How much business agility can an organization achieve? Is this related to the nature of the organization? To its business model, size, culture, geographical distribution, leadership? Yes, certainly all these elements play a fundamental role in how and in how much agility we can expect to have. You might be surprised to know, though, that there are different ways in which those elements can contribute, which means that business agility is achievable in quite different types of organizations, sometimes unexpectedly. In this session, we are going to relate part of the journey that the speakers, in their function of business agility coaches, are traveling with one of their clients, Pietro Fiorentini Spa, an Oil&Gas multinational company. This company is exceptionally well-versed in Lean methods, which they have brought outside of just production and into different functions of the organization, and this has provided them with a great deal of efficiency in what they do. However, they realize that efficiency (“doing the thing right”) without effectiveness (“doing the right thing”) is worthless or even harmful. So their quest for business agility is a challenge in preserving all that makes them so efficient and improving, through news processes and ways of collaborating, their effectiveness. We are going to discuss some of the changes that are being implemented in terms of leadership, self-organization, and team autonomy in several functions, including concrete examples coming form the designing and building of one of their production lines. We intend to illustrate how business agility goes beyond production (certainly way beyond software production) and can coexist — and be synergetic — with some well-established management approaches. Originally presented the 12 September 2020 at Agile Business Day, Andrea Provaglio, Paolo Sammicheli, and Andrea Aganetti.

1. Andrea Provaglio, Paolo Sammicheli, Andrea Aganetti
Efficient and Effective
The Best of Two Worlds
12 September 2020

2. Andrea Provaglio
Enterprise Agility Coach
http://andreaprovaglio.com
Who We Are
Andrea Aganetti
Product Owner
KPO Team Leader
http://fiorentini.com
Paolo Sammicheli
Agile Business Coach, Scrum Trainer
International Author and Speaker
http://paolo.sammiche.li

3. The Company
Andrea Aganetti

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Pietro Fiorentini Spa
We are an international
Company that designs,
manufactures and installs
equipment, complete
solutions and services for
Oil and Gas treatment,
metering and regulation.

5. Our Numbers
• Over 80 years of
history
• Export started in 1956
• Over 1700 employees
worldwide
• 6 production facilities
in Italy
• 7 production facilities
worldwide
• Sales offices located in
Europe, America,
Africa and Asia

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Why Lean and Agile together
• With Lean we achieved Efficiency
• With Agile we want to improve Effectiveness
An organization that simultaneously manages the existing
business model and its change
CONSOLIDATE EXPLORE / PROBE
BACKBONE NETWORK
ORGANIZATION
AUTONOMY AND
DISTRIBUTED LIABILITY

7. Agility at the Enterprise Level
Andrea Provaglio

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PF Gave Me Food for Thought
Mmh, Lean + Agile, uh…?

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Remember, We Are All Children of the Industrial Revolution

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I’m Going To Touch On…
Performance Management
Value Creation
Leadership Culture

11. • Lean Production Lines (obviously)
• Value Streams + Organizational Functional Units
• Yearly company-wide Lean Transformation Plan
• 1 Kaizen week / month, 15 teams (3000+ man-
hour per month!)
• Japanese Sensei overlooking the Kaizen process
• 5S for workstation efficiency
• 3P methodology for hardware prototyping
• They’ve been doing this for two decades
• Lean culture deeply ingrained in the organization
PF Is Very Lean
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We Have/Had Agile Teams Working On…
• Several IT projects
• One TLC project
• One Architecture project (new offices
layout)
• Plant & Process Packages jobs (delivery
of full systems)
• Kick-off of a start-up company
• A few hardware devices (for quality and
innovation)
• One IT product / service
• One production line “product” (more
about this later)
Projects Products

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What We Did So Far
• Create as-stable-as-possible dedicated
teams
• Implemented nested feedback loops at
the technical and business level
• Reduced team dependencies
• Improved self-management of project/
product teams

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3x Faster

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Noticing the “Artifacts” is Part of my Work

