Zen and the Art of Software Quality Jim Highsmith Director, Agile Practice & Fellow Cutter Consortium ©2009 Jim Highsmith

Agile Books by Jim Highsmith

NEW RELEASE © 2009 Jim Highsmith

2

“There is no more Normal” “Without exception, all of my biggest mistakes occurred because I moved too slowly.” --John Chambers, Cisco CEO, Business Week, March 23, 2009. “There is no more Normal.”

“He [Chambers] also radically changed the way he managed, turning a command-and-control hierarchy into a more democratic organizational structure.”

© 2009 Jim Highsmith

3

Strategic Agility Adapting to Change over Conforming to Plans Conform

Bu S t sin ra es te gy s

Value

Business Week,

The Case for Agile

Adapt

“There is no more Normal”

World View

March 23, 2009. Ex St ecu ra ti te on gy

of e r su ess a Me ucc S

Business Goals Organization

Product Backlog

Process

Product Management Team Product Roadmap

CAPABILITY 1

CAPABILITY 2

Feature 1

Feature 2

Feature 3

Story 4

Story 7

Release Management Team Release Plan

Feature Team Story 1 Story 1

Quality © 2009 Jim Highsmith

Constraints

Story 4

Story 7

Story 2

Story 5

Story 8

Story 2 Story 3

Story 5 Story 6

Story 8 Story 9

Story 3

Story 6

Story 9

Iteration Plan

Agile Values

4

A Measure of Success

“I recently asked a colleague [CIO] whether he would prefer to deliver a project somewhat late and over-budget but rich with business benefits or one that is on-time and underbudget but of scant value to the business. He thought it was a tough call, and then went for the on-time scenario. Delivering on-time and within budget is part of his IT department’s performance metrics. Chasing after the elusive business value, over which he thought he had little control anyway, is not.”

Cutter Sr. Consultant Helen Pukszta © 2009 Jim Highsmith

5

Mixed Messages

Conform to Plan

© 2009 Jim Highsmith

Be Flexible

6

Measuring Agile Success  Measurement concepts  Quality  Value  The Agile Triangle

© 2009 Jim Highsmith

7

Measurement Concepts

© 2009 Jim Highsmith

8

A Waterfall Failure 

In Artful Making, Harvard Business School Professor and Cutter Fellow Rob Austin and coauthor Lee Devin discuss a US $125 million IT project disaster in which the company refused to improvise and change from the detailed plan set down prior to the project’s start. “Plan the work and work the plan” was their implicit mantra. And it led them directly to a costly and destructive course of action.… We’d all like to believe that this kind of problem is rare in business. It’s not.”

© 2009 Jim Highsmith

9

Standish Reports  Standish Group “Chaos Reports”

• 1994 — 82% challenged or failures • 2001 — 72% challenged or failures • 2009 — 68% challenged or failures  Definition of project “success”

• Successful: on time, on budget, all specified features; • Challenged: completed and operational, but over budget, late, and with fewer features and functions than initially specified; • Failed: canceled before completion or never implemented.

The Standish data are NOT a good indicator of poor software development performance. However, they ARE an indicator of systemic failure of our planning and measurement processes. © 2009 Jim Highsmith

10

Our Current Environment  Conformance to Plan (schedule, scope, cost) is the norm for

measuring success.  Schedule is more important than customer value.  Our measures restrict agility and innovation.

© 2009 Jim Highsmith

11

Conceptual Background Sources  Beyond Budgeting: How Managers Can Break Free from the

Annual Performance Trap (2003), Jeremy Hope and Robin Fraser.  Measuring and Managing Performance in Organizations (1996),

Rob Austin.

© 2009 Jim Highsmith

12

Conceptual Background “Budgets have since been hijacked by a generation of financial engineers that have used them as remote control devices to ‘manage by the numbers.’ They have turned budgets into fixed performance contracts that force managers at all levels to commit to delivering specified financial outcomes, even though many of the variables underpinning those outcomes are beyond their control.” -- Jeremy Hope and Robin Fraser

© 2009 Jim Highsmith

13

Beyond Budgeting: Principles  Provide a governance framework based on clear principles and

boundaries.  Create a high-performance climate based on relative success.  Give people freedom to make local decisions that are consistent

with governance principles and the organization’s goals.  Place the responsibility for value-creating decisions on frontline

teams.  Make people accountable for customer outcomes.  Support open and ethical information systems.

