Agile Thinking By Clarke Ching

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Agile ThinkingBy Clarke Ching
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Quiz Count the Fs

• Finished files are the resultof years of
  scientific studycombined with the experience of
  years .

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Quiz Count the Fs

• Finished files are the resultof years of
  scientific studycombined with the experience of
  years .
• Answer 3

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Quiz Count the Fs

• Finished files are the resultof years of
  scientific studycombined with the experience of
  years .
• Answer 6

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Quiz Count the Fs

• Finished files are the resultof years of
  scientific studycombined with the experience of
  years .
• Answer 1
• Sorry - I meant uppercase Fs

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Agile Thinking Tip

• Sometimes it is hard to get even the simplest
  things right.
• So work in a way that assumes we cant always get
  things right.
• (e.g. if you have decades of experience showing
  that gt 70 requirements change during the
  execution of projects then work in a way that
  makes it easy to change them)

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Agile ThinkingBy Clarke Ching
Abe Lincoln
Amancio Ortega Gaona
James Watt
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James Watt
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(No Transcript)
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(No Transcript)
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His greatest invention?
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An offer you cant refuse
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(No Transcript)
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(No Transcript)
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Horse Power

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Horse Power

6 HP Which currently costs you 900 p.a. Ill
charge you 300 p.a, saving you 600 p.a. If
you sign up for 20 years.
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1
Watt 22nd
100
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Agile Thinking Tip

• Figure out how to get what
• you
• want, by getting others what
• they
• want.
• (Hint They often want money).

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Quiz More staff for free? More money?

• What happens if you finish every project 25
  sooner?
• Before AAAABBBBCCCC
• After AAABBBCCCDDD
• You gain 33 more staff, for free.
• (Which is worth Wage-Bill 33)
• You can do 33 more work, for free.
• But do you have 33 more work to do?

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What if you sold or used only half that 33
increase?

• Fixed Costs 1,000,000
• Revenue per project 400,000
• Before 3 projects 1,200,000
• Profit 200,000
• But now you can do 4 projects!
• But you can only sell a small one, bringing in
  revenue of 200,000.
• Your revenue goes up to 1,400,000
• Your profit 400,000
• Your profit has doubled!
• You are a hero!

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Quiz Even earlier?

• If you could finish every project 25 sooner?
• And every project previously took 4 months.
• Then how much sooner does the 3rd project finish?
• 3 months
• Before AAAABBBBCCCC
• After AAABBBCCCDDD
• It not only finishes 1 month earlier
• it starts 2 months earlier.

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Quiz Even earlier

• If each of those projects returned 150,000 per
  month, once live
• How much more money have you made when you start
  D?
• 3 months
• Before AAAABBBBCCCC
• After AAABBBCCCDDD
• 450K
• 150K from A and 300K from B

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Agile Thinking Tip

• Judge all decisions (even technical ones)
  according to the cost (in terms of costs and
  revenue) of delay.

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What should we do?
Project execution Options X
P1
P2
P3
Cash Flow
Project execution Options Y
P1
P2
P3
Cash Flow
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What we should do
x1
x1
x1
Resources
P1
20 weeks
A
B
C
D
E
F
G
H
I
J
P2
28 weeks
A
B
C
D
E
F
G
H
I
J
P3
36 weeks
A
B
C
D
E
F
G
H
I
J
Cash Flow
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What we do do
x1
x1
x1
Resources
P1
48 weeks
A
B
C
D
E
F
G
H
I
J
P2
50 weeks
A
B
C
D
E
F
G
H
I
J
P3
52 weeks
A
B
C
D
E
F
G
H
I
J
Cash Flow
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Agile Thinking Tip

• Focus on
• Finishing
• more projects, not
• Starting
• more projects.
• Hint Dont dilute your effort and delay your
  cash-flow.

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Agile ThinkingBy Clarke Ching
Abe Lincoln
Amancio Ortega Gaona
James Watt
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Agile ThinkingBy Clarke Ching
Victim, not Hero.
Abe Lincoln
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• This evening at about 930 p.m. at Ford's
  Theatre, the President, while sitting in his
  private box with Mrs. Lincoln, Mrs. Harris and
  Major Rathburn, was shot by an assassin, who
  suddenly entered the box and approached behind
  the President.
• The assassin then leaped upon the stage,
  brandishing a large dagger or knife, and made his
  escape in the rear of the theatre.
• The pistol ball entered the back of the
  President's head and penetrated nearly through
  the head. The wound is mortal.
• The President has been insensible ever since it
  was inflicted, and is now dying.
• About the same hour an assassin, whether the same
  or not, entered Mr. Sewards apartment and under
  pretense of having a prescription was shown to
  the Secretarys sick chamber. The assassin
  immediately rushed to the bed and inflicted two
  or three stabs on the chest and two on the face.
  It is hoped the wounds may not be mortal. My
  apprehension is that they will prove fatal.
• The nurse alarmed Mr. Frederick Seward, who was
  in an adjoining room, and he hastened to the door
  of his fathers room, when he met the assassin,
  who inflicted upon him one or more dangerous
  wounds. The recovery of Frederick Seward is
  doubtful.
• It is not probable that the President will live
  through the night.
• General Grant and his wife were advertised to be
  at the theatre...
•  New York Herald, April 15, 1865

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Inverted Pyramid (Invented 19th Century)

