what managers need to know about it

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IT for CEOs What CEOs and Founders Need to Know About Software Development Stephan Schmidt, Vice CTO, brands4friends

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By Stephan Schmidt, mentor at www.berlinstartupacademy.com

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Page 1: What managers need to know about IT

IT for CEOs What CEOs and Founders Need to Know About Software Development

Stephan Schmidt, Vice CTO, brands4friends

Page 2: What managers need to know about IT

Me Stephan Schmidt Vice CTO brands4friends

@codemonkeyism

Stephan Schmidt - What Top Management needs to know about IT

Page 3: What managers need to know about IT

Stephan Schmidt - What Top Management needs to know about IT

Page 4: What managers need to know about IT

What CEOs and Founders Need to Know About Software Development

Stephan Schmidt - What Top Management needs to know about IT

Page 5: What managers need to know about IT

Stephan Schmidt - What Top Management needs to know about IT

Top

Man

agem

ent

IT

GAP

Dragons

Voodoo

Black Magic

?

Page 6: What managers need to know about IT

That’s wrong! Can’t manage Hidden risks

Stephan Schmidt - What Top Management needs to know about IT

Page 7: What managers need to know about IT

What should you ask? What should a CEO ask his CTO? (VP Engineering, Lead developer, …)

Stephan Schmidt - What Top Management needs to know about IT

Page 8: What managers need to know about IT

Stuff that risks your business or has huge revenue impact.

Stephan Schmidt - What Top Management needs to know about IT

Page 9: What managers need to know about IT

Green Shifting.

Stephan Schmidt - What Top Management needs to know about IT

Page 10: What managers need to know about IT

Questions to ask?

Stephan Schmidt - What Top Management needs to know about IT

Page 11: What managers need to know about IT

What is our largest risk?

Stephan Schmidt - What Top Management needs to know about IT

Page 12: What managers need to know about IT

How many SPOFs do you have? (People and technology)

Stephan Schmidt - What Top Management needs to know about IT

Page 13: What managers need to know about IT

When was your last Backup? Where is it? When has it been tested the last time?

Stephan Schmidt - What Top Management needs to know about IT

Page 14: What managers need to know about IT

When will we hit the wall? (More on that later)

Stephan Schmidt - What Top Management needs to know about IT

Page 15: What managers need to know about IT

Development is a solved problem

Stephan Schmidt - What Top Management needs to know about IT

Page 16: What managers need to know about IT

Time Scope

Resources ($$$)

Kanban (Lean)

Waterfall

Agile (Scrum)

Stephan Schmidt - What Top Management needs to know about IT

Page 17: What managers need to know about IT

Time to market => more money

Stephan Schmidt - What Top Management needs to know about IT

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Time to Market Largest lever is NOT development. Largest lever is decision phase.

Stephan Schmidt - What Top Management needs to know about IT

Page 19: What managers need to know about IT

Front-up

Development Start

Development

Everyone focuses here

Problems are here

Idea

Page 20: What managers need to know about IT

MarketOpportunity

Feeling of urgency

Time relative to competitor Reinertsen 1998

Stephan Schmidt - What Top Management needs to know about IT

Page 21: What managers need to know about IT

Top Managementpossible impact

Reinertsen 1998

Attention of top management for a

project

Stephan Schmidt - What Top Management needs to know about IT

Page 22: What managers need to know about IT

1 women needs 9 months to deliver a baby. 9 women do deliver a baby in 1 month.