© 2009 Jim Highsmith

14

Conceptual Background  Measuring and Managing Performance in Organizations (1996),

Rob Austin: “If there is a single message that comes from this book, it is that trust, honesty, and good intentions are more efficient in many social contexts than verification, guile, and self-interest.”

© 2009 Jim Highsmith

15

Austin — How Measurement Systems Become Dysfunctional Step 1: Measurement system installed. Step 2: Performance tends to improve while people figure out the system. Step 3: People, under pressure, focus on measurement goals rather than outcomes. (Always a disconnect between the desired outcome and the measurement. Example: (1) productivity; lines of code. Step 4:

Metric

Performance measurement

Desired Outcome

Time © 2009 Jim Highsmith

16

Dysfunctional Measurement Systems

“the implementation of more sophisticated measures caused more sophisticated dysfunctional reactions.” Those being measured “can increase their rewards if they can successfully obliterate the correlation between true output and measured performance.” -- Austin

© 2009 Jim Highsmith

17

Agile Measurement — Goals  To focus on desired strategic or tactical outcomes.  To encourage teams to perform at a high levels of output.

© 2009 Jim Highsmith

18

The Agile Iron Triangle

Traditional Iron Triangle Scope

Cost

© 2009 Jim Highsmith

Schedule

Agile Iron Triangle Cost

Scope

Schedule

19

Changing to Outcomes

The Traditional Iron Triangle

The Agile Triangle

Scope

Value

Cost

© 2009 Jim Highsmith

Schedule

Quality

Constraints (scope, cost, schedule)

20

The Agile Triangle Value (Releasable Product)

Quality (Reliable, Adaptable Product)

© 2009 Jim Highsmith

Constraints (cost, schedule, scope)

21

Quality

© 2009 Jim Highsmith

22

Delivering Legendary Quality  What is Quality?  How do we manage for Quality?  How do we measure Quality?  How do we measure success

in Agile organizations?

© 2009 Jim Highsmith

23

What is Quality?

“Quality is the continuing stimulus which causes us to create the world in which we live.” “Quality… you know what it is, yet you don’t know what it is.” Robert Pirsig, Zen and the Art of Motorcycle Maintenance (1974)

© 2009 Jim Highsmith

24

The Dichotomy of Quality  Intrinsic or Extrinsic? • Does quality exist in the things we observe or is it subjective, existing only in the eye of the observer?

 The “House of Cards”

“You take your analytic knife, put the point directly on the term Quality and just tap, not hard, gently, and the whole world splits, cleaves, right in two—hip and square, classic and romantic, technological and humanistic—and the split is clean.” —Robert Pirsig

Zen and the Art of Motorcycle Maintenance (1974)

© 2009 Jim Highsmith

25

What is Quality?  “Quality is conformance to user requirements.”

—Phillip Crosby, Quality is Free (1980s)  “Quality is the absence of defects that would make software stop completely

or produce unacceptable results.” —Capers Jones, Applied Software Measurement (1991)  “Quality is achieving excellent levels of fitness for use, conformance to

requirements, reliability, and maintainability.” —Watts Humphrey, Managing the Software Process (1980s)  “Quality is value to some person.”

—Jerry Weinberg, Quality Software Management (1992)  “Quality is customer expectations delivered.”

—Internal company definition

© 2009 Jim Highsmith

26

The Dichotomy of Quality  A false dichotomy?

