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The missing link
Between company strategy and
Dev(Ops) teams
Bart den Haak, @bartdenhaak, leanbart.com
Independent Lean software development
consultant (LSD).
Past: entrepreneur, platform/software
architect, developer
Sports: Kite surfer, snowboarder, free athlete
Leanbart.com
bart@leanbart.com
LeanBart, @bartdenhaak
Focus on the wrong things (output)
PM MT CXO Self-Organized DevOps Teams
(Exaggerated?) example of “extant structure” — by Mark Walsh from Integration Training
Lack of motivation
Questions you can ask teams/individuals: Why do you come to
work?
Wrong Priorities
What is your company strategy?
Source: https://successfulculture.com/your-experience-is-your-blue-ocean-strategy/
The missing link: Disconnected company strategy
MISSION
VISION
STRATEGY
Why does the company exist
World picture of the future
Broad priorities
Agile / Lean Team(s)
?? ??
A perfect organization
What can we do?
Management by Objectives (MBO)
1954, Peter Drucker, Balanced Scorecard
The missing link
MISSION
VISION
STRATEGY
OBJECTIVES
Why does the company exist
World picture of the future
Broad priorities
What we will focus on in the next term
Agile / Lean Team(s)
?? ??
OKR to the rescue
Objective and key results (OKRs) is a
framework of defining and tracking
objectives and their outcomes.
OKR resurgence
First developed by Andrew Grove, VP Intel,
1970s
“This is why I’m so happy to see the resurgence of
OKR’s. When used properly, they help to reframe
this situation from output (features on
roadmaps) to outcome (business results).”
~ Marty Cagan, ex Senior VP Product Design,
eBay
The link - OKRs
MISSION
VISION
STRATEGY
OBJECTIVES
KEY RESULTS
Why does the company exist
World picture of the future
Broad priorities
What we will focus on in the next term
How we know we’ve achieved
An objective
Agile / Lean Team(s)
Input
for
concepts
Cash
OKR - Crash course
Andy Grove, CEO Intel (1987-1998) - Objectives & Key results.
Objective: An objective is a concise statement outlining a broad qualitative
goal designed to propel the organization forward in a desired direction.
“What do we want to do?” It needs to be aspirational
Key Results: A key result is a quantitative statement that measures the
achievement of a given objective.
“How will we know if we’ve met our objective”. Needs to be measurable
Every quarter you set and evaluate them. Max 5 Objectives and 5 Key results
Connecting OKRs
Company OKRs
Business Unit OKRs
Team OKRs
Individual OKRs
Business Unit OKRs
Team OKRs
Individual OKRs
OKR - An example
Objective: “Design a compelling website that attracts people to OKRs”
Key results:
● 20 percent of visitors return to the site in one week.
● 10 percent of visitors inquire about our training and consulting services.
● Communication; Easy to understand system increases buy-in and use.
● Agility; Frequent cycles foster agility and change-readiness.
● Focus; OKRs ensure everyone is clear about what matters most.
● Transparency; Making measurable goals visible promotes cross-functional alignment.
● Engagement; Most OKRs originate bottoms-up so teams and individuals own their goals.
● Visionary thinking; OKRs stretch our thinking about what’s possible.
OKR benefits
An OKR case study
Hypothesis
OKRs will help teams with self-organization, company alignment and focus on
business value.
Hype or not?
Method used
Grounded theory:
Survey’s, memo’s, interviews.
Plan:
● Life before OKR a.k.a. “The benchmark”
● Life after OKR
Org chart
C-Office
Loyalty
Manager
eCommerce
Manager
DevOps Team DevOps Team
DevOps Team
Business Team Business Team
Participants
Developers: 15
Product owners: 2
Product & Business managers (Digital Marketing- & Shop Managers): 3
Executives (CEO/CFO) : 2
What is the company strategy 2017?
What is the company strategy 2017 - After OKR
What are the objectives for Q2?
What are the objectives for Q3? After OKR
What are your team objectives for Q2?
● Improve business KPI with X%: 50%
● Improve turnover with X%: 50%
When are the DevOps teams successful?
● If more than 50% of the releases contain business value.
● Delivery on time, Improved collaboration with the business teams
Survey results - Business Team - Before OKRs
What are your team objectives for Q3?
● When conversion is increased: 70%
● When net promoter score is increased: 15%
● Projects finished: 15%
When are the DevOps teams successful?
● No degradation in performance: 100%
Survey results - Business Team - After OKRs
What are your team objectives for Q2?
● Finish project X: 82%
● Fix/Reduce Defects: 18%
When is your team (devops) successful?
● When my project is finished and live: 52%
● If we have clear requirements before we start project Y: 8%
● Stable product, conversion on mobile increases: 16%
● We have created a framework to be proud at: 8%
● Don’t know: 16%
Survey results - DevOps Teams - Before OKRs
What are your team objectives for Q2?
● Finish project X: 100%. Note: everybody seems to be aligned.
