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Agile By Numbers: KPI-Optimized Software
Transformation for the Enterprise
August 6, 2013Elena Yatzeck
http://pagilista.blogspot.com
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PrologueWhat is a High-Performing Team?
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What Does A High Performance Team Do?
Image source: http://hunterburgan.buzznet.com/photos/happybirthday/?id=53349941
What We Need
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What You Say Your Team Goals Are
• Short Term (Cash Flow)– Higher Income– Lower Costs (Protect Revenue)
• Long Term (Year on Year Growth)– Faster Time to Market– Higher Quality Product– Better Predictability/Transparency in
Process– Improved Team Morale– Improved Customer Relationship
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What You Think Your Team Goals Are
• Short Term (Cash Flow)– Higher Income– Lower Costs (Protect Revenue)
• Long Term (Sustainability)– Faster Time to Market– Higher Quality Product– Better Predictability/Transparency in
Process– Improved Team Morale– Improved Customer Relationship
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Your Actual Team Goals• Short Term– All Public Goals Met (On Paper)– Nobody (Important) Gets Fired– Nobody (Important) Quits– Everyone (Important) Gets a Good Raise
and Bonus
• Long Term– Everyone Keeps or Increases Their
Personal Power, Starting with You, The Leader
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Crucial Point to Remember
Enterprise Agile is Different
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It’s…ALIVE!
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Disciplined Agile Delivery
Scrum … AND
Scaled Agile Framework
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Enterprise Change is Usually
IncrementalIncremental innovation: Solution-driven creativity
Concrete practice
Extrinsic motivation
Needs an opportunity to contribute a solution
Radical innovation: Problem-driven creativity
Abstract theory-related ideas
Intrinsic motivation
Needs time to work the problem
Radical and Incremental Creativity: Antecedents and Processes, by Gilson and Madjar, in Psychology of Aesthetics, Creativity, and the Arts, 2011, Vol 5, No 1., cited in “Innovation Management Best Practices,” Jackie Fenn , VP & Gartner Fellow, July 25, 2013
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How do you direct the driver AND motivate the elephant?
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Try a Dashboard!
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Direct the Driver. Drivers Love Facts.
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Motivate the Elephant. Elephants Love Gadgets.
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Shrink the Task: Start With One Project and a
Spreadsheet that “Drills”
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Initial Dashboard “Drill Down” Values
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Expansion 1: More Projects!
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Simplest Scaling: Opportunistically Identified
Reference Instances
Disperse the coached projects to get maximum impact. (1 per major vertical, per location, for example)
What you want for a reference instance:Friendly, relaxed, and trustworthy sponsorSmall, non-critical, likely to be successful.
What you may get:Desperate executive Huge, mission-critical program already going up in flames.
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Further Out: Combination of New, Repeat, and Self-
Evangelizing BusinessPlan for staffing bump in coaches (FTE is cheaper and stickier than FTC)
Teams generally like it once they start. Keep counting them as they do new projects
Teams can help each other without you later.
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Expansion 2: Value
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Low Hanging Value: Software
CostsPresence/Absence of Measures
IT-sponsored transformationProject Planned/Actual Spend (Capital)BAU/Maintenance Planned/Actual Spend (Overhead)Project Planned/Actual StaffingStaff Absences and Turnover
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Further Out: Measure Actual
Business ROIStart driving from the business!
Project Planned/Actual Market Impact (Protect or Expand)
Project Planned/Actual Operational SavingsMonetize “saved keystrokes”Monetize labor cost savings with increased internationalization
Planned/Actual Progress Towards Other GoalsCommunity supportSocial Justice
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Advanced Practice:
Decreased Time to ValueMeasure cycle time
Measure realized value
Boom.
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Expansion 3: Quality
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Low Hanging Quality MeasuresFunctional Quality measured by defect trending
Performance and Security
Technical Debt Quantified: Total Cost of Ownership
Unit Test CoverageCode Complexity
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Further Out: ISO 25010 (SQuARE)
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Advanced Practice: Portfolio
ManagementCreate a weighted list of ISO SQuARE and company-specific value measures
Plan-do-check-act: tune estimates and practices
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Expansion 4: Practices
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Low Hanging Practices:
Everything is Scrum/XPCollocated teams of
dedicated, multi-skilled People
Cards, a pencil, a wall
Tape
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Actual Low-Hanging Practices
Collaborative, collocated requirements workshops
Software environment virtualization
Refactored code base/attend to technical debt
Automated combinatorial-data-based testing, supported by a robust test data strategy
Continuous integration, automated deployment
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Further Out: Seriously Gritty
ChangeCollocation; team rooms
Staffing patterns the norm, not the exception, where all team members are employed at the same time for the whole project
Planned, thoughtful and large-scale reduction of accumulated technical debt
Empowerment of teams
Budget, vendor, contract, and hiring reform
Different methodologies to handle different problems within a single company
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EpilogueBuild a Change Portfolio Based on Real
Options
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What Are My Choices?• Option 1: Keep Doing What You’re
Doing (Lowest Risk, Lowest Return)
• Option 2: Change Everything (Highest Risk, Highest Potential Return)
-OR-
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Acknowledge and Balance Your Team Goals as a
Portfolio
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Net Present Value (NPV)
Size of bubble is proportional to total value generated over lifetime use of new team techniques.
Prob
abili
ty o
f Suc
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1 Minute Theory of Portfolio Tuning
Ensure long term return
Ensure short term team survival
Ensure steady flow of corporate recognition from “sure bets,” balanced by potentially huge returns on high-risk items.
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Do you see a problem here?
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Low Risk,High Return
High Risk,High Return
High Risk,Low Return
Low Risk,Low Return
Net Present Value (NPV)
Prob
abili
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f Suc
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Example Software Development
Transformation Goal PortfolioGoal Cost Payback Time to
Payback
Virtualize cross-impact environments in all projects
Buy solution, learn to use it (requires cash outlay and team time)
No need to buy actual servers; no down time for testers
Same year: self funding
Enforce code quality standards (unit test coverage, code branching, size of modules)
Slows development; some short term opportunity cost
Improves customer morale; Reduces total cost of ownership 17% over life of project
2-5 years
Launch all projects with collocated workshop
Travel costs 85% reduction in scope creep; 15% reduction in defects
6 months
Implement SAFe framework
Completely disrupt SDLC for all
All performance measures improve: business more competitive
Minimum 3 years
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Is there a difference between stated and unstated goals on teams at sub-enterprise sized teams?
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Agile By Numbers: KPI-Optimized Software
Transformation for the Enterprise
August 6, 2013Elena Yatzeck
http://pagilista.blogspot.com