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http://senexrex.com
info@senexrex.com
@senexrex
Agile Base Patterns:
The Agile Way of Doing
Dan Greening dan@senexrex.com
Copyright 2015, Senex Rex LLC.
This work is licensed under a Creative Commons
Attribution-NoDerivatives 4.0 International License. 38
• Managing Director:
Senex Rex Agile Consulting
• Certified Scrum Coach (CSC)
• Head coach: Skype, Citrix Online
• Startup successes
• PhD, computer science, UCLA
Dan Greening
37
• Why did lean and agile methodologies arise?
• What patterns do they share and why?
• Why do organizations fail to sustain agility?
• What characteristics do agile managers share?
Agenda
36
Toyota
• JIT/lean manufacturing
• Continuous improvement
• Top-down alignment
• Collective responsibility
• Respect for people
Most profitable
Toyota vs GM
General Motors
• Forecast and inventory
• Contract-dictated actions
• Plant manager autonomy
• Role-based responsibility
• Class-based association
Bankrupt
35
Software Project Failures
Standish Chaos Report, 2011Charette, “Why software fails,” 2005
Year Company Description Failure cost Total for year
2005 Hudson Bay Co. [Canada] Problems with inventory system contribute to $33.3 million*loss. $33,300,000
UK Inland Revenue Software errors contributeto $3.45 billion* tax-creditoverpayment. $3,450,000,000 $3,483,300,000
2004 Avis Europe PLC [UK] Enterprise resource planning (ERP) system canceled after $54.5 million†is spent. $54,500,000
Ford Motor Co. Purchasing system abandoned after deploymentcosting approximately$400
million.
$400,000,000
J Sainsbury PLC [UK] Supply-chainmanagementsystem abandoned after deployment costing $527
million.†
$527,000,000
Hewlett-Packard Co. Problems with ERP system contribute to $160 millionloss. $160,000,000
AT&T Wireless Customer relations management (CRM) upgrade problems lead to revenue loss of
$100 million.
$100,000,000 $1,241,500,000
2002 McDonald’s Corp. The Innovate information-purchasingsystem canceled after $170 millionis spent. $170,000,000
Sydney Water Corp. [Australia] Billingsystem canceled after $33.2 million† is spent. $33,200,000
CIGNA Corp. Problems with CRM system contributeto $445 millionloss. $445,000,000 $648,200,000
2001 Nike Inc. Problems with supply-chain managementsystem contributeto $100 million loss. $100,000,000
Kmart Corp. Supply-chainmanagementsystem canceled after $130 millionis spent. $130,000,000 $230,000,000
2000 Washington, D.C. City payroll system abandoned after deploymentcosting $25 million. $25,000,000 $25,000,000
1999 United Way Administrativeprocessing system canceled after $12 millionis spent. $12,000,000
State of Mississippi Tax system canceled after $11.2 millionis spent; state receives $185 million
damages.
$196,200,000
Hershey Foods Corp. Problems with ERP system contribute to $151 millionloss. $151,000,000 $359,200,000
1998 Snap-on Inc. Problems with order-entrysystem contributeto revenue loss of $50 million. $50,000,000 $50,000,000
1997 U.S. Internal Revenue Service Tax modernizationeffort canceled after $4 billion is spent. $4,000,000,000
State of Washington Department of Motor Vehicle (DMV) system canceled after $40 millionis spent. $40,000,000
Oxford Health Plans Inc. Billingand claims system problems contributeto quarterly loss; stock plummets,
leading to $3.4 billion loss in corporate value.
$3,400,000,000 $7,440,000,000
1996 Arianespace [France] Software specificationand design errors cause $350 millionAriane 5 rocket to
explode.
$350,000,000
FoxMeyer Drug Co. $40 millionERP system abandoned after deployment, forcing company into
bankruptcy.
$40,000,000 $390,000,000
1995 Toronto Stock Exchange [Canada] Electronictrading system canceled after $25.5 million**is spent. $25,500,000 $25,500,000
1994 U.S. Federal Aviation Administration Advanced AutomationSystem canceled after $2.6 billionis spent. $2,600,000,000
State of California DMV system canceled after $44 millionis spent. $44,000,000
Chemical Bank Software error causes a total of $15 millionto be deducted from 100 000 customer
accounts.
