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LEAN-AGILE
BUSINESS
ANALYSIS
KEVIN BRENNAN
KEVIN@NEWBA.COM
@BAKEVIN
THE OUT-OF-CONTEXT PRODUCT
OWNER
Needs
Value
Solutions
Changes
ContextStakeholders
Agile methods tend to
assume this is clear. When
it’s not, nothing else is
rooted in reality.
AGILE FOCUSES ON NEW
PRODUCT DEVELOPMENT
INNOVATION
• Do something new.
• No roadmap.
• Success will be known
when we get there.
• Major changes in
direction likely.
IMPROVEMENT
• Existing process, product,
or services.
• Stakeholders understand
what it does.
• Success measures and
requirements are
knowable.
• “Best practice” not certain.
IMPLEMENTATION
• Standard operating
procedure.
• No reason to have unique
process.
• Best practices are defined.
• Little benefit from a
unique approach.
AGILE LEAN WATERFALL
WHAT IS LEAN?
LEAN PROVIDES A CONTEXT BY
LOOKING AT THE VALUE STREAM
Source: Michael A. Porter, Competitive Advantage
Management
Technology
Finance
Human Resources
Margin
SupportingActivity
Organizational Capabilities
Inbound Logistics
Production &
Operations
Outbound
Logistics
Sales & Marketing Service
PrimaryActivity
LEAN PAIRS WELL WITH AGILE
Process
Reengineering
Lean Agile
Waterfall
ProductProcess
Continuous Improvement
Project
LEAN’S CONTEXT IS CUSTOMER
VALUE
“TRUE NORTH”
• Defines value from the perspective
of the customer
• Ideal state of the process.
• Multi-year goal.
• "True North” points in a direction,
doesn’t specify how to get there.
VALUE STREAM
• The work performed to deliver a
product or service to a customer.
• Goal is to increase customer value.
• Also critical—eliminate or minimize
“waste”, which includes any work
that does not increase value.
• The value stream map is used to
find where waste is happening and
prioritize improvement efforts.
LEAN IS CONTINUOUS
IMPROVEMENT, NOT A PROJECT
• Assess and understand
the problem
• Seek the root cause
• Evaluate alternative
solutions
• Adjust the change as
needed
• If satisfied, deploy
widely, otherwise roll it
back.
• Implement the
proposed change
• Examine the outcomes
of the change
• Determine whether
value delivered as
expected
Plan
Do
Check
Act
PDCA
Cycle
LEAN IS ABOUT INCREASING
VALUE AND REMOVING WASTE
80%or more of business
activities are waste that
doesn’t add value for
customers.
WHAT DOES LEAN FOCUS ON?
Stability
Standardized Work
Leveling Kaizen
Just in Time
Flow
Remove the
Root Causes
of Defects
QualityProductivity
VALUE
Respect
for People
LEAN-AGILE BUSINESS ANALYSIS
CHANGES OUR FOCUS
From To
‣ Applications
‣ Business Cases
‣ One-Shot, "Complete"
Projects
‣ Documentation and
Specification
‣ Solving Immediate Issues
‣ Value Streams
‣ Customer Value
‣ Ongoing Delivery and
Improvement
‣ Visual Models and
Management
‣ Eliminating Root Causes
“IF YOU DON’T
UNDERSTAND
THE PROBLEM,
YOU BUFFER
WITH VOLUME.”
ANDY AND ME AND THE HOSPITAL, PASCAL DENNIS
LEAN-AGILE BUSINESS ANALYSIS
KEY PROCESS STEPS
1
Identifying Value
4
Designing the
Future State
2
Setting Targets
5
Planning the
Improvement Path
3
Evaluating Current
State Processes
6
Validating the
Results
MAKE THE WORK
VISUAL
Table Mountain National Park
3 September 2017
VALUE IS DEFINED BY THE
CUSTOMER
OPERATIONAL METRICS
Financial
Customer
Satisfaction
Internal
Business
Process
Learning &
Growth
Vision and
Objectives
LEAN DEVELOPMENT METRICS
Financial
Market and
Operational
Impact
Product
Development
Performance
Opportunity
and Risk
Management
Vision and
Objectives
DEFINE VALUE
• For your business analysis
process:
• Identify 2 stakeholders
who aren’t happy with
the current state
• Define their unmet needs
• What would tell us that their
needs have been met?
