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 Business-Driven
IT-Wide Agile (Scrum)
and Kanban (Lean)
Implementation
An Action Guide for Business and IT Leaders

Andrew T. Pham and David K. Pham

Foreword by Jack Bergstrand,
Former CFO of the Coca-Cola Beverages and CIO of the Coca-Cola Company
Foreword by Adam Warner, IT Management, ESC
 Business-Driven
IT-Wide Agile (Scrum)
and Kanban (Lean)
Implementation

An Action Guide for Business and IT Leaders

 Business-Driven
IT-Wide Agile (Scrum)
and Kanban (Lean)
Implementation

An Action Guide for Business and IT Leaders

Andrew T. Pham and David K. Pham

Foreword by Jack Bergstrand,

Former CFO of the Coca-Cola Beverages and CIO of the Coca-Cola Company

Foreword by Adam Warner, IT Management, ESC

CRC Press
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To Jessica, Tiffany, and Kym, with love
Contents

Foreword by Jack Bergstrand.......................................................... xiii

Foreword by Adam Warner................................................................xv
Preface: What Is This Book About?................................................. xix
Acknowledgments........................................................................... xxi
About the Authors......................................................................... xxiii

Section Iâ•…SETTING UP THE STAGE

â•⁄ 1 Ineffectiveness of IT Software Project Management
and Development: What Can We Do about It?..............................3
Why Are Command-�and-�Control and Waterfall Life Cycle
Approaches Harmful When Used Together?...............................................4
What Can We Do about It?..........................................................................6
â•⁄ 2 Executive Summary of Agile (Scrum) and Kanban (Lean)............7
So, What Is Agile?........................................................................................7
Agile Manifesto.....................................................................................7
Example of a Known Agile Process: Scrum........................................9
Agile Practices in a Nutshell..............................................................11
So, What Is Lean and What Is Kanban?....................................................12
So, What Is Lean?...............................................................................12
So, What Is Kanban?..........................................................................14
Kanban Practices in a Nutshell..........................................................22
Similarities between Agile/�Scrum and Kanban........................................22
Summary....................................................................................................24
Endnotes.....................................................................................................24

vii
viii ◾ Contents

â•⁄ 3 Why Agile Alone May Not Be Enough or the Right Solution,
and Why Implementing Agile or Kanban without Good
Business Objectives Will Normally Fail......................................27
Why Agile Alone May Not Be Enough (Preliminary Case Study #1).......27
Initial Planning...................................................................................28
Pilot Project Team..............................................................................28
Initial Project Team Training..............................................................28
On-Site Scrum Workshop...................................................................29
Second Sprint: Another Hit for the Team!.........................................30
Third Sprint: Things Started to Rumble.............................................30
Fourth Sprint: Things Became Worse and Worse.............................30
Fifth Sprint: Project Was Cancelled!...................................................30
Lessons Learned.................................................................................30
From Scrum to Kanban (Preliminary Case Study #2)...............................32
Context...............................................................................................32
Information Technology.....................................................................33
There Is Nothing They Do Not Have................................................33
Feedback from the Trenches..............................................................33
Finally the Truth Came Out...............................................................33
Kanban Came to the Rescue..............................................................34
Pitfalls of New Software Processes...........................................................34
Release and Sprint Planning..............................................................35
Scrum Ceremonies.............................................................................36
First Month..........................................................................................36
Change in Product Owner.................................................................36
Different Understanding of Agile and Scrum....................................37
Building New Expectations...............................................................37
Nice Surprise......................................................................................38
Agile Started to Rumble.....................................................................38
Back to Waterfall and Command and Control..................................39

Section IIâ•…BUSINESS GOALS–Â�DRIVEN IT-Â�WIDE SOFTWARE

DELIVERY IMPROVEMENT FRAMEWORK
â•⁄ 4 Seven-Â�Step Software Delivery Improvement Framework...........43
Description.................................................................................................43
Step 1: Identify the Business Sponsor and Her or His Needs
and Goals...........................................................................................43
Identify the Business Sponsor....................................................43
Identify Business Problems and Issues......................................44
 Contents ◾ ix

Identify Business and IT Goals..................................................45

