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Agile Metrics, Value, and Software

Don McGreal
don.mcgreal@improvingenterprises.com

@donmcgreal

linkedin.com/in/donmcgreal

www.synerzip.com www.synerzip.com
Agenda
1. Types of Metrics
2. Problems with Metrics
3. Metrics in Software Development
4. Evidence-Based Management
5. Questions

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How do you measure progress on your software
projects?
How about value?

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What is Value?
val·ue
noun
the regard that something is held to deserve; the importance,
worth, or usefulness of something.

For companies, it is always presented in money terms.


Profit derived from the use of a product or service

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Delivery Metrics Owner Metrics

Pizzas Delivered per Trip Revenue


Time taking an order Investments/Costs
Time for Delivery Customer Satisfaction
Miles per Delivery Repeat Customers
Fuel Used Employee Satisfaction
Order Accuracy (Quality) Growth
Route Efficiency Market Drivers & Trends
Orders per Driver Market Share

Circumstantial Direct

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Delivery Metrics Owner Metrics

Velocity Revenue
Number of Tests Per Release
Code Coverage Per Employee
Defects Investments/Costs
Coupling Customer Satisfaction
Cohesion Employee Satisfaction
Code Complexity Lead & Cycle Time
Build Failures Innovation Rate
Process Adherence Customer Usage
Circumstantial Direct

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So what?

3 Challenges

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1. Efficiency

Cargo Cults

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1. Efficiency

Using circumstantial metrics as your main guide


can lead to more overhead and waste.

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2. Vision

Are we aligned?

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2. Vision

Using circumstantial metrics as your main guide


can misalign the business and the delivery
organizations.

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3. Incentive

Suboptimal Metrics Source: Robert D. Austin, Measuring and


Managing Performance in Organizations

measurement
indicators
Performance
true
performance

Time
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3. Incentive

Once a measure of performance is made a


target or incentive for the purpose of driving
behavior, it loses the information content that
qualifies it to play such a role.

This is even more true of circumstantial metrics.

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Who?

Delivery Metrics Owner Metrics

Pizzas Delivered per Trip Revenue


Time taking an order Investments/Costs
? Time for Delivery
Miles per Delivery
Customer Satisfaction
Repeat Customers
?
Fuel Used Employee Satisfaction
Order Accuracy (Quality) Growth
Route Efficiency Market Drivers & Trends
Orders per Driver Market Share

Circumstantial Direct

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Who?

Delivery Metrics Owner Metrics

Velocity Revenue
Number of Tests Per Release
? Code Coverage
Defects
Per Employee
Investments/Costs
?
Coupling Customer Satisfaction
Cohesion Employee Satisfaction
Code Complexity Lead & Cycle Time
Build Failures Innovation Rate
Process Adherence Customer Usage
Circumstantial Direct

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Agile Development

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Teams Have Organizational Impediments

impediments management

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Management Makes Investments

training,
coaching,
impediments management infrastructure,
tools,
facilities

But how do we know


these investments
are making a
difference?

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Evidence Based Medicine
1. Frame a proper, pertinent,
focused, and answerable question

1. Systematically assemble best


available evidence

2. Clinically appraise evidence for


validity and usefulness

3. Apply results in practice of the art

4. Evaluate performance

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Evidence Based Management

http://www.ebmgt.org/
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Evidence Based Management
Revenue per Release Installed
Employee Frequency Version Index

Product Cost
Release Usage Index
Ratio
Stabilization

Employee Innovation
Satisfaction Rate
Cycle Time

Customer
Satisfaction Defects

Current Value Time to Market Ability to Innovate


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Evidence Based Management
Diagnose
Direct Evidence Circumstantial Evidence

Improve

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Tracking Metrics

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Tracking Metrics

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Tracking Metrics

Sales

Employee Satisfaction

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So…
Agility isn’t just for IT.
Agility can provide the business with a true
competitive advantage.
The right measurements are essential for this.
They can improve communication, productivity,
and business alignment.

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Thank You!
Don McGreal
don.mcgreal@improvingenterprises.com

@donmcgreal

linkedin.com/in/donmcgreal

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www.synerzip.com
Hemant Elhence
hemant@synerzip.com
469.322.0349

•28
84
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Synerzip in a Nutshell
1. Software product development partner for small/mid-sized technology
companies
• Exclusive focus on small/mid-sized technology companies, typically venture-backed
companies in growth phase
• By definition, all Synerzip work is the IP of its respective clients
• Deep experience in full SDLC – design, dev, QA/testing, deployment
2. Dedicated team of high caliber software professionals for each client
• Seamlessly extends client’s local team, offering full transparency
• Stable teams with very low turn-over
• NOT just “staff augmentation”, but provide full mgmt support
3. Actually reduces risk of development/delivery
• Experienced team - uses appropriate level of engineering discipline
• Practices Agile development – responsive, yet disciplined
4. Reduces cost – dual-shore team, 50% cost advantage
5. Offers long term flexibility – allows (facilitates) taking offshore team captive –
aka “BOT” option

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Our Clients

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Thanks!
Call Us for a Free Consultation!

Hemant Elhence
hemant@synerzip.com
469.322.0349
www.synerzip.com

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