Lean Adaptive Management @ LKBE2011

Lean adaptive
management
Lean & Kanban Benelux 2011
Patrick Steyaert
October 2011

Patrick.steyaert@teamprosource.eu
Twitter: @PatrickSteyaert

www.TeamProsource.eu
www.TeamProsource.eu

Quiz …
Further fill in your CEO’s shopping list:

1.  Higher quality

2.  Higher throughput

3.  Shorter lead and cycle times

4.  <<fill in>>

5. 

6. 

Lean & Kanban Benelux 2011 www.TeamProsource.eu 2

Our purpose is to deliver value

Value should at least be understood in the
same level of detail as effort and cost*

*Freely quoted from “Waltzing With Bears: Managing Risk on
Software Projects”, Tom DeMarco & Timothy Lister


Scale (in)variance
Mathematics Reality


Case
•  Developing and delivering software
applications in regulated domain

•  Management and development distributed
over locations in Europe

•  Part of an international group

•  Leader in an international market


Complex challenges
The organization is faced with complex challenges in its product
engineering and development process:
–  delivering on time and with the right quality
–  product development as well as custom projects
–  a complex and changing business domain (many codes and norms)
–  uncertainty about user needs and market opportunities
–  complexities of a function oriented, geographically distributed, organisation
(product engineering versus product development)
–  technological complexity
–  substantially re-engineer the product at the same time keep on delivering
new functionality at a high pace


Organization
Management

CT1
SE SE SE SE

CT2

CT3
Product
Mgmt. QA
SW development
360° Improvement Case www.TeamProsource.eu 7

The end-to-end value stream

Narratives Models Product in use

Idea Condept Requirement Verification Validation Implemented

Concepts Product in development

The end-to-end value stream – in practice




Kanban

Kanban
•  Visualize the workflow
•  Limit WIP
•  Manage Flow

•  Make Process Policies
Explicit

•  Improve Collaboratively
(using models & the
scientific method)

Source of confusion
Change-the-business Run-the-business
In an emergent market In the core market

Value is speculative Value is clear (smaller
(large but uncertain) but certain)

Start with low quality No less than highest
but prepare to grow quality standards


Being on the edge
Value
maximization

Value
renewal


Emergent Extension
Large potential (uncertain) Return and investment with
return, incremental assessable risk
investment

14

Novel / Sensitive Enhancement
Large upfront investment with Small investment with small
uncertain returns return

Lean & Kanban Benelux 2011 www.TeamProsource.eu www.cognitive-edge.com

Different risk profiles
High
e.g. novel Novel
market

Uncertainty
about value
Enhance
ment
Low
e.g. existing
market Low High
e.g. fits within current e.g. challenges
architecture current architecture

Uncertainty about capabilities

Emergent Extension
Cumulate success Managing the risk

16

Novel / Sensitive Enhancement
Cascading failure repeated and increasingly
efficient delivery of quality


Challenges for enhancements

One routine project does not make a
success, it is the repeated and
increasingly efficient delivery of
quality that makes a success


Challenge for extensions

Identifying risk removing risk producing value


Challenge for emergent projects

Creating
cumulative
success


Challenge for sensitive projects

Cascading failure

Lean & Kanban Benelux 2011
www.TeamProsource.eu 20

Adaptive management

Every project is unique …

… but some are more
unique than others!


How do we discover and
deliver value?


The end-to-end value stream

Discovery Kanban Delivery Kanban
•  Visualize the flow of •  Visualize the workflow
options Product in use
Narratives Models
•  Ensure minimal options •  Limit WIP
•  Manage Flow •  Manage Flow

•  Make Process Policies •  Make Process Policies
Explicit Explicit
•  Improve Collaboratively
(using models & the •  Improve Collaboratively
scientific method) (using models & the
scientific method)

Linear flow
•  When discovery precedes delivery
–  The user is engaged at the beginning and at the end
–  The needs are discovered at the start and the results of the
project are delivered at the end

DISCOVERY DELIVERY

Verified Validated Implemented
Request Option Requirement solution solution solution


Iterative flow
•  When discovery and
delivery are intertwined
–  The user is continuously
involved in the project Implemented
solution Idea

–  The needs are
discovered iteratively and Validated
Concept
project results are also solution

delivered iteratively
–  Risks are managed and Verified
solution Requirement

benefits are realised
incrementally during the
project


Lean adaptive management
Iterative

Emergent Iterative discovery Product in use

Level of iteration
Extension Iterative development Product in development

Enhancement Small batch linear Feature>Feature>Feature

Sensitive Large batch linear Narrative>Model>Product

Linear


How do we organize?


Entrepreneurial Project
culture management
culture
28

High reliability High
culture maturity
culture


Lean adaptive management
•  End-to-end flow
–  Create flow in the end-to-end
value stream (Delivery +
Discovery)

•  Tailored project
management
–  Differentiate between the need for
linear workflow and iterative
workflow

•  Ambidexterity
–  Integrate different cultures in the
organization


www.teamprosource.eu

THANK YOU
Do you want to be kept informed?
http://www.kanbanforprojects.eu/

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Lean Adaptive Management @ LKBE2011

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