Measure Agile Adoption to Business Outcomes
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Michael S. McCalla presents an outcome measurement model for assessing agile adoption. The model focuses on measuring strategic objectives and tactical goals at the enterprise, unit, program, team and individual levels. Self-assessments are an important part of the model to gather feedback on agile practices and identify areas for improvement. The desired outcome of agile adoption should be clear and measurable. Both leading and lagging metrics should be tracked to evaluate progress towards outcomes. The model is demonstrated through a case study of a financial services company aiming to improve customer satisfaction through agile.
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Measure Agile Adoption to Business Outcomes
- 1. Michael S. McCalla An Outcome Measurement Model: Is your Agile Adoption Moving the Needle? Measure Strategic Objectives Self- Assess Tactical Goals
- 2. Michael S. McCalla CSP, PSM II, SA, PMI-ACP • Enterprise Agile Coach • 10 Years of Experience Assisting Organizations with Agile Transformation • Activist in the Agile Community: • One of the original board members of the Agile Uprising, online community dedicated to advancing the Agile Mindset • Data Nerd • Problem Solving and Product Development is My Passion, Coaching is a Close Second • President of Lean Agile Intelligence, an Agile Assessment, Improvement, and Measurement Platform Assisting Organizations with Agile Adoption given their Desired Outcomes
- 3. Poll #1 What are the biggest challenges of adopting agile across your enterprise(aka scaling)? A. Company philosophy or culture at odds with core agile values B. Lack of experience with agile methods C. Lack of management support D. General resistance to change E. Inconsistent processes across teams F. Lack of business/customer/product owner availability G. Regulatory compliance issue H. We don’t have any challenges
- 5. Traditional Transformation Approach Source: Ahmed-Sidky
- 6. Frustration
- 7. What We Need to Consider…. Enterprise Culture Command & Control Leadership
- 8. Agile Adoption Challenges Source: Version One State of Agile 2017 Challenges to Adopting Agile Across the Enterprise/Scaling Source: 2017 Cprime Scaling Agile Survey
- 9. Traditional Transformation Approach Source: Ahmed-Sidky Implies “agile” is the goal…….
- 10. Agile is simply “a means to an end” This movement is about delivering value and creating better business outcomes Agile is Not the Goal
- 11. Value in the Form of Outcomes Value Customer Satisfaction Time to Market Employee Satisfaction ResponsivenessInnovation Reliability Predictability
- 14. Taking It Further Considering Context
- 15. A Different Approach Considering Context The Outcome is the Goal……. Agree and Align on the Outcome......
- 16. Measure and Adapt Considering Context Is the Agile Practice Adoption helping us achieve the desired outcome? Measure Leading Lagging
- 17. Agile Transformation on the Side Vision Mission Organizational Strategy & Objectives Initiative Portfolio Programs IT Agile Transformation
- 18. Agile Transformation as a Program Vision Mission Organizational Strategy & Objectives Initiative Portfolio Programs Program: IT Agile Transformation Objective: Improve Productivity
- 19. Agile Transformation as Part of the Strategy Vision Mission Organizational Strategy & Objectives Agile Transformation Initiative Portfolio Programs
- 20. Poll #2 Can your organization clearly articulate the desired outcome(s) of its Agile Transformation and how it is being measured? A. Yes & Yes B. Yes & No C. No & No D. No & Yes Value Customer Satisfaction Time to Market Employee Satisfaction ResponsivenessInnovation Reliability Predictability
- 21. Measure Strategic Objectives Self-Assess Tactical Goals Outcome Driven Improvement & Measurement Model
- 22. Measure Strategic Objectives Self-Assess Tactical Goals Outcome Driven Improvement & Measurement Model Enterprise Unit Program Team Self For Every Level of Today’s Agile Organization……
- 23. Measure Strategic Objectives Self-Assess Tactical Goals Enterprise Unit Program Team Self Outcome Driven Improvement & Measurement Model: Enterprise Level
- 24. Real Life Case Study Just Do It Advisors is mid-tier (5000 people) asset management boutique that has been in existence for 85 years. They pride themselves on establishing personal relationships with their clients and utilizing an active money management approach. This strategy has enabled them to charge higher fees. However, over the past 6 years, market share and revenue have declined significantly because many of their long standing clients are now deceased and their children have chosen to go elsewhere. Feedback has been competitors offer a comparable service at a cheaper price, and provide more transparency of funds and reporting via online portals. They have a traditional silo-ed organization structure in which the IT organization has always been seen as a cost center who keeps the lights on, and serves multiple business units. Recently, they have been asked to deliver new applications, but feedback was the deliveries did not meet the need or it took to long. They have experienced with Scrum, but it is the typical “Scrum-But.”
