Large Scale Agile and Scrum vs. Waterfall: Agile is 6X More Successful, 1/4 the Cost, and 10X Faster Payback!

A pair of recent findings from the Standish Group confirm the astonishing success and cost savings of Agile approaches over waterfall.

In the “Chaos Report 2015“, Standish found that large Agile projects are 6X more successful than waterfall projects.  While Standish doesn’t get specific on what is a “large” project, it’s worth nothing that “Large” is the biggest size category for projects and their data encompasses over 10,000 software projects.

In a new report called  The Money Pit, The Standish Group studied two very similar large software projects, done at two very similarly sized, mature companies.  One project was done with Agile, and one with Waterfall.  The astounding results they found:

  • The Agile project was 4X cheaper than the cost of the equivalent waterfall project, AND
  • The Agile project was “delivered with high user satisfaction,” while the waterfall project “had a watered-down critical function and the high-value feature was not part of the delivered application.”, AND
  • The Agile Project’s payback was “At the end of two years the application costs were fully paid back and the users were highly proficient” while the waterfall organization estimated the system payback would “break even in 20 years”
Agile6X
* Note that the activities depicted on the graph were done sequentially via waterfall, but iteratively via Agile.

It should also be noted that a survey from Forrester Research showed that of all companies attempting Agile, some 90% are using Scrum.

Just to re-iterate — 6X more successful, cost payback 10X faster, and 4X cheaper.  How is that for Better, Faster, Cheaper?

At AgileSoftwareTraining.com, we provide coaching, consulting, and training solutions to help your company achieve the astounding success of Agile and Scrum approaches.  Contact us today for a free consultation.

So, if you’re an organization that is doing waterfall or struggling with Agile, what are you waiting for?  The research is overwhelmingly in favor of Agile and Scrum approaches.  Get on the road to millions more in profit and cost savings.  No seriously, what are you waiting for?

The New New Product Owner: The Product Visionary

In my previous post, I discussed the New New Product Owner as The Product Marketplace expert.  In this post, we explore the “Product Visionary” focus area.

The Product Owner is the chief product visionary. The PO should be able to clearly articulate the product vision to the Scrum Team and key stakeholders, and how that vision aims to maximize the value of the product and of the work the Scrum Team performs.
POFocusAreas_NewNewPOThe PO should communicate and re-iterate this vision early and often, reminding all involved of how to help maximize value.

For a high quality class that focuses exclusively on the Product Owner role(the course is also great for key stakeholders!), see our Professional Scrum Product Owner class and contact us if you’re interested in one.

Utilizing the underlying empirical product planning features of Scrum, the PO should also be ready to make strategic pivots for the product vision whenever there are significant changes in how value can or likely be captured. This vision is brought to life in a more tactical way, via the Product Backlog and iterating towards that vision every Sprint.

In my next post, we’ll discuss the New New Product Owner as the Release Decision Maker.

The New New Product Owner: The Product Marketplace Expert

In my previous post, I discussed the 7 focus areas for the New New Product Owner, as well as the “Product Value Maximizer” focus area.  In this post, we explore the “Product Marketplace Expert” focus area.

The New New Product Owner should be expertly aware of the marketplace for the product. They should constantly be gathering and re-gathering information and data regarding the marketplace, so that the product value is maximized. Getting out of touch with the marketplace can be a recipe for product disaster. Note here that the New New Product Owner may or may not be the one doing the legwork of gathering the marketplace data(they might delegate), but they should certainly be aware of the market research.  Often times the New New Product Owner will delegate to others or to automation to aid them in obtaining the market data.
POFocusAreas_NewNewPONote that your market might be internal (IT software) or external (Saas, Consumer software).  Either way, it’s important to gather the marketplace data.

With IT software, the market data will often include how the LOB(Line of Business) uses the software, as well as understanding the business function that the LOB executes on.  Heavy interaction with those in the LOB will usually yield this data, or again, the New New Product Owner might delegate or rely on someone in the LOB to supply her with that data.  A good starting point for gathering this data is understanding who your key stakeholders are.

