DevOps and Value Stream Thinking ENABLING FLOW, EFFICIENCY AND BUSINESS VALUE 1 

Helen Beal Helen leads the ambassador program at PeopleCert for DEVOPS INSTITUTE, ITIL, and PRINCE2. She is CEO and chair of the Value Stream Management Consortium, co-chair of the OASIS Value Stream Management Interoperability Technical Committee, and chair of the DevNetwork DevOps Advisory Board. She provides strategic advisory services to DevOps and VSM industry leaders. Helen is the author of the annual State of VSM Reports from the VSMC and the State of Availability Report from Moogsoft. She is a co-author of the book about DevOps and governance, Investments Unlimited, published by IT Revolution. She is a DevOps editor for InfoQ, and also writes for many other online platforms. Helen hosts the Day-to-Day DevOps webinar series for BrightTalk and speaks on DevOps, AI, and value stream-related topics at industry conferences and corporate events. Bringing joy to work 2 

The DEVOPS INSTITUTE portfolio includes the most widely used certifications for DevOps skills, as well as in demand AI, data, analytics and software development skills. 3 About PeopleCert We are in the business of dream making, turning dreams into reality and fuelling the dream economy. PeopleCert is the global leader in the development of global best practice frameworks and certifications that improve organizational efficiency and enhance the lives and careers of people. Our vision | To empower organizations and people to achieve what they are capable of. Millions of candidates and individuals 50,000 leading companies (82% of Fortune 500) 800 government departments in 45 countries Our values | Quality | Innovation | Passion | Integrity | Clarity | Velocity Our guiding principles 

talk map OUR FLOW TODAY Why value stream thinking What VSM is now The DevOps toolchain What to do now Your Value Stream Network 4 

5 The Challenges We're Addressing Improvement initiatives Huge backlog of changes Do more with less Deliver more value Keep talent happy Improve quality Go faster How? 

6 A Short History of VSM 1918 1900 1988 1991 2021 1937 1995 1913 2000 1925 1950 1975 2000 2018 Founded 1st VSM Wave Report Published 2004 The internet happened here 

7 Why VSM? Delighted customers mean higher organizational performance Optimizing value flow and realization results in sublime customer experience “Value Stream Management is a combination of people, process and technology that maps, optimizes, visualizes, measures, and governs business value flow through heterogeneous software delivery pipelines from idea through development and into production.” Forrester Value stream management optimizes value flow and realization 

8 Digital Value Streams are Different Digital focus: 90% Design + Development, 10% Production + Delivery Manufacturing focus: 10% Design + Development, 90% Production + Delivery Design + Development (D+D) Production + Delivery (P+D) Common activities Production + Delivery (P+D) (D+D) Design + Development (D+D) (P+D) 

9 What the Analysts Said ‘Predicts 2021: Value Streams Will Define the Future of DevOps’ by Daniel Betts, Chris Saunderson, Ron Blair, Manjunath Bhat, Jim Scheibmeir, Hassan Ennaciri. Published 5 October 2020 Vendor Selection MatrixTM Value Stream Management: Top Global Vendors 2020’ by Eveline Oehrlich, published July 2020 The Forrester WaveTM: Value Stream Management Solutions, Q3 2020’ by Chris Condo with Christopher Mines, Diego Lo Giudice, Andrew Dobak, and Kara Hartig, published July 15, 2020 ‘DevOps 2021: Evaluating High Growth Markets in the DevOps Pipeline’ by Stephen D. Hendrick, published April 2020 “To accelerate development and enable continuous delivery of customer value, organizations need to reach the next level in their agile and DevOps practices. I&O leaders and application leaders must focus on value stream management to maximize flow, improve delivery efficiency and drive innovation.” “Value Stream Management is a must-do not a nice-to-do. Enterprise organizations are realizing that increasing the velocity and quality of software delivery are not the only goals.Business teams and product owners are looking for what are the returns on investment and how they are delighting customers.” “In 2017, few AD&D leaders had heard of VSM; since then, the VSM tools market has evolved rapidly as have prospective buyers of VSM tools. AD&D planners, engineers, and release experts understand VSM and want it to help them plan, create, and deliver software experiences that align to both the business’ and customers’ needs.” “Value stream management is a market in which large enterprises had massive expectations back in 2018 Q2. Currently, vendors appear to be delivering against these expectations given the nearly 50% growth in penetration that is expected to occur in 2020 and 20+ percent growth in 2021.” Gartner Research in Action Forrester EMA 

10 It’s taken me 10-plus years to come up with my own one-line definition of DevOps: “DevOps is whatever you do to bridge friction created by silos, and all the rest is engineering.” And so, if you’re doing technology just for the technology and you’re not trying to overcome some friction of the human kind of siloing or group siloing or information siloing or whatever, then you’re just doing the engineering part and you’re not, in my opinion, doing the DevOps part.” Patrick Debois Where are we at? 

