Creating A Model To Understand Product (And Software) Development

What’s Next In the
info@netobjectives.com
Agile World?
www.netobjectives.com The Case for Lean-Agile
Software Development
1 Copyright © 2008 Net Objectives. All Rights Reserved. 20 May 2009

What’s Next?
Kanban!
Thank You For
Being Here
www.netobjectives.com

Where We Have
Been
A (very) short history of the
software development culture
4 20 May 2009
The Importance of Software
 Software is permeating more and

more of our
businesses/lives/culture
 The quality of our software is having
a greater influence on the quality of
our lives
 Failures in software are now
capable of doing greater and
greater damage
 Other professions are becoming
increasingly vulnerable to software

Tick - Tock
 60s: Software Crisis  70s: Software Engineering /

Waterfall
 80s: PCs  80s: 4th Generation
Language
 90s: Internet  90s: Rigorous Process
(CMM)
 00s: Consumer  00s: CMMI (done
Technologies / Agile improperly)
methods

The Arrival
of Agile
Agile Has Been as Much a
Reaction as it Has Been a
Solution
7 20 May 2009
Agile Manifesto
 Individuals and interactions over processes and tools

 Working software over comprehensive documentation
 Customer collaboration over contract negotiation
 Responding to change over following a plan

What Is Agile?
 Build software in steps

 Get feedback from customers
 Self-organizing teams
 Deliver high quality software, faster, at lower cost

eXtreme Programming
 Very popular for a few years 99-??

 Demanded too much from developers
 Why?

Scrum
 Based on few principles

 Several practices
 Embraces “inspect and adapt”
 Protect the team – exclude management

Current
Challenges
We're Moving, But
We're Not There
12 20 May 2009
Current Challenges
 Practices more widespread than principles

 Lack of proper management view
 Lack of professionalism / craftsmanship

We Need More
 Practices work in a context

 We have practice adherence but low agility
 No set of practices will work in more than a limited
number of situations
 If you look for someone else’s success you will get your
own failure

What Does It Take to Learn Something?
“Theory by itself
teaches nothing. Hunches,
Application by itself hypotheses,
guesses Theory
teaches nothing.
Learning is the result Interaction
of dynamic interplay Data

Experience,
between the two.” observation,
real life
Peter Scholtes, The Leader’s
True learning
Handbook: A Guide To and improvement
Inspiring Your People and
Managing the Daily
Workflow

Available Management Paradigms
3 industrial paradigms
1900
Interchangeable
People –
Assembly Line
1800
Interchangeable
Parts
Craft

Improvements
Needed
17 20 May 2009
Business Issue
 If Software is important to a business then they have to

control:
– What it will do
– When it is finished
– What it will cost
 How do you control something you don't understand, if
you are running a business?
 Find something it is "like" that you do understand, and
reuse that knowledge
 What is software development like?

Re-thinking Change
 If we accept that change is inevitable…

 and if change means decay…
…isn't decay inevitable?

Decay
 Hack it in
Quality as Code Changes
Functional
Completeness  Code Debt
 "That’s the way it is"
Time
Release Maintenance Cheaper to

Replace

Rejecting Decay: Changing Change
Quality as Code Changes
Based on what
we have
learned
 "First, do no harm"
Validateable:
What we think
we know
 Code what you know
 Validation-Centricity
Time
First Further Iterations

Iteration

The Nature of Software Development
 Is Software Development a true "Profession?"

 Is it Engineering?
 Is it an Art?
 Is it a Craft?
 Is it Science?

What Is Missing
 Other Professions have:
– Specialized language
– Clear path to entry
– Defined mentoring
– Peer-review
– Standards & practices
 A profession is an organism:
– There has been "medicine" for thousands of years, but no
particular doctor has been around that long

Can Initially Be Thought of as Answers to Questions
 What would you want someone to know before leading

a Lean Transition at the team level?
 What would you want management to know before
leading their organization?
 What would you want a programmer to know before
touching your code?