Extrinsic Quality = Value Total Quality Intrinsic Quality = Quality

© 2009 Jim Highsmith

27

Is Intrinsic Quality Important?  Leading edge enterprises employ technologies that can approach

99% cumulative defect removal rates.  The norm for US firms is a cumulative defect removal rate of 75%.  A cumulative defect removal rate of 95% on a project appears to

be a nodal point where several other benefits accrue. For projects of similar size and type, these projects: • have the shortest schedules. • have the lowest quantity of effort in terms of person-months • have the highest levels of user satisfaction after release. • —Capers Jones, Applied Software Measurement (1991) Remember this number

© 2009 Jim Highsmith

28

Instruments Co. From Technology to Customer Focus  Overhaul the entire product development process  Average results from 6 before- and 6 after-Agile projects

Project Cost Project Schedule Cumulative Defects Staffing

© 2009 Jim Highsmith

Previous Performance

Current Performance

Percent Improvement

$2.8 Million

$1.1 Million

-$1.7M (-61%)

18 months

13.5 months

-4.5 mo (-24%)

2,270

381

-1889 (-83%)

18

11

-7 (-39%)

Source: Michael Mah, Cutter Consortium and QSM Associates29

Software Company I  Team about 35 people  > 1million LOC, >17,000 automated tests

Industry Average

Current Performance

Project Cost

$3.5 Million

$2.2 Million

-$1.3M (-37%)

Project Schedule

12.6 months

7.8 months

-4.8 mo (-38%)

2,890

1,450

1,440 (-50%)

35

35

na

Cumulative Defects Staffing

Improvement

Source: Michael Mah, QSM Associates © 2009 Jim Highsmith

30

Software Company II 

Team about 100 people, highly distributed team



Database: 7,300 projects, 500+organizations, 18 countries: PI among the very highest recorded Industry Average

Current Performance

$5.5 Million

$5.2 Million

-$.3M (-5%)

15 months

6.3 months

-8.7 mo (-58%)

Cumulative Defects

713

635

78 (-11%)

Staffing

40

92

+52 (+130%)

Project Cost Project Schedule

Improvement

Source: Michael Mah, Cutter Consortium and QSM Associates © 2009 Jim Highsmith

31

Productivity Productivity Indexes Index (PI) Industry values

Information

Business Scientific System

Engineering

Process Control Telecommunications Command and Control Real Time

Real Time

Avionics Microcode 0

2

Provided by BMC Software, Inc. 32 © 2009 Jim Highsmith

4

6

8

10

12

14

16

18

20

22

24

26 28

Productivity Index (PI) w/ ±1 Standard Deviation 32

Why is Technical Quality so Important?  The Impact of code quality on testing  Error Location Dynamics  Error Feedback Ratio  Technical Debt

© 2009 Jim Highsmith

33

The Impact of Code Quality on Testing

Development: 10 days, 4 people, 4 KLOC, 1 d/KLOC

Development: 10 days, 4 people, 4 KLOC, 15 d/KLOC

Test time= 2 days

How long to test? Assume ½ day to find & fix per defect.

Test time= 30 days

Outcome: no time to finish testing, technical debt increases!

© 2009 Jim Highsmith

34

Error Location Dynamics

64 56

Difficult errors take longer to find:

48 40

Errors Located

1 hr/d to 50 hr/d

32 24 16 8 0 0

2

4

6

8

10

12

Time

© 2009 Jim Highsmith

35

Error Feedback Ratio The Thetime timeto tofinish finishremoving removingerrors errors isiscritically dependent on the critically dependent on theerror error feedback ratio. The three simulations feedback ratio. The three simulations differ differonly onlyinintheir theirfeedback feedbackratios. ratios. AA20% difference in feedback 20% difference in feedbackratio ratio leads to an 88% difference in leads to an 88% difference in completion completiontime, time,but butthe thenext next10% 10% increase increaseleads leadsto toaa112% 112%increase. increase.

