Measuring the Success of your Agile Transformation

Measuring the Success of Your
Agile Transformation
Part 1
June 19, 2014
#AgileLIVE

© 2014 VersionOne, Inc. 2
A few logistics…
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Moderator
#AgileLIVE
Aaron Smith
Editorial Director
ProjectsAtWork

www.agile42.com | All rights reserved. Copyright © 2007 - 2014.agile42 | The Agile Coaching Company
Brad Swanson
Senior Agile Coach
@agile42
brad.swanson@agile42.com
@bradswanson

The
Enterprise
Transition
Framework™
(ETF) for
empirical
change
1. Assess
2. Strategy
3. Pilot
4. Rollout
http://www.agile42.com/en/agile-transition/etf/

Goal
PSF
NC
Agile Strategy
Map™
Define the Goal we
want to achieve
Possible Success Factor
(PSF) represents a
hypothesis about a key
factor that would enable us
to achieve the Goal
Necessary Condition
(NC): what is needed in
order to fulfill the Success
Factor
http://www.agile42.com/en/agile-transition/agile-strategy-map/
Agile Strategy Map™ - Framework for Strategy

Goal
Agile Strategy
Map™
PSF#1
PSF#1: we believe that by
consolidating all projects in
one Portfolio, we will be able
to make better business
decisions
NC#1.
1
NC#1.2
NC#1.1
.1
To validate the hypothesis, we define
what is needed to run a pilot which will
measure the validity of the PSF
NC#1.1: we need to list at least 3
projects per product area
NC#1.1.1: we need to choose
projects and define comparable
dimensions such as: business
value, strategic alignment, cost...
NC#1.2: we need to define a
sample Portfolio funnel, and check
that Teams can deliver with the
provided information
What conditions are necessary to achieve the
success factor (PSF)?

Success:
we can compare the value of
projects easily (using defined
KPIs) and make consistent
business decisions.
Failure:
we still have endless
discussions about priority
and it’s costly to prepare
project info for the portfolio
processIndicators (measures):
•< 1 day to prepare 1 project business case
•Allows objective comparison of projects
•< 8 hrs to select priorities each quarter
•No ‘exec overrides’ on priority decisions
How will we measure PSF success and failure?
PSF#1: we believe that by consolidating all projects in
one Portfolio, we will be able to make better business
decisions

Goal
CSF#1
NC#1.1
NC#1.2
Agile Strategy
Map™
CSF#1: we must
consolidate all projects in
one Portfolio, so that will be
able to make better
business decisions
NC#1.1
.1
The Pilot was successful...
The Potential Success Factor
becomes a Critical Success
Factor (CSF). Update the
strategy to roll out and
institutionalize the change.
Pilot success! Now what?

Sustainably faster
delivery of
solutions that
delight
customers
Faster time
to market
Alignment & support
across the org
Engaged & joyful
people
Transparent
empirical view
of org
performance
Grow and sustain
agile practices
Culture of
continuous
learning &
improvement
Org priorities
aligned with
Customer valu
e
Agile Transformation
Example Goal + Success Factors (PSFs / CSFs)

Sustainably faster
delivery of solutions that
delight customers
Faster time to
market
Balance workload &
capacity: limit WIP
Alignment &
support across
the org
Engaged & joyful
people
Transparent
empirical view of org
performance
Grow and
sustain agile
practices
Culture of
continuous learning
& improvement
Org priorities
aligned with
customer value
Dedicated
Guiding Coaltiion
Pilot projects
Clearly
communicated
vision & strategy
Training & coaching Build
internal
expertise
Collaborative
prioritization
with stakeholders
Collaborative
cross-functional
teams Automated
testing &
deploymentIncremental
delivery
Visible metrics
Leaders to
remove fear
Empowerment
Clear,
realistic goals
Servant
leadership
Action taken
to improve
Foster
innovation
Celebrate
failed
experiments
Example: Necessary Conditions for the PSFs
Clear
career path
Goal
Success factors
Necessary conditions
Legend:

