Lean Kanban France 2012 - Lean programme transformation

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A lean programme transformation (LPT) uses the lean principles of value, flow, pull, standardization and associated lean problem solving tools to increase the programme success rate. The cornerstone is learning how to tackle uncertainty and solve business problems with a PDCA cycle based on A3-thinking and visualisation for tangible business improvements.
Key ingredients of the Lean – Agile transformation are:
• Shorter lead times: Much of the overrun of a project is incurred at the beginning. LPT helps to address the following causes in this area: overly detailed analysis, lack of availability of experts, long decision cycles.
• Less loopbacks: Loopbacks are points in the project where there is a failure because of an unchecked assumption in the start of the project. Typical loopbacks include integration problems, building the wrong solution, de-scoping late in the project. Loopbacks are a major cause of project delay, overrun, quality problems and ultimately failure.
• Increased learning: LTP aims to remove the obstacles that the project encounters due to a lack of opportunity for learning and taking lessons learned into account in the project. It includes lack of cross project learning (solving the same problems in multiple projects), hand-overs, not taking into account the lessons learned of previous projects.
• Improved leadership: Projects fail because of a lack of leadership – a lack of balance in the decision making, not managing issues to closure, disconnect between authority and knowledge to make decisions.

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  • In 1992 the Canadian government declared a moratorium on the Northern Cod fishery.After a 500 year tradition on abundant cod, the fish stock abruptly collapsed to near extinction level following the overfishing since the late 50s and an earlier partial collapse in the 70s. Considering the importance of the cod fishery to the livelihood of Canada’s coastal communities, and the Northern Cod’s initial abundance in the region, the commercial extinction of the northern cod – from which to this day it has not recovered – is nothing short of shocking.The collapse can be considered a surprise. By 1976 it was abundantly clear that the northern cod was overfished due to unbridled foreign fishing and that Canada had to undertake a rebuilding process. As a countermeasure, Canada declared a 200-mile exclusive fisheries zone. Foreign fishing was phased out and the federal government developed a science-based system of fisheries management. The concept of total allowable catch remained the key management tactic, but a more modest fishing mortality target replaced the MSY as the standard for calculating quotas. Under this new target, roughly 18% of exploitable cod biomass would be harvested annually, providing, it was believed, a buffer against stock assessment errors and enforcement deficiencies and a rather rapid buildup of stocks. A period of cautious and incautious optimism ensued, fueled by signs of a rebound in the fish stocks and fairly consistent scientific stock assessments that led to projections of even higher catches in the future. Why then the commercial extinction of the northern cod in 1992?
  • Analysis of the situation
  • What killed the cod is the mostly optimistic perspective on the ability of people to "manage" complex systems. Management decisions-such as quotas, the timing or length of a fishing season, and the kinds of fishing gear allowed-are influenced by many things but are in theory dependent on information and understandings from a probabilistic but deterministic science known as "stock assessment”.How do you assess the stock?Commercial Catch Per Unit Effort (CPUE) bedeviled the cod. CPUE data are used to calibrate and fine tune stock assessments from which total allowable catch is set. It seemed reasonable to scientists that catch rates and total stock abundance are related in a linear fashion.
  • Good example of a management failure due to the optimization mindset.It is exactly this same optimization mindset that we also find in the management of projects and programmes that leads to similar failure.
  • These are a two examples of transformation programmes that we have been involved in.
  • To create learning opportunities we need to work in small steps.What is our immediate next step in the programme?
  • Commercial Catch Per Unit Effort (CPUE) bedeviled the cod. CPUE data are used to calibrate and fine tune stock assessments from which total allowable catch is set. It seemed reasonable to scientists that catch rates and total stock abundance are related in a linear fashion.Good example of a management failure due to the optimization mindset.It is exactly this same optimization mindset that we also find in the management of projects and programmes that leads to similar failure.
  • It seems that the most important obstacle is moving towards a more adaptive management approach.
  • Must appeal at different levels in the organizationThe goal maybe oblique
  • Lean Kanban France 2012 - Lean programme transformation

