Why Agile?

Copyright 2003-2008, Rally Software Development Corp Confidential and Proprietary

The Agile Toolkit

An overview of Agile development, metrics, and how to get started

2Confidential and Proprietary

Traditional Software Development Long, Large, Linear, Late

Lifecycle

Deliverables

ProprietaryPoint

Solutions

Time to Market

Define Test

Train

Code

12 to 36 months

PRD Testplan

MRD Techspec Code Funct

test

Deploy

Doc


Typical Software Challenges

Á Lack of consensusÁ Products pulled in too many directionsÁ Priorities in too many directions (everything can’t be critical)Á Too much generalization among feature requests

Á Market agilityÁ Changing market conditions requires adaptive enhancement

Á Big productsÁ Software quality becomes expensive with traditional approaches

Á Lack of visibility into what’s comingÁ Gap between request and delivery (easy to forget what was asked for)

Á Limited or no understanding of product definition or enhancement process

Á Not clear on how to participate in processÁ Not sure how to identify requirements


Traditional vs Incremental Delivery

Á Revenue from $4m to $5m Á Investment from $2.19m to $1.11m Á ROI 11% to 59% Á NPV -315 to 151


Typical Agile Objections

Á Agile is an excuse to be ad-hoc and undisciplined О Technical excellence is a tenet of all Agile approaches

О Continuous testing and integration drive higher quality

Á No methodology for estimating О All features (stories) are identified and planned and early estimates can be used for

funding decisions

О Agile projects normally have far more planning and feedback cycles than typical waterfall projects

Á We would need to ask too much of our customersО Type of involvement can vary widely; For example, customers can vote features up

or down and provide feedback at different stages to minimize time commitment

Á We can’t trust our development team(s)О Accountability and trust have shown to improve team morale, and more importantly,

team productivity


Benefits of Agile

Á 93% increased productivity1

Á 88% increased quality1

Á 83% improved stakeholder satisfaction1

Á 49% reduced costs1

Á 66% three-year, risk-adjusted return on investment2

Á Reasons for Agile adoption include: О 47% to better manage project scope3

О 45% to creating clear business requirements3

О 40% to speed or better predict time to market3

1 “Agile Methodologies: Survey Results,” by Shine Technologies, 2003; 2 Forrester Research, 2004; 3 “Agile 2006 Survey Results and Analysis,” by Digital Focus, October 2005


Agile Manages Business Risks & Expectations

Time Time

Riskand $

project run rate

risk of failure(unmet expectations)

cumulative production (business) value

Waterfall Agile

Riskand $


Agile Delivers Success – Speed - Value

Before Agile

Only 16% of software projects successful1

Deliver on-time, on-budget, meet highest-priority requirements

77% of Agile projects Successful2

Better Project ManagementIterative Development

Web Infrastructure Growth

Avoiding development on the wrong requirements can

reduce costs (Gartner Research) 4

3X faster, productivity up 20-50%3

With Agile

1Standish Group Report: There’s Less Development Chaos Today, by David Rubinstein SD Times March 1, 2007, 2“Agile Has Crossed the Chasm,” Dr. Dobb’s Journal, July 2, 2007. 3QSMA and Cutter Consortium ROI case study on BMC Software, 2008. 4 Gartner, Inc. 2005


Making an Impact with Agile

Á Forrester Total Economic Impact Studies (1)О 5 Companies piloting Agile methodsО 3 yr, Risk-adjusted ROI of 23% – 66%

Á Agile Methodologies Survey (2) , 131 respondents:О 93% stated that productivity was better or significantly betterО 49% stated that costs were reduced or significantly reduced, (46%

stated that costs were unchanged)О 88% stated that quality was better or significantly betterО 83% stated that business satisfaction was better or significantly

better

1) Forrester Consulting, 20042) Agile Methodologies Survey Results, Shine Technologies Pty Ltd, 2003


Key Findings – All Agile Teams

Development teams utilizing Agile practices were on average:

