KPI's are your best friend lecture by Daniel Breston

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WELCOME
KPIs are you BEST
Friends!
Daniel Breston

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Me!

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ITIL
Agile Lean Itera&ve Dev.
End-User VOC
Teams
Bus. Ownership
PM execu&on
Best Prac&ces Framework –
Strategy, Design, Transi&on,
Opera&ons, CSI
DEVOPS
Customer Quality
Value Streams
Flow
CPI
Problem Solving
Respect for People
Source: Mike Orzen & Associates, Inc. www.maorzen.com
© AXELOS Limited 2014 All rights

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Value & Principles
• Focus on people
• Embrace change and experimentation
Culture
• “Continuous Delivery”
• “Infrastructure as Code”
• Focus on producing value for the end user
• Small batch sizes
• Measure everything
• Show the improvement
• Open information sharing
• Collaboration and communication
Automation
Lean
Metrics
Sharing

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Just curious
?
Is ‘Gaming metrics’ something that happens where you work?
§ No, our reports accurately reflect facts and acDons
§ Yes we “game the numbers since we manage from a distance
§ Not sure!
?
Does your business lifecycle match your IT lifecycle from their point of
view?
§ Yes, most of the Dme
§ Yes, some of the Dme
§ No not really

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Best Technology KPI quote
Don’t measure me on
cost or tradi&onal IT
metrics, but on the
metrics of the
business.
Jim Fowler, CIO, GE Capital

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All about Behaviour
“Tell me how you
measure me,
and I will tell you how I
will behave”
Eliyahu M. GoldraM

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KPI: Does this make
sense?
∏=
=
n
i
i
E
EMSizeAPM
1
xx
∑=
+=
5
1
x01.0
j
jSFBE
where
Effort
kSLOC
kiloSourceLinesOfCode
Effort Multiplier: linear effect on effort
Scale Factor:
exponential effect on effort
Constants that can be
used to calibrate the formula
Daft KPI

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My First KPI
MTBAK

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KPI: Indicator of Performance that
is KEY
An agreed measure that allows us to:
• Assess our performance against a baseline or expectaDon
• Immediately spot issues, problems or waste
• Enables a behaviour
• Let’s us conDnuously improve
• Is a Metric that MaMers
Steve Bell” of LeanIT Strategies:
“A useful metric that makes the invisible visible”

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4 traits of a KPI
OR
Validate
& Jus&fy
Do
something
Confirm
performance
Intervene
or Direct

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KPI Design
§ An owner
§ Defini&on
§ Purpose
§ Equa&on
§ Unit of measure
§ Frequency
§ Data loca&on
§ Dependency
§ Most importantly – the required response when checked

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One KPI to rule them all
Customer Cost of delay Get it back

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Catchball
From Lean IT
with permission from Steve Bell
From Lean Enterprise
with permission from Jez Humble

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KPI Tree Example

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5 Level Example
Employee
Team
GM-1
GM
SGM IIT
IOB
Dep 1
Team 1
Employee 1 Employee 2 Employee n
Team N
Dep 2

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QUALITY
Manage
capacity,
con&nuity
and
technology
SAFETY PRODUCTIVITY PEOPLE CUSTOMER COST
Business
wants:
Easy to use,
highly
available
digital
Less
incidents, less
tes&ng
involvement,
no press
report
BYOD, Data
Analy&cs, less
&me to
market of
new
innova&on
IT people that
speak business
(BRM, tools/
training in
technology,
good people &
suppliers
?
Time to
market
reduced, less
money on RUN
vs CREATE,
budget to
spare
IT must
Deliver secure
services, use
automa&on
more to do
things,
manage stress
of staff,
governance
Understand
business tools
& processes,
solve
problems
with tech
solu&ons,
integrate
data
Learn sob
skills, supplier
management,
train staff
?
Go to cloud,
automa&on,
improve
processes
Senior
Mngmnt
Internal
External
Middle
Mngmnt
No change
incidents
% risk
reduc&on
% complete.
No re-work
% of bad
patches
Compliance
met
Audit issues
DR test
success
% breaches
caused
TTM reduced
Resolu&on
&mes
Rls/Chg cycle
&me
Tool usage/
value
Sa&sfac&on
Fire / Hire
Training
% of
new / old
Customer
sa&sfac&on
VOC
Value-added
features
Value-added
services
Increased
cash flow
Time to cash
Cost of delay
Coast of delat

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KPI tips
• Keep it Simple and SMART
• KPIs drive behaviour
• KPI has data easily collected and collated
• KPIs as a forecast or rough guide are ok
• Measure the outcome not the output to the customer
• Keep checking that you are monitoring and aler&ng on the
right things (not analysis paralysis)
• Look end-to-end as one KPI may impact another (power of
visual mapping and display)
• Collaborate, communicate, have fun

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Join the community
daniel.breston@ranger4.com
www.ranger4.com
@danielbreston

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