The power of small declines

Allan Kelly from Allan Kelly Associates

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Last year I wrote about the power of 1% improvement, and how powerful this can be when that improvement occurs frequently. For example, if a team improves 1% a week then over the course of 50 weeks (a year) they would improve by over 62%.

A few days ago I had a revelation: the opposite is also true.

If a team enters a downward spiral then a 1% decline in productivity each week has similar effects but in the opposite direction. In fact, as I think about this I see more and more occasions where a team can loose small amounts of performance which actually saps their productive capacity. Like the frog in hot water they don’t realise they are cooked until it is too late.

The graph above shows what happens to value-add over a year when a team is 1% less productive each week. The blue bars show how value-add falls each week. The red line shows how each week the team declines slightly compared to the week before.

That the red line get higher seems odd but it makes sense: each week the team is 1% less productive than the week before. So at the end of the second week the team is 1% less productive than they were in the first week. At the end of week 50 they are 1% less productive than week 49 but only 0.62% more less productive than week 1 because the 1% decline was from a lower total. Getting worse slows down because the team are worse!

At some point the value-add ceases to justify the cost of the team. But as these changes are very gradual that is going to be hard to see.

Why might this happen? – lots of reasons

First off there are the corporate drains on productivity. Consider corporate security processes: think about passwords alone, the need to change passwords regularly, have longer and longer passwords, have different passwords on different systems, and so on. Sure cyber security is important but it can also be a drain on productivity.

Then there are the other hassles of working almost anywhere: finding meeting rooms, booking meeting rooms, setting up webex conference calls, “cake in the kitchen”, restrictions on internet use – whether it is limited access, site blacklists, or authorised “white list” sites only.

It is easy to see how a large corporate can gradually drain a team. But there are other reasons.

There are personal drains on productivity too. Consider internet use during work time. The likes of Facebook, LinkedIn and Twitter which aim to keep you on their sites as long as possible. Using LinkedIn is almost a necessity in modern work – got a meeting coming up? someone applied for a job? looking for a lead? – but once your in, Microsoft wants to keep you there.

Then think about your code base: is the code getting better or worse?

  • Easier to work with or harder to work with?
  • Do you write an automated test for every change? Or save time today at the cost of time tomorrow, and the next day, and the day after, and …
  • Do you take time to refactor every time you make a change? or are you constantly kludging it and making the next change slightly harder?

Notice here I’m not talking about those big time consuming changes that happen occasionally: new employees, reorganisations, mergers – things that happen occasionally, take a chunk of time but finish.

So, is your work environment getting a little bit better every week? or a little bit harder?

If we think at the “very little” level it is unlikely that things are the same as last week. Staying the same will be hard. Things are probably a little bit better or a little bit harder. Extend that over a year and – as the theory of 1% change shows – things are a lot worse, or maybe a lot better.

What is important is the trend, and the trend is going to be set by the culture. Do you have a culture of small improvements? Or an acceptance of small degradation?

Finally, because there are so many minor factors that can sap your productivity capacity then it is quite likely that if you aren’t getting more productive then you are getting less. In other words, you need to be working to improve just to stand still.

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NoNo workshop in London

Allan Kelly from Allan Kelly Associates

Smaller cartons of software are cheaper and less risky
Smaller cartons of software are cheaper and less risky

 

Vasco Duarte and myself are running our #NoProjects/#NoEstimates workshop again in London – February. This is a one day class with myself and Vasco, it is very interactive, lots of exercises and lots of changes to ask us your questions.

 

“A one day introduction to #NoEstimates and #NoProjects. Learn to apply the digital-first tools that help you deliver more value in less time. From breaking down 9 month projects to 30 minutes, to learning to reduce investment risks. In this workshop you will learn how to transform your product development.”

More details and booking at the Learning Connexions website.

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PS A discount code for my December workshop

Allan Kelly from Allan Kelly Associates

Learning Connexions and I are running my “Requirements Backlogs and User Stories” workshop next Monday – 3 December in London. They have set up a Black Friday discount code which is only good today and reduces the price by 20% – so just under £500 for a day (including lunch!)

