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Endless Modernization: How Infinite Flow Keeps Software Fresh

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Abstract

This paper is the result of unique and extensive research for identifying the best methods for modernizing mission-critical application software. We have concluded that projects using the principles of what we call “Infinite Flow” (a continuous process, unlike projects that are designed as one-time events with a beginning and an end) achieve superior results. (For more information, see addendum, “About Infinite Flow.”) As a result of these compelling findings, we are providing a method for transition from a project-based environment to non-project activities by adopting the principles of Infinite Flow to modernize legacy applications. Since Infinite Flow is not a project, we cannot measure it. Therefore, we have reduced the observations from all modernization projects to those that generally meet the attributes of microprojects and some attributes of Infinite Flow (Flow), such as Scrum and DevOps. We call this “flow like modernization” in order to compare it more clearly with the other types of application modernization that we have observed. In essence, we have found that great progress can be made by ending project-based modernization in favor of the flow process. Our findings show: a. Flow like modernization projects that are a series of microservices or microprojects, rather than one large project, achieve much better outcomes. b. Flow like microprojects reap greater customer satisfaction because of the built-in user/customer feedback loop. c. Flow like modernization microprojects achieve a higher return of value. d. Flow like microprojects offer a reduced risk of failure and monetary loss. e. Flow like microprojects have a higher degree of sustainable innovation. f. Flow achieves a longer lifespan of applications, avoiding premature retirements.
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Copyright © 2020 by The Standish Group International, Inc.
ENDLESS MODERNIZATION:
How Infinite Flow Keeps Software Fresh
Jim Johnson
Dreamer
e Standish Group
Hans Mulder
European Research Director
e Standish Group
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Copyright © 2020 by The Standish Group International, Inc.
INTRODUCTION
Keeping the Golden Gate Bridge modern is a permanent full-time job for a team of 30 painters and mechanics.
Every working day, this team helps the bridge maintain its exibility in the face of assaults from the strong winds
o San Francisco Bay. e team also continually paints the bridge to preserve its majestic blood-orange glow.
Keeping mission-critical software applications fresh and glowing requires the same dedication.
EXECUTIVE SUMMARY
is paper is the result of unique and extensive research for identifying the best methods for modernizing
mission-critical application software. We have concluded that projects using the principles of what we call
“Innite Flow” (a continuous process, unlike projects that are designed as one-time events with a beginning
and an end) achieve superior results. (For more information, see addendum, “About Innite Flow.”) As a result
of these compelling ndings, we are providing a method for transition from a project-based environment to
non-project activities by adopting the principles of Innite Flow to modernize legacy applications.
Since Innite Flow is not a project, we cannot measure it. erefore, we have reduced the observations from
all modernization projects to those that generally meet the attributes of microprojects and some attributes of
Innite Flow (Flow), such as Scrum and DevOps. We call this “ow like modernization” in order to compare
it more clearly with the other types of application modernization that we have observed. In essence, we have
found that great progress can be made by ending project-based modernization in favor of the ow process.
Our ndings show:
a. Flow like modernization projects that are a series of microservices or microprojects, rather than one large
project, achieve much better outcomes.
b. Flow like microprojects reap greater customer satisfaction because of the built-in user/customer feedback loop.
c. Flow like modernization microprojects achieve a higher return of value.
d. Flow like microprojects oer a reduced risk of failure and monetary loss.
e. Flow like microprojects have a higher degree of sustainable innovation.
f. Flow achieves a longer lifespan of applications, avoiding premature retirements.
CHAOS RESEARCH AND DATA
For the last 25 years, e Standish Group has collected, adjudicated, and approved between 2,500 and 5,000
new project cases per year. In each of those 25 years, we have added and changed observations to gain a better
understanding of why some projects are successful while others fail. We also research many other issues having
a bearing on project success; these have led to books and workshops on how to be a good sponsor, a good
team, and a good workplace. Most importantly, we have pinpointed the issue of decision latency as crucial to
project success.
