Leaning - Energized Work Presentation

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Leaning - Energized Work Presentation

  1. Presented by Simon Baker, Energized Work 28 October 2010 a tendency or partiality of a particular kind
  2. © 2010 Energized Work - www.energizedwork.com 2 Simon Baker Twitter: @energizr Skype: simon.energizr Email: simon@energizedwork.com Blog: blog.energizedwork.com
  3. Delight customers © 2010 Energized Work - www.energizedwork.com 3 Profit in business comes from repeat customers, customers that boast about your product, and that bring friends with them. – Deming ‘‘
  4. Follow the money © 2010 Energized Work - www.energizedwork.com 4 The goal of every company is to make money. – Goldratt ‘‘
  5. Most products fail because they don’t have enough customers © 2010 Energized Work - www.energizedwork.com 5 The greatest risks are delivering the wrong thing, not validating customers early and an unproven business model.
  6. Organizations are over-organized © 2010 Energized Work - www.energizedwork.com 6 Specialization and centralization comes at the cost of complexity in the form of unnecessary dependencies that introduce waste and bottlenecks.
  7. Conventional product development is like betting on a hole-in-one © 2010 Energized Work - www.energizedwork.com 7 Every idea and decision is an hypothesis until it’s validated by paying customers. It’s a big risk waiting for a big-bang release to test the market exists and the product fits, and to prove that sales can be repeated.
  8. Improve the odds of success with continuous discovery, validation and iteration © 2010 Energized Work - www.energizedwork.com 8 Implant with rapid and responsive iterative delivery capability into day-to-day business operations to continually test business assumptions and feature ideas with customers using working software.
  9. © 2010 Energized Work - www.energizedwork.com 9 Small continuous improvements only go so far Way of working Effectiveness A transformative change can remove endemic waste and provide a better place to start from. But it’s got to be successful.
  10. Organize around products and collapse the value stream to remove endemic waste © 2010 Energized Work - www.energizedwork.com 10 No silos. No projects. Everyone sits together, including business people, and work full-time on the product. Dependencies are removed. Environments are owned. It’s a small business with autonomy to pursue its goals.
  11. © 2010 Energized Work - www.energizedwork.com 11 Seize a crisis or create one Understand the system. Set up quickly. Do something that can’t be ignored. Forget grand strategy for the moment. Produce immediate results. – Lean Thinking. Womack and Jones
  12. © 2010 Energized Work - www.energizedwork.com 12 Run small experiments as learning cycles MAKE LEARN TEST By applying Deming’s cycle repeatedly, at different levels, to tackle uncertainty. Product development becomes a test-driven delivery system that tells us we’re building the right thing and we’re building the thing right.
  13. © 2010 Energized Work - www.energizedwork.com 13 – John Seddon Measures should reflect the true purpose of the people doing the work. ‘‘ Don’t chase targets. Use measurements to pursue improvement
  14. © 2010 Energized Work - www.energizedwork.com 14 Fund the business plan incrementally CHARTER INVEST MEASURE EXECUTE Base funding on product performance in the market. Is it satisfying customers? Is it profitable? 3 Months
  15. © 2010 Energized Work - www.energizedwork.com 15 Success Criteria Testable expectations in terms of customer satisfaction, profit, environmental performance and other measures Measurements updated as progress is made Current Situation Background and context Quantified data Qualitative assessment Previous measurements Constraints Budget Why Validated data from previous experiments Root-cause analysis Assumptions To be validated Risks Shared Vision Visualize the future in a charter
  16. © 2010 Energized Work - www.energizedwork.com 16 Manage by cash flow Visualize the cash position using cash basis accounting in a simple profit-and-loss statement.
  17. © 2010 Energized Work - www.energizedwork.com 17 To drive profit, increase revenue and remove the causes of costs
  18. © 2010 Energized Work - www.energizedwork.com 18 Inventory can’t generate revenue 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 23/10 30/10 06/11 13/11 20/11 27/11 04/12 11/12 18/12 24/12 08/01 15/01 22/01 29/01 05/02 12/02 19/02 26/02 04/03 11/03 18/03 25/03 01/04 08/04 15/04 22/04 29/04 06/05 13/05 20/05 27/05 03/06 10/06 17/06 24/06 01/07 08/07 15/07 22/07 29/07 05/08 12/08 19/08 26/08 02/09 £ Total Sleeping Money Inventory Started WIP Ready to Start WIP Prepared WIP Inventory costs money to make, costs even more money to maintain the code, and the cost of delayed release is lost earnings.
  19. © 2010 Energized Work - www.energizedwork.com 19 Sustain throughput to satisfy value demand 0 20 40 60 80 100 120 23/10 30/10 06/11 13/11 20/11 27/11 04/12 11/12 18/12 25/12 01/01 08/01 15/01 22/01 29/01 05/02 12/02 19/02 26/02 04/03 11/03 18/03 25/03 01/04 08/04 15/04 22/04 29/04 06/05 13/05 20/05 27/05 03/06 10/06 17/06 24/06 01/07 08/07 15/07 22/07 29/07 05/08 12/08 19/08 26/08 02/09 Stories Throughput [ Per Week ] Release as often as customers will allow to get their feedback.
  20. © 2010 Energized Work - www.energizedwork.com 20 Minimize failure demand -25 -20 -15 -10 -5 0 5 10 Rework [ Per Week ] Repaid Debt Fixed Defects Debt Defects Fix defects immediately. Manage debt carefully and continuously.
  21. © 2010 Energized Work - www.energizedwork.com 21
  22. © 2010 Energized Work - www.energizedwork.com 22
  23. © 2010 Energized Work - www.energizedwork.com 23
  24. © 2010 Energized Work - www.energizedwork.com 24 INQUIRY Design Prototype Learn IMMERSION OPTION Hypothesis MANAGE Make Test Learn DELIVERY Validation Customers, stakeholders, users Business model Discovery-driven delivery
  25. © 2010 Energized Work - www.energizedwork.com 25
  26. © 2010 Energized Work - www.energizedwork.com 26 Vertically slicing stories creates opportunities for feedback and collaboration When sitting together face- to-face time is easy and cheap. Everything is driven by conversations. Lot’s of conversations.
  27. © 2010 Energized Work - www.energizedwork.com 27 Small is beautiful. Big is noisy Scaling a small system won’t produce bigger results. It becomes a different system and won’t behave in the same ways. A big system loses purpose and becomes too busy supporting itself.
  28. © 2010 Energized Work - www.energizedwork.com 28 Thank you. Twitter: @energizr Skype: simon.energizr Email: simon@energizedwork.com Blog: blog.energizedwork.com
  29. © 2010 Energized Work - www.energizedwork.com 29 License This presentation is provided under the Creative Commons Attribution Share Alike 3.0 Unported License. You are free: To share – to copy, distribute and transmit the work To remix – to adapt the work Under the following conditions: Attribution – You must attribute the work in the manner specified by Energized Work (but not in any way that suggests that Energized Work endorse you or your use of the work). Share Alike – If you alter, transform, or build upon this work, you may distribute the resulting work only under the same or similar license to this one.

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