What kind of metrics should you have in order to be sure that your development project is on right track? ScanAgile 2016 presentation 8 March 2016 with Miika Kuha.

1. Lean Metrics
Measuring and Driving
Change
Scan Agile · Miika Kuha and Karoliina Luoto · 8
March 2016

2. Karoliina Luoto and Miika Kuha
Consultant for
Agile coaching and consulting
Focus: customer work
Before: product owner, collaboration strategist,
communications specialist
Change agent’s right hand
Leanifying software development
Consultant for
Lean, way of working, enterprise mobility
Before: Process owner, product owner, enterprise
mobility consultant, product designer, industrial designer

3. Gut feeling for trends
often differs from measured
data
• Photo: Tara Chill, Flickr

4. It’s good to look at metrics
While keeping your eyes open
• Photo: NATS Press Office, Flickr

5. Just remember
To also keep your eyes open
Picture from ”Antifragile” by N.N.Taleb

6. Think of your own project.
Do you have metrics for the
right direction?
What are they like?

7. Metrics levels
Change in business environment
Customer understanding
Current Operating Model
Change Implementation
Progress
Continuous
improvement and
learning
CxO
VP
BO
PO
Development
Mature business Startup
CxO
Development
!

8. Current operating model
Alignment within levels
Current operating model
BO
BO
!
Resource optimization
Flow optimization

9. Change in business environment
Customer understanding
Current operating model
Change Implementation Progress
Continuous improvement
and learning
Where, in what
context
To whom
How
What is
improved next
How to keep
improving
Measurement frame

10. Change in business environment
Customer understanding
Current operating model
Change Implementation Progress
Continuous improvement
and learning
So, to metrics

11. Business environment
Our market share is bigger than
competitors, are we good?
Market %
A B C D E F

12. Evolution
Visibilitytothecustomer
Based on Simon Wardley’s Value Chain Mapping
Genesis Custom build Product Commodity
Customer specific services
Concrete
Manual House building
Value chain mapping current state
Construction industry
Customer
3D printing
Printed House
Knowledge
Sub contracted building
1
23

13. Business environment
Metric tool 1: Desired Value Chain
position
Model the value chain you are part of – identify what
competitors are doing, what technologies and other
enablers are merging
Metric: How close you are on your target, what to
do next to achieve the target, when to set new
target?
What are your capabilities to improve your business
opportunities? What is the one metric that reveals
best if you have taken the desired spot?

14. Change in business environment
Customer understanding
Current operating model
Change Implementation Progress
Continuous improvement
and learning

15. Customer expectation
almost there?

16. Customer understanding
Metric tool 1: Net Promoter Score
Talk to the customer – really, go and talk to the
customer
Metric: How likely you would recommend the
product to a friend? (0 no way – 10 most
certainly)

17. Change in business environment
Customer understanding
Current operating model
Change Implementation Progress
Continuous improvement
and learning

18. Process measurement
we get 97% positive fb, good
enough?
Positive score?
Yes No

19. Current operating model
Metric tool 1: Process Cycle Efficiency
There are many possible measurement points –
instead of measuring output, take metric that
forces you to take end to end customer view
CVA CVA CVA CVACVA CVA CVA
NVA NVA NVA NVA NVANVA NVANVA

20. Current operating model
Metric tool 1: Process Cycle Efficiency
Metric: Process Cycle Efficiency
PCE =
Customer Value-added Time
Cycle Time
CVA CVA CVA CVACVA CVA CVA
NVA NVA NVA NVA NVANVA NVANVA
• Map the Value Stream & understand the customer
• How much is the Cycle Time?
• How much there is Customer Value Add time?

21. Change in business environment
Customer understanding
Current operating model
Change Implementation Progress
Continuous improvement
and learning

22. Change implementation
progress = How much gets
done?
Amountofchangeeffort
Cadences
87654321
160
120
80
40
Now at
Prognosis
Whole
backlog

23. Change implementation progress
Metric tool 1: Implemented value
Agile methods often focus on measuring the
amount of change effort, when the real question
is the value of it
Simple metric: make customers play value poker
on planned changes and then track progress
based on value points

24. Discussion while playing
Brings out the reasoning
Photo: Play Among Friends Paf, Flickr

25. Value tracking
to see value for
changes
Can be added as a
layer to any task
management tool

26. Change implementation progress
Metric tool 2: Adoption figures
Percent of people using the new process /
system regularly
A new process or software is not implemented before
it is part of its users’ daily routines

27. Change implementation progress
Metric tool 2: Adoption figures
New kickoff
Altered liftoff
Other
Example: 5 % of new
projects use the project
kickoff process

28. Change in business environment
Customer understanding
Current operating model
Change Implementation Progress
Continuous improvement
and learning

29. Continuous improvement
Are we doing it?
Yes.
We have a retrospective / operations
review once a cadence.
Ok, is that continuous
improvement?

30. Continuous improvement and
learning Metric tool: Easing pains
1. Example metric: Uncompleted orders reduced from 32
% to 15 % of purchases
Continuous learning is happening when you 1)
get out experiments which get 2) implemented
and 3) analyzed for learnings
Amount is not the thing, targeting biggest pain
points is
Simple metric: Are our biggest problems getting
easier?

31. Continuous improvement and
learning Metric tool: Easing pains
2-3
months

32. We talked about metrics for
different levels
Change in business environment
Customer understanding
Current Operating Model
Change Implementation
Progress
Continuous
improvement and
learning
Desired
Value Chain
position
Net Promoter Score
Process
Cycle
Efficiency
Implemented
value
Easin
g
pains
Adoptio
n
figures

33. What to do next?
1. Understand what to target
first, how to measure it
meaning full way and how to
sustain it
Change in business environment
Customer understanding
Current Operating Model
Change Implementation
Progress
Continuous
improvement and
learning
1
2
3
2. Then understand what are the
needed connections supporting
& enabling, on other levels and
how to measure and sustain
them
3. Get the enforcement to drive
the new metrics into daily
management system

34. To keep moving
is more important than the path
you take
• Photo: qwrrty, Flickr

35. Questions? Comments?
Codento.fi
Miika Kuha · Karoliina Luoto · @codento · @totoroki