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Beyond Value Streams: Experimental Evolution in Action
The document discusses the challenges organizations face in adopting agile practices, emphasizing that traditional management methods hinder innovation and effectiveness. It advocates for a shift towards lean thinking and the integration of learning and process improvement at all organizational levels. Various strategies, including value stream mapping and experimental evolution, are highlighted as methods to facilitate change and improve organizational performance.
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Beyond Value Streams: Experimental Evolution in Action
- 1. @agilesensei agilesensei.com a3thinker.com nd yo Be ue al V ms ea tr S on ti n ac ni utio ol lev ta imen r Expe written, illustrated and performed by Claudio Perrone
- 2. I’ve seen thingsmost people wouldn’t believe…
- 3. Like the riseof A Learning organization, fueled by the enlightened self-interest of ITS people
- 4. I saw howCuriosity and courage can generate endless options
- 5. ... And whatit means to develop, and honor people for their ideas & contribution.
- 6. All those… moments...will be lost in time like tears... in... rain
- 7. % of organizations Today,Many of us face a different world… effectiveness (*) Courtesy: Steve McConnell – After the Gold Rush & Bob Marshall (“Marshall Model of Organizational Effectiveness” www.fallingblossoms.com)
- 8. It’s a worldwhere Invention and innovation are replaced by organizational conformity…
- 9. … Knowledge developmentIS annihilated by bureaucracy, fire-fighting, and command & control
- 10. Companies go throughmany reorganizations, only to stay the same Organization chart Blame flow God Victims Rule makers Controllers Enforcers Losers
- 11. The traditional agileapproach towards management Hasn’t been particularly effective … You are a “chicken”. You shouldn’t even talk
- 12. Arguably, organizations can’tbe “agile” if only the development teams are doing Agile Typical “Agile” Enterprise SMs
- 13. It’s a warwe can’t possibly win…
- 14.
- 15.
- 16. “ All we aredoing is looking at the timeline from the moment the customer gives us an order to the point we can collect the cash. And we are reducing that timeline by removing the non-value-added wastes. -‐-‐-‐ TaiichiOhno, Founder of TPS
- 17. Customers Lean destroyed themyth that splitting work Kaizen Current State Value-Stream Map in big batches improves the economies xx to yy (high season) Period calculated: from of Acme Reinsurance Push arrow F: 200/month scale. Date: xxx inbox Author: Claudio Perrone Average: 10/day Pull arrow Proc. Lead Time: 71.75h Non VAT 3d Value Adding Time (VAT) 0.25h 2d 2.5d 5h 2h 1h 1h Calculate premium 2h Submit quote Proc. Efficiency 12.9% Train on Kanban pulling Reinsurance placement Request for reinsurance Register 20jobs Clean & analyze data FIFO Reduce batch sizes 10jobs $ value Calculate risk 2jobs due date Clarify classes of service C/T too long Setup Kanban board 5jobs Improve system validation Total Cycle Time: 9.25h
- 18. … And providedmany “tools” to obliterate Customers the competition Future State Value-Stream Map Period calculated: from xx to yy (high season) Acme Reinsurance Date: xxx F: 200/month Pull arrow Author: Claudio Perrone Average: 10/day Proc. Lead Time: 46.25h Non VAT 2d Value Adding Time (VAT) 0.25h 1d 1.5d 4h 2h 1h 2h 1h Calculate premium Submit quote Proc. Efficiency 17.8% Train on Kanban pulling Reinsurance placement Request for reinsurance Register MAX 5 jobs Reduce batch sizes Clean & analyze data MAX 4 jobs Calculate risk MAX 2jobs Clarify classes of service C/T too long Setup Kanban board MAX 2jobs Improve system validation Total Cycle Time: 8.25h
- 19. “but that’s onlypart of the story…”
- 20. Why do youallow your competitors to copy all your tools?
- 21. What they needto see… is not visible What the hell is He talking about?