11 Chapter 5: Selecting Which Value Stream to Start With Chapter 6: Understanding the Work in Our Value Stream, Making it Visible, and Expanding it Across the Organization Once we have identified a value stream to which we want to apply DevOps principles and patterns, our next step is to gain a sufficient understanding of how value is delivered to the customer: what work is performed and by whom, and what steps can we take to improve flow. This is Not New to DevOps 

VALUE REALIZATION EFFICACY Outcomes (customer experience) ● Customers actively using capability ● Rate at which new customers arrive ● Customers’ description of experience ● Value stream finance health WORKFLOW EFFICIENCY Outputs (value stream health) ● Rate of flow ● Frequency of delivery ● Waste in the value stream ● The work types underway Value Stream Management has Two Goals 12 

13 VSM Correlates Positively with Performance Organize around value streams Research shows that high performing organizations are more likely to: Be working with digital products Create value hypotheses—across the full scale of work items Define value hypotheses earlier in the product life cycle Put the customer first when they think about value Have faster flow—shorter lead and cycle times Measure the actual value realized by their work Use a VSMP Visualize their organization as a value stream network 

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15 VSM Implementation Roadmap Connect the digital parts of your product delivery pipeline, aligned to the steps in your value stream map to start getting real-time data & insights into your value stream’s flow Connect Start Get going from wherever you are. Assess Where you are today? Scale your assessment from super-light, to whatever weight you need to spark the depth of evolution you want. Vision Set your long term vision and goals. Identify Identify your value streams—anything that delivers a product or service. You’re aiming to accelerate the flow of value to the customer. Organize Find the people accountable for every step in each value stream. Map Bring the players in your value stream together for a mapping exercise. Find where the idea starts, and track every step until the value is delivered. Inspect You’ve automated your value stream map, now use it! Set goals for your value stream and use retrospectives to determine where you are. Adapt Use your insights to design and perform experiments that adapt and optimize your flow so you can continually delight your customers. 

16 A value stream is an end-to-end set of activities which collectively creates value for a customer. James Martin, ‘The Great Transition’ Value The value-stream designers search for ways of achieving “outrageous” improvements in critical measures such as speed, cost, quality, and service. End-to-end The value stream team is concerned with all the activities, from start to delivery of results, and confirmation of satisfaction. Customer The value stream team is intensely focused on the customer (an external customer or an internal user) and is concerned with how to delight the customer. 

17 Example: Product Development Value Stream Define Design Develop Deploy Enable Test Portfolio planning Identify needs User story creation Wireframes & mockups User flows Visual design Set up environment Implement features Code reviews Develop test cases Perform testing Fix issues Configure infrastructure Deploy software Monitor performance Publish documentation Update users Gather feedback Idea Delight Learn & Adapt 

18 Managing Value Streams Before After Total waste time => 50% Time for innovation, improvement, learning MORE SPEED Faster delivery, feedback, pivots FEWER DELAYS Less friction, toil, waiting, context switching, handoffs 

19 Where Improvements are Seen After 8 stages 1 week Clear, optimized Parallel execution Clarity, autonomy Early, continuous feedback Example: Product Stream Before 38 stages 19 weeks Inconsistent Lost time in rework Confusion, misalignment Late validation 

20 Current, Ideal & Future States Current State 20% better by seeing today Ideal State What could it look like someday? Future State What can it look like 3-6 months out? 80 days 10 days 40 days 

Operational Management Work Management Performance Management Project & Portfolio Management Lean Management Application Lifecycle Management Enterprise Service Management Continuous Delivery ProductOps ValueOps Business Process Optimization Quality Management Change Management Agile Strategic Portfolio Planning Risk Management Knowledge Management BizOps FinOps DevOps Release & Deployment Management Value Stream Management & Other Frameworks 21 

