Calculating RoI on Agile Enablement
"We want to be Agile!!...
Because its cool, and its becoming a norm, it will help us to cope with changing requirements, help us deliver faster etc etc."
Isn't this a common sentiment in organizations struggling with the ever changing user/customer taste?
With Agile going main-stream with most organizations looking to have at least a few business critical projects run in an Agile way, the question of ROI comes up. Shifting from a traditional way of building software to an Agile way, requires change and as any good business leader would know; change is not free. Business leaders would like to understand and justify the return on Investment to make this shift. In our talk, we will be talking about how to look at the Agile process holistically and how this process affects budgeting and how early value realization can help offset the cost of change. We will also discuss stories of other in house IT shops and product houses who have made this shift and the journey they have undertaken
From our experience of working with such organizations, we have found that for these process-focused Agile adopters, much of their measurements include:
- how long is our stand-up?
- how long is our build?
- how many stories do we have?
- how many points can we fit into a sprint? etc.
From their perspective, they already have plenty of metrics. Often it's also the case that they're getting benefit, just because common sense does kick in behind the scenes, and because they're delivering more frequently as a result in the reduction of documentation, so they don't always run out of money either. That leads to bad habits, possibly, rewarding wrong practices. In this talk we want to discuss metrics we have used on the projects and have found useful. Metrics like: Cycle Time, Time to market (also called Lead Time), Collaboration, Quality (in terms of code complexity , code coverage, test pyramid) and bus factor. One thing to note is that any of these metrics alone would not provide holistic way of measuring benefit, and hence a combination of them is required.