Driving Digital Transformation Insights with Value Stream Management

1. Webinar with Tasktop Principal Analyst, Chris Condo

3. Master Software at Scale © 2020 Tasktop Master Software at Scale © 2020 Tasktop Tasktop Named a Leader According to the report: “Tasktop’s innovative dashboard and Flow Metrics win customers over.” “Its dashboard is engaging and provides value stream insight and visibility at a glance, enabling users to uncover areas of waste and create plans that target improvement.” “Customer references had very positive comments regarding Flow Metrics, with one customer noting that using Viz elevated its approach to VSM to truly focus on delivering outcomes.” The Forrester Wave™ is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave are trademarks of Forrester Research, Inc. The Forrester Wave is a graphical representation of Forrester's call on a market and is plotted using a detailed spreadsheet with exposed scores, weightings, and comments. Forrester does not endorse any vendor, product, or service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.

4. 4© 2020 Forrester. Reproduction Prohibited. Until recently, this was typical https://www.thespruce.com/office-cubicle-etiquette-1216895 https://www.thespruce.com/increase-office-success-with-feng-shui-1275314

6. 6© 2020 Forrester. Reproduction Prohibited. 6 Poll Question 1: Is your organization able to connect software development and delivery effort with value delivered to the business and/or customers? a. Yes b. No

7. 7© 2020 Forrester. Reproduction Prohibited. 7 Poll Question 2: Does your organization have an automated system to capture software delivery metrics from idea to production? a. Yes b. No c. Don't know

8. Going to Gemba © BMW Plant Leipzig

9. Gemba for Intangibles Code? Meetings? Jira data and Excel/Tableau?

11. 11© 2020 Forrester. Reproduction Prohibited. Unchanged ReleaseVelocity Over 5Years "How often does your team or teams release applications?" 0% 5% 10% 15% 20% 25% 30% 35% We time new releases to coincide with new versions of operating systems or middleware We average one release a year (or less frequently) We average two releases a year We average one release per quarter We average one release a month We average one release a week We average a release a day We release many times per day 2015 2016 2017 2018 2019 Base: 635 (2015), 719 (2016), and 546 (2017) Global developers who work for a software company, as a game developer, for internal IT or technology services and 3,228 (2018) and 3,294 (2019) Developers Source: Forrester Analytics’ Business Technographics® Global Developer Survey, 2015, 2016, 2017, 2018 and 2019.

13. 13 Success Not Measured Equally Developer Metrics • Story points completed • Test coverage • Escaped defects • Cycle time • “DORA” metrics Product Management • Customer experience • NPS • Revenue • Market Share

14. Master Software at Scale © 2020 Tasktop Master Software at Scale © 2020 Tasktop Has your Agile and DevOps transformation… Delivered meaningful, measurable improvement and return? How do you measure value? Provided metrics you are happy to show to your CIO/CEO/Board? Reduced the mismatch between Business/IT? Succeeded At making you more responsive?

15. 15 Overview –Value Stream Management (VSM) A combination of people, process, and technology that maps, optimizes, visualizes, measures, and governs business value flow (including epics, stories, and work items) through heterogeneous enterprise software delivery pipelines. VSM tools are the technology enabling the practices of VSM.

16. 16 VSM:  Map Each Step  Measure Each Step  Connect Outcomes Source: Faster Software Delivery Will Accelerate Digital Transformation Forrester report

17. 17 VSM Control Plane visualizes flow, metrics, alerts, and enables control VSM Map, The logical process map and tools VSM Data Plane captures flow, executes process rules, and supports historical and predictive analytics Visualization of VSM metrics, governance definition execution guided by captured data People, Process, and technologies mapped out and connected via technology or manual steps. Data integration of each tool in the software delivery pipeline and historical data capture to track flow through the value stream. ConceptualView ofVSM

18. 18 Beyond value stream mapping • Q: Is Value Stream Mapping enough? • Q: I already have DevOps, why do I need VSM? • Q: I already have Agile? Why VSM? • Value Stream Management is a new discipline • Needs new tools, new roles • As critical to digital transformation as Value Stream Mapping was to manufacturing

19. 19 19© 2020 FORRESTER. REPRODUCTION PROHIBITED. 2019 Business Priorities Base: 3,294 Developers. Source: Forrester Analytics’ Business Technographics Global Developer Survey, 2019 19% 27% 28% 28% 28% 29% 29% 30% 30% 32% 33% 38% 39% 41% Change our business model Improve the experience of our employees Improve use of data insights in business decision-making Improve the experience of our business partners Accelerate our shift to digital business Improve differentiation in the market Better comply with regulations and requirements Reduce costs Accelerate our response to business and market changes Increase influence and brand reach in the market Improve our ability to innovate Improve our products /services Improve the experience of our customers Grow revenue Which of the following initiatives are likely to be your organization’s top business priorities over the next 12 months?)

