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Prove Your Transformation ROI with Value Stream Management

2020 elevated IT into the spotlight, opening up a window of unprecedented support for accelerating digital innovation and emerging technologies. But even with increased buy-in for investment and adoption, will anything be different this year?

Without the ability to measure and place value on specific transformation initiatives, many organizations are still shooting in the dark, either working on new features without aligning to business strategy, or putting them on the back-burner to concentrate on things that are easier to cross off a list.

In this on-demand webinar, Tasktop Sr. Flow Advisor, Paninya Masrangsan, provides actionable insights on how to prove your transformation ROI with value stream management.

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Prove Your Transformation ROI with Value Stream Management

  1. 1. Master Software at Scale © 2021 Tasktop Master Software at Scale © 2021 Tasktop Technologies Incorporated. Prove Your Transformation ROI with VSM
  2. 2. Master Software at Scale © 2021 Tasktop Paninya Masrangsan Senior Flow Advisor
  3. 3. Master Software at Scale © 2021 Tasktop A Fresh Start 2020 was challenging: • Global pandemic • Unpredictable economy • Shifting business landscape • Accelerating digital innovation • Existing need to modernize legacy platforms and practices • Significant drop in consumer demands It’s enough for us to hope for a better year.
  4. 4. Master Software at Scale © 2021 Tasktop Master Software at Scale © 2020 Tasktop New Year’s Resolutions 0% 10% 20% 30% 40% 50% 60% 70% 80% Save more Lose weight Exercise more Eat healthier Source: Inc. https://www.inc.com/peter-economy/10-top-new-years-resolutions-for-success-happiness-in-2019.html Many people are also energized to make changes in their lives
  5. 5. Master Software at Scale © 2021 Tasktop Master Software at Scale © 2020 Tasktop Low Success Rate By Jan 31, more than half of them will have given up Source: Inc. https://www.inc.com/peter-economy/10-top-new-years-resolutions-for-success-happiness-in-2019.html About 60% of Americans make resolutions By Dec 31, only 8% will have made their goals
  6. 6. Master Software at Scale © 2021 Tasktop What Happened? • Unrealistic goals • Hard to track progress • No long-term plan or support • Competing priorities • Unplanned events • Reverting to old habit Disappointment. Guilt. Repeat again next year.
  7. 7. Master Software at Scale © 2021 Tasktop Master Software at Scale © 2020 Tasktop Organizations face the same challenges • Organizations today have taken five major enterprise-level changes in the last 3 years • Only 34% report successful organizational change implementations • Why? • Lack of tracking = shooting in the dark • Local changes do not align with overall business strategy • Constant need to fight fire over long-term transformation Source: Gartner https://www.gartner.com/en/human-resources/insights/organizational-change-management Clear Success 34% Mixed Results 16% Clear Failure 50%
  8. 8. Master Software at Scale © 2021 Tasktop Master Software at Scale © 2020 Tasktop Is there a better way?
  9. 9. Master Software at Scale © 2021 Tasktop Master Software at Scale © 2020 Tasktop Value Stream Management Value Stream Management is a relatively new practice defined by Forrester as: “A combination of people, process, and technology that maps, optimizes, visualizes, and governs business value flow (including epics, stories, work items) through heterogeneous enterprise software delivery pipelines.” Source: Elevate Agile-Plus-DevOps with Value Stream Management, Forrester Research, Inc., April 20, 2018
  10. 10. Master Software at Scale © 2021 Tasktop Master Software at Scale © 2020 Tasktop Iterative Approach Assess Current State Experiment Analyze Data Adjust
  11. 11. Master Software at Scale © 2021 Tasktop Master Software at Scale © 2020 Tasktop Assess Current State Assess Current State Experiment Collect Data Adjust Determine where you are and where you want to be
  12. 12. Master Software at Scale © 2021 Tasktop Master Software at Scale © 2020 Tasktop Metrics and Measurements What do you know about the current state? • Revenue generated • Budget vs. actual spending • Deployment frequency • Application stability • Story points per sprint • Number of defects
  13. 13. Master Software at Scale © 2021 Tasktop Master Software at Scale © 2020 Tasktop Proxy Metrics Pitfalls Proxy metrics can lead to unintended results • Not the whole picture • Don’t tell you what you think they’re telling you • Create wrong incentives Goodhart’s Law: “When a measure becomes a target, it ceases to be a good measure”
  14. 14. Master Software at Scale © 2021 Tasktop Master Software at Scale © 2020 Tasktop Leading while blindfolded • Multiple specialized tools/silos without end-to-end view • Relying on gut feelings • Localized optimization • Not customer focused
  15. 15. Master Software at Scale © 2021 Tasktop Master Software at Scale © 2020 Tasktop “Measuring only one area of the value stream is like only using two inches of a 12-inch ruler.” John Willis Senior Director of the Global Transformation Office at Red Hat, co-author of The DevOps Handbook
