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Good book for project management
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10 Keys to Successful10 Keys to SuccessfulSoftware ProjectsSoftware ProjectsAn Executive GuideAn Executive Guide
© 2000 Construx Software Builders, Inc.© 2000 Construx Software Builders, Inc.All Rights Reserved.All Rights Reserved.
www.www.construxconstrux.com.com
ConstruxConstruxD elivering Software Project SuccessD elivering Software Project Success
BackgroundBackground
Construx Software (www.construx.com) 3
State of the Art State of the Art vsvs. State of. State ofthe Practicethe Practice
“The gap between the best software“The gap between the best softwareengineering practice and the averageengineering practice and the averagepractice is very wide–perhaps wider thanpractice is very wide–perhaps wider thanin any other engineering discipline.”in any other engineering discipline.”– Fred Brooks– Fred Brooks
Construx Software (www.construx.com) 4
Productivity VariesProductivity VariesSignificantlySignificantly
vv 10:1 variations in productivity between10:1 variations in productivity betweendifferent companies working in the samedifferent companies working in the sameindustriesindustries
vv Productivity is a learned characteristicProductivity is a learned characteristicand can be changedand can be changed
Construx Software (www.construx.com) 5
Typical Project OutcomesTypical Project Outcomes
Cancelled29%
On-Time26%
21-50% Late8%
51-100% Late9%
101-200% Late16%
More than 200% Late
6%
Less than 20% Late
6%
Source: Standish Group Survey, 1999 (from a survey of 8000 business systems projects)
Construx Software (www.construx.com) 6
Most Common Sources ofMost Common Sources ofCancellations and OverrunsCancellations and Overruns
1. Ill-defined or changing requirements1. Ill-defined or changing requirements2. Poor project planning/management2. Poor project planning/management3. Uncontrolled quality problems3. Uncontrolled quality problems4. Unrealistic expectations/inaccurate4. Unrealistic expectations/inaccurate
estimatesestimates5. Naive adoption of new technology5. Naive adoption of new technology
Construx Software (www.construx.com) 7
Project SuccessProject Success
Success = Planning * ExecutionSuccess = Planning * Execution
Assign values between 0%-100% forAssign values between 0%-100% forPlanning Planning and and Execution. Execution. Multiply toMultiply todetermine your chance of success.determine your chance of success.
PlanningPlanning
Key #1Key #1Clear VisionClear Vision
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Clear VisionClear Vision
vv Project teams work toward the goals youProject teams work toward the goals youset for themset for them
vv Too many goals = no goalsToo many goals = no goalsvv Good vision statement describes Good vision statement describes what towhat to
leave outleave out— prioritizes— prioritizesvv Product vision affects achievement ofProduct vision affects achievement of
business goalsbusiness goals
Construx Software (www.construx.com) 11
Example:Example:
vv What kind of Rapid Development do youWhat kind of Rapid Development do youwant?want?uu Speed orientedSpeed orienteduu Schedule-risk orientedSchedule-risk orienteduu Visibility orientedVisibility oriented
vv Without clear vision you can end up with aWithout clear vision you can end up with aproject outcome completely counter toproject outcome completely counter toyour goalsyour goals
Construx Software (www.construx.com) 12
Speed-Oriented Practices--Speed-Oriented Practices--Better Best Case ...Better Best Case ...
6 Months: Nominal Schedule
AverageProject
“Rapid”Project
Construx Software (www.construx.com) 13
… Worse Worst Case… Worse Worst Case
6 Months: Nominal Schedule
Risk of Overrun
AverageProject
“Rapid”Project
Construx Software (www.construx.com) 14
Sometimes it’s JustifiedSometimes it’s Justified(sometimes not)(sometimes not)
6 Months: Nominal Schedule
Competitor will releasenext version of their
product
Risk of Overrun
AverageProject
“Rapid”Project
Key #2Key #2Stable, Complete,Stable, Complete,
Written RequirementsWritten Requirements
Construx Software (www.construx.com) 16
RequirementsRequirements
vv Requirements change is the mostRequirements change is the mostcommon software project riskcommon software project risk
vv Comprehensive, 100% stableComprehensive, 100% stablerequirements are usually not possible,requirements are usually not possible,but...but...
