The Case for Value Stream Architecture (Mik Kersten, Carmen DeArdo)

© Tasktop 2017 @mik_kersten @carmendeardo© Tasktop 2016
Value Stream Architecture
Dr. Mik Kersten (Tasktop CEO) & Carmen DeArdo (Nationwide Technology Director)
Image Source: BMW Group

© Tasktop 2017 @mik_kersten @carmendeardo
We are a strong mutual
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our members.#68 ON THE
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500 LIST

of the
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Application Security
Monitoring & Mgmt
Process.st
Development
Test
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Deployment
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Monitoring
Low Code/Rapid/Mobile Dev
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Codebox
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/ Mobile App Dev
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Integration Layers
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Fragmented Value StreamsBusiness Value
Best-of-breed tool chain
Revenue Results
We need a more disciplined and structured way of
thinking about software value streams

© Tasktop 2017 @mik_kersten @carmendeardo© Nationwide 2017
Our AGILE Journey Began in 2006
7
AGILE
The starting point was a
Project Centric mindset
with high start-up costs
and inconsistent delivery
We did not see the productivity
and quality gains we desired, so
we increased our focus on Agile
practice maturity
To reduce start-up costs and
improve consistency, we established
20 agile “standing lines”2006 2012
CMMI
Scaled up to 50 Agile
Lines across 14
technology domains
First Tasktop Integration:
QA and Agile Lines
(defects)

AGILE and LEAN provided Productivity and Quality
Improvements, DevOps needed to drive Speed
8
AGILE
Introduced LEAN for
application maintenance
productivity and quality
2014 2017
LEAN
Redesigned our Software
Development model and adopt
Agile across all application areas
Use Tasktop Hub to
provide visibility
across delivery value
stream2016
Roll out DevOps practices
to improve lead time and
deployment frequency
DEVOPS

Results
PRODUCTIVITY
PREDICTABILITY
QUALITY
$25M+
Economic value
annually
88% releases went into
production with ZERO defects
55% Top Quartile
compared to industry
On-time delivery over 90%
9

SPEED
TIME
High Acceleration
during Design,
Develop and
Acceptance Testing
0
Teams waiting for work
due to “discrete”
planning processes
Deployment slowed
by manual and high
ceremony processes
10
Need to Increase Speed Across the Value Stream

True North:
Reduced lead time for changes
Business enabling responsiveness 11
Ø Change our goals from cost and support
efficiency to optimizing the developer
experience
Ø Architect for results like lead time and
deployment frequency
Ø Organize to support horizontal systems
thinking across the value stream
DevOps Compass Points to Business Success

BMW Leipzig Plant Architecture

Business value flow at BMW
Quality cars that deliver “sheer driving pleasure”
Designed in yearly cycles, delivered every 70s
Creative and manufacturing process are decoupled
Business value flow in IT
New features that deliver success and delight
Designed and delivered every 2-week sprint
Creative and manufacturing process are coupled

What if we could take an fMRI of the
organization?

Product UX / UI
Security
Ops
Cross-functional Feature Team
Development

Feature Teams
Product UX / UI
Security
Ops
Development
Feature Team 1 Feature Team 2 Feature Team 3

New York
Vancouver
Greenland
Paris
Moscow
Beijing
Sydney
Cairo
Rio

Optimizing for linear flow
Design for repeatability, minimize creative work
This doesn’t work for software
Waterfall and RUP are tried to make things linear
Overly narrow DevOps are doing the same
End-to-end software is not a linear manufacturing process, it’s a
Value Stream Network

Value Stream Network

70% integrate 3+ endpoints
40% connect 4 or more tools
66% use 4-8 integration patterns
300 value streams analyzed
Your value streams are networks
But most have an ad-hoc architecture

Software architecture follows
value stream, not vice versa
APIs to minimize a team’s wait times
Or structure follows value stream
Reverse Conway’s law, Feature teams
Value Stream Architect
Defines integration and visibility strategy
Designs end-to-end flow and feedback loops
Core to your transformation
Value Stream Architecture
https://itrevolution.com/devops-books/

Value Stream Integration
Every best-of-breed tool is connected for end-to-end flow
Single standard tool chain, can be specialized for countries, LOBs, investment horizons
The tool chain becomes modular, supports change and specialization
Value Stream Visibility
Real-time view of all business value flows and bottlenecks
Metrics are connected to business results
Risk and compliance certification is built into the framework
Framework

