Dennis Stevens - Using Agile and Lean to Lead Business Transformation
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Dennis Stevens - Using Agile and Lean to Lead Business Transformation

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presented at Southern Fried Agile 2010.

presented at Southern Fried Agile 2010.
southernfriedagile.com

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  • IntroductionSituationInitial AssessmentIntroducing Kanban to the development organizationApproach to Achieving the Business ObjectiveIntroducing Kanban at the strategy execution levelCeremonies for the Strategy Execution KanbanResults of our effortApplication of Boyd’s O-O-D-A
  • merchandising offering went back in-house due to customer margin pressure and conflict of interest concerns; Remodeling and Construction were significantly down due to lack of investment by customers; leaving resets as the core business
  • Owners: Very successful entrepreneurs with deep understanding of the industry – innovative and strategic thinkersManagement: Tactically focused, in transition, stretched very thinLack clear line of site to their costs or economic drivers in this new business modelOut of necessity run the business on intuition and response to crisis Back office: Very hard working knowledgeable peopleOverall: Not a demonstrated history of getting ideas from concept to implementation
  • NPD has since moved to an online board – not visible on our board anymore.Switched payment for Defects from hours committed to hours moved to Done-DoneCore system WIP is limited from the strategy board – that’s nextBy the time the developers delivered anything – the business had moved on. Either solving it with a spreadsheet or deciding it wasn’t actually that important to fix. The problems would then reemerge later – repeating the same crisis over and over.
  • Create motivation for business to prioritize customer acceptance
  • Everything needed to be fixed. Within the timeframe we couldn’t fix the entire system – we need to focus on just the areas that we could change to achieve the strategy.
  • Notice the result of the A3 shows three key standards to get work done.Outcome – Deliverables in the context of the problem & prioritized (isn’t this what we want from the business?)Sequence – what order do they need to be doneTiming – When will it be done (can be assigned at the last responsible moment)Owner - Coordination
  • Notice the result of the A3 shows three key standards to get work done.Outcome – Deliverables in the context of the problem & prioritized (isn’t this what we want from the business?)Sequence – what order do they need to be doneTiming – When will it be done (can be assigned at the last responsible moment)Owner - Coordination
  • Notice the result of the A3 shows three key standards to get work done.Outcome – Deliverables in the context of the problem & prioritized (isn’t this what we want from the business?)Sequence – what order do they need to be doneTiming – When will it be done (can be assigned at the last responsible moment)Owner - Coordination
  • Notice the result of the A3 shows three key standards to get work done.Outcome – Deliverables in the context of the problem & prioritized (isn’t this what we want from the business?)Sequence – what order do they need to be doneTiming – When will it be done (can be assigned at the last responsible moment)Owner - Coordination
  • Today, the line managers are more interested because they need to move their card to execution – defects often still linger in acceptance.
  • Development and deployment was iterative. Basics in place at kick off. Continued to refine and deploy enhancements in flight. Despite lack solid engineering practices. Aggressively followed up daily on use of the system.The engagement has been extended and the contingency will be paid
  • We use social pressure to move work – and this is an improvement – but explicit commitments would be better.One department snuck in an enhancement as a bug fix that impaired our ability to get management information. We still have to reel in the business owners from time to time – old habits die hard.
  • OODAMilitary strategist Colonel John Boyd described the OODA loop for fighter pilots. It has since been applied to define the Marine Corps Doctrine in Maneuver warfare. Chet Richards applies it business strategy in Certain To Win. The primary concept is to expend the least resource to accomplish the next objective and to operate at a decision cycle faster than your competition can achieve. This allows you to go farther and faster than your competition.Unfortunately, it can not as simple as “observe, then orient, then decide, then act.” In fact such a sequential model would be very ponderous and would not well describe how successful competitors operate.The key to quickness turns out to be the two “implicit guidance and control” arrows at the top. In other words, most of the time people and groups do not employ the explicit, sequential O-to-O-to-D-to-A mechanism. Most of the time, they simply observe, orient, and act. There is data coming out to support this (see Gary Klein’s book, Sources of Power.)The question, of course, is, “What action?” A thinking opponent doesn’t provide us with a laundry list of his tactics so we can work out responses in advance. The mechanism which handles this uncertainty and makes the loop function in a real world situation is “Orientation.”As we suck in information via the “Observe” gateway, it may happen that we notice mismatches between our orientation and what we’re observing in the real world. If we don’t spot these mismatches and correct our orientation, the actions that flow from it may not be as effective as we intend. This can open up opportunities for our opponents. Boyd’s concept of strategy places heavy emphasis on attacking the other side’s orientation to open up just these kinds of opportunities, and he suggests many ways to do this.Note that “OODA” speed is quite different from the speed of our actions. Doing something dumb or irrelevant, but doing it at high speed, may not provide much of a competitive advantage.The “Decision/hypothesis” block is the learning part of the loop, where we experiment and in the process add new actions to the Implicit Guidance and Control link. You can also think of it as programming orientation for future intuitive actions.