vv Most requirements changes arise fromMost requirements changes arise fromrequirements that were incompletelyrequirements that were incompletelydefined in the first place, not “changingdefined in the first place, not “changingmarkets” or other similar reasonsmarkets” or other similar reasons
Construx Software (www.construx.com) 17
Techniques for DefiningTechniques for DefiningStable RequirementsStable Requirements
vv Requirements workshopRequirements workshopvv User interface prototypingUser interface prototypingvv User interviewUser interviewvv Use casesUse casesvv User manual as specUser manual as specvv Usability studiesUsability studiesvv Incremental deliveryIncremental deliveryvv Requirements reviews/inspectionsRequirements reviews/inspections
Key #3Key #3Detailed User InterfaceDetailed User Interface
PrototypesPrototypes
Construx Software (www.construx.com) 19
User Interface PrototypesUser Interface Prototypes
vv Addresses the most common projectAddresses the most common projectrisk–changing requirementsrisk–changing requirements
vv Involves users with a “hot” mediumInvolves users with a “hot” mediumvv Correlated with lower costs, shorterCorrelated with lower costs, shorter
schedules, and higher user satisfactionschedules, and higher user satisfactionvv Significant skill required to developSignificant skill required to develop
prototypes successfullyprototypes successfully
Key #4Key #4Effective ProjectEffective Project
ManagementManagement
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Project ManagementProject Management
vv Poor planning/management is the secondPoor planning/management is the secondmost common project riskmost common project risk
vv Project planning/management is a highProject planning/management is a highleverage arealeverage area
vv Some people don’t appreciate the leverageSome people don’t appreciate the leverageof project management— they’ve neverof project management— they’ve neverseen seen good good project management!project management!
Construx Software (www.construx.com) 22
Project ManagerProject ManagerResponsibilitiesResponsibilities
vv Where do most project managers come from?Where do most project managers come from?vv What are they trained to do?What are they trained to do?vv Good software management requireGood software management require
significant software-specific expertisesignificant software-specific expertiseuu Scope estimationScope estimationuu Cost, effort &Cost, effort &
schedule computationschedule computationuu Lifecycle selectionLifecycle selectionuu QA planningQA planning
uu Technical staffingTechnical staffinguu Project trackingProject trackinguu Risk managementRisk managementuu Data collectionData collection
Key #5Key #5Accurate EstimatesAccurate Estimates
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Need for Accurate EstimatesNeed for Accurate Estimates
vv Unrealistic/unjustified expectations are aUnrealistic/unjustified expectations are amajor cause of project problemsmajor cause of project problems
vv State of the art is dramatically better thanState of the art is dramatically better thanthe state of the practicethe state of the practice
vv For example, the average project overrunsFor example, the average project overrunsits planned schedule by more than 100%its planned schedule by more than 100%(and many projects are much worse)(and many projects are much worse)
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Typical EstimationTypical EstimationEffectivenessEffectiveness
Without Historical Data Variance between -145% to +20%
(Mostly Level 1 and 2)
20%
0%
-145%
Ove
r/Und
er P
erce
ntag
ein
Effo
rt E
stim
ates
From 120 Projects in Boeing Information Systems
Construx Software (www.construx.com) 26
Improved EstimationImproved Estimation
From 120 Projects in Boeing Information Systems
Without Historical Data Variance between -145% to +20%
(Mostly Level 1 and 2)
With Historical Data Variance between +20% to -20%
(Level 3)
20%
0%
-145%
Ove
r/Und
er P
erce
ntag
ein
Effo
rt E
stim
ates
Construx Software (www.construx.com) 27
Improved EstimationImproved Estimation
From a set of U.S. Air Force projects
Project Performance Compared to Estimate
0%
100%
200%
300%
400%
500%
600%
0 1 2 3 4
SW-CMM Level
Act
ual R
esul
ts a
s a
Per
cent
age
of
Est
imat
ed R
esul
ts
Construx Software (www.construx.com) 28
Improved EstimationImproved Estimation
From a set of U.S. Air Force projects
Project Performance Compared to Estimate
0%
100%
200%
300%
400%
500%
600%
0 1 2 3 4
SW-CMM Level
Act
ual R
esul
ts a
s a
Per
cent
age
of
Est
imat
ed R
esul
ts
Construx Software (www.construx.com) 29
Improved EstimationImproved Estimation
From a set of U.S. Air Force projects
Project Performance Compared to Estimate
0%
100%
200%
300%
400%
500%
600%
0 1 2 3 4
SW-CMM Level
Act
ual R
esul
ts a
s a
Per
cent
age
of
Est
imat
ed R
esul
ts
Construx Software (www.construx.com) 30
Effect of EstimationEffect of EstimationAccuracyAccuracy
100% >100%< 100%
Linear impact due toParkinson’s Law
Non-linear impact dueto planning errors,upstream defects,high-risk practices
Target as a Percentage of Nominal Estimate
OverestimationUnderestimation
CostEffort
Schedule
Construx Software (www.construx.com) 31
Accurate EstimationAccurate Estimation
vv Estimation is a specialized technical skillEstimation is a specialized technical skillvv Treat estimation as a mini-projectTreat estimation as a mini-projectvv Plan to Plan to reestimate reestimate periodicallyperiodically
ExecutionExecution
Key #6Key #6Two-Phase BudgetingTwo-Phase Budgeting
Construx Software (www.construx.com) 34
0.67x
0.8x1.0x
0.5x
0.25x
2x
4x
1.5x
1.25x
Project cost(effort and size)
Time
Estimate RefinementEstimate Refinement
Construx Software (www.construx.com) 35
0.67x
0.8x1.0x
0.5x
0.25x
2x
4x
1.5x
1.25x
Project cost(effort and size)
Time
Two-Phase Estimation andTwo-Phase Estimation andBudgetingBudgeting
Typical time thatcommitments aremade
Time that commitmentsshould be made
VS.
