Agile Metrics, Value, and Software Don McGreal don.mcgreal@improvingenterprises.com @donmcgreal linkedin.com/in/donmcgreal

Agenda Types of Metrics Problems with Metrics Metrics in Software Development Evidence-Based Management Questions © 2008-2014 Improving Enterprises, Inc.

How do you measure progress on your software projects? How about value?

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

Circumstantial Direct 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

Circumstantial Direct Software 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

So what? 3 Challenges

1. Efficiency Cargo Cults

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

2. Vision Are we aligned?

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

3. Incentive Suboptimal Metrics measurement indicators Performance Source: Robert D. Austin, Measuring and Managing Performance in Organizations measurement indicators Performance true performance Time

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.

Circumstantial Direct 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

Circumstantial Direct Who? Software 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

Agile Development

Teams Have Organizational Impediments management Copyright Scrum.org 2013

Management Makes Investments impediments management training, coaching, infrastructure, tools, facilities But how do we know these investments are making a difference? Copyright Scrum.org 2013

Evidence Based Medicine Frame a proper, pertinent, focused, and answerable question Systematically assemble best available evidence Clinically appraise evidence for validity and usefulness Apply results in practice of the art Evaluate performance

Evidence Based Management http://www.ebmgt.org/

Evidence Based Management Revenue per Employee Release Frequency Installed Version Index Product Cost Ratio Usage Index Release Stabilization Employee Satisfaction Innovation Rate Cycle Time Customer Satisfaction Defects Current Value Time to Market Ability to Innovate

Evidence Based Management Diagnose Direct Evidence Circumstantial Evidence Improve

Tracking Metrics

Tracking Metrics

Tracking Metrics Sales Employee Satisfaction

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.

Thank You! Don McGreal don.mcgreal@improvingenterprises.com linkedin.com/in/donmcgreal

www.synerzip.com Hemant Elhence hemant@synerzip.com 469.322.0349 84 28

Synerzip in a Nutshell 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 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 Actually reduces risk of development/delivery Experienced team - uses appropriate level of engineering discipline Practices Agile development – responsive, yet disciplined Reduces cost – dual-shore team, 50% cost advantage Offers long term flexibility – allows (facilitates) taking offshore team captive – aka “BOT” option 29 29

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