Dennis Stevens - Using Agile and Lean to Lead Business Transformation Dennis Stevens - Using Agile and Lean to Lead Business Transformation Presentation Transcript

  • Executing Strategy as a Competitive Advantage:Beam Team Case Study
    Using Lean and Agile
    to Lead
    An Organizational Transformation
  • Dennis StevensEnterprise Agile Coach
    Contributed / Featured
    Portfolio, Program, Project
    PMI: OPM3
    Aligning Technology with the Business ModelThe Next Revolution in Productivity
    web: http://www.synaptus.com
    blog: http://www.dennisstevens.com
    twitter: @dennisstevens
    email: dennis.stevens@synaptus.com
    Scaling Agile Development
    Rethinking the Agile Enterprise
    Cost Cutting and Innovation
    re-th!nk
  • Organizational Transformation
    “In the long history of humankind (and animal kind, too) those who learned to collaborate and improvise most effectively have prevailed” – Charles Darwin
  • Organizational Transformation
    Why is organizational transformation difficult?
    Differentiate between all the “improvement” requirements to move the company towards it’s strategy?
    How do I solve problems in complex situations?
    How do I keep everyone focused on making progress?
    Case Study – The Beam Team
  • Different Perspectives – Competing Concerns
    The Blind Men and The Elephant
  • Long Obscure Roadmaps
  • Unsuitable Problem Solving Approach
    Customers
    People
    Process
    Business
    Technology
    Whose job will this be?
    Where should we put the servers?
    What is needed to achieve our business goals?
    What are the business rules?
    How will we validate everything?
    What is the right process?
    How will we account for this?
    What do the customers and end-users want?
    How does this interact with the other parts of the system?
    Conversation
  • Lack of focus
  • Case Study: Situation
    $100 million retail service provider
    The economy and regulatory changes has drastically reduced core business
    They have just acquired a company of equivalent size
    The entire business focus was in an area that is not traditionally profitable – and the business processes and technology were not optimized to perform resets
  • Initial Findings: Organization
    Owners: Entrepreneurs – Six Brothers
    Management: Tactically Focused – Rose through the ranks
    Back office: Hardworking and committed
    Overall: Not a demonstrated history of getting ideas from concept to implementation
  • Initial Findings: Technology
    40% of technology developed over four years had not been deployed in the business
    Swivel Chair Integration
    Little useful management information
    Turmoil in technology organization
  • Approach
    Two prong approach
    Get development under control
    Identify and deploy a focused set of changes in the business
    Deliver results really fast so company survives
  • Approach: Get Technology Under Control
    Established Kanban board for development - visualized their process and all the existing work
    Established three classes of service based on source of funding
    Explicitly limited WIP
    Major bottleneck was in customer acceptance
    Next Analysis Development Acceptance “Done-Done”
    NPD
    Enhance
    Core System
    Enhancex of 40
  • Refactoring the Development Board
  • Approach: Business
    Differentiate between all the “improvement” requirements to move the company towards it’s strategy
    We needed to create alignment and focus in a time of rapid shift, turmoil, and duress
  • Approach: Business
    Analyze business model to identify capabilities
  • Approach: Business
    Facilitated Strategy Articulation
    based on Strategic Goals, COGS model and SWOT analysis
  • Approach: Business
    Assess the Capabilities
    Value (border)
    How strongly does this affect focusing objectives?
    How strongly does this affect standard operating objectives?
    Is this value-added?Supporting? Controlling?
    Performance (fill)
    How is this capability performing today?
    Would a small improvement here improve BT bottom line performance?
    Do we understand how to improve performance?
    Risk (dot)
    How difficult is this capability to scale (for CR1)?
    Is this constrained by Customer (HD) policy?
    Is the process complex? Highly dependent on other capabilities? Subject to compliance issues?
    Verb Noun(Action – Entity)
    KEY
    High Value
    Medium Value
    Low Value
    Low Performing
    Medium Performing
    High Performing
    High Risk
    Moderate Risk
    Low Risk
  • Capability Value Performance Map
  • Assess the model
    Capability Map gave us clarity on what the business did.
    Assessing the model determined what was most important to the business.
    The business was aligned with the outcome because they developed it.
  • Approach: Business
    Performed information flow analysis against current systems and processes
    Six systems and over a dozen spreadsheets
