Skip to main content

Steering through Incentives in Large-Scale Lean Software Development

  • Conference paper
Evaluation of Novel Approaches to Software Engineering (ENASE 2011)

Abstract

The application of lean principles and agile project management techniques in the domain of large-scale software product development has gained tremendous momentum over the last decade. This results in empowerment of individuals which leads to increased flexibility but at the same time sacrifices managerial control through traditional steering practices. Hence, the design of adequate incentive schemes in order to align local optimization and opportunistic behavior with the overall strategy of the company is a crucial activity from a business perspective.

Following an agent-based simulation approach with reinforcement learning, we (i) address the question of how information regarding backlog item dependencies is shared within and in between development teams on the product level subject to different incentive schemes. We (ii) compare different incentive schemes ranging from individual to team-based compensation. Based on our results, we are (iii) able to provide recommendations on how to design suitable incentive schemes in order to enable a goal-oriented steering of individual behavior in order to support the overall company objectives.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Agile Alliance: Agile Manifesto (2001), http://www.agilemanifesto.org (April 14, 2004)

  2. Axelrod, R.: Advancing the art of simulation in the social sciences. Complex 3, 16–22 (1997)

    Article  Google Scholar 

  3. Beck, K.: Embracing change with extreme programming. IEEE Computer 32, 70–77 (1999)

    Article  Google Scholar 

  4. Beck, K.: Extreme Programming Explained: Embrace Change. Addison-Wesley (2000)

    Google Scholar 

  5. Beck, K.: Test-Driven Development: By Example. Addison-Wesley (2003)

    Google Scholar 

  6. Blau, B., Conte, T., van Dinther, C., Weinhardt, C.: A Multidimensional Procurement Auction for Trading Composite Services. Electronic Commerce Research and Applications Elsevier Journal. Special Issue on Emerging Economic, Strategic and Technical Issues in Online Auctions and Electronic Market Mechanisms 9(5), 460–472 (2010); special Section on Strategy, Economics and Electronic Commerce

    Google Scholar 

  7. Blau, B., Conte, T., Weinhardt, C.: Incentives in Service Value Networks – On Truthfulness, Sustainability, and Interoperability (December 2010)

    Google Scholar 

  8. Bonabeau, E.: Agent-based modeling: Methods and techniques for simulating human systems. Proceedings of the National Academy of Science of the USA (2002)

    Google Scholar 

  9. Cao, L., Ramesh, B., Abdel-Hamid, T.: Modeling dynamics in agile software development. ACM Trans. Manage. Inf. Syst. 1, 5:1–5:26 (2010)

    Google Scholar 

  10. Cohn, M.: Agile estimating and planning. Prentice Hall (2006)

    Google Scholar 

  11. Cohn, M., Ford, D.: Introducing an agile process to an organization (software development). Computer 36(6), 74–78 (2003)

    Article  Google Scholar 

  12. Conboy, K.: Agility from first principles: Reconstructing the concept of agility in information systems development. Information Systems Research 20(3), 329–354 (2009)

    Article  Google Scholar 

  13. DeMatteo, J.S., Eby, L.T., Sundstrom, E.: Team-based rewards: Current empirical evidence and directions for further research. Research in Organizational Behavior 20, 141–183 (1998)

    Google Scholar 

  14. Dingsoyr, T., Dybå, T., Moe, B.: Agile Software Development: Current Research and Future Directions. Springer, Heidelberg (2010)

    Google Scholar 

  15. Dyba, T., Dingsoyr, T.: Empirical studies of agile software development: A systematic review. Information and Software Technology 50(9-10), 833–859 (2008)

    Article  Google Scholar 

  16. Erdogmus, H., Williams, L.: The economics of software development by pair programmers. Engin. Econom. 48, 283–319 (2003)

    Article  Google Scholar 

  17. Erez, M., Somech, A.: Is group productivity loss the rule or the exception? effects of culture and Group-Based motivation. The Academy of Management Journal 39(6), 1513–1537 (1996)

