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What's this thing called "pull" - Mary Poppendieck


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What's this thing called "pull" - Mary Poppendieck

  1. 1. lsoftware development e a n What is this thing called Pull? An Inflection Point in the Way Things are Done Mary Poppendieck
  2. 2. Push From Forecast Video Cassette Plant – early 1980’s Pancake Coat Slit Pancake Wind Package Ship Pancake Chemicals Mix Parts Assemble Supplies MRP scheduled all purchases and sent orders to each workstation  Reliably shipped ~ 60% of weekly plan  Orders filled in ~ 6 weeks  A lot of expediting 2 September 10 Copyright©2010 Poppendieck.LLC l e a n “If only you would try harder to do what the schedule says….”
  3. 3. Pull From Demand Crisis at our Video Cassette Plant  Competition selling cassettes for less than we could make them Our Response  Statistical Analysis for Quality Improvement Immediate Results:  Just-in-Time (Lean) Production  95% of weekly plan  Orders filled in 2 weeks The Great Coffee Cup Simulation  No expediting Pancake Coat Slit Pancake Wind Package Ship Pancake Supplies Chemicals Mix 3 September 10 Parts Copyright©2010 Poppendieck.LLC l e a n Assemble
  4. 4. Preparation It’s Not Luck Years of Quality Improvement  Statistical Analysis System  QA moved to the production line  Stop-the-Line Attitude Months spent designing the details of a pull system  Designed by production workers  Pre-dated Just-in-Time consultants  Leadership through all levels of line management  The design process WAS the training The most critical factors?  Freedom to experiment at the local level  Deep engagement of every worker in the plant 4 September 10 Copyright©2010 Poppendieck.LLC l e a n  Ability to rapidly and easily adapt to problems
  5. 5. Strategic Inflection Point Business goes on to new heights Inflection Point 10x change in an element of the business. What worked before doesn’t work now. The executives are the last to know. Business declines 5 September 10 Copyright©2010 Poppendieck.LLC l e a n From: Only the Paranoid Survive, by Andy Grove,
  6. 6. Theory Any transition from Push to Pull will create an inflection point. Business goes on to new heights Inflection Point Transition from Push to Pull creates 10x change. What worked before doesn’t work now. The executives are the last to know. Business 6 September 10 Copyright©2010 Poppendieck.LLC l e a n declines
  7. 7. Software Development Inflection Points Version 1.0 – Contract Focus Version 2.0 – Development Focus Version 3.0* - Customer Focus  Processes and tools  Individuals and  Team vision and  Comprehensive interactions initiative documentation  Working software  Validated learning  Contract negotiation  Customer collaboration  Customer discovery  Following a plan  Responding to change  Initiating Change Inflection Point: Customer Pull 2000 2005 2010 2015 7 September 10 l e a n *Kent Beck, Startup Lessons Learned – April 23, 2010 Copyright©2010 Poppendieck.LLC
  8. 8. Understand the Job The purpose of a product is to make a job easier, cheaper, faster, more convenient, and/or give better results The development team must deeply understand the job and the value to be gained from doing the job in a new way. 8 Ethnography September 10 Copyright©2010 Poppendieck.LLC l e a n Ideation
  9. 9. Pull From Customer Value Not this: But this: P R I O R I T I Z E D ! Brilliant Systems are the result of a matching of mental models between those developing a system and those whose job will 9 be made easier by the system. September 10 Copyright©2010 Poppendieck.LLC l e a n
  10. 10. Case Study GE Healthcare “We realized that the biggest impediment was that we were selling what we were making [rather than] making what the customers here needed.”* The MAC-i: EKG’s for Rs 9 “Our engineering and marketing teams now interact closely with the customers here [in India] to understand their requirements. We look at their work flow, their environmental limitations, their profitability issues and The Vscan: $8000 Ultrasound unit other factors and we then price, design and manufacture the size of a mobile phone. Based on designs originating in China, it will revolutionize global healthcare. 10 September 10 Copyright©2010 Poppendieck.LLC l e a n the products accordingly”** **Ashish Shah, general manager, global technology, GE Healthcare *V. Raja, president and CEO of GE Healthcare-South Asia.
  11. 11. Build the Thing Right It’s Not Luck Basic Technical Disciplines: 1. Low Dependency Architecture 2. Coding Standards 3. Design/Code Reviews 4. Refactoring is a Habit 5. Source Control / Configuration Mgmt 6. Automated Unit Tests It’s Hard Work 7. STOP if the tests don’t pass 8. Continuous Integration 9. Automated Acceptance Tests 10. System Testing / UAT – early & often 11. Automated Release / Install Packages 12. Escaped Defect Analysis & Feedback 11 September 10 Copyright©2010 Poppendieck.LLC l e a n
  12. 12. Disruptive Technologies The question now really is: “Why isn’t all enterprise When I started Salesforce, software like Facebook? I asked the question: Version 3.0 “Why isn’t all enterprise software like Associated Press Marc Benioff Version 2.0 July 28, 2010 “Over the past four years, I have watched with “The fact is that because of the cloud, amazement the rise of Amazon Web Services. today a young upstart can take market What started out as a basic S3 storage service share without an incumbent having … has disrupted – and transformed – the entire time to react.” – Werner Vogles, technology landscape.” – Technology writer Om Malik 12 September 10 Copyright©2010 Poppendieck.LLC l e a n Werner Vogles
  13. 13. Preparation The OODA Loop* Act Observe Those who execute this loop fastest always win. Decide Orient 13 September 10 *Developed by John Boyd Copyright©2010 Poppendieck.LLC l e a n
  14. 14. Pull from Passion Remember the times when:  You are deeply engaged  Distractions disappear  Time evaporates This is called FLOW. Flow occurs when we are pulled by our passion:  To master a difficult challenge  To be a part of something 14 September 10 Copyright©2010 Poppendieck.LLC l e a n larger than ourselves
  15. 15. Motivation 3.0 Factors that Lead to Better Performance & Personal Satisfaction: Autonomy:  The desire to be self-directed. Mastery:  The urge to get better. Open Source Purpose:  “The impossible public good.”  Incredibly stable  The aspiration to make a  Impossibly complex  No monetary rewards or sanctions contribution to something  No central authority in the traditional sense 15 larger than ourselves. September 10 Copyright©2010 Poppendieck.LLC l e a n  This defies known social & economic theory  Why would people contribute?
