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What Top Management
Needs to Know About IT




Stephan Schmidt, Vice CTO, brands4friends
Me
Stephan Schmidt
Vice CTO brands4friends




@codemonkeyism




        Stephan Schmidt - What Top Management needs to know about IT
Stephan Schmidt - What Top Management needs to know about IT
What Top Management
Needs to Know About IT




    Stephan Schmidt - What Top Management needs to know about IT
Dragons
Management
                                                                        Black Magic
   Top




                                                                      IT
                                      AP
                                     G                                 Voodoo

                                                                                 ?




       Stephan Schmidt - What Top Management needs to know about IT
That’s wrong!

Can’t manage
Hidden risks




   Stephan Schmidt - What Top Management needs to know about IT
What should you ask?

What should a CEO ask his CTO?
(VP Engineering, Lead developer, …)




      Stephan Schmidt - What Top Management needs to know about IT
Stuff that risks your
business or has huge
revenue impact.



  Stephan Schmidt - What Top Management needs to know about IT
Green Shifting.




    Stephan Schmidt - What Top Management needs to know about IT
Questions
to ask?

 Stephan Schmidt - What Top Management needs to know about IT
What is our largest risk?




    Stephan Schmidt - What Top Management needs to know about IT
How many SPOFs do you have?

(People and technology)




    Stephan Schmidt - What Top Management needs to know about IT
When was your last Backup? Where is it?

When has it been tested the last time?




    Stephan Schmidt - What Top Management needs to know about IT
When will we hit the wall?




    Stephan Schmidt - What Top Management needs to know about IT
KPI/ SLA

•    Availability
•    Bugs in Release
•    Bugs found before
•    Time to Market
•    Do we hit (when?) the wall?




       Stephan Schmidt - What Top Management needs to know about IT
War on Talent




    Stephan Schmidt - What Top Management needs to know about IT
Do not hire IT personal

if you don’t know what you do.




    Stephan Schmidt - What Top Management needs to know about IT
When your recruiting pipeline is empty

     3 months recruiting
+    3 months notice period
+    1 current month
=    7 months from need to filled




    Stephan Schmidt - What Top Management needs to know about IT
Very good developers are 20% more

expensive, but 2000% more productive.




    Stephan Schmidt - What Top Management needs to know about IT
30-50% of programmers with

programming experience can not program.


Cargo Cultists.




    Stephan Schmidt - What Top Management needs to know about IT
Do not let anyone here developers

without a coding test.




    Stephan Schmidt - What Top Management needs to know about IT
Development is a solved problem




    Stephan Schmidt - What Top Management needs to know about IT
Waterfall


                                         Resources
                                           ($$$)




                 Time                                            Scope




Kanban (Lean)                                                        Agile (Scrum)

  Stephan Schmidt - What Top Management needs to know about IT
Time to market => more money




    Stephan Schmidt - What Top Management needs to know about IT
Time to Market

Largest lever NOT in development.

Largest lever in decision phase.




     Stephan Schmidt - What Top Management needs to know about IT
Development Start
Idea



             Front-up           Development




Problems are here
                                  Everyone focuses
                                        here
1 women needs 9 months to deliver a baby.

9 women do deliver a baby in 1 month.




    Stephan Schmidt - What Top Management needs to know about IT
1. Feature



     2. Feature




                                                           1. Feature


                                                                        2. Feature


                                                                                     3. Feature


                                                                                                  4. Feature


                                                                                                               5. Feature
     3. Feature



     4. Feature



     5. Feature




                                       Time                                                                                 Time


Parallel                                                                Serial
 Stephan Schmidt - What Top Management needs to know about IT
Market
                  Opportunity




                         Feeling of
                          urgency



                        Time relative to competitor
                                                               Reinertsen 1998

Stephan Schmidt - What Top Management needs to know about IT
Top Management                                 Attention of top
     possible impact                              management for a
                                                       project




                                                               Reinertsen 1998

Stephan Schmidt - What Top Management needs to know about IT
Productivity




    Stephan Schmidt - What Top Management needs to know about IT
The most important factor in software work is
the quality of the programmers.




    Stephan Schmidt - What Top Management needs to know about IT
The best programmers are up to 28 times
better than the worst programmers.




    Stephan Schmidt - What Top Management needs to know about IT
Developers need 15 minutes
to reach the ZONE.




    Stephan Schmidt - What Top Management needs to know about IT
Site note:

No telephones.




    Stephan Schmidt - What Top Management needs to know about IT
Tools.




    Stephan Schmidt - What Top Management needs to know about IT
No silver bullet.




