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Report on the Software Measurement and Improvement Forum, 2nd October 2007: Measuring Performance: Delivering Value.
Championing process improvement and software measurement within your organisation can sometimes feel like ploughing a lonely furrow. The Software Measurement and Improvement Forum was set up to provide an opportunity for IT managers with such responsibilities to discuss common concerns and matters of interest with their peers from other organisations.
At the Forum held on 2nd October 2007, the topic was "Measuring Performance: Delivering Value" - a subject which generated considerable interest and debate. Presentations looked at Agile and Lean management techniques in practice, and how these relate to the identification and delivery of value.
Lean and Agile are both methods of improving the effectiveness and efficiency of work processes. Lean management techniques have revolutionised the manufacturing industry, reducing waste and over-production by mapping the production process much more closely to customer demand. This requires a production process which can respond quickly and flexibly and adapt easily to changing customer needs.
Agile refers to Agile Software Development and Project Management, and applies Lean management principles to software development. Agile delivery is a framework that promotes evolutionary change throughout the entire lifecycle of a project, driven by an emphasis on what the customer wants. The focus is on:-
- quality
- early delivery of functionality
- maximising business value and
- minimising risk.
Agile is much more than a "new process". It demands a real and often fundamental change in the organisational culture and in the mindset of all those involved in the development process. Achieving this kind of change presents a significant challenge in a large organisation where dispersed development - often involving off-shore teams - is the norm. The first presentation to Measuring Performance: Delivering Value Forum illustrated how just such a large organisation - BT - has set about changing the way it works.
BT has introduced Agile practices to its software delivery teams, recognising that the future of the business requires an IT department which is adaptive and flexible to changing business needs. An Agile approach places more importance on engaging with the people involved than the processes, and BT have addressed this by setting up a team of Agile coaches - individuals who have been trained in the principles and application of Agile practice - to guide employees through the change from established ways of working. Mark Anning, Agile coach for BT Design shared with the Forum practical examples of the successes and lessons learnt from BT's experience of implementing this programme to date.
What to measure and how to interpret the results and apply them to guide and improve the decision-making process are issues common to all improvement programmes. Without effective measures, the business can neither evaluate the effectiveness of the change programme, nor prioritise areas of concern. Carol Drummond, Business Improvement Specialist for BT Design, co-presented with Mark Anning and talked about how BT has tackled this and what they've learnt so far.
The next SMIF presentation offered a resolution to any doubts that Lean management complements, rather than conflicts with, a CMMI improvement programme. Systematic A/S, the largest privately-owned software supplier in Denmark, is a CMMI Level 5 company, who are looking to Lean principles to further enhance the value they deliver to their customers. Their goal is to "...create more value per dollar"
while also maintaining Systematic's ability to be a flexible partner.
Once again, the challenge is to incorporate Lean thinking into the company culture. Carsten Ruseng Jakobsen, (Lean Improvement Responsible Project Manager, PMP) presented details of how Systematic has gone about building on the CMMI programme to ensure that the improvements achieved in the software development process deliver value to the end customer. Iterative development and good communication are key elements in achieving this objective. Carsten Jakobsen's presentation noted how Systematic successfully piloted their own approach based on these principles before realising that the they were using the method identified by Lean experts as the SCRUM approach; evidence that this is intuitively a better way of building focus on value into the everyday practices of the organisation.
The results of the initiative so far show teams working more efficiently (some twice as fast) and reduced defects in final test. The focus on Lean culture and values has prompted many small improvements and established a common language for customer value within the organisation.
Finally - what do we mean by "delivering value"? Dr. Simon Wright of SMS focussed on one area critical to defining what is meant by "value" - identifying what the real requirements are. It is very difficult to measure the value of a delivery -
or the value added - if it is unclear what it was developed for. Requirements are typically expressed as "attributes" - quality; quantity; time/duration; cost/effort. None of these engender value. Value is dependent on context and must be defined by the stakeholders. The "Acquiring Stakeholders" need to define rationale and priority;
risk and price/cost ratio must be elicited from the "Supplying Stakeholders". If these criteria are not elicitied from the appropriate stakeholders, it is difficult to define the value of the deliverable. It should also be recognised that there may be both users and customers under the heading "Acquiring Stakeholder" - these groups have different needs, and will assign value differently.
Once the value criteria have been identified, a calculation can be made to set priorities, and measures put in place to ensure the project remains focussed on delivering customer value.
The Forum concluded with a lively debate about the nature of Agile development, and when Lean principles can and can't be applied. It is apparent that some of the issues arise from different interpretations of commonly used definitions - a term may carry one set of expectations in one organisation, and a subtly different set of expectations in another. This can be a particular difficulty when organisations merge, or work with outsourced partners.
Both Agile development and the Lean principles on which Agile is based re-set the priorities. People are more important than process; face-to-face communication more important than written documents. An understanding by all members of the team of the contribution, significance and dependencies of the process steps for which they are responsible is more important than adherence to extensively documented criteria which can result in optimising local practices at the expense of the overall value delivered.
Working software developed over a short space of time - typically, a three/four week "sprint" - is the main measure of progress for an Agile development programme. The minimisation of documentation, however, should not result in an absence of measurement and control mechanisms. For the iterative approach to work most effectively, appropriate measurement should be built into the development process and applied to the decision-making process at each review stage.
The next Software Measurement and Improvement Forum takes place on Thursday 14th February 2008. Details from www.measuresw.com; registration: www.smsexemplar.com/smif.
Sue Rule
Software Measurement Services Ltd.
events@measuresw.com t. +44(0)1732 863760
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