Co-creating High Velocity Organizations

Systems Thinking powering the learning
engine for large scale Agile and Lean
Jour...
Types of problems

Logic puzzles

Dilemmas

Messy & Wicked
problems
•
•
•
•
•
•
•
•
•
•
•
•
•

No unique “correct” view of...
Value space of System Dynamics

Agreement

Low

Collaborative Systems
Political
Thinking
control
Complexity
Domain

Simple...
”The significant problems cannot be solved by the
same level of thinking that caused it”
© 2012 ValueAtWork

-Albert Einst...
Case: The program manager that could
Controlling PMO
Pressure = Motivation

>12 months Waterfall process

BUSINESS REQUIRE...
Common view of project work
Quality aspect is missing

We have modelled
iterative work
One more step is missing
”Lets look at our project”
Customer came with more work & changes

People Productivity Quality

More work & Changes

Work
to be
done

Work being
done...
We act to catch up with the plan

People

Work
to be
done

Overtime

Productivity Quality

Error rate

Prioritization
rate...
Our actions cause rippleeffects
Moral problems

Fatigue/
Burnout

Out-of-sequence Work
Coordination Problems
Worksite Cong...
Until this happens
Rework amounts to
Consensus

Bengt
?

Agile
1. Uncovering invisible factors
(REACT)
Seen by others

Events

Leverage and Learning

What Happened?

X

Sealevel

Normal...
2. Modelling together; 2+2=8
New problems
discovered
-

+
Design problems this
- year vs Time remaining

Problem resolutio...
Collaborative
Thinking &
Modelling

“The smartness we need is
collective not individualistic"
Peter Senge - problemsolving...
Case: Share knowledge across the
organization at Ericsson
liters per day per
cow

+

+

Milk Stock

Sales

Production
+

+...
Stagnating Improvement problem

Performance started to level off after 18 months. Even a
doubling of effort failed to prod...
mprovement
Rate
+
+

What the group shared
Improvement
Work

R

+
Performance

Adoption
Fraction

+
+
Improvement
Rate

Im...
Recommendation
Systems
Redesign

Performance
Systems
Redesign

Incremental
Improvments
Incremental
Improvments
Incremental...
Reactions
liters per day per
cow

+

+

Milk Stock

Sales

Production
+

+

+
R

productivity
multiplier
+

+

Leaving

+
...
1. Learning to Learn
Regular
Goal

Sensibility

Learningful

Win – your point prevails

Learn – build shared
understanding...
2. Learning through experience

liters per day per
cow

liters per day per
cow

+

Sales

Improvement
Opportunities

B
No ...
3. Building knowledge across
organization
Experience
sharing

Local teams

Team1
Team3

Team2

Pattern
seeking

Projects

...
Systems Thinking Continuum
Robust Simulations Test

Systems knowledge ladder

Simulations

Equations
Stock and Flow
Causal...
What you can do if you want to learn
System Dynamics
Read the following books

Link to my blog with resources about
System...
Your guide today

Rolf Häsänen
Systems thinker, speaker. Passionate
about improvement, innovation
and all things complex.
...
Co-creating High Velocity Organizations

Rolf Häsänen
Rolf@valueatwork.se
+46 70 680 68 12
Co-creating High Velocity Organ...
I will talk about how Systems Thinking helped organizations to:
• unlocking the full potential of team learning
• create s...
The foundation of Systems Thinking
• Structure generates behaviour
– Context plays a significant role in determining how
p...
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Systems Thinking for large scale agile | Rolf Häsänen | LTG-18

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Systems Thinking for large scale agile | Rolf Häsänen | LTG-18

