A balanced metrics set for software business
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I gave this presentation in Agile Saturday conference in Tallinn 2.2.2013. The focus is in how to, and why, choose the metrics that you use to guide your software business. It also presents the choice of F-Secure.
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A balanced metrics set for software business
- 1. A Balanced Metrics Set for Software Business This presentation is about how to choose the right metrics, not about how to implement them. Towo Toivola, Director, Quality of Operations, F-Secure Corporation Protecting the irreplaceable | f-secure.com
- 4. Why do you want to measure things? This is often not clear. To some people it seems measuring and having data has a value of its own.
- 5. Visibility! Metrics are powerful! ..both in good and bad. A fool with a powertool is a more dangerous fool.
- 6. The Most Common Screw-ups with Metrics • Be fond of metrics but understand little of them • Measure whatever is easy to measure • Produce a lot of data and leave it there • Make them superimportant before you have measurement in place • Measure everything! • Measure just one thing and focus all attention to it • Measure something because others are doing it • Tie people’s salary to arbitrary metrics targets • Manipulate metrics and results (or make others do that) • Refuse to accept metrics results • Can you think of more? February 6 © F-Secure Confidential 11, 2013
- 7. The whole point of metrics is the amount and quality of action taken based on them. February 11, 7 © F-Secure Confidential 2013
- 8. The whole point of metrics is the amount and quality of action taken based on them. Doers 8 2013-02-01 © F-Secure Confidential
- 9. You Want Useful Metrics To be useful means being.. • Practical (easy and cheap to measure) • Overarching (holistic, the purpose more than just the potential means) • Actionable, insightful (gives clues to ’Why’ and ’What to do about this’) • Responsive to action (not too much lag) • Accurate and trustworthy (you can rely on the information) February 11, 9 © F-Secure Confidential 2013
- 10. The Problem February 11, 10 © F-Secure Confidential 2013
- 11. Holistic Financials Staff Value Net Promoter engagement Throughput Score Development Work in lead time progress Utilization Bug count Work time Work hours usage efficiency Lines of code Ease of measurement Accuracy Lag Clueness
- 12. Accuracy Lines of code Financials Work hours Utilization Developme Bug count nt lead time Work in Staff Work time engagement progress usage efficiency Net Promoter Score Value Throughput Lag
- 13. Holistic Financials Value Net Promoter Throughput Staff Score engagement Development Work in lead time progress Work time Bug count usage efficiency Utilization Lines of code Work hours Insightful
- 14. Trustworthy You need to get this right regardless of the chosen metrics Thanks: thettablog.blogspot.fi + = + + = February 14 © F-Secure Confidential 11, 2013
- 15. February 11, 15 © F-Secure Confidential 2013
- 16. Naturally. Unbeatably: Unfortunately: Accurate Lagging Holistic Not insightful February 16 © F-Secure Confidential 11, 2013
- 17. Since we develop software: - Bug count - Codebase - etc. But: Accurate Very local, Responsive means to an end Easy to measure only Insightful February 11, 17 © F-Secure Confidential 2013
- 18. To care for our people and culture: Staff engagement Holistic Easy to measure To comply with the law: Work hours Accurate Responsive Required February 18 © F-Secure Confidential 11, 2013
- 19. A multi-level metrics system February 11, 19 © F-Secure Confidential 2013
- 20. Lead Time Value Throughput (speed) (amount) Flow of Value Amount of Days We need to know. Net Promoter Score Work In Progress (quality) (sunken investment) Width of smile The unfinished things
- 21. Lead Time Value Throughput 10 8 How much 6 customer value Product3 4 2 do we produce? Product2 Product1 0 We need to know. Net Promoter Score Work in Progress 30 How our 20 How much does Business3 customers 10 our BL contributeBusiness2 experience 0 to company Business1 our success? 1Q12 2Q12 3Q12 4Q12 products?
- 22. € NPS VT LT WIP Why? More insightful than financials More responsive than financials More holistic than typical low-level metrics Accurate enough to be very useful Practical enough to measure They support each other February 22 © F-Secure Confidential 11, 2013
- 23. So.. Financial KPI Operational KPI People KPI Variety of lower-level precision metrics used locally February 23 © F-Secure Confidential 11, 2013
- 24. Thank you for your time. I hope we have interesting questions and time to discuss them. February 24 © F-Secure Confidential 11, 2013
- 26. Net Work in Promoter Value Staff progres Work time Developme Score Throughputengagemen time s Utilization usage nt leadBug count Financials t Lines of Work hours efficiency Accuracy Lag Clueness Ease of code Holisticity measurement
Editor's Notes
- About950 peopleworld-wide, about350 in R&D. HQ inHelsinki, 5-6 DCs.Internetsecurity software, backup, sync, othersMillions and millions of end-users
- I willattempt to speak in straightforwardplainlanguage.I willdosomegeneralization andstereotyping to make the messagecrisper. I am alsoattempting to keepyouawake. Somemaygetupset. Thismaybegood as well.Whenever I use a termthatyoudon’tunderstandorotherwisesaysomethingthatsoundsstrange, pleaseask for clarification.I believethatwewillgainmost out of a interactive session, sofeelencouraged to raiseyourhand and interrupt. I willreserve the right to police the situationhowever.
- Image sources: Gauges http://community.devexpress.com/blogs/thinking/archive/2008/05/22/the-gauge.aspxTuning: http://www.astro-baby.com/collimation/astro%20babys%20collimation%20guide.htmAnalysis: http://www.researchrockstar.com/market-research-challenge-analysis-bias/Reality: http://venturebeat.com/2010/12/22/forrester-most-augmented-reality-companies-not-doing-augmented-reality/Expert: http://pinterest.com/seoxpertaus/Leaders: http://mbahighway.com/2012/02/5-leadership-qualities-you-can-develop-to-help-you-get-promoted/Doers: http://referencement-blog.blogspot.fi/2011/07/how-to-build-successful-work-team-in.html
- The data on the page is bogus. It is there for demonstration purposes only.Remember to mention that these are the “New company metrics for Business Lines”Lead Time: From business decision (internal commitment) to first customer delivery (to production). Exact gates may vary in Business LinesValue throughput: Combined business case contribution of releases that went in production at a customer that quarter. Measured as contribution to business case at the time of release (state: Ready for customer deployment). Note that we measure customer value in euros, since we make the assumption that customers are only willing to pay for things that are valuable for them and because any other measure seems too artificial. This also gives us the possibility to verify business plansNPS: Average of the NPS:s for all the products and customer/user segments of a Business Line.
- The data on the page is bogus. It is there for demonstration purposes only.Lead Time: From business decision (internal commitment) to first customer delivery (to production). Exact gates may vary in Business LinesValue throughput: Combined business case contribution of releases that went in production at a customer that quarter. Measured as contribution to business case at the time of release (state: Ready for customer deployment). Note that we measure customer value in euros, since we make the assumption that customers are only willing to pay for things that are valuable for them and because any other measure seems too artificial. This also gives us the possibility to verify business plansNPS: Average of the NPS:s for all the products and customer/user segments of a Business Line.