First Principles in Scrum

Copyright 1993-2023 Jeff Sutherland 1

Table of Contents
Table of Contents 2

Note to Reader 7

Preface 9

How Scrum Emerged From First Principles 11

Introduction 11
The FBI's Triumph and the Path to Empiricism 11
Taiichi Ohno's Sage Advice and the Pursuit of Continuous Improvement 11
Scrum's Origin in Lean and the Dance of Complex Adaptive Systems 12
Gödel's Theorem and Computational Irreducibility: Unraveling Certainty 12
The Cathedral Unveiled 12
The FBI's Triumph and the Path to Empiricism 12
Taiichi Ohno and the Pursuit of Continuous Improvement 13
Godel's Theorem and the Power of Empiricism in Scrum 14
Computational Irreducibility and the Emergence of Scrum 15
From Biology to Scrum: The Evolutionary Paradigm 16
The Transformative Power of Scrum: Shaping the Future of Product Development 18

The Paradox of Inductive vs Deductive Reasoning 23

Personal Prologue 23
Abstract 24
Introduction 24
The Paradox Explored 24
Conclusion 26
References 26

Responding to Change 27

The Physics of High-Performing Teams - Unpacking Complex Adaptive Systems, the Seven Deadly Sins, and
Six Neural Accelerators in Scrum 29
Introduction 29
The Quantum Mechanics of Scrum: Unraveling the Physics of High-Performing Teams 29
Survival in a Complex World: The Imperative of Adaptation and Innovation 30
First Principles of Complex Adaptive Systems 32
Deviating from CAS Leads to the Seven Deadly Sins 33
Incorporating Neuroscience Accelerators into Scrum Principles 33
Conclusion: Embracing First Principles for High-Performing Teams 34

Copyright 1993-2023 Jeff Sutherland 2

 References 35

Scrum’s Secret Sauce: The Next Best Step 38

The Complexity and Importance of Prioritization in Scrum 38
The Next Best Step: A Cognitive Perspective, Quantum Mechanics, and the Power of Observation 39
Game Theory and Decision Making in Scrum 39
Driving System Evolution via Punctuated Equilibrium and Complex Adaptive Systems 39
The Role of AI: A ChatGPT Analogy and the Emergence of Expertise 40
Leveraging AI for Decision Making 40
The Human Element in Scrum Decision Making 41
Challenges and Potential Solutions 41
Real-World Applications and Case Studies 41
Future Implications: Welcoming AI onto the Scrum Team 41

The Secret Sauce of Scrum: Punctuated Equilibrium 44

Abstract 44
Introduction 44
The Secret Sauce of Scrum: Empirical Process Control and Punctuated Equilibrium 44
The Next Best Step: A Legacy from the First Scrum Team 45
The Role of AI in Identifying the Next Best Step 45
Conclusion 46
References 46

Hierarchy and Autonomy in Scrum: The Influence of Holarchy and the Power of the People 47
The Paradox 47
The Concept of Holarchy 47
Scrum as Holarchy 48
Controlled Chaos 48
Does Holocracy Implement Koestler’s Holons? 48
Conclusion 49
References 49

How to Make Agile Transformations Successful 50

Introduction 50
If the Failure Rate is 53% Why Do Companies Do Agile Transformations 50
Business Agility ia Only Agile if it Generates Business Outcomes 51
Example of How Decision Speed Affects Business Agility 57
OODA Loop Decision Metrics 58

Copyright 1993-2023 Jeff Sutherland 3

Aligning Agile Project Management with the Laws of Physics, Avoiding the Seven Deadly Sins, and Capturing
the Five Neural Accelerators 59
Introduction 59
The First Principle: Computational Irreducibility 59
Complex Adaptive Systems and Evolution 59
Project Management Methods: Waterfall, Scrum, and Kanban: 59
Project Management Simulation: Waterfall, Scrum, and Kanban 60
Parameters 60
Wolfram Code and Results 60
Scaling Agile: Addressing the Seven Deadly Sins 61
Scaling Agile: Addressing the Six Generative Neuroscience Effects 62
Conclusion 63
References 64

Why Scrum at Scale: Taking Scrum to the Next Level 65

Background 65
Improvements Identified After Examining Millions of Scrum Projects 66
Conclusion 67
References 68

Why Scrum@Scale: Using a Hybrid Approach to Get Money for Nothing and Change for Free 69
Introduction: The Need for a Dual Operating System in Agile Transformations 69
Use Case 1: Balancing Current Operations with Future Innovation 69
Use Case 2: Overcoming Suboptimization with Constraint Theory and Scrum@Scale 70
Use Case 3: Ensuring Value Delivery with Systematic Measurement and Incremental Scaling 70
Use Case 4: Achieving Enterprise Agility with Scrum@Scale - Money for Nothing, Change for Free 71
References 72

Martial Arts, Shock Therapy, and Scrum 74

Shock Therapy Controversy 74
Aikido Sensei Gaku Homma: 5th Degree Dan 74
Aikido Sensei Mitsunari Kinai: 8th Degree Dan 75
Dunning Kruger Effect – Neuroscience Effects 75
Hyperproductivity is the Norm 75
Conclusion 75
References: 76

Scrumming the Scrum: An Intersection of Productivity, Happiness, and Neuroscience 77

The Happiness Metric 77

Copyright 1993-2023 Jeff Sutherland 4

 Scrumming the Scrum 77
Hyperproductivity: Twice the Work in Half the Time 77
Brain Science and Hard Data 78
Conclusion 78
References 78

Embracing the Power of Intransitive Competition: The Key to Unleashing Diversity and Innovation in Scrum
Teams 80
Background 80
Introduction 80
The Power of Intransitive Competition 80
Unleashing Diversity and Innovation in Scrum Teams 81
Conclusion 81
References 81

