The good news - everyone is onto agile development these days.
The bad news - many are onto agile development without knowing what it fully entails or how to get the best out of it.
One of my biggest bugbears is the myth of delivering a faster, cheaper and better outcome with agile development, and here is why.
Origins of agile development
The agile manifesto is well-known within the agile community. Many practices in agile development are heavily influenced by “lean manufacturing”.
Both methods adhere to a similar philosophy of waste reduction. However, the two differ in execution primarily because “lean manufacturing” produces physical goods while “agile development” produces digital products and services.
By reducing waste, lean manufacturing produces higher-quality goods at a lower cost. Which begs the question, “Is agile development faster, cheaper and deliver better outcome through waste reduction?”
The myth of faster, cheaper and better outcome
Yes. It is. But it is also easy to do agile development without waste reduction.
This happens when the delivery team or agile project leader is inexperienced. If this is the case, you should consider reading this and sending them for proper training.
In most situations, stakeholders or product owners don’t really understand the implications of agile development. They believe that agile development is something for the delivery team to adopt and execute, while they can remain as status quo. Unfortunately, nothing can be further from the truth.
For agile development to be effective, stakeholders and product owners have to reduce wastage by changing their behaviours and provide a conducive environment for the delivery team. Otherwise, teams should stick with traditional waterfall development.
Here are seven types of wastage teams should eliminate to maximise the potential of agile development.
Seven types of wastage teams need to eliminate in agile development
Wastage 1: Partially completed work (aka work-in-progress, WIP)
WIP refers to detailed documentation, wire-frames and plans that are yet to be implemented as codes. Until they have been implemented, these are classified as WIP. WIP worsens task switching, waiting time and the possibility of rework. Unfortunately, human craves certainty and planning gives assurance. Some stakeholders and product owners require more assurance than others. WIP is an unavoidable evil, so strive to keep it low. The amount of waste you can reduce depends on the risk appetite of your stakeholders.
Wastage 2: Over processing
Do not spend too much time on refining proxies such as plans, documentation and wire-frames. Unfortunately, when organisations are structured as functional groups, functional specialists tend to over process because they are appraised by their ability to do so. Planners are evaluated by their detailed and exhaustive plans, business analysts are measured by the thoroughness of their requirement documentation, and designers are… you get the idea.
The agile delivery team will not be able to eliminate this systemic waste. It requires organisational restructuring by the senior management to align rewards and incentives throughout the organisation. Mission or task focussed teams should be prioritised over function centric teams.
Wastage 3: Task switching
Another unintended consequence of having functional groups is the tendency to assign each functional specialist to multiple projects.
Digital delivery activities are highly abstract and require creativity. Switching across tasks incur waste due to context-switching. It cost about 15 minutes to interrupt and resume a task.
Another common reason for task switching is meetings. If you must have meetings, always move them to the beginning or end of the day to minimise waste to the entire team.
Wastage 4: Waiting time
Waiting time can be disproportionately high when teams are distributed across different time-zones or physical locations.
Imagine a scenario where a team needs the product owner to clarify user stories and validate their work only when it’s fully completed. This impedes the team’s ability to get quick feedback from the product owner during reviews. No or slow feedback leads to little or no improvements. This, in turn, leads to persistent defects and repeated reworks.
Wastage 5: Defects (rework)
Defects lead to more defects. The longer it takes to detect defects, the more wastage will be incurred on reworking and rectifying the defects.
Here’s a possible solution: shorten the feedback loop and rectify early. Daily stand-up meetings, sprint reviews and retrospective sessions are the best avenues to obtain feedback, rectify defects and drive improvements. Unfortunately, these sessions are often underutilised. An agile team requires a safe environment to share critical and constructive feedback. The product owner must participate to co-create this safe space.
Wastage 6: Hand-offs
Every time a deliverable or a project is handed-off across roles, wastage happens. Tacit knowledge is often lost in the process of handing off. This leads to more delays and defects. It is foolish to incur “handing off” cost in favour of higher utilisation of people.
Wastage 7: Overproduction
Overproduction or developing features that are not needed by the users is the final type of wastage. The best way to prevent overproduction is to build the smallest possible feature or product (MVP) and validate it before building a bigger and better version.
Unfortunately, overproduction often happens because of product arrogance. Product owners and other stakeholders often overly certain of their ideas and hypothesis and choose to skip the MVP to invest in a full-blown product.
Of all the wastage, overproduction is the worst because it exacerbates all other forms of wastage.
