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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
Kevin Burns
Coach
Org Change Agent
kburns@sagesw.com, @kevinbburns 2
History and Experience
kburns@sagesw.com, @kevinbburns 3
kburns@sagesw.com, @kevinbburns 4
Robert M. Pirsig September 6, 1928 – April 24, 2017
Before we start…
Who wants to share their favorite
Pirsig quote?
kburns@sagesw.com, @kevinbburns 5
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
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
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)?
kburns@sagesw.com, @kevinbburns 9
kburns@sagesw.com, @kevinbburns 10
kburns@sagesw.com, @kevinbburns 11
kburns@sagesw.com, @kevinbburns 12
kburns@sagesw.com, @kevinbburns 13
kburns@sagesw.com, @kevinbburns 14
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
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
And what is good,
Phaedrus,
And what is not good –
Need we ask anyone to
tell us these things?
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
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
kburns@sagesw.com, @kevinbburns 20
kburns@sagesw.com, @kevinbburns 21
kburns@sagesw.com, @kevinbburns 22
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
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.
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.
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.
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.
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.
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
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
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
kburns@sagesw.com, @kevinbburns 32
Quality
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
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
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
Impact-Drive Development
kburns@sagesw.com, @kevinbburns 36
kburns@sagesw.com, @kevinbburns 37
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
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
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
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
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
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
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
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
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
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
How to measure anything – Douglas Hubbard
http://www.howtomeasureanything.com/
kburns@sagesw.com, @kevinbburns 48
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
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
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
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
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.
Tools
http://www.howtomeasureanything.com/
kburns@sagesw.com, @kevinbburns 54
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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How do we know we're delivering value? Twin Cities Agile Meetup May 9, 2017

  • 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. Kevin Burns Coach Org Change Agent kburns@sagesw.com, @kevinbburns 2
  • 4. kburns@sagesw.com, @kevinbburns 4 Robert M. Pirsig September 6, 1928 – April 24, 2017
  • 5. Before we start… Who wants to share their favorite Pirsig quote? kburns@sagesw.com, @kevinbburns 5
  • 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. 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. 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)?
  • 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. 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 And what is good, Phaedrus, And what is not good – Need we ask anyone to tell us these things?
  • 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. 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
  • 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. 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. 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. 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. 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. 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. 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. 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. 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
  • 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. 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. 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
  • 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. How to measure anything – Douglas Hubbard http://www.howtomeasureanything.com/ kburns@sagesw.com, @kevinbburns 48
  • 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. 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. 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. 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. 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.
  • 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