$15,000,000 $2,659,000,000
1993 London Stock Exchange [UK] Taurus stock settlement system canceled after $600 million**is spent. $600,000,000
Allstate Insurance Co. Officeautomation system abandoned after deployment, costing $130 million. $130,000,000
London Ambulance Service [UK] Dispatch system canceled in 1990 at $11.25 million**; second attempt abandoned
after deployment, costing $15 million.**
$26,250,000
Greyhound Lines Inc. Bus reservation system crashes repeatedlyupon introduction,contributingto
revenue loss of $61 million.
$61,000,000 $817,250,000
1992 Budget Rent-A-Car, Hilton Hotels,
MarriottInternational, and AMR
[AmericanAirlines]
Travel reservation system canceled after $165 millionis spent. $165,000,000 $165,000,000
34
Agile organizations can
• Sense
• Adapt
• Create
faster than chaotic change
Why do we care?
Agility Defined
33
Chaos Creates Opportunities
Everyone’s ability to predict the future degrades exponentially with time
So create a company that exploits this chaos better than competitors
32
• Economics drive everything we do
• Economies produce value with limited resources
• Forces
• Success metrics lag the work
• Risk is rarely measured
• Creativity generates variation
Pattern 1: Fixed-budget creativity often fails…
31
• Identify top-level goals
• Align everyone else
• Find leading metrics
• Departments have their
own
…therefore, measure economic progress
Source: http://systemsthinking.org
30
• Balance metrics
• Evolve metrics
Avoid perversity
Source: http://systems-thinking.org
29
• Coherent company
• Mission, vision and goals
• Employee, team behavior
• If economy unchanging
• We react
• We learn
• We forecast
Result (measure economic progress)
28
• Measure economic progress
• Proactively experiment to improve
• Limit work in process
• Embrace collective responsibility
• Solve systemic problems
Agile Base Patterns: Are we agile?
27
• Complacency lulls us
• … we don’t hear a train
Pattern 2: Reacting is not enough …
26
• Experiment
• Brainstorm
• Test a hypothesis
• Control the experiment
• Evolve, but …
• test revolutionary theories too
• Beware variability control
• Can kill creativity
… therefore, proactively experiment
25
Scrum Retrospective = Experiment
24
Learn more: Seek 50% Invalidation
100% invalidated 100% validated
Where we learn the most
23
“Stretch goals” “Agile is for the team”
• Hyperproductive teams
• 40% higher quality
• 100% faster production
• Jakobsen and Sutherland, “Scrum and CMMI: Going from Good to Great,” 2009 Agile
Conference, IEEE.
• Organizations “disrupt themselves”
Result (Proactively Experiment)
22
• Measure economic progress
• Proactively experiment to improve
• Limit work in process
• Embrace collective responsibility
• Solve systemic problems
Agile Base Patterns: Are we agile?
21
• We feel better if everyone is busy
• Why can’t they get stuff done on time?
Pattern 3: Utilization creates delay…
20
Congestion
19
Creative focus
• We can remember
≤ 7±2 concepts
Cognition and Creative Focus
Source: Stanford University
18
• Geometric Backlogs
help make tradeoffs
• Incremental work
tests theories faster
…therefore, limit work-in-process
17
Limit WIP: Incremental Production
16
• Rapidly deliver small increments of value
• Possibility of rapid feedback
• Cancellable work (sunk cost is low)
• Learn faster than chaotic economy changes
• Manage # of options to match cognitive limits
Result (Limit WIP)
15
• Measure economic progress
• Proactively experiment to improve
• Limit work in process
• Embrace collective responsibility
• Solve systemic problems
Agile Base Patterns: Are we agile?
14
4: People create delay
by avoiding responsibility…
Source: Christopher Avery
Time
No problems get solved
until we take responsibility
13
• Provide people with…
• autonomy, understanding, authority
• Information radiators
• Teach Responsibility Process
• Seek faster responsibility
…therefore,
embrace collective responsibility
Wirksworth Town Cleanup 2009
12
• Greater elasticity
• In-team
• Collaborative problem solving
• Increased teaching and learning
Result (collective responsibility)
11
• Measure economic progress
• Proactively experiment to improve
• Limit work in process
• Embrace collective responsibility
• Solve systemic problems
Agile Base Patterns: Are we agile?
