”Carnation Condensed Milk, the milk from contented cows.” — Advertising slogan, Carnation Milk Company, 1907
… you have a Community of Trust and have a common Vision. The Scrum Team is an Autonomous Team. You are holding regular Sprint Retrospectives to increase velocity and other traditional measures of value and potential to generate value.
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In reflection and other self-improvement activities, there are generally many ideas for improvement. But you often don’t know in advance which improvement activities will produce great benefits, and which will not.
The pattern One Step at a Time recommends focusing on a single improvement, so that the effects of an improvement activity are clear. But there are many opportunities for improvement, and you need a way to work on the things that are most likely to have a significant benefit.
It is natural to come up with long lists of things are supposed to help improve velocity. Because there are so many, it’s possible that you are working on the wrong thing; the improvement selected will not actually improve velocity at all, and if it does, it is likely not the biggest or most important improvement.
People often feel disconnected to these long lists. So they will not be motivated to make them work.
So you need to work on the right improvement, and the team must feel some passion about the improvement.
People derive great satisfaction from doing their job well. In addition, they are often in a good position to understand what things can make them more effective, and what things are standing in their way. Associated with this, most people have a strong sense of responsibility toward their jobs, particularly if they are in an Autonomous Team.
Find out what one improvement will increase the happiness of the team the most, and implement that improvement in the next Sprint.
Typically, the team decides what its current happiness level is and then asks each team member to express what would increase their happiness the most. As a team, decide what one improvement will produce the greatest happiness improvement for the team as a whole.
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There are various ways of measuring the team’s happiness, but teams popularly use a simple subjective five-point scale. You don’t need to be fancy. However, there must be a large caution here. We find in :
It turns out that focusing on the happiness of the team indeed helps the team uncover issues standing in the way not only of happiness, but of effectiveness as well. The Happiness Metric results in team performance improvement because people feel more personally connected to and committed to the improvement, called engagement. It is widely believed that this is because people derive great satisfaction from doing their job well. However, the research shows that in fact the opposite is more often true. As stated above: "People derive great satisfaction from doing their job well."  discusses the oft-cited Gallup study that suggests a correlation between happiness and good performance, but that the causality is reversed from how we usually see it:
So happiness can be an indicator of moving towards Greatest Value, if the team is circumspect and honest with itself. But, by the reasoning of the Gallup study, happiness is more an enabler for future results than an indicator of process or product qualities of intrinsic value in the current work setting. Happiness is good for its own sake.
While happiness and engagement (which are closely linked) are important, the notion of passion in the work place drives even deeper. A study at Deloitte concluded that engagement (as measured by happiness) lead only to single spurts of improvement rather than sustained improvement:
If we look at the data often often offered as supporting the measure of happiness alone, we can see such a single spurt of improvement. The measures were gathered from a Scrum team that applied the Happiness Metric as described in the "Example" section, below. The chosen performance measure was Velocity. Here is a graph of velocity over time:
The study claims an overall increase of 1200%, more than half of which owed to a single quantum jump. Alternatively, one can view the velocity as having moved from the initial plateau of about 20 (up to Sprint 89) to a second plateau of about 130 (Sprint 140 to 212) and finally to a third plateau at about 200, which showed no major improvement thereafter for about 150 Sprints. The available data seem to support the conclusions of the Deloitte study. Sutherland defines "hyperproductivity" as realising a velocity increase of a factor of 4 or 5, and the graph evidences only one leap of that order of magnitude.
The Deloitte article quotes Roosevelt, who suggests that the path to achievement is not one of happiness:
It is likely that a team whose success is being measured by happiness feels a sense of control over its fate and a heightened sense of autonomy. Daniel Pink holds autonomy, mastery, and purpose to be the main drivers of job satisfaction . Autonomy support in workplaces has consistently been related to workplace engagement, productivity, organisational citizenship, and generally a fun list of pro-social behaviours. Edward L. Deci and Richard M. Ryan's research into self-determination theory  has shown this to be the case across time and cultures. So measuring (merely) happiness actually works — not because it is happiness being measured, but rather because autonomy is being exercised. Like the work of Deci and Ryan, it focuses on positive emotional and personal outcomes, rather than on quantitative measures that are often politically manipulated. Such measures are nonetheless obviously empirical.
