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www.synerzip.com www.synerzip.com Agile Metrics, Value, and Software Don McGreal [email protected] @donmcgreal linkedin.com/in/donmcgreal

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Page 1: Agile Metrics, Value, and Software - SynerzipAgile Metrics, Value, and Software Don McGreal ... Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee

www.synerzip.com www.synerzip.com

Agile Metrics, Value, and Software Don McGreal

[email protected]

@donmcgreal

linkedin.com/in/donmcgreal

Page 2: Agile Metrics, Value, and Software - SynerzipAgile Metrics, Value, and Software Don McGreal ... Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee

www.synerzip.com www.synerzip.com

Agenda

1. Types of Metrics

2. Problems with Metrics

3. Metrics in Software Development

4. Evidence-Based Management

5. Questions

Page 3: Agile Metrics, Value, and Software - SynerzipAgile Metrics, Value, and Software Don McGreal ... Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee

www.synerzip.com www.synerzip.com

How do you measure progress on your software projects?

How about value?

Page 4: Agile Metrics, Value, and Software - SynerzipAgile Metrics, Value, and Software Don McGreal ... Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee

www.synerzip.com www.synerzip.com

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

Page 5: Agile Metrics, Value, and Software - SynerzipAgile Metrics, Value, and Software Don McGreal ... Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee

www.synerzip.com www.synerzip.com

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

Page 6: Agile Metrics, Value, and Software - SynerzipAgile Metrics, Value, and Software Don McGreal ... Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee

www.synerzip.com www.synerzip.com

Delivery Metrics

Velocity

Number of Tests

Code Coverage

Defects

Coupling

Cohesion

Code Complexity

Build Failures

Process Adherence

Owner Metrics

Revenue

Per Release

Per Employee

Investments/Costs

Customer Satisfaction

Employee Satisfaction

Lead & Cycle Time

Innovation Rate

Customer Usage

Circumstantial Direct

Page 7: Agile Metrics, Value, and Software - SynerzipAgile Metrics, Value, and Software Don McGreal ... Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee

www.synerzip.com www.synerzip.com

So what?

3 Challenges

Page 8: Agile Metrics, Value, and Software - SynerzipAgile Metrics, Value, and Software Don McGreal ... Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee

www.synerzip.com www.synerzip.com

1. Efficiency

Cargo Cults

Page 9: Agile Metrics, Value, and Software - SynerzipAgile Metrics, Value, and Software Don McGreal ... Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee

www.synerzip.com www.synerzip.com

1. Efficiency

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

Page 10: Agile Metrics, Value, and Software - SynerzipAgile Metrics, Value, and Software Don McGreal ... Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee

www.synerzip.com www.synerzip.com

2. Vision

Are we aligned?

Page 11: Agile Metrics, Value, and Software - SynerzipAgile Metrics, Value, and Software Don McGreal ... Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee

www.synerzip.com www.synerzip.com

2. Vision

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

Page 12: Agile Metrics, Value, and Software - SynerzipAgile Metrics, Value, and Software Don McGreal ... Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee

www.synerzip.com www.synerzip.com

3. Incentive

Suboptimal Metrics Source: Robert D. Austin, Measuring and Managing Performance in Organizations

Performance

Time

measurement indicators

true performance

Page 13: Agile Metrics, Value, and Software - SynerzipAgile Metrics, Value, and Software Don McGreal ... Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee

www.synerzip.com www.synerzip.com

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.

Page 14: Agile Metrics, Value, and Software - SynerzipAgile Metrics, Value, and Software Don McGreal ... Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee

www.synerzip.com www.synerzip.com

Who?

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

? ?

Page 15: Agile Metrics, Value, and Software - SynerzipAgile Metrics, Value, and Software Don McGreal ... Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee

www.synerzip.com www.synerzip.com

Who?

