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Using Agile and Lean to Lead Business Transformation,[object Object],A Case Study,[object Object]
Dennis StevensSynaptusdennis.stevens@synaptus.com	770.851.8025web: www.synaptus.comblog: www.dennisstevens.comtwitter.com/dennisstevensAgile Project ManagementAgile Project RecoveryKanbanLean – Agile Transformation,[object Object]
Agenda,[object Object],Obstacles to Business Transformation,[object Object],Overcoming Obstacles to Business Transformation,[object Object],Case Study,[object Object],Situation,[object Object],Initial Assessment,[object Object],Introducing Kanban to the development organization,[object Object],Approach to Achieving the Business Objective,[object Object],Introducing Kanban at the strategy execution level,[object Object],Ceremonies for the Strategy Execution Kanban,[object Object],Results of our effort,[object Object],Continuous Transformation - Boyd’s O-O-D-A,[object Object]
What makes transformation hard?,[object Object],#1 	Difficulty translating transformation goals into specific 	action,[object Object],#2 	Methods of problem solving that aren’t sufficiently 	collaborative to address different perspectives and 	competing concerns,[object Object],#3	Challenges coordinating across teams resulting a 	lack of focus and abandoned efforts,[object Object]
By the way,[object Object],Culture, culture, culture,[object Object],The obstacles to successful software development are often not in the software development organization,[object Object],We have to change the habits and conversations in the organization to make lasting change,[object Object],Lean and Agile provide us tools to overcome the obstacles to transformation – while creating the potential for changing the culture,[object Object]
Overcoming transformation challenges,[object Object],#1 	Difficulty translating transformation goals into specific action,[object Object],Business Value-Performance Heat Map,[object Object],(Story mapping, Business Value, Performance),[object Object],Explicitly connect the transformation effort to business capabilities,[object Object]
Overcoming transformation challenges,[object Object],#2 	Methods of problem solving that aren’t sufficiently collaborative to address different perspectives and competing concerns,[object Object],A3 Problem Solving(Lean),[object Object],Leverage a proven collaborative problem solving and planning tool ,[object Object]
What makes transformation hard?,[object Object],#3	Challenges coordinating across teams resulting a  lack of focus 	and abandoned efforts,[object Object],Transformation Execution Kanban,[object Object],(Lean -Agile),[object Object],Use visible tools for tracking and coordinating the status of transformation activities,[object Object]
Case Study: Situation,[object Object],$100 million retail service provider,[object Object],Merchandising,[object Object],Remodeling,[object Object],Construction,[object Object],Resets,[object Object],The economy has drastically reduced remodeling and construction,[object Object],Significant shift in the market eliminates merchandising,[object Object],The entire business focus is now resets ,[object Object],Not traditionally profitable – and the business processes and technology were not optimized to perform resets,[object Object]
Initial Findings: Technology,[object Object],Software development was technically competent but not very mature and in churn,[object Object],The system had been designed in information silos,[object Object],Spreadsheets and personal recall were used to run the business - the spreadsheets were the glue between the information silos,[object Object],There was a lack of access to any management information in the system – there was no useful reporting – management couldn’t get out what they needed,[object Object],Over 40% of technology developed over four years had not been deployed in the business,[object Object]
Approach: Technology,[object Object],Performed information flow analysis against current systems and processes to address the new needs,[object Object],Six systems and over a dozen spreadsheets,[object Object],Swivel Chair Integration,[object Object]
Approach: Technology,[object Object],Established Kanban board for development - visualized their process and all the existing work,[object Object],Established three classes of service based on source of funding,[object Object],Still have not explicitly limited WIP on the development board,[object Object],Major bottleneck was in customer acceptance ,[object Object],    Next          Analysis       Development          Acceptance      “Done-Done”,[object Object],       (5)               (3)                    (5)                             (3),[object Object],NPD,[object Object],Enhance,[object Object],Core System,[object Object],Enhancex of 40,[object Object]
Identifying the Constraint,[object Object],Having visibility into the constraint create the opportunity for conversation with the business.,[object Object],Why is the stuff the business asked us to build not the stuff the business needs?,[object Object]
