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Unlocking Excellence with Agile Metrics

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Learn about the importance of measuring the right things and how to use metrics and data to improve performance. Get the right metrics and KPIs to improve performance so you can deliver on your organization’s most important initiatives. Read The Seven Deadly Sins of Agile Measurement http://2ral.ly/Zqa to make sure you’re measuring performance in a way that actually improves results.

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www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved.
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 4 - Metrics Support Desired Outcomes Outcomes require - Decisions require • Insights require oMeasurements Measurements inspire - Insights inform • Decisions drive oOutcomes
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 5 - Agility Throughout the Business System
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 6 - Enterprise Scale Agile Teams working together deliver value faster
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. Cadence and Synchronization - 7 - RELEASE PLANNING DEMO & RETROSPECTIVE RELEASES / MILESTONES ITERATIONS (Synchronized)
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. Communities Of Practice Agile Team Agile Team Agile Team Agile Team Product Manager Release Train Engineer SM SM PO PO PO Delivery Manager Delivery Manager PO Organized for the Work - 8 -
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. • Measure and improve performance • Guide team execution and value delivery • Correlate value delivered with strategic priorities - 9 - How Metrics Can Help You Succeed
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. • Build an effective measurement plan • Identify traps and actively manage them • Inspect and adapt! - 10 - How Do You Get There?
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. Agile Metrics to Guide Delivery Will we meet our delivery commitments? - 11 -
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. Agile Teams • Will we complete our work in an iteration (stories, tasks, defects, etc.)? Agile Delivery Groups • Will we meet our plan objectives (features, milestones, quality, etc.)? - 12 - Agile Steering
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www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 14 - Maturity and Metrics
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 15 - Maturity and Metrics
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 16 - Teams: Healthy Cumulative Flow
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 17 - Cumulative Flow: WTWF
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 18 - Teams: Consistent Iteration Health Message
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 19 - Delivery: Release Tracking
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 20 - Delivery: Plan and Milestone Progress
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 21 - Delivery: Initiative Progress
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 22 - Delivery: Feature Responsiveness
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 23 - Delivery: Performance Consistency
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. Data-driven Continuous Improvement How do we achieve our goals over time? - 24 -
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. Performance KPIs • Are our teams healthy? • How much can we predictably deliver? • What improvements would we value most? • What improvement action will we try next? - 25 - Performance Metrics Support Outcomes
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 26 - Software Development Performance Index
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 27 - Findings 160,000 50,000 13,000
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 28 - SDPI Dimensions Productivity = Throughput Predictability = Consistency of throughput Responsiveness = Time in process (TiP) Quality = Released defect density
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. The Impact of Agile Quantified - 29 -
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. Work Interacts (Through Workers) … - 30 - … and Impacts Throughput
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 31 - Work in Process
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 32 - Limit WiP Key Findings Teams that aggressively control WiP: ● Cut time in process in half ● Have ¼ as many defects ● But have 34% lower Productivity Recommendations ● If your WiP is high, reduce it ● If your WiP is already low, consider your economic drivers ○ If Productivity drives your bottom line, don’t push WiP too low ○ If Time To Market drives your bottom line, push WiP as low as it will go
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 33 - “We can see that there is almost a 2:1 difference in throughput between teams that are 95% or more dedicated compared with teams that are 50% or less dedicated.” Stable Teams
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. Boost Efficiency and Innovation “We uncovered the performance costs of unstable teams … and are seeing 30 - 50% improvements in both cost and delivery duration compared to similar waterfall projects.” – Michael Santoro, Director, GVS Global Business Partnership Team
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. Recommendations • Limit WiP • If practicing Scrum, use two-week iterations; task out stories • Size teams appropriately: 7 +/- 2 for balanced performance (larger teams are okay) • Have dedicated and stable teams • Encourage small stories - 35 -
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. Traps What will impede our outcomes? - 36 -
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. Common Metrics Traps 1. Manipulation 2. Unbalanced metrics 3. Costly KPIs 4. Availability bias 5. Mechanical decision-making 6. False negatives - 37 -
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 38 - False Negatives
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. Data Integrity Checks for Insights • Quality stories (avoid stories that are really tasks and/or fake stories) • Mapping kanban states to schedule state values (especially in-progress and accepted) • Quantity of in-progress split stories (splitting stories at the end of the iteration) • Defect state value accuracy • Consistent use of defect environment field value • Consistent use of defect priority field - 39 -
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 40 - Use Case: Annual Company Disruptions
www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. The Seven Deadly Sins of Agile Measurement Whitepaper The Impact of Agile Quantified: SDPI Whitepaper Agile Reports and Metrics Rally Help Rally Success Program - 41 - To Learn More...
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Unlocking Excellence with Agile Metrics