The code is: BLUEFRIDAY2K18
And actually it works with all their courses not just mine.

As for the day itself, the title pretty much says it all. We do some exercises, we review some actual user stories, we value some stories and we talk a lot. I deliberately keep the classes small so that we have plenty of time to discuss the things attendees want to talk about.

Most of the attendees are Product Owners, Product Managers or Business Analysts. We also get a few developers and project managers along too. But whatever your role I’m sure you will learn something,

And sorry, if I’d known this a few days earlier I’d have included this in my last post.

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Money talks: A tale of two change programs

Allan Kelly from Allan Kelly Associates

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Like many in the agile community – or what sometimes gets called the agile industrial complex – I am all for piecemeal adoption, small scale before large scale, get good at doing stuff then expand it out… – what else would you expect from Mr Diseconomies of Scale?

The “start small” and grow might even be regarded as the canonical approach to agile implementation. But from time to time I run across something that makes me wonder…

Four or five years back I got involved with an agile transformation programme at a large financial institution, not a bank, more of a mass market asset manager. I was attached to a small team trying to make the whole company agile.

The coaches viewed themselves as a gorilla movement, changing the organization from within. They had some success, there was a bunch of stuff the agile teams and the coaches were doing wrong but that is another story. This was a licensed insurrection.

As is often the case, this team found it lacked the ability to ask the big questions and get people outside the team (often the higher ups) to engage or change themselves. The organization wanted agile down in the engine room – at the code face – but they didn’t want to rethink how they set requirements and approached projects. The whole organization was chronically project driven, obsessed with long term planning and offshore development. Economies of scale thinking ran riot.

Because the agile change was at the team level the product owners lacked authority to make real decisions – like not delivering functionality. Yes the organization wanted to “be agile” but the management cadre didn’t see any need to change their own behaviour.

One day I met two men who ran the company’s “Software Process Group.” They were guardians of the formal process and “working practices”. My immediate reaction was that they wanted to kill agile and stick with ISO-9000, PRINCE2, CMMI and certified approaches. They scared me. But actually they were very clued up. They got agile. They saw it was better than the current process.

These two had no role in the agile transformation, their role was to ensure the company kept its CMMI level two certification. This was really important to the company because this allowed the company to do business. They told me a story…

During the previous 20 years the company had grown large, very large, by buying up competitors and companies in related markets. These companies had been thrown together and costs stripped out. One day the financial regulator came to the company and said:

“We have been examining your IT functions. They are not fit for purpose. If you don’t fix it within 12 months we are going to withdraw your license to do business.”

Shit hitting the fan doesn’t come much bigger than this.

The company went to IBM and said “Help! – Fix it – we’ll will pay anything.”

IBM flooded the company with people. IBM imposed a process – a traditional CMMI compliant process. IBM changed the company, not just the programmers but everything. The company did as IBM told them.

And don’t imagine it was cheap. I bet that the change and IBM fees were on the agenda at every board meeting during that period. The men I had met were the remnants of that programme, they worked for the company not IBM, their job was to ensure the company maintained accreditation and the financial regulator wouldn’t have cause to come back.

Now contrast this with the piecemeal, small scale, bottom-up change that us agile folk are so fond of. Time and time again we get stuck: “the business won’t change”, “we can’t get access to the senior people”, “existing processes and expectations are unassailable”, “projects are killing us” and so on.

I’m sure IBM faced many of those same problems but they had one big advantage: They were expensive.

OK, they had a second: the loss of license would destroy the client company. But when threatened people often respond by sticking with that they know so maybe it was a double edged sword.

Because IBM were expensive they had access to anyone they wanted access too. Because they were expensive they had authority. And if someone didn’t want to make the changes IBM suggested then IBM could simply ask the next person up.

Once again money is information: by spending lots of money with IBM the company was signalling it really wanted these changes to happen.

Agile changers may not like big change, they may point to the inherent risks, they may point that use of authority conflicts with self-organization, they may understand that diseconomies of scale rule and they may point to a bunch of other risks.

