The (Software) Poverty Trap David Kitchen DrupalCon Vienna 2017 - - PowerPoint PPT Presentation

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The (Software) Poverty Trap David Kitchen DrupalCon Vienna 2017 - - PowerPoint PPT Presentation

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The (Software) Poverty Trap David Kitchen DrupalCon Vienna 2017 Disclaimers These are my own views and not those of Johnson & Johnson Choice of characters for each role is based on availability of artwork Apologies for any

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The (Software) Poverty Trap

David Kitchen DrupalCon Vienna 2017

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Disclaimers

  • These are my own views and not those of Johnson & Johnson
  • Choice of characters for each role is based on availability of artwork
  • Apologies for any British cultural references
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A Story About Poverty & Debt

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Jim

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Jim Father Agricultural Laborer Grandfather Agricultural Laborer Great Grandfather Agricultural Laborer Great Grandmother Grandmother Great Grandfather Agricultural Laborer Great Grandmother Mother Cleaner Miner Miner Domestic Servant

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A poverty trap is "any self-reinforcing mechanism which causes poverty to persist." If it persists from generation to generation, the trap begins to reinforce itself if steps are not taken to break the cycle.

Wikipedia

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Poverty Traps

for Countries

  • Conflict
  • Natural resources
  • Landlocked Countries
  • Bad Governance

The four poverty traps defined in The Bottom Billion by Paul Collier

for Companies

  • Culture and Retention
  • Buyer/Supplier Monopoly
  • Bad Governance
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A debt spiral refers to a situation where an individual (or firm or country) sees ever-increasing levels of

  • debt. This increasing levels of debt and debt interest

becomes unsustainable, eventually leading to debt default.

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A Similar Story?

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Rosie

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v 0.1

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v 0.3

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v 1.0

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“After Scrum adoption, the most visible symptoms of dysfunction in

  • ur software development department were related to agile

engineering practices, where teams were accumulating a huge amount of technical debt.”

Visualizing and Managing T echnical Debt in Agile Development: an Experience Report Paulo Sérgio Medeiros dos Santos; Federal University of Rio de Janeiro, System Engineering and Computer Science Department Amanda Varella, Cristine Ribeiro Dantas, & Daniel Beltrão Borges; Petrobras, Exploitation and Production Business Solutions Agile Processes in Software Engineering and Extreme Programming: 14th International Conference, XP 2013, Vienna, Austria, June 3-7, 2013, Proceedings

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How do you feel about the technical debt on your current project?

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Financial Thinking

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In software-intensive systems, technical debt is a collection of design or implementation constructs that are expedient in the short term, but set up a technical context that can make future changes more costly or impossible. T echnical debt presents an actual or contingent liability whose impact is limited to internal system qualities, primarily maintainability and evolvability.

The 16162 definition of Technical Debt

As defined at the Dagstuhl Managing T echnical Debt in Software Engineering Seminar, April 2016 http://www.dagstuhl.de/16162

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What is Technical Debt?

Principle Interest Debt

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Principle, the cost to repay

  • Initial Principle

savings gained by taking some initial approach or shortcut in development

  • Current Principle

the cost that it would now take to develop a different or better solution

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Interest, the cost of not repaying

  • Recurring interest

additional cost of incurred by the project because of the technical debt

  • Accruing interest

additional cost developing new software depending on not- quite-right code

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Types of Debt

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Mortgage

Low rate of interest Possibly a big principle

  • Code formatting
  • Code smells
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Loan

Higher rate of interest

  • Performance issues
  • Documentation
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Credit Card

Initial interest free period, followed by high interest Acceptable interest for a short period

  • Quick fixes
  • Business opportunity
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Measure and Track Your Debt

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Burn Up Chart

Story Points

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Business Balance Sheet

Assets

Fixed Assets 10,000 Current Assets 8,000

T

  • tal Assets

18,000

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Business Balance Sheet

Assets

Fixed Assets 10,000 Current Assets 8,000

T

  • tal Assets

18,000 Liabilities

Creditors falling due within one year 4,000 Creditors falling due after one year 15,000

T

  • tal Liabilities

19,000

Net Assets (1,000)

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  • 80
  • 60
  • 40
  • 20

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Velocity vs. Debt

Story Points Debt

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  • 20
  • 10

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Velocity vs. Debt

Story Points Debt

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Good Financial Management

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Your Agile Project Needs a Budget, Not an Estimate by Debbie Madden 29 Dec 2014

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Depreciation

  • Debt incurs Interest
  • Value Depreciates
  • Competition
  • Needs change
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The Sunk Cost Fallacy

The Misconception

You make rational decisions based

  • n the future value of objects,

investments and experiences

The Reality

Your decisions are tainted by the emotional investments you accumulated, and the more you invest in something the harder it becomes to abandon it.

Bankruptcy might be the best option

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Further Information

  • T

echDebt 2018: The inaugural TechDebt Conference will be held jointly with the International Conference on Software Engineering 2018 in Gothenburg, Sweden, May 27–28, 2018

  • Managing T

echnical Debt Workshop Series 2010 to 2017 Archive

  • The Software Development Poverty Trap, Alexandros Marinos;
  • riginal inspiration for this presentation
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Please review the session:

https://events.drupal.org/vienna2017/sessions/software-poverty-trap

David Kitchen

Senior Software Engineering Manager Johnson & Johnson

@dwkitchen david@dwkitchen.com