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Metrics for the LEAN/Agile
    Product Manager
        Yuval Yeret
Main things we want to pay attention
to

 • Performance of the Production floor
   – covered elsewhere (Simple KPIs
   Slides)
 • Performance of the Product
   Management group:
   – Business Value
   – Wastes related to PM
   – Technical Debt
Business value

 • We care about outcome – features delivered,
   adopted, used, paid for
 • How can we measure this?
 • Manage a kanban at the high level features level,
   that tracks when features are adopted, and upon
   first paying customer.
 • Then see how much WIP of features not yet
   adopted we have, LEAd/Cycle time to adoption,
   features that we dropped on the way.
Debt

 • A lot of time debt is taken due to PM
   decision
 • We want to track how much debt we
   have, and take action to minimize it.
 • E.g. we need to release ASN1 now, so we don’t
   “automate tests”/”code it correctly”, so every
   work on ASN1 is slower, until this is fixed
Tracking debt in kanban

 • Have debt card type that is created
   when debt is taken on
 • Track amount of debt versus overall
   WIP/Backlog
 • See whether stable, improving,
   worsening trend
 • Decide on policy for dealing with debt –
   WIP Limit, etc.
 • Track the cycle time and WIP for debt
   cards to see whether they get the SLA
   they deserve
Wastes related to PM

 • Waiting for PM
 • PM related Churn / Context switching
   / Expediting
 • Sunk Costs
 • Rework due to late feedback by PM
Waiting for PM

 • Look at the CFD, observe the size of the
   PM-related queues over time.
   – Especially Pending PM Review which is in the
     middle of DEV/Test
   – And Ready-MMFs as well as DEV Ready in
     some cases which depend on PM approval
   – Advanced – in the cycle time performance
     report, focus on PM areas
 • When looking at exceptions to Cycle
   time, participate in the root cause
   analysis, and see if interaction with PM
   was part of the long cycle time.
PM related Churn / Context switching /
Expediting
 • Add Expedited class of
   service
   – Can be used by PM to
     override priorities in
     DEV WIP – just to top of
     queue, don’t override
     current WIP
 • Add emergency class of
   service
   – Can also override
     current WIP
 • Assumption –
   – This is value trumps
     flow. We give up
     efficiency when we use
Measuring the effect of value over
flow COS

 • Look at cycle times for different
   kinds of classes of service
 • Look at distribution of different COS
   in the WIP
Look at amount of changes in scope

 • Replace – need visualization that
   shows scope changes in content
 • Add – can simply look at total scope
   for a “Release” and observe whether
   its growing
Case Study – Typical release behavior

 250
                           Added           Growth in
                           Scope            Feature
                                           Cost / Dark
 200
                                             Matter

                                                              Total Required Work
 150
                                                              Actual Done
                                                              Planned Scope
                                                              Planned Done
                                                              Original + Dark Matter
 100
                                                              Linear (Total Required Work)
                                                              Linear (Original + Dark Matter)



  50




   0
       1   2   3   4   5    6      7   8        9        10
• Dark Matter – Is where we thought a
  feature costs X
• But then, during
  breakdown, analysis, creating iteration
  stories, we understand it actually costs
  X+D
• Then, PM decides whether to scope to fit
  down to X again, or D is worth it.
• Worthwhile tracking our behaviour on
  this, and learning from it.
• What is the right D number/percent?
  Good question!
• Can be observed in the CFD for a release.
Sunk Costs

 • Add a LANE that collects
   features/stories that are “ON HOLD” –
   the Recycle Bin in the archive area
 • The amount of work done on them is
   the sunk cost
 • Amount of work hard to measure, so
   use alternative:
   – CYCLE TIME – look at cycle time for end
     lane being the recycle bin
Rework due to late feedback by PM

 • Will appear as high cycle times
 • Will appear as moving back cards on
   the board (need to find way to
   measure)
 • Can use special Class of service / card
   type to identify these kinds of stories
   better for measurement/tracking
   purposes
Workload compared to DEV

