Pawel Brodzinski on Leadership in Technology

Whatever it takes to lead a team, build a product, and run a business

Category: project management

Reinvent Your Daily Meetings
Are you still doing daily meetings in the format suggested by Scrum? The three famous questions:
1. What did you do yesterday?
2. What are you going to do today?
3. Are there any obstacles?
Do yourself a favor and stop.

It might have been a useful practice two decades ago. But it is not anymore. Not in that form.

The Old Cure

Here’s the thing. The ideas behind Scrum date as far back as the 80s, and its first applications happened in the 90s. Yes, it’s that old. But that itself doesn’t deserve criticism.

However, when you look at the 2000s, when Scrum got its prominence, your average team’s tooling looked very different. The visual boards were yet to become popular. The state-of-the-art task management system was a filtered list.

No one in the IT industry seriously talked about limiting WIP then, so we were drowned in an excessive amount of ongoing tasks. That made navigating long, long lists of work items even more of a maze from nightmares.

It’s no wonder that people saying what they were doing yesterday and what they plan to do today was a refresher.

The New Situation

Fast forward 10 years, and teams suddenly have very readable visual boards as a standard practice. Limiting work in progress may still be a challenge, but we’ve gotten progressively better.

Also, new visualization standards allow for better comprehension of whatever is in flight. Even Jira caught up.

As long as:
- the board is up to date
- there’s even remotely reasonable amount of work in progress
we can clearly see who’s doing what.

How? Just look at the board—it’s all there; thank you very much.

And if, by any chance, the board would suggest that a person still works on 5 different things, then it’s not the form of the daily meetings that is the main problem.

Who Cares?

If you still think the old form of the daily updates makes any sense, look at people’s engagement during them. There’s precisely one person who’s interested in the entirety of the updates.

The Scrum Master.

For the rest of the team, it’s a ritual they follow out of habit. At best, they are interested in what a couple of people working on the most related tasks are doing, and then they’re off again.

So it’s like a theater with many actors and just one attendee (the Scrum Master).

It’s even worse. Almost all that information is readily available on the visual board. So that one person could have gotten it without getting everyone involved.

Not Just a Status Update

That’s the point where people tell me that I describe a daily meeting as a glorified status update, which it wasn’t meant to be.

Fair enough. So what is it?

A way for a remote team to get together and gel? Fine, get together and gel. I doubt that answering who does what is the best way to do it.

So, maybe, it’s a place where we discuss obstacles and problems. Fantastic! That’s actually the only original question that is still useful. Then, ask only that bloody question and be done with it.

Whatever the purpose of the meeting is, name it. I bet there’s a better format to address that very purpose.

And yet, in 2025, people will still answer those three questions invented three decades ago.

Daily Around the Board

The intention behind the original standup format was a team sync-up. That goal is still worth pursuing. However, we have options that weren’t available a quarter of a century ago.

My default way of running dailies relies on four elements:
- We use blockers extensively to show any impediments
- We keep the visual board up to date (it’s “the single source of truth”)
- We run dailies around the board
- We read the board from right to left (or from most to least done) and focus purely on blockers
That’s it. It’s enough to focus on the important stuff. The rest is business as usual and not worth mentioning.

You can easily cut the daily meeting time by half (or more), make it more engaging, and (a bonus) use it as an encouragement to keep the board up to date.

There’s literally no coming back.

The Purpose

Sadly, we still stick to practices. They might have been visionary decades back, but somehow, we stopped asking about their purpose and blindly stuck to them.

If we did, we would challenge many of the techniques we use.

Ask yourself this question: If Agile were invented today, what practices would it devise? It would most definitely be different from what you’d find in a Scrum Guide.

So do yourself a favor, stop answering the three standup questions, and, for a change, start using this daily hangout to make something useful.

That’s what Agile intended us to do, after all.
April 30, 2025
Milk Kanban
When people say Kanban, they tend to think of a specific set of practices. Whiteboards & sticky notes (both almost universally virtual). Tasks moving through columns that represent workflow. Every now and then, WIP limits even.

As often as we do it with other things, it reduces a broader principle to a set of oversimplified techniques, which, in turn, tend to underdeliver in many contexts.

Kanban

In its original meaning, Kanban represented a visual signal. The thing that communicated, well, something. It might have been a need, option, availability, capacity, request, etc.

In our Kanban systems, the actual Kanban is a sticky note.

It represents work, and given its closest environment (board, columns, other stickies, visual decorators), it communicates what needs, or needs not, to be done.

If it’s yellow, it’s a regular feature. If there’s a blocker on it, it requests focus. If there’s a long queue of neighbors, it suggests flow inefficiency. If it’s a column named “ready for…” it communicates available work and/or handoff.