     Stephan Schmidt - What Top Management needs to know about IT
Performance




    Stephan Schmidt - What Top Management needs to know about IT
Scope




                                                               Time




Stephan Schmidt - What Top Management needs to know about IT
Scope




                                                               Time




Stephan Schmidt - What Top Management needs to know about IT
Scope




                                                                ∞


                                                               Time




Stephan Schmidt - What Top Management needs to know about IT
Technical Debt




    Stephan Schmidt - What Top Management needs to know about IT
Technical
  Debt




                                                                           Time




            Stephan Schmidt - What Top Management needs to know about IT
Technical
  Debt

                                                                             WALL

                                                              Rewrite




                                                                           Time




            Stephan Schmidt - What Top Management needs to know about IT
Work left
                                                       Technical
 to do
                                                         Debt


                                                                     Pressure




                                                                                Time




      Stephan Schmidt - What Top Management needs to know about IT
Lines of
 Code
                                                                          BAD



                                                                                Ok




                                                                                GOOD




                                                                                       Time




           Stephan Schmidt - What Top Management needs to know about IT
How long does it take?




    Stephan Schmidt - What Top Management needs to know about IT
Software estimation is usually done by the
wrong people.




    Stephan Schmidt - What Top Management needs to know about IT
Cone of Uncertainty
 4x




1x                                                                                                 Time
                                                                               Software Complete
                                                           Detailed Design
                                                             Complete
                                       UI Complete

                     Requirements
                      Complete
0,25x

     Initial Idea
                                                                             Steve McConnell



            Stephan Schmidt - What Top Management needs to know about IT
Bad Cone of Uncertainty
 4x




1x                                                                                           Time




                                                     Requirements
                                                      Complete

0,25x

     Initial Idea
                                                                           Steve McConnell



            Stephan Schmidt - What Top Management needs to know about IT
10%             50%                         90%


Probability




                                                                                          Estimation
                                                                                            /Time



                                    1. July     1. August                    1. October




              Stephan Schmidt - What Top Management needs to know about IT
Probability
of Completion

                                                                                    100%




                                                                                 Time or Effort



                                                                 Point in Time
                                                                       X



                Stephan Schmidt - What Top Management needs to know about IT
Brooks Law:

Adding people to a late project makes it later.




    Stephan Schmidt - What Top Management needs to know about IT
DON’T FORGET!

Maintenance typically consumes

40 to 80 percent of software costs.




    Stephan Schmidt - What Top Management needs to know about IT
Thanks!
Questions?
@codemonkeyism
stephan.schmidt@brands4friends.de
   Stephan Schmidt - What Top Management needs to know about IT
Sources


