AGILE MANAGEMENT AS AN ELEMENT OF THE MODERNIZATION OF THE TERRITORIAL STRUCTURES OF THE NATIONAL STATISTICAL INSTITUTE Svetla Ivanova Although some transformations, achievements and breakthroughs have already occurred as a result of the modernization of National Statistical Institutes (NSIs), changing organizatio na l cultures remains one of the most serious challenges. In particular, changing attitudes of employees and their managers to understand that the course undertaken by the NSI requires a change in traditional ways of working, moving to innovative approaches, technologies and processes to improve the effectiveness of structural units and the institute as a whole, and the efficiency of the resources used. On the other hand, the change in the organizational culture is also due to the need for the NSI to be up to date with contemporary requirements for the official statistics, to mainta in a competitive advantage among the producers of information, to adapt quickly to the new technologies and to use the opportunities for knowledge and skills. For example, to collaborate with academic institutions, and to adopt a new way of thinking that encourages the sharing of ideas outside the organization. The transformation of the organizational culture, irrespective of the size of the organizational unit and its location in the NSI’s organizational structure, will, in future, require leadership to address the challenges of flexibility, the impact of the external environme nt, resilience and new ways of working. That is why the heads of each structural unit in an NSI have to answer the questions: What principles should be followed to create a new organizational culture? What capabilities should they acquire themselves to make a successful change in organizational culture? How to overcome the gap between the leadership skills currently available and those that they will need in the future? But first of all, they need to be aware of how flexible the structures they manage are, and to take steps to eliminate what prevents them from being so. Why is flexibility important to the organization and its leaders? In general, organizational flexibility is the capacity of an organization to be infinite ly adaptable without having to change itself. The key here is to be creative and adaptable. There are two main reasons why managers of NSI structures need to focus on flexibility: First, changes sometimes happen too quickly without the possibility of long-term planning. Secondly, the process of continuous improvement and, subsequently, improvement of efficiency depends to a large extent Head of Department “Statistical surveys – Sofia district” in Regional statistical office – Southwest, National Statistical Institute of Bulgaria; E-mail: [email protected].
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AGILE MANAGEMENT AS AN ELEMENT OF THE MODERNIZATION OF THE TERRITORIAL STRUCTURES OF THE NATIONAL STATISTICAL INSTITUTE
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AGILE MANAGEMENT AS AN ELEMENT OF THE MODERNIZATION OF THE
TERRITORIAL STRUCTURES OF THE NATIONAL STATISTICAL INSTITUTE
Svetla Ivanova
Although some transformations, achievements and breakthroughs have already occurred
as a result of the modernization of National Statistical Institutes (NSIs), changing organizationa l
cultures remains one of the most serious challenges. In particular, changing attitudes of employees
and their managers to understand that the course undertaken by the NSI requires a change in
traditional ways of working, moving to innovative approaches, technologies and processes to
improve the effectiveness of structural units and the institute as a whole, and the efficiency of the
resources used. On the other hand, the change in the organizational culture is also due to the need
for the NSI to be up to date with contemporary requirements for the official statistics, to mainta in
a competitive advantage among the producers of information, to adapt quickly to the new
technologies and to use the opportunities for knowledge and skills. For example, to collaborate
with academic institutions, and to adopt a new way of thinking that encourages the sharing of ideas
outside the organization. The transformation of the organizational culture, irrespective of the size
of the organizational unit and its location in the NSI’s organizational structure, will, in future,
require leadership to address the challenges of flexibility, the impact of the external environment,
resilience and new ways of working.
That is why the heads of each structural unit in an NSI have to answer the questions:
What principles should be followed to create a new organizational culture?
What capabilities should they acquire themselves to make a successful change in
organizational culture?
How to overcome the gap between the leadership skills currently available and those
that they will need in the future?
But first of all, they need to be aware of how flexible the structures they manage are, and
to take steps to eliminate what prevents them from being so.
Why is flexibility important to the organization and its leaders?
In general, organizational flexibility is the capacity of an organization to be infinite ly
adaptable without having to change itself. The key here is to be creative and adaptable. There are
two main reasons why managers of NSI structures need to focus on flexibility: First, changes
sometimes happen too quickly without the possibility of long-term planning. Secondly, the process
of continuous improvement and, subsequently, improvement of efficiency depends to a large extent
Head of Department “Statistical surveys – Sofia district” in Regional statistical office – Southwest, National
on employees' willingness to change the organization of their work. The response to sudden
changes reflects the ability of the organization to adapt, but only when those changes, even radical
ones, are predictable (for example, changes in the composition of management teams, a change in
strategy, the start of new projects, budget constraints, etc.). Reaction methods in this case will
include everything that can be done to respond to changes without the ability to influence the
underlying cause. Simply put, adaptability in response to changes is like treating the symptoms of
a chronic illness. But when a sudden response to a sudden change is needed, the good manager
must be able to keep his team focused on the horizon rather than the momentary action in response
to the change.
Flexibility, however, does not mean adaptability. Flexible organizational culture is a
management philosophy that does not rest solely on the successful response to change, and accepts
challenges as an opportunity for improvement; it continually strives for improvement even when it
has already successfully coped with change. Such an organization views failure as an opportunity
for learning, pursues its goals, has vitality, and has synergy between mission, vision, and values.
In such an organisation, making a quick decision does not only happen during a crisis but on a daily
basis. There is a strong ability to perform tasks, high levels of accountability, stakeholder thinking,
and strong interaction with other external organizations or internal structures. And as a result of all
this, it is financially more successful without compromising the quality of work.
Can an Agile organizational culture be created in Regional Statistical Offices (RSOs)?
Creating an Agile organizational culture is possible and should be the first strategic priority
of the RSOs management teams, because it is the culture that determines the ability of those RSOs
to regulate their activities and processes and to fulfill their objectives, regardless of the impact of
external factors. However, in order to achieve this, a change in the whole RSO management
approach is needed, focusing on four main principles: purposeful leadership, personal change,
participation of all, and focused sustainability. If these four principles are the central to the
management and leadership of all three levels (Director, head of Department and head of sector),
then the syndrome "does not depend on me, the boss decides" (or, in the language of recent
literature, "I am the director of the waterfall") is eliminated.
