How to measure the value of agile transformation

2019.9.23 ~ 9.27, we conducted the sixth agility assessment, self-assessment team to evaluate still divided into the team and coaching staff live on-site assessment.
Many assessment methods for the evaluation and assessment team, and I gradually share to you by way of video.
Agile longer follow restructuring, a lot of things more clear, for example, this time I want to and we talk about the "how to measure the value of Agile transformation."
By measuring the data
to improve the effectiveness of vanity index

First, I called again metrics (such as throughput requirements, delivery lead time) to improve the effectiveness scoffed, then measure the effect of figures to make improvements is a typical KPI thinking, if you are using a production and research throughput requirements and development lead time is measured before and after the change to do agility, then the following content can not read.
As KPI thinking what is? We can simply get to know under OKR, Why OKR than the target KPI help us manage a big step forward, because OKR not only focus on the key results, more importantly OKR focus on target to complete the process of management, that is to say OKR guide we need to do a good job on the lower level and process management, rather than simply look at the figures, with the detailed interaction of the process, timely expose and solve problems in order to better promote the key outcomes of reach.
Measures to improve the effectiveness of the organization and management to focus completely again drawn to look KPI figures, again ignoring the importance of the work process. So typical "degradation" necessarily be swept circle with research and production of knowledge workers as the main force, independent thinking enough to see that not everyone has, the more visible "spread true, do not spread representation" ([witness] agility fourth bomb : Truthful, do not spread representation) importance.
So, here I am again a clear-cut opposition to measure performance before and after the quick transformation of production and research point of view by measuring the numbers, especially the so-called throughput requirements, lead times, etc., are some totally vanity metrics.
So, what I have to do is it? I'll show everyone thinking.
What is the meaning of existence of the organization
100 years ago, Barnard have told us' raison d'être of the organization is to achieve the goal ", and in order to achieve the target, by number, by the concept can not be achieved by saying that rely on to achieve? Only action.
We then pull back to the present time, a professor at Stanford University's Fogg proposed a behavioral formula: B = MAT, motivated by a person's behavior, and the ability to trigger three variables constitute.
In an organization, we rely on actions to achieve these goals, but if you need someone to produce the corresponding action, it must be allowed to have the corresponding ability.
So, do a quick transformation of the organization, not to see what the framework of the imported cattle are not cattle, not to see who do not measure what the data is, the core of the organization is to let people have the ability to practice agile methods, and then to produce agile practice behavior in order to support organizational goals to reach.
T1
This is why we will do agility quarterly assessment of the root cause, the core is to continuously improve our ability to participate in all Agile personnel.
What value is agile
in the previous article, I and we explore what agile is worth in the end? Its core is cost efficiency.
If your organization is in its infancy, so trial and error is to reduce the cost of products face market; if your organization is in the development stage, the collaboration is to reduce the cost of the lateral sectors; if your organization is at a mature stage, so agile It can help organizations precipitation excellent culture, reducing the cost of management of the organization.
Now that organizational changes in response to the environment, personnel, structure, strategy changes are particularly fast, no matter at what stage, reducing the cost of the organization's business needs to answer the question. So we use quick thinking and quick way to help organize and reduce trial and error, collaboration and construction costs culture.
What agile by way of
cost reduction and efficiency

in the understanding of the fundamental value of existence and agile organization, then we can come up with agile methods combined with analysis of the target tissue, we will be better able to explore how agile methods to help organizations reduce costs and how do we measure the value of agile naturally came out.
The core values of agile methods 1: to deliver the target by iteration.
Everything iteration, this is understandable. But in the field of software development, subject to heavy and rigid in the way of delivery waterfall, iterative agile development advocate short, more flexible response to changes in delivery methods.
Agile organizations expect the big goal into small goals, one large and the assumption split into a number of small to quickly validate the hypothesis. Then quickly complete the small hypothetical target, verify the value of timely, timely response to the market.
Another advantage of small targets, is to reduce the number of required scene input to the production of research and testing, production and research resources of each organization is limited, high demand input to the limited resources of production research and testing not only will lead to more goals to complete multi-risk (such as test does not fully bring rework costs), will increase the complexity of the management process (such as switching costs).
So quick to bring our first value: small target.
The core values of agile methods 2: timely response to change.
Agile iterative delivery goals, so that we have more opportunities to test the market. After the delivery of every iteration, we can re products on the market have new thinking and generate new knowledge, which made new demands, will embrace the changes in the market and the external environment.
And the new needs of each proposed must be based on user insight came here to stress again that the product can not give operational data is correct insight, the data recording process is just the result of feedback, insight and user to communicate or to obtain, or based on data obtained again thinking.
