Measuring Success

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The Agile Manifesto offered a philosophy for accomplishing technical work efficiently; The Agile Enterprise builds on the previous text and outlines how to apply Agile concepts throughout an organization. Filled with real-world examples, this book will show students how to break large problems down into smaller, manageable ones; assist managers in finding their value with self-managing teams; and help executives track and recognize success in their businesses. Several methodologies are outlined to help teams operationalize Agile ideas. Organizations should adapt these methodologies to their own circumstances and remember that, with Agile, individuals and interactions are the key, not tools and processes. Chapter 6 looks at measuring success in agile companies. Story point is an Agile Scrum approach to sizing work items; it is not a fair way to evaluate a team's or an individual's effectiveness, but upper management may use it as a measure simply because team managers do not offer other useful metrics. Quantitative measurement of businesses, teams, and employees is encouraged in current management theory; OKRs are a compromise between quantitative measurements and potentially creativity-stifling metrics. Two types of OKRs are described: committed must-do OKRs and aspirational OKRs. OKRs need to be measurable, unambiguous, and significant, and its key results need to be numeric. Ultimately, OKRs are an improvement on the concept of MBO.
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