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© Copyright 2019 Pivotal Software, Inc. All rights Reserved.
Cut the Digital Transformation
Fluff: Creating Metrics that Matter
Jeffrey Hammond, Forrester Research
Patrick Feeney, Healthcare Services Corporation
Moderator: Dormain Drewitz, Pivotal
July 18, 2019
Agenda notes
● Value Metrics
● The Metrics Journey
● Metrics missteps
● Culture
3© 2018 FORRESTER. REPRODUCTION PROHIBITED.
How Do Your Peers Measure Software Success?
Base: 3,294,global developers
Source: Forrester Analytics Global Business Technographics Developer Survey, 2019
Value Metrics
5© 2018 FORRESTER. REPRODUCTION PROHIBITED.
It’s tempting to measure data that’s easy to collect
Are Developers “Done on check in?”
What information can we/are we
allowed to radiate?
Do we measure projects? Products?
Services?
What cultural issues are we trying to
modify?
https://en.wikipedia.org/wiki/Build_light_indicator
Velocity Measures Value ?Velocity Measures Value ?
7© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Making Quality “Job One” at Ultimate Software
Defects found in production
Defects found in pre-prod
* C = Δ Developer
$
8© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Metrics Should Span Progress, Quality, Efficiency And Value
Phases of a Metrics Journey
Value
Insights
Performance
Engagement
Measuring what
you need to
improve
Amount of time an engineer spends writing software…
Amount of time it takes to get product into
production...
Measuring your “Time to Production”
https://www.youtube.com/watch?v=ZQGmtuG0Nx8 @dormaindrewitz
Metrics: A Journey of its Own
13© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Let Get Old Skool For a Moment
https://www.tutorialspoint.com/cmmi/cmmi-maturity-levels.htm
Measure what we do...
Measure our
measures over time...
14© 2018 FORRESTER. REPRODUCTION PROHIBITED.
An Example: Estimation Variance Over Time
BCBSIL Mobile App
Start Measuring One Thing...
17© 2018 FORRESTER. REPRODUCTION PROHIBITED.
An Example: Zero Bug Bounce
https://www.slideshare.net/PauloHLeocadio/msf-process-model-v-31
18© 2018 FORRESTER. REPRODUCTION PROHIBITED.
How To Apply Second Order Metrics To Value
𝛥 in customer satisfaction/NPS over time, or during multivariate
testing
𝛥 in revenue, operating margin, channel substitution
𝛥 in engagement frequency, product usage
𝛥 in adoption by other internal teams
Metrics Missteps
20© 2018 FORRESTER. REPRODUCTION PROHIBITED.
A Software Development Story
You get what you measure - but not always in
the way you might expect…
Creating a Culture around
Metrics
22© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Creating A Culture Around Metrics
Align entire teams around shared OKRs
Focus on fewer measure that matter more
Include Progress, Quality, Efficiency And Value - but keep the gross
number low
Measure at the team/squad upward
Use metrics primarily to inform and act (via information radiators)
Cover w/ Image
Metrics That Matter are
Visible
● Answering the question “how are we
doing”
● Small number of highly visible metrics
● Easy to understand
● Constant reinforcement from senior
leadership through middle management
● Education
Don’t stop at signs and
lights.
Add sirens!
Next steps...
● What value are you trying to measure
● Understand your Minimum Valuable Metrics (MVM)
● Starting with one thing… but iterate
● Finding the second order metrics

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Cut the Digital Transformation Fluff: Creating Metrics That Matter

  • 1. © Copyright 2019 Pivotal Software, Inc. All rights Reserved. Cut the Digital Transformation Fluff: Creating Metrics that Matter Jeffrey Hammond, Forrester Research Patrick Feeney, Healthcare Services Corporation Moderator: Dormain Drewitz, Pivotal July 18, 2019
  • 2. Agenda notes ● Value Metrics ● The Metrics Journey ● Metrics missteps ● Culture
  • 3. 3© 2018 FORRESTER. REPRODUCTION PROHIBITED. How Do Your Peers Measure Software Success? Base: 3,294,global developers Source: Forrester Analytics Global Business Technographics Developer Survey, 2019
  • 5. 5© 2018 FORRESTER. REPRODUCTION PROHIBITED. It’s tempting to measure data that’s easy to collect Are Developers “Done on check in?” What information can we/are we allowed to radiate? Do we measure projects? Products? Services? What cultural issues are we trying to modify? https://en.wikipedia.org/wiki/Build_light_indicator
  • 6. Velocity Measures Value ?Velocity Measures Value ?
  • 7. 7© 2018 FORRESTER. REPRODUCTION PROHIBITED. Making Quality “Job One” at Ultimate Software Defects found in production Defects found in pre-prod * C = Δ Developer $
  • 8. 8© 2018 FORRESTER. REPRODUCTION PROHIBITED. Metrics Should Span Progress, Quality, Efficiency And Value
  • 9. Phases of a Metrics Journey Value Insights Performance Engagement
  • 10. Measuring what you need to improve Amount of time an engineer spends writing software… Amount of time it takes to get product into production...
  • 11. Measuring your “Time to Production” https://www.youtube.com/watch?v=ZQGmtuG0Nx8 @dormaindrewitz
  • 12. Metrics: A Journey of its Own
  • 13. 13© 2018 FORRESTER. REPRODUCTION PROHIBITED. Let Get Old Skool For a Moment https://www.tutorialspoint.com/cmmi/cmmi-maturity-levels.htm Measure what we do... Measure our measures over time...
  • 14. 14© 2018 FORRESTER. REPRODUCTION PROHIBITED. An Example: Estimation Variance Over Time
  • 17. 17© 2018 FORRESTER. REPRODUCTION PROHIBITED. An Example: Zero Bug Bounce https://www.slideshare.net/PauloHLeocadio/msf-process-model-v-31
  • 18. 18© 2018 FORRESTER. REPRODUCTION PROHIBITED. How To Apply Second Order Metrics To Value 𝛥 in customer satisfaction/NPS over time, or during multivariate testing 𝛥 in revenue, operating margin, channel substitution 𝛥 in engagement frequency, product usage 𝛥 in adoption by other internal teams
  • 20. 20© 2018 FORRESTER. REPRODUCTION PROHIBITED. A Software Development Story You get what you measure - but not always in the way you might expect…
  • 21. Creating a Culture around Metrics
  • 22. 22© 2018 FORRESTER. REPRODUCTION PROHIBITED. Creating A Culture Around Metrics Align entire teams around shared OKRs Focus on fewer measure that matter more Include Progress, Quality, Efficiency And Value - but keep the gross number low Measure at the team/squad upward Use metrics primarily to inform and act (via information radiators)
  • 23. Cover w/ Image Metrics That Matter are Visible ● Answering the question “how are we doing” ● Small number of highly visible metrics ● Easy to understand ● Constant reinforcement from senior leadership through middle management ● Education
  • 24. Don’t stop at signs and lights. Add sirens!
  • 25. Next steps... ● What value are you trying to measure ● Understand your Minimum Valuable Metrics (MVM) ● Starting with one thing… but iterate ● Finding the second order metrics