- 1. lsoftware developmente a nWhat is this thing called Pull?An
Inflection Point in the Way Things are Done [email protected]
Mary Poppendieckwww.poppendieck.com
2. Push From Forecast Video Cassette Plant early 1980s
PancakeCoatSlit Pancake Wind Package Ship Pancake Chemicals
MixParts Assemble Supplies MRP scheduled all purchases and sent
orders to each workstation Reliably shipped ~ 60% of weekly plan
Orders filled in ~ 6 weeks A lot of expediting 2September
10Copyright2010 Poppendieck.LLC l e a n If only you would try
harder to do what the schedule says. 3. Pull From Demand Crisis at
our Video Cassette Plant Competition selling cassettes for less
than we could make them Our Response Statistical Analysis for
Quality ImprovementImmediate Results: Just-in-Time (Lean)
Production 95% of weekly plan Orders filled in 2 weeks The Great
Coffee Cup Simulation No expediting Pancake CoatSlit Pancake Wind
PackageShipPancake Supplies ChemicalsMix 3September 10 Parts
Copyright2010 Poppendieck.LLC l e a nAssemble 4. Preparation Its
Not Luck Years of Quality Improvement Statistical Analysis System
QA moved to the production line Stop-the-Line Attitude Months spent
designing the details of a pull system Designed by production
workers Pre-dated Just-in-Time consultants Leadership through all
levels of line management The design process WAS the training The
most critical factors? Freedom to experiment at the local level
Deep engagement of every worker in the plant4September
10Copyright2010 Poppendieck.LLC l e a n Ability to rapidly and
easily adapt to problems 5. Strategic Inflection Point Business
goes on to new heights Inflection Point10x change in an element of
the business. What worked before doesnt work now. The executives
are the last to know.Businessdeclines 5September 10 Copyright2010
Poppendieck.LLC l e a nFrom: Only the Paranoid Survive, by Andy
Grove, 6. TheoryAny transition from Push to Pull will create an
inflection point.Business goes on to new heights Inflection
PointTransition from Push to Pull creates 10x change.What worked
before doesnt work now.The executives are the last to know.
Business6 September 10 Copyright2010 Poppendieck.LLCl e a ndeclines
7. Software DevelopmentInflection Points Version 1.0 Contract Focus
Version 2.0 Development FocusVersion 3.0* - Customer Focus
Processes and tools Individuals and Team vision and
Comprehensiveinteractions initiative documentation Working software
Validated learning Contract negotiation Customer collaboration
Customer discovery Following a plan Responding to change Initiating
ChangeInflection Point: Customer Pull 200020052010 2015 7 September
10 l e a n *Kent Beck, Startup Lessons Learned April 23,
2010Copyright2010 Poppendieck.LLC
http://www.justin.tv/startuplessonslearned/b/262656520 8.
Understand the Job The purpose of a product is to make a job
easier, cheaper, faster, more convenient, and/or give better
results The development team must deeply understand the job and the
value to be gained from doing the job in a new way. 8Ethnography
September 10 Copyright2010 Poppendieck.LLC l e a n Ideation 9. Pull
From Customer ValueNot this: But this:PRIORITIZED! Brilliant
Systems are the result of a matching of mental models between those
developing a system and those whose job will9 be made easier by the
system. September 10 Copyright2010 Poppendieck.LLC l e a n 10. Case
Study GE Healthcare We realized that the biggest impediment was
that we were selling what we were making [rather than] making what
the customers here needed.*The MAC-i: EKGs for Rs 9Our engineering
and marketing teams now interact closely with the customers here
[in India] to understand their requirements. We look at their work
flow, their environmental limitations, their profitability issues
and The Vscan: $8000 Ultrasound unitother factors and we then
price, design and manufacture the size of a mobile phone. Based on
designs originating in China, it will revolutionize global
healthcare. 10September 10Copyright2010 Poppendieck.LLC l e a n the
products accordingly****Ashish Shah, general manager, global
technology, GE Healthcare *V. Raja, president and CEO of GE
Healthcare-South Asia. 11. Build the Thing RightIts Not LuckBasic
Technical Disciplines:1. Low Dependency Architecture2. Coding
Standards3. Design/Code Reviews4. Refactoring is a Habit5. Source
Control / Configuration Mgmt6. Automated Unit TestsIts Hard Work7.
STOP if the tests dont pass8. Continuous Integration9. Automated
Acceptance Tests10. System Testing / UAT early & often11.
Automated Release / Install Packages12. Escaped Defect Analysis
& Feedback 11September 10 Copyright2010 Poppendieck.LLC l e a n
12. Disruptive Technologies The question now really is:Why isnt all
enterpriseWhen I started Salesforce,software like Facebook?I asked
the question:Version 3.0Why isnt all enterprisesoftware like
Amazon.com?Associated Press Marc BenioffVersion 2.0July 28,
2010Salesforce.comOver the past four years, I have watched with The
fact is that because of the cloud,amazement the rise of Amazon Web
Services. today a young upstart can take marketWhat started out as
a basic S3 storage service share without an incumbent having has
disrupted and transformed the entire time to react. Werner Vogles,
Amazon.comtechnology landscape. Technology writer Om Malik 12
September 10Copyright2010 Poppendieck.LLCl e a nWerner Vogles
Amazon.com 13. PreparationThe OODA Loop*Act ObserveThose who
execute this loop fastest always win. DecideOrient13 September
10*Developed by John BoydCopyright2010 Poppendieck.LLC l e a n 14.