  16. 16. Is Open An Inflection Source Point? Motivation 2.0 Motivation 3.0  Extrinsic motivation  Intrinsic motivation  Pay for time  Treat workers like volunteers Economics 2.0 Economics 3.0  The key scarcity which  The key scarcity is the time, energy & drives decisions is capital brainpower of bright, creative people Coordination 2.0 Coordination 3.0  Leaders direct followers  Leaders recruit followers  No option to opt-out  There is always an option to opt-out Complexity 2.0 Complexity 3.0  The plan-driven archetype  The evolution archetype  Centralization  efficiency 16 September 10 Copyright©2010 Poppendieck.LLC l e a n  Requisite variety  survival
  17. 17. Preparation: 1970: Jan Wallander became CEO Focus on profitability, not growth. Decisions devolved to branch managers: independent agents who make all decisions for their branch Small central staff that must sell services to branch managers Measurements: Cost-to-income ratio Income per employee Governance: Friendly competition among branch managers Company-wide profit sharing Result: 17 Top European bank that easily weathers economic storms September 10 Copyright©2010 Poppendieck.LLC l e a n
  18. 18. Preparation: A fundamental measure of our success will be the shareholder value we create over the long term. From the very beginning, our emphasis has been on the long term and as a result, we may make decisions and weigh tradeoffs differently than some other companies. We will continue to: Focus relentlessly on our customers. Make bold investment decisions in light of long-term leadership considerations rather than short-term profitability considerations. There is more innovation ahead of us than behind us, and to that end, we are committed to extending our leadership in e-commerce in a way that benefits customers and therefore, inherently, investors -- you can’t do one without the other. Some of these bold investments will pay off, others will not, but we will have learned a valuable lesson in either case. Work hard to spend wisely and maintain our lean culture. We understand the importance of continually reinforcing a cost-conscious culture. Focus on hiring and retaining versatile and talented employees, and weight their compensation to significant stock ownership rather than cash. We know our success will be largely affected by our ability to attract and retain a motivated employee base, each of whom must think like, and therefore must actually be, an owner. We are firm believers that the long-term interests of shareholders are tightly linked to the l e a n interests of our customers. If we do our jobs right, today’s customers will buy more tomorrow, we’ll add more customers in the process, and it will all add up to more cash flow and more long- term value for our shareholders. 18 September 10 Copyright©2010 Poppendieck.LLC
  19. 19. Preparation: 2004 Founders’ IPO Letter SERVING END USERS We founded Google because we believed we could provide an important service to the world-instantly delivering relevant information on virtually any topic. Serving our end users is at the heart of what we do and remains our number one priority. LONG TERM FOCUS As a private company, we have concentrated on the long term, and this has served us well. As a public company, we will do the same. In our opinion, outside pressures too often tempt companies to sacrifice long term opportunities to meet quarterly market expectations. RISK VS REWARD IN THE LONG RUN Our business environment changes rapidly and needs long term investment. We will not hesitate to place major bets on promising new opportunities. GOOGLERS Our employees, who have named themselves Googlers, are everything. Google is organized around the ability to attract and leverage the talent of exceptional technologists and business people. We have been lucky to recruit many creative, 19 September 10 l e a n principled and hard working stars. We hope to recruit many more in the future. We will reward and treat them well. Copyright©2010 Poppendieck.LLC
  20. 20. Business goes on What do these Companies to new heights have in Common? Inflection Point Business 1. Organize to be able rapidly recognize and declines quickly respond to strategic inflection points. 2. Focus on customer success, rather than company success. 3. Focus on attracting and engaging top people, rather than selecting and executing top projects. 4. Believe that shareholders are better served by a long term focus, even at the expense of quarterly results. 5. Believe that local decision-making is more important 20 than company-wide process standardization. September 10 Copyright©2010 Poppendieck.LLC l e a n
  21. 21. From To Update to Version 3.0 Economics 3.0 The coming scarcity: The time, energy & brainpower 3.0 of bright, creative people. Coordination 3.0 2.X Leaders attract followers. Wisdom is found at the worksite. Motivation 3.0 Complexity 3.0 Autonomy Independent agents make Mastery better decisions at scale. 21 Passion September 10 Copyright©2010 Poppendieck.LLC l e a n Evolve or die.
  22. 22. lsoftware development e a n Thank You! More Information: Mary Poppendieck