But they should also note one clear advantage: a big expensive change programme brings authority all of its own.

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Agile won the war but lost the peace

Allan Kelly from Allan Kelly Associates

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“I’ve spoken of the shining city all my political life, … in my mind it was a tall, proud city built on rocks stronger than oceans, wind-swept, God-blessed, and teeming with people of all kinds living in harmony and peace; a city with free ports that hummed with commerce and creativity. And if there had to be city walls, the walls had doors and the doors were open to anyone with the will and the heart to get here. That’s how I saw it, and see it still” President Ronald Reagan, Farewell to the Nation, January 11, 1989

Back in 2001 when the word agile appeared it was a manifesto – a set of ideas, the term “agile” also served to group a bunch of tools and techniques which could make software development “better.” More importantly to my mind, it painted a picture of a shining city on a hill we all wanted to live in.

Agile was a place you wanted to go, it was a journey you wanted to make, it offered hope. More important as the tools – sprints, stand-ups, etc. – and approaches – just in time, last responsible moment, test first – were the stories agile people – including myself – told. These were stories of a better world, of that shining city on the hill.

And not unimportantly, in a world of search engines “agile” gave you something to search for. Before agile you could search “make my software development team better” or “software development process improvement” but what you got was a very mixed offering. AltaVista (and the young Google) would suggest links for CMMI, or ISO-9000, or vendor tools to “fix it”, or proper design, or… there was no coherent message. Most of these ideas resolved around senior people making big decisions and then imposing them.

Then along came agile: it offered to involve everyone, everyone made decisions, everyone was happy and we could all go to that shining city on a hill – more than that, we all had an important part to play in building that city.

Today everyone is agile. Nobody is promoting traditional (“waterfall”) working, CMMI, PMI and everyone else has incorporated agile (to some degree). Not being agile is about as popular as leprosy.

But very few of us have reached the shining city on the hill.

Along the way agile has been watered down, in becoming compatible with everything else it is less different, it is less attractive, fewer workers are motivated to take the journey. And as “the powers that be” have found ways to bring control-and-command back to teams (maybe in the name of scaling) fewer people are invited to help build the city.

Ironically, as we (the agile community) has made agile management friendly we have made it less worker friendly. Today senior managers “get agile” and want their organisations to be agile. But those at the code face seem to have less and less motivation. And those in the middle… sometimes they seem to want to change just enough to declare success but no so much that things really change.

For some people agile has become completely discredited – I wrote Why do Dev’s hate agile? last year and I’m presenting it in London next week. Agile isn’t a shining city on a hill, agile is trench warfare.

And Googling “agile” presents a long long list of links with less and less coherence.

Agile won the war. Agile is respectable and everyone is agile now. Big business rush to be agile, Governments want to be agile, blue-chip consultancies will sell you agile.

But agile lost the peace.

While many say they are agile few software developers live in a shiny city. The place they live in might be better than the place they came from but it doesn’t live up to the dream many of us shared 15 years ago. Agile has become an excuse for failure and a thing to be imposed.

The thing that passes for “agile” today is too often a watered down version of the original dream. Worse still, we don’t have a word to describe that shining city we all want to get to. Russians have an expression for this:

“We wanted the best, it turned out like always.” Viktor Stepanovich Chernomyrdin, Prime Minister Russia, 1998-1999

Me? – I still dream of that shining city on the hill, I still believe agile is the right way to get their, I still wave the flag for agile but more and more I feel the need to explain myself and tell people that the agile I dream of is not the agile they may experience.

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More Continuous #NoProjects questions

Allan Kelly from Allan Kelly Associates

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Three short questions and answers to finish off my series of left over questions about #NoProjects, #NoEstimates and the Continuous model.

Q4: How do we prioritize and organize requests on a product that are from opposite business owners? – for example legal (who wants to reduce the risk and annoy more customers) and sales (who want to increase the features and simplify life) can be arbitrated in a backlog?

