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Introduction toLean Agile Metrics and KPIs Yuval Yeret Senior Lean/Agile Consultant @ Agilesparks yuval@agilesparks.com Mobile: 054-4802458
Brief Intro AgileSparks is a company that provides complete Agile/Scrum solutions and helps companies to improve project management, with emphasis on software and hardware development. Myself – Lean/Agile Consultant/Coach, coming from R&D leadership background, specializing in scaling agile through Lean. Find more about me at http://www.linkedin.com/in/yuvalyeret, my google profile
Taken from http://aplndc.pbworks.com/f/2009-05-Agile-Metrics.pdf
Measuring/Managing Organization Performance What are we here for? Do Agile? Develop software? Generate most “Value for R&D investment” in a sustainable way?  $ for the shareholders? So how do we perform in a way that aligns with that?
Assumption – Agile drives Delivery engine Agility  (1)  Better Software Development   Better Business (1) Proven in industry-wide research (Cutter, Forrester, QSM), various enterprise companies (Yahoo, Google, Nokia, Salesforce, etc.)
Assumption – Agile drives Delivery engine So we… Measure Software Development    To Predict Business performance Measure Agility  To Predict Software Development Performance (1) Proven in industry-wide research (Cutter, Forrester, QSM), various enterprise companies (Yahoo, Google, Nokia, Salesforce, etc.)
Taken from http://aplndc.pbworks.com/f/2009-05-Agile-Metrics.pdf
Lagging/Leading KPIs	 Which leads us to KPIs – Key Performance Indicators There are two major types of KPIs: leading and lagging indicators.  ,[object Object]
Lagging indicators, such as most financial KPIs, measure the output of past activity.,[object Object]
Leading Agile Indicators Use with Care!
Focus on being really READY  and really DONE Being READY READY reduces every category of work (defects, rework, total work required, and process overhead) by almost 50% 160%/340% productivity improvement DONE DONE - “Build Quality into Sprints” Fix problems fast Don’t save quality issues for later With the right infrastructure and mindset, IMPROVES productivity Based on Lean/TOC principles…
Relevant Measures READY READY Leading:  Depth of READY backlog for teams Lagging:  Story Flow / Process Cycle Efficiency (PCE) – time story actually worked on versus overall time story in processing Actual Effort variance  DONE DONE Average Time to fix for defects (goal – hours-days) Average Time to fix for build failures (goal – minutes) Defects backlog across sprints (goal – 0) Development/Stabilization schedule ratio (~30% normally. 10% goal)
READY Leads to Flow and Productivity
Why focus on “Time to Fix Defects” Because Fixing bugs earlier is cheaper Why? Early warning (broken/incompatible/conflicting) – faster pin-pointing of root cause and fixing Easy Revert and offline debugging – not in the critical path Savings of ~10K$ for each bug found during sprinthttp://studios.thoughtworks.com/2007/5/10/continuous-integration-in-the-enterprise-with-cruisecontrol Example from a product in an Enterprise Portfolio – 40 escaping defects translate into 400,000$ (multiply per product per release)
Example Bug fix costs per Maturity
Faster/Cheaper StabilizationPeriod Integration problems are detected and fixed continuously - no last minute hiatus before release dates Less cycles / retesting – Arriving to Packaging with higher quality/readiness Product/PIL focus on Exploratory, Advanced scenarios sooner, and can finish faster Better predictability allows squeezing in more functionality until the last minute Smoother and more predictable flow – shorter stops Makes  frequent release strategy more feasible financially
Stabilization Period implications
Release Burnup with and without CI Shorter Stabilization
Release Burnup with and without CI Productivity Improvement
Measures for Eng Practices Maturity % Time build is broken % Time build is broken due to compilation errors Come on… % Code Coverage By Unit Tests By Test Automation Checkin early and often Checkin frequency Size of checkins (Smaller better)
Burndown + EVM
Agile Earned Value Mgmt
AgileEVM Metrics
Earned Business Value Allocate BV points per minimally marketable feature (MMF) Track completion of BV points Complements AgileEVM
KPIs So Agile Maturity Score as a KPI should Be aligned with the goal of being a more Agile.  Be owned by each Product – who are accountable for the outcome of their efforts Predict successful software development delivering best business value for the buck Provide  timely, actionable data, so users can intervene and improve performance BEFORE its too late Focus on key high-value indicators Easy to understand – users should know how to drive for improved performance Balanced with Velocity/Quality/Stakeholder satisfaction/other.  Trigger positive outcomes in each group working with it Standardized  scale across company Targets/Objectives should be driven by context/situation of each group Reinforce performance by loosely connecting  to incentive systems? Maybe just as a very low influence. Main driver for incentives should continue to be business/team performance meeting goals. Agile Maturity should drive that Stay relevant. Focus on areas which still need work, Add more measures for future objectives when become relevant
Be aligned with the goal of being a more Agile company
Be owned by each Product – who are accountable for the outcome of their efforts
Predict successful software development delivering best business value for the buck
Provide  timely, actionable data, so users can intervene and improve performance BEFORE its too late
Focus on key high-value indicators
Easy to understand – users should know how to drive for improved performance
Balanced with Velocity/Quality/Stakeholder satisfaction/other.
Trigger positive outcomes in each group working with it
Standardized  scale across company
Targets/Objectives should be driven by context/situation of each group
Reinforce performance by loosely connecting  to incentive systems?

