Agile Metrics, Value, and Softwre
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The disconnect between the delivery organization and the business is prevalent in the software industry. Somewhere along the line, the real vision behind our projects gets lost. We all know it. Can better metrics help? This session examines some common and not-so-common metrics and introduces Evidence Based Management as a guide for continuously measuring your business goals, aligning them with your software development efforts, and then deciding what to do next.
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Agile Metrics, Value, and Softwre
- 1. Agile Metrics, Value, and Software Don McGreal don.mcgreal@improving.com @donmcgreal linkedin.com/in/donmcgreal
- 2. Agenda: Agile Metrics, Value, and Software 1. Types of Metrics 2. Problems with Metrics 3. Metrics in Software Development 4. Gathering & Applying Metrics 5. Questions
- 3. How do you measure progress on your software projects? How about value?
- 4. What is Value? val·ue noun the regard that something is held to deserve; the importance, worth, or usefulness of something. For companies, it is always presented in money terms. Profit derived from the use of a product or service
- 5. Delivery Metrics Pizzas Delivered per Trip Time taking an order Time for Delivery Miles per Delivery Fuel Used Order Accuracy (Quality) Route Efficiency Orders per Driver Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee Satisfaction Growth Market Drivers & Trends Market Share Circumstantial Direct
- 6. Delivery Metrics Velocity Number of Tests Code Coverage Defects Coupling Cohesion Code Complexity Build Failures Process Adherence Owner Metrics Revenue Per Release Per Employee Investments/Costs Customer Satisfaction Employee Satisfaction Lead & Cycle Time Innovation Rate Customer Usage Circumstantial Direct
- 7. The Only Real Direct Evidence Metric
- 10. 1. Efficiency Using circumstantial metrics as your main guide can lead to more overhead and waste.
- 11. 2. Vision Are we aligned?
- 12. 2. Vision Using circumstantial metrics as your main guide can misalign the business and the delivery organizations.
- 13. 3. Incentive Suboptimal Metrics Source: Robert D. Austin, Measuring and Managing Performance in Organizations Performance Time measurement indicators true performance
- 14. 3. Incentive Once a measure of performance is made a target or incentive for the purpose of driving behavior, it loses the information content that qualifies it to play such a role. This is even more true of circumstantial metrics. Source: Robert D. Austin, Measuring and Managing Performance in Organizations
- 15. Who? Delivery Metrics Pizzas Delivered per Trip Time taking an order Time for Delivery Miles per Delivery Fuel Used Order Accuracy (Quality) Route Efficiency Orders per Driver Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee Satisfaction Growth Market Drivers & Trends Market Share Circumstantial Direct ??
- 16. Who? Delivery Metrics Velocity Number of Tests Code Coverage Defects Coupling Cohesion Code Complexity Build Failures Process Adherence Owner Metrics Revenue Per Release Per Employee Investments/Costs Customer Satisfaction Employee Satisfaction Lead & Cycle Time Innovation Rate Customer Usage Circumstantial Direct ??
- 18. Evidence Based Medicine 1. Frame a proper, pertinent, focused, and answerable question 1. Systematically assemble best available evidence 2. Clinically appraise evidence for validity and usefulness 3. Apply results in practice of the art 4. Evaluate performance
- 20. Evidence Based Management Current Value Ability to InnovateTime to Market Release Frequency Release Stabilization Cycle Time Installed Version Index Usage Index Innovation Rate Defects Revenue per Employee Employee Satisfaction Customer Satisfaction Product Cost Ratio
- 21. Evidence Based Management Direct Evidence Circumstantial Evidence Improve Diagnose
- 22. 1. Establish Urgency 2. Create Guiding Coalition 3. Develop Change Vision 4. Communicate Vision for Buy-in 5. Empower Broad-based Action 6. Generate Short-term Wins 7. Never Let Up 8. Incorporate Change into Culture Leading REAL Change
- 23. 1.Metrics Baseline Review 2.Practices Baseline Review 3.Plan a Sprint from the Practices Backlog 4.Change Team(s) implement practices 5.Sprint Practices Review 6.Periodic* Metrics Review How EBM is Applied
- 24. Tracking Metrics
- 25. Tracking Metrics
- 28. Wildly Important Goal 1. Focusing on the Wildly Important Goal 2. Acting on Lead Measures 3. Keeping a Compelling Scoreboard 4. Creating a Cadence of Accountability
- 30. Value
- 31. Lead Indicators
- 34. Custom (e.g. Sales, Process Time, Support Calls, Users, etc.)
- 35. So… Agility isn’t just for IT. Agility can provide the business with a true competitive advantage. The right measurements are essential for this. They can improve communication, productivity, business alignment... and they can help guide your agile adoption effort.
Hinweis der Redaktion
- These will give you a great start
- 29% is the cross-industry average across products and systems, roughly the same for SMB and Enterprise. Build new = new IT initiatives and projects Maintain = ongoing operations and maintenance Expand = expansion of capacity to support business growth
- Purpose: Demonstrate information neutrality Take-away: What is good depends on where you are in the Product Development Life Cycle. Discussion Ask what might lead to a 3% build new ratio
- With products I manage, I value when someone can look at what we’ve done and say, “Ah, that is a great idea. I want to use that!” We talked about cohesion in organizing the Product Backlog. Cohesion is the antidote for Peanut Butter investments. An internal document by Brad Garlinghouse, a Yahoo senior vice president, says Yahoo is spreading its resources too thinly, like peanut butter on a slice of bread.
