Foreword 11Preface 13Introduction 16The Lost Potential of Agile Development 16Missed Business Expectations 18A New Approach to Agile Planning 19Addressing Traditional Software Development Challenges 21Motivation and Innovation 22Your Organization 22Chapter 1: The Persistence of Waterfall Planning 23Introduction to AccuWiz 23The New COO 24Product Management 24PMO 25Engineering 25Customer Perspective 26Synopsis 26Summary 27Chapter 2 - Why Agile has Struggled 29Agile Development Fundamentals 30The Agile Revolution 30Scrum 31Kanban 34Barriers to Real Agile 35Schedule Pressure 35The "Motivation" Factor 37The Mythical Product Owner 39Feature Planning 40Agile Scaling Frameworks 41Summary 42Chapter 3: Embracing Software Development Variance 43The Cone of Uncertainty 43Software Development Estimation Variance Explained 44Making and Meeting Feature Commitments 45How Other Departments Meet Commitments 47Agile Development Implications 48Summary 48Chapter 4: Cost of Delay 49Weighted Shortest Job First (WSJF) 50Cost of Delay Basics 50Example 52WSJF Proof 54CoD and Net Present Value (NPV) Prioritization Methods 56Non-linear Income Profiles 57CoD for Non-Linear Cumulative Income Profiles 58Payback Period CoD Method 58Third-year Income Slope CoD Method 58CoD NPV Method 63CoD Computation Method 64WSJF and Traditional Finance 66ROI 66Investment Rate of Return (IRR) 67WSJF versus ROI Prioritization 67Summary 69Chapter 5: Investment Fundamentals 70Investments, Initiatives and Programs 70Investment Hierarchy 71AccuWiz Investment Examples 74Portfolio Allocation 75Investment Forecasts 76Development Effort and Cost 76Investment Income Forecasts 78Investment Backlogs 81Investment WIP 82Investment Backlog WIP 82Investment WIP 83Technical Debt Investments 84Summary 86Chapter 6: Maximizing Investment Value 87Great Products 87Business Model Value Considerations 89Stakeholder Value Analysis 90Gilb Stakeholder Definition 90Ford's Big Mistake 92Trucking Fleet Management Example 93Five Whys 95User Scenarios 96Summary 97Chapter 7: Planning High-Value Investment Features 99Avoiding the Feature Pit 99Feature ROI 100Summary 104Chapter 8: Releasing Investments 105Release Opportunity Cost 105Investment Release Bundling 108Investment Pricing 108Lack of Customer Acceptance 110Release Overhead Costs 111Overcoming Modular Release Challenges 113Architecture for Modular Deployment 113Configuration Management 113Release Investment Prioritization 114Reducing Software Inventory Costs 115Summary 118Chapter 9: Meeting Investment Targets 120Meeting Commitments 120Investment Teams 120Managing Investment Scope 123Managing Sales Requests 127Summary 129Chapter 10: Investment Planning Template 130Investment Description 130Proxy Business Case 130Product Stakeholder Analysis 132Customer Product Stakeholders 132Internal Product Stakeholders 132Constraints 132Competition 133Acceptance Criteria 133Go-to-Market Plan 134Pricing Model 134Deployment Model 134Sales Channels 134Investment Targets 134Development Cost 134Cycle Time 134Income Projections 134WSJF 136Assumption Validation 136Summary 138Chapter 11: Managing the Agile Roadmap 139The Agile Roadmap Management Database 139The Agile Technology Roadmap 141Stages of Technology Acquisition 142Investment Technology Roadmaps 143Summary 143Chapter 12: Maximizing Investment Development Productivity 145Measuring Software Productivity 145Cost of Quality (CoQ) 146Cost of Quality and Software Productivity 147Sources of Software Rework 149Agile Cost of Quality 150Reducing Agile User Story Rework 152Reducing Agile Defect Rework 153Agile Cost of Quality Example 154Summary 155Chapter 13: Motivating Agile Teams 156Background 156Why You're the Only Smart One in Your Organization 157Consequences and Behavior 158Performance and Organizational Culture 159Behavior and Software Quality 163Intrinsic Motivation 164Agile and Motivation 165Measuring Motivation 167Motivation Advice 169Summary 171Chapter 14: Innovating with Investments 173Innovation - A Working Definition 174Investments as an Innovation Vehicle 175Why Your Organization Can't Innovate 176An Organizational Behavior Model of Innovation 178An Innovation Tale of Two Companies 181Creating a Culture of Innovation 184Summary 188Chapter 15: AccuWiz Gets it Together 189The Founder Meeting 189The Announcement 190Product Stakeholder Analysis 191Creating the Investment Backlog 192Customer Management 195Investment Development 195Project Management 196Managers 197Executive Team 198Innovation is Revived 199Synopsis 199Chapter 16: Getting it Together in your Company: A Practical Guide 200Step 1: Organizational Support 200Influence Strategy 204Step 2: Stakeholder Value Analysis 205Step 3: Stakeholder Research 206Step 4: Stakeholder Interviews 207Step 5: Investments 207User Scenarios 208Feature Definition 209WSJF Screening 209Step 6: Initial Roadmap 210Resource Allocation 211Step 7: Investment Planning 214Agile Roadmap Alignment Meeting 215Program Review 216Step 8: Consequence Alignment 217Summary 220Appendix 1: General Cost of Delay Formula 221Reinertsen WSJF 222Income Curve Approximation 223Summary 225Appendix 2: Investment Income Profile Forecasts 226Appendix 3: Release Cycle Productivity Formula 228Appendix 4: Rework and Productivity 232Appendix 5: Innovation Behavior Survey 233Glossary 238Index 246
ROBERT WEBBER'S executive experience as VPs of engineering and product management and as a CEO, combined with years of consulting with Fortune 500 companies, provide the broad perspective to create a win-win solution for business and product development that finally achieves the promises of Agile development. Organizations can increase R&D ROI by over 25% using existing Agile development capabilities. Break the chains of waterfall planning!