Lean Management: Lessons from the Field


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Agile development methods such as Scrum, XP, and kanban have achieved notable success in improving speed to value, reducing waste, and raising customer and team satisfaction. Successful practitioners worldwide have cut development times, improved product quality, and reduced development cost. Underlying these agile methods are timeless lean principles—focus on customer value, respect for people, and continuous improvement. Sanjiv Augustine describes how agile teams are implementing lean management. Learn the basics of lean, including its origins in the Toyota Production System, and how to apply lean to software development with disciplined practices such as automated build-and-test and test-driven development. Find out how to apply kanban to non-software activities including operations and maintenance. Take away new approaches for PMOs to manage WIP, how executive teams can use visual control to manage their enterprises, and how kaizen teams drive continuous improvement across the organization.

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Lean Management: Lessons from the Field

  1. 1.     AT9 Session  6/6/2013 3:45 PM                "The Timeliness of Lean Management: Lessons from the Field"       Presented by: Sanjiv Augustine LitheSpeed, LLC                   Brought to you by:        340 Corporate Way, Suite 300, Orange Park, FL 32073  888‐268‐8770 ∙ 904‐278‐0524 ∙ sqeinfo@sqe.com ∙ www.sqe.com
  2. 2. Sanjiv Augustine LitheSpeed Sanjiv Augustine is an industry-leading agile and lean expert, author, speaker, management consultant, and trainer. He is the president of LitheSpeed, an agile consulting, training, and product development company. For more than twelve years, Sanjiv has managed agile projects from five to more than 100 people, trained thousands of agile practitioners through workshops and conference presentations, and coached numerous project teams. He is the author of Managing Agile Projects, Transitioning to Agile Project Management: A Roadmap for the Perplexed, and The Lean-Agile PMO: Using Lean Thinking to Accelerate Agile Project Delivery. Sanjiv was a founder of the Agile Leadership Network and an organizing member of the PMI’s Agile Community of Practice.  
  3. 3. The  Timelessness  of   Lean  Management             Presented  by  Sanjiv  Augustine   Sanjiv.Augustine@LitheSpeed.com   @Saugustine,  @LitheSpeed   State  of  Agile  Adop.on   Organizations are realizing real benefits with agile methods… 2   State of Agile Development Survey, http://www.versionone.com 1
  4. 4. State  of  Agile  Adop.on   And so, agile adoption continues apace… 3   State of Agile Development Survey, http://www.versionone.com State  of  Agile  Adop.on    (Cont’d)   But, we need to raise our game to overcome systemic problems… 4   State of Agile Development Survey, http://www.versionone.com 2
  5. 5. What  is  Lean?   Lean  Thinking  Principles  :   •  Just-­‐in-­‐Time  –  Supply  what  is  needed,  when   it  is  needed,  in  the  amount  that  is  needed.     •  Jidoka  –  Stop-­‐and-­‐respond  to  halt   production  and  address  product  defects  or   quality  issues  as  they  are  encountered  in  a   process.       •  Heijunka  –  “smooth/level”  production   volume  and  variety  during  given  time   periods.       •  Standardized  Work  –  Organize  a  job  or  task   in  an  efGicient  activity  sequence  while   minimizing  waste.   •  Kaizen  –  “Change  for  the  better.”  A   philosophy  of  continuous  improvement.       Image Source: http://www.mtu.edu/ improvement/continuous-improvement/leanoverview/ 5   Three  Timeless  Lean-­‐Agile  Solu8ons   1.  Organize  around  a   Network  of  Small   Teams   2.  Drive  Lean   Innovation   3.  Practice  Wise   Leadership     6   3
  6. 6. 1.  Network  of  Small   Teams   A  Sample  Agile  Team   Tradi8onal  Silos   The  Core  Project   Team  ideally   consists  of  5-­‐9   dedicated   members  (7  +/-­‐  2).   Intense  collabora8on   via:     1.  Face-­‐to-­‐face   communica.on     2.  Generalizing   specialists   3.  Self-­‐discipline  and   decentralized   control   PM   Customer   BA   BA   Analysts   Designer   Designers   Developer   Developer   Developer   Developer   Devs   Release   Manager   Architect   BA   Designer   Risk   Assessor   Capacity   Planner   BA  /     Tester   Developer  /   BA   Core   Team   Prod.   SM   (EXAMPLE)   Tester   Developer   Tech   Ops   Product   Owner   Tester   Tester   Testers   The  Extended   Team  can  contain   many  addi.onal   members,  each   playing  an   important  role,  but   they  are  typically   not  dedicated  to   the  effort.   Security   Business   Sponsor   8   4