The Confluence of First Principles, Scrum, Product Teams, and Design Thinking: A Deep Dive into Agile
Product Development 83
Introduction 83
First Principles 83
Scrum 83
Product Teams 84
Design Thinking 84
The Confluence 84
The Confluence: A Deeper Exploration 84
The Driving First Principles 85
References 86

Definition of Ready 90
Abstract: 90
Introduction 90
Diverse Opinions on Definition of Ready 90
The Origin of Definition of Ready 90
Scrum and Complex Adaptive Systems theory (CAS) 91
The Systematic Case: Twice the Work in Half the Time 91
Balancing Readiness with Speed and Adaptability 91
The Role of Definition of Ready in Scrum 91
Benefits of Adopting Definition of Ready 92
Drawbacks of Adopting Definition of Ready 92
Finding the right balance 92

Copyright 1993-2023 Jeff Sutherland 5

 Conclusion 92
Future Directions 93
Final Thoughts 93
References 93

Why Agile Transformations Fail: A First Principles Perspective 94

Introduction 94
Agile Transformations: Where Things Go Wrong 94
Waterfall Management and Disjunction with First Principles 95
Misalignment with Complex Adaptive Systems (CAS) 95
Neglecting the Neuroscience of Scrum 96
Strategies for Success 96
Conclusion 96

Personal Scrum 98
The Essence of Being Human 98
The Committee in the Mind 98
Scrumming the Self 99
Personal Scrum 99
Conclusion 99
References 100

Epilogue: Our Journey Continues 101

Copyright 1993-2023 Jeff Sutherland 6

Note to Reader

In the classic film, The Wizard of Oz, Dorothy and her companions embark on a journey to meet the
great and powerful Wizard, each seeking something they believe they lack - courage, a heart, a brain,
and a way home. Yet, when they finally pull back the grand curtain, they discover not a mighty
wizard, but a modest man operating an illusion. This revelation, however, leads to a deeper
understanding: they had what they were seeking all along. The courage, the heart, the brain, and the
way home were within them, obscured not by the wizard's illusion but by their own perceptions.

Similarly, behind the modest thirteen pages of the Scrum Guide, there is no grand illusion but a
profound reality. It is a grand cathedral of ideas, a web woven from the theories of great thinkers,
innovators, and doers. Scrum didn't merely spring from the minds of its creators; it emerged
organically, a manifestation of profound, universal principles. It reflects how people work, how our
brains operate, and how teams collaborate. Scrum was an inevitable outcome in our era of
accelerating change and information overload.

Yet, just like Dorothy and her companions, many organizations seeking to implement Scrum may feel
they lack something - efficiency, innovation, agility. They pull back the curtain of Scrum, hoping to
find a magical solution. What they discover, however, is not a quick fix but a mirror reflecting their
own potential. The efficiency, innovation, and agility they seek are not bestowed by Scrum; they are
unlocked by it. The true power of Scrum lies not in the framework itself but in the people who use it,
the teams who embrace it, and the organizations who nurture it.

Yet, amidst this whirlwind of constant evolution, understanding the fundamental principles
underlying Scrum remains crucial. To aid this understanding, we present this collection of essays,
concise yet powerful explorations into the essence of Scrum. Designed for discussion and
contemplation, each piece is self-contained, complete with references to original works.

These references are not merely cursory citations. They represent a vast reservoir of knowledge,
each potentially initiating a journey of lifelong learning. Many of these references are the life’s work
of some of our greatest minds, thinkers whose insights have been instrumental in shaping my own

Copyright 1993-2023 Jeff Sutherland 7

understanding and practice of Scrum. I have studied some of these works for years, and I continue to
learn from them.

This collection is diverse and eclectic, just like its readership. Some essays may provoke thought,
some might appear magical, and others might even seem mundane. Yet, every piece contributes to a
holistic understanding of Scrum. Every essay, regardless of your initial response to it, has the
potential to make you a better person, a better team member, and a better Scrum Master - as they
have done for me.

Understanding and applying Scrum is an enriching journey rather than a destination. It invites us to
learn, unlearn, and relearn, in an ongoing cycle of growth. I invite you to embark on this journey with
an open mind and the readiness to embrace both challenges and rewards along the way. Happy
reading, and may you discover the transformative power of Scrum through these pages.

Copyright 1993-2023 Jeff Sutherland 8

Preface

As a Registered Scrum Trainer and coach, I have been immersed in countless dialogues with diverse
Scrum practitioners and enthusiasts. From Product Owners to Developers, Team Members, and
Managers, my weeks have been filled with discussions that delve deep into the heart of Scrum. The
myriad questions that I have encountered highlight not only the vast scope of Scrum, but also the
thirst for understanding that drives people to ask, "Why do we do this in Scrum?" or "How can AI be
integrated into my Scrum team?"

In my quest to answer these questions, I'm often reminded of my time with an AI company,
developing learning systems. The AI we built was designed to expand learning, thereby enhancing
perception and the ability to achieve objectives. This process began by identifying the learner's
mental construct, regardless of its shortcomings or confusion, and gradually inserting new concepts
for the learner to explore and build upon. This approach, which we termed 'frobbing the brain',
aimed at introducing dissonance, a gentle perturbation that stimulated the learner's mental state,
prompting them to reconsider and reconfigure their thinking.

In many ways, the questions posed by the Scrum community mirror the journey of the learner with
the AI. Often, people approach Scrum from a perspective shaped by their past experiences and
knowledge, which can sometimes be outdated or inapplicable. To move forward, a shift in thinking is
needed, which can be facilitated by going back to the underlying mechanics or First Principles.

