SCRUM Methodology 1

SCRUM Methodology:
An analysis on its application in Germany and in Hong Kong
Rodrigo Nerone
Kings University College









SCRUM Methodology 2

Foreword
The following paper is to be presented as if the audience was the board of directors or,
specifically, the VPs of Engineering and Operations. It concerns the application of the
SCRUM methodology for project management and product development. The paper
introduces the procedure through the contrast with the step-by-step classical approach,
presenting the proposed improvements and expected benefits. The countries where it is
to be applied are then presented, along with its cultural traits. The proposition is
completed with the analysis of the cultural implications, probable issues and necessary
adaptations.
Observation: the introduction is aimed at establishing the context. Because the
methodology is fairly specialized, it might clarify the purpose.










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Introduction
The problems addressed in this paper are two: first, the growing demand for new
product development (NPD) processes that aggregate quality and agility; and second,
the challenge of applying strategic changes, coming from the matrix of the company, in
subsidiaries across the world.
The technical issue
The first issue concerns innovation, the process of turning new ideas into profitable
products. Far from the myth of the genius innovator, this process demands reliability.
This has been translated over time into many attempts of capturing the creativity and
competence of a group of people. Not only that, but in a time-bound and budget-bound
way.
The classic approach to the problem is symbolized by the NASA PPP method (Takeuchi
& Nonaka, 1986), a very structured step-by-step process, very specialized and linear. As
the problem moves from the informational to the conceptual project and so on the
documents are delivered to specialists who are supposed to get into the scene, do a
surgical operation, and pass the problem on. It is a remarkable process when high
quality and low risk is needed in the academia, not necessarily in the market. This is
the problem: its not time effective, it doesnt take into account changes in the scenario,
its not agile or flexible and it doesnt take the value (or the need) of diversity into
consideration. The word of the game is competence, straightforward competence.
Now, new product developments are so diverse that saying this is a bad process would
be wrong. It worked very well for NASA. The thing is this is not a good process for
everything.
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New products can be categorized in terms of its degree of innovation and its degree of
complexity. To each, adapting the methodology is necessary to gain efficiency. The
degrees of innovation are, increasingly: improvement of existing product, derivation of
existing product, new product platform, and breakthrough innovation. In terms of
complexity, this is better explained using the Cynefin Framework (Snowden, 2000):

Figure 01 Cynefin Framework
This framework makes it clear that the best application of an approach similar to
NASAs is in Complicated problems. The problem is that most innovative tasks are
located in the Complex domain, where it fails for lack of room for agility and flexibility
necessary to deal with uncertainty. This is the scenario SCRUM was made for. Its traits
will be dealt with in the first part of this work.


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The behavioral issue
Once this is discussed, the second problem will be addressed: how to apply strategic
changes such as this in subsidiaries across the world. Satisfaction, motivation and
performance will depend both on the change itself and on the way the transition is
handled. The cultural aspects of the countries of destination, the predictable issues and
the necessary implementation strategies are discussed in parts 2 and 3.














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Part 1: The SCRUM Methodology
Instead of being a standardized process where you methodically follow a series of
sequential steps that guarantee a high quality product, SCRUM is a framework for
organizing and managing work (Rubin, 2013). Adaptability is central; therefore instead
of establishing the best practice, the objective will be to present a sequence of good
practices to be adapted as demanded.
SCRUM Overview
The concept of SCRUM first appeared in an article published on Harvard Business
Review, called The New New Product Development Game (Takeuchi & Nonaka, 1986).
The idea that gave the methodology a name came from the proposal of shifting the NPD
paradigm from the customary relay race to a holistic or rugby approach. The
concept is that instead of following a carefully planned linear path, the team goes,
supporting each other, in the direction the tendency shows; the game starts with a long
term vision of the objectives, but it is played with short-term strategies at every stop
of the game, it reunites in a scrum to plan the next few steps.
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Figure 2 SCRUM Framework overview