Our organization proles, which inform the Standish database, study organizations from the viewpoint of
24 separate data points. Our project proles depend on more than 80 data points through which projects are
analyzed and assessed, and on a dozen worksheets developed for each project. e database is used to create
reports like this one. It’s also used for projects like “CHAOS 2020: Beyond Innity,” as well as general queries,
single-project assessments, future portfolio predictions, and performance benchmarks. Our database is robust,
so we can see many dierent views of data and measure attributes such as OnTime, OnBudget, OnTarget,
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Copyright © 2020 by The Standish Group International, Inc.
OnGoal, Value, and Customer Satisfaction. We can also use any
of these measurements for decision speed, team capability, size of
projects, types of projects, methods of delivery, and a number of other
common applications.
In Chart 1 we see success by the traditional metric of OnTime,
OnBudget, and OnTarget over the last 25 years. After 25 years of
research, the only sure way to prevent software projects from being either
challenged or failed is to stop doing projects and adopt Innite Flow.
CHART 1: LONGITUDINAL CHAOS RESEARCH
CHART 2: MODERN RESOLUTION BY PROJECT TYPE
PROJECT T YPE SUCCESSFUL CHALLENGED FAILED
Developed from
scratch 26% 54% 20%
Developed using
components 37% 46% 17%
Purchased
application (COTS) 44% 36% 20%
Flow Like
Modernization 71% 28% 1%
The “modern” denition of success (OnBudget, OnTime, Customer Satised)
also shows that Flow modernization projects do much better than other
project types. This chart is based on the 50,000 projects in the
CHAOS 2020 database.
This paper builds on our research,
with an introduction to Infinite
Flow and the discovery of decision
latency as the root cause of
poor project performance. That
research includes our 2010
paper, “Modernization: Clearing a
Pathway to Success,” [1] which
identified three common ways
organizations go about replacing
a current software application
and compared the results of each
method. Type 1 was essentially
a new application development.
It involved developing new
user requirements, technical
specifications, programming,
tests, and user education, as
well as a host of other project
management and executive
activities. Type 2 used a typical
commercial off-the-shelf (COTS)
package or implementation that
required moderate modifications.
Type 3 used a method we called
“modernization”: refurbishing an
existing application rather than
replacing it fully.
For the current paper, we
have added a further category
of application replacement,
using a collection of software
components. We have also
replaced “modernization
with our discovery of “flow-like
modernization.
In 2014, we published a second
research paper, “Modernization
in Place,” [2] which presented
a technique with which to
modernize an application or a
system while it is fully functional
and being used by an organization
and its customers. Infinite Flow
again advances this concept by
making changes a daily event.
1994 1995–1999 2000–2004 2005–2009 2010–2014 2015–2020
Successful Challenged Failed
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Copyright © 2020 by The Standish Group International, Inc.
DECISION LATENCY THEORY
Decision Latency theory states: “e value of
the interval is greater than the quality of the
decision.”[4] e Standish Group has determined
that the root cause of software project failures
and challenges is slow decision latency, and that
to improve project performance, organizations
need to nd ways to make decisions faster. e
problem is, “good project management” actually
tends toward slower decisions out of fear of
making a bad one. is seemingly wise practice
causes fragility [FN2] in the pursuit of a better
outcome. True, short decision intervals are likely
to result in some minor errors—but being able to
“tinker” with the project makes the whole process
antifragile. Short decision latency also promotes
agility and thus decreased future technical debt.
Overall, learning to make decisions quickly results
in faster time to market and additional savings.
For each of the three application-replacement
techniques—development of a completely new
application, implementation of a commercial
o-the-shelf (COTS) package, or the use of a
number of software components—e Standish Group has arrived at a formula for number of decisions to
be made per thousand dollars invested. We developed an overall average of one decision per thousand dollars.
Tellingly, however, Flow modernization projects came in at about half the decisions of the average—in other
words, one decision per $2,000. Why? Consider that many of the decisions to be made during a project
center around features and functions. However, modernization projects already have a feature and function
role model, and this, of course, reduces the number of decisions to be made. ese role models also improve
the “dwell time” needed for many of those decisions. In addition, Flow modernization teams are usually self-
directed and can make decisions on their own, further reducing the interval.
