scrum and the world crisis
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and the World Crisis
Rafael Sabbagh
Marcos Garrido
ScrumWhy Scrum is the best choice for
projects in times of crisis
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Speakers
• Rafael Sabbagh• Certified ScrumMaster (CSM)• Seven years of experience in IT Project Management and
Development Team Leadership• Computer Engineer - PUC-Rio• Master Student in Administration - PUC-Rio• MBA - PUC-Rio
• Marcos Garrido• Certified Scrum Product Owner (CSPO)• Six years of experience in IT Project Management and
Development Team Leadership • Information Technologist - PUC-Rio• Master Student in Administration - PUC-Rio• MBA - PUC-Rio
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Part I
The Crisis
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The world faces a crisis...USA banks cut credit, despite of help
ADDICTED TO RISK
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...and the crisis is severe!
• “It’s the worst crisis since 1929!”International Monetary Fund (IMF)
• “The developed countries will face a generalized recession.”Pamela Cox, vice-President of World Bank LatAm/Caribbean
• “It’s a really, really serious situation!”Henrique Meireles, President of Central Bank of Brazil
• “The crisis brings into question the very future of mankind!”Nicolas Sarkosy, President of France
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...and the crisis is severe!
Who believes the worst of the crisis is gone?
…and who believes the worst is still to come?
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The recovery will be difficult...
04/17/2009 –Brazil’s Valor Econômico Journal
•IMF: the world economy will take longer to beat recession than previously expected and recovery will be slower than is previous crisis
•The global extesion of the crisis contributes to extend the recession
•Emerging countries will suffer massive net capital outflows in the next years
04/22 and 04/23/2009 – Brazil’s Valor Econômico Journal
•IMF: Brazilian economy will shrink 1,3% in 2009
•IMF: World economy will shrink 1,3% in 2009 and may grow again in 2010
IMF: The Crisis will be long lasting and recovery will be slow
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And technlogy area suffers...
US$ 2.5bi losses
3.9 thousand job cuts
10% jobs cut
Stocks plunge
90% profit drop
3,000 job cuts
80% drop in sales
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And technlogy area suffers...
US$ 2.5bi losses
3.9 thousand job cuts
10% jobs cut
Stocks plunge
90% profit drop
3,000 job cuts
80% drop in sales
Dismissal and profit drop
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...as investment diminishes.
Global technology spending to drop nearly 4% in 2009
According to Gartner, worldwide companies are cutting their budget. Investment in hardware will drop 15%, while investment in software will increase 0.5%, as software may help companies save money.
Associated Press, 04/01/2009
Forrester: worldwide technology spending to drop 3% this year
According to Forrester, worldwide spending in IT products and services may drop 3% compared to 2008. Investment in software may remain stable, while expenses with communication equipment, hardware and IT services will drop this year.
IDG News Service/EUA, 01.14.2009
remain stable, while expenses with communication equipment, hardware and IT services will drop this year.
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The new reality is hard!
• Demand for projects shrinking
• Longer decision process
• Limited access to credit
• Margin pressure
• Financial problems with most clients
• Environment of uncertainty
• Constant changes
• Resource rationalization
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Part II
How to survive?
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How to survive?
The market demands that organizations change the way they
work in order to survive these turbulent times.
A truePARADIGM BREAK
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How to survive?
This new way of work shall:
Work well on rapidly changing environments, allowing frequent replanning
Focus on maximizing the client's ROI
Help reduce time-to-production or time-to-market
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How to survive?
This new way of work shall:
Avoid effort/time waste with subproducts and features that will never be used
Always deliver value to the client, even if the project needs to be halted
increase the communication and feedback between the project's stakeholders, so people will know what needs to be done and what's being done
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How to survive?
What framework for project development is focused on all
those issues?
Scrum
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How to survive?
Scrum is the best choice for projects in times of
crisis!
And the crisis is a great opportunity to spread
Scrum!
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Part III
Use Scrum
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Crisis characters...• An organization that provides service on projects must increase its competitiveness in order not to lose clients
• A director or manager needing to cut operational costs so that his organization may survive
• A client which needs to hire specific projects, internal or external ones, but needs to cut costs in order to keep them viable
Why should they choose Scrum?
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NO waste!
Non-agile methodologies defend that a big amount of documents must be generated so that a project may succeed
Project Charter
Preliminary Scope
Statement
Project Management
Plan
Change Requests
Progress Report
Performance Report
Acceptance Report
Project Closure Report
Detailed Schedule
Earned Value Analysis
Lessons Learned
Document
Sequence Diagrams
Components Diagram
Collaboration Diagram
State Diagrams
Use Cases Diagram
Packages Diagram
Activities Diagram
...what else?
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NO waste!