A few metrics (KPIs) for the goal
Sustainably faster delivery of solutions that delight customers
These are lagging indicators; some leading indicators are described soon…

Leading & lagging indicators for each PSF / CSF
PSF Leading Indicators Lagging Indicators
• # total concurrent projects
• Avg # concurrent
projects/person
• Program burn-up chart
• Lead time: idea to 1st delivery
• Cycle time: Dev start to 1st
delivery
• Deployment frequency post 1st
delivery (MVP/V1)
• Frequency & effectiveness of
stakeholder collaboration on
prioritization
• Standard way to compare
project value
• Portfolio priorities highly visible
• All teams working on top portfolio
priorities; no ‘side projects’
• Delivered value is measured and
meets expectations
• Customer satisfaction survey
• Sales and/or usage statistics
1. Faster
time to
market
2. Org
priorities
aligned
with
customer
value

CSF 1: Time to Market
Lead time: from request to 1st deplo
y
Cycle time: dev start to 1st deploy

CSF 1: Time to Market – leading indicator

agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2014.
PSF 2: Org priorities aligned with customer value
–
leading indicators
Churn =
% change after
commit point

Compare
actuals
with
forecast
PSF 2: Org priorities aligned with customer value
–
lagging indicators

Leading & lagging indicators for each PSF
• Sr. Leadership consensus on
strategy
• Frequency of comms on vision
& strategy; # of different forums
• Short-term wins visibly
celebrated
• # hours spent on Guiding
Coalition activities
• Poll: % who agree with strategy
• Poll: % prefer new to old
approach
• # of teams asking to ‘go agile’
• # people trained on Agile
• # people in coached projects
• # people in the ‘coach the
coach’ program
• Agile team practices maturity
level
• # people completing ‘coach the
coach’
• # people achieving 3rd party Agile
certifications
• Monthly attendance in Agile
Community of Practice (CoP)
mtgs
4.
Grow &
sustain
agile
practices
3.
Alignment
& support
across the
org

PSF 3: Alignment & support

PSF 4: Grow & sustain agile practices

Leading & lagging indicators for each PSF
*Success ratio over 70% may indicate fear of failure
• Poll: things getting better or
worse?
• Career path defined for all roles
• Poll: employee job satisfaction
• Attrition rate
• # employee referrals for hiring
• Avg frequency of team
retrospectives
• # of experimental learnings
celebrated (fast safe failures)
• Poll: Do you feel safe to
experiment & innovate?
• # team-initiated process changes
• # team-initiated product
innovations
• Success ratio of experiments*
5.
Engaged
& joyful
people
6. Culture
of
continuou
s
learning &
Improve-
ment

www.agile42.com | All rights reserved. Copyright © 2007 - 2014.
agile42 - The Agile Coaching Company
agile42 | The Agile Coaching Company
Measuring Team Progress on
Agile Practices

Agile Practices Roadmap – Team Level

Agile Practices Roadmap – Team Level (p.2)

Team Practices Dashboard

Team Practices Dashboard
Highest level achieved across all four dimension
s

Attack of the
Killer Metrics!
When metrics
go bad…

Questions to ask about every metric
1. What decisions will be made based on this metric?
2. Is this the RIGHT thing to measure or an easy-to-
measure proxy?
3. What might be the unintended consequences of this
metric?
4. How could this metric be ‘gamed’?
5. What can we do to guard against unintended
consequences and ‘gaming’?

Compensating / Balancing Metrics
• What unintended consequences might happen if
you measure speed of delivery?
• What is a compensating metric to counteract it?
• Measure speed AND quality!

Management vs. Team Metrics
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Thank you!
Brad Swanson
Senior Agile Coach
@agile42
brad.swanson@agile42.com
@bradswanson

Q&A
Join us for Part 2, June 25, Noon-1 PM ET

Thank you
for joining us today!
Join us for Part 2, June 25, Noon-1 PM ET
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Measuring the Success of your Agile Transformation

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