Á 37% faster delivering their software to market

Á 16% more productive

Á Able to maintain normal defect counts despite significant schedule compression

Benchmarked 26 Agile development projects, against QSMA’s database of 7,500 primarily traditional development projects across 500 organizations in 18 countries

Assessed the performance of Agile development projects in three key areas: productivity, time-to-marketand quality


37% Faster Time to Market

• Teams increased speed despite having large teams and being geographically dispersed

• Overall, Agile companies experience an average increase in speed of 37%

• Rally customers who participated in the study saw an average increase of 50% in their time-to-market when compared to the industry average.

QSMA and Cutter Consortium ROI case study on Agile teams, 2008.


Agile Teams - 16% Increase in Productivity

• Productivity is often the most difficult measure for organizations to improve

• Metrics for large, globally distributed teams often trend towards lower productivity

• Overall, Agile companies experienced 16% increase in productivity

• Rally customers who participated in the study saw an average increase of 25%



Steady Defects Despite Speed

• Typically, “haste makes waste”

• Despite cutting schedules by more than 50%, defect counts for the measured projects remained steady

• Two Rally customers maintained average defect counts, and two customers were on the upper end of industry averages when compared to similar sized projects taking more than twice as long to deliver.



The Agile Paradigm Shift

Estimated Time

Waterfall

Release themes and feature intent drive estimates

VALUEdriven

PLANdriven

Fixed

FeaturesResources

TimeRequirements Resources

The plan creates cost/schedule estimates

Agile


Impact on Your Business

Á Highest priority is to satisfy the customer through early and continuous delivery of valuable software

Á Deliver working software frequently, from a couple of weeks to a month, with a preference to the shorter timescale

Á Working software is the primary measure of progress

Á Continuous attention to technical excellence and good design enhances agility

Á Simplicity - the art of maximizing the amount of work not done - is essential


Moving to Agile Development Agile Development

Continuous flow

ParallelAcceptanceTest DrivenIterative

Automated flow

1-4 week time boxes

WaterfallIterative &

Incremental

Define by acceptance

Freeze & signoff

Define-develop-accept by

story

Highest priority to

acceptance

Define-develop-accept by

story

Automated testing by

story

Tests written first

Acceptance tests inside

iteration

Continuous definition

Just-in-time elaboration

Control scope creep

Critical path through phases

Critical drop/milestones

Multiple dropsto QA

All features in parallel

“Test what’s

working”Last phase

only

Requirements

Project Management

Development Team

QA Team


Agile Definitions - Scrum

Á A software management process; not a software engineering process

Á Derived in part form lean flow manufacturing principlesÁ Extreme visibility into process and results

Á Lightweight process (just 3 roles)Á Driven by team empowerment and team accountability

Á Explicit role of the Product Owner and Product BacklogÁ Ensures coupling to real market needsÁ Assume some requirements and architectural runway exists

Á Continuous inspection and adaptation drive organizational change


Agile Definitions - Scrum’s 3 Roles

Á Scrum MasterÁ Primarily a facilitator/servant-leader, can act as team memberÁ Teaches customer how to focus on product development to maximize

ROI and meet their objectives through Scrum

Á Product OwnerÁ Owns Product Development Roadmap and Product Backlog PriorityÁ Works with customer and other business stakeholders during Release

Planning processÁ Is open to negotiations that will occur

Á Delivery TeamÁ Developers, testers, architects, tech writers, product owner, business

people, subject matter experts


The Scrum Framework

Potentially ShippableProduct Increment

Daily

Daily Scrum Meeting• Done since last meeting• Plan for today• Obstacles?

Sprint Planning Meeting• Review Product Backlog• Estimate Sprint Backlog• Commit to 2-4 weeks of work

Sprint Backlog• Product Backlog Items assigned to Sprint• Estimated by team

Vision

2-4 weeksSprint Demo and Review Meeting• Demo done items• Retrospective on the Sprint

Product Backlog:Prioritized Features

desired by Customer

Backlog tasksexpandedby team


How Do You Get Started?Typical Rally rollout

No commitment – no waiting – no hidden costs


How Do You Get Trained?