Delivery Metrics

Velocity

Number of Tests

Code Coverage

Defects

Coupling

Cohesion

Code Complexity

Build Failures

Process Adherence

Owner Metrics

Revenue

Per Release

Per Employee

Investments/Costs

Customer Satisfaction

Employee Satisfaction

Lead & Cycle Time

Innovation Rate

Customer Usage

Circumstantial Direct

? ?

Page 16: Agile Metrics, Value, and Software - SynerzipAgile Metrics, Value, and Software Don McGreal ... Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee

www.synerzip.com www.synerzip.com

Agile Development

Page 17: Agile Metrics, Value, and Software - SynerzipAgile Metrics, Value, and Software Don McGreal ... Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee

www.synerzip.com www.synerzip.com

Teams Have Organizational Impediments

Copyright Scrum.org 2013

impediments management

Page 18: Agile Metrics, Value, and Software - SynerzipAgile Metrics, Value, and Software Don McGreal ... Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee

www.synerzip.com www.synerzip.com

Management Makes Investments

Copyright Scrum.org 2013

impediments management

training, coaching, infrastructure, tools, facilities

But how do we know these investments

are making a difference?

Page 19: Agile Metrics, Value, and Software - SynerzipAgile Metrics, Value, and Software Don McGreal ... Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee

www.synerzip.com www.synerzip.com

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

Page 20: Agile Metrics, Value, and Software - SynerzipAgile Metrics, Value, and Software Don McGreal ... Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee

www.synerzip.com www.synerzip.com

Evidence Based Management

http://www.ebmgt.org/

Page 21: Agile Metrics, Value, and Software - SynerzipAgile Metrics, Value, and Software Don McGreal ... Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee

www.synerzip.com www.synerzip.com

Evidence Based Management

Current Value Ability to Innovate Time to Market

Release Frequency

Release Stabilization

Cycle Time

Installed Version Index

Usage Index

Innovation Rate

Defects

Revenue per Employee

Employee Satisfaction

Customer Satisfaction

Product Cost Ratio

Page 22: Agile Metrics, Value, and Software - SynerzipAgile Metrics, Value, and Software Don McGreal ... Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee

www.synerzip.com www.synerzip.com

Evidence Based Management

Direct Evidence Circumstantial Evidence

Improve

Diagnose

Page 23: Agile Metrics, Value, and Software - SynerzipAgile Metrics, Value, and Software Don McGreal ... Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee

www.synerzip.com www.synerzip.com

Tracking Metrics

Page 24: Agile Metrics, Value, and Software - SynerzipAgile Metrics, Value, and Software Don McGreal ... Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee

www.synerzip.com www.synerzip.com

Tracking Metrics

Page 25: Agile Metrics, Value, and Software - SynerzipAgile Metrics, Value, and Software Don McGreal ... Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee

www.synerzip.com www.synerzip.com

Tracking Metrics

Sales

Employee Satisfaction

Page 26: Agile Metrics, Value, and Software - SynerzipAgile Metrics, Value, and Software Don McGreal ... Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee

www.synerzip.com www.synerzip.com

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.

Page 27: Agile Metrics, Value, and Software - SynerzipAgile Metrics, Value, and Software Don McGreal ... Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee

www.synerzip.com www.synerzip.com

Thank You! Don McGreal

[email protected]

@donmcgreal

linkedin.com/in/donmcgreal

Page 28: Agile Metrics, Value, and Software - SynerzipAgile Metrics, Value, and Software Don McGreal ... Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee

www.synerzip.com www.synerzip.com •28 84

www.synerzip.com

Hemant Elhence

[email protected]

469.322.0349

Page 29: Agile Metrics, Value, and Software - SynerzipAgile Metrics, Value, and Software Don McGreal ... Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee

www.synerzip.com www.synerzip.com

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

Page 31: Agile Metrics, Value, and Software - SynerzipAgile Metrics, Value, and Software Don McGreal ... Owner Metrics Revenue Investments/Costs Customer Satisfaction Repeat Customers Employee

www.synerzip.com www.synerzip.com

Call Us for a Free Consultation!

Hemant Elhence

[email protected]

469.322.0349

Thanks!