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Lean adaptive
                        management
            Lean & Kanban Benelux 2011
                                         Patrick Steyaert
                                           October 2011




                          Patrick.steyaert@teamprosource.eu
                                     Twitter: @PatrickSteyaert

                             www.TeamProsource.eu
www.TeamProsource.eu
Quiz …
          Further fill in your CEO’s shopping list:

          1.      Higher quality

          2.      Higher throughput

          3.      Shorter lead and cycle times

          4.      <<fill in>>

          5. 

          6. 


Lean & Kanban Benelux 2011             www.TeamProsource.eu     2
Our purpose is to deliver value



          Value should at least be understood in the
          same level of detail as effort and cost*




                             *Freely quoted from “Waltzing With Bears: Managing Risk on
                             Software Projects”, Tom DeMarco & Timothy Lister

Lean & Kanban Benelux 2011       www.TeamProsource.eu                                     3
Scale (in)variance
                      Mathematics                           Reality




Lean & Kanban Benelux 2011          www.TeamProsource.eu                4
Case
          •  Developing and delivering software
             applications in regulated domain

          •  Management and development distributed
             over locations in Europe

          •  Part of an international group

          •  Leader in an international market

Lean & Kanban Benelux 2011   www.TeamProsource.eu     5
Complex challenges
          The organization is faced with complex challenges in its product
            engineering and development process:
                 –  delivering on time and with the right quality
                 –  product development as well as custom projects
                 –  a complex and changing business domain (many codes and norms)
                 –  uncertainty about user needs and market opportunities
                 –  complexities of a function oriented, geographically distributed, organisation
                    (product engineering versus product development)
                 –  technological complexity
                 –  substantially re-engineer the product at the same time keep on delivering
                    new functionality at a high pace




Lean & Kanban Benelux 2011                     www.TeamProsource.eu                                 6
Organization
                                     Management



                                                  CT1
                           SE   SE   SE   SE




                                                  CT2


                                                  CT3
   Product
   Mgmt.                                                 QA
                        SW development
360° Improvement Case      www.TeamProsource.eu                 7
The end-to-end value stream



        Narratives                              Models                               Product in use

                 Idea          Condept   Requirement     Verification   Validation      Implemented




                             Concepts                      Product in development
Lean & Kanban Benelux 2011                 www.TeamProsource.eu                                   8
The end-to-end value stream – in practice



        Narratives                              Models                               Product in use

                 Idea          Condept   Requirement     Verification   Validation      Implemented




                             Concepts                      Product in development
Lean & Kanban Benelux 2011                 www.TeamProsource.eu                                   9
Kanban

                                                                        Kanban
                                                          •  Visualize the workflow
        Narratives                              Models                                Product in use
                                                          •  Limit WIP
                 Idea          Condept   Requirement     Verification    Validation      Implemented
                                                          •  Manage Flow

                                                          •  Make Process Policies
                                                             Explicit

                                                          •  Improve Collaboratively
                                                             (using models & the
                                                             scientific method)
                             Concepts                      Product in development
Lean & Kanban Benelux 2011                 www.TeamProsource.eu                                   10
Lean & Kanban Benelux 2011   www.TeamProsource.eu   11
Source of confusion
               Change-the-business                                   Run-the-business
                     In an emergent market                           In the core market

                     Value is speculative                            Value is clear (smaller
                     (large but uncertain)                           but certain)

                     Start with low quality                          No less than highest
                     but prepare to grow                             quality standards




Lean & Kanban Benelux 2011                    www.TeamProsource.eu                             12
Being on the edge
                                Value
                             maximization

              Value
             renewal




Lean & Kanban Benelux 2011      www.TeamProsource.eu               13
Emergent                                           Extension
            Large potential (uncertain)                           Return and investment with
               return, incremental                                     assessable risk
                   investment


                             14




          Novel / Sensitive                                       Enhancement
           Large upfront investment with                          Small investment with small
                 uncertain returns                                          return