You can think of this as “which is worth more apples or milk?” It is difficult to compare two things which are actually different. Yes they are both work requests – or fruit – and each can make a case but at the end of the day you can’t make everything number 1 priority.

In real life we solve this problem with money.

Walk into your local supermarket. Apples, oranges and milk are both price in the same currency, sterling for me, Francs for the person who asked this question, maybe Euro’s or Dollars for you. So if we can assign value points to each request we are half way to solving the problem.

Now sales will argue that without their request there is no real money so whatever they ask for is worth more. And legal will argue that nobody wants to go to jail so their request must be worth more. You can set your analyst to work to calculate a value but a) this will take time and b) even when they have an answer people will dispute it.

Therefore, I would estimate a value – planning poker style. With an estimates value there is no pretence of “right” or “correct”. Each party gives a position and a discussion follows. With luck the different sides converge, if they don’t then I average. Once all requests are valued you have a first cut at prioritisation.

Q5: How to evaluate the number of people you need to maintain software?

I don’t. This is a strategic decision.

Sure someone somewhere needs to decide how much capacity – often expressed as people – will be allocated to a particular activity but rather than base this on need I see this as another priority decision. If a piece of software is important to an organization then it deserves more maintenance, and if it is not important it deserves less.

You could look at the size of the backlog, or the rate of new requests and contrast this with the rate at which work gets done. This would allow you to come up with an estimate of how many people are needed to support a product. But where is the consideration of value?

Instead you say something like: “This product is a key part of our business but the days of big changes are gone. Therefore one person will be assigned to look after the software.”

If in three months more people in the business are demanding more changes to the software and you can see opportunities to extract more value – however you define value – then that decision might be revised. Maybe a second person is assigned.

Or maybe you decide that maintaining this product isn’t delivering more value so why bother? Reduce work to only that needed to keep it going.

Q6: How do you evaluate the fact that your application becomes twice as fast (or slower) when you add a new feature in a short period of time?

Answering this question requires that the team has a clearly defined idea of what value is. Does the organization value execution speed? Does the organization value up-time? Does the organization value capacity?

Hopefully some of this will have come out of the value estimation exercise in Q4, if not the analysis is just going to take a bit longer. The thing to remember is: what does the change do for the business/customers/clients? Being faster is no use in itself, but doing X faster can be valuable.

The real problem here is time. Some changes lead to improvements which can be instantly measured. But there are plenty of changes where the improvements take time to show benefit. Here you might need to rely on qualitative feedback in the short run (“Sam says it is easier to use because it is faster”). Still I would keep trying to evaluate what happens and see if you can make some quantitive assessment later.

Notice that Q4 and Q6 are closely related. If you have a clear understanding of why you are doing something (Q4) then it becomes easier to tell if you have delivered the expected value (Q6). And in trying to understand what value you have delivered then you refine your thinking about the value you might deliver with future work.

Another feedback cycle.


These questions concludes the series of question carried over from the #NoEstimates/#NoProjects workshop in Zurich – see also How should we organize our teams?Dealing with unplanned but urgent workHow do we organise with a parallel team? – if you would like me to answer your question in this blog then please just e-mail me.


The #NoProjects books Project Myopia and Continuous Digital discuss these and similar issues in depth and are both available to buy in electronic or physical form from Amazon.

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Continuous Digital published – done?

Allan Kelly from Allan Kelly Associates

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Continuous Digital is done.

Probably. Maybe. Definitely maybe.

Continuous Digital is the second of my two #NoProjects books. Many people ask: “why two?” “What is the difference between them?” “Do I need to read both?”

Short answer: Project Myopia explains why the project model is bad for software development. Continuous Digital describes what to do instead.

Long answer: as the #NoProjects hypothesis grew, as I thought about it more, as I talked to others about the ideas – specifically Steve Smith, Joshua Arnold and Evan Leybourn – the ideas grew. My thinking both on “what to do instead of project management” and “why do something different” grew.

