Agile2016: Stop Using Agile with Waterfall Goals: Goal Agility with OKR
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The document critiques the application of traditional waterfall methods within agile frameworks, arguing for a model that prioritizes measurable business value over mere deliverables. It emphasizes the necessity of transitioning from goal estimation to goal measurement using OKRs (Objectives and Key Results), promoting a data-driven approach that fosters autonomy and adaptability. Ultimately, it calls for a cultural shift in organizations to embrace a full-stack agile methodology that aligns strategy and execution with value delivery.
Agile2016: Stop Using Agile with Waterfall Goals: Goal Agility with OKR
- 1. Stop Using Agile with Waterfall Goals: Goal Agility with OKR www.leanperformance.com Felipe Castro
- 4. @meetfelipe The Agile Manifesto is Wrong
- 5. @meetfelipe Agile was created for managing software projects. As such, it is focused on managing deliverables (user stories or features).
- 6. @meetfelipe There are no ceremonies for tracking results.
- 7. @meetfelipe “Working Software” Is not the same as “Valuable Software” The First Mistake
- 8. @meetfelipe “Working software is the primary measure of progress.” Agile Manifesto
- 9. @meetfelipe “Working software is the primary measure of progress.” Agile Manifesto ✘
- 10. @meetfelipe “Our highest priority is to satisfy the customer through early and continuous delivery of valuable software.” Agile Manifesto
- 11. @meetfelipe Marty Cagan, Silicon Valley Product Group “Teams today are all too often feature factories, with little regard for whether the features actually solve business problems.”
- 16. @meetfelipe Estimating Value Is not the same as Delivering Value The Second Mistake
- 17. Decision by Committee Commissioned Study by Forrester Consulting
- 18. Decision by Committee Commissioned Study by Forrester Consulting HiPPO Personal Opinions
- 20. Ron Kohavi Microsoft, General Manager, Analysis & Experimentation Amazon, Ex-Director, Data Mining & Personalization
- 21. “Humbling Statistics” •Only 1/3 of ideas created a statistically significant positive change. •1/3 produced no significant difference. •1/3 created statistically significant negative change. •In general, 60-90% of ideas do not improve the desired metrics.
- 22. @meetfelipe User Stories are experiments ….with a low success rate
- 23. @meetfelipe Where is Empiricism when it comes to Value?
- 24. @meetfelipe Where is Inspect and Adapt?
- 25. We need to move away from value estimation towards value measurement.
- 26. @meetfelipe We need to evolve
- 27. “Silicon Valley is Coming” Jamie Dimon, CEO JP Morgan
- 28. Two Models
- 29. What is your target?
- 32. @meetfelipe Why do we believe in plans?
- 34. Planning Fallacy We underestimate the time, costs, and risks of future actions. While overestimating the benefits.
- 35. The Plan-Driven model is still alive Estimating without measuring is Plan-Driven and a fallacy
- 36. Discovery-Driven Planning Planning includes making a series of assumptions that are: •Implicit •Non Validated
- 37. “Your idea is just a series of non validated hypotheses.” Steve Blank
- 38. “No plan survives contact with the enemy”. Helmuth von Moltke (1800-1891)
- 39. Although we are using Agile tactically, we are using waterfall for strategy and goal setting
- 40. Static Annual Planning 1
- 41. @meetfelipe “The only way it's all going to go according to plan is if you don't learn anything.” Kent Beck
- 43. “In the digital age, sitting down once a year to do anything is weird, is just bizarre.” Jeff Immelt, CEO General Electric
- 44. Goals Cascade ?
- 45. Top-Down Unidirectional Irreversible Flow No Feedback Loops Ends Crashing on the Rocks Cascade (or waterfall):
- 46. Laszlo Bock VP of People Operations, Google “Research agrees with your intuition: Having goals improve performance. Spending hours cascading goals does not.”
- 47. There has to be another way
- 50. Strategy Tactics Operations Culture Goals Waterfall Development Big non-validated bets, long feedback cycles Annual Static Planning Top-Down, Command & Control Cascading (Waterfall) Goals The Traditional Stack
- 51. Strategy Tactics Operations Agile Development Lean Startup + Lean Prod Mgmt. Culture Goals Half-Baked Agility Cascading (Waterfall) Goals Annual Static Planning Top-Down, Command & Control
- 52. Strategy Tactics Operations Agile Development Lean Startup + Lean Prod Mgmt. Culture Goals Half-Baked Agility Cascading (Waterfall) Goals Annual Static Planning Top-Down, Command & Control Waterfall Legacy
- 53. The Waterfall Legacy is in direct conflict with Agile
- 54. 70%of Agile practitioners Report tension between their teams and the rest of the organization. Embracing Agile, HBR - 2016
- 55. Strategy Tactics Operations Agile Development Culture Goals Data Driven, Iterative, Hypothesis Validation “Silicon Culture” OKR (Goal Agility) Full-Stack Agility Lean Startup + Lean Prod Mgmt.
- 56. Silicon Culture’s 7As Agility Iterative, incremental, fast feedback Agnosticism Data driven, hypothesis validation, experiments Asymmetry Power Laws, Moonshots, 10x Talent Autonomy Self-managed teams that question “orders” Alignment 360º Alignment, continuous feedback Accountability Focus on delivering value Authenticity Purpose, consistent values
- 57. James March Stanford University “Culture is Poetryand Plumbing”
- 58. When properly used, OKR can change the “cultural plumbing”
- 59. How Silicon Valley sets goals?
