VersionOne 11th Annual State Of Agile Report
VERSIONONE.COM#StateOfAgile
EXECUTIVE SUMMARYAGILITY ACCELERATES THE DELIVERY OF BUSINESS VALUEThe 11th annual State of Agile survey foundthat enterprise agility is increasing throughoutorganizations and across almost all industries at anaccelerated rate. For the first time, half of the surveyrespondents came from outside North America.While the largest number (23%) of respondentsstill worked for software companies, the numberfrom non-software companies grew significantly in2016. Respondents from very large organizations,employing more than 20,000 people, alsoincreased.However, the survey also highlights that thereis still a lot of opportunity for growth and thatthe momentum is far from slowing. While 94% ofrespondents said their organizations practiced agile,they also stated that more than half (60%) of theirorganizations’ teams are not yet practicing agile.Similarly, although 44% of respondents stated thatthey were extremely knowledgeable regarding agiledevelopment practices, 80% said their organizationwas at or below a “still maturing” level. Finally,the survey showed that many companies are nowinvesting (71%) in DevOps.Just as the survey made it clear that there are stillopportunities for increasing enterprise agility, italso made clear that there are many reasons forimproving agility. 98% of respondents said thattheir organization has realized success from agileprojects. Respondents stated that the top benefitsfrom adopting agile were accelerated delivery,better project visibility, improved team productivity,and management of changing priorities.VERSIONONE.COM60%have less than½ of teamspracticing agile80%at or below “stillmaturing” levelwith agile71%investing inDevOps98%realized successfrom agileprojectsTop 3 Benefits of AgileRespondents continue to cite the same top three benefits ofadopting agile for the sixth year in a row.Ability to managechanging prioritiesIncreased teamproductivityImproved projectvisibility#StateOfAgile2
EXECUTIVE SUMMARYAGILITY ACCELERATES THE DELIVERY OF BUSINESS VALUEENTERPRISE AGILITY SUCCESSWith so much momentum and opportunity around agility,it is important to understand what the best organizationsare doing to succeed. Executive sponsorship (48%),consistent process and practices (41%), implementationof a common tool across teams (36%), and agileconsultants or trainers (36%) continue to be cited in thetop five tips for successfully scaling agile.RECOMMENDED AGILE PROJECTMANAGEMENT TOOLSThis was the first year that more respondents cited usingagile project management tools than spreadsheets.This is no doubt due to companies succeeding throughimplementing consistent processes, practices, and toolsacross teams. For the fifth year in a row, VersionOnehad the highest recommendation rate of any othertool evaluated in the survey, even though only 20% orrespondents used VersionOne.MEASURE ENTERPRISE AGILITYWITH BUSINESS VALUEOne of the most notable trends from the survey is theimportance of measuring how much business valueyour organization is delivering. This year business valuehas become a much more popular measure of an agileinitiative’s success.Business value was cited as the second most popularmeasure (46%) of an agile initiative’s success, risingfrom fourth in the prior year. Conversely, it ranked as theeleventh most popular measure (23%) on a day-to-daybasis. This highlights an important inconsistency betweenhow more strategic areas of the enterprise are measuringsuccess and how success is being measured at the teamlevel.LOOKING FORWARDAs more organizations’ enterprise agile initiatives mature,the need for consistent processes and tools for managingand measuring the flow of business value across theentire value stream will become critical (or similar). Toachieve this, enterprises will need to truly unify theiragile portfolio planning, agile project management, andcontinuous delivery efforts.This will further decrease the use of spreadsheets andteam-oriented point solutions as organizations seek amore enterprise-centric solution for unifying their Agileand DevOps initiatives and accelerating the delivery ofbusiness value across the entire organization.VERSIONONE.COM#StateOfAgile3
