Objectivity or Subjectivity - Owning your bias and interactions - Natalie Warnert Agile2016
Agile2016: Stop Using Agile with Waterfall Goals: Goal Agility with OKR
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Transcript of Agile2016: Stop Using Agile with Waterfall Goals: Goal Agility with OKR
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Stop Using Agile with Waterfall Goals: Goal Agility with OKR
www.leanperformance.com
Felipe Castro
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@meetfelipeLoosing my religion
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@meetfelipe
The Agile Manifesto is Wrong
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@meetfelipe
Agile was created for managing software projects.
As such, it is focused on managing deliverables (user
stories or features).
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@meetfelipe
There are no ceremonies for
tracking results.
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@meetfelipe
“Working Software”
Is not the same as
“Valuable Software”
The First Mistake
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@meetfelipe
“Working software is the primary measure of
progress.” Agile Manifesto
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@meetfelipe
“Working software is the primary measure of
progress.” Agile Manifesto✘
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@meetfelipe
“Our highest priority is to satisfy the customer
through early and continuous delivery
of valuable software.” Agile Manifesto
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@meetfelipe
Marty Cagan, Silicon Valley Product Group
“Teams today are all too often feature factories, with little regard for whether the
features actually solve business problems.”
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Book Recommendation
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@meetfelipe
What is Value?
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@meetfelipe
Value is measured after
delivery
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@meetfelipe
User Stories are experiments
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@meetfelipe
Estimating Value
Is not the same as
Delivering Value
The Second Mistake
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Decision by Committee
Commissioned Study by Forrester Consulting
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Decision by Committee
Commissioned Study by Forrester Consulting
HiPPO
Personal Opinions
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Ron KohaviMicrosoft, General
Manager, Analysis & Experimentation
Amazon, Ex-Director, Data Mining & Personalization
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“Humbling Statistics”•Only 1/3 of ideas created a statistically significant positive change.
•1/3 produced no significant difference.
•1/3 created statistically significant negative change.
•In general, 60-90% of ideas do not improve the desired metrics.
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@meetfelipe
User Stories are experiments
….with a low success rate
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@meetfelipe
Where is Empiricism when it comes to Value?
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@meetfelipe
Where is Inspect and Adapt?
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We need to move away from value estimation towards
value measurement.
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@meetfelipe
We need to evolve
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“Silicon Valley is Coming”
Jamie Dimon, CEO JP Morgan
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Two Models
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What is your target?
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Plan-Driven Vs. Data-Driven
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Plan-Driven Vs. Data-DrivenDeterministic
Phase-Gate Waterfall
Command& Control
Iterative Agile
Distributed
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@meetfelipe
Why do we believe in plans?
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Daniel Kahneman
Nobel Prize Winner
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Planning Fallacy
We underestimate the time, costs, and risks of future actions.
While overestimating the benefits.
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The Plan-Driven model is still alive
Estimating without measuring is Plan-Driven
and a fallacy
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Discovery-Driven Planning
Planning includes making a series of assumptions that are:
•Implicit •Non Validated
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“Your idea is just a series of non validated hypotheses.” Steve Blank
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“No plan survives contact with the enemy”. Helmuth von Moltke
(1800-1891)
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Although we are using Agile tactically,
we are using waterfall for strategy and goal setting
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Static Annual Planning 1
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@meetfelipe
“The only way it's all going to go according to plan
is if you don't learn anything.”
Kent Beck
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Jeff Immelt CEO GE
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“In the digital age, sitting down once a year to do
anything is weird, is just bizarre.”
Jeff Immelt, CEO General Electric
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Goals Cascade ?
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Top-Down Unidirectional
Irreversible Flow No Feedback Loops
Ends Crashing on the Rocks
Cascade (or waterfall):
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Laszlo Bock VP of People Operations, Google
“Research agrees with your intuition:
Having goals improve performance.
Spending hours cascading goals does not.”
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There has to be another way
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Full-Stack Agility
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Strategy
Tactics
Operations
Culture
Goals
The Stack
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Strategy
Tactics
Operations
Culture
Goals
Waterfall Development
Big non-validated bets, long feedback cycles
Annual Static Planning
Top-Down, Command & Control
Cascading (Waterfall)
Goals
The Traditional Stack
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Strategy
Tactics
Operations Agile Development
Lean Startup + Lean Prod Mgmt.
Culture
Goals
Half-Baked Agility
Cascading (Waterfall)
Goals
Annual Static Planning
Top-Down, Command & Control
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Strategy
Tactics
Operations Agile Development
Lean Startup + Lean Prod Mgmt.
Culture
Goals
Half-Baked Agility
Cascading (Waterfall)
Goals
Annual Static Planning
Top-Down, Command & Control
Waterfall Legacy
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The Waterfall Legacy is in direct conflict with Agile
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70%of Agile practitioners
Report tension between their teams and the rest
of the organization.
Embracing Agile, HBR - 2016
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Strategy
Tactics
Operations Agile Development
Culture
GoalsData Driven, Iterative, Hypothesis Validation
“Silicon Culture”
OKR (Goal
Agility)
Full-Stack Agility
Lean Startup + Lean Prod Mgmt.
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Silicon Culture’s 7As
Agility Iterative, incremental, fast feedback
Agnosticism Data driven, hypothesis validation, experiments
Asymmetry Power Laws, Moonshots, 10x Talent
Autonomy Self-managed teams that question “orders”
Alignment 360º Alignment, continuous feedback
Accountability Focus on delivering value
Authenticity Purpose, consistent values
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James March Stanford University
“Culture is
Poetry and
Plumbing”
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When properly used, OKR can change the “cultural plumbing”
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How Silicon Valley sets goals?
