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l e a n 
software development 
www.poppendieck.com 
Mary Poppendieck 
mary@poppendieck.com 
The Aware Organization 
Jidoka
l e a n 
Toyota Production System 
October 14 
Copyright©2014 Poppendieck.LLC 
2 
Thoroughly Remove Waste 
Just in Time 
•Make only what, when and the amount needed 
•Downstream process takes from upstream 
Jidoka 
•Processes detect errors and stop on their own 
•Built in human intelligence 
Flow 
???
l e a n 
What Makes a Winning Team? 
October 14 
Copyright©2014 Poppendieck.LLC 
3
l e a n 
When it’s a Matter of Life and Death 
High Reliability Organizations 
Have more than their fair share of unexpected events 
Have less than their fair share of accidents 
Firefighters 
Nuclear Power Plants 
Power Grid Dispatching Centers 
Hospital Emergency Rooms 
Air Traffic Control 
Aircraft Carriers 
Common Characteristic 
Mindfulness 
October 14 
Copyright©2014 Poppendieck.LLC 
4 
Managing the Unexpected: Assuring High Performance in an Age of Complexity by Karl E. Weick and Kathleen M. Sutcliffe, 2001
l e a n 
Mindfulness 
Preoccupation with Failure 
Reluctance to Simplify 
Sensitivity to Operations 
Commitment to Resilience 
Deference to Expertise 
October 14 
Copyright©2014 Poppendieck.LLC 
5 
Mindfulness 
Exceptionally Safe, Reliable, World Class Organizations
l e a n 
Mindfulness  Situational Awareness 
Understand Command Intent Two Levels Up 
Command Intent: 
A concise expression of the purpose of the campaign, the desired results, and the expected team progress toward achieving the desired end state. 
Maintain Situational Awareness One Level Up 
1.Collaborative Planning 
2.Situational awareness of progress of other platoons 
3.Adapt to make sure the company reaches the end state 
October 14 
6 
Copyright©2014 Poppendieck.LLC
l e a n 
Toyota Production System 
October 14 
Copyright©2014 Poppendieck.LLC 
7 
Thoroughly Remove Waste 
Just in Time 
•Make only what, when and the amount needed 
•Downstream process takes from upstream 
Jidoka 
•Processes detect errors and stop on their own 
•Built in human intelligence 
Flow 
Mindfulness 
/ Situational Awareness
l e a n 
Mindfulness 
Preoccupation with Failure 
Reluctance to Simplify 
Sensitivity to Operations 
Commitment to Resilience 
Deference to Expertise 
October 14 
Copyright©2014 Poppendieck.LLC 
8 
Mindfulness 
Exceptionally Safe, Reliable, World Class Organizations
l e a n 
Theory of Constraints 
Every system has a bottleneck. 
Value cannot flow through the system any faster than it flows through that bottleneck. 
So the best way to improve the system flow is to improve the rate at which value flows through the bottleneck. 
October 14 
Copyright©2014 Poppendieck.LLC 
9
l e a n 
When the Constraint is Technical 
The Integration Problem 
% of Release Cycle Spent “Hardening” 
October 14 
Copyright©2014 Poppendieck.LLC 
10 
Typical: 30% 
Sometimes: 50% 
Top Companies: <10% 
Release Cycle
l e a n 
When the Constraint is 
Knowing What to Build 
Cost of Complexity 
11 October 14 Copyright©2014 Poppendieck.LLC 
The Biggest Waste in Software Development 
Cost 
Time 
Features / Functions Used in a Typical System 
Standish Group Study Reported at XP2002 by Jim Johnson, Chairman 
Always 7% 
Often 13% 
Sometimes 
16% 
Rarely 19% 
Never 45% 
Rarely / Never 
Used: 64% 
Often / Always 
Used: 20%
l e a n 
Mindfulness 
Preoccupation with Failure 
Reluctance to Simplify 
Sensitivity to Operations 
Commitment to Resilience 
Deference to Expertise 
October 14 
Copyright©2014 Poppendieck.LLC 
12 
Mindfulness 
Exceptionally Safe, Reliable, World Class Organizations
l e a n 
Who is Responsible for Delivering Value? 
Delivery Organizations 
“The Business” 
“The Product Owner” 
“The Contracting Party” 
“The Outsourcing Company” 
Product Organizations 
“All of Us” 
October 14 
13 
Shared Responsibility 
Copyright©2014 Poppendieck.LLC
l e a n 
Shared Responsibility 
Rich Objectives 
October 14 
14 
1.Unifying Goal No team succeeds unless overall goal is met All teams understand the desired end state 
2. Our Team’s Responsibility 
We commit to do our part 
We understand how our part contributes to overall success 
3. What Our Team does to Make Sure Other Teams are Successful 
We maintain awareness of the progress of other teams 
We help other teams out as appropriate to achieve the overall goal 
Copyright©2014 Poppendieck.LLC
l e a n 
Mindfulness 
Preoccupation with Failure 
Reluctance to Simplify 
Sensitivity to Operations 
Commitment to Resilience 
Deference to Expertise 
October 14 
Copyright©2014 Poppendieck.LLC 
15 
Mindfulness 
Exceptionally Safe, Reliable, World Class Organizations
l e a n 
Who is Responsible for Deciding What to Build? 