 • See how much workload is in PM compared
   to DEV
 • Look for trends and major changes that
   can indicate:
   – Bottleneck in PM
   – Idle and slack capacity – expect to see PM seeing
     clients/customers at those times
Measuring Product Management/Ownership Effectiveness in a Lean/Agile world

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Measuring Product Management/Ownership Effectiveness in a Lean/Agile world

  • 1. Metrics for the LEAN/Agile Product Manager Yuval Yeret
  • 2. Main things we want to pay attention to • Performance of the Production floor – covered elsewhere (Simple KPIs Slides) • Performance of the Product Management group: – Business Value – Wastes related to PM – Technical Debt
  • 3. Business value • We care about outcome – features delivered, adopted, used, paid for • How can we measure this? • Manage a kanban at the high level features level, that tracks when features are adopted, and upon first paying customer. • Then see how much WIP of features not yet adopted we have, LEAd/Cycle time to adoption, features that we dropped on the way.
  • 4. Debt • A lot of time debt is taken due to PM decision • We want to track how much debt we have, and take action to minimize it. • E.g. we need to release ASN1 now, so we don’t “automate tests”/”code it correctly”, so every work on ASN1 is slower, until this is fixed
  • 5. Tracking debt in kanban • Have debt card type that is created when debt is taken on • Track amount of debt versus overall WIP/Backlog • See whether stable, improving, worsening trend • Decide on policy for dealing with debt – WIP Limit, etc. • Track the cycle time and WIP for debt cards to see whether they get the SLA they deserve
  • 6. Wastes related to PM • Waiting for PM • PM related Churn / Context switching / Expediting • Sunk Costs • Rework due to late feedback by PM
  • 7. Waiting for PM • Look at the CFD, observe the size of the PM-related queues over time. – Especially Pending PM Review which is in the middle of DEV/Test – And Ready-MMFs as well as DEV Ready in some cases which depend on PM approval – Advanced – in the cycle time performance report, focus on PM areas • When looking at exceptions to Cycle time, participate in the root cause analysis, and see if interaction with PM was part of the long cycle time.
  • 8. PM related Churn / Context switching / Expediting • Add Expedited class of service – Can be used by PM to override priorities in DEV WIP – just to top of queue, don’t override current WIP • Add emergency class of service – Can also override current WIP • Assumption – – This is value trumps flow. We give up efficiency when we use
  • 9. Measuring the effect of value over flow COS • Look at cycle times for different kinds of classes of service • Look at distribution of different COS in the WIP
  • 10. Look at amount of changes in scope • Replace – need visualization that shows scope changes in content • Add – can simply look at total scope for a “Release” and observe whether its growing
  • 11. Case Study – Typical release behavior 250 Added Growth in Scope Feature Cost / Dark 200 Matter Total Required Work 150 Actual Done Planned Scope Planned Done Original + Dark Matter 100 Linear (Total Required Work) Linear (Original + Dark Matter) 50 0 1 2 3 4 5 6 7 8 9 10
  • 12. • Dark Matter – Is where we thought a feature costs X • But then, during breakdown, analysis, creating iteration stories, we understand it actually costs X+D • Then, PM decides whether to scope to fit down to X again, or D is worth it. • Worthwhile tracking our behaviour on this, and learning from it. • What is the right D number/percent? Good question! • Can be observed in the CFD for a release.
  • 13. Sunk Costs • Add a LANE that collects features/stories that are “ON HOLD” – the Recycle Bin in the archive area • The amount of work done on them is the sunk cost • Amount of work hard to measure, so use alternative: – CYCLE TIME – look at cycle time for end lane being the recycle bin
  • 14. Rework due to late feedback by PM • Will appear as high cycle times • Will appear as moving back cards on the board (need to find way to measure) • Can use special Class of service / card type to identify these kinds of stories better for measurement/tracking purposes
  • 15. Workload compared to DEV • See how much workload is in PM compared to DEV • Look for trends and major changes that can indicate: – Bottleneck in PM – Idle and slack capacity – expect to see PM seeing clients/customers at those times