The Next Paradigm Shift After Agile - Net Objectives...2.Shift from team to the value stream 3.Shift...

copyright (c) Net Objectives, Inc. All Rights Reserved.

27 June 2019

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Going beyond Lean and Agile

The Next Paradigm Shift After Agile

© Copyright Net Objectives, Inc. All Rights Reserved© Copyright Net Objectives, Inc. All Rights Reserved 3

Al ShallowayCEO, Founder

[email protected]

@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


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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1. Shift from Development to Business Agility



4. Shift to providing a customized starting point and roadmap


6. Other shifts


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


Welcome changing requirements, even late in development. Agile processes harness change for the customer's competitive advantage.



Deliver working software frequently, from a couple of weeks to a couple of months, with a preference to the shorter timescale.


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


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.




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


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


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.


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


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


Cash flow

Time


staged releases

Investmen

tPe

riod

Payb

ack

Period

First Release

Breakeven

Profit Period


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


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.


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








6. Other shifts

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Common Organizational Structure

inspired by Dan North, BSC/ADP 2012

Marketing Product Management

Development Support


The Nature of Our Work


Development Support

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We Manage Our People This Way

even though our value flows this way


Time‐to‐Market


Development Support

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Time‐to‐Market


Development Support


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


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?


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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6. Other shifts


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


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


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.








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


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


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


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


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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6. Other shifts


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


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.






4. Shift to providing a customized starting point and roadmap.


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

57© Copyright Net Objectives, Inc. All Rights Reserved 57

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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The Next Paradigm Shift After Agile - Net Objectives...2.Shift from team to the value stream 3.Shift...

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