Understanding Remote teams by breaking it down to first principles - What is an hour of work worth?
"if you cant measure it, you cant manage it"
We needed to first breakdown what an hour of work is worth for an in-house team to create a baseline.
Step 1 - Determine how many total hours per day can be worked by an employee.
Ave work days per year
Ave Bank Holidays per year
Ave Vacation Days per year
Ave Sick days per year
Ave Work days per month
Ave Work days per week
Step 2 - Of total days worked what was the breakdown of how an hour was spent actually working.
Ave hours worked per day
Ave hours spent for lunch
Ave time spent on breaks
Ave time on internet/research
Ave time spent in meetings
Total Hrs of work.
Step 3 - We wanted to know how effective a dev hour was being utilized. We looked at what causes led to poor capacity utilization and the effect it had on daily output. We analyzed a sprint to get an average.
% fixing bugs, review code.
Time spent idle due to poor phase planning
Rewriting code due to new features
Downtime due to estimating inaccuracies.
Daily Capacity Utilization.
Total Actual Hours
Step 4 - This is getting into the grey area but we really wanted to know 'dev efficiency'. We looked at the adverse effects of evolving code base, dev tunnel vision, ramp up time to a new project. Truth is we decided to just take the benefit of the doubt and not account for it.
% of time learning new technologies
Loss of time due to tunnel vision
Churn rate and time spent rewriting
Peer code review and learning
Ranges from 10 - 20%
Total Actual Hours
What we realized is that a lot of the inefficiencies in effective and efficient hours came down to properly planning and ensuring the Dev teams were always on the same page as the PMs, Business teams, and company visions.
This is really on the organization level.
Through our vetting of dev houses we focus heavily on this. We have programs and tools to ensure top level organization.
project planning is key here. Nothing can be missed
This ensures that when work is done it is the right work. DHC + our blueprint sprint gets daily hours up to 6-7 on average.