Nevertheless, agile development model provides the opportunity for such a product is delivered to embrace market / user change. Otherwise, on the waterfall delivery, there will be a lot of changes brought about by conflicts and contradictions, repetition, or the cost of missing the market.
So, why can quickly respond to changes in a timely manner, still agile and brought the value [1] are inseparable, that is, first of all have a small target. With the goal after a small, we can have a small target to verify the situation after the delivery of timely collection of market feedback.
Next, after verifying the market even if the user really needs a change, and that the organization still change back or change the target, we will form a new small target again to iterate delivery.
So, we can see whether it is worth [1] or [2] value, which is simply a small target to bring agility to the organization, and the target is achieved by program management.
The core of agile methods value 3: Scrum five will bring synergistic efficiency.
In some companies, in addition to innovative businesses, many products have been delivered is not to test the market, but more business scene superimposed in the existing business scenarios, in time to meet the needs of the customer / user put forward on the line.
For example, Jingdong when entering the stage of large-scale, business-oriented B-side existing retail businesses demand side, most of the demand is not innovative, but to meet the type of demand.
This time, bring the value of Agile methods [1] and [2] value is still applicable, that can help existing businesses by providing early iterations deliver value to the B-side businesses, while timely response to the B-side business changes in demand.
Followed, there is a third value: We need to improve the efficiency of collaboration within an organization's various roles.
Under product delivery scenarios, involving research and production measurement shipped four roles, four roles Scrum five will be based on collaboration, we can greatly improve the efficiency of collaborative teams, and by improving the target group to continuously improve their own abilities.
Through the actual experience of the past two years, 30 teams, five will be agile Scrum (sort will demand, will plan, will stand, will review, presentations) is designed not only reasonable but also science.
When import organization agile, very important to teach the team how to open these five and five will be in the end what will open, and through the rule-making so that the team can open up long-term adherence is the most important.
A hundred years of management development, from Taylor to Drucker and then to Mayo, are telling us what is fundamentally enhance the efficiency, the effectiveness of this measure with nothing to do. In the field of product delivery, improve production efficiency is simply the division of labor, collaboration and problem closed loop (three strategies to teach you how to improve production efficiency), the most important part is the collaborative meeting, Scrum five will be providing a very scientific and rational delivery of products meeting rhythm, to improve the efficiency of product delivery to lay a methodology to guide the most basic.
So, Agility brings us to the third value: the delivery of products to improve production efficiency, raise efficiency and agility of the core is to make five will be opened up, and promptly solve problems exposed in the five will be, and can promote problem-solving .
4 core values of agile methods: to expose the problem of waste through the Kanban method.
Lean Kanban method originated in the Toyota manufacturing through timely and transparent process in the production process to eliminate waste.
Similarly, cross-border product development draws on Toyota's lean thinking by David J. Anderson written by Little Blue Book "Kanban method" officially opened the application Kanban method in the field of product development.
We still use the practice to speak, nearly 30 years of practical experience of the team told me that the core Kanban method is particularly exposed to the process of development, testing, on-line wastage of these three processes.
Then another, then surgery, Kanban method is to expose the core development, testing, on-line issue of the three stages of progress in the process, these issues include: wait staff, the demand for extension / wait, too much demand, quality defects, such as requirements change. When the problem is exposed, go to promote solutions to these problems, otherwise the organization to complete the goal to bring more waste, waste all these costs.
Because of these problems, we can understand why the practice Kanban method will visualize the progress of the process, the built-in quality, limited to products, liquidity management, which are designed to better prevent problems in advance, timely expose issues, and promote issues designed to solve.
But I still emphasize here, just to have a billboard out there, the problem is not coming out. Issues need to team together in a synergistic manner to analyze will produce, in order to reach a consensus on the issue root causes and treatments are advancing resolved, billboards just to expose problem we depend a tool.
And this in a coordinated manner, back to the agile core values [3], certain meetings are coordinated way, to expose problems billboards. This is why the billboards will be combined station to open, we hope Kanban team together through collaborative way station will then expose the problem of product delivery process, promote problem solving.
So, agile methods brought us the value [3] and [4] is a combination of value. Scrum through five will be to initiate a collaborative, consensus problem handling team needs to understand; Kanban tools to better expose problems in the process of delivery, and can promote the settlement of the problem, which will increase the production efficiency of product delivery organization, so as to improve the efficiency of the organization's objectives to complete.
Agile value of [3] and [4] value, brings to the organization what? Kanban is a Lean tools can expose the problem, the other is to improve the productivity of the organization Scrum five will be.
5 core values of agile methods: user story landing customer value-oriented way of working.