Agile Rollout Planning

ImplementingAgile

Team Jumpstart


Why Rally for your Agile Rollout?

Á Rally Services О Introduce your teams to skills and tools needed to deliver your first

Agile projects in 60 days; on-site and role-based training

Á Rally’s expert coachesО Published authors, industry speakers, and recognized Agile

trainers with hundreds of customer engagements helping teams adopt and scale Agile

Á Agile UniversityО Launched in 2006 to provide organizations with training to create a

truly Agile organization; Over 100 faculty and dozens of public courses throughout the U.S.

Á Proven success at helping companies transition to AgileÁ Agile CommonsО Web community to help share and drive Agile best practices


Low-burden, flexible, easy-to-use product lifecycle management software

Private and group process training by the most recognized Agile coaches in the industry

Support and shared best practices at the first and largest Agile Web 2.0 community

Rally’s Complete Agile Solution

Copyright 2003-2008, Rally Software Development Corp Confidential and Proprietary

Appendix & Backup Material


Tips for Success – Bottom Up Adoption

Á Start building your case earlyÁ Prepare industry stats and case studies (see Rally’s

“Internal Champion Toolkit”)Á Find examples of Agile success throughout your

organization and present a united frontÁ Explain to PMO and process leaders how they can win

with AgileÁ Use Rally resources to help you present to executives /

leadership teamÁ Leverage the support of a happy customerÁ Keep in mind that everyone deals with change based on

their perceptions


Tips for Success – Top Down Adoption

Á Don’t issue mandates, but broadcast the intent to try something new

Á Help establish Agile as what the “best” teams and developers are doing (using case studies, etc.)

Á Use a combination of training and coaching to promote understanding and enthusiasm

Á Use Rally resources to help you build supportÁ Keep in mind that everyone deals with change based on

their perceptionsÁ Conspicuously celebrate successes


Results of ‘Typical’ Software Projects

Source: Standish Group Reports

Source: Ron Jeffries

Success Rate of IT projects

35%

28%

26%

27%

16%

46%

49%

46%

33%

53%

19%

23%

28%

40%

31%

2006

2000

1998

1996

1994

SucceededChallengedFailed

Actual Usage of Successfully Delivered Features

Always7%

Often13%

Sometimes16%

Rarely19%

Never45%

*The increase to 35% “Succeeded” was dedicated to better project management, iterative development and the emerging web infrastructure.

*


Agile Adoption Rapidly Growing

Á 69% of organizations have adopted Agile practices (expected to grow to 76% within one year)1

Á 23% use Agile organization-wide3

Á 77% indicated that their Agile projects have been successful1

Á 60% use Scrum as the primary Agile process, particularly in larger organizations2

Á 64% have dev teams from 1 to 100 people; 36% had more than 100 people on the dev team2

Á 60% are using a dedicated Agile project management tool2

Á Second wave of adoption is now underway with enterprise IT leading4

1 - “Agile Has Crossed the Chasm,” by Scott Ambler, Dr. Dobb’s Journal, July 2, 2007; 2 – “2006 Agile Project Management Tooling Survey,” by Trail Ridge Consulting, December 2006 ; 3 – “Agile 2006 Survey,” by Digital Focus, October 2005 ; 4 –“Corporate IT Leads the Second Wave of Agile Adoption,” by Forrester Research, 11/30/05


Choosing an Agile tool

Report project status

View staffing and resource allocation

Ensure releases stay on schedule

Manage multiple Agile projects at once

Waterfall:PLANdriven

Agile:VALUEdriven


Track DeveloperCapacity and Time


Forecast Releases and Roadmap Schedule


Plan Releases


Manage a complex user story hierarchy


Report Status


Stay informed with custom notifications, IM integration

and revision history

Documents

Why Agile?