Specifically I saw that the combination of Continual Delivery and Digital Business meant there was a stand alone case for moving beyond the project model. Whether you agree with the problems I discuss in Project Myopia or not there is a case for changing the way businesses are managed.

That is why I split the too books. Project Myopia is a companion book, it is not a prequel, a sequel, a book one or a book two. It is a book some people will read in its own right.

Continuous Digital argues that since business are increasingly digital, and as businesses strive to survive and grow then technology development is not a separate “project” it is inherent to the business. Technology and innovation are business as usual.

Stopping, even pausing, work – as in the project model – surrenders competitive advantage and introduces extra costs (time, money, risk). What is needed is a new model. A continuous model.

Continuous Digital is now published on Amazon in digital form and will soon be there – and in other booksellers – in physical form. (If you can’t wait for a print copy you can buy one from Lulu where they are slightly cheaper too.)

So I’d like to say Continuous Digital is done. But…

Even before I saw the final print version I had requests for an audio version of both Project Myopia and Continuous Digital. I’m debating whether to do these, if you would buy an audio version please let me know, if enough people want it I’ll do it.

Second, once I saw and held the final, done, version in print new ideas came to me. I don’t want to revisit the text – although I might fix a couple of typos – but Continuous Digital is a big book, 350 pages. And I know many people will be put off by the size.

So I’m thinking of turning it into four smaller books, each around 100 pages in length and each corresponding to one part of Continuous Digital. Maybe.

It is never done. It is continual.

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Dealing with unplanned but urgent work

Allan Kelly from Allan Kelly Associates

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3) Maintenance and Evolution
To keep a product alive, we choose backlog stories that will bring value, and do them one after the other.
But… as support of the application may take a huge part the work. And when the problem is critical, there is nothing you can do but stop what you do and fix it. This can blow any estimation.
How do you deal with firefighting in a #NoProjects world?
And techniques to avoid it.
How does #NoProject and DevOps work together?

Let me take the last part of this question first. Operations has never been plagued by the project model the way development has. When does a SysAdmin ever say “The project is finished so I’m not going to restart the server” ?

DevOps (aka Continuous Delivery) and Continuous Digital are a natural fit. The team is responsible and accountable: writing the code, deploying it and supporting it there after: “You built it, you operate it” as DevOps people like to say.

Of course the team needs to contain all the skills needed to service this approach. That might mean having an individual specialist on the team or it might mean that team members have multiple skills. A Continuous team is not just a DevOps team, it is also a Business-Technology team – or #BizTech to coin a hashtag. (This week I heard such a team called a BizDevOps team. That is one portmanteau too far for me.)

Which brings us quite nicely to the first part of this question: how do you manage – and perhaps even plan for: unplanned work?

What I would like to happen when unplanned work appears is that it is written on a card and placed in the backlog. It then takes its place with all the other possible work. But… as the questioner states: this work can’t wait, it is urgent.

Unplanned but urgent simply needs to be done. Quite possibly other work, less valuable work or work which is not time critical may even be interrupted.

At this point I was about to refer readers to an old blog post about Yellow Cards. But it turns out that I never wrote that post. Despite talking about Yellow cards for years I’ve never blogged about them. I wrote about them in Xanpan but for some reason or another I never wrote the blog… so here you go…

When a team is mid-sprint and unplanned work appears the team should:

  • First ask “Can this work wait?” – If so then write it on a regular card and put it in the backlog
  • If not then ask, is this more valuable than work we are doing now? – If not then someone needs to find the source of the request and explain why is isn’t going to get done.
  • Assuming it is urgent then it gets written on a Yellow card.
  • If it is really really urgent then someone drops what they are doing and works on the yellow card immediately.
  • If it can wait a little while then the next person who finishes their current work picks up the card and does it.
  • Once the yellow card is done mark it as done as with any other card and work continues as it was before.

Accepting unplanned work into a sprint impacts the other work the team is doing. I’m not a big fan of the commitment protocol so to me it is no big deal if this work displaces something else. But if your team are expected to hold fast to hard commitments while dealing with unplanned work then you have a problem, call me, we need to talk more.

