 54, 55 building Level case, 54, 56–57 building Level case, 57–58 business case pyramid, 53 Level 0, balance sheet and, 141 milestones and, 155, 156 Level-of-effort (LOE), 166 Leverage, empowerment and, 223 LOE See Level-of-effort Logic errors in software, 69 Low ceremony project methodology, 14 M Mainstreaming estimating practices, 175 Malataux, Niels, 265 Management agenda, agile methods as, Management miscues, teams and, 207 Matrix management, 213–216 agile tool, matrix as, 216 cross-points in, 213–214 matrix, generic, 215 matrix attributes, 213–216 project manager responsibilities, 214 project mission in, 214 McConnell, Steve, 65, 149 Measurement driving improvements, 288–295 discounting the future, 291–295 measurement scorecard, 289–290 net present value and, 291–295 transient benefit effects, 290–291 Measurement scorecard, 289–290 See also Balanced scorecard; Scorecard Merge bias, 159 Metrics See also Balanced scorecard; Key performance indicators; Measurement driving improvements quality metric, 75 test planning and, 89–98 MIE See Minimum information elements Milestones getting to done at, 159 SCRUM metaphor and, 298 Minimum information elements (MIE), 268, 269 Mission statement, governance, 222 Mitigation procedures, 216–217 Models/prototypes, 124 Multiplier effect, 94 Multiskilled performance units, 208 Multi-year strategic planning cycle, 20 344     Project Management the Agile Way: Making It Work in the Enterprise N N squared effect, 200, 264 illustrated, 265 real teams/virtual teams and, 270 Net present value (NPV), 291–295 benefits discount schedule, 293 calculation, 294 formula for, 292 functions and, 292–293, 294 present value risk curve, 294 Network agile, mind-shifting to, 199, 200–201 communicating in large-scale, 267–269 generic, 200 scaling up and, 267–269, 280 work dependencies in, 269 Network logic, 201–203 Nonaka, Ikujiro, 2–3, 298, 300 Nonfunctional deliverables, 161 Nonlinear behavior, 311 Nonlinear timelines, 160 Normal curve/distribution, 171, 172 Norton, David, 40–43 NPV See Net present value Null hypotheses, 104, 105 O OBS See Organizational breakdown structure Operating efficiency, business performance, 291 Operating elements, governance and, 224–230 accountability, mechanism for, 229–230 decision makers, 229–230 decision-rights, protocol for, 227–229 governance council, 225–227 management framework, 225, 226–227 policy attributes, 225 policy example, 226 policy model for, 224–225 Operating model, 126 of agile team, 196, 197, 198, 199 Operational effectiveness measurement of, 43 teams and, 195–196 Opportunity, value added to, 39 Opportunity space, 68–69 in agile world, 70 earning opportunity, 259 partitioning of, 69, 70 Organization chart, 126 Organizational breakdown structure (OBS), 126 Ownership, 284 P P&L See Profit and loss Pair-programming, 216, 303 Paradigm for decision making, 287–288 Pareto, Vilfredo, 67 Pareto chart, 67, 78 Partnerships/bureaucracies/populations, 189 Passing the flag, 288 Payback, balanced scorecard and, 42 PDCA See Plan-do-check-act PDF See Probability density function PDLC See Project development lifecycle PD-PDLC (Plan-driven PDLC), 6–8 advantages/disadvantages, 16–17, 18 Agile Manifesto and, 140–141 big-bang plans of, 285 customer role in, 16 earned value and, 250 high process, high ceremony, 14 lean scorecard/black box, 231, 233 most salient point of, NPV and, 294–295 other words for, resource-planning model behind, 209 waterfall variant of, 12–13, 15 People, agile methods compared, 22 People are not machines, 208–209 Performance measurement baseline (PMB), 242 examples measured PMB, 258 Performance unit multiskilled, 208 team as, 189 Personal safety, 192 Pipeline grid, 97–98 Plan-do-check-act (PDCA), 71, 256 See also Ag-PDCA agile EV measurements, 255, 257 cycle of, 65–66 at every release, 254–259 EVO methodology and, 316–320 planning the agile PMB, 255 release schedule and, 158 Index     345 reported value earnings, 259 scorecarding