My past as a Professor of Radiology, trained in radiation physics, along with my experience as a

Professor of Mathematics and Statistics, has endowed me with a deep fascination for the
fundamental principles that govern our universe. Mathematician and physicist Stephen Wolfram, in
his groundbreaking Physics Project, dove into these principles, showcasing how complex phenomena
like relativity and quantum mechanics are emergent, propelled by underlying First Principles. Among
these, the principle of Computational Irreducibility stands out: it argues that the universe cannot
predict outcomes without undergoing the simulation process in its entirety.

Copyright 1993-2023 Jeff Sutherland 9

This principle is of paramount importance when considering project management methodologies.
Just as relativity and quantum mechanics emerged from a deep understanding of First Principles,
project management frameworks are emergent phenomena, born out of insights gleaned from
numerous projects. In the case of Scrum, these insights are derived from millions of projects. The
efficacy of these frameworks largely depends on their alignment with First Principles, which span
from physics and chemistry to biological evolution and complex adaptive systems.

The framework of Scrum, therefore, emerged as a manifestation of these First Principles, as observed
through the lenses of physics, mathematics, and data. It is a name I have given to a practice designed
to align with reality. Its success or failure hinges on its degree of alignment with these First Principles,
many of which are mathematically provable. Without a comprehensive understanding of these
fundamental concepts, achieving a hyperproductive state with Scrum, or any other framework, will
remain an elusive goal.

In "First Principles in Scrum", we are taking a step back to the roots, to the fundamental principles
that dictate the operation of our universe. From this bedrock, we'll construct our understanding of
Scrum. Scrum is more than just a framework; it is a philosophy deeply intertwined with the
dynamism of our ever-evolving universe.

Understanding Scrum starts with understanding these First Principles and recognizing the need for
rapid adaptation in a world of constant flux. This book aims to provide you with that foundational
knowledge, enabling you to approach Scrum with a perspective that is both open and evolving, and
ready to adapt and thrive in this complex world.

Copyright 1993-2023 Jeff Sutherland 10

How Scrum Emerged From First Principles

Introduction
In the realm of product development, Scrum has emerged as a powerful and widely embraced agile
framework. However, to truly grasp the essence of Scrum and its underlying principles, we must
embark on a journey that connects it with an intricate web of concepts and theories. This essay will
weave together the story of the FBI's transformation, the wisdom of Taiichi Ohno, the insights of
Wolfram and Gödel, and the fundamental principles of Scrum. As we delve into this tapestry, we will
unravel the interconnectedness of lean, complex adaptive systems, and the very fabric of the
universe.

The FBI's Triumph and the Path to Empiricism

Our story began in Scrum: The Art of Doing Twice the Work in Half the Time with the Federal Bureau
of Investigation (FBI), faced with a monumental task after the tragic events of 9/11. The FBI
embarked on a mission to build a sophisticated system to track terrorists. However, after spending
millions of dollars and encountering insurmountable obstacles, the project faltered. It was at this
crossroads that the FBI embraced Scrum, a framework rooted in empiricism. The teams, guided by
the first principles of Scrum, relied on empirical evidence and continuous feedback loops to
transform the project's trajectory.

Taiichi Ohno's Sage Advice and the Pursuit of Continuous Improvement

Amidst the FBI's Scrum transformation, Taiichi Ohno's teachings found resonance within the teams.
Ohno, a pioneer of Lean manufacturing, believed in the power of humility and continuous
improvement. Half of what we think is wrong, and our daily mission is to recognize and rectify these
fallacies. Embracing Ohno's wisdom, the teams embraced a culture of introspection, accountability,

Copyright 1993-2023 Jeff Sutherland 11

and relentless pursuit of excellence. This commitment to continuous improvement became the
lifeblood of their Scrum journey.

Scrum's Origin in Lean and the Dance of Complex Adaptive Systems

Scrum finds its roots in the renowned "New New Product Development Game" paper by Takeuchi
and Nonaka. Lean principles, drawn from the world of hardware, provided the initial foundation for
Scrum. However, beneath the surface of lean lies a deeper tapestry of ideas. At the heart of it all is
the concept of complex adaptive systems (CAS) and the powerful force of systems evolution. Just as
life evolves at the edge of chaos, Scrum teams thrive when they operate within the boundaries of
autonomy and self-organization. This dance of autonomy within a CAS forms the basis for Scrum's
ability to adapt and respond to the ever-changing needs of product development.

Gödel's Theorem and Computational Irreducibility: Unraveling Certainty

As our journey continues, we encounter the profound insights of Gödel's incompleteness theorems
and the concept of computational irreducibility. Gödel's theorems remind us that in the realm of
mathematics, there are inherent limits to what can be proven or known within a formal system.
Similarly, computational irreducibility reveals that certain systems are too complex to be fully
predicted or simplified through computation alone. In the context of Scrum, these principles
emphasize the importance of empiricism and the necessity of continuous inspection and adaptation.
Scrum, like the universe itself, thrives in the realm of uncertainty, where the outcomes unfold only as
the project progresses.

The Cathedral Unveiled

As we conclude our journey through the interconnected world of Scrum's first principles, we realize
that Scrum is more than just a set of principles—it is a reflection of the intricacies of the universe
itself. Scrum's foundations in lean, complex adaptive systems, and the very fabric of physics and
biology, highlight it’s nature as an emergent phenomenon that aligns itself with First Principles. Let’s
dig deeper into these concepts.

The FBI's Triumph and the Path to Empiricism

The FBI, an institution responsible for maintaining national security, found itself confronted with an
immense challenge after the devastating events of 9/11. The gravity of the situation demanded a
system that could effectively track and identify potential threats, but their initial efforts fell short of
expectations. With hundreds of millions of dollars invested and limited progress made, it became
evident that a transformative approach was needed.

