Metrics for Metrics. Cost Analysis and Justifications
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1 Metrics for Metrics Cost Analysis and Justifications Douglas Hoffman Software Quality Methods, LLC Heather Heights Place Saratoga, California (Phone) (Fax) Copyright 1998, Software Quality Methods, LLC. No part of these graphic overhead slides may be reproduced, or used in any form by any electronic or mechanical duplication, or stored in a computer system, without written permission of the author. Douglas Hoffman Copyright 1998, SQM, LLC. 1
2 What We re Talking About Metrics 2 Measures and metrics Processes and products Improvement initiatives Economics of Metrics Where the $ are ROI Douglas Hoffman Copyright 1998, SQM, LLC. 2
3 Software Models Abstract representation Product / Process Attributes Examples Douglas Hoffman Copyright 1998, SQM, LLC. 3
4 Setting Up Metrics 2 Know why metrics are needed Relate to the model Do the right things Effective activities Apply the Pareto principle Only measure what you must (Use what you ve got) Automate Douglas Hoffman Copyright 1998, SQM, LLC. 4
5 Data Mining Use values you already have Metrics from diverse data sets or warehouses Tools to pull data together centrally cross system boundaries* overcome data structure differences* facilitate views into aggregated data* Evaluate for patterns, trends, improvements * Zinnote from Positive Support Review, Inc. is an example Douglas Hoffman Copyright 1998, SQM, LLC. 5
6 IT Metrics Tool Kit Metric s inventory Data Capture/Integration/Display tools Use what you have first Data already is captured electronically Locate and use (No added cost) Acceptable models Reporting system Douglas Hoffman Copyright 1998, SQM, LLC. 6
7 Psychology of Metrics Results based Clear objectives Process and product focus Focus on the numbers Avoid misuse Hawthorne effect Douglas Hoffman Copyright 1998, SQM, LLC. 7
8 What Goes Wrong? IT metrics are seat of the pants Relevant metrics are not well defined Measurements are not consistent Measurements are not accurate Management is cost focused Little trust between IT and its customers High dissatisfaction with IT Negative perception of the value of IT Fear of measures and metrics Adversaries Douglas Hoffman Copyright 1998, SQM, LLC. 8
9 Potential Problems IT metrics information shift costs Investments counter to Rightsizing Process change is cultural change Always up-front costs in changes Metrics only tell a story (They don t write the book) Douglas Hoffman Copyright 1998, SQM, LLC. 9
10 Analyzing Metrics Results Model effectiveness Telling the desired stories Cost effective measures Data accuracy Data consistency Douglas Hoffman Copyright 1998, SQM, LLC. 10
11 Refining Metrics Less expensive way to measure Tell the right stories Valid model Appropriate values New areas to pursue Something left to gain Consistency of values Accuracy of values Douglas Hoffman Copyright 1998, SQM, LLC. 11
12 IT Economics Traditional Focus Doing things right Costs Efficiency Potential Problems Best Slide Rule Metrics (QA) is overhead Cut costs into oblivion Douglas Hoffman Copyright 1998, SQM, LLC. 12
13 Economics of Metrics Separate costs from returns Different timeframes Different functions Keep in mind A metric is only information (Information is power) People must act to effect changes TANSTAFL Douglas Hoffman Copyright 1998, SQM, LLC. 13
14 Relating $ to Metrics Metrics direct $ Collecting Reporting Metrics indirect $ Reducing rework Change planning Metrics related $ Goodwill Sales advantage Douglas Hoffman Copyright 1998, SQM, LLC. 14
15 Metrics and the IT Budget Costs Increased Planning Measures Tools Analysis Changes Costs Reduced Improved productivity Superfluous activities Rework Errors Support Douglas Hoffman Copyright 1998, SQM, LLC. 15
16 ROI For Metrics Value of Cost of Information Acquisition Douglas Hoffman Copyright 1998, SQM, LLC. 16
17 Value of Information Direct Net cost reduction Net efficiency improvement Net cost shifting Indirect Quality improvement Faster time to market Risk reduction Douglas Hoffman Copyright 1998, SQM, LLC. 17
18 Cost of Acquisition Incremental collection cost Computation and manipulation Interpretation of results Confidence ( fuzz factor ) Douglas Hoffman Copyright 1998, SQM, LLC. 18
19 Short Term Justification Perceived Value to User Cost of 1 st Order Estimate Douglas Hoffman Copyright 1998, SQM, LLC. 19
20 Keys for Success Understand the purpose of metrics Focus on results Objective measures Knowledge acceptance and transfer Clear, relevant metrics Minimize added infrastructure Douglas Hoffman Copyright 1998, SQM, LLC. 20
21 Conclusions Measures necessary for knowing success Metrics 2 justify knowledge KISS: Keep It Simple, Silly Solutions differ with situation Douglas Hoffman Copyright 1998, SQM, LLC. 21
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