Lean & Kanban Benelux 2011                 www.TeamProsource.eu           www.cognitive-edge.com
Different risk profiles
                                   High
                              e.g. novel                                  Novel
                                 market



     Uncertainty
     about value
                                                Enhance
                                                 ment
                                    Low
                             e.g. existing
                                   market    Low                                   High
                                             e.g. fits within current              e.g. challenges
                                             architecture                          current architecture

                                                  Uncertainty about capabilities
Lean & Kanban Benelux 2011                              www.TeamProsource.eu                              15
Emergent                                       Extension
                  Cumulate success                                Managing the risk




                             16




          Novel / Sensitive                                   Enhancement
                   Cascading failure                          repeated and increasingly
                                                              efficient delivery of quality




Lean & Kanban Benelux 2011             www.TeamProsource.eu            www.cognitive-edge.com
Challenges for enhancements



                  One routine project does not make a
                     success, it is the repeated and
                 increasingly efficient                   delivery of
                         quality that makes a success

Lean & Kanban Benelux 2011         www.TeamProsource.eu                 17
Challenge for extensions




                      Identifying risk    removing risk            producing value




Lean & Kanban Benelux 2011               www.TeamProsource.eu                        18
Challenge for emergent projects


                             Creating
                             cumulative
                             success




Lean & Kanban Benelux 2011       www.TeamProsource.eu   19
Challenge for sensitive projects

Cascading failure




             Lean & Kanban Benelux 2011
                     www.TeamProsource.eu   20
Adaptive management


            Every project is unique …




                                                   … but some are more
                                                     unique than others!


Lean & Kanban Benelux 2011         www.TeamProsource.eu                    21
How do we discover and
                                 deliver value?



Lean & Kanban Benelux 2011    www.TeamProsource.eu   22
The end-to-end value stream

                  Discovery Kanban                                Delivery Kanban
             •  Visualize the flow of                     •  Visualize the workflow
                options                                                              Product in use
        Narratives                  Models
          •  Ensure minimal options        •  Limit WIP
                 Idea          Condept   Requirement     Verification   Validation      Implemented
             •  Manage Flow                               •  Manage Flow

             •  Make Process Policies                     •  Make Process Policies
                Explicit                                     Explicit
             •  Improve Collaboratively
                (using models & the                       •  Improve Collaboratively
                scientific method)                           (using models & the
                                                             scientific method)
                             Concepts                      Product in development
Lean & Kanban Benelux 2011                 www.TeamProsource.eu                                  23
Linear flow
          •  When discovery precedes delivery
                 –  The user is engaged at the beginning and at the end
                 –  The needs are discovered at the start and the results of the
                    project are delivered at the end


                             DISCOVERY                               DELIVERY


                                                          Verified     Validated    Implemented
                Request         Option   Requirement      solution      solution      solution




Lean & Kanban Benelux 2011                  www.TeamProsource.eu                                  24
Iterative flow
          •  When discovery and
             delivery are intertwined
                 –  The user is continuously
                    involved in the project                          Implemented
                                                                       solution           Idea


                 –  The needs are
                    discovered iteratively and                 Validated
                                                                                                 Concept
                    project results are also                    solution


                    delivered iteratively
                 –  Risks are managed and                                  Verified
                                                                           solution    Requirement


                    benefits are realised
                    incrementally during the
                    project


Lean & Kanban Benelux 2011              www.TeamProsource.eu                                               25
Lean adaptive management
                                                  Iterative

       Emergent                 Iterative discovery                          Product in use




                                                        Level of iteration
       Extension             Iterative development                           Product in development



       Enhancement              Small batch linear                           Feature>Feature>Feature


       Sensitive                Large batch linear                           Narrative>Model>Product


                                                      Linear

Lean & Kanban Benelux 2011                www.TeamProsource.eu                                         26
How do we organize?