• NHS chaos exposed by new e-mails
• Lead A COMPUTER project costing 6.2 billion
  that is central to Tony Blairs National Health
  Service reforms is in grave danger of being
  derailed, leaked Whitehall e-mails reveal.
• The warning has been issued by Richard Granger,
  the 250,000-a-year civil servant in charge of
  what has been billed as the worlds biggest civil
  information technology project.
• The scheme is central to the governments plans
  to give patients wider choice by allowing GPs to
  book hospital appointments online with
  consultants throughout the country.
• The problems have already caused a year-long
  delay in the booking system and now threaten to
  add millions to the cost of the project.
• To date the system has made only about 20,000
  appointments for patients. It was supposed to
  have made 250,000 by December 2004.
• When it is fully operational the system is meant
  to be capable of making up to 9.5m first hospital
  appointments a year.
• In the e-mail exchanges in September, Granger
  blames a senior civil servant in the Department
  of Health for the fiasco, criticising her
  repeated last-minute changes and failure to heed
  his advice.
• Jonathon Carr-Brown, The Sunday Times, November
  13, 2005 http//www.timesonline.co.uk/article/0
  ,,2087-1869851,00.html

priority
Time
Editors scissors
Cut according to space constraints
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Six principles of Agile Development
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1 Customer lists known requirements (to a high
level), then prioritises them ().
2 Deliver chunks of high-value, well engineered,
Working software often
3 The Customer can release the software at any
time they want.
All features
4 The Customer can add, delete or reprioritise
features at any time. i.e. this is how we
embrace change
Promised ShippingDate
5 We protect schedule commitments, despite change
6. We can review the project and the value it
delivers at the end of each increment
learn from the market
Working Software Potentially shippable
RELEASE
prioritised
Backlog
time
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Inverted Pyramid (Invented 19th Century)

• NHS chaos exposed by new e-mails
• Lead A COMPUTER project costing 6.2 billion
  that is central to Tony Blairs National Health
  Service reforms is in grave danger of being
  derailed, leaked Whitehall e-mails reveal.
• The warning has been issued by Richard Granger,
  the 250,000-a-year civil servant in charge of
  what has been billed as the worlds biggest civil
  information technology project.
• The scheme is central to the governments plans
  to give patients wider choice by allowing GPs to
  book hospital appointments online with
  consultants throughout the country.
• The problems have already caused a year-long
  delay in the booking system and now threaten to
  add millions to the cost of the project.
• To date the system has made only about 20,000
  appointments for patients. It was supposed to
  have made 250,000 by December 2004.
• When it is fully operational the system is meant
  to be capable of making up to 9.5m first hospital
  appointments a year.
• In the e-mail exchanges in September, Granger
  blames a senior civil servant in the Department
  of Health for the fiasco, criticising her
  repeated last-minute changes and failure to heed
  his advice.
• Jonathon Carr-Brown, The Sunday Times, November
  13, 2005 http//www.timesonline.co.uk/article/0
  ,,2087-1869851,00.html

priority
Time
Editors scissors
Cut according to space constraints
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Agile Thinking Tip

• Agile software projects make a different
  offer/promise.
• Not Fixed Scope, Fixed Duration, Fixed price,
  highly-variable success.
• But Variable Scope, Fixed Duration, Fixed price,
  higher likelihood of success.

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Agile Thinking Tip
BONUS

• Dont
• Bury the Lead
• Focus on
• the benefits AND the features the ½ inch hole
  AND the drill the what AND the how
• the forest AND the trees

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Agile ThinkingBy Clarke Ching
Abe Lincoln
Amancio Ortega Gaona
James Watt
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Agile ThinkingBy Clarke Ching
The worlds 10th Wealthiest Man Spains richest
man. Founder of Zara chain of fast fashion
shops. Very, very simple manufacturing
distribution systems. Very responsive. Where his
competitors take months to deliver a new range of
fashion clothing Zara takes weeks.
Amancio Ortega Gaona
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Rapid Fulfilment

• Most retailers
• Manufacture overseas, lowest-cost, with long
  delivery lead-times (many months)
• Manufacture to long-range forecast
• Low margins, missed sales.
• Sell out of popular product
• Sell unpopular stuff at huge discounts (or dump)
• Lower profits

• Zara
• Manufacturer locally, fly the product to the US
  Japan, very short lead-times (1-3 wks)
• Manufacture according to real demand (i.e. whats
  popular? Make and sell more of that)
• High margins, higher sales.
• Sell more of the popular product (at high prices)
• Dont manufacture the stuff people dont want.
• Higher profits.

plant
plant
shop
shop

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Agile ThinkingBy Clarke Ching

• Rapid-fire Replenishment needs
• careful prioritization (what do we manufacture
  next?)
• flexible adaptive manufacturing processes.
• So does Rapid-fire SoftDev.

Amancio Ortega Gaona
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Prioritize-Deliver-Repeat
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1 Customer lists known requirements (to a high
level), then prioritises them ().
2 Deliver chunks of high-value, well engineered,
Working software often
3 The Customer can release the software at any
time they want.
All features
4 The Customer can add, delete or reprioritise
features at any time. i.e. this is how we
embrace change
Promised ShippingDate
prioritised
Backlog
time
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Agile Thinking Tip

• Remember
• Prioritize
• Deliver
• Repeat
• (The delivery/engineering part is the easy bit.)

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Final Example
( PRIORITISATION )

• Before
• New Kanban system
• Better engineering!
• Loads of work.
• Barely profitable and
• why wont customers engage?

• After
• Proper Business oriented prioritization
• Moving 1 item to the top of the list changed
  everything.
• Huge increase in profits.
• More interesting work for Developers better
  equipment more respect.

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Agile Thinking Tip

• At the end of the day
• Its all about
• Flow

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Agile Thinking Tip

• At the end of the day
• Its all about
• And making IT the heroes.