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Agile Metrics:
    Velocity
      is Not the
        Goal.
Michael “Doc” Norton ◊ @DocOnDev ◊ doc@leandog.com
What’s “Agile” Velocity?
Work units delivered over time
Trailing Indicator
Tells us about the health of the project
Planning By
   Velocity
30
                                                       30
                        29
         28        28                   28        28
              27                                            27
24 25
                                             24


18


12


 6


 0
     1   2    3    4    5               6    7    8    9    10
                             Velocity




Velocity Graph
30
                                                          30
                              29
          28            28         28                28
               27                                              27
24   25
                                        24


18


12


6


     30   25   28       27    28   29   28           24   28   30
0
     1    2    3         4    5    6    7            8    9    10
                    Weather                 Actual




Yesterday s Weather
Ideal                       Actual            Estimate

  500



  375



  250



  125



    0
        1   2    3      4   5   6   7   8    9 10 11 12 13 14 15 16 17 18 19 20

Burn Down
30
                                                                               30
                                        29
              28                28                 28               28
                        27                                                             27
24    25
                                                            24


18


12


6


     30 30   25 25     28 27   27 27   28 28     29 28     28 28   24 26      28 27   30 27
0
      1       2          3      4       5              6    7       8          9       10
                     Weather                 Rolling                 Actual




Rolling Average
Ideal                       Actual            Estimate

  500



  375



  250



  125



    0
        1   2    3      4   5   6   7   8    9 10 11 12 13 14 15 16 17 18 19 20

Burn Down
Do you feel
  Confident?
Standard
 Deviation
Standard Deviation Basics
?
Standard Deviation Basics
Calculate the mean (average) of the population

Compute the difference of each data point from
the mean, and square the result of each

Compute the average of these values, and take
the square root

 Standard Deviation Basics
30
                                                          30
                           29
           28         28                   28        28
                27                                             27
24 25
                                                24


18

         (25+28+27+28+29+28+24+28+30+27)/10 = 27.4
12


 6


 0
     1      2    3    4    5               6    7    8    9    10
                                Velocity




Calculate the mean
30
                                                                        30
                                     29
           28             28                         28         28
                  27                                                             27
24 25
                                                          24

         (25+28+27+28+29+28+24+28+30+27)/10 = 27.4
18
   (25-27.4)**2 = (-2.4)**2 = 5.76            (28-27.4)**2 = (0.6)**2 = 0.36
   (28-27.4)**2 = (0.6)**2 = 0.36             (24-27.4)**2 = (-3.4)**2 = 11.56
12
   (27-27.4)**2 = (-0.4)**2 = 0.16            (28-27.4)**2 = (0.6)**2 = 0.36
   (28-27.4)**2 = (0.6)**2 = 0.36             (30-27.4)**2 = (2.6)**2 = 6.76
   (29-27.4)**2 = (1.6)**2 = 2.56             (27-27.4)**2 = (-0.4)**2 = 0.16
 6


 0
     1      2     3       4          5               6    7     8       9        10
                                          Velocity




Take differences and square
30
                                                                        30
                                     29
           28             28                         28         28
                  27                                                             27
24 25
                                                          24

         (25+28+27+28+29+28+24+28+30+27)/10 = 27.4
18
   (25-27.4)**2 = (-2.4)**2 = 5.76            (28-27.4)**2 = (0.6)**2 = 0.36
   (28-27.4)**2 = (0.6)**2 = 0.36             (24-27.4)**2 = (-3.4)**2 = 11.56
12 (27-27.4)**2 = (-0.4)**2 = 0.16            (28-27.4)**2 = (0.6)**2 = 0.36
   (28-27.4)**2 = (0.6)**2 = 0.36             (30-27.4)**2 = (2.6)**2 = 6.76
   (29-27.4)**2 = (1.6)**2 = 2.56             (27-27.4)**2 = (-0.4)**2 = 0.16
 6

                       (2.84)**1/2 =            1.685
 0
     1      2     3       4          5               6    7     8       9        10
                                          Velocity




