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by Scrum.org – Improving the Profession of Software Development
Evidence-Based Managing of Software
Measure  Focus  Chan...
2© 1993-2014 Scrum.org, All Rights Reserved
MIN
3
How would you describe your contribution to the wonderful act of
softwar...
3© 1993-2014 Scrum.org, All Rights Reserved
Backlog
• The State of Agile
• The Act of Managing
• Evidence of Agility
4© 1993-2014 Scrum.org, All Rights Reserved
The State of Agile
Evidence-Based Managing of Software
I promise not to exclud...
5© 1993-2014 Scrum.org, All Rights Reserved
MIN
3
Raise your hand if:
• You are Agile?
• You are becoming Agile?
• You hav...
6© 1993-2014 Scrum.org, All Rights Reserved
A Craze During the First Decade of Agile?
scrum·pede/skrʌmˈpiːd/
1. Sudden fre...
7© 1993-2014 Scrum.org, All Rights Reserved
How Some May Recognize Scrum
8© 1993-2014 Scrum.org, All Rights Reserved
How Some In The Industry See Scrum
9© 1993-2014 Scrum.org, All Rights Reserved
How Others Know Scrum and Agile
10© 1993-2014 Scrum.org, All Rights Reserved
In The Meantime
Software has become critical to business and society.
The gro...
11© 1993-2014 Scrum.org, All Rights Reserved
Agile as the Driver to Business Success
• Not quantified or proven
• Some are...
12© 1993-2014 Scrum.org, All Rights Reserved
What I Thought Scrum Was About
Framing the creativity of people to
solve comp...
13© 1993-2014 Scrum.org, All Rights Reserved
Agility is the ‘Why’ of Scrum
• Agility is the state envisioned by moving to ...
14© 1993-2014 Scrum.org, All Rights Reserved
• The Agile movement has achieved much
• Much potential remains unused, a pot...
15© 1993-2014 Scrum.org, All Rights Reserved
The Act of Managing
Evidence-Based Managing of Software
16© 1993-2014 Scrum.org, All Rights Reserved
An Endangered Species
Have you also heard?
“Managers are useless and not
need...
17© 1993-2014 Scrum.org, All Rights Reserved
How IT Budgets Are Typically Managed
• IT is a cost center.
• Software develo...
18© 1993-2014 Scrum.org, All Rights Reserved
How Scrum Is Typically Managed
• Scrum is the new methodological flavor for
d...
20© 1993-2014 Scrum.org, All Rights Reserved
Back To The Drawing Board
Remember?
“Our highest priority is to satisfy the
c...
21© 1993-2014 Scrum.org, All Rights Reserved
A Matter of Managerial Culture
Evidence-Based Management
(“EBM”):
• Roots in ...
22© 1993-2014 Scrum.org, All Rights Reserved
Evidence Broadly Construed
• Anything presented in support of an assertion
• ...
23© 1993-2014 Scrum.org, All Rights Reserved
What Type of Evidence?
 Circumstantial
 Direct
24© 1993-2014 Scrum.org, All Rights Reserved
What Type of Evidence?
 Circumstantial
 Direct
25© 1993-2014 Scrum.org, All Rights Reserved
What Type of Evidence?
 Circumstantial
 Direct
26© 1993-2014 Scrum.org, All Rights Reserved
What Type of Evidence?
 Circumstantial
 Direct
27© 1993-2014 Scrum.org, All Rights Reserved
• Software is not a cost, but has an essential
position in the value an organ...
28© 1993-2014 Scrum.org, All Rights Reserved
Evidence of Agility
Evidence-Based Managing of Software
Not everything that c...
29© 1993-2014 Scrum.org, All Rights Reserved
What if we added evidence to
opinion, intuition and best practice?
31© 1993-2014 Scrum.org, All Rights Reserved
What Type of Evidence?
 Circumstantial
 Direct
• What’s your development pr...
32© 1993-2014 Scrum.org, All Rights Reserved
Collect direct evidence, i.e. evidence
on the outcome of the work, to drive
y...
33© 1993-2014 Scrum.org, All Rights Reserved
Perspectives to Direct Evidence of Value
34© 1993-2014 Scrum.org, All Rights Reserved
Current Value Ability to InnovateTime to Market
Direct Evidence Of Value
Rele...