It was during this critical juncture that the FBI turned to the principles of Scrum, recognizing the
value of empiricism in navigating complex and uncertain terrain. The Scrum framework provided the
FBI teams with a systematic and flexible approach, rooted in the belief that knowledge is acquired
through experience and observation.

With a renewed sense of purpose, after cutting the development organization from 300 to 30 and
moving them into the basement of the FBI building, the teams embarked on their Scrum journey
guided by the first principle of empiricism. They embraced the power of transparency, inspection,
and adaptation, laying the foundation for continuous improvement. The teams understood that in
order to overcome the obstacles they faced, they needed to learn from their experiences, gather
empirical evidence, and make data-driven decisions.

Copyright 1993-2023 Jeff Sutherland 12

Regular retrospectives became a hallmark of their Scrum process. These reflective sessions allowed
team members to openly discuss their challenges, celebrate their successes, and collectively identify
areas for improvement. Through these feedback loops, the teams fostered a culture of learning and
collaboration, transcending the limitations of traditional hierarchical structures.

As the teams embraced empiricism, they became empowered to challenge assumptions and adapt
their approach based on real-time insights. They recognized that what may have seemed like the
right path at the beginning of a project could shift as new information emerged. Embracing the
uncertain nature of their work, they learned to navigate uncharted waters with confidence and
resilience.

The transformation within the FBI was not without its challenges. The traditional command-and-
control structure had to give way to a more decentralized approach, where decisions were made
collaboratively and responsibilities were shared. This shift in mindset and organizational culture
required trust and open communication, enabling team members to take ownership of their work
and contribute their diverse expertise.

Through the application of Scrum's empiricism, the FBI teams experienced a remarkable turnaround.
They began delivering tangible results in a fraction of the time and cost previously incurred. By
embracing continuous improvement, they optimized their processes, eliminated inefficiencies, and
responded swiftly to changing requirements. The transformation was a testament to the power of
empiricism, reinforcing the notion that learning from experience and adapting based on evidence is
the key to success in complex and dynamic environments.

The FBI's journey with Scrum serves as a compelling example of how a commitment to empiricism
can lead to transformative outcomes. It highlights the importance of challenging conventional
wisdom, embracing uncertainty, and fostering a culture of continuous learning. Through their
success, the FBI teams demonstrated that by adhering to the principles of Scrum, even the most
daunting challenges can be overcome, and truly remarkable achievements can be realized.

As we continue our exploration of Scrum's first principles, we will delve deeper into the philosophies
of Taiichi Ohno, the interplay between lean and complex adaptive systems, and the profound insights
of Gödel's theorem. Together, these principles illuminate the path towards unlocking the full
potential of Scrum and harnessing the power of empiricism in the pursuit of excellence.

Taiichi Ohno and the Pursuit of Continuous Improvement

Taiichi Ohno, the father of the Toyota Production System, made significant contributions to the world
of manufacturing and product management. His philosophies and practices have had a profound
impact on the principles that underpin Scrum, particularly the pursuit of continuous improvement.

Ohno recognized that the path to excellence lay not in complacency but in a relentless commitment
to identifying and eliminating waste. He understood that half of what we think is wrong, and that our
job every day is to uncover those shortcomings and address them. This philosophy of humility and
self-reflection resonates deeply with the spirit of Scrum.

In the context of Scrum, continuous improvement is ingrained in the framework's DNA. The principle
of inspect and adapt provides teams with the opportunity to regularly assess their performance,
identify areas of improvement, and take action to refine their processes. By embracing Ohno's
philosophy, Scrum teams are encouraged to challenge their assumptions, question the status quo,
and seek innovative solutions.

Copyright 1993-2023 Jeff Sutherland 13

Ohno's insights also emphasize the importance of creating an environment where individuals feel
safe to voice their ideas and admit their mistakes. He understood that by affirming the team's
expertise and encouraging open communication, leaders can foster a culture of trust and
collaboration. When team members feel valued and supported, they become more willing to take
risks, share their insights, and actively contribute to the collective pursuit of excellence.

In the context of Scrum, this principle is embodied in the concept of self-organizing teams. By
empowering teams to make decisions and take ownership of their work, Scrum fosters an
environment that encourages autonomy and creativity. Teams have the freedom to experiment,
innovate, and continuously improve their processes, leading to enhanced productivity and a greater
sense of ownership.

Ohno's philosophy of continuous improvement also aligns with the fundamental principles of Lean,
which is the foundation upon which Scrum is built. Lean thinking emphasizes the elimination of
waste and the pursuit of perfection, with the ultimate goal of delivering value to the customer. By
continuously seeking opportunities to improve efficiency, reduce unnecessary work, and enhance the
quality of deliverables, Scrum teams embrace the essence of Lean principles.

The integration of Ohno's philosophy into Scrum creates a powerful synergy that propels teams
towards excellence. By embracing continuous improvement and encouraging a mindset of humility
and learning, Scrum teams foster a culture of innovation and adaptability. They become adept at
identifying and addressing inefficiencies, optimizing their processes, and delivering high-quality
products that exceed customer expectations.

As we journey further into the principles of Scrum, we will explore the profound insights of Godel's
theorem, the interplay between complex adaptive systems and lean thinking, and the deeper
philosophical underpinnings of Scrum's first principles. By delving into these concepts, we expand
our understanding of Scrum's transformative power and the universal principles that drive its
success.

Godel's Theorem and the Power of Empiricism in Scrum

In the realm of mathematics and logic, Godel's theorem stands as a profound testament to the limits
of formal systems and the inherent uncertainty that permeates our understanding of the world. As
we explore the principles of Scrum, we encounter the profound implications of Godel's theorem and
its resonance with the framework's reliance on empiricism.

Godel's theorem, formulated by mathematician Kurt Godel in the early 20th century, demonstrates
that within any consistent formal system of mathematics, there will always be true statements that
cannot be proven within that system. In essence, Godel showed that there are inherent limitations to
what can be mathematically predicted or proven.