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OKR - Objectives and Key Results
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Created by Intel
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Goal Agility 1
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Simplicity
2
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Adopted by Google in 1999
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John Doerr
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Doerr’s Goal Formula
I will ____ as measured by ______
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Doerr’s Goal Formula
I will (Objective) as measured by (this set of Key Results)
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@meetfelipe3Measurement
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Objective: •Aspirational. •Memorable – Simpler, shorter, remarkable. •Qualitative.
OKR: Components
Key Results: •2-5 per Objective. •Quantitative & Measurable. •Metrics (recommended) or Milestones.
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@meetfelipeEngaging Objectives 4
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@meetfelipe
“Ensure the dream”
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@meetfelipe
“Move to the clouds”
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@meetfelipe
Make Everybody Happy ;)
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Key Results: •Increase average weekly visits to 3.3 per active user •Reach a Net Promoter Score of 52%. •Increase non paid (organic) traffic to 80%. •Reduce revenue churn to 1%. •Increase engagement (users that complete a full profile) to 75%.
Objective: Delight our customers
OKR - Example
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Activity #01: Creating one OKR
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•Create one Objective with up to 5 Key Results for one initiative you are working on.
Talk to your neighbor
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5-minute exercise
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Key Results: •Increase average weekly visits to 3.3 per active user •Reach a Net Promoter Score of 52%. •Increase non paid (organic) traffic to 80%. •Reduce revenue churn to 1%. •Increase engagement (users that complete a full profile) to 75%.
Objective: Delight our customers
OKR - Example
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•Activity-based Key Results: Measure the completion of tasks and activities or the delivery of project milestones or deliverables.
•Value-based Key Results: Measure actual results and the successful delivery of value (or a value component) to the organization.
Value-based key results measure the outcomes of successful activities.
Choosing your Key Results
There are two basic types of Key Results:
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Tactical shorter-term OKRs for the teams
High level strategic OKRs for the company
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~60% Bottom Up
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Transparency
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How OKR complements Agile and Lean
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A
Moving from features to value
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@meetfelipe
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@meetfelipe
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OKR helps to create a culture focused on measuring and delivering business value.
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@meetfelipe
From Activities To Value
Definition of Done
Acceptance Criteria
Success Criteria(OKRs)
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B
Enabling autonomy
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Is Agile Command & Control?
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@meetfelipe
Command&Control is still here
“Because Sam said.”
“When Sam is OK with it.”
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@meetfelipe
Command&Control is still here
We call them our delivery team…
…because they deliver what we tell them to.
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“To achieve the success criteria
as defined in the OKRs.”
“To deliver the features the stakeholders
want.”
What is the purpose of the team?
Vs.
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C
OKR incentivizes leaner approaches and smaller
batches
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Is your project too big?
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Value-based Timebox
You have to deliver value until the end of the OKR cycle.
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OKR helps prioritize the backlog
D
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“If a feature idea doesn’t speak directly to one the
OKRs, it’s generally off the list.”
Marty Cagan, Silicon Valley Product Group
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E
Enabling Agile Transformation
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Why executives resist to Agile?
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“You want us to replace our GANTT charts with what?”
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“With a bunch of people standing up”
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“…and post-it notes!”
“Lots of them!”
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“And we have a MANIFESTO!”
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Enabling Agile Transformation
Perceived predictability
Delivered Value
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Instead of committing to deliver X by Y date, the team commits to iterate
towards the agreed results.
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Transforming Activities into Value
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If we are successful with ____________,
we will have more ________
and/or less __________
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If we are successful with the new campaign,
we will have more customer satisfaction (NPS)
and/or less churn
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Group Activity #02: Transforming Activities
into Value
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Talk to your neighbor
•Evaluate your Key Results and separate those that are Activity-based and those that are Value-based.
•Select one Activity-based Key Result and convert it into Value.
OR
•Select one initiative that you have worked on and convert it into Value.
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5-minute exercise
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If we are successful with the new campaign,
we will have more customer satisfaction (NPS)
and/or less churn
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A different mindset
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@meetfelipe
IT Mindset
Vs.
Product Mindset
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IT Mindset Product Mindset
Exists to service the perceived needs of "the business."
Exists to service the needs of the customers.
Requirements gathering Product Discovery
Functional Silos Multi-functional teams
Measured by projects Measured by results
Engineers focus on delivery Engineers help create technology-inspired products
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How to handle the transition?
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Activities
Goal Agility Autonomy
Static Plan Top-Down
Content
Process
Value
“IT/Delivery Mindset”
Decoupling Process and Content
1
2
3Transformation
Routes
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Engaging
Working
Delivered
Valuable Business
Goal Maturity Levels
Engineering & Team
Product & UX
Project Management
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Level Delivered Working Engaging Valuable
Goals
Project Management
Engineering & Team
Product & UX Business
• Schedule• Budget• Scope• Predictability
• # de Bugs• MTTR• Uptime• Response Time• Lead time• Cycle time• Delivery frequency
• % Test Coverage
• Spotify Health Check
• Team Maturity
HEART• Happiness• Engagement• Adoption• Retention• Task success
• Revenue• EBIDTA• Revenue per employee
• Value obtained by the client:• ROI• Benefits• “Customer Success”
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@meetfelipe
OKR Coach, Partner @ Lean Performance
Felipe Castro
leanperformance.com
linkedin.com/in/meetfelipe@meetfelipe