Construx Software (www.construx.com) 36
BenefitsBenefits
vv Delays commitment until time when aDelays commitment until time when acommitment can be meaningfulcommitment can be meaningful
vv Forces activities that should occur upstreamForces activities that should occur upstreamactually to occur upstreamactually to occur upstreamuu Requirements, technical planning, qualityRequirements, technical planning, quality
planning, etc.planning, etc.vv Helps set realistic expectations for all projectHelps set realistic expectations for all project
stakeholdersstakeholdersvv Improves coordination with non-software groupsImproves coordination with non-software groupsvv Improves execution by putting plans on moreImproves execution by putting plans on more
informed basisinformed basis
Key #7Key #7A Focus on QualityA Focus on Quality
Construx Software (www.construx.com) 38
Defect Costs Increase theDefect Costs Increase theLonger Defects Stay in ProcessLonger Defects Stay in Process
Phase That aDefect Is Created
Cost toCorrect
Phase That a Defect Is Corrected
Requirements
Architecture
Detailed design
Construction
Requirements Architecture Detaileddesign
Construction Release
50-200X
50-200X
1X
1X
Construx Software (www.construx.com) 39
Fixing Upstream DefectsFixing Upstream DefectsUpstream is High LeverageUpstream is High Leverage
$QA Late in the Project
QA Early in the Project
Construx Software (www.construx.com) 40
Phase That aDefect Is Created
Cost toCorrect
Phase That a Defect Is Corrected
Requirements
Architecture
Detailed design
Construction
Requirements Architecture Detaileddesign
Construction Release
50-200X
50-200X
1X
1X
Fix More Defects Earlier!Fix More Defects Earlier!
Fix HereNot Here
Construx Software (www.construx.com) 41
Why Focus on Quality?Why Focus on Quality?
vv For most projects, unplanned defectFor most projects, unplanned defectcorrection work is the largest cost drivercorrection work is the largest cost driver(40-80% of total)(40-80% of total)
vv Can focus on quality for sake ofCan focus on quality for sake ofeconomics (as above)economics (as above)
vv Can focus on quality for sake of qualityCan focus on quality for sake of quality(not needed nearly as often)(not needed nearly as often)
vv Quality must be planned into the project; itQuality must be planned into the project; itcancan’’t just be tacked onto the endt just be tacked onto the end
Key #8Key #8TechnologyTechnologyExpertiseExpertise
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Technology ExpertiseTechnology Expertise
vv Many projects suffer because of poorMany projects suffer because of pooradoption of new technologyadoption of new technology
vv “New technology” = high risk“New technology” = high riskvv Golf analogyGolf analogy
uu Technology as golf clubsTechnology as golf clubsuu Best practices as techniqueBest practices as technique
vv Expertise in technology matters;Expertise in technology matters;software engineering technique matterssoftware engineering technique mattersmuch moremuch more
Key #9Key #9Active Risk ManagementActive Risk Management
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Software is Risky BusinessSoftware is Risky Business
vv KPMG Study:KPMG Study:uu 55% of runaway projects did no risk55% of runaway projects did no risk
managementmanagementuu 38% did some, but half of those didn’t use their38% did some, but half of those didn’t use their
risk findings after the project was underwayrisk findings after the project was underwayuu 7% didn’t know whether they did risk7% didn’t know whether they did risk
managementmanagement
vv Total: About 80% of runaway projects didTotal: About 80% of runaway projects didno meaningful risk managementno meaningful risk management
Construx Software (www.construx.com) 46
Role of Risk ManagementRole of Risk Management
vv About as many projects fail as areAbout as many projects fail as aredelivered on timedelivered on time
vv More than 50% of projects show theirMore than 50% of projects show theirproblems during initial developmentproblems during initial development
vv About 25% show their problems duringAbout 25% show their problems duringinitial planninginitial planning
vv Active risk management keeps smallActive risk management keeps smallproblems from turning into big, project-problems from turning into big, project-killing problemskilling problems
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Relationship to BusinessRelationship to BusinessRisk TakingRisk Taking
vv Perception is that high energy companiesPerception is that high energy companiestake riskstake risks
vv Reality is that most companies are besetReality is that most companies are besetby risks from all sides— they aren’tby risks from all sides— they aren’tchoosing choosing which risks they takewhich risks they take
vv Key to success: Manage non-strategicKey to success: Manage non-strategicrisks so that you can take strategic risksrisks so that you can take strategic risks
Key #10Key #10Do the Right ThingDo the Right Thing
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Key Elements of ExecutionKey Elements of Execution
vv Take care of your peopleTake care of your peopleuu StaffingStaffinguu TrainingTraininguu Motivation/moraleMotivation/moraleuu Work environmentWork environment
vv Follow the planFollow the planvv It works!It works!
Contact InformationContact InformationServicesv Custom Software
Solutionsv Consultingv Seminars
ConstruxConstruxD elivering Softw are Proje ct SuccessD elivering Softw are Proje ct Success
Software Resourcesv [email protected] www.construx.com