When we went to discuss the organization's business, strategy and business model, we will find that they have a common starting point, and that is customer value.
When we go on a customer-value, you will find there is no uniform definition, but need to develop a set of guidelines to ensure that everyone throughout the organization is to provide customers with value-oriented thinking and working.
This is why in 2019 the opening of the output Jingdong retail reason "to trust-based, customer-centric value creation" business philosophy, with this philosophy there are nine codes of conduct, the purpose is to guide Jingdong retail All actions all have a reference standard, which reference standard is to be able to create value for customers.
Demand Agile User Stories practice of good help organizations solve this problem, especially in the aspects of product delivery.
User story is based on the user (Who) as a starting point to explore the demand made (What) if you can bring demand value (Why) clarification method for the user. By structuring the presentation of this demand, we will help organizations create value for the customer's business philosophy throughout the product delivery process. And if at first assumed that the value is really in line with customer expectations, then the result will be delivered after the reaction to the size of the organization run by the method of operations.
I often listen to the needs of agile teams combing the production and research discussed at the meeting: the function does, demand in the end to help businesses solve the problem, what brings value, even if say Ming is unclear what value the proposed requirements will face be cut ending. When the context of the entire organization can adjust to this dimension, creating value for customers it is no longer an empty word, but a real floor to every corner of the organization.
When the entire organization for the customer to think, to create value for the customer, there is the vitality of the organization's security, will also enhance the competitiveness of the organization, organizational skills whole will continue to progress.
Therefore, the demand Agile User Stories practices presentation brings to the organization [5] value is to help organize the landing customer-centric business philosophy of value creation, creating value for customers is no longer an empty word, but to the floor everyday products delivered them work.
The core values of agile methods 6: enhance the agility of the organization.
From the beginning of March 2018, it has more than a year and a half, I took 28 Agile teams have been thinking about how to apply agile methods and practices to help teams and organizations to solve the problem.
Even counseling from a open I'll continue to enter various teams and key personnel training, through quarterly assessment I found a team or insist on not down, or did not understand the practical problems to solve lies, resulting in agile practices took place at the time of landing deformation.
So we can see that anyone, any team, any organization's ability to enhance both non-overnight thing, not to mention a staff highly mobile Internet company.
Even so, while I was very pleased to see the emergence of a large number of outstanding agility and agility fans vanguard. They led the team to practice quick thinking and methods and embrace new ways of working, so it helped precipitate the organization Agile capabilities.
The opening chapter in the meaning of existence speaking organization, I would say the reason for the existence of the organization is to achieve the goal, the goal is to achieve a series of actions composed of, and ability to support an important condition for human action can occur.
For agility, I took him down to: the application the ability to handle capacity requirements, application capabilities Scrum five will be in, Kanban method, the ability of iterations to deliver these capabilities corresponding to the value of agility provided by [1-5].
That ability to see how agile teams or departments to enhance it? I'm discriminated from three dimensions: 1, cognitive; 2, action; 3, results.
In the cognitive dimension, is to make the team out of the SM share, the contents of the application of agile methods speak out, you can see a person comprehension of knowledge and learning applications.
Dimensions in action, is to run an iterative mode of delivery, to write the story, billboards put up with it, and the five open meetings together, these direct response on the action.
In the results dimension, we are to be identified and validated through agility assessment of each quarter. Each quarter, I will coach to lead a team to check into the actual situation of each team agile approach landing, and to evaluate the team's agility out by 1 to 5 minutes, landing problems exposed in the evaluation process, develop improvement goals .
So, Agile brings to the organization [6] value through agile learning and application of knowledge to help organizations understand the agile methods training a group of people, and create a number of Agile methods Agile team, they give through organizations bring value [1-5].
The core values of agile methods 7: Floor organizational values, formation and precipitation organizational culture of excellence.
Culture is the way people adapt in order to survive on the environment.
I remember in 2019 to redefine the values Jingdong, of which one is: collaboration. We can not deny the value of each person is different, the unified organization of all values is impossible. So based on this, we expect to be unified only by the values of traction behavior, bring the value of agile method [3] is helping the Jingdong landing values like cooperation, the values fall to the extent of behavior, long-term precipitation could collaborative organizational culture .
In addition, in early 2018 Huobian "principle," a book from north to south, Dali Ou presents us with the bridge and the water is extremely realistic and highly transparent organizational culture, which is why there is such a culture, it created a bridge of water in the world's top hedge status of the Fund. The value [4] Agile Kanban method of visualization practices and practices station will generate three asked to help organize a transparent and honest behavior actions, will help organize long-term precipitation and realistic and transparent organizational culture.
