Lean & Agile Performance Measurement

1 Dr. David F. Rico, PMP, CSEP, FCP, FCT, ACP, CSM, SAFE, DEVOPST witter: Capabilities: Cost of Quality: Return on Investment (ROI): s NEW Business Agility Video: s NEWERD evelopment Operations SecurityVideo: Fighter Jets vs. Amazon Web Services: & AgilePerformance Measurement30 Metrics for Managing SAFe Portfolios, Programs, & TeamsAuthor Background Gov t contractor with 34+ years of IT experience Comp. Sci., Soft. Eng., & Info. Sys. Large gov t projects in , Far/Mid-East, & Europe2 Career systems & software engineering methodologist Lean- Agile , Six Sigma, CMMI, ISO 9001, DoD 5000 NASA, USAF, Navy, Army, DISA, & DARPA projects Published seven books & numerous journal articles Intn l keynote speaker, 195+ talks to 14,300 people Specializes in metrics, models, & cost engineering Cloud Computing, SOA, Web Services, FOSS, etc. Professor at 7 Washington, DC-area universities3On Metrics Lord KelvinLean & Agile FRAMEWORK?

2 Frame-work(fr m'w rk') A support structure, skeletal enclosure, or scaffolding platform; Hypothetical model A multi-tiered framework for using lean& Agile methodsat the enterprise, portfolio, program, & projectlevels An approach embracing values and principles of lean thinking, product development flow, & Agile methods Adaptable framework for collaboration, prioritizing work, iterative development, & responding to change Tools for Agile scaling, rigorous and disciplinedplanning & architecture, and a sharp focus onproduct quality Maximizes BUSINESS VALUEof organizations, programs, & projects with lean- Agile values, principles, & practicesLeffingwell, D. (2011). Agile software requirements: Lean requirements practices for teams, programs, and the enterprise. Boston, MA: Pearson 5 Proven, public well-defined F/W for scaling Lean- Agile Synchronizes alignment, collaboration, and deliveries Quality, execution, alignment, & transparencyfocus Leffingwell, D.

3 (2017). Scaled Agile framework (SAFe). Retrieved July 4, 2017 from do Lean & Agile INTERSECT?6 Agile is naturallylean and based on small batches Agile directly supportssix principles of lean thinking Agile may be convertedto a continuous flow systemWomack, J. P., & Jones, D. T. (1996). Lean thinking: Banish waste and create wealth in your corporation. New York, NY: Free , D. G. (2009). The principles of product development flow: Second generation lean product development. New York, NY: , R. B., & Rico, D. F. (2010). Lean and Agile acquisition and systems engineering: A paradigm whose time has come. DoD AT&L Magazine, 39(6). Economic ViewDecentralizationFast FeedbackControl Cadence& Small BatchesManage Queues/Exploit VariabilityWIP Constraints& KanbanFlow PrinciplesAgile ValuesCustomerCollaborationEmpoweredTeam sIterativeDeliveryRespondingto ChangeLean PillarsRespectfor PeopleContinuousImprovement Customer ValueRelationshipsCustomer PullContinuous FlowPerfectionValue StreamLean Principles Customer relationships, satisfaction, trust, and loyalty Team authority, empowerment, and resources Team identification, cohesion, and communicationLean & Agile Practices Product vision, mission, needs, and capabilities Product scope, constraints, and business value Product objectives, specifications, and Performance As is policies, processes, procedures, and instructions To be business processes, flowcharts, and swim lanes Initial workflow analysis, metrication, and optimization Batch size, work in process.

4 And artifact size constraints Cadence, queue size, buffers, slack, and bottlenecks Workflow, test, integration, and deployment automation Roadmaps, releases, iterations, and product priorities Epics, themes, feature sets, features, and user stories Product demonstrations, feedback, and new backlogs Refactor, test driven design, and continuous integration Standups, retrospectives, and process improvements Organization, project, and process adaptability/flexibilityWhat are Agile Metrics? Met-ric(m t r k) A standard of Measurement ; system of related measures; quantification of a characteristic Quantitative measure of a degree to which Agile projectprocessesor resultingsystems possess some property Numerical ratings to measure the size, cost, complexity, or quality of software produced using Agile methods Measurementof a particular characteristic of an Agile project s scope, time, cost, progress, or technical perf.

5 Measure of the degree of customer collaboration, team-work, iterative development, or adaptabilityto change Ensuring BUSINESS VALUEby measuring operational and team Performance , customer satisfaction, and ROI7 Rico, D. F., Sayani, H. H., & Sone, S. (2009). The business value of Agile software methods. Ft. Lauderdale, FL: J. Ross Lean Metrics8 Late big bang integration increases WIP backlog Agile testing early and often reduces WIP backlog CI/CD/DevOps lower WIP, Cycle Time, & Lead TimeNightingale, C. (2015). Seven lean metrics to improve flow. Franklin, TN: LeanKit. KANBANBOARDCUMULATIVEFLOWDIAGRAMLEADTIME & CYCLETIMEPUTTING ITALLTOGETHERP ortfolioLean Portfolio MetricsComprehensive but Lean set of metrics that can be used to assess internal and external progress for an entire KanbanEnsures Epics and Enablers are reasoned and analyzed prior to a PI boundary, prioritized, and have acceptance Burn-up ChartTracks progress toward epic completion, , Initial estimate, Work completed, and Cumulative work Progress MeasureAt a glance view of the status of all epics in a portfolio, , Epic X, progress, and current vs.

