DevOps and the Culture of High- Performing Software Organizations

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1 K1 Keynote 6/8/16 8:30 AM DevOps and the Culture of High- Performing Software Organizations Presented by: Jez Humble Jez Humble & Associates LLC Brought to you by: 350 Corporate Way, Suite 400, Orange Park, FL info@techwell.com -

2 Jez Humble Jez Humble & Associates LLC Jez Humble is co-author of the Jolt Award winning Continuous Delivery, published in Martin Fowler s Signature Series (Addison Wesley, 2010), and Lean Enterprise, in Eric Ries Lean series (O'Reilly, 2015). He has consulted for many Global 500 companies to help them achieve technical excellence and deploy a culture of experimentation and learning. His focus is on helping organizations discover and deliver valuable, high-quality products. He teaches at UC Berkeley.

3 high performance product #devopswest 7 june 2016 afternoon agenda the product lifecycle productivity at scale experimental product development the culture of high performance

4 high performance product development: the product lifecycle

5 lifecycle of innovations technology adoption lifecycle Geoffrey Moore, Crossing the Chasm

6 three horizons Baghai, M., Coley, S. and White, D., The Alchemy of Growth Intuit horizons and metrics

7 explore vs exploit product/market fit MOST IDEAS FAIL!

8 optionality Nassim Taleb, Antifrafile A startup is a human institution designed to create new products and services under conditions of extreme uncertainty eric ries, the lean startup, ch. 1

9 learn-measure-build learn: create a value hypothesis measure: how do we test our hypothesis? build: gather the necessary data vanity vs actionable metrics

10 high performance product development: productivity at scale the enterprise Ping! Business Engineering Operations Project C Project A DBAs Infrastructure team Service desk Project B Value stream

11 enterprise projects Ping! Business Let s create a new product Engineering Project C Project D Project A Operations DBAs Service desk Infrastructure team Project B Value stream Oh no! We re going agile! Oh no! Business Engineering Operations Project D Project A DBAs Infrastructure team Service desk Project B Value stream

12 Our test-driven code follows SOLID principles Change management Shame it doesn t work Business Engineering Operations Project D Project A DBAs Infrastructure team Service desk Project B Value stream enterprise agility The main obstacles to improved business responsiveness are slow decision-making, conflicting departmental goals and priorities, riskaverse cultures and silo-based information. Economist Intelligence Unit: Organisational agility: How business can survive and thrive in turbulent times

13 The Alignment Trap Avoiding the Alignment Trap in IT, David Shpilberg, Steve Berez, Rudy Puryear and Sachin Shah MIT Sloan Management Review Magazine, Fall iron triangle

14 IT is a Competitive Advantage Firms with highperforming IT organizations were twice as likely to exceed their profitability, market share and productivity goals. it performance lead time for changes release frequency time to restore service change fail rate

15 highest correlation with it performance Our code, app configurations and system configurations are in a version control system We get failure alerts from logging and monitoring systems Developers merge their code into trunk daily When development and operations teams interact, the outcome is generally win/win. Developers break up large features into small, incremental changes. top predictors of it performance peer-reviewed change approval process version control everything proactive monitoring high trust organizational culture win-win relationship between dev and ops

16 water- scrumfall Jon Jenkins, Velocity Culture, The Unmet Challenge in Ops

17 hp laserjet firmware division 2008 Costs 10% - code integration 20% - detailed planning 25% - porting code Cycle times Commit to trunk: 1 week Builds / day: 1-2 Full manual regression: 6 wks 25% - product support 15% - manual testing ~5% - innovation capacity deployment pipeline

18 hp laserjet firmware team % - code integration 20% - detailed planning 25% - porting code 25% - current product support 15% - manual testing ~5% - innovation % - continuous integration 5% - agile planning 15% - one main branch 10% - one branch cpe 5% - most testing automated ~40% - innovation The remaining 23% on RHS is spent on managing automated tests. the economics 2008 to 2011 overall development costs reduced by ~40% programs under development increased by ~140% development costs per program down 78% resources now driving innovation increased by 8X A Practical Approach to Large-Scale Agile Development - Gruver, Young, Fulghum

