Serverless Craic Ep 29 What is Long Term Value - Phase 4 of Flywheel?

Send us Fan MailWhat is Long Term Value?We've spent the last couple of episodes talking about the value flywheel effect and the value flywheel itself. There are four phases: Clarity of Purpose, Challenge, Next Best Action and Long Term Value. We've been talking through each of these phases in detail. And today, we're going to talk about phase four, which is Long Term Value.So the simple question is, what is long term value? Long term value means continuing to deliver value for the medium to long term, because you've invested in a sustainable way of working. You have invested in well architected and paid down your technical debt to get long term value. And you're not going to hit a wall in the short term, because you've not built in quality or architected appropriately or built a sustainable solution. If you don't invest in long term value and the well architected framework, you'll hit the wall. You might go fast for a quarter or two, or a sprint or two. But sooner or later, it's going to catch up to you. You may be going fast and delivering value, but you're not doing it on a sustainable way. You're not paying down those debts. And you're not building things that are resilient, scalable, performant and cost effective.What happens if we don't do it? You see teams in a false economy where they get their first or second build done quickly. But then things start going wrong. And you build up technical debt very quickly. Things start to go wrong. You end up firefighting. And it really slows down. It's the perfect velocity thing. You start off quite fast. But it starts to slow down rapidly as things start to creek.Is there anything else you can think of that happens if you don't think about this? Your business, execs and key stakeholders start to wonder why am I not getting value out of meetings anymore? Where's the next differentiating capability? And where's my next feature? Or my next capability that can differentiate us in the marketplace? I've got the same teams and they were good last month. Why are they not delivering this month. Or they were good last year? Why are they not delivering this year. You'll have a lot of noise from the execs wondering why is it not working anymore?The problem becomes the dreaded rewrite a couple of years in. And realising that this big ball of mud just needs somebody to take a sledgehammer to it. You turn around and talk to your stakeholders because you are going to want to do next generation version of this. It's going to be brilliant. With all of the same functionality. But it'll be better. And the response is: 'why would I pay you to build it again? You built this five years ago, why are we building it again?'. That's a very difficult conversation. And the real answer is we didn't bother doing architecture, so we have to build it again. That's not a good place to be.A team that's leveraging and operating the flywheel will see their software appreciating in value over time. As opposed to depreciate. If you're not thinking about long term value your system is always depreciating. You are going to have to invest in patching, upgrading and dealing with issues. The terms we use are 'code is a liability' and 'the system is the asset'. You need your teams focused on the system delivering the value. And removing as many code liabilities as they can.And this phase of the value flywheel is about minimising liabilities and offloading more responsibility to the cloud provider. Or how can we leverage managed services and SAS providers. To remove custom build and evolve into a commodity. So all of those things are at play in this phase of the value flywheel.Serverless Craic from The Serverless Edgetheserverlessedge.com@ServerlessEdgeServerless CrAIc from The Serverless EdgeCheck out our book The Value Flywheel Effect Follow us on X @ServerlessEdgeFollow us on LinkedIn Subscribe on YouTube