agilelive webinar: measuring the success of your agile transformation - part 1

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Measuring the Success of Your Agile Transformation Part 1 June 19, 2014 #AgileLIVE

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The key to a successful agile journey is to identify concrete, measurable goals. Whether your challenge is to improve software quality, time to market, productivity, customer satisfaction, innovation, employee engagement, or some combination of these, agile metrics are crucial to your success. How do you use agile metrics early and often to know that you’re going in the right direction? And how do you know when your goals have been met? Watch the recording here: http://bit.ly/1jofIwm

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Page 1: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

Measuring the Success of Your Agile Transformation Part 1 June 19, 2014

#AgileLIVE

Page 2: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

© 2014 VersionOne, Inc. 2

Moderator

#AgileLIVE

Aaron Smith Editorial Director ProjectsAtWork

Page 3: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

© 2014 VersionOne, Inc. 3

A few logistics…

Claim 1 PDU Provider ID – 3576 Webinar ID – V1044

#AgileLIVE

Page 4: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

www.agile42.com | All rights reserved. Copyright © 2007 - 2014. agile42 | The Agile Coaching Company

Brad Swanson Senior Agile Coach

@agile42

[email protected]

@bradswanson

Page 5: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

www.agile42.com | All rights reserved. Copyright © 2007 - 2014. agile42 | The Agile Coaching Company

The

Enterprise

Transition

Framework™

(ETF) for

empirical

change

1. Assess

2. Strategy

3. Pilot

4. Rollout http://www.agile42.com/en/agile-transition/etf/

Page 6: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

www.agile42.com | All rights reserved. Copyright © 2007 - 2014. agile42 | The Agile Coaching Company

Goal PSF

NC

Agile Strategy

Map™

Define the Goal we

want to achieve

Possible Success Factor

(PSF) represents a

hypothesis about a key

factor that would enable us

to achieve the Goal

Necessary Condition

(NC): what is needed in

order to fulfill the Success

Factor

http://www.agile42.com/en/agile-transition/agile-strategy-map/

Agile Strategy Map™ - Framework for Strategy

Page 7: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

www.agile42.com | All rights reserved. Copyright © 2007 - 2014. agile42 | The Agile Coaching Company

Goal

Agile Strategy

Map™

PSF#1

PSF#1: we believe that by

consolidating all projects in

one Portfolio, we will be able

to make better business

decisions

NC#1.

1

NC#1.2

NC#1.1

.1

To validate the hypothesis, we define

what is needed to run a pilot which will

measure the validity of the PSF

NC#1.1: we need to list at least 3

projects per product area

NC#1.1.1: we need to choose

projects and define comparable

dimensions such as: business

value, strategic alignment, cost...

NC#1.2: we need to define a

sample Portfolio funnel, and check

that Teams can deliver with the

provided information

What conditions are necessary to achieve the

success factor (PSF)?

Page 8: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

www.agile42.com | All rights reserved. Copyright © 2007 - 2014. agile42 | The Agile Coaching Company

Success:

we can compare the value of

projects easily (using defined

KPIs) and make consistent

business decisions.

Failure:

we still have endless

discussions about priority and

it’s costly to prepare project

info for the portfolio process

Indicators (measures):

•< 1 day to prepare 1 project business case

•Allows objective comparison of projects

•< 8 hrs to select priorities each quarter

•No ‘exec overrides’ on priority decisions

How will we measure PSF success and failure?

PSF#1: we believe that by consolidating all projects in one

Portfolio, we will be able to make better business decisions

Page 9: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2014.

Goal CSF#1

NC#1.1

NC#1.2

Agile Strategy

Map™

CSF#1: we must

consolidate all projects in

one Portfolio, so that will be

able to make better

business decisions

NC#1.1

.1

The Pilot was successful...

The Potential Success Factor

becomes a Critical Success

Factor (CSF). Update the

strategy to roll out and

institutionalize the change.

Pilot success! Now what?

Page 10: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

www.agile42.com | All rights reserved. Copyright © 2007 - 2014. agile42 | The Agile Coaching Company

Sustainably faster

delivery of

solutions that

delight

customers

Faster time

to market

Alignment & support

across the org

Engaged & joyful

people

Transparent empirical view

of org performance

Grow and sustain

agile practices

Culture of

continuous

learning &

improvement

Org priorities

aligned with

customer value

Agile Transformation

Example Goal + Success Factors (PSFs / CSFs)

Page 11: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

www.agile42.com | All rights reserved. Copyright © 2007 - 2014. agile42 | The Agile Coaching Company

Sustainably faster

delivery of solutions that

delight customers

Faster time to

market

Balance workload &

capacity: limit WIP

Alignment &

support across

the org

Engaged & joyful

people

Transparent empirical view of org

performance

Grow and

sustain agile

practices

Culture of

continuous learning

& improvement

Org priorities

aligned with

customer value

Dedicated

Guiding Coalition

Pilot projects

Clearly

communicated

vision & strategy

Training & coaching Build

internal

expertise

Collaborative

prioritization

with stakeholders

Collaborative

cross-functional

teams Automated

testing &

deployment Incremental

delivery

Visible metrics

Leaders to

remove fear Empowerment

Clear,

realistic goals

Servant

leadership

Action taken

to improve

Foster

innovation

Celebrate

failed

experiments

Example: Necessary Conditions for the PSFs

Clear

career path

Page 12: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

www.agile42.com | All rights reserved. Copyright © 2007 - 2014. agile42 | The Agile Coaching Company