SCRUM Roles
Hierarchically, three main roles are identified: the product owner, the scrum master and
the development team.
The Product Owner is the empowered central point of the product leadership. He is the
single authority responsible for deciding which features and functionalities to build and
the order in which to build them (or prioritize them). The product owner maintains and
SCRUM Methodology 8

communicates to all other participants a clear vision of what the scrum team is trying to
achieve (Rubin, 2013).
The Scrum Master coordinates the execution. Of him is expected the position of a
facilitator. His responsibilities include problem solving, discussion mediating, conflict
management, change guidance and performance control (Adkins, 2010). He helps in the
planning and adapting, but one of the key concepts of scrum is that teams handle their
own management (Schwaber, 2004). What this means is that the Product Owner
establishes the vision (scoring the point), the Scrum Master takes care of the physical
preparation and strategic notion of the team, but its the teams decision to choose
between doing that with a Try, a Drop Goal or otherwise.
The development team is the one group uniting all the competences needed for the
product development. In the case of software development, instead of being separated,
interacting in this group are the architect, the programmer, the tester, the database
administrator, the user interface designer and so on (Rubin, 2013). The value of this
proposition is that two types of learning occur with this interaction: at the individual
level and at the group level. At the individual level, the learning occurs through the
interaction with people from multiple backgrounds and, at the group level, through the
evolution of the understanding of the problem. To exemplify, in the design of a car, the
mechanical engineer would interact periodically not only with engineers focused
electricity, automation, production, storage, but also with designers and others (seeing
and hearing their perspectives over the problem and, thus, learning). Moreover, as the
problem is explored, each discussion gives the opportunity of ideas to come from
different backgrounds, giving the group a broader understanding of the issue.

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SCRUM activities and artifacts
To summarize the way the job is executed according to this methodology, the concept
of three artifacts need to be presented: the product backlog, the sprint backlog and the
deliverable increment. The whole idea circumscribes the concept of separating the
product into a group of deliverable features that, more or less, can be developed
independently. This is to present a set of daily or weekly achievable deliveries to be
tackled by a subset of the development team.
The product backlog is the overall set of features organized and segmented into a
prioritized list (Rubin, 2013). This is created by the product owner in his first
interactions with the team (that could be the client explaining his vision to the
specialists, or a chief executive explaining his expectations of the project to the team).
This list represents the vision. It is segmented so that the sprint backlog can be planned:
the segmentation serves to select each week what is necessary to the evolution of the
project. The selection of weekly achievable tasks is the sprint backlog. It describes,
through a set of detailed tasks, how the team plans to design, build, integrate and test the
selected subset of features from the product backlog during that particular sprint (Rubin,
2013). The deliverable increment is a completed result expected to be finished.
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Figure 3 SCRUM framework

Creating the sprint backlog is a part of an activity called sprint planning: the decision of
what is going to be done in that short period of time. Next is the sprint execution. At
each day, the team members help manage the flow of work by conducting a
synchronization, inspection and adaptive planning activity known as the daily scrum.
The scrum team completes the sprint by performing two inspect-and-adapt activities. In
the first, called the sprint review, the stakeholders and the scrum team inspect the
product being built. In the second, called the sprint retrospective, the scrum team
inspects the scrum process being used to create the product. The outcome of these
activities might be adaptations that will make their way into the product backlog or be
included (Rubin, 2013), until the Product Owners vision is realized and a solution is
released.
As one of the main aspects of the SCRUM is communication, the sprints are commonly
organized as week-long sprints. The daily scrum is supposed to happen in the beginning
of each day, with duration of between 15 and 30 minutes. Members quickly revise what
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was done during the last day and each subset of the development team selects the daily
task they are going to dedicate to as a group or as individuals (according to necessity).
At the end of each week, all members unite to do two major meetings: the revisions and
the planning for the next sprint.
SCRUM Practices
To give predictability to the process and to pressure the team members to perform the
way they are expected to, some additional tools are listed as good practices (Basaraner,
2013):
Planning poker: to establish measurability of the performance, the team is
gathered to make a planning poker and decide how many hours each activity is
supposed to take and how urgent or important it is to be completed.
Stand up meeting style: to make the meeting short, the member is expected to
answer three questions extremely concisely. They are:
- What did I accomplish since the last daily scrum?
- What do I plan to work on by the next daily scrum?
- What are the obstacles or impediments that are preventing me from making
progress?
Daily meetings of around 15 minutes (no much longer): agility is a key issue.
Members dont need to listen to other members detailed problems these are
supposed to be discussed privately with the Scrum Master they need to see the
overall picture of the development.
Burn down charts: for each sprint, graphics are made accounting the total hours
of work available (number of members * daily hours of dedication * number of
days per sprint). At each day the chart is updated by subtracting the hours
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corresponding to the tasks accomplished. A straight line is drawn to symbolize
the goal: steady flow of work. By doing this, the chart shows the performance of
the group and the quality of the planning poker.
Product backlog board: a board containing a hierarchical list of the activities to
be done (using post-its commonly so that adaptations can be made easily) and
separating the tasks between uncompleted and completed.
Sprint backlog board: a board containing the activities to be done during the
sprint (also using post-its). When the members choose what to do, they move the
post-it from the area to-be-done, to the area being-done accounting him as
the responsible. Finally, the task is moved to the completed area and new tasks
are chosen.
Traditional quality control tools can also be applied. With the activities listed, revisions
and adaptations are made easily; the progress is very visual and open and an
individuals performance (or lack of it) is also very noticeable.

