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How do we know we're delivering value? Twin Cities Agile Meetup May 9, 2017

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In honor of Robert M. Pirsig, Kevin gave a chautauqua on value, quality, and making a difference at the Twin Cities Agile Meetup Group meeting May 9th, 2017

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How do we know we're delivering value? Twin Cities Agile Meetup May 9, 2017

  1. 1. How do we know we’re delivering value or having a beneficial impact? In honor of Robert M. Pirsig, let’s have a Chautauqua on value, quality, and making a difference. Presented by Kevin Burns May 9, 2017
  2. 2. Kevin Burns Coach Org Change Agent kburns@sagesw.com, @kevinbburns 2
  3. 3. History and Experience kburns@sagesw.com, @kevinbburns 3
  4. 4. kburns@sagesw.com, @kevinbburns 4 Robert M. Pirsig September 6, 1928 – April 24, 2017
  5. 5. Before we start… Who wants to share their favorite Pirsig quote? kburns@sagesw.com, @kevinbburns 5
  6. 6. kburns@sagesw.com, @kevinbburns 6 The place to improve the world is first in one's own heart and head and hands, and then work outward from there. - Robert M. Pirsig
  7. 7. The only Zen you can find on the tops of mountains is the Zen you bring up there. - Robert M. Pirsig kburns@sagesw.com, @kevinbburns 7
  8. 8. Open Discussion WHO’s measuring value, outcomes, and/or impacts today? HOW are you measuring them? If you’re NOT measuring them, WHY NOT? WHAT’S STOPPING YOU? WHO’s measuring cost? HOW are you measuring cost? kburns@sagesw.com, @kevinbburns 8 Are you part of the GEMBA (value chain)?
  9. 9. kburns@sagesw.com, @kevinbburns 9
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  15. 15. Agile Principle Number One Our highest priority is to satisfy the customer through early and continuous delivery of valuable software. (should we change valuable to beneficial impact?) How do we define value (impact) [or quality] … how do we measure it? Not all Projects (or Features) are created equal. kburns@sagesw.com, @kevinbburns 15
  16. 16. Is value determined by delivery on time, on budget, and on scope? Are they using everything we delivered? kburns@sagesw.com, @kevinbburns 16 Is the scope delighting the customer?
  17. 17. 17 And what is good, Phaedrus, And what is not good – Need we ask anyone to tell us these things?
  18. 18. In a survey of 4 products, 65% of the features were rarely or never used. How much money could have been saved if we never built them? kburns@sagesw.com, @kevinbburns 18
  19. 19. If I had an hour to solve a problem and my life depended on the solution, I would spend the first 55 minutes determining the proper question to ask, for once I know the proper question, I could solve the problem in less than five minutes. kburns@sagesw.com, @kevinbburns 19 Albert Einstein
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  22. 22. kburns@sagesw.com, @kevinbburns 22
  23. 23. Didactic and binary challenge kburns@sagesw.com, @kevinbburns 23 Esthetic vs Classical Artistic vs Technological Subjective vs Objective Metaphysic vs Scientific Methos vs Logos (myth vs logic) Mind vs Matter Dialogue vs Rhetoric Plutonic vs Socratic 0 vs 1
  24. 24. Pheadrus changed view of Reality to be Quality First kburns@sagesw.com, @kevinbburns 24 Reality Quality Pheadrus was teaching Quality Pheadrus should be teaching Romantic (Emotional)Classic (Intellectual) Objective (Physical)Subjective (Mental) Quality (Reality) Objective Reality (Matter) Subjective Reality (Mind) Classic Quality (Intellectual Reality) Romantic Quality (Preintellectual Reality) Zen and the art of motorcycle maintenance page 223.
  25. 25. Pirsig in pursuit of Truth What is the truth and how do you know it when you have it? . . . How do we really ‘know’ anything? Is there an “I,” a “soul,” which knows, or is this soul merely cells coordinating senses? . . . Is reality basically changing, or is it fixed and permanent? . . . When it’s said that something means something, what’s meant by that? kburns@sagesw.com, @kevinbburns 25Zen and the art of motorcycle maintenance page 112.
  26. 26. Quality is no longer The Problem Phaedrus became comfortable with the fact that quality isn’t definable. It’s something intuitive. Not of the scientific world nor the esthetic world. Neither classic nor artistic. Neither mind nor matter. The new problem became analysis itself. He found a problem with logic and rational thought. In order for us to be able to reason, we need to be able to define things. Without definition, there can’t be reason. If we can’t define Quality, we have a problem with Analysis. kburns@sagesw.com, @kevinbburns 26Zen and the art of motorcycle maintenance page 196.