Although many public institutions already have experience of, or have begun applying
different modern management approaches for the first time, there are not many employees in RSOs
who are aware of the nature and benefits of them today. Common practice is to follow the rules
without an in-depth insight into the reason for their creation. This is possibly due to a somewhat
complex communication system, and geographical remoteness of the territorial units. This does not
mean that the people working in RSOs are bad employees or managers, but rather that they are
focused on the fulfillment of their direct duties. This is good, but not good enough, because it turns
out that professional experience, accumulated over years, and perfect execution of duties, is hiding
an insufficient knowledge of corporate philosophy and a lack of strategic thinking, resulting in
inadequate protection of the position of the RSO in the context of a change. As a result, there are
perfect performers since the early years of their work experience in the RSO, but without any real
change in their effectiveness over time. Insufficient knowledge and experience of modern
management tools, and the lack of initiative for breaking the status quo in the leadership teams in
the RSO, leads to a reduction in the motivation of staff and generally to lower performance
indicators. This is also the reason why the principles of Agile management must be known and
shared by each employee.
Also, if the focus in the RSO is to improve its efficiency, it is necessary to create an
organizational culture that includes knowledge of the principles of Agile1 and Lean2 management
the differences between them and their respective implementation tools, e.g. Scrum and Kanban.
The management that I likened to a waterfall has been tested and optimized over the years and
therefore provides comfort to RSO executives and employees. However, in today's dynamic world,
the search for comfort in managing an organization is not a positive quality for its leaders. First
and foremost, this is because of the dynamics of the external factors of the functioning environment.
It is impossible to identify in advance all the risks faced by the employees and managers in the
RSO if they simply descend on the waterfall of this convenient status quo. In other words, how
many of the supervisors in the RSO, before commencing work on a task, can provide their teams
with instructions that, if followed exactly, and without any other information, bring the task to
completion? Given that RSOs, as part of a NSI, produce statistical information needed for
government, and that the inputs involved in producing this information are part of the country's
budget, we are responsible to the public for the adequacy of our policy regarding the resources
invested in our activity.
Can Agile management make the management "waterfall" in RSOs change its
direction?
In previous publications, I described in detail the factors that define the NSI as a unique
state institution and RSOs as unique territorial structures of the state administration. It turned out
that there are modern private sector management tools that can be successfully implemented in
RSOs by adapting them according to their functions and organization. For example, adapting and
applying Lean Management in RSOs can only bring benefits to them and the NSI respectively.
In essence, Agile management is a set of methods and tools that are based on repetitive
action at certain stages of the work, as well as self-organizing teams of staff with different
functions, focusing on stakeholder requirements and aligning the organization with external
environment factors that have an impact on its activity. The Agile approach was developed,
structured and described about 15 years ago. Originally, it was mainly used by small software
startup companies, but is now being applied in very large corporate enterprises. This is because it
1 Agile Management (Flexible Management) - a style of management that focuses on quality assurance and
continuous self-improvement by using only results-yielding methods. 2 Lean management includes approaches and tools used by the organization to eliminate all activities and processes
in production processes that take time but do not add value to the users of the products.
gives positive results in different projects and different activities, not just in the area of software
development.
Agile management differs from most management styles in that it promotes change, no
matter at which stage of implementation, adaptive short-term planning and flexibility, and its
benefits are primarily for stakeholders.
When looking for an effective and unique process management method, the use of Agile
management techniques is appropriate for RSOs for the following reasons:
Agile management focuses on quality assurance and ongoing self-improvement, using
only procedures that deliver results and contribute to the success of implementation. In the context
of the NSI modernization, this is essential for RSOs.
Agile management requires transparency and discipline in performing tasks, implie s
rapid pace, flexibility and delegation of rights in a dynamic environment. RSOs have a real
potential for such a way of working due to organizational values established over the years.
RSOs are closest to respondents in the chain of statistical information processes, which
creates a constantly open line of communication with them. This, in turn, can be a good check, as
Agile management takes care of each stakeholder and their specific needs.
The objective of the reform of the NSI's territorial structures is continuous
improvement and better results for all activities in RSOs, not just the final product of the production
cycle within RSO. This is the basis of the philosophy of Agile management.
Some facts from the history of Agile methodology that lead to interesting conclusions: In
February 2001, 17 software developers met to discuss Agile development methods. In the course
of the debates, they united around the idea of defining unified principles for flexible working
methods, thus arriving at signing the Manifesto on Agile methodologies3. It presents the values
that drive its application:
Individuals and interactions over processes and tools;
Working software over comprehensive documentation;
Customer collaboration over contract negotiation;
Responding to change over following a plan.
The principles set out in the Manifesto are:
1. Our highest priority is to satisfy the customer through early and continuous delivery of
valuable software.
2. Welcome changing requirements, even late in development. Agile processes harness
change for the customer's competitive advantage.
3 http://agilemanifesto.org/principles.html.
3. Deliver working software frequently, from a couple of weeks to a couple of months,
with a preference to the shorter timescale.
4. Business people and developers must work together daily throughout the project.
5. Build projects around motivated individuals. Give them the environment and support
they need, and trust them to get the job done.
6. The most efficient and effective method of conveying information to and within a
development team is face-to-face conversation.
7. Working software is the primary measure of progress.
8. Agile processes promote sustainable development. The sponsors, developers, and users
should be able to maintain a constant pace indefinitely.
9. Continuous attention to technical excellence and good design enhances agility.
10. Simplicity - the art of maximizing the amount of work not done - is essential.
11. The best architectures, requirements, and designs emerge from self-organizing teams.
12. At regular intervals, the team reflects on how to become more effective, then tunes and
adjusts its behavior accordingly.
Over time, the Manifesto principles became the basis of Agile Governance as a whole.
