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Lean at Cisco: Lessons Learned from Lean Product Development and Lean Startup
Lean at Cisco: Lessons Learned from Lean Product Development and Lean Startup
Lean at Cisco: Lessons Learned from Lean Product Development and Lean Startup
Lean at Cisco: Lessons Learned from Lean Product Development and Lean Startup
Lean at Cisco: Lessons Learned from Lean Product Development and Lean Startup
Lean at Cisco: Lessons Learned from Lean Product Development and Lean Startup
Lean at Cisco: Lessons Learned from Lean Product Development and Lean Startup
Lean at Cisco: Lessons Learned from Lean Product Development and Lean Startup
Lean at Cisco: Lessons Learned from Lean Product Development and Lean Startup
Lean at Cisco: Lessons Learned from Lean Product Development and Lean Startup
Lean at Cisco: Lessons Learned from Lean Product Development and Lean Startup
Lean at Cisco: Lessons Learned from Lean Product Development and Lean Startup
Lean at Cisco: Lessons Learned from Lean Product Development and Lean Startup
Lean at Cisco: Lessons Learned from Lean Product Development and Lean Startup
Lean at Cisco: Lessons Learned from Lean Product Development and Lean Startup
Lean at Cisco: Lessons Learned from Lean Product Development and Lean Startup
Lean at Cisco: Lessons Learned from Lean Product Development and Lean Startup
Lean at Cisco: Lessons Learned from Lean Product Development and Lean Startup
Lean at Cisco: Lessons Learned from Lean Product Development and Lean Startup
Lean at Cisco: Lessons Learned from Lean Product Development and Lean Startup
Lean at Cisco: Lessons Learned from Lean Product Development and Lean Startup
Lean at Cisco: Lessons Learned from Lean Product Development and Lean Startup
Lean at Cisco: Lessons Learned from Lean Product Development and Lean Startup
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Lean at Cisco: Lessons Learned from Lean Product Development and Lean Startup

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Slide deck from my talk on Lean at Cisco: Lessons Learned from Lean Product Development and Lean Startup. …

Slide deck from my talk on Lean at Cisco: Lessons Learned from Lean Product Development and Lean Startup.

The 3 lessons I talk about are:
1. Reduce Batch Sizes and Manage WIP Limits
2. Customer Development
3. Learn to see Waste

I gave this talk at the Clayton Hotel on June 21 2012, at a Lean Startup Event organized by Enterprise Ireland and ITAG.

