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Re: Scrum isn't enough

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  • budcookson
    Robin - you make a good point that IT has a strong propensity to fail due to its focus on cost and the reduction of those costs. However, if you look at Scrum
    Message 1 of 14 , Apr 27, 2006
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      Robin - you make a good point that IT has a strong propensity to fail
      due to its focus on cost and the reduction of those costs. However,
      if you look at Scrum (and the majority of the other agile
      methodologies at the tactical planning level), they are all about
      providing value to the customer. It might not be the classic ROI
      calculation but the customer is constantly evaluating the benefits,
      either formally or informally, as they provide the prioritization of
      the functions/features to be implemented.

      All of that said, if you want a really radical idea, turn your IT
      organization into a Profit Center rather than a Cost Center. It gives
      the organization a completely different thought process. If you run
      these internal departments as a mini-business, then you are able to
      evaluate every action on the basis of return. This approach provides
      an interesting twist to your issues/concerns.

      As far as outsourcing is concerned, any organization that is facing
      outsourcing needs to look at their value statement and figure out how
      to do their job with better returns. Yes, there are costs involved in
      outsourcing that have to be applied to the cost analysis. But, any
      outsourcing effort is ultimately going to be driven by a desire "to
      make things better". If you look carefully, there is probably an
      underlying problem with value delivery in the current organization
      that has become a pain point for the company and someone is trying to
      fix it.

      Also, to your point about outsourced work being less agile, that isn't
      necessarily true. If the work is outsourced to an agile contracting
      company, they can be much more agile than the existing internal
      organization which is steeped in tradition. I had a project last year
      where my outsourced team was way more adaptable and agile than the
      internal group.

      Sorry for the late response. Just catching up after a couple of
      major, marketing distractions.

      Hope that helps. BUD

      www.RidgelineSoftware.biz
      www.BudCookson.com
      LinkedIn: www.LinkedIn.com/in/BudCookson

      --- In scrumdevelopment@yahoogroups.com, "Robin Dymond"
      <robin.dymond@...> wrote:
      >
      > IT organizations are cost driven. They are considered an expense,
      and there
      > is little real connection at the project or business level between the
      > costs, and the return on investment.
      >
      > If IT continues to be continually cost focussed, instead of ROI and
      business
      > value focussed, isn't all IT in danger of becoming outsourced to the
      lowest
      > cost provider?
      >
      > What can we do within our organizations to help connect the dots between
      > investment, an agile project, and return on that investment?
      >
      > Thoughts?
      > Robin Dymond.
      >
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