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LEAN METRICS
HOW TO PREDICT THE
FUTURE
Phil Ledgerwood
PowerPoint is Terrible and I‟m Sorry
PLATINUM SPONSORS
GOLD SPONSORS
SILVER SPONSORS
Phil Ledgerwood
Application Developer
Netchemia, LLC
www.Netchemia.com
Twitter: @pledgerwood
LinkedIn: http://www.linkedin.com/in/philledgerwood
The Estimation Process
Let‟s Play a Game
 How long does it
take you to go to the
store to buy
bananas?
 Traffic?
 Accident?
 Johnson County
moms talking in
aisle?
 Person in front of
you pays with check
and has no id?
 Yes, we have no
Your Estimates Suck
Because…
 They are based on your view of your own
productivity.
 They assume all unknowns take zero time.
 You have never written that software before.
People are terrible estimators.
Stopping the Foolishness
Here Come Metrics!
Metrics are Awesome
Because…
 They are based on your actual productivity.
 They factor in unknowns, divergent sizes, and
when Steve goes on vacation, but he didn‟t tell
anyone he was going on vacation until like two
days before he did, and he‟s gone for two weeks
and it‟s like, oh great, thanks a lot, Steve.
 You can identify impediments visually.
They are eerily accurate
because Math.
Estimates vs. Metrics
 Estimates
 Based on guessing
 Deviate over long
timespans
 False sense of
security
 Can easily be
gamed
 Take a long time to
generate
 Up for debate
 Pretty much useless
 Metrics
 Based on actuals
 Become more
accurate over long
timespans
 Cold, hard reality
 Can‟t be gamed
 Take almost no time
to generate
 Not up for debate
 Ignore at your peril
Scatterplot Diagram
The Control Chart
Lead Time
 Record the date something enters your
workflow and the date something leaves it.
 This amount of time is called “Lead Time”
 End points need some agreed definition
 When an item is ready for work?
 When you start work on an item?
 When an item is ready for release?
 When an item is actually deployed?
 Typical Lead Time: Ready for Work >>
Deployed
Control Chart Data
 Dates (or day # of project) along the X axis
 Number of days along Y axis
 Lead times are plotted on chart as items are
completed
 Median Lead Time
 Standard Deviations
 Percentages of Lead Time values (ex. “75% of
our lead times are 10 days or less”)
What Can This Tell Us?
 How fast we‟re
delivering
 The likelihood of an
item taking a certain
amount of time
 Predictability
 When events occur
that screw everything
up
 Trends in velocity
Hey Let‟s See One
CFD (But you could probably figure that out)
Cumulative Flow Diagram
Value Stream
 How things get from “idea” to “delivered”
 For developers, it usually looks something like
this:
 Analysis (Acceptance Criteria)
 Design (Automated Tests)
 Code
 Test
 Deploy
 “To Do,” “Doing,” and “Done” is ok for chore
lists, but not so good for organization workflow
management
Cumulative Flow Data
 Dates (or day # of project) along the X axis
 Number of work items along Y axis
 Plot stacked series of # of items in each “value
stream state” from day to day
What Can This Tell Us?
 Horizontal distance: Lead Time
 Vertical distance: Work in Progress (WIP)
 Slope of Top Line: Average arrival rate
 Slope of Bottom Line: Average completion rate
LOL WUT?
 Where are our bottlenecks?
 Where are things flowing smoothly?
 What is our predictability?
 Do we have too much WIP? Are we starting
more than we‟re finishing?
And I Care About This Why?
 “Improvement comes by managing flow, not
trying to get faster.” –Phil Ledgerwood, Just
Now, 2013
 Improve the flow, and the speed will come.
 How do you improve flow?
 Limit WIP
 Give love to the area that needs it most
 Look at what is skewing the lines and respond
Hey Let‟s See One
What Metrics Don‟t Tell You
Metrics Tell You What, But Not
Why
 Charts and numbers are a catalyst for
conversation, not a substitute for it
 You cannot manage “by the numbers”
 Data is not a substitute for cultural analysis,
critical thinking, people‟s stories, or just being
in the trenches.
 Data can show you your trends and provide
fodder for discussions, but productivity and
workflow is ultimately a people issue.
Appendix A: The Retrospective
 Are you tired of retrospectives being free form
whine sessions? I am also tired of it. Your
whining, I mean.
 The metrics represent your current state.
 Ask the team what a better state would look
like.
 Ask the team for ideas on moving closer to
that state.
 Pick one, try it, and see if the metrics change.
I‟m Phil
 Phil Ledgerwood
 I work at Netchemia
 Blog: http://thecuttingledge.com/
 Twitter (rare): @pledgerwood
 LinkedIn (often):
http://www.linkedin.com/in/philledgerwood
 Ask me for a business card or something,
because, man, I‟ve got a ton of „em.

