AGILE IN ACTION

If you're working towards a key release, the pressure mounts for everyone involved as it approaches. For the technical team responsible for delivery the rising pressure in this situation is nearly always negative if left unchecked. As time runs out the drumbeat gets faster and faster as the team is whipped up to ramming speed, a bit like the galley slaves in Ben Hur.

There's something smelly about financing IT projects in return for a contracted return on investment. It’s not that there shouldn't be some expectation about return. There absolutely should. But given the uncertainty and the risk, isn't financing IT projects more like a funding venture? Isn’t it more about managing risk to achieve reward (the desired outcome or better) rather than managing cost and schedule? If it is, then the question to be asked more often is: What types of benefits are we seeing for this round of funding, and does the potential return at this stage warrant additional funding? And not: Are we on schedule and within budget? In this case, the IT department needs to replace specifications and sign-offs with measurements of risks and outcomes.

In this article Ross Maynard says it’s unhelpful, even dangerous, to use the same methods to compile management and financial accounts. Regarding financial accounts he talks about matching accruals:

Projects typically get funded based on their business cases. Business cases that seem to stack up on paper usually get budget. Business cases that don’t stack up are either rejected, because they’re clearly absurd, or, they do get budget because the business sponsor shouted loudest or had more political influence.

Despite the UK Government issuing it's new budget today - oh utter joy, btw - this post was motivated by IT budgeting experiences.

Think of a product stream as a small company working exclusively on a product and delivering features that excite users to maximize profit and growth. The stream invests in its relationship with users and is set up to compete on the basis of speed. It has everything it needs to conduct business, from concept to production to operational support, and unlike a project it persists as long as the product is in service. It includes a dedicated and diverse technical team that is actually part of the business and helps them use software more effectively. It self-organizes for optimum delivery and minimum risk, and produces flexible software that responds as the business learns from user and market feedback.