SCRUM Principles
RUBIN lists a set of principles that characterize the SCRUM process, establishing them
as requisites for performance. A summary of the concepts is presented below:
Variability and uncertainty
- Embrace helpful variability
- Employ iterative and incremental development
- Leverage variability through inspection, adaptation and transparency
- Reduce all forms of uncertainty simultaneously
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Prediction and adaptation
- Keep options open
- Accept that you cant get it right up front
- Favor an adaptive, exploratory approach
- Embrace change in an economically sensible way
- Balance predictive up-front work with adaptive just-in-time work
Validated learning
- Validate important assumptions fast
- Leverage multiple concurrent learning loops
- Organize workflow for fast feedback
Work in progress (WIP)
- Use economically sensible batch sizes
- Recognize inventory and manage it for good flow
- Focus on idle work, not idle workers
- Consider cost of delay
Progress
- Adapt to real-time information and replan
- Measure progress by validating working assets
- Focus on value-centric delivery
Performance
- Go fast but never hurry
- Build in quality
- Employ minimally sufficient ceremony
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As a conclusion, RUBIN states: Scrum is a refreshingly simple, people-centric
framework based on the values of honesty, openness, courage, respect, focus, trust,
empowerment and collaboration.
Conclusion of Part 1
This concludes the first part of this work. A technical view of the subject was presented,
focusing on its practical implications, as well its cultural aspects. Presenting the good
practices from this perspective will help the following part of the work where the
analysis of the application of this framework in different countries is done.












SCRUM Methodology 15

Part 2: The cultural background

The SCRUM methodology seeks agility, flexibility and creativity through collaboration,
empowerment and openness to uncertainty. For this reason, among the 9 cultural
dimensions proposed by the GLOBE project, uncertainty avoidance, collectivism and
power distance are the most relevant ones for the analysis of the applicability of the
method. Therefore, for this scrutiny, there will be established a primary and a secondary
focus, as following:
Primary focus Secondary focus
1. Uncertainty avoidance 4. Assertiveness
2. Power distance 5. Performance orientation
3. Collectivism 6. Future orientation

The chosen countries were selected based on the variation of the scores of the primary
focus, and they will be analyzed from the perspective of a company that already does
business in those locations and intends to apply this new methodology in its local
subsidiaries. The regions are: Germany and Hong Kong.
Germany
Introduction
As Europes largest economy and second most populous nation (after Russia), Germany
is a key member of the continents economic, political and defense organizations (CIA
Factbook). It is the third largest country in international trade (WTO statistics, 2012),
and has one of the highest GDP per capita in the world. Its dependence on foreign trade
SCRUM Methodology 16