At the end of the iteration we can look at the cards and reason about them. Now we can see the work we can manage it and decide what to do about it.

I count up the yellow cards – and all the planned work cards. That allows me to calculate a ratio of planned versus unplanned work. (Sometimes teams put a retrospective points estimate on a yellow but doing a card count is often sufficient.)

This can be tracked over time – graph it, make it visible again. Now we can look at the work and the pattern of work, reason about it, maybe do some root-cause analysis. Perhaps:

  • Perhaps much of the urgent work isn’t really so urgent, perhaps the team should push back more. Maybe the team, or one of the team leaders, needs to the authority to say No.
  • Perhaps most of the unplanned work comes from a particular person. Maybe this person doesn’t realise the impact of their unplanned requests, or maybe they need to be included in the planning process, or … a million other reasons.
  • Perhaps the unplanned work is coming from the same sub-system, maybe some remedial work on that sub-system could reduce the amount of unexpected work.
  • Perhaps the unplanned work is just the nature of the business and being responsive is valuable.

Looked at this way we can think about reducing the amount of unplanned work. But also, we can plan for unplanned work.

It is likely that over time a pattern will emerge. One team I know found that 20% to 25% of their work in any sprint was unplanned. They simply planned for 20% less work. They now had the capacity to cope with unplanned work. At the least they could expectation manage stakeholders.

One team found that each sprint they were doing about 20% IT support tasks (new PCs, Word problems, etc.) so they hired a support technician.

Another team who agonised about unplanned work found that actually they only had about one unplanned card a week. Their problem was not excessive unplanned work but the fact that unplanned work tended to have a very high profile in the company.

Teams which find they have very high levels of unplanned work on a regular basis (e.g. over 50% of work for several months) may well decide to adopt a full Kanban system. Indeed, Kanban folk probably recognise my description as a very simple example of quality-of-service and policies.

I say more about Yellow Cards for unplanned but urgent in Xanpan so you might like to continue reading there.


This is the third question carried over from the #NoEstimates/#NoProjects August workshop in Zurich.


If you have any questions about Continuous Digital, Project Myopia and #NoProjects please mail them over and I’ll do my best to answer them in this blog.

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How do we organise with with a parallel team?

Allan Kelly from Allan Kelly Associates

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2) Offshoring – When Project meets #NoProject
In our department, we maintain products, … we deliver small features. In parallel, we have some offshore teams working in traditional project mode
The hard part comes when we need to integrate/merge our code. We have different cycles, schedules and objectives. How do we manage code handover code from offshore? – we feel we are inheriting a pack of legacy and tech debt that is added to our own stack.
No matter the handover contract agreement we set, … they don’t make the right choices for a long term maintenance vision.
They deliver the requested features, it works from a business point of view, but they deliver it in a way that can be difficult to maintain in production.
Of course, they do not maintain it, so they don’t have the experience of it.

This is the second question carried over from the #NoEstimates/#NoProjects workshop in Zurich last month.

While the question is phrased as “working with offshoring” I don’t see this as an offshore specific question. I think the question is about working with a second team, a team which does not hold maintenance responsibility and a team which perhaps doesn’t have the same quality standards as the primary team. I am sure that offshoring – and probably outsourcing – complicate matters because issues need to navigate additional boundaries.

One question in my mind is: if the second team impose such additional costs on the primary team are they actually making more work than they are doing? That is, every hour the primary team spending dealing with the liabilities of handover is an hour not delivering their own work. I’d want to look at that but lets assume the second team are worth it.

Something which worries me here: “No matter the handover contract agreement we set”. Are the second team listening? Are they making an effort to work with the primary team? Or are they ignoring the primary team?

If that is the case then it is a big problem because there is little the primary team can do to fix how the second team work. So a question comes into my mind: are those responsible for having the second team aware of the issues? Would they like to improve things?

If not then, as the second team and those employing them are not concerned, the problem may be unsolvable. The only solution the primary team have is to insulate themselves from the problems of the second team. In the short run that removes the pain for individuals but in the long run it will make things worse.