CHART 3 RESOLUTION BY DECISION LATENCY SKILLS
SKILL LEVEL SUCCESSFUL CHALLENGED FAILED
Highly Skilled 63% 30% 7%
Skilled 28% 61% 11%
Moderately Skilled 20% 51% 29%
Poorly Skilled 18% 47% 35%
Teams that have better decision latency skills are also more successful.
This chart uses the modern denition of success (OnBudget, OnTime,
satised customer) and is based on the 50,000 projects in the
CHAOS 2020 database.
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In general, our ndings found decision latency costs to account for about 25% of the overall cost of a software
development project. For example, a million-dollar modernization project will require about 500 decisions,
and the average interval or dwell time is less than one hour, making the estimated cost around $50,000. In
contrast, a typical million-dollar new application development project will require about 1,100 decisions at a
dwell time of two hours. e cost of those decisions will come in at $220,000—more than four times the cost
of a Flow Like modernization project.
We believe improved decision latency is the main reason Flow like modernization projects enjoy a greater
success rate and cost less than other types of projects. e Standish Group measures the skill level by
information in the project prole.
CHART 4: DECISION LATENCY BY PROJECT TYPE
PROJECT T YPE HIGHLY SKILLED SKILLED MODERATELY SKILLED POORLY SKILLED
Developed from
scratch 17% 38% 27% 18%
Developed using
components 21% 39% 23% 17%
Purchased application
(COTS) 22% 36% 26% 16%
Flow Like
Modernization 27% 43% 18% 12%
Flow Like modernization project teams generally display better decision latency skills than teams on other types of projects.
This chart is based on the 50,000 projects in the CHAOS 2020 database.
Decision latency costs to account
for about 25% of the overall cost of
a software development project for
non-like modernization project.
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Copyright © 2020 by The Standish Group International, Inc.
CUSTOMER SATISFACTION
e real test of a successful software project is customer satisfaction—it’s one of the major reasons we create
and modernize software. ere’s a direct relationship between customer satisfaction and that customer’s
ability to absorb change. Large, “big bang” projects produce only a 6% rate of high satisfaction, and they
produce a 60% rate of customer disappointment. Small, iterative modernization projects reap four times that
rate of high satisfaction and produce only an 8% rate of customer disappointment. Retaining similarity in a
transition to new features and functions avoids the necessity for retraining. Being able to make changes to the
user experience that are intuitive increases user productivity. is is further spelled out in our
Absorption eory [FN3] .
CHART 5: CUSTOMER SATISFACTION BY PROJECT TYPE
PROJECT T YPE VERY
SATISFIED SATISFIED SOMEWHAT
SATISFIED
NOT
SATISFIED DISAPPOINTED
Developed from
scratch 12% 18% 25% 22% 23%
Developed using
components 14% 21% 25% 19% 21%
Purchased application
(COTS) 13% 21% 26% 21% 19%
Flow Like
Modernization 21% 34% 30% 9% 6%
Flow Like modernization projects attain a higher level of customer satisfaction than other project types. This chart is based
on the 50,000 projects in the CHAOS 2020 database.
Large, “big bang” projects produce only a 6% rate of high satisfaction,
and they produce a 60% rate of customer disappointment.
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Copyright © 2020 by The Standish Group International, Inc.
VALUE OF FLOW MODERNIZATION
If you buy a car today but cannot drive it for two years, you obviously get no value for that period of time. In
addition, the car will depreciate in value by about 24% before you do drive it. It’s the same for the delivery of
new or improved software features and functions. However, Flow modernization allows you to build a new
software function today—and enjoy the return on value tomorrow. Value is the other measurement of Flow.
Our research shows that as much as 80% of new software features and functions are dead on arrival and rarely
used. However, Flow modernization eliminates many of those features and functions before they are even
created. Flow modernization also eliminates many unused features and functions through refactoring—which
improves software maintenance costs, thus creating additional value. e proof is in the numbers: Flow like
modernization returns twice the value on average than for other types of software development.
