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K1	
Keynote	
6/8/16	8:30	AM	
	
	
	
	
“DevOps	and	the	Culture	of	High-
Performing	Software	Organizations”	
	
	
Presented	by:	
	
Jez	Humble	
Jez	Humble	&	Associates	LLC	
	
	
	
Brought	to	you	by:		
		
	
	
	
	
350	Corporate	Way,	Suite	400,	Orange	Park,	FL	32073		
888---268---8770	··	904---278---0524	-	info@techwell.com	-	http://www.techwell.com/
Jez	Humble	
Jez	Humble	&	Associates	LLC	
	
Jez	Humble	is	co-author	of	the	Jolt	Award	winning	Continuous	Delivery,	published	
in	Martin	Fowler’s	Signature	Series	(Addison	Wesley,	2010),	and	Lean	Enterprise,	
in	Eric	Ries’	Lean	series	(O'Reilly,	2015).	He	has	consulted	for	many	Global	500	
companies	to	help	them	achieve	technical	excellence	and	deploy	a	culture	of	
experimentation	and	learning.	His	focus	is	on	helping	organizations	discover	and	
deliver	valuable,	high-quality	products.	He	teaches	at	UC	Berkeley.
high performance product development
@jezhumble
#devopswest| 7 june 2016
afternoon agenda
the product lifecycle
productivity at scale
experimental product development
the culture of high performance
high performance product development:
the product lifecycle
lifecycle of innovations
technology adoption lifecycle
Geoffrey Moore, Crossing the Chasm
three horizons
Baghai, M., Coley, S. and White, D., The Alchemy of Growth
Intuit horizons and metrics
explore vs exploit
product/market fit
MOST IDEAS
FAIL!
optionality
Nassim Taleb, Antifrafile
A startup is a human
institution designed to create
new products and services
under conditions of extreme
uncertainty
eric ries, the lean startup, ch.
1
learn: create a value hypothesis
build: gather the necessary data
measure: how do we test our hypothesis?
learn-measure-build
vanity vs actionable metrics
high performance product development:
productivity at scale
“the enterprise”
Project A
Project B
Project C
DBAs
Infrastructure team
Service desk
Value stream
OperationsEngineeringBusiness
Ping!
Project A
Project B
Project C
DBAs
Infrastructure team
Service desk
Value stream
OperationsEngineeringBusiness
Ping!
Project D
Let’s create
a new
product
enterprise projects
Project A
Project B
DBAs
Infrastructure team
Service desk
Project D
We’re
going agile! Oh no!Oh no!
Value stream
OperationsEngineeringBusiness
Project A
Project B
DBAs
Infrastructure team
Service desk
Value stream
OperationsEngineeringBusiness
Project D
Our test-driven code
follows SOLID
principles
Shame it
doesn’t work
Change
management
enterprise agility
“The main obstacles to improved
business responsiveness are slow
decision-making, conflicting
departmental goals and priorities, risk-
averse cultures and silo-based
information.”
Economist Intelligence Unit: “Organisational agility: How business can survive and thrive in turbulent times”
The Alignment Trap
“Avoiding the Alignment Trap in IT,“ David Shpilberg, Steve Berez, Rudy Puryear and Sachin Shah
MIT Sloan Management Review Magazine, Fall 2007.
iron triangle
IT is a Competitive Advantage
“Firms with high-
performing IT organizations
were twice as likely to
exceed their profitability,
market share and
productivity goals.”
http://bit.ly/2014-devops-report
time to restore service
lead time for changes
release frequency
change fail rate
it performance
http://bit.ly/2014-devops-report
highest correlation with it performance
• “Our code, app configurations and system
configurations are in a version control system”
• “We get failure alerts from logging and
monitoring systems”
• “Developers merge their code into trunk daily”
• “When development and operations teams
interact, the outcome is generally win/win.”
• “Developers break up large features into small,
incremental changes.”
http://bit.ly/2014-devops-report
proactive monitoring
peer-reviewed change approval process
version control everything
win-win relationship between dev and ops
high trust organizational culture
top predictors of it performance
http://bit.ly/2014-devops-report
scrum-
fall
water-
Jon Jenkins, “Velocity Culture, The Unmet Challenge in Ops” | http://bit.ly/1vJo1Ya
hp laserjet firmware division
2008
~5% - innovation capacity
15% - manual testing
25% - product support
25% - porting code
20% - detailed planning
10% - code integration
Costs
Full manual regression: 6 wks
Builds / day: 1-2
Commit to trunk: 1 week
Cycle times
deployment pipeline
hp laserjet firmware team
~5% - innovation
15% - manual testing
25% - current product support
25% - porting code
20% - detailed planning
10% - code integration
2008
~40% - innovation
5% - most testing automated
10% - one branch cpe
15% - one main branch
5% - agile planning
2% - continuous integration
2011
The remaining 23% on RHS is spent on managing automated tests.
the economics
2008 to 2011
•overall development costs reduced by ~40%
•programs under development increased by ~140%
•development costs per program down 78%
•resources now driving innovation increased by 8X
A Practical Approach to Large-Scale Agile Development - Gruver, Young, Fulghum
high performance product development
experimental product development
batching up work
“Black Swan Farming using Cost of Delay” | Joshua J. Arnold and Özlem Yüce | bit.ly/black-swan-farming