A visual signal all the way.

Visual Signals

Let’s decouple ourselves from the most standard Kanban board design. Let’s forget columns, sticky notes, and all that jazz.

Enters Kasia, our office manager at Lunar. One of the many things Kasia takes care of is making sure we don’t run out of kitchen supplies. The tricky part is that when you don’t drink milk yourself, it becomes a pain to check the cupboard with milk reserves every now and then to ensure we’re stocked.

Then, one day, I found this.

A simple index card taped to the last milk carton in a row stating, “Bring me to Kasia.” That’s it.

In the context, it really says that:
- we’re running out of (specific kind of) milk
- we want to restock soon
- there’s enough time to make an order (we don’t drink that much of cappuccinos and macchiatos)
But it’s just a visual signal. Kanban at its very core.

Simplicity is the King

What Kasia designed is a perfect Kanban system. It relies on visual signals, which are put in the context. Even better, unlike most Kanban boards I see across teams, the system is self-explanatory. Everything one needs to know is written on the index card.

That’s, by the way, another characteristic of a good Kanban system. It should be as simple as possible (but not simpler). Our workflow representations tend to get more and more complex over time by themselves; we don’t need to make them so from the outset.

It’s a safe assumption that, almost always, there’s a simpler visualization that would work just as well. We, process designers, often fall into the trap of overengineering our tools.

And it’s a healthy wake-up call when someone who knows close to nothing about our fancy stuff designs a system that we would unlikely think of. One that is a perfect implementation of the original spirit, even if it doesn’t follow any of the common techniques.

Because it’s all about principles, not practices.

That’s what we can learn from Milk Kanban.
March 11, 2025
Portfolio Management: Role of Autonomy

I’m a huge fan of Real Options. Along with Cynefin, it is one of the models that can be very universally applied in different domains. No wonder that some time ago I proposed application of Real Options as a sense making mechanism that connects different levels of work being done in an organization.

Simply put, potential work, be it projects or products, are options. We rarely, if ever, can effectively work on all the potential initiatives we have on our plates. That’s why we end up picking, a.k.a. committing to, only a subset of options we have.

Each commitment to start an initiative instantly generates a set of options on a lower level of work. Once we commit to run a project there are so many ways we can structure the work and so many possible feature sets that we can end up building. We again have a set of options available and again eventually commit to execute some of them. That in turn generates the options on a layer or finer granularity work items, say individual features. It goes all the way down to the most atomic work items we have.

We need an accompanying mechanism to close a full feedback loop between the layers of work. We simply need to provide information back to the higher level of work. Think of situations like a project taking longer than expected. We obviously want that information to be taken into account when we are making commitments on a portfolio level. Ultimately, it means that available capabilities have changed and thus it influences the set of options we have on a portfolio level.

Again, the similar dynamics will be seen between any of the two neighboring layers of work. Specific technical choices for features will influence how other features are built or how much time we’d need to make changes in a product.

The model can be easily scaled up to reflect all the layers of work that are present in an organization. In big companies there will be multiple layers of work even in the area of portfolio management only.

The underlying observation is that we very, very rarely need information to be escalated farther than between neighboring levels of work. In other words a single feature that is late will not affect decision-making process on portfolio level. By the same token commitment to start a new project, as long as it takes into account available capabilities, will be of little interest to a feature team involved in an ongoing initiative.

There is, however, one basic assumption that I subconsciously made when proposing this model. The assumption is about autonomy.

Work flows down to the finer-granularity level is through a commitment at a coarser-granularity level. The commitment, however, is not only expressing good will that we want to build something. If we make a commitment to run a project we need to fund and staff it. The part of the commitment is providing people, skills and resources required to accomplish that project within expected constraints, be it time, budget, scope, etc.

If there are other constraints that are important they need to be explicitly described once the commitment is being made. One example that comes to my mind would be around the ultimate goals for a product or a project. It can be about technical constraints – for whatever reasons technologies that a product will be built in may be fixed. Another common case would be about high level dependencies, e.g. between two interconnected systems.

Such constraints need to be explicit and need to be expressed when the commitment is being made simply because they influence what options we will have in the lower level of work.

There’s also another important reason why we want explicit constraints. When we move our perspective to a different level of work we also change the team that is involved in work. In the most common scenario the team context will change from PMO, through a project team to a feature team as we go down through the picture.

And that’s exactly when autonomy kicks in. Commitment on a higher level of work generates options on a lower level. What kind of options we get depends on the constraints we set. These are all prerogatives of a team making decisions on a higher level.

The specific choice among the available options, on the other hand, is responsibility of a team that operates on a lower level.