    Article  Google Scholar 

  18. Fry, C., Greene, S.: Large scale agile transformation in an on-demand world. In: Proceedings of the AGILE Conference 2010, pp. 136–142 (2007)

    Google Scholar 

  19. Hertel, G., Konradt, U., Orlikowski, B.: Managing distance by interdependence: Goal setting, task interdependence, and team-based rewards in virtual teams. European Journal of Work and Organizational Psychology 13(1), 1–28 (2004)

    Article  Google Scholar 

  20. Hertel, G., Kerr, N.L., Mess, L.A.: Motivation gains in performance groups: Paradigmatic and theoretical developments on the koehler effect. Journal of Personality and Social Psychology 79(4), 580–601 (2000)

    Article  Google Scholar 

  21. Hevner, A., March, S., Park, J., Ram, S.: Design science information systems research. MIS Quarterly 28(1), 75–105 (2004)

    Google Scholar 

  22. Hildenbrand, T.: Improving Traceability in Distributed Collaborative Software Development—A Design-Science Approach. Phd thesis, University of Mannheim, Germany, Frankfurt (2008)

    Google Scholar 

  23. Katz, R., Allen, T.J.: Investigating the not invented here (NIH) syndrome: A look at the performance, tenure, and communication patterns of 50 r & d project groups. R&D Management 12(1), 7–20 (1982)

    Article  Google Scholar 

  24. Kerr, N.L.: Motivation losses in small groups: A social dilemma analysis. Journal of Personality and Social Psychology 45(4), 819–828 (1983)

    Article  Google Scholar 

  25. Kerr, N.L., Bruun, S.E.: Dispensability of member effort and group motivation losses: Free-rider effects. Journal of Personality and Social Psychology 44(1), 78–94 (1983)

    Article  Google Scholar 

  26. Kotter, J.: Leading change. Harvard Business Press (1996)

    Google Scholar 

  27. Kozlowski, S., Bell, B.: Work groups and teams in organizations. In: Handbook of Psychology (2003)

    Google Scholar 

  28. Larman, C., Vodde, B.: Scaling Lean and Agile Development: Thinking and Organizational Tools for Large-Scale Scrum. Addison-Wesley Longman (2008)

    Google Scholar 

  29. Larman, C., Vodde, B.: Practices for Scaling Lean and Agile Development: Large, Multisite, and Offshore Product Development with Large-Scale Scrum. Addison-Wesley Longman (2010)

    Google Scholar 

  30. Lee, G., Xia, W.: Toward agile: An integrated analysis of quantitative and qualitative field data. MIS Quarterly 34(1), 87–114 (2010)

    Google Scholar 

  31. Leffingwell, D.: Scaling software agility: best practices for large enterprises. Addison-Wesley (2007)

    Google Scholar 

  32. Leffingwell, D.: The big picture of enterprise agility by dean. Whitepaper, pp. 1–16 (2009)

    Google Scholar 

  33. Macal, C.M., North, M.J.: Agent-based modeling and simulation: desktop abms. In: Proceedings of the 39th Conference on Winter Simulation: 40 Years! The Best is Yet to Come, WSC 2007, pp. 95–106. IEEE Press, Piscataway (2007)

    Google Scholar 

  34. Matsui, T., Kakuyama, T., Onglatco, M.U.: Effects of goals and feedback on performance in groups. Journal of Applied Psychology 72(3), 407–415 (1987)

    Article  Google Scholar 

  35. Petersen, K., Wohlin, C.: Measuring the flow in lean software development. Software - Practice and Experience (2010)

    Google Scholar 

  36. Poppendieck, M., Poppendieck, T.: Lean software development: an agile toolkit. Addison-Wesley Professional (2003)

    Google Scholar 

  37. Poppendieck, M.: Unjust deserts. Better Software, 33–47 (July/August 2004)

    Google Scholar 

  38. Poppendieck, M., Poppendieck, T.: Implementing Lean Software Development: From Concept to Cash. The Addison-Wesley Signature Series. Addison-Wesley Professional (2006)

    Google Scholar 

  39. Reinertsen, D.G.: The Principles of Product Development Flow: Second Generation Lean Product Development. Celeritas Publishing (2009) ISBN 978-1935401001