21. 21 Use BusinessValueTo Align Each Role

22. Master Software at Scale © 2020 Tasktop Master Software at Scale © 2020 Tasktop The Flow Framework® 1. Measure business value • Drive end-to-end visibility • Communicate with the business 2. Overlay Flow Metrics on top of Agile and DevOps initiatives • Use end-to-end Flow to identify bottlenecks • Use proxy metrics to probe them 3. Conquer the cost of delay

23. FlowVelocity WHAT IS IT? Flow velocity measures productivity by measuring how many flow items of each type were completed over a time period. Helps understand the rate of value delivery over time. Flow Efficiency FlowTime Flow Load WHAT IS IT? Flow efficiency is a measure of waste in a value stream, identifying where work is waiting. Tracks ratio of active time vs. wait time out of flow time. Ideal flow efficiency is above 40%. WHAT IS IT? Flow time measures time to delivery by tracking the time from work start to work complete. Helps understand actual time-to- value and become more predictable. WHAT IS IT? Flow load measures work in progress (WIP) by summing up the number of flow items being actively worked on. Helps balance demand vs. capacity and understand how WIP impacts flow and happiness. Flow Distribution WHAT IS IT? Flow distribution measures de-facto distribution of the flow item types completed over a time period. Drives prioritization discussions to align with business outcomes.

25. 25 PM DEV TEST IT Director VP CIO/CTO, etc. Digitally Connect Teams Aggregatedataandviews VSM Adds Value Horizontally and Vertically

27. Master Software at Scale © 2020 Tasktop Value Stream Management Visibility for Leadership, Actionable for Teams PURE PLAY VSM FLOW MODELING provides real- time, accurate, reliable and scalable data for Tasktop Viz dashboards and analytics FLOW FABRIC ensures that current and future tools are seamlessly supported & enables rapid team onboarding and diverse tool usage FLOW FRAMEWORK® deployment via Viz provides state-of-the-art Flow Metrics connected to Business Results and KPIs/OKRs

28. Master Software at Scale © 2020 Tasktop • Confidential Flow Fabric Flow Modeling Implementing the Flow Framework® Prescriptive methodology for improving flow in software portfolios Product Model Activity Model Integration Model 100+ Tools 300+ Versions Testing Factory Ideate Create Release Operate Plan・Define Design Architect・Code Build ・Test Stage・Verify Deploy Support・Monitor Measure Marketecture Tool Integration Gov & Compliance Data Model Dashboards Mapping Visualizations Metrics & KPIs Analytics Tasktop Hub: Automates the FlowTasktop Viz: Measures the Flow Business Alignment Performance Forensics Flow Metrics Integration Library Reusable Building Blocks Precision Workflows

29. @mik_kersten projecttoproduct.org @mik_kersten projecttoproduct.org Flow Diagnostics

32. © 2020 Tasktop 1. Value stream inundated by defect and support work, prompting process change S1 S2 S3 S4 Following the process change, Flow Distribution shows a consistent increase in the ratio of feature work. Experiment process change began between Sept and Oct.

33. © 2020 Tasktop Aug 01, 2019 - Dec 31, 2019 Group by Month 2. Adding wait states immediately shows the reality – the real bottleneck was in BA capacity 1. Value stream inundated by defect and support work, prompting process change S1 S2 S3 S4 100% Efficiency? Doubtful.

34. © 2020 Tasktop 1. Value stream inundated by defect and support work, prompting process change “Getting visibility into our Flow Distribution motivated us to take action, and we reduced the time we spent on incidents and defects from 60% to 20%.” “We were able for the first time to get a resource allocated to us outside of a budgeting cycle based on taking this live data to our CIO.” -- Manager of Enterprise Applications 2. Adding wait states immediately shows the reality – the real bottleneck was in BA capacity S1 S2 S3 S4 1 2

37. © 2020 Tasktop S1 S2 S3 S4 2. Worse – when you look into the Flow Load, features are just sitting and waiting for very long periods of time 1. Feature delivery is painfully low, and no investment in debt

38. © 2020 Tasktop S1 S2 S3 S4 2. Worse – when you look into the Flow Load, features are just sitting and waiting for very long periods of time 1. Feature delivery is painfully low 3. TasktopViz instantly reveals the core bottleneck in Core Backend Services, a painful legacy constraint

39. © 2020 Tasktop S1 S2 S3 S4 2. Worse – when you look into the Flow Load, features are just sitting and waiting for very long periods of time 1. Feature delivery is painfully low 4. Forcing the conversation on the reality that if they don’t “slay the monolith” they will never be able to compete 3. Viz instantly reveals the core bottleneck in Core Backend Services, a painful legacy constraint

40. © 2020 Tasktop S1 S2 S3 S4 “One of the reasons we brought this tool in is that we’d lost credibility… Not a lot of people want to put money into something [debt] without seeing demonstrable improvements.” -- VP DevOps 2. Worse – when you look into the flow load, features are just sitting and waiting for very long periods of time 1. Feature delivery is painfully low 4. Forcing the conversation on the reality that if they don’t “slay the monolith” they will never be able to compete 3. Viz instantly reveals the core bottleneck in Core Backend Services, a painful legacy constraint

41. “VSM complements the move to broaden our adoption of a product-centric operating model.Years ago, there would have been a small number of folks who identified as a product manager, and they probably had an actuarial background. WithVSM, we now see the value in having a product mindset in everything we do to deliver value to customers.” Associate VP of Lean Process Management, Large US–based Insurance Company VSM connects software development with a product-mindset

44. © 2019 Tasktop Thank you! Christopher Condo Principal Analyst, Forrester Research +1 671-613-6289 ccondo@forrester.com @ChrisCondo2017 Dr. Mik Kersten Founder and CEO, Tasktop mkersten@tasktop.com @mik_kersten