Lean & Kanban Benelux 2011   www.TeamProsource.eu   27
Entrepreneurial                                      Project
          culture                                        management
                                                           culture
                             28




       High reliability                                    High
          culture                                         maturity
                                                          culture

Lean & Kanban Benelux 2011        www.TeamProsource.eu      www.cognitive-edge.com
Lean adaptive management
          •  End-to-end flow
                 –  Create flow in the end-to-end
                    value stream (Delivery +
                    Discovery)

          •  Tailored project
             management
                 –  Differentiate between the need for
                    linear workflow and iterative
                    workflow

          •  Ambidexterity
                 –  Integrate different cultures in the
                    organization

Lean & Kanban Benelux 2011                  www.TeamProsource.eu   29
www.teamprosource.eu

                                                     THANK YOU
                             Do you want to be kept informed?
                              http://www.kanbanforprojects.eu/

Lean & Kanban Benelux 2011    www.TeamProsource.eu
                             www.TeamProsource.eu             30

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Patrick steyaert lean adaptive management - achieving complex business goals with end-to-end flow, tailored project management and organizational maturity

  • 1. Lean adaptive management Lean & Kanban Benelux 2011 Patrick Steyaert October 2011 Patrick.steyaert@teamprosource.eu Twitter: @PatrickSteyaert www.TeamProsource.eu www.TeamProsource.eu
  • 2. Quiz … Further fill in your CEO’s shopping list: 1.  Higher quality 2.  Higher throughput 3.  Shorter lead and cycle times 4.  <<fill in>> 5.  6.  Lean & Kanban Benelux 2011 www.TeamProsource.eu 2
  • 3. Our purpose is to deliver value Value should at least be understood in the same level of detail as effort and cost* *Freely quoted from “Waltzing With Bears: Managing Risk on Software Projects”, Tom DeMarco & Timothy Lister Lean & Kanban Benelux 2011 www.TeamProsource.eu 3
  • 4. Scale (in)variance Mathematics Reality Lean & Kanban Benelux 2011 www.TeamProsource.eu 4
  • 5. Case •  Developing and delivering software applications in regulated domain •  Management and development distributed over locations in Europe •  Part of an international group •  Leader in an international market Lean & Kanban Benelux 2011 www.TeamProsource.eu 5
  • 6. Complex challenges The organization is faced with complex challenges in its product engineering and development process: –  delivering on time and with the right quality –  product development as well as custom projects –  a complex and changing business domain (many codes and norms) –  uncertainty about user needs and market opportunities –  complexities of a function oriented, geographically distributed, organisation (product engineering versus product development) –  technological complexity –  substantially re-engineer the product at the same time keep on delivering new functionality at a high pace Lean & Kanban Benelux 2011 www.TeamProsource.eu 6
  • 7. Organization Management CT1 SE SE SE SE CT2 CT3 Product Mgmt. QA SW development 360° Improvement Case www.TeamProsource.eu 7
  • 8. The end-to-end value stream Narratives Models Product in use Idea Condept Requirement Verification Validation Implemented Concepts Product in development Lean & Kanban Benelux 2011 www.TeamProsource.eu 8
  • 9. The end-to-end value stream – in practice Narratives Models Product in use Idea Condept Requirement Verification Validation Implemented Concepts Product in development Lean & Kanban Benelux 2011 www.TeamProsource.eu 9
  • 10. Kanban Kanban •  Visualize the workflow Narratives Models Product in use •  Limit WIP Idea Condept Requirement Verification Validation Implemented •  Manage Flow •  Make Process Policies Explicit •  Improve Collaboratively (using models & the scientific method) Concepts Product in development Lean & Kanban Benelux 2011 www.TeamProsource.eu 10
  • 11. Lean & Kanban Benelux 2011 www.TeamProsource.eu 11
