Value over Velocity From Feature Building to Value Delivery

Transcription

1 Value over Velocity From Feature Building to Value Delivery Ryan 1 theagileengineer.com

2 Leader of IT Performance Improvement Solu>ons for Dominion Digital in Richmond, Virginia Background in Development. Now focused on Agile Transforma>ons

3 Today s Agenda 1. Iden'fy the Right Goals Those key goals that deliver value to the highest priority stakeholders early 2. Quan'fy them for Clarity To ensure stakeholder s desires are clearly understood by everyone 3. Integrate with Agile and Kanban Delivery Priori>ze the work and plan releases around improvements to the top goals Copyright 2010 Ryan Shriver - theagileengineer.com 3

4 Assump>ons You care about Value and want to learn techniques for defining and measuring value Agile and Kanban works. Don t change them, enhance them Your teams are delivering rela>vely well Copyright 2010 Ryan Shriver - theagileengineer.com 4

5 Value over Velocity Effec%veness over Efficiency From To Building Features Focus on Means Planning by Features Maximizing Velocity Delivering Value Focus on Ends Planning by Value Maximizing Value As Delivery methods mature, I believe we need to bring greater clarity and focus on the items on the right Copyright 2010 Ryan Shriver - theagileengineer.com 5

6 Value Defini>ons Stakeholder Value Business Value Any person, group or object which has some direct or indirect interest in a system. They define their Value. A perceived benefit, that is, the benefit we think we will receive from something A synonym for the value a business stakeholder will receive from something Customer Value A synonym for the value a customer will receive from something Feature Func>onality that allows a user to complete a task. Typically the what. Can be decomposed into one or more User Stories and priori>zed in the Backlog Source: Adapted from Compe%%ve Engineering by Tom Gilb Copyright 2010 Ryan Shriver - theagileengineer.com 6

7 Value Delivery Process Iden>fy and Priori>ze Stake- holders Iden>fy Stake- holder Goals Iden>fy Winning Ideas Create or Update Backlog of Stories Es>mate Stories and Points to Deliver Delivery with Scrum Kanban Measure Points and Stories Delivered Quan>fy Stake- holder Goals Make Value- based Decisions Es>mate Value to Deliver Measure Value Delivered Today s Focus Copyright 2010 Ryan Shriver - theagileengineer.com 7

8 Iden>fying Customer Goals Work with: Marke>ng and Sales Product Owner Iden>fy: Target Customer Segments Create Personas: S>cky Names Adjec>ves Back story Goals and Values Copyright 2010 Ryan Shriver - theagileengineer.com 8

9 Iden>fying Business Goals Work with: Execu>ve Sponsors Internal Stakeholders Product Owner Iden>fy: Stakeholders with Direct or Indirect Interest in the Product or Project Priori>ze for Focus For Highest Priority Stakeholders: Names Goals & Values VP of Marke>ng Business Partners IT Opera>ons Legal VP of Sales Development Team Procurement Copyright 2010 Ryan Shriver - theagileengineer.com 9

10 Iden>fying the Top Goals VP of Marke>ng Business Partners IT Opera>ons VP of Sales Development Team Improve Ease of Use Decrease Problem Resolu>on Time Improve Customer Self Service Reduce Time to Market Reduce Defects Legal Procurement Copyright 2010 Ryan Shriver - theagileengineer.com 10

11 Value Delivery Process Iden>fy and Priori>ze Stake- holders Iden>fy Stake- holder Goals Iden>fy Winning Ideas Create or Update Backlog of Stories Es>mate Stories and Points to Deliver Delivery with Scrum Kanban Measure Points and Stories Delivered Quan>fy Stake- holder Goals Make Value- based Decisions Es>mate Value to Deliver Measure Value Delivered Copyright 2010 Ryan Shriver - theagileengineer.com 11

12 Why Quan>fy Goals? The fact that we should set numeric improvement objec>ves, and track their delivery numerically, is powerful; but it is not the main point. The main purpose of quan>fica>on is to force us to think deeply, debate, agree, and specify, exactly, what we mean; so that others, later, cannot fail to understand us. - Tom Gilb Goals provide an objec>ve and a focus. They help us to set priori>es and to ignore unimportant details. To achieve something important, start by defining precisely what you are trying to accomplish. Vague direc>ons and imprecise goals waste >me. Wa@s Humphrey Copyright 2010 Ryan Shriver - theagileengineer.com 12