“Software Estimation: Demystifying the Black Art”,
  Steve McConnell


“Developing Products in Half the Time”,
  Donald G. Reinertsen


“The Mythical Man-Month”,
  Frederick P. Brooks


“Peopleware”,
  Tom DeMarco

      Stephan Schmidt - What Top Management needs to know about IT

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What managers need_to_know

  • 1. What Top Management Needs to Know About IT Stephan Schmidt, Vice CTO, brands4friends
  • 2. Me Stephan Schmidt Vice CTO brands4friends @codemonkeyism Stephan Schmidt - What Top Management needs to know about IT
  • 3. Stephan Schmidt - What Top Management needs to know about IT
  • 4. What Top Management Needs to Know About IT Stephan Schmidt - What Top Management needs to know about IT
  • 5. Dragons Management Black Magic Top IT AP G Voodoo ? Stephan Schmidt - What Top Management needs to know about IT
  • 6. That’s wrong! Can’t manage Hidden risks Stephan Schmidt - What Top Management needs to know about IT
  • 7. What should you ask? What should a CEO ask his CTO? (VP Engineering, Lead developer, …) Stephan Schmidt - What Top Management needs to know about IT
  • 8. Stuff that risks your business or has huge revenue impact. Stephan Schmidt - What Top Management needs to know about IT
  • 9. Green Shifting. Stephan Schmidt - What Top Management needs to know about IT
  • 10. Questions to ask? Stephan Schmidt - What Top Management needs to know about IT
  • 11. What is our largest risk? Stephan Schmidt - What Top Management needs to know about IT
  • 12. How many SPOFs do you have? (People and technology) Stephan Schmidt - What Top Management needs to know about IT
  • 13. When was your last Backup? Where is it? When has it been tested the last time? Stephan Schmidt - What Top Management needs to know about IT
  • 14. When will we hit the wall? Stephan Schmidt - What Top Management needs to know about IT
  • 15. KPI/ SLA •  Availability •  Bugs in Release •  Bugs found before •  Time to Market •  Do we hit (when?) the wall? Stephan Schmidt - What Top Management needs to know about IT
  • 16. War on Talent Stephan Schmidt - What Top Management needs to know about IT
  • 17. Do not hire IT personal if you don’t know what you do. Stephan Schmidt - What Top Management needs to know about IT
  • 18. When your recruiting pipeline is empty 3 months recruiting + 3 months notice period + 1 current month = 7 months from need to filled Stephan Schmidt - What Top Management needs to know about IT
  • 19. Very good developers are 20% more expensive, but 2000% more productive. Stephan Schmidt - What Top Management needs to know about IT
  • 20. 30-50% of programmers with programming experience can not program. Cargo Cultists. Stephan Schmidt - What Top Management needs to know about IT
  • 21. Do not let anyone here developers without a coding test. Stephan Schmidt - What Top Management needs to know about IT
  • 22. Development is a solved problem Stephan Schmidt - What Top Management needs to know about IT
  • 23. Waterfall Resources ($$$) Time Scope Kanban (Lean) Agile (Scrum) Stephan Schmidt - What Top Management needs to know about IT
  • 24. Time to market => more money Stephan Schmidt - What Top Management needs to know about IT
  • 25. Time to Market Largest lever NOT in development. Largest lever in decision phase. Stephan Schmidt - What Top Management needs to know about IT
  • 26. Development Start Idea Front-up Development Problems are here Everyone focuses here
  • 27. 1 women needs 9 months to deliver a baby. 9 women do deliver a baby in 1 month. Stephan Schmidt - What Top Management needs to know about IT
  • 28. 1. Feature 2. Feature 1. Feature 2. Feature 3. Feature 4. Feature 5. Feature 3. Feature 4. Feature 5. Feature Time Time Parallel Serial Stephan Schmidt - What Top Management needs to know about IT
  • 29. Market Opportunity Feeling of urgency Time relative to competitor Reinertsen 1998 Stephan Schmidt - What Top Management needs to know about IT
  • 30. Top Management Attention of top possible impact management for a project Reinertsen 1998 Stephan Schmidt - What Top Management needs to know about IT
  • 31. Productivity Stephan Schmidt - What Top Management needs to know about IT
  • 32. The most important factor in software work is the quality of the programmers. Stephan Schmidt - What Top Management needs to know about IT
  • 33. The best programmers are up to 28 times better than the worst programmers. Stephan Schmidt - What Top Management needs to know about IT
  • 34. Developers need 15 minutes to reach the ZONE. Stephan Schmidt - What Top Management needs to know about IT
  • 35. Site note: No telephones. Stephan Schmidt - What Top Management needs to know about IT
  • 36. Tools. Stephan Schmidt - What Top Management needs to know about IT
  • 37. No silver bullet. Stephan Schmidt - What Top Management needs to know about IT
  • 38. Performance Stephan Schmidt - What Top Management needs to know about IT
  • 39. Scope Time Stephan Schmidt - What Top Management needs to know about IT
  • 40. Scope Time Stephan Schmidt - What Top Management needs to know about IT
  • 41. Scope ∞ Time Stephan Schmidt - What Top Management needs to know about IT
  • 42. Technical Debt Stephan Schmidt - What Top Management needs to know about IT
  • 43. Technical Debt Time Stephan Schmidt - What Top Management needs to know about IT
  • 44. Technical Debt WALL Rewrite Time Stephan Schmidt - What Top Management needs to know about IT
  • 45. Work left Technical to do Debt Pressure Time Stephan Schmidt - What Top Management needs to know about IT
  • 46. Lines of Code BAD Ok GOOD Time Stephan Schmidt - What Top Management needs to know about IT
  • 47. How long does it take? Stephan Schmidt - What Top Management needs to know about IT
  • 48. Software estimation is usually done by the wrong people. Stephan Schmidt - What Top Management needs to know about IT
  • 49. Cone of Uncertainty 4x 1x Time Software Complete Detailed Design Complete UI Complete Requirements Complete 0,25x Initial Idea Steve McConnell Stephan Schmidt - What Top Management needs to know about IT
  • 50. Bad Cone of Uncertainty 4x 1x Time Requirements Complete 0,25x Initial Idea Steve McConnell Stephan Schmidt - What Top Management needs to know about IT
  • 51. 10% 50% 90% Probability Estimation /Time 1. July 1. August 1. October Stephan Schmidt - What Top Management needs to know about IT
  • 52. Probability of Completion 100% Time or Effort Point in Time X Stephan Schmidt - What Top Management needs to know about IT
  • 53. Brooks Law: Adding people to a late project makes it later. Stephan Schmidt - What Top Management needs to know about IT
  • 54. DON’T FORGET! Maintenance typically consumes 40 to 80 percent of software costs. Stephan Schmidt - What Top Management needs to know about IT
  • 55. Thanks! Questions? @codemonkeyism stephan.schmidt@brands4friends.de Stephan Schmidt - What Top Management needs to know about IT
  • 56. Sources “Software Estimation: Demystifying the Black Art”, Steve McConnell “Developing Products in Half the Time”, Donald G. Reinertsen “The Mythical Man-Month”, Frederick P. Brooks “Peopleware”, Tom DeMarco Stephan Schmidt - What Top Management needs to know about IT