35© 1993-2014 Scrum.org, All Rights Reserved
Evolution of Direct Evidence
36© 1993-2014 Scrum.org, All Rights Reserved
Using Direct Evidence
Direct
Evidence
Circumstantial
Evidence
Measure
Change
...
37© 1993-2014 Scrum.org, All Rights Reserved
Evaluate Investments Against Direct Outcomes
38© 1993-2014 Scrum.org, All Rights Reserved
Circumstantial Evidence Is Supportive, Secondary
• Adapting organizational pr...
39© 1993-2014 Scrum.org, All Rights Reserved
The People’s Financial Group is a strong retail bank with 1500
branches, 3800...
40© 1993-2014 Scrum.org, All Rights Reserved
MIN
Productivity Is High 2
Yet, the IT development manager reports an impress...
41© 1993-2014 Scrum.org, All Rights Reserved
MIN
Where’s The Value? 2
At the next board meeting however:
• The VP of produ...
42© 1993-2014 Scrum.org, All Rights Reserved
MIN
Take A Hunch At The Actions PFG Should Take 5
43© 1993-2014 Scrum.org, All Rights Reserved
Case Closed?
Have you also heard?
“Managers are useless and not
needed in Agi...
44© 1993-2014 Scrum.org, All Rights Reserved
Evidence-based Management Organizations
• Make better investments
• Generate ...
45© 1993-2014 Scrum.org, All Rights Reserved
Closing
Evidence-Based Management of Software
The future state of Scrum will ...
46© 1993-2014 Scrum.org, All Rights Reserved
About
Gunther Verheyen
• eXtreme Programming and Scrum
since 2003
• Professio...
47© 1993-2014 Scrum.org, All Rights Reserved
Connect with the Scrum.org community
Twitter
@scrumdotorg
LinkedIn
LinkedIn.c...
48© 1993-2014 Scrum.org, All Rights Reserved
Thank you
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Evidence-Based Managing of Software (Scrum Day Denmark)

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Opening keynote at the first Scrum Day Denmark, in Hellerup (Copenhagen) on June 17 2014.
The topic was "Evidence-Based Managing of Software"

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Evidence-Based Managing of Software (Scrum Day Denmark)

  1. 1. by Scrum.org – Improving the Profession of Software Development Evidence-Based Managing of Software Measure  Focus  Change Gunther Verheyen Directing the Professional Series Scrum.org Scrum Day Denmark København June 17, 2014
  2. 2. 2© 1993-2014 Scrum.org, All Rights Reserved MIN 3 How would you describe your contribution to the wonderful act of software creation? Raise your hand if it is: • Coding • Testing • Architecting • Designing • Analyzing • Documenting • Coaching • Managing Short Survey About You Thank you for thinking in terms of activities and (multiple) skills, not titles and positions.
  3. 3. 3© 1993-2014 Scrum.org, All Rights Reserved Backlog • The State of Agile • The Act of Managing • Evidence of Agility
  4. 4. 4© 1993-2014 Scrum.org, All Rights Reserved The State of Agile Evidence-Based Managing of Software I promise not to exclude from consideration any idea based on its source, but to consider ideas across schools and heritages in order to find the ones that best suit the current situation. - The oath of non-allegiance (Alistair Cockburn)
  5. 5. 5© 1993-2014 Scrum.org, All Rights Reserved MIN 3 Raise your hand if: • You are Agile? • You are becoming Agile? • You have been told to be Agile and are going to start soon? • Agile is not in your immediate horizon? or: • You have done Agile but discovered it was a fad*? Where Are You On Your Journey? *Fad: a practice or interest followed for a time with exaggerated zeal
  6. 6. 6© 1993-2014 Scrum.org, All Rights Reserved A Craze During the First Decade of Agile? scrum·pede/skrʌmˈpiːd/ 1. Sudden frenzied rush of (panic–stricken) companies to do Scrum because they want to be Agile, too. 2. To flee in a headlong rush back to prescriptive ways of doing things because Scrum is hard work.
  7. 7. 7© 1993-2014 Scrum.org, All Rights Reserved How Some May Recognize Scrum
  8. 8. 8© 1993-2014 Scrum.org, All Rights Reserved How Some In The Industry See Scrum
  9. 9. 9© 1993-2014 Scrum.org, All Rights Reserved How Others Know Scrum and Agile
  10. 10. 10© 1993-2014 Scrum.org, All Rights Reserved In The Meantime Software has become critical to business and society. The growing demands of our population and society require: • Software to weave it together • Greater efficiencies • Profoundly more complex infrastructure
  11. 11. 11© 1993-2014 Scrum.org, All Rights Reserved Agile as the Driver to Business Success • Not quantified or proven • Some are seeing Agile as faddish • A money rush is on • Values and principles are being discarded Because the correlation between agile values and principles and business value is not established, it has disappeared into a flurry of buzzwords and fads.