Obviously, we don’t want PMO leader to tell developers how to write unit tests. That’s the extreme example though and I see violation of autonomy all over the place.

Let’s start from the top. The role of PMO in such a scenario would be to pick initiatives that we want to run, a.k.a. make project- or product-level commitments. The part of the process would be defining relevant constraints for each commitment. These would be things like manning and funding the new initiative, sharing expectations deadlines, etc. This is supposed to provide fair amount of predictability and safety to the team that will be doing the actual work.

One crucial part of defining constraints is making the goals of the initiative explicit. What we are trying to achieve with this product or project. In other words why we decided to invest time of that many people and that much money and we believe it was a good idea.

And now the final part. Then PMO should get out of the way. Options are there in a product team or a project team. That team should have autonomy to pick the ones they believe are the best. Interference from the top will disable autonomy and as such will be a source of demotivation and disengagement. It is very likely that such interference would yield suboptimal choice of options too.

The pattern remains the same when we look at any two neighboring layers of work. For example, we will see similar dynamics between a product team and a feature team.

The influence on which options get executed happens through definition of constraints and not by enforcing a specific choice of options. Those different levels of work are, in a way, isolated between each other by the mechanism of commitment that yields options on a lower level, feedback loops going up and finally by distributing authority and maintaining autonomy to make decisions within own sphere of influence.

Unsurprisingly the latter gets abused fairly commonly, which is exactly why we need to be more aware and mindful about the issue.

May 4, 2016
Don’t Limit Work in Progress

I’m a long-time fan of visual management. Visualizing work helps to gather low-hanging fruits: it makes the biggest obstacles instantly visible and thus helps to facilitate the improvements. By the way, these early improvements are typically fairly easy to apply and have big impact. That’s why we almost universally propose visualization as a practice to start with.

At the same time a real game-changer in the long run is when we start limiting work in progress (WIP). That’s where we influence the change of behaviors. That’s where we introduce slack time. That’s where we see emergent behaviors. That’s where we enable continuous improvements.

What’s frequently reported though, is that introducing WIP limits is hard for many teams. There’s resistance against the mechanism. It is perceived as a coercive practice by some. Many managers find it really hard to go beyond the paradigm of optimizing utilization. People naturally tend to do what they’ve always been doing: just pull more work.

How do we address that challenge? For quite some time the best idea I’ve got was to try it as an experiment with a team. Ultimately there needs to be team buy-in to make WIP limits work. If there is resistance against a specific practice, e.g. WIP limits, there’s not much point in enforcing it. It won’t work. However, why not give it a try for some time? There doesn’t have to be any commitment to go on after the trial.

The thing is that it usually feels better to have less work in progress. There’s not that much of multitasking and context switching. Cycle times go down so there’s more of sense of accomplishment. The pressure on the team often goes down as well.

There’s also one thing that can show that the team is actually doing much better. It’s enough to measure start and end dates for work items. It will allow to figure out both cycle times (how much time it takes to finish a work item) and throughput (how many work items are finished in a given time window).

If we look at Little’s Law, or rather its adoption in Kanban context, we’ll see that:

It means that if we want to get shorter cycle time, a.k.a. quicker delivery and shorter feedback loops, we need either to improve throughput (which is often difficult) or cut work in progress (which is much easier).

We are then in a situation where we understand that limiting WIP is a good idea and yet realize that introducing such a practice is not easy. Is there another way?

One strategy that worked for me very well over years was to change the discussion around WIP limits altogether. What do we expect when WIP limits are in place? Well, we want people to pull less work and instead to focus on finishing items rather than starting them.

So how about focusing on these outcomes? It’s fairly simple. It’s enough to write a simple guidance. Whenever you finished work on an item first check whether there are any blockers. If there are attempt to solve them. If there aren’t any look at any unassigned items starting from the part of the board that’s closest to the done column (typically the rightmost part of the board). Then gradually go toward the beginning of value stream. Start a new item only when there’s literally nothing you can do with ongoing items.

If we took a developer as an example the process might look like this. Once they finish coding a new work item they look at the board. There is one blocked item. It just so happens that the blocker is waiting for a response from a client. A brief chat in the team may reveal that there’s no point in pestering the client for feedback on the ticket for now. At the same time it may be a good time to remind the client about the blocker.

Then the developer would go through the board starting at the point closest to the doneness. If the process in place was something like: development, code review, testing and acceptance by the client, the first place would be acceptance. Are there any work items where the client shared feedback, i.e. we need to implement some changes? If so that’s the next task to focus on. In fact, it doesn’t matter whether the developer was the author of the ticket but if there are any tickets that used to be his it may be input for prioritizing.