is due to the lack of natural resources, which made the country be highly educated and
achieve the forefront of many technical and theoretical fields (Chhokar et at., 2004).
Characteristics of the country that contributed to its stereotype across the world include:
the abundance of rules and regulations, the remarkable performance in many sports,
academic fields and industries, the renown for attentiveness to details and preciseness,
the renown given to German engineering and others; all adding to an image of
discipline, organization, hard work and high standards.
Geo-cultural history of Germany
Even though the history of the Germanic people dates back to more than 2000 years, its
main characteristics reside in the many divisions it went through. A torn identity is what
might have been the start of a long history of very high uncertainty avoidance (Chhokar
et al., 2004).
The country had influences of barbarism in the north and roman colonization in the
south. The language emerged from dialects present in the region; increasingly turning
into the High German that later would strongly influence the unity of the kingdoms that
there resided. The Protestant Reformation further separated the region by challenging
the established Catholic religion, introducing Protestantism. After the fall of Napoleon,
the region united into a confederation, then into the Weimar Republic all the
unifications were militarily made and not by public claim, a reflect of its individualism.
Another division that contributed greatly to the German culture is the issue between
Romanticism and Realism. German literature, arts and music were heavily romantic
(e.g. Goethe, Schlegel, Tieck etc.), which was not only related to the emotional, the
imaginative and the visionary, but also to nationalism. There were romantic notions of
leadership and state (Hegel) that might have contributed to its high power distance. Its
SCRUM Methodology 17

contrasted with the emergence of science and the rational approach, which arguably
created the German idealism.
The most present division in Germany today is the remains of the separation between
east and west inherited by the Cold War. For cultural reasons, though, this is relatively
new. As shown below, the biggest differences that emerged from the capitalist and the
communist societies were discrepancies in power distance and in-group collectivism
(much lower in the west), followed by future orientation (lower in the east). The societal
values as Should Be represent the attempts of the government to reconstruct the East
and bring it to parity with the West, which still doesnt happen.
Societal cultural practices and values
The GLOBE scores show that Germany is one of the highest countries in uncertainty
avoidance and assertiveness. It also scores high in future orientation, in performance
orientation and in power distance. With the exception of performance orientation, the
German citizens think that all the other mentioned dimensions should be lower than
they are. The country scores low in humane orientation and in collectivism. To this last,
Germans express pride to individual achievements and expect rewards to be given in the
individual level. They value individual self-esteem more and loyalty, cohesiveness or
group viability.
SCRUM Methodology 18


Figure 4 Country means for societal culture dimensions As Is and Should Be
Cultural tendencies include:
Power distance to decline: the low scores of should be power distance indicate that
middle managers are interested in a more egalitarian approach to status in modern
German society. What might not be very present in senior staff, in younger generation
may be very strong.
Uncertainty avoidance to decline: Germans prefer their lives to be structured, organized
and secure. But even though they rely a lot on rules and institutionalized procedures to
avoid anxiety, they recognize that this is a barrier to risk taking, a necessary aspect of
the current market. This explains the high difference in the Should be in uncertainty
avoidance.
SCRUM Methodology 19

Assertiveness to decline: Germans are more confrontational in their relationship with
others than most societies (Chhokar et al., 2004). Interpersonal interactions at work tend
to be aggressive and assertive; the language, straightforward and stern. This also means
that this is acceptable in work. Nevertheless, the Should be score shows a desire for
less confrontation.
Other trends: performance orientation on the rise (still very present as a desire) along
with gender egalitarianism.
On humane orientation, its interesting to mention that the German idealism, together
with its individualism, build a country low on humane orientation but with high
concerns to its own social welfare. What this means is that individuals want to develop
themselves so that, as an outcome, society would also develop.

Figure 5 East and West Germany societal cultural dimensions compared to the other 61 societies analyzed by the GLOBE
project