CHART 6: VALUE BY PROJECT TYPE
PROJECT T YPE VERY HIGH
VALUE
HIGH VALUE AVERAGE
VALUE
LOW
VALUE
VERY LOW
VALUE
Developed from
scratch
8% 19% 32% 15% 26%
Developed using
components
11% 22% 32% 13% 22%
Purchased application
(COTS)
10% 21% 31% 12% 26%
Flow Like
Modernization
22% 32% 30% 9% 7%
Flow Like modernization projects offer a much higher return on investment/value than for other project types. This chart is
based on the 50,000 projects in the CHAOS 2020 database.
Flow Like modernization returns twice the value on
average than for other types of software development.
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Copyright © 2020 by The Standish Group International, Inc.
PROJECT ENVIRONMENT
e Standish Group has reduced the “Factors
of Success” to these three practices: the good
place, the good team, and the good sponsor.
e place is the project environment. e
environment is the people, places, and things,
such as tools, through which the project is
executed—basically, everything but the team
and the sponsor. An environment that values
skill in its employees and is attentive to its other
attributes improves the chances of a successful
project; a poorly skilled environment presents
challenges. e Standish Group has identied
10 principles and 50 skills that go into making
a “good place.” e Good Place skills are listed
in the current CHAOS2020: Beyond Innity
Report [10]. e Standish Group also has an
online appraisal to measure the skills of e
Good Place. Setting up the right culture to
support Flow is essential, that is why we have
created a set of principles, practices, and skills
as a recommendation for a Flow
Modernization environment.
CHART 7: PROJECT ENVIRONMENTAL SKILLS BY PROJECT T YPE
PROJECT T YPE HIGHLY SKILLED SKILLED MODERATELY SKILLED POORLY SKILLED
Developed from
scratch 7% 49% 39% 5%
Developed using
components 8% 50% 37% 5%
Purchased application
(COTS) 8% 49% 39% 4%
Flow Like
Modernization 12% 56% 29% 3%
Flow Like modernization projects tend to have project environments that are slightly more skilled places than do other
project types. This chart is based on the 50,000 projects in the CHAOS 2020 database.
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SKILLED STAFF
Our continuous research on project success shows successful projects need smart, trained people. Not surprisingly,
one of the key project success factors that Standish has identied since the beginning of its CHAOS research is a
competent sta [5]. However, as with any team, Flow modernization teams improve with time, experience, feedback,
and collaboration. Fortunately, the Flow modernization process promotes rapid feedback, experimentation, small
failures, and rapid customer engagements with actual use. Also fortunately, Flow modernization teams tend to be
smaller, at around four to six team members, and this improves agility and communication. Our book e Good
Mate oers advice, insights, and practical approaches to improve teamwork and teams [6]. e nice thing about Flow
is that you can work on a task while improving skills for future tasks without losing valuable production time. In
addition, special tasks can be easily augmented by temporary gig members.
CHART 8: TEAM SKILLS BY PROJECT T YPE
PROJECT T YPE GIFTED TALENTED COMPETENT ABLE UNSKILLED
Developed from
scratch
10% 31% 40% 13% 5%
Developed using
components
12% 30% 39% 14% 6%
Purchased application
(COTS)
11% 32% 42% 12% 4%
Flow Like
Modernization
14% 26% 45% 12% 3%
Flow Like modernization projects tend to have slightly more skilled teams than do other project types. This chart is based
on the 50,000 projects in the CHAOS 2020 database.
Copyright © 2020 by The Standish Group International, Inc.
PROJECT SPONSOR
Key to success for any project is a skilled sponsor, and our book e Good Sponsor [7] identies 10 principles
and 50 skills that characterize good sponsors. We believe that unlike teams, which improve with time,
sponsors tend to lose interest over time, and hence their skills degrade. Flow modernization projects come
in at about average in terms of project sponsor skills. However, maintaining rapid and constant Flow
modernization deliveries helps maintain sponsor interest, and changing sponsors as a project’s focus changes
also helps. Of course, the most eective thing you can do to improve sponsor skills is to encourage them to
take a course, like our Good Sponsor Crash Course.