If there’s nothing to act upon in acceptance, then we have testing. Are there any bugs from internal testing than need to be fixed? Are there any tickets that wait for testing that the developer can take care of? Of course we have a century-old discussion about developers not willing to do the actual testing. I would however point that fixing bugs for the fellow developers is equally valuable activity.

If there’s nothing in testing that can be taken care of then we move to code review and take care of anything that’s waiting for code review or implement feedback from code review that’s been done already.

Then we move to development and try to figure out whether the developer can help with any ongoing work item. Can we pair with other team members? Or maybe there are obstacles where another pair of eyes may be useful?

Only after going through all the steps the developer moves to the backlog and pulls a new ticket.

The interesting observation is that in vast majority of cases there will be something to take care of. Just try to imagine a situation where there’s literally nothing that’s blocked, requires fixing or improvements and nothing that’s in waiting queue. If we face such a situation we likely don’t need to limit work in progress any further.

And that’s the whole trick. Instead of introducing an artificial mechanism that yields specific outcomes we can focus on these outcomes. If we can guide the team to adopt simple guidance for choosing tasks we effectively made them limit work in progress and likely with much less resistance.

Now does it matter that we don’t have explicit WIP limits? No, not really. Does it matter that the actual limits may fluctuate a bit more than in a case when the process has hard limits? Not much. Do we see actual improvements? Huge.

So here’s an idea. Don’t focus on practices. Focus on understanding and outcomes. It may yield similarly good or better results and with a fraction of resistance.

October 26, 2015
Context Switching: The Good and the Bad

Multitasking is bad. We know that. Sort of. Yet still, we keep fooling ourselves that we can do efficiently a few things at the same time.

When I talk about limiting work in progress I point a number of reasons why multitasking and its outcome – context switching – is harmful. One of them is Zeigarnik Effect.

Zeigarnik Effect is an observation that our brains remember much better tasks that we haven’t finished. Not only that though. If we haven’t finished something we will also have intrusive thoughts about that thing.

So it’s not only that it’s easy for us to recall tasks that we haven’t finished. We don’t necessarily control that we occasionally think about these tasks either.

What are the consequences? Probably the most important outcome is that, in a situation where we handle a lot of work in progress, it is an illusion that we are focusing on a single task. This is an argument that I’d frequently hear: it doesn’t matter that we have a dozen work items in development. After all, at any given time I only work on a single feature, right?

Wrong. What Zeigarnik Effect suggests is that our brains will be switching context despite what we consciously think it would do.

An interesting perspective to that discussion is that Zeiganik effect has been disputed – it isn’t universally accepted phenomenon. Let me run a quick validation with you then. When was the last time that, while doing something completely different, you’ve had an intrusive thought about an unfinished task. Be it an email you forgot to send, a call you didn’t make, a chore you was supposed to do or whatever else.

We do have those out of the blue thoughts, don’t we? Now, think what happens when we do. Our brain instantly switches the context. It doesn’t really matter what we’ve been doing prior to that: driving a car, coding or having a discussion.

That’s exactly where the multitasking tax is rooted.

It’s not all bad though. We frequently use Zeigarnik Effect to help us. A canonical example is when we struggle with solving a complex issue, we give up, just to figure it all out when we take shower, brush our teeth or just lay in bed after we’ve woken up in the morning. We simply release the pressure of sorting it all out instantly and let our brain take care of that.

And it does. On a moment that’s convenient for our thinking process we face a context switch that brings us to a solution of a puzzle that we’ve been facing.

It is worth to remember that it’s a case of context switching as well. It just so happens that we’ve been taking a shower thus it doesn’t hit our productivity. The pattern in both cases is exactly the same though.

That’s why it is worth remembering that adding more and more things to our plate doesn’t make us effective at all. At the same time we may use exactly the same mechanism to let our brain casually kick in when we struggle with solving a difficult problem.

August 31, 2015
Portfolio Kanban Board

One thing that I learned quickly when I started experimenting with Portfolio Kanban is that a classic, flow-driven board design isn’t particularly good in vast majority of cases.

Board Designs

Long story short, I ended up redesigning the board structure completely and it worked much better. In fact, it worked so well that I started proposing such a design as a starting point whenever working with portfolio Kanban.

Interestingly enough, as Kanban adoption of portfolio level progressed I started seeing completely different approaches to visualization. Not that they were worse. They just focused on different aspects of work.

One that popped up early was two-tier board that addresses different granularity of tasks at the same board. We can track the roots of this design to David Anderson’s time at Corbis. Since then it was picked up to manage portfolios.

Another example came from Zsolt Fabok, who was inspired by Chris Matts. What he proposed was a board that stresses expected delivery dates and how an organization is doing against these dates. Again the board design is completely different from the ones we’ve seen so far.

