AN INTRODUCTION

TO AGILE

Osemhen Okenyi

Senior Project Engineer

SNEPCO

OUR AGENDA

❑What is Agile?

❑Agile vs. Waterfall vs. Lean – Key Differences

❑The Agile Process – Focus on SCRUM

❑Benefits of Agile

❑When To Apply Agile

❑Applying Agile in Oil & Gas

❑An Agile Culture

❑Q&A

TRENDS

Trends in Industry

❑Quickly evolving environment.

❑Constant introduction ofdisruptive technology.

❑Accelerating digitization and democratization of information.

❑The new war for talent.

Why Projects Fail

Change in the organization’s priorities.

Change in project objectives.

Inaccurate requirements gathering.

Opportunities and risks were not defined.

Inadequate, poor communication.

Inadequate vision or goal.

AGILE: A DEFINITION

1. quick and well-coordinated in movement; lithe

2. active; lively

3. marked by an ability to think quickly; mentally acute or aware.

4. marked by ready ability to move with quick easy grace.

5. having a quick resourceful and adaptable character.

WHAT IS AGILE❑A Project Management Framework

❑Shared vision robust to change.

❑Whole teams (customer + cross-functional team)

❑Incremental delivery (learn by doing small sprints)

❑Continuous integration & testing (teams test increments early and often)

AGILE MANIFESTO (2001)

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Customer Collaboration

Individuals & Interactions

Responding to Change

Working Product

Contract Negotiation

Processes and Tools

Following a Plan

Full documentation

“…while there is value in items on the right, we value items on the left more…”

AGILE AND OTHER METHODOLOGIES

TRADITIONAL FRAMEWORK IN BRIEF

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AGILE IN A NUTSHELL

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WATERFALL VS. LEAN VS. AGILE

Identify (Requirements)

Design

Build

Acceptance Test

Operate

Plan

DoCheck

Act

AGILE VS. TRADITIONAL VS. LEAN

Budget

Agile Traditional Lean

Adjust Scope Budget Schedule

Requires Trust Efficiency Expertise

Goal Speed (Maximise

ROI)

Predictability (Low

Cost)

Innovation (Problem

Solve)

Planning Releases Schedules Backlogs

Traditionally

Found In These

Industries

IT

Consulting

Operations

Construction

Military

Oil & Gas

Sales

Customer Support

R&D

Teams Matrixed /

Projectized / Cross-

functional

Departmental Emergent (Ad-hoc)

Customer

Communication

Part of the team Representatives Tickets / SLA

Integration Continuous End Phase When Possible

Closing Team Acceptance Customer Acceptance Customer Acceptance

THE AGILE PROCESS Scrum Edition

DIFFERENT AGILE METHODOLOGIES

Scrum

• Most popular.

• Work in sprints.

• Subject of our discussion.

Kanban

• Lean Method developed in Japan.

• Work is managed by balancing demands with capacity.

Disciplined Agile Delivery

• Puts people first; lightweight guidance on the “how”.

• Hybrid framework that pulls the best from several other methodologies.

Scaled Agile Framework (SAFe)

• For larger organizations that want to deploy Agile, company-wide.

• Purely a database of best practices from other teams.

FIRST OF ALL: SCRUM PROJECT CHARTER

Project Objectives – what the sponsors and/or customers expect from this project.

Stakeholders – who “has a stake” from sponsors to customers and why

Constraints – what must the project do or not do to achieve the objective.

Risks – what are major risks: internal vs. external, business vs. technical.

Definition of Done: the agreement of how work is closed.

SCRUM TEAM MEMBERS

Product Owner –

Responsible for managing backlog

Scrum Master –responsible for

facilitating

Team Member –

Builds the product

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KEY ELEMENTS OF SCRUM

Prioritization based on business value

Deliver in iterations: deliver value fast (MVP), get feedback fast, fail fast and learn from it.

React to changes – Learning Loop

Autonomous team (self-organizing, multiskilled)

Collaboration with business/customer (PO)

Timeboxing

Stable sustainable pace and workload

Scalable.

SCRUM

BREAK DOWN PRODUCT INTO USER STORIES

1. Value Statement – As a …[who] I want to …[what functionality] in order to…[why it’s important]

2. Assumptions

3. Acceptance Criteria (Definition of Done)

Example value statement:

❑I want to login using my user name and password ---wrong!

❑I want to access my account – right!

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SPRINT BASICSSprint Planning

Team & Product Owner select work.

Team commits to complete work inside the sprint.

All work is stated as a “User Story” with a clear “who, what, why” and acceptance criteria.

Scrum Master facilitates and guides

Sprint Development

Team meets daily to decompose and assign work.

Team self-organizes based on skills.

No client can interrupt or change their work.

Product owner liaises with end users.

Product owner builds and prioritizes backlog.

Scrum Master facilitates and tracks.

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Sprint Review & Retro

Team presents completed work to customer.