When is your team (devops) successful?
● When my project is finished and live: 75%
● When we meet our objectives: 12,5%
● Lower defect rate: 12,5%
Survey results - DevOps Teams - After OKRs
What are your personal objectives for Q2 (devops)?
● Improve Quality of code/tests: 82%
● Fix/Reduce Defects: 18%
What are your personal objectives for Q2 (business)?
● Clear target definition for project: 50%
● Don’t know: 50%
Survey results - Personal Objectives - Before OKRs
What are your personal objectives for Q2 (devops)?
● Personal growth and learning new things : 37%
● Improvement of workflow and process 13%
● Innovation of technology: 50%
What are your personal objectives for Q2 (business)?
● Increase mobile conversion. 20%
● Don’t know: 80%
Survey results - Personal Objectives - After OKRs
Observations
What went wrong
● No strategy
● No kick-off with C-office
involvement
● Company Objectives/KR not
created from the start
Observations after OKRs
● Focus is there! Less items on the roadmap 2018. Less Tech
● ‘Missing’ of a good annual strategy becomes visible
● Beginning to ‘understand’ difference between OKRs and KPIs
● Start of reorg to BusDevOps teams!
● Executives enthusiastic about OKRs, feeling they get more visibility
A word about culture
Source: Dr. Ron Westrum, https://www.excella.com/insights/3-types-of-culture
Critics / Future work
● Longer measurement period (> 6 months), more significant?
● Are they better in self-organization?
● Can the study be used to benchmark OKRs?
● Or better...OKRs for OKR
Key takeaways
● The missing link between strategy and Dev(Ops) teams are the objectives
and key results.
● Self-organized teams need strategy and objectives from their leaders
● Common focus immediately visible after OKR implementation
● Survey can be used as benchmark for OKRs
● OKRs do not work in all company cultures
Thanks!
Twitter: @bartdenhaak
Linkedin: bartdenhaak
Email: bart@leanbart.com
References
LeanBart OKR Survey:
https://leanbart.com/wp-content/uploads/2017/10/OKR_Survey_Questions_2017_v2.pdf
OKRs at Google: https://youtu.be/mJB83EZtAjc
Dan North: https://dannorth.net/2017/05/01/applying-okrs/
What are self-organising teams: https://www.infoq.com/articles/what-are-self-organising-teams
Books:
● Objectives and Key results, Paul R. Niven, Ben Lamorte
● The Practice of Management, Peter F. Drucker

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The missing link

  • 1. The missing link Between company strategy and Dev(Ops) teams Bart den Haak, @bartdenhaak, leanbart.com
  • 2. Independent Lean software development consultant (LSD). Past: entrepreneur, platform/software architect, developer Sports: Kite surfer, snowboarder, free athlete Leanbart.com bart@leanbart.com LeanBart, @bartdenhaak
  • 3. Focus on the wrong things (output) PM MT CXO Self-Organized DevOps Teams
  • 4. (Exaggerated?) example of “extant structure” — by Mark Walsh from Integration Training
  • 5. Lack of motivation Questions you can ask teams/individuals: Why do you come to work?
  • 7. What is your company strategy? Source: https://successfulculture.com/your-experience-is-your-blue-ocean-strategy/
  • 8. The missing link: Disconnected company strategy MISSION VISION STRATEGY Why does the company exist World picture of the future Broad priorities Agile / Lean Team(s) ?? ??
  • 10. What can we do?
  • 11. Management by Objectives (MBO) 1954, Peter Drucker, Balanced Scorecard
  • 12. The missing link MISSION VISION STRATEGY OBJECTIVES Why does the company exist World picture of the future Broad priorities What we will focus on in the next term Agile / Lean Team(s) ?? ??
  • 13. OKR to the rescue Objective and key results (OKRs) is a framework of defining and tracking objectives and their outcomes.
  • 14. OKR resurgence First developed by Andrew Grove, VP Intel, 1970s “This is why I’m so happy to see the resurgence of OKR’s. When used properly, they help to reframe this situation from output (features on roadmaps) to outcome (business results).” ~ Marty Cagan, ex Senior VP Product Design, eBay
  • 15. The link - OKRs MISSION VISION STRATEGY OBJECTIVES KEY RESULTS Why does the company exist World picture of the future Broad priorities What we will focus on in the next term How we know we’ve achieved An objective Agile / Lean Team(s) Input for concepts Cash
  • 16. OKR - Crash course Andy Grove, CEO Intel (1987-1998) - Objectives & Key results. Objective: An objective is a concise statement outlining a broad qualitative goal designed to propel the organization forward in a desired direction. “What do we want to do?” It needs to be aspirational Key Results: A key result is a quantitative statement that measures the achievement of a given objective. “How will we know if we’ve met our objective”. Needs to be measurable Every quarter you set and evaluate them. Max 5 Objectives and 5 Key results
  • 17. Connecting OKRs Company OKRs Business Unit OKRs Team OKRs Individual OKRs Business Unit OKRs Team OKRs Individual OKRs
  • 18. OKR - An example Objective: “Design a compelling website that attracts people to OKRs” Key results: ● 20 percent of visitors return to the site in one week. ● 10 percent of visitors inquire about our training and consulting services.
