Presentation Lean adaptive management @ Lean & Kanban Benelux 2011


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Lean Adaptive Management - Achieving complex business goals with end-to-end flow, tailored project management and organizational maturity -

"Some organizations work in a simple, stable business environment with simple, stable and consistent business goals. Other organizations have to deal with a complex, fast changing business environment where business goals may be contingent or even contradictory. In this workshop we explore how our current models for improvement are well equipped for simple and stable business environments but fail to cope with the complexities of today’s fast changing business. We discuss how we need to move beyond the current single- and multi-model improvement theory towards a thorough understanding of complex business challenges and situational improvement based on lean adaptive principles.

We discuss the case of a software product company that is faced with complex – and possibly contradictory – business challenges. A previous improvement initiative based on CMMI and Scrum did measurably improve the process of the development group but – as seems to be so often the case - failed to go beyond a local one-shot point improvement:

1) it did not sufficiently involve upstream and downstream stakeholders such as product management and support (and ultimately the customers and users);
2) it did not sufficiently differentiate between different kinds of developments leading to one-size-fits-all processes that actually fit no development very well;
3) it did not provide the insight to take on complex business challenges.

In order to tackle the above issues we decided to work on three fronts at the same time:

1. End-to-end flow (lean): Use Kanban to create flow in the end-to-end value stream starting from initial ideas up until actual implementation. The end-to-end-flow takes into account both value discovery (understanding the value) and value delivery (delivering the value).
2. Tailored project management (adaptive): Use a sense-making framework (based on Cynefin) to differentiate between developments where the value is clear enough to go almost directly into value delivery (linear flow), and developments where the value uncertainty mandates iteration between value discovery and value delivery (iterative flow).
3. Organizational maturity (management): Create a continuous improvement culture that works both bottom-up and top-down. Use Kanban to create a continuous improvement and high-maturity culture from the bottom-up. Use CMMI appraisals as a yardstick to measure organizational progress top-down in order to avoid that local improvements get stuck locally. And most of all, use tailored project management to simultaneously manage bottom-up and top-down improvements to match complex business goals.

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Presentation Lean adaptive management @ Lean & Kanban Benelux 2011

