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Going beyond Lean and Agile
The Next Paradigm Shift After Agile
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Al ShallowayCEO, Founder
alshall@NetObjectives.com
@AlShalloway
Co‐founder of Lean‐Systems SocietyCo‐founder Lean‐Kanban University Contributor to SAFe
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Lean ManagementProject Management
technicaltechnical
ASSESSMENTSCONSULTINGTRAININGCOACHING
Lean for ExecutivesProduct Portfolio ManagementBusiness Product OwnerProduct Owner
Leanban / Kanban / Scrum ATDD / TDD / Design Patterns
FLEX Trainer TrainingFLEX for CompaniesAgile ArchitectureProduct Manager/Product Owner
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We cannot solve our problems with the same thinking we used when we created them.”
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Agenda – The Shifts Needed
1. Shift from development to Business Agility
2. Shift from team to the value stream
3. Shift from people to systems thinking and Lean Management
4. Shift to providing a customized starting point and roadmap.
5. Shift from beginning with a good attitude to changing culture
6. Other shifts
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Agenda – The Shifts Needed
1. Shift from Development to Business Agility
2. Shift from team to the value stream
3. Shift from people to systems thinking and Lean Management
4. Shift to providing a customized starting point and roadmap
5. Shift from beginning with a good attitude to changing culture
6. Other shifts
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Agile Manifesto PrinciplesPrinciple Business
Management
Developers / Software / Project
Customers
Our highest priority is to satisfy the customer through early and continuous delivery of valuable software
Explicitly Mentioned
Explicitly Mentioned
Welcome changing requirements, even late in development. Agile processes harness change for the customer's competitive advantage.
Explicitly Mentioned
Explicitly Mentioned
Deliver working software frequently, from a couple of weeks to a couple of months, with a preference to the shorter timescale.
Explicitly Mentioned
Business people and developers must work together daily throughout the projectExplicitly Mentioned
Explicitly Mentioned twice
Build projects around motivated individuals. Give them the environment and support they need, and trust them to get the job done.
Mentioned 4 times
The most efficient and effective method of conveying information to and within a development team is face-to-face conversation
Explicitly Mentioned
Working software is the primary measure of progress.Explicitly Mentioned
Agile processes promote sustainable development. The sponsors, developers, and users should be able to maintain a constant pace indefinitely.
Explicitly Mentioned
Explicitly Mentioned
Explicitly Mentioned
Continuous attention to technical excellence and good design enhances agilityExplicitly Mentioned
Simplicity--the art of maximizing the amount of work not done--is essential.
The best architectures, requirements, and designs emerge from self-organizing teams. Mentioned 3 times
At regular intervals, the team reflects on how to become more effective, then tunes and adjusts its behavior accordingly.
Mentioned
Total Times Mentioned 2 0 17 3
Which Area / Role Is Referred to
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What is Agile?What is Business Agility?
Scrum
Disciplined Agile Delivery
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Agilea set of values and principles
building value for the businessthat focuses on development teams iteratively
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Business Agilityfocuses on value realized by having thebusiness identify, prioritize and sequencethe work to be done and allocate it appropriately to the development teams
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DEFINITION
The realization of the highest business value in a shorter amount of time, predictably, sustainably, and with high quality.
By working in small delivery increments we continuously adjust to what is needed – enabling change to direction at low cost.
Goal and Benefit of Business Agility
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VALUEmust be defined by the business stakeholders and is unique to the business.
This definition is the basis for business initiatives.
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The Minimum Viable ProductGeared towards startups.
First time a product/service is released.
Usually built by a small team that can pivot.
What do you do when:• You are an established company?• It is an enhancement to an existing product/service?• The teams required to build it are not aligned?
