Lean Agile Metrics And KPIs
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The document discusses the importance of lean agile metrics and KPIs for improving project management within organizations, emphasizing the role of agile practices in enhancing software development and business performance. It distinguishes between leading and lagging indicators to measure progress, with recommendations on focusing efforts on quality and timely defect resolution. The text highlights that maintaining agility and alignment with business goals is crucial for predicting successful software development and achieving optimal value for stakeholders.
Lean Agile Metrics And KPIs
- 1. Introduction toLean Agile Metrics and KPIsYuval YeretSenior Lean/Agile Consultant @ Agilesparksyuval@agilesparks.comMobile: 054-4802458
- 2. Brief IntroAgileSparks 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 PerformanceWhat 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 engineAgility (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 engineSo we…Measure Software Development To Predict Business performanceMeasure Agility To Predict Software Development Performance(1) Proven in industry-wide research (Cutter, Forrester, QSM), various enterprise companies (Yahoo, Google, Nokia, Salesforce, etc.)
- 8. Lagging/Leading KPIs Which leads us to KPIs – Key Performance IndicatorsThere are two major types of KPIs: leading and lagging indicators. Leading indicators measure activities that have a significant effect on future performance.
- 9. Lagging indicators, such as most financial KPIs, measure the output of past activity.
- 10. Leading Agile IndicatorsUse with Care!
- 11. Focus on being really READY and really DONEBeing READY READYreduces every category of work (defects, rework, total work required, and process overhead) by almost 50%160%/340% productivity improvementDONE DONE - “Build Quality into Sprints”Fix problems fastDon’t save quality issues for laterWith the right infrastructure and mindset, IMPROVES productivityBased on Lean/TOC principles…
- 12. Relevant MeasuresREADY READYLeading: Depth of READY backlog for teamsLagging: Story Flow / Process Cycle Efficiency (PCE) – time story actually worked on versus overall time story in processingActual Effort variance DONE DONEAverage 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 cheaperWhy?Early warning (broken/incompatible/conflicting) – faster pin-pointing of root cause and fixingEasy Revert and offline debugging – not in the critical pathSavings of ~10K$ for each bug found during sprinthttp://studios.thoughtworks.com/2007/5/10/continuous-integration-in-the-enterprise-with-cruisecontrolExample 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 StabilizationPeriodIntegration problems are detected and fixed continuously - no last minute hiatus before release datesLess cycles / retesting – Arriving to Packaging with higher quality/readinessProduct/PIL focus on Exploratory, Advanced scenarios sooner, and can finish fasterBetter predictability allows squeezing in more functionality until the last minuteSmoother and more predictable flow – shorter stopsMakes frequent release strategy more feasible financially
- 18. Release Burnup with and without CIShorterStabilization
- 19. Release Burnup with and without CIProductivityImprovement
- 20. Measures for Eng Practices Maturity% Time build is broken% Time build is broken due to compilation errorsCome on…% Code CoverageBy Unit TestsBy Test AutomationCheckin early and oftenCheckin frequencySize of checkins (Smaller better)
- 21. Burndown + EVM
- 22. Agile Earned Value Mgmt
- 23. AgileEVM Metrics
- 24. Earned Business ValueAllocate BV points per minimally marketable feature (MMF)Track completion of BV pointsComplements AgileEVM
- 26. KPIsSo Agile Maturity Score as a KPI shouldBe aligned with the goal of being a more Agile. Be owned by each Product – who are accountable for the outcome of their effortsPredict successful software development delivering best business value for the buckProvide timely, actionable data, so users can intervene and improve performance BEFORE its too lateFocus on key high-value indicatorsEasy to understand – users should know how to drive for improved performanceBalanced with Velocity/Quality/Stakeholder satisfaction/other. Trigger positive outcomes in each group working with itStandardized scale across companyTargets/Objectives should be driven by context/situation of each groupReinforce 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 thatStay 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
- 33. Balanced with Velocity/Quality/Stakeholder satisfaction/other.
- 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
- #13: Actual Effort Variance – deviation of actual effort associated with each level of planned effort – strive to reduce the variation, improves predictability, flow.