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Hong Kong
Introduction
Considered Asias world city, Hong Kong is one of the most important economic hubs
in its region. Characterized by its inheritance from the British colonization, the city, in
contrast with its surroundings, has a strong free-market orientation, which placed it as
one of the most economically developed cities in Asia, with an FDI of over 90 billion
USD and one of the highest GDP per capita in the world (World Bank statistics, 2010).
It is also one of the highest densely populated areas in the world.
Geo-cultural history of Hong Kong
Renowned as the city where the east meets the west, Hong Kong unites influences from
its Cantonese background dating back thousands of years and the more recent
influences coming from colonialism, especially from England. Peoples culture comes
from a long history of Buddhism, Taoism and Confucianism. Formerly a part of many
of the Chinese Empire dynasties, the region started to feel the influence of the east with
the arrival of Portuguese merchants. The English East India Company influenced
greatly the foreign relationship with the empire, leading to the First Opium War. The
Chinese Empires defeat led to the unequal treaty of Nanking, where foreign trade was
delineated by England and the territory of Hong Kong was claimed in spite of the
Chinese reluctance. The hundred-year influence of the England colonial port was only
broken when, in the Second World War, the territory was invaded by Japan. Always
under Chinese interest, the region only ended its 156 British rule when in 1997 it was
transferred to the Peoples Republic of China, under the agreement of being a special
administrative region with sovereign rule, with the exception of foreign affairs and
defense.
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Societal cultural practices and values
Hong Kong united the traditional Chinese culture with some western ideas in order to
achieve commercial success. Values such as harmony are still very strong, since the
western influence was more in commercial practices than in societal values that still
carry a lot of Confucian influence. Chinese cultural traits attributable to an upbringing
in the Confucian tradition are: socialization within the family, a tendency to help the
group, a sense of hierarchy and a sense of complementary relations (Chhokar et at.,
2004). Stated values include: education, obedience, harmony, loyalty to family ,
affiliation and individual responsibility.
The quantitative results of the GLOBE analysis showed Hong Kong to be among the
highest countries on In-group collectivism and power distance, along with a high
performance orientation. Low scores were measured for humane and future orientation.
The country shows a discrepancy between in-group collectivism and institutional
collectivism, representing their loyalty to be strictly to their in-groups (most importantly
family). The region is also one of the highest in the world in Assertiveness. Uncertainty
avoidance is rated in the middle, but could be understood as low, since the culture
welcomes risk-taking and free-market.
SCRUM Methodology 22


Figure 6 Hong Kongs results of the nine GLOBE cultural dimensions at the societal level

Summary

Figure 7 Results of the primary and secondary focuses of analysis As Is

The primary focus shows the contrast between the countries. While Germany is very
high in uncertainty avoidance, Hong Kong is much more acceptant to uncertainty and
variability; while Germany has a middle to high power distance, Hong Kong scores
middle to low, even though interactions are marked by formality; while Germany is
highly individualistic, Hong Kong is much more collectivist.
SCRUM Methodology 23

The secondary focus, on the other hand, shows better the similarities between the two.
High assertiveness, high performance orientation and high future orientation are present
in both.
When it comes to cultural tendencies, Germans want to be less anxious, to have a lower
power distance, to be less assertive and less future orientated; they want to be even more
performance orientated. In Hong Kong, they want to be less avoidance of uncertainty
and less performance orientated. On the other hand, they are desirous of power distance
and assertiveness.

Figure 8 Results of the primary and secondary focuses of analysis Should Be








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Part 3: The implementation
Applicability
The SCRUM methodology prescribes a practice where members are asked, among other
things, to: embrace uncertainty, relinquish individual shine for the performance of the
group, tackle problems as a group, welcome diversity of thought, give and receive
feedback in front of the group, give and receive information about ones own
performance and ones own difficulties in front of the group and have problem solving
skills while given very little instruction of how to proceed by superiors.
In group activities such as sprint planning and sprint reviewing, members are called
upon to compromise, instead of discrepancies, and converge into one answer. They are
supposed to do so in the presence and sometimes against superiors (such as the
Product Owner or the Scrum Master). Their contribution also depends on their
participation, as their opinion as specialists will be taken into consideration almost
solely in group discussions. Considering so, the countries are analyzed.







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Applicability in Germany

Practices Applicability
R
o
l
e
s

Product Owner
The difficulty expected to emerge is mostly related to
expressing the vision without already embracing it within a
structure. Related to the product backlog grooming, the job of
the Product Owner will be made difficult because of the
paradigm shift.
ScrumMaster
The position of the leader as facilitator will be made difficult
for two main reasons: one is that the lack of structure might
create anxiety when it comes to time and resource
management, the second is that the leader is not supposed to be
assertive, he is supposed to let the team guide the way, and this
most likely will be seen as a problem by the leader and as lack
of competence by the team.
Development team
Motivation and satisfaction are expected to be affected as
praise and rewards are given more to group accomplishments
than to individual performance. Assertiveness and
aggressiveness are expected to harm teamwork, especially if
members from different education background come into play
they may not be respected equally.
A
c
t
i
v
i
t
i
e
s