Mark Denne and Jane Cleland‐Huang Software by Numbers
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First Release
InvestmentPeriod
PaybackPeriod
ProfitPeriod
Breakeven
Cash flow
Time
economics of responsiveness
Mark Denne and Jane Cleland‐Huang Software by Numbers
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Investmen
tPe
riod
Profit Period
Payb
ack
Period
Cash flow
Time
Release 1 Net Return
staged releases
First Release
Breakeven
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SecondRelease
Release 2 Net Return
Cash flow
Time
Release 1 Net Return
staged releases
Investmen
tPe
riod
Payb
ack
Period
First Release
Breakeven
Profit Period
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Investment
Total Return
Cash flow
Time
staged releases
Investmen
tPe
riod
Payb
ack
Period
First Release
Breakeven
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Cash flow
BreakevenSingleRelease
First Release
Time
Staged Releases
Requires a focus on sustainability of realizing value by attending to architectural roadmap of product line
increased profit
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DEFINITION
The minimum amount of business value that can be built, deployed and consumed that makes sense from a business perspective
It contains all the pieces required for realization of value
Minimum Business Increment (MBI)
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An MBI is not a reason to deliver less.
It is a reason to deliver sooner.
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AgilityBusiness Value Increments not Development Cycles
is about
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MVPs and MBIs – not the same
MBIMVP EnhancementNew product
Start with initiative and break down into small chunks
Start small MVP MBI
Light marketing and support
Existing clients to market and supportMVP MBI
MVP
MBI
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Agenda – The Shifts Needed
1. Shift from Development to Business Agility
2. Shift from team to the value stream
3. Shift from people to systems thinking and Lean Management
4. Shift to providing a customized starting point and roadmap
5. Shift from beginning with a good attitude to changing culture
6. Other shifts
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Common Organizational Structure
inspired by Dan North, BSC/ADP 2012
Marketing Product Management
Development Support
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The Nature of Our Work
Marketing Product Management
Development Support
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We Manage Our People This Way
even though our value flows this way
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Time‐to‐Market
Marketing Product Management
Development Support
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Time‐to‐Market
Marketing Product Management
Development Support
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how often does work wait?
Adding Value
Waiting
Adding Value Adding Value
Adding Value
Adding Value Adding Value
What percent of the time is our work moving forward?
How would you know?
No one is managing this in most companies.
Waiting
How much of the time is it waiting for something else to be done?
Waiting
Adding Value
Adding Value
Adding Value
Adding Value
Waiting
Marketing Product Management
Development Support
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QUESTION
Between getting requirements and using them?Between writing a bug and it being detected?Between two groups getting out of sync?Just waiting for someone?
What happens when adding value is delayed?
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If you only quantify one thing, quantify the Cost of Delay.
Don Reinertsen 2009, Principles of Product Development Flow
Cost of delay is how much does a delay cost you in dollars (or services that could have been rendered if you are a not‐for profit). For example, if a product will return $200,000 per month, the cost of a four month delay is $800,000.
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Agenda – The Shifts Needed
1. Shift from Development to Business Agility
2. Shift from team to the value stream
3. Shift from people to systems thinking and Lean Management
4. Shift to providing a customized starting point and roadmap
5. Shift from beginning with a good attitude to changing culture
6. Other shifts
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Which part of the airplane is responsible for FLIGHT?
Reductionist thinking does not work with complex systems
Optimize the whole; don’t optimize locally!
http://www.youtube.com/watch?feature=player_detailpage&v=OqEeIG8aPPk
“What if Russ Ackoff gave a TED talk?”
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A bad system will beat a good person every time.
People are already doing their best, the problems are with the system.
Edwards Deming
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We trust the people, we don’t trust our system.
Lean respects people by focusing on the system – which must be managed.
Edwards Deming paraphrased for the Agile world
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A system must be managed. It will not manage itself. Left to themselves, components become selfish, competitive, independent profit centers, and thus destroy the system … The secret is cooperation between components toward the aim of the organization.
W. Edwards Deming
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Curling sweepers as a metaphor for management
Are any of these people less committed than the others?
Who are the managers?
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Towards Middle Up Down Management:Accelerating Information CreationIkujiro Nonaka, 1988
Business Stakeholders
Create environment to facilitate
manifestation of vision
Work with teams to ensure the environment supports them
Middle Management
The New New Product Development Game.Hirotaka Takeuchi and Ikujiro Nonaka, 1986.
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Agenda – The Shifts Needed
1. Shift from Development to Business Agility
2. Shift from team to the value stream
3. Shift from people to systems thinking and Lean Management
4. Shift to providing a customized starting point and roadmap
5. Shift from beginning with a good attitude to changing culture
6. Other shifts
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Dilemma Need a well‐defined starting point.