value, 257–258 Plan-driven lifecycle, basic sequential, Plan-driven methods, 30 Plan-driven PDLC See PD-PDLC Plan-driven variants, 12 Planned-in time buffers, 183 Planning cost and schedule, 139–163 agile and, 139–140 agile plans adapt, 140–141 agile plans for agile projects, 146–153 balance sheet, planning the, 141–142 daily plan, 145 labor plans by team-by-team, 144–145 not one, but many plans, 142 planning ideas, summary of, 153–154 planning more important than plan, 142 plans, summary of, 145 Principle and, 140 time boxes, agile space and, 154–161 time-boxing plans, 144 timelines and calendars, 154 work stream plans, 142–144 Planning horizon, scope emergence and, 130–134, 135 architecture and, 130–131 rolling-wave planning and, 131–134 Planning ideas, summary of, 153–154 Planning schedule losses, 150 Planning throughput, 149–150 complexity/velocity and, 149 developer’s distributions, 151 optimism/pessimism and, 150 Planning wave See Rolling-wave planning Plans, summary of, 145 PMB See Performance measurement baseline Point solution, 36–37 Populations/bureaucracies/partnerships, 189 Postimplementation design-verification tests, 84 Present value, 292 See also Net present value risk curve for, 294 Principles/values See also Agile Principles team success and, 191–195 values, 192–194 Probability density function (PDF), 171 Problem identification, progress tracking and, 271 Process, agile methods compared, 21 Process control, 65 Product deliveries, incremental, 294, 295 Productivity, 152 Profit and loss (P&L), 54 Progress tracking, 271 Project backlog See Backlog, project Project balance sheet, 45–50, 58 as agile management tool, 48–49 bridge establishment and, 50, 58 customer-driven value and, 46 pictorial of, 49 planning with, 49–50 risk tolerance and, 45 risk-taking and, 47 as value, risk, capability framework, 47–48 Project burn-down/burn-up progress, 313 Project capability, business need and, 47 Project development lifecycle (PDLC), Project management common distributions for, 171–172 decision-rights, 228 handoffs and, 288, 295 Project manager role, in agile team, 198 Prototypes/models, 124 Pull concept, 71 Q Quadrants, wave planning and, 131–132 Quality, 61–80 best management ideas of, 61 customer, favoring of, 66–67 deployment elements, agile projects, 73 error control chart example, 74 fitness to use parameters, 67 histogram, measures from users, 78 lean practices for, 71 lean thinking and, 54–65 as nonnegotiable value, 79 PDCA cycle and, 65–66 planned into agile methods, 71–78 planning/deployment and, 72–73 sampling, validation and, 76–78 scorecards for, 73–76 Six Sigma revolution, 68–71 testing-in, 81 thought leaders and, 64–68 values, principles & practices, 62–63 zero defects/free quality, 68 346     Project Management the Agile Way: Making It Work in the Enterprise Quality goals, 72 Quality metric, 75 Quality practices, 63 Quality principles, 62, 63 Quality values, 62 R RAM See Resource Assignment Matrix Recognition See Incentives/compensation Red-Green-Refractor sequence, 84, 86, 88, 106, 312 Refactoring, 84, 302 Regression applied to benefits, 289 Regression assurance, 88 Release events, 20 iteration/sprint release schedule, 157–160 release schedule, typical, 158 Requirements development, 109–134 emergent/adaptive methods, 110 framework, beginning with, 117–118 framework practices, 118–119 interviews for needs/wants, 120 Iteration-0, 121 process for, 116–119 requirements framework, 118 rights/responsibilities, agile and, 114–116 stories/models/prototypes, 121 use cases/user stories/models/prototypes, 122–124, 125 vision and, 112–114 Requirements engineering, 116 Requirements framework, 118 Requirements management actionable requirements/complexity, 173 macro picture of, 313 requirements complexity, 176 TDD and, 88 Requirements model tools, 125 Resource Assignment Matrix (RAM) functional managers and, 128 RAM version of WBS, 127 WBS-OBS matrix denoted as, 126 Resource management