ERROR FEEDBACK: Errors put into a system when attempting to correct other faults. ERROR FEEDBACK RATIO: The number of problems created per fix. EFR = ERRORS CREATED / ERRORS RESOLVED © 2009 Jim Highsmith

36

Technical Debt

Cost of Change (CoC)

Customer Responsiveness

Actual CoC

 Once on far right of curve, all

choices are hard  If nothing is done, it just gets

worse  In applications with high

technical debt, estimating is nearly impossible Product Release

Technical Debt Optimal CoC

1 2 3 4 5 6 7 8 Years © 2009 Jim Highsmith

 Only 3 strategies

• Do nothing, it gets worse • Replace, high cost/risk • Incremental refactoring, commitment to invest

37

Why Intrinsic Quality is so Important  The impact of code quality on testing—potential exponential

increases in testing time  Error location dynamics—difficult errors take much more time  Error feedback ratio—bad fixes can cause catastrophic dynamics  Technical Debt—the above create a vicious cycle of increasing

technical debt, increased pressure, and further quality degradation

© 2009 Jim Highsmith

38

Agile Virtuous Cycle  Technical agility creates a virtuous cycle of ever higher quality

code and tests.  Improves schedules.  Reduces costs.

© 2009 Jim Highsmith

39

Value

© 2009 Jim Highsmith

40

Value Strategies  Define a releasable product  Manage the value-cost ratio  Calculate Feature/Story Value

© 2009 Jim Highsmith

41

Reducing Cost and Scope Paul Young, VP Business Capabilities & Integration, MDS Sciex. Presentation at 2005 Information Management Forum.  For a project, there might be a user requirements list of between 50

and 200 items. They tell their users, “Which three to you want to do first? We’re going to give them all to you, but they’re going to come out one at a time. Which three do you want first?”

 “The most interesting thing I learned—I was totally shocked by

this—was by the time you get to number 20, nobody is interested in the remaining 80 anymore. They would say: Forgot about that stuff. We didn’t know what we were talking about when we wrote that.”

 “If you had hired a service provider like xyz to build all those

requirements, that would just be putting money in the middle of a room and setting it on fire.”

© 2009 Jim Highsmith

42

Features and Functions Always or Often Used: 20% Always 7% Often 13% Sometimes 16%

Never Used 45% Rarely Used 19%

Never or Rarely Used: 64% © 2009 Jim Highsmith

Standish Group Study, reported by CEO Jim Johnson, XP2002

43

Traditional Value Curve

Value Cost Ratio Curve (Traditional)

Vaule Captured vs Cost Expended

120 100

100 90

80

80 70

60

Value %

60 50

40

Cost %

50

40 30

20

20 10 5

0 1

5 2

5 3

10

5 4

5

6

25

20

15

7

8

9

10

Development Phases

© 2009 Jim Highsmith

44

Agile Value Curve Strategies  Most valuable first

Value Cost Ratio Curve (Agile)

Vaule Captured vs Cost Expended

120

 Evolve features

100 90

85

80

70

Value %

60

55

40

 Determine right cut-

80

75

60

100

98 90

95

off

Cost %

50

40 30

20

20 15

10 5

0 1

2

3

4

5

6

7

8

9

10

Iteration

Where is the right cut-off point? © 2009 Jim Highsmith

45

Reducing Marginal Functionality

Capability Feature 1 Feature 2 Feature 3 Story 1 Story 2

Story 3

Story 4

Story 5

Story 6

Marginal Value Optimal

Minimal Agent processes a special retail sale.

Agent processes a special retail sale.

2 © 2009 Jim Highsmith

Expansive Agent processes a special retail sale.

4

8 46

Achieving Predictability & Flexibility

Capability Short description & must have, won’t have bullet points

Features/Stories Breadth—Now or Later Depth—Simple to Extensive F1

Value points help determine

Later Simplest Basic Nominal Extensive

F2

x

F3

F4 x

F5

F6

x x x x

In many requirements processes there isn’t a strategy for determining relative importance of requirements which leads to requirements bloat. © 2009 Jim Highsmith

47

Value Point Calculations  Value-driven planning

• • • • • •

Focus of agile development Value background Qualitative vs quantitative Calculating value points Relative versus absolute Calculating monetary value points

© 2009 Jim Highsmith

“If you don’t have time to estimate value, we don’t have time to estimate cost!”