But a pre‐set starting point is not likely to be well suited to the organization.
Starting with a framework means there is not enough time to teach key practices up front.
Solution: Create a starting point for your organization based on its needs. Focus on practices needed with as little framework as possible
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Simple start but not built for expansion
Simple start, built for expansion
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Dilemma Need a method to make predictions
But we’re in a complex system so accurate predictions are not possible
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Complexity does not mean we can’t make predictions
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F L E X
refine
realize
learn
adjust
Business backlog
Increment
RELEASE
Release
PRODUCT MANAGEMENT
& INTAKE
Initiatives
refine
PORTFOLIO MANAGEMENT
Product backlog (MBIs)
PLANNING
DEV
Program Increment / Flow backlog
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F L E X
Which of these (sometimes others) are causing the most damage?
Which ones will set up others for success?
lack of coordination between teams
CHALLENGE
testing lags programming
CHALLENGE
chunks of work too big
CHALLENGE
unclear requirements
CHALLENGE
poor dev intake process
CHALLENGE
poor discovery intake process
CHALLENGE
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Dilemma Need a method to make predictions
But we’re in a complex system so accurate predictions are not possible
Solution: Recognize patterns exist, attend to relationships in the system and check on what happens
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Dilemma Want to avoid reinventing the wheel
But there are so many options we want to avoid making things complicated
Solution: Organize options in pattern groups which contains patterns, or ways to solve problems based on particular context. This makes for easy navigation.
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Agenda – The Shifts Needed
1. Shift from Development to Business Agility
2. Shift from team to the value stream
3. Shift from people to systems thinking and Lean Management
4. Shift to providing a customized starting point and roadmap
5. Shift from beginning with a good attitude to changing culture
6. Other shifts
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Culture eats strategy for breakfast.
-Peter Drucker
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What if you don’t have an Agile ‘culture’?
Is there anything that we can do about it?
You get more trust by working together than you do by talking about why you need it.
It is easier to work yourself into a new way of thinking than to think yourself into a new way of working
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Culture is important, but changing it directly is not possible. Culture is no more likely a target than the air we breathe. It is not something to target for change. Culture is an idea arising from experience.
That is, our idea of culture of a place or organization is a result of what we experience there. In this way a company’s culture is a result of how people collaborate with each other.
Paraphrased from Creating a Lean CultureDavid Mann
Culture is critical, and to change it, you have tochange your method of collaboration.
Focus on agreements, behaviors, specific expectations, tools and routine practices.
Lean systems make this easier because they emphasize explicitly defined agreements and use visual controls to make the work and agreements visible.
change the
way we work together
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Resistance is not to change.
In practice, all systems do insist on exercising their own creativity. They never accept imposed solutions, pre‐determined designs, or well‐articulated plans that have been generated somewhere else.
Too often, we interpret their refusal as resistance. We say that people innately resist change.
A Simpler Way. Margaret Wheatley & Myron Kellner‐Rogers
But the resistance we experience from others is not to change itself. It is to the particular process of change that believes in imposition rather than creation. It is the resistance of a living system to being treated as a non‐living thing.
It is an assertion of the system’s right to create. It is life insisting on its primary responsibility to create itself.
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Agenda – The Shifts Needed
1. Shift from Development to Business Agility
2. Shift from team to the value stream
3. Shift from people to systems thinking and Lean Management
4. Shift to providing a customized starting point and roadmap.
5. Shift from beginning with a good attitude to changing culture
6. Other Shifts
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Other shiftsFrom a framework to the work
From increments to flow (time‐boxing to removing delays)
From values and practices to principles and learning
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The main points From development to business agility
From the team to the value stream
Focus on people to focus on the system
From managing people to managing the system
Simple starting points to continuous learning
Attitude to changing culture
From framework to work
From time‐boxing to removing delays
From value and practices to principles and learning
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Lean ManagementProject Management
technicaltechnical
ASSESSMENTSCONSULTINGTRAININGCOACHING
Lean for ExecutivesProduct Portfolio ManagementBusiness Product OwnerProduct Owner
Leanban / Kanban / Scrum ATDD / TDD / Design Patterns
FLEX Trainer TrainingFLEX for CompaniesAgile ArchitectureProduct Manager/Product Owner
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