Each RSO employee would recognize the values and principles of the Manifesto as the
circumstances that make his or her work successful - the context, the involvement of the clients
(the stakeholders in the work of RSO employees), the innovation, the modularity of the work
process, the error response. And this is because:
A basic principle in Agile management is to work quickly. Tasks that need to be
executed within a specific timeframe can be broken down into separate activities with short
deadlines, validating the outcome at the output of each activity. This ensures that any changes or
ideas for improvement can be tested earlier. In addition, each activity from the process will build
on the already verified results and when a problem is found in the output, it is easier to find the
source. If there is no such modularity in the execution of processes, and validation of the result is
undertaken only at the end of the process, to identify the cause of problems it is necessary to look
at the entire chain of activities. The situation becomes even more complicated if the process is only
completed by the deadline. The Agile way of working gives the contractors the competitive
advantage of simultaneously fulfilling the requirements for timeliness and quality of the
information produced.
Communication and motivation are essential to the Agile way of thinking. The
managers (those responsible for the statistical survey or project), stakeholders and task executors
should be in continuous communication. Each party must provide up-to-date information to the
other and therefore is motivated to use the new information received by it. Agile management is a
fast, dynamic and flexible path to success, but only when all participants are really ready to accept
criticism, understand changes or failures, and have the motivation to work together to achieve a
common goal.
Simplicity is another key element of the Agile philosophy of achieving positive results.
This means abstaining from previous patterns of behavior or organization of work, and focusing
only on the performance of the specific activity in the process, eliminating those activities that do
not add value to the end product. This will increase the effectiveness of the team and the
implementation of the project will take less time.
The team working on a task is formed without observing the formal structure of the
organization, and is in accordance with the professional capacity of employees in it. This team can
separate time for the task into time intervals with intermediate deadlines. This enables the quality
of the end product to be improved, and provides an opportunity for a more accurate assessment of
team efficiency. The imposition of work organization templates or deadlines that gave positive
results for other tasks, does not guarantee the good quality of the final result. Practice proves that
in unforeseen crisis situations, when there is no way of applying an approved model of work for
the implementation of the tasks, informal self-organizing teams are formed, whose work ends with
a result of sufficient quality, within the deadline. This shows that, for this purpose, the right people
have found each other in a natural way, breaking the imposed model of the official organizationa l
structure. The most motivated are people who gravitate to tasks they know they can accomplish.
Agile management requires the execution of a task or project to be carried out in stages, at
the end of which, before passing on to the next one, the outcome is assessed. Each stage is a new
opportunity to correct and maintain the quality of work. Information on the performance of each
stage is returned in reverse order from the contractor to the manager and from the manager to the
stakeholders. The difference in organization between the traditional management approach (which
I likened to the waterfall) and the Agile approach is presented visually in Fig. 1 and 2.
Figure 1. Organization of task / statistical survey in the traditional way ('Waterfall of
Management')
Stakeholders Deadline for
implementation
Supervisor
Planning
Design and methodology
Activities to perform
the task assigned by the supervisor
Implementation of action
Department/Sector Validation of
the results
Final result
Figure 2. Organization of task execution /statistical research through Agile management
Pla
nn
ing
Activity 1
Interim period 1
Deadline for
implementation Activity 2
Interim period 2
Activity 3
Interim period 3
Task teams
Stakeholders
Supervisor
Des ign and methodology
Implementation of action 1
Val idation of the results 1
Intermediate result 1
Pla
nn
ing
Pla
nn
ing
Des ign and methodology
Implementation of action 1
Val idation of the results 1
Intermediate result 1
Des ign and methodology
Implementation of action 1
Val idation of the results 1
Final result
Pla
nn
ing
Agile management in the statistical production process - is it new?
Agile Management breaks the execution of a task into modules of activity. In this respect
the logical reference to a process-oriented approach to the production of statistical information is
noted, such as the Generic Statistical Business Process Model (GSBPM). The advantages of the
process approach over the divisional management approach in RSOs are as follows:
The strict design of each process will lead to improved performance metrics, as
resources and time are not wasted on useless efforts. Therefore, those activities that do not add
value to the final product will be eliminated.
In a process-oriented management approach, the success of each organizationa l
structure will depend on the proper implementation of its own well-designed processes. Employees
will work in teams go beyond their departments, and managers will not oversee, but will help their
subordinates. Therefore, there will be a unique approach to the responsibilities and patterns of
organization of the team.
Thanks to its multidisciplinary feature, the process management approach will ensure
high-quality statistical production that meets the requirements of users. This is because all the
features are optimized to achieve maximum compatibility. Therefore, any subsequent activity in a
process will stand on the already validated results.
Continuous communication in all directions (within the team, between the team and
the supervisor, and between the supervisor and the stakeholders) is the framework that mainta ins
the whole set of individually designed procedures, according to the pre-specified time limits of the
output of the production process, satisfying the requirements of the interested parties and meeting
the quality criteria.
In 2016 the Bulgarian NSI developed a General model of the statistical production process
(GMSPP) in accordance with GSBPM, version 5.0, which reflected the peculiarities of Bulgar ian
statistical system in terms of the stages of collection, processing, analysis and dissemination of
statistical information. It would be interesting to look for the place of RSO in its conceptual
framework and, in particular, those activities performed by its employees. Fig. 3 illustrates how
Agile management corresponds to the principles of organization of the statistical production
process by phases and sub-processes implemented in the territorial structures or the headquarters
of the NSI. The arguments presented in this way are found in the explanatory part of the GSMPP.
It should be specified that the set of activities for the implementation of the sub-process of phases
in NSI varies between the headquarters and the RSOs, depending on the functional characterist ics
of the two types of structures.
Figure 3. Connection of Agile management phases and sub-processes of GMSPP in NSI
"Planning" stage under Agile management
At this stage, the planning activities are mostly carried out at the NSI headquarters. The
RSOs only perform some activities of sub-processes 2.3. "Developing a methodology for data
collection and conducting the survey" and 2.6. "Design of production (information) systems and
workflows".
In the context of the GMSPP Phase 2 "Design", the RSOs plan and select the most
appropriate method to collect data from respondents, depending on the type of study, the object of
study, and the toolbox provided by the headquarters, taking into account the possibility of the
method chosen to reduce the burden on the respondents or the NSI. It is planned to organize the
survey in the relevant RSO as a work flow, starting with employee training, assigning
responsibilities and responsibilities to the team through data collection, processing, deadlines for
interim results, ways to validate them and ending with the transmission of the final result to
interested parties.