• What metrics can we use to
track the value they are
receiving?
GO AND SEE Photo by Clark Young on Unsplash
USING THE VALUE STREAM MAP
FOR HIGH-LEVEL INSIGHT
Operations
Triage
Requests
IT Steering
Committee
Assess
Feasibility
Architect
Develop BRD
Business
Analysis
Develop SRD
Business
Analysis
Obtain
Signoff
Business
Analysis
Development
15 d 20 d 15 d 5 d
LT = 5 d
PT = 15 m
%C&A = 10%
LT =20 d
PT = 3 d
%C&A = 65%
LT= 45 d
PT= 10 d
%C&A = 80%
LT = 30 d
PT = 7 d
%C&A = 90%
LT = 15 d
PT = 2 h
%C&A = 95%
Total Lead Time: 165 days
Total Process Time: 20 days, 2 hours, and 15 min
Activity Ratio: 8.2%
BUILD A DETAILED PROCESS MAP
FOR SPECIFIC IMPROVEMENTS
CSR
Assessor
Account
Manager
Accounts
Payable
Report Claim
Assess Claim
Information
Determine
Eligibility
Review
Assessment
Approve
Payment
Send Check
Update
Customer on
Assessment
Notify
Customer of
Payment
DOCUMENT CURRENT
STATE
• Look back on recent
requirements gathering
workshops you’ve held.
• Start capturing all the delays
you run into and the real work
that it takes to get one
completed.
• Walk through process with
some in the group acting out
difficult or inaccessible
stakeholders.
• Build a comprehensive
process map.
Photo by Joe Shillington on Unsplash
IMPACT MAPPING
Goal
Actor
Actor
Actor
Impact
Impact
Deliverable
Deliverable
Deliverable
Tie back to
the “North
Star”
Stakeholders who can affect
our ability to reach the goal
How we want to affect the
stakeholder’s behaviour
What we will build to
achieve the result
TARGET SETTING
Goal
• Which goal from our KPIs is most important to focus on first?
• Define measures for that goal so we know if it’s been achieved.
Actors
• Which stakeholders can help you achieve the goal or prevent you from success?
• Consider primary actors, secondary actors, and other stakeholders
Impacts
• How will the behaviour of each actor change once the system is in place?
• How will that change contribute to our goal? Show how behaviour differs from today.
Deliverables
• What can we do as a team to deliver the desired impacts?
• Include process and other changes, not just the software changes
• Keep these as high-level—we will refine them into epics and features shortly.
TARGET SETTING
Scale What are we measuring?
Meter How do we measure it? What is the
source of information?
Benchmark Where are we today (if known)?
Minimum What is the minimum acceptable
return on investment?
Target What is the level we want to achieve?
SETTING TARGETS:
BUILD AN IMPACT MAP
• Based on your metrics
and process map, where
can you improve value
for your customers?
• Define improvement
targets for this change
• Assess the behaviour
changes needed
• Determine deliverables
that will produce them
Photo by Joe Shillington on Unsplash
WASTE
Muda
Work that doesn’t add
value for a customer.
• Type-1: Necessary
but non-value added.
• Type-2: Unnecessary.
First targets of
improvement.
VARIABILITY
Mura
Inconsistent outcomes
from a process.
Includes testing,
inspection, rework, or
any other variation in
quality, cost or delivery.
OVERDOING
Muri
Demanding more from
people, equipment or
systems than they can
manage on an ongoing
basis. Excessive hours
or usage leads to long-
term burnout or
equipment
breakdowns.
