Risikominimering I IKT-prosjekter - Difi · “Risikominimering I IKT-prosjekter ... and good...

“Risikominimering I IKT-prosjekter” - experiences from the Danish Government

Christian Vindinge Rasmussen, Senior Advisor,

Agency for Public Management and eGovernment (Difi), Norway

IKT anskaffelser 16th of January 2014

About me

@vindinge

CSM, CSPO, CSP, Six Sigma Green Belt, PRINCE2

Agency for Public Management & eGovernment, Norway

Ministry of Finance, Denmark

Ministry of Science, Tech. & Innovation, Denmark

LEGO

Software Innovation

External ICT project auditor for European Commission since

2009

Agile coach & trainer – SCRUM, Kanban, Six Sigma since

2008

14/01/14 Direktoratet for forvaltning og IKT

Agenda and topics for today

Why are we here?

How do we run ICT projects today?

How could we run our projects to minimize risk?

What pitfalls are there with all this?


So what is the problem…?

The world is getting smaller every day…

…more competition on resources.

…more competition on prices.

…more competition on quality.

And we need to excel at reducing our risks to

improve our end product, and create better

business value!


In 2007 the Danish Ministry of Finance

created a rapport with Gartner…

Between 60 – 70% of all public IT-projects in

Danmark failed due to budget- or time- slippage and

wrong estimates

The projects that runs well contains up to 60% not

needed functionality, when done – typically

caused by wrong requirement specs and changed

needs

All changes to the projects are extremely

expensive, the further you are in the development


So we needed to identify, what risks caused

all this:

Lack of suitable communication

Lack of visibility

Cost of change

Dysfunctionel project methodology

Not clearly identified and optimized processes

Amount of risks too high in general for healthy

projects!


…the old way of doing things:

ZERO portfolio management

PRINCE2 was the only ”tool” for project managers in their execution of the projects

Subcontractors managed 100% how repporting, test and delivery should be made!

As projects progressed it became more and more difficult to talk with the subcontractor about changes or wishes for the system!

Change Management was a daily rutine!

Too much communication through mails and seldom through meetings, skype etc.


Direktoratet for forvaltning og IKT

Waterfall model example

• Handover between steps

• Surprise at the end – (Tah-dah)

Requirements

Design

Implementation

Testing

Installation

Acceptance

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Over the Wall mentality

14/01/14

We had (and wanted) to do something…


- cheaper

- better

- faster

- smarter!

(Words by Peter Corbett, iStrategylabs)

14/01/14

Our top priority…

Direktoratet for forvaltning og IKT 11

To satisfy the customer or stakeholders through

early and continuous delivery of valuable

software

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12

Principles I

Our highest priority is to satisfy the customer or

stakeholder through early and continuous

delivery of valuable software

Welcome changing requirements, even late in

development. Processes should harness

change for the customer's competitive

advantage

Deliver working software frequently, from a

couple of weeks to acouple of months, with a

preference to the shorter timescale

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13

Principles II Business people and developers must work together daily throughout the project

Build projects around motivated individuals. Give them the environment and support they need, and trust them to get the job done

The most efficient and effective method of conveying information to and within a development team is face-to-face conversation

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14

Principles III

Working software is the primary measure of

progress

Processes promote sustainable development.

The sponsors, developers, and users should be

able to maintain a constant pace indefinitely

Continuous attention to technical excellence

and good design enhances agility

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15

Principles IV

Simplicity - the art of maximizing the amount of

work not done - is essential

The best architectures, requirements, and

designs emerge from self-organizing teams

At regular intervals, the team reflects on how to

become more effective, then tunes and adjusts

its behavior accordingly

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In 2007 we changed our management

strategy

Adopted two ”controversial” project methods

One fostered the startup and maintainance of a

project

The other fostered the core development

We had to build a bridge over all the RISKs our

old projects faced!

If you had a budget of 100mio kroner worth of

ICT projects, you wouldn’t just let kaos loose,

right?

Direktoratet for forvaltning og IKT 14/01/14


All employees in our department was certified in Scrum as either Master or Productowner, and most were already or was provided with certification in at least PRINCE2 Foundation or above.