  12. 12. 12© 1993-2014 Scrum.org, All Rights Reserved What I Thought Scrum Was About Framing the creativity of people to solve complex problems using • Discovery, • Experimentation-based learning, and • Collaboration through • Short, high value iterations, • Self-organizing, cross-functional teams, and • High visibility. With its distinct rules, Scrum is an actionable way to shift to the Agile paradigm for software development.
  13. 13. 13© 1993-2014 Scrum.org, All Rights Reserved Agility is the ‘Why’ of Scrum • Agility is the state envisioned by moving to Agile processes; a state of constant change, evolution, innovation, improvement and re-invention. • Agility is the capability to respond to challenges, change direction, take advantage of opportunities, cause change. React Explore (options) Lead
  14. 14. 14© 1993-2014 Scrum.org, All Rights Reserved • The Agile movement has achieved much • Much potential remains unused, a potential that resides much in the values of Agile • The challenges imposed on software development keep increasing Take Aways
  15. 15. 15© 1993-2014 Scrum.org, All Rights Reserved The Act of Managing Evidence-Based Managing of Software
  16. 16. 16© 1993-2014 Scrum.org, All Rights Reserved An Endangered Species Have you also heard? “Managers are useless and not needed in Agile.” I wonder…
  17. 17. 17© 1993-2014 Scrum.org, All Rights Reserved How IT Budgets Are Typically Managed • IT is a cost center. • Software development is an expense, some of which may be capitalized. • Expenditures are ‘managed’ through projects. Success = f { Planned_Time, Predicted_Scope, Allocated_Budget }
  18. 18. 18© 1993-2014 Scrum.org, All Rights Reserved How Scrum Is Typically Managed • Scrum is the new methodological flavor for delivery from IT to business. • Delivery is done through projects. But we now measure and compare at the team level, no longer the individual’s level. • The goal = more Scrum. Success = f { Practices, Velocity, Performance }
  19. 19. 20© 1993-2014 Scrum.org, All Rights Reserved Back To The Drawing Board Remember? “Our highest priority is to satisfy the customer through early and continuous delivery of valuable software.” How is that for a purpose?
  20. 20. 21© 1993-2014 Scrum.org, All Rights Reserved A Matter of Managerial Culture Evidence-Based Management (“EBM”): • Roots in medical practice. • The application of direct, objective evidence to make decisions. • For software organizations, EBM is employed to maximize the value of software to the organization.
  21. 21. 22© 1993-2014 Scrum.org, All Rights Reserved Evidence Broadly Construed • Anything presented in support of an assertion • Strongest evidence provides direct proof the assertion is false/true • Weakest evidence is circumstantial – Is merely consistent with the assertion – Doesn’t rule out contradictory assertions
  22. 22. 23© 1993-2014 Scrum.org, All Rights Reserved What Type of Evidence?  Circumstantial  Direct
  23. 23. 24© 1993-2014 Scrum.org, All Rights Reserved What Type of Evidence?  Circumstantial  Direct
  24. 24. 25© 1993-2014 Scrum.org, All Rights Reserved What Type of Evidence?  Circumstantial  Direct
  25. 25. 26© 1993-2014 Scrum.org, All Rights Reserved What Type of Evidence?  Circumstantial  Direct
  26. 26. 27© 1993-2014 Scrum.org, All Rights Reserved • Software is not a cost, but has an essential position in the value an organization can generate • Given its importance, managing software serves to maximize its value to our organizations • Evidence is to be preferred over opinions when managing the software and the value it represents to the organization Take Aways
  27. 27. 28© 1993-2014 Scrum.org, All Rights Reserved Evidence of Agility Evidence-Based Managing of Software Not everything that can be counted, counts, and not everything that counts can be counted. - Albert Einstein
  28. 28. 29© 1993-2014 Scrum.org, All Rights Reserved What if we added evidence to opinion, intuition and best practice?
