challenges with agile offshoring
DESCRIPTION
Findings, advice and best pratctices from agile offshoring of software development.TRANSCRIPT
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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: [email protected]• Slideshare: slideshare.net/oveholmberg• Feedback please!• Questions…
Thanks for listening!