  1. 1. Co-creating High Velocity Organizations Systems Thinking powering the learning engine for large scale Agile and Lean Journeys Understanding Complex Systems Talking Together About Systems Making Systems Visible
  2. 2. Types of problems Logic puzzles Dilemmas Messy & Wicked problems • • • • • • • • • • • • • No unique “correct” view of the problem; Different views of the problem and contradictory solutions; Most problems are connected to other problems; Data are often uncertain or missing; Multiple value conflicts; Ideological and cultural constraints; Political constraints; Economic constraints; Often a-logical or illogical or multi-valued thinking; Numerous possible intervention points; Consequences difficult to imagine; Considerable uncertainty, ambiguity; Great resistance to change;
  3. 3. Value space of System Dynamics Agreement Low Collaborative Systems Political Thinking control Complexity Domain Simple Chaotic Modelling Experimentation High High certainty Low certainty System Dynamics is a framework, langu age, tool and a way of thinking to approach complex situations in various types of systems (social, manageria l, business, econo my…)
  4. 4. ”The significant problems cannot be solved by the same level of thinking that caused it” © 2012 ValueAtWork -Albert Einstein
  5. 5. Case: The program manager that could Controlling PMO Pressure = Motivation >12 months Waterfall process BUSINESS REQUIREMENTS PROJECT 5-6Months PRINCE2 PMBOK Business not involved after initial work 5 Countries ANALYSIS / DESIGN PROJECT People parttime in project RISK MANAGEMENT BOARD Command & Control culture Pressure to come up with solution HANDOFFS Meet Bengt Detailed plans ? Do not fail Few agile pilots = No visible effect More testers More Multiplepressure More specialists projects Virtual teams More managers Take few big bets and Risk your risks manage management > 8 sites Zone Detailed end More planning of chaos atprocesses More management reviews
  6. 6. Common view of project work
  7. 7. Quality aspect is missing We have modelled iterative work
  8. 8. One more step is missing
  9. 9. ”Lets look at our project”
  10. 10. Customer came with more work & changes People Productivity Quality More work & Changes Work to be done Work being done Error rate Prioritization rate Known rework Work done Rework discovery rate undiscovered rework
  11. 11. We act to catch up with the plan People Work to be done Overtime Productivity Quality Error rate Prioritization rate Hiring Work done Work being done Known rework Rework discovery rate Perceived Progress Scheduled Completion time undiscovered rework Schedule Acceleration
  12. 12. Our actions cause rippleeffects Moral problems Fatigue/ Burnout Out-of-sequence Work Coordination Problems Worksite Congestion People Overtime Work to be done Average employee skill Productivity Quality Error rate Prioritization rate Hiring Work done Work being done Known rework Rework discovery rate Perceived Progress Scheduled Completion time undiscovered rework Schedule Acceleration
  13. 13. Until this happens
  14. 14. Rework amounts to
  15. 15. Consensus Bengt ? Agile
  16. 16. 1. Uncovering invisible factors (REACT) Seen by others Events Leverage and Learning What Happened? X Sealevel Normally invisible Patterns (Anticipate) Whats been happening? (Design) Structures What are the forces at play contributing to these patterns? (Transform) Mental Models What about our thinking allows this situation to persist? Copyright 2013 Value At Work AB www.valueatwork.se 16
  17. 17. 2. Modelling together; 2+2=8 New problems discovered - + Design problems this - year vs Time remaining Problem resolution & Rework + + Tipping loop Resources on next years project R B Tipping loop B Rework loop R I. II. III. + Work harder Progress on next year project + Problems resolved Fatigue & Overwork + + Project Overtime Resources on this + years project - People’s mental models are limited by cognitive processing capabilities People tend to think in simple causal chains instead of networks of feedback loops People’s causal assumptions tend to be hidden Group modelling surfaces underlying assumptions and creates a holistic shared problem-view
  18. 18. Collaborative Thinking & Modelling “The smartness we need is collective not individualistic" Peter Senge - problemsolving in the age of complexity18
  19. 19. Case: Share knowledge across the organization at Ericsson liters per day per cow + + Milk Stock Sales Production + + + R productivity multiplier + + Leaving + R Birth rate revenue + Workers Hiring Cows price Death Rate reinvestment + ? liters per day per cow + + Milk Stock Sales Production + + + R productivity multiplier + + Workers Cows + - liters per day per cow + + Milk Stock Sales Production + + Leaving Hiring Birth rate revenue + R + price R productivity multiplier + revenue + Death Rate Workers reinvestment + Cows Birth rate + + R Death Rate reinvestment + Stagnating Improvement? ? liters per day per cow + + Milk Stock Sales Production + + + R productivity multiplier + Cows Birth rate + + R Death Rate ? Leaving reinvestment + Sharing learning revenue + Workers Hiring price Leaving Hiring price
  20. 20. Stagnating Improvement problem Performance started to level off after 18 months. Even a doubling of effort failed to produce any futher improvement. Copyright 2013 Value At Work AB www.valueatwork.se 20
