Lean Agile Metrics And KPIs

Lean Agile Metrics And KPIs

• 1.
  Introduction toLean AgileMetrics and KPIsYuval YeretSenior Lean/Agile Consultant @ [email protected]: 054-4802458
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  Brief IntroAgileSparks isa company that provides complete Agile/Scrum solutions and helps companies to improve project management, with emphasis on software and hardware development.Myself – Lean/Agile Consultant/Coach, coming from R&D leadership background, specializing in scaling agile through Lean. Find more about me at http://www.linkedin.com/in/yuvalyeret, my google profile
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  Taken from http://aplndc.pbworks.com/f/2009-05-Agile-Metrics.pdf
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  Measuring/Managing Organization PerformanceWhatare we here for?Do Agile?Develop software?Generate most “Value for R&D investment” in a sustainable way? $ for the shareholders?So how do we perform in a way that aligns with that?
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  Assumption – Agiledrives Delivery engineAgility  (1) Better Software Development  Better Business(1) Proven in industry-wide research (Cutter, Forrester, QSM), various enterprise companies (Yahoo, Google, Nokia, Salesforce, etc.)
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  Assumption – Agiledrives Delivery engineSo we…Measure Software Development  To Predict Business performanceMeasure Agility To Predict Software Development Performance(1) Proven in industry-wide research (Cutter, Forrester, QSM), various enterprise companies (Yahoo, Google, Nokia, Salesforce, etc.)
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  Taken from http://aplndc.pbworks.com/f/2009-05-Agile-Metrics.pdf
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  Lagging/Leading KPIs Which leadsus to KPIs – Key Performance IndicatorsThere are two major types of KPIs: leading and lagging indicators. Leading indicators measure activities that have a significant effect on future performance.
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  Lagging indicators, suchas most financial KPIs, measure the output of past activity.
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  Leading Agile IndicatorsUsewith Care!
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  Focus on beingreally READY and really DONEBeing READY READYreduces every category of work (defects, rework, total work required, and process overhead) by almost 50%160%/340% productivity improvementDONE DONE - “Build Quality into Sprints”Fix problems fastDon’t save quality issues for laterWith the right infrastructure and mindset, IMPROVES productivityBased on Lean/TOC principles…
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  Relevant MeasuresREADY READYLeading:Depth of READY backlog for teamsLagging: Story Flow / Process Cycle Efficiency (PCE) – time story actually worked on versus overall time story in processingActual Effort variance DONE DONEAverage Time to fix for defects (goal – hours-days)Average Time to fix for build failures (goal – minutes)Defects backlog across sprints (goal – 0)Development/Stabilization schedule ratio (~30% normally. 10% goal)
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  READY Leads toFlow and Productivity
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  Why focus on“Time to Fix Defects”Because Fixing bugs earlier is cheaperWhy?Early warning (broken/incompatible/conflicting) – faster pin-pointing of root cause and fixingEasy Revert and offline debugging – not in the critical pathSavings of ~10K$ for each bug found during sprinthttp://studios.thoughtworks.com/2007/5/10/continuous-integration-in-the-enterprise-with-cruisecontrolExample from a product in an Enterprise Portfolio – 40 escaping defects translate into 400,000$ (multiply per product per release)
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  Example Bug fixcosts per Maturity
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  Faster/Cheaper StabilizationPeriodIntegration problemsare detected and fixed continuously - no last minute hiatus before release datesLess cycles / retesting – Arriving to Packaging with higher quality/readinessProduct/PIL focus on Exploratory, Advanced scenarios sooner, and can finish fasterBetter predictability allows squeezing in more functionality until the last minuteSmoother and more predictable flow – shorter stopsMakes frequent release strategy more feasible financially
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  Stabilization Period implications
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  Release Burnup withand without CIShorterStabilization
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  Release Burnup withand without CIProductivityImprovement
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  Measures for EngPractices Maturity% Time build is broken% Time build is broken due to compilation errorsCome on…% Code CoverageBy Unit TestsBy Test AutomationCheckin early and oftenCheckin frequencySize of checkins (Smaller better)
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  Burndown + EVM
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  Agile Earned ValueMgmt
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  AgileEVM Metrics
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  Earned Business ValueAllocateBV points per minimally marketable feature (MMF)Track completion of BV pointsComplements AgileEVM
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  KPIsSo Agile MaturityScore as a KPI shouldBe aligned with the goal of being a more Agile. Be owned by each Product – who are accountable for the outcome of their effortsPredict successful software development delivering best business value for the buckProvide timely, actionable data, so users can intervene and improve performance BEFORE its too lateFocus on key high-value indicatorsEasy to understand – users should know how to drive for improved performanceBalanced with Velocity/Quality/Stakeholder satisfaction/other. Trigger positive outcomes in each group working with itStandardized scale across companyTargets/Objectives should be driven by context/situation of each groupReinforce performance by loosely connecting to incentive systems? Maybe just as a very low influence. Main driver for incentives should continue to be business/team performance meeting goals. Agile Maturity should drive thatStay relevant. Focus on areas which still need work, Add more measures for future objectives when become relevant
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  Be aligned withthe goal of being a more Agile company
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  Be owned byeach Product – who are accountable for the outcome of their efforts
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  Predict successful softwaredevelopment delivering best business value for the buck
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  Provide timely,actionable data, so users can intervene and improve performance BEFORE its too late
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  Focus on keyhigh-value indicators
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  Easy to understand– users should know how to drive for improved performance
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  Balanced with Velocity/Quality/Stakeholdersatisfaction/other.
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  Trigger positive outcomesin each group working with it
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  Standardized scaleacross company
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  Targets/Objectives should bedriven by context/situation of each group
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  Reinforce performance byloosely connecting to incentive systems?
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  Stay relevant. Focuson areas which still need work, Add more measures for future objectives when become relevant