Addressing the Constraint,[object Object],We had development under control – but we had to get rapidly get business results,[object Object],We needed to help the business articulate the most important requirements to technology,[object Object],We needed to understand the conflicting concerns in the business that resulted in the low adoption rate,[object Object],We needed to create focus on implementing change in a time of rapid shift, turmoil, and duress,[object Object]
Initial Findings: Business,[object Object],Owners: Very successful entrepreneurs with deep understanding of the industry – innovative and strategic thinkers,[object Object],Management: ,[object Object],Tactically focused, in transition, stretched very thin,[object Object],Lack clear line of site to their costs or economic drivers in this new business model,[object Object],Out of necessity run the business on intuition and response to crisis ,[object Object],Back office: Very hard working knowledgeable people,[object Object],Overall: Not a demonstrated history of getting ideas from concept to implementation,[object Object]
Approach: Business,[object Object],Facilitated Strategy Articulation ,[object Object],based on Strategic Goals, COGS model and SWOT analysis,[object Object],We changed the senior leadership conversation from “technology” to “business outcomes”,[object Object]
Approach: Business,[object Object],Analyze business model to identify capabilities,[object Object],This changed the line manager conversation from local improvement to system improvement,[object Object]
Approach: Business,[object Object],Assess the Business Capabilities,[object Object],Value (border) ,[object Object],How strongly does this affect focusing objectives?,[object Object],How strongly does this affect standard operating objectives?,[object Object],Is this value-added?Supporting? Controlling?,[object Object],Performance (fill),[object Object],How is this capability performing today?,[object Object],Would a small improvement here improve BT bottom line performance?,[object Object],Do we understand how to improve performance?,[object Object],Risk (dot),[object Object],How difficult is this capability to scale (for CR1)?,[object Object],Is this constrained by Customer (HD) policy?,[object Object],Is the process complex? Highly dependent on other capabilities? Subject to compliance issues?,[object Object],Verb Noun(Action – Entity),[object Object],KEY,[object Object],High Value,[object Object],Medium Value,[object Object],Low Value,[object Object],Low Performing,[object Object],Medium Performing,[object Object],High Performing,[object Object],High Risk,[object Object],Moderate Risk,[object Object],Low Risk,[object Object]
Capability Value Performance Map,[object Object],Building this model resulted in a lot of explicit conversations about business value, performance, and risk at the business outcome level.,[object Object]
Assess the model,[object Object],Capability Map gave us clarity on what the business did and what we had to change to deliver value.,[object Object],Assessing the model determined what was most important to the business.,[object Object],The business was aligned with the outcome because they developed it.,[object Object]
Approach: Business,[object Object],The most important areas to focus on became clear – to technology, to management, and across the business.,[object Object],Swivel Chair Integration,[object Object],We aren’t trying please every individual – the conversations are about the bigger business outcomes.,[object Object]
Overcoming Obstacles to Transformation,[object Object],#1 Difficulty translating transformation goals into 	specific action,[object Object],Strategy is clear and there is a shared context within the business,[object Object],Clearly understand what capabilities need to change and the impacted processes and technology,[object Object],Different perspectives and competing concerns have been addressed,[object Object]
A3 Problem Solving: Overview,[object Object]
A3 Problem Solving: Outcome,[object Object]
A3 Problem Solving: Outcome,[object Object]
A3 Problem Solving: Analysis,[object Object]
A3 Problem Solving: Analysis,[object Object]
A3 Problem Solving: Plan,[object Object]
A3 Problem Solving: Sequence, Timing and Owner,[object Object]
Overcoming Obstacles to Transformation,[object Object],#2 Methods of problem solving that aren’t sufficiently collaborative to address different perspectives and competing concerns,[object Object],Management follows up (some actually do) with their line managers from their A3s.,[object Object],We have a clear understanding of what needs to happen to delivery the solution – not just the technology,[object Object],We have explored unintended consequences and gained acceptance of the solution from the impacted parts of the organization,[object Object],We understand the relationship between the technology deliverables and the other parts of the organization,[object Object]
Now the big obstacle,[object Object],Execution,[object Object],Technology is a small component of the solution - how can we coordinate the necessary process and organizational changes across HR, the field, accounting, and operations?,[object Object],How can we get technology deployed so that the business realizes the value?,[object Object],How can we get management to maintain focus?,[object Object]