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Lean Agile Metrics And KPIs

  • 1. Introduction toLean Agile Metrics and KPIs Yuval Yeret Senior Lean/Agile Consultant @ Agilesparks yuval@agilesparks.com Mobile: 054-4802458
  • 2. Brief Intro AgileSparks is a company that provides complete Agile/Scrum solutions and helps companies to improve project management, with emphasis on software and hardware development. Myself – Lean/Agile Consultant/Coach, coming from R&D leadership background, specializing in scaling agile through Lean. Find more about me at http://www.linkedin.com/in/yuvalyeret, my google profile
  • 4. Measuring/Managing Organization Performance What are we here for? Do Agile? Develop software? Generate most “Value for R&D investment” in a sustainable way? $ for the shareholders? So how do we perform in a way that aligns with that?
  • 5. Assumption – Agile drives Delivery engine Agility  (1) Better Software Development  Better Business (1) Proven in industry-wide research (Cutter, Forrester, QSM), various enterprise companies (Yahoo, Google, Nokia, Salesforce, etc.)
  • 6. Assumption – Agile drives Delivery engine So we… Measure Software Development  To Predict Business performance Measure Agility  To Predict Software Development Performance (1) Proven in industry-wide research (Cutter, Forrester, QSM), various enterprise companies (Yahoo, Google, Nokia, Salesforce, etc.)
  • 8.
  • 9.
  • 10. Leading Agile Indicators Use with Care!
  • 11. Focus on being really READY and really DONE Being READY READY reduces every category of work (defects, rework, total work required, and process overhead) by almost 50% 160%/340% productivity improvement DONE DONE - “Build Quality into Sprints” Fix problems fast Don’t save quality issues for later With the right infrastructure and mindset, IMPROVES productivity Based on Lean/TOC principles…
  • 12. Relevant Measures READY READY Leading: Depth of READY backlog for teams Lagging: Story Flow / Process Cycle Efficiency (PCE) – time story actually worked on versus overall time story in processing Actual Effort variance DONE DONE Average Time to fix for defects (goal – hours-days) Average Time to fix for build failures (goal – minutes) Defects backlog across sprints (goal – 0) Development/Stabilization schedule ratio (~30% normally. 10% goal)
  • 13. READY Leads to Flow and Productivity
  • 14. Why focus on “Time to Fix Defects” Because Fixing bugs earlier is cheaper Why? Early warning (broken/incompatible/conflicting) – faster pin-pointing of root cause and fixing Easy Revert and offline debugging – not in the critical path Savings of ~10K$ for each bug found during sprinthttp://studios.thoughtworks.com/2007/5/10/continuous-integration-in-the-enterprise-with-cruisecontrol Example from a product in an Enterprise Portfolio – 40 escaping defects translate into 400,000$ (multiply per product per release)
  • 15. Example Bug fix costs per Maturity
  • 16. Faster/Cheaper StabilizationPeriod Integration problems are detected and fixed continuously - no last minute hiatus before release dates Less cycles / retesting – Arriving to Packaging with higher quality/readiness Product/PIL focus on Exploratory, Advanced scenarios sooner, and can finish faster Better predictability allows squeezing in more functionality until the last minute Smoother and more predictable flow – shorter stops Makes frequent release strategy more feasible financially
  • 18. Release Burnup with and without CI Shorter Stabilization
  • 19. Release Burnup with and without CI Productivity Improvement
  • 20. Measures for Eng Practices Maturity % Time build is broken % Time build is broken due to compilation errors Come on… % Code Coverage By Unit Tests By Test Automation Checkin early and often Checkin frequency Size of checkins (Smaller better)
  • 24. Earned Business Value Allocate BV points per minimally marketable feature (MMF) Track completion of BV points Complements AgileEVM
  • 25.
  • 26. KPIs So Agile Maturity Score as a KPI should Be aligned with the goal of being a more Agile. Be owned by each Product – who are accountable for the outcome of their efforts Predict successful software development delivering best business value for the buck Provide timely, actionable data, so users can intervene and improve performance BEFORE its too late Focus on key high-value indicators Easy to understand – users should know how to drive for improved performance Balanced with Velocity/Quality/Stakeholder satisfaction/other. Trigger positive outcomes in each group working with it Standardized scale across company Targets/Objectives should be driven by context/situation of each group Reinforce performance by loosely connecting to incentive systems? Maybe just as a very low influence. Main driver for incentives should continue to be business/team performance meeting goals. Agile Maturity should drive that Stay relevant. Focus on areas which still need work, Add more measures for future objectives when become relevant
  • 27. Be aligned with the goal of being a more Agile company
  • 28. Be owned by each Product – who are accountable for the outcome of their efforts
  • 29. Predict successful software development delivering best business value for the buck
  • 30. Provide timely, actionable data, so users can intervene and improve performance BEFORE its too late
  • 31. Focus on key high-value indicators
  • 32. Easy to understand – users should know how to drive for improved performance
  • 34. Trigger positive outcomes in each group working with it
  • 35. Standardized scale across company
  • 36. Targets/Objectives should be driven by context/situation of each group
  • 37. Reinforce performance by loosely connecting to incentive systems?
  • 38. Stay relevant. Focus on areas which still need work, Add more measures for future objectives when become relevant

Editor's Notes

  1. Actual Effort Variance – deviation of actual effort associated with each level of planned effort – strive to reduce the variation, improves predictability, flow.