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Lean Metrics

  • 1. LEAN METRICS HOW TO PREDICT THE FUTURE Phil Ledgerwood PowerPoint is Terrible and I‟m Sorry
  • 3. Phil Ledgerwood Application Developer Netchemia, LLC www.Netchemia.com Twitter: @pledgerwood LinkedIn: http://www.linkedin.com/in/philledgerwood
  • 5. Let‟s Play a Game  How long does it take you to go to the store to buy bananas?  Traffic?  Accident?  Johnson County moms talking in aisle?  Person in front of you pays with check and has no id?  Yes, we have no
  • 6. Your Estimates Suck Because…  They are based on your view of your own productivity.  They assume all unknowns take zero time.  You have never written that software before. People are terrible estimators.
  • 8. Metrics are Awesome Because…  They are based on your actual productivity.  They factor in unknowns, divergent sizes, and when Steve goes on vacation, but he didn‟t tell anyone he was going on vacation until like two days before he did, and he‟s gone for two weeks and it‟s like, oh great, thanks a lot, Steve.  You can identify impediments visually. They are eerily accurate because Math.
  • 9. Estimates vs. Metrics  Estimates  Based on guessing  Deviate over long timespans  False sense of security  Can easily be gamed  Take a long time to generate  Up for debate  Pretty much useless  Metrics  Based on actuals  Become more accurate over long timespans  Cold, hard reality  Can‟t be gamed  Take almost no time to generate  Not up for debate  Ignore at your peril
  • 11. Lead Time  Record the date something enters your workflow and the date something leaves it.  This amount of time is called “Lead Time”  End points need some agreed definition  When an item is ready for work?  When you start work on an item?  When an item is ready for release?  When an item is actually deployed?  Typical Lead Time: Ready for Work >> Deployed
  • 12. Control Chart Data  Dates (or day # of project) along the X axis  Number of days along Y axis  Lead times are plotted on chart as items are completed  Median Lead Time  Standard Deviations  Percentages of Lead Time values (ex. “75% of our lead times are 10 days or less”)
  • 13. What Can This Tell Us?  How fast we‟re delivering  The likelihood of an item taking a certain amount of time  Predictability  When events occur that screw everything up  Trends in velocity
  • 15. CFD (But you could probably figure that out) Cumulative Flow Diagram
  • 16. Value Stream  How things get from “idea” to “delivered”  For developers, it usually looks something like this:  Analysis (Acceptance Criteria)  Design (Automated Tests)  Code  Test  Deploy  “To Do,” “Doing,” and “Done” is ok for chore lists, but not so good for organization workflow management
  • 17. Cumulative Flow Data  Dates (or day # of project) along the X axis  Number of work items along Y axis  Plot stacked series of # of items in each “value stream state” from day to day
  • 18. What Can This Tell Us?  Horizontal distance: Lead Time  Vertical distance: Work in Progress (WIP)  Slope of Top Line: Average arrival rate  Slope of Bottom Line: Average completion rate
  • 19. LOL WUT?  Where are our bottlenecks?  Where are things flowing smoothly?  What is our predictability?  Do we have too much WIP? Are we starting more than we‟re finishing?
  • 20. And I Care About This Why?  “Improvement comes by managing flow, not trying to get faster.” –Phil Ledgerwood, Just Now, 2013  Improve the flow, and the speed will come.  How do you improve flow?  Limit WIP  Give love to the area that needs it most  Look at what is skewing the lines and respond
  • 23. Metrics Tell You What, But Not Why  Charts and numbers are a catalyst for conversation, not a substitute for it  You cannot manage “by the numbers”  Data is not a substitute for cultural analysis, critical thinking, people‟s stories, or just being in the trenches.  Data can show you your trends and provide fodder for discussions, but productivity and workflow is ultimately a people issue.
  • 24. Appendix A: The Retrospective  Are you tired of retrospectives being free form whine sessions? I am also tired of it. Your whining, I mean.  The metrics represent your current state.  Ask the team what a better state would look like.  Ask the team for ideas on moving closer to that state.  Pick one, try it, and see if the metrics change.
  • 25. I‟m Phil  Phil Ledgerwood  I work at Netchemia  Blog: http://thecuttingledge.com/  Twitter (rare): @pledgerwood  LinkedIn (often): http://www.linkedin.com/in/philledgerwood  Ask me for a business card or something, because, man, I‟ve got a ton of „em.

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