Square root of difference avg.
30
                                                       30
                        29
         28        28                   28        28
              27                                            27
24 25
                                             24




                   1.685
18


12


 6


 0
     1   2    3    4    5               6    7    8    9    10
                             Velocity




Standard Deviation
Ideal            Actual           Estimate      High        Low

   500



   375



   250



   125



     0
          1   2   3   4    5   6   7   8   9 10 11 12 13 14 15 16 17 18 19 20

Burn Down :: 1SD
Ideal     Actual      Estimate      High       Low

   500



   375



   250



   125



     0
          1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

Burn Down :: 2SD
Set: 10,11,9,10          Set: 10,14,9,7
Mean: 10                 Mean: 10
Rolling: 10              Rolling: 10
Deviation: 0.7           Deviation: 2.5
Velocity: 9.3-10.7       Velocity: 7.5-12.5

 Standard Deviation
 Same Mean, Same Rolling, Different Deviation
6, 11, 12, 10, 8, 7
Calculate the mean (average) of the population

Compute the difference of each data point from
the mean, and square the result of each

Compute the average of these values, and take
the square root

 Now you do it
 Calculate Standard Deviation & Predict Velocity
“You can’t manage
  what you can’t
    measure”
Says Who?
You can’t
  manage what
   you can’t
   measure.




Dr. W. Edwards Deming
Father of the Quality Evolution
T
   Don’t be
  ridiculous!
                                     N   O
         in                       ly
    rt a
C e
Dr. W. Edwards Deming
Father of the Quality Evolution
Running a company
 on visible figures
       alone
[is deadly]



Dr. W. Edwards Deming
 Father of the Quality Evolution
Seven Deadly Diseases
         of
Western Management
Lack of constancy of purpose
Emphasis on short term profits
Evaluation of performance, merit rating, or annual review
Mobility of top management
Running a company on visible figures alone
Excessive medical costs
Excessive legal damage awards
The Hawthorn Effect
That which is measured, will improve
What matters is
       not setting
quantitative goals but
 fixing the method by
which those goals are
        attained




 Repair the root cause
 Rather than the symptoms
Unstable Velocity
What does it mean?
Poor Story Composition
You want consistent (small) stories
Too Much WIP
Get the highest value done first
Dependency on Other Teams
Get everyone you need on the team
Stable Velocity
It won’t ever be perfect
Increase Velocity
Do we always want to go faster?
Goodhart’s Law
Making a metric a target destroys the metric
What matters is
       not setting
quantitative goals but
 fixing the method by
which those goals are
        attained




 Repair the root cause
 Rather than the symptoms
Scatter
Diagram
20000



15000



10000



 5000



    0
        0     2        4         6        8



Scatter Diagrams
Shows Correlation Between Two Variables
50



37.5



 25



12.5



  0
       0   25   50   75   100



Velocity and Complexity
Negative Correlation
50



37.5



 25



12.5



  0
       0   10000   20000   30000   40000



Velocity and Value
No Correlation
50



37.5



 25



12.5



  0
       0   22.5   45   67.5   90



Velocity and Test Coverage
Positive Correlation
Cumulative
   Flow
Sample Backlog
Cumulative Flow
Velocity doesn’t always tell us enough
20



15



10



 5



 0
      1      2     3         4   5              6   7   8   9   10
                                     Velocity




Velocity Graph
What story does this tell?
20



15



10



 5



 0
      1      2     3         4   5              6   7   8   9   10
                                     Velocity




Velocity Graph
What story does this tell?
100



 75



 50



 25



  0
      1        2     3          4         5                6      7          8           9        10
          Deployed   Ready for Approval       In Testing       In Progress       Ready To Start




Cumulative Flow
What story does this tell?
What
Else?
16


       12


        8


        4


        0
            1   2   3   4   5   6   7   8   9 10 11 12 13 14 15

                                        Velocity




Balanced Metrics
Watch more than one
16                                                             50


       12                                                            37.5


        8                                                             25


        4                                                            12.5


        0                                                              0
            1   2   3   4   5   6      7   8   9 10 11 12 13 14 15

