Limited WIP Meeting presentation - The Phoenix Project book review

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London Limited WIP community meeting in October. A review of a great book "The Phoenix Project".

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Limited WIP Meeting presentation - The Phoenix Project book review

  1. 1. The Phoenix Project: A Novel About IT, DevOps, and Helping Your Business Win.
  2. 2. Poll ● ● ● How many have read “The Phoenix Project”? What is the cycle time in your org from code to production? How many of you have Ops represented in Dev teams? – How long has Ops people been embedded in Dev teams?
  3. 3. Who is here today? ● Why are you here? – Name – Company – Role – Interest in book / event / Limited WIP – What do you want to get out of tonight?
  4. 4. My Objective ● Get more people to read “The Phoenix Project” – ● Provide some thinking tools and references – ● Make a difference to more people Speed up your learning and adoption Learn from you and your experiences
  5. 5. Why is this important? High Performing DevOps Teams ● They’re more agile – – ● 30x more frequent deployments 8,000x faster cycle time than their peers They’re more reliable – 2x the change success rate – 12x faster MTTR ● MTTR = Mean time to Restore/Repair/recovery Source: Puppet Labs 2012 State Of DevOps: http://puppetlabs.com/2013-state-of-devops-infographic
  6. 6. 7
  7. 7. Buzz about book first caught my attention
  8. 8. Top 100 Books ● ● http://www.noop.nl/2013/08/top-100-agile-books -edition-2013.html
  9. 9. What does Gene Kim Say about the book? ● http://www.youtube.com/watch?v=FpEd-QKVIrw 5 min
  10. 10. The Phoenix Project - The Authors ● Gene Kim – ● George Spafford – ● Gene Kim is a multiple award-winning entrepreneur, the founder and former CTO of Tripwire and a researcher. He is passionate about IT operations, security and compliance, and how IT organizations successfully transform from “good to great”. George is an author and speaker, consulting and conducting training on strategy, IT management, information security and overall service improvement in the U.S., Canada, Australia, New Zealand and China. Co-author of “The Visible Ops Handbook” and “Visible Ops Security,” George is a certified ITIL Expert, TOCICO Jonah and a Certified Information Systems Auditor (CISA). Kevin Behr – Kevin Behr is the founder of the Information Technology Process Institute (ITPI) and the CTO of Assemblage Pointe. Kevin has twenty years of IT management experience and is a mentor and advisor to Chief Executive Officers and Chief Information Officers.
  11. 11. Book Introduction ● ● ● ● Bill is an IT manager at Parts Unlimited. It’s Tuesday morning and on his drive into the office, Bill gets a call from the CEO. The company’s new IT initiative, code named Phoenix Project, is critical to the future of Parts Unlimited, but the project is massively over budget and very late. The CEO wants Bill to report directly to him and fix the mess in ninety days or else Bill’s entire department will be outsourced. With the help of a prospective board member and his mysterious philosophy of The Three Ways, Bill starts to see that IT work has more in common with manufacturing plant work than he ever imagined. With the clock ticking, Bill must organize work flow streamline interdepartmental communications, and effectively serve the other business functions at Parts Unlimited. In a fast-paced and entertaining style, three luminaries of the DevOps movement deliver a story that anyone who works in IT will recognize. Readers will not only learn how to improve their own IT organizations, they’ll never view IT the same way again.
  12. 12. Cast at Parts Unlimited ● Parts Unlimited: Business Executives – – Dick Landry, CFO – Sarah Moulton, SVP of Retail Operations – Maggie Lee, Senior Director of Retail Program Management – Bill Palmer, VP of IT Operations , former Director of Midrange Technology Operations – Wes Davis, Director of Distributed Technology Operations – Brent Geller, Lead Engineer – Patty McKee, Director of IT Service Support – John Pesche, Chief Information Security Officer (CISO) – ● Steve Masters, CEO, acting CIO Chris Allers, VP of Application Development Parts Unlimited: Board – Bob Strauss, Lead Director, former Chairman, former CEO – Erik Reid, Board Candidate – Nancy Mailer, Chief Audit Executive
  13. 13. Why a novel? ● ● ● ● Who has read “The Goal”? Storytelling Is The Most Effective Means Of Creating A Shared Understanding The pattern is everywhere: The core of the solution-selling, good copy-writing and the best TED talks: Describe the problem, show its significance, describe how the problem is solved and the value it will creates. Storytelling becomes very important when the problem we’re trying to point out is not fully recognized, or when the solution being proposed flies in the face of common wisdom. http://itrevolution.com/learn-more-about-concepts-in-phoenix-project/ http://www.youtube.com/watch?v=oP3c1h8v2ZQ
  14. 14. C 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 P % 15 4% 25 7% 36 11% 47 14% 62 18% 74 22% 84 25% 94 28% 104 31% 111 33% 119 35% 125 37% 138 41% 146 43% 154 46% 166 49% 177 52% 182 54% 188 56% 203 60% 216 64% 223 66% 233 69% 238 70% 246 73% 255 75% 264 78% 273 81% 282 83% 293 87% 299 88% 307 91% 314 93% 321 95% 328 97% Story Time 02 Sep 02 Sep 02 Sep 03 Sep 04 Sep 05 Sep 05 Sep 08 Sep 09 Sep 11 Sep 11 Sep 12 Sep 15 Sep 16 Sep 17 Sep 18 Sep 22 Sep 23 Sep 23 Sep 26 Sep 26 Sep 29 Sep 07 Oct 11 Oct 14 Oct 17 Oct 21 Oct 27 Oct 03 Nov 03 Nov 03 Nov 10 Nov 11 Nov 28 Nov 09 Jan Time Line Problems
  15. 15. How to create a “Problem”? http://www.coso.org/documents/coso_erm_executivesummary.pdf http://www.youtube.com/watch?v=b7JldvsY7Ac The ERM framework by the Commission of Sponsoring Organizations of the Treadway Commission (COSO) provides a more disciplined and consistent standard against which to implement and assess a company’s ERM program.