Identify Measurements...............................................................45
Step 2: Perform Environment Boundary Identification and
Assessment.........................................................................................45
Identify the Boundary................................................................46
Environment Assessment............................................................46
Findings Summary......................................................................46
Step 3: Envision Scenarios and Risks................................................46
Step 4: Detail the Chosen Action Plan..............................................47
Step 5: Implement the Chosen Action Plan.......................................47
Step 6: Inspect the Implementation’s Progress..................................47
Step 7: Adapt the Chosen Action Plan (as Needed)..........................47
Summary....................................................................................................48
â•⁄ 5 Step 1: Identify the (Business) Sponsor and Her or His
Needs and Goals.........................................................................49
Identify the (Business) Sponsor(s).............................................................49
Identify the Sponsor(s)’ Needs and Goals................................................50
Summary....................................................................................................52
â•⁄ 6 Step 2: Perform Environment Boundary Identification and
Assessment.................................................................................53
How to Identify the Environment Boundary............................................53
Assess the Identified Business and IT Environment................................54
Findings Summary.............................................................................56
Summary....................................................................................................56
â•⁄ 7 Step 3: Envision Scenarios and Risks.........................................63
From Goals to Action Items (in Bypassing the Assessment)....................63
How to Identify Risks (for Different Scenarios)........................................65
Scenario Consolidation..............................................................................68
Summary....................................................................................................69
â•⁄ 8 Step 4: Detail the Chosen Action Plan........................................71
Anatomy of a Detailed Scenario (Chosen Action Plan)............................71
Seven Characteristics of a Good Action Plan...........................................74
Summary....................................................................................................76
â•⁄ 9 Step 5: Implement the Chosen Action Plan................................77
Set Up the Implementation Structure........................................................77
Seven Characteristics of an Effective Plan Execution...............................78
Summary....................................................................................................79
x ◾ Contents

10 Step 6: Inspecting the Implementation’s Progress.....................81

Why Is Regular Progress Inspection Critical?............................................81
What to Inspect..........................................................................................81
At the Overall Plan Level...................................................................82
At the Action Item Level....................................................................82
Summary....................................................................................................83
11 Step 7: Adapt the Chosen Action Plan (as Needed)....................87
Different Types of Change.........................................................................87
Strategic Change.................................................................................87
Operational Change...........................................................................87
Examples of Adaptations...........................................................................88
Strategic Impact..................................................................................88
Operational Impact............................................................................88
Summary....................................................................................................88

Section IIIâ•…RETROSPECTIVES
12 Lessons Learned.........................................................................93

Section IVâ•…CASE STUDIES

Case Study 1: “Customized Agile Combined with Kanban”..............97
Step 1: Identify Business Sponsor and Her or His Needs and Goals......97
Step 2: Perform ATP’s Environment Boundary Identification and
Assessment...............................................................................................100
ATP Process Improvement Effort’s Boundary.................................100
Environment Assessment................................................................. 101
Findings Summary........................................................................... 101
Step 3: Envision ATP Scenarios............................................................... 111
Step 4: Develop the Detailed Action Plan for ATP................................. 112
Step 5: Execute the ATP Action Plan...................................................... 119
Step 6: Inspect ATP Execution’s Progress...............................................122
Identify and Mitigate Risks..............................................................122
Organize Effective Retrospectives and Learn from Their
Lessons.............................................................................................125
Inspect the Actual Budget to Watch Out for Variance....................125
Watch Out for Positive (and Less than Positive) Changes
Coming from the Different Dimensions..........................................126
 Contents ◾ xi

Step 7: Adapt the ATP Plan......................................................................126

Change from the Action Items and the Environment Reaction
to the Action Plan.............................................................................127
Change Due to Change in Business and/�or IT Strategy.................128
Lessons Learned.......................................................................................128
Case Study 2: “(Customized) Agile and Kanban Coexistence”..........131
Step 1: Identify WTR’s Business Sponsor and Her Needs and Goals....132
Mary Beckers’s Organization...........................................................132
First Preliminary Training................................................................132
Step 2: Perform WTR Environment Boundary Identification and
Assessment...............................................................................................136
Step 3: WTR Scenarios Envisioning........................................................138
Scenarios Risk Analysis....................................................................138
Step 4: Developing the Detailed Action Plan for WTR..........................139
Step 5: Execute the WTR Action Plan.....................................................139
Step 6: Inspect Progress of the WTR Action Plan.................................. 141
Identify and Mitigate Risks.............................................................. 142
Lessons from the Pilot Project’s Retrospectives...............................146
Inspect the Actual Budget to Watch Out for Variance.................... 146
Watch Out for Positive—and Less than Positive—Changes on
the Different Dimensions................................................................. 146
Step 7: Adapt the WTR Action Plan........................................................146
Changes Coming from the Action Items and the Environment
Reaction to the Action Plan.............................................................146
Organizational..........................................................................146
Process...................................................................................... 149
Change Due to Change in Business and/�or IT Strategy................. 150
Lessons Learned....................................................................................... 150