13 How to Quan>fy a Goal Step 1 Step 2 Name: In the form Ac%on Verb + Noun Phrase Scale: What to measure (units) Meter: How to measure (method) Baseline: Current level Target: Success level to achieve Constraint: Failure level to avoid Op>onal Elements Defini'ons: To clarify terminology and meaning [Qualifiers]: Specificity and Reusable Scales <- Sources: Addi>onal transparency and credibility Source: Based on Planguage from Compe%%ve Engineering by Tom Gilb Copyright 2010 Ryan Shriver - theagileengineer.com 13

14 Real Example of Stakeholder Goal Increase Customer Self Service Scales Percentage of Top 11 Self Service Requests that can be done from My Account Methods of Measurement Number of Customer Support Calls Total requests counted by Customer Care Monthly report of calls to Customer Care Copyright 2010 Ryan Shriver - theagileengineer.com 14

15 Types of Scales Leading Indicators Focused on future developments and drivers / causes Measurements can be done right now Examples: Average response >me Average handle >me Lagging Indicators Focused on past developments and effects / results Measurements must wait for passage of >me Examples: Quarterly Revenue Total incidents last month Copyright 2010 Ryan Shriver - theagileengineer.com 15

16 Baselines Common methods for establishing Baseline levels include Method Use Exis>ng Meter Create a New Meter Es>mate Descrip'on Use exis>ng method of measuring such as a report Create a new method of measuring. This requires the team to implement new capabili>es in order to measure in the future Do the best you can to es>mate what the exis>ng baseline is, even if there s no suppor>ng data. Use the <- source tag to indicate credibility of data Copyright 2010 Ryan Shriver - theagileengineer.com 16

17 Targets and Constraints Common methods for establishing Target and Constraint levels include Method Improvement from the Baseline Comparison with Leading Compe>tors Comparison with your Industry Leaders Comparison with other Industry Leaders Descrip'on Plan a 20% - 40% improvement over current levels by next year Benchmarking yourself against leading compe>tors and seqng levels based on their capabili>es Benchmarking yourself against your industry leaders, such as trying to be in Gartner s Magic Quadrant Benchmarking yourself against other industries known for great levels of quality, such as Nordstrom s customer service Copyright 2010 Ryan Shriver - theagileengineer.com 17

18 Real Example of Stakeholder Goal Increase Customer Self Service Scales Methods of Measurement Percentage of Top 11 Self Service Requests that can be done from My Account Number of Customer Support Calls Total requests counted by Customer Care Monthly report of calls to Customer Care Baselines [All Requests; Current Release] 0% (0 of 11) [Customer Care calls; monthly average Q1 & Q2 2010] 32,000 Targets [All Requests; Oct. Release]: 45% (5 of 11) [Customer Care calls; monthly average 1 quarter ater rollout]: 29,900 20% decrease for 5 online service requests Constraints [All Requests; Oct. Release]: 36% (4 of 11) [Customer Care calls; monthly average 1 quarter ater rollout]: 31,000 10% decrease for 4 online service requests Copyright 2010 Ryan Shriver - theagileengineer.com 18

19 Visualizing Goals Baselines, Targets and Constraints exist along an improvement con%nuum Constraint Baseline Target Fail Opportunity Success 0% 30% 100% Copyright 2010 Ryan Shriver - theagileengineer.com 19

20 Value Delivery Process Iden>fy and Priori>ze Stake- holders Iden>fy Stake- holder Goals Iden>fy Winning Ideas Create or Update Backlog of Stories Es>mate Stories and Points to Deliver Delivery with Scrum Kanban Measure Points and Stories Delivered Quan>fy Stake- holder Goals Make Value- based Decisions Es>mate Value to Deliver Measure Value Delivered Copyright 2010 Ryan Shriver - theagileengineer.com 20

21 Value Decision Table for Iden'fy Winning Ideas Goals Idea #1 Poten'al Ideas Idea #2 Idea #3 Totals Improve Ease of Use Time to find info: 120 secs - > 20 secs 20% +/- 10% 40% +/- 20% 70% +/- 30% 130% +/- 60% Decrease Problem Resolu>on Time Avg %me: 72 hours - > 24 hours 50% +/- 10% 20% +/- 20% 50% +/- 10% 120% +/- 40% Improve Customer Self Service Online Services: 0 - > 10 0% +/- 0% 50% +/- 20% 40% +/- 10% 90% +/- 30% Total Benefits 70% +/- 20% 110% +/- 60% 160% +/- 50% Resources Cost (in Story Points) Total Benefits / Cost Ra>o Design with highest ra%o is best bang for the buck and will deliver value quicker 3.0 +/ / /- 0.5

