Tuesday, July 5, 2016

“Digital Agility” Book Tuning I: The Measurement of Organizational Agility

11:31 PM  Pearl Zhu  No comments

The goal of agility measure is to keep track of the most value-driven factors to lead business success.

Agile transformation is a journey and you can make a judgment on where people and organization are on the journey via measurement. The goal of agility measure is to keep track of the most value-driven factors to lead business success.

Value and principles are about what you believe and how you think. Neither of these is really amenable to direct measurement. And you will always have to tie these together to get the big picture of your organizational agility.
How agile is the organization? Organizational agility is about the company being able to satisfy customers by consistently delivering high quality, valuable products/service with minimal delay. In most organizations. The subset of questions can be asked such as:
- How much the organization's agility affects what the organization wants to achieve?
- How effective your program of agility measure is at creating awareness?
- How effective your program of agility measurement is at creating value?
“Value realized” is based on enhanced competitive advantage, it is usually measured in financial terms. There are usually increases in revenue, company valuation, user base, or reductions in costs., etc. Agile enforces interaction, iteration, improvement and collaboration, so you build a lot of trust and respect by letting people come up with what works best for them, also improving business agility and maturity ultimately.
How satisfied are customers? Isn’t agile about the company being able to satisfy customers by consistently delivering high quality, valuable software with minimal delay? From a technical delivery point of view, have you thought about using KPIs along with grid metrics to show agile improvement in key areas such as Code Quality, Continuous Delivery / Continuous integration and Service Level? You have to make sure that the customer has defined carefully what they mean by value, and customer needs to make sure that those definitions still apply.
No change or even going down = you're doing the wrong thing.
Going better = you're probably doing something right.
How to select the right set of KPIs in measuring agility? You must be careful in establishing measurement, as the old saying goes, you get what you measure. Be sure to understand what decisions you are looking to make based on those KPIs. "agile" isn't always compatible with other organizational objectives.You may want to check out the operative and strategic goals and discover how consistent they are with each other - and agility. If there is conflict, how well are we doing at resolving conflicting goals? For example, you should take caution against using a lot of KPIs measuring the details of your development system and confusing those KPIs with global measures of value delivered. The senior leaders are more interested in getting an update about the measurement of the common business goals. Such common goals help to create collaboration and cohesion between the business people and the technical people. Moving towards an agile delivery method can and should be taken iteratively. The grid metrics allow the business to see the teams moving and improving as the team become more agile. The metrics will clearly highlight problem areas across all teams taking part and focus can be applied to move forwards. The KPIs you have set out can be covered by the core metrics in the grids.


Measure things truly matter based on Agile principles.Agility at the end of the day is an enabler for the reasons that the organization set out to build the product and not the other way. If the measures are good, they will tell you that you are agile enough. Customer satisfaction and employee satisfaction are signs of agile deployment success.


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