TABLE OF CONTENTSSECTION1RESPONDENTDEMOGRAPHICSSECTIONSize of Organization5Size of Software Organization5Location of Organization5Role6Industries6Distributed Agile Teams6SECTION3BENEFITSOF AGILEThe 11th annual State of Agile survey wasconducted between July and December,2016.Sponsored by VersionOne, the surveyinvited individuals from a broad rangeof industries in the global softwaredevelopment community and waspromoted far beyond VersionOne’scustomer base at tradeshows andmultiple digital channels. Thousandsof responses were collected, analyzed,and prepared into a summary report byAnalysis.Net Research, an independentsurvey consultancy. Only 20% of therespondents were VersionOne customers,indicating the range and diversity ofrespondents.59AGILESUCCESSANDMETRICSSuccess of Agile Projects12Challenges Experienced Adopting &Scaling Agile12How Success Is Measured13With Agile InitiativesHow Success Is Measured13With Agile ProjectsVERSIONONE.COMPersonal Experience withAgile Development Practices7Company Experience7Percentage of Teams Using Agile7DevOps Initiative7Reasons for Adopting Agile8Agile Maturity8SECTIONBenefits of Adopting AgileSECTIONABOUTTHE SURVEY2COMPANYEXPERIENCEAND ADOPTIONSECTION74AGILEMETHODSANDPRACTICESAgile Methodology Used10Top 5 Agile Techniques10Agile Techniques Employed10Epic Estimation Unit of Measure11Engineering Practices Employed11Agile in Outsourced Development11ProjectsSECTION6SCALINGAGILEScaling Methods and Approaches14Top 5 Tips for Success with Scaling Agile14AGILE PROJECTMANAGEMENTTOOLSGeneral Tool Use and15PreferencesUse of Agile Management Tools16Recommended Agile Project17Management Tools#StateOfAgile4
RESPONDENTDEMOGRAPHICSFor the first time, half of the respondents were from outside North America.While the largest number of respondents (23%) worked for software/ISVcompanies, that number declined from 26% last year. Respondents from verylarge organizations, employing more than 20,000 people, increased from 24%last year to 26% this year.Size of OrganizationSize of Software OrganizationRespondents who worked for organizations with:Respondents who worked for organizationswith software groups with:39% 18% 6%32% 34% 100people20,001 people101-1,000people15%1,001-5,000people19%5,001 peopleLocation of OrganizationRespondents were from:28%50%10%EuropeNorth AmericaAsia5%2%South AmericaAfrica4%OceaniaVERSIONONE.COM#StateOfAgile5
RESPONDENT DEMOGRAPHICS14% 6%3%C-LevelProduct OwnerBusiness Analyst5% 2%Consultant/TrainerDevelopment StaffOther (ScrumMasteror Internal Coach)19%Development Leadership15%Project/Program ManagerRole13%IT Staff23%IndustriesIndustries respondents worked in:Software (ISV)Financial ServicesProfessional ansportationManufacturingEducationInternet ServicesRetailMedia & EntertainmentUtilitiesConsumer ProductsPublic Services1%2%2%3%3%3%3%Other*12%14%23%5%4%4%4%8% Write-in responses were commonlyEducation, Consulting, Aerospace,Automotive, Hospitality, and Non-Profit.Distributed Agile Teams86% of respondents had at least somedistributed teams practicing agile.VERSIONONE.COM#StateOfAgile6
COMPANY EXPERIENCEAND ADOPTIONVery little/noknowledgePersonal Experience withAgile Development Practices11% 1 elyknowledgeable7%28%44%1-2 years3-4 years5 yearsCompany ExperienceHOW MANY?2016HOW LONG?The length oftime respondents’organizations havebeen practicing agile:&94%The percentage of respondents’organizations that practice agile 1 year1-2 years3-5 years5 years15% 19%25% 24%32% 32%28% 25%2016Percentage ofTeams Using Agile60% of respondents stated less than half ofteams in their organizations are using agilepractices.8%All of our teamsare agile32%More than ½ ofour teams areagile58%Less than ½ ofour teams areagile20152%None of ourteams are agile13%I don’t know16%DevOps Initiatives71% of respondents stated that theycurrently have a DevOps initiativein their organization or are planningone in the next 12 months.No DevOpsInitiativesCurrent DevOpsInitiativesPlanning DevOpsInitiativesVERSIONONE.COM#StateOfAgile7
COMPANY EXPERIENCE AND ADOPTIONAccelerate product deliveryEnhance ability to manage changing prioritiesIncrease productivity43%43%42%Improve project visibilityEnhance software qualityImprove business/IT alignmentReduce project risk31%Improve team morale37%30%21%20%18%18%Enhance delivery predictabilityImprove engineering disciplineBetter manage distributed teamsReduce project costIncrease software maintainability53%61%69%Reasons forAdopting AgileImproving project visibility (43%) movedup three places to become the fourth mostpopular reason stated for adopting agilethis year and accelerating product deliveryincreased from 62% last year to 69% thisyear.*Respondents were able to make multipleselections.11%60%Agile MaturityThe vast majority of respondents(80%) said their organization wasat or below a “still maturing” level.MATURITYUse agile practicesand techniques butstill maturingHigh level ofcompetency withagile practicesacross theorganization7%Enable greateradaptability tomarket with agilepractices16%3%3%Experimentingwith agile inpocketsConsidering anagile initiativeNo initiativeto achieveenterprise agilityVERSIONONE.COM#StateOfAgile8