create feedback loops to validate assumptions
don’t optimize for the case where we are right
focus on value, not cost
enable an experimental approach to product dev
make it economic to work in small batches
what should we do
impact mapping
Gojko Adzic, Impact Mapping
@jezhumbleJeff Gothelf “Better product definition with Lean UX and Design” http://bit.ly/TylT6A
hypothesis-driven delivery
We believe that
[building this feature]
[for these people]
will achieve [this outcome].
We will know we are successful when we see
[this signal from the market].
experiments
Different types of user research, courtesy of Janice Fraser
“Etsy’s Product Development with Continuous Experimentation”
Frank Harris and Nellwyn Thomas | http://bit.ly/19Z5izI
“Etsy’s Product Development with Continuous Experimentation”
Frank Harris and Nellwyn Thomas | http://bit.ly/19Z5izI
“Etsy’s Product Development with Continuous Experimentation”
Frank Harris and Nellwyn Thomas | http://bit.ly/19Z5izI
do less
“Evaluating well-designed and
executed experiments that were
designed to improve a key metric, only
about 1/3 were successful at
improving the key metric!”
“Online Experimentation at Microsoft”, Kohavi et al http://stanford.io/130uW6X
Jon Jenkins, “Velocity Culture, The Unmet Challenge in Ops” | http://bit.ly/1vJo1Ya
high performance product development:
the culture of high performance
What obstacles are preventing you from reaching
it? which one are you addressing now?
What is the target condition? (The challenge)
What is the actual condition now?
When can we go and see what we learned from
taking that step?
What is your next step? (Start of PDCA cycle)
improvement kata
improvement kata
A Practical Approach to Large-Scale Agile Development - Gruver, Young, Fulghum
lightweight planning
A Practical Approach to Large-Scale Agile Development - Gruver, Young, Fulghum
What Is Culture?
“A pattern of shared tacit assumptions that was
learned by a group as it solved its problems of
external adaptation and internal integration,
that has worked well enough to be
considered valid and, therefore, to be taught
to new members as the correct way to perceive,
think, and feel in relation to those problems.”
— Edgar Schein, The Corporate Culture Survival Guide
What Is Culture?
“Our true culture is made primarily
of the things no one will say... Culture is about
power dynamics, unspoken
priorities and beliefs, mythologies, conflicts,
enforcement of social norms, creation of in/
out groups and distribution of wealth and
control inside companies.”
— Shanley Kane | @shanley | Your Startup Is Broken: Inside the Toxic Heart of Tech Culture
“My job makes good use of my skills and abilities.”
“I would recommend this organization as a good
place to work.”
“I am satisfied with my job.”
“We use data from app perf & infra monitoring tools
to make business decisions daily.”
“I have the tools and resources to do my job well.”
Top Predictors of Org Perf
High Trust Culture
Westrum, “A Typology of Organizational Cultures” | http://bmj.co/1BRGh5q
How organizations process information
@jezhumble
changing culture
http://www.thisamericanlife.org/radio-archives/episode/403/nummi
http://sloanreview.mit.edu/article/how-to-change-a-culture-lessons-from-nummi/
Schein, The Corporate Culture Survival Guide
the production line
http://www.flickr.com/photos/toyotauk/4711057997/
TOYODA AUTOMATIC
LOOM TYPE G
55
“Since the loom stopped when a
problem arose, no defective
products were produced. This
meant that a single operator could
be put in charge of numerous
looms, resulting in a tremendous
improvement in productivity.”
http://www.toyota-global.com/company/vision_philosophy/toyota_production_system/jidoka.html
Ask: how can we get people
better information?
In a complex, adaptive system failure is inevitable
When accidents happen, human factors are the
starting point of a blameless post-mortem
Ask: how can we detect and limit
failure modes?
Dealing with Failure
Retrospective Prime Directive
“Regardless of what we discover, we
understand and truly believe that everyone did
the best job they could, given what they knew at
the time, their skills and abilities, the resources
available, and the situation at hand.”
— Norm Kerth, Project Retrospectives: A Handbook for Team Reviews
innovation culture
“I think building this culture is the key to
innovation. Creativity must flow from everywhere.
Whether you are a summer intern or the CTO, any
good idea must be able to seek an objective test,
preferably a test that exposes the idea to real
customers. Everyone must be able to experiment,
learn, and iterate.”
http://glinden.blogspot.com/2006/04/early-amazon-shopping-cart.html
want to learn more?
To receive the following:
• An exclusive invite to our DevOps benchmarking tool
• A chance to get a personalized analysis of your results
• A copy of this presentation
• A 100 page excerpt from Lean Enterprise
• A 20m preview of my Continuous Delivery video workshop
• Discount code for CD video + interviews with Eric Ries & more
• Early drafts of the DevOps Handbook
Just pick up your phone and send an email
To: jezhumble@sendyourslides.com
Subject: devops
© 2015-6 Jez Humble & Associates LLC