  16. 16. Master Software at Scale © 2021 Tasktop Master Software at Scale © 2020 Tasktop Suggested alternatives: Flow Metrics FlowVelocity Flow Efficiency FlowTime Flow Load Flow Distribution An end-to-end customer-oriented view of a product value stream
  17. 17. Master Software at Scale © 2021 Tasktop Master Software at Scale © 2020 Tasktop Flow Velocity Is value delivery accelerating? • Number of flow items delivered in a set duration • Delivery consistency • Rate of delivery over time • Across work types (feature, defect, debt, risk)
  18. 18. Master Software at Scale © 2021 Tasktop Master Software at Scale © 2020 Tasktop Flow Efficiency Is waste decreasing in our processes? • Ratio of active vs. wait time in delivery
  19. 19. Master Software at Scale © 2021 Tasktop Master Software at Scale © 2020 Tasktop Flow Time Is time-to-market getting shorter? • Duration of time it takes to deliver a flow item • Perception vs. reality • Delivery consistency
  20. 20. Master Software at Scale © 2021 Tasktop Master Software at Scale © 2020 Tasktop Flow Load Are we balancing demand vs. capacity? • Work in progress • Leading indicator. First warning sign. • Too much WIP often leads to trouble • Cognitive overload • Context switching • Impact to quality • Decrease team morale • Unpredictable delivery time • Loss of customer trust • Difficult to strategically plan work
  21. 21. Master Software at Scale © 2021 Tasktop Master Software at Scale © 2020 Tasktop Flow Distribution Are we investing in both business value generation and protection? • What types of work are getting done? • Feature • Defect • Debt • Risk • Depends on context, product maturity, and strategy
  22. 22. Master Software at Scale © 2021 Tasktop Master Software at Scale © 2020 Tasktop Experiment With understanding of current state, work with the team to come up with hypotheses • Where is work getting stuck? • What changes can we make to go faster? Assess Current State Experiment Analyze Data Adjust
  23. 23. Master Software at Scale © 2021 Tasktop Master Software at Scale © 2020 Tasktop Bottlenecks You’re only going as fast as the slowest spot. Speeding up other steps will not result in improvement of overall delivery time.
  24. 24. Master Software at Scale © 2021 Tasktop Master Software at Scale © 2020 Tasktop Software Delivery Examples Adding developers will not solve problems caused by: • Testing bottleneck • Not enough ready-for-dev work • Dependencies with external teams • Release approval cycle • Frequent priority changes You probably have a good guess, but how to confirm it with data?
  25. 25. Master Software at Scale © 2021 Tasktop Master Software at Scale © 2020 Tasktop Viz: Find Bottlenecks Data-driven visualization of: • States where artifacts pile up • States where artifacts spend the most time
  26. 26. Master Software at Scale © 2021 Tasktop Master Software at Scale © 2020 Tasktop Viz: Neglected WIP At-a-glance view of how stale the work in the pipeline is: • Outdated requests • Work gets put on hold after it started • Shifting priorities • Sign of problems in the value stream Measures the ability to adapt to business ever-changing demands
  27. 27. Master Software at Scale © 2021 Tasktop Master Software at Scale © 2020 Tasktop Experiment Once a target bottleneck has been selected, it’s time to experiment. Confirm bottlenecks with data Select most impactful target to start Design experiments with team Start continuous improvement activities
  28. 28. Master Software at Scale © 2021 Tasktop Master Software at Scale © 2020 Tasktop Analyze Data Compare data against baseline. Do they confirm your hypotheses? • If so, great! • If not, also great! It’s a valuable data point. “I have not failed. I’ve just found 10,000 ways that won’t work.” Thomas Edison Assess Current State Experiment Analyze Data Adjust
  29. 29. Master Software at Scale © 2021 Tasktop Master Software at Scale © 2020 Tasktop Adjust Take action based on the results of your analysis: • Document and communicate your findings and lessons learned • Incorporate positive changes into standard procedure • Celebrate and share success stories • Decide on next experiment • Different approach to further alleviate the same pain point • Focus on a new bottleneck Assess Current State Experiment Analyze Data Adjust
  30. 30. Master Software at Scale © 2021 Tasktop Master Software at Scale © 2020 Tasktop • Take one step toward your goal. Do it again. And again. • You will find unexpected roadblocks. Expect to have to adjust • Look at big picture through a value stream management lens • End-to-end perspective • Customer-focused • Measure what matters • Continue to learn, test, adapt, and grow • Be ready to handle any business and technical terrain changes A step toward a successful transformation
  31. 31. Master Software at Scale © 2021 Tasktop Master Software at Scale © 2020 Tasktop “You keep putting one foot in front of the other, and then one day you look back and you've climbed a mountain.” – Tom Hiddleston
  32. 32. Master Software at Scale © 2021 Tasktop Master Software at Scale © 2020 Tasktop Start Learning with Flow Institute Start understanding more about the concepts of value stream management and how to apply Flow Metrics with: • On-demand courses • Interactive workshops • Executive Roundtables flowframework.org/flow-institute
  33. 33. Master Software at Scale © 2021 Tasktop Q & A

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