BENEFITS OF AGILEBenefits of Adopting Agile88%Ability to manage changing prioritiesProject visibility83%Increased team productivity83%Delivery speed/time to market81%Team morale81%76%Business/IT alignmentSoftware quality75%Project predictability75%74%Project risk reduction68%Engineering discipline64%Software maintainabilityManaging distributed teamsProject cost reduction61%56%*Respondents were able to make multiple selections.VERSIONONE.COM#StateOfAgile9
AGILE METHODS ANDPRACTICES 1% DSDM/Atern 1% Feature-Driven Development (FDD) 1% Lean Startup1% Lean Development2% Iterative Development 1% XP 1% Agile Unified Process (AgileUP)2% I Don’t Know5% s UsedScrum and Scrum/XP Hybrid (68%)continue to be the most common agilemethodologies used by respondents’organizations.Custom e Techniques EmployedFrom 2015 to 2016, the use of Kanban grew from 39% to 50%; iteration reviewsincreased from 54% to 81% and iteration planning went from 69% to 90%.Iteration planningDaily standupTOP 5 AGILETECHNIQUESRetrospectives}Iteration reviewsShort iterationsRelease planningTeam-based estimationDedicated product ECTIVESSingle team (integrated dev & testing)Frequent releasesKanbanOpen work areaProduct ory mappingAgile portfolio planningAgile/lean *Respondents were able to make multiple selections.VERSIONONE.COM#StateOfAgile10
AGILE METHODS AND PRACTICESEpic Estimation Unit of MeasureWhen conducting epic estimation, more than half ofrespondents said they used a point system.51%23%13%POINTST-SHIRT SIZESHOURS6%6%1%SWAGOTHERGUMMY BEARSEngineering Practices EmployedWhile the usage of XP as an independent methodology continues todecrease ( 1%), the practices associated with XP are still prevalent.Unit testingContinuous integrationCoding standardsRefactoringTest-driven deploymentAutomated acceptance testingContinuous deploymentPair programmingSustainable paceCollective code ownershipBehavior-driven developmentEmergent design*Respondents were able to make multiple le in Outsourced Dev Projects51% of respondents are using agile practices to manageoutsourced development projects. Respondents were twiceas likely to say that the use of agile within their outsourcedprojects was going to increase in the future.VERSIONONE.COM#StateOfAgile11
AGILE SUCCESSAND METRICSSuccess ofAgile Projects98%of respondents said that theirorganization has realizedsuccess from agile projects.Challenges Experienced Adopting & Scaling AgileWhile the vast majority of respondents and their organizations have realized success fromadopting agile practices, they recognize that there are challenges to scaling agile. The toptwo challenges cited were organizational culture at odds with agile values (63%), and lack ofskills or experience with agile methods (47%).Company philosophy or culture at odds with core agile valuesLack of experience with agile methodsLack of management supportGeneral organization resistance to changeLack of business/customer/product ownerInsufficient trainingPervasiveness of traditional developmentInconsistent agile practices and processFragmented tooling, data, and measurementsIneffective collaborationRegulatory compliance and governanceDon’t s were able to make multiple selections.VERSIONONE.COM#StateOfAgile12
AGILE SUCCESS AND METRICSHow Success Is Measured.with Agile Initiatives?Business value as a measure of an agile initiative’s success went from fourth in 2015 tosecond in 2016. On-time delivery of projects and customer/user satisfaction remained in thetop three measures of agile initiative’s success as they have in the past few years.53%On-time deliveryBusiness valueCustomer/user satisfactionProduct qualityProduct scopeProductivityProject visibilityPredictabilityProcess improvementDon’t know11%46%44%42%40%25%25%23%21%*Respondents were able to make multiple selections.How Success Is Measured.with Agile ProjectsWhile business value was cited as the second most popular measure (46%) of an agile initiative’s success, it ranked as theeleventh most popular measure (23%) of an agile project’s success. Velocity (67%) continues to be the number one measure ofan agile project’s success.VelocityIteration burndownRelease burndownPlanned vs. actual stories per iterationBurn-up chartWork-in-Process (WIP)Defects into productionCustomer/user satisfactionPlanned vs. actual release datesCycle timeDefects over timeBusiness value deliveredBudget vs. actual costDefect resolutionCumulative flow chartTest pass/fail over timeScope change in a releaseEstimation accuracyIndividual hours per iteration/weekEarned valueProduct utilizationRevenue/sales impactCustomer retention8% 7% 7% 28% 30%32%*Respondents were able to make multiple selections.VERSIONONE.COM#StateOfAgile13
