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Agile Governance, Scrum Escalation, Agile EVM
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FROM GOVERNANCE TO PROJECT MANAGEMENT: SCRUM ?
Pierre E. NEIS
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Agenda
1. Scope & Results: market expectations in terms of Governance
2. Agile Management Framework
3. Agile Governance: AgileEVM
4. Indexes & References
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Scope
1. 06.2009 : Fedil-ICT and Centre de Recherche Public Henri Tudor Report « Gouvernance IT et rôle du CIO dans les entreprises luxembourgeoises : Etat des lieux et bonnes pratiques »
2. The Report « Improving IT Governance. Manage, control and monitor IT within the Business », pWc 2008
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1 – Fedil-ICT / CRP HT
Conclusions of the Fedil-ICT et Centre de Recherche Public Henri TUDOR Report
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Conclusions of the Fedil-ICT et Centre de Recherche Public Henri TUDOR Report
Result : IT Governance should reflect the needs of business
The priority skills of the CIO are: IT needs analysis Arbitrate and select Managing IT Security
How?
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Conclusions of the Fedil-ICT et Centre de Recherche Public Henri TUDOR Report
Solution : « Integration and Alignment »
The business strategy and IT strategy are defined simultaneously
The CIO participates at the Executive Comittee
IT is the subject of a specific item in the agenda of the executive committee
Platforms enable communication and sharing between business and IT
Business requirements are formalized in business cases
How?
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Conclusions du Rapport Fedil-ICT et Centre de Recherche Public Henri TUDOR
Solution: The Role of IT
IT projects are subjects to Project Management
Business is involved in IT projects
IT accompanying uses
The CIO set up a Quality Management
IT communicate
IT ensure the IT Security
How?
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Conclusions of the Fedil-ICT et Centre de Recherche Public Henri TUDOR Report
Solution: Role and Competencies of the Chief Information Officer
CIO promotes Innovation
CIO trains himself
CIO gets informed
How?
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Conclusions of the Fedil-ICT et Centre de Recherche Public Henri TUDOR Report
In 3 words:
Cooperation between Business and IT
IT Governance is a Project Management
The CIO is the Project Pilot
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# 1 Result
IT switches into Project
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2 –PricewaterhouseCoopers Report
« Improving IT Governance. Manage, control and monitor IT within the Business », pWc 2008
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The Report « Improving IT Governance. Manage, control and monitor IT within the Business », pWc 2008
Gouvernance IT, a holistic framework!
More organizational Aspects : CobIT, CMMI, ITIL, ISO17799, ISO27001
Inefectiveness if no aligment between IT Governance and IT Operations
Critical factors to control : Technology enablement Communication & change
management Performance management &
benefits tracking
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The Report « Improving IT Governance. Manage, control and monitor IT within the Business », pWc 2008
Expected benefits by adopting this approach
Governance/Operation alignment
communication & cooperation
Increased agility and
flexibility of IT
Change Reaction
Greater Value delivery Added Value
Reduced risks & cost (…)
through more responsible IT
resource
Team Building
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The Report « Improving IT Governance. Manage, control and monitor IT within the Business », pWc 2008
Identify the organizational culture and conditions change
Expected benefits by adopting this approach
Getting the support of Senior Management and Vision
Set goals and achievable expectationsDefine a Benefits Management
Evaluate Maturity Level
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The Report « Improving IT Governance. Manage, control and monitor IT within the Business », pWc 2008
Communication value as a Key Success Factor
Expected benefits by adopting this approach
Quick wins to deliver results and to gain greater acceptance of project
Don’t over-engineer IT Governance
Linking IT Governance with Business Key Themes
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# 2 Results
Communication
Commitment & Vision
Agility + Flexibility
Reactivity to ChangeAdded Value
Team Building
Lightweight
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Agility?
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Agile Management Framework
1. Agile Manifesto2. Agile Concept3. Scrum4. Agile Management Framework
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Agile Manifesto
People & Interactions• Working Software• Working with the
Customer• Reacting to Change
Processes & Tools• Extensive
Documentation• Contract Negotiations• Follow the Plan
More
LessPri
ori
tiza
tion
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Wealth
Employee EngagementEmpowered, committed and
happy employees
Customer Satisfaction
Serve the Customer
Value Creation
Maximize ROI and optimize
cash flow
The Magic Triangle
Agile Manifestoobjecti
ves
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Scrum
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Doing well (Process)
Doing well (Product)
The Scrum Concept
Empowered
Involved
Just enough, Just in Time
Doing the Right Thing the Right Way + Product
+ Process
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Self directed Teams vs. Traditional Organization
Self directed Teams
Traditional Organization
customer-driven management driven
multi-skilled workforceworkforce of isolated
specialists
few job descriptions Many Job DescriptionsInformation widely shared Information limitedFew levels of management
Many levels of Management
Whole-business focus Function/department focus
Shared goals Segregated goals
Seemingly chaotic Seemingly organizedPurpose achievement emphasis Problem-solving emphasisHigh worker commitment
High Management commitment
Continuous improvements Incremental improvements
Self-controlled Management-controlled
Values/principles based Policy/procedure based
Source: "Leading self-directed work teams“ by Kimball Fisher
SCRUM
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Scrum: Scrum Process
Objectives:
Deliver a product per iteration
Quality is not negotiable
Velocity
Communication
Reactivity
Team Building
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Agile Management Framework
The Agile Project Managers are concerned with two key performance indicators :
Backlog Size Velocity
Product Backlog = list of project requirements
Velocity = amount of backlog that the team can deliver in a Sprint / Iteration
Backlog Size ÷ Velocity per Sprint/Iteration = Number of Sprints/Iterations to deliver the Project
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Scrum Planning Onion
Governance
Portfolio
Roadmap
Product
Release
Sprint
Day
Team + ScrumMaster
Product Owner
Chief Product Owner
CIO
Vis
ion
Road
ma
pA
dd
ed
Valu
e +
Velo
city
Concept
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Scrum: the Artifacts
Product Backlog• Elaborate Vision
& make it implementable
• Contains Outstanding Works
Sprint Backlog• Contains all
activities necessary to sprint goal
Burndown Chart• Simple report
relating days in the Sprint and remaining the efforts in the Backlog
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Agile Governance: AgileEVM
Project Portfolio Management with AgileEVM
Scrum: Metrics
Key Earned Value Management (EVM) – Concepts
AgileEVM Background
Expand AgileEVM to Portfolio
Source:Brent BARTO
N
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Project Portfolio Management with AgileEVM
Objectives: We want to mesure the Outcome not the
Ouputs Business Value
Process Prioritization to maximize Business Value Efficient shipping to minimize costs Redistribution of resources when costs are
too high or profits too low.