"Design and Methodology" stage under Agile management
Some of the activities of sub-processes of phase 3 "Building the necessary tools for
conducting the research" are carried out only in the headquarters of the NSI, others are carried out
jointly with RSO, whilst others are done in RSOs as a separate stage of the production of statistica l
information.
At the level of territorial structures, under sub-process 3.1. "Development of data collection
tools", interviewers take part in the preparation of the questionnaire with the headquarters of the
NSI, field materials are developed to facilitate communication with respondents with difficult ies
in completing questionnaires (Roma, older people, people with disabilities, people with specific
employment, etc.), employees are introduced to the system operating instructions and logical
controls. Unlike the tools provided by the NSI Central Unit, which must be approved for their
actual implementation, in order to guarantee the quality of the information, the data collection
techniques of RSOs employees are subject to constant review and change.
According to the explanations in the GMSPP sub-processes 3.2. "Workflow
Configuration", the RSO defines a road map for the implementation of the statistical survey at
territorial level, distinguishing the working processes for the production of statistical information
from the administrative-support activities. Taking into account the prescribed quality standards and
deadlines for implementation.
In accordance with the explanations in the GMSPP sub-processes 3.3. "Testing the
Statistical Production Process", RSO employees can take part in testing programs and mobile
devices for data collection and processing. An analysis of good practices from other statistica l
surveys is carried out and, if applicable, they are adapted for the purposes of the specific statistica l
survey.
"Execution" and "Validation" stages under Agile management
In the territorial structures of the NSI in Phases 4 "Data Collection",
5 "Data Processing", and 6 "Analysis" of the GMSPP, sub-processes are executed with repeated
iteration and validation of intermediate results, so that the final result with the required quality is
reached within the predetermined deadline. In the implementation of the sub-processes in these
three phases in the RSOs, it is often necessary to return to a sub-process or activity that has already
passed. The reason is that the logical cycle data collection - data processing - analysis is repeated
multiple times until you achieve the desired quality of the final product, and each phase ends with
the interim result after the validation of the data.
In the context of the GMSPP Phase 4 "Data Collection", information from the respondents
is collected using different methods in the RSOs. At the same time, arithmetic and logical controls,
and analysis of detected deviations from the logical controls are performed. This phase ends with
the introduction of the data in a statistical information system, accompanied by data coding and the
gathering, if necessary, of additional information from the respondents. At the end of Phase 4, the
intermediate result is data that is subject to further processing in Phase 5 "Data Processing". It
includes sub-processes for data aggregation, classification and data coding, analysis based on
quality criteria, gathering additional information from respondents and / or editing, if necessary.
At the end of Phase 5, the intermediate result is a database with output tables to be analyzed for
different purposes in Phase 6 "Analysis". The results of the previous phase are verified with
historical data, the trends of the phenomenon or process under investigation are analyzed, and the
quality of the statistical products is validated in accordance with the general quality framework.
"End result" stage under Agile management
In the territorial structures, in the context of the GMSPP Phase 7 "Dissemination", the
activities that carry the final result from the implementation of the previous phases and sub-
processes to the stakeholders are implemented. This includes making press releases and
publications at the regional level and providing information on customer requests. User feedback
is collected through questionnaires, about the need for information and the quality of the data
received. It is the results of this feedback that close the quality management cycle, leading back to
the Planning stage. If it is necessary to improve the outcome of the activity or to develop a
conceptually new approach to conducting the statistical survey, all phases will be repeated from
the beginning. But even if the results fully satisfy the expectations of the interested party and the
project manager, the conditions of the external environment in which the statistical office operates
are constantly changing and this implies continuous monitoring, and measures to maintain a high
public profile of the institution.
What happens when Agile management meets ISO 9001: 2015?
As a member of the European Statistical System, the NSI complies with the principles of
the European Statistics Code of Practice. From 2015 onwards it is certified according to the ISO
9001 standard. It is interesting in this case how these quality standards for the statistical production
process and the statistical product, correspond to Agile management. In search of an answer to this
question, it is good to look at how the European Statistics Code of Practice corresponds to the
Manifesto of Agile methodologies and to the quality standard ISO 9001.
Table 1. Comparing the principles of quality management of the statistical production
process with those of Agile management
Principles of the European
statistics code of practice Principles of the Manifesto on
Agile methodologies Principles for quality
management of ISO 9001 Institutional environment Principle 1: Professional independence Principle 2: Mandate for data collection Principle 3: Adequacy of resources Principle 4: Commitment to quality Principle 5: Statistical confidentiality Principle 6: Impartiality and
objectivity
4. Daily collaboration between business people, developers and project managers throughout the project 5. Projects are built by motivated individuals, provided with support and resources and voted for trust 6. The most efficient and effective method of conveying information to and within a development team is face-to-face conversation 7. Working software is the primary measure of progress 8. The constant pace of sponsors, developers and consumers leads to sustainable development
2. Leadership - leaders at all levels establish unity of purpose and direction and create conditions in which people are engaged in achieving the organization’s quality objectives 3. Engagement of people - competent, empowered and engaged people at all levels throughout the organization are essential to enhance its capability to create and deliver value
9. Continuous attention to technical excellence and good design enhances agility 10. It is extremely important to eliminate work that does not add value 11. The best architectures, requirements, and designs emerge from self-organizing teams 12. At regular intervals, the team discusses how to improve its efficiency, then adjusts their work according to the decision
4. Process approach - consistent and predictable results are achieved more effectively and efficiently when activities are understood and managed as interrelated processes that function as a coherent system 5. Improvement - successful organizations have an ongoing focus on improvement 6. Evidence-based decision making - decisions based on the analysis and evaluation of data and information are more likely to produce desired results
The numbering of the principles corresponds to that in the official documents
Statistical output Principle 11: Relevance Principle 12: Accuracy and reliability Principle 13: Timeliness and punctuality Principle 14: Coherence and comparability Principle 15: Accessibility and clarity
1. Satisfying customer needs through timely delivery of useful software 2. It is possible to change the product even at an advanced stage of development for the sake of customer satisfaction 3. Frequent delivery of working software in shorter terms
1. Customer focus - The primary focus of quality management is to meet customer requirements and to strive to exceed customer expectations 7. Relationship management - for sustained success, an organization manages its relationships with interested parties, such as suppliers
When it comes to quality management, each organization uses established procedures and
standards as an instrument. In Agile management, “Scrum” is a framework that, thanks to its
modularity and versatility, has changed the perceptions of project management and has proven the
advantages of such a type of management over the traditional one. It is interesting to see what
happens when ISO and Scrum meet in the Agile management environment of statistical processes.
