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The Impact of Agile Quantified - Agile Australia 2014

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Larry Maccherone, Director of Analytics for Rally Software, presents: The Impact of Agile Quantified. The tools to find the real-world numbers that can help you make the economic case to get the …

Larry Maccherone, Director of Analytics for Rally Software, presents: The Impact of Agile Quantified. The tools to find the real-world numbers that can help you make the economic case to get the resources you need and get your people to commit to change. Learn more: http://www.rallydev.com/insights

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  • 1. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware
  • 2. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Lean-Agile city. This place runs on folklore, intuition, and anecdotes. If you want to know the truth about this town, stick with me. I’ll give you a tour you’ll never forget. But if you don’t want your beliefs challenged with facts, you’d better beat it, kid. I don’t want to upset you.
  • 3. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware My sidekick down there? That’s Larry Maccherone. He’s worked in this town his entire professional life.
  • 4. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware I’m going to give you the tools to find the real-world numbers that can help you make the economic case to get the resources you need and get your people to commit to change. Really. See? It says so right here: -
  • 5. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware
  • 6. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware The Seven Deadly Sins of Agile Measurement To avoid creating a monster, stay away from ... 11 Manipulating Others 22 Unbalanced Metrics 33 Quantitative Idolatry 4 Overpriced Metrics 5 Lazy Metrics 6 Bad Analysis 7 Linear Forecasting
  • 7. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Manipulating Others Sin #1 Using metrics as a lever to drive someone else’s behavior
  • 8. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Self Improvement Heavenly Virtue #1 Using metrics to reflect on your own performance
  • 9. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Linear Forecasting Sin #7 Forecasting without discussing probability and risk
  • 10. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Probability Tools Heavenly Virtue #7 Using the proper tools to predict the likelihood of results (Not likely)
  • 11. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Monte Carlo Simulation
  • 12. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Correlation does not necessarily mean causation CAUTION:
  • 13. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware CAUTION: Only good practices in context There are no best practices
  • 14. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware
  • 15. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware The investigation continues with ... Iteration length
  • 16. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Crowd wisdom or shared delusion? Iteration length Teams using 1 week 6.2% 2 weeks 59.1% 3 weeks 23.4% 4 weeks 9.8% 5+ weeks 1.5%
  • 17. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware
  • 18. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware
  • 19. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware SDPI current dimensions Productivity (Throughput) Predictability (Stability of Throughput) Responsiveness (Time in Process) Quality (Defect Density)
  • 20. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Future SDPI dimensions Customer/ Stakeholder Satisfaction (Late 2014) Build-the- Right- Thing metric (2015) Employee Engagement/ Satisfaction (Late 2014)
  • 21. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Raw metrics → Percentiles = Index
  • 22. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware The investigation continues with ... Iteration length
  • 23. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Overall Performance Relationship of Iteration Length to Overall Performance index score
  • 24. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Productivity Relationship of Iteration Length to Productivity index score
  • 25. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Quality Relationship of Iteration Length to Quality index score
  • 26. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Responsiveness Relationship of Iteration Length to Responsiveness index score
  • 27. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Responsiveness Relationship of Iteration Length Transition to Responsiveness index score
  • 28. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Overall Performance Relationship of Iteration Length Transition to SDPI Overall Performance
  • 29. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Facts Discovered: ● Teams using two-week iterations have the best balanced performance ● Longer iterations correlate with higher Quality ● Shorter iterations correlate with higher Productivity and Responsiveness ● However, some teams are acting like “tough guys” by pretending to operate at one- week iterations when they can’t back it up
  • 30. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware The investigation continues with ... Survey-based research
  • 31. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Teams represented in survey
  • 32. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Where in the world?
  • 33. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Where in the U.S.?
  • 34. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Where in the Europe?
  • 35. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware The investigation continues with ... Ratio of testers to developers
  • 36. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Testers per Developer The numbers
  • 37. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Productivity Relationship of Testers per Developer to Productivity index score
  • 38. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Quality Relationship of Testers per Developer to Quality index score
  • 39. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Responsiveness Relationship of Testers per Developer to Responsiveness index score
  • 40. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Predictability Relationship of Testers per Developer to Predictability index score
  • 41. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Facts Discovered: ● More testers lead to better Quality ● But they also generally lead to worse Productivity and Responsiveness ● Interestingly, teams that self- identify as having no testers have: ○ the best Productivity ○ almost as good Quality ○ but much wider variation in Quality
  • 42. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware The investigation continues with ... Motive
  • 43. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware
  • 44. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware
  • 45. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Evidence Found: ● Motive has a small but statistically significant impact on performance ● Extrinsic motivation does not have a negative impact on performance ● Executive support is critical for success with Agile. ● Teamwork is not the dominant factor; talent, skills, and experience are ● Those motivated by quality perform best
  • 46. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware The investigation continues with ... Co-location
  • 47. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware
  • 48. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Evidence Found: ● Teams distributed within the same time zone have up to 25% better productivity ● Is distraction a problem?
  • 49. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware The investigation continues with ... Geography
  • 50. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware
  • 51. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Israel-based teams ● Find more defects overall ● But find fewer in production ● Theory: May correlate with high use of static analysis tools ● Theory: Could be recording bias
  • 52. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Facts Discovered: ● Differences are slight but statistically significant ● Australia has the best overall performance ● India the worst. However, there could be a reporting bias for defects ● Israel seems to catch the most defects before production. Heavy use of static analysis? ● Recording bias worries?
  • 53. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware One year earlier ... rallydev.com/agilemetrics
  • 54. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Stable teams result in up to: ● 60% better Productivity ● 40% better Predictability ● 60% better Responsiveness Dedicated teams: Teams made up of people who only work on that one team have double the Productivity Smaller teams have better Productivity Larger teams have better Quality Teams with low WiP have up to: ● 4x better Quality ● 2x faster time-to-market ● But 34% worse productivity
  • 55. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware ● Demo of Rally Insights ○ Implements SDPI ● Roadmap ○ Self-assessment and tracking (surveys) ■ Two more dimensions ● Customer/Stakeholder Satisfaction ● Employee Engagement/Satisfaction ■ Probe your environment with customized surveys (maturity, practices compliance, etc.) ○ Recommendation Engine ■ What are the top five things we should improve next? What’s next?
  • 56. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware More research Over 55 variables under study
  • 57. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Start right now! ● Bring your completed card to the Rally booth for a free copy of the best-selling book, “Agile Business” ● Pick up a free poster ● Insights demo at 3:40pm ● Talk with me about “Metrics that Matter” at the 1:45pm Open Space ● Questions? Visit me and other Rally staff members at the Rally Booth. We’re in the bright red T-shirts.
  • 58. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware A fact without a theory is like a ship without a sail, is like a boat without a rudder, is like a kite without a tail. A fact without a figure is a tragic final act. But one thing worse in this universe is a theory without a fact. ~ George Schultz
  • 59. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware Replace Folklore with Facts Swap Anecdotes with Evidence Upgrade Intuition to Insights
  • 60. ©2014 Rally Software@LMaccherone | LMaccherone@rallydev.com | #AgileAus@RallySoftware