Traian Kaiser, GoTo Prague Conference, November 2011 2 Traian n - - PowerPoint PPT Presentation

Ho How to to me measur ure pr produ ducti ctivity ity in in softw twar are de development nt

Traian Kaiser, GoTo Prague Conference, November 2011

Traian n Kaiser er

Director Agile Project Management & PMO (XING AG)

13 years of Internet-Business Companies: IBM, Yahoo, XING, … MBA, Agilist, People Manager

Employees in product development

~140

Releases a year

50 50

Braint ainteaser (ge get started)

Wh What makes the the difference?

vs.

vs.

Produ duct ctivity ity (overall all)

Producti uctivity ty Out Outpu put Inpu put what coun

• unts

ts What is is ne neede ded

Surplus Value

Producti uctivity ty Out Outpu put Inpu put

Surplus Value

Revenue (Output) 34 Mio. € 44 Mio. € 54 Mio. € Cost (Input) 23 Mio. € 33 Mio. € 38 Mio. € 2008 2009 2010 2008 2009 2010

15 30 45 60 2008 2009 2010

Input Output Output same productivity Overall Figures 2008 2009 2010 Revenue (Output) 34 Mio. € 44 Mio. € 54 Mio. € Cost (Input) 23 Mio. € 33 Mio. € 38 Mio. € „Surplus Value“ 48% 33% 42% Revenue with 48% SV 34 Mio. € 49 Mio. € 56 Mio. € Productivity lack

Produ duct ctivity ity in in softw twar are de developme ment nt

Producti uctivity ty

in SW W de devel elopment

Out Outpu put Inpu put

Value of developed and distributed software solutions for business requirements (including quality and time). Cost of created and distributed software solutions trough people, services and other resources needed.

„Do the right things.“ Effect ectiveness „Do the things right“ Effi ficiency

Do

• the

the right th things Do

• the

the th things right

Time to market Innovations Domain expertise Business Models Maintanance efforts Development efforts Staff costs System cost Market knowledge Service Costs Coordination- & communication efforts

“Software development is a creative and complex process. Effectiveness and efficiency can not be optimized independently of each other and the interactions are not detectable in their entirety.”

Traian Kaiser

Ex Examp ample 1 1 – Discovery Process

Balancing effectiveness vs. efficiency by investing time & money to find out if our user benefit from what we plan to do

Ex Examp ample 2 2 – Staff ffin ing

Performance differences between mediocre contributors and „artists“ can be huge. In addition, working team patterns and team productivity is another game to play.

*Real project example by David J. Anderson from the Book „Kanban“

Time per ticket Cost Tickets per Team Member Highest Productivity Lowest Cost Best Service Proc

• cess-
• p
• pti

timiz izatio ion Reor eorgan anizatio ion Capaci city increase Slack?

Ex Examp ample 3 3 – Opti timiz mization Prob

• blems

Ho How can we we me measur ure pr produ ducti ctivity ty in in softw twar are de developme ment nt

Redu educe „Waste“ (eff fforts ts wit without value) Redu educe coor

• rdin

inati tion

• n

and nd comm

• mmuni

unicati tion effor

• rts

ts Valu lue add addin ing g efforts ts to “the right things”

7 Types of Waste to avoid… … and how to measure them…

Parti tiall ally Done

• ne Work
• rk (Blocked Cards/Tickets/Stories)

No Not used ed Document mentation n Ex Extr tra a Featur ures s (Feature- / Module usage metrics) Task Swi witchin hing g (Work In Progress) Hand ndoff ffs s (Cycle Time) Del Delays s (Lead Time) De Defect cts s (Failure Load, Code Metrics, Test Coverage, Bugs per Line of Code, … )

Communication & coordination to avoid … … are they measureable?…

Insuffi ficent nt

• r
• r e

excessive e pr process s / frame mework Uncl clear ar

• r
• r inade

adequ quate division

• f or
• rgani

nisation units, , role

• les

and nd respon

• nsibilit

ilities Too many depen dependencies

• f all ki

kind nd Value Stream Mapping Performance to Commit / Deadlines Productive Time Analysis Throughput / Velocity Variance

Value adding efforts to increase…

Add ddit itonal al Sold Sold / used ed pr products cts Milestone /Project KPIs Team KPIs User Impact Indicators Custom

• mer Sati

tisfact ction User Ratings Number of Customer Complaints / 1000 Customer Net Promoter Score

Be Bewar are: : Effi fficiency me metr trics s can be be dysfun unct ctional al

As Assumed med effi fici ciency me metr trics cs Working hours Utilization Lines of Code Rel elative me metr trics cs & & me metr tric com

• mpari

rison Velocity Me Metr trics as as repl eplacement nt for

• r tr

trust All Metrics

What doe does XING G me measur ure

Custom

• mer Sati

tisfact ction

Net Promoter Score Number of Customer Complaints / 1000 Customer User Test in our own lab User Ratings (platform & mobile apps)

Key Perf erform

• rman

ance inde ndexes by by dedi dedicated Team

Revenues Customer Base Activity rates Other key indexes who drive our business (vary by Team)

Qu Quali lity ty Me Metr trics

Code Metrics (just started) Automated test coverage Bugs per Team / Overall

Cycl cle e Time me & L Lead d Time

20 40 60 80 100 120 140 160 180 200 220 240

Stor

• ry Poi

Points

Inventory Started Designed Coded Complete

WIP Cycle Time

Visuali alizati tion

• n is

is a a powerf rfull ull instr trum ument nt

*Example by David J. Anderson

Con

• ncl

clusion

Productivity metrics can be dysfunctional. Used correctly as feedback channel, certain metrics could provide important information. Coupling effectiveness and efficiency metrics is essential. Recognize dependencies between effectiveness and efficiency Consider software development as a creative and complex process

Thank you

• u

Ques Questions?

See what‘s up in our Lean Software Development Group: http://www.xing.com/net/leansoftwaredevelopment/ Traian Kaise iser r Director Agile Project Management & PMO XING-Profile: xing.to/traian The Professional Network www.xing.com

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