Rapid Deployment of Planning Models Using Scrum Making a Case for More Agility in Implementations By Mitch Paioff www.mitchpaioff.com

February 26, 2013 Copyright 2013

Rapid Deployment of Planning Models Using Scrum

1. Table of Contents 1.

Table of Contents __________________________________________________ 2

2.

Background ______________________________________________________ 3

3.

2.1

Purpose of this document _________________________________________________ 3

2.2

About the Author ________________________________________________________ 3

What is Scrum? ___________________________________________________ 4 3.1 Scrum Roles ____________________________________________________________ 4 3.1.1 ScrumMaster _____________________________________________________________ 4 3.1.2 Product Owner ____________________________________________________________ 4 3.1.3 Development Team ________________________________________________________ 4

4.

3.2

Scrum Activities __________________________________________________________ 5

3.3

Artifacts ________________________________________________________________ 5

Using Scrum to Implement Planning Models _____________________________ 6 4.1

A Scenario for Using Scrum ________________________________________________ 6

4.2

Prioritizing the Deliverables ________________________________________________ 6

5.

Conclusion _______________________________________________________ 8

6.

Suggested Reading ________________________________________________ 9

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Rapid Deployment of Planning Models Using Scrum

2. Background As an IBM Cognos Planning and TM1 consultant for the past thirteen years, I have managed the implementation of more than forty planning systems. These systems were developed for a variety of clients:    

In different industries In different geographical locations With unique objectives In a variety of hardware and software environments

Despite these differences, there are many attributes that every planning implementation has in common. These include:       

Budget constraints Time constraints Competing priorities Competition for resources Risk of rework Risk of scope creep Communication challenges

Most planning implementations follow the standard design/build/test scenario that many of us in this business have experienced. Since planning models by their very nature are highly customized, the likelihood that requirements will change during the course of an implementation is very high as well. Many stakeholders will have their own wish lists. It is always challenging for the project team to build planning models that will satisfy everyone. If we assume that changing requirements during an implementation are inevitable, then that begs the following questions:  

Why do we spend so much time during the initiation phase documenting requirements that we will know will change over time? Why do we spend so much time developing design documents that attempt to identify every dimension, hierarchy, cube, process, calculation, and user interface if we know for sure those will change as well?

2.1 Purpose of this document The purpose of this document is to present a case for using Scrum best practices for implementing planning models. By using Scrum, the incidents of rework, scope creep, and project delays can be mitigated. 2.2 About the Author Mitch Paioff is an IBM Certified Solution Expert in Cognos 8 Planning, an IBM Certified Developer in Cognos TM1, a Certified ScrumMaster, and a Project Management Professional. His many years of experience developing planning models give him a unique perspective on project management methodologies. 02/26/2013 Page 3 of 9

Rapid Deployment of Planning Models Using Scrum

3. What is Scrum? Scrum is an agile project management approach that is based on a set of core values, principles, and practices. It has been adopted by many large and small organizations worldwide. It is used to develop innovative products and services. Many IT departments use Scrum to develop new software applications. These applications can include user interfaces, web apps, and product enhancements. The benefits of using Scrum include reduced rework, reduced cost, faster deployments, and happier customers. In fact, Scrum is focused on value creation for customers. Scrum practices can be viewed this way: 1. Roles a. ScrumMaster b. Product owner c. Development team 2. Activities a. Sprints b. Sprint planning c. Daily Scrum d. Sprint execution e. Sprint review f. Sprint retrospective 3. Artifacts a. Product backlog b. Sprint backlog c. Deliverable products 3.1 Scrum Roles The Scrum approach starts with one or more Scrum teams. Each team has a ScrumMaster, a Product Owner, and development team.

3.1.1 ScrumMaster The ScrumMaster assists the team by advocating Scrum values and principles. He provides vision and leadership throughout the product lifecycle.

3.1.2 Product Owner The Product Owner represents the interests of the customer. He has the authority to determine which features and functionality to build into the product, and decides the priority of each.

3.1.3 Development Team The Scrum team can consist of members from a variety of backgrounds. These can include programming, database administration, functional users, and outside consultants. The typical size of the Scrum team is usually five to nine individuals, with seven being considered most common. 02/26/2013 Page 4 of 9

Rapid Deployment of Planning Models Using Scrum 3.2 Scrum Activities Scrum activities are time-boxed into intervals called sprints. Two weeks is considered an ideal length for a sprint. A sprint is an activity that produces one or more deliverables to the customer. Those deliverables don’t necessarily mean “go live”. It just means that one or more segments of the end product have been substantially completed. Sprints involve planning, execution, and reviews, to name a few. Another activity is a “daily Scrum” meeting that lasts about 15 minutes where progress is discussed and actions are decided. This is also known as the daily stand-up. The Product Owner determines the order in which deliverables will be scheduled as part of a Scrum. This process is called grooming. 3.3 Artifacts The primary input of Scrum is called the backlog. The backlog is a prioritized list of items that the team will work on during the product lifecycle. The primary output of each sprint is one or more deliverable products (web apps, data warehouses, etc.). Now that we have reviewed the basic elements of Scrum, let’s see how this approach can be used to create better planning models.