The implications of Godel's theorem extend beyond the realm of mathematics. They touch upon the
very nature of knowledge and certainty in our world. Godel's theorem challenges the notion that we
can have complete and absolute knowledge of a system or a project. It reminds us that there will
always be aspects that elude our understanding, no matter how rigorous our methods of analysis
may be.

In the context of Scrum, Godel's theorem finds resonance in the principle of empiricism—the idea
that knowledge comes from experience and observation. Scrum embraces the inherent uncertainty

Copyright 1993-2023 Jeff Sutherland 14

and complexity of product development projects, acknowledging that complete knowledge and
predictability are unattainable at the outset.

By adopting an empirical approach, Scrum teams recognize the importance of learning from
experience and using feedback loops to guide decision-making. The iterative nature of Scrum allows
for continuous experimentation, adaptation, and refinement of the product and the development
process. It encourages teams to inspect and adapt based on real-world data and observations, rather
than relying solely on theoretical or speculative models.

Godel's theorem serves as a reminder that certainty is elusive, and that the most effective way to
navigate complex systems is through ongoing observation and empirical response to data. Scrum's
embrace of empiricism aligns with this understanding, as it emphasizes the value of real-time
feedback and continuous learning.

As Scrum teams engage in frequent retrospectives and sprint reviews, they create opportunities to
reflect on their work, identify areas for improvement, and make adjustments accordingly. This
dynamic and adaptive approach allows for the incorporation of new information and insights,
enabling teams to respond effectively to changing circumstances and deliver greater value to the
customer.

Furthermore, Godel's theorem invites us to embrace the notion of uncertainty as a catalyst for
growth and innovation. The understanding that we can never have complete certainty about a
project or a system opens the door to exploration, experimentation, and the pursuit of new
possibilities. Scrum's iterative and incremental approach aligns with this mindset, enabling teams to
embrace uncertainty and leverage it as a springboard for innovation and continuous improvement.

In this way, Godel's theorem and the principles of Scrum converge, highlighting the power of
empiricism and the inherent uncertainty that underlies our journey through complex systems. By
acknowledging the limits of our knowledge and embracing the iterative and adaptive nature of
Scrum, teams can navigate the ever-changing landscape of product development with greater
confidence, resilience, and effectiveness.

As we delve deeper into the principles of Scrum, we will explore the interplay between complex
adaptive systems, the foundations of lean thinking, and the emergence of Scrum as a transformative
framework. By examining these connections, we gain a more profound understanding of Scrum's
ability to harness uncertainty, foster innovation, and drive successful outcomes in the dynamic world
of product development.

Computational Irreducibility and the Emergence of Scrum

In the quest to unravel the mysteries of the universe, scientists have grappled with the concept of
computational irreducibility—the idea that certain systems are so complex that their behavior
cannot be simplified or predicted through computation alone. As we explore the principles of Scrum,
we uncover the profound connection between computational irreducibility and the emergence of
this transformative framework.

The notion of computational irreducibility traces its roots to the pioneering work of Stephen
Wolfram, a renowned scientist and mathematician. Wolfram's research suggests that some systems,
particularly those that are complex and non-linear, cannot be fully understood or predicted through
mathematical or computational modeling alone. Instead, these systems must be allowed to play out
in order to observe and understand their behavior and outcomes.

Copyright 1993-2023 Jeff Sutherland 15

In the context of Scrum, the concept of computational irreducibility sheds light on the dynamic and
unpredictable nature of product development projects. Traditional project management approaches,
such as the waterfall model, attempt to predict and plan every aspect of the project in advance.
However, the inherent complexity of product development renders such approaches inadequate, as
they fail to account for the intricacies and uncertainties inherent in the process.

Scrum, on the other hand, embraces the reality of computational irreducibility by emphasizing an
iterative and adaptive approach. By dividing the project into small, manageable increments called
sprints, Scrum allows teams to gather real-time feedback and adjust their course of action based on
empirical evidence. This iterative nature of Scrum enables teams to respond to changing
requirements, technologies, and market conditions, thereby maximizing the chances of success.

The emergence of Scrum as a transformative framework can be attributed to its alignment with the
principles of computational irreducibility. By acknowledging the inherent complexity and
unpredictability of product development, Scrum empowers teams to embrace uncertainty and
leverage it as a catalyst for innovation and continuous improvement.

Moreover, the concepts of emergent phenomena and self-organization are intricately linked to
computational irreducibility. In complex systems, such as Scrum teams, the interactions and
behaviors of individual components give rise to emergent properties that cannot be deduced from
the properties of the individual components alone. These emergent properties, in turn, shape the
dynamics and effectiveness of the team.

Scrum's emphasis on self-organizing teams, where individuals collaborate and make decisions
collectively, harnesses the power of emergent phenomena. By fostering autonomy and diversity
within the team, Scrum allows for the emergence of innovative ideas and approaches that may not
have been foreseen or planned in advance.

The principles of computational irreducibility and emergent phenomena also intersect with the Lean
thinking that underpins Scrum. Lean, derived from the renowned Toyota Production System,
advocates for the elimination of waste, the pursuit of continuous improvement, and the
empowerment of frontline workers.

Scrum, influenced by Lean principles, embraces the idea of "autonomation" or "automation with a
human touch." This concept recognizes that while automation can streamline processes, human
involvement and decision-making are crucial for effective problem-solving and adaptability.

By embracing computational irreducibility and the emergent nature of complex systems, Scrum
enables teams to navigate the ever-changing landscape of product development with agility,
creativity, and resilience. It provides a framework for harnessing uncertainty and complexity as
catalysts for growth, innovation, and improved outcomes.