A few metrics (KPIs) for the goal

Sustainably faster delivery of solutions that delight customers

These are lagging indicators; some leading indicators are described soon…

Page 13: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

www.agile42.com | All rights reserved. Copyright © 2007 - 2014. agile42 | The Agile Coaching Company

Leading & lagging indicators for each PSF / CSF

PSF Leading Indicators Lagging Indicators

• # total concurrent projects

• Avg # concurrent

projects/person

• Program burn-up chart

• Lead time: idea to 1st delivery

• Cycle time: Dev start to 1st

delivery

• Deployment frequency post 1st

delivery (MVP/V1)

• Frequency & effectiveness of

stakeholder collaboration on

prioritization

• Standard way to compare

project value

• Portfolio priorities highly visible

• All teams working on top portfolio

priorities; no ‘side projects’

• Delivered value is measured and

meets expectations

• Customer satisfaction survey

• Sales and/or usage statistics

1. Faster

time to

market

2. Org

priorities

aligned

with

customer

value

Page 14: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

www.agile42.com | All rights reserved. Copyright © 2007 - 2014. agile42 | The Agile Coaching Company

CSF 1: Time to Market

Lead time: from request to 1st deploy

Cycle time: dev start to 1st deploy

Page 15: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

www.agile42.com | All rights reserved. Copyright © 2007 - 2014. agile42 | The Agile Coaching Company

CSF 1: Time to Market – leading indicator

Page 16: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2014.

PSF 2: Org priorities aligned with customer value

leading indicators

Churn =

% change after

commit point

Page 17: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2014.

Compare

actuals

with

forecast

PSF 2: Org priorities aligned with customer value

lagging indicators

Page 18: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

www.agile42.com | All rights reserved. Copyright © 2007 - 2014. agile42 | The Agile Coaching Company

Leading & lagging indicators for each PSF

PSF Leading Indicators Lagging Indicators

• Sr. Leadership consensus on

strategy

• Frequency of comms on vision

& strategy; # of different forums

• Short-term wins visibly

celebrated

• # hours spent on Guiding

Coalition activities

• Poll: % who agree with strategy

• Poll: % prefer new to old

approach

• # of teams asking to ‘go agile’

• # people trained on Agile

• # people in coached projects

• # people in the ‘coach the

coach’ program

• Agile team practices maturity

level

• # people completing ‘coach the

coach’

• # people achieving 3rd party Agile

certifications

• Monthly attendance in Agile

Community of Practice (CoP)

meetings

4.

Grow &

sustain

agile

practices

3.

Alignment

& support

across the

org

Page 19: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2014.

PSF 3: Alignment & support

Page 20: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2014.

PSF 4: Grow & sustain agile practices

Page 21: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2014.

Leading & lagging indicators for each PSF

*Success ratio over 70% may indicate fear of failure

PSF Leading Indicators Lagging Indicators

• Poll: things getting better or

worse?

• Career path defined for all roles

• Poll: employee job satisfaction

• Attrition rate

• # employee referrals for hiring

• Avg frequency of team

retrospectives

• # of experimental learnings

celebrated (fast safe failures)

• Poll: Do you feel safe to

experiment & innovate?

• # team-initiated process changes

• # team-initiated product

innovations

• Success ratio of experiments*

5. Engaged

& joyful

people

6. Culture

of

continuous

learning &

Improve-

ment

Page 22: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

www.agile42.com | All rights reserved. Copyright © 2007 - 2014.

agile42 - The Agile Coaching Company

agile42 | The Agile Coaching Company

Measuring Team Progress on

Agile Practices

Page 23: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

www.agile42.com | All rights reserved. Copyright © 2007 - 2014. agile42 | The Agile Coaching Company

Agile Practices Roadmap – Team Level

Page 24: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

www.agile42.com | All rights reserved. Copyright © 2007 - 2014. agile42 | The Agile Coaching Company

Agile Practices Roadmap – Team Level (p.2)

Page 25: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2014.

Team Practices Dashboard

Page 26: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2014.

Team Practices Dashboard

Highest level achieved across all four dimensions

Page 27: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

www.agile42.com | All rights reserved. Copyright © 2007 - 2014.

agile42 - The Agile Coaching Company

agile42 | The Agile Coaching Company

Attack of the

Killer Metrics!

When metrics

go bad…

Page 28: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2014.

Questions to ask about every metric

1. What decisions will be made based on this metric?

2. Is this the RIGHT thing to measure or an easy-to-

measure proxy?

3. What might be the unintended consequences of this

metric?

4. How could this metric be ‘gamed’?

5. What can we do to guard against unintended

consequences and ‘gaming’?

Page 29: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2014.

Compensating / Balancing Metrics

• What unintended consequences might happen if

you measure speed of delivery?

• What is a compensating metric to counteract it?

• Measure speed AND quality!

Page 30: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

www.agile42.com | All rights reserved. Copyright © 2007 - 2014. agile42 | The Agile Coaching Company

Management vs. Team Metrics

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Page 31: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

www.agile42.com | All rights reserved. Copyright © 2007 - 2014.

agile42 - The Agile Coaching Company

agile42 | The Agile Coaching Company

Thank you!

Brad Swanson Senior Agile Coach

@agile42

[email protected]

@bradswanson

Page 32: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

© 2014 VersionOne, Inc. 32

Q&A

Join us for Part 2, June 25, Noon-1 PM ET

Page 33: AgileLIVE Webinar: Measuring the Success of Your Agile Transformation - Part 1

Thank you for joining us today! Join us for Part 2, June 25, Noon-1 PM ET #AgileLIVE