MUDA, MURA AND MURI: THE
THREE TYPES OF WASTE
SEVEN FORMS OF NON-VALUE
ADDED WORK (MUDA)
Form of Waste AKA Explanation
Transport Convenance
Movement of product or materials that is not
required for value-added work.
Waiting Delay
Waiting to perform work because no value-
added work is available to do.
Overproduction
Making more of something than your
customer needs.
Defect
Corrections, repair,
revision
If a product fails to meet the need, or isn’t
done right the first time.
Inventory
Work products that are stored rather than
being used. Adds effort to track and maintain.
Motion Movement
Travel time or other motions required to
produce valuable work.
Extra Processing Overprocessing
Additional work due to inadequate
technology, poor materials, etc.
WASTE IN PRODUCT
DEVELOPMENT
Form of Waste Sub-group Explanation
Scatter Distraction
Management or organizational overhead that
doesn’t help with delivery
Communication
barriers
Distance, limited information channels, formal
reporting structures
Poor tools
Poor techniques, limited training, inadequate
computers or software tools
Hand-off Useless Information
Filling out reports, unnecessary
documentation, CYA
Waiting
Delays because key stakeholders aren’t
available or have different priorities
Wishful Thinking
Testing to
Specifications
Failing to look for edge use cases or potential
unanticipated problems
Discarded
Knowledge
Learning that is lost because it’s never
transferred or recorded
ASSESS VALUE DELIVERED
CSR
Assessor
Account
Manager
Accounts
Payable
Report Claim
LT=1h
PT 10m
Assess Claim
Information
Determine
Eligibility
LT=5d PT=3h
Review
Assessment
Approve
Payment
Send Check
Update
Customer on
Assessment
Notify
Customer of
Payment
V
V
N
N
VW
W W
IDENTIFY WASTE AND
OPPORTUNITIES
• Determine which tasks are:
• Value-added
• Necessary
• Waste
• Waste is determined by
whether the customer
would pay to get it
• Look for waiting times
• Now is when you define
the ideal
Photo by Joe Shillington on Unsplash
BUILDING THE BACKBONE OF A
STORY MAP
• The backbone serves as the connection between our lean process work and
agile development
• The resulting story map will drive the development process
• Backbones take us end-to-end
• The backbone provides a scope for the development effort
• It provides context to let us know what does and doesn’t belong
• The logical backbone is a process flow
• Non-value added steps are included, as they must be actively removed
Report Claim
Assess Claim
Information
Determine
Eligibility
Review
Assessment
Approve
Payment
Send Check
Update
Customer on
Assessment
Notify
Customer of
Payment
STORY MAPS
Step 1 Step 2 Step 3 Step 2Step 1Step 3Step 2Step 4 Step 1 Step 3 Step 4 Step 5 Step 1 Step 2 Step 3 Step 4 Step 5
Task 1 Task 2 Alternate Task 2a Task 3
Story RiskStory
Story
Story Story
StoryStory
Story Story Story
Risk
Story StoryStory
Story
Story
Story
Story Risk StoryStoryStory
Story
StoryStory
• Story maps can include:
• Software stories
• Enablers
• Process stories
• Risks
• Order by relative priority
• Each story relates to the
relevant process step
• Gives a complete visual guide
to scope
INCREASE VALUE
• Where can you increase the value
delivered from a customer
perspective based on the process
map?
• Can you add additional value either
through the process or through IT
enhancements?
ELIMINATE WASTE
• Prioritize the elimination of
unnecessary steps.
• Automate or eliminate necessary
but non-value-added steps
whenever possible.
• Reduce lead time that doesn’t
involve working on a customer
need.
INCORPORATING PROCESS
IMPROVEMENT
BUILD A STORY MAP
• Use your process map to build a
backbone
• Fit your stories beneath it under the
appropriate process steps.
• Look for gaps—places where stories
are missing.
• Can you complete the process?
• Can you complete the steps
within the process?
• Are there risks or questions you
must address?
• Create an initial prioritization for each
step.
Photo by Joe Shillington on Unsplash
DO
• Make the change.