6 Initial est. story ScorecardFour perspectives to measure Performance for each portfolio, , Efficiency, Value delivery, Quality, and Self AssessmentStructured, periodic self assessment to continuously measure and improve portfolio Stream KPIsSet of criteria or KPIs to evaluate value stream investments, , revenues, innovation, intangibles, and lean SolutionSolution Kanban BoardEnsures Capabilities and Enablers are reasoned and analyzed prior to PI boundary, prioritized, and have acc. PredictabilityAggregation of individual predictability measures for ARTs to assess the overall predictability of Solution PerformanceAggregation of individual Performance measures for ARTs to assess the overall Performance of Solution FrameworkDecision rules to align work to financial objectives of Solution and guide economic decision making model used to sequence jobs ( , Features, Capabilities, and Epics) to maximize economic of DelayA way of communicating the impact of time on the outcomes we hope to achieve, , combining urgency and (Job Size)Length of time required to complete an epic, enabler, capability, or feature, , size or complexity in story ProgressTracks feature and enabler status during PI and indicates which features are on track or behind, , plan vs.

7 KanbanEnsures Features are reasoned and analyzed prior to a PI boundary, prioritized, and have acceptance PredictabilityAggregation of Team PI Performance Reports to assess the predictability of ART, , planned vs. actual business PerformanceAggregation of team metrics collected at end of PI, , functionality (velocity, etc.) and quality (tests, defects, etc.).PI Burn-down ChartShows progress toward PI timebox to track work planned for PI against work accepted, , iterations vs. story FlowGraph to visualize amount of work waiting to be done (backlog), work in progress (started), and completed (validated).Art Self AssessmentStructured, periodic self assessment to continuously measure and improve program Pipeline EfficiencyMeasures efficiency of steps in terms of touch and wait time, , analysis, backlog, build, validate, deploy, release, and ReleasesDeployment and release frequency progress as a ratio of deployment to production vs.

8 Product release over timeHow often physical or logical rollbacks performed by overlaying points in time for deployment, release, and IndicatorsHypothesis measures of MMF and MVP business outcomes based upon actionable innovation accounting TestedNumber of successful vs. unsuccessful hypothesis tests (with goal of increasing the number, frequency, and success).Team PerformanceIndividual team metrics collected at end of PI, , functionality (velocity, etc.) and quality (tests, defects, etc.).Team KanbanEnsures Stories and tasks are reasoned and analyzed prior to a PI boundary, prioritized, and have acceptance Business ValueEstimate of actual business value achieved for each team s PI objectives during a PI demo by customer and Agile Self-AssessmentStructured, periodic self assessment to continuously measure and improve team Basic SAFe metrics & assessments at all levels Many are rollups of burndown, velocity, & bus.

9 Value Multi-level kanbans, backlogs, & Performance trackingAgile SAFeMetricsLeffingwell, D. (2017). Scaled Agile framework (SAFe). Retrieved September 18, 2017 from Metrics for value streams, programs, & teams Lean & Agile metrics to evaluate an entire portfolio Metrics of economics, business value, & performancePortfolio MetricsLEANPORTFOLIOMETRICSC omprehensive but Lean set of metrics that can be used to assess internal and external progress for an entire Epics and Enablers are reasoned and analyzed prior to reaching a PI boundary, prioritized, and have acceptance criteria to guide a high fidelity progress toward an epic s completion, , Initial epic estimate line (blue), Work completed line (red), and Cumulative work completed line (green).EPICPROGRESSMEASUREAt a glance view of the status of all epics in a portfolio, , Epic X, Bar length, Vertical red line, and current vs. initial estimated number of story perspectives to measure Performance for each portfolio, , Efficiency, Value delivery, Quality, and SELFASSESSMENTP eriodic assessment to measure and improve portfolio processes, , Lean portfolio management, strategy and investment funding, lean governance, Agile program guidance, and portfolio of KPIs to evaluate ongoing value stream investments, , revenues and profits, non financial innovation indices, internal intangibles such as morale and customer satisfaction, and lean , D.

10 (2017). Scaled Agile framework (SAFe). Retrieved September 18, 2017 from High-level measures of overall portfolio health Combo of tangible and intangible measurements Inc. morale, customer satisfaction, & leanness-agility#1 Lean Portfolio MetricsLeffingwell, D. (2017). Scaled Agile framework (SAFe). Retrieved September 18, 2017 from Visualization of high-level enterprise initiatives Instantly indicates what s in-work and its progress Includes prioritization, WIP limits, & work complete#2 Portfolio KanbanLeffingwell, D. (2017). Scaled Agile framework (SAFe). Retrieved September 18, 2017 from Quantitative pseudo-EVM enterprise-level view Depicts planned vs. actual story points completed Includes story point estimates, actuals, & cumulative#3 Epic Burn-Up ChartLeffingwell, D. (2017). Scaled Agile framework (SAFe). Retrieved September 18, 2017 from Visualization of the status of enterprise initiatives Epic-by-epic view of planned vs.