22 Your Organization is Made of Value Streams 

23 Who’s doing this? 

In 2019, Telstra embarked on its Agile at Scale Transformation Journey with the aim to become more agile and responsive to the rapidly changing technology and customer needs by introducing company-wide Agile methodologies. Fast forward to 2023, Telstra continues to adapt and evolve our Ways of Working to Value Stream Ways of Working. Susan Bai 

25 The mindset and operational shift from delivery management to value stream management can be a steep change. There are barriers such as short term-ism, putting outputs over outcomes, the endless pursuit of the one productivity metric, settling for BAU, and tooling complexity. Getting out of the quagmire demands psychological safety, a clear VSM strategy where you start small and scale, multidimensional measurement, nurturing a learning culture, and educating the executives. Sejal Amin 

The two case studies, though different in their nature, highlighted the importance of viewing value streams not just as organizational tools but also as reflective methodologies for individual growth. The message is clear: whether it’s about performing a task, moving the business forward, or influencing change, it’s crucial to understand one's role within the value stream. Dionysis Svoronos 

Context matters. Respect the differences between business and team focus and conversations. Being stable doesn’t always mean steady output. Align executives’ mindset around contemporary practices and metrics. Phil Clark 

CONTINUOUS INTEGRATION Code is created, artifacts incorporated, versions controlled, code is built in a trunk based manner. CONTINUOUS DELIVERY The changes are approved, released and operated in the live environment. CONTINUOUS TESTING Functional and non-functional testing takes place at every commit at every step or gate through route to live. PORTFOLIO AND BACKLOG Vision and goals are set and aligned to epics, features, PBIs and user stories. INSIGHTS AND ANALYSIS Monitoring and observability provide insights into customer reaction to changes and report on value realization. THE VALUE CYCLE THE VALUE CYCLE 

PORTFOLIO AND BACKLOG Vision and goals are set and aligned to epics, features, PBIs and user stories. INSIGHTS AND ANALYSIS Monitoring and observability provide insights into customer reaction to changes and report on value realization. CONTINUOUS INTEGRATION Code is created, artifacts incorporated, versions controlled, code is built in a trunk based manner. CONTINUOUS DELIVERY The changes are approved, released and operated in the live environment. CONTINUOUS TESTING Functional and non-functional testing takes place at every commit at every step or gate through route to live. THE DEVOPS TOOLCHAIN PORTFOLIO MANAGEMENT 

PORTFOLIO AND BACKLOG Vision and goals are set and aligned to epics, features, PBIs and user stories. INSIGHTS AND ANALYSIS Monitoring and observability provide insights into customer reaction to changes and report on value realization. CONTINUOUS INTEGRATION Code is created, artifacts incorporated, versions controlled, code is built in a trunk based manner. CONTINUOUS DELIVERY The changes are approved, released and operated in the live environment. CONTINUOUS TESTING Functional and non-functional testing takes place at every commit at every step or gate through route to live. THE DEVOPS TOOLCHAIN PRODUCT BACKLOG 

PORTFOLIO AND BACKLOG Vision and goals are set and aligned to epics, features, PBIs and user stories. INSIGHTS AND ANALYSIS Monitoring and observability provide insights into customer reaction to changes and report on value realization. CONTINUOUS INTEGRATION Code is created, artifacts incorporated, versions controlled, code is built in a trunk based manner. CONTINUOUS DELIVERY The changes are approved, released and operated in the live environment. THE DEVOPS TOOLCHAIN COLLABORATIVE WIKI 

PORTFOLIO AND BACKLOG Vision and goals are set and aligned to epics, features, PBIs and user stories. INSIGHTS AND ANALYSIS Monitoring and observability provide insights into customer reaction to changes and report on value realization. CONTINUOUS INTEGRATION Code is created, artifacts incorporated, versions controlled, code is built in a trunk based manner. CONTINUOUS DELIVERY The changes are approved, released and operated in the live environment. CONTINUOUS TESTING Functional and non-functional testing takes place at every commit at every step or gate through route to live. THE DEVOPS TOOLCHAIN ARTIFACT REPOSITORY 

PORTFOLIO AND BACKLOG Vision and goals are set and aligned to epics, features, PBIs and user stories. INSIGHTS AND ANALYSIS Monitoring and observability provide insights into customer reaction to changes and report on value realization. CONTINUOUS INTEGRATION Code is created, artifacts incorporated, versions controlled, code is built in a trunk based manner. CONTINUOUS DELIVERY The changes are approved, released and operated in the live environment. CONTINUOUS TESTING Functional and non-functional testing takes place at every commit at every step or gate through route to live. THE DEVOPS TOOLCHAIN SOURCE/VERSION CONTROL 