ISO recommends developing a quality management manual that will help the statistica l
organization to improve and guarantee the quality of statistical products and services through
continuous monitoring of the statistical business process and user satisfaction. Once there is such
a quality management manual, the next step is to apply it. To this end, the Scrum framework
provides opportunities for an empirical control of processes throughout the life cycle of product
development through iterations of the four formal events for monitoring and adaptation: Short-term
planning; synchronization of activity; review of the intermediate result; creation of an improvement
plan.
In Scrum there are three main roles - Product Owner, Scrum Master, and Development
Team. ISO also recommends developing a hierarchy that will help improve the overall performance
of the process. For example, in ISO 9001: 2015, emphasis is shifted from the management to
leadership and engagement of leaders (clause 7 - Leadership). In fact the distribution of GSBPM
sub-processes between the headquarters of the NSI and the RSOs (Figure 3) creates a favorable
environment for the application of Scrum without compromising ISO requirements.
ISO and Scrum focus on continuous improvement. ISO recommends that all activities in
the Quality Management System (QMS) be planned, implemented, measured and improved (ISO
also works on similar lines - performance planning (Sprint Planning), performance (Sprint),
performance review (Sprint Review) and retrospective performance (Sprint Retrospective). In
Table 2, ISO clauses are shown, which confirm the possibilities for Scrum approach in the
statistical organization.
Also supporting the findings in Table. 2: ISO 9001 refers to the cycle Plan-Do-Check-Act
(PDCA)4 as a basis for quality management systems. The Scrum approach, on the other hand,
works the following way:
Planning (Plan): At its meetings, the Development Team plans to launch the Sprint, starting
with the Product Backlog and Sprint Backlog.
Performance (Do): The Development Team performs the Sprint by assessing the remaining
work and refining the Product Backlog.
Check (Check): The Development Team reviews the Sprint to check the incrementa l
increase in product functionality and review of the Sprint to check the process and environment.
Adjustment (Act): After the review of the Sprint, the Product Owner can update the Product
Backlog that the Development Team will step on to plan the next Sprint.
As you can see, ISO 9001 and Scrum are not two different universes. In both cases, the goal
is to improve the production of statistical products and services. Simultaneous application can
result in one result - improving customer satisfaction.
4 The Plan-Do-Check-Act (PDCA) is also known as the Deming Cycle.
2. Link between ISO 9001:2015 and Scrum practices in the production and provision of statistical products and services
ISO 9001: 2015
clause Actions according to the requirements of the ISO 9001: 2015 clauses Actions by Scrum
5.1.2. Customer
focus
Managers need to demonstrate leadership and commitment to the focus on consumers by ensuring that
statistical products and services comply with regulatory, legal and consumer requirements, emphasizes their satisfaction, and the risks and opportunities are properly identified.
Create a Product Backlog with
customer-oriented product features before the first run
begins. It evolves throughout the life of the product.
5.3. Organizational
roles, responsibilities and
authorities
Management should delegate responsibilities and rights for the relevant roles of the QMS to the
appropriate employees and are disclosed and understood within the organization to ensure compliance of the QMS with the standard, its integrity in change, adequacy of the processes for the planned
statistical products, and service and performance reporting.
Scrum differentiation - Product
Owner, Scrum Master and Development Team.
6.1. Actions to address risks and
opportunities
When planning QMS, risks and opportunities need to be determined according to the organization's specific needs and expectations and expectations of stakeholders to ensure that QMS can achieve its
intended purpose. Actions taken to address risks and opportunities must be proportionate to the potential impact on the compliance of statistical products and services.
Analysis of root causes, retrospective execution, update of
the Product Backlog.
7.4. Communication
The order of internal and external communications on the QMS should be defined. Including what, when, with whom, how, and who will communicate.
Conduct daily meetings, updating Product Backlog, review the implementation and execution of
flashback.
8.1. Operational
Planning and Control
Processes for the production of statistical products and services must be planned, implemented and
controlled in a way that ensures compliance with consumer requirements and with legal and regulatory requirements
Evaluate the remaining work,
schedule the performance, review the performance, and profile the user.
8.2.2. Determination of
Requirements related to Products and Service
When defining requirements for statistical products and services to be offered to users, the NSI must ensure that they comply with all legal and regulatory requirements and can actually be made available
to users upon request.
View the profile and its eligibility criteria for the product
or service.
8.2.3. Review of requirements related to products
and services
A review should be carried out before providing the finished product or service to the consumer, taking into account the requirements set out therein, the legal and regulatory requirements, those of the NSI and those that have arisen subsequently. Not only the original order and results are documented, but all
new requirements for the product or service are documented.
Revision history of user requests.
8.2.1. Customer
communication
Communication with users of statistical products and services involves providing product or service
related information, query processing, queries or contracts, changes to them, post-product feedback, user identity control.
Sprint Review and Sprint
Retrospective
8.3.2. Design and
development planning
The nature, duration and complexity of the activities of the statistical survey, the activities necessary to
verify the results and the validation of the activities, the participants in the production of the statistical product, the resources, the communication with the stakeholders, the way of documenting the processes
should be provided.
Performance planning,
assessment profile and definition of the stages.
8.3.3. Design and development inputs
Consistency of the input with the projected objectives has to be ensured, the contradictions between the design and the input design have to be solved and the information about the design and development of
the inputs is documented.
View the profile and criteria for a finished product or service.
8.3.4. Design and
development controls
Control of the design and execution process must be applied to ensure that results are achieved that are
defined that they will meet the requirements that design and development outputs meet the requirements of the input. Verification and validation have different purposes and can be carried out alone or in combination.
Retrospect of the performance
testing of the implementation.
8.3.5. Design and development
outputs
The conformity of the finished product or service with the design of the statistical survey and the initial eligibility requirements and eligibility criteria has to be ensured and appropriate procedures are in place
to monitor and measure eligibility criteria. These procedures shall be documented.