Another interesting example that I like is a portfolio board that visualized non-homogenous flow of work. This still is one of the most unusual board designs I’ve seen and yet it makes a perfect sense given the context.

By that time it was perfectly clear that there is no such thing as a standard design of Portfolio Kanban board. Each of these designs was fairly optimal if we considered the context. At the same time each of the boards was designed to stress a different aspect of work.

The design I ended up with in my Portfolio Kanban story revolved around available capabilities and commitments. The two-tiered board design focused on flow of coarse-grained items and breaking work down to fine grained items. The deadline driven board based on an assumption that the most critical aspect of work are delivery dates and monitoring delays. Finally, non-homogenous flow board design addressed the issue of different flows of work in each of the projects.

Which design is most useful then? It depends. To address that question we first need to answer which aspect of our work is the most important to track on a regular basis. To get that answer we need to discuss risks.

Risk Management

Obviously, risk management is a multi-dimensional issue. Some dimensions would be more interesting than others. The word “interesting” typically translates to the fact that we are more vulnerable to a specific class of risks or that we are doing especially badly against managing that class of risks.

A typical example in the context of portfolio management would be overburdening. We commit to more projects or products than we can chew. We end up having our teams juggling all the concurrent endeavors. As a result we see a lot multitasking, context switching, and huge inefficiencies.

In such a case the most interesting dimension of risks would be one related to managing available capabilities and ongoing commitments. And that would exactly be information that we’d like to focus on most when designing Portfolio Kanban board.

That’s by the way almost exactly the process I went through when I proposed capability-focused board design. Of course, back then the thought process wasn’t that structured and it was more trial and error.

There are some additional aspects of the story, like the huge variability of size of the projects that we typically see. This would affect the details of the board design as well. In this case relative size is visualized as well.

The most important bit is that we start with the most important risk dimension. This should define the whole structure of Portfolio Kanban board.

Coming back to different visualizations I mentioned we can easily figure out what was the key class of risks in each design.

In two-tiered board the biggest concern was smooth flow of coarse-grained items (feature sets). We can also figure out that variability in size of feature sets wasn’t that much of a problem. Given that we’re talking about product development organization and that they are in full control of how they define feature sets, it does make a lot of sense.

Delivery date driven board stressed how important risks related deadlines and timeliness of delivery were. We may also notice that there isn’t much stress on flow of work and not that much focus on addressing potential overburdening either.

The design with non-homogenous flow, as its name suggests, pinpoints that most important risk dimension was managing flow. On the other hand risks related to capability management and overburdening don’t seem so important.

Optimal Design

The structure of Portfolio Kanban board can show only that much. We can’t visualize all the risk dimensions using the board structure alone. David Anderson in his Enterprise Service Planning talk points that it is common that organizations track 4-8 different dimensions of risks. The board design can address one or two.

Make it the two that matter most.

Where would others go? Fortunately we still have items on our board, whatever we decide them to be. We can track information relevant for other risk dimensions using information on index cards. The design of the items on the board is no less important than the design of the board itself.

Designing Portfolio Kanban board is not an obvious task. We don’t even have a standard approach – something similar to a flow-based design we commonly use on a team level. Understanding how we manage risks is the best guidance that can lead to fairly optimal board design quickly.

Of course one alternative is to go through a trial and error process. Eventually you’d land with similar outcomes. A quicker way though is to start with understanding risks.

April 21, 2015
The Cost of Too Many Projects in Portfolio

I argued against multitasking a number of times. In fact, not that long ago I argued against it in the context of portfolio management too. Let me have another take on this from a different perspective.

Let’s talk about how much we pay for introducing too many concurrent initiatives in our portfolios. I won’t differentiate here between product and project portfolios because for the sake of this discussion it doesn’t matter that much.

Let’s imagine that the same team is involved in four concurrent initiatives. Our gut feel would suggest that this is rather pessimistic assumption, but when we check what organizations do it is typically much worse than that. For the sake of that discussion and to have nice pictures let’s assume that all initiatives are similarly sized and start at the same time. The team’s effort would be distributed roughly like that.

The white space between the bars representing project work would be cost of multitasking. Jerry Weinberg suggests that for each concurrent task we work on we pay the tax of 20% of the time wasted on context switching. Obviously, in the context of concurrent projects and not concurrent tasks the dynamics will be somewhat different so let me be optimistic with what the cost in such scenario would be.

If we reorganize the work so that we limit the number of concurrent initiatives to two we’d see slightly different picture.

Suddenly we finished faster. Where’s the difference? Well, we wasted much less time on context switching. I assumed some time required for transition from one project to another yet still, it shouldn’t be close to what we waste on context switching.

In fact, we can move it even further than that and limit the work to a single project or product at the same time.