All internal teams and external projects started up with Scrum as primary methodology in their daily work and with PRINCE2 as overhead

We supported the projects and portfolio with tools for both PRINCE2 and Scrum

The two methods on one page:

PRINCE2 PRINCE2 SCRUM / PRINCE2

Business Case

RISK identification

Stakeholders

Proof of Concept

Daily standup

Sprint planning

Retrospect

Reporting

Documentation

RISK analysis

Evaluations

Transfer of ownership

Maintainance

RISK evaluation

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- Most people think the two methodologies dont match!

- PRINCE2 is great at starting up and ending the projects…

- …Scrum is excellent at executing the project!

- …but common for both of them is that communication is a central element and tool you should use – every day, hour, minute, second

Why two project methodologies?


Developer

Customer

Need

Requirement specification

Implementation document

Finished Product

Actual

need

Salesforce

PM/

Architect

“Classic it-project”


Customer

Vision

Team Actual needs

Agile it-project


21

Communication is the key to reducing your RISKs!

• Set expectations

• Define goals

• Prioritize effort

• Act on problems

• Sharing

• Work as a team


RISK considerations – I

Business value


RISK considerations – II

Change Management


RISK considerations – III

Communication

© Alistair Cockburn 14/01/14

RISK considerations – IV

RISK management


RISK considerations – V


27

Maximize delivered value for money...

The Lean Message: •Reduce waste

•Just-in-time

•Stop the line

The Agile Message: •Frequent deliveries

•Learn and adapt

•Team work

The TOC Message: •The goal is to maximize profit

•Constraints limit throughput

•Optimize the whole

Value and Waste

Maximize Throughput

People and Leadership

Optimize the Whole

Continuous Improvement

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28

Value and Waste

Value – What the customer is willing to pay for.

Waste – Everything that do not create value are

potential waste candidates.


29

7 Wastes of Software Development

Partially done work (inventory)

Paperwork

Extra features (overproduction)

Task switching

Handoffs

Delays

Defects


30

Optimize the Whole

3 days of value

81 days of waste 3.6% efficiency

Describe problem at

the support web

site

Evaluate severity Technical analysis Code & Fix

Document fixPackage & release

bug fix

Download and

review bug fix

Install bug fix at

customer site

30 min 7 days 30 min 14 days ½ day 0 days 1 day

½ day 0 days ½ day 30 days 30 min 30 days ½ day

84 days cycle time

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31

Maximize throughput

Define cross-functional teams

Early and frequent delivery of value

Pull work at bottleneck rate

Reduce project size

Reduce multitasking

Pull

Delivered value


32

Theory of Constraints

Eli Goldratt

1.Identify Bottleneck

2. Exploit Bottleneck

3. Subordinate

4. Increase Bottleneck Capacity

5. Goto 1

Pull

Delivered value

Critical Chain

Throughput

Accounting

Inventory is a cost

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33

Reduce Multitasking

100k 20k 50k

A1 B1 C1 A2 B2 C2 A3 B3

A1 A2 B1 B2 C1 C2

100k 20k 50k

C3 B3 A3

C3

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34

Return on Investment

-1000

-800

-600

-400

-200

0

200

400

600

800

1000

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15KN

OK

Parallel Serial


35

Inventory

0

100

200

300

400

500

600

700

800

900

1000

0 1 2 3 4 5 6 7 8 9 10

KN

OK

Parallel Serial


36

People and Leadership

Simple Rules – Dee Hock “Simple clear purpose and principles give rise to complex intelligent behavior”

“Complex rules and regulations give rise to simple, stupid behavior”

Empowered teams Define the purpose for the team

Give the team access to customers

Let the team make its own commitments

Cross-functional and collocated teams

Let the team self-organize

100% focus on actual feature, when done, pull next feature from priority list

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37

Optimize the whole

Look at the whole Value Stream, from the arrival of a Customer request to its completion.

No value until end-users start using what we’ve done

Tell me how you measure me, and I tell you how I behave” – Eli Goldratt

14/01/14


However…

Scrum, PRINCE2, Six Sigma and other

methodologies ia not a silver bullet

You, your organization and your subcontractor

has to be mature and ready for adopting

changes

Changes needs to anchored buttom-up –

especially agile changes

PRINCE2 gives management tools…

…SCRUM gives subcontractor and/or your

employees tools Dato Direktoratet for forvaltning og IKT

14/01/14

Thank you for listening

(– now go and communicate!)

E: [email protected]

M: +47 902 96 319

T: @vindinge

L: www.linkedin.com/in/vindinge

mailto:[email protected]

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