CHART 9: PROJECT SPONSOR SKILLS BY PROJECT TYPE
PROJECT T YPE HIGHLY SKILLED SKILLED MODERATELY SKILLED POORLY SKILLED
Developed from
scratch 16% 39% 28% 17%
Developed using
components 21% 38% 25% 16%
Purchased application
(COTS) 22% 35% 27% 16%
Flow Like
Modernization 25% 43% 20% 12%
Skill levels for sponsors of Flow Like modernization projects come in slightly higher than for other project types. This chart
is based on the 50,000 projects in the CHAOS 2020 database.
Flow Like modernization projects that
have a highly skilled project sponsor have
an 81% success rate.
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Copyright © 2020 by The Standish Group International, Inc.
SUCCESS LADDER BENCHMARK
e Success Ladder benchmark oers a quick and easy way to get a rough order of magnitude for a single
project’s chances of success. e benchmark is part of the premium member service. By completing 7 project
prole questions the system will return an estimate of success e benchmark returns a result based on
answers to questions ranked against answers given for the 50,000 project proles in the CHAOS database.
By changing the answers, you can see the eect of the change. For example, you answer that the skills of the
project sponsor are poor. You then look at how the chances of success change by selecting highly skilled. en
you can decide if you want to either change the sponsor to a highly skilled sponsor or provide education to
improve the project sponsor.
Currently, the Success Ladder has six rungs. Rung 1 is the actuary or project type (i.e., developed from scratch
or through modernization) and the project method (i.e., agile or waterfall). Rung 2 considers project size; the
results change based on our labor cost range. Rung 3 measures complexity. Rung 4 measures the environment
in which the project takes place. Rung 5 considers the emotional maturity of the team, and Rung 6 measures
the skills of the sponsor. Creating a Success Ladder benchmark is a simple task and only takes a few minutes.
SKILLS LEVEL SUCCESSFUL CHALLENGED FAILED
Good Sponsor Highly 87% 12% 1%
Good Team Highly 82% 15% 3%
Good Place Highly 79% 20% 1%
Complexity Very Easy 66% 31% 3%
Size Small 62% 35% 3%
Base Actuary 54% 37% 9%
CHART 10: SUCCESS LADDER BENCHMARK FOR FLOW LIKE MODERNIZATION
Charts 10 and 11 present results for the same project, using two methods: Flow modernization, and
the development of an entirely new application. Chart 10 attacks the project using small, iterative, agile
modernization methods and features high levels of skills. e project is broken into 10 individual projects at
about $1 million each.
Chart 11 presents the complete opposite—a large, very complex, waterfall software development project
featuring moderate skill levels and running at $10 million in total.
e results seen in Chart 10 show an extremely positive outcome (OnTime, OnBudget, with a satised
customer). In contrast, predictions for the project shown in Chart 11 come in at a mere 1% chance of success.
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SKILLS LEVEL SUCCESSFUL CHALLENGED FAILED
Good Sponsor Moderately 1% 56% 43%
Good Team Moderately 1% 56% 43%
Good Place Moderately 2% 51% 46%
Complexity Very Complex 3% 54% 42%
Size Grand 5% 57% 37%
Base Actuary 12% 61% 27%
CHART 11: SUCCESS LADDER BENCHMARK FOR NON-FLOW LIKE MODERNIZATION
EXAMPLE
Flow Like modernization is not just a theory or a wild idea. It works for developing successful software projects.
Take, for example, a large European nancial organization that used the method to replace a 40-year-old system.
e organization had found that the increasing complexity of the interdependencies between infrastructure
software and application software components was preventing agility and leading to longer lead times. ese
are major risks because of the number of people involved, the dependencies between projects, and issues of
lifecycle management and user training and acceptance. e institution had already tried a couple of times to do
a full replacement—once with a new development and once with a package. In both cases, the projects failed,
at a cost of many millions of dollars. Using small projects instead, with some Flow-like techniques, kept many
dependencies in place while gradually eliminating them. e eort has taken several years, but at reduced cost
with no down time. is organization is also saving about 80% on its annual software maintenance by reducing
most of the technical debt.