Strategy Execution Kanban Board,[object Object],Expand / collapse tasks from the plan in each column,[object Object],    Next                 Analyze                      Prepare                   Execute              Measure,[object Object],Expedite,[object Object],AcceptanceCriteria,[object Object],AcceptanceCriteria,[object Object],AcceptanceCriteria,[object Object],AcceptanceCriteria,[object Object]
Strategy Execution Kanban Board,[object Object]
Strategy Execution Kanban,[object Object]
Strategy Execution Ceremonies,[object Object],Walk the board with management once a week. ,[object Object],Blocked items are flagged with a red tab with a note of who needs to unblock it.,[object Object],There is a lot of focus on getting stories on the technology board through acceptance now. ,[object Object],We have an expedite column on the management board. We limit crisis to one at a time. Board ensures current projects maintain (regain) focus.,[object Object]
Overcoming obstacles to transformation,[object Object],#3 Challenges coordinating across teams resulting a lack of focus and abandoned efforts,[object Object],Expand and collapse model makes coordination explicit,[object Object],We have structured conversations about how to get to “Done”,[object Object],The business is motivated to pull work from acceptance in development – we have elevated the constraint,[object Object]
Results,[object Object],Achieved focus across the business,[object Object],Reduction in the crisis management tendency,[object Object],Technology deployed on time – continue to refine and deploy enhancements in flight,[object Object],Provide management with real time data to manage their resets,[object Object],Business is delivering work profitably,[object Object],Trust has been established between us (effectively the technology group and PMO) and the business,[object Object],Continuous transformation model in place in the business,[object Object]
Success Attributed To,[object Object],Visual control of the Kanban board,[object Object],Focus,[object Object],Momentum,[object Object],Shared Alignment,[object Object],Visual nature of the strategy articulation,[object Object],Decisions by developers and management are made in a shared strategic context,[object Object],Collaborative nature of the capability map, A3, and the Kanban board,[object Object],Shared understanding,[object Object],Participative design,[object Object],Accountability,[object Object],Rapid maturing of the organization regarding strategy execution,[object Object],Courage and commitment of the Beam Team leadership,[object Object]
Model of Continuous Transformation,[object Object]
Time as a Strategic DifferentiatorThe new Bargain of Agility,[object Object],The primary concept of the new Bargain of Agile is to expend the least resource possible to exploit the next most valuable opportunity.,[object Object],Observe,[object Object],Orient,[object Object],Decide,[object Object],Act,[object Object],Unfolding circumstances,[object Object],Implicit guidance and control,[object Object],Implicit guidance and control,[object Object],Understand,[object Object],Culture,[object Object],Tradition,[object Object],New Information,[object Object],Previous Experience,[object Object],Synthesis,[object Object],Action,[object Object],(Test),[object Object],Observations,[object Object],Feed,[object Object],Forward,[object Object],Feed,[object Object],Forward,[object Object],Decision,[object Object],Feed,[object Object],Forward,[object Object],Outside information,[object Object],Feedback,[object Object],Unfolding interaction with the environment,[object Object]
Dennis StevensSynaptusdennis.stevens@synaptus.com	770.851.8025web: www.synaptus.comblog: www.dennisstevens.comtwitter.com/dennisstevensAgile Project ManagementAgile Project RecoveryKanbanLean – Agile Transformation,[object Object]

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Using agile and lean to lead business transformation agile 2010

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Hinweis der Redaktion

  1. IntroductionSituationInitial AssessmentIntroducing Kanban to the development organizationApproach to Achieving the Business ObjectiveIntroducing Kanban at the strategy execution levelCeremonies for the Strategy Execution KanbanResults of our effortApplication of Boyd’s O-O-D-A
  2. merchandising offering went back in-house due to customer margin pressure and conflict of interest concerns; Remodeling and Construction were significantly down due to lack of investment by customers; leaving resets as the core business
  3. Everything needed to be fixed. Within the timeframe we couldn’t fix the entire system – we need to focus on just the areas that we could change to achieve the strategy.
  4. NPD has since moved to an online board – not visible on our board anymore.Switched payment for Defects from hours committed to hours moved to Done-DoneCore system WIP is limited from the strategy board – that’s nextBy the time the developers delivered anything – the business had moved on. Either solving it with a spreadsheet or deciding it wasn’t actually that important to fix. The problems would then reemerge later – repeating the same crisis over and over.