PORTFOLIO AND BACKLOG Vision and goals are set and aligned to epics, features, PBIs and user stories. INSIGHTS AND ANALYSIS Monitoring and observability provide insights into customer reaction to changes and report on value realization. CONTINUOUS INTEGRATION Code is created, artifacts incorporated, versions controlled, code is built in a trunk based manner. CONTINUOUS DELIVERY The changes are approved, released and operated in the live environment. CONTINUOUS TESTING Functional and non-functional testing takes place at every commit at every step or gate through route to live. THE DEVOPS TOOLCHAIN CI SERVER 

PORTFOLIO AND BACKLOG Vision and goals are set and aligned to epics, features, PBIs and user stories. INSIGHTS AND ANALYSIS Monitoring and observability provide insights into customer reaction to changes and report on value realization. CONTINUOUS INTEGRATION Code is created, artifacts incorporated, versions controlled, code is built in a trunk based manner. CONTINUOUS DELIVERY The changes are approved, released and operated in the live environment. CONTINUOUS TESTING Functional and non-functional testing takes place at every commit at every step or gate through route to live. THE DEVOPS TOOLCHAIN UNIT TESTING 

PORTFOLIO AND BACKLOG Vision and goals are set and aligned to epics, features, PBIs and user stories. INSIGHTS AND ANALYSIS Monitoring and observability provide insights into customer reaction to changes and report on value realization. CONTINUOUS INTEGRATION Code is created, artifacts incorporated, versions controlled, code is built in a trunk based manner. CONTINUOUS DELIVERY The changes are approved, released and operated in the live environment. CONTINUOUS TESTING Functional and non-functional testing takes place at every commit at every step or gate through route to live. THE DEVOPS TOOLCHAIN INTEGRATION TESTING 

PORTFOLIO AND BACKLOG Vision and goals are set and aligned to epics, features, PBIs and user stories. INSIGHTS AND ANALYSIS Monitoring and observability provide insights into customer reaction to changes and report on value realization. CONTINUOUS INTEGRATION Code is created, artifacts incorporated, versions controlled, code is built in a trunk based manner. CONTINUOUS DELIVERY The changes are approved, released and operated in the live environment. CONTINUOUS TESTING Functional and non-functional testing takes place at every commit at every step or gate through route to live. THE DEVOPS TOOLCHAIN USER ACCEPTANCE TESTING 

PORTFOLIO AND BACKLOG Vision and goals are set and aligned to epics, features, PBIs and user stories. INSIGHTS AND ANALYSIS Monitoring and observability provide insights into customer reaction to changes and report on value realization. CONTINUOUS INTEGRATION Code is created, artifacts incorporated, versions controlled, code is built in a trunk based manner. CONTINUOUS DELIVERY The changes are approved, released and operated in the live environment. CONTINUOUS TESTING Functional and non-functional testing takes place at every commit at every step or gate through route to live. THE DEVOPS TOOLCHAIN NON-FUNCTIONAL TESTING 

PORTFOLIO AND BACKLOG Vision and goals are set and aligned to epics, features, PBIs and user stories. INSIGHTS AND ANALYSIS Monitoring and observability provide insights into customer reaction to changes and report on value realization. CONTINUOUS INTEGRATION Code is created, artifacts incorporated, versions controlled, code is built in a trunk based manner. CONTINUOUS DELIVERY The changes are approved, released and operated in the live environment. CONTINUOUS TESTING Functional and non-functional testing takes place at every commit at every step or gate through route to live. THE DEVOPS TOOLCHAIN ENVIRONMENT/RELEASE AUTOMATION 

PORTFOLIO AND BACKLOG Vision and goals are set and aligned to epics, features, PBIs and user stories. INSIGHTS AND ANALYSIS Monitoring and observability provide insights into customer reaction to changes and report on value realization. CONTINUOUS INTEGRATION Code is created, artifacts incorporated, versions controlled, code is built in a trunk based manner. CONTINUOUS DELIVERY The changes are approved, released and operated in the live environment. CONTINUOUS TESTING Functional and non-functional testing takes place at every commit at every step or gate through route to live. THE DEVOPS TOOLCHAIN SERVICEDESK 

