Beyond Value Streams: Experimental Evolution in Action

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These are the slides from my keynote for Lean Agile Scotland 2013. In this session, I shared stories, workflows and practical thinking tools that illustrate how the act of deliberately capturing and evolving "learning streams" (as opposed to - or rather in addition to - the more conventional value streams) can lead to surprising consequences.

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Beyond Value Streams: Experimental Evolution in Action

  1. 1. @agilesensei agilesensei.com a3thinker.com nd yo Be ue al V ms ea tr S on ti n ac ni utio ol l ev ta imen r Expe written, illustrated and performed by Claudio Perrone
  2. 2. I’ve seen things most people wouldn’t believe…
  3. 3. Like the rise of A Learning organization, fueled by the enlightened self-interest of ITS people
  4. 4. I saw how Curiosity and courage can generate endless options
  5. 5. ... And what it means to develop, and honor people for their ideas & contribution.
  6. 6. All those… moments... will be lost in time like tears... in... rain
  7. 7. % of organizations Today, Many of us face a different world… effectiveness (*) Courtesy: Steve McConnell – After the Gold Rush & Bob Marshall (“Marshall Model of Organizational Effectiveness” www.fallingblossoms.com)
  8. 8. It’s a world where Invention and innovation are replaced by organizational conformity…
  9. 9. … Knowledge development IS annihilated by bureaucracy, fire-fighting, and command & control
  10. 10. Companies go through many reorganizations, only to stay the same Organization chart Blame flow God Victims Rule makers Controllers Enforcers Losers
  11. 11. The traditional agile approach towards management Hasn’t been particularly effective … You are a “chicken”. You shouldn’t even talk
  12. 12. Arguably, organizations can’t be “agile” if only the development teams are doing Agile Typical “Agile” Enterprise SMs
  13. 13. It’s a war we can’t possibly win…
  14. 14. Unless…
  15. 15. 1 BEYOND VALUE STREAMS
  16. 16. “ All we are doing is looking at the timeline from the moment the customer gives us an order to the point we can collect the cash. And we are reducing that timeline by removing the non-value-added wastes. -­‐-­‐-­‐  TaiichiOhno,  Founder  of  TPS  
  17. 17. Customers Lean destroyed the myth that splitting work Kaizen Current State Value-Stream Map in big batches improves the economies xx to yy (high season) Period calculated: from of Acme Reinsurance Push arrow F: 200/month scale. Date: xxx inbox Author: Claudio Perrone Average: 10/day Pull arrow Proc. Lead Time: 71.75h Non VAT 3d Value Adding Time (VAT) 0.25h 2d 2.5d 5h 2h 1h 1h Calculate premium 2h Submit quote Proc. Efficiency 12.9% Train on Kanban pulling Reinsurance placement Request for reinsurance Register 20jobs Clean & analyze data FIFO Reduce batch sizes 10jobs $ value Calculate risk 2jobs due date Clarify classes of service C/T too long Setup Kanban board 5jobs Improve system validation Total Cycle Time: 9.25h
  18. 18. … And provided many “tools” to obliterate Customers the competition Future State Value-Stream Map Period calculated: from xx to yy (high season) Acme Reinsurance Date: xxx F: 200/month Pull arrow Author: Claudio Perrone Average: 10/day Proc. Lead Time: 46.25h Non VAT 2d Value Adding Time (VAT) 0.25h 1d 1.5d 4h 2h 1h 2h 1h Calculate premium Submit quote Proc. Efficiency 17.8% Train on Kanban pulling Reinsurance placement Request for reinsurance Register MAX 5 jobs Reduce batch sizes Clean & analyze data MAX 4 jobs Calculate risk MAX 2jobs Clarify classes of service C/T too long Setup Kanban board MAX 2jobs Improve system validation Total Cycle Time: 8.25h
  19. 19. “but that’s only part of the story…”
  20. 20. Why do you allow your competitors to copy all your tools?
  21. 21. What they need to see… is not visible What the hell is He talking about?
  22. 22. Does this look familiar?
  23. 23. Do you remember how the story ends?