  29. 29. 31© 1993-2014 Scrum.org, All Rights Reserved What Type of Evidence?  Circumstantial  Direct • What’s your development process? • How strictly do you follow the process? • How many features gave you produced last Sprint? • Are your Daily Scrums always <= 15 minutes? • Have you got DevOps in place? • Do you do Continuous Delivery? • How big are your teams? • Is everybody trained? • Do you do TDD? • …
  30. 30. 32© 1993-2014 Scrum.org, All Rights Reserved Collect direct evidence, i.e. evidence on the outcome of the work, to drive your investments in Agility
  31. 31. 33© 1993-2014 Scrum.org, All Rights Reserved Perspectives to Direct Evidence of Value
  32. 32. 34© 1993-2014 Scrum.org, All Rights Reserved Current Value Ability to InnovateTime to Market Direct Evidence Of Value Release Frequency Release Stabilization Cycle Time Installed Version Index Usage Index Innovation Rate Defects Revenue per Employee Employee Satisfaction Customer Satisfaction Product Cost Ratio
  33. 33. 35© 1993-2014 Scrum.org, All Rights Reserved Evolution of Direct Evidence
  34. 34. 36© 1993-2014 Scrum.org, All Rights Reserved Using Direct Evidence Direct Evidence Circumstantial Evidence Measure Change • Skills, Knowledge, Understanding  Product managers  Managers  Developers • Practices, Tools, Standards Focus Facilitate
  35. 35. 37© 1993-2014 Scrum.org, All Rights Reserved Evaluate Investments Against Direct Outcomes
  36. 36. 38© 1993-2014 Scrum.org, All Rights Reserved Circumstantial Evidence Is Supportive, Secondary • Adapting organizational practices should ultimately have a positive impact on the outcome, reflected in the metrics. • Evidence over the effectiveness of teams and practices is circumstantial evidence.
  37. 37. 39© 1993-2014 Scrum.org, All Rights Reserved The People’s Financial Group is a strong retail bank with 1500 branches, 3800 ATMs, and 17000 employees (of which 1100 in IT) across the US. • PFG was a pioneer in online banking, has done it for several years with rich applications and is ahead of the competition. • PFG only recently added mobile banking capabilities, after seeing a significant loss of market share to a smaller player. • Entry to the mobile market seems very slow. Exercise: People’s Financial Group
  38. 38. 40© 1993-2014 Scrum.org, All Rights Reserved MIN Productivity Is High 2 Yet, the IT development manager reports an impressive increase in productivity for the mobile teams which he claims is the result of adopting Scrum:  Circumstantial  Direct Productivity
  39. 39. 41© 1993-2014 Scrum.org, All Rights Reserved MIN Where’s The Value? 2 At the next board meeting however: • The VP of product management shows customer satisfaction. • HR summarizes the last employee happiness survey. A future proof company? Employee Happiness Customer Satisfaction
  40. 40. 42© 1993-2014 Scrum.org, All Rights Reserved MIN Take A Hunch At The Actions PFG Should Take 5
  41. 41. 43© 1993-2014 Scrum.org, All Rights Reserved Case Closed? Have you also heard? “Managers are useless and not needed in Agile.” Do you wonder too?
  42. 42. 44© 1993-2014 Scrum.org, All Rights Reserved Evidence-based Management Organizations • Make better investments • Generate more business value • Avoid wasting energy on fads • Create an evidence-based profession Take Aways
  43. 43. 45© 1993-2014 Scrum.org, All Rights Reserved Closing Evidence-Based Management of Software The future state of Scrum will no longer be called ‘Scrum’. What we now call Scrum will have become the norm, and organizations have re-invented themselves around it. -Gunther Verheyen
  44. 44. 46© 1993-2014 Scrum.org, All Rights Reserved About Gunther Verheyen • eXtreme Programming and Scrum since 2003 • Professional Scrum Trainer • Directing the Professional series at Scrum.org • Co-developing EBM at Scrum.org • Author of “Scrum – A Pocket Guide (A Smart Travel Companion)” (2013) Mail gunther.verheyen@scrum.org Twitter @Ullizee Blog http://ullizee.wordpress.com
  45. 45. 47© 1993-2014 Scrum.org, All Rights Reserved Connect with the Scrum.org community Twitter @scrumdotorg LinkedIn LinkedIn.com /company/Scrum.or g Facebook Facebook.com /Scrum.org Forums Scrum.org /Community RSS Scrum.org/RSS
  46. 46. 48© 1993-2014 Scrum.org, All Rights Reserved Thank you

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