Agile development makes these wastages visible, so that product owners and stakeholders can eliminate them. Otherwise, it is just another fancy idea that produces more noise than substance.
I hope this article broadens your perspective on what is essential in agile development and how it can work better. Reach me at steven_koh@tech.gov.sg for comments and feedback.
This article was first published by the Government Technology Agency of Singapore on Feb 16, 2019. The opinions expressed in this publication are those of the authors. They do not purport to reflect the opinions or views of Bank of Singapore Limited or its affiliates.
Disclaimer applicable to recommendation
IMPORTANT INFORMATION:
The contents of this presentation have not been prepared or reviewed by Bank of Singapore Limited (the “Bank”). The Bank is not responsible for the accuracy or completeness of the information contained in this presentation which may change without prior notice. If you have any questions regarding the presentation, please refer your questions to the presenter. This presentation may contain views which are not representative of the views of the Bank, and such views may have been derived without discussion, consultation or agreement with the Bank. You will need to decide as to whether or not the contents are suitable for you. When you are in doubt, please seek your own independent financial, legal, tax or other advice as you deem fit. Neither the Bank nor any of its officers accept any liability for any loss whatsoever arising out of or in connection with your use of the information in the presentation.
Cross-Border Marketing
Australia: Bank of Singapore Limited (i) is exempt from the requirement to hold an Australian financial services (AFS) licence under the Corporations Act 2001 (Cth) in respect of all financial products or financial services it provides in accordance with ASIC Class Order 03/1102 (as continued in force by ASIC Corporations (Repeal and Transitional) Instrument 2016/396) to any person in Australia who is a wholesale client, and (ii) is regulated by the Monetary Authority of Singapore under Singaporean laws which differ from Australian laws. Brunei: This document has not been delivered to, licensed or permitted by the Autoriti Monetari Brunei Darussalam, the authority as designated under the Brunei Darussalam Securities Markets Order, 2013 and the Banking Order, 2006; nor has it been registered with the Registrar of Companies, Registrar of International Business Companies or the Brunei Darussalam Ministry of Finance. The products mentioned in this document are not registered, licensed or permitted by the Autoriti Monetari Brunei Darussalam or by any other government agency or under any law in Brunei Darussalam. Any offers, acceptances, sales and allotments of the products shall be made outside Brunei Darussalam. Hong Kong SAR: Bank of Singapore Limited is an Authorized Institution as defined in the Banking Ordinance of Hong Kong (Cap 155), regulated by the Hong Kong Monetary Authority in Hong Kong and a Registered Institution as defined in the Securities and Futures Ordinance of Hong Kong (Cap. 571), regulated by the Securities and Futures Commission in Hong Kong. Indonesia: The offering of the investment product in reliance of this document is not registered under the Indonesian Capital Market Law and its implementing regulations, and is not intended to constitute a public offering of securities under the Indonesian Capital Market Law and its implementing regulations. According, this investment product may not be offered or sold, directly or indirectly, within Indonesia or to citizens (wherever they are domiciled or located), entities or residents, in any manner which constitutes a public offering of securities under the Indonesian Capital Market Law and its implementing regulations. Japan: The information contained in this document is for general reference purposes only. It does not have regard to your specific investment objectives, financial situation, risk tolerance and particular needs. Nothing in this document constitutes an offer to buy or sell or an invitation to offer to buy or sell or a recommendation or a solicitation to buy or sell any securities or investment. We do not have any intention of conducting regulated business in Japan. You acknowledge that nothing in this document constitutes investment or financial advice or any advice of any nature. Malaysia: Bank of Singapore Limited does not hold any licence, registration or approval to carry on any regulated business in Malaysia (including but not limited to any businesses regulated under the Capital Markets & Services Act 2007 of Malaysia), nor does it hold itself out as carrying on or purport to carry on any such business in Malaysia. Any services provided by Bank of Singapore Limited to residents of Malaysia are provided solely on an offshore basis from outside Malaysia, either as a result of “reverse enquiry” on the part of the Malaysian residents or where Bank of Singapore Limited has been retained outside Malaysia to provide such services. As an integral part of the provision of such services from outside Malaysia, Bank of Singapore Limited may from time to time make available to such residents documents and information making reference to capital markets products (for example, in connection with the provision of fund management or investment advisory services outside of Malaysia). Nothing in such documents or information is intended to be construed as or constitute the making available of, or an offer or invitation to subscribe for or purchase any such capital markets product. Myanmar: The provision of any products and services by Bank of Singapore Limited shall be solely on an offshore basis. You shall ensure that you have and will continue to be fully compliant with all applicable laws