- 22.
- 24.
- 25. W. Edwards demingbelieved that… “ 95% of variation in worker’s performance is governed by the systems ---W. Edwards Deming
- 26. …Which maybe explainswhy the purpose of the Lean systems society is to… “Improve the world by improving its systems.” Lean Systems Society “Excellence in Managing Complexity” http://leansystemssociety.org/
- 27. Perhaps… “ We should workon our processes, not the outcome of our processes. ---W. Edwards Deming
- 28. “At Toyota, improvingand managing are one and the same” Traditional thinking: Normal daily management + improvement Toyota’s thinking: Normal daily management = Process improvement
- 29. “ Some people questiontargets. Question arbitrary targets instead. "How are we going to change our systems to achieve it?” That’s an excellent question. -- Claudio Perrone
- 30. In Lean, Managershave a purpose... Value Stream
- 31. …and (at least)a method.
- 32. I believe “ Lean isa business strategy to make money* THROUGH the development of people (*) replace with “create customer value” or “reach results”, if you prefer
- 33. So, maybe... “ It’s notwhat you do but rather what you learn by doing it that matters. -- Claudio Perrone
- 34. “learning to see”involves bringing to the surface what we learn Value Stream Learning Stream(s)
- 35. An A3 report,for example, “surfaces” a learning stream around a problem
- 36. A set ofkaizen memos can represent another Learning stream… Kaizen memo: Kaizen Memos Before improvement: We didn’t trace the small, continuous improvements to our work Action taken: Created “Kaizen memos” to post on an “implemented ideas” board Effect: Team members trace and celebrate every implemented idea, even the smallest! Submitted by: Claudio Perrone Date:
- 37. …Which can alsobe “SURFACED” on a kaizen board
- 38. What other Learning streams canwe seek to surface?
- 39.
- 40. How about changeefforts?
- 41. More specifically… How doyou introduce and surface change in your organization?
- 42.
- 43. “Once upon atime, in a ‘fortune 50’ land, A prince lived in a much troubled castle”
- 44. “after reading agreat book, he thought” Scrum is AWESOME!
- 45. Fascinated by thebenefits that a mature agile organization can bring… Visibility Business Value Agile Development Adaptability Risk Traditional Development
- 46. … he said: Iwant you to turn 33+ teams using scrum. Do it. Now.
- 47. Scrum may bea great solution, but… …What’s the problem?
- 48. I went tothe “gemba”, the place were the value is actually created. After all… “ ... A desk is a dangerous place from which to view the world. --- John le Carre
- 49. After some factfinding, I shared my observations and insights… Insights Lean Change Cycle Review Options Introduce MVC Prepare
- 50. Copies of mypreliminary A3 were lying on the table… http://a3thinker.com/deck
- 51. after 1½ yearsof waterfall Development, The company was experiencing a seemingly endless integration hell
- 52. many People whereblaming each other for what was happening
- 53. What could wedo? Insights Lean Change Cycle Review Options Introduce MVC Prepare
- 54. The ship wassinking fast… So, “Do nothing” was not an option
- 55. with that urgency, inthat context, And with that complexity… …scrum was not a viable option
- 56. In the end,we agreed to: - aim at a pre-release for a major customer - focus on flow optimization
- 57. change was certainlygoing to be disruptive (and not so “minimal”) Insights Lean Change Cycle Review Options Introduce MVC Prepare
- 58. …But desperate timescalled for desperate measures Insights Lean Change Cycle Review Options Introduce MVC Prepare
- 59. “we articulated ourChange strategy” Urgency Target State Stable prerelease deployed to Major Client by xx If we don’t release soon, the ship will sink! Communication Vision Cadenced meetups Pre-Release to Major Client by Focus on JIT fixes Cross-funct. teams Kanban Committments … R&D Teams Testing Dep Success Criteria Actions Change Participants Mgmt Released by xx QA ok Major client happy Review MMFs Wins morale https://leanpub.com/leanchangemethod Baseline for performance Keep job Keep Client
- 60. we also negotiatedand challenged certain (self-serving) policies
- 61. We introduced leantechniques very pragmatically Insights Lean Change Cycle Review Options Introduce MVC Prepare
- 62. We moved hundredsof people in just 3 days, to reduce many functional barriers Programming Team Testing Team Programming Team Documentation Team Cross-functional Team Functional Team Cross-functional Team
- 63. teams adopted akanban bord, each fine-tuned according to their specific workflow Development Ordered Backlog 3 6 Rq. Fixed DOD DOR Expedite 1 PreTesting CD Ready Smoke Test PreTested Done DOD Integration Done Integration Team (Complex configuration) DOD
- 64. We reviewed andvalidated our progress and assumptions regularly Insights Lean Change Cycle Review Options Introduce MVC Prepare
- 65. focus on flowoptimization, Shared sense of Urgency and executive sponsorship enabled us to deliver fast, against all odds
- 66. What would your firstlean change implementation look like?