Pull from Passion Remember the times when: You are deeply engaged
Distractions disappear Time evaporatesThis is called FLOW.Flow
occurs when we arepulled by our passion: To master a
difficultchallenge To be a part of something14 September 10
Copyright2010 Poppendieck.LLC l e a nlarger than ourselves 15.
Motivation 3.0 Factors that Lead to Better Performance &
Personal Satisfaction: Autonomy: The desire to beself-directed.
Mastery: www.youtube.com/watch?v=u6XAPnuFjJc The urge to get
better.Open Source Purpose: The impossible public good. Incredibly
stable The aspiration to make a Impossibly complex No monetary
rewards or sanctionscontribution to something No central authority
in the traditional sense15larger than ourselves.September 10
Copyright2010 Poppendieck.LLC l e a n This defies known social
& economic theory Why would people contribute? 16. Is Open An
Inflection SourcePoint?Motivation 2.0Motivation 3.0 Extrinsic
motivation Intrinsic motivation Pay for time Treat workers like
volunteers Economics 2.0 Economics 3.0 The key scarcity which The
key scarcity is the time, energy & drives decisions is capital
brainpower of bright, creative people Coordination 2.0Coordination
3.0 Leaders direct followers Leaders recruit followers No option to
opt-out There is always an option to opt-out Complexity
2.0Complexity 3.0 The plan-driven archetype The evolution archetype
Centralization efficiency16September 10 Copyright2010
Poppendieck.LLC l e a n Requisite variety survival 17.
Preparation:1970: Jan Wallander became CEO Focus on profitability,
not growth. Decisions devolved to branch managers: independent
agents who make all decisions for their branch Small central staff
that must sell services to branch managers
Measurements:Cost-to-income ratioIncome per employee
Governance:Friendly competition among branch managersCompany-wide
profit sharing Result: 17Top European bank that easilyweathers
economic storms September 10Copyright2010 Poppendieck.LLC l e a n
18. Preparation:A fundamental measure of our success will be the
shareholder value we create over the long term. From the very
beginning, our emphasis has been on the long term and as a result,
we may make decisions and weigh tradeoffs differently than some
other companies. We will continue to:Focus relentlessly on our
customers.Make bold investment decisions in light of long-term
leadershipconsiderations rather than short-term profitability
considerations.There is more innovation ahead of us than behind us,
and to that end, we are committed toextending our leadership in
e-commerce in a way that benefits customers and
therefore,inherently, investors -- you cant do one without the
other. Some of these bold investmentswill pay off, others will not,
but we will have learned a valuable lesson in either case.Work hard
to spend wisely and maintain our lean culture.We understand the
importance of continually reinforcing a cost-conscious
culture.Focus on hiring and retaining versatile and talented
employees, andweight their compensation to significant stock
ownership rather than cash.We know our success will be largely
affected by our ability to attract and retain a motivatedemployee
base, each of whom must think like, and therefore must actually be,
an owner. We are firm believers that the long-term interests of
shareholders are tightly linked to the l e a n interests of our
customers. If we do our jobs right, todays customers will buy more
tomorrow, well add more customers in the process, and it will all
add up to more cash flow and more long- term value for our
shareholders. 18 September 10Copyright2010 Poppendieck.LLC
http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-govHighlights
19. Preparation: 2004 Founders IPO Letter SERVING END USERSWe
founded Google because we believed we could provide an important
service tothe world-instantly delivering relevant information on
virtually any topic. Servingour end users is at the heart of what
we do and remains our number one priority. LONG TERM FOCUSAs a
private company, we have concentrated on the long term, and this
has servedus well. As a public company, we will do the same. In our
opinion, outsidepressures too often tempt companies to sacrifice
long term opportunities to meetquarterly market expectations. RISK
VS REWARD IN THE LONG RUNOur business environment changes rapidly
and needs long term investment. Wewill not hesitate to place major
bets on promising new opportunities. GOOGLERSOur employees, who
have named themselves Googlers, are everything. Google isorganized
around the ability to attract and leverage the talent of
exceptionaltechnologists and business people. We have been lucky to
recruit many creative, 19 September 10l e a nprincipled and hard
working stars. We hope to recruit many more in the future. Wewill
reward and treat them well.
http://investor.google.com/corporate/2004/ipo-founders-letter.htmlCopyright2010
Poppendieck.LLC 20. Business goes on What do these Companies to new
heights have in Common?Inflection PointBusiness 1. Organize to be
able rapidly recognize and declinesquickly respond to strategic
inflection points. 2. Focus on customer success,rather than company
success. 3. Focus on attracting and engaging top people,rather than
selecting and executing top projects. 4. Believe that shareholders
are better served by a longterm focus, even at the expense of
quarterly results. 5. Believe that local decision-making is more
important20than company-wide process standardization. September 10
Copyright2010 Poppendieck.LLC l e a n 21. From To Update to Version
3.0Economics 3.0 The coming scarcity: The time, energy &
brainpower 3.0 of bright, creative people. Coordination 3.0
2.XLeaders attract followers.Wisdom is found at the worksite.
Motivation 3.0Complexity 3.0 AutonomyIndependent agents make
Mastery better decisions at scale.21 PassionSeptember
10Copyright2010 Poppendieck.LLC l e a n Evolve or die. 22.
lsoftware developmente a nThank You!More Information:
[email protected] Mary
Poppendieckwww.poppendieck.com
