Red Beads Experiment

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  • 1. JOAKIM SUNDÉN
  • 2. BODEN
  • 3. Everyone Loves Music
  • 4. David P. JoyceW Edwards Deming
  • 5. The White Bead Co. ITIL WE LISTEN TO OUR PEOPLECMMI5 ISO9000 Only at their annual appraisal
  • 6. We Are Recruiting! 3 willing workers. Must be willing to put in bestefforts. Continuation of job is based on performance.No experience in making beads necessary. Educational requirements-nil. 1 inspector. Must be able to distinguish red from white. Must be able to count to 20. No experience necessary.1 chief inspector. Same qualifications as inspector. Must be able to speak in a loud voice. ABOVE AVERAGE WORKERS ONLY NEED APPLY
  • 7. FINISHED FILES ARE THE RESULT OF YEARS OF SCIENTIFIC STUDY COMBINED WITH THE EXPERIENCE OF MANY YEARS.
  • 8. Lessons learned• Did incentives work?• Did the motivational posters help?• Did have a CMMI standard process work?• What could managers do to improve things for the workers?• What are the red beads in your company?
  • 9. Lessons learned• It’s the system not the workers• It’s management thinking that designed the system• Arbitrary numerical targets were completely ineffective• Rewarding or punishing the workers had no effect• Rigid and precise procedures are not sufficient to produce quality• Keeping the ‘best’ workers did not work• Management tampering creates more problems than it solves• Posters and slogans are at best useless and can be insulting and create resentment• The biggest source of variation was in the system
  • 10. Theory of Variation
  • 11. The First Principle of the Theory of VariationWe Should Expect Things to Vary, They Always Do
  • 12. My performance✓Performance ✗ Time
  • 13. Statistical Process Control Charts Upper Control Limit✓ Average Lower Control LimitPerformance ✗ Time
  • 14. The Second Principle of the Theory of Variation Understanding Variation Will Tell us What to Expect
  • 15. Signal or Noise? Velocity40 Reward! Manager Tough management repents... works!3020 No more Mr Nice Guy!10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
  • 16. Signal or Noise? Velocity4030 Control Limits2010 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
  • 17. What to expect Velocity4030 Average2010 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
  • 18. Expectations... Velocity40302010 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
  • 19. Setting a Target Upper Control Limit✓ Average Lower Control LimitPerformance ✗ Time
  • 20. “I recently asked a colleague [CIO] whether he wouldprefer to deliver a project somewhat late andoverbudget, but rich with business benefits, or one that ison time and underbudget but of scant value to thebusiness.He thought it was a tough call, and then went for the on-time scenario. Delivering on time and within budget ispart of his IT department’s performance metrics.Chasing after the elusive business value, over which hethought he had little control anyway, is not.” Cutter Sr. Consultant Helen Pukszta
  • 21. If you give a managera numerical target, he’llmake it, even if he has todestroy the company in the process.
  • 22. The Third Principle of the Theory of Variation Work on the Causes of Variation,Which are Always Found in the System
  • 23. Majority of Performance is Down to the System A bad system will defeat a good person every time. System 95% Individual 5%
  • 24. System ConditionsWork Design Business CasesPolicies FundingMeasures Poor requirementsStructureRoles InspectionProcedures ComplianceInformationJob skillsKnowledge
  • 25. The Fourth Principle of the Theory of Variation Understanding VariationTells you When Something has Happened
  • 26. Special Cause vs Common Cause Velocity5040302010 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
  • 27. Did we improve? Change introduced after sprint 8302010 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
  • 28. SPC for comparison Team B Team A Team C
  • 29. Joakim Sundén Twitter: @joakimsundenjoakim.sunden@spotify.com www.joakimsunden.com