Lean Provides
New
Opportunities
There Is a Foundation
To Build On
25 20 May 2009
Science / Experience as the Source of Lean
Software
Toyota Services
Development
Lean
Lean-Thinking
Principles
Flow
JIT Autonomation
Deming
The Lean Enterprise
Lean “Science”
Flow, Cadence, Pull
Options Theory
ToC
Lean
Thinking
Lean Lean
Management Education
Leadership A3s, Kaizens
Education Continuous
Visual Controls improvement
5-whys
27 _1dd Copyright © 2008 Net Objectives. All Rights Reserved. 20 May 2009
The Management Dilemma of the Last 4 Decades
Command and Control Individuals/Teams Rule

 Set direction & how to do it  Figure it out
 Figure out the one best way  Avoid management
 Get teams motivated  The rules are do it fast
 Make sure teams do it right  Individuals are key
 Process is good  Process is bad
 We’d be successful if only  We’d be successful if only
the devs would do what management would let us
they are supposed to do the right thing

Lean: A New Paradigm
4 industrial paradigms
2000 Engaged,
Thinking People –
Lean
1900
Interchangeable
People –
Assembly Line
1800
Interchangeable
Parts
Craft

Organization Concerns / “Boundaries”
Team Technical & Line Mgrs Business Owners

How do we achieve What – is the best way to Why – is this of value?
that value? deliver that value ?
• Speed of • Technology • Portfolio of Projects
• analysis • Process for Discovery and • Budgets
• build Development • Priority & Sequence
• validation • Core Engineering Practices • Continual discovery of
• deployment • System integrity highest business value
• Continual • Boundaries to empower
standards teams
improvement • Resolution of Impediments to
speed and flow
• Skills excellence and optimized
team performance
Iterative Iterative Incremental

Achieving
Enterprise Agility
31 20 May 2009
Agility
Its about Agility; you can be more agile or less agile in

your efforts
An agile team is only as agile as the business &
management is agile…
Challenges / Questions
 Does it work in the real world?
 Would it work for my company?
 What must we do?
 How long until we see results?
Enterprise Agility

Driving from
Value
34 20 May 2009
Speed of Realizing Business Value
 Develop Faster
 Deploy Faster
 Use Faster! “Business Value can be Realized”

Trends for
Business Value
Realization
36 20 May 2009
Type 1
Business value realized
release
release
release
Time

Type 2
release
release
release
Time

Type 3
release
release
release
Time

Type 4
release
release
release
Time

42
100%
120%
140%
0%
20%
40%
60%
80%
Overnight AppA & Pricing Distribution to InitiativeB
Vendor1 Equity AppA Data Buildout - InitiativeD
Trade Administration checklist - fixed income
Vendor1 One-day Sourcing/Acquisition-request
One-day AppA Distribution to InitiativeB - fixed income
Vendor1 One-day Sourcing/Acquisition-response
Vendor1 Fixed Income AppA Data Buildout - InitiativeD
October Enabling
October Vendor5 Production Support Requests
October Elevation
10/07
Actions InitiativeC for downstairs office

4Q2007 Decoupling - Stored proc development
AppA Distribution to InitiativeD
4Q2007 Decoupling - Database buildout
Team on UI
AppA Final Analysis and Definition
Nov/Dec Elevation & Enabling
Vendor2 One-day Sourcing/Acquisition-request
4Q07
Vendor2 One-day Sourcing/Acquisition-response

Vendor2 Equity AppA Raw Data Buildout
Vendor2 Fixed Income AppA Raw Data Buildout
Vendor2 Overnight Sourcing/Acquisition-request
Vendor2 Overnight Sourcing/Acquisition-response
Vendor3 Holdings and AppA buildout
Business custom security to support request buildout
Registrant buildout
Vendor12 Industry Classification buildout
Fixed Income Analysis
Source and Load AppC attributes from external vendors (Vendor1 and …
AppA Distribution to InitiativeD Equity - One-day
AppA Final Design and Implement (with contingency)
Vendor4 checklist
04/08
Deliver equity AppA to Vendor3

Features
Deliver fixed income AppA to Vendor3

Manage Add/Repair of Advisor AppA Data
AppA Distribution to InitiativeD - One-day
Overnight AppA & Pricing Distribution to InitiativeB - equity
Copyright © 2008 Net Objectives. All Rights Reserved.

One-day AppA Distribution to InitiativeB - equity
Day 0 with InitiativeB Local DB - equity
Broker UI/Functionality Refactor
Exchange UI/Functionality Refactor
progress on completing features in release.