This large European organization is saving about 80% on its annual
software maintenance by reducing most of the technical debt.
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Copyright © 2020 by The Standish Group International, Inc.
WATERFALL PROJECTS
Overhead
80%
Net Value
20%
AGILE PROJECTS
Overhead
52%
Net Value
48%
INFINITE FLOW
Overhead
20%
Net Value
80%
THE FUTURE IS FLOW
e world is getting faster every day. Attention spans are measured in the
space of a “tweet.” Executives are impatient and want everything NOW.
Timeframes for projects have gone from years to months, to weeks, and
sometimes days. e next step we foresee is no projects at all—and tasks
will be measured in hours for the majority of software development and
implementation activity. is is a major culture change that ts into
today’s business environment. e demand is for more value, higher
customer satisfaction, and lower costs. It is our opinion—based on our
extensive research and observation of role models—that the move to
Innite Flow satises all three of these demands.
Innite Flow greatly reduces overhead. A typical waterfall-type
modernization project will incur about 80% in overhead and oer a net
value of less than 20%. e average net value of such a project is derived
from the mere 16% of features and function that are frequently used. Most
of the overhead that results comes from command-and-control eorts such
as gates, steering committees, and meetings that increase decision latency.
e typical agile-type modernization project will cut that overhead in
half and triple the net value. is increase in value is the direct result
of self-managed teams, which allow faster decisions to be made. e
Innite Flow method results in an overhead cost of only 20%, and a
net value of 80%.
Innite Flow greatly increases customer satisfaction. A typical waterfall-type
modernization project will result in a high level of customer satisfaction
in perhaps 20% of customers, at best. Much of this unhappiness is caused
by the low level of feature function absorption, which reects customer
frustration with a dicult change management process. However, the use
of agile doubles the satisfaction level in customers. Much of this increase is
the result of faster delivery of features and functions that embrace change
and allow for greater user absorption. Innite Flow daily delivery and value
increases customer satisfaction to a level of about 80%.
Innite Flow also greatly decreases costs. A typical waterfall-type
modernization project might cost $12 million in direct labor. For the same
features and functions delivered, an agile approach would cut that cost in
half. e same features and functions using Innite Flow practices would
cut the costs in half again—in other words, a cost of about $3 million.
e great thing about Innite Flow is that it involves no estimates or budget
items, no project plans, no steering committees, and no deadlines. ere are
no conicts on what should be included and what should not be included.
ere are no project failures or “challenged” projects: ere are no projects.
Budgets are based on teams, and tasks are based on obvious needs.
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IN SUMMARY
Starting a Flow modernization group is not a big
investment or decision. You can begin with a small team
of four to six members; this is the best size to begin a
test project. Make sure the team has the right technical
skills for the Flow-like project. Train each team member
in our Good Mate program. Choose a Scrum master or
a DevOps professional to guide the team. Encourage
the sponsor to take our Good Sponsor class and nd
a certied Scrum product owner to help that sponsor.
Choose a project team that has executed projects within
four to six months. Choose a small application that is
highly visible and oers both good value and visibility.
Every day your permanent team will deliver something,
and every day your team—as well as the software
application—will improve. You will break the cycle of
technical debt.
Flow involves ve principles: (1) Only deliverables count;
(2) Have a good sponsor; (3) Have a good team; (4) Have
a good place to work; (5) Always promote antifragility. We
further break down these principles into practices and skills.
One way to think of Flow is as a slim version of
Scrum/DevOps—without the project distinction and just
doing daily tasks.
ADDENDUM – ABOUT
INFINITE FLOW
The Flow process continuously manages
software modernization, implementation,
and maintenance . The Flow process is a
service-oriented method that incorporates
many of the features and functions of agile/
Scrum and DevOps
[3]
to reduce the friction
and delays associated with traditional
software project development methods.
