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Agile Values will Help Developers Improve Efficiency

Photo: scoachinstitute.ru

Maxim Levchenko, the managing partner of FORTGROUP, is confident that applying Agile management culture in the development sector can significantly improve efficiency. Mr. Levchenko believes that Agile values can help reduce costs and schedules.

For example, it is almost impossible to avoid revisions during a new concept implementation stage at a shopping and entertainment center. After the design and development stages, and while still working on design documentation, it is sometimes necessary to upgrade equipment or materials. It may require going back to the initial stages of design. The process becomes even more challenging when adjustments need to be made while contractors are already working on the project.

        Agile allows to identify any inconsistencies at the early stages of a project. A self-governing professional project team will be created that will include representatives from various business sectors. This team will be instrumental in achieving the goal. In the field of commercial real estate development, Team Agile could include specialists such as construction companies, architectural firms, systems engineers, designers, marketing experts, and managers who specialize in the selection of tenants. Team members would interact with each other as equals and would be constantly involved in the process through a universal IT platform.

       Each project cycle will be broken down into milestones, and at the completion of each milestone, the team will review progress and adjust the plan. At every stage, all team members will interact with each other in real time and independently determine objectives for the next stage. They will monitor progress and evaluate risks according to the areas of their professional responsibilities.

It is just the beginning

                Based on the rating conducted by ScrumTrek last October for various sectors of the Russian economy that utilize Agile, project design, construction, and industrial design are holding 12th place. Only 2% of commercial real estate companies are using Agile.

                Software development companies are leading the rating. According to the survey, 36% of software companies utilize Agile values. This absolute leadership is not surprising. The IT industry outlined these values, which are reflected in the manifesto signed at an international conference of software developers in 2001, where they formed the Agile Alliance. There are four main values: interaction between people is more important than processes and tools; a working product is more important than documentation; collaboration with customers is more important than contractural terms; ability to adjust is more important than adherence to the original plan.

                Originating in the IT field, Agile quickly spread to banks and insurance business (22% of the Russian companies were using Agile at the end of 2017). German Gref, the president of Sberbank, is an active supporter of Agile and has been facilitating Agile transformation of the banking sector.

                In addition, Agile has widely spread in the telecommunications sector. 11% of the Russian companies that are using Agile principles belong to the telecommunications sector. These leaders are followed by consulting, retail and food services, heavy industry, marketing research, media, education, energy, and consumer goods. They are followed by design, development, and construction.

The Spirit, Not the Letter

                Lately, market participants are increasingly referring to Agile as a tool to improve efficiency of the real estate development sector. At the end of last year, Valeriy Funtov, doctor of economics and vice president of the St. Petersburg Branch of the International Institute of Project Management, spoke at the round table discussion entitled “The new approach to human resources at construction companies, a strategic program at the intersection of GM, PM, HR”, organized by the Russian Guild of Management Companies and Developers. He called real estate development “strictly [a] business of design”, stating that there are three important components which include technical management, adherence to the company strategy, and agile competences.

                However, there is an opinion among experts that, in such a regulated area as real estate development, it is challenging to adhere to Agile principles. If we approach this problem as an opportunity, solutions can be found. For example, experts suggest to create design offices at companies, which would serve as a buffer between independent self-regulating agile teams and main corporate structures that follow traditional principles. A design office could be in charge of design documentation, generating reports, and regulatory compliance.

                The specific nature of this industry prompts us to adjust, and the Russian companies have been successful in this. According to ScrumTrek, 27% of Agile applications in Russia include development of original tools, based on the values of this management culture. This is three times higher than the world average, which means that, in Russia, companies adopting Agile follow the spirit and not the letter of this management system. They are ready to adjust it to their own specific environment.

Dmitry Manylov

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