- 60. OKR - Objectives and Key Results
- 61. Created by Intel
- 62. Goal Agility 1
- 63. Simplicity 2
- 64. Adopted by Google in 1999
- 66. John Doerr
- 67. Doerr’s Goal Formula I will ____ as measured by ______
- 68. Doerr’s Goal Formula I will (Objective) as measured by (this set of Key Results)
- 70. Objective: •Aspirational. •Memorable – Simpler, shorter, remarkable. •Qualitative. OKR: Components Key Results: •2-5 per Objective. •Quantitative & Measurable. •Metrics (recommended) or Milestones.
- 73. @meetfelipe “Move to the clouds”
- 75. Key Results: •Increase average weekly visits to 3.3 per active user •Reach a Net Promoter Score of 52%. •Increase non paid (organic) traffic to 80%. •Reduce revenue churn to 1%. •Increase engagement (users that complete a full profile) to 75%. Objective: Delight our customers OKR - Example
- 76. Activity #01: Creating one OKR
- 77. •Create one Objective with up to 5 Key Results for one initiative you are working on. Talk to your neighbor
- 79. Key Results: •Increase average weekly visits to 3.3 per active user •Reach a Net Promoter Score of 52%. •Increase non paid (organic) traffic to 80%. •Reduce revenue churn to 1%. •Increase engagement (users that complete a full profile) to 75%. Objective: Delight our customers OKR - Example
- 80. •Activity-based Key Results: Measure the completion of tasks and activities or the delivery of project milestones or deliverables. •Value-based Key Results: Measure actual results and the successful delivery of value (or a value component) to the organization. Value-based key results measure the outcomes of successful activities. Choosing your Key Results There are two basic types of Key Results:
- 81. Tactical shorter-term OKRs for the teams High level strategic OKRs for the company
- 82. ～60% Bottom Up
- 83. Transparency
- 84. How OKR complements Agile and Lean
- 85. A Moving from features to value
- 86. @meetfelipe
- 87. @meetfelipe
- 88. OKR helps to create a culture focused on measuring and delivering business value.
- 89. @meetfelipe From Activities To Value Definition of Done Acceptance Criteria Success Criteria (OKRs)
- 91. Is Agile Command & Control?
- 92. @meetfelipe Command&Control is still here “Because Sam said.” “When Sam is OK with it.”
- 93. @meetfelipe Command&Control is still here We call them our delivery team… …because they deliver what we tell them to.
- 94. “To achieve the success criteria as defined in the OKRs.” “To deliver the features the stakeholders want.” What is the purpose of the team? Vs.
- 95. C OKR incentivizes leaner approaches and smaller batches
- 96. Is your project too big?
- 97. Value-based Timebox You have to deliver value until the end of the OKR cycle.
- 98. OKR helps prioritize the backlog D
- 99. “If a feature idea doesn’t speak directly to one the OKRs, it’s generally off the list.” Marty Cagan, Silicon Valley Product Group
- 101. Why executives resist to Agile?
- 102. “You want us to replace our GANTT charts with what?”
- 103. “With a bunch of people standing up”
- 105. “And we have a MANIFESTO!”
- 108. Instead of committing to deliver X by Y date, the team commits to iterate towards the agreed results.
- 110. If we are successful with ____________, we will have more ________ and/or less __________
- 111. If we are successful with the new campaign, we will have more customer satisfaction (NPS) and/or less churn
- 112. Group Activity #02: Transforming Activities into Value
- 113. Talk to your neighbor •Evaluate your Key Results and separate those that are Activity-based and those that are Value-based. •Select one Activity-based Key Result and convert it into Value. OR •Select one initiative that you have worked on and convert it into Value.
- 114. 5-minute exercise
- 115. If we are successful with the new campaign, we will have more customer satisfaction (NPS) and/or less churn
- 116. A different mindset
- 118. IT Mindset Product Mindset Exists to service the perceived needs of "the business." Exists to service the needs of the customers. Requirements gathering Product Discovery Functional Silos Multi-functional teams Measured by projects Measured by results Engineers focus on delivery Engineers help create technology-inspired products
- 119. How to handle the transition?
- 120. Activities Goal Agility Autonomy Static Plan Top-Down Content Process Value “IT/Delivery Mindset” Decoupling Process and Content 1 2 3 Transformation Routes
- 121. Engaging Working Delivered Valuable Business Goal Maturity Levels Engineering & Team Product & UX Project Management
- 122. Level Delivered Working Engaging Valuable Goals Project Management Engineering & Team Product & UX Business • Schedule • Budget • Scope • Predictability • # de Bugs • MTTR • Uptime • Response Time • Lead time • Cycle time • Delivery frequency • % Test Coverage • Spotify Health Check • Team Maturity HEART • Happiness • Engagement • Adoption • Retention • Task success •Revenue •EBIDTA •Revenue per employee •Value obtained by the client: •ROI •Benefits •“Customer Success”
- 123. @meetfelipe OKR Coach, Partner @ Lean Performance Felipe Castro leanperformance.com linkedin.com/in/meetfelipe @meetfelipe