1.Control projects by quantified critical-few results. 1 page in total! 
2.Make sure those results are business results, not technical. 
3.Give the developers [technical team] the freedom to find out how to deliver those results. 
4.Estimate the impacts of your designs on the quantified goals. 
5.Select designs with the best value impacts for their costs, do them first. 
6.Decompose the workflow into weekly (or 2% of budget) time boxes. 
7.Change designs, based on quantified value and cost experience. 
8.Change requirements, based on quantified value and cost experience. 
9.Involve the stakeholders, every week, in setting quantified value goals. 
10.Involve the stakeholders, every week, in actually using value increments. 
October 14 
Copyright©2014 Poppendieck.LLC 
16 
From: Value-Driven Development Principles and Values by Tom Gilb, Agile Record, July 2010 
Tom Gilb 
Published 1988 
19th Printing
l e a n 
Mindfulness 
Preoccupation with Failure 
Reluctance to Simplify 
Sensitivity to Operations 
Commitment to Resilience 
Deference to Expertise 
October 14 
Copyright©2014 Poppendieck.LLC 
17 
Mindfulness 
Exceptionally Safe, Reliable, World Class Organizations
l e a n 
The Next Generation Software Development Process 
October 14 
Copyright©2014 Poppendieck.LLC 
18 
Acceptance test driven development process 
Tight collaboration between business and delivery teams 
Cross-functional teams include QA and operations 
Automated build, testing, db migration, and deployment 
Incremental development on mainline with continuous integration 
Software always production ready 
Releases tied to business needs, not operational constraints
l e a n 
Mindfulness 
Preoccupation with Failure 
Reluctance to Simplify 
Sensitivity to Operations 
Commitment to Resilience 
Deference to Expertise 
October 14 
Copyright©2014 Poppendieck.LLC 
19 
Mindfulness 
Exceptionally Safe, Reliable, World Class Organizations
l e a n 
Preoccupation with Failure 
Reluctance to Simplify 
Sensitivity to Operations 
Commitment to Learning 
Deference to Expertise 
Mindfulness 
October 14 
Copyright©2014 Poppendieck.LLC 
20 
Mindfulness 
Exceptionally Safe, Reliable, World Class Organizations
l e a n 
Case Study: Government 
Case: British National Health Service, Electronic Patient Records, 2002 – 2011, £10bn. 
In Response: Gov.UK. 
Governance Principles: 
Don’t slow down delivery 
Decisions when they’re needed, at the right level 
Do it with the right people 
Go see for yourself 
Only do it if it adds value 
Trust and verify 
October 14 
Copyright©2014 Poppendieck.LLC 
21 
4-8 weeks 
6-8 weeks 
A few months, then iterate 
See: https://www.gov.uk/transformation 
Delivery team charter: 
service vision 
quantifiable goals [impacts] 
key performance indicators [metrics] that show how they will meet user needs
l e a n 
Impact-driven Development 
October 14 
Copyright©2014 Poppendieck.LLC 
22 
Tom & Kai Gilb 
1.Start with WHY – Purpose, Problem 
2.Understand the desired impact: 
a.Who cares about the impact of potential solutions? 
b.How will these people measure the impact of outcomes? 
c.What changes can create outcomes that move the metrics – in the right direction – enough to matter? 
3.Experiment: Prototype the most promising changes. 
4.Implement a change only if its impact is validated. 
5.Iterate rapidly until the desired impact is achieved. 
Working Backward from Impact
l e a n 
A Company in Durban 
October 14 
Copyright©2014 Poppendieck.LLC 
23
l e a n 
software development 
www.poppendieck.com 
Mary Poppendieck 
mary@poppendieck.com 
Thank You! 
More Information: www.poppendieck.com

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Mary Poppendieck: The Aware Organization - Lean IT Summit 2014

  • 1. l e a n software development www.poppendieck.com Mary Poppendieck mary@poppendieck.com The Aware Organization Jidoka
  • 2. l e a n Toyota Production System October 14 Copyright©2014 Poppendieck.LLC 2 Thoroughly Remove Waste Just in Time •Make only what, when and the amount needed •Downstream process takes from upstream Jidoka •Processes detect errors and stop on their own •Built in human intelligence Flow ???
  • 3. l e a n What Makes a Winning Team? October 14 Copyright©2014 Poppendieck.LLC 3
  • 4. l e a n When it’s a Matter of Life and Death High Reliability Organizations Have more than their fair share of unexpected events Have less than their fair share of accidents Firefighters Nuclear Power Plants Power Grid Dispatching Centers Hospital Emergency Rooms Air Traffic Control Aircraft Carriers Common Characteristic Mindfulness October 14 Copyright©2014 Poppendieck.LLC 4 Managing the Unexpected: Assuring High Performance in an Age of Complexity by Karl E. Weick and Kathleen M. Sutcliffe, 2001
  • 5. l e a n Mindfulness Preoccupation with Failure Reluctance to Simplify Sensitivity to Operations Commitment to Resilience Deference to Expertise October 14 Copyright©2014 Poppendieck.LLC 5 Mindfulness Exceptionally Safe, Reