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These are the slides from my keynote for Lean Agile Scotland 2013. In this session, I shared stories, workflows and practical thinking tools that illustrate how the act of deliberately capturing and evolving "learning streams" (as opposed to - or rather in addition to - the more conventional value streams) can lead to surprising consequences.
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written, illustrated and performed by
Claudio Perrone
@agilesensei agilesensei.com a3thinker.com
Beyond
Value
Streams
Experimental evolution in action
I’ve seen things most people wouldn’t believe…
Like the rise of A Learning organization, fueled by the enlightened self-interest of ITS people
I saw how Curiosity and courage can generate endless options
... And what it means to develop, and honor people for their ideas & contribution.
All those… moments... will be lost in time
like tears... in... rain
Today, Many of us face a different world…
effectiveness
% o
f or
gani
zati
ons
(*) Courtesy: Steve McConnell – After the Gold Rush & Bob Marshall (“Marshall Model of Organizational Effectiveness” www.fallingblossoms.com)
It’s a world where Invention and innovation are replaced by organizational conformity…
… Knowledge development IS annihilated by bureaucracy, fire-fighting, and command & control
Companies go through many reorganizations, only to stay the same
Organization chart Blame flow
Rule makers
Controllers
Enforcers
Victims Organization chart God
Losers
… You are a “chicken”. You shouldn’t even talk
The traditional agile approach towards management Hasn’t been particularly effective
Arguably, organizations can’t be “agile” if only the development teams are doing Agile
SMs
Typical “Agile” Enterprise
It’s a war we can’t possibly win…
Unless…
BEYOND VALUE STREAMS 1
And we are reducing that timeline by removing the non-value-added wastes. -‐-‐-‐ TaiichiOhno, Founder of TPS
“ All we are doing is looking at the timeline from the moment the customer gives us an order to the point we can collect the cash.
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2.5d
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2d
1h
2h
1h Value Adding Time (VAT)
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Period calculated: from xx to yy (high season)
F: 200/month
Average: 10/day
Proc. Lead Time: 71.75h
Total Cycle Time: 9.25h
Proc. Efficiency 12.9%
Push arrow
inbox
20jobs 10jobs 5jobs 2jobs due date FIFO $ value
Current State Value-Stream Map
Acme Reinsurance
Date: xxx
Author: Claudio Perrone
Pull arrow
C/T too long
Reduce batch sizes
Train on Kanban pulling
Improve system
validation
Clarify classes of
service
Setup Kanban board
Kaizen Customers Lean destroyed the myth that splitting work
in big batches improves the economies of scale.
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0.25h
2d
4h
1.5d
2h
1d
1h
2h
1h Value Adding Time (VAT)
Non VAT
Period calculated: from xx to yy (high season)
F: 200/month
Average: 10/day
Proc. Lead Time: 46.25h
Total Cycle Time: 8.25h
Proc. Efficiency 17.8%
MAX 5 jobs
Future State Value-Stream Map
Acme Reinsurance
Date: xxx
Author: Claudio Perrone
Pull arrow
Customers
MAX 4 jobs
MAX 2jobs
MAX 2jobs
C/T too long
Reduce batch sizes
Train on Kanban pulling
Improve system
validation
Clarify classes of
service
Setup Kanban board
… And provided many “tools” to obliterate the competition
“but that’s only part of the story…”
Why do you allow your competitors to copy all your tools?
What they need to see… is not visible
What the hell is He talking about?
Does this look familiar?
Do you remember how the story ends?
---W. Edwards Deming
“ 95% of variation in worker’s performance is governed by the systems
W. Edwards deming believed that…
“Improve the world by improving its systems.”
…Which maybe explains why the purposeof the Lean systems society is to…
http://leansystemssociety.org/
Lean Systems Society
“Excellence in Managing Complexity”
---W. Edwards Deming “ We should work on our processes, not the outcome of our processes.
Perhaps…
“At Toyota, improving and managing are one and the same”
Normal daily management
+ improvement
Traditional thinking:
Normal daily management
= Process improvement
Toyota’s thinking:
“ -- Claudio Perrone
Some people question targets. Question arbitrary targets instead. "How are we going to change our systems to achieve it?” That’s an excellent question.
In Lean, Managers have a purpose...
Value Stream
…and (at least) a method.
“ (*) replace with “create customer value” or “reach results”, if you prefer
Lean is a business strategy to make money* THROUGH the development of people
I believe
“ -- Claudio Perrone
It’s not what you do but rather what you learn by doing it that matters.
So, maybe...
“learning to see” involves bringing to the surface what we learn
Value Stream
Learning Stream(s)
An A3 report, for example, “surfaces” a learning stream around a problem
Kaizen memo:
Before improvement: Action taken:
Effect:
Submitted by: Date:
We didn’t trace the small, continuous improvements to our work
Created “Kaizen memos” to post on an “implemented ideas” board
Team members trace and celebrate every implemented idea, even the smallest!
Claudio Perrone
Kaizen Memos
A set of kaizen memos can represent another Learning stream…
…Which can also be “SURFACED” on a kaizen board
What other Learning streams
can we seek to surface?
How about stories?
How about change efforts?
How do you introduce and surface change in
your organization?
More specifically…
EVOLVE EXPERIMENTALLY (A Lean Change story)
2
“Once upon a time, in a ‘fortune 50’ land, A prince lived in a much troubled castle”
Scrum is AWESOME!
