measuring the success of your agile transformation

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

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The key to a successful agile journey is to identify concrete, measurable goals. Whether your challenge is to improve software quality, time to market, productivity, customer satisfaction, innovation, employee engagement, or some combination of these, agile metrics are crucial to your success. How do you use agile metrics early and often to know that you’re going in the right direction? And how do you know when your goals have been met?

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Page 1: Measuring the Success of your Agile Transformation

Measuring the Success of Your Agile TransformationPart 1

June 19, 2014

#AgileLIVE

Page 2: Measuring the Success of your Agile Transformation

© 2014 VersionOne, Inc. 2

A few logistics…

#AgileLIVE

Page 3: Measuring the Success of your Agile Transformation

© 2014 VersionOne, Inc. 3

Moderator

#AgileLIVE

Aaron SmithEditorial DirectorProjectsAtWork

Page 4: Measuring the Success of your Agile Transformation

www.agile42.com | All rights reserved. Copyright © 2007 - 2014.agile42 | The Agile Coaching Company

Brad SwansonSenior Agile Coach

@[email protected]

@bradswanson

Page 5: Measuring the Success of your Agile Transformation

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The Enterprise Transition

Framework™

(ETF) for empirical change

1. Assess2. Strategy

3. Pilot4. Rollouthttp://www.agile42.com/en/agile-transition/etf/

Page 6: Measuring the Success of your Agile Transformation

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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

Page 7: Measuring the Success of your Agile Transformation

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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 PSFNC#1.1: we need to list at least 3 projects per product areaNC#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)?

Page 8: Measuring the Success of your Agile Transformation

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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

Page 9: Measuring the Success of your Agile Transformation

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Goal CSF#1NC#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?

Page 10: Measuring the Success of your Agile Transformation

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Sustainably faster

delivery of solutions that

delight customers

Faster time to market

Alignment & sup-port across the

org

Engaged & joy-ful people

Transparent empirical view

of org performance

Grow and sus-tain agile prac-

tices

Culture of continuous learning & improve-

ment

Org priorities aligned with

Customer value

Agile TransformationExample Goal + Success Factors (PSFs /

CSFs)

Page 11: Measuring the Success of your Agile Transformation

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Sustainably faster delivery of solutions

that delight customers

Faster time to market

Balance work-load & capacity:

limit WIP

Alignment & support across

the org

Engaged & joy-ful people

Transparent empirical view of org

performance

Grow and sustain agile

practices

Culture of continuous learn-ing & improve-

ment

Org priorities aligned with

customer valueDedicated Guiding Coalti-

ion

Pilot projects

Clearly communicated vision & strat-

egy

Training & coach-ing

Build internal expertise

Collaborative prioritization

with stakehold-ers

Collaborative cross-functional

teams Automated testing &

deploymentIncremen-tal deliv-

ery

Visible met-rics

Leaders to remove

fearEmpower-ment

Clear, realistic goals

Servant leader-

ship

Action taken

to improve

Foster innova-

tion Celebrate failed experi-ments

Example: Necessary Conditions for the PSFs

Clear career path

GoalSuccess fac-

torsNecessary condi-

tions

Legend:

Page 12: Measuring the Success of your Agile Transformation

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A few metrics (KPIs) for the goalSustainably faster delivery of solutions that delight customers

These are lagging indicators; some leading indicators are described soon…

Page 13: Measuring the Success of your Agile Transformation

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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 cus-

tomer value

Page 14: Measuring the Success of your Agile Transformation

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CSF 1: Time to Market

Lead time: from request to 1st deploy

Cycle time: dev start to 1st de-ploy

Page 15: Measuring the Success of your Agile Transformation

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CSF 1: Time to Market – leading indicator

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PSF 2: Org priorities aligned with customer value –

leading indicators

Churn = % change af-ter commit

point

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Compare actuals

with forecast

PSF 2: Org priorities aligned with customer value –

lagging indicators

Page 18: Measuring the Success of your Agile Transformation

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Leading & lagging indicators for each PSFPSF Leading Indicators Lagging Indicators

• 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 prac-tices

3. Align-

ment & support across the org

Page 19: Measuring the Success of your Agile Transformation

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PSF 3: Alignment & support

Page 20: Measuring the Success of your Agile Transformation

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PSF 4: Grow & sustain agile practices

Page 21: Measuring the Success of your Agile Transformation

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Leading & lagging indicators for each PSF

*Success ratio over 70% may indicate fear of failure

PSF Leading Indicators Lagging Indicators

• 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 people6. Cul-ture of continu-

ouslearning

& Improve-

ment

Page 22: Measuring the Success of your Agile Transformation

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agile42 | The Agile Coaching Company

Measuring Team Progress on Agile Practices

Page 23: Measuring the Success of your Agile Transformation

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Agile Practices Roadmap – Team Level

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Agile Practices Roadmap – Team Level (p.2)

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Team Practices Dashboard

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Team Practices Dashboard

Highest level achieved across all four di-mensions

Page 27: Measuring the Success of your Agile Transformation

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Attack of the Killer Metrics!

When metrics go bad…

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Questions to ask about every metric1. 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’?

Page 29: Measuring the Success of your Agile Transformation

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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!

Page 30: Measuring the Success of your Agile Transformation

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Management vs. Team Metrics

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agile42 - The Agile Coaching Company

agile42 | The Agile Coaching Company

Thank you!

Brad SwansonSenior Agile Coach

@[email protected]

@bradswanson

Page 32: Measuring the Success of your Agile Transformation

© 2014 VersionOne, Inc. 32

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

Page 33: Measuring the Success of your Agile Transformation

Thank you for joining us today!

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

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