Section Vâ•…APPENDICES
Appendix A: From the Project Management Office to the Project
Delivery Office................................................................................ 155
Modify the Traditional Project Manager’s Job Description..................... 156
Project Manager’s Traditional Job Description................................ 156
Agile/Â�Lean Project Manager’s New Job Description....................... 156
Change the Way the PMO Calculates Its Project Estimate..................... 157
Appendix B: Change Management.................................................. 159
xii ◾ Contents

Appendix C: Two Most Important Tools of a Good Software

Development Infrastructure............................................................ 161
Continuous Integration............................................................................ 161
Automated Testing................................................................................... 162
Glossary...........................................................................................163
Bibliography.................................................................................... 167
Foreword

In our globally competitive and fast-changing business world, better and

more productive projects are to the twenty-�first century what better assem-
bly lines were to the twentieth century. Unfortunately, the conventional proj-
ect management approach fails to deliver on management’s initial goals an
alarming 70% of the time. Then enter Agile (Scrum) and, more increasingly,
Kanban (Lean) with all the benefits they bring along.
Imagine how much better your software team’s work would be if you
were continually able, in some cases, to act on what team members did
yesterday, what they are going to do today, and whether or not there are
any obstacles to solve. Also, imagine how much better it would be, in other
cases, if you could help improve your software team’s work by not introduc-
ing a completely new process to the team, but instead visualized their cur-
rent process while trying to optimize it with proven approaches—Kanban,
among others—coming from the best just-Â�in-Â�time system in the world, the
Toyota Production System (TPS).
As a logical sequence to their first book, Scrum in Action: Agile Software
Project Management and Development, which is geared toward project
teams, Andrew Pham and David Pham’s new book is decidedly geared
toward business and information technology (IT) executives who would like
to know how to successfully deploy Agile (Scrum) and/�or Kanban (Lean)
on a large scale to IT in their effort to increase their teams’ software deliv-
ery capability.
As a former CFO of the Coca-�Cola Beverages and CIO of the Coca-�
Cola Company, I truly appreciate Andrew Pham and David Pham for hav-
ing developed in this book a comprehensive and easy-�to-�follow guide for
busy executives. Likewise, I also truly appreciate the fact that the authors’
approach also factors in change, communication, a sense of urgency, clear
and measurable goals, political realities, and infrastructure needs—all critical
ingredients for success.

xiii
xiv ◾ Foreword

Rather than blindly deploy Agile as has been the trend during the past few
years, the authors rightly suggest that we should first assess the environment
and identify the organization’s business goals first. Only then will we know
what Agile (Scrum) and/�or Kanban (Lean) concepts or techniques we need and
how to combine them most effectively to solve our enterprise’s problems.
In my book, Reinvent Your Enterprise, I wrote that speed is the new
quality—with a spirit of action, imperfection, forgiveness, and continu-
ous improvement needed. I am glad that Andrew Pham and David Pham’s
approach also factors in a similar type of purposeful adaptation—to deliver
results by establishing a clear set of goals, assessing the environment, com-
ing up with creative solutions that are more often than not a combination
of Agile and Lean, regularly inspecting the execution’s progress, and rapidly
acting on lessons learned as well as adapting to the business’s external envi-
ronment or change in business strategy.
Incorporating Agile (Scrum) and Kanban (Lean) principles and practices
into your software development organization on a large scale and in a cre-
ative way will go a long way toward increasing value and reducing risks. For
this reason alone, you will find it—as I do—very worthwhile to spend time
reading this very practical book.
Jack Bergstrand
CEO, Brand Velocity, Inc.
Author of Reinvent Your Enterprise
Former CFO of the Coca-�Cola Beverages and CIO of the Coca-�Cola Company
October 2011
xv
Foreword