  7. 7. Network  of  Small  Teams   “…for  a  large  organiza2on  to   work  it  must  behave  like  a   related  group  of  small   organiza2ons.”   -­‐  E.  F.  Schumacher  ,  Small  is   Beau2ful     Scaling  may  require,  at   certain  levels:   •  Chief  ScrumMasters   •  Strategic  Product  Owners   •  Tac.cal  Product  Owners   •  Lightweight  Agile  PMOs   serving  as  a  “guiding   coali8on”   9   Accelerate! By John Kotter, HBR, November 2012 Lean-­‐Agile  PMO   •  Encourage  face-­‐to-­‐face  dialogue  across  levels   •  Create  overlapping  management  with  “linking  pins”   •  Run  the  Council  as  an  Agile  project  team   10   Source:  The  Lean-­‐Agile  PMO,  Sanjiv  Augustine  and  Roland  Cuellar  (Cutter   Consortium  2006)   5
  8. 8. Network  of  Teams  –  Ericsson   11   Source: Agile and Lean Transformation at Ericcson Finland, Henri Kivioja 2.  Lean  Innovation   6
  9. 9. Lean  Innova.on  via  Lean  Startup   !"#$%&'()*+,+#-+ 13   .#%/01#+()*+,+#-+ Source: Lean Startup, Abby Fitchner, http://hackerchick.com Lean  Startup  Methodology   14   Thanks  to  Ash  Maurya,  author  of  Running  Lean:   hWp://www.runningleanhq.com/   7
  10. 10. Lean  Startup  in  a  Nutshell   •  Clear,  short-­‐term  experiments   •  Direct  customer  observation  and   interaction   •  Release  planning  informed  by   feedback  data   •  High-­‐quality  agile  development  with   strong  UX   15   Incorpora8ng  UX  into  Agile   Outside  the  Room   In  the  Room   Product  Planning   Pre-­‐ Discovery   Participants:   •  Product  Team   •  IT  Architecture   •  UX  Team   •  Key  Business   Stakeholders   Release   Planning   Discovery   Par8cipants:   •  Whole  Team   •  Key  Business   Stakeholders   Sprint   Planning   Sprint   Review   Sprint   Process  Execu8on   16   8
  11. 11. Introducing  Sensei   17   http://www.senseitool.com Sensei  Lean  Startup   18   9
  12. 12. 3.  Wise  Leadership   Wise  Leadership   • Have  courage   of  conviction   • Flatten   hierarchy   • Go  the  Gemba   • Trust  the  team   20   10
  13. 13. Team  Empowerment   Empowerment = Freedom * Capability 21   Situational Leadership® – Paul Hershey and Ken Blanchard Team    Empowerment   •  Knowledge  workers  need  responsibility   for  their  own  produc8vity:   o  Knowledge  drives  productivity   o  Continuous  innovation,  learning  and  teaching   need  to  be  part  of  the  job   o  Knowledge  worker  productivity  is  dependent  on   quality  at  least  as  much  as  quantity   o  Optimal  quality  is  the  path  to  high  productivity   •  Knowledge  workers  must  understand:   o  What  is  our  business?     o  Who  is  our  customer?     o  What  does  our  customer  consider  valuable?   22   11
  14. 14. Three  Timeless  Lean-­‐Agile  Solu8ons   1.  Organize  around  a   Network  of  Small   Teams   2.  Drive  Lean   Innovation   3.  Practice  Wise   Leadership     23   Contact  Us  for  Further  Informa8on   Sanjiv  Augustine   President   Sanjiv.Augustine@LitheSpeed.com   Twitter:  @saugustine,  @lithespeed         On  the  Web:   http://www.lithespeed.com   http://www.senseitool.com   http://www.sanjivaugustine.com       "I  only  wish  I  had  read  this  book  when  I  started  my  career  in   so_ware  product  management,  or  even  beWer  yet,  when  I  was   given  my  first  project  to  manage.  In  addi.on  to  providing  an   excellent  handbook  for  managing  with  agile  so_ware  development   methodologies,  Managing  Agile  Projects  offers  a  guide  to  more   effec.ve  project  management  in  many  business  sebngs."     John  P.  Barnes,  former  Vice  President  of  Product  Management  at   Emergis,  Inc.     24   12
  15. 15. Stable  Teams   •  Multiple,  stable  teams  each   focused  on  a  single  project  at  a   time   •  Dedicated  to  platforms  or  lines   of  business   •  Platform  owner  prioritizes   next  project   •  Result:   o  o  Focused  effort  results  in  quick   delivery  for  individual  projects   o  Clear  accountability     o  25   Support  multiple  lines  of   business  simultaneously   Stability  and  predictability   Source:  The  Lean-­‐Agile  PMO,  Sanjiv  Augustine  and  Roland  Cuellar  (Cutter  Consortium  2006)   13