Sprint
Too much interaction, if not clearly productive in the
beginning, will be seen as waste of time. The individualist
work style will be shown through the employees demanding
their own time to focus on their work.
Sprint planning
The segmentation of work should not be a problem and once it
is well-clarified, members will work with their full eagerness.
Problems might emerge from the discussions, though. The
ScrumMaster must be very competent in conflict management.
Daily scrum
The challenge will be showing the members that this is not
micro-managing or a waste of time.
Sprint execution
No problems are expected to emerge from the execution.
Except, perhaps, groupwork.
Sprint review
Supposed to work well as individuals are expected to
assertively express their opinions as specialists, even if in the
presence of superiors. The re-planning and the change
management is what could cause anxiety.
Sprint retrospective Same as the review.
Prod. Backlog grooming
Very structured view of the product might even help the
compartmentalization, the separation between the features.


SCRUM Methodology 26

Applicability in Hong Kong

Practices Applicability
R
o
l
e
s

Product Owner The product owner is not supposed to be a problematic role,
instead for the activity of separating the features. The notion of
harmony and value of the whole might make this process hard.
ScrumMaster The mediator leader might be seen as weak or incompetent if
he doesnt instruct the members actively.
Development team Members should perform normally, as risk taking and
uncertainty is not a reason for problem in this culture.
A
c
t
i
v
i
t
i
e
s

Sprint A different concept that will demand adaptation, but shouldnt
be a problem.
Sprint planning Assertiveness might lead to conflict more than to compromise.
The presence of power figures might also affect the comfort in
the discussion.
Daily scrum The lack of formality might create awkwardness and inhibition.
The members might not be comfortable with talking about their
work and their problems in front of everybody.
Sprint execution Group work is well received, so no problem is expected.
Sprint review This will demand criticizing openly, which might not be well
received.
Sprint retrospective Same as previous.
Prod. Backlog grooming No problems.

Adaptation
The adaptation of the techniques for the implementation of the methodology must take
into consideration whether the change is acceptable, the time factor for acculturation,
the training necessities and, when adapted, which features are strategically important to
maintain and which can be modified.
Adaptations for Germany
An interesting way in is their valuing of education. The start of the implementation
could be done more by extensive training and accompaniment of specialists in SCRUM.
As romanticism and realism were united, structuration and flexibility also can and also
SCRUM Methodology 27

should. As long as moments for reviewing and moment for executing are well
established and well understood by the members, their anxiety should go down. The
work should be well organized and controllable, just not entirely planned.
The sprint planning session can be extended to include more details to the procedures
by which tasks will be tackled, as well as individual measurable goals. To deal with the
anxiety created by the long term uncertainty, the PPP concept can be used to guide the
team together with the prioritization of the product backlog until the ScrumMaster and
the Product Owner are comfortable enough to break free from it.
The process is turned into a more structured method, as long as the aim for flexibility is
not forgotten. The learning curve of the team must be taken into consideration.
Adaptations for Hong Kong
Hong Kong is an easier scenario in which to apply the SCRUM methodology. Aside
from the natural acculturation period that emerges from the shift in the paradigm, the
only problems that are supposed to arise are related to assertiveness and power distance.
As group discussions are also one of the greatest features of the method, the discussions
can be circumscribed by formality as a way to stimulate participation. The high power
distance problem can be solved by, at each decision to be made, instead of all members
explaining their opinions as they will, the Scrum Master stimulates the group by asking
the specialists to give their opinions first and then opening for other members to
contribute. This applies for the sprint planning, the spring reviewing and the sprint
retrospective.
The questions to be answer by the members in the daily scrum may also be changed in
order to turn their focus more towards the problem than the individual that tackled it.
SCRUM Methodology 28

An example would be to ask for a concise description of the occurrences of the last day
(impersonal). This should be enough to cover the problematic issues of the adaptation.

















SCRUM Methodology 29

Conclusion
The Scrum methodology tackles a very specific type of problem: the ones localized in
the complex domain of the Cynefin framework. Moreover, it applies values traditionally
stated in cultures from the Anglo culture, its place of origin and where it functions best.
For the application in Germany and in Hong Kong, such values, if desired by the
matrix, must be integrated gradually, with intensive training and with the adaptations
mentioned. If done so, the expected results are increasing agility and increasing
creativity in the NPD process.












SCRUM Methodology 30

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Pichler, Roman. Agile Product Management with Scrum: creating products that
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