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Agile Vancouver
The Lean Thinking Organization
Lawell Kiing                     April 2012
Senior Dir Engineering, SAP
Lean Thinking

1. History/background
   ● Lean principles
2. Value thinking
3. Management in Lean
4. Super stars vs. team vs. the SWARM
5. The devastating impact of waste
6. Slack thinking
History and Background

History of management
● Importance to human development
● Limits when applied to knowledge work in a complex ecosystem
● Organization as machine versus organization as organism

How Lean in software differs from Lean in manufacturing
● Continuous design cycle
  – Manufacturing: design then build
  – Software: design, implement, test, repeat…
● Creative human endeavor with limited physical bounds
  – Tools bench means very different
  – Inventory means very different
Lean Transformation


"This transition from an agrarian and craft-based society to an
industrial economy required an epical re-socialization of the
work force. Unruly and independent-minded farmers, artisans
and day laborers had to be transformed into rule-following,
forelock-tugging employees. 100 years on, this work
continues, with organizations around the world still working
hard to strap rancorous and free-thinking human beings into
the strait-jacket of institutionalized obedience, conformance,
and discipline.” - Gary Hamel
Lean House
Lean Principles
Value Thinking

How is productivity calculated in a typical software shop?
-Amount of code written
-Number of defects fixed
-Number of features implemented and/or delivered
-Number of specifications written
-Speed of delivery
-Speed of changes accepted (“agility”)

“Productivity is a measure relating a quantity or quality of
output to the inputs required to produce it. Often means labor
productivity, which is can be measured by quantity of output
per time spent or numbers employed. Could be measured in,
for example, U.S. dollars per hour.” – economics.about.com

But does this make any real sense?
Value Thinking
Value Thinking

Concept to Cash
•Denotes as simple as it gets the entire value chain
•If it does not ultimately deliver value to the customers so that
they pay cash for it, then it is literally waste
•With that thinking in mind, all previous metrics have to be re-
examined
•With value being core, than the “numbers” metrics have an
opposite effect
•E.g. a team that writes 100,000 LOC which contains 50
features vs. a team of equal size that writes 10,000 LOC that
contains 10 features would be considered more productive in
the previous metric.
•But with value in the equation, if each team‟s product is used
by its customers with only 10 features fully utilized (delivering
value), then the second team would instead be considered
more productive
Management in Lean

Software on its own is a very young industry
Management is often promoted because of their technical
abilities, not management
Management in Lean

But that is not a scalable model. In most instances, because
they are technologists, not managers, most high tech
companies have “low-tech” people structures
Management in Lean

Lean/Agile does not dictate what management structure is
like, but it clearly calls for different principles and viewpoints
between team and management.

Management:
•Mentoring, teaching, thinking, coaching, spread
knowledge, develop people, go see, etc…

People:
•Long term great engineers, entrepreneurial chief product
manager, team/individuals continue to evolve their own
practices and improvements, cross-functional, etc…
Management in Lean
Management in Lean

Mike Cohn – CDE: Container, Differences, Exchanges
● Leveraging structure, influences and conversations rather than
  command-n-control

New Thinking
● “Managers build teams, teams build software”
● “Managers complete their teams, not compete with their teams”
● Differences between working on the business vs. working in the
  business
  – Working in the business creates today
  – Working on the business creates tomorrow
Superstars, team and SWARM

How are most teams shaped in Lean/Agile?

•Many retain what they have before
• Superstars – team is really the few superstars (or just the one)
• Team – developers and testers, but mostly working on their own
• Component based - un-clear value, handoffs necessary

•Lean asks for cross-functional teams
Lean Cross Functional Team
    Cross Functionality
                                                          Overall Team Skills
    ● Delivers functional value
    ● Employs a diversity of ideas
    ● Fosters common end-to-end understanding
    ● Increases flexibility of individuals and teams
    ● Allows for different kinds of experimentation



    Favoring Generalizing Specialists
    ● One or more fields of expertise
    ● General knowledge of software developmentMe today     Me in 2 years   Me in 5 years


    ● General knowledge of business domain
    ● Actively seeking to gain new skills



© SAP 2010 / Page 16
SWARM

But even with cross-functional teams, you can wind up with
waterfall

Business as usual:
•Each developer(s) pick up a feature, works till about mid-sprint,
then testers pick them up and rushes to get them all tested and
bugs fixed
•What’s wrong with this picture: handoffs, delays, working on
lowest value, testers flow, silos and possible nothing is DONE

SWARM:
•Swarm the team on the highest priority item until it is DONE
•Then start on the next one
•Experts rotate from item to item
Devastating Impact of Waste

For Lean, there are 7 main wastes:
Devastating Impact of Waste

However, waste is now part of our development cycles.
•It is expected and accepted
•It is used as an indicator when things are finished
•It is used to measure productivity and even success
•It is even celebrated

But what is true impact (Lean Thinking):
•It bothers the customers, a LOT!
•It is completely unpaid work
•It causes very uneven loads/batches, can cause massive overtime
•It takes away your ability to do new work, slows you down
• My example, if we reduced just 5%, we could have gained the
    equivalent of a team of 90 people
•It promotes completely the wrong behavior
Devastating Impact of Waste
Slack Thinking

The key to management success is that every ounce of
capacity is used in production
•The more production is done in even less capacity, the higher the
reward

•But this is false thinking and can lead instead of things slowing
down or waste creation
•Such examples as:
• sub-optimization
• queues
• push mode
• no slack
Slack Thinking

Slack really takes a mindset change
•The concept of having slack in the system to increase efficiency is
counter intuitive

•But in practice, no slack cost the following:
• No feedback, measurements and retrospectives
• No learning and development
• No sharing of information and knowledge
• No improvements
• No risk prevention/management
• No waste management

•It often results in:
• “I am too busy fixing the problem to be fixing the PROBLEM”
• “Penny wise, pound foolish”
Final Thoughts

“It's not the strongest that survive, nor the most intelligent, but
the one most responsive to change.” – some professor

“You must be the change you want to see in the world.” -
Gandhi

“Leadership is not something you do to people, it is something
you do with people.”

“Of the best leaders, when the job is done, the task is
accomplished, the people will say „We have done this
ourselves.” - Lao Tzu 500 BC
“It's not the strongest that
 survive, nor the most
 intelligent, but the one
 most responsive to
 change.”

        – some professor
Thank You
Lawell Kiing
Senior Director Engineering
SAP Canada
Lawell.kiing@sap.com

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The lean thinking organization final