To my mind it does fall on the primary team to make a case to both groups that they would like to make things better and to work with the second team and management to make things better.

So how do we make things better?

The good news is there is lots that can be done here, there are people changes, process change and technical solutions. The bad news is, there is no silver bullet.

People changes: team members should visit each other.

I know travel budgets get cut but there is a clear case here that if team members could visit each other, understand each other, known each other then they will both work together better and be in a better position to improve things.

Process changes: ask the second team to do smaller pieces of work and deliver more often.

I don’t know the mechanism by which work reaches the second team but someone somewhere is asking them to do things. That person needs to change their requests. Of course, this means moving the second team away from the Project Model and towards a Continuous model.

Technical changes: there are a lot of options here but each of these options is gong to work best if people have visited one another and the process has been changed to lots of little.

So:

  • Have both teams practice continuous integration (if they are not already).
  • Reduce the number of branches, move towards trunk based development.
  • Have both teams practice automated unit testing (preferably TDD) and automated acceptance testing (ATDD).
  • Add static analysis tools to the build.
  • Do manual live code reviews, i.e. developers at one location talk to one at the other location while they do the code review.

None of these changes are unique to the scenario described in the question. They are common quality improvement practices. The only addition I’m making is on the code review, I want the second team to review the primary team’s code, not just the primary reviewing the second. I want this because I want teams to learn from each other.

Hopefully you can spot two themes to my suggestions.

Firstly, I’m treating both teams as equal. That is only fair but it makes sense too. If the onshore team makes the offshore team feel as if they are treated as second class then they will act as if they are second class.

Second, most of my suggestions are straight from the Continuous Delivery playbook: have both teams do lots of small high quality pieces of work and integrate them without delay.

Underlying here is a problem: the second team don’t do maintenance. They have little incentive to do better work and maybe unaware of the problems their style of working is causing.

Now having said all this I might be accused of ignoring the question. The question stated: the offshore team work in project mode. And I’ve just given suggestions which could be considered not project mode. Put it this way, I think changes need to happen one way or another. If the second team want to cling to projects then so be it, but they can still improve their quality as they do so.


If you have any questions about Continuous Digital, Project Myopia and #NoProjects please mail them over and I’ll do my best to answer them in this blog.

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How should we organize our teams?

Allan Kelly from Allan Kelly Associates

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Q1: How should we organize our teams?
My team is owner of different trading platforms and the core services around it. But we depend heavily on other products (e.g. financial feeds, client identification, services to send orders to stock markets, etc.). And of course each of the team managing these services have other platforms that are their clients.

When Vasco Duarte and I ran the #NoEstimates/#NoProjects workshop (or #NoNoWorkshop as I think of it) in Switzerland last month the attendees asked some good questions. With Project Myopia done and published, and Continuous Digital almost done it seems like a good time to repeat, and elaborate, the answers publicly. This will take a few blog posts to work through.

(I now have several Continuous Digital workshops and briefings available, please let me know what you think. Vasco and I are looking at repeating the workshop in London later this year, please get in touch if you are interested.)

The picture above is the way I see the question, if you have another interpretation, or another scenario please let me know.

The Continuous Digital model is for stable, long standing, autonomous, value seeking teams staffed with all the skills they need. Much of my thinking derives from Amoeba Management. Importantly each team needs to see how it adds value. In this case the business facing teams can see this – they enable the business do make money. But the back office teams find it hard see how they add value.

Now there are several possible answers to this question most of which involve some sort of re-organizations.

Option 1: Share the value

This solution does not involve reorganisation and comes straight from the pages of Amoeba management: allocate some portion of the value earned by the business facing teams to the teams they depend on. For example, the Trading platforms team might generate $10m each year. It could not do this without the services of the other three teams. Therefore some portion of Trading team’s earned value is passed to those teams.

Think about it, Trading Platforms affectively buys the services of three other teams. If those teams did not exist Trading Platforms would need to do that work themselves. Therefore those teams are contributing and deserve some credit.