Team reviews work performed.

Team performs retrospective to improve itself.

Scrum Master facilitates and guides.

SPRINT PLANNING

❑Product owner presents the updated product backlog.

❑Development Team selects and refines user stories.

❑Development Team commits to the Sprint Backlog.

❑Team prioritizes usingMoSCoW principle.

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MOSCOW PRIORITIZATION TECHNIQUE

Must Have

• Cannot deliver on target date without this.

Should Have

• Important but not vital.

Could Have

• Wanted or desirable but less important.

Won’t Have This Time

• Can be prioritized at a future time but may never happen.

SPRINT DEVELOPMENT

Daily Stand-Ups – daily face to face communication.

Whole teams – both execute and plan work together.

Team ownership – multiple team members work on a User story.

Limit WIP – limit the work-in-progress (WIP) to achieve flow.

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CLOSING THE SPRINT Sprint Review: the product owner presents the completed, potentially shippable increment to the stakeholders.

Sprint Retro: the Sprint team collaboratively inspects the sprint and looks for ways to build on or change for the better.

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WHEN SHOULD YOU USE AGILE?

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Nothing will

work here!

Simple action planning,

or basic Gantts

Waterfall and Agile

approach can work

“Complex” and

reduced certainty

is the “Agile

Sweet spot”

UNCERTAIN

VAGUE

HOW

WHAT

BENEFITS OF AGILE

Speed!

Innovation driven by constraints, target solutioning.

Respond to change.

Deliver value faster.

Reduce risk.

Improve transparency.

Continuously improve.

Faster learning cycle.

Team Motivation & Creativity

Reduced Conflict

Continuous Improvement.

Meaningful milestones.

Stakeholder agreement.

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WHERE / HOW CAN WE APPLY AGILE IN OIL & GAS

❑Change/Value management

projects/ programmes e.g. planning

and implementing turnarounds,

business improvement projects etc.

❑Enterprise projects: creating a

project management office,

corporate M & A, replacement of

an organization’s finance system

(culture change), putting together a

complex contract.

1. Reduce Project Size – break down projects into smallest functional modules (1500 –5000 man-hours, and divide into 6 sprints)

2. Use LEAN requirements to jumpstart delivery (do you really require all those reams of documents?)

3. Use it to Innovate (not in a process that has been successfully replicated over and over)

4. Build solutions to complex, legacy problems.

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SOME CASE STUDIES

❑One oil and gas company simplified drilling standards from 1,000 pages to fewer than 100 in weeks, and cut drilling cost by 30 percent.

❑BP cut $60 million from its logistics costs in Azerbaijan by optimizing vessel surveys.

❑Cut the capital costs from a new project in the pre-final investment-decision (FID) stage by $1 billion.

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AGILE WAYS OF WORKING

❑Make Trust and Psychological Safety A Priority.

❑Continuous Improvement Mindset.

❑Experiment and Learn Rapidly.

❑Continuous Value Delivery.

❑Decision Making: Fast and Less Hierarchical.

❑Communication

IN A NUTSHELL

❑Drive Speed in Industry Through new Ways of Working.

❑Agile is best suited to help us adapt to trends we see and evolve.

❑Your smartphone: an analogy for Agile.

❑People are at the core of Agile.

❑Traditional & LEAN are still useful.

❑Scrum is the simplest Agile Framework. Sprints are the main feature.

❑“Complex and Reduced Certainty” is the sweet spot for deploying Agile.

❑Agile Ways of Working are: make failure safe, help others be awesome, experiment and learn quickly, always deliver value.

REFERENCES

◼Applied Scrum for Project

Management – John Johnson (EdX)

◼Introduction to Agile – Dan Jeavons

(Shell Global Solutions International)

◼ModernAgile.org -

◼EverydayAgile.com – What Does An

Agile Culture Look Like?

◼ProductPlan.com

◼ McKinsey.com – Going From Fragile

to Agile

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www.linkedin.com/in/osemhen-o-b88b758

COMMON PITFALLS•Adding stories to an iteration in progress –very easy to do with poor plans or collaboration

•Lack of sponsor support –teams need access to end users, autonomy, and freedom

•Insufficient training –results in rework, or simply bad planning. Expect technical debt.

•Product owner role is not properly filled –organization is not “Agile.” Slows down decisions

•Teams are not focused –this happens when you have a wishy-washy product owner

•Excessive preparation/planning –often happens when there’s a lack of trust or experience.

•Problem-solving in the daily standup –what a drain! Team leads beware.

•Scrum master as a contributor –hard to avoid, but needed. Scrum Masters is a full-time job.

•Attempting to take on too much in an iteration –prioritization adds speed and innovation.

•Fixed scope and quality –Organizations must “embrace agile.”

REASONS AGILE FAILS

❑ Organizational culture at odds with agile values.

❑ General organizational resistance to change.

❑ Inadequate management support.

❑ Lack of skills / experience with Agile methods.

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