Maximizing the Value of Agile

 

By Lynda Bourne

Everyone wants to “go agile.” But far too many organizations seem to think agile is simply a different way of doing project work that will miraculously achieve major efficiencies. 

For the approach to achieve its promise, the upper echelons of the organization need to become agile aware and adapt the way projects are initiated, funded and governed so that the project team can optimize their use of agile processes to create value. After all, one size does not fit every situation in an agile world.

I’d like to look at the differences in the management approach that are needed to maximize the value of agile in different situations.

One quick note: Different agile methodologies have different terminology and approaches. For this post, agile is defined as producing an output using a series of relatively short, time-boxed iterations, or sprints, where the work to be accomplished in each sprint is sized to be relatively consistent (e.g., can be accomplished by a team in two weeks), and what is to be done in each sprint is determined during the lead-up to that sprint.

There are three environments where the agile approach can add value:

1. Maintenance environments: In these efforts, the application of agile concepts without the need for project management overheads can be very beneficial. Techniques including small focused teams, short sprints, backlog prioritization, and management. Burn down reporting can show how much maintenance work is facing the teams, the team efficiencies, and the overall backlog trend.

Agile does not need to be embedded in a program or project to be effective. In this situation, the finance and resources (i.e., the agile teams) are the fixed constraints; the organization’s budgeting procedure funds a predetermined level of staffing on an annual basis. The management variable is the amount of work accomplished each month and deals with new and emerging maintenance issues and minor enhancements in a timely manner based on some effective form of prioritization.

2. Contractual or legal obligations: In projects like these, the scope of work is fixed (or at least subject to formal change control) and the management variables are efficiency and cost consequences. In this environment, with adaptation, a whole range of standard project management processes such as earned value can be applied to the oversight of project work and used for management reporting and project control. The agile teams still function in the traditional agile way, sizing the amount of work included in each sprint, producing usable outputs in short intervals and progressively building toward the completed project. The management challenge is achieving the specified scope within the approved time and cost parameters.

3. Projects that lack a defined scope: In these projects, the client often has a vision of what the outcome should achieve, frequently framed in terms of business improvements. In this situation, the project is on a journey to optimize the delivery of as much of the vision as is sensible. The management variables for this type of project include scope, cost and time.

Decisions will have to be made about which parameters are more important—either as an overall consideration or on an element-by-element view of the various components within the project.

a. In some projects, time to market is a key factor, possibly with scope as the second most important factor. And, to a large extent, how much it costs to achieve the necessary scope within the deadline will be a consequence rather than the control. The primary management challenge is delivering the scope required to implement the vision within the time constraint as efficiently as possible.

b. Other projects have the quality of the vision as their primary drive, and the management challenge is to achieve all of the vision for the optimum time and cost outcomes. Decisions on how much and how long can vary depending on progress toward achieving the vision. Obviously, there must be some cost and time constraints. And a key conversation with the client has to be around the value proposition of still achieving their vision based on cost information to date, with the possibility of adapting the vision based on learned experience as the project proceeds.

c. Lastly, in some projects where the available funds are limited, the challenge for management is to achieve as much of the vision as possible within the defined funding limit, frequently with time as an additional limitation imposed by the funding cycle or the market. To maximize value, the client needs to be fully engaged in the decision-making process around scope inclusions, deferrals, and exclusions.

Once you understand the agile framework you’re operating within, the real challenge is making sure your clients and other senior stakeholders also understand that an agile approach to project delivery requires very different governance and decision-making processes. Organizational agility starts at the top by setting the right challenges for the agile teams within the right funding model. The next step is to use appropriate assurance functions to make sure agile teams are delivering what’s needed to create value—old-fashioned budgeting processes are unlikely to be appropriate.

How do you go about engaging your senior stakeholders in this type of conversation?