CHECK
• Evaluate outcomes
against impact map.
• Did you get predicted
results? If not why?
• Was value increased or
waste eliminated?
• Could learning help with
other problems?
ACT OR ADJUST
• Resolve downstream
issues.
• Adjust based on pilot
results.
AFTER THE PLANNING
IT’S A JOURNEY, NOT A
DESTINATION
Photo by adrian on Unsplash
QUESTIONS?
Contact
• kevin@newba.com
• @bakevin
• linkedin.com/in/bakevin
KEVIN BRENNAN
INDEPENDENT
CONSULTANT

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Lean-Agile Business Analysis

  • 2. THE OUT-OF-CONTEXT PRODUCT OWNER Needs Value Solutions Changes ContextStakeholders Agile methods tend to assume this is clear. When it’s not, nothing else is rooted in reality.
  • 3. AGILE FOCUSES ON NEW PRODUCT DEVELOPMENT INNOVATION • Do something new. • No roadmap. • Success will be known when we get there. • Major changes in direction likely. IMPROVEMENT • Existing process, product, or services. • Stakeholders understand what it does. • Success measures and requirements are knowable. • “Best practice” not certain. IMPLEMENTATION • Standard operating procedure. • No reason to have unique process. • Best practices are defined. • Little benefit from a unique approach. AGILE LEAN WATERFALL
  • 5. LEAN PROVIDES A CONTEXT BY LOOKING AT THE VALUE STREAM Source: Michael A. Porter, Competitive Advantage Management Technology Finance Human Resources Margin SupportingActivity Organizational Capabilities Inbound Logistics Production & Operations Outbound Logistics Sales & Marketing Service PrimaryActivity
  • 6. LEAN PAIRS WELL WITH AGILE Process Reengineering Lean Agile Waterfall ProductProcess Continuous Improvement Project
  • 7. LEAN’S CONTEXT IS CUSTOMER VALUE “TRUE NORTH” • Defines value from the perspective of the customer • Ideal state of the process. • Multi-year goal. • "True North” points in a direction, doesn’t specify how to get there. VALUE STREAM • The work performed to deliver a product or service to a customer. • Goal is to increase customer value. • Also critical—eliminate or minimize “waste”, which includes any work that does not increase value. • The value stream map is used to find where waste is happening and prioritize improvement efforts.
  • 8. LEAN IS CONTINUOUS IMPROVEMENT, NOT A PROJECT • Assess and understand the problem • Seek the root cause • Evaluate alternative solutions • Adjust the change as needed • If satisfied, deploy widely, otherwise roll it back. • Implement the proposed change • Examine the outcomes of the change • Determine whether value delivered as expected Plan Do Check Act PDCA Cycle
  • 9. LEAN IS ABOUT INCREASING VALUE AND REMOVING WASTE 80%or more of business activities are waste that doesn’t add value for customers.
  • 10. WHAT DOES LEAN FOCUS ON? Stability Standardized Work Leveling Kaizen Just in Time Flow Remove the Root Causes of Defects QualityProductivity VALUE Respect for People
  • 11. LEAN-AGILE BUSINESS ANALYSIS CHANGES OUR FOCUS From To ‣ Applications ‣ Business Cases ‣ One-Shot, "Complete" Projects ‣ Documentation and Specification ‣ Solving Immediate Issues ‣ Value Streams ‣ Customer Value ‣ Ongoing Delivery and Improvement ‣ Visual Models and Management ‣ Eliminating Root Causes
  • 12. “IF YOU DON’T UNDERSTAND THE PROBLEM, YOU BUFFER WITH VOLUME.” ANDY AND ME AND THE HOSPITAL, PASCAL DENNIS
  • 13. LEAN-AGILE BUSINESS ANALYSIS KEY PROCESS STEPS 1 Identifying Value 4 Designing the Future State 2 Setting Targets 5 Planning the Improvement Path 3 Evaluating Current State Processes 6 Validating the Results
  • 14. MAKE THE WORK VISUAL Table Mountain National Park 3 September 2017
  • 15. VALUE IS DEFINED BY THE CUSTOMER
  • 17. LEAN DEVELOPMENT METRICS Financial Market and Operational Impact Product Development Performance Opportunity and Risk Management Vision and Objectives
  • 18. DEFINE VALUE • For your business analysis process: • Identify 2 stakeholders who aren’t happy with the current state • Define their unmet needs • What would tell us that their needs have been met? • What metrics can we use to track the value they are receiving?