Perhaps you’re a software development director or manager who has imple-

mented Agile or Scrum successfully in your team. Then your boss, the CIO,
comes to you and says, “Your team runs so efficiently with Agile—let’s
implement it across the whole IT department!”
At first you heartily agree and are excited by the challenge and the
opportunity to drive improvement—but then reality sets in. Other groups
have much different processes that may not easily adapt to Scrum. The data
warehouse manager complains that she has constraints that can allow only a
linear development flow—requirements analysis, data modeling, ETL, report
development, user acceptance—that easily spans more than one sprint
time frame. She is highly resistant to the change and has already started to
complain to the CIO. And what about customer support? They never know
what they might be working on today much less tomorrow or the next
three weeks. How would Scrum possibly apply to them? Maybe this Kanban
approach you’ve heard of would work? What’s the right answer?
At this point hopefully you’ve come across this book by Andrew Pham
and David Pham. By reading the book, you can see their practical experi-
ence in advising organizations in the move to Agile and Kanban (Lean)
project management and software development processes.
First of all, they hammer home the timeless point that the focus of any IT
improvement effort must be to improve the business, not merely to improve
IT for IT’s sake. They never cease, and rightly so, to remind the reader that IT
exists to serve the business and that all IT improvement efforts must be
framed in terms of business goals.
From my experience in several Fortune 500 firms, I have seen personally
(on both sides) what happens when corporate IT departments don’t put the
needs of the business first. Namely, the business unit becomes disenchanted
and hires its own IT staff. Corporate IT will lose funding sources and start to
wither. It will constantly struggle to apply corporate standards and security

xvii
xviii ◾ Foreword

controls on the rogue groups. Ultimately the company’s bottom line will suf-
fer because the business units are not leveraging the economies of scale and
strategic advantage that a corporate IT group can offer.
So, instead of IT-Â�centered goals such as “increase on-Â�time delivery of
IT projects by 20%” (unless your company’s business is IT project manage-
ment), define the business need first and then define what IT needs to do to
support the goal. For instance, “To improve on-Â�time delivery of manufactur-
ing orders, increase the rate of new feature delivery in the factory schedul-
ing software project by 20% within six months.” This is the type of logic and
practicality that prevails in this book but is often missing in other books.
At the same time, the authors provide an excellent overview of both
Agile and Kanban practice and help us understand that a one-�size-�fits-�all IT
improvement effort is likely doomed to fail.
Agile, with Scrum as its most common and well-�known process, is best
suited to software development efforts where features can be designed,
built, and delivered by one non-�specialized, cross-�functional team work-
ing together. Typically these features can be completely designed, built, and
delivered within the time frame of a two- to four-�week sprint (though I and
many others do use Scrum to deliver software features on longer multi-�sprint
time frames, particularly for data warehousing).
Lean, and its most frequent incarnation, Kanban, however, allows you to
keep your existing process and specialists while still providing a framework
for improvement. To this effect, the authors do a great job of detailing the
origins of the Lean movement in manufacturing, and at Toyota in particu-
lar, highlighting the “seven wastes” that Lean tries to address. Although
meant originally for a manufacturing context, these wastes apply to soft-
ware “manufacturing” just as readily: defects, wait time, too many items in
process, and unnecessary extra features, just to name a few. If this is your
case, Kanban is a method you can apply to your existing process that limits
work in progress (WIP) to optimize workflow and reduce lead time rather
than the traditional sprints. To this point, it is not hard to see that Kanban
might work better for a software development organization with specialized
teams and a more sequential process flow, especially in the case of software
support teams.
An industrial engineer by education who progressively became special-
ized in IT team management, I also appreciate the authors’ initiative to
create a new process framework (called the soccer process framework), as
described in one of the case studies. Based on both Kanban (Lean) and
Agile practices, it provides a process for larger project teams. It is guided by
both a practical way to identify the same level of fine-�grain requirements, and by
an architectural vision, which is much needed for more complex software proj-
ects. As the authors rightly point out, both Agile and Lean (�Kanban) have some-
thing to contribute to the diverse teams that make up an IT department; it is not
an “all or nothing” proposition. The IT department must work closely with the
business first to define the business goals and assess the environment, and then
decide which processes will best meet the needs of the business.
On top of a very logical seven-�step process for IT-�wide software capability
improvement, this book also includes comprehensive advice, plans, tools, and
practical case studies. By reading the book, you will be well equipped to deter-
mine what’s best for your IT organization. I am glad to have read it and now have
it in my library.
Adam Warner
IT Management, Software Delivery
Education Service Center, Region 10
Richardson, Texas
October 2011

xix
Preface: What Is This
Book About?

