how_do_we_use_agile_to_reduce_costs
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| how_do_we_use_agile_to_reduce_costs [2020/03/09 12:45] – created hpsamios | how_do_we_use_agile_to_reduce_costs [2020/05/07 06:24] – Improved readability hpsamios | ||
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| For those with this focus, what actually happens as they implement agile is a disappointment. Usually there is no visible reduction in cost and no visible improvement in efficiency. Worse, it looks like as we implement agile that things like utilization rates will decrease as we staff roles such as Product Owners, Scrum Masters, and so on. | For those with this focus, what actually happens as they implement agile is a disappointment. Usually there is no visible reduction in cost and no visible improvement in efficiency. Worse, it looks like as we implement agile that things like utilization rates will decrease as we staff roles such as Product Owners, Scrum Masters, and so on. | ||
| - | > Agile is focused on delivering the most value given the known capacity. | + | > Agile is focused on predictably |
| - | Some of this comes from a base misunderstanding of what agile is about. Agile is not about using our resources more efficiently. It is not cost focussed. Agile is focused on delivering the most value, as defined by our customers, given the known capacity. Agile delivers more value because: | + | Some of this comes from a base misunderstanding of what Agile is about. Agile is not about using our resources more efficiently. It is not cost focussed. Agile is focused on delivering the most value, as defined by our customers, given the known capacity. Agile delivers more value because: |
| - | * It helps teams know what the most valuable thing they could work on right note | + | * It helps teams know what the most valuable thing they could work on right now |
| * It focuses on flow efficiency, not resource efficiency, which reduces handoffs, reduces context switching, and wasted additional work. This is a result of aligning our work execution directly with customer needs | * It focuses on flow efficiency, not resource efficiency, which reduces handoffs, reduces context switching, and wasted additional work. This is a result of aligning our work execution directly with customer needs | ||
| * It introduces slack into the system which helps because high utilization rates actually result in lower throughput and higher lead and cycle times. | * It introduces slack into the system which helps because high utilization rates actually result in lower throughput and higher lead and cycle times. | ||
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