The Effects of Time Pressure on Quality in Software Development: An Agency Model

An agency framework is used to model the behavior of software developers as they weigh concerns about product quality against concerns about missing individual task deadlines. Developers who care about quality but fear the career impact of missed deadlines may take "shortcuts." Managers sometimes attempt to reduce this risk via their deadline-setting policies; a common method involves adding slack to best estimates when setting deadlines to partially alleviate the time pressures believed to encourage shortcut-taking. This paper derives a formal relationship between deadline-setting policies and software product quality. It shows that: (1) adding slack does not always preserve quality, thus, systematically adding slack is an incomplete policy for minimizing costs; (2) costs can be minimized by adopting policies that permit estimates of completion dates and deadlines that are different and; (3) contrary to casual intuition, shortcut-taking can be eliminated by setting deadlines aggressively, thereby maintaining or even increasing the time pressures under which developers work.

[1]  S. Ross The Economic Theory of Agency: The Principal's Problem , 1973 .

[2]  H. Demsetz,et al.  Production, Information Costs, and Economic Organization , 1975, IEEE Engineering Management Review.

[3]  Paul S. Goodman,et al.  Change in organizations , 1982 .

[4]  Marco Iansiti,et al.  Special Issue on Design and Development: Developing Products on "Internet Time": The Anatomy of a Flexible Development Process , 2001, Manag. Sci..

[5]  S. Kerr On the folly of rewarding A, while hoping for B. , 1975, Academy of Management journal. Academy of Management.

[6]  Srinivasan Umapathy,et al.  Current Budgeting Practices in U.S. Industry: The State of the Art , 1987 .

[7]  Barry W. Boehm,et al.  Software Engineering Economics , 1993, IEEE Transactions on Software Engineering.

[8]  P. Blau The Dynamics Of Bureaucracy , 1955 .

[9]  J. Borus : The Dynamics of Bureaucracy: A Study of Interpersonal Relations in two Government Agencies , 1956 .

[10]  James E. Tomayko,et al.  Teaching a Project-Intensive Introduction to Software Engineering , 1987 .

[11]  M. Iansiti,et al.  Developing products on Internet time. , 1997, Harvard business review.

[12]  Tom DeMarco Why Does Software Cost So Much , 1995 .

[13]  Genaro J. Gutierrez,et al.  Parkinson's Law and Its Implications for Project Management , 1991 .

[14]  Kishore Sengupta,et al.  Software Project Control: An Experimental Investigation of Judgment with Fallible Information , 1993, IEEE Trans. Software Eng..

[15]  Stuart E. Madnick,et al.  Lessons learned from modeling the dynamics of software development , 1989, CACM.

[16]  Bill Curtis,et al.  Fifteen years of psychology in software engineering: Individual differences and cognitive science , 1984, ICSE '84.

[17]  P. Kidwell,et al.  The mythical man-month: Essays on software engineering , 1996, IEEE Annals of the History of Computing.

[18]  Charles R. McClure,et al.  Measuring and managing performance in organizations , 1997 .

[19]  Paul R. Milgrom,et al.  Multitask Principal–Agent Analyses: Incentive Contracts, Asset Ownership, and Job Design , 1991 .

[20]  V. Rich Personal communication , 1989, Nature.

[21]  M E Paté-Cornell,et al.  Organizational aspects of engineering system safety: the case of offshore platforms. , 1990, Science.

[22]  V. Ridgway Dysfunctional Consequences of Performance Measurements , 1956 .

[23]  W. Edwards Deming,et al.  Out of the Crisis , 1982 .

[24]  William R. King,et al.  Subjective Time Estimates in Critical Path Planning--A Preliminary Analysis , 1967 .

[25]  M. C. Jensen,et al.  Harvard Business School; SSRN; National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI); Harvard University - Accounting & Control Unit , 1976 .

[26]  Macro Iansitti Microsoft corporation: office business unit , 2002 .

[27]  A. Tversky,et al.  Prospect theory: analysis of decision under risk , 1979 .

[28]  Frederick P. Brooks,et al.  No Silver Bullet: Essence and Accidents of Software Engineering , 1987 .

[29]  Patrick D. Larkey,et al.  Subjective Probability and the Theory of Games , 1982 .

[30]  Paul Rook,et al.  Controlling software projects , 1986, Softw. Eng. J..

[31]  Stuart E. Madnick,et al.  Special Feature: Impact of Schedule Estimation on Software Project Behavior , 1986, IEEE Software.

[32]  Bengt Holmstrom,et al.  Moral Hazard and Observability , 1979 .

[33]  Paul R. Milgrom,et al.  Economics, Organization and Management , 1992 .