SCALING AGILE28%27%Scaling Methodsand Approaches13%4%SAFe (28%) has overtaken SCRUM/SCRUM ofSCRUMS (27%) to be the most popular scalingmethod cited by respondents.4%SCALED AGILE FRAMEWORK (SAFE )SCRUM / SCRUM OF SCRUMSINTERNALLY CREATED METHODSLEAN MANAGEMENTAGILE PORTFOLIO MANAGEMENT (APM)3%LARGE-SCALE SCRUM (LESS)1%1%1%DISCIPLINED AGILE DELIVERY (DAD)RECIPES FOR AGILE GOVERNANCE IN THE ENTERPRISE (RAGE)NEXUSTop 5 Tips for Success with Scaling AgileExecutive sponsorship (48%), consistent process and practices (41%), implementation of a common tool acrossteams (36%), and agile consultants or trainers (36%) continue to be cited in the top five tips for successfully scalingagile for the past few years and likely points to the long-term importance of self-sufficiency when scaling agility. Thetop cited tip this year, internal agile coaches (52%), was a new entry into the top five.52%INTERNAL OCESS ANDPRACTICES36%IMPLEMENTATIONOF A COMMON TOOLACROSS TEAMS36%AGILE CONSULTANTSOR TRAINERSOther important factors included: externally attended classes or workshops,company-provided training program, online training, and webinars.*Respondents were able to make multiple selections.VERSIONONE.COM#StateOfAgile14
AGILE PROJECTMANAGEMENT TOOLSGeneral Tool Uses and PreferencesMore than three-quarters of respondents are currently using a taskboard. Notablechanges in tool use from 2015 to 2016 were Kanban boards ( 6% YOY) andspreadsheets (-7% YOY).2016CURRENT TOOL USAGE2015FUTURE PLANS TO USETaskboard75%82%8%10%Bug tracker71%80%10%10%Kanban board69%63%11%13%Spreadsheet67%74%5%5%Agile project management tool63%71%17%17%Wiki62%68%13%12%Unit test tool61%66%19%23%Automated build tool59%66%22%22%Continuous integration tool52%57%27%28%Release/deployment automation tool44%50%31%34%Requirements management tool43%51%19%22%Traditional project management tool43%51%5%7%Project & portfolio management (PPM) tool35%42%25%27%Automated acceptance tool35%38%36%41%Index cards34%43%10%11%Story mapping tool25%33%30%32%Refactoring tool25%30%25%30%Customer idea management tool16%21%26%30%*Respondents were able to make multiple selections.VERSIONONE.COM#StateOfAgile15
AGILE PROJECT MANAGEMENT TOOLSUse of Agile Management ToolsFewer respondents cited using Microsoft Excel this year (46%) then last year (60%)and Google Docs dropped from (18%) last year to (14%) this year.Atlassian/JIRAMicrosoft ExcelMicrosoft TFSMicrosoft ProjectVersionOneGoogle DocsCA Agile CentralHP Quality Center/ALMIn-house/home-grownBugzillaLeanKitIBM Rational Team ConcertHP Agile ManagerPivotal TrackerNo tools at allAxosoftCollabNet ScrumWorks ProCollabNet TeamForgeHansoftTarget ProcessThoughtWorks 20%20%46%53%14%Respondents were able to make multiple selections.VERSIONONE.COM#StateOfAgile16
AGILE PROJECT MANAGEMENT TOOLSRecommended Agile Project Management ToolsRespondents were asked whether they would recommend the tool(s) they are usingbased on their past or present use. For the fifth year in a row, VersionOne had the highestrecommendation rate of any other tool evaluated in the survey (87%).VersionOneAtlassian/JIRACA Agile CentralLeanKitMicrosoft TFSTarget ProcessAxosoftCollabnet ScrumWorks ProPivotal TrackerGoogle DocsHP Agile ManagerThoughtWorks MingleIBM RationalMicrosoft ExcelMicrosoft ProjectHP Quality Center/ALMBugzillaCollabnet ndents were able to make multiple selections.VERSIONONE.COMVERSIONONE.COM 2017 VersionOne Inc. All rights reserved.#StateOfAgileVersionOne is a registered trademark and State of Agile is a trademark of VersionOne Inc.Scaled Agile Framework and SAFe are trademarks of Scaled Agile, Inc.17
THE SURVEY The 11th annual State of Agile survey was conducted between July and December, 2016. Sponsored by VersionOne, the survey invited individuals from a broad range of industries in the global software development community and was promoted far beyond VersionOne’s customer base at tradeshows and multiple digital channels. Thousands
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