We improved efficiency even more. That’s the first win, and not the most important one.

Another thing that happened is we started each project with the exception of the first one in presence of new information. We could have, and should have, learned more about our business so that we are better equipped to run another initiative.

Not only that. It is likely that technology itself or our understanding of technology advanced over the course of running the first project and thus we will be more effective building another one. These effects stack up with each consecutive project we run.

The total effect will be further improvement of the total time of building our projects or products. This is the second win.

Don Reinertsen argues that the longer the project is the longer the budget and schedule overrun. In other words, if we decided to go with all the concurrent initiatives we’d likely to go longer that we assumed.

In short it means that we do end up doing more work that we would do otherwise. Projects are, in fact, bigger than we initially assumed.

The rationale for that is that the longer the project lasts the bigger the incentive to cram more stuff into it as the business environment keeps evolving and we realize that we have new market expectations to address.

Of course there’s also an argument that with bigger initiatives we have more uncertainty so we tend to make bigger mistakes estimating the effort. While I don’t directly refer to estimates here, there’s an amplification effect for scope creep which is driven by overrunning a schedule. When we are late the market doesn’t stand still. To make up for that we add new requirements, which by the way make the project even later so we add even more features, which again hit the schedule…

A bottom line is that with bigger projects scope creep can get really nasty. With fewer concurrent initiatives and shorter lead times we get the third win.

Let’s assume that we’ve had deadlines for our projects.

What happens when we’re late? Well, we pull more people from other teams. Well, maybe there was one guy who said that adding people to the late project makes it later but, come on, who reads such old books?

Since in this case all our projects are late we’d pull people from another part of an organization. That would make their life more miserable and their project more likely to be late and eventually they will reciprocate taking our people from our future projects in a futile attempt to save theirs. That would introduce more problems in our future projects. No worries, there will be payback time when we steal their people again, right?

It’s a kind of reinforcement loop that we can avoid with fewer concurrent initiatives. That’s a fourth win.

Finally, we can focus on economies of delivering our products or projects. A common sense argument would be to bring time to market as an argument in a discussion. Would we prefer shorter or longer time to market? The answer is pretty much obvious.

To have a meaningful discussion on that we may want to discuss Cost of Delay. How much it costs us to delay each of these projects. It may translate to the situation when we don’t generate revenues or the one when we lose the existing ones. It may translate to the situation when we won’t optimize cost or fail to avoid new costs.

In either case there’s an economic value of delivering the initiative later. In fact knowing the Cost of Delay will likely change the order of delivering projects. If we assume that the last project had the biggest Cost of Delay, the first the smallest (4 times smaller) and the middle ones the same in the middle of the spectrum (a half) we’ll end up building our stuff in another order.

The efficiency of using the teams is the same. The economic effect though is vastly different. This is the biggest win of all. Including all other effects we roughly cut down the total delay cost by two thirds.

The important bit of course is understanding the idea of Cost of Delay. However, this couldn’t have been enabled if we’d kept running everything in parallel. In such a situation everything would be finished at the same time – at the latest possible moment. In fact, if we avoid concurrent work even the ultimately wrong choice of the order of the projects would yield significantly better economic results than building everything at the same time.

What we look at is a dramatic improvement in the bottom line of the business we run. The effects of limiting a number of concurrent initiatives stack up and reinforce one another.

Of course, it is not always possible to delay start of specific batch of work or limit the number of concurrent projects to very low number. The point is though that this isn’t a binary choice: all or nothing. It is a scale and typically the closer we can move toward the healthy end of it the bigger the benefits are.

March 4, 2015
Story Points and Velocity: The Good Bits

You get what you measure. The old truth we keep forgetting about so often.

Story Points and Velocity

One relevant context to remember this is when we measure progress of project teams. The set that was wildly popularized along with Scrum is story point estimation, most typically with Planning Poker as a method to come up with the estimates, and measuring velocity. In such a set velocity, which simply is a number of story points completed in an iteration, is a primary measurement of pace.

I don’t say the whole set is evil. What is evil though is how it is frequently used. Story point is pretty much meaningless – the same story can be estimated 2 or 8 and both are perfectly valid sizes. This means that the moment someone starts expecting specific velocity they will get it. In fact, continuous improvement in velocity is as easy as pie. It’s known as story point inflation.

The same thing will happen when someone starts comparing teams basing on velocity.

And then there’s expectation for velocity to be predictable, which translates to low variability. If that’s the goal story point estimates will be gamed so velocity looks predictable.

How much does it have to do with any real sense of sizing?

OK, I hear the argument that these all are dysfunctions related to velocity. Fair enough. Let’s assume for the rest of this article that we are doing it right.