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  • 3. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved.
  • 4. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 4 - Metrics Support Desired Outcomes Outcomes require - Decisions require • Insights require oMeasurements Measurements inspire - Insights inform • Decisions drive oOutcomes
  • 5. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 5 - Agility Throughout the Business System
  • 6. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 6 - Enterprise Scale Agile Teams working together deliver value faster
  • 7. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. Cadence and Synchronization - 7 - RELEASE PLANNING DEMO & RETROSPECTIVE RELEASES / MILESTONES ITERATIONS (Synchronized)
  • 8. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. Communities Of Practice Agile Team Agile Team Agile Team Agile Team Product Manager Release Train Engineer SM SM PO PO PO Delivery Manager Delivery Manager PO Organized for the Work - 8 -
  • 9. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. • Measure and improve performance • Guide team execution and value delivery • Correlate value delivered with strategic priorities - 9 - How Metrics Can Help You Succeed
  • 10. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. • Build an effective measurement plan • Identify traps and actively manage them • Inspect and adapt! - 10 - How Do You Get There?
  • 11. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. Agile Metrics to Guide Delivery Will we meet our delivery commitments? - 11 -
  • 12. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. Agile Teams • Will we complete our work in an iteration (stories, tasks, defects, etc.)? Agile Delivery Groups • Will we meet our plan objectives (features, milestones, quality, etc.)? - 12 - Agile Steering
  • 14. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 14 - Maturity and Metrics
  • 15. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 15 - Maturity and Metrics
  • 16. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 16 - Teams: Healthy Cumulative Flow
  • 17. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 17 - Cumulative Flow: WTWF
  • 18. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 18 - Teams: Consistent Iteration Health Message
  • 19. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 19 - Delivery: Release Tracking
  • 20. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 20 - Delivery: Plan and Milestone Progress
  • 21. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 21 - Delivery: Initiative Progress
  • 22. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 22 - Delivery: Feature Responsiveness
  • 23. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 23 - Delivery: Performance Consistency
  • 24. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. Data-driven Continuous Improvement How do we achieve our goals over time? - 24 -
  • 25. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. Performance KPIs • Are our teams healthy? • How much can we predictably deliver? • What improvements would we value most? • What improvement action will we try next? - 25 - Performance Metrics Support Outcomes
  • 26. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 26 - Software Development Performance Index
  • 27. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 27 - Findings 160,000 50,000 13,000
  • 28. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 28 - SDPI Dimensions Productivity = Throughput Predictability = Consistency of throughput Responsiveness = Time in process (TiP) Quality = Released defect density
  • 29. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. The Impact of Agile Quantified - 29 -
  • 30. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. Work Interacts (Through Workers) … - 30 - … and Impacts Throughput
  • 31. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 31 - Work in Process
  • 32. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 32 - Limit WiP Key Findings Teams that aggressively control WiP: ● Cut time in process in half ● Have ¼ as many defects ● But have 34% lower Productivity Recommendations ● If your WiP is high, reduce it ● If your WiP is already low, consider your economic drivers ○ If Productivity drives your bottom line, don’t push WiP too low ○ If Time To Market drives your bottom line, push WiP as low as it will go
  • 33. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 33 - “We can see that there is almost a 2:1 difference in throughput between teams that are 95% or more dedicated compared with teams that are 50% or less dedicated.” Stable Teams
  • 34. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. Boost Efficiency and Innovation “We uncovered the performance costs of unstable teams … and are seeing 30 - 50% improvements in both cost and delivery duration compared to similar waterfall projects.” – Michael Santoro, Director, GVS Global Business Partnership Team
  • 35. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. Recommendations • Limit WiP • If practicing Scrum, use two-week iterations; task out stories • Size teams appropriately: 7 +/- 2 for balanced performance (larger teams are okay) • Have dedicated and stable teams • Encourage small stories - 35 -
  • 36. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. Traps What will impede our outcomes? - 36 -
  • 37. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. Common Metrics Traps 1. Manipulation 2. Unbalanced metrics 3. Costly KPIs 4. Availability bias 5. Mechanical decision-making 6. False negatives - 37 -
  • 38. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 38 - False Negatives
  • 39. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. Data Integrity Checks for Insights • Quality stories (avoid stories that are really tasks and/or fake stories) • Mapping kanban states to schedule state values (especially in-progress and accepted) • Quantity of in-progress split stories (splitting stories at the end of the iteration) • Defect state value accuracy • Consistent use of defect environment field value • Consistent use of defect priority field - 39 -
  • 40. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. - 40 - Use Case: Annual Company Disruptions
  • 41. www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. The Seven Deadly Sins of Agile Measurement Whitepaper The Impact of Agile Quantified: SDPI Whitepaper Agile Reports and Metrics Rally Help Rally Success Program - 41 - To Learn More...
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