48

Capability-level Value  Capabilities assigned a weight—1-4  Weight based on value determination

• Purpose alignment model (qualitative) • Benefit-cost analysis • MoSCoW  Calculate % of total for each capability (e.g. 6 caps, 24 CVPs, Cap

3 is 4 CVPs, therefore Cap 3 is 16.7% of the total value of the product)  Adding all the VPs for all the stories in Cap 3, they cannot exceed

16.7% of the total VPs for the product.

© 2009 Jim Highsmith

49

Story-level Value Calculation  Product/customer team determines  Use “planning poker”  Use standard values—1,2,3,5,8,13  Total cannot exceed capability allocation

© 2009 Jim Highsmith

50

Value Points to Value Dollars  Depends on company needs  Value points will be good enough for most product companies  Value dollars will be desired by many internal IT and government

organizations

© 2009 Jim Highsmith

51

Stories with Value Points As a sales associate, the ability to calculate the total amount of the sale.

C-5

V-13

As a sales supervisor, the ability to Verify the adequacy of the Customer’s Credit Rating. Rating.

C-3

V-2

As a sales executive, the ability to view all sales by product type, geographic region, and sales associate.

V-11

C-8

Story Points are a calculation of cost. Value Points are an allocation of revenue. © 2009 Jim Highsmith

52

Value and Priority  Value and Priority are different  Priority determinants

• • • • •

Planning themes Financial value Risk mitigation Technical dependency Resource Dependency

 Some NCF stories should be prioritized on a cost allocation basis

© 2009 Jim Highsmith

53

The New Challenge Martin Curley, Director IT Innovation, Intel Corporation

Innovation

Demand Compliance

Business Value

Security Workload Cost Reduction

© 2009 Jim Highsmith

54

Business Value Maturity Model (Intel)

Level 5 Level 4 Level 3 Level 2 Level 1

© 2009 Jim Highsmith

Optimized Value Options/Portfolio Mgt Simple ROI & IT Business Case Discipline

Total Cost of Ownership No or Ad Hoc Practices

55

Intel’s 17 Standard Measures of Value  Days of inventory reduction

 Scrap reduction

 Days of receivables outstanding

 Risk avoidance

 Headcount reduction

 Time-to-Market

 Headcount productivity

 Opening new markets

 System end-of-life

 Optimizing existing markets

 Materials discounts  Capital, hardware, and software

avoidance  Unit cost avoidance  Factory uptime © 2009 Jim Highsmith

 Cross selling  Vendor-of-choice

Intel White Paper: Defining the Value of E-business: Seventeen Standard Measures 56

The Agile Triangle

© 2009 Jim Highsmith

57

The Agile Triangle Value (Releasable Product)

Quality (Reliable, Adaptable Product)

Constraints (cost, schedule, scope)

A traditional project manager focuses on following the plan with minimal changes, whereas an agile leader focuses on “adapting successfully to inevitable changes. © 2009 Jim Highsmith

58

Traditional Gantt Chart — What Does It Emphasize?

ID 1

Task Name 1 Secure Financing

4

2 Form Corporation

8

3 File for State Approvals

Qtr 1, 1994

Qtr 2, 1994

Qtr 3, 1994

Qtr 4, 1994

Qtr 1, 1995

17

5 Systems Selection and Acquisition

23

6 Hire FFCS Staff

39

7 Develop Field Sales Manual & Forms

44

8 Develop Field Sales Training Material

0%

49

9 Develop Insurance Products for FFCS

0%

55

10 Form Customer Council

56

11 Develop FFCS Accounting Procedures

64

12 Obtain Legal Representation in Each State

69

13 Determine Maximum Finance Rate Permissible in Each State

74

14 Develop Field & Operational Incentive Plans

82

15 Custom Printing Implementation

83

16 Select Priority States

84

17 Vendor System Implementation

85

18 Develop FFCS Internal Procedures

98

19 Reforecast First Year Operating Projections

100% 100% 0% 0%

0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

158 21 Telecommunications

0%

168 22 Develop Internal, Management and Field Sales Reporting

0%

181 23 HO Product Interfaces Testing

0%

182 24 Vendor System Preview

184 26 Vendor System Installation and Training

© 2009 Jim Highsmith

Qtr 4, 1995

63%

4 Form Market Council

183 25 FFCS Systems Running in 'Mock' Mode for Testing

Qtr 3, 1995

100%

13

108 20 Server and Communications Network

Qtr 2, 1995

100%

0% 0% 0%

59

A Parking Lot Diagram — What Does It Emphasize? Establish Product Catalog (PC) PS