Measuring Progress

The problem is, that the whole activity of estimating story points doesn’t provide much value, if any. What Larry Maccherone’s research shows is that the best measure of throughput is simply counting the stories or features done.

Let me stress that: it doesn’t matter what size we initially though a story or a feature would be. What matters is that it’s either completed or not. That’s it.

Larry knows what he’s talking about. The data sample he had was from ten thousand agile teams, vast majority of them being Scrum teams. If there had been a quality signal in story point estimations and measuring velocity he would have seen it. He didn’t.

So even if we do the whole thing right it’s just a complete waste of time. Or is it?

Estimation

One part of Planning Poker, or any other discussion about story point estimates, is validating all sorts assumptions about a feature or a story. Another is addressing gaps in knowledge about the task.

These discussions can provide two valuable bits of data. Sometimes we realize that the chunk of work hidden behind a story is simply too big and should be split it. Typically it’s after someone provides input about complexity of a scenario.

The outcome of such a scenario would be simply splitting a story.

A different case is when we realize we simply don’t know enough to come up with any meaningful sizing. It may be either because we need more input or simply we are discovering a new land and thus our level of uncertainty is higher. The reason doesn’t matter.

What matters is that in such a case we deal with more uncertainty than normally thus we introduce more risk.

In both cases we get additional valuable information. Beyond that a discussion whether something is worth 5 or 8 story points is irrelevant.

No Bullshit Estimation Cards

That’s basically rationale for no bullshit estimation cards. I like to think of it as of “Story Points and Velocity: The Good Bits.”

Instead of focusing on futile discussion and potentially driving dysfunctional behaviors we get a neat tool that keeps few valuable parts of the approach. And you get a little bit of sense of humor for free.

By the way, there’s a more serious a.k.a. politically correct version too.

It saves time. It provides value. And most of all, it makes you focus on the right challenges.

And in case you wondered, you can get your own deck (or as many as you want really).

February 18, 2015
Economic Value of Slack Time

I ranted on 100% utilization a few years ago already. Let me add another thread to that discussion. We have a ton of everyday stories that show how brain-dead the idea of maximizing utilization is. Sometimes we can figure out how it translates to work organization as well. Interestingly, what Don Reinertsen teaches us is that queuing theory says exactly the same.

As we go up with utilization lead time or wait time goes up as well. Except the latter grows exponentially. It looks roughly like that.

But wait, does it mean that we should strive to have as low utilization as possible? I mean, after all that’s where lead times are the shortest. This doesn’t sound sensible, right?

And it doesn’t make sense indeed. Cost of waiting is only one part of this equation. The other part is cost of idle capacity. We have people doing nothing thus they don’t produce value yet they cost something. From that perspective we have two cost components: delay cost related to long lead time and cost of idle capacity related to low utilization.

Of course the steepness of the curves would differ depending on the context. The thing is that the most interesting part of the chart is the sum of the costs which, naturally, is optimal at neither end of scale.

There is some sort of economic optimum for how much a system should be utilized to work most cost efficiently. There’s very good news for us though. The cost curve is the U-curve with flat bottom. That means that we don’t need to find the ideal utilization as a few percent here or there doesn’t make a huge difference.

We’d naturally think that the optimum is rather toward the more utilized part of the scale. That’s where the interesting part of the discussion starts.

We have pretty damn good idea how much idle time or slack time costs us. This part is easy. Now, the tricky question: how much is shorter lead time worth?

Imagine yourself as a Product Owner in a funded startup providing an online service. Your competitor adds a new feature that generates quite a lot of buzz on social media. How long are you willing to wait to provide the same feature in your app? Would keeping an idle team all the time just in case you need to build something super-quickly be justified?

Now imagine that your house is on fire. How long are you willing to wait for a fire brigade? Would keeping an idle fire brigade just in case be justified?

Clearly, there are scenarios where slight differences in lead time are of huge consequences. We don’t want our emergency calls to be queued for a couple of weeks because a fire brigade or an ambulance service is heavily utilized. In other words steepness of one of the curves varies a lot.

Let’s look how different scenarios change the picture.

This sets the economically optimal utilization at very different levels. There are contexts where a lot of slack is perfectly justified. The ultimate example I can come up with are most of armies. We don’t expect them to be fully engaged in wars all the time. In fact the more slack armies have the better. Somehow we don’t come up with an idea that if an army has no war to run we better find them one.

Of course it does matter how they use their slack time, but that’s another story.

We don’t have that drastic examples of value of slack in software industry. However, we also deal with very different steepness of delay cost curve. Even if we don’t expect instant delivery we need to move quicker and quicker as everyone else does the same.