  5. Everything needed to be fixed. Within the timeframe we couldn’t fix the entire system – we need to focus on just the areas that we could change to achieve the strategy.
  6. Notice the result of the A3 shows three key standards to get work done.Outcome – Deliverables in the context of the problem & prioritized (isn’t this what we want from the business?)Sequence – what order do they need to be doneTiming – When will it be done (can be assigned at the last responsible moment)Owner - Coordination
  7. Notice the result of the A3 shows three key standards to get work done.Outcome – Deliverables in the context of the problem & prioritized (isn’t this what we want from the business?)Sequence – what order do they need to be doneTiming – When will it be done (can be assigned at the last responsible moment)Owner - Coordination
  8. Notice the result of the A3 shows three key standards to get work done.Outcome – Deliverables in the context of the problem & prioritized (isn’t this what we want from the business?)Sequence – what order do they need to be doneTiming – When will it be done (can be assigned at the last responsible moment)Owner - Coordination
  9. Notice the result of the A3 shows three key standards to get work done.Outcome – Deliverables in the context of the problem & prioritized (isn’t this what we want from the business?)Sequence – what order do they need to be doneTiming – When will it be done (can be assigned at the last responsible moment)Owner - Coordination
  10. Notice the result of the A3 shows three key standards to get work done.Outcome – Deliverables in the context of the problem & prioritized (isn’t this what we want from the business?)Sequence – what order do they need to be doneTiming – When will it be done (can be assigned at the last responsible moment)Owner - Coordination
  11. Notice the result of the A3 shows three key standards to get work done.Outcome – Deliverables in the context of the problem & prioritized (isn’t this what we want from the business?)Sequence – what order do they need to be doneTiming – When will it be done (can be assigned at the last responsible moment)Owner - Coordination
  12. Notice the result of the A3 shows three key standards to get work done.Outcome – Deliverables in the context of the problem & prioritized (isn’t this what we want from the business?)Sequence – what order do they need to be doneTiming – When will it be done (can be assigned at the last responsible moment)Owner - Coordination
  13. Today, the line managers are more interested because they need to move their card to execution – defects often still linger in acceptance.
  14. Development and deployment was iterative. Basics in place at kick off. Continued to refine and deploy enhancements in flight. Despite lack solid engineering practices. Aggressively followed up daily on use of the system.The engagement has been extended and the contingency will be paid
  15. OODAMilitary strategist Colonel John Boyd described the OODA loop for fighter pilots. It has since been applied to define the Marine Corps Doctrine in Maneuver warfare. Chet Richards applies it business strategy in Certain To Win. The primary concept is to expend the least resource to accomplish the next objective and to operate at a decision cycle faster than your competition can achieve. This allows you to go farther and faster than your competition.Unfortunately, it can not as simple as “observe, then orient, then decide, then act.” In fact such a sequential model would be very ponderous and would not well describe how successful competitors operate.The key to quickness turns out to be the two “implicit guidance and control” arrows at the top. In other words, most of the time people and groups do not employ the explicit, sequential O-to-O-to-D-to-A mechanism. Most of the time, they simply observe, orient, and act. There is data coming out to support this (see Gary Klein’s book, Sources of Power.)The question, of course, is, “What action?” A thinking opponent doesn’t provide us with a laundry list of his tactics so we can work out responses in advance. The mechanism which handles this uncertainty and makes the loop function in a real world situation is “Orientation.”As we suck in information via the “Observe” gateway, it may happen that we notice mismatches between our orientation and what we’re observing in the real world. If we don’t spot these mismatches and correct our orientation, the actions that flow from it may not be as effective as we intend. This can open up opportunities for our opponents. Boyd’s concept of strategy places heavy emphasis on attacking the other side’s orientation to open up just these kinds of opportunities, and he suggests many ways to do this.Note that “OODA” speed is quite different from the speed of our actions. Doing something dumb or irrelevant, but doing it at high speed, may not provide much of a competitive advantage.The “Decision/hypothesis” block is the learning part of the loop, where we experiment and in the process add new actions to the Implicit Guidance and Control link. You can also think of it as programming orientation for future intuitive actions.