See Contracting Results, contracting concepts for, 274–275 Rewards See Incentives/compensation Rhythm, productivity and, 88 Rights/responsibilities, agile and, 114–116 customer responsibilities, 115 customer rights, 115 team rights, 115–116 wicked thinking, 116 Risk/risk management balanced scorecard and, 42 competition and, 274 cone of uncertainty and, 147–149 contracts and, 273–274 major risks, waterfall methodology, 19 mitigation, waterfall methodology, 16 in PD-PDLC waterfall, 15 present value risk curve, 294 risk tolerance, 45 scale and, 272–274 spiral method, risk reduction and, 24 Robbins, Harvey, 207 Rogers, Everett, 287 Rolling-wave planning, 131–134, 140, 162 predictability with, 133–134 quadrants, prioritization and, 131–132 requirement priorities for, 131–132 work stream plans and, 142 Royce, Winston, 14–16, 25 S Safety, boundaries and, 223 Sales/marketing preparation work stream, 129 Salt-and-pepper story, 99–101 conclusions, 100 step-by-step sampling and, 101 Sampling, quality validation and, 76–78 See also Testing by sampling inference/descriptive statistics, 76–77 simplifying ideas for, 77 Sarbanes-Oxley standards, 224 Scaling up, 261–281 amplification of problems when, 261 big picture issues and, 262–263 customer scale, 263–264 getting to smaller, 264, 265–266 N squared effect and, 264, 265 networks enable large scale, 267–269 techniques for, 280–281 virtual teams and, 270–272 work dependencies in network, 269 Schedule See Estimating cost and schedule Schedule losses, planning, 150 Scheduling backwards, 160 Scheduling in the space, 155 Index     347 Schwaber, Ken, 3, 68, 297 on empirical process control, 65–66 SCRUM and, 160, 300 Scientific management, 64 Scope, defined, 111–112 Scope creep, 87 Scope development, 109–134 affordable scope as best value, 110–111 architecture and, 130–131 definition of scope, 111–112 emergent/adaptive methods, 110 must-do’s and, 111–112 rights/responsibilities, agile and, 114–116 rolling-wave planning and, 131–134 scope emergence, planning horizon and, 130–134 vision and, 112–114 WBS capture tool for, 111, 124, 125–129 Scorecard See also Balanced scorecard and benchmarks, for results, 231, 234 cost reimbursable contracts and, 280 lean, for black box, 231–233 scorecarding value, AC/EV measurements, 257–258 for team, 203, 204, 205 Scorecard, testing forecast hours by attempt, 96 project assumptions, 96 staff hours for example, 97 test case, 95 Scorecards for quality design entries for, 75 error condition example, 76 error control chart example, 74 project example for, 75 SCRUM, 209, 297–302, 320 basic SCRUM sprint, 303, 306 coining of term, compared to other agile methods, 21–24 contemporary methodology, 300–302, 303 features of methodology, 299 human factors, 300 iterations as ‘sprints,’ 20 main features of, 300–302 practices in, 300 progress tracking/problem identification, 271 sports metaphor, 298–299 sprint recommendations, 160 Shewhart, Walter, 66 Shift-right phenomenon, 159 Simplicity architecture and, 89 complexity and, 168 pull and, 71 Situational leadership, 191 Six Sigma agile assisted by, 68–69, 71 methodology of, 65 revolution of, 68–71 Software complexity, 69 Some teams work, others don’t, 206–213 conflict resolution, 210–211 incentives/compensation, 211–212 people are not machines, 208–209 why teams can/do work, 208 why teams don’t work, 206–208 Spiral, planning the, 160, 162 Spiral method advantages/disadvantages of, 30 feasibility questions and, 18 laid out linearly, 29 launch of, 28 in a linear world, 27, 28–29 mind-snap of, 25–26 motivations for, 25 as risk reducer, 24 as risk-driven methodology, 26 scheduling of spiral, 29 segmentation/phasing in, 26, 27 spiral cycles, 26–27, 28 Sponsor decision-rights, 228 Sprint See Iteration/sprint and release schedule Staffing, effects on estimates, 182–183 Stand-up meeting, daily, 271 Stationary, statistical property, 99–100 Steering committee, 206 Story cards/index cards, 269 Story point defined, 