Review of performance.
8.3.6. Design and development
changes
Changes made during or after the design and development of statistical products and services should be identified, monitored and controlled to ensure that there is no adverse impact on compliance.
Change management, performance planning, review of
implementation.
8.6. Release of products and
services
Pre-planned measures must be implemented through the different phases and sub-processes of the production of statistical information to verify whether product and service requirements have been
fulfilled. The release of statistical products and services must not take place until the planned measures have been satisfactorily implemented.
Review of the implementation, regular meetings, planning the
implementation.
8.7. Control of nonconforming outputs
Appropriate action must be taken on the basis of the nature of the non-compliance and its impact on the product and service requirements, whether established at the time of delivery or after it has been provided. Compliance with the requirements is also checked when correction of incorrect outputs is
made.
Testing, review of implementation
9.1.2. Customer
satisfaction
The degree of satisfaction of the needs and expectations of users of statistical products and services
should be monitored through different methods of obtaining feedback according to the type of users.
Review of performance.
9.1.3. Analysis and evaluation
The information obtained from the monitoring and compliance measurement should be analyzed, the results of which will be used to assess not only the product or service's compliance but also the degree
of consumer satisfaction, the effectiveness of the QMS, the actions taken to address Risks and opportunities, the fulfillment of the respondents' obligations and the need to improve the QMS.
Retrospect of execution.
10.2. Nonconformity and corrective action
Where non-compliance, including consumer complaints, occurs, control and correction actions have to be taken to address the consequences to address the cause of the non-compliance by reviewing and analyzing the non-compliance, identifying the reasons, updating the risks and opportunities or, if
necessary , And changes to the QMS.
Analysis of root causes, retrospect of execution
10.3. Continual
improvement
The QMS needs to be continuously improved in view of its suitability, adequacy and effectiveness. The
results of the analysis and evaluation are the guideline, thus determining whether there is a need or an opportunity for improvement.
Flashback to the implementation,
review of effectiveness.
Is Agile Governance a "Silver Bullet" to deal with risk?
Risk management is necessary to identify, manage, and eliminate the sources of risk before
they become a threat to the organization's goals. Actions are generally in the following areas:
Risk identification - List the risks that jeopardize the achievement of the objectives or
the project;
Risk analysis - assesses the likelihood and impact of each risk;
Risk prioritization - identifying significant and tolerated risks based on likelihood and
impact;
Risk management planning - plans and measures to address each risk;
Counteracting Risk - Implementing the risk management plan;
Risk monitoring - the implementation of measures to address each risk is monitored
and the cycle continues with the identification of risks.
In Agile management, risk management is not needed as an additional procedure, as Agile
essentially focuses on the continuous identification and reduction of risks through its short
iterations, numerous verifications and validations, emphasizing the increment of the product or
service and the satisfaction of stakeholders. However, in the context of Agile management, some
risk management practices can move it one step further in the overall process of continuous
improvement. Below is presented the most commonly used approach for risk management in terms
of Agile management, but adapted to the process of producing statistical products and services in
statistical offices. Several instruments are used for this purpose:
1. List of risks. By its very nature, this is not new to the heads of structural units in the NSI
because they are updating it annually in connection with the system of financial management and
control in the organization. But now, the same list will be considered in another light. The steps in
managing risk in Agile Management are:
Create a list of potential risks during the planning of the implementation (stage
"Planning a Sprint" of Sprint);
Assess the probability and impact by a scale of 1 to 3 or 1 to 5;
Calculate the exposure to each risk by multiplying the probability and impact. The
higher the exposure, the more significant the risk and the more serious attention is needed.
"Exposure = Probability × Impact"
Determination of risk mitigation measures. They can be deployed as separate stages in
the production of statistical information. In the Scrum approach, they can be added to the Product
Backlog as separate stages of the production process. However, if the risks are more the result of
external obstacles and can be removed by the Scrum Master, they should not be added as phases
of the Product Backlog. Finding the right measures to counteract risk is actually the most complex
part.
2. Analysis of the causes of the risk. The key to defining the most appropriate risk-
mitigation measures is to identify the real cause of the risk. When there are indications of a problem,
it is important to investigate all the circumstances that could cause it before a solution is sought.
The cause-and-effect analysis5 is quite a convenient way of doing so because it combines
the techniques of brainstorming and mental mapping, and allows us to address all the causes of the
problem, not just those that are most obvious. This analysis is visualized by a "fish bone" chart.
Building the overall picture of the causes of a problem starts from the problem and continues to the
fullest possible explanation of the causes. In the production of statistical information, the factors
implying risks are grouped into 6 areas - methodology, resources, employees, processes,
respondents, stakeholders, environment and management (Figure 4).
Fig. 4. Diagram of causal analysis of risks in the statistical production process
5 The cause-and-effect analysis was developed by one of the pioneers in quality management, Professor Kaoru
Ishikawa in 1960.He introduced it formally as a technique in his 1990 book "Introduction to Quality Control".
This approach to risk management in Agile management is particularly useful not only for
risk management, but also in case of problems at the end of each iteration. McKinsey's 7-S model6
could serve as a starting point for analyzing the causes of risks.
3. Track the progress and visualize it through a progress chart and a radar chart.
As soon as the risk list with counter-measures is ready, a chart of progress can be made to
track the risk over time. It will provide important information throughout the business process. In
Fig. 5, such a diagram is presented with the default values of the defined risk exposure estimated
on the scale of 1 to 5. If a risk assessment is performed at the end of each iteration, the Development
Team may choose between focusing on the mitigation of the risks at the time of iterations (the blue
line of the chart) or on obtaining quick results without risk management (the green line of the chart).
In addition, this chart can also be used when choosing different options to counteract one
risk. Then the graphs of the risk assessment for each of the options are located on the same diagram,
and the one that most closely approximates to the ideal risk response is chosen.