Additionally, the New New Product Owner should never be afraid to change the vision or tactics based on marketplace changes. Being able to strategically re-pivot and capture value in new and different ways is one of the key benefits of an Agile mindset.

For a high quality class that focuses exclusively on the Product Owner role(the course is also great for key stakeholders!), see our Professional Scrum Product Owner class and contact us if you’re interested in one.

The New New Product Owner communicates all of this marketplace knowledge to the Scrum Team through daily ad hoc interactions as well as Product Backlog Management, Product Backlog Refinement, and in Sprint Reviews.

Knowing the market for your product can help you fulfill another key focus area, being The Product Visionary.

The New New Product Owner: The Product Value Maximizer in Scrum.

Preface:  In the last 4 years, the Scrum Guide has had two very significant updates, including updates to the Product Owner role that have far reaching implications. In this article and the series that follows, I attempt to describe “The New New Product Owner” role in Scrum.

In a series of upcoming articles, I will detail the different focus areas that the modern Product Owner needs to concentrate on in order to fulfill their duties on a Scrum team.
POFocusAreas_NewNewPOThe New New Product Owner understands that she will likely need to execute these activities at different times, and that she might need to delegate to others in order to effectively produce software that maximizes ROI for the software development effort.

The first and most important focus area is for the Product Owner to be the “Product Value Maximizer.”  There are lots of way to do this, but 3 key steps are involved:

  1. Order the Product Backlog by (estimated) value.
  2. Work with the Development team to get small increments of value to market quickly, for feedback.  Release to market = in production, available to end users.
  3. Rapidly assess value delivery feedback from the market, and then start over again at step #1.

These three steps will ensure that the New New Product Owner delivers “the right thing.”

Note that your market might be internal (IT software) or external (Saas, Consumer software).  Either way, it’s important to get features into production quickly, and to assess whether we have “hit the target” with respect to value… or not.  This quick release to production, every few weeks, is a key aspect of Agile software development.

If you haven’t already signed up for our blog, be sure and sign up (upper left hand corner) so you will get the future articles on this topic!

In future articles, I will detail the remaining six focus areas for the New New Product Owner:

For a high quality class that focuses exclusively on the Product Owner role(send your business stakeholders too!), see our Professional Scrum Product Owner class and contact us if you’re interested in one.  We teach all over the USA.

User Stories – Focusing on Conversations instead of Writing – Gojko Adzic’s New User Story Book

In my recent article on telling user stories instead of writing user stories, I mentioned that many Scrum Teams focus way too much on documentation and way too little on good collaborations.

More support for this concept comes from the first chapter in Gojko Adzic’s new User Story book, Fifty Quick Ideas to Improve your User Stories.

User stories imply a completely different model: requirements by collaboration. Hand-overs are replaced by frequent involvement and discussions…. If requirements are just written down and handed over, this discussion does not happen. Even when such documents are called stories, by the time a team receives them, all the important decisions have already been made…. Try telling stories instead of writing down details. Use physical story cards, electronic ticketing systems and backlog management tools just as reminders for conversations…Engage business stakeholders and delivery team members in a discussion, look at a story from different perspectives and explore options. That’s the way to unlock the real benefits of working with user stories.

Gojko has been nice enough to publish the “Tell stories, don’t write them” chapter available completely free here!  It is also important to note, that this chapter is tip #1 in his book, as it really sets the stage for the best use of the User Story practice.

The User Story practice was always intended as a very close, verbal collaboration between the Dev Team and the PO/Customer. In modern times, you can achieve this very easily with good Product Backlog Refinement practices.

Anyway, it’s totally worth another five minutes of your time to read Gojko’s free chapter, and be sure to share it with your teams and organizations too!

To maximize your Scrum and User Stories practice, bring us into your company to deliver coaching or our User Stories Class.

In Scrum, Who are the Key Stakeholders that Should be Attending Every Sprint Review?

The Scrum Guide requires that the Product Owner ensure that “key stakeholders” attend the Scrum Sprint Review, but who are these “key stakeholders”?

