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Oversepcialization is driving any company to it's knees. See how it happens, and how to avoid it.
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Coordination Chaos
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Ari Tikka 19.11.2013 ari.tikka@gosei.fi +358 400 308 304
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“Hey, We have business! And it is growing!”
“People find their roles by themselves.”
“The specialists are effective and irreplaceable. We need to optimize their individual performance.”
In the beginning
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“It starts to get messy. We need someone to look after things.” “Lets hire a coordination specialist - the project manager.”
Growing the natural way
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“The project managers really do their job.”“Obviously it is best to give responsibilities to the specialized people.”
Growth continues
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“Do You understand what is really going on?”“Blessed the are project managers. They get something out of this mess.”
The coordinators become the heroes
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“We are slow and expensive. Why are projects no more productive?”
“People Resources are either idling or overloaded.”
“The portfolio does not obey. Dependencies and maintenance dominate.”
But… too much to be coordinated
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SymptomsWaiting. Scatter. Handovers. Loss of knowledge. Hunting for resources. Bad quality. Quick fix. Distress. Cost management. Reorgs. Gaps between roles. Nonproductive feedback. Misleading measures. Unclarity. Competition between projects. Knowledge and power is always elsewhere. Bad atmosphere.
�7
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“We still need to have parallel projects to keep the over-specialized people working .”
“We still need to keep the specialists doing their own work so that we get something done.”
No change in thinking
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Last hope
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COSTVALUE
“We still have the customers. And the middle layer coordinates the value flow.”
“The development is too expensive and is difficult to manage.”
“But we can outsource the difficulty to an affordable provider, which we then can control through the agreement.
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“Let people work in teams and share workload, knowledge and leadership. Then the coordination cost becomes investment in learning.”
“Lets limit Work In Progress so that the value creating network does not congest. Actually the end-to-end throughput will improve.”
Or fundamental change in thinking
�10
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Flow vs resource efficiency Re
sour
ce e
ffici
ency
Flow efficiency�11
Impossible
www.gosei.fi Attribution-ShareAlike
Flow vs resource efficiency Re
sour
ce e
ffici
ency
Flow efficiency
Optimize learning and end-to-end Flow of value
�11
Impossible
www.gosei.fi Attribution-ShareAlike
Flow vs resource efficiency Re
sour
ce e
ffici
ency
Flow efficiency
Optimize learning and end-to-end Flow of value
Optimize cost andresource utilization
�11
Coor
dina
tion
Chao
s
Impossible
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Flow vs resource efficiency Resource efficiency
Optimal with simple tasks in stable environment
Specialization is locally economical, but makes the whole system fragile
Flow efficiency
Better for all knowledge work
Optimizes the whole
Reso
urce
effi
cien
cy
Flow efficiency
Optimize learning and end-to-end Flow of value
Optimize cost andresource utilization
�11
Coor
dina
tion
Chao
s
Impossible
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