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© Copyright Net Objectives, Inc. All Rights Reserved 3
Marc Danziger
marc.danziger@NetObjectives.com
CDO, Enterprise Consultant
Chief Delivery Officer Marc Danziger is the Chief Delivery Officer of Net Objectives. With over 20 years of experience, Marc is a leading practitioner in project and program management, project rescue, product portfolio management, SAFe, Scrum and business architecture. He helps companies transform to Lean and Agile enterprises.
He has a Masters in Planning Theory from U.C. Berkeley where he studied with the originators of the concepts of Wicked Problems and Design Patterns.
© Copyright Net Objectives, Inc. All Rights Reserved 4
Lean ManagementProject Management
Kanban / Scrum ATDD / TDD / Design Patterns
technical
ASSESSMENTS
CONSULTING
TRAINING
COACHING
Lean for ExecutivesProduct Portfolio ManagementBusiness Product OwnerProduct Owner
Onsite SPC Leading SAFe
SAFe ArchitecturePM/PO
© Copyright Net Objectives, Inc. All Rights Reserved 5
Agile is about practices
s
*Sprint = Iteration
• PM• POs • POs
• Users
• POs• Users• BAs
• PM• POs
• PM
© Copyright Net Objectives, Inc. All Rights Reserved 6
Agility is about overall control and responsiveness
© Copyright Net Objectives, Inc. All Rights Reserved 7
Agile | Lean Principles
• Take a systems view• Limit WIP• Manage batch size• Build short feedback loops• Create / support persistent cross functional teams• Decentralize decision making• Develop talent
© Copyright Net Objectives, Inc. All Rights Reserved 8
BUSINESS AGILITY
BUSINESS INCREMENTS
PRIORITY AND SEQUENCE
RELEASE PLANNING
Business
© Copyright Net Objectives, Inc. All Rights Reserved 9
MANAGEMENT AGILITY
CONTINUOUS FEED OF BUSINESS VALUE
MANAGING THE FLOW OF WORK
WIP MANAGEMENT
Management
© Copyright Net Objectives, Inc. All Rights Reserved 10
ADAPTIVE MANAGEMENTIDENTIFYING IMPEDIMENTS AND DELAY
CONTINUOUS ORGINIZATIONAL IMPROVEMENT
WORKING ON AS WELL AS IN
Management
© Copyright Net Objectives, Inc. All Rights Reserved 11
TEAM AGILITY
SELF ORGANIZATION
SPEED OF PRODUCING QUALITY
BUSINESS INCREMENTS
Team
© Copyright Net Objectives, Inc. All Rights Reserved 12
TECHNICAL AGILITY
BEST ENGINEERING PRACTICES
TDD, DESIGN PATTERNS, EMERGENT
DESIGN, CONTINUOUS INTEGRATION, REFACTORING
CONTINUOUS IMPROVEMENT
Team
© Copyright Net Objectives, Inc. All Rights Reserved 13
ENTERPRISE AGILITY
FREQUENT INCREMENTAL
DELIVERY
TIGHT COUPLING OF STRATEGY AND
DELIVERY
RESPONSIVE TO CHANGE
EnterpriseAgility
© Copyright Net Objectives, Inc. All Rights Reserved 14
Lean is based on the idea that delay is the root problem.
…let’s discuss
© Copyright Net Objectives, Inc. All Rights Reserved 15
1. Identify the actions taken in the value stream
ApproveRequest Reqts Sign Off
Review Deploy
Analysis
Design Code Test
© Copyright Net Objectives, Inc. All Rights Reserved 16
120 hrs` 280 hrs 240 hrs 8 hrs2 hrs
1. Identify the actions taken in the value stream2. What was the real time from start to finish of the action?
ApproveRequest Reqts Sign Off
Review Deploy
Analysis
Design Code Test
0.5 hrs 160 hrs8 hrs 8 hrs 100 hrs
© Copyright Net Objectives, Inc. All Rights Reserved 17
120 hrs` 280 hrs 240 hrs 8 hrs2 hrs
1. Identify the actions taken in the value stream2. What was the real time from start to finish of the action?3. What was the average time working on this vs working on other things?
