Friday 18 April 2014

How Scrum Can Help To Reduce Risks In Projects – Risk Mitigation In Scrum

Every project in scrum, irrespective of its size and scale, is subjected to certain risks. The risks may be minor in nature, in which case they could be easily solved. Alternatively, they could be of larger magnitude, and would really tax the experience levels of the scrum master as well as the product owner to resolve them. Catering to risks is one of the main reasons why managements and “C” level executives opt for scrum methodology. Actually most people interpret risks in a negative way. It is interesting to know that risks can be negative as well as positive in nature, depending upon the outcome they result in. Risks, which result in a positive manner, are termed as “opportunities” while those that negatively affect the project are known as “threats”. In a simple language, a risk can be understood as a particular situation, unknown about what kind of result it will deliver when it is conceived, and which can result into an advantageous situation, or it could adversely affect the project working as well as the result the particular project is fundamentally supposed to deliver. Risk management is an inherent part of scrum methodology.
 
Minimizing risks (threats) using scrum methodology
While positive risks, or opportunities, are inadvertently welcomed, it is the risks, which create a negative effect in the ongoing project, or threats, which are of concern to scrum enforcers. Scrum helps to minimize risks in several ways:
 
1. Flexibility exhibited by scrum reduces business-environment-related risks 
Unlike traditional development methodologies, scrum is highly flexible, and possesses the capability to add or modify the project related requirements at any time during the project life cycle. It helps the management to respond in a positive manner to threats as and when they arise. The management can easily cater to unforeseen circumstances when they arise. It is very easy to remove the user stories from the product backlog and replace them with new ones. The product owner can add new stories whenever required as per the wishes of the stakeholders. Moreover, if a particular set of requirements becomes obsolete or useless in terms of its functionality, it can be removed from the product backlog, and its development can be curtailed. This is not possible in a Waterfall method.
 
2. Constant and regular feedback reduce expectations-related risks
The entire project development is carried out in sprints. Each sprint is preceded by a daily scrum meeting. Scrum provides plenty of opportunities to avail feedback regarding exactly how much development has been successfully completed until date, and how much of it is still pending. The scrum board reflects the changes as and when they occur in real time, so the management is always kept informed about which user stories are currently being processed for development. Stakeholders can verify the work delivered at the end of the sprint, and if they are not satisfied, they hold the right to reject it. The investors are never caught off guard owing to miscommunication. They can always check up the development status and act accordingly.
 
3. Team ownership helps to reduce estimation related risks
The team creates proper and effective estimates making use of prior development related experience. Sprint retrospectives help to identify potential pitfalls likely to occur again in the future while sprint planning helps to include proper user stories for time bound and acceptable development. Team ownership helps to reduce estimation related risks. 
 
4. Increased transparency reduces non-detection risks
Scrum advocates transparency. Everything and each activity carried out by the scrum team is made public as soon as possible. As a result, any risk, if it arises, is detected early by the concerned person, and the person is supposed to take up further course of action to remove the risk. Risks are detected and communicated early, and this leads to better risk handling as well as risk mitigation.
 
5. Iterative development reduces investment-related risks  
The delivery value is continuously presented when scrum is implemented. The basic advantage of scrum is that functionality is delivered in stages after the sprint is completed, which generally takes from 2 weeks to 1 month depending upon how long the sprint lasts. This is not possible in case of waterfall methods since the results are derived in the final stage of the product development cycle. It then becomes too late to respond to the development, and to introduce new changes because the entire project is completed by that time. Scrum helps to reduce investment related risks.
 
Find out more, and download our free QuickScrum tool which can help you in implementing scrum in an effective and profitable way!

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