Non-agile methodologies defend that a big amount of documents must be generated so that a project may succeed
Project Charter
Preliminary Scope
Statement
Project Management
Plan
Change Requests
Progress Report
Performance Report
Acceptance Report
Project Closure Report
Detailed Schedule
Earned Value Analysis
Lessons Learned
Document
Sequence Diagrams
Components Diagram
Collaboration Diagram
State Diagrams
Use Cases Diagram
Packages Diagram
Activities Diagram
...what else?
Do the cost of production and maintenance of those documents pays?
How many of those documents will be kept current and how many will be
really useful for the project development?
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NO waste!
About 50% of the time is spent on requisites, architecture and specifications
on typical projects
Requirement Analysis Implementation Tests Maintenance
all that is done before building any functionality!
Specification / Architecture
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NO waste!
• 35% of requirements change
• 65% of functionalities are never or rarely used
About 50% of the time is spent on requisites, architecture and specifications
on typical projects
Requirement AnalysisSpecification / Architecture
Implementation Tests Maintenance
and gets worse...
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NO waste!
In times of crisis, is such
waste of time and effort acceptable?
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NO waste!
After all, the objective of a project is the product - not the documentation!
With Scrum, only the documentation strictly sufficient and necessary must be
utilized for the project
That is, adopt only what will be used.
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NO waste!
On Scrum, the Product Backlog is dynamic, for it must keep up with the client’s needs, and those change on the course of the project.
Then, whatever is delivered, will be used by the client.
The functionalities that will be made are the ones of most importance for the client before the beginning of every sprint.
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What if the project gets suspended?
Requirement AnalysisSpecification / Architecture
Implementation Tests Maintenance
In a non-agile project, what will the client get if the project gets suspended...
...here?
Inception Elaboration Construction Transition
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What if the project gets suspended?
Requirement AnalysisSpecification / Architecture
Implementation Tests Maintenance
In a non-agile project, what will the client get if the project gets suspended...
...or here?
Inception Elaboration Construction Transition
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What if the project gets suspended?
Requirement AnalysisSpecification / Architecture
Implementation Tests Maintenance
In a non-agile project, what will the client get if the project gets suspended...
...or even here?
Inception Elaboration Construction Transition
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What if the project gets suspended?
A project with Scrum works differently...
VALUE is delivered in every iteration!
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What if the project gets suspended?
A project with Scrum always produces an increment on the product which is potentially deliverable at the end of every sprint.
As such, if the project gets suspended at any moment, the client may utilize what has been generated on previous sprints, minimizing his risks.
In a non-agile project, chances are the client won’t be getting any return whatsoever on the investments made.
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What if the project gets suspended?
On an environment of uncertainties, minimizing the client’s risks becomes an important competitive
advantage.
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Better value first!
With non-agile methodologies he only gets value at the end of
the project.
Source: IBM website
Release
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Better value first!
With Scrum, the Product Owner must always update and reorder the Product Backlog, prioritizing the items with better value for the client.
Therefore, Scrum assures the items with better value gets delivered first, gerarating ROI frequently for the client.
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Better value first!
• In times of crisis, organizations must stay competitives. The Product Backlog priorization by better value allows the organization to:
• deliver results to its clients faster than the other players
• put in production functionalities that add better value to their businesses more quickly
• launch products and new versions of them more frequently on the market
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May changes come!
Big and frequent transformations happen at times of crisis
Changes in legislation and regulation
Changes in business rules
New business opportunities
Important players leave the market
Losses and unavailability of budget
Fusions/aquisitions and governmental interventions
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May changes come!
How do traditional methodologies deal with changes?
Change is undesirable!
Change is risky!
Change is expensive!
Change must be
negotiated!
As almost all the planning is made at the beginning of the project, there’s very
little room for changes!
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May changes come!
How do traditional methodologies deal with changes?
The limited scope contract will protect us! The client will want to change it all!
Every change must be negotiated with the client! Its impact must be quantified!
Every change must be revised, approved, planned, documented and managed!
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May changes come!
Change Management is a source of stress on projects that use non-agile
methodologies.
Stress on the long-term relationship with the client.
Daily stress for the develompemt team.
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May changes come!
How Scrum deals with change?
Scrum faces change as a natural part of the development process
Agile manifesto: “respond to changes over following a plan”
The Product Backlog is constantly updated by the Product Owner
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May changes come!
How Scrum deals with change?
Changes can be introduced on the product by the following sprint!
Such quick response to change becomes a great competitive advantage…
...making it possible to turn a crisis into opportunities!
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Those who don’t communicate...
On a typical waterfall project, when is the client encouraged to participate?
Requirement AnalysisSpecification / Architecture
Implementation MaintenanceTests
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Tests
The client perceives the project as a
big black box, which content will be revealed solely by the end of the process
Those who don’t communicate...