- 67. Start small! Thesedays, When I first engage with any team…
- 68. …I often startwith a retrospective to collect initial insights (and to obtain permission to help)…
- 69. I USE THATDATA TO feed a change board And SYSTEMATICALLY DEFINE AND negotiate explicit change experiments Observations & insights Options Possible Experiments This Week Week + 1 Week + 2 Week + 3 Archive
- 70. That was a(powerful) learning stream!
- 71. BUT… HOW DO WEKNOW THAT WE ARE actually CREATING VALUE?
- 72. It’s hard. Weaccept that… “… complexity and uncertainty are natural to social systems and knowledge work.” http://leansystemssociety.org/
- 73. Are we doomed? “ Ifyou get good at delivering shit faster, you just get a lot of shit. --Jeff Patton
- 74.
- 75. Some time ago,I decided to write a book on A3 thinking
- 76. But I didn’twant to write a book that nobody reads…
- 77. So, I Documentedmy initial assumptions on a Lean canvas Top 3 Problems Existing alternatives Solution Key metrics Cost structure Unique Value Proposition Unfair Advantage Channels Revenue streams Customer Segments Early adopters
- 78. … and then,I went “out of the building”, to validate those assumptions
- 79. I shaped mythinking around the the build/measure/ learn loop through an experiment board Learn idea (whether to pivot or persevere) Build (Turn ideas into product) (often a series of MVPs) data Product Measure (How customers respond)
- 80. …Which, today, consistsof observations/ insights, open questions, and ideas…
- 81. targets, analysis andhypotheses…
- 82. Experiments (identify, definemetric, build)
- 83. Validation (qualitative &quantitative)
- 84.
- 85. In other words… “ Iexecute tasks To develop features That are part of experiments That I run to validate hypotheses That I formulate thanks to observations about the world that surrounds us. -- Claudio Perrone
- 86. My mindset shifted: “Fromconcept to cash” to “From question to knowledge base”
- 87. Ironically , I never wrotethat book
- 88. people needed somethingto help them when and where it mattered most
- 89. So I testedan idea with a low fidelity MVP
- 90. … captured enthusiasticearlyvangelists with a glimpse of what would come next…
- 91. And released afamily of thinking tools… www.a3thinker.com
- 92. to change theworld. one problem at a time. www.a3thinker.com/deck
- 93.
- 94. “ It’s not whatyou do but rather what you learn by doing it that matters. -- Claudio Perrone
- 95. “ It’s not whatyou do but rather what you learn by doing it that matters. But then... -- Claudio Perrone
- 96. “ It’s not whatyou do but rather what you learn by doing it that matters. But then... it’s not what you learn, but rather what you do with it that matters. -- Claudio Perrone
- 97. Thank You! Claudio Perrone claudio@agilesensei.com www.agilesensei.com www.a3thinker.com www.twi@er.com/agilesensei