  21. 21. mprovement Rate + + What the group shared Improvement Work R + Performance Adoption Fraction + + Improvement Rate Improvement Opportunities B Work smarter + Performance R + Improvement Dynamics 400 Improvements 20 Improvements/Month 0 Improvements 0 Improvements/Month 0 6 12 18 24 30 36 Time Performance : Current Improvement Opportunities : Current Improvement Rate : Current 42 48 54 60 Improvements Improvements Improvements/Month Copyright 2013 Value At Work AB www.valueatwork.se 21
  22. 22. Recommendation Systems Redesign Performance Systems Redesign Incremental Improvments Incremental Improvments Incremental Improvments Time Copyright 2013 Value At Work AB www.valueatwork.se 22
  23. 23. Reactions liters per day per cow + + Milk Stock Sales Production + + + R productivity multiplier + + Leaving + R Birth rate revenue + Workers Hiring Cows Death Rate price Why has it taken so long to discover this method. I have been a manager since 90ies Most team learnings are applicable in our department reinvestment + Improvement Work Adoption Fraction liters per day per cow + + Improvement Rate Improvement Opportunities B + + Performance + + Milk Stock Sales Production + + R + R productivity multiplier + Cows Birth rate + revenue + Workers Leaving Hiring + R price Death Rate reinvestment + liters per day per cow + + Milk Stock Sales Production + + + R productivity multiplier + Cows Birth rate + Leaving + R price Death Rate reinvestment + We want to ge back to work and apply what we have learned now. revenue + Workers Hiring Wow – too many learnings we could apply at once we must prioritize which one to start with
  24. 24. 1. Learning to Learn Regular Goal Sensibility Learningful Win – your point prevails Learn – build shared understanding A B C B A C When Advocating Present options as data but pretend your not. Hide your reasoning Separate data from options. Reveal your reasoning When challenged Defend your view but pretend your not. Invite inquiry into your position as a way to improve it When Inquiring Pin people – to prove them wrong Understand – how is this person right?
  25. 25. 2. Learning through experience liters per day per cow liters per day per cow + Sales Improvement Opportunities B No more slack Improvement Rate + + R Work smarter + Performance Adoption Fraction + + Improvement Improvement Opportunities + R productivity multiplier + Workers R + + R Workers + Cows + price R Birth rate Death Rate Leaving Hiring price revenue + Leaving Hiring Birth rate + R productivity multiplier + revenue + Performance Cows + Sales + + + Rate B + Milk Stock Production + + Improvement Work + + Milk Stock Production Death Rate reinvestment + reinvestment + Improvement Dynamics 400 Improvements 20 Improvements/Month 0 Improvements 0 Improvements/Month 0 Performance : Current Improvement Opportunities : Current Improvement Rate : Current 6 12 18 24 30 36 Time 42 48 54 60 Improvements Improvements Improvements/Month  Lessons from yesterday are applied and tested tomorrow  As tomorrow becomes yesterday test/experiment is validated and learning evolves.
  26. 26. 3. Building knowledge across organization Experience sharing Local teams Team1 Team3 Team2 Pattern seeking Projects Knowledge creating
  27. 27. Systems Thinking Continuum Robust Simulations Test Systems knowledge ladder Simulations Equations Stock and Flow Causal Loop Diagrams Systems Awareness Copyright 2013 Value At Work AB www.valueatwork.se 27
  28. 28. What you can do if you want to learn System Dynamics Read the following books Link to my blog with resources about System Dynamics: http://valueatwork.se/var-borjar-manom-man-vill-lara-sig-systemdynamik/ http://v.gd/learn_SD <=Short version Follow up study by physicist Graham Turner on Limits to Growth study from 1972
  29. 29. Your guide today Rolf Häsänen Systems thinker, speaker. Passionate about improvement, innovation and all things complex. Little know factoids: Juggles kettlebells, Helped UN model Rift valley fever virus, photographs likes factoids. @RolfHasanen Rolf Häsänen www.valueatwork.se
  30. 30. Co-creating High Velocity Organizations Rolf Häsänen Rolf@valueatwork.se +46 70 680 68 12 Co-creating High Velocity Organizations
  31. 31. I will talk about how Systems Thinking helped organizations to: • unlocking the full potential of team learning • create self coaching teams driven by the people focused on what truly matters • capture and share knowledge across organizational boundaries • enable cross organizational teams to design solutions to long lived complex problems • empower management teams to tackle complex business problems and design policies to deal with these In my experience agile and lean organisations are in a unique position to use and benefit from Systems Thinking as many existing mindsets and methods are closely related. My hope is that you will find seeds of useful information or ideas that you can cultivate in your own organization. During the talk I will also put Systems thinking in a context where it is useful and when not to use it.
  32. 32. The foundation of Systems Thinking • Structure generates behaviour – Context plays a significant role in determining how people behave. (I.e. Beer Game) • Mental Models control our world – It is not enough to change a system’s physical structure. (i.e. Gorilla video) • We're an important part of the structure. – In some cases, Pogo's words are the best reminder: "We have met the enemy and he is us." Our normal instinct is normally to blame people not the system they live and work in. Copyright 2013 Value At Work AB www.valueatwork.se 32

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