Vendor13 Account UI/Functionality Refactor
Delivery Plan Feature Burn Up
Exceptions - processing and UI refactor

Vendor checklist, Attributes and Audit via UI
The project has been prioritized. Making good
Distribute final attributes to AppC
Load derived AppC attributes to environment
April 2008 InitiativeA Production Support Requests
April 2008 Enabling
April 2008 Elevation
Project View: By Project Business Value
20 May 2009
43
% Complete
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0%
Vendor1 Equity AppA Data Buildout
AppA Distribution to InitiativeD (by…
Overnight AppA & Pricing Distribution…
Actions InitiativeC for downstairs office
4Q2007 Decoupling
Vendor1 Fixed Income AppA Data…
Vendor1 Sourcing/Acquisition-response
Day 0 Analysis/Integration with…
2007August InitiativeA Production…
Vendor1 Equity AppA Data Buildout -…
Trade Administration List
Vendor1 Sourcing/Acquisition-request
AppA Distribution to InitiativeD (One-…
AppA to Vendor10
Vendor2 Equity AppA Data Buildout
AppA Final Analysis and Definition
AppA Data Buildout (FX, Futures,…
Vendor2 Overnight…
Vendor2 Overnight…
Corporate Actions - Willow
One-day AppA Distribution to InitiativeB
Corporate Actions - Fir
Exceptions
2008 Decoupling
AppC
Fixed Income Analysis
Vendor2 One-day…
Vendor2 One-day…
Security Depository Data
AppA final-check implementation
Manage Add/Repair of Advisor AppA…
Adress Vendor4 List
Metrics/Monitoring
Consumer Profile - View
Consumer checklist - InitiativeE & audit
Vendor checklist
Audit Catch-Up for August
AppB System Functionality
Consumer checklist - View,…
Implement Consumer Changes
Implement Vendor8 calendar data
2008 Aug InitiativeA Production…
2008 Dec InitiativeA Production…
Features
Audit Capture, Storage and Reporting
Copyright © 2008 Net Objectives. All Rights Reserved.

Metadata catalogue
March InitiativeA Production Support…
October InitiativeA Production…
Automated Swift Download
Consumer Profile - InitiativeE & audit
AppB Application Security
Vendor Profile
Feature Burn Up by Business Value
Country, Currency, Calendars on UI

Cherry
Birch
Same project, within program, sorted by business value
2007 August Elevation
2007 August Enabling
2007 May Elevation
2007 May Enabling
2007 October Enabling
2007 October Elevation
Nov/Dec Elevation
2008 April Enabling
Product Portfolio View: By Business Value
2008 April Elevation

Q: Why is so much work being spent on lower priority features?
2008 August Enabling

2008 August Elevation
2008 Dec Enabling
2008 Dec Elevation
20 May 2009
Organizational
Impacts
44 20 May 2009
Organizational Impacts
 Business
– Prioritize features by highest business value
– ‘drive’ the development efforts to incrementally deliver
 Development Organization
– Focus on SPEED in delivering software functionality
– Must include functionality, maintainability, and extensibility
– Requires excellent engineering practices
 Management
– What is the best way to achieve Fast, Flexible, Flow
– Continuous Standards Improvement
– Organizational guiding principles, Impediment removal

Organization Concerns / “Boundaries”
Team Technical & Line Mgrs Business Owners

How do we achieve What – is the best way to Why – is this of value?
that value? deliver that value ?
• Speed of • Technology • Portfolio of Projects
• analysis • Process for Discovery and • Budgets
• build Development • Priority & Sequence
• validation • Core Engineering Practices • Continual discovery of
• deployment • System integrity highest business value
• Continual • Boundaries to empower
standards teams
improvement • Resolution of Impediments to
speed and flow
• Skills excellence and optimized
team performance
Iterative Iterative Incremental

Discovery & a
new approach
Quality Low Cost
Speed
47 20 May 2009
Which Is More Important?
 Discovery of what’s valuable?