  • 19. ● Communication; Easy to understand system increases buy-in and use. ● Agility; Frequent cycles foster agility and change-readiness. ● Focus; OKRs ensure everyone is clear about what matters most. ● Transparency; Making measurable goals visible promotes cross-functional alignment. ● Engagement; Most OKRs originate bottoms-up so teams and individuals own their goals. ● Visionary thinking; OKRs stretch our thinking about what’s possible. OKR benefits
  • 20. An OKR case study
  • 21. Hypothesis OKRs will help teams with self-organization, company alignment and focus on business value. Hype or not?
  • 22. Method used Grounded theory: Survey’s, memo’s, interviews. Plan: ● Life before OKR a.k.a. “The benchmark” ● Life after OKR
  • 23. Org chart C-Office Loyalty Manager eCommerce Manager DevOps Team DevOps Team DevOps Team Business Team Business Team
  • 24. Participants Developers: 15 Product owners: 2 Product & Business managers (Digital Marketing- & Shop Managers): 3 Executives (CEO/CFO) : 2
  • 25. What is the company strategy 2017?
  • 26. What is the company strategy 2017 - After OKR
  • 27. What are the objectives for Q2?
  • 28. What are the objectives for Q3? After OKR
  • 29. What are your team objectives for Q2? ● Improve business KPI with X%: 50% ● Improve turnover with X%: 50% When are the DevOps teams successful? ● If more than 50% of the releases contain business value. ● Delivery on time, Improved collaboration with the business teams Survey results - Business Team - Before OKRs
  • 30. What are your team objectives for Q3? ● When conversion is increased: 70% ● When net promoter score is increased: 15% ● Projects finished: 15% When are the DevOps teams successful? ● No degradation in performance: 100% Survey results - Business Team - After OKRs
  • 31. What are your team objectives for Q2? ● Finish project X: 82% ● Fix/Reduce Defects: 18% When is your team (devops) successful? ● When my project is finished and live: 52% ● If we have clear requirements before we start project Y: 8% ● Stable product, conversion on mobile increases: 16% ● We have created a framework to be proud at: 8% ● Don’t know: 16% Survey results - DevOps Teams - Before OKRs
  • 32. What are your team objectives for Q2? ● Finish project X: 100%. Note: everybody seems to be aligned. When is your team (devops) successful? ● When my project is finished and live: 75% ● When we meet our objectives: 12,5% ● Lower defect rate: 12,5% Survey results - DevOps Teams - After OKRs
  • 33. What are your personal objectives for Q2 (devops)? ● Improve Quality of code/tests: 82% ● Fix/Reduce Defects: 18% What are your personal objectives for Q2 (business)? ● Clear target definition for project: 50% ● Don’t know: 50% Survey results - Personal Objectives - Before OKRs
  • 34. What are your personal objectives for Q2 (devops)? ● Personal growth and learning new things : 37% ● Improvement of workflow and process 13% ● Innovation of technology: 50% What are your personal objectives for Q2 (business)? ● Increase mobile conversion. 20% ● Don’t know: 80% Survey results - Personal Objectives - After OKRs
  • 36. What went wrong ● No strategy ● No kick-off with C-office involvement ● Company Objectives/KR not created from the start
  • 37. Observations after OKRs ● Focus is there! Less items on the roadmap 2018. Less Tech ● ‘Missing’ of a good annual strategy becomes visible ● Beginning to ‘understand’ difference between OKRs and KPIs ● Start of reorg to BusDevOps teams! ● Executives enthusiastic about OKRs, feeling they get more visibility
  • 38. A word about culture Source: Dr. Ron Westrum, https://www.excella.com/insights/3-types-of-culture
  • 39. Critics / Future work ● Longer measurement period (> 6 months), more significant? ● Are they better in self-organization? ● Can the study be used to benchmark OKRs? ● Or better...OKRs for OKR
  • 40. Key takeaways ● The missing link between strategy and Dev(Ops) teams are the objectives and key results. ● Self-organized teams need strategy and objectives from their leaders ● Common focus immediately visible after OKR implementation ● Survey can be used as benchmark for OKRs ● OKRs do not work in all company cultures
  • 42. References LeanBart OKR Survey: https://leanbart.com/wp-content/uploads/2017/10/OKR_Survey_Questions_2017_v2.pdf OKRs at Google: https://youtu.be/mJB83EZtAjc Dan North: https://dannorth.net/2017/05/01/applying-okrs/ What are self-organising teams: https://www.infoq.com/articles/what-are-self-organising-teams Books: ● Objectives and Key results, Paul R. Niven, Ben Lamorte ● The Practice of Management, Peter F. Drucker