Flow Metrics: What They Are & Why You Need Them
- 1. ddegrandis.com @dominicad Flow Metrics: What they are & why you need them Dominica DeGrandis Director, Digital Transformation
- 2. ddegrandis.com @dominicad • Flow metrics are tied to business value • Flow metrics are based on outcomes • Flow metrics provide a feedback loop to improve decisions WHAT’s THE POINT?
- 3. ddegrandis.com @dominicad 1. Flow Time – a measure of speed Yes, let’s do this!Flow Time: The duration from when work enters the value stream to its completion.
- 4. ddegrandis.com @dominicad 90th percentile filtered on business requests Measuring Flow Time helps with predictability date Percentiles answers Q: “What’s the probability of completing work in x days?” Inspired by Troy Magennis http://focusedobjective.com/team-metrics-right/
- 5. ddegrandis.com @dominicad Look at Flow time How fast? Flow Time date Unplanned work delays Planned work Inspired by Troy Magennis http://focusedobjective.com/team-metrics-right/ . What we measure impacts people b/c people value what is measured.
- 6. ddegrandis.com @dominicad date 2. Flow Velocity – a measure of productivity Flow Velocity: The number of items completed during a given time frame.
- 7. ddegrandis.com @dominicad date FV trend over time provides data for teams to see delivery rates Question: Does Flow Velocity improve with faster Flow Time?
- 8. ddegrandis.com @dominicad Dominica DeGrandis Thief Unplanned Work Transaction costs: Low for a one-time 6 month supply High for a one day supply. Knowledge work is perishable Consider Reducing Batch Size
- 9. ddegrandis.com @dominicad Dominica DeGrandis Thief Unplanned Work Unplanned Work: Interruptions that prevent you from finishing something or from stopping at a better breaking point. Unplanned Work is a time thief b/c unplanned work usurps planned work @dominicad While economies of scale can reduce costs in manufacturing, software is a different story. Two things to consider: • Transaction cost • Holding cost
- 10. ddegrandis.com @dominicad 3. Flow Efficiency - a measure to expose wait time Flow Efficiency: The percentage of time where work is in an active state vs. a wait state.
- 11. ddegrandis.com @dominicad “If you measure anything, measure wait time.”
- 13. ddegrandis.com @dominicad “Things take too long” is a universal problem work request How many get work intake requests via email? Disconnects in communication interferes with collaboration & delays delivery
- 14. ddegrandis.com @dominicad 4. Flow Load – a measure to balance demand & capacity Flow Load: All the partially completed work. All the work-in- progress (WIP) in the value stream
- 15. ddegrandis.com @dominicad Dominica DeGrandis WIPis a leading indicator
- 16. ddegrandis.com @dominicad Dominica DeGrandis Thief Too much Work-in-progress (WIP) High WIP means that other items sit waiting for service longer. The single most important factor that affects queue size is capacity utilization.
- 17. ddegrandis.com @dominicad Dominica DeGrandis Thief Too much Work-in-progress (WIP) Queuing Theory allows us to quantify the relationship between wait times and capacity utilization. Wait times increase exponentially as utilization approaches 100%. Queuing Theory: Applied statistics that studies waiting lines If the goal is speed, consider managing work by queues. http://reinertsenassociates.com/books/
- 18. ddegrandis.com @dominicad Dominica DeGrandis Projects and tasks that compete with each other. Conflicting Priorities is a time thief b/c people take on too much WIP when priorities are unclear. • Visualize WIP • WIP limit as enabling constraint • Primary factor of speed is the amount of WIP Set WIP Limits to balance demand against capacity
- 19. ddegrandis.com @dominicad 5. Flow Distribution: a measure to make tradeoffs clear A decision to do one thing is a decision to delay something else. The proportion of work items in a value stream, adjusted depending on the need to maximize business value.
- 20. ddegrandis.com @dominicad Flow Distribution allocation example (3) (1) (5) (5) WIP limit
- 21. ddegrandis.com @dominicad Sample Value Stream Dashboard Project to Product: How Value Stream Networks Will Transform IT & Business (Mik Kersten) https://itrevolution.com/book/project-to-product/ https://go.tasktop.com/DevOps-Enterprise-Summit-Las-Vegas-Speaker-Presentations.html
- 22. ddegrandis.com @dominicad What we measure impacts people because people value what is measured.
- 23. ddegrandis.com @dominicad 6. A metric to gage happiness “How likely are you to recommend working for this company to a friend?” Safety Example Q’s: • On my team, failure causes inquiry and not blame. • Our leadership is open to hearing bad news. • In my org, failures are learning opportunities and messengers are not punished. @nicolefv https://www.youtube.com/watch?v=avauW5FAWCw promoterspassivesdetractors
- 24. ddegrandis.com @dominicad 7. The Aging Report
- 25. ddegrandis.com @dominicad 7. Change Failure Rate (CFR) Answers the Q: What % of changes to prod fail? CFR = # of failures / total # of work items completed Ex: 60 items completed in Dec, 20 of them resulted in a defect. Dec CFR is 33 %. Failure - a change resulting in an outage or degraded service where hotfix, rollback or patch required.
- 27. ddegrandis.com @dominicad Change Failure Rate – a measure of Quality Change Failure Rate # Failures # total done items date Oh - ok – I see what you mean!!! What we measure impacts people b/c people value what is measured.
- 28. ddegrandis.com @dominicad 53,308 security incidents, 2,216 data breaches, 2,216 https://www.verizonenterprise.com/resources/report s/rp_DBIR_2018_Report_execsummary_en_xg.pdf Allocate capacity for security
- 29. ddegrandis.com @dominicad WHAT’s THE POINT AGAIN? • Flow metrics are tied to business value • Flow metrics are based on outcomes • Flow metrics provide a feedback loop to improve decisions
- 30. ddegrandis.com @dominicad MIK KERSTEN CEO & Co-Founder Tasktop SUZETTE JOHNSON Agile Center of Excellence Lead Northrop Grumman ROBIN YEMAN Lockheed Martin Fellow Lockheed Martin MARK FORD Lead Developer, TIAA Community Director, Vivit KRISTEN BIDDULPH Certified Agile Leader Nationwide Insurance KYLE WILLIAMS Manager Deloitte DAVE WEST CEO Scrum.org DOMINICA DEGRANDIS Director, Digital Transformation Tasktop JEFF ZAHORCHAK Manager, Enterprise Applications Select Medical NICOLE BRYAN VP, Product Tasktop FABIO ECHAVARRIA Senior Consultant Deloitte CARMEN DEARDO Senior VSM Strategist Tasktop Register at: connect.tasktop.com
- 31. ddegrandis.com @dominicad Email: dominica@SendYourSlides.com Subject: flow To receive: • copy of this presentation deck • excerpts of Making Work Visible • Tasktop video on JIRA/SN tool integration • Forrester article: Agile-Plus-DevOps With Value Stream Management • IT Rev paper: Overcoming inefficiencies in work mgmt. systems