The bottom line is that our intuition about what is the cost of wait time (delay cost) is often flawed. This means that even if we are able to go beyond the myth of 100% utilization we still tend to overload our teams too much.

Oh, and if you wondered, at Lunar Logic our goal is to keep team’s utilization between 80% and 90%.

January 29, 2015
Minimal Indispensable Feature Set

Minimal Viable Product (MVP) is such a nice idea. Let’s build something that is as small as possible and at the same time viable, which translates to “provides value and thus make sense to build it.” Two adjectives in a mix where one counterbalances the other and vice versa.

Since I currently run a web software house I hear the term MVP very frequently. Or to be precise I hear the term MVP being abused very frequently. On some occasion the viable part would be ignored. Much more frequently though the way people understand MVP has virtually nothing to do with the minimal part.

During the early discussions about products our potential clients want to build I would typically ask about a business case behind a project or an app. It’s not about what it is that someone wants to build. It’s about why it is worth building that thing in the first place.

Note, I’m not judgmental. We contributed to better or worse ideas but I don’t reserve the right to know what’s worth building and what’s not. In fact, my questions have a very different purpose. What I want to achieve is to learn the value behind the app so that we can have a meaningful discussion about stuff in a backlog.

Now, this is the part where typically I’d really like to have people read Lean Startup before they are even allowed to talk to any software shop about building their product. And then, read it once again to understand what they are reading in depth.

The reason is that most of the time I can instantly come up with a batch of work that is one third, one fifth or one tenth of what was labelled an Minimal Viable Product by a potential client and it would still validate a business hypothesis behind a product. It likely means that with a bit of effort and better understanding of the context our clients would be able to cut it down way further than that. It may mean that they’d be even able to validate the basic idea without writing any software at all.

These so called “MVPs” wouldn’t recognize a real Minimal Viable Product even if it kicked them in the butt.

A sad part is that most of the time discussion around what really is minimal is futile. While I can provide my insight and encourage to learn more about the topic an argument often boils down to “we really need to build it all because, well, we don’t believe anything short of that would work.”

The long story short, I believe that MVP is in the top 5 most abused terms in our industry. By now referring to MVP is mostly meaningless unless you ask a series of questions to understand what one means by that. We could have skipped he MVP part, have the same discussion and we’d save a little bit of time.

That’s why I believe we need another frame for discussing what the initial increment of a product is.

What I caught myself on a number of times was proposing our clients a different constraint. Let’s step aside from discussing what is minimal and what is viable. Let’s figure out which features will be the part of the product in every single, even most crazy, scenario that we can think of. And I really mean every single one of them.

What I try to achieve with this discussion is to find the set of features that is a common denominator for all the options of building the product. There’s always something like that. A core process that the app support. A basic idea that the app is built upon. An ultimate issue that the app attempts to solve.

What I don’t expect is to see the full solution, even the most basic one. It would be an MVP on its own and we’d be back to the square one. What I expect is just a bunch of bits and pieces that are required to eventually build the app.

It is neither minimal nor viable.

It is indispensable though.

There are a couple of reasons to do that. The first one is that it reframes how both parties, the client and us, think of a product. We don’t try to settle on what is viable and what is minimal. We simply go with something that we know will be useful.

The other one is that it addresses the huge challenge of building a relationship. In fact this part goes really deep. It typically starts with a question how much building something would take. Some sort of an estimate. Well, it’s another thread. I’m not fundamentally against the estimates and see value in understanding generally how much something would take. At the same time I acknowledge that humans are simply not well equipped to estimate as we can’t learn to assess stuff in abstract measures. At the end of the day though, the smaller the batch size of work the smaller the potential risk and the smaller the estimation mistake.

In other words the smaller the initial batch of work the easier it is to start working.

It is true from another perspective as well. The most important modifiers of the cost of building a product in a client-vendor scenario isn’t anything related to the product itself. It is the quality of collaboration. It’s about both parties feeling like they’re the part of the same team. It’s about short feedback loops. It’s about working together toward the goal.

Unless it is about lack of transparency, distrust, and exploiting the other party.

The tricky part here is that you don’t know where at this spectrum you are until you start working. Building the smallest possible batch of work together pretty much gives you all the knowledge you needed. Seriously, you don’t need more than just few weeks to get a good feeling where collaboration part is going.

That’s why this the idea of Minimal Indispensable Feature Set is so useful whenever more than a single party is involved in building a product.

Minimal Indispensable Feature Set is perfectly aligned with building an MVP. In fact it is a subset of an MVP. At the same time it addresses the part of the setup that goes way beyond simply defining of what product is.

We live in a world where more and more frequently the building part is outsourced to another party. Getting the collaboration right at least as critical as getting the product idea right.

December 29, 2014