  • 19. GO AND SEE Photo by Clark Young on Unsplash
  • 20. USING THE VALUE STREAM MAP FOR HIGH-LEVEL INSIGHT Operations Triage Requests IT Steering Committee Assess Feasibility Architect Develop BRD Business Analysis Develop SRD Business Analysis Obtain Signoff Business Analysis Development 15 d 20 d 15 d 5 d LT = 5 d PT = 15 m %C&A = 10% LT =20 d PT = 3 d %C&A = 65% LT= 45 d PT= 10 d %C&A = 80% LT = 30 d PT = 7 d %C&A = 90% LT = 15 d PT = 2 h %C&A = 95% Total Lead Time: 165 days Total Process Time: 20 days, 2 hours, and 15 min Activity Ratio: 8.2%
  • 21. BUILD A DETAILED PROCESS MAP FOR SPECIFIC IMPROVEMENTS CSR Assessor Account Manager Accounts Payable Report Claim Assess Claim Information Determine Eligibility Review Assessment Approve Payment Send Check Update Customer on Assessment Notify Customer of Payment
  • 22. DOCUMENT CURRENT STATE • Look back on recent requirements gathering workshops you’ve held. • Start capturing all the delays you run into and the real work that it takes to get one completed. • Walk through process with some in the group acting out difficult or inaccessible stakeholders. • Build a comprehensive process map. Photo by Joe Shillington on Unsplash
  • 23. IMPACT MAPPING Goal Actor Actor Actor Impact Impact Deliverable Deliverable Deliverable Tie back to the “North Star” Stakeholders who can affect our ability to reach the goal How we want to affect the stakeholder’s behaviour What we will build to achieve the result
  • 24. TARGET SETTING Goal • Which goal from our KPIs is most important to focus on first? • Define measures for that goal so we know if it’s been achieved. Actors • Which stakeholders can help you achieve the goal or prevent you from success? • Consider primary actors, secondary actors, and other stakeholders Impacts • How will the behaviour of each actor change once the system is in place? • How will that change contribute to our goal? Show how behaviour differs from today. Deliverables • What can we do as a team to deliver the desired impacts? • Include process and other changes, not just the software changes • Keep these as high-level—we will refine them into epics and features shortly.
  • 25. TARGET SETTING Scale What are we measuring? Meter How do we measure it? What is the source of information? Benchmark Where are we today (if known)? Minimum What is the minimum acceptable return on investment? Target What is the level we want to achieve?
  • 26. SETTING TARGETS: BUILD AN IMPACT MAP • Based on your metrics and process map, where can you improve value for your customers? • Define improvement targets for this change • Assess the behaviour changes needed • Determine deliverables that will produce them Photo by Joe Shillington on Unsplash
  • 27. WASTE Muda Work that doesn’t add value for a customer. • Type-1: Necessary but non-value added. • Type-2: Unnecessary. First targets of improvement. VARIABILITY Mura Inconsistent outcomes from a process. Includes testing, inspection, rework, or any other variation in quality, cost or delivery. OVERDOING Muri Demanding more from people, equipment or systems than they can manage on an ongoing basis. Excessive hours or usage leads to long- term burnout or equipment breakdowns. MUDA, MURA AND MURI: THE THREE TYPES OF WASTE
  • 28. SEVEN FORMS OF NON-VALUE ADDED WORK (MUDA) Form of Waste AKA Explanation Transport Convenance Movement of product or materials that is not required for value-added work. Waiting Delay Waiting to perform work because no value- added work is available to do. Overproduction Making more of something than your customer needs. Defect Corrections, repair, revision If a product fails to meet the need, or isn’t done right the first time. Inventory Work products that are stored rather than being used. Adds effort to track and maintain. Motion Movement Travel time or other motions required to produce valuable work. Extra Processing Overprocessing Additional work due to inadequate technology, poor materials, etc.