The main objective of this book is to provide a practical guide to busi-

ness and IT leaders who want to improve IT capability to better serve the
business. By this, we mean the ability for IT teams to improve the pace at
which software applications can be delivered, not just on one Agile pilot
project but on all IT projects. But there lies the difficulty for IT management
to make the leap from doing Agile or Kanban (Lean) on one project to an
IT-wide effort, which requires much more than just deploying some Agile
techniques to a few people.
Likewise, rather than blindly deploy Agile to the entire IT organization
in a one-size-fits-all approach, we also show in this book how IT and busi-
ness management can work together to determine business goals that can
drive this IT-wide undertaking. IT improvement may also require leverage
of Kanban (Lean), rather than of Agile alone, to improve its ability to deliver
better and faster applications on a large scale.
While we make no claim that what we mention in this book is the
best or the only way to introduce change programs into a company,
everything in this book comes from our experience in software project
management and software delivery in the trenches within companies of
different sizes.
To make things easier for the busy IT leader and executive, we have
constructed and included in this book a few case studies, with the intent to
illustrate ideas or principles. All resemblance to a specific, real-life event or
character is, therefore, purely coincidental.
It is, as always, up to the readers to devise approaches and ideas that will
make the most sense in their specific situation.

xxi
xxii ◾ Preface: What Is This Book About?

Who Should Read This Book?

This book is for business executives, IT leaders, and senior staff interested
in introducing Agile or Kanban (Lean) to IT departments on a large scale to
better serve their business.

“A journey of a thousand miles begins with a single step.”

Lao-tzu
Chinese philosopher
Acknowledgments

First, we thank our family for all their unwavering and unconditional love
and support.
Next, our thanks go to Sharon Sukosolvisit, Sameer Bendre, Ben Oguntona,
Raj Vollala, and Greg Johnson for discussions that led to several improve-
ments in the book, and, in particular, to Jack Bergstrand, author of Reinvent
Your Enterprise, former CFO of the Coca-Cola Beverages and CIO of the
Coca-Cola Company, and to Adam Warner, who is part of IT management
at the Education Service Center, Region 10 (Texas), for having reviewed our
book and written the Forewords.
Next, we would like to thank the team at Productivity Press and, in par-
ticular, Kristine Mednansky, senior acquisitions editor and Iris Fahrer, project
editor, for all their help.
Last but not least, our thanks go to all of the authors whose works are
cited here. To those we have not mentioned, please know that we have
made every effort to trace all of the ideas and copyright holders, but if any
have been inadvertently overlooked, please let us or our publisher know so
that we can make the necessary amendments at the earliest opportunity.

Andrew T. Pham
David K. Pham

xxiii
About the Authors

Andrew T. Pham, author of Scrum in Action: Agile Project Management

and Software Development in the Real World, has trained hundreds of software
professionals and coached multiple project teams throughout the world to
Agile (Scrum) and Kanban (Lean).
An elected senior member with the prestigious IEEE (Institute of Electrical
and Electronics Engineers), Andrew Pham has held top positions in project
management, enterprise architecture and software development.
In addition, Andrew Pham is also a PMP and PMI-ACP, the Project
Management Institute’s newly created certification for Agile Practitioner.

David K. Pham, prolific software creator, is the author of the two “Ruby
on Rails” case studies in the book Scrum in Action: Software Project
Management and Development, and a Sun-Certified Java and Microsoft-
Certified Developer.
A technology entrepreneur, he is the former CTO of KTD Media Corp.
and currently president of a web-based company based in Providence,
Rhode Island.
David K. Pham was the invited guest speaker at the DevChatt conference
for software developers in Nashville, Tennessee, in 2011.

xxv
SETTING UP THE STAGE I
Chapter 1

Ineffectiveness of IT Software
Project Management and
Development: What Can
We Do about It?

Even though much improvement has been made throughout the years
(probably thanks to the introduction of new ideas and techniques), there is
undoubtedly still a lot of room for improvement, particularly with regard to
software project management and development.
Except for some companies where information technology (IT) has
become so successful, the business within a company usually tend to per-
ceive IT as a group of people who will take a long time and a lot of money
to build a new software application for the business. Furthermore, when IT
finally delivers the new software application or report, it often fails to meet
the business needs of the company.
As a result, business becomes disenchanted with IT and goes on to create
their own little IT shops, far too common still today, with a new army of
newly hired developers. Although this helps meet the business needs in the
short term, it disconnects business from the corporate IT tools, which results
often in systems that are not as easily managed, secured, or controlled,
without talking about the ever-�expanding costs, for both people and soft-
ware licenses.
For this reason, and to be looked at as a strategic partner, IT must rec-
ognize the utmost importance of being business driven and must change its

3
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