10
• Dependencies
• Make us wait
• Make us test more
• Handoff interference
• Even more delays
5: External factors limit our agility…
9
• Convert bosses to be agile
• Build collaborative teams of peer managers
• Manage strategic work with agile
• hiring, comp, review, M&A, etc.
• Ritualize and celebrate problem solving
• Analyze and change structural systems
• Lean Kanban, ToC, Dependency Mapping, A3
…therefore, solve systemic problems
8
Merge and/or Colocate to Speed Up
8
7
6
5
4
3
2
1
9
7
• Culture of problem solving
• Cross-department collaboration
• Faster organization
Result (solve systemic problems)
6
• Measure economic progress
• Proactively experiment to improve
• Limit work in process
• Embrace collective responsibility
• Solve systemic problems
Agile Base Patterns: Are we agile?
5
Agile Base Patterns Agility Lost
Measure progress Stopped measuring (agile for us, stretch goals)
Proactively experiment Discouraged experimentation (risk aversion)
Limit work in process No automation. Took on too much work
Collective responsibility Assigned responsibility
Solve systemic problems High territoriality
Why do organizations lose agility?
Misalignment of organizational and individual goals
4
What do agile managers do?
Agile Base Patterns Agile Managers
Measure progress Measure department’s service to customer
Proactively experiment Create low-risk experiments
Limit work in process Limit departmental work in process
Collective responsibility Embrace organizational responsibility
Solve systemic problems Teach, mentor, coach their skills
Top-Down Agile beats Bottom-Up
People working for an agile manager must become and sustain agility,
to realize the manager’s personal goals
3
http://senexrex.com/category/agile-base-patterns/
• measure economic progress,
• proactively experiment,
• limit work in process,
• embrace collective responsibility, and
• solve systemic problems.
References: Agile Base Patterns
2
http://senexrex.com/blog
Dan Greening
+1(415)754-8311
dan@senexrex.com
Sustained Agility
Services:
• Consultation
• Coaching
• Training
1

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Dan Greening, Шаблоны лидерства в Agile: The Agile Way of Doing

  • 1. http://senexrex.com info@senexrex.com @senexrex Agile Base Patterns: The Agile Way of Doing Dan Greening dan@senexrex.com Copyright 2015, Senex Rex LLC. This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License. 38
  • 2. • Managing Director: Senex Rex Agile Consulting • Certified Scrum Coach (CSC) • Head coach: Skype, Citrix Online • Startup successes • PhD, computer science, UCLA Dan Greening 37
  • 3. • Why did lean and agile methodologies arise? • What patterns do they share and why? • Why do organizations fail to sustain agility? • What characteristics do agile managers share? Agenda 36
  • 4. Toyota • JIT/lean manufacturing • Continuous improvement • Top-down alignment • Collective responsibility • Respect for people Most profitable Toyota vs GM General Motors • Forecast and inventory • Contract-dictated actions • Plant manager autonomy • Role-based responsibility • Class-based association Bankrupt 35
  • 5. Software Project Failures Standish Chaos Report, 2011Charette, “Why software fails,” 2005 Year Company Description Failure cost Total for year 2005 Hudson Bay Co. [Canada] Problems with inventory system contribute to $33.3 million*loss. $33,300,000 UK Inland Revenue Software errors contributeto $3.45 billion* tax-creditoverpayment. $3,450,000,000 $3,483,300,000 2004 Avis Europe PLC [UK] Enterprise resource planning (ERP) system canceled after $54.5 million†is spent. $54,500,000 Ford Motor Co. Purchasing system abandoned after deploymentcosting approximately$400 million. $400,000,000 J Sainsbury PLC [UK] Supply-chainmanagementsystem abandoned after deployment costing $527 million.