On a typical waterfall project, when is the client encouraged to participate?
Acceptance Tests
Specification / Architecture
Implementation MaintenanceRequirement Analysis
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Those who don’t communicate...
Therefore, once the project is finished, the result will hardly fulfill the client’s needs at that moment!
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Those who don’t communicate...
How Scrum deals with communication?
The Product Owner is always in touch with client to identify his
needs…
…and keep the Product Backlog constantly updated and
prioritized...
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Those who don’t communicate...
How Scrum deals with communication?
The client frequently gets new versions…
... and can give feedback more quickly to the team through the
Product Owner.
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Those who don’t communicate...
How Scrum deals with communication?
That way, the client feels involved with the whole process...
...sharing the responsibility over the project with the team...
... increasingly trusting the team and the process itself.
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Those who don’t communicate...
The relationship with the client stops being merely commercial to become:
Partnership Complicity Satisfaction Fidelity
A long term relationship is then developed with the client, which can often
overcome strong periods of crisis.
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Progress Report
Project Closure Report
Lessons Learned
Document
Sequence Diagrams
Component Diagram
Collaboration Diagram
Change Requests
Detailed Schedule
Those who don’t communicate...
With non-agile methodologies, how is project’s visibility promoted its stakeholders?
State Diagrams
Mainly through documentation, which.....takes a
lot of work to be made
...is not efficient
...is hard to update
...ends up being
dismissed
Project Charter
Prelminary Scope
Statement
Project Management
Plan
Acceptance Report
Earned Value Analysis
Package Diagram
Performance Reports
Activity DiagramsUse Cases
Diagram
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Those who don’t communicate...
With Scrum, project’s visibility is constantly promoted!
Daily meetings
KanbanWorking at
the same environment
Client’s involvement
Burndown charts
Frequent releases
Review meeting
Retros-pective
...are some examples.
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Those who don’t communicate...
Keeping communications open between the project’s stakeholders is the best way to assure that everyone knows what needs to
be done and what’s being done.
That generates increase of productivity, which is essential to surviving the crisis.
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Making the investment count
Unlike other methodologies, Scrum explicitly prioritizes the client’s return on investment (ROI).
One of the Product Owner’s main roles is to guarantee the client’s ROI, always aiming to maximize it by constantly updating the Product Backlog and prioritizing items with better value.
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What if you have to cut down the team?
With waterfall, roles inside the projects are very well defined
What happens in waterfall projects?
On an IT project, for example, the programmer programs, the tester tests…
The crisis hit the organiztion and it’s necessary to dismiss or realocate members of the team!
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What if you have to cut down the team?
If the designer leaves the project…...new windows will have no graphic design!
If the tester leaves the project...... it will go untested!
If the DBA leaves the project......who would take care of the database?
If the project manager leaves the project...... it will go ungoverned!
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What if you have to cut down the team?
If the designer leaves the project…...new windows will have no graphic design!
If the tester leaves the project...... it will go untested!
If the DBA leaves the project......who would take care of the database?
Therefore, the whole project’s success is
menaced!
If the project manager leaves the project...... it will go ungoverned!
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What if you have to cut down the team?
With Scrum, responsibility over delivery belongs to the whole team, no matter the roles
And what happens in projects with Scrum?
Although there is a natural specialization, people are stimulated to develop and utilize
their secondary abilities...
...and, in general, will do their best to compensate the lack of team members
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What if you have to cut down the team?
With Scrum, responsibility over delivery belongs to the whole team, no matter the roles
And what happens in projects with Scrum?
Although there is a natural specialization, people are stimulated to develop and utilize
their secondary abilities...
...and, in general, will do their best to compensate the lack of team members
So, even with less capacity, the team can
keep delivering
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What if you have to cut down the team?
Alert: dismissing team members must never be the first alternative
Shortening the team also diminishes its capacity to deliver value
Consequently, the client will be less pleased and will search for other suppliers...
...making the organization’s situation worse, creating a lose-lose vicious circle
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Part IV
Conclusions
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Conclusions
On this presentation, we showed that
Scrum is the best choice for projects in times of
crisis
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Conclusions
We offer several arguments so that people can induce
others or decide to opt for Scrum in their organizations
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Conclusions
Once the crisis is overcome, organizations that adopted Scrum will be closer to its
clients, focused on results, more compact, objective and
transparent.
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Conclusions
To these organizations, the crisis will have worked like a propelling spring, so that when it’s time for the market to recover, these organizations will launch
first.
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Part V
Bibliography
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Bibliography
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Contact us
http://www.scrumability.net
Rafael Sabbaghsabbagh@gmail.com
Marcos Garridomgarridobr@gmail.com
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