kpis are your best friend - slides

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WELCOME

KPIs are you BEST Friends!

Daniel Breston

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Me!

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ITIL

AgileLean Itera&veDev.End-UserVOCTeamsBus.OwnershipPMexecu&on

BestPrac&cesFramework–Strategy,Design,Transi&on,Opera&ons,CSI

DEVOPS

CustomerQualityValueStreamsFlowCPIProblemSolvingRespectforPeople

Source: Mike Orzen & Associates, Inc. www.maorzen.com

©AXELOSLimited2014Allrights

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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‘Gamingmetrics’somethingthathappenswhereyouwork?

§  No,ourreportsaccuratelyreflectfactsandacDons§  Yeswe“gamethenumberssincewemanagefromadistance

§  Notsure!

?DoesyourbusinesslifecyclematchyourITlifecyclefromtheirpointofview?

§  Yes,mostoftheDme

§  Yes,someoftheDme

§  Nonotreally

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Best Technology KPI quote

Don’tmeasuremeoncostortradi&onalITmetrics,butonthe

metricsofthebusiness.

JimFowler,CIO,GECapital

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All about Behaviour

“Tell me how you measure me, and I will tell you how I will behave”

EliyahuM.GoldraM

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KPI: Does this make sense?

∏=

=n

ii

E EMSizeAPM1

xx

∑=

+=5

1x01.0j

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

Anagreedmeasurethatallowsusto:

•  AssessourperformanceagainstabaselineorexpectaDon

•  Immediatelyspotissues,problemsorwaste

•  Enablesabehaviour

•  Let’susconDnuouslyimprove

•  IsaMetricthatMaMers

SteveBell”ofLeanITStrategies:“Ausefulmetricthatmakestheinvisiblevisible”

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4 traits of a KPI

OR Validate&Jus&fy

Dosomething

Confirmperformance

InterveneorDirect

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KPI Design §  Anowner§  Defini&on§  Purpose§  Equa&on§  Unitofmeasure

§  Frequency§  Dataloca&on§  Dependency§  Mostimportantly–therequiredresponsewhenchecked

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One KPI to rule them all

Customer Costofdelay Getitback

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Catchball

FromLeanITwithpermissionfromSteveBell

FromLeanEnterprisewithpermissionfromJezHumble

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KPI Tree Example

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5 Level Example

Employee

Team

GM-1

GM

SGM IIT

IOB

Dep1

Team1

Employee1 Employee2 Employeen

TeamN

Dep2

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QUALITY

Managecapacity,con&nuity

andtechnology

SAFETY PRODUCTIVITY PEOPLE CUSTOMER COST

Businesswants:

Easytouse,highly

availabledigital

Lessincidents,less

tes&nginvolvement,nopressreport

BYOD,DataAnaly&cs,less

&metomarketof

newinnova&on

ITpeoplethatspeakbusiness(BRM,tools/trainingintechnology,

goodpeople&suppliers

?

Timetomarket

reduced,lessmoneyonRUNvsCREATE,budgettospare

ITmust

Deliversecureservices,useautoma&onmoretodothings,

managestressofstaff,

governance

Understandbusinesstools&processes,

solveproblemswithtechsolu&ons,integratedata

Learnsobskills,suppliermanagement,trainstaff

?

Gotocloud,automa&on,improveprocesses

SeniorMngmnt

Internal

External

MiddleMngmnt

Nochangeincidents

%riskreduc&on

%complete.Nore-work

%ofbadpatches

Compliancemet

Auditissues

DRtestsuccess

%breachescaused

TTMreduced

Resolu&on&mes

Rls/Chgcycle&me

Toolusage/value

Sa&sfac&on

Fire/Hire

Training

%ofnew/old

Customersa&sfac&on

VOC

Value-addedfeatures

Value-addedservices

Increasedcashflow

Timetocash

Costofdelay

Coastofdelat

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KPI tips •  KeepitSimpleandSMART

•  KPIsdrivebehaviour•  KPIhasdataeasilycollectedandcollated•  KPIsasaforecastorroughguideareok•  Measuretheoutcomenottheoutputtothecustomer

•  Keepcheckingthatyouaremonitoringandaler&ngontherightthings(notanalysisparalysis)

•  Lookend-to-endasoneKPImayimpactanother(powerofvisualmappinganddisplay)

•  Collaborate,communicate,havefun

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Join the community

daniel.breston@ranger4.com www.ranger4.com @danielbreston

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