Fig. 5. Chart the progress of risk over time
6 Diagnosis model 7-S of McKinsey in RSOs is presented in my post "Concept of development of regional statistical
offices in the new organizational structure of the National Statistical Institute" magazine."Statistics" 1/2016
Radar charts can also be of great help to track progress in retrospective execution or risk
management (Fig. 6). Here, however, the approach I propose is different from the standard
assessment through the exposure values of each risk. It is clear that Scrum practice, ISO 9001 and
the PDCA cycle are very closely related to each other, this fact may be helpful in retrospective
reviews of performance. The nine criteria of the Common Assessment Framework (CAF), based
on the cycle PDCA, can be used as supporting pillars. They can be judged according to their
maturity and the achievement of the goals set, and, at the discretion of the team, only a sub-set can
be selected. This is practically nothing new, as the CAF classic scoring methodology relies
precisely on this type of assessment. In order for the radar chart to fulfill its purpose, it is necessary
to evaluate at the beginning of implementation, to assess at each performance review, and to define
real measures to address the most urgent risks. A must is to have the same understanding of the
meaning of each pillar by all members of the team, the Scrum Master and the Product Owner.
Using the criteria of the CAF, the pillars have the following semantic content:
1. Leadership - The assessment focuses on how managers create conditions for clarity and
unity of the structural unit's objectives, unit and employee development, the functioning of an
appropriate governance mechanism, effective interaction with all stakeholders.
2. Strategy and Planning - The evaluation focuses on the extent to which the objectives of
the administration are tailored to the needs of stakeholders, the need for modernization and
innovation and whether they are updated and adapted as a result of critical monitoring.
3. People - The assessment focuses on the extent to which human resource management
policy exploits the strengths of employees, encourages people's engagement, motivat ion,
development and retention in the structure.
4. Partnerships and resources - The evaluation focuses on the extent to which the
management of the material resources and the expertise of partners and employees, is transparent,
adequate and in line with the objectives and the external environment.
5. Processes - The evaluation focuses on the effectiveness and efficiency of managing the
production and dissemination of statistical information, whether innovation leads to an
improvement in the quality of statistical production and an increase in value for consumers.
6. Consumer driven results – The evaluation focuses on stakeholders' satisfaction with the
statistical products and services provided.
7. Results related to people - The evaluation focuses on what the administration has
achieved in terms of competence, motivation, satisfaction, attitudes and performance of its
employees.
8. Results related to social responsibility - The evaluation focuses on the contribution of the
administration to improving the quality of life, equal opportunities for employment, ethical
behavior, public involvement.
9. Key performance outcomes - the assessment focuses on the ability of the structural unit
to achieve key performance outcomes in the short and long term.
The rating of pillars according to maturity, in the context of the PDCA cycle, can be done
through a point system in the following way:
Criteria for evaluation of pillars 1 - 5 Criteria for evaluation of pillars 6-9 score
No activity in the area No measured results or information 0
Under planning Negative results or unmet goals 1 - 3
In progress Static results or partially achieved goals 4 - 6
Under review
Improved results or more goals are
achieved 7 - 9
Undergoing correction Significant results or all goals have been achieved 10 - 12
Established continuous process of
continuous improvement
Excellent and sustainable results or all goals
are achieved 13 - 15
Fig. 6. Radar chart the progress of the risks by pillar
Similarly, risk exposures are used if the risks are divided into groups such as strategic risks,
operational risks, management risks, technological risks, reputational risks, security risks, financ ia l
and legal / regulatory risks. In this respect, the work of the NSI structures will not be difficult
because the entire administration has a well-functioning system of financial management and
control under the Law of financial management and control in the public sector. Risk registries are
prepared annually by the heads of directorates and RSOs under the direction of the “Internal Audit”
unit in the headquarters of NSI.
The charts of risk analysis and risk progression can be extremely valuable in Agile
management of the statistical organization in two ways:
Firstly, they force the team to think about the risks and minimize them, because through
these approaches, the risks acquire specific content, title and other dimensions, and the progress in
the work for their mitigation is measurable and visualized.
Secondly, they create prerequisites for the transparency of the production process of
statistical products. Stakeholders can be informed about how to manage the risks in the
organization and how they themselves can help mitigate these risks, especially when the cause of
the risk is related to them.
At first glance, Agile management appears to be a "silver bullet" for risk, and with its
simultaneous application to the statistical business process, along with the standard risk
management procedure, there are some critical points:
1. Under Agile management, the risk management procedures seem unnecessary. The
reason for this is that Agile management promotes credibility and empowerment of teams, allowing
for regular prioritization of activities and constant attention to the flow of activities. On the other
hand, traditional risk management is aimed at preventing potential problems rather than
concentrating on current tasks. Moreover, traditional risk management procedures require several
levels of reporting, which is at odds with the organization of Agile processes, but gives it a rather
informative character. However, the planning of NSI statistical surveys is carried out annually
through the National Statistical Program, which requires that risks across the risk horizon be
considered, taking into account cumulative risk and corporate risk history. In Agile management,
in each sprint retrospective, there may be a reassessment of risk exposure in the risk register through
a simpler procedure. The decisions taken about further actions to mitigate the risk can be
implemented in subsequent sprints. Risk reporting will be according to the periodicity laid down
in the risk management strategy of the organization.
2. In the sense of the traditional risk management concept, Agile management is a weak
basis for assurance. Indeed, it focuses on the implementation of operations at an operational level
with shorter time horizons and the empowerment of decision-making teams, which gives rise to
uncertainty in the higher management levels as regards the implementation of the strategic
objectives. An NSI faces many risks in the contemporary world - related to maintaining data
security, with the ability to keep pace with rapid changes in technology and society demands or
with public finance constraints. At the territorial level, we can not afford to overlook risks. In
addition, there are circumstances surrounding the internal operating environment on which our
success depends - the professional competencies of the employees, the quality of our statistica l
outputs and the vulnerability of our systems and processes. However, the annual objectives of the
organization reflect, in the short term, the operational objectives stemming from the NSI's strategic
objectives, and there is no logical justification that requires the consideration of operational risks
separate to strategic ones.
3. Short-term planning in the statistical production process makes sense of long-term risk
management plans. Each public organization must be able to report on the use of public funds, the
strategic direction of the organization, and how it will affect society. Traditional risk management,
on the other hand, is perceived as too time-focused. The nature of Agile management means
focusing on partial progress and quality assurance, which may sometimes be in contradiction with
hard deadlines. Traditional risk management considers risks as a negative thing that needs to be
minimized or eliminated, while Agile management views risks as opportunities for product
improvement through adaptation and transformation. So there is no reason to oppose the two risk
approaches if risk management is seen as a useful decision-making and confidence-building tool
rather than a hindrance to success.