Establish Product

PS

Establish Product Attributes

PS

Establish Product Attribute Groups

Establish Network Arrangement (NW)

PS

PS

Establish Templates

LT

Establish Autodesign Mapping

LT

Establish Site

LT

Establish Node

Establish Network Element

LT

Establish Equipment

(12)

(15)

(12)

(7)

(6)

(11)

(14)

(9)

100%

100%

100%

100%

100%

100%

100%

100%

100%

Nov 2000

Dec 2000

Dec 2000

Oct 2000

Oct 2000

Oct 2000

Dec 2000

Oct 2000

Nov 2000

Establish DesignJMProduct (DP) JM JM Establish Products and Models

Establish Design Items For Models

Explode Design Model

Establish Diversity (DV) PS LT

LT

Establish Diversity Levels

Generate Constraints

Check Constraints for A Pathing Point

PS

Generate and Resolve Order Activities

Run Autodesign

(16)

(13)

(24)

(26)

(19)

(19)

(20)

(13)

(17)

100%

42%

100%

89%

1%

100%

Oct 2000

Oct 2000

Dec 2000

Jan 2001

Inter-System Pathing (XP) PS

PS

PS

PS

PS

A-Z One Hop

A-Z 2 Hops

A-Z Multiple Hops

Establish Pathing

Comply with Diversity Constraints

(14)

(21)

(22)

(19)

(13)

100%

100%

89%

100%

Dec 2000

Dec 2000

Dec 2000

Dec 2000

Mar 2001

JM

Mar 2001

JM

Route through Bearer System

Protected Route

Autodesign Transport Shortfall

(33)

(20)

(16)

(25)

(8)

(14)

© 2009 Jim Highsmith KEY:

0% Feb 2001

Work In Progress

Feb 2001

Users (UM) JM

Apr 2001

Attention

Mar 2001

Apr 2001

System Selection (SS) PS

Establish Cost

PS

PS

Select Bearer System

Logical Bearer Systems (13)

(7)

(7)

100%

100%

100%

Nov 2000

Dec 2000

Dec 2000

JM

Satisfy Transport Item

Apr 2001

Apr 2001

(11)

Hubbing

Apr 2001

Dec 2000

Establish User

Protection

Physical Design

0%

1%

(4)

Intra-System PathingJM(SP) JM

JM

PS

JM

Generate and Track Site Events

(9)

Oct 2000

Establish Order (OM) JM JM

Capture Details

100%

Feb 2001

(15)

Apr 2001

C A

Establish CIX Trail Design

Establish Trails (TR) LT C

PS

A

Lookup CI Trail Design

Retest Trail Diversity

Save Trail Design

(18)

(10)

(15)

(23)

100%

100%

Dec 2000

Apr 2001

Full Completion

Apr 2001

Apr 2001

Apr 2001

Courtesy Progress Bar

Jeff DeLuca 60

The Declaration of InterDependence 

We increase return on investment by making continuous flow of value our focus.



We deliver reliable results by engaging customers in frequent interactions and shared ownership.



We expect uncertainty and manage for it through iterations, anticipation, and adaptation.



We unleash creativity and innovation by recognizing that individuals are the ultimate source of value, and creating an environment where they can make a difference.



We boost performance through group accountability for results and shared responsibility for team effectiveness.