                            Velocity                  Quality




Balanced Metrics
Watch more than one
16                                          50


       12                                         37.5


        8                                          25


        4                                         12.5


        0                                              0
            1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

             Velocity       Quality       Avg. Hours




Balanced Metrics
Watch more than one
16                                              50


       12                                            37.5


        8                                              25


        4                                            12.5


        0                                               0
              1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

            Velocity   Quality     Avg. Hours       Team Joy




Balanced Metrics
Watch more than one
Thank You

Michael “Doc” Norton ◊ @DocOnDev ◊ doc@leandog.com

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Velocity is NOT the Goal - PNSQC

  • 1. Agile Metrics: Velocity is Not the Goal. Michael “Doc” Norton ◊ @DocOnDev ◊ doc@leandog.com
  • 2. What’s “Agile” Velocity? Work units delivered over time
  • 3. Trailing Indicator Tells us about the health of the project
  • 4. Planning By Velocity
  • 5. 30 30 29 28 28 28 28 27 27 24 25 24 18 12 6 0 1 2 3 4 5 6 7 8 9 10 Velocity Velocity Graph
  • 6. 30 30 29 28 28 28 28 27 27 24 25 24 18 12 6 30 25 28 27 28 29 28 24 28 30 0 1 2 3 4 5 6 7 8 9 10 Weather Actual Yesterday s Weather
  • 7. Ideal Actual Estimate 500 375 250 125 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Burn Down
  • 8. 30 30 29 28 28 28 28 27 27 24 25 24 18 12 6 30 30 25 25 28 27 27 27 28 28 29 28 28 28 24 26 28 27 30 27 0 1 2 3 4 5 6 7 8 9 10 Weather Rolling Actual Rolling Average
  • 9. Ideal Actual Estimate 500 375 250 125 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Burn Down
  • 10. Do you feel Confident?
  • 13. ?
  • 15. Calculate the mean (average) of the population Compute the difference of each data point from the mean, and square the result of each Compute the average of these values, and take the square root Standard Deviation Basics
  • 16. 30 30 29 28 28 28 28 27 27 24 25 24 18 (25+28+27+28+29+28+24+28+30+27)/10 = 27.4 12 6 0 1 2 3 4 5 6 7 8 9 10 Velocity Calculate the mean
  • 17. 30 30 29 28 28 28 28 27 27 24 25 24 (25+28+27+28+29+28+24+28+30+27)/10 = 27.4 18 (25-27.4)**2 = (-2.4)**2 = 5.76 (28-27.4)**2 = (0.6)**2 = 0.36 (28-27.4)**2 = (0.6)**2 = 0.36 (24-27.4)**2 = (-3.4)**2 = 11.56 12 (27-27.4)**2 = (-0.4)**2 = 0.16 (28-27.4)**2 = (0.6)**2 = 0.36 (28-27.4)**2 = (0.6)**2 = 0.36 (30-27.4)**2 = (2.6)**2 = 6.76 (29-27.4)**2 = (1.6)**2 = 2.56 (27-27.4)**2 = (-0.4)**2 = 0.16 6 0 1 2 3 4 5 6 7 8 9 10 Velocity Take differences and square
  • 18. 30 30 29 28 28 28 28 27 27 24 25 24 (25+28+27+28+29+28+24+28+30+27)/10 = 27.4 18 (25-27.4)**2 = (-2.4)**2 = 5.76 (28-27.4)**2 = (0.6)**2 = 0.36 (28-27.4)**2 = (0.6)**2 = 0.36 (24-27.4)**2 = (-3.4)**2 = 11.56 12 (27-27.4)**2 = (-0.4)**2 = 0.16 (28-27.4)**2 = (0.6)**2 = 0.36 (28-27.4)**2 = (0.6)**2 = 0.36 (30-27.4)**2 = (2.6)**2 = 6.76 (29-27.4)**2 = (1.6)**2 = 2.56 (27-27.4)**2 = (-0.4)**2 = 0.16 6 (2.84)**1/2 = 1.685 0 1 2 3 4 5 6 7 8 9 10 Velocity Square root of difference avg.
  • 19. 30 30 29 28 28 28 28 27 27 24 25 24 1.685 18 12 6 0 1 2 3 4 5 6 7 8 9 10 Velocity Standard Deviation
  • 20. Ideal Actual Estimate High Low 500 375 250 125 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Burn Down :: 1SD
  • 21. Ideal Actual Estimate High Low 500 375 250 125 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Burn Down :: 2SD
  • 22. Set: 10,11,9,10 Set: 10,14,9,7 Mean: 10 Mean: 10 Rolling: 10 Rolling: 10 Deviation: 0.7 Deviation: 2.5 Velocity: 9.3-10.7 Velocity: 7.5-12.5 Standard Deviation Same Mean, Same Rolling, Different Deviation
  • 23. 6, 11, 12, 10, 8, 7 Calculate the mean (average) of the population Compute the difference of each data point from the mean, and square the result of each Compute the average of these values, and take the square root Now you do it Calculate Standard Deviation & Predict Velocity
  • 24. “You can’t manage what you can’t measure”
  • 26. You can’t manage what you can’t measure. Dr. W. Edwards Deming Father of the Quality Evolution
  • 27. T Don’t be ridiculous! N O in ly rt a C e Dr. W. Edwards Deming Father of the Quality Evolution
  • 28. Running a company on visible figures alone [is deadly] Dr. W. Edwards Deming Father of the Quality Evolution
  • 29. Seven Deadly Diseases of Western Management Lack of constancy of purpose Emphasis on short term profits Evaluation of performance, merit rating, or annual review Mobility of top management Running a company on visible figures alone Excessive medical costs Excessive legal damage awards
  • 30. The Hawthorn Effect That which is measured, will improve
  • 31. What matters is not setting quantitative goals but fixing the method by which those goals are attained Repair the root cause Rather than the symptoms
  • 33. Poor Story Composition You want consistent (small) stories
  • 34. Too Much WIP Get the highest value done first
  • 35. Dependency on Other Teams Get everyone you need on the team
  • 36. Stable Velocity It won’t ever be perfect
  • 37. Increase Velocity Do we always want to go faster?
  • 38. Goodhart’s Law Making a metric a target destroys the metric
  • 39. What matters is not setting quantitative goals but fixing the method by which those goals are attained Repair the root cause Rather than the symptoms
  • 41. 20000 15000 10000 5000 0 0 2 4 6 8 Scatter Diagrams Shows Correlation Between Two Variables
  • 42. 50 37.5 25 12.5 0 0 25 50 75 100 Velocity and Complexity Negative Correlation
  • 43. 50 37.5 25 12.5 0 0 10000 20000 30000 40000 Velocity and Value No Correlation
  • 44. 50 37.5 25 12.5 0 0 22.5 45 67.5 90 Velocity and Test Coverage Positive Correlation
  • 45. Cumulative Flow
  • 47. Cumulative Flow Velocity doesn’t always tell us enough
  • 48.
  • 49. 20 15 10 5 0 1 2 3 4 5 6 7 8 9 10 Velocity Velocity Graph What story does this tell?
  • 50. 20 15 10 5 0 1 2 3 4 5 6 7 8 9 10 Velocity Velocity Graph What story does this tell?
  • 51. 100 75 50 25 0 1 2 3 4 5 6 7 8 9 10 Deployed Ready for Approval In Testing In Progress Ready To Start Cumulative Flow What story does this tell?
  • 53. 16 12 8 4 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Velocity Balanced Metrics Watch more than one
  • 54. 16 50 12 37.5 8 25 4 12.5 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Velocity Quality Balanced Metrics Watch more than one
  • 55. 16 50 12 37.5 8 25 4 12.5 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Velocity Quality Avg. Hours Balanced Metrics Watch more than one
  • 56. 16 50 12 37.5 8 25 4 12.5 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Velocity Quality Avg. Hours Team Joy Balanced Metrics Watch more than one
  • 57. Thank You Michael “Doc” Norton ◊ @DocOnDev ◊ doc@leandog.com