    1. 1. Lean Programme Transformation Lean Kanban France Paris, October 2012© Patrick Steyaert, 2012 Lean Programme Transformation
    2. 2. The collapse of the northern cod 2of newfoundland © Patrick Steyaert, 2012 Lean Programme Transformation
    3. 3. From an undesirable regime to an 3 even worse regime Desirable Regime Subsistence fishing Undesirable Regime Overfishing Even worse RegimeEconomic extinction © Patrick Steyaert, 2012 Lean Programme Transformation
    4. 4. Stock Assessment Error 4 Catch per Unit of Effort Stock abundance Total allowable catch © Patrick Steyaert, 2012 Lean Programme Transformation
    5. 5. Optimization mindset  Narrow focus5  Treating the environment as unvarying  Quantification leading to unwanted outcomes  One-size-fits-all © Patrick Steyaert, 2012 Lean Programme Transformation
    6. 6. Business Transformation Programmes © Patrick Steyaert, 2012 Lean Programme Transformation
    7. 7. Mind the gap 7 Disruptions Now Later CurrentCondition Vision Opportunities © Patrick Steyaert, 2012 Lean Programme Transformation
    8. 8. The gap in transforming the supply chain 8 highStock depth Required Across Stock countries and Target performance product lines low Acceptable Lead time short long Lead time © Patrick Steyaert, 2012 Lean Programme Transformation
    9. 9. Change is the bottleneck 9 We’ve tried This won’t this many work in our times before organisation No time! We are not ready I don’t care © Patrick Steyaert, 2012 Lean Programme Transformation
    10. 10. Big push change initiatives… 10User …the optimization mindset in action Programme manager © Patrick Steyaert, 2012 Lean Programme Transformation
    11. 11. The optimization mindset in action  Narrow focus  Focus on delivering an IT system (rather than solving the business problem)11  Treating the environment as unvarying  Fixed upfront budget, scope, time  Quantification leading to unwanted outcomes  Focus on budget control with all kinds of dysfunctions  One-size-fits-all  Upfront development of a template solution that fits all © Patrick Steyaert, 2012 Lean Programme Transformation
    12. 12. Root cause analysis 12Leadership Leveling Lead times Not meeting expectationsReadiness Learning Loopbacksfor change © Patrick Steyaert, 2012 Lean Programme Transformation
    13. 13. 13VALUE PULLFLOW STANDARDSVISUAL MANAGEMENT © Patrick Steyaert, 2012 Lean Programme Transformation
    14. 14. Change is the bottleneck 14 We’ve tried This won’t this many work in our times before organisation No time! We are not ready I don’t care © Patrick Steyaert, 2012 Lean Programme Transformation
    15. 15. Trapped in an undesirable regime 15 Desirable Regime Current Regime © Patrick Steyaert, 2012 Lean Programme Transformation
    16. 16. Adaptive management (improvement kata) 16 Disruptions Now Later Next CurrentCondition Obstacles Target Vision Condition Opportunities © Patrick Steyaert, 2012 Lean Programme Transformation
    17. 17. The lean program transformation gap 17 Now Later NextOptimization Current Obstacles Target Adaptive Vision Condition mindset Condition management © Patrick Steyaert, 2012 Lean Programme Transformation
    18. 18. The vision 18 © Patrick Steyaert, 2012 Lean Programme Transformation
    19. 19. Creating pull – start small, end big 19 Measured capability Capability Kanban Desired capability Small pushCurrentcapability Large pull Lean programmes Time © Patrick Steyaert, 2012 Lean Programme Transformation
    20. 20. Be prepared to scale 20  Plan  Plan change  Do  Execute change  Check  Measure the outcomes  Act  Scale up what works well (using standards) © Patrick Steyaert, 2012 Lean Programme Transformation
    21. 21. Break out of the undesirable regime 21 Desirable Regime Current Regime © Patrick Steyaert, 2012 Lean Programme Transformation
    22. 22. Lean programmes are resilient  Broad perspective (versus narrow focus)22  Assuming the environment is ever changing  Quantification of the outcomes  Taking into account (local) diversity => Resilient change <= © Patrick Steyaert, 2012 Lean Programme Transformation
    23. 23. Thank You patrick.steyaert@okaloa.com www.okaloa.com© Patrick Steyaert, 2012 Lean Programme Transformation

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