PORTFOLIO AND BACKLOG Vision and goals are set and aligned to epics, features, PBIs and user stories. INSIGHTS AND ANALYSIS Monitoring and observability provide insights into customer reaction to changes and report on value realization. CONTINUOUS INTEGRATION Code is created, artifacts incorporated, versions controlled, code is built in a trunk based manner. CONTINUOUS DELIVERY The changes are approved, released and operated in the live environment. CONTINUOUS TESTING Functional and non-functional testing takes place at every commit at every step or gate through route to live. THE DEVOPS TOOLCHAIN LOGGING AND MONITORING 

Netflix focuses on the value streams that are most critical to delivering the high-priority strategy bets. When the problem is about users who are already Netflix subscribers, for instance, the value stream is all about engagement: How many programs do they start watching, and how long do they watch a particular program? Those metrics send signals to Netflix about the value the subscriber derived from the program. Revenue might not be a direct factor; some value streams are about customer joy. Fonz Morris 

PORTFOLIO AND BACKLOG Vision and goals are set and aligned to epics, features, PBIs and user stories. INSIGHTS AND ANALYSIS Monitoring and observability provide insights into customer reaction to changes and report on value realization. CONTINUOUS INTEGRATION Code is created, artifacts incorporated, versions controlled, code is built in a trunk based manner. CONTINUOUS DELIVERY The changes are approved, released and operated in the live environment. CONTINUOUS TESTING Functional and non-functional testing takes place at every commit at every step or gate through route to live. THE DEVOPS TOOLCHAIN OBSERVABILITY AND AIOPS 

PORTFOLIO AND BACKLOG Vision and goals are set and aligned to epics, features, PBIs and user stories. INSIGHTS AND ANALYSIS Monitoring and observability provide insights into customer reaction to changes and report on value realization. CONTINUOUS INTEGRATION Code is created, artifacts incorporated, versions controlled, code is built in a trunk based manner. CONTINUOUS DELIVERY The changes are approved, released and operated in the live environment. CONTINUOUS TESTING Functional and non-functional testing takes place at every commit at every step or gate through route to live. THE DEVOPS TOOLCHAIN ANALYTICS AND DASHBOARDS 

With the introduction of a Value Stream Management Platform, the DevOps CoE is able to connect many of the core engineering tools. With connections in place, the data is centralized, dashboards are created and validated, then shared transparently and broadly, effectively transforming software engineering from intangible to tangible, making it real and obvious to all. From a value stream viewpoint, Lagging Indicators are automated, data-driven, and quantitative, and enable many questions to be clearly answered. Dean Caron 

Connect planning to delivery Visibility into cross value stream changes Trace user stories as they travel Manage dependencies while you break them Gain insights into waste; optimize flow Continuous compliance Inspect real-time data and adapt THE VALUE STREAM VSMPs: GLOBAL OPTIMIZATION 

FLOW in the DevOps Toolchain INSIGHTS IDEAS CI CT CD Manual testing causes delays - automate Product ownership to shorten fuzzy front end CI and trunk based development TDD, BDD, HDD, IDD: Test / Behavior / Hypothesis, Impact Driven Development Automated deployment AIOps to reduce MTTR & pay down technical debt Security team causing delays: DevSecOps Make change process lighter and peer-based Use cloud to provision environments Blameless retrospectives Observability for learning and actionable insights Chaos engineering Hackathons Limited blast radius techniques Make global discoveries local improvements ChatOps enables continuous collaboration and automation Manual testing causes delays - automate Never let a known defect downstream Software always in a releasable state Single piece flow DEVOPS INTERVENTIONS 

Your Organization 

Your Organization 

Your Organization 

Your Organization 

52 VSM Capability Matrix Dimension Emerging Learning Practicing Evolving Insights Driven Data manually extracted Data is aggregated Tools have been integrated A single tool connects all parts and automates insights Dependencies Aware of dependencies Managing dependencies Breaking dependencies Loosely coupled/ autonomous teams and systems DevOps Toolchain Building continuous integration Using continuous delivery Architected from idea to value realization Work is traceable around entire cycle - automated value stream map Metrics Incident rate, change fail rate Deployment frequency, MTTR Lead time, cycle time Flow velocity, efficiency, value realized Organizational Starting to use value stream mapping Naming value streams, some roles Teams directed around value streams and customer journeys All teams organized around value streams, dedicated roles Value Experimenting with value definitions Aligning value measurements to customer experience Designing according to expecting value outcomes, reporting on success in terms of value Defining value at the earliest opportunity, in the smallest piece of work and continually measuring customer experience. 

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