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Keynote talk by Mary Poppendieck at Agile Eastern Europe 2010 on “It’s Not About Software”.
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Mary Poppendieck “It’s Not About Software”
1.
lsoftware development
e a n It’s Not About Working Software First Build the Right Thing mary@poppendieck.com Mary Poppendieck www.poppendieck.com
2.
Gróf András (Andrew
Grove) Business goes on to new heights Strategic Inflection Point 10x change in an element of the business. What worked before doesn’t work now. The executives are the last to know. Business declines 2 October 10 Copyright©2010 Poppendieck.LLC l e a n From: Only the Paranoid Survive, by Andy Grove,
3.
Is Agile Development
At An Inflection Point? Version 1.0 – Contract Focus Version 2.0 – Development Focus Version 3.0* - Customer Focus Processes and tools Individuals and Team vision and Comprehensive interactions initiative documentation Working software Validated learning Contract negotiation Customer collaboration Customer discovery Following a plan Responding to change Initiating Change Inflection Point: Customer Focus 1995 2000 2005 2010 3 October 10 l e a n *Kent Beck, Startup Lessons Learned – April 23, 2010 Copyright©2010 Poppendieck.LLC http://www.justin.tv/startuplessonslearned/b/262656520
4.
Team Vision and
Initiative There is nothing so useless as doing efficiently that which should not be done at all. – Peter Durcker Most products failures are caused by a lack of Customers. Not this: But this: P R I O R I T I Z E D l e a n ! 4 October 10 Copyright©2010 Poppendieck.LLC
5.
Validated Learning Consider the
Entrepreneur – The Objective: Starts out with no customers Minimum Viable Product Does it do the job? Assembles a business team: Will customers pay for it? Marketing What do we need to learn next? Development Repeat......multiple times Quality Assurance Experiment – Learn – Adjust Operations First be sure that you are Support building the right thing, Finance then be sure that you are Others? building the thing right. 5 October 10 Copyright©2010 Poppendieck.LLC l e a n
6.
Customer Discovery
Ethnography Ideation Brilliant Systems are the result of a matching of mental models between those developing a system and those who will be using the system. 6 October 10 Copyright©2010 Poppendieck.LLC l e a n
7.
Initiating Change WebSphere® Service
Registry and Repository 10 month deadline – didn’t know the details Solution: Get customer feedback Early Access Program Customers download new version each month User feedback on discussion forum Direct developer-customer interaction Changed course midstream User feedback beat marketing input Phenomenal sales the first day of release Customers knew they would get what they needed Support Calls down by an order of magnitude Mental model of users and developers matched 7 October 10 Copyright©2010 Poppendieck.LLC l e a n
8.
Extra Features are
the Biggest Waste in Software Development Features / Functions Used in a Typical System Cost of Complexity Often / Always Rarely / Never Used: 20% Used: 64% Sometimes Rarely 19% 16% Cost Often 13% Always 7% Never 45% Standish Group Study Reported at XP2002 by Jim Johnson, Chairman Time The Biggest Opportunity to Increase Software 8 Development Productivity is to Write Less Code! October 10 Copyright©2010 Poppendieck.LLC l e a n
9.
Simplify First –
Automate Last Video Cassette Plant – early 1980’s Pancake Coat Slit Pancake Wind Package Ship Pancake Chemicals Mix Parts 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 9 October 10 Copyright©2010 Poppendieck.LLC l e a n “If only you would try harder to do what the schedule says….”
10.
From Push to
Pull Crisis at our Video Cassette Plant Competition selling cassettes for less than we could make them Our Response Statistical Analysis for Quality Immediate Results: Improvement 95% of weekly plan Just-in-Time (Lean) Production Orders filled in 2 weeks The Great Coffee Cup Simulation No expediting Pancake Coat Slit Pancake Wind Package Ship Pancake Supplies Chemicals Mix 10 October 10 Parts Copyright©2010 Poppendieck.LLC l e a n Assemble
11.
Lessons Learned 1. It’s
Not Luck; It’s Hard Work Years of Quality Improvement Statistical Analysis System QA moved to the production line Stop-the-Line Attitude Months spent designing the details Designed by production workers Pre-dated Just-in-Time consultants Leadership through all levels of line management The design process WAS the training 2. Simplify First, Automate Last. 3. Consider the whole system, not just the software. 11 October 10 Copyright©2010 Poppendieck.LLC l e a n
12.
Optimize the Whole Optimizing
a part of a system will always sub-optimize the overall system. Beware of Layer Teams! “The” Business F F F F F Process e e e e e a a a a a Software t t t t t u u u u u Operations r r r r r e e e e e Support 12 October 10 Copyright©2010 Poppendieck.LLC l e a n
13.
Case Study: Amazon.com It’s
all about scale. 2000 – Hit the wall 2001 – Started transition to services Each Owned by a 2PT All functions – including operations! Encapsulate data and business logic Basic Services and Consolidator Services 2009 – Completed Transition. Conway’s Law Organizations which design systems are constrained to produce designs 13 October 10 Copyright©2010 Poppendieck.LLC l e a n which are copies of the communication structures of these organizations.
14.