– To the Customer & To the Business
 Building (and achieving it)?
You can not build the right thing if you haven’t
discovered it first!
 Not everything is known or understood upfront by
Business / Customer (from a systems view)
 Business should be able to:
– Specify what’s most important at any given point in time
– Learn from what is already implemented
– Learn from their changing environment
– Update and reprioritize their requirements

Business Driven
Software
Development
49 20 May 2009
Business Driven Software Development
Business Driven Software Development is where the

Business:
 Owns Scope and Incremental Releases
 Continually discovers and prioritizes increments by
highest business value
 Continually manages and validates what the
development teams are producing

Challenges & New Approach
Current Approach –Project New Approach – Business

based Value based
 Fixed Scope, Budget, Schedule  Discover highest business value,
 Define all requirements without allocate budget here
priority  Prioritize based on Business
 Scope evolves, but budget and Value, Sequence based on ROI
schedule remain fixed  Re-prioritize based on updated
 Big Bang Deployment discovery, budget follows
 Team only builds & deploys
priority increments

Key Business Roles
Role Responsibilities
Sponsor Ultimately accountable for
project/program success; Sets the vision,
direction and priorities; Dedicates
resources and assigns Product Owner
Product Owner Defines, Tests, and accepts product; sets
priorities based on business value;
accountable for the realization of vision
and business benefits
Business Technology Lead Facilitates continuous planning to front-run
/ SMEs teams; provides knowledge of business
processes, products and services; defines
requirements / scenarios; executes
acceptance tests; manages
implementation, business acceptance,
elevation and transition.

Critical Success Factors to Agile
•Clear business vision, continuous planning and oversight

•Dedicated and empowered business leader
•Project scope can be partitioned into independent pieces that can be delivered separately
People Process
• The right business leads • Continuous planning, discovery and
• Allocation of business SMEs to development
support projects • Prioritization of technology spending
• Skills excellence and optimized team to highest business value
performance • Boundaries to empower teams
• Resolution of impediments to speed
and flow

Glossary
 Minimum Marketable Feature – Increment of realizable

business value; decomposed from projects, comprised
of business capabilities.
 Business Capability – business functionality ‘supporting’
the business and/or provides value to our customers
 Business Feature – an increment of business value that
is comprised of slices of business capabilities.

Continual
Business
Planning
55 20 May 2009
Business Driven Software Development
4 Stages (containers)
1) Business Portfolio
2) Business Product Portfolio (MMFs)
3) Release Product Backlog
4) Sprint Backlog(s)

Business Portfolio – Container 1
Business Product
Portfolio - MMF’s
Inputs: Prioritized
Projects, budgets
Outputs: Release
goals, MMFs

Minimum Marketable Features – Container 2
Business Product
Portfolio - MMF’s
Inputs: Prioritized
Projects, budgets
Outputs: Release
goals, MMFs

Decompose MMFs into Business Features

Release Product Backlog – Container 3
Release Product Backlog
Inputs: Release Goals, Prioritized MMFs

Outputs: Scope of Effort, Refined
Prioritized Business Features (Scenarios/
personas), Release Plan, User Stories for
team(s)

Release View cont’d.

Sprint Backlog(s) – Container 4
Container 4 – Sprint Backlog(s)
Inputs: Priority sequenced User stories,

next priority business features
Outputs: Validated completed user stories
and next sprints’ prioritized user stories

Business Increment Precision

Business Planning
Submit to Team Design Define
Product Owner & Customer Team Business Team Business Sponsor / Manager
• Minimal Marketable • Business Capabilities • Define Goals

Feature (MMFs) prioritized • Workflows • Business Value criteria
by Business Value • Process models / maps • Success Metrics
• Prioritized Business • Scenarios • Message Map
Features • Segments / audience
• Scenarios / Personas • OBT & Budget
• Validation approach &
Acceptance Criteria
How What Why

Teams Pull from Business Needs
Build & Deploy Define Discover

Team Business Owner & Tech owner Product Owner
• Build product • Marry features with system • Discovery of what is next in

• Use Agile methods for high evolution on how to build Product Backlog (based on
quality and responsiveness them business value)
• Perform detailed design • How to iteratively achieve
• Begin Functional this value
acceptance criteria/tests • Features defined with
acceptance criteria
How What Why
Customer / User Feedback

Sprint 4: Feature Burn Up by Release
 This graph shows

– Num features
actively in work
– Swarming well on
incremental
delivery?
 Q: In Sprint 4, likely
to succeed in
release?
– Why so many
activities for future
releases?
Business view: Feature completion