We improve effectiveness and reliability through situational specific strategies, processes and practices. ©2005 David Anderson, Sanjiv Augustine, Christopher Avery, Alistair Cockburn, Mike Cohn, Doug DeCarlo, Donna Fitzgerald, Jim Highsmith, Ole Jepsen, Lowell Lindstrom, Todd Little, Kent McDonald, Pollyanna Pixton, Preston Smith and Robert Wysocki.

www.APLN.com

© 2009 Jim Highsmith

61

The Product Development Lifecycle

Product Initial Product Conceptualization Development

Continuing Product Development

Product Roadmap Product Backlog CAPABILITY 1

R 1.0

R 2.0

R 3.0



I1 I2 I3 … Releases

CAPABILITY 2

Iterations

© 2009 Jim Highsmith

Feature 1

Feature 2

Feature 3

Story 1 Story 1

Story 4 Story 4

Story 7 Story 7

Story 2 Story 2

Story 5 Story 5

Story 8 Story 8

Story 3 Story 3

Story 6 Story 6

Story 9 Story 9

Continuous Flow of Value

62

Delivering Continuous Value

Customer Satisfaction

Functionality User Experience

Total Value Works as specified Technical Quality

© 2009 Jim Highsmith

Adaptable

63

Schedule

Quality

Co ns tra in ts

Co st

Beyond Scope, Schedule, Cost

Scope

• Weak link to value • Limiting • Divides customers and dev • Inflexible • Short time horizon • Looks backward © 2009 Jim Highsmith

Value • Strong link to value • Expansive • Unites customers and dev • Flexible • Long time horizon • Looks forward 64

Strategic Questions  Why couldn’t we release this product today?  What is our value-cost ratio?  What is the product quality?  Are we within acceptable constraints?

© 2009 Jim Highsmith

65

Project Performance Goals  Value

• Meet or exceed customer value expectations • Value “chunks” are delivered in a release timebox  Quality

• All known defects are repaired • Defect levels through development are less than ½ industry average • Technical debt remains low  Constraints

• Scope: all planned major value-generating capabilities are delivered. Story scope varies by mutual agreement • Cost: actual costs are within agreed to limits (limits can change by mutual agreement during the project) • Schedule: actual schedule is within agreed to limits (limits can change by mutual agreement during the project) © 2009 Jim Highsmith

66

Releasable Product  Product vision  Project objectives  Business objectives  Capabilities/Features Project Data Sheet Project Name: CRM Development Project Start Date: 1/1/2010 Clients: Marketing Call Center Sales Accounting

 Timebox schedule

Project Leader: Braxton Quivera Product Manager: Roger Jones Executive Sponsor: Andrian Poledra Quality Objectives: Defects: 25% under industry average All Severity 1 & 2 defects fixed Comprehensive automated testing implemented Overall McCabe Cyclomatic Complexity < 10 Quality Assessment > 4 (reliability & adaptability)

Project Objective Statement: The objective is to build a web-based CRM application that includes sales tracking, order management, Sales Management, and Marketing. The system needs to be operational by 9/30/09 and cost less than $2.5 million.

Performance Guidelines: Call Center volume of 3,500 calls per day Worldwide web access <1/2 day training required

Business Objectives: Better customer service Reduce paperwork More accurate order processing Overall ROI > 14%

Architecture Guidelines: Integrate effectively with ERP system Maximize reusable components

Product Roadmap R 1.0

R 2.0

R 3.0



I1 I2 I3 … © 2009 Jim Highsmith

67

Strategic Agility Adapting to Change over Conforming to Plans Conform

Bu S t sin ra es te gy s

Value

Business Week,

The Case for Agile

Adapt

“There is no more Normal”

World View

March 23, 2009. Ex St ecu ra ti te on gy

of e r su ess a Me ucc S

Business Goals Organization

Product Backlog

Process

Product Management Team Product Roadmap

CAPABILITY 1

CAPABILITY 2

Feature 1

Feature 2

Feature 3

Story 4

Story 7

Release Management Team Release Plan

Feature Team Story 1 Story 1

Quality © 2009 Jim Highsmith

Constraints

Story 4

Story 7

Story 2

Story 5

Story 8

Story 2 Story 3

Story 5 Story 6

Story 8 Story 9

Story 3

Story 6

Story 9

Iteration Plan

Agile Values

68

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