177 effort/outcome and, 177–178 estimation example, 179 example of, 178 managing estimates and, 179, 184 scale and, 178 team scorecard and, 205 348     Project Management the Agile Way: Making It Work in the Enterprise Strategy project valuation and, 40 strategic plan, 40 Structured analysis, 8, 15, 116 Subsidiary function, principle of, 146, 161 Sutherland, Jeff, 300 Systems design, Delphi methodology in, 181 T T&M contracts, 280, 281 Takeuchi, Hirotaka, 2–3, 298, 300 Taylor, F W., 71, 79, 209 agile products, impact on, 65 lean thinking and, 64–65 Taylorism, 64 TDD See Test-driven development Team decision-rights, 228 Team network management, 203–204 Team schedule, generic, 202 Team-of-teams, 204, 206 Teams, 187–219, 270–272 See also Some teams work, others don’t; Virtual teams as agile building blocks, 195–199 agile team, operating model, 196, 197, 198, 199 big picture issues and, 263 commitment/accountability and, 193 continuity/simplicity/clarity/certainty, 193 defined, 189–190 dominance within, 188–189 from groups, 190–191 groups as genesis of, 188–189 as little black box, 190 matrix management and, 213–216 mind-shifting to agile networks, 199, 200–201 network logic and, 201–203 in networks, 196, 198 partnerships/bureaucracies/populations, 189 performance unit and, 189 principles for, 194–195 principles/values guiding, 191–195 recruitment of members, 216–217 scaling practices in, 267 scorecard, spreadsheet, 203, 204, 205 social units, formation and, 188–191, 217 team network management, 203–204 team-of-teams, 204, 206 values, summary of, 193 Technical errors in software, 69 Technical performance measures (TPM), 231 Technology practices, agile methods compared, 23 Templated information, 269 Terminology, 11–12 Test Driven Development (TDD), 302, 303, 306 Test plan definitions management, 92 metrics, 91 stories, 90 tests, 91 Test planning, metrics and, 89–98 30-50-20 attempt sequence, 92–94 48-instance testing scope, 93–94 essentials for, 90–91, 92 good test metrics and, 89 hours, estimating, 94–95, 96 multiplier effect, 94 pass/fail rates, 92, 94 pipeline grid, 97–98 scorecard, planning the, 95, 96–97 test flow and, 91, 92–94 testing by sampling, 99–103 Test-driven development (TDD), 83–89 advantages of, 87–88 architecture impacts upon, 89 asserts, testing with, 85–87 beginning with end in mind, 84 main ideas of, 83–85 new products, best with, 85 Red-Green-Refractor sequence, 84, 86, 88 Step 1-2-3 sequence, 83–84 TDD cycle, illustrated, 86 unit tests, acceptance tests and, 84 Test-fix-test sequence, 92–93 Testing, management of, 81–107 confidence figure, sample results and, 102–103 customer e-mail address test, 87 hypothesis testing, confidence building, 104–105 principles/practices, quality and, 81–83 test planning, metrics and, 89–98 test-driven development (TDD), 83–89 testing by sampling, 99–103 Index     349 Testing by sampling, 99–103 See also Sampling, quality validation and advantages of sampling, 101 confidence figure, sample results and, 102–103 confidence range, formula for, 103 defects to sample size, 102 proportionality estimate, 103 salt-and-pepper story, 99–101 step-by-step sampling, 101 Testing/delivery, all at end of project cycle, 19 Theory of Constraints (TOC), 153 30-50-20 attempt sequence, 92–94 pipeline scorecard and, 98 scenarios using, 96 test plan hours and, 95 Throughput See also Planning throughput velocity as measure of, 184, 217 virtual teams expanding, 270–272 Throughput accounting, 149, 240 throughput value and, 241 Throughput capability, 249 Time and material contracts, 280 Time boxes, agile space and, 154–161, 298 architecture/nonfunctional deliverables, 161 fixed/deterministic, 173 iteration/sprint release schedule, 157–160 milestones from business plan, 155, 156 networked schedule and, 201 scheduling in the space, 155 spiral, planning the, 160 work stream schedule, planning, 156–157 Time-boxing plans, 144 Timelines and calendars, 154 TOC See Theory of