Stephan Schmidt - What Top Management needs to know about IT

Page 23: What managers need to know about IT

Time Time

1. Feature

2. Feature

3. Feature

4. Feature

5. Feature

1. F

eatu

re

2. F

eatu

re

3. F

eatu

re

4. F

eatu

re

5. F

eatu

re

Parallel Serial Stephan Schmidt - What Top Management needs to know about IT

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Performance

Stephan Schmidt - What Top Management needs to know about IT

Page 25: What managers need to know about IT

Stephan Schmidt - What Top Management needs to know about IT

Time

Scope

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Stephan Schmidt - What Top Management needs to know about IT

Time

Scope

Page 27: What managers need to know about IT

Stephan Schmidt - What Top Management needs to know about IT

Time

Scope

Page 28: What managers need to know about IT

Technical Debt

Stephan Schmidt - What Top Management needs to know about IT

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Time

Technical Debt

Stephan Schmidt - What Top Management needs to know about IT

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Time

Technical Debt

WALL

Rewrite

Stephan Schmidt - What Top Management needs to know about IT

Page 31: What managers need to know about IT

Stephan Schmidt - What Top Management needs to know about IT

Work left to do

Time

Pressure

TechnicalDebt

Page 32: What managers need to know about IT

Stephan Schmidt - What Top Management needs to know about IT

Time

Lines of Code

Ok

BAD

GOOD

Page 33: What managers need to know about IT

How long does it take?

Stephan Schmidt - What Top Management needs to know about IT

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Brooks Law: Adding people to a late project makes it later.

Stephan Schmidt - What Top Management needs to know about IT

Page 35: What managers need to know about IT

Software estimation is usually done by the wrong people.

Stephan Schmidt - What Top Management needs to know about IT

Page 36: What managers need to know about IT

4x

0,25x

1x

Cone of Uncertainty

Time

Steve McConnell

Software Complete

Initial Idea

Requirements Complete

UI Complete

Detailed DesignComplete

Stephan Schmidt - What Top Management needs to know about IT

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Stephan Schmidt - What Top Management needs to know about IT

4x

0,25x

1x

Bad Cone of Uncertainty

Time

Steve McConnellInitial Idea

Requirements Complete

Page 38: What managers need to know about IT

Estimation/Time

Probability

10% 50% 90%

1. August1. July 1. October

Stephan Schmidt - What Top Management needs to know about IT

Page 39: What managers need to know about IT

Usually Estimation is not needed! Focus on Time to Market and What not when

Stephan Schmidt - What Top Management needs to know about IT

Page 40: What managers need to know about IT

And don’t forget … Do not hire developers if you don’t know what you do.

Stephan Schmidt - What Top Management needs to know about IT

Page 41: What managers need to know about IT

Thanks! Questions? @codemonkeyism [email protected]

Stephan Schmidt - What Top Management needs to know about IT

Page 42: What managers need to know about IT

Sources

Stephan Schmidt - What Top Management needs to know about IT

“Software Estimation: Demystifying the Black Art”, Steve McConnell

“Developing Products in Half the Time”,

Donald G. Reinertsen “The Mythical Man-Month”,

Frederick P. Brooks “Peopleware”,

Tom DeMarco

Page 43: What managers need to know about IT

DON’T FORGET! Maintenance typically consumes 40 to 80 percent of software costs.

Stephan Schmidt - What Top Management needs to know about IT

Page 44: What managers need to know about IT

Productivity

Stephan Schmidt - What Top Management needs to know about IT

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The most important factor in software work is the quality of the programmers.

Stephan Schmidt - What Top Management needs to know about IT

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The best programmers are up to 28 times better than the worst programmers.

Stephan Schmidt - What Top Management needs to know about IT

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Developers need 15 minutes to reach the ZONE.

Stephan Schmidt - What Top Management needs to know about IT

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Site note: No telephones.

Stephan Schmidt - What Top Management needs to know about IT

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Tools.

Stephan Schmidt - What Top Management needs to know about IT

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No silver bullet.

Stephan Schmidt - What Top Management needs to know about IT

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War on Talent

Stephan Schmidt - What Top Management needs to know about IT

Page 52: What managers need to know about IT

When your recruiting pipeline is empty

3 months recruiting + 3 months notice period + 1 current month = 7 months from need to filled

Stephan Schmidt - What Top Management needs to know about IT