Sprint 5: Refocused Based on Priorities
 In Sprint 5, high Business Priority l low
Product Owner
refocuses team
based on business
value priorities
– Increases
likelihood of
success in earlier
releases
– Less work on
features for future
releases
Business view: Feature completion by priorities

Improving an
Organization
There is no One Best Way
(bummer)
68 20 May 2009
The Lean Enterprise
Business
Prioritize for Profit
Product Portfolio
Release Planning
Lean
Enterprise
Management Development
Value Stream Practices
Visual Controls TDD/QA
Impediment Mgt Design Patterns
Refactoring
69 _1dd Copyright © 2008 Net Objectives. All Rights Reserved. 20 May 2009
Focus on Shortening Time to Market
Customers
Regional Coordinators
Product Managers
Business Leaders
Product Owner(s) Trainers & Educators
Customers
and/or
Support
Shared
Components
Product
Related
New Products and/or Development

Enhancements Organization
Scope of Current Methods
Customers
Product Managers
Business Leaders

Customers
and/or
Support
Agile
Scrum & XP
Shared
Components
Product
Related

Extending Agile
 Agile doesn’t explicitly deal with management

 It somewhat ignores process except to say not to let it
get in the way
 Agile has had a paradigm of:
– Teams
– Small pieces coming together
– A result of it’s XP and Scrum heritage
 Lean extends Agile with:
– A non-command and control management model
– A view of the whole
– Business driven

Lean-Agile Works
 Lean provides the Enterprise and Business Perspective

 Gives mantra of eliminating waste to reduce delays
 Results in faster time to market, higher quality, lower
costs
 Provides guidance for product portfolio management
– Key business capabilities
– Developed faster
 Agile enables teams to work in their best way
– Not ad hoc
– Process is the best they know, but they will continue to
improve it

The Flow of Software Development
Customers
Product Managers
Business Leaders
Customers
and/or
Support
Shared
Components
Product
Related

Customers
Product Managers
Business Leaders
Customers
and/or
Support
Step 1- Kanban/
Agile Teams: Start
with selected
teams.
Shared
Components
Product
Related

Customers
Product Managers
Business Leaders
Customers
and/or
Support
Step 2 - Flow:
Improve the
ways product
enhancements
are given to the
teams Shared
Components
Product
Related

Customers
Product Managers
Business Leaders
Customers
and/or
Support
Step 3 – Increase
ROI: Create an
agile product
portfolio
management
group
Shared
Components
Product
Related

Customers
Product Managers
Business Leaders
Customers
and/or
Support
In parallel: Be
improving both
the technical skills
of the developers
with design
patterns and TDD
and improve the
Shared
Components
structure of the
Product teams in order to
Related reduce integration
costs.
Summary
 Take an Enterprise view

– Look at entire flow
– Use Lean-Thinking
– Not team thinking expanded
 Removing waste will speed time to market while
improving quality and lowering cost

Question and
Answer
80 20 May 2009
Thank You!
www.netobjectives.com … and following is more to help you
plan your next steps

Resources
 Resources: www.netobjectives.com/resources
– Webinars/Training Videos (PowerPoint with audio)
– Articles and whitepapers
– Pre/post course support Supporting materials
– Quizzes
– Recommended reading paths
 Blogs and podcasts: blogs.netobjectives.com
 Annotated Bibliography
 After-Course Support (students only)
 Additional Training
 Two User Groups
– http://tech.groups.yahoo.com/group/leanagile
– http://tech.groups.yahoo.com/group/leanprogramming
Join our e-mail list to receive regular updates and information

about our resources and training of interest to you

Tailored Bibliography
 Scott Bain, Emergent Design: The Evolutionary Nature

of Professional Software Development
 Ken Pugh, Prefactoring
 Don Reinertsen, The Principles of Product Development
Flow: Second Generation Lean Product Development
 Don Reinertsen, Managing the Design Factory
 Shalloway, Beaver, Trott: Lean-Agile Software
Development: Achieving Enterprise Agility
 Corey Ladas, Scrumban and Other Essays on Kanban
Systems for Lean Software Development

