Does Agile address the 25 point Federal IT Reformation plan?

Does Agile Address the 25 Point Federal IT Reformation Plan?

Devin B. Hedge

[email protected]

Agile.devinhedge.com

Manoj Vadakkan

[email protected]

manoj.vadakkan.org

PMI WDC

PM in the AM

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Who we are – Devin Hedge

� 20+ years of experience in the IT Industry

� 14 years of experience in the Agile Community

� Certified Scrum Master (CSM)

� Project Management Professional (PMP)

� Agile Community Leader

� PMI Agile Community if Practice Webinars (http://agile.vc.pmi.org/)

� DC Lean Coffee (http://www.coactivate.org/projects/dc-lean-coffee/)

� Speaker & Volunteer

� Agile Leadership Network (www.aplndc.com)

� Agile DC (www.agiledc.org)

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Who we are – Manoj Vadakkan

� 20 years of experience in the IT Industry

� 10 years of experience in Project management

� Certified Scrum Master (CSM), Certified Scrum Professional (CSP)

� Project Management Professional (PMP)

� Agile Community Leader

� Agile Leadership Network (www.aplndc.com)

� Agile DC (www.agiledc.org)

� Speaker & Writer

� Articles on www.scrumalliance.org

� Speaker at Seattle Scrum Gathering, Amsterdam Scrum Gathering, MN Govt IT

Symposium

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Three points we are examining

� Align the Acquisition process with the technology cycle

� Deliver working features in short intervals

� Align the Budget Process with technology cycle

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ALIGN THE ACQUISITION PROCESS WITH THE TECHNOLOGY CYCLE

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Acquisition

� Problem

� Time lag between requirements definition and starting of

delivery is too long & technology usually changes before

the solution is delivered

� Federal CIO’s Approach?

� Align the Acquisition Process with the Technology Cycle

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Typical Stage Gate Methodology

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Today’s DoD Life Cycle

Planning Phase Build Phase

Milestone B

Initial

Operational

Capability

43 48

Analysis of

Alternatives

14 29

Economic

Analysis

40 5

MS C

TestDevelopment

91

Metrics calculated by OASD(NII) on 32 Major Automated Information Systems (MAIS)

Long Cycle-Time Driven by Processes

Developed to Counter a Cold

War Adversary In Industrial Age Society

Source: "Acquisition of Information Technology Trends Within The Department of Defense", September 10, 2009, Don Johnson

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Changing Landscape of Government IT

� Whereas in 1970, IT accounted for approx 20% of weapon system

functionality, by 2000 it accounted for as much as 80%

� Today it is reported IT can deliver 90% or more of functionality

Software is a consistent

and persistent thread

through all DoD system

acquisition programs …

If most IT systems in Government

started as only accounting

systems with little direct

capabilities tied to IT, what

percentage of mission capabilities

rely on them today?


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A Call for Change

� DoD Leadership Responsible for IT Hon John Grimes (Former ASD(NII)/DoD(CIO)

� “Hardware development processes ill-suited to IT acquisition”

� LTG Charles Croom (Former DISA Commander)� “I would change the acquisition process in how the DoD buys IT in a New York minute….”

� LTG Jeff Sorenson (Army CIO/G-6)� “How we can make it better…. Policy –Acquiring IT not like tanks”

� Defense Acquisition Performance Assessment (3/2006) The current system is focused on programs, not on improving and standardizing the processes of acquisition; it inhibits rather than promotes steady improvement in achieving program success

� GAO Assessment on “Information Technology: DOD’s Acquisition Policies and Guidance Need To Incorporate Additional Best Practices And Controls”(July/2004) “As you know, the way in which DOD has historically acquired information technology (IT) systems has been cited as a root cause of these systems failing to deliver promised capabilities and benefits on time and within budget…”


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Proposed New DoD IT Acquisition Process


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An Even More “Agile” Acquisition Process

JADIOC Release 2

Combined Acquisition Lifecycle

It 1 It 2 It 3 It 4 It 5 It 6 It 7 It 8 It 9

Maintenance

It 10 It 11 It 12

Release 3 Release 4

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Flipping the Iron Triangle in Agile Contracts

Fixed

Estimated

Plan-

Driven

Features

Cost Date Features

Cost Date

Value-Driven

($)

Source: “Inverting the Iron Triangle” by Mike Cottmeyer (http://www.leadingagile.com/2008/04/inverting-the-iron-triangle/ )

and “Agile Contracts” by Jesse Fewell

The plan creates

cost/schedule

estimates

The Vision Creates

feature estimates

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DELIVER WORKING FEATURES IN SHORT INTERVALS

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Deliver working features in short intervals

� Problem

� Delivering working functionality after several year and late

� Federal CIO’s Approach?� Deliver new working functionality to users at least every 12

months.

