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Measuring What Matters in Your Agile Transformation

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So you’ve decided to “go Agile”. Why? How can you clearly articulate the business goals of your agile transformation, and how can you effectively measure your progress and success?

We will show how to use the Agile Strategy Map™ to define your Agile transformation strategy, and give real-world examples of strategies used successfully by many organizations. Participants will get practice using the Strategy Map and identifying some metrics that matter.

Before starting the journey to becoming an agile organization, it’s critical to define your business objectives: quality, time to market, productivity, customer satisfaction, innovation, employee engagement, or whatever challenges you need to address. To make those goals real, they need to be measurable. Because the journey may be long, you need both leading indicators to know if you’re going in the right direction, and lagging indicators to tell if your goals have been met.

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Measuring What Matters in Your Agile Transformation

  1. 1. www.agile42.com | All rights reserved. Copyright © 2007 - 2015. agile42 - The Agile Coaching Company agile42 | The Agile Coaching Company Measuring What Matters " in your Agile Transformation
  2. 2. www.agile42.com | All rights reserved. Copyright © 2007 - 2015. agile42 | The Agile Coaching Company Brad Swanson Enterprise Agile Coach @agile42 brad.swanson@agile42.com @bradswanson
  3. 3. www.agile42.com | All rights reserved. Copyright © 2007 - 2015. agile42 | The Agile Coaching Company Goal PSF NC Agile Strategy Map™ Define the Goal we want to achieve Possible Success Factor (PSF) represents a hypothesis about a key factor that would enable us to achieve the Goal Necessary Condition (NC): what is needed in order to fulfill the Success Factor http://www.agile42.com/en/agile-transition/agile-strategy-map/ Agile Strategy Map™ - Framework for Strategy
  4. 4. www.agile42.com | All rights reserved. Copyright © 2007 - 2015. agile42 | The Agile Coaching Company Goal CSF#1 NC#1.1 NC#1.2 Agile Strategy Map™ CSF#1: we must consolidate all projects in one Portfolio, so that will be able to make better business decisions NC#1.1.1 The Pilot was successful... The Potential Success Factor becomes a Critical Success Factor (CSF). Update the strategy to roll out and institutionalize the change. Pilot success! Now what?
  5. 5. www.agile42.com | All rights reserved. Copyright © 2007 - 2015. agile42 | The Agile Coaching Company Sustainably faster delivery of solutions that delight customers Faster time to market Alignment & support across the org Engaged & joyful people Transparent empirical view of org performance Grow and sustain agile practices Culture of continuous learning & improvement Org priorities aligned with Customer value Agile Transformation" Sample Goal + Success Factors (PSFs / CSFs)
  6. 6. www.agile42.com | All rights reserved. Copyright © 2007 - 2015. agile42 | The Agile Coaching Company Sustainably faster delivery of solutions that delight customers Faster time to market Balance workload & capacity: limit WIP Alignment & support across the org Engaged & joyful people Transparent empirical view of org performance Grow and sustain agile practices Culture of continuous learning & improvement Org priorities aligned with customer value Dedicated " Guiding Coaltion Pilot projects Clearly communicated vision & strategy Training & coaching Build " internal " expertise Collaborative prioritization with stakeholders Collaborative " cross-functional " teams Automated testing & deployment Incremental delivery Visible metrics Leaders to remove fear Empowerment Clear, " realistic goals Servant leadership Action taken to improve Foster innovation Celebrate failed " experiments Sample Agile Strategy Map™ Clear career path Goal Success factors Necessary conditions Legend:
  7. 7. www.agile42.com | All rights reserved. Copyright © 2007 - 2015. agile42 | The Agile Coaching Company A few metrics (KPIs) for the goal Sustainably faster delivery of solutions that delight customers These are lagging indicators; some leading indicators are described soon…
  8. 8. www.agile42.com | All rights reserved. Copyright © 2007 - 2015. agile42 | The Agile Coaching Company Leading & lagging indicators for each PSF / CSF PSF Leading Indicators Lagging Indicators •  # total concurrent projects •  Avg # concurrent projects/ person •  Program burn-up chart •  Lead time: idea to 1st delivery •  Cycle time: Dev start to 1st delivery •  Deployment frequency post 1st delivery (MVP/V1) •  Frequency & effectiveness of stakeholder collaboration on prioritization •  Standard way to compare project value •  Portfolio priorities highly visible •  All teams working on top portfolio priorities; no ‘side projects’ •  Delivered value is measured and meets expectations •  Customer satisfaction survey •  Sales and/or usage statistics 1.  Faster time to market 2. Org priorities aligned with customer value