  • 12. Source of confusion Change-the-business Run-the-business In an emergent market In the core market Value is speculative Value is clear (smaller (large but uncertain) but certain) Start with low quality No less than highest but prepare to grow quality standards Lean & Kanban Benelux 2011 www.TeamProsource.eu 12
  • 13. Being on the edge Value maximization Value renewal Lean & Kanban Benelux 2011 www.TeamProsource.eu 13
  • 14. Emergent Extension Large potential (uncertain) Return and investment with return, incremental assessable risk investment 14 Novel / Sensitive Enhancement Large upfront investment with Small investment with small uncertain returns return Lean & Kanban Benelux 2011 www.TeamProsource.eu www.cognitive-edge.com
  • 15. Different risk profiles High e.g. novel Novel market Uncertainty about value Enhance ment Low e.g. existing market Low High e.g. fits within current e.g. challenges architecture current architecture Uncertainty about capabilities Lean & Kanban Benelux 2011 www.TeamProsource.eu 15
  • 16. Emergent Extension Cumulate success Managing the risk 16 Novel / Sensitive Enhancement Cascading failure repeated and increasingly efficient delivery of quality Lean & Kanban Benelux 2011 www.TeamProsource.eu www.cognitive-edge.com
  • 17. Challenges for enhancements One routine project does not make a success, it is the repeated and increasingly efficient delivery of quality that makes a success Lean & Kanban Benelux 2011 www.TeamProsource.eu 17
  • 18. Challenge for extensions Identifying risk removing risk producing value Lean & Kanban Benelux 2011 www.TeamProsource.eu 18
  • 19. Challenge for emergent projects Creating cumulative success Lean & Kanban Benelux 2011 www.TeamProsource.eu 19
  • 20. Challenge for sensitive projects Cascading failure Lean & Kanban Benelux 2011 www.TeamProsource.eu 20
  • 21. Adaptive management Every project is unique … … but some are more unique than others! Lean & Kanban Benelux 2011 www.TeamProsource.eu 21
  • 22. How do we discover and deliver value? Lean & Kanban Benelux 2011 www.TeamProsource.eu 22
  • 23. The end-to-end value stream Discovery Kanban Delivery Kanban •  Visualize the flow of •  Visualize the workflow options Product in use Narratives Models •  Ensure minimal options •  Limit WIP Idea Condept Requirement Verification Validation Implemented •  Manage Flow •  Manage Flow •  Make Process Policies •  Make Process Policies Explicit Explicit •  Improve Collaboratively (using models & the •  Improve Collaboratively scientific method) (using models & the scientific method) Concepts Product in development Lean & Kanban Benelux 2011 www.TeamProsource.eu 23
  • 24. Linear flow •  When discovery precedes delivery –  The user is engaged at the beginning and at the end –  The needs are discovered at the start and the results of the project are delivered at the end DISCOVERY DELIVERY Verified Validated Implemented Request Option Requirement solution solution solution Lean & Kanban Benelux 2011 www.TeamProsource.eu 24
  • 25. Iterative flow •  When discovery and delivery are intertwined –  The user is continuously involved in the project Implemented solution Idea –  The needs are discovered iteratively and Validated Concept project results are also solution delivered iteratively –  Risks are managed and Verified solution Requirement benefits are realised incrementally during the project Lean & Kanban Benelux 2011 www.TeamProsource.eu 25
  • 26. Lean adaptive management Iterative Emergent Iterative discovery Product in use Level of iteration Extension Iterative development Product in development Enhancement Small batch linear Feature>Feature>Feature Sensitive Large batch linear Narrative>Model>Product Linear Lean & Kanban Benelux 2011 www.TeamProsource.eu 26
  • 27. How do we organize? Lean & Kanban Benelux 2011 www.TeamProsource.eu 27
  • 28. Entrepreneurial Project culture management culture 28 High reliability High culture maturity culture Lean & Kanban Benelux 2011 www.TeamProsource.eu www.cognitive-edge.com
  • 29. Lean adaptive management •  End-to-end flow –  Create flow in the end-to-end value stream (Delivery + Discovery) •  Tailored project management –  Differentiate between the need for linear workflow and iterative workflow •  Ambidexterity –  Integrate different cultures in the organization Lean & Kanban Benelux 2011 www.TeamProsource.eu 29
  • 30. www.teamprosource.eu THANK YOU Do you want to be kept informed? http://www.kanbanforprojects.eu/ Lean & Kanban Benelux 2011 www.TeamProsource.eu www.TeamProsource.eu 30