Today, I’m really excited to finally talk about the Throughput Histogram—a topic I’ve been eager to cover for a while now. This chart is one of the hidden gems at Nave; it’s powerful but often overlooked. So, let’s get into it!
What’s the Throughput Histogram all about?
The Throughput Histogram shows the frequency distribution of the number of tasks your team completes over a set period.
In simple terms, it tells you how much work you’ve delivered per week, two weeks, or month, depending on your release cycle.
- Horizontal Axis: This shows the number of tasks completed (throughput).
- Vertical Axis: This shows the number of days that had a certain throughput (frequency).
Each bar on the histogram represents how many times you delivered a specific number of tasks. It’s a straightforward yet powerful way to visualize the capacity of your team.
The Main Purpose of the Throughput Histogram
So, why do you need to track this information? Well, that’s how you plan your next iteration.
Here’s how you can really make the most out of it in 3 simple steps:
Step #1: Analyze Your Past Performance
Let’s say you’re running two-week sprints. Analyze your histogram to see how many items your team has completed in previous sprints.
Here are the insights you can take away from the Throughput Histogram above:
- There was 1 sprint where this team managed to deliver 5 items.
- In 2 sprints, they finished 10 items.
- 1 sprint had 12 items.
- Another 2 sprints had 14 items.
This analysis helps you understand your team’s capacity. By examining these patterns, you can set more realistic and achievable goals for your upcoming sprints. This approach ensures that you’re not overcommitting and as a result underdelivering.
Step #2: Determine Your Minimum Commitment
Next, you want to figure out the minimum number of items your team can commit to with high confidence. If the histogram shows that your team can deliver at least 5 items with 98% certainty, you can confidently commit to at least 5 items in the next sprint.
This step is about being realistic and setting your team up for success. Knowing your minimum capacity helps in making sure that you are not overburdening your team and can deliver on your promises.
So, when you decide on the items that will go into your next sprint, make sure the most important items go into these 5 slots.
Step #3: Assess Probability for Higher Throughput
Use the histogram to understand the probabilities of delivering more items.
For instance, if there’s a 70% chance of delivering at least 12 items and a 50% chance to finish more than 14 items.
The higher the number of items, the lower the chance of hitting that target.
Use this information as a guide to determine the amount of product backlog items necessary to achieve your sprint goal.
And if your team commits to a number that comes with low confidence of that being achieved, put that commitment into question. The greatest benefit of performing analysis based on throughput is that it represents your actual capability to deliver.
How Does the Throughput Histogram Compare to the Throughput Run Chart?
I often get asked: what should I get from the run chart that I don’t get from the histogram? It’s a common misconception that both charts serve the same purpose. They don’t. The Throughput Run Chart has two main purposes:
- Tracking Actual Throughput Over Time: The Throughput Run Chart helps you spot trends and patterns, like whether your throughput is increasing, decreasing, or staying consistent. Identifying these trends can be crucial for making informed decisions when it comes to process improvement.
- Evaluate Strategy Goals: The chart also enables you to break down your throughput to understand what type of work your team spends time on and if there’s a gap between strategy and execution. This helps ensure that your team’s efforts align with your strategic goals.
These tools complement each other beautifully and give you a comprehensive view of your team’s performance. The Throughput Histogram provides a solid foundation for setting realistic goals and managing expectations, while the run chart helps you track progress over time and spot trends that can inform your strategy.
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Alright, my friend, I hope this helps you understand how to use the Throughput Histogram effectively. If you have any questions or need more insights, just reach out. Thanks for tuning in! I’ll see you again next week, same time and place for more managerial goodness. Have a wonderful day!