  16. 16. Strategy ● Strategy: as embodied by the Phoenix Project, which the entire future of the company depends upon. It requires that IT be a core competency.
  17. 17. Reporting ● Accurate financial reporting: as embodied by the third year repeat audit findings around the IT general controls, but also the loss of accounts payable and inventory management systems which prevents the closing the financial books at the end of quarter. Even the payroll failure resulted in inaccurate payroll numbers, which led to financial reporting errors.
  18. 18. Compliance ● Compliance with laws and regulations (e.g., SOX-404, PCI DSS): failing the SOX-404 audit results in an adverse footnotes by the external auditor in the SEC 10-K statement, and there are grave implications for failing the PCI DSS assessment.
  19. 19. Operations ● ● Operations (e.g., IT application and project delivery, IT operations, information security) The Project Phoenix was $20 million overbudget and three years late, and when it finally was deployed into production, everyone would have been better off it hadn’t. Furthermore, virtually all of the critical business systems that run daily operations require that IT services be running correctly, which they often weren’t.
  20. 20. Generic problems – Downward Spirals ● Fragile artefacts become more fragile ● Technical debt grows ● ● ● ● Date-driven application projects focus only on features, sacrificing non-functional requirements, which results in more fragile artifacts in production Application deployment take longer, more difficult, getting gets worse IT Ops is stuck fire fighting and therefore cannot do preventive work or new projects Long feature delivery cycle times result in more political decision making, meaning more focus on features (vs. non-functional requirements)
  21. 21. Hand out time line
  22. 22. Breakthrough 1 - 3 ● ● ● Breakthrough 1: discovering too much WIP in IT Operations and gob-smacking amounts of reliance on Brent for both project and recovery work Breakthrough 2: elevating preventive work to prevent unplanned work (especially for Brent) and making work visible Breakthrough 3: throttling the flow of work into IT Operations by the project freeze (subordinate)
  23. 23. Breakthrough 4 - 6 ● ● ● Breakthrough 4: identifying and limiting the flows of work to Brent (it was genuinely surprising to find out after the fact at how much this resembles the green/red tag pattern used in “The Goal”) Kanban Board Breakthrough 5: documenting and defining standardized work, and managing handoffs to reduce time spent in queue (through use of kanbans), and further reducing reliance on Brent Breakthrough 6: correctly identifying reliance on IT systems to hit Dick’s corporate objectives (via Gartner RVM model) and correctly scoping audit and infosec (via GAIT and GAIT-R)
  24. 24. Breakthrough 7 & 8 ● ● Breakthrough 7: building DevOps flow of work to better design in non-functional requirements in Dev, reduce batch sizes and enable single-piece flow through Development and IT Operations and better enable operational resilience (replicating the work described by Jez Humble, David Farley, Paul Hammond and John Allspaw) Breakthrough 8: when they discover the constraint moves outside the organization, they bring back those resources inhouse (replicating one of my favourite Theory of Constraints plays: when there’s idle plant capacity, it’s often cheaper to fabricate parts in-house than to pay a supplier. Lovely.)
  25. 25. 4 types of work ● Business project work, ● IT project work, ● changes and ● unplanned work.
  26. 26. Thee Three Ways ● Way No. 1: The flow ● Way No. 2: Consistent feedback ● Way No. 3: Continual learning Page 99 – Erik Introduces the concept. Page 297 – Bill learns how important The Three Ways are. “But I learned that the practices that Allspaw and Hammond espoused are the inevitable outcome of applying the Three Ways to the IT value stream. It totally changed how we managed IT and it saved our company. “How did they do it?” I ask, dumbfounded.”
  27. 27. Way No. 1: The flow 1. Understand the flow of work. ● Without understanding, any changes will have random effects. 2. Always increase the flow 3. Never pass on defects downstream 4. Never allow local optimization to cause global degradation 5. Achieve profound understanding of the entire system
  28. 28. Way No 2: Consistent Feedback ● ● Understand and respond to the needs of all customers, both internal and external. Shorten and amplify all feedback loops. – ● Create quality at the source. – ● Kim said this rule is modelled after the Toyota Lean manufacturing line, where any employee can stop the line immediately if they see any defect. This means pro-actively building quality into everything. There's no need for developers to rely on QA to find their errors. Create and embed knowledge where we need it.
  29. 29. Way No. 3: Continual learning ● ● ● Create a culture that encourages experimentation Learns from failure Recognizes repetition as the prerequisite to mastery
  30. 30. Thanks ● Thanks Barclays Bank for providing the venue ● Thanks to the authors of “The Phoenix Project” ● Thanks for your participation
  31. 31. References ● http://itrevolution.com/learn-more-about-concepts-in-phoenix-project/ ● http://itrevolution.com/a-personal-reinterpretation-of-the-three-ways/ ● Free 170 page excerpt:http://itrevolution.com/the-phoenix-project-excerpt/ ● ● http://slideshare.net/realgenekim ● TOCICO http://www.tocico.org ● Dr Holt's TOC courses at Washington State University – http://public.wsu.edu/~engrmgmt/holt/WSU-TOC-Flyer-Web.htm

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