Approve
.1 / 7.9 hrs
Request
0.5 / 0.0 hr
Reqts
60 / 100 hrs
Sign Off
1 / 7 hrs
Review
2 / 0 hrs
Deploy
3 / 5 hrs
Analysis
40 / 600 hrs
Design
40 / 80 hrs
Code
80 / 200 hrs
Test
40 / 200 hrs
0.5 hrs 160 hrs8 hrs 8 hrs 100 hrs
© Copyright Net Objectives, Inc. All Rights Reserved 18
80 hrs320 hrs 80 hrs 320 hrs
80 hrs
160 hrs 80 hrs 80 hrs 80 hrs
1. Identify the actions taken in the value stream2. What was the real time from start to finish of the action?3. What was the average time working on this vs working on other things?4. Identify time between actions
120 hrs` 280 hrs 240 hrs 8 hrs2 hrs
Approve
.1 / 7.9 hrs
Request
0.5 / 0.0 hr
Reqts
60 / 100 hrs
Sign Off
1 / 7 hrs
Review
2 / 0 hrs
Deploy
3 / 5 hrs
Analysis
40 / 600 hrs
Design
40 / 80 hrs
Code
80 / 200 hrs
Test
40 / 200 hrs
0.5 hrs 160 hrs8 hrs 8 hrs 100 hrs
© Copyright Net Objectives, Inc. All Rights Reserved 19
80 hrs320 hrs 80 hrs 320 hrs
80 hrs
160 hrs 80 hrs 80 hrs 80 hrs
120 hrs` 280 hrs 240 hrs 8 hrs2 hrs
1. Identify the actions taken in the value stream2. What was the real time from start to finish of the action?3. What was the average time working on this vs working on other things?4. Identify time between actions5. Identify any loop backs required
65% defectiveRepeat 3X
20% rejectedRepeat 1X
Approve
.1 / 7.9 hrs
Request
0.5 / 0.0 hr
Reqts
60 / 100 hrs
Sign Off
1 / 7 hrs
Review
2 / 0 hrs
Deploy
3 / 5 hrs
Analysis
40 / 600 hrs
Design
40 / 80 hrs
Code
80 / 200 hrs
Test
40 / 200 hrs
0.5 hrs 160 hrs8 hrs 8 hrs 100 hrs
© Copyright Net Objectives, Inc. All Rights Reserved 20
1. Identify the actions taken in the value stream2. What was the real time from start to finish of the action?3. What was the average time working on this vs working on other things?4. Identify time between actions5. Identify any loop backs required6. Calculate % time worked
80 hrs320 hrs 80 hrs 320 hrs
80 hrs
160 hrs 80 hrs 80 hrs 80 hrs
0.5 hrs 160 hrs8 hrs 8 hrs
120 hrs` 280 hrs 240 hrs
100 hrs
8 hrs2 hrs
65% defectiveRepeat 3X
20% rejectedRepeat 1X
Avg Time Worked Total Cycle Time
% time worked = 14.9%509 hrs
3433 hrs
509 hrs
3433 hrs
Avg Time Worked Total Cycle Time
Approve
.1 / 7.9 hrs
Request
0.5 / 0.0 hr
Reqts
60 / 100 hrs
Sign Off
1 / 7 hrs
Review
2 / 0 hrs
Deploy
3 / 5 hrs
Analysis
40 / 600 hrs
Design
40 / 80 hrs
Code
80 / 200 hrs
Test
40 / 200 hrs
Approve.1 / 7.9 hrs
Request0.5 / 0.0 hrs
Reqts60 / 100 hrs
Sign Off1 / 7 hrs
Review 2 / 0 hrs
Deploy3 / 5 hrs
Analysis40 / 60 hrs
Design40 / 80 hrs
Code80 / 200 hrs
Test40 / 200 hrs
0.5 hrs 160 hrs8 hrs 8 hrs
120 hrs 280 hrs 240 hrs
100 hrs
8 hrs2 hrs
320 hrs 80 hrs 320 hrs 80 hrs
160 hrs 80 hrs 80 hrs
65% defectiveRepeat 3X
20% rejectedRepeat 1X
80 hrs
80 hrs
© Copyright Net Objectives, Inc. All Rights Reserved 21
80 hrs320 hrs 80 hrs 320 hrs
80 hrs
160 hrs 80 hrs 80 hrs 80 hrs
120 hrs` 280 hrs 240 hrs 8 hrs2 hrs
Approve
0.1 / 7.9 hrs
Request
0.5 / 0.0 hr
Reqts
60 / 100 hrs
Sign Off
1 / 7 hrs
Review
2 / 0 hrs
Deploy
3 / 5 hrs
Analysis
40 / 60 hrs
Design
40 / 80 hrs
Code
80 / 200 hrs
Test
40 /200 hrs
65% defectiveRepeat 3X
20% rejectedRepeat 1X
320 hrs 80 hrs 320 hrs 80 hrs
160 hrs 80 hrs 80 hrs
65% defectiveRepeat 3X
20% rejectedRepeat 1X
80 hrs
80 hrs
Eliminating delays between
what you do
Getting better at what you do
Which gives a better return?
0.5 hrs 8 hrs 8 hrs 100 hrs160 hrs
© Copyright Net Objectives, Inc. All Rights Reserved 22
Delay has three non-obvious causes.(along with a bunch of obvious ones)
• Batch Size
• Work In Progress
• Multitasking
© Copyright Net Objectives, Inc. All Rights Reserved 24
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.1 60 1 40 40 2 80 40 3320 8 80 160 320 8 80 100 80 120 160 2 80 280 80 240 80 8
-------------------------------------- Development Team ---------------------------------------- Product Managers --
map value stream to kanban board
© Copyright Net Objectives, Inc. All Rights Reserved 25
What’s multitasking?
…really?
We all live it.
Because we focus on utilization / busyness, more than getting stuff done.
