Professional Documents
Culture Documents
Agile Project
Management for Business
Transformation Success
Paul Paquette and Milan Frankl
Abstract
This book is intended to provide project management office (PMO)
executives practical information to promote enterprise Agile for b usiness
value compatibility within their organization. The primary benefit of
this book is to promote a sense of common purpose and collaboration
between the project delivery and the organization.
Agile project delivery methods are adaptable to the emergence of
unknown requirements identified in the later part of the project d
elivery
lifecycle. Transparency is improved through the Agile characteristics of
continuous feedback loops, daily stand-up meetings, demonstrations,
retrospectives, prototypes, and project management tools such as K
anban
boards, burn-down charts, and pie chart dashboards. The key success
factor is direct business participation and collaboration to ensure that a
business focus determines the output.
Agile project management delivers business value rather than following a plan by using prioritized backlogs to ensure early and consistent
delivery of features and products from the customer perspective without
the overhead of low-value artifacts and bureaucracy.
The Agile Advantage encourages technology deployment as a paradigm shift rather than a planned incremental improvement to existing
systems and processes. Agile promotes innovation and creates synergies
through a business focus viewing technology deployments as a catalyst
for change rather than the final objective. Technology investments implemented through Agile processes result in improved market leadership,
organizational alignment, and resource efficiency delivering competitive
advantage.
Keywords
Agile method, business process, project management, prototyping,
resource optimization
Contents
Acknowledgmentsix
Introductionxi
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Chapter 11
Agile Concepts1
Agile Change Management, an Overview13
Agile Background21
Agile Communication31
Agile Teamwork Functionality43
Governance and Enterprise Agile49
Agile Processes57
Agile Market Leadership65
Agile Organizational Alignment and Support81
Agile Resource Optimization91
Conclusion105
Agile Glossary107
Bibliography109
Index115
Acknowledgments
I am thankful for the participation of my co-author and mentor,
Dr. Milan Frankl, for believing in the book concept and whose g enerous
contributions made this book possible. I thank my wife Alexandra for
her input and assistance with converting my raw thoughts into coherent
prose. I am particularly appreciative of my children Sofia and Samuel for
enduring my late nights and delaying family activities throughout the
writing process. I appreciate the input from peer project managers who
completed my LinkedIn user group surveys, and whose feedback was
instrumental in developing and validating literature review by providing
real-world and current industry data. Finally, I acknowledge all the leaders
and practitioners who aspire to improve the project management body of
knowledge, pioneer new uses of Agile processes, and challenge the status
quo and promote their organizations through effective action and success.
Introduction
Big data, advanced analytics, virtualization, cloud, e-commerce, mobile,
enterprise resource planning, and other disruptive technologies challenge
organizations to adapt to the accelerated changes occurring in business
environments today. Business Transformation (BT) projects leverage
these technologies to create change within the organization to improve
performance and competitive advantage. BT projects are particularly
challenging because they demand significant changes in both technical
and business domains such as business processes, and engagement with
clients or suppliers. Furthermore, BT technology projects are essential to
the competitive survival and new strategic direction of the organization
and, therefore, must not fail.
Agile project methods provide a new approach addressing the limitations of traditional Waterfall projects.
The primary data research is unique because it promotes assessing,
ranking, and analyzing typical Agile attributes from a business perspective,
which include market leadership, organizational alignment, and resource
efficiency. Agile project management techniques improve the business
value and performance promise of these technologies and are superior to
the traditional project-centric contractual focus.
Agile encourages successful BT technology deployment as a paradigm
shift rather than a planned incremental system and process improvement.
Agile promotes innovation and creates synergies through a business
focus viewing technology deployments as a catalyst for change rather
than the final objective. Agile values and promotes communication both
horizontally and vertically throughout the organization. Agile enhances
innovation through high-performance multidisciplinary teams and
ensures business value by direct client involvement throughout the entire
delivery process.
Enhanced communication, teamwork, collaboration, and organizational change improve the adoption of higher business value products during the preliminary stages and throughout the project lifecycle.
xii INTRODUCTION
CHAPTER 1
Agile Concepts
Introduction
In Chapter 1 we introduce Agile concepts, including challenges addressed
by Agile, and process improvements expected. Furthermore, we compare
the Agile project management method to that of the conventional project management one. Finally, we discuss Agile implications on business
involvement and enterprise support.
We use the term Agile throughout this book to refer the Agile Project
Management or Agile Project Delivery as project-related work based on
fundamental principles as defined by the Agile Manifesto (Beck et al.
2001).
Agile methods are adopted primarily from Scrum and Extreme
Programming (XP) practices, philosophies, and principles upon which
they were founded.
The term Waterfall refers to the common and more traditional project
delivery methods frequently used for deploying systems integration projects outside the application development community.
In contrast to Agile, Waterfall demands collection of all requirements,
the contractual alignment, and satisfaction of deliverables against a plan
within the constraints of time, scope, and schedule through a linear set of
sequential activities. These activities are analysis, design, implementation,
testing, and evaluation. They are completed before the next activity is
initiated and graphically represented in a waterfall pattern.