  9. 9. www.agile42.com | All rights reserved. Copyright © 2007 - 2015. agile42 | The Agile Coaching Company CSF 1: Time to Market Lead time: from request to 1st deploy Cycle time: dev start to 1st deploy
  10. 10. www.agile42.com | All rights reserved. Copyright © 2007 - 2015. agile42 | The Agile Coaching Company CSF 1: Time to Market – leading indicator
  11. 11. agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. CSF 1: Time to Market / predictability – lagging indicator 0 2 4 6 8 10 12 14 16 18 20 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 Lead time frequency Lead time (days) Frequency
  12. 12. agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. PSF 2: Org priorities aligned with customer value –" leading indicators Churn = % change after commit point
  13. 13. agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. Compare actuals with forecast PSF 2: Org priorities aligned with customer value –" lagging indicators
  14. 14. www.agile42.com | All rights reserved. Copyright © 2007 - 2015. agile42 | The Agile Coaching Company Leading & lagging indicators for each PSF PSF Leading Indicators Lagging Indicators •  Sr. Leadership consensus on strategy •  Frequency of comms on vision & strategy; # of different forums •  Short-term wins visibly celebrated •  # hours spent on Guiding Coalition activities •  Poll: % who agree with strategy •  Poll: % prefer new to old approach •  # of teams asking to ‘go agile’ •  # people trained on Agile •  # people in coached projects •  # people in the ‘coach the coach’ program •  Agile team practices maturity level •  # people completing ‘coach the coach’ •  # people achieving 3rd party Agile certifications •  Monthly attendance in Agile Community of Practice (CoP) mtgs 4. Grow & sustain agile practices 3. Alignment & support across the org
  15. 15. agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. PSF 3: Alignment & support
  16. 16. agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. PSF 4: Grow & sustain agile practices
  17. 17. agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. Your turn to try… • Select a success factor (from the sample or your own) • Identify a few leading and lagging indicators • How could you measure and visualize them?
  18. 18. agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. Leading & lagging indicators for each PSF *Success ratio over 70% may indicate fear of failure PSF Leading Indicators Lagging Indicators •  Poll: things getting better or worse? •  Career path defined for all roles •  Poll: employee job satisfaction •  Attrition rate •  # employee referrals for hiring •  Avg frequency of team retrospectives •  # of experimental learnings celebrated (fast safe failures) •  Poll: Do you feel safe to experiment & innovate? •  # team-initiated process changes •  # team-initiated product innovations •  Success ratio of experiments* 5. Engaged & joyful people 6. Culture of continuous learning & Improve- ment
  19. 19. www.agile42.com | All rights reserved. Copyright © 2007 - 2015. agile42 - The Agile Coaching Company agile42 | The Agile Coaching Company Attack of the Killer Metrics!" " When metrics go bad…
  20. 20. agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. Questions to ask about every metric 1.  What decisions will be made based on this metric? 2.  Is this the RIGHT thing to measure or an easy-to-measure proxy? 3.  What might be the unintended consequences of this metric? 4.  How could this metric be ‘gamed’? 5.  What can we do to guard against unintended consequences and ‘gaming’? 6.  Is this a ‘management’ metric or a ‘team’ metric?
  21. 21. agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. Compensating / Balancing Metrics • What unintended consequences might happen if you measure speed of delivery? • What is a compensating metric to counteract it? • Measure speed AND quality!
  22. 22. www.agile42.com | All rights reserved. Copyright © 2007 - 2015. agile42 | The Agile Coaching Company Management vs. Team Metrics https://creativecommons.org/licenses/by-nc-sa/2.0/ https://www.flickr.com/photos/joeshlabotnik/ https://www.flickr.com/photos/jeroen020/
  23. 23. agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. Your turn: Revisit your indicators from 1st activity… 1.  What decisions will be made based on this metric? 2.  Is this the RIGHT thing to measure or an easy-to-measure proxy? 3.  What might be the unintended consequences of this metric? 4.  How could this metric be ‘gamed’? 5.  What can we do to guard against unintended consequences and ‘gaming’? 6.  Is this a ‘management’ metric or a ‘team’ metric?
  24. 24. www.agile42.com | All rights reserved. Copyright © 2007 - 2015. agile42 - The Agile Coaching Company agile42 | The Agile Coaching Company Thank you! Brad Swanson Senior Agile Coach @agile42 brad.swanson@agile42.com @bradswanson

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