Agile Metrics, Value, and Software Don McGreal

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1 Agile Metrics, Value, and Software Don linkedin.com/in/donmcgreal

2 Agenda 1. Types of Metrics 2. Problems with Metrics 3. Metrics in Software Development 4. Evidence-Based Management 5. Questions

3 How do you measure progress on your software projects? How about value?

4 What is Value? val ue noun the regard that something is held to deserve; the importance, worth, or usefulness of something. For companies, it is always presented in money terms. Profit derived from the use of a product or service

5 Delivery Metrics Pizzas Delivered per Trip Time taking an order Time for Delivery Miles per Delivery Fuel Used Order Accuracy (Quality) Route Efficiency Orders per Driver Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee Satisfaction Growth Market Drivers & Trends Market Share Circumstantial Direct

6 Delivery Metrics Velocity Number of Tests Code Coverage Defects Coupling Cohesion Code Complexity Build Failures Process Adherence Circumstantial Owner Metrics Revenue Per Release Per Employee Investments/Costs Customer Satisfaction Employee Satisfaction Lead & Cycle Time Innovation Rate Customer Usage Direct

7 So what? 3 Challenges

8 1. Efficiency Cargo Cults

9 1. Efficiency Using circumstantial metrics as your main guide can lead to more overhead and waste.

10 2. Vision Are we aligned?

11 2. Vision Using circumstantial metrics as your main guide can misalign the business and the delivery organizations.

12 3. Incentive Suboptimal Metrics Source: Robert D. Austin, Measuring and Managing Performance in Organizations measurement indicators Performance true performance Time

13 3. Incentive Once a measure of performance is made a target or incentive for the purpose of driving behavior, it loses the information content that qualifies it to play such a role. This is even more true of circumstantial metrics.

14 Who? Delivery Metrics Owner Metrics? Pizzas Delivered per Trip Time taking an order Time for Delivery Miles per Delivery Fuel Used Order Accuracy (Quality) Route Efficiency Orders per Driver Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee Satisfaction Growth Market Drivers & Trends Market Share? Circumstantial Direct

15 Who? Delivery Metrics Owner Metrics? Velocity Number of Tests Code Coverage Defects Coupling Cohesion Code Complexity Build Failures Process Adherence Circumstantial Revenue Per Release Per Employee Investments/Costs Customer Satisfaction Employee Satisfaction Lead & Cycle Time Innovation Rate Customer Usage Direct?

16 Agile Development

17 Teams Have Organizational Impediments impediments management

18 Management Makes Investments impediments management training, coaching, infrastructure, tools, facilities But how do we know these investments are making a difference?

19 Evidence Based Medicine 1. Frame a proper, pertinent, focused, and answerable question 1. Systematically assemble best available evidence 2. Clinically appraise evidence for validity and usefulness 3. Apply results in practice of the art 4. Evaluate performance

20 Evidence Based Management

21 Evidence Based Management Revenue per Employee Release Frequency Installed Version Index Product Cost Ratio Release Stabilization Usage Index Employee Satisfaction Customer Satisfaction Cycle Time Innovation Rate Defects Current Value Time to Market Ability to Innovate

22 Evidence Based Management Direct Evidence Diagnose Circumstantial Evidence Improve

23 Tracking Metrics

24 Tracking Metrics

25 Tracking Metrics Sales Employee Satisfaction

26 So Agility isn t just for IT. Agility can provide the business with a true competitive advantage. The right measurements are essential for this. They can improve communication, productivity, and business alignment.

27 Thank You! Don linkedin.com/in/donmcgreal

28 Hemant Elhence

29 Synerzip in a Nutshell 1. Software product development partner for small/mid-sized technology companies Exclusive focus on small/mid-sized technology companies, typically venture-backed companies in growth phase By definition, all Synerzip work is the IP of its respective clients Deep experience in full SDLC design, dev, QA/testing, deployment 2. Dedicated team of high caliber software professionals for each client Seamlessly extends client s local team, offering full transparency Stable teams with very low turn-over NOT just staff augmentation, but provide full mgmt support 3. Actually reduces risk of development/delivery Experienced team - uses appropriate level of engineering discipline Practices Agile development responsive, yet disciplined 4. Reduces cost dual-shore team, 50% cost advantage 5. Offers long term flexibility allows (facilitates) taking offshore team captive aka BOT option

30 Our Clients

31 Thanks! Call Us for a Free Consultation! Hemant Elhence hemant@synerzip.com