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Scrum: Metrics
Business Value and
riskSelf organizing,
cross-functional
teamsDefinition of Done
Potentially Shippable Increments
Velocity
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Key Earned Value Management (EVM) Concepts
Integrates Cost and Schedule Performance
Financial forecasts based on actual cost : Consumed Costs, Consuming Rate, Time
Allocation, etc.
Unlike the velocity, the Actual Cost is the cumulative Team Costs
Follow the ANSI standard (ANSI/EIA -748)
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AgileEVM Background
Release dates are based on average velocity (storypoints)= estimate at complete (euros)
Assumption: the ratio(story points completed)/(total story points in a release) is a good mesure for Actual Percent Complete
EVM SCRUM AgileEVM
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Expand AgileEVM to Portfolio
AgileEVM can coexist with EVM at Portfolio level – with caution
Help to manage the delivery with integrating of the best of Agile, Scrum and EVM
We can compare productivity without degrade velocity
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AgileEVM: brief Analyze
Earned Value > Actual Costs You spend less than expected
Actual Costs > Earned Value You spend more than expected
Earned Value< Planned Value You go over the schedule and deliver late
Earned Value>= Planned Value Tip Top, you're even
ahead
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Examples
Scoreboard
Velocity
Release Burndown
SPI (schedule performance index) & CPI (cost performance index)
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Scoreboard
PRSP: initial Story PointsBAC: budget as completed
IL: iteration length
PI: Planned iteration
n: iteration Number SPC:
Story Points completed
SPA: Story Points added
(BAC - cumEV)/cumCPI
BAC - cumEV
cumulative story point completed for n sprints
This gives us the ability to give a complex burndown chart that shows scope growth and velocty
Average velocity from start
Cumulative story points
Actual % completed
n/PI
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Velocity
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Release Burndown
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SPI (schedule performance index) & CPI (cost performance index)
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Governance Structures
Sample Product Owner Team Complex Product Owner Hierarchy
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work is decomposed from goals, and reported to track progress in reaching goals
The wailing Wall
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Indexes & References
1. Organizational Structure: What is the role of Management?
2. Scrum Reporting Relationship
3. Companies using SCRUM
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Organizational Structure: What is the role of Management?
CIO, CTO, VP
Engineering
Product Line Manager
Product Line Manager
Product Line Manager
FunctionalManager
FunctionalManager
FunctionalManager
PMO
Usability Engineeri
ng
DBA
Infrastructure
Quality Assurance
Copyright 1996-2007, ADM, all rights reserved v8.0
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Scrum Reporting Relationships
DevelopmentTeam
DevelopmentTeam
DevelopmentTeam
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Companies using SCRUM
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References
http://www.methodsandtools.com/mt/download.php?fall09http://www.infoq.com/articles/agile-evm
http://www.agile-lu.org/www.linkedin.com/groups?gid=1010877http://www.viadeo.com/hub/afficherubrique/?hubId=00228fpqzpnccn8v&forumId=002jx74kpan69flhttps://www.xing.com/net/agilelux/https://www.xing.com/net/a-saar/
Other: -AgileEVM Adding Cost Control to the Agile Toolkit by Tamara Sulaiman-Project Portfolio Management with AgileEVM by Brent Barton
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Thank You Pierre E. NEIS Certified Scrum Product Owner
President of AIGLU Senior Management Consultant
[email protected] www.linkedin.com/in/pierreneis
The oak one day says to the reed:—You have a good right to blame the nature of things: A wren for you is a heavy thing to bear. The slightest wind which is likely To wrinkle the face of the water Compels you to bow your head—While my brow, like Mount Caucasus, Not satisfied with catching the rays of the sun, Resists the effort of the tempest. All for you is north wind, all seems to me soft breeze. Still, if you had been born in the protection of the foliage The surrounding of which I cover, I would defend you from the storm. But you come to be most often On the wet edges of the kingdoms of the wind. Nature seems to me quite unjust to you. —Your compassion, answered the shrub, Arises from a kind nature; but leave off this care. The winds are less fearful to me than to you. I bend and do not break. You have until now Against their frightening blows Stood up without bending your back; But look out for what can be. —As the reed said these words, From the edge of the horizon furiously comes to them The most terrible of the progeny Which the North has till then contained within it. The tree holds up well; the reed bends. The wind doubles its trying; And does so well that it uproots That, the head of which was neighbor to the sky, And the feet of which touched the empire of the dead.
The Oak and the Reed (Translation by Eli Siegel)Jean de LA FONTAINE (1621-1695)
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