“after reading a great book, he thought”
Visibility Adaptability
Business Value Risk
Agile Development Traditional Development
Fascinated by the benefits that a mature agile organization can bring…
I want you to turn 33+ teams using scrum.
Do it. Now.
… he said:
Scrum may be a great solution, but…
…What’s the problem?
I went to the “gemba”, the place were the value is actually created. After all…
--- John le Carre “ ... A desk is a dangerous place from which to view the world.
Insights
Options
MVC
Prepare
Introduce
Review
Lean Change Cycle
After some fact finding, I shared my observations and insights…
Copies of my preliminary A3 were lying on the table…
http://a3thinker.com/deck
after 1½ years of waterfall Development, The company was experiencing a seemingly endless integration hell
many People where blaming each other for what was happening
Insights
Options
MVC
Prepare
Introduce
Review
Lean Change Cycle
What could we do?
The ship was sinking fast… So, “Do nothing” was not an option
…scrum was not a viable option
with that urgency, in that context, And with that complexity…
In the end, we agreed to: - aim at a pre-release for a major customer - focus on flow optimization
Insights
Options
MVC
Prepare
Introduce
Review
Lean Change Cycle
change was certainly going to be disruptive (and not so “minimal”)
Insights
Options
MVC
Prepare
Introduce
Review
Lean Change Cycle
…But desperate times called for desperate measures
R&D Teams
“we articulated our Change strategy”
Change Participants
Communication Urgency Target State
Actions
Vision
Committments Wins
Success Criteria
Testing Dep
Mgmt
If we don’t release soon, the ship will sink!
Stable pre-release deployed to Major Client by xx
Cross-funct. teams
Kanban
Pre-Release to Major Client by Focus on JIT fixes
Cadenced meetups
Released by xx
… morale
Baseline for performance
QA ok Major client happy
Review MMFs
Keep Client Keep job
https://leanpub.com/leanchangemethod
we also negotiated and challenged certain (self-serving) policies
Insights
Options
MVC
Prepare
Introduce
Review
Lean Change Cycle
We introduced lean techniques very pragmatically
We moved hundreds of people in just 3 days, to reduce many functional barriers
Programming Team
Programming Team
Testing Team
Documentation Team
Cross-functional Team
Cross-functional Team
Functional Team
Ordered Backlog
Development Pre- Testing CD
Ready 6 3
Rq. Fixed
Done
Expedite 1
Integration
Pre- Tested
Smoke Test Done
Integration Team (Complex configuration)
teams adopted a kanban bord, each fine-tuned according to their specific workflow
DOD DOD DOD DOR
Insights
Options
MVC
Prepare
Introduce
Review
Lean Change Cycle
We reviewed and validated our progress and assumptions regularly
focus on flow optimization, Shared sense of Urgency and executive sponsorship enabled us to deliver fast, against all odds
What would your first lean change
implementation look like?
Start small! These days, When I first engage with any team…
…I often start with a retrospective to collect initial insights (and to obtain permission to help)…
I USE THAT DATA TO feed a change board And SYSTEMATICALLY DEFINE AND negotiate explicit change experiments
Observations & insights Options
Possible Experiments This Week Week + 1 Week + 2 Week + 3 Archive
That was a (powerful) learning stream!
BUT… HOW DO WE KNOW THAT
WE ARE actually CREATING VALUE?
“… complexity and uncertainty are natural to social systems and knowledge work.”
It’s hard. We accept that…
http://leansystemssociety.org/
“ --Jeff Patton
If you get good at delivering shit faster, you just get a lot of shit.
Are we doomed?
VALIDATED LEARNING
(A lean startup story) 3
Some time ago, I decided to write a book on A3 thinking
But I didn’t want to write a book that nobody reads…
So, I Documented my initial assumptions on a Lean canvas
Customer Segments
Early adopters
Unfair Advantage
Channels
Revenue streams Cost structure
Unique Value Proposition
Solution
Key metrics
Top 3 Problems
Existing alternatives
… and then, I went “out of the building”, to validate those assumptions
Build
Measure
Learn idea
Product data
(Turn ideas into product)
(How customers respond)
(whether to pivot or persevere)
(often a series of MVPs)
I shaped my thinking around the the build/measure/learn loop through an experiment board
…Which, today, consists of observations/insights, open questions, and ideas…
targets, analysis and hypotheses…
Experiments (identify, define metric, build)
Validation (qualitative & quantitative)
…& knowledge base.
“ -- Claudio Perrone
I execute tasks To develop features That are part of experiments That I run to validate hypotheses That I formulate thanks to observations about the world that surrounds us.
In other words…
My mindset shifted: “From concept to cash” to “From question to knowledge base”
Ironically, I never wrote that book
people needed something to help them when and where it mattered most
So I tested an idea with a low fidelity MVP
… captured enthusiastic earlyvangelists with a glimpse of what would come next…
And released a family of thinking tools…
www.a3thinker.com
to change the world. one problem at a time.
www.a3thinker.com/deck
Final Thoughts
“ -- Claudio Perrone
It’s not what you do but rather what you learn by doing it that matters.
“ -- Claudio Perrone
It’s not what you do but rather what you learn by doing it that matters. But then...
“ -- Claudio Perrone
It’s not what you do but rather what you learn by doing it that matters. But then... it’s not what you learn, but rather what you do with it that matters.
Claudio Perrone
claudio@agilesensei.com www.agilesensei.com
www.twi@er.com/agilesensei www.a3thinker.com
Thank You!
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