Flow Units
Unit Aka Pulled by Description
Feature Story Requirements,
User Stories
User/Customers New business value added to the
application, visible to the customer
Defect Story Incident, bug User/Customers Fixes for quality problems that
affect customer experience
Security Story Vulnerability Security Officers,
Auditors
Fixes for weaknesses, flaws and
vectors for exploits
Tech Debt Story Architecture
story
Software Architects,
Teams
Improvement to the software
architecture, invisible to the
customer
Value Stream Story IT for IT backlog Value Stream
Architects
Improvement to the value stream
architecture, invisible to the
customer

Flow Measures
Flow Measures Description Example
Lead Time Time from request to delivered artifact
running in production
Days from customer requesting a
feature to using the requested feature.
Cycle Time Time from work start to completion Hours from developer accepting a
Feature Story to merging the finished
implementation to master.
Process time Time an artifact is actively worked on Cumulative days a Feature Story is
actively worked on.
Wait time Time from work request to work start Time zone delay in hours for an offshore
team to start work on a Feature Story.
Utilization Sum of process times of lead time (%) Low utilization for a Dev team with an
external dependency
Backlog Size Number of artifacts in the queue at a
particular stage of the value stream
The number of Security Stories on an
Agile team’s backlog.

Example Flow Metrics
Flow Metrics Type Description
End-to-end Lead
Time
Velocity Time from customer request to improvement running in
production
Mean Time To
Repair (MTTR)
Responsiveness Round-trip time from support ticket, through Defect Story
creation, diagnosis, fix through to delivery.
Deployment
frequency
Repeatability Number of deploy per day/week
Flow unit cost Cost Cost per flow unit per team
Productivity Throughput Number of flow units delivered per team per release.
New Business
Value Ratio
Value Proportion of Artifacts of type Feature Story delivered per
release.

27
STORY
BUSINESS
BUSINESS
INITIATIVE A
SYSTEM RELEASE
AC AC
SCM CI
IT / ST /
PT / UAT
CODE
STATION
TEST RESULTS / PT /
SECURITY
READY FOR
PRODUCTION
WORK
INTAKE
RELEASE
PLANNING
DESIGN /
DEVELOP
QUALITY
CERTIFIED
DEPLOY
INITIATIVE BUILDS
This image
cannot
currently be
displayed.
FEEDBACK
BUSINESS VALUE
DEPLOY
FEEDBACK
BUSINESS VALUE
BUSINESS
TASKTOP
INITIATIVE
BACKLOG WIP DONE
MULTIPLE
DEPLOYS
QUALITY
CERTIFIED
READY FOR
PRODUCTION
LEAD TIME
PPM
RTC
URBANCODE
RELEASE
URBANCODE
DEPLOY
VALUE STREAM
PROCESS STREAM
TOOL STREAM
DEPLOY
Measuring Lead Time

28
STORY
BUSINESS
BUSINESS
INITIATIVE A
SYSTEM RELEASE
AC AC
SCM CI
IT / ST /
PT / UAT
CODE
STATION
TEST RESULTS / PT /
SECURITY
READY FOR
PRODUCTION
WORK
INTAKE
RELEASE
PLANNING
DESIGN /
DEVELOP
QUALITY
CERTIFIED
DEPLOY
INITIATIVE BUILDS
FEEDBACK
BUSINESS VALUE
DEPLOY
FEEDBACK
BUSINESS VALUE
BUSINESS
TASKTOP
INITIATIVE
BACKLOG WIP DONE
MULTIPLE
DEPLOYS
QUALITY
CERTIFIED
READY FOR
PRODUCTION
CLARITY
RTC
URBANCODE
RELEASE
URBANCODE
DEPLOY
VALUE STREAM
PROCESS STREAM
TOOL STREAM
DEPLOY
6/1 6/10 6/24 6/26 6/24-6/26 6/30 7/5 7/15
LEAD TIME (45 DAYS)
Measuring Lead Time

29
Brad you
broke the Build
again!

30
DevOps
makes our
lead time small

31
https://itrevolution.com/book/thinking-environments/
Horizontal planks must be built and supported:
• Architecture
• Product Ownership
• Funding
• Prioritization
• Continuous Improvement
Delivery Value Stream Organization Models

Value Stream Visibility

No DevOps transformation can
succeed at scale without a
connected value stream
network
No IT organization can adapt
without accurate value stream
visibility
Value Stream Architect is key
to your success
IT cannot thrive without a connected value stream

© Tasktop 2017 @mik_kersten @carmendeardo© Tasktop 2016
@mik_kersten
@carmendeardo
http://tasktop.com http://nationwide.com

The Case for Value Stream Architecture (Mik Kersten, Carmen DeArdo)

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