We next delve deeper into the foundational principles of Scrum and their connection to the realms
of biology, physics, and chemistry. By exploring these interdisciplinary connections, we gain a richer
understanding of Scrum's place within the broader tapestry of the universe and its potential to drive
transformative change in the world of product development.

From Biology to Scrum: The Evolutionary Paradigm

In our exploration of Scrum's origins and principles, we encounter a fascinating connection to the
realms of biology, physics, and chemistry. By understanding the fundamental principles that underpin

Copyright 1993-2023 Jeff Sutherland 16

life itself, we gain deeper insights into the evolutionary paradigm that shapes Scrum as a framework
for product development.

The field of biology provides a wealth of knowledge about the mechanisms of evolution and
adaptation. At its core, evolution is driven by the process of variation, selection, and retention of
favorable traits. Organisms that can adapt to changing environments and maximize their chances of
survival have a higher likelihood of passing on their advantageous traits to future generations.

This evolutionary paradigm resonates with the principles of Scrum. Just as organisms evolve and
adapt in response to changing conditions, Scrum teams embrace the principles of inspection,
adaptation, and continuous improvement. By regularly reflecting on their work and making
adjustments based on feedback, Scrum teams strive to enhance their effectiveness and deliver value
to customers.

The concept of emergence, which we explored in the context of computational irreducibility, also
finds resonance in biology. In complex adaptive systems, such as ecosystems or even the human
body, the interactions of individual components give rise to emergent properties that cannot be
predicted solely by studying the parts in isolation.

Similarly, Scrum teams, with their diverse members and collaborative dynamics, embody the
principles of emergence. The collective intelligence and creativity that emerge from the interactions
of team members allow for innovative solutions and approaches to problem-solving. The team
becomes more than the sum of its parts, drawing strength from the combined expertise and
perspectives of its members.

Physics and chemistry, the foundations of the natural world, further deepen our understanding of
Scrum's principles. The principles of relativity and quantum mechanics, which govern the behavior of
matter and energy, demonstrate the inherent complexity and unpredictability of the universe.

This complexity mirrors the intricate nature of product development projects. The interactions
between various components—technologies, team dynamics, customer needs—give rise to intricate
patterns and outcomes that cannot be fully predicted or controlled. Scrum, with its iterative and
adaptive approach, acknowledges this complexity and allows teams to respond effectively to
changing circumstances.

Chemistry, on the other hand, provides insights into the power of chemical reactions and
transformations. Chemical reactions occur at the molecular level, where atoms and molecules
interact and rearrange to form new substances. This process of transformation and change is
fundamental to the evolutionary nature of life itself.

Scrum, too, is characterized by transformation and change. Through its iterative cycles, Scrum teams
continually transform ideas, requirements, and feedback into tangible products or solutions. This
transformative nature of Scrum aligns with the underlying principles of chemistry, where atoms
come together and rearrange to form new molecules and compounds.

As we contemplate the interdisciplinary connections between biology, physics, chemistry, and Scrum,
we begin to see the tapestry of the universe woven into the very fabric of this agile framework.
Scrum's principles of adaptation, emergence, complexity, and transformation align with the
fundamental principles that shape life, matter, and energy.

By recognizing these connections, we expand our perspective on Scrum beyond its practical
applications in product development. We glimpse its place within the larger cosmic dance, where

Copyright 1993-2023 Jeff Sutherland 17

systems evolve, complexity emerges, and transformation unfolds. Scrum becomes a testament to the
inherent beauty and elegance of the universe, as it provides a framework for harnessing these
natural processes to drive innovation, collaboration, and success in the realm of product
development.

Let’s synthesize Scrum's principles for individuals, teams, and organizations. We will reflect on the
transformative power of Scrum and its capacity to shape the future of product development in an
ever-evolving world.

The Transformative Power of Scrum: Shaping the Future of Product

Development
As we conclude our initial foray into the depths of Scrum's origins, principles, and connections to
various disciplines, we find ourselves at the threshold of a new era in product development. Scrum,
with its foundations in lean thinking, empirical process control, complexity theory, and evolutionary
principles, holds the transformative power to shape the future of product development in profound
ways.

Throughout our exploration, we will see how Scrum embraces the principles of lean thinking, as
pioneered by Taiichi Ohno and his colleagues at Toyota. The emphasis on waste reduction,
continuous improvement, and the pursuit of perfection resonates with Scrum's principles of
inspection, adaptation, and delivering value to customers. By applying lean principles to product
development, Scrum enables teams to minimize inefficiencies, optimize processes, and enhance
overall productivity.

Scrum's roots in empirical process control remind us of the importance of data-driven decision-
making and continuous learning. Just as Wolfram's concept of computational irreducibility highlights
the limits of predictability, Scrum encourages teams to base their actions on real-time feedback and
empirical evidence. This iterative and adaptive approach allows for rapid experimentation, course
correction, and the ability to embrace uncertainty with confidence.

The insights from complexity theory and the concept of emergence provide Scrum teams with a
powerful framework for navigating the complexities of product development. By fostering self-
organization, autonomy, and collaboration, Scrum enables teams to harness the collective
intelligence and creativity of its members. This unleashes their potential to tackle complex problems,
innovate, and respond effectively to changing circumstances.

Gödel's incompleteness theorems, with their implications for the limits of mathematical certainty,
find resonance in Scrum's principles of empiricism and inspection. By acknowledging that we can
never be certain of the future, Scrum invites us to embrace a mindset of curiosity, adaptability, and
continuous improvement. It challenges us to question assumptions, challenge the status quo, and
seek new possibilities.

As we consider the broader implications of Scrum's transformative power, we recognize its impact
not only on product development but also on the individuals, teams, and organizations that adopt it.
Scrum empowers individuals by fostering autonomy, collaboration, and a sense of purpose. It
provides a platform for personal growth, skill development, and fulfillment.