Flow also reduces technical debt
[FN 1]
by
a continuous refactoring in order to keep
software fresh and usable, thus reducing
the high cost of maintenance. Flow pipelines
are a single budget item and eliminate
the high overhead costs associated with
traditional project and change management.
The Flow structure is broken down into
a Flow sponsor and a team. A single
sponsor supports teams of producers and
actors. The sponsor provides inspiration,
direction, and imagination. The sponsor
is ultimately responsible for the work
product of the teams.
Producers define the work, manage the
backlog, and present activities to actors.
Producers are a combination of former
project managers, business analysts,
Scrum product owners, and subject
matter experts. Producers generally work
in teams of two to four people. Their main
job is to break down the work into daily
microservices that actors can complete in
one day. They are developers, installers,
security experts, and people who work
in quality assurance and computer
operations. They perform and implement
the work the producers give them. Actors
work in teams, of which three or four
are full-time workers and one or two are
available on demand. Both producers and
actors work in self-directed teams.
The team on the
Golden Gate bridge
works on that
bridge—every day—but
that work doesn’t stop
any of the 12,000
vehicles from using
it—every day.
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FOOTNOTES
FN1: Technical debt is the cost to maintain existing applications, features, functions and even hardware that
have lost their value and no longer serve a useful purpose for the organization. Technical debt is depicted in
rising IT costs, but it’s often hard to recognize within the general IT inventory, and even harder to eliminate.
e tradeo is often to just pay the debt and then invest in new application development. However, this
creates a cycle of ever-increasing technical debt, which leads to bigger IT budgets and increased sta.
FN2: Fragility is a hallmark of systems that fail to thrive as a result of stressors, shocks, volatility, noise,
mistakes, faults, attacks, or failures. In software applications, the goal has always been to make systems
resilient as well as robust. However, this concept has actually made software harder to modernize or keep
current because of the ever-growing base of code; this increases technical debt and fragility. Killing o unused
features and functions and adding new functions allows applications to “wander” more naturally and makes
them less fragile. It’s a concept that is fundamentally dierent from what we think of as “resiliency” [8].
FN3: Absorption eory comprises three broad concepts—continuous change, decreasing complexity, and
conservation of familiarity—that will increase the adoption of features and functions in software projects [9].
Absorption eory describes the ability of an organization to successfully grasp business and technical changes
without disruption.
15
REFERENCES
[1] e Standish Group, “Modernization: Clearing a Pathway to Success” (Standish Group, 2010). Can be
accessed by Standish general members in the research report section of the Standish website.
[2] e Standish Group, “Modernization in Place” (Standish Group, 2014). Can be accessed by Standish
general members in the research report section of the Standish website.
[3] Jim Johnson and Hans Mulder, “Go with the Flow: Envisioning a Successful Pipeline of Software Projects
(Standish Group, 2019). Can be accessed by Standish general members in the research report section of
the Standish website.
[4] Jim Johnson, “Decision Latency eory: CHAOS Report 2018” (Standish Group, 2018). Can be accessed
by Standish premium members in the premium report section of the Standish website.
[5] e Standish Group, “CHAOS Report 2016: e Winning Hand” (Standish Group, 2016). Can be
accessed by Standish premium members in the premium report section of the Standish website.
[6] Jim Johnson and Evan Sorensen, e Good Mate (Standish Group, 2018). Available in the Standish store.
[7] Jim Johnson, e Good Sponsor (Standish Group, 2016). Available in the Standish store.
[8] Nassim Nicholas Taleb, Antifragile: ings at Gain from Disorder (Random House, 2014).
[9] e Standish Group, “CHAOS Manifesto 2015, e Law of Diminishing Returns
(Standish Group, 2015). Can be accessed by Standish general members in the CHAOS report
section of the Standish website.
[10] Jim Johnson, “CHAOS2020 Beyond Innity” (Standish Group, 2020). Can be accessed by Standish
premium members in the premium report section of the Standish website.
16
Copyright © 2020 by The Standish Group International, Inc.