Internal Audit in Agile Governance - Annoying detail or reason for confidence?
Internal control has existed since ancient times. In ancient Egypt, there was a dual
administration - a team of bureaucrats responsible for tax collection, and another with oversight
over them. Internal control is defined as a process conducted by the management of the
organization and other employees with powers to provide reasonable assurance that the objectives
of the administration are attained while minimizing the likelihood of occurrence of adverse events.
By its nature, it is not a one-time event or circumstance, but a series of actions that encompass, and
is built into the activities of the organization. It functions through a series of internal controls that
are embedded in the processes in the organization.
Here, I will not address the compliance of the national legal and regulatory framework of
internal auditing in the public sector as this is within the competence of certified experts. My idea
is to prove how the internal audit could support processes in Agile management and Scrum practice
in terms of quality requirements of the statistical production process.
It is a fact that ISO 9001 certified organizations have to carry out internal audits of the entire
quality management system at planned intervals. The aim is to establish the degree of compliance
of the system with the requirements of the standard and the effectiveness of the quality management
processes in the organization. However, in the context of Agile management, the internal audit
faces some challenges. Although it does not add value to statistical products, an effective interna l
audit is a means of constantly improving and reassuring teams and their Scrum Masters. The
recommendations of the internal audit should not be construed as a bad score for team work or poor
execution by the responsible official. Rather, they should be understood as a glimpse of their work
from a different perspective. This provides an opportunity to improve the organisation and working
methods.
Given the peculiarities of Scrum practice and the statistical production process, some
recommendations can be defined to perform an audit of the performance of Agile management
processes:
The audit should be as unobtrusive as possible;
The audit should not end only with the creation of documents for use by the auditor
only;
The Product Backlog can serve as the basis for the audit;
The auditor is only an observer during the sprints;
The auditor should have access to all implementation facts, be admitted to daily
meetings, Sprint Planning meetings, and Sprint Review meetings and Sprint Retrospective
meetings;
The auditor does not need to schedule formal audit meetings with team members, but
may seek clarification from the Scrum Master or Product Owner;
Findings in the audit report may go beyond the original checklist if improvement
proposals are tied to other activities;
The audit report is submitted to the Scrum team immediately after the retrospective
meeting;
Recommendations are addressed in forthcoming sprints and their implementation is
subject to audit by the auditor.
The auditor in an organization operating under Agile management, and must also be flexib le
in terms of the distribution of audit activities over time, as changes occur quickly. It is not necessary
to be an expert on the technical part of the implementation of a statistical survey or project. It is
enough to understand the process and tools for managing it, to be aware of current problems and
to anticipate potential future problems in risk management. Therefore, in order to gain the trust of
the heads of structural units under Agile management, the internal audit should focus on those
things that really matter to the structure. This usually means checking the critical projects underway
and the impact of the results on the stakeholders rather than just focusing on the analysis of the
elements of financial management and control: control environment, risk management, control
activities, information and communication, monitoring.
The internal audit can add value to the statistical product by providing recommendations
and providing feedback for risk monitoring. Risk management recommendations and procedures
in the context of quality management in the NSI's territorial structures can also be used in similar
projects in the future. I have presented the idea of creating the so-called "Internal Statistical Audit"
in another paper7, considering the possibility of developing a quality framework for statistica l
production in RSOs, following the example of the Data Quality Assessment Framework (DQAF)
developed by the Department of Statistics of the International Monetary Fund. The symbios is
between the public sector internal audit rules and such a statistical quality audit in territoria l
structures may be a new perspective on risk management in the institution.
Is there a way to be both "waterfall" and Agile?
Getting off the well-trampled path, made by the footsteps of others before you, to go
through the field of opportunities, and be the trailblazer - For this you have to have not only courage
but also other qualities. When the team, that you have been counting on so far and that you are
going to have to rely on, is following you on the path to the new horizon, you have to have a
thoughtful, reasonable and coordinated plan before you go beyond the riverbed of routine.
As a team leader in a territorial structure of the NSI, I know that planning under the
management "waterfall" makes sense only when all team members understand the mechanism of
integrating the individual elements of a project. For example, detailed records of processes and
activities will reduce the likelihood of increased staff turnover negatively affecting the end result.
At the same time there are activities that are usually bound by deadlines and follow a relative ly
linear path of implementation. Therefore, there is no way to completely throw out the current style
of governance and replace it with an entirely new one. This is supported by the fact that the directors
of RSOs are secondary budget spenders. In the NSI there is a legal hierarchical subdivision of the
positions and the activity of all the structures is implemented according to a number of national
and European regulatory and normative frameworks. A compromise is the possibility of a
management framework that combines the power of the "waterfall" and the agility of Agile
management. In practice, such a management model is called a hybrid. In order to answer the
question of why hybrid production is the most appropriate method of statistical production, we
need to take into account the advantages and disadvantages of Agile and traditional management.
7 "Concept for the Development of Territorial Statistical Bureaus under the New Organizational Structure of the
National Statistical Institute", magazine."Statistics" 1/2016
Agile management Traditional management
Advantages Participation of stakeholders in the process
Even late changes to the requirements can easily be
reflected
Continuous improvement of both products and processes
Simple and easy to understand and use model;
Each phase ends with specific results that need to be validated
The documentation and artifacts are duly applied
It is suitable for projects where
the requirements are well understood
Disadvantages Lack of long-term planning
and documentation
Difficulties in forming the team
Not suitable for projects where
the requirements are dynamic
Removing omissions and errors poses a risk as they are discovered at
a later stage
The hybrid model combines working approaches from both models in such a way as to
eliminate (or at least minimize) their disadvantages and to derive maximum benefit from the
benefits they give. In statistical production, traditional management is most appropriate in the
following phases of the GMSPP of the NSI: 1 - "Identifying information needs", 2 - "Design", 3 -
"Building the Tools for Conducting the Study" and 7 - "Dissemination". In the Phase 4 - "Data
Collection", 5 - "Data Processing" and 6 - "Analysis", you can use the Agile management