At the team level, Scrum fosters a culture of trust, transparency, and shared accountability. It
promotes cross-functional collaboration, effective communication, and a relentless focus on

Copyright 1993-2023 Jeff Sutherland 18

delivering value to customers. Scrum teams become dynamic, self-organizing units that can adapt to
changing market conditions, innovate, and outperform traditional hierarchical structures.

For organizations, Scrum offers a pathway to agility and resilience in an increasingly volatile and
uncertain business landscape. By embracing Scrum's principles, organizations can improve time to
market, increase customer satisfaction, and foster a culture of continuous improvement. Scrum
enables organizations to navigate complex challenges, seize opportunities, and thrive in an ever-
evolving world.

As we look ahead to the future of product development, it is clear that Scrum will continue to play a
vital role. Its principles of adaptation, collaboration, and continuous improvement align with the
demands of a rapidly changing technological landscape. By embracing Scrum, individuals, teams, and
organizations can unleash their full potential, shape the future of product development, and
contribute to the advancement of society as a whole.

In conclusion, Scrum is more than just an agile framework for product development; it is a powerful
catalyst for transformation and innovation. By drawing insights from lean thinking, complexity
theory, empirical process control, and the principles of emergence, Scrum provides a holistic
approach to navigating the complexities of the modern world. It offers a way forward that embraces
uncertainty, fosters collaboration, and promotes continuous learning and improvement. With Scrum,
organizations can respond to change with agility, deliver value with efficiency, and cultivate a culture
of innovation and resilience. As we continue to navigate the challenges and opportunities of the
digital age, the principles and practices of Scrum will remain an invaluable guide, helping us to adapt,
innovate, and thrive in an ever-changing world.

Personal Connections to Mentors Who Affected Scrum

In our quest to understand the first principles that govern the universe and their connection to
Scrum, we have explored various disciplines and theories. From the fundamental physics of the
universe to the emergence of complex adaptive systems, each level of emergence has led us to a
deeper understanding of the world we inhabit and the principles that underpin it. Sutherland has
directly worked with some of the leading thinkers of the 20th century in the fields of physics,
mathematics, evolutionary theory, medicine, computing and AI technology. One of the goals of this
book is to capture that experience and its influence on the formation of Scrum.

Copyright 1993-2023 Jeff Sutherland 19

At the foundational level, we delve into the work of Stephen Wolfram and his concept of
computational irreducibility. This idea suggests that the universe itself is computational in nature and
that its behavior cannot be fully predicted or simplified through computation alone. It is through this
lens that we begin to comprehend the complexity and unpredictability inherent in the world around
us. Wolfram’s work formalizes the findings of Edward Fredkin who worked in the AI lab with Marvin
Minsky at MIT. Fredkin was a pioneer in the field of digital physics and was involved in the
development of the first computer memory based on thin-film magnetic storage technology. He also
contributed to the development of cellular automata, which are a type of computational model used
in complex systems research. Fredkin was known for his unconventional ideas about the nature of
reality and the universe, including the possibility that the universe is a kind of digital computer or
simulation. He was the lead investor in Sutherland’s startup, Individual Inc., the first internet news
company based on the SMART lexical analysis system from Cornell University. This system was a
forerunner to the type of AI systems we see today in chatGPT.

Moving forward, we explore the realm of relativity and quantum mechanics, theories developed by
visionaries like Albert Einstein, Niels Bohr, Werner Heisenberg, and Max Planck. These theories have
expanded our understanding of space, time, matter, and energy, revealing the intricate interplay
between particles, waves, and the fabric of the universe. Sutherland was trained in radiation physics
under William Hendee at the University of Colorado Medical School. As one of the top radiation
physicists in the last century. Hendee authored the leading medical imaging physics and medical
radiation physics texts in academia and they continue to be updated regularly to this day by a senior
team of his former students. Sutherland was a Professor in Hendee’s department of Radiology
supervising Ph.D. students moving from theoretical physics into medicine. He was cofounder, at the
request of Hendee of the Center for Vitamins and Cancer Research under the sponsorship of Linus
Pauling and made significant contributions to theoretical research in cancer that has influenced
systems thinking in that field. The lastest version of Hendee’s Medical Imaging and Hendee’s
Radiation Physics are being used as source materials for Sutherland’s latest Scrum startup.

From the realm of physics, we venture into the realm of chemistry where Linus Pauling got his first
Nobel Prize. Sutherland met with Pauling many times in his lab and was taught by Pauling about the
structure of DNA using the model on his living room coffee table. This was the model he gave to
Watson and Crick than enabled them to achieve their Nobel prize.

The structure of atoms and the principles of wave-particle duality shape the behavior of matter.
Chemical reactions, driven by these principles, give rise to the vast array of substances and
compounds that form the building blocks of life as we know it. Sutherland is currently the Founder
and Chief Scientist of a healthcare startup studying the intersection of biochemistry and biophysics
and is working with molecular weights of compounds and their interactions with electromagnetic
frequencies using the DeBroglie equation, fundamental to quantum mechanics, on a daily basis. This
is leading to a new framework for healthcare based on Scrum.

In the realm of biology, we encounter the phenomenon of evolution, first proposed by Charles
Darwin. Evolutionary processes, guided by natural selection and genetic variation, have shaped the
diversity of life on Earth over billions of years. It is through the lens of evolution that we gain insight
into the emergence of complex adaptive systems. Sutherland collaborated with Professor Daniel
Dennett at Tufts University who is the leading proponent of Darwin’s work in the last century.
Sutherland participated in one of Dennett’s leading seminars in AI where Nobel Laureates and
leading AI experts (Minsky and Moravec) agreed that the superintelligence singularlity will be
achieved before 2055. You will see more of all of this later in this book.

