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My challenges with Agile offshoring so far

2013-05-07

Ove Holmberg, OHC

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Me

• Developer, project manager, agile coach.• Pragmatic agile evangelist since 2002.• As a client: worked 2 years with a Agile PMO

setup together with a russian partner. Fail!• As a vendor: worked 1,5 years with delivery of e-

com and CMS projects to Scandinavia from India. Fail!

• Today: Setting up the biggest e-com site in Europe with Agile offshoring. To be continued…

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Agile

1. Working software over comprehensive documentation

2. Customer collaboration over contract negotiation

3. Responding to change over following a plan

4. Individuals and interactions over processes and tools

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Why agility?

• Speed (Time to market)– MVP– Fail early (fast and wrong)

• Business involvment• Releases creativity• Focus on value

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Offshoring

• Wikipedia: Offshoring is defined as the movement of a business process done at a company in one country to the same or another company in another, different country.

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Why offshoring?

• Reduced cost• Avoid repetitive work• Focus on core• Flexible people planning• Speed to market• Access to experts

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Key challenges with AO

1. Governance

2. People

3. Team

4. Culture

5. Partner

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Challenge 1: Governance

• Do– Reports with KPIs– RAG automation– Meetings– Travel– Coaching (Audits) – Doubling– Repeat!

• KPI: Amber is back to green within one week.

Beware:The fear of red

Note:Gov is increased

by 200% ifoffshoring

Example:The 10 newdevelopers

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Challenge 2: People

• Watch out for– 20% attrition– Sudden floating holidays– Trainees– Visa problems– Annual appraisals– Marriages– Titles– Etiquette– Loyalty

• Communication throughput 20%• KPI: <10% resignations

Example:The managerI sent home

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Challenge 3: Team

• Sports in India• 10% rule• Do: Project understanding (chartering)

– Vision– Expectations– Objectives, effects– Priorities

• KPI: From Forming to Performing within 6 months.

Example:The Indianteam board

Example:The alibi coach

In China

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Challenge 4: Culture

• The genus perspective challenge• Do: Invest time in culture• KPI: Hofstaede improvement…

Example:The female

Coach in Ukraine

Example:The operations

Team in Dalsland

Example:The Boeing

dilemma

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Hofstede cultural theory

PDI = Power Distance

IDV = Individualism

MAS = Masculinity

UAI = Uncertinity avoidance

LTO = Long term orientation

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Challenge 5: The partner

• Do: Use more than 1 partner• Negative: Them, the russians• Positive: WE• Discipline/good habits • Do: Delivery Focus Areas survey• KPI: Transparency in reports and

upcoming issues.Beware:

CMMI and Agile in theSame sales

deck..

Example:The russianteam that

disappeared

Beware:Corruption

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Do: Iterative risk management

• Daily focus on top risk• Weekly focus on top 5 risks• Monthly focus on top 10 risks• Include risks in retro and planning• Include risks in RAG definition• A common learning risk log:

Title Descr Mitigation Challenge

Std Culture Work log Impact Probab. Rank Resp

The bus May hit a key person

Work 24*7, go by taxi.

People Yes Masculinity

Own driver hired

50% 10% 5% John

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Recommendations• Don’t outsource core stuff such as customer facing and complex

business focused systems - do standard systems.• Don’t start with a complex project – do a simple with an

objective on the process.• Don’t expect enterprise ROI on short term (1 year) basis - focus

on sustainability.• Don’t be reactive – enforce a iterative risk

management process.• Don’t say them and us – invest in understanding

each others cultures.

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The offshoring amendment to Agile

• Individuals and interactions over processes and tools

• Processes and tools first – then Individuals and interactions

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• Twitter: @ovehol• Email: ove.holmberg@gmail.com• Slideshare: slideshare.net/oveholmberg• Feedback please!• Questions…

Thanks for listening!