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. 

260days

9days

10days

7days

19.5days

4.9days

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. 

9hrs

1hr

.5hrs

1hrs

.5hrs

6hrs

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.   

5%

10%

5%

5%

75%

4.5hrs

% 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. 

?%

?%

?%

?%

?%

4.5hrs

% 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.

9hrs

This is really on the organization level. 

6hrs

DEV

HOUSE

COLLECTIVE

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

4.5hrs

BluePrint

Sprint

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. 

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