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Good morning, how was everyone's day yesterday. Awesome. Great. Because we have another phenomenal day of programming for you today, um, this morning, and to share with you two things, I'm going to talk a little bit more about the work of Dr. Colada Perez. Uh, talk about the five ideals and frame. So many of the stories that we've heard of last two days, uh, within them. Uh, but before that, I wanted to share something that Michael Winslow from Comcast shared with me a couple of weeks ago, but that he didn't share yesterday, but I want to tell you about, because I do think it's important. So he shared the story of, uh, the technically speaking program that he started. Um, and a few interesting things have happened to Michael, uh, since he started that program one year ago, uh, his paws outlook and buys fractions made invisible at the highest levels of Comcast, including the CTO, the chief network officer, and many others he's, uh, he's been able to obtain major funding support for several initiatives, including the internal Comcast DevOps days event and around the country.

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And he's being recognized nationally, uh, for the pioneering work that he's doing. So it's great to see that not only is the work that he's doing benefiting society and Comcast has also had great benefits for him as well. So I think it's so great that you can actually do both. And I, the reason why I wanted to share that with you is that, uh, there's so many amazing outcomes that happen when you drive important things, you get appreciated by important people. So, um, that's why I want to share that. So let's talk about Dr. Colada Perez. So yesterday I had shared Dr. Prez work, her novel contribution was, uh, showing how that any time a major mode of production when the cost is rapidly diminished, it goes, uh, certain things happen. Um, and that's happened five times the age of, uh, the industrial revolution, age of steam and railways, age of steel and heavy engineering age of mass production.

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And, uh, um, I see Mick has cavalierly renamed, uh, her last one age of software and digital. And we talked yesterday about how each one of them have also created a mode of management that transformed how, um, large organizations work. And, uh, we had had asserted that this empty box I genuinely believe is going to be created, uh, called dynamic learning organization. And by the way, after the workplace engagement panel yesterday, I am at moral certainty that, you know, all the things that, uh, Dr. Andre Martin talked about on day one, uh, what, uh, Dr. David Almeida from Kronos talked about on day two, right? I mean, this all, they're all saying the same things, right? It is innovation happening at the edges fully supported by core, right? I mean, that is it's clear to me that that is a common frame that embodies dev ops, the Toyota production system and everything that goes into dynamic learning organizations.

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But there's another part of Dr. work that is, uh, incredibly interesting to me. And that is during the there's really, uh, two parts of, uh, these cycles. The first one is driven by financial capital. So when this new innovation happens, um, there's a, uh, boom, right, uh, driven by financial capital. So VCs wall street, um, uh, mix noted that in Detroit, 100 years ago, there were 300 car startup companies. Uh, so after that huge boom, uh, and often sometimes speculation does a huge crash, and then there's an intense period of reregulation. Um, and then there is, if all goes well, um, a 50 year period, that's often an economic golden age that is driven not by financial capital, but it's driven by production capital. And so the stories, and so the last age, um, the real societal value in economic wealth is not created by, uh, the car manufacturers.

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It was the car manufacturers in combination with the interstate highway system and the re-engineering supply chains. That is what to set the stage for the 50 year economic expansion, the largest mansion that we've seen, uh, in modern civilization. And so the stories being told here are that type of story, right? These stories are being funded, not by financial capital, but through production capital. And so the, the claim I'll make is that as much value has been created by the Facebook, Amazon, Netflix, Microsoft, and Googles, right. That will be eclipsed by the economic value that will be created by this community when every large brand adopts all of the methods pioneered by the tech giants that will generate trillions of dollars of economic value per year. Right. So, uh, hopefully that will set the state. And when that happened, dad's what, um, actually corrects the wealth redistribution. That's when we see incredible gains and, uh, a more just society. So that's why I think this work is so important.

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So the other thing I want to talk about is a little bit more detail about the five ideals. I had mentioned that, uh, the cost structure using the unicorn project to embody, you know, uh, the success stories and the hero's journey of the DevOps enterprise community are framed through these five ideals. Uh, the first idea is about locality and simplicity. Uh, the second one is about focused flow and joy. The third is about improvement of daily work. Fourth is psychological safety and the fifth is customer focused. So what I'd like to do in the next 15 minutes is just share with you some of what some of those elements of each of those five ideas are. And point to specific examples of them that we've heard over the last two days. So locality and simplicity. And by that, I was very interested that, uh, Joe ahow, uh, CFO Compuware at, you mentioned how simple is not easy, right?

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Uh, simple actually takes, uh, work. And, and so, uh, in the, uh, measure of this, you know, some of the Phoenix project of the bus factor, um, w w was quite prominent, right? How many people need to be hit by a bus for the service or project or company to be in grave jeopardy at parts unlimited and Phoenix project? The bus factor was one, right, Brent, right? If something happened to Brent, uh, no one could get work, done. Incidents could get resolved. Uh, no major initiative could be completed. So the corresponding metric in the unicorn project, uh, is the lunch factor. In other words, to get any kind of major work done, how many people do you need to take out to lunch, uh, to be able to convince them to help you, right. And you, we need to do this because everything is so tightly coupled together that everything requires 20, 30, 40 different teams.

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So the one factor is really how many people do we need to feed in order to get our things done? Is it two pizzas like the Amazon idealized two pizza team, or do we need to feed everybody in the building? And in some cases, uh, for major initiatives, you might have to schedule lunches, 43 different people, which will take months, right? Just to even get them to know who you are and what you want and why they should even care. So the ideal is, you know, that number should be small. Um, you know, two pizzas in the not ideal, it might be two truckloads of pizzas. Um, locality, uh, happens also in code in the ideal, anyone to implement a neat feature con you know, can do it just by looking and changing one file, one module, one class, right. One container or whatever, right.

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Uh, in the not ideal in order to make your change, you need to understand and change all the files, right. That could be millions of lines of code, right. They could ask Scott Prugh story of in order to get major features done, they would have to transit across 10 different teams or more right. Uh, of which one is in, uh, has a workforce that is all retiring and maybe soon, uh, disappearing. So, uh, the ideal is, um, you know, enable teams to work independently, to be able to independently develop test and deploy value to customers.

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Oh, uh, another one, uh, that we can actually change this can be made and tested isolated from other components, right? Not ideal. Our core systems are coupled in such a way that in order to test the systems, we actually need the entire system. So this is the story we've heard from Walmart yesterday from Scott havens, right? Is that when, uh, you know, in the battle days you would actually have to test in an integrated test environment, uh, to even see if our changes worked right by moving to S event streaming, they were able to decouple those pieces from each other, another one, uh, and the organization, locality ideals, every team has the expertise, capability, and authority to be able to satisfy customer needs. And then not ideal. Everything needs to be escalated up to levels over to, and down to so visually to depict this, um, you know, th this is called a square up over to up over two.

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And as a friend of mine once said, uh, that's actually the ideal case for us. Uh, in the worst case, you actually have to do the reverse path in order for two engineers actually work together. All right, how am I doing? Is this interesting? Funny? All right, good. So first idea was about locality and simplicity. Uh, the second one is focused flow and joy. So the ideal all energy and time is being focused on solving the business problem. And you're having fun. Uh, not ideal is all your time is spent solving problems. You don't even want to solve Googling, stack, overflowing, writing Yammel files, make files, try to figure out how to escape spaces and file names inside of make files. Right? And for me, one of the side effects of learning enclosure and functional practice programming is that I've learned how much fun I have just working on my feature, right.

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The thing I want to solve. And here's all the things that I know are important, but I now detest, I, I become one of the fussiest developers ever. I don't want to deal with anything outside of my application. I don't want to connect to databases. I don't want to, because it always takes me a week. Uh, I don't want to connect to anything. I don't wanna update dependencies, uh, because everything potentially breaks secrets manager. I'm the idiot to put stuff into the repos, right. All the keys, uh, all the time, um, you know, patching, I don't know why my Kubernetes costs are so high, right? So in my ideal, right, I'm just working on the feature I want. And I have friends, um, in the infrastructure organization conduct can take care of all this for me. So, so many of the stories we've heard like the team from, uh, Adidas, they are putting all the operations and security expertise into the platform.

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So any developer, just by virtue of using the platform, inherits the best known understanding of how to be secure, how to be operable and how to scale. And they can focus very parochially on the application, which I think is actually a good thing. Um, and so that is why, even though I've become a very fussy developer, I do make this claim that there's never been a better time to be in infrastructure and operations. Those is the best time it's not behind us. It is instead ahead of us. Part of the second ideal, uh, was actually the reasoning, maybe the rationale for it was made evident by Dr. Mccarsten. He said, he introduced me to the work of, um, this notion that there's really two types of learning. Uh, the first is called procedural learning or decorative learning. So this is the type of things when we learn, we appreciate right.

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Often we're building upon decades of knowledge and everything that we learned, we value because we know that will serve us for decades to come. And then there's this other type of learning called one shot learning. Um, and so this is the things like Googling, how do I escape spaces and make files, right. I don't really care. Right. In fact, I have to say, when someone actually told me, uh, uh, someone texted me, oh, that's a double dollar sign and make I'm like, I actually got angry because I knew that 30 years ago, but now I literally do not care. I resent the fact that I spent probably an hour Googling for things. So like I actually screenshots of certain things that actually make me angry because I resent the fact that, uh, yeah, this is actually a good one. The bad one was, um, the double dollars I'd make file.

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Anyway. Uh, there are certain things that just do not care about anymore. Um, and because it only is a problem that I need to solve, but is one that has no long-term value for me, third improvement of daily work. And so this of course was, um, brought up in the Phoenix project. And, uh, this was really based on the work of Dr. Steven spear, uh, where this is a statement that improvement of daily work is even more important than daily work itself. And the best example for me was of the not ideal was a general motors Fremont plan. So this is the famous site of the amazing NUMMI joint venture and Fremont, California, but for decades, this was by far the worst performing automotive plant in north America. There are walked documented cases, um, where, because there were no effective procedures to detect problems during the assembly process, nor were there explicit procedures on what to do when films were found, uh, engines were put in backwards, cars were missing the steering wheels and tires, cars being have to be towed off the assembly line because it wouldn't start.

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Um, so that is like not ideal. Ideal is the notion that we put as much feedback into our system sooner, faster, cheaper with as much clarity between cause and effect. Um, and the reason we do that is because so that we can invalidate assumptions, every assumption that we can invalidate is a learning opportunity. Um, and we then spread them throughout the organization. And again, uh, the notion of platforms I think is so important because it allows us to be able to share learnings, local discoveries can then get broadcast globally and then inherited by every, uh, person who uses that platform, elevating the state of productivity across the entire organization. Uh, we all know about the Andon cord. Um, and we all know how many times in typical plant and on court has pulled, of course, right. And the tickle Toyota plant, the Anton quarters polled 3,500 times a day, right.

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And so we know that in this community, but, uh, what is pine not as well known. Uh, and I think what this community has difficulty convincing others is that greatness isn't free. Uh, we need to pay down technical debt as a part of daily work. And so I'm going to share, and, uh, the, uh, the tool that the McPherson I wrote to, to basically tell the story, and there should be an attribution there. Uh, we lost in the copy and paste, sorry, Mick. And so, uh, again, the background of this is, uh, many years ago, someone very wise told me when dealing with executives stick with small numbers and primary colors. And what I found in my journey is that when dealing with very, very senior people that is not sufficient, you must stick with something even simpler, which is only up and down arrows.

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So the story of how DEC cutting off that gets created is this we've all been in, uh, in periods where we need to get to market, right? So we push, push, push, uh, to get features into a market so that customers will value it. Maybe it's look at first to market, or maybe just to even enter the market because we're last. And when we cut corners, right, and this is what it takes, this is what drives up debts and risks. Uh, this is what drives on quality and that is what drives up defects. And so, yeah, we all know that, but you know, the story continues when that happens. Our ability to actually ship features goes down and the amount of time spent fixing defects goes up to the point where we can be spending all our time, right. Over a hundred percent just fixing defects.

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And so when that happens, this is when reliability tanks, customers leave morale, plunges, and developers leave because everything is so hard. And so John color tweeted this out and I'm so happy that John Colt was here today and presenting today, he sent this to me and I love it. He said in 2015, a certain reference feature would take 15 to 30 days, three years later because of technical debt. It takes 10 times longer. Right. And so it really validated the notion that this happens, right? It's like dark matter, right. We finally know that it exists. I share with you earlier this week, the story of Risto Sloss, SMA the chairman of Nokia, um, and for him to be able to identify the problem that Nokia had, that there was no way they could survive. If they were to keep using the Symbian operating system. If the build times took 48 days, no developer, uh, could tell whether what they wrote worked, uh, or would have to be done in two days.

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And that is what drove them to any other strategy in this case, the windows mobile, which wasn't so great for them, but that was better than staying on Simeon O S um, what I didn't, uh, share, uh, was that every tech giant has gone through this. I had mentioned the Microsoft security stand down, uh, that basically everyone's, these tech giants have gone through a feature freeze, uh, to basically say, um, you know, if you had to choose between feature or paint on text let's in fact, no, they said, Nope, we're not gonna work on features. We're going to pay down technical debt. And so here's that story using up and down arrows, we take features down to zero. This allows us to pay down technical debt, which allows us to increase quality, which allows us to take down defects that maybe have to zero, but at, at least, at least as something that's, you know, tenable.

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And that's what allows us to get back to a position where we can deliver features again. Um, so, uh, that is the choice that these or the tech giants have made. What is interesting. So ideal. The tech giant spends between three to 5% of all developers dedicated to improving developer productivity. It has been documented that Google spells 1500 developers just working on dev productivity. It's a billion dollar spend per year. Microsoft has likely over 3000 developers, not ideal in many of our organizations. We give it to the summer interns or people not good enough to be developers, right? Who's gonna work on the CIA systems. Let's, uh, we're gonna put the developers who aren't good enough to work on features. Um, so I think in a really neat karmic, uh, continuation of the Microsoft journey, just quote, came from Satya Nadella, CEO of Microsoft. He said, if a developer has to choose between working on a feature or dev productivity work on dev productivity, right?

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Because that will pay off way into the future, right? This is technical debt in the reverse. There's a compounding interest working in our favor. Um, last thing on the technical innovation, there was a graph that, uh, Jeff gala Moore showed me when I was visiting him in DC. And it was this kind of an on-court experiment where a team said, we're gonna put an end on cord in development and see what happens if a developer needs help, or anyone in the team needs help they type and on in the slack channel, right. And everyone was forming the problem. And of course this is preposterous, right? There's no way an and on cord will work for knowledge work, right? What he showed was that in blue, as a number of sorry, in red as the, and Encore pulls increase, um, flow time or lead time decreases.

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In other words, the more they pull the cord, the fastest, they good features into the hands of customers. I thought this was a marvelous story. And if you're interested in this, uh, this team will be presenting later today. Uh, I think astonishing and, and just a genuinely novel contribution to the industry, ideal number four, psychological safety. Of course, we all know the Western model with Nicole, Dr. Flores and talked about that yesterday. And I was so delighted that in the latest state of DevOps report, uh, they were actually able to integrate the work of project to Aristotle this incredible program done years ago, to actually understand what made great teams work. This is actually again, referenced by Dr. David Almeida from Kronos, uh, as a benchmark that they were using. And again, at the top, always showing up the top as driving performance was psychological safety.

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To what extent do teams feel comfortable, um, saying what they think, um, without feeling without the risk of feeling embarrassed or castigated or, um, or made to feel bad. So that again showed up, uh, in so many, the presentations that you heard, uh, today. So, uh, and then ideal number five is relentless focus on the customer, but it really should be customer focused. And again, I think one of the best examples was the empty data center that copy where, right, is that really being mercenary and deliberate about what creates durable, lasting advantage that's core and what is context and what we need to do to make sure that context doesn't starve core. And Jeff Dr. Jeffrey Moore actually said with the killing ground companies is when context, uh, starves core. So, uh, that's the five ideals in a nutshell. And with that, I'm gonna bring out Jeff Palomar to help us open day, Who had a great time at the lightning talks last night. Yeah. What a great time, so much respect for those presenters that is

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Such a hard format to, to deliver and land well, and thanks to Sonatype last night for sponsoring that how's everybody feeling today. Okay. All right. Well, let me tell you what I think I just heard in that response, some of you are feeling super pumped about all of the things that you've learned in the last two days here at the summit. Yeah. Some of you are thinking, I finally found my group of fellow travelers. Like-minded individuals, you're feeling very connected. Some of you are very thoughtful about all of the presenters and the talks and the things that you've learned and wondering how those might apply back in your day jobs. Some of you might be realizing you've got a lot of work ahead of you when you do go back to your day jobs. Some of you have gotten some resolve and some hope because you've seen the success stories of the experience reports and the people who have been talking about the accomplishments that they've had, applying these DevOps patterns, practices, and principles, as some of you might be just totally guessed at this point or all of the above.

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You might be feeling all of these all of the same time. Well, we're going to try and fill the tank back up again. We've got a great day of programming ahead of us today. We want to hear the stories. So before you leave Vegas, we'd love to hear the stories, the things you've learned, the people that you've met and the ideas and the actions that you're going to try out back at your, uh, at your job. We've got a channel in the slack instance, it's called summit stories. Please post that before you leave. And speaking of sharing and stories and feedback, please get your session. Evaluations in sharing is caring. Want to thank our founding sponsor. It rev our platinum plus sponsors. Our platinum classic sponsors. Our gold sponsors, our silver sponsors go talk to them in the expo hall. This is the last day to be able to do that and see how they can help us on our DevOps journeys. And because it's the last day, it's also the last day to play the unicorn game and get those 23 unicorn selfies, which are keepsakes in and of themselves, I think. And then also the last day for the sponsor passport. In fact, uh, you need to have that completed today by 1:10 PM and dropped off in the it revolution booth. Make sure that you write your name on it. You don't want to be that person whose card is drawn without a name. So we can't find the winner.

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Remember sponsors had sparkle to our journeys. It's the final day buckle up back to Eugene and you Jeff.