in Myanmar when entering into discussion or contracts with Bank of Singapore Limited. Oman: This document does not constitute a public offer of investment, securities or financial services in the Sultanate of Oman, as contemplated by the Commercial Companies Law of Oman (Royal Decree No. 4/1974), Banking Law of Oman (Royal Decree No. 114/2000) or the Capital Market Law of Oman (Royal Decree No. 80/1998) and the Executive Regulations of the Capital Market Law (Ministerial Decision No. 1/2009) or an offer to sell or the solicitation of any offer to buy non-Omani investment products, securities or financial services and products in the Sultanate of Oman. This document is strictly private and confidential. It is being provided to a limited number of sophisticated investors solely to enable them to decide whether or not to make an offer to invest in financial products mentioned in this document, outside of the Sultanate of Oman, upon the terms and subject to the restrictions set out herein and may not be reproduced or used for any other purpose or provided to any person other than the original recipient. Additionally, this document is not intended to lead to the making of any contract within the territory or under the laws of the Sultanate of Oman. The Capital Market Authority of Oman and the Central Bank of Oman take no responsibility for the accuracy of the statements and information contained in this document or for the performance of the financial products mentioned in this document nor shall they have any liability to any person for damage or loss resulting from reliance on any statement or information contained herein. Russia: The investment products mentioned in this document have not been registered with or approved by the local regulator of any country and are not publicly distributed in Singapore or elsewhere. This document does not constitute or form part of an offer or invitation to the public in any country to subscribe for the products referred to herein. South Korea: The document does not constitute an offer, solicitation or investment advertisement to trade in the investment product referred to in the document. The Philippines: The information contained in this document is not intended to constitute a public offering of securities under the Securities Regulation Code of the Philippines. Dubai International Financial Center (DIFC): Bank of Singapore Limited has a branch registered in the Dubai International Financial Centre ("DIFC") which is regulated by the Dubai Financial Services Authority (“DFSA”). Bank of Singapore Limited (DIFC Branch) is not a financial institution licensed in the United Arab Emirates outside of the DIFC and does not undertake banking or financial activities in the United Arab Emirates nor is it licensed to do so outside of the DIFC. This material is provided for information purposes only and it is general information not specific in any way to any particular investor, investor type, strategy, investment need or other financial circumstance. As such this information is not financial advice or a financial promotion, nor is it intended to influence an investor's decision to invest. It is not to be construed as an offer to buy or sell or solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy in any jurisdiction. The material is only intended for persons who fulfill the criteria to be classified as “Professional Clients” as defined under the DFSA rules and should not be reviewed, received, provided to or relied upon by any other person. United Arab Emirates (U.A.E): The information contained herein is exclusively addressed to the recipient. The offering of certain products in this document has not been and will not be registered with the Central Bank of United Arab Emirates or Securities & Commodities Authority in the United Arab Emirates. Any products in this document that are being offered or sold do not constitute a public offering or distribution of securities under the applicable laws and regulations of the United Arab Emirates. This document is not intended for circulation or distribution in or into the UAE, other than to persons in the UAE to whom such circulation or distribution is permitted by, or is exempt from the requirements of, the applicable laws and regulations of the United Arab Emirates. The distribution of the information contained herein by the recipient is prohibited. Where applicable, this document relates to securities which are listed outside of the Abu Dhabi Securities Exchange and the Dubai Financial Market. The Bank of Singapore Limited is not authorized to provide investment research regarding securities listed on the exchanges of the United Arab Emirates which are outside of the DIFC. United Kingdom: In the United Kingdom, this document is being made available only to the person or the entity to whom it is directed being persons to whom it may lawfully be directed under applicable laws and regulations of the United Kingdom (such persons are hereinafter referred to as ‘relevant persons’). Accordingly, this document is communicated only to relevant persons. Persons who are not relevant persons must not act on or rely on this document or any of its contents. Any investment or investment activity to which this document relates is available only to relevant persons and will be engaged in only with relevant persons. Relevant persons in receipt of this document must not distribute, publish, reproduce, or disclose this document (in whole or in part) to any person who is not a relevant person. United States of America: This product may not be sold or offered within the United States or to U.S. persons. In Hong Kong, Bank of Singapore Limited is a branch of Bank of Singapore Limited incorporated in Singapore with limited liability.
© 2019 Bank of Singapore Limited. All rights reserved.
Version: December 2019