The slides from the Northern Change Facilitators talk hosted by Clare North at Northern Change Facilitators, 14th April 2016.

1. Leaner Enterprises & Agile Games
The Rise & Fall & Rise… of
Rules
1. Respect the Reality Whistle!
2. See rule 1
Reality Whistle
• 1 short pip = Start
• 1 long pip = Back to Reality
@EtharUK, @Axelisys

2. Corp Plc
Induction
(Act 1)

3. We Make Complex Lego Models…
…Accessible

4. Product Line
Tadpole Tim
£200
Green Tré
£400
Panda King
£1,200

5. ACME Organisation
ACME
Sales & Customer
Services Manufacturing
Quality
Assurance
Pick, Pack &
Ship
= Head of Department

6. Job Description: Sales Executive
Department Salaries
$50/15 seconds basic
• 25% commission per fulfilled sale
• i.e. after delivery/sign-off
• Product Commissions
• Pea Soup Pan = $50
• Green Tree = $100
• Panda King = $300
Responsibilities
• Sell products
• Report to Sales Manager
Description
Must Have Experience of Sales in a high pressure
environment

7. Job Description: Product Engineer
Department Salaries
• $100/15 seconds
Responsibilities
• Create & Build Products to Order
• …and to specification
• Manage Inventory
• Report to Product Manager
Description
Must have experience of building or
creating products or systems.

8. Job Description: Quality Controller
Department Salaries
• $100/15 seconds Base
Responsibilities
• Find problems before delivery
• Report to Quality Manager
Description
Must have experience in quality
control or quality assurance, an eye
for detail and nose for hunting down
problems.

9. Job Description: Fulfilment Operative
Department Salaries
• $100/15 seconds
Responsibilities
• Pick and Pack
• Fulfil Sales
• Deliver Packages
• Obtain customer signature
• Report to Fulfilment Manager
Description
Extensive experience in logistics, packaging and
delivery. Able to get sign-off from customers
and keep to time.

10. Job Description: All Managers!
Salaries
• $100/15 seconds + $500 bonus (subject to profit)
• Payable by the board
Responsibilities
• Efficient department
• Make sure staff are always busy
• Paying staff
• Work Handover
• Transition planning
• Report Performance to Board
Description
Must have 3 years managerial experience. Cash handling
experience. No criminal record.
Your
Department
You

11. Let’s Make Some Money
(Scale: 60 seconds per day. 4 minutes = 4 days)
Go!

12. BACK TO REALITY !!
R

13. Board Meeting
All Management Please Attend. Bringing all reports

14. Key Performance Indicators
Item Expenditure
(£)
Revenue
(£)
Staff Wages 12,000
Inventory White 250
Inventory Green 250
Inventory Black 100
Inventory Yellow 250
Total Expenditure 12,850
Sales Total ?

15. BACK TO REALITY !!
R

16. ACME Organisation
ACME
Sales and
Marketing
Manufacturing
Quality
Assurance
Pick, Pack &
Ship
= Head of Department
R
£
The Value Chain Happens Here!

17. What Causes it?
7 Wastes (+1)
1. Inventory/Stock
2. Transport
3. Motion
4. Waiting
5. Over-processing
6. Overproduction
7. Defects
8. Skills (the +1)
Queuing Problems
• Arrival ≠ Service Rate
• Constraints
• Contention
• Variation
• Chains of Command
• …
R

18. Experimentation
What are the Suggestions?
R

19. Robust Experimentation
R
What’s Happening?
Solution Hypothesise
Enough Data?
Use Sample Size Calculators
Control & Experimental
Groups Make the Change
Run to Sample Size
No More, No Less
Compare Metrics
Most Important Measures First
Evolve to Winner
Incremental Changes

20. External/Far Environment
Near Environment
Immediate Context
Change Horizon
R
YOU

21. Team Reflection (5 minutes)
1. Identify Potential Waste in Team
2. Form Hypothesis for Change
3. Play Scenario Through
R

22. Experiment Boards
R

23. ACME Restructure
ACME
Tadpole Tim Great Tré Panda King
= Head of Department
Sales to Fulfilment Sales to Fulfilment Sales to Fulfilment£ £ £

24. Let’s Make Some Money
(Scale: 60 seconds per day. 4 minutes = 4 days)
Go!

25. Summary
• Optimise the Value Chain, not teams NOT Reporting!
• Familiarise with 7 Wastes & Know how to spot them
• Not always as obvious as you may think
• Improve from You Outwards
• Make Decisions ‘Just-in-Time’. No more, no less
• Parallelise Where Possible
• Cut Down Contention
• Don’t Automatically Employ or Fire Anyone, EVER!
R

26. Useful Links
• Experimental Validation Board (Lean Canvas, Happy Startup, Business Generation)
• http://debane.org/franck/which-canvas-for-my-project/
• Taguchi Experiments
• http://www.qualitytrainingportal.com/resources/doe/taguchi_concepts.htm
• Factor Analysis
• https://en.wikipedia.org/wiki/Factor_analysis
• Anova
• https://en.wikipedia.org/wiki/Analysis_of_variance
• Systems Thinking
• https://en.wikipedia.org/wiki/Systems_thinking
• Theory of Constraints (ToC)
• https://en.wikipedia.org/wiki/Theory_of_constraints
• The Goal – Eliyahu Goldratt (ISBN-13 : 9780884271956)
R
Strategists, Architects, Coders, Advisors &
Activists. Specialists in data driven change.
Proud active contributors to the Tech, Startup and
SME communities.
ethar@axelisys.co.uk @EtharUK, @Axelisys