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  • 1. Lean at Cisco: LessonsLearned from Lean ProductDevelopment and Lean StartupKen PowerInternal Agile-Lean Coach/Consultant, Cisco SystemsThursday June 21, 2012Lean Startup Event Organized by Enterprise Ireland and ITAG© 2010 Cisco and/or its affiliates. All rights reserved. 1
  • 2. January 2008! December 2009! August 2010! June 2011! May 2012! Formal Agile Portfolio Transition Agile Office Culture and Management Ongoing Pilot Projects Program Established Mindset across the continuous Launched Business Unit improvement2008 2009 2010 2011 2012 2012+• First agile pilots • More Teams • Commitment to • Support teams in • Synchronize all • Create Flow• Agile Projects • Agile Program sustainable and innovating and products across through the• Organic Growth Management sustained agility developing the the BU Organization across the BU • System Wide • Broad processes that • Problem solving • Continue to Lead through ground- Focus Organization are right for them and obstacle through up pilot projects • Formal Training Focus • Expand adoption removal at an Innovation Plan • Focused across product org level • Focus on Teams Stakeholder areas • Organization and Culture • Formal Exec Support Engagement • Lean Startup Learning • Refine and • Closer Customer principles • Quantify and Improve • Broader Stakeholder Engagement • Improve reduce Technical • Build on Engagement • Investigate Lean capability of Debt Organization • Lean Thinking Startup organization • Agile Learning approaches • Develop Portfolio Architecture • Sustainable • Lean Principals Management • Eliminate Waste Organization Concepts © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2
  • 3. •  My day job Co-Founder, Agile Office at Cisco Internal Agile-Lean Coach/Consultant•  Extra-curricular activities Fellow of the Lean Systems Society (http://LeanSystemsSociety.org/) Award-winning publications in Agile and Lean product development Frequent speaker at major international Agile and Lean conferences Involved in organizing international Agile and Lean conferences Industry/academic collaborative research on Lean software development with Lero, UL, NUIG PhD research in Lean product development (NUIG) Agile-Lean Galway Meetup (http://www.meetup.com/Agile-Lean-Galway/) Blog: http://SystemAgility.com/© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3
  • 4. http://SystemAgility.com/publications/ http://SystemAgility.com/events/© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4
  • 5. The fallacies that cause delays, undermine quality, and raise costs D.#G.#Reinertsen,#“The$principles$of$product$development$flow$:$second$genera8on$lean$ product$development”.#Redondo#Beach,#Calif.:#Celeritas,#2009.# # # S.#Thomke#and#D.#Reinertsen,#"Six$Myths$of$Product$Development,"#Harvard#Business# Review,#vol.#90,#pp.#84G94,#May#2012#© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5
  • 6. # S.#Thomke#and#D.#Reinertsen,#"Six$Myths$of$Product$Development,"#Harvard#Business# Review,#vol.#90,#pp.#84G94,#May#2012#Myth 1 High utilization of resources and people will improve performance.Myth 2 Processing work in large batches improves the economics of the process.Myth 3 Our plan is great; we just need to stick to it.Myth 4 The sooner the project is started, the sooner it will be finished.Myth 5 The more features we put into a product, the more customers will like it.Myth 6 We will be more successful if we get it right the first time.© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6
  • 7. •  Lean Startups are based on three trends Use of free and open source software Application of agile software development methods Ferocious customer-centric rapid iteration, as exemplified by the Customer Development process•  Sometimes described as Lean Thinking applied to the entrepreneurial process•  Equally applicable to large organizations – different challenges http://theleanstartup.com/© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7
  • 8. •  Entrepreneurs are Everywhere http://theleanstartup.com/•  Entrepreneurship is Management•  Validated Learning•  Innovation Accounting•  Build-Measure-Learn !© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8
  • 9. © 2010 Cisco and/or its affiliates. All rights reserved. 9
  • 10. # S.#Thomke#and#D.#Reinertsen,#"Six$Myths$of$Product$Development,"#Harvard#Business# Review,#vol.#90,#pp.#84G94,#May#2012# Total Cost Optimal Batch Size Cost Holding Cost Transaction Cost Batch Size© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10
  • 11. # # S.#Thomke#and#D.#Reinertsen,#"Six$Myths$of$Product$Development,"#Harvard#Business# Review,#vol.#90,#pp.#84G94,#May#2012#© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11
  • 12. © 2010 Cisco and/or its affiliates. All rights reserved. 12
  • 13. Product Extended Customer TrialsEarlyCustomerEngagement © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 13
  • 14. © 2010 Cisco and/or its affiliates. All rights reserved. 14
  • 15. “  Views expressed by Tom & Mary Poppendieck and Taichi Ohno© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 15
  • 16. •  Extra Features•  Delays•  Handoffs•  Extra Processes / Relearning•  Partially Done Work•  Task Switching•  Defects•  Unused Employee Creativity© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 16
  • 17. “  James Womack© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 17
  • 18. “  Eric Ries, The Lean Startup. (page 274)© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 18
  • 19. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 19
  • 20. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 20
  • 21. “  Credo of the Lean Systems Society (http://leansystemssociety.org/credo/)© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 21
  • 22. •  Do not just focus on building great products or providing great services•  Focus on developing great people and building great teams•  Build great organizations that appeal to people’s sense of intrinsic motivation© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 22
  • 23. Thank you.

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