    Swivel Chair Integration
  • Approach
    From our assessments we knew precisely what capabilities we needed to change and what processes and technology were employed in each capability
    Our strategy was clear and there was a shared context within the business
    Have combined different perspectives and competing concerns
    Have a clear near term road-map
  • Approach: Strategy to Execution
    Bring together the Business and Technology in A3 efforts focusing on the leverage point capabilities
    Facilitate discussion to align what we could rapidly deliver with needs of impacted management and performers
    What is our target? What are the capability gaps relative to the strategy?
    What is the root cause? Five why’s – not granular 6 Sigma effort.
    Evaluate Solutions
    High Level Deliverables on the Implementation Plan
    Assign Owners and Target Due Dates
    High level deliverables end up on the A3, with measurable outcomes, in the context of the strategy, and with the impacted capabilities clearly identified.
  • An A3 Plan: Strategy to Execution
  • An A3 Plan: Strategy to Execution
  • An A3 Plan: Strategy to Execution
  • An A3 Plan: Strategy to Execution
  • Now the big challenge
    Execute the Strategy
    How can we get management to maintain focus?
    Technology is a small component of the solution - how can we rapidly get stable process changes in place across HR, the field, accounting, and operations?
    How can we get technology deployed so that the business realizes the value?
  • Strategy Execution Kanban Board
    Expand / collapse tasks from the plan in each column
    Next Analyze Prepare Execute Measure
    Expedite
    AcceptanceCriteria
    AcceptanceCriteria
    AcceptanceCriteria
    AcceptanceCriteria
    Development is fed stories based on active tasks in the prepare column
  • Strategy Execution Kanban
  • Ceremonies
    Walk the board with management once a week.
    Blocked items are flagged with a red tab with a note of who needs to unblock it.
    Management follows up (some actually do) with their line managers from their A3s.
    There is a lot of focus on getting stories on the technology board through acceptance now.
    We have an expedite column on the management board. We limit crisis to one at a time. Board ensures current projects maintain (regain) focus.
  • Results
    Achieved focus across the business
    Reduction in the crisis management tendency
    Technology deployed on time – continued to refine and deploy enhancements in flight
    Delivered the performance based incentive model
    Provide field management with real time status against their plan
    Trust has been established between us (effectively the technology group and PMO) and the business
    Strategy deployment model in place in the business
  • Success Attributed To
    Visual control of the Kanban board
    Focus
    Momentum
    Shared Alignment
    Visual nature of the strategy articulation
    Decisions by developers and management are made in a shared strategic context
    Collaborative nature of the capability map, A3, and the Kanban board
    Shared understanding
    Participative design
    Accountability
    Rapid maturing of the organization regarding strategy execution
    Courage and commitment of the Beam Team leadership
  • Improvements
    Replace less effective legacy weekly management meetings – right now these are duplicate efforts
    Track commitment dates of tasks on the board.
    Prioritize defects against the capability model. Not every fix is equally important – this is a hole in the process that permits gaming.
    More sustained discipline around use of A3’s and the Kanban board.
    Gather metrics and use them to improve the processes
  • Time as a Strategic DifferentiatorThe new Bargain of Agility
    The primary concept of the new Bargain of Agile is to expend the least resource possible to exploit the next most valuable opportunity.
    Observe
    Orient
    Decide
    Act
    Unfolding circumstances
    Implicit guidance and control
    Implicit guidance and control
    Understand
    Culture
    Tradition
    New Information
    Previous Experience
    Synthesis
    Action
    (Test)
    Observations
    Feed
    Forward
    Feed
    Forward
    Decision
    Feed
    Forward
    Outside information
    Feedback
    Unfolding interaction with the environment
  • Questions
    Reach out to Dennis Stevens
    http://www.synaptus.com
    dennis.stevens@synaptus.com
    Twitter: dennisstevens
    Blog: www.dennisstevens.com
    We offer
    Strategic Project Execution
    Value Stream Mapping for Knowledge Work
    Agile Enterprise Transformation
    Kanban / Agile Project Management
    Strategic Backlog Management
    Affiliations
    Associate in David J Anderson and Associates
    http://www.djandersonassociates.com/
    Pillar Technologies for Agile Software Development
    http://www.pillartechnologies.com
    Matt-5:13