A Short List of Books - Lean Related
 Womack and Jones: Lean-Thinking
 Mary & Tom Poppendieck
– Lean Software Development
– Implementing Lean Software Development: From Concept to Cash
 Jeff Liker: The Toyota Way
 Michael Kennedy: Product Development in the Lean Enterprise
 Taiichi Ohno: Toyota Production System
 Ronald Mascitelli: Building a Project-Driven Enterprise: How to Slash Waste and
Boost Profits Through Lean Project Management
 Kennedy, Harmon, Minnock: Ready, Set, Dominate: Implement Toyota's Set-based
Learning for Developing Products and Nobody Can Catch You
See http://www.netobjectives.com/resources/bibliography for a full bibliography

84 Copyright © 2008 Net Objectives. All Rights Reserved. _s 20 May 2009
Lean Management and Other Relevant Books
 Peter Scholtes: The Leader’s Handbook: Making Things

Happen, Getting Things Done
 David Mann: Creating A Lean Culture: Tools to Sustain
Lean Conversions
 William Bridges: Managing Transitions
 Weick and Sutcliffe: Managing the Unexpected:
Assuring High Performance in an Age of Complexity

A Short List of Books - Technical
 Mugridge & Cunningham: Fit for Developing Software
 Michael Feathers: Working Effectively with Legacy Code
 Shalloway & Trott: Design Patterns Explained, A New Perspective on Object-
Oriented Design
 Bob Martin: Agile Software Development: Principles, Patterns and Practices
 Freeman, Freeman, Bates, Sierra: Head First Design Patterns
 Martin Fowler, Refactoring: Improving the Design of Existing Code
 Ken Pugh, Prefactoring
 Scott Bain, Emergent Design: The Evolutionary Nature of Professional
Software Development

86 Copyright © 2008 Net Objectives. All Rights Reserved. _s 20 May 2009
New Online Course
 Everywhere (Internet)
– Lean Software Development – TBD starting this summer
For more information, see www.netobjectives.com/courses

Net Objectives Services
Training in Sustainable Product Development Certification Programs by Net Objectives
Net Objectives offers the most comprehensive Net Objectives offers certification programs that
Lean-Agile training in the world. Our offerings provides a road-map of knowledge as well as
include Lean, Agile Analysis, Scrum, Design Patterns, resources to get there.
Test-Driven Development, and Lean-Agile Testing. • Scrum Certification
Our approach is a blend of principles and practices • Scrum Master Certification
to provide a complete team and/or enterprise wide • Product Owner Certification
training solution.
Net Objectives is not affiliated with the Scrum Alliance
Assessment Services Lean-Agile Coaching

An effective way to embark on an enterprise level While training provides foundational knowledge
transition to Lean-Agile methods is to start with an and is a great jump start, coaching is another
assessment of where you are, where you want to go effective way to increase the abilities of teams.
and options on how to get there that are right for
Our coaches work with your teams to provide
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Coaching provides the knowledge transfer while
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What’s Next In the

1 Copyright © 2008 Net Objectives. All Rights Reserved. 20 May 2009

3 Copyright © 2008 Net Objectives. All Rights Reserved. 20 May 2009

 Software is permeating more and

5 Copyright © 2008 Net Objectives. All Rights Reserved. 20 May 2009

 60s: Software Crisis  70s: Software Engineering /

6 Copyright © 2008 Net Objectives. All Rights Reserved. 20 May 2009

 Individuals and interactions over processes and tools

8 Copyright © 2008 Net Objectives. All Rights Reserved. 20 May 2009

 Build software in steps

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 Very popular for a few years 99-??

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 Based on few principles

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 Practices more widespread than principles

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 Practices work in a context

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of dynamic interplay Data

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 If Software is important to a business then they have to

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 If we accept that change is inevitable…

…isn't decay inevitable?

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Release Maintenance Cheaper to

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First Further Iterations

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 Is Software Development a true "Profession?"

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 What would you want someone to know before leading

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Command and Control Individuals/Teams Rule

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Team Technical & Line Mgrs Business Owners

Iterative Iterative Incremental

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Its about Agility; you can be more agile or less agile in

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Business value realized

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Business value realized

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Business value realized

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Business value realized

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Actions InitiativeC for downstairs office

Vendor2 One-day Sourcing/Acquisition-response

Deliver equity AppA to Vendor3

Deliver fixed income AppA to Vendor3

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progress on completing features in release.

Exceptions - processing and UI refactor

Audit Capture, Storage and Reporting

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Country, Currency, Calendars on UI