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DevOps and the Culture of High-Performing Software Organizations

  • 3. high performance product development @jezhumble #devopswest| 7 june 2016 afternoon agenda the product lifecycle productivity at scale experimental product development the culture of high performance
  • 4. high performance product development: the product lifecycle
  • 5. lifecycle of innovations technology adoption lifecycle Geoffrey Moore, Crossing the Chasm
  • 6. three horizons Baghai, M., Coley, S. and White, D., The Alchemy of Growth Intuit horizons and metrics
  • 7. explore vs exploit product/market fit MOST IDEAS FAIL!
  • 8. optionality Nassim Taleb, Antifrafile A startup is a human institution designed to create new products and services under conditions of extreme uncertainty eric ries, the lean startup, ch. 1
  • 9. learn: create a value hypothesis build: gather the necessary data measure: how do we test our hypothesis? learn-measure-build vanity vs actionable metrics
  • 10. high performance product development: productivity at scale “the enterprise” Project A Project B Project C DBAs Infrastructure team Service desk Value stream OperationsEngineeringBusiness Ping!
  • 11. Project A Project B Project C DBAs Infrastructure team Service desk Value stream OperationsEngineeringBusiness Ping! Project D Let’s create a new product enterprise projects Project A Project B DBAs Infrastructure team Service desk Project D We’re going agile! Oh no!Oh no! Value stream OperationsEngineeringBusiness
  • 12. Project A Project B DBAs Infrastructure team Service desk Value stream OperationsEngineeringBusiness Project D Our test-driven code follows SOLID principles Shame it doesn’t work Change management enterprise agility “The main obstacles to improved business responsiveness are slow decision-making, conflicting departmental goals and priorities, risk- averse cultures and silo-based information.” Economist Intelligence Unit: “Organisational agility: How business can survive and thrive in turbulent times”
  • 13. The Alignment Trap “Avoiding the Alignment Trap in IT,“ David Shpilberg, Steve Berez, Rudy Puryear and Sachin Shah MIT Sloan Management Review Magazine, Fall 2007. iron triangle
  • 14. IT is a Competitive Advantage “Firms with high- performing IT organizations were twice as likely to exceed their profitability, market share and productivity goals.” http://bit.ly/2014-devops-report time to restore service lead time for changes release frequency change fail rate it performance http://bit.ly/2014-devops-report
  • 15. highest correlation with it performance • “Our code, app configurations and system configurations are in a version control system” • “We get failure alerts from logging and monitoring systems” • “Developers merge their code into trunk daily” • “When development and operations teams interact, the outcome is generally win/win.” • “Developers break up large features into small, incremental changes.” http://bit.ly/2014-devops-report proactive monitoring peer-reviewed change approval process version control everything win-win relationship between dev and ops high trust organizational culture top predictors of it performance http://bit.ly/2014-devops-report
  • 16. scrum- fall water- Jon Jenkins, “Velocity Culture, The Unmet Challenge in Ops” | http://bit.ly/1vJo1Ya
  • 17. hp laserjet firmware division 2008 ~5% - innovation capacity 15% - manual testing 25% - product support 25% - porting code 20% - detailed planning 10% - code integration Costs Full manual regression: 6 wks Builds / day: 1-2 Commit to trunk: 1 week Cycle times deployment pipeline
  • 18. hp laserjet firmware team ~5% - innovation 15% - manual testing 25% - current product support 25% - porting code 20% - detailed planning 10% - code integration 2008 ~40% - innovation 5% - most testing automated 10% - one branch cpe 15% - one main branch 5% - agile planning 2% - continuous integration 2011 The remaining 23% on RHS is spent on managing automated tests. the economics 2008 to 2011 •overall development costs reduced by ~40% •programs under development increased by ~140% •development costs per program down 78% •resources now driving innovation increased by 8X A Practical Approach to Large-Scale Agile Development - Gruver, Young, Fulghum
  • 19. high performance product development experimental product development batching up work “Black Swan Farming using Cost of Delay” | Joshua J. Arnold and Özlem Yüce | bit.ly/black-swan-farming
  • 20. create feedback loops to validate assumptions don’t optimize for the case where we are right focus on value, not cost enable an experimental approach to product dev make it economic to work in small batches what should we do impact mapping Gojko Adzic, Impact Mapping