16. • Lean originates from industrial
production (tangible goods)
• Agile originates from IT
(intangible goods)
• Easy to confuse the intent of one
practice with another
• Let’s see some example…
Where It Gets Trickier
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KPIs Are Not For Cognitive Work
• KPIs are for measuring a process, which
must be visible and quantifiable
• People go after intents, goals, objectives,
aspirations, attempts, ideas; they learn
by doing, by trying, by experimenting
and also by failing. How do you quantify
and measure that?
• OKRs (or similar approaches) are more fit
to promote virtuous behaviors in teams
doing cognitive work
This doesn’t work

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Outcome over Output
• When the desired result is clear and the
process to get there is well defined, we
naturally focus on maximizing Output (Lean)
• When the goal is more abstract and the
conditions are unpredictably changing, we
should focus more on maximizing Outcome
(Agile)
• In an industrial mindset, it’s easy to confuse
Output (work done) with Outcome (valuable
results)

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An Extra Layer of Leadership Skills
• In Lean the manager is “the expert”
• Management approach is “Just-in-Time”
• This is consistent with having clear goals and
processes and tends to create specialists
• Agile leadership is based on the assumption that
things are and will be uncertain
• Therefore, leaders and managers must create a safe
environment in which to live with uncertainty and
also be effective

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Our Work in Progress
• Introducing performance
management practices that are fit for
complex, cognitive work (based on
goals and feedbacks)
• Improving the Product Ownership
practices (for Value and Effectiveness)
• Developing the understanding and
practice of Leadership in an Agile
culture

21. Scrum for Hardware in Oil&Gas
Paolo Sammicheli

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Context
The selected Scrum Team Product was
the Production Line of a New Gas
Pressure Regulator.
The New Gas Pressure Regulator (in the
picture) was develop by another Team in
another site and started before the
production line.

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Team Lift Off

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• The brainstorming occurred in 4 different
table. All the ideas then have been then
merged into a single Canvas explaining the
reason why of the new product.
Basic Canvas
Free Download: https://paolo.sammiche.li/download

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• The existing KPO served the team as Scrum Master
• Cross functional team with representatives from: Tooling department,
Maintenance and Logistics
Pilot Team formed: theRollingScrums

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Scrum Team Room
PROTOTYPING
PROTOTYPING
BUILD and TEST

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Incremental development with Lean 3P
«Lean 3P is an event-driven cross-functional team
process.
This rapid prototyping process is called try-storming,
and it involves creation of trial designs to see how
well they solve product and process challenges.
Try-storming, like the name implies, is a hands-on
extension of the brainstorming process.
Try-storming is a type of prototyping that takes ideas
and quickly mocks them up, so they can be
evaluated physically.
(…)
It should be inserted early in the Product
Development process to align all of the many vertical
functions in our horizontal value stream.»
— Extract from: the Lean 3P Advantage, Allan R. Coletta, 2012

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Architectural Fishbone served as User Story Mapping

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Sprint Board
• Including everything:
Features, Bugs, Chore,
Interruptions and Kaizen.
• Scrum Patterns implemented:
• Interruption Buffer
• Scrumming the Scrum
• Yesterday’s Weather
• Swarming

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Lean 3P and Scrum
x10 x50 x250 Prototype
• Lean 3P incremental
level served as User
Story’s Acceptance
Criteria.
• Very smooth adoption
since the team
members were familiar
with the approach from
the beginning.

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3D Printing to shorten feedback

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Sprint Review

33. Conclusions
Andrea Aganetti

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Benefits
• Increased know-how sharing across the Team
• Distributed Leadership
• Effectiveness together with Efficiency
• Responding to change — with a stable team, the time required to change
priorities or to start a new project moved from weeks to hours
• The Sprint Review structured the feedback in a single moment, increasing
stakeholders alignment and reducing risks
• Easier planning with a Single Scrum Board that contains everything: new
implementations, fixes, interruptions

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Points of Attention
• Better to involve the main stakeholders from the beginning so they enter in
the right mindset of cadence and early regular feedback.
• Initial team composition needs to be taken into consideration, since later
changes may impact on the performance and the morale of the team
• Management commitment is essential to allow team members to be fully
dedicated to the SCRUM team

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Thank You!
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