ABOUT THE STANDISH GROUP
e Standish Group is a primary research advisory organization that focuses on software
developmentperformance. Using our extensive primary research, you can improve your investments
in software. We are a group of highly dedicated professionals with years of practical experience helping
organizations improve.
ABOUT THE CHAOS RESEARCH
e Standish Group collects, adjudicates, and approves between 2,500 and 5,000 new project cases per
year. Each organization prole has 24 data points, and each project prole has more than 80 data points. In
addition, there are 12 worksheets for each project. e CHAOS database is used to create reports such as the
CHAOS 2020 Report as well as general queries, single-project assessments, future portfolio predictions, and
performance benchmarks.
ABOUT THE AUTHORS
Jim Johnson is the founder and chairman of e Standish Group. He has a
combination of technical, marketing, and research achievements focused on mission-
critical applications and technology. He is best known for his research on project
performance and early recognizing technology trends. Jim is a pioneer of modern
research techniques and continues to advance in the research industry through case-
based analytical technology.
Hans Mulder Prof.dr.ing MSc BA is Standish European research director and
professor at the Antwerp Management School. As the founder of his own company,
Venture Informatisering Adviesgroep, he is on the management and executive boards
of various IT companies. He is regularly engaged as an IT expert when conicts
between companies need to be resolved in or out of court.
Copyright 2020 by The Standish Group International, Incorporated
All rights reserved. No part of this book may be reproduced in any form or by any electronic, mechanical, or manual
means, including information storage and retrieval systems, without explicit permission in writing from the publisher. In no
circumstances can this work be retransmitted in any form, repackaged in any way, or resold through any media.
PLEASE RESPECT INTELLECTUAL RIGHTS! Published by: The Standish Group International, Inc.
66 Tern Lane, Centerville, MA 02632 508-760-3600 www.standishgroup.com
... The planning fallacy is a common experience for many business and public projects. The Standish Group's research on IT projects between 2005 and 2020 finds that less than onethird were successfully completed on time and within budget, around 43%-46% were delivered late and over-budget, or did not deliver all required features, whereas 19%-21% were cancelled or never used (Johnson and Mulder, 2021). Flyvbjerg and Sunstein (2016) find that the average cost over-run in public projects ranged from 24% to 96%, and even overruns of 100% or more are not uncommon . ...
Article
Full-text available
Purpose A decade after Powell et al. ’s (2011) seminal article on behavioral strategy, which called for models to solve real-world problems, the authors revisit the field to ask whether behavioral strategy is coming of age. The purpose of this paper is to explain how behavioral strategy can and has been used in real-world settings. Design/methodology/approach This study presents a conceptual review with case study examples of the impact of behavioral strategy on real-world problems. Findings This study illustrates several examples where behavioral strategy debiasing has been effective. Although no causal claims can be made, with the stark contrast between the negative impact of biased strategies and the positive results emerging from debiasing techniques, this study argues that there is evidence of the benefits of a behavioral strategy mindset, and that this should be the mindset of a responsible strategic leader. Practical implications This study presents a demonstration of analytical, debate and organizational debiasing techniques and how they are being used in real-world settings, specifically military intelligence, Mergers and acquisitions deal-making, resource allocation and capital projects. Social implications Behavioral strategy has broad application in private and public sectors. It has proven practical value in various settings, for example, the application of reference class forecasting in large infrastructure projects. Originality/value A conceptual review of behavioral strategy in the wild.
Can be accessed by Standish general members in the research report section of the Standish website
  • The Standish Group
The Standish Group, "Modernization in Place" (Standish Group, 2014). Can be accessed by Standish general members in the research report section of the Standish website.
Can be accessed by Standish premium members in the premium report section of the Standish website
  • Jim Johnson
Jim Johnson, "CHAOS2020 Beyond Infinity" (Standish Group, 2020). Can be accessed by Standish premium members in the premium report section of the Standish website.
Available in the Standish store
  • Jim Johnson
Jim Johnson, The Good Sponsor (Standish Group, 2016). Available in the Standish store.