† $527,000,000 Hewlett-Packard Co. Problems with ERP system contribute to $160 millionloss. $160,000,000 AT&T Wireless Customer relations management (CRM) upgrade problems lead to revenue loss of $100 million. $100,000,000 $1,241,500,000 2002 McDonald’s Corp. The Innovate information-purchasingsystem canceled after $170 millionis spent. $170,000,000 Sydney Water Corp. [Australia] Billingsystem canceled after $33.2 million† is spent. $33,200,000 CIGNA Corp. Problems with CRM system contributeto $445 millionloss. $445,000,000 $648,200,000 2001 Nike Inc. Problems with supply-chain managementsystem contributeto $100 million loss. $100,000,000 Kmart Corp. Supply-chainmanagementsystem canceled after $130 millionis spent. $130,000,000 $230,000,000 2000 Washington, D.C. City payroll system abandoned after deploymentcosting $25 million. $25,000,000 $25,000,000 1999 United Way Administrativeprocessing system canceled after $12 millionis spent. $12,000,000 State of Mississippi Tax system canceled after $11.2 millionis spent; state receives $185 million damages. $196,200,000 Hershey Foods Corp. Problems with ERP system contribute to $151 millionloss. $151,000,000 $359,200,000 1998 Snap-on Inc. Problems with order-entrysystem contributeto revenue loss of $50 million. $50,000,000 $50,000,000 1997 U.S. Internal Revenue Service Tax modernizationeffort canceled after $4 billion is spent. $4,000,000,000 State of Washington Department of Motor Vehicle (DMV) system canceled after $40 millionis spent. $40,000,000 Oxford Health Plans Inc. Billingand claims system problems contributeto quarterly loss; stock plummets, leading to $3.4 billion loss in corporate value. $3,400,000,000 $7,440,000,000 1996 Arianespace [France] Software specificationand design errors cause $350 millionAriane 5 rocket to explode. $350,000,000 FoxMeyer Drug Co. $40 millionERP system abandoned after deployment, forcing company into bankruptcy. $40,000,000 $390,000,000 1995 Toronto Stock Exchange [Canada] Electronictrading system canceled after $25.5 million**is spent. $25,500,000 $25,500,000 1994 U.S. Federal Aviation Administration Advanced AutomationSystem canceled after $2.6 billionis spent. $2,600,000,000 State of California DMV system canceled after $44 millionis spent. $44,000,000 Chemical Bank Software error causes a total of $15 millionto be deducted from 100 000 customer accounts. $15,000,000 $2,659,000,000 1993 London Stock Exchange [UK] Taurus stock settlement system canceled after $600 million**is spent. $600,000,000 Allstate Insurance Co. Officeautomation system abandoned after deployment, costing $130 million. $130,000,000 London Ambulance Service [UK] Dispatch system canceled in 1990 at $11.25 million**; second attempt abandoned after deployment, costing $15 million.** $26,250,000 Greyhound Lines Inc. Bus reservation system crashes repeatedlyupon introduction,contributingto revenue loss of $61 million. $61,000,000 $817,250,000 1992 Budget Rent-A-Car, Hilton Hotels, MarriottInternational, and AMR [AmericanAirlines] Travel reservation system canceled after $165 millionis spent. $165,000,000 $165,000,000 34
  • 6. Agile organizations can • Sense • Adapt • Create faster than chaotic change Why do we care? Agility Defined 33
  • 7. Chaos Creates Opportunities Everyone’s ability to predict the future degrades exponentially with time So create a company that exploits this chaos better than competitors 32
  • 8. • Economics drive everything we do • Economies produce value with limited resources • Forces • Success metrics lag the work • Risk is rarely measured • Creativity generates variation Pattern 1: Fixed-budget creativity often fails… 31
  • 9. • Identify top-level goals • Align everyone else • Find leading metrics • Departments have their own …therefore, measure economic progress Source: http://systemsthinking.org 30
  • 10. • Balance metrics • Evolve metrics Avoid perversity Source: http://systems-thinking.org 29
  • 11. • Coherent company • Mission, vision and goals • Employee, team behavior • If economy unchanging • We react • We learn • We forecast Result (measure economic progress) 28
  • 12. • Measure economic progress • Proactively experiment to improve • Limit work in process • Embrace collective responsibility • Solve systemic problems Agile Base Patterns: Are we agile? 27
  • 13. • Complacency lulls us • … we don’t hear a train Pattern 2: Reacting is not enough … 26
  • 14. • Experiment • Brainstorm • Test a hypothesis • Control the experiment • Evolve, but … • test revolutionary theories too • Beware variability control • Can kill creativity … therefore, proactively experiment 25