  27. 27. Is Quality subjective? Is Truth Relative? Are Facts Alternative? kburns@sagesw.com, @kevinbburns 27Zen and the art of motorcycle maintenance page205-223. “Does this undefined ‘quality’ of yours exist in the things we observe?” they asked, “Or is it subjective, existing only in the observer?” Therefore, quality is just a fancy name for what every you like. Is what we like truly subjective or has it been programed by society? Quality is neither subjective nor objective. If it’s defined by the Observer, where did the observer get his/her thoughts…from society? It’s monism. It’s above mind and matter.
  28. 28. Pirsig’s Scientific Method 1. Statement of the problem, 2. Hypothesis as to the cause of the problem, 3. Experiments designed to test each hypothesis, 4. Predict results of the experiments, 5. Observed results of the experiments, and 6. Conclusions from the results of the experiments, The real purpose of scientific method is to make sure Nature hasn’t misled you into thinking you know something you don’t actually know. kburns@sagesw.com, @kevinbburns 28Zen and the art of motorcycle maintenance page 93.
  29. 29. kburns@sagesw.com, @kevinbburns 29 It is a puzzling thing. The truth knocks on the door and you say, "Go away, I'm looking for the truth," and so it goes away. Puzzling. - Robert M. Pirsig
  30. 30. Assumptions Challenged • 3 things we wish were true • Customer knows what they want • Developers know how to build it • Nothing will change along the way • 3 things we have to live with • Impact isn’t known until software is used in production • Developers discover how to build it • Many things change along the way kburns@sagesw.com, @kevinbburns 30
  31. 31. Marty Cagan Quotes • Customers don’t know what they want. It’s very hard to envision the solution you want without actually seeing it. • Like Phaedrus’ quality…it’s not definable but they know it when they see it. • At least 2/3 of our ideas are never going to work. The other 1/3 will take 3-4 iterations to get right. • Phaedrus too iterated, he called it crystallization of thought and reason in the pursuit of Truth. • The role of the product manager is to discover a product that is valuable, usable, and feasible. Product, design, and engineering work together to arrive at optimal solution. kburns@sagesw.com, @kevinbburns 31
  32. 32. kburns@sagesw.com, @kevinbburns 32 Quality
  33. 33. What we measure is changing Business Customer PO, SM, BL Software Engineering AD, DD, DA User UX, BA, QA, SME Business Valuable Design Usable Technically Feasible INNOVATIVE SOLUTION kburns@sagesw.com, @kevinbburns 33
  34. 34. Lean Startup • Are we asking what are Minimum Viable (Valuable) Product and how do we know when we’ve delivered it? • Use a scientific method to measure, learn and pivot or preserver. • Use meaningful quantitative objective measure to evaluate impact. • Can you use A/B testing? kburns@sagesw.com, @kevinbburns 34
  35. 35. MVP Innovation User UX, BA, QA, SME Business Valuable Design Usable Software Engineering AD, DD, DA Business Customer PO, SM, BL Use scientific method (measurable) to learn and discovery your Minimum Viable (Valuable) Product (MVP) Technically Feasible MVP innovations emerge from Conversations kburns@sagesw.com, @kevinbburns 35
  36. 36. Impact-Drive Development kburns@sagesw.com, @kevinbburns 36
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  38. 38. Value and/or Impact driven culture • Are we measuring the Cost vs Benefit at all levels of our work items? • Portfolio • Program • Project • Feature/Capability • Story/Requirement • Tasks/Test • Are we measuring the Impact our features have on our customers? • The act of sizing helps us define done and what the really valuable work is • Using story telling and test statements create understanding of value and DoD kburns@sagesw.com, @kevinbburns 38
  39. 39. Multi-month Monthly 2-weeks Leadership T-Shirt Sizing X-S 1 Sprint S <1 month M 1-3 months L 3-9 months X-L >9 months Team Planning-Poker Fibonacci Sizing (1,2,3,5,8,13,20,40,100) Team task hours to capacity (2,4,6) Solution Decomposition Sizing Pattern Sizing our Cost The act of sizing helps us understand what’s valuable to deliver. Scope doesn’t grow, our understanding does. kburns@sagesw.com, @kevinbburns 39
  40. 40. Deliver 100% of 10% of Project • Can we incrementally deliver value and test it’s impact? • Can we create incremental release plans to deliver 100% of 10% of project? • What constraints do we have in working this way? • Can we overcome or work within these constraints and still deliver incrementally? • What/who is preventing this approach? kburns@sagesw.com, @kevinbburns 40
  41. 41. Create Faster Feedback • When queues and batch sizes are large feedback is slow • Slow feedback hurts quality, efficiency, and cycle time • Feedback speed has enormous economic leverage in product development, but it is rarely explicitly managed kburns@sagesw.com, @kevinbburns 41