- The loudest and perhaps riskiest projects trump strategic ones, and Enterprise projects trump business-unit ones. On this daily basis, staffers give priority to projects based on perceived level of urgency, with urgency being determined by the level of risk, complexity, or relative strength of the project sponsor. Therefore, the low-risk, strategically relevant projects are, ironically, viewed as less urgent and given a lower priority in the project portfolio than projects with the same or less strategic relevance but higher risk. (Forrester: July 2008 “Who's On First — A Simple Model For Project Prioritization”)
- The loudest and perhaps riskiest projects trump strategic ones, and Enterprise projects trump business-unit ones. On this daily basis, staffers give priority to projects based on perceived level of urgency, with urgency being determined by the level of risk, complexity, or relative strength of the project sponsor. Therefore, the low-risk, strategically relevant projects are, ironically, viewed as less urgent and given a lower priority in the project portfolio than projects with the same or less strategic relevance but higher risk. (Forrester: July 2008 “Who's On First — A Simple Model For Project Prioritization”)
- Teams will deliver valuable software if you give them the tools and time to do so. Help your team make the most of the time it has to work during the Sprint Minimize unnecessary disruptions Make necessary disruptions efficient
- Most companies have metrics along these lines. Product Owners need to be keenly aware of these numbers.
- Know this for Products Areas of products For one product, might 90% of the value be in 10% of the features? Example: Microsoft Word It costs us money to maintain things people don’t use. This is inventory with little value, and therefore waste.
- Purpose: Discuss the problems associated with supporting multiple releases, and some possible remediation and prevention. Take-away: Maintaining more than one release can be expensive, but may have benefits. Discussion - Expensive to maintain multiple versions - Harder for customers to upgrade over multiple releases (training, testing, hardware upgrades, etc.) How to mitigate this: Ease the upgrade process Do it more often and it will get easier, because we will optimize to quick releases Stop delivering new versions What does this say about SaaS as opposed to installed software?
- Purpose: Drive discussion about how to interpret this graph. Take-away: Having everyone on the same version isn’t necessarily a good thing. Discussion Perhaps the versions offer slightly different things? Upgrading everyone might alienate a large chunk of customers? Is that necessarily a bad thing? Maybe we should understand our innovation rate for each version before making that decision? Maybe some of the later versions could be different products focusing on different customer segments?
- Here is the interesting thing about the efficiency of value delivery in software projects. It isn’t efficient. Take-away: Starting at IT funding, only $0.03/dollar are actually used. If one starts at a funded project, potentially only 3% of it is actually used to create value. Remember the old saying, “Humans only use 10% of their brains?” -> That saying is a myth, by the way These numbers may not exactly apply to your situation; it is the exercise that is important. What if your usage index was 70%? 90%? Innovation Rate – 29% cross-industry average (Forrester: October 2010 “2011 IT Budget Planning Guide For CIOs”) Strategic Alignment Index - The loudest and perhaps riskiest projects trump strategic ones, and Enterprise projects trump business-unit ones. On this daily basis, staffers give priority to projects based on perceived level of urgency, with urgency being determined by the level of risk, complexity, or relative strength of the project sponsor. Therefore, the low-risk, strategically relevant projects are, ironically, viewed as less urgent and given a lower priority in the project portfolio than projects with the same or less strategic relevance but higher risk. (Forrester: July 2008 “Who's On First — A Simple Model For Project Prioritization”) On-Product Index – Paying a team to build a feature or product doesn’t mean anything if they get pulled off for things like production bugs. Product Availability – Simply put: If users can’t access the system, they can’t create value with it. Usage Index – 65% of delivered functionality is rarely or never used. (Source: ADM) Installed Version Index – The cost to maintain a product grows rapidly with each additional version that must be maintained and supported. Also, the cost of upgrading (time, training, money, risk, etc.) increases the further away from current versions a user happens to be. Imagine how difficult it would be for a user to upgrade from Windows 3.1 to Windows 2010. Knowing how many versions are in production, and the usage of each, can help indicate where problems might already be happening, or where they might happen in the future. Should your company start building a Cobol-based application for the oil and gas industry? Maybe, but it introduces a lot of additional costs if you don’t already have the infrastructure. This measures the network effect of a product family. This measurement is why Scott Forstall, Apple’s Senior VP of iPhone Software, is unifying the company’s software. (Source: http://www.nytimes.com/2011/01/18/technology/18cook.html?scp=10&sq=apple&st=cse)
- Innovation Rate - Support your Team in creating great products, with no defects, that people actually use. The lower the cost of supporting, the more $$$ for new features your customers need. Strategic Alignment Index – build things that support the mission of the company. Prefer things you have the capability to build/support. On-product Index – Allowing teams to get side-tracked with production bugs or other disruptions. Being a disruption yourself. Product Availability - Does your product require a Sun E15K with 84 processors to run? Does it have to? What about running on the cloud? Don’t build fragile products, and don’t allow good products to run of fragile infrastructure. Usage Index - Only deliver software people want and will actually use. Remove what isn’t used. Don’t strive to maximize usage of people. Installed Version Index – Make upgrades no-brainers for customers. Easy and valuable.
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