  • 15. Scrum Retrospective = Experiment 24
  • 16. Learn more: Seek 50% Invalidation 100% invalidated 100% validated Where we learn the most 23 “Stretch goals” “Agile is for the team”
  • 17. • Hyperproductive teams • 40% higher quality • 100% faster production • Jakobsen and Sutherland, “Scrum and CMMI: Going from Good to Great,” 2009 Agile Conference, IEEE. • Organizations “disrupt themselves” Result (Proactively Experiment) 22
  • 18. • Measure economic progress • Proactively experiment to improve • Limit work in process • Embrace collective responsibility • Solve systemic problems Agile Base Patterns: Are we agile? 21
  • 19. • We feel better if everyone is busy • Why can’t they get stuff done on time? Pattern 3: Utilization creates delay… 20
  • 21. Creative focus • We can remember ≤ 7±2 concepts Cognition and Creative Focus Source: Stanford University 18
  • 22. • Geometric Backlogs help make tradeoffs • Incremental work tests theories faster …therefore, limit work-in-process 17
  • 23. Limit WIP: Incremental Production 16
  • 24. • Rapidly deliver small increments of value • Possibility of rapid feedback • Cancellable work (sunk cost is low) • Learn faster than chaotic economy changes • Manage # of options to match cognitive limits Result (Limit WIP) 15
  • 25. • Measure economic progress • Proactively experiment to improve • Limit work in process • Embrace collective responsibility • Solve systemic problems Agile Base Patterns: Are we agile? 14
  • 26. 4: People create delay by avoiding responsibility… Source: Christopher Avery Time No problems get solved until we take responsibility 13
  • 27. • Provide people with… • autonomy, understanding, authority • Information radiators • Teach Responsibility Process • Seek faster responsibility …therefore, embrace collective responsibility Wirksworth Town Cleanup 2009 12
  • 28. • Greater elasticity • In-team • Collaborative problem solving • Increased teaching and learning Result (collective responsibility) 11
  • 29. • Measure economic progress • Proactively experiment to improve • Limit work in process • Embrace collective responsibility • Solve systemic problems Agile Base Patterns: Are we agile? 10
  • 30. • Dependencies • Make us wait • Make us test more • Handoff interference • Even more delays 5: External factors limit our agility… 9
  • 31. • Convert bosses to be agile • Build collaborative teams of peer managers • Manage strategic work with agile • hiring, comp, review, M&A, etc. • Ritualize and celebrate problem solving • Analyze and change structural systems • Lean Kanban, ToC, Dependency Mapping, A3 …therefore, solve systemic problems 8
  • 32. Merge and/or Colocate to Speed Up 8 7 6 5 4 3 2 1 9 7
  • 33. • Culture of problem solving • Cross-department collaboration • Faster organization Result (solve systemic problems) 6
  • 34. • Measure economic progress • Proactively experiment to improve • Limit work in process • Embrace collective responsibility • Solve systemic problems Agile Base Patterns: Are we agile? 5
  • 35. Agile Base Patterns Agility Lost Measure progress Stopped measuring (agile for us, stretch goals) Proactively experiment Discouraged experimentation (risk aversion) Limit work in process No automation. Took on too much work Collective responsibility Assigned responsibility Solve systemic problems High territoriality Why do organizations lose agility? Misalignment of organizational and individual goals 4
  • 36. What do agile managers do? Agile Base Patterns Agile Managers Measure progress Measure department’s service to customer Proactively experiment Create low-risk experiments Limit work in process Limit departmental work in process Collective responsibility Embrace organizational responsibility Solve systemic problems Teach, mentor, coach their skills Top-Down Agile beats Bottom-Up People working for an agile manager must become and sustain agility, to realize the manager’s personal goals 3
  • 37. http://senexrex.com/category/agile-base-patterns/ • measure economic progress, • proactively experiment, • limit work in process, • embrace collective responsibility, and • solve systemic problems. References: Agile Base Patterns 2

Editor's Notes

  1. If time, tell the story of the NUMMI plant