Copyright 1993-2023 Jeff Sutherland 20

Evolutionary theory forced the emergence of complex adaptive systems theory to provide a
framework for understanding the behavior of systems composed of numerous interconnected
agents. These systems, whether they are ecosystems, social networks, or even human organizations,
exhibit emergent properties that cannot be attributed solely to the behavior of individual
components. It is within these systems that autonomy, diversity, collaboration, and self-organization
come to the fore. Sutherland worked for many years in AI Alley in Cambridge MA where Nobel
physicist Feynman was encouraging Thinking Machines, the first massively parallel supercomputing
company to simulate the evolution of species on the computer under the guidance of Professor Jay
Gould at Harvard. This work directly influenced the first Scrum team in 1993 and created what
Google architects called “the Secret Sauce of Scrum” as the driver of hyperproductive Scrum teams.
More on these topics later.

As we ascend the ladder of emergence, we reach the domain of project planning frameworks. Scrum,
with its origins in the lean thinking of Taiichi Ohno, the empirical process control of Shewhart and
Deming, and the insights from complex adaptive systems theory, emerges as a framework that aligns
closely with the way the universe operates. Sutherland worked with Tom Gilb for many years who
was an associate of Edwards Deming expanding his understanding of the roots of the Toyota Way.

Scrum's emphasis on empiricism, inspection, and adaptation resonates with the fundamental
principles of learning from experience and responding to feedback that we see in the natural world.
By embracing complexity, uncertainty, and the necessity of continuous improvement, Scrum enables
teams to thrive in an ever-changing environment.

This alignment with first principles is reflected in the widespread adoption of Scrum within the
product development industry. The latest agile survey reveals that Scrum commands an impressive
88% market share, a testament to its effectiveness in delivering value and empowering teams. In the
past year, Scrum@Scale which is based on this book delivered almost a 400% increase in market
share because of its ability to drive stock price up 400% (John Deere) and increase feature delivery
400% (Rocket Mortgage) over competing frameworks. All frameworks are emergent properties of
observation of thousands of projects, millions in the case of Scrum, and the success of any
framework is dependent on its alignment with First Principles.

In conclusion, the journey through the principles that underpin the universe has led us to the
emergence of Scrum as a project management framework that aligns with the fundamental workings
of the natural world. By tracing the levels of emergence, from the fundamental physics to the
evolution of complex adaptive systems, we have will discover the deep-rooted connections between
Scrum and the way the universe operates. When we understand these First Principles we will be
radically more effective Agile leaders and Scrum Masters.

As we continue to explore the frontiers of science, technology, and human understanding, Scrum
provides a powerful framework for embracing complexity, fostering collaboration, and driving
continuous improvement. By aligning with the first principles, Scrum enables us to navigate the ever-
changing landscape of product development and contribute to the advancement of our collective
endeavors.

References
Wolff, M. (2008) Schroedinger's Universe and the Origin of the Natural Laws. Outskirts Press, Inc.
Drawing upon Erwin Schrödinger's insights, Wolff argues that the entire universe, including matter
and forces, can be understood as manifestations of shapes and variations within the structure of
space. He challenges traditional particle theories and advocates for a wave structure perspective,

Copyright 1993-2023 Jeff Sutherland 21

suggesting that all matter is interconnected as part of the wave structure of the universe. All
fundamental forces and standard physics observed constants derive directly from his simple First
Principles of the wave theory of matter.

Dennett, D. (1995) Darwin's Dangerous Idea: Evolution and the Meanings of Life. Simon & Shuster.
Dennett explores Charles Darwin's theory of evolution and its profound implications for our
understanding of life on Earth. He argues that the process of natural selection, driven by variation,
heredity, and competition, is the fundamental mechanism behind the diversity and complexity of life
forms.

Wolfram, S. (2002) A New Kind of Science. Champaign, IL: Wolfram Media. This seminal work
explores the concept of computational irreducibility and its implications for understanding the
complexity of the universe. Wolfram's insights into the computational nature of the universe provide
a foundation for our exploration of emergence and unpredictability.

Einstein, A. . (1905) The Special Theory of Relativity. Annalen der Physik 17:891-921. Einstein's
groundbreaking theory of special relativity revolutionized our understanding of space, time, and
gravity. This work laid the foundation for our exploration of the physical principles that govern the
universe.

Darwin, C. (1859) On the Origin of Species. London: John Murray. Darwin's groundbreaking work on
evolution by natural selection provided a comprehensive explanation for the diversity of life on
Earth. His ideas have shaped our understanding of the biological processes that drive adaptation and
change.

Ohno, T. (1988) Toyota Production System: Beyond Large-Scale Production. Productivity Press.
Ohno's influential book delves into the principles of the Toyota Production System, which forms the
basis for lean thinking and its application in manufacturing and beyond.

Takeuchi, H., Nonaka, I. (1986) The New New Product Development Game. Harvard Business
Review 64(1):137-146. This seminal article introduced the concept of lean hardware and highlighted
the importance of cross-functional, self-organizing teams in product development.

Gould, S. J., & Eldredge, N. (1977) Punctuated equilibria: The tempo and mode of evolution
reconsidered. Paleobiology 3(2):115-151. This seminal paper introduced the concept of punctuated
equilibrium, proposing that species experience long periods of stability (equilibrium) interrupted by
brief bursts of rapid change (punctuation).

Gould, S. J. The Structure of Evolutionary Theory. Cambridge, MA: Harvard University Press; 2002.
This posthumously published book is considered Gould's magnum opus. In this comprehensive work,
Gould synthesizes his lifelong research and ideas on evolutionary biology, incorporating various
aspects of paleontology, developmental biology, and genetics.

Copyright 1993-2023 Jeff Sutherland 22