  1. 1. Lean adaptive management<br />Lean & Kanban Benelux 2011<br />Patrick Steyaert<br />October 2011<br /><br />Twitter: @PatrickSteyaert<br />
  2. 2. Quiz …<br />Further fill in your CEO’s shopping list:<br />Higher quality<br />Higher throughput<br />Shorter lead and cycle times<br /><<fill in>><br />Lean & Kanban Benelux 2011<br />2<br />
  3. 3. Our purpose is to deliver value<br />Value should at least be understood in the same level of detail as effort and cost*<br />Lean & Kanban Benelux 2011<br />3<br />*Freely quoted from “Waltzing With Bears: Managing Risk on Software Projects”, Tom DeMarco & Timothy Lister<br />
  4. 4. Scale (in)variance<br />Lean & Kanban Benelux 2011<br />4<br />Mathematics<br />Reality<br />
  5. 5. Case<br />Developing and delivering software applications in regulated domain<br />Management and development distributed over locations in Europe<br />Part of an international group<br />Leader in an international market<br />Lean & Kanban Benelux 2011<br />5<br />
  6. 6. Complex challenges<br />The organization is faced with complex challenges in its product engineering and development process:<br />delivering on time and with the right quality<br />product development as well as custom projects <br />a complex and changing business domain (many codes and norms)<br />uncertainty about user needs and market opportunities <br />complexities of a function oriented, geographically distributed, organisation (product engineering versus product development)<br />technological complexity<br />substantially re-engineer the product at the same time keep on delivering new functionality at a high pace<br />Lean & Kanban Benelux 2011<br />6<br />
  7. 7. Organization<br />360° Improvement Case<br />7<br />CT1<br />Management<br />SE<br />SE<br />SE<br />SE<br />CT2<br />SW development<br />QA<br />CT3<br />ProductMgmt.<br />
  8. 8. The end-to-end value stream<br />Lean & Kanban Benelux 2011<br />8<br />Product in use<br />Narratives<br />Models<br />Implemented<br />Condept<br />Requirement<br />Verification<br />Validation<br />Idea<br />Product in development<br />Concepts<br />
  9. 9. The end-to-end value stream – in practice<br />Lean & Kanban Benelux 2011<br />9<br />Product in use<br />Narratives<br />Models<br />Implemented<br />Condept<br />Requirement<br />Verification<br />Validation<br />Idea<br />Product in development<br />Concepts<br />
  10. 10. Kanban<br />Lean & Kanban Benelux 2011<br />10<br />Kanban<br /><ul><li>Visualize the workflow
  11. 11. Limit WIP
  12. 12. Manage Flow
  13. 13. Make Process Policies Explicit
  14. 14. Improve Collaboratively (using models & the scientific method)</li></ul>Product in use<br />Narratives<br />Models<br />Condept<br />Requirement<br />Verification<br />Validation<br />Product in development<br />Concepts<br />
  15. 15. Lean & Kanban Benelux 2011<br />11<br />
  16. 16. Source of confusion<br />Lean & Kanban Benelux 2011<br />12<br />Run-the-business<br />Change-the-business<br />In an emergent market<br />Value is speculative (large but uncertain)<br />Start with low quality but prepare to grow<br />In the core market<br />Value is clear (smaller but certain)<br />No less than highest quality standards<br />
  17. 17. Being on the edge<br />Value maximization<br />Value renewal<br />Lean & Kanban Benelux 2011<br />13<br />PDCA<br />OODA<br />
  18. 18. value<br />14<br />Lean & Kanban Benelux 2011<br />Extension<br />Return and investment with assessable risk<br />Emergent<br />Large potential (uncertain) return, incremental investment<br />Enhancement<br />Small investment with small return<br />Novel / Sensitive<br />Large upfront investment with uncertain returns<br /><br />
  19. 19. Different risk profiles<br />Lean & Kanban Benelux 2011<br />15<br />Emergent<br />High<br />e.g. novel market<br />Novel<br />Uncertainty about value<br />Extension<br />Enhancement<br />Low<br />e.g. existing market<br />Low<br />e.g. fits within current architecture<br />High<br />e.g. challenges current architecture<br />Uncertainty about capabilities<br />
  20. 20. Different challenges<br />16<br />Lean & Kanban Benelux 2011<br />Extension<br />Managing the risk<br />Emergent<br />Cumulate success<br />Enhancement<br />repeated and increasingly efficient delivery of quality <br />Novel / Sensitive<br />Cascading failure<br /><br />
  21. 21. Challenges for enhancements<br />One routine project does not make a success, it is the repeated and increasingly efficient deliveryof quality that makes a success<br />17<br />Lean & Kanban Benelux 2011<br />
  22. 22. Challenge for extensions<br />Lean & Kanban Benelux 2011<br />18<br />Identifying risk<br />removing risk<br />producing value<br />18<br />
  23. 23. Challenge for emergent projects<br />Creating cumulative success<br />Lean & Kanban Benelux 2011<br />19<br />
  24. 24. Challenge for sensitive projects<br />20<br />Lean & Kanban Benelux 2011<br />Cascading failure<br />
  25. 25. Adaptive management<br />Lean & Kanban Benelux 2011<br />21<br />Every project is unique …<br />… but some are more unique than others!<br />
  26. 26. How do we discover and deliver value?<br />Lean & Kanban Benelux 2011<br />22<br />
  27. 27. The end-to-end value stream<br />Lean & Kanban Benelux 2011<br />23<br />Delivery Kanban<br /><ul><li>Visualize the workflow
  28. 28. Limit WIP
  29. 29. Manage Flow
  30. 30. Make Process Policies Explicit
  31. 31. Improve Collaboratively (using models & the scientific method)</li></ul>Discovery Kanban<br /><ul><li>Visualize the flow of options
  32. 32. Ensure minimal options
  33. 33. Manage Flow
  34. 34. Make Process Policies Explicit
  35. 35. Improve Collaboratively (using models & the scientific method)</li></ul>Product in use<br />Narratives<br />Models<br />Condept<br />Requirement<br />Verification<br />Validation<br />Product in development<br />Concepts<br />
  36. 36. Linear flow<br />When discovery precedes delivery<br />The user is engaged at the beginning and at the end<br />The needs are discovered at the start and the results of the project are delivered at the end<br />Lean & Kanban Benelux 2011<br />24<br />DISCOVERY <br />DELIVERY<br />USER<br />USER<br />
  37. 37. Iterative flow<br />When discovery and delivery are intertwined<br />The user is continuously involved in the project<br />The needs are discovered iteratively and project results are also delivered iteratively<br />Risks are managed and benefits are realised incrementally during the project<br />USER<br />Lean & Kanban Benelux 2011<br />25<br />
  38. 38. Lean adaptive management<br />Lean & Kanban Benelux 2011<br />26<br />Iterative<br />Level of iteration<br />Emergent<br />Product in use<br />Iterative discovery<br />Extension<br />Product in development<br />Iterative development<br />Enhancement<br />Feature>Feature>Feature<br />Small batch linear<br />Sensitive<br />Narrative>Model>Product<br />Large batch linear<br />Linear<br />
  39. 39. How do we organize?<br />Lean & Kanban Benelux 2011<br />27<br />
  40. 40. On the edgeAmbidexterity<br />Project management culture<br />Entrepreneurial culture<br />28<br />High maturity culture<br />High reliability culture<br />Lean & Kanban Benelux 2011<br /><br />
  41. 41. Lean adaptive management<br />End-to-end flow <br />Create flow in the end-to-end value stream (Delivery + Discovery)<br />Tailored project management<br />Differentiate between the need for linear workflow and iterative workflow<br />Ambidexterity<br />Integrate different cultures in the organization<br />Lean & Kanban Benelux 2011<br />29<br />
  42. 42. Thank You<br /><br />Do you want to be kept informed?<br /><br />Lean & Kanban Benelux 2011<br />30<br />