  • 29. WASTE IN PRODUCT DEVELOPMENT Form of Waste Sub-group Explanation Scatter Distraction Management or organizational overhead that doesn’t help with delivery Communication barriers Distance, limited information channels, formal reporting structures Poor tools Poor techniques, limited training, inadequate computers or software tools Hand-off Useless Information Filling out reports, unnecessary documentation, CYA Waiting Delays because key stakeholders aren’t available or have different priorities Wishful Thinking Testing to Specifications Failing to look for edge use cases or potential unanticipated problems Discarded Knowledge Learning that is lost because it’s never transferred or recorded
  • 30. ASSESS VALUE DELIVERED CSR Assessor Account Manager Accounts Payable Report Claim LT=1h PT 10m Assess Claim Information Determine Eligibility LT=5d PT=3h Review Assessment Approve Payment Send Check Update Customer on Assessment Notify Customer of Payment V V N N VW W W
  • 31. IDENTIFY WASTE AND OPPORTUNITIES • Determine which tasks are: • Value-added • Necessary • Waste • Waste is determined by whether the customer would pay to get it • Look for waiting times • Now is when you define the ideal Photo by Joe Shillington on Unsplash
  • 32. BUILDING THE BACKBONE OF A STORY MAP • The backbone serves as the connection between our lean process work and agile development • The resulting story map will drive the development process • Backbones take us end-to-end • The backbone provides a scope for the development effort • It provides context to let us know what does and doesn’t belong • The logical backbone is a process flow • Non-value added steps are included, as they must be actively removed Report Claim Assess Claim Information Determine Eligibility Review Assessment Approve Payment Send Check Update Customer on Assessment Notify Customer of Payment
  • 33. STORY MAPS Step 1 Step 2 Step 3 Step 2Step 1Step 3Step 2Step 4 Step 1 Step 3 Step 4 Step 5 Step 1 Step 2 Step 3 Step 4 Step 5 Task 1 Task 2 Alternate Task 2a Task 3 Story RiskStory Story Story Story StoryStory Story Story Story Risk Story StoryStory Story Story Story Story Risk StoryStoryStory Story StoryStory • Story maps can include: • Software stories • Enablers • Process stories • Risks • Order by relative priority • Each story relates to the relevant process step • Gives a complete visual guide to scope
  • 34. INCREASE VALUE • Where can you increase the value delivered from a customer perspective based on the process map? • Can you add additional value either through the process or through IT enhancements? ELIMINATE WASTE • Prioritize the elimination of unnecessary steps. • Automate or eliminate necessary but non-value-added steps whenever possible. • Reduce lead time that doesn’t involve working on a customer need. INCORPORATING PROCESS IMPROVEMENT
  • 35. BUILD A STORY MAP • Use your process map to build a backbone • Fit your stories beneath it under the appropriate process steps. • Look for gaps—places where stories are missing. • Can you complete the process? • Can you complete the steps within the process? • Are there risks or questions you must address? • Create an initial prioritization for each step. Photo by Joe Shillington on Unsplash
  • 36. DO • Make the change. CHECK • Evaluate outcomes against impact map. • Did you get predicted results? If not why? • Was value increased or waste eliminated? • Could learning help with other problems? ACT OR ADJUST • Resolve downstream issues. • Adjust based on pilot results. AFTER THE PLANNING
  • 37. IT’S A JOURNEY, NOT A DESTINATION Photo by adrian on Unsplash
  • 38. QUESTIONS? Contact • kevin@newba.com • @bakevin • linkedin.com/in/bakevin KEVIN BRENNAN INDEPENDENT CONSULTANT