Hyperproductive Distributed Scrum Fast, Cheap, and Scalable

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Hyperproductive Distributed Scrum Fast, Cheap, and Scalable Hosts: Jeff Sutherland Joe Justice @ScrumInc @JeffSutherland 2011 Scrum Inc.

Biographical Sketch - Jeff Sutherland 1960-1975 - West Point, Fighter Pilot, U.S. Air Force 100 missions over North Vietnam F4 Phantom 1973-1986 - Univ. Colorado School of Medicine Asst. Prof. Radiology, Biometrics, and Preventive Medicine Complex adaptive systems research, mathematical simulations of cancer cell formation 1983-2008 - VP/CTO/CEO 10 technology companies, Agile coach to 21 startups 1983-1993 prototyping new development processes 1993 created first Scrum, now the leading software development methodology 1996-2008 CTO IDX (GE Healthcare) and PatientKeeper 2006-present Senior Advisor, OpenView Ventures 2008-present Chairman Scrum Foundation 2006-present CEO Scrum Inc. QuickTime and a GIF decompressor are needed to see this picture. QuickTime and a GIF decompressor are needed to see this picture. 1993-2012 Jeff Sutherland

2014 Scrum Inc. Joe Justice WE HAVE FOUND TEAM MORALE TO BE A MULTIPLIER FOR VELOCITY. Consultant at Scrum Inc, and CEO of WIKISPEED - global manufacturer of ultra-efficient prototype cars and Social good initiatives. Creator of extreme Manufacturing Technical practices enabling Scrum in hardware manufacturing and engineering organizations. Scrum in space systems, rockets, missiles, automotive, housing, metrology, medical devices, radio, radar, dev-ops, organizational transformation, entertainment, legal, software architecture, composites, etc. Speaker and Consultant at Unesco World Headquarters, TEDx, Cambridge University UK, UC Berkley USA, Google, Microsoft, Boeing, Lockheed Martin, Raytheon, Wikimedia Foundation, Open Source Ecology, Aspen Institute, Pictet Bank, Johnson Controls, and other organizations world-wide. Justice@ScrumInc.com

Who We Are Scrum Inc. is the Agile leadership company of Dr. Jeff Sutherland, co-creator of Scrum. We are based in MIT Kendall Square. We maintain the Scrum framework by: Capturing and codifying evolving best practices, Conducting original research on organizational behavior Adapting the methodology to an ever-expanding set of industries, processes and business challenges We also help companies achieve the full benefits of Scrum through our full suite of support services: Training (Scrum Master, Product Owner, Agile Leadership, online courses, etc.) Consulting (linking Scrum and business strategy, customizing Scrum) Coaching (hands-on support to Scrum teams) Publishing and new content development We run our services company using Scrum as the primary management framework, making us a living laboratory on the cutting edge of Enterprise Scrum Find out more at www.scruminc.com.

Agenda Why Collocate? Benefits? Why Distribute? Problems? Types of Distributed Scrum Special Case: Outsourcing Distributing Velocity is the Challenge Single team in multiple locations Linear scalability how to break Brooks Law Case studies of globally distributed Scrum Distributed Scrum at Scrum Inc 2

Collocation Teams work best when collocated Collocated means team members can see and talk with one another while working Decades of MIT research shows distance of more than 30 meters causes distributed effect Multiple studies show collocation doubles production This happens even when comparing collocated vs. non-collocated teams in the same building Collocated XM Scrum Team

Example: Collocation Doubles Productivity Rapid Software Development through Team Collocation. Stephanie D. Teasley, Lisa A. Covi, Member, IEEE Computer Society, M.S. Krishnan, Member, IEEE Computer Society, and Judith S. Olson, IEEE TRANSACTIONS ON SOFTWARE ENGINEERING, VOL. 28, NO. 7, JULY 2002 1993-2014 Jeff Sutherland

Collocation Good for Team Dynamics Stages of team development: Forming, storming, norming, performing Authority Trust Cultural differences Styles of conflict resolution 1993-2014 Jeff Sutherland

Scrum Framework Challenges High productivity depends on All software DONE and usable at the end of a sprint Product backlog in high READY state at the beginning of a sprint Impediments aggressively removed via the Daily Scrum and Retrospective Distribution makes this more difficult However, several case studies show it is possible to overcome these challenges 1993-2014 Jeff Sutherland

Why Distribute? Common Objectives Save money Capture talent Scale up and down quickly Common Results Increase risk Increase dysfunction Delay projects 1993-2014 Jeff Sutherland

With distributed agile development it is possible to tap into new global markets and make best use of globally available talent, while potentially reducing costs. Teams at patterns & practices have been successfully using this approach for a number of years. The decision to distribute your project should be a conscious one and the decision maker(s) must understand that in doing so they: reduce the project s likelihood of success increase the delivery time reduce the team s performance and increase its dysfunction The risk/reward tradeoff needs to be clearly understood before deciding to distribute your team(s). Source: http://www.microsoft.com/en-us/download/details.aspx?id=14916 1993-2014 Jeff Sutherland

Don t Distribute Bad Agile Source:

Never Outsource to Waterfall! Scrum collocation effect will always overwhelm any hour rate savings for outsourced waterfall teams. Outsourced Scrum teams have problems Turnover rate is 30-50% a year in India and China making it impossible to have stable teams Cost savings even for high performing outsourced teams is minimal Only outsource to Scrum teams and only to: Use local talent for local products and services Capture talent not available onshore Scale up and down at will without layoffs 1993-2014 Jeff Sutherland