� Delivering functionality in small chunks frequently

� Capturing and incorporating feedback during that process

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How is it working today?

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How is it working today?

� Our projects tend to be multiple years long

� Our projects tend to not to deliver features for years

� In addition to be being late and over budget

� Our project tend to spend many months upfront to get the

“requirements” and “grand design”

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What can we do?

� What can we do to start delivering early?

� Start early

� Deliver in small chunks

� Start early?

� If we want to start early, we can’t wait for all the detail requirements written down

� Deliver in small chunks?

� If we want to deliver in small chunks, we need to prioritize the chunks

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Scrum Overview

Elaborate a subset of

the features

Start producing

Gather feedback from

the customerRelease to Production

How can we deliver working features in short intervals?

Start with the high-

level view of the

requirements

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Deliver working features in short intervals

� Practices suggested in the 25 point Implementation plan

� Deliver new working functionality to users at least every 12 months.

� Delivering capabilities in small chunks frequently

� Capturing and incorporating feedback during that process

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ALIGN THE BUDGET PROCESS WITH TECHNOLOGY CYCLE

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Align the Budget Process with technology cycle

� Problem

� The rapid pace of technological change does not match

well with the Federal government’s budget formulation and execution process

� Federal CIO’s Approach?� Align the Budget Process with the Technology Cycle

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Recommendations from the Federal CIO

� Work with Congress to develop IT budget models that align with

modular development

� Develop supporting materials and guidance for flexible IT budget

models

� Work with Congress to scale flexible IT budget models more broadly

� Work with Congress to consolidate commodity IT spending under

Agency CIO

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Look Familiar?

Different Sources of Projects OMB - 300

Federal CIO Initiative

CIO Initiative

LOB needs

Legislative

• The Budget cycle is built based on horizon of predictability

• The Budget categories reinforce long stage-gated development cycles

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Agile Budgeting Is Easier

� Because Scope is a Negotiation or Highest Value and Cost/Schedule

are fixed…

� Budgeting is just about how many resources will be funded for the current

fiscal year

� Most Enhancement/Maintenance contracts are already funded this way

� For Net New Capabilities Development or System Conversions, budget can be

fixed and incrementally funded each progress iteration

� When the Initial Operational Capability (IOC) is achieved, go/no go for

additional funding can be used to cut off spending on “frills” and that 40% of

functions that are RARELY or NEVER USED.

� Earned Value Is REAL and Tangible: Every iteration can be valuated

based on mission capability delivered, and either it was delivered or it

wasn’t. Period.

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Effect of Agile Budgeting on the IT Spending Cost Curve

-0.5

0

0.5

1

1.5

2

2.5

BY BY+1 BY+2 BY+3

Development

Enhancements

Maintenance

Log. (Enhancements)

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Beyond Budgeting Principles

Enabling a Continuous Adaptive Process

Beyond Budgeting: How Managers Can Break Free from the Annual Performance Trap by Jeremy Hope and Robin Frasier

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An Even More “Agile” Acquisition Process

JADIOC Release 2

Combined Acquisition Lifecycle

It 1 It 2 It 3 It 4 It 5 It 6 It 7 It 8 It 9

Maintenance

It 10 It 11 It 12

Release 3 Release 4

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Challenges Implementing Agile Budgeting

� Contracts, Contracts, Contracts

� Legislation, Regulation, Policy and Procedures

� Culture of “use it or lose it”

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What’s Required

� Congressional Support for Acquisition Regulation Changes

� Education of the Entire Federal Contracting Officer Labor Pool

� Education of the Entire Federal Contractor Community

� Changes to the Mission Needs Identification and Requirements

Development process

� And by extension… changes to the budgeting lifecycle and OMB planning

guidance

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QUESTIONS?

Devin B. Hedge

[email protected]


Manoj Vadakkan

[email protected]

manoj.vadakkan.org

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THANK YOU!

Manoj Vadakkan

[email protected]

manoj.vadakkan.org

Devin B. Hedge

[email protected]


Does Agile address the 25 point Federal IT Reformation plan?

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