The term Business Transformation (BT) is used throughout this book to
summarize any critical enterprise strategic technology projects intended
to enhance the organizations competitive advantage within the business
environment operated by the firm.
Agile and Waterfall processes and methods are compared for suitability with BT projects from an organizational and business perspective.
Using this comparison we present the traditional Agile context as a software development tool by extending application into an enterprise (large)
context.
Traditional Waterfall project management processes fail to deliver
anticipated results because the requirements are not fully understood at
the beginning of the project. The formal project change record (PCR)
process is a method organizations use to control scope creep by formalizing a management review process to accept or reject changes in the estimated project baseline. However, this process is too cumbersome to adapt
to changing business conditions and evolving requirements through the
execution phase. As a result, business users become dissatisfied by the
bureaucracy.
BT software projects are particularly challenging because the technology is new and demands customization to comply with the clients
specific requirements. BT projects disrupt the status quo and have implementation complexity within an environment of turmoil, distress, and
change. To accommodate BT projects unique characteristics, an iterative
project method with feedback loops and increased information flow is
required instead of the traditional linear and sequential waterfall method.
A holistic organizational view including technical and business elements
is essential to deliver the business results in which project investment was
intended to satisfy.
Complex technology integration projects are a means for organizations to improve business processes frequently characterized as multimillion dollar investments while experiencing a 60 percent delivery failure
rate (Hasibuan and Dantes 2012), which is considered to be very high.
Enterprise system integration and transformation projects are regarded
as unique and technically very challenging, combining evolving sophisticated technologies. They require new business processes across the entire
organization. These projects combine innovative technologies to change
the way executives perceive their customers and view their data and business environment. In addition, they extend pervasively throughout the
organization as managers and employees interact more effectively with
customers. Although the projects are considered high-risk, expensive,
AGILE CONCEPTS
AGILE CONCEPTS
communication, the Agile method promotes organizational alignment and resource optimization from empowered individuals participating in high-performance teams made up of diversified generalists.
3. In the third section, we explore the high-performance team and the
effects of teamwork and the inherent empowerment of the individual as a mean to improve innovation and motivation as a competitive
advantage.
4. In the fourth part of the background summary, Agile value proposition from the business perspective is discussed. Agile promotes
market leadership through change management within the organization. We review the importance of integrating business processes and
effective functional changes to the firm over the limited traditional
project-centric delivery as a project delivery success criteria. Viewing
project delivery from an expanded business value context is important for strategic BT projects because they are fundamental to the success of the organization. Delivering the wrong technology because of
a systemically flawed delivery system will result in corrective action.
5. In the final section, which discusses governance and Enterprise Agile,
we explore traditional bias and Agile misconceptions expressed by
PMO executives within the enterprise.
AGILE CONCEPTS
Business intelligence (BI) is the set of techniques and tools for the transformation of raw data into meaningful and useful information for business analysis purposes. BI technologies are capable of handling large amounts of unstructured data
to help identify, develop, and otherwise create new strategic business opportunities. The goal of BI is to allow for the easy interpretation of these large volumes of
data. Identifying new opportunities and implementing an effective strategy based
on insights can provide businesses with a competitive market advantage and
long-term stability (Rud 2009).
2
AGILE CONCEPTS
10
Agile delivery improves delivery elasticity and sensitivity to technology and social change within the strategic PDLC.
To survive and thrive, organizations must keep up with a dynamic
digital market place. Business must adapt to new electronic transactions
as a result of continuous evolving changes in electronics. Successful organizations are exploiting new markets through digital commerce. New
customer engagement channels have evolved from supplying to B2B
(business to business) transactions to embracing business transactions
supporting customers B2C (business to the customer), and B2G (business to government) transactions. Digital BT transformation projects are
a success factor. Organizations that use Agile processes have improved
sensitivity to changing environments resulting in improving the business success rates within the system implementation lifecycle. The results
are ERP and strategic projects delivering an improved value proposition
extending beyond traditional technology projects because they include
re-engineering business processes.
Agile processes and methods promote communication throughout
the entire project delivery including the implementation stage, which
are essential elements in determining project success. Project implementation processes and communications are primary critical success factors
for improving customer satisfaction. Business process re-engineering has
as much as 44.2 percent role in determining implementation success as
strategic projects are becoming increasingly more complex (Hasibuan
and Dantes 2012; Keith, Demirkan, and Goul 2013). Communication
accounts for 66.4 percent of ERP critical success factor in predicting
customer project delivery satisfaction (Hasibuan and Dantes 2012).
Infrastructure project managers and team members promote the implementation stage as the most important factor for project delivery success.
This result is consistent with Agile processes that emphasize the iterative delivery rather than focusing upfront on requirement, gathering,
and planning. Agile implementation promotes a service-oriented project delivery model to improve business value, project performance, and
stakeholder communication (as promoted by Agile processes) as the most
critical factor in successful delivery.