Christiaan Verwijs offers team morale as an alternative to happiness and pointedly describes why it is better than happiness: it is team-oriented, less susceptible to mood, and not as biased as happiness. His analysis is explicitly in the context of agile teams. He draws his arguments from research in military psychology texts on team cohesion and effectiveness, which define team morale as follows:
This definition correlates closely to the reasoning from the Deloitte study. If teams are autonomous (as most modern militaries have been striving for during the past 40 years) then this approach supports the effectiveness of measuring happiness, to the degree that such measurement suggests that the team is able to navigate its own way to improvement.
The Happiness Metric can help prevent burnout. Burnout occurs when people work long hours or spend much mental energy over an extended period without any respite. They just get tired of the pace. Burnout can kill productivity through less work later (“Every hour of overtime is offset by an hour of undertime” — Tom DeMarco) or by people leaving to find a saner environment. If burnout is threatening, someone will likely request as their Happiness Metric to “stop the insane work hours.”
Some people (such as old-time managers) may fear that the team could “game” the system; deciding that their happiness could best be improved by taking every Friday off, for example. Of course this is possible. Like all aspects of team autonomy, one must trust the team to follow The Spirit of the Game. (And if you don’t trust the team, or if the team violates The Spirit of the Game, you have much bigger problems on your hands!)
Note that with all improvements, Happiness Metric improvements must be measurable (Testable Improvements) — you need to be able to tell whether the improvement is actually being done.
A team uses the Happiness Metric as a way to identify and prioritize process improvements. On a scale of 1-5 they ask (1) how do they feel about their role in the company and (2) how do they feel about the company. Then they share what would make them feel better and the team uses planning poker to estimate the value of things that would make team members feel better. The team estimated the value (as opposed to effort) of backlog items as well. The entire product backlog was estimated at 50 points of value.
“Better user stories” was the top priority improvement for the team. Removing this impediment was estimated at over 60 points of value. The Chief Product Owner wondered if removing that impediment might double velocity as the impediment value was higher than the entire product backlog value for the Sprint.
"Improve User Stories" was put into the Product Backlog and pulled into the next Sprint with a Definition of Done. This Definition of Done was implemented as acceptance tests that had metrics that were calculated at the next Sprint Review. They included:
While improving the quality of user stories is never ending, the Sprint Review demonstrated significant improvement on this backlog item as measured by the acceptance tests. Significant improvement resulted in an increase in velocity after several Sprints. After velocity had doubled this impediment fell off the top of the impediment list and another impediment took its place.
The first graph below is team happiness data for weekly Sprint 140-212 where the dark green line is happiness about the individual's work and the light green is happiness about the company. The second graph shows the velocity of the team. In Sprint 86 the team was doubled in size. By Sprint 89, “Improve User Stories” was put in the backlog of each Sprint. Within three Sprints velocity more than doubled. By Sprint 211 the team had tripled in size with output up 1200%, the first documented and sustainable non-software hyperproductive team. The low points on the velocity graph are where the company was on holiday. (See also the above graph in the pattern discussion."
 Jacob Shriar, "Why Measuring Employee Happiness Is A Huge Mistake." 2 August, 2015, https://www.officevibe.com/blog/measuring-employee-happiness-huge-mistake#fn-5054781-1, accessed 17 February 2017.
 John Hagel, John Seely Brown, Alok Ranjan, and Daniel Byler. "Passion at work: Cultivating worker passion as a cornerstone of talent development." Deloitte University Press, 7 October, 2014, https://dupress.deloitte.com/dup-us-en/topics/talent/worker-passion-employee-behavior.html.
 Theodore Roosevelt, excerpt from “Citizenship in a republic” (speech delivered at the Sorbonne, Paris, France, April 23, 1910.
 Christiaan Verwijs, "Agile Teams: Don't use happiness metrics, measure Team Morale." http://blog.agilistic.nl/agile-teams-dont-use-happiness-metrics-measure-team-morale/.
 Manning, F. J. Morale, Cohesion, and Esprit de Corps. In Gal, R. & Mangelsdorff, A. D. (Eds.), Handbook of Military Psychology (pp. 453-470). Chichester: John Wiley & Sons Ltd., 1991.
 Korn Ferry Institute, "The Happiness Metric." Briefings Magazine, 11 May 2012, http://www.kornferry.com/institute/423-the-happiness-metric, accessed 17 February 2017.
 Daniel Pink, Drive: The amazing truth about what motivates us, Riverhead Books, 2011.
 Edward L. Deci and Richard M. Ryan. Self-determination Theory: A Macrotheory Of Human Motivation, Development, And Health. Canadian Psychology/Psychologie Canadienne, 49(3), 2008, 182-185.
Picture from: Divs Sejpal, May 26 2007, Flickr.