  • 21. @jezhumbleJeff Gothelf “Better product definition with Lean UX and Design” http://bit.ly/TylT6A hypothesis-driven delivery We believe that [building this feature] [for these people] will achieve [this outcome]. We will know we are successful when we see [this signal from the market]. experiments Different types of user research, courtesy of Janice Fraser
  • 22. “Etsy’s Product Development with Continuous Experimentation” Frank Harris and Nellwyn Thomas | http://bit.ly/19Z5izI “Etsy’s Product Development with Continuous Experimentation” Frank Harris and Nellwyn Thomas | http://bit.ly/19Z5izI
  • 23. “Etsy’s Product Development with Continuous Experimentation” Frank Harris and Nellwyn Thomas | http://bit.ly/19Z5izI do less “Evaluating well-designed and executed experiments that were designed to improve a key metric, only about 1/3 were successful at improving the key metric!” “Online Experimentation at Microsoft”, Kohavi et al http://stanford.io/130uW6X
  • 24. Jon Jenkins, “Velocity Culture, The Unmet Challenge in Ops” | http://bit.ly/1vJo1Ya high performance product development: the culture of high performance
  • 25. What obstacles are preventing you from reaching it? which one are you addressing now? What is the target condition? (The challenge) What is the actual condition now? When can we go and see what we learned from taking that step? What is your next step? (Start of PDCA cycle) improvement kata
  • 26. improvement kata A Practical Approach to Large-Scale Agile Development - Gruver, Young, Fulghum lightweight planning A Practical Approach to Large-Scale Agile Development - Gruver, Young, Fulghum
  • 27. What Is Culture? “A pattern of shared tacit assumptions that was learned by a group as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems.” — Edgar Schein, The Corporate Culture Survival Guide What Is Culture? “Our true culture is made primarily of the things no one will say... Culture is about power dynamics, unspoken priorities and beliefs, mythologies, conflicts, enforcement of social norms, creation of in/ out groups and distribution of wealth and control inside companies.” — Shanley Kane | @shanley | Your Startup Is Broken: Inside the Toxic Heart of Tech Culture
  • 28. “My job makes good use of my skills and abilities.” “I would recommend this organization as a good place to work.” “I am satisfied with my job.” “We use data from app perf & infra monitoring tools to make business decisions daily.” “I have the tools and resources to do my job well.” Top Predictors of Org Perf High Trust Culture Westrum, “A Typology of Organizational Cultures” | http://bmj.co/1BRGh5q How organizations process information
  • 30. TOYODA AUTOMATIC LOOM TYPE G 55 “Since the loom stopped when a problem arose, no defective products were produced. This meant that a single operator could be put in charge of numerous looms, resulting in a tremendous improvement in productivity.” http://www.toyota-global.com/company/vision_philosophy/toyota_production_system/jidoka.html Ask: how can we get people better information? In a complex, adaptive system failure is inevitable When accidents happen, human factors are the starting point of a blameless post-mortem Ask: how can we detect and limit failure modes? Dealing with Failure
  • 31. Retrospective Prime Directive “Regardless of what we discover, we understand and truly believe that everyone did the best job they could, given what they knew at the time, their skills and abilities, the resources available, and the situation at hand.” — Norm Kerth, Project Retrospectives: A Handbook for Team Reviews innovation culture “I think building this culture is the key to innovation. Creativity must flow from everywhere. Whether you are a summer intern or the CTO, any good idea must be able to seek an objective test, preferably a test that exposes the idea to real customers. Everyone must be able to experiment, learn, and iterate.” http://glinden.blogspot.com/2006/04/early-amazon-shopping-cart.html
  • 32. want to learn more? To receive the following: • An exclusive invite to our DevOps benchmarking tool • A chance to get a personalized analysis of your results • A copy of this presentation • A 100 page excerpt from Lean Enterprise • A 20m preview of my Continuous Delivery video workshop • Discount code for CD video + interviews with Eric Ries & more • Early drafts of the DevOps Handbook Just pick up your phone and send an email To: jezhumble@sendyourslides.com Subject: devops © 2015-6 Jez Humble & Associates LLC