In this presentation, METRI Supplier Performance Measurement expert Harold van Heeringen explains why the industry is struggling with the management of agile teams.
Basically, the teams themselves create a situation of ‘unaccountability’ by using measurement methods that are not standardized (e.g. story points). The metrics based on these measurements certainly have a lot of value in the teams themselves, and really support decision making on the team level, but they can’t be used for management purposes as they are not objective, repeatable, verifiable and defensible.
However, there will be people in the organization that do have accountability. They need to understand how the budgets need to be divided, what should be the team size of the teams and which teams will deliver which functionality at which moment in time. They also need to know if the performance of the teams is in line with what may be expected.
Ultimately, the CIO is responsible for the business value the teams deliver to the organization and the costs involved. Especially when (part of) the teams are outsourced to one or multiple suppliers, it becomes even more important to control the costs of and the value delivered by the teams.
This is the main reason that more and more organizations are including output-based metrics in the contracts with their suppliers. In this presentation, the main output based supplier performance metrics are highlighted and the way these metrics can be used in contracts is explained.