Constraints TPM See Technical performance measures Tracking progress, 271 Treacy, Michael, 43, 44, 45 Treacy-Wiersema model, 40, 44 agile compared to, 46, 47 customer intimacy and, 43, 44, 46 operational excellence (OE) and, 43, 45, 46 product leadership and, 43, 47 three focus areas of, 43 Trending graphs, 271 Triangular distribution, 171, 172 Trust governance and, 222–223 product development and, 88 teams and, 192–193, 210, 217 Tuckman, Bruce, 190 Tuckman model, teams from groups, 190 Twelve agile principles See Agile Principles Type 1/Type errors, 104 U UML (Unified Modeling Language), 122 Uncertainty actionable requirements/complexity, 173 complexity and, 166–167 Unified Modeling Language See UML Unit tests automated, 168 technical errors in, 74 TDD tests and, 84 Unknown/unknowable requirements, 19 Use cases extensions, 122 inclusions, 122, 123 requirements writing and, 117 User stories, 84, 117, 122, 124 User validation, 81 Utility, concept of, 147 V Value See also Net present value Value, defining, 238–239, 259 See also Earned value Value proposition, 1–2 best value, defined, 111, 134 best value/quality values, 62 value added to opportunity, 39 Value-added activity, 19, 71 Values, teams and, 192–194 Velocity earned value and, 251, 252 estimating, 176, 178, 180 iterations and, 313 less communication and, 270 as measure of throughput, 184, 217 as performance metric, 189 rhythm of schedule and, 152 scope, complexity, estimates and, 174–183 350     Project Management the Agile Way: Making It Work in the Enterprise Virtual teams conflict resolution and, 211 emulating real team, 270 incentives/rewards for, 271–272 parameters of, 212–213 scaling up and, 270–272, 280–281 values and, 192 work assignments to, 270–271 Vision, 112–114 envisioning, three steps in, 112–113 good ideas, developing, 113 Kano charts, envisioning with, 113–114 Voice of business in plans, 146–147 W Waterfall model, PD-PDLC and, 12–13 basic waterfall, 13 cascade appearance of project steps, 7, 13 mitigating risks in, 16 principle risks in, 15, 19 Wave planning See Rolling-wave planning Waves, business cycles and, 20 WBS See Work breakdown structure WBS-OBS matrix, 126 Weaver, Warren, 168 Weigers, Karl E., 115 Whiteboards, 269 Wicked thinking, 116 Wideband Delphi, 176 Delphi method/poker process, 181–182 Wiersema, Fred, 43, 44, 45 Wireless connectivity, 268 Work breakdown structure (WBS), 111, 125–129, 135 for assignment/verification, 124, 125 government WBS, 128 organizing the, 128–129 project work streams and, 129 RAM version of, 127 for scope organization, 124, 125–128 table-of-contents style of, 125 WBS ordered list, 126 Work dependencies in network, 269 Work orders vs T&M contracts, 280, 281 Work stream plans, 142–144 business case milestones and, 143 scheduling, conventional/agile, 156–157 Work streams for business preparation, 284–285 steering the, 206 WBS and, 129 Working software over comprehensive documentation, 4–5 Working terminology, 11–12 X XP (Extreme Programming), 3, 209, 302–309, 320 See also Red-Green-Refractor sequence architecture and, 309 compared to other agile methods, 21–24 iterations, durations for, 306 primary practices, 307 principles, 192, 305–306 process for, 306, 308–310 secondary practices, 308 TDD and, 106, 302, 303 values, 304 XP differences, 303–304 Z Zero defects, 68 Zone of acceptance, 105 ... methods on some projects xiv     Project Management the Agile Way The quick-read bottom line on agile methods is that they can work, they work, they shorten the schedule, and they provide a high-quality... group at the 4     Project Management the Agile Way: Making It Work in the Enterprise outset, they were able to put together something they were all seeking: a framework they named the Agile Manifesto,... Downloads for Project Management the Agile Way include whitepapers that discuss the dynamic systems development method, agile quality drivers, the applicability of agile on DoD projects, and an agile