22 Scrum: Linking Personas to Goals, Ideas and Backlogs ng ss rs ons VP of Sales Development Team Procurement Quan>fied Goals Improve Ease of Use Decrease Problem Resolu>on Time Improve Customer Self Service Reduce Time to Market Reduce Defects Idea #1 Idea #2 Idea #3 Idea #n Top Idea(s) Backlog Story 1 Story 2 Story 3 Story n Copyright 2010 Ryan Shriver - theagileengineer.com 22

23 Kanban: Linking Personas to Goals, Ideas and Backlogs ng ss rs ons VP of Sales Development Team Procurement Quan>fied Goals Improve Ease of Use Decrease Problem Resolu>on Time Improve Customer Self Service Reduce Time to Market Reduce Defects Idea #1 Idea #2 Idea #3 Idea #n Top Idea Queue Work Item 1 Work Item 2 Work Item 3 Copyright 2010 Ryan Shriver - theagileengineer.com 23

24 Value Delivery Process Iden>fy and Priori>ze Stake- holders Iden>fy Stake- holder Goals Iden>fy Winning Ideas Create or Update Backlog of Stories Es>mate Stories and Points to Deliver Delivery with Scrum Kanban Measure Points and Stories Delivered Quan>fy Stake- holder Goals Make Value- based Decisions Es>mate Value to Deliver Measure Value Delivered Copyright 2010 Ryan Shriver - theagileengineer.com 24

25 Plan and Measure Value Delivered Goals Improve Ease of Use Time to find info: 120 secs - > 20 secs Release 1 Release 2 Es'mate Actual Es'mate Actual Idea #1 20% +/- 10% Idea #1 23% (97 secs) Decrease Problem Resolu>on Time Avg %me: 72 hours - > 24 hours 50% +/- 10% 42% (52 hours) Improve Customer Self Service Online Services: 0 - > 10 Delivery Using Scrum, Lean or Kanban 0% +/- 0% 0% Repriori'ze, Refine and Repeat Repriori>ze: Need to repriori>ze goals based on value delivered? Refine: Update target and constraint levels based on updated baselines Repeat process un>l priori>es change or no more resources 25

26 Measure Value Delivered Baselines, Targets and Constraints exist along an improvement con%nuum Constraint Baseline Target Fail Opportunity Success 0% 30% 100% Copyright 2010 Ryan Shriver - theagileengineer.com 26

27 Measure Value Delivered Baselines, Targets and Constraints exist along an improvement con%nuum Constraint Old Baseline New Baseline Target Fail Value Delivered Opportunity Success 0% 30% 70% 100% Copyright 2010 Ryan Shriver - theagileengineer.com 27

28 Func>onality Right Quali>es for Sotware Features, User Stories, Capabili>es, Security Usability Human factors, Aesthe>cs, Consistency, Documenta>on Reliability Availability, Recoverability, Accuracy Performance Responsiveness, Throughput, Scalability Supportability Maintainability, Testability, Extensibility, Adaptability, Serviceability, Configurability, Portability, Compa>bility Source: FURPS model developed at Hewlew- Packard and documented by Robert Grady and Deborah Caswell in Sotware Metrics: Establishing a Company Wide Program (1987) 28

29 Quan>fying Usability Real Example Name: Usability Scales: Efficiency: Number of Ac>ons to complete a Transac>on from a Loca>on Conversion: Percentage of Users who complete a Transac>on ater star>ng Meters: Efficiency: Average observed results from usertes>ng.com usability tests Conversion: Google Analy>cs conversion report Ac>ons: One of {Data entry, Click, Scroll}. Default is All Ac>ons Transac>on: One of {ecommerce [Shop, Purchase], Self Service [Ac>vate, Change Plan]} Loca>on: One of {Home Page, My Account}. Default is Home Page Baseline: Efficiency [ecommerce; Release 1]: 103 ac>ons <- Average of 10 usability tests Conversion [ecommerce; Q Q2 2010]: 0.37% <- Current state Target: Efficiency [ecommerce; Release 2]: 62 ac>ons <- 40% reduc%on Conversion [ecommerce; Q Q2 2011]: 0.5% <- 30% increase, industry average Constraint: Efficiency [ecommerce; Release 2]: 93 ac>ons <- 10% reduc%on Conversion [ecommerce; Q Q2 2011]: 0.43% <- 15% increase 29

30 Today s Agenda Iden'fy the Right Goals Those key goals that deliver value to the highest priority stakeholders early Quan'fy them for Clarity To ensure stakeholder s desires are clearly understood by everyone Integrate with Agile and Kanban Delivery Priori>ze the work and plan releases around improvements to the top goals Copyright 2010 Ryan Shriver - theagileengineer.com 30

31 Value over Velocity From Feature Building to Value Delivery Ryan 31 theagileengineer.com