Example: Scrum Changes the Basic Economics of Outsourcing What happens if you outsource $2M of development? Industry data show 20% cost savings on average Outsourcing from PatientKeeper to Indian waterfall team: Two years of data showed breakeven point occurs when Indian developer costs 10% of American Scrum developer Actual Indian cost is 30% $2M of Scrum development at Patientkeeper costs $6M when outsourced to Indian waterfall teams 16 1993-2014 Jeff Sutherland

Distributed Team Approaches That Work John Deere Distributed Scrum Teams each cross functional and collocated Scrum Inc Distributed Scrum of Scrums with locally collocated teams SirsiDynix Distributed Team Members with video Daily Meeting 18 1993-2014 Jeff Sutherland

Getting to Done Common tools and development environment Continuous integration of code globally XP engineering practices Similar talent in all locations for non-collocated team Because distribution magnifies dysfunction, engineering practices must be excellent to avoid project delays and loss of money Lack of cross-functional teams can easily cut productivity in half (outsourced test team). 1993-2014 Jeff Sutherland

Getting to Ready Product Owner is often not collocated even though role requires spending half time with the engineering team. (May require proxy product owner) Tooling must provide common visualization of work to be done Face to face meetings via video are essential to clarifying stories 1993-2014 Jeff Sutherland

Removing Impediments Face to face daily meetings and retrospectives are critical (by video if not collocated) Human factors are more critical when distributed Cultural differences must be understood and resolved In-person meetings are essential to get started and are needed periodically to maintain communication saturation. Need to have water cooler meetings by video. 1993-2014 Jeff Sutherland

Talk to Your Team 24/7 Agile Cockpit by Prowareness.com

Distributed Scrum Success Story SirsiDynix Digital Library Catalogue PO PO PO SyrsiDynix Provo, UT Denver, CO Waterloo, ONT Starsoft Labs St. Petersburg, RUS SM Dev Dev Dev Test lead Dev Dev Dev Catalogue Serials Circulation Search Reporting 23 1993-2014 Jeff Sutherland

SirsiDynix: Daily Meeting Scheduled to Fit Both Team s Calendar SyrsiDynix Provo, UT Denver, CO Waterloo, ONT Daily Meeting 7:45 Starsoft Labs St. Petersburg, Local RUS Team Meeting 17:45 Daily Meeting conducted by video to enhance robustness of communication 24 1993-2014 Jeff Sutherland

SirsiDynix: Robust Metrics Dashboard Supported Transparency 25 1993-2014 Jeff Sutherland

SirsiDynix: Outcome Waterfall 1 Scrum 1 SirsiDynix 2 Person Months 540 54 827 Lines of Java 58,000 51,000 671,688 Function Points 900 959 12,673 Function Points/ Developer Mo. 2.0 17.8 15.3 1. M. Cohn, User Stories Applied for Agile Development. Addison-Wesley, 2004 2. J. Sutherland, A. Viktorov, J. Blount, and N. Puntikov, "Distributed Scrum: Agile Project Management with Outsourced Development Teams," in HICSS'40, Hawaii International Conference on Software Systems, Big Island, Hawaii, 26 1993-2014 Jeff Sutherland

Scrum Scales Fractally Rather than Hierarchically 27

As a Result Linear Scalability Can be Maintained at Scale Scrum Teams Velocity Waterfall Project Size J. Sutherland, A. Viktorov, J. Blount, and N. Puntikov, "Distributed Scrum: Agile Project Management with Outsourced Development Teams," in HICSS'40, Hawaii International Conference on Software Systems, Big Island, Hawaii, 2007. J. Sutherland, C. Jacobson, and K. Johnson, "Scrum and CMMI Level 5: A Magic Potion for Code Warriors!," in Agile 2007, Washington, D.C., 2007. 28

Venture Company Example: Before Boston Dev New York Dev Romania Test Russia Dev Test Issues Retaining intellectual property Cannot measure productivity across teams Clear productivity losses from test strategy Cannot show real cost savings

Venture Company Example: After Daily Scrum Of Scrums Boston Dev/Test Romania Dev/Test Benefits All knowledge retained onshore Productivity same on both shores Measurable cost savings

Scrum Crowd Sourcing - Swarming 500 team members, variable workforce, variable hours. Competing in the most regulated industry worldwide, the American automobile market. Email list Virtual Scrum Room and <5 min demo videos let anyone get up to speed in their own timezone. Public access backlog, with acceptance criteria, allows anyone to pull a card. <5 min video of a card meeting it s acceptance criteria means the PO may move the card to done, even without ever meeting the doer.

@ScrumInc @WIKISPEED

March 2014 June 2014 @ScrumInc @WIKISPEED Brazil, Canada, Canary Islands, China, France, Germany, Hungary, India, Indonesia, Ireland, Italy, New Zealand, Philippines, South Africa, Spain, Switzerland, Turkey, United Kingdom, United States, Vietnam.

@ScrumInc @WIKISPEED www.kerika.com/wikispeed

3 teams Scrum Inc. Distributed Teams PO Seattle, SM/Team Philippines PO/SM Boston, Team Seattle, Boston PO Lincoln, SM Portland, Team Lincoln, Washington Always some team members traveling in Europe or Asia Weekly sprints Daily meeting 11am East Coast Time Monday 10-1pm East Coast Time Sprint Review, Retrospective, Sprint Planning Quarterly face to face planning

Scrum Inc Distributed Team Dashboard Combined Teams 9 people (before split) Combined Teams 4 and 5 (after split)

Conclusions Good distributed teams are possible if they are high performance Scrum teams Special care must be taken to avoid the downside of distribution Common tooling Video meetings Regular face to face meetings Resolving cultural differences If you are not Done at the end of a sprint it is much worse if distributed If you are not Ready at the beginning of a sprint the distribution radically increases risk If you do not aggressively remove impediments during the sprint, distribution will accentuate delays.

Questions? 2014ScrumInc.

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