19 high performance product development experimental product development batching up work Black Swan Farming using Cost of Delay Joshua J. Arnold and Özlem Yüce bit.ly/black-swan-farming

20 what should we do don t optimize for the case where we are right focus on value, not cost create feedback loops to validate assumptions make it economic to work in small batches enable an experimental approach to product dev impact mapping Gojko Adzic, Impact Mapping

21 hypothesis-driven delivery We believe that [building this feature] [for these people] will achieve [this outcome]. We will know we are successful when we see [this signal from the market]. Gothelf Better product definition with Lean UX and Design experiments Different types of user research, courtesy of Janice Fraser

22 Etsy s Product Development with Continuous Experimentation Frank Harris and Nellwyn Thomas Etsy s Product Development with Continuous Experimentation Frank Harris and Nellwyn Thomas

23 Etsy s Product Development with Continuous Experimentation Frank Harris and Nellwyn Thomas do less Evaluating well-designed and executed experiments that were designed to improve a key metric, only about 1/3 were successful at improving the key metric! Online Experimentation at Microsoft, Kohavi et al

24 Jon Jenkins, Velocity Culture, The Unmet Challenge in Ops high performance product development: the culture of high performance

25 improvement kata What is the target condition? (The challenge) What is the actual condition now? What obstacles are preventing you from reaching it? which one are you addressing now? What is your next step? (Start of PDCA cycle) When can we go and see what we learned from taking that step?

26 improvement kata A Practical Approach to Large-Scale Agile Development - Gruver, Young, Fulghum lightweight planning A Practical Approach to Large-Scale Agile Development - Gruver, Young, Fulghum

27 What Is Culture? A pattern of shared tacit assumptions that was learned by a group as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems. Edgar Schein, The Corporate Culture Survival Guide What Is Culture? Our true culture is made primarily of the things no one will say... Culture is about power dynamics, unspoken priorities and beliefs, mythologies, conflicts, enforcement of social norms, creation of in/ out groups and distribution of wealth and control inside companies. Shanley Your Startup Is Broken: Inside the Toxic Heart of Tech Culture

28 Top Predictors of Org Perf I would recommend this organization as a good place to work. I am satisfied with my job. My job makes good use of my skills and abilities. I have the tools and resources to do my job well. We use data from app perf & infra monitoring tools to make business decisions daily. High Trust Culture How organizations process information Westrum, A Typology of Organizational Cultures

29 changing culture Schein, The Corporate Culture Survival the production line

30 TOYODA AUTOMATIC LOOM TYPE G Since the loom stopped when a problem arose, no defective products were produced. This meant that a single operator could be put in charge of numerous looms, resulting in a tremendous improvement in productivity Dealing with Failure In a complex, adaptive system failure is inevitable When accidents happen, human factors are the starting point of a blameless post-mortem Ask: how can we get people better information? Ask: how can we detect and limit failure modes?

31 Retrospective Prime Directive Regardless of what we discover, we understand and truly believe that everyone did the best job they could, given what they knew at the time, their skills and abilities, the resources available, and the situation at hand. Norm Kerth, Project Retrospectives: A Handbook for Team Reviews innovation culture I think building this culture is the key to innovation. Creativity must flow from everywhere. Whether you are a summer intern or the CTO, any good idea must be able to seek an objective test, preferably a test that exposes the idea to real customers. Everyone must be able to experiment, learn, and iterate.

32 want to learn more? To receive the following: An exclusive invite to our DevOps benchmarking tool A chance to get a personalized analysis of your results A copy of this presentation A 100 page excerpt from Lean Enterprise A 20m preview of my Continuous Delivery video workshop Discount code for CD video + interviews with Eric Ries & more Early drafts of the DevOps Handbook Just pick up your phone and send an To: jezhumble@sendyourslides.com Subject: devops Jez Humble & Associates LLC