Values influence people's behavior, sedimentation behavior culture, the culture out of people. A cultural organization with excellent, excellent people will choose to stay, people and their own values conflict will choose to leave. But in an organization, we fear most is reversed each other: good people choose to leave, but left a lot of "old age" of staff, cost efficiency so organizations will be greatly reduced.
The core is the need for the formation of cultural behavior, human behavior is again a large part of the values determined, but people's values and can not be unified. Agile practices in a number of ways to help organizations produce excellent values expected good behavior, the long-term precipitation such as collaboration, honest and transparent culture of excellence.
So, Agile brings to the organization [7] value through agility of good practice, stimulating the tissue to produce good behavior, long-term help organize landed values, precipitation good culture, good culture will contribute to good behavior, so as to achieve organizational goals cost efficiency.
How to measure the value of agile
raison d'être of the organization is to achieve the goal, the goal is again composed of a series of actions, all measures must be able to support or guide behavior, is the target completion is meaningful, but otherwise turned into a terrible KPI.
When we know the core values of Agile brings to the organization, how to measure the effect of agile transformation we have a basis.
Now I put the agile method brings to the organization's core values put together thinking:
1, to deliver the target by iteration.
2, in response to changes in a timely manner.
Value [1] and [2] core value is to develop small target iterative, goal-setting team meetings that plan will be, so be sure to let the team plan period will be shortened.
3, Scrum five will bring synergistic efficiency.
4, to expose the problem of waste through the Kanban method.
Value [3] and [4] core value is to make the production of research and testing based on the five meetings Scurm be coordinated together, combined with billboards when the station will expose and solve problems together, in other words, it is to build a team based on all Scrum five will be + Kanban work.
5, the user story landing customer value-oriented way of working.
[5] The core value is to make all the products customers demand the return value, within the organization and circulation of BRD PRD documents, as well as user stories Kanban flowing must answer three core elements of the user of the story: the needs of users, users want What to function and value to the user's yes. After the delivery of the value, the final value will need to be verified, the verification of the results will be reflected in the results of operations and the organizational and operational scale.
6, enhance the agility of the organization.
[6] The core value is to see quick help in importing how many agile teams and how many agile individual tissue culture, how to distinguish a person or team to reach the agile team and individual requirements of each organization to define the cognitive, to behavior, and then landing the results of the evaluation criteria can be.
7, landing organizational values, formation and precipitation organizational culture of excellence.
[7] need to rely on the value of the value [1-6] behavior agile practices brought in, and can be long-term adherence to the formation and precipitation excellent agility culture.
So, what brings agile transition effect?
● small target
● Scrum team collaboration of five will be
● Signage
● User Stories Application
● Number agile team and individual training
● excellent long-term cultural formation and precipitation
Produced by these elements of judgment to really pull organizational behavior Agile practices, in order to have such behavior must let the actors have this ability, you want to have the capability, real import agile coach or mentor and team needs together, work together, the team can grasp the church and applications such capabilities, rather than similar throughput metrics and KPI lead time, which can bring value to the organization achieve the goals of cost efficiency.
If you have to quantify, it is very simple, by scoring mechanism, collect all the teams bring satisfaction ratings and feedback on the effectiveness of each of the agile transformation, will be able to see the agile transformation of an organization in effect do good by feedback again promote the entire organization to improve product delivery teams in accordance with these six dimensions, a real value of these six dimensions expected to bring.
See here, estimated that many people will say: Oh, do not necessarily indicators of business success?
In our point of view to enhance the dimension of time to the organization, the organization's four core operating results: customer value, cost, size and profitability tells us that agile can answer just only how cost efficiency.
Customer value is our belief engage in business and commerce is also the starting point is the need to scale achieved through operations and marketing, and profitability is closely linked with the size, agility simply can not do these are areas where business success is the organizational strategy to answer the ultimate question.
Conclusion
When we went to assess the effectiveness of agility by measuring the numbers, we have been getting far away from the action, while the numbers do not lead the team and organization for successful Agile transformation, it will not help the organization to complete the goal, only action.
If we have to use quick look at the effectiveness of digital transformation, we need to use the measure to promote real action is in no way similar throughput and delivery lead time KPI vanity metrics.
The team has been able to measure the behavior of agile practices, because agile agility coach or team needs restructuring and product delivery teams work together, and coaching team has applied this capability.
After leading a department Jingdong agile ability to assess the sixth quarter of the occasion, thinking how to measure the effectiveness of agile transformation.
In the agile circle, this is all common there puzzled problem, only to find a reasonable answer to promote agility in the organization's positive development, in order to make agile provide solid behavior guidance to achieve organizational goals, and ultimately answer the agile transformation value to the organization. (This article End) (Source: stay stay teacher)

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