This requires a serious conversation and probably needs more senior managers to intervene. Indeed, in Amoeba Management, Kazuo Inamori says that such decisions were among the most difficult ones facing Kyocera and often required more senior managers to make the final decision.

Nor is it always clear who buys from who, does a Sales Amoeba earn the value and pass part of it to the manufacturing team who build the product. Or does the Manufacturing Amoeba hire the Sales Amoeba to get their product to customers and therefore book the revenue and pass some to sales?

In the case above one might find it better to consider the value of the whole trading team including both the traders and the programmers who make the platform. Or perhaps the traders rent the platform from the technologists.

According to Inamori Kyocera standing allocations are set between teams. Alternatively one might create an internal market in which teams bought services from others on a piecemeal basis. On the one hand I like that idea model because it would allow for negotiation and trade-offs. On the other hand I imagine it creating a whole new set of bureaucracy, politics and internal sales. On balance, I’d fix the allocations and review periodically.

Option 2: Vertical slice

If you look at the picture above you might replace the word “team” with “library” or “services” and you would have a module dependency chart. Conway’s Law is at work – the organization and system reflect each other. (Although without knowing the history here it is difficult to say whether this was Conway’s Law or Reverse Conway’s Law at work.)

The services can stay as they are but we just disband the back-office teams and pass their responsibilities to the (enlarged) business teams.

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The three teams will need to co-operate and co-ordinate with each other as they now have shared responsibilities. This itself can be a problem – two developers changing the same code anyone? But the world has moved on. Technology has improved.

In the days of SCCS, Visual Source-Unsafe, manual testing and monthly deployments it was a pain to have two teams working on the same code. But distributed source code control, automated testing and continuous delivery make this option far more viable than it once was.

On the plus side each team can work at their own pace on their own priorities and knowledge is spread around. On the downside teams can still trip up each other, they may duplicate work and specialist knowledge can get lost. (Note I am not saying “nobody has overall design authority” is a downside because while a single Linus can be an advantage it can also be a liability.)

One more problem here: this solution directly breaks Conway’s Law. In theory it could work but quite possibly the homomorphic force behind Conway’s Law might reassert itself. This might create some problems further down the line so needs monitoring.

Option 3: Independence

Taking option 2 to the extreme you might even separate the teams completely. Again there are plus and minuses.

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On the one hand the teams are completely independent, they can move at their own pace, with their own priorities, value is clearly attributed and there is now resilience in the system and risk is reduced.

However, there is duplication. Not only does this mean more work it means that there may be inconsistencies, a client recognised by Trading might not be recognised by Yet Another.

Both options 2 and 3 demand larger teams and this option might requires more people overall. One can’t be sure because teams might come up with innovative solutions or come up with some new mechanism for sharing.

I’m sure some readers will discount this option very quickly but there are big benefits to complete independence – particularly when teams are separated geographically (e.g. Trading in London, Some Other in Frankfurt and Yet Another in Singapore) or when they are addressing different markets. One of the dangers of shared modules is that they become bloated by generic features nobody really wants but someone has to pay for.

This approach might also be advantageous when the company is in a growth and innovation mode. Let each team grow as fast as they can and innovate. In time a “winner” might emerge or common elements appear naturally.

Another variation on option 3 would be to have one team take the lead. Say Trading, this would be a larger team who developed the share services as part of their business facing work. But they would not “genericise” those services. The other, smaller teams, would do what they needed, when they needed, to service their own value streams.


That is three options. I could come up with some more, none is perfect. The important things are:

  • Create a clear way for teams to see the effects of their work and share in the value.
  • Allow teams autonomy in decision making and reduce dependencies.
  • Keep it simple so everyone can see cause and effect.
  • And of course, keep the teams stable – don’t break them up.

If you have any questions about Continuous Digital and #NoProjects please mail them over and I’ll do my best to answer them in this blog.

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Subscribe to my newsletter & receive a free eBook “Xanpan: Team Centric Agile Software Development”

The post How should we organize our teams? appeared first on Allan Kelly Associates.