  24. 24. W. Edwards deming believed that… “ 95% of variation in worker’s performance is governed by the systems ---W. Edwards Deming
  25. 25. …Which maybe explains why the purpose of the Lean systems society is to… “Improve the world by improving its systems.” Lean Systems Society “Excellence in Managing Complexity” http://leansystemssociety.org/
  26. 26. Perhaps… “ We should work on our processes, not the outcome of our processes. ---W. Edwards Deming
  27. 27. “At Toyota, improving and managing are one and the same” Traditional thinking: Normal daily management + improvement Toyota’s thinking: Normal daily management = Process improvement
  28. 28. “ Some people question targets. Question arbitrary targets instead. "How are we going to change our systems to achieve it?” That’s an excellent question. -- Claudio Perrone
  29. 29. In Lean, Managers have a purpose... Value Stream
  30. 30. …and (at least) a method.
  31. 31. I believe “ Lean is a business strategy to make money* THROUGH the development of people (*) replace with “create customer value” or “reach results”, if you prefer
  32. 32. So, maybe... “ It’s not what you do but rather what you learn by doing it that matters. -- Claudio Perrone
  33. 33. “learning to see” involves bringing to the surface what we learn Value Stream Learning Stream(s)
  34. 34. An A3 report, for example, “surfaces” a learning stream around a problem
  35. 35. A set of kaizen memos can represent another Learning stream… Kaizen memo: Kaizen Memos Before improvement: We didn’t trace the small, continuous improvements to our work Action taken: Created “Kaizen memos” to post on an “implemented ideas” board Effect: Team members trace and celebrate every implemented idea, even the smallest! Submitted by: Claudio Perrone Date:
  36. 36. …Which can also be “SURFACED” on a kaizen board
  37. 37. What other Learning streams can we seek to surface?
  38. 38. How about stories?
  39. 39. How about change efforts?
  40. 40. More specifically… How do you introduce and surface change in your organization?
  41. 41. 2 EVOLVE EXPERIMENTALLY (A Lean Change story)
  42. 42. “Once upon a time, in a ‘fortune 50’ land, A prince lived in a much troubled castle”
  43. 43. “after reading a great book, he thought” Scrum is AWESOME!
  44. 44. Fascinated by the benefits that a mature agile organization can bring… Visibility Business  Value Agile  Development Adaptability Risk Traditional  Development
  45. 45. … he said: I want you to turn 33+ teams using scrum. Do it. Now.
  46. 46. Scrum may be a great solution, but… …What’s the problem?
  47. 47. I went to the “gemba”, the place were the value is actually created. After all… “ ... A desk is a dangerous place from which to view the world. --- John le Carre
  48. 48. After some fact finding, I shared my observations and insights… Insights Lean Change Cycle Review Options Introduce MVC Prepare
  49. 49. Copies of my preliminary A3 were lying on the table… http://a3thinker.com/deck
  50. 50. after 1½ years of waterfall Development, The company was experiencing a seemingly endless integration hell
  51. 51. many People where blaming each other for what was happening
  52. 52. What could we do? Insights Lean Change Cycle Review Options Introduce MVC Prepare
  53. 53. The ship was sinking fast… So, “Do nothing” was not an option
  54. 54. with that urgency, in that context, And with that complexity… …scrum was not a viable option
  55. 55. In the end, we agreed to: - aim at a pre-release for a major customer - focus on flow optimization
  56. 56. change was certainly going to be disruptive (and not so “minimal”) Insights Lean Change Cycle Review Options Introduce MVC Prepare
  57. 57. …But desperate times called for desperate measures Insights Lean Change Cycle Review Options Introduce MVC Prepare
  58. 58. “we articulated our Change strategy” Urgency Target State Stable prerelease deployed to Major Client by xx If we don’t release soon, the ship will sink! Communication Vision Cadenced meetups Pre-Release to Major Client by Focus on JIT fixes Cross-funct. teams Kanban Committments … R&D Teams Testing Dep Success Criteria Actions Change Participants Mgmt Released by xx QA ok Major client happy Review MMFs Wins morale https://leanpub.com/leanchangemethod Baseline for performance Keep job Keep Client
  59. 59. we also negotiated and challenged certain (self-serving) policies
  60. 60. We introduced lean techniques very pragmatically Insights Lean Change Cycle Review Options Introduce MVC Prepare
  61. 61. We moved hundreds of people in just 3 days, to reduce many functional barriers Programming Team Testing Team Programming Team Documentation Team Cross-functional Team Functional Team Cross-functional Team
  62. 62. teams adopted a kanban bord, each fine-tuned according to their specific workflow Development Ordered Backlog 3 6 Rq. Fixed DOD DOR Expedite 1 PreTesting CD Ready Smoke Test PreTested Done DOD Integration Done Integration Team (Complex configuration) DOD
  63. 63. We reviewed and validated our progress and assumptions regularly Insights Lean Change Cycle Review Options Introduce MVC Prepare
  64. 64. focus on flow optimization, Shared sense of Urgency and executive sponsorship enabled us to deliver fast, against all odds
  65. 65. What would your first lean change implementation look like?