- 25. Measure Strategic Objectives Self- Assess Tactical Goals • What outcome are we looking to achieve given our context? Increased Customer Satisfaction with Innovative Products • What do we need to focus on to get us there? Tight feedback loops to ensure we’re delivering the right things • What are some of the challenges? Siloed Environment & Lack of Collaboration • Do we have clear priorities? New Product Development Trump Everything Else • What metrics can we use to measure our progress? Customer Attrition, Referrals, Revenue Enterprise Unit Program Team Self
- 26. • What practices will help us achieve our desired outcomes? 1. Dedicated “True” Product Owners 2. Stable Cross Functional Teams 3. Customer Engagement 4. Experiments and Prototyping 5. Lean Budgets • How are we performing in the practices that will lead to better outcomes? 1. Dedicated “True” Product Owners - Dev Managers 2. Stable Cross Functional Teams - Temp Project Teams 3. Customer Engagement - None 4. Experiments and Prototyping - Governance Constraints 5. Lean Budgets - Annual • Who is best to tell us this information? The people doing the work in the form of self-assessments Measure Strategic Objectives Self-Assess Tactical Goals Enterprise Unit Program Team Self
- 27. Why Self-Assessments? • Easy and Tangible Improvement Model for Teams to Grasp • Self Sustaining – Something that can be done by themselves when coaches aren’t around or consultants walk out the door • Self-Assessments • Invitation to Improve! • Everyone has a voice, and stake in the game • Empowerment to self organize and get to the next level of team performance • Provides Holistic View of Agility Across the Enterprise • Aggregated Results all the way up to the Enterprise Level • Data Analytics to identify patterns preventing Business Agility such as coaching needs, investment opportunities, and organizations constraints
- 28. • What short term tactical goals can we set to help achieve our outcome? 1. Identify Product Owners from the Business 2. Get New Product Owners Training 3. Create 2 Cross Functional Teams for New Prod Dev • Do we have any impediments that are out of control preventing us from improving in the practice? 1. Product Owner Empowerment • What metrics can we use to measure our progress? 1. Leading: # of CF Teams, % of Trained POs, New vs. Existing Prod Dev %, Net Promoter Score (NPS) 2. Lagging: Customer Attrition, Referral, Revenue Measure Strategic Objectives Self-Assess Tactical Goals Enterprise Unit Program Team Self
- 29. • Did we meet our tactical goals and do what we said we were going to do? Look at Leading Indicators • Is it helping us move the needle? Look at Lagging Indicators • Do we have organization constraints that are slowing us down? This is an opportunity to gather insights and determine new objectives for another cycle of improvement • Do we need to continue improving in these practices, or should we try some others? Has our hypothesis proved to be true? Measure Strategic Objectives Self-Assess Tactical Goals Enterprise Unit Program Team Self
- 30. Measure: Tracking Progress of Leading Indicators Measure Strategic Objectives Self-Assess Tactical Goals Track leading indicators to see if the team is progressing towards the goal
- 31. Measure: Track Progress of Lagging Indicators Measure Strategic Objectives Self-Assess Tactical Goals Track lagging indicators to see if the tactical improvement is leading to desired outcomes
- 32. Measure: Track Organization Patterns Measure Strategic Objectives Self-Assess Tactical Goals Look at patterns across the organization to identify possible organization constraints
- 33. Measure: Putting it All Together Measure Strategic Objectives Self-Assess Tactical Goals Practice Improvement
- 34. Did we meet our tactical goals and do what we said? Is it helping us achieve the desired outcome? Do we have organization constraints slowing us down? Outcome Driven Improvement and Measurement Model Canvas What is important to this team right now? What outcome are we looking to achieve? What are some of the teams' challenges? Measure Strategic Objectives Self- Assess Tactical Goals What short term tactical goals can we set in those practices to help us achieve our desired outcomes? Do we have any impediments out of our control preventing us from achieving those tactical goals? What metrics, both leading and lagging, can we use to measure our progress? What Agile and Lean practices will help us achieve those outcomes? Where could we go to better understand the practices and if we are doing them correctly? Who is best to assess our performance on them?
- 35. Takeaways • Agile Transformations should not be looked at as just another program, rather the catalyst to achieve the organization’s strategy and objectives • Agile is not the goal; start with outcomes and context and gain alignment • Define the form of value you are looking to achieve, and measure it. • Utilize self-assessments to drive improvement in the practices that will lead to your desired business outcomes Vision Mission Organizational Strategy & Objectives Agile Transformation Initiative Portfolio Programs
- 36. Contact Website: www.leanagileintelligence.com Email: mmccalla@leanagileintelligence.com Twitter: @MSMcCalla_1 LinkedIn: https://www.linkedin.com/in/michaelsm ccalla/ Website: www.cprime.com Email: marketing@cprime.com Twitter: @cPrimeInc LinkedIn: https://www.linkedin.com/in/cprime-inc
- 37. Appendix
- 38. Tactical Goals: Determine Leading Indicators • Team and groups should proactively pick the metrics that will help them track their progress towards their desired outcomes so they can baseline and incrementally measure progress • Identify Leading Indicators that will help measure if you are on track to achieve your tactical goal Measure Strategic Objectives Self- Assess Tactical Goals Time to Market Customer Satisfaction Employee Satisfaction Innovation Responsiveness Reliability Predictability Throughput (Velocity) NPS Happiness Index # of New Products Released Product/ Project Lead Time Test Coverage Story Point Attainment Build Time Value Points Team Health Assessment Bug Fixing vs New Product Development % Feature Lead Time Builds Per Day Velocity Variation Deployment Lead Time Cost of Delay Code Complexity New Environment Automation Failed Deployments
- 39. Measure: Determine Lagging Indicators • Team and groups should proactively pick the metrics that will help them track their progress towards their desired outcomes so they can baseline and incrementally measure progress • Identify Lagging Indicators to see if your tactical improvements are moving the needle Measure Strategic Objectives Self- Assess Tactical Goals Time to Market Customer Satisfaction Employee Satisfaction Innovation Responsiveness Reliability Predictability Number of Releases ROI Attrition New Customer % New Project/Product Cycle Time Escaped Defects in Prod On Time Delivery Rate Project/Product Cycle Time Revenue Yearly Surveys New Markets Entered New Feature Cycle Time Availability Feature Cycle Time Profit Number of Production Deployments # of Prod Deployments