    Google Scholar 

  40. Sawilowsky, S., Blair, R.: A more realistic look at the robustness and type II error properties of the t test to departures from population normality. Psychological Bulletin 111(2), 352–360 (1992)

    Article  Google Scholar 

  41. Schnitter, J., Mackert, O.: Introducing agile software development at sap ag - change procedures and observations in a global software company. In: Proceedings of the 5th International Conference on Evaluation of Novel Approaches to Software Engineering, ENASE (2010)

    Google Scholar 

  42. Schwaber, K.: Agile project management with Scrum, vol. 7. Microsoft Press, Redmond (2004)

    Google Scholar 

  43. Schwaber, K.: The Enterprise and Scrum. Microsoft Press (2007)

    Google Scholar 

  44. Schwaber, K., Beedle, M.: Agile Software Development with Scrum. Prentice Hall (2001)

    Google Scholar 

  45. Siebers, P.O., Macal, C.M., Garnett, J., Buxton, D., Pidd, M.: Discrete-event simulation is dead, long live agent-based simulation! J. Simulation 4(3), 204–210 (2010)

    Article  Google Scholar 

  46. Snell, S.A., Dean, J.W.: Strategic compensation for integrated manufacturing: The moderating effects of jobs and organizational inertia. The Academy of Management Journal 37(5), 1109–1140 (1994)

    Article  Google Scholar 

  47. Sommerville, I.: Software Engineering, 9th edn. Addison-Wesley Longman (2010) ISBN-13: 978-0137053469

    Google Scholar 

  48. Stroebe, W., Diehl, M., Abakoumkin, G.: Social compensation and the koehler effect: Toward a theoretical explanation of motivation gains in group productivity. In: Witte, E., Davis, J. (eds.) Understanding Group Behavior: Consensual Action by Small Groups, vol. 2, pp. 37–65. Erlbaum, Mahwah (1996)

    Google Scholar 

  49. Tuckman, B.W.: Developmental sequence in small groups. Psychological Bulletin 63(6), 384–399 (1965)

    Article  Google Scholar 

  50. Turner, J., Tajfel, H.: Social categorization and social discrimination in the minimal group paradigm: Studies in the social psychology of intergroup relations. In: Tajfel, H. (ed.) Differentiation between Social Groups, European Monographs in Social Psychology, vol. 14, pp. 101–140. Academic Press, London (1978)

    Google Scholar 

  51. Wageman, R.: Interdependence and group effectiveness. Administrative Science Quarterly 40(1), 145–180 (1995)

    Article  Google Scholar 

  52. Watkins, C., Dayan, P.: Q-Learning. Machine Learning 8(3), 279–292 (1992)

    MATH  Google Scholar 

  53. West, D., Grant, T.: Agile development: Mainstream adoption has changed agility. Tech. rep., Forrester Research (January 2010)

    Google Scholar 

  54. Williams, K.D., Karau, S.J.: Social loafing and social compensation: The effects of expectations of co-worker performance. Journal of Personality and Social Psychology 61(4), 570–581 (1991)

    Article  Google Scholar 

  55. Williams, L., Kessler, R.R., Cunningham, W., Jeffries, R.: Strengthening the case for pair programming. IEEE Softw. 17, 19–25 (2000)

    Article  Google Scholar 

  56. Yin, R. K.: Case study research: Design and methods. Sage Publications (2007)

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2013 Springer-Verlag Berlin Heidelberg

About this paper

Cite this paper

Blau, B.S., Hildenbrand, T., Knapper, R., Mazarakis, A., Xu, Y., Fassunge, M.G. (2013). Steering through Incentives in Large-Scale Lean Software Development. In: Maciaszek, L.A., Zhang, K. (eds) Evaluation of Novel Approaches to Software Engineering. ENASE 2011. Communications in Computer and Information Science, vol 275. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-32341-6_3

Download citation

  • DOI: https://doi.org/10.1007/978-3-642-32341-6_3

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-32340-9

  • Online ISBN: 978-3-642-32341-6

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics