2. Software Development Teams:Secrets to Achieving Unprecedented Rates of Growth and Innovation Jeffrey Hammond, Principal Analyst May 3rd, 2011

3. Your development teams are an untapped source of innovation that you must unlock! Source: Flickr (http://www.flickr.com/photos/keoki/1418303458/sizes/o/) 3 Entire contents © 2010 Forrester Research, Inc. All rights reserved.

4. How would you describe the act of developing software? Algorithmic? Source: Flickr (http://www.flickr.com/photos/keoki/1418303458/sizes/o/) 4 Entire contents © 2010 Forrester Research, Inc. All rights reserved.

5. How would you describe the act of developing software? Or heuristic? Source: Flickr (http://www.flickr.com/photos/passer-by/1122901114/sizes/o/) 5 Entire contents © 2010 Forrester Research, Inc. All rights reserved.

6. Three steps to a high performance team Get (and keep) the right players Create conditions for them to thrive and team Manage with lean techniques and selective measures

7. Finding stars . . . why does it matter? Source: Flickr(ttp://www.flickr.com/photos/clarism_4/3079019223/ 7 Entire contents © 2010 Forrester Research, Inc. All rights reserved.

8. “Stars” are simply more productive . . . Numerous studies show a 10-time difference in productivity and quality among software developers and teams. A tale of two developers . . . Jim Drew

10. Gets involved in side projects

11. Self invests in learning new skills

12. Does development (It’s a job)

13. Works 9-5, overtime if rewarded

15. Self-motivated

16. Expected rewards

18. Pay mortgage.

19. Send kids to college.Source: Adapted from Daniel H. Pink, Drive: The Surprising Truth About What Motivates Us, Riverhead Hardcover, 2009

20. Three steps to a high performance team Get (and keep) the right players. Create conditions for them to thrive and team. Manage with lean techniques and selective measures

21. Creating a climate that attracts “stars” Three cultural elements that create space for (and attract) intrinsically motivated development team members: Autonomy Mastery Purpose Source: Daniel H. Pink, Drive: The Surprising Truth About What Motivates Us, Riverhead Hardcover, 2009

22. Autonomy! Are you kidding? What about compliance? What about governance? “We need to put fences around development teams to ensure they don’t wander off the path we want them to take . . .” — Executive at a dev. tools ISV Source: Flickr (http://www.flickr.com/photos/pyxopotamus/3362291478/sizes/o/) 12 Entire contents © 2010 Forrester Research, Inc. All rights reserved.

24. Limited stage gates

25. Quality metrics

26. Engagement

27. On-time delivery

28. Customer centricity

29. Rapid recoveryBuild a: Results-OrientedWorkEnvironment Source: Flickr (http://www.flickr.com/photos/pyxopotamus/3362291478/sizes/o/) 13 Entire contents © 2010 Forrester Research, Inc. All rights reserved.

30. Mastery takes practice and perseverance Covet engagement. Set a10k plan. Focus on your 12. Build a “flow friendly” development shop. Source: Daniel H. Pink, Drive: The Surprising Truth About What Motivates Us, Riverhead Hardcover, 2009 and Malcolm Gladwell, Outliers: The Story of Success, Little, Brown, and Company, 2008. 14 Entire contents © 2010 Forrester Research, Inc. All rights reserved.

31. Purpose: prerequisite for self-actualization “We’re on a mission from God.” “We’re not evil.” “OTTWD” “We want to put a dent in the universe!” “Let’s build a smarter planet” Do you have: Transparency? Shared goals? Simple policies? Source: Flickr (http://www.flickr.com/photos/65538421@N00/1377536488/sizes/o/) 15 Entire contents © 2010 Forrester Research, Inc. All rights reserved.

32. Three steps to a high performance team Get (and keep) the right players. Create conditions for them to thrive and team. Manage with lean techniques and selective measures

33. Lean software is not really about this . . . . . . it’s about getting teams “in the zone” — and keeping them there. Source: Flickr (http://www.flickr.com/photos/mikkime/3516613640/sizes/l/) 17 Entire contents © 2010 Forrester Research, Inc. All rights reserved.

34. Wastes that impede flow Manufacturing sources of waste: App dev. equivalents: Overproduction Waiting (time on hand) Unnecessary transport or conveyance Overprocessing or incorrect processing Excess inventory Unnecessary movement Defects Unused employee creativity Too many superfluous artifacts Broken builds Too many tool transitions Rigid architectures Analysis paralysis Late discovery of defects Rising downstream labor costs Polluted supply chain management (SCM) streams High null-release ratios

35. Key ALM processes that improve “flow” Portfolio management Production planning closed loop Project management JIT Demand Management Build and software configuration management Deployment Release management Change management Service management Testing and quality assurance Change aware continuous integration Change aware configuration management Release management closed loop Production control closed loop

36. Measures that matter for the end result

37. Forrester case studies on high performance teams Atlassian Ultimate Software Sabre Holdings CI&T Netflix Funambol For more, see: www.forrester.com/masstlc

39. Explore the suggested bibliography.

40. Ask your performers about “out-of-job innovations.”

41. Run a “flow analysis” with your development teams.

42. Create an “engagement plan” to spur intrinsic motivation.Source: Flickr (http://www.flickr.com/photos/werkunz/3599761533/sizes/l/) 22 Entire contents © 2010 Forrester Research, Inc. All rights reserved.

44. Begin to implement specific best practices (360-degree reviews, innovation time, OSS, Agile development).

45. Start attacking waste that “slows flow.”

46. Implement “unexpected” rewards system.

47. Adjust measures to focus on building a ROWE.

48. Start managing like a pro sports team.Source: Flickr (http://www.flickr.com/photos/werkunz/3599761533/sizes/l/) 23 Entire contents © 2010 Forrester Research, Inc. All rights reserved.

49. Thank you Jeffrey Hammond +1 617.613.6164 jhammond@forrest.com Twitter: jhammond www.forrester.com

50. Selected Forrester research November 3,2010, “Best Practice: Building High-Performance Application Development Teams” April 8, 2011, “Case Study: Sabre – A Culture Of Engagement” March 7, 2011, “CI&T – High Performance, Brazilian Style” January 14, 2011, “Atlassian Creates An Innovation Culture That Produces Results” November 3,2010, “Ultiamate Software Reinvents Its Development Shop To Stay On Its Game” November 2, 2010, “Software Development Archetypes – What’s Your Sign?”

51. Selected bibliography Netflix: Reference Guide on our Freedom & Responsibility Culture (http://www.slideshare.net/reed2001/culture-1798664) Daniel H. Pink, Drive: The Surprising Truth About What Motivates Us, Riverhead Books, 2009 Malcolm Gladwell, Outliers: The Story of Success, Little, Brown & Co., 2008 10X Software Development (http://forums.construx.com/blogs/stevemcc/default.aspx)