© Copyright Net Objectives, Inc. All Rights Reserved 26
Costs of Interrupting a Team
What we think will happen What does happen
Current state
Rework
Overhead
Planned Work
Rework
Overhead
Planned Work
New Features
Rework
Overhead
Planned Work
New Features
Extra work
The cost of interrupting a team is not just the delay of other work, it is the additional work it creates that would otherwise not have to be done.
© Copyright Net Objectives, Inc. All Rights Reserved 28
here’s a spot!
…and another!
Operating a product development process near full utilization is an economic disaster.
Don Reinertsen
© Copyright Net Objectives, Inc. All Rights Reserved 29
QUESTION
What is our goal?That is, what must we make sure we are doing in order to be successful?
…FINISHING. Nothing else matters.
© Copyright Net Objectives, Inc. All Rights Reserved 30
Source: Standish GroupStudy of 2000 projects at 1000 companies
Usage of Features and Functions in Typical System
WASTEand the
DELAY OF VALUE
© Copyright Net Objectives, Inc. All Rights Reserved 31
Inp
ut
Priority
BUSINESS DISCOVERY BUSINESS DELIVERY
Planning Staging Ready to Pull
c h u n k i n g s l i c i n g
DecisionHigh enough business value?
DecisionTechnically feasible, sufficient ROI?
Iter
atio
n
0 IterativeDevelopment
IncrementalDeployment
Support & Feedback
DecisionReady to release?
DecisionIs there capacity?
Define acceptance criteria and feature sequence
Build iteratively, deploy incrementally
Review business value , approve, and prioritize
Define value increments and sequence
Define product backlog
The Value Stream
Doing“Left of Do”
© Copyright Net Objectives, Inc. All Rights Reserved 32
1 2 3
but incrementing calls for a fully formed idea
courtesy Jeff Patton
“incrementing” builds a bit at a time...
© Copyright Net Objectives, Inc. All Rights Reserved 33
1 2 3
to allow you to move from vague idea to realization
courtesy Jeff Patton
“iterating” builds a rough version, validates it, then slowly builds up quality…
© Copyright Net Objectives, Inc. All Rights Reserved 34
Program: Straight Through ProcessingValue Criteria
Improve Operations
Increase capacity for handling transactions
Customer Satisfaction
Shorten resolution time
Reduce Cost Reduce manual processing cost (headcount)
SynopsisCustomer transactions/requests/issues/problems are handled by process associates in the customer service area. The volume of transactions which need to be resolved on a daily basis is nearing the capacity of what can be handled within a 24 hour period; in addition, resolution time is longer due to the manual effort involved in resolving the problem.
The company is committed to investing in technology which would automate (no touch) current manual processes, handle more requests in a shorter amount of time, with a reduced number of process associates.
Investment
Budget $20M
Payback / ROI 1-3 years
© Copyright Net Objectives, Inc. All Rights Reserved 35
Business Backlog for STPProgram: No touch STP
High Low
Plan Setup Ent. Data Workflow Auto. STP
Bus Inc
Bus Inc
Bus Inc
Bus Inc
Bus Inc…
9 months
Plan Setup
Ent. Data
Workflow
Auto. STP
80% 10% 10%
6 months!
4 months
1 month of a dev team’s vs.
Realizing value 3 months sooner!
© Copyright Net Objectives, Inc. All Rights Reserved 36
UX
Client
Server
DB schema
C
System Evolution vs. Business Evolution
Iterative = Start with what we know, implement some, show the customer, adjustIncremental= Feature Driven ... Value in short cycles ... Slices vs. Layers
BIG Batch
11
small Incremental
VALUE2 3
MORE BusinessVALUE ... OR DONE
C
UX
Client
Server
DB schema
4 ... 50
Iterative Business Slices
© Copyright Net Objectives, Inc. All Rights Reserved 37
Time to add new high value functionality
Time Spent Fixing Bugs Within and Across Systems
Time lost to building things of less importance
Time Available for New Features
Years in future
Current ??? Years?
% o
f ca
pac
ity
Maximum capacity of the team
Leadership in Transition to Lean | Agile (or anything else)
• Transition as work• Need for exceptional, shared clarity of vision and process about
values and about transition• Organizational change naturally follows process change• Wash, rinse, repeat – you’re never finished
© Copyright Net Objectives, Inc. All Rights Reserved 39
There is more value created with overall alignment that with local excellence.
- Don Reinertsen
Visualize the result, allow teams to form their own solutions.
© Copyright Net Objectives, Inc. All Rights Reserved 40
Observations Related To Moral Conflict
No fixed recipes for organization,
communications, tactics, leadership, etc.
Wide freedom for subordinates to exercise
imagination and initiative – yet harmonize
within intent of superior commanders.
Heavy reliance upon moral (human values)
instead of material superiority as basis for
cohesion and ultimate success.
Commanders must create a bond and breadth
of experience based upon trust – not mistrust –
for cohesion.
- John Boyd, “Patterns of Conflict” slide 118
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