  66. 66. Start small! These days, When I first engage with any team…
  67. 67. …I often start with a retrospective to collect initial insights (and to obtain permission to help)…
  68. 68. I USE THAT DATA TO feed a change board And SYSTEMATICALLY DEFINE AND negotiate explicit change experiments Observations & insights Options Possible Experiments This Week Week + 1 Week + 2 Week + 3 Archive
  69. 69. That was a (powerful) learning stream!
  70. 70. BUT… HOW DO WE KNOW THAT WE ARE actually CREATING VALUE?
  71. 71. It’s hard. We accept that… “… complexity and uncertainty are natural to social systems and knowledge work.” http://leansystemssociety.org/
  72. 72. Are we doomed? “ If you get good at delivering shit faster, you just get a lot of shit. --Jeff Patton
  73. 73. 3 VALIDATED LEARNING (A lean startup story)
  74. 74. Some time ago, I decided to write a book on A3 thinking
  75. 75. But I didn’t want to write a book that nobody reads…
  76. 76. So, I Documented my initial assumptions on a Lean canvas Top 3 Problems Existing alternatives Solution Key metrics Cost structure Unique Value Proposition Unfair Advantage Channels Revenue streams Customer Segments Early adopters
  77. 77. … and then, I went “out of the building”, to validate those assumptions
  78. 78. I shaped my thinking around the the build/measure/ learn loop through an experiment board Learn idea (whether to pivot or persevere) Build (Turn ideas into product) (often a series of MVPs) data Product Measure (How customers respond)
  79. 79. …Which, today, consists of observations/ insights, open questions, and ideas…
  80. 80. targets, analysis and hypotheses…
  81. 81. Experiments (identify, define metric, build)
  82. 82. Validation (qualitative & quantitative)
  83. 83. …& knowledge base.
  84. 84. In other words… “ I execute tasks To develop features That are part of experiments That I run to validate hypotheses That I formulate thanks to observations about the world that surrounds us. -- Claudio Perrone
  85. 85. My mindset shifted: “From concept to cash” to “From question to knowledge base”
  86. 86. Ironically , I never wrote that book
  87. 87. people needed something to help them when and where it mattered most
  88. 88. So I tested an idea with a low fidelity MVP
  89. 89. … captured enthusiastic earlyvangelists with a glimpse of what would come next…
  90. 90. And released a family of thinking tools… www.a3thinker.com  
  91. 91. to change the world. one problem at a time. www.a3thinker.com/deck  
  92. 92. Final Thoughts
  93. 93. “ It’s not what you do but rather what you learn by doing it that matters. -- Claudio Perrone
  94. 94. “ It’s not what you do but rather what you learn by doing it that matters. But then... -- Claudio Perrone
  95. 95. “ It’s not what you do but rather what you learn by doing it that matters. But then... it’s not what you learn, but rather what you do with it that matters. -- Claudio Perrone
  96. 96. Thank You! Claudio  Perrone   claudio@agilesensei.com   www.agilesensei.com   www.a3thinker.com   www.twi@er.com/agilesensei  

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