  • 1. Agile Vancouver The Lean Thinking Organization Lawell Kiing April 2012 Senior Dir Engineering, SAP
  • 2. Lean Thinking 1. History/background ● Lean principles 2. Value thinking 3. Management in Lean 4. Super stars vs. team vs. the SWARM 5. The devastating impact of waste 6. Slack thinking
  • 3. History and Background History of management ● Importance to human development ● Limits when applied to knowledge work in a complex ecosystem ● Organization as machine versus organization as organism How Lean in software differs from Lean in manufacturing ● Continuous design cycle – Manufacturing: design then build – Software: design, implement, test, repeat… ● Creative human endeavor with limited physical bounds – Tools bench means very different – Inventory means very different
  • 4. Lean Transformation "This transition from an agrarian and craft-based society to an industrial economy required an epical re-socialization of the work force. Unruly and independent-minded farmers, artisans and day laborers had to be transformed into rule-following, forelock-tugging employees. 100 years on, this work continues, with organizations around the world still working hard to strap rancorous and free-thinking human beings into the strait-jacket of institutionalized obedience, conformance, and discipline.” - Gary Hamel
  • 7. Value Thinking How is productivity calculated in a typical software shop? -Amount of code written -Number of defects fixed -Number of features implemented and/or delivered -Number of specifications written -Speed of delivery -Speed of changes accepted (“agility”) “Productivity is a measure relating a quantity or quality of output to the inputs required to produce it. Often means labor productivity, which is can be measured by quantity of output per time spent or numbers employed. Could be measured in, for example, U.S. dollars per hour.” – economics.about.com But does this make any real sense?
  • 9. Value Thinking Concept to Cash •Denotes as simple as it gets the entire value chain •If it does not ultimately deliver value to the customers so that they pay cash for it, then it is literally waste •With that thinking in mind, all previous metrics have to be re- examined •With value being core, than the “numbers” metrics have an opposite effect •E.g. a team that writes 100,000 LOC which contains 50 features vs. a team of equal size that writes 10,000 LOC that contains 10 features would be considered more productive in the previous metric. •But with value in the equation, if each team‟s product is used by its customers with only 10 features fully utilized (delivering value), then the second team would instead be considered more productive
  • 10. Management in Lean Software on its own is a very young industry Management is often promoted because of their technical abilities, not management
  • 11. Management in Lean But that is not a scalable model. In most instances, because they are technologists, not managers, most high tech companies have “low-tech” people structures
  • 12. Management in Lean Lean/Agile does not dictate what management structure is like, but it clearly calls for different principles and viewpoints between team and management. Management: •Mentoring, teaching, thinking, coaching, spread knowledge, develop people, go see, etc… People: •Long term great engineers, entrepreneurial chief product manager, team/individuals continue to evolve their own practices and improvements, cross-functional, etc…
  • 14. Management in Lean Mike Cohn – CDE: Container, Differences, Exchanges ● Leveraging structure, influences and conversations rather than command-n-control New Thinking ● “Managers build teams, teams build software” ● “Managers complete their teams, not compete with their teams” ● Differences between working on the business vs. working in the business – Working in the business creates today – Working on the business creates tomorrow
  • 15. Superstars, team and SWARM How are most teams shaped in Lean/Agile? •Many retain what they have before • Superstars – team is really the few superstars (or just the one) • Team – developers and testers, but mostly working on their own • Component based - un-clear value, handoffs necessary •Lean asks for cross-functional teams
  • 16. Lean Cross Functional Team Cross Functionality Overall Team Skills ● Delivers functional value ● Employs a diversity of ideas ● Fosters common end-to-end understanding ● Increases flexibility of individuals and teams ● Allows for different kinds of experimentation Favoring Generalizing Specialists ● One or more fields of expertise ● General knowledge of software developmentMe today Me in 2 years Me in 5 years ● General knowledge of business domain ● Actively seeking to gain new skills © SAP 2010 / Page 16
  • 17. SWARM But even with cross-functional teams, you can wind up with waterfall Business as usual: •Each developer(s) pick up a feature, works till about mid-sprint, then testers pick them up and rushes to get them all tested and bugs fixed •What’s wrong with this picture: handoffs, delays, working on lowest value, testers flow, silos and possible nothing is DONE SWARM: •Swarm the team on the highest priority item until it is DONE •Then start on the next one •Experts rotate from item to item
  • 18. Devastating Impact of Waste For Lean, there are 7 main wastes:
  • 19. Devastating Impact of Waste However, waste is now part of our development cycles. •It is expected and accepted •It is used as an indicator when things are finished •It is used to measure productivity and even success •It is even celebrated But what is true impact (Lean Thinking): •It bothers the customers, a LOT! •It is completely unpaid work •It causes very uneven loads/batches, can cause massive overtime •It takes away your ability to do new work, slows you down • My example, if we reduced just 5%, we could have gained the equivalent of a team of 90 people •It promotes completely the wrong behavior
  • 21. Slack Thinking The key to management success is that every ounce of capacity is used in production •The more production is done in even less capacity, the higher the reward •But this is false thinking and can lead instead of things slowing down or waste creation •Such examples as: • sub-optimization • queues • push mode • no slack
  • 22. Slack Thinking Slack really takes a mindset change •The concept of having slack in the system to increase efficiency is counter intuitive •But in practice, no slack cost the following: • No feedback, measurements and retrospectives • No learning and development • No sharing of information and knowledge • No improvements • No risk prevention/management • No waste management •It often results in: • “I am too busy fixing the problem to be fixing the PROBLEM” • “Penny wise, pound foolish”
  • 23. Final Thoughts “It's not the strongest that survive, nor the most intelligent, but the one most responsive to change.” – some professor “You must be the change you want to see in the world.” - Gandhi “Leadership is not something you do to people, it is something you do with people.” “Of the best leaders, when the job is done, the task is accomplished, the people will say „We have done this ourselves.” - Lao Tzu 500 BC
  • 24. “It's not the strongest that survive, nor the most intelligent, but the one most responsive to change.” – some professor
  • 25. Thank You Lawell Kiing Senior Director Engineering SAP Canada Lawell.kiing@sap.com

Editor's Notes

  1. Source : H.Kniberg & M.Skarin - http://www.infoq.com/minibooks/kanban-scrum-minibooAjouter slides / Example de KanBan -> ScrumBan , Scrum -> ScrumBanKanBan – Another way to be Agile