AGILE CONCEPTS
11
Summary
In this first chapter, we have introduced some of the major Agile processes
and explored how these can improve the business value by promoting
market leadership, organizational alignment, and resource efficiency.
Agile addresses the new challenges facing organizations as project
executives and their PMO re-evaluate technology delivery and systems
integration processes. Agile delivers results and engages the business
throughout the entire PDLC when compared to conventional methods.
Business focus leads to improved project outcomes from a business perspective rather than merely satisfying minimal contractual transactional
arrangement from a conventional task and content-centric perspective.
Finally, Agile supports enterprise technology and business focus when
used with an evolutionary architecture-driven approach.
In Chapter 2, we cover Agile philosophys enhanced business change
management perspective.
We discuss Agile elaborative requirement discovery and business
change management improvements leading to better organizational acceptance, accelerated technology integration, and superior process-driven
changes necessary to deliver BT projects.
Index
Agile business involvement, 8
Agile elaborative requirement
discovery advantage, 15
Agile emergence advantage, 52
Agile enterprise support, 910. See
also Enterprise Agile
Agile governance, 5152
Agile iterative approach, 7778
Agile iterative delivery advantage, 16
Agile learning organization advantage,
14
Agile Manifesto principles, 2224
Agile planning approach, 91
Agile processes
Disciplined Agile Delivery, 60
Extreme Programming, 58
improvements, 8
limitations, 6163
Rational Unified Process, 5960
resource optimization, 92
Scrum, 5758
Agile Project Management
vs. conventional technology
projects, 8
guiding method of, 45
Agile teamwork advantage, 3, 44. See
also Teamwork functionality
Agile trust factor, 34
Backlog Grooming, 46, 84
Balanced scorecard (BSC), 6
BDUF. See Big design up front
Beta-enhancement and prototyping
principles, 98
BI. See Business intelligence
Big design up front (BDUF), 27
BSC. See Balanced scorecard
BT project implementations
portfolio management, 7980
project delivery, 7879
project scheduling, 79
Burn down chart, 73
Business co-location, 62
Business intelligence (BI), 78, 5354
Business participation, 68
Cadence, 63
Capability Maturity Model (CMM),
62
Card, Conversations, Confirmation
(3 Cs process)
description, 7475
user-stories processes advantages,
75
user stories vs. case scenarios, 7576
Change management
BT project delivery improvement,
1819
cost risk, 1617
description, 1415
requirements definition, 1516
strategic delivery improvement,
1718
tactical advantages, 15
technology integration
improvement, 18
triple bottom line, 14
CMM. See Capability Maturity
Model
Co-location, 94
Communication processes
business decision-making, 3840
effective communication, 3132
efficiency promotion, 3638
high-context communication,
3435
horizontal communication, 3536,
39
innovate and collaborate, 3637
low-context communication, 35
performance improvement, 3334
product quality improvement, 40
project delivery improvement,
4041
116 Index
strategic advantage, 38
as tool, 32
vertical communication, 39
Complex technology integration
projects, 2
Conventional technology projects, 8
DAD. See Disciplined Agile Delivery
Delivery cadence, 53
Disaster recovery plan (DRP), 89
Disciplined Agile Delivery (DAD), 60
DRP. See Disaster recovery plan
Effective communication, 3132
Enterprise Agile
business intelligence, 5354
business transformation, 4950
organizational change, 51
project delivery, 50
project shock, 51
technological change, 5253
Enterprise operational change
management process, 85
Extreme Programming, 58
Gold plating, 100
High-context communication, 3435
Horizontal communication, 3536,
39
Innovation, 6566
Iteration testing, 86
JIT. See Just-in-time
Just-in-time (JIT), 58
Kanban, 5960, 99
Low-context communication, 35
Management product review and
governance, 87
Market leadership
3 Cs process, 7476
business participation, 68
delivery practices, 71
Index 117
Story points, 63
Strengths, weaknesses, opportunities,
and threats (SWOT), 21
Subject-matter expert (SME), 7273
Sustainable pace technique, 88
SWOT. See Strengths, weaknesses,
opportunities, and threats
TDD. See Test-Driven Development
Teamwork functionality
employee engagement and
productivity, 4447
joint problem solving, 4344
team performance, 44
Test-Driven Development (TDD),
58, 101
Testing requirements, 101102
Time-boxing, 63, 7677, 9899
Triple bottom line, 14
UCM. See Use case method
Use case method (UCM), 7576
User feedback, 86
User involvement, 6768
User stories, 63
vs. case scenarios, 7576
Value chain, 9
Velocity, 63
Vertical communication, 39
War room, 9192
Waterfall project delivery
advantages, 29
Agile description, 2426
business requirements
understanding, 2728
disadvantages, 29
environment description, 2627
feedback mechanism, 66
strengths, 28
weaknesses, 2829
Waterfall project planning, 67
WIP. See Work in progress
Work in progress (WIP), 5960