According to the Scrum Glossary, a stakeholder is “a person external to the Scrum Team with a specific interest in and knowledge of a product that is required for incremental discovery. Represented by the Product Owner and actively engaged with the Scrum Team at Sprint Review.”

Typically, they fall into one of three broad categories:

  • The Users – The human people who actually use^1 the software product under development, to help them or the organization make more money or save money.

    • This could include a human compliance officer within a company, who is responsible for making sure that the software systems comply with government or financial regulations.
    • This could include the humans who support the operations or production support for the product.
    • Upstream/Downstream systems could also be considered “users” so long as we don’t forget the human end users of those systems. Don’t forget the humans!
      • Downstream reports are a good example of a downstream system” where you should definitely not forget the “human end user”, but there are other examples.
  • The External Customers (doesn’t exist for internal products — see below) – The people responsible for paying to use the software product.

    • Only applies to externally sold or externally developed products
      • By external here, we mean, outside the company doing the development.
    • In a “software development for hire” arrangement(externally developed product), the client who engages the team would be the External Customer.
    • Sometimes the External Customers and Users are the same people — take TurboTax as an example, or a software product whose human users also make the decision to purchase said product.
  • The Internal Customers – The people responsible for making the funding decisions for the software product development effort.

    • This is usually someone in Product Management(usually for external products) or someone in management in the Line of Business(usually for internal products) that is supported by the software product.
    • It could also be the CEO or CIO or similar roles at times.

There are probably exceptions to the above three broad categories. Also, don’t assume that the Product Owner can only consider “key stakeholders” as sources for requirements or good ideas. The Product Owner can work with anyone any time (possibly during Product Backlog Refinement and other activities) who can supply good ideas to capture more value for the product. Our discussion of key stakeholders here is just to understand how the “stakeholder” role in the Scrum Guide can be interpreted.

The key stakeholders are the people that receive a direct financial^2 benefit(helps them or the organization make more money or save money) from using the software.

One could also think of the management of the development organization as a stakeholder who should attend Sprint Reviews, certainly in replacement of any and all status reports and any and all other progress reporting for the Scrum Teams. If any Dev management asks for these things, the answer should almost always be something like “In Scrum, that information is communicated in Sprint Reviews, so let me get you on the invite list for that.” For Scrum “key stakeholder” purposes though, I’m not sure I’d call Dev management “key stakeholders.” or think of them as being “required” to be present(unless of course, they request status/progress reports).

In some cases, you’ll have so many “users” that it is not possible to have all of them in your Sprint Reviews. In those cases, try to get a representative sample of human users into your Sprint reviews(some companies pay for this kind of feedback from human users), and also utilize other feedback gathering mechanisms. (See “One PO Can Do it All!” in this product ownership article.)

Parting Words

I’m sure that there are exceptions to the above three broad categories, so feel free to let me know if you can think of some noteworthy ones, or maybe see if you can effectively place them under one of the three broad categories above. Talk to the Product Owner and make sure that they are ensuring that key stakeholders are are attending your Sprint Reviews, as their input is absolutely vital to the success of the product.

For a high quality class that focuses exclusively on the Product Owner role(the course is also great for key stakeholders!), see our Professional Scrum Product Owner class and contact us if you’re interested in one.

———-

Notes:

^1 Rare exception — note that sometimes a software development team acts as a “Production Support Engineer” user, but this should only apply to features actually in the product(support logging might be a good example) that help with production support. However, the modeling of a human user who is on the software development team should not become a guise for so-called “technical stories” or technical practices. That’s not a real “user”.

^2 Rare exception — If the organization developing the software is a non profit, government entity, or charity, then instead of “financial benefit” or “money”, we might say “the societal benefit” instead.

Great Article from Scrum Co-Creator Ken Schwaber on “Agile Value”

Ken Schwaber’s written a great article on Agile Value .  He talks about how value can be defined in Agile, and the article also covers the difference between traditional project management metrics and Agile project measurements.

On a related note, see Common Project Management Metrics Doom IT Departments to Failure

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