  42. 42. The Front-Loaded Lottery • A lottery ticket pays $3000 to winning three digit number • You can pick the number in two ways: • Pay $3 to select all three digits at once • Pay $1 for the first digit, find out if it is correct, then choose if you wish to pay $1 for the second digit, and then choose if you wish to pay $1 for the third digit. kburns@sagesw.com, @kevinbburns 42
  43. 43. Value of Feedback 100% Spend $1 Savings = $0.90 Savings = $0.99 10% 1% 0 $1 $2 $3 Probability of Occurrence Cumulative Investmentkburns@sagesw.com, @kevinbburns 43
  44. 44. Sequence Work Correctly (Cost of Delay) • The sequence in which work is processed is called the queuing discipline • By changing the queuing discipline we can reduce the cost of a queue without decreasing the size of the queue • Since manufacturing has homogeneous flows it always uses FIFO (First-In-First-Out) • For the non-homogeneous flows of product development other approaches have better economics kburns@sagesw.com, @kevinbburns 44
  45. 45. Use FIFO for Homogeneous Flow First-In First-Out Cost of Delay 1 2 3 A B Time Cost Delay Cost Last-In First-Out Cost of Delay 1 2 3 A B Time Cost Project Duration Cost of Delay 1 3 3 2 3 3 3 3 3 kburns@sagesw.com, @kevinbburns 45
  46. 46. Weighted Shortest Job First (WSJF) for Non-homogenous flow High Weight First Cost of Delay 1 2 3 A B Time Cost Delay Cost Low Weight First Cost of Delay A B Time Cost Project Duration Cost of Delay Weight = COD/Duration 1 1 10 10 2 3 3 1 3 10 1 0.1 1 2 3 160 7 96 % Reduction in COD kburns@sagesw.com, @kevinbburns 46
  47. 47. Paul Ellarby example 1. Create Method for measuring Value 2. Understand the value and cost of each portfolio down to the feature level 3. Allocate Value Points across feature/capabilities 4. Track Value vs Cost for each iteration https://www.thoughtworks.com/insights/blog/how-do-you-measure-value kburns@sagesw.com, @kevinbburns 47
  48. 48. How to measure anything – Douglas Hubbard http://www.howtomeasureanything.com/ kburns@sagesw.com, @kevinbburns 48
  49. 49. Measurement Basics • A measurement is an observation that quantitatively reduces uncertainty. Measurements might not yield precise, certain judgments, but they do reduce your uncertainty. • A good object of measurement is something that is clearly defined and it’s observable. • Uncertainty is the lack of certainty: the true outcome/state/value is not known. • Risk is a state of uncertainty in which some of the possibilities involve a loss. • Much pessimism about measurement comes from a lack of experience making measurements. Hubbard, who is far more experienced with measurement than his readers, says: • Your problem is not as unique as you think. • You have more data than you think. • You need less data than you think. • An adequate amount of new data is more accessible than you think. kburns@sagesw.com, @kevinbburns 49 Douglas Hubbard
  50. 50. Apply Information Economics for Decision-making Define Define a decision problem and the relevant variables. Determine Determine what you know and don’t know but want to find-out. Pick Pick a variable, and compute the value of additional information for that variable. Apply Apply the relevant measurement instrument(s) to value variable. Make Make a decision and act on it. kburns@sagesw.com, @kevinbburns 50 Douglas Hubbard
  51. 51. Selecting a measurement method To figure out which category of measurement methods are appropriate for a particular case, we must ask several questions: 1. Decomposition: Which parts of the thing are we uncertain about? 2. Secondary research: How has the thing (or its parts) been measured by others? 3. Observation: How do the identified observables lend themselves to measurement? 4. Measure just enough: How much do we need to measure it? 5. Consider the error: How might our observations be misleading? Douglas Hubbard
  52. 52. Contra thinking • Change as Rest • Failure as Excellence • Difference as Balance • Start as Destination • Phaedrus, sometimes it’s better to travel than arrive. Carol Company philosophy
  53. 53. Ask yourself daily… • Did I add value to the team? • Did I add shareholder/stakeholder value? • Do I believe in the mission/vision? • Do I like the people I’m working with? • Am I growing personally and professionally? The more ‘no’ answers you provide to the above questions, the faster you should head for the door.
  54. 54. Tools http://www.howtomeasureanything.com/ kburns@sagesw.com, @kevinbburns 54
  55. 55. Questions & Next Steps • How many of us know what business/user outcomes and impacts we’re trying to achieve on our projects? • Do you have metrics in place to evaluation our progress/success outcomes and impacts? • Who want’s help creating some objective measures? • Where do we go from here? kburns@sagesw.com, @kevinbburns 55

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