Cost Center Disease Focus
on cost reduction instead of delivering value. Where is the disease most likely? IT departments Government Organizations Outsourcing Companies What’s Wrong with Cost Centers? No way to focus on superior customer outcomes No basis for trade-off decisions No engagement No passion 14 October 10 Copyright©2010 Poppendieck.LLC l e a n
15.
Three IT Archetypes Utility
– Provide cost-effective, utility-like reliability with constantly declining costs. Supplier – Deliver application projects on time and on budget, based on operating units’ requirements and priorities. Partner – Create differentiating, competitive solutions for the company’s customers, suppliers, and internal users. Source: Forrester Research 15 October 10 Copyright©2010 Poppendieck.LLC l e a n
16.
Product-Centric Development
is a Hot New Trend † * 16 October 10 Copyright©2010 Poppendieck.LLC l e a n *(develop, operate, and manage your custom applications as ‘commercial’ software products) †DaveWest & Roy Wildeman – Forrester, Dec. 2009 54% of surveyed companies favor product centric focus.
17.
Disruptive Technologies Stage One
– Start-up Stage Four – Disruption New technology finds an unmet need New low end product Stage Two – Growth Faster, smaller, cheaper, Move up-market for higher margins draws less power, etc. But not good enough for Stage Three – Flattening up-market customers The product overshoots market needs Enters down-market and finds an unmet need Eventually grows up and takes over the market “The fact is that because of the cloud, today a young upstart can take market share without an incumbent having time to react.” – Werner Vogles, Amazon.com 17 October 10 Werner Vogels Amazon.com Copyright©2010 Poppendieck.LLC l e a n
18.
Case Studies 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: EKG’s for Rs 9 “Our 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 unit other 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. 18 October 10 Copyright©2010 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.
19.
A Tale of
Two Terminals London Heathrow, Terminal 5 300,000 sq m $8.76 billion 7 years Opened March 27, 2008 Beijing Capital Airport, Terminal 3 986,000 sq m ~ 3 times larger $3.80 billion ~ Half the cost 3.75 years ~ Half the time 19 Opened March 26, 2008 October 10 Copyright © 2007 Poppendieck.llc l e a n
20.
Baggage Handling System Beijing
Capital Airport, Terminal 3 London Heathrow, Terminal 5 19,200 bags / hour Baggage handling chaos the first day 68 km of conveyers 500 flights canceled 5 min. plane to claim Up to 4 hour wait to claim baggage 0.23% handling errors in 2008 28,000 bags piled up the first weekend Multiple operational test runs (Dec-Jan) Workers warned management that their 20 8,000+ mock passengers Ran on a trial basis for a month (Feb) October 10 l e a n training was inadequate. But the planned full scale startup “could not be delayed”. Copyright © 2007 Poppendieck.llc
21.
Social-Technical Systems Early 1950’s:
Mechanization In The English Coal Mines* Mechanization broke up tightly knit teams that used to perform the entire extraction process from blasting to hauling to sorting. Different people performed the various steps on different shifts Caused coordination problems. The equipment was so loud people could not communicate Inhibited teamwork. People felt alone, isolated, and unappreciated deep in the earth. Destroyed pride, satisfaction and belonging. Pay system: from group incentive to hourly wage Destroyed monetary motivation. 21 October 10 Copyright © 2007 Poppendieck.llc l e a n The overall result: Decreased productivity and labor strife. * Eric Trist and Fred Emery; Tavistock Institute
22.
Principles of
Social-Technical Systems Technical Social Includes: Responsible Autonomy machinery Semi-autonomous groups processes Internal leader physical arrangement Adaptability Joint optimization: Group decides how to respond Social and technical systems must be balanced and integrated. to complexity and uncertainty Reliable processes: Whole Tasks End-to-end responsibility born A bad process will defeat a good person every time. by small cohesive group Built-in quality: Meaningful Tasks 22 You can’t test quality in! October 10 Copyright © 2007 Poppendieck.llc l e a n Commitment; not compliance
23.
Open Source A New
Social-Technical System? The Impossible Public Good? The “Tragedy of the Commons” does not apply Defies all known social and economic theory Incredibly stable No monetary rewards or sanctions 23 Impossibly complex October 10 Copyright©2010 Poppendieck.LLC l e a n No central authority in the traditional sense
24.
Is Open
An Inflection Source Point? Motivation 2.0 Motivation 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 2.0 Coordination 3.0 Leaders direct followers Leaders recruit followers No option to opt-out There is always an option to opt-out Passion 2.0 Passion 3.0 Winning the Game 24 October 10 Copyright©2010 Poppendieck.LLC l e a n First of all, I need to know Why?
25.
The Future Belongs
to You Motivation 3.0 Economics 3.0 Autonomy The new scarcity: Mastery The time, energy and brainpower Purpose of bright, creative people. Passion 3.0 Coordination 3.0 Start with the Why. Leaders attract followers. Invest your time and Wisdom is found at the worksite. energy in your passion. You are the core of the new economy. You can change the world. 25 October 10 Copyright©2010 Poppendieck.LLC l e a n
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lsoftware development
e a n Thank You! More Information: www.poppendieck.com mary@poppendieck.com Mary Poppendieck www.poppendieck.com