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Rapid Deployment of Planning Models Using Scrum

4. Using Scrum to Implement Planning Models Imagine for a moment that you are a consultant assigned to implement a complex planning system for a customer in the healthcare industry. Your first instincts might be to:       

Interview key stakeholders Determine requirements Prepare a high-level scoping document Obtain buy-in from the client for the scoping document Prepare a detailed design document Form a development team Begin the implementation

All of us in this business have been through this process. And we all know the risks involved. Changing requirements. Scope creep. Product delays. 4.1 A Scenario for Using Scrum Some organizations have never heard of Scrum. Proposing a Scrum framework around which planning models are to be developed might not be greeted with warm responses. Here is the hypothetical scenario. You meet with the project sponsor, CFO William Smith of Generic Healthcare. You explain to him that you want to implement his planning system using Scrum. You tell him that you (as the consultant) will be the ScrumMaster. You will form a Scrum team comprised of two IT resources, three functional personnel, and the CFO. You will facilitate the daily Scrums and make sure the project is on track. Then you tell the CFO that he can designate a Product Owner. The Product Owner might be a senior financial analyst. The team will determine the deliverables (backlog), but the Product Owner gets to decide which deliverables are done first (prioritization). Mention that the team meets daily for 15 minutes. And describe the concept of sprints. The CFO may or may not be open to this approach. You can stress the importance of reduced risk, reduced costs, and the benefits of having a customer-driven project. The CFO, as the project sponsor, would be encouraged to attend the sprint retrospective meeting at the end of each sprint. Will the CFO agree with your proposal? Here is another way to present your ideas. 4.2 Prioritizing the Deliverables Scrum operates by taking smaller pieces of project incrementally and then delivering the results to the Product Owner at the end of each sprint.

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Rapid Deployment of Planning Models Using Scrum Your contract with Generic Healthcare specifies that you, as the consultant, will build five planning models as part of the engagement:     

Sales Forecast Payroll and Headcount Capital Budgeting and Depreciation Department Expenses Income Statement and Balance Sheet

Let’s say the estimated duration of the entire project is 16 weeks. You tell the CFO that the effort for each of the planning models mentioned above will be timeboxed into sprints of two weeks each. That’s a total of ten weeks. The Scrum team will meet daily to determine whether or not the deliverables are on track. The Product Owner gets to decide which model is built first. The CFO might be desperate for a sales forecast model that he can use right away. Or perhaps capital budgeting is high on his list. The CFO would provide frequent input to the Product Owner. Assuming each sprint is completed on time, the project will be essentially done in ten weeks. That leaves time for planning the “go live” event, and any contingencies. Scrum is a “fail-fast” approach to implementations. If the model builders are not on track with customer requirements, then that situation will be uncovered right away using the daily Scrum. Better to fail early in the project than further on down the road.

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Rapid Deployment of Planning Models Using Scrum

5. Conclusion Scrum can be used to reduce risks and expedite development in projects where planning models are being built. The concepts of frequent communications, customer-focused deliverables, and failing quickly increase the likelihood of project success.

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Rapid Deployment of Planning Models Using Scrum

6. Suggested Reading Both of these books are excellent:

Essential Scrum by Kenneth S. Rubin, Addison-Wesley, Upper Saddle River, NJ. Copyright 2013. This book takes you step-by-step through the Scrum process.

http://www.amazon.com/Essential-Scrum-Practical-Addison-WesleySignature/dp/0137043295/ref=sr_1_1?s=books&ie=UTF8&qid=1360557766&sr=11&keywords=essential+scrum

The Scrum Field Guide by Mitch Lacey, Addison-Wesley, Upper Saddle River, NJ. Copyright 2012. This book is more scenario-oriented, presenting challenging situations and suggesting ways to deal with them. http://www.amazon.com/Scrum-Field-Guide-PracticalDevelopment/dp/0321554159/ref=sr_1_1?s=books&ie=UTF8&qid=1360557796&sr=11&keywords=scrum+field+guide

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