Breaking Bad Equilibrium - Devops Connect 2017 RSAC
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The document discusses concepts from game theory, economics, and behavioral psychology including equilibrium, Pareto efficiency, Nash equilibrium, and cognitive biases. It argues that organizations can fall into a "bad equilibrium" similar to situations analyzed in game theory where outcomes are undesirable for all players due to things like technical debt, lack of cooperation, and burnout. To achieve better outcomes, the document advocates applying principles of devops such as increasing transparency, managing work in progress and flow, building high trust, and embracing failure to create a "devops advanced" equilibrium and learning organization.
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Breaking Bad Equilibrium - Devops Connect 2017 RSAC
- 1. “Breaking Bad” Equilibrium John Willis Twitter: botchagalupe GitHub: botchagalupe
- 2. • One of the founding members of “Devopsdays” • Co-author of the “Devops Handbook”. • Author of the “Introduction to Devops” on Linux Foundation edX. • Podcaster at devopscafe.org • Devops Enterprise Summit - Cofounder • Nine person in at Chef (VP of Customer Enablement) • Formally Director of Devops at Dell • Found of Socketplane (Acquired by Docker) • 10 Startups over 25 years About Me https://github.com/botchagalupe/my-presentations
- 3. • Economics • Wealth • Markets • Thermodynamics Equilibrium
- 4. • Techical Debt • Cooperation • Risk • Work Life Balance • Burnout Equilibrium
- 5. It’s a strategy that all the players in the game can adopt and converge on, but it won’t produce a desirable outcome for anyone. Bad Equilibrium
- 9. Movie Fun
- 12. More Fun - Game Theory
- 13. Is a state of allocation of resources in which it is impossible to make any one individual better off without making at least one individual worse off. Pareto Efficiency
- 14. A situation is inefficient if someone can be made better off even after compensating those made worse off. Pareto Inefficiency
- 17. A concept of game theory where the optimal outcome of a game is one where no player has an incentive to deviate from his chosen strategy after considering an opponent's choice. Nash Equilibrium
- 35. Sarah Steven Split Steal Split Steal 100%50% 50% 100% 0% 0% 0% 0% Nash Equilibrium
- 53. Forty years ago, Israeli psychologists Daniel Kahneman and Amos Tversky wrote a series of breathtakingly original studies undoing our assumptions about the decision-making process. Their papers showed the ways in which the human mind erred, systematically, when forced to make judgments in uncertain situations. Their work created the field of behavioral economics, revolutionized Big Data studies, advanced evidence- based medicine, led to a new approach to government regulation, and made much of Michael Lewis’s own work possible. Kahneman and Tversky are more responsible than anybody for the powerful trend to mistrust human intuition and defer to algorithms.
- 54. • Human Irrationality • Heuristics • System 1 (fast) • System 2 (slow) • Availability Bias • Regression to the Mean • Overconfidence • Illusion of Validity
- 56. That’s how it’s always been done around here!
- 57. • Undesirable Outcomes • Pareto Inefficient • Nash Equilibrium • False Analytics • Human Irrationality • Cognitive Bias • Overconfidence Devops Bad Equilibrium Good Opportunities… - Discontinuity - Dislocation
- 59. • Make work visible • Manage WIP • Manage Flow • Create high trust • Embrace failure Devops Advanced Good Better
- 60. Really Hard Stuff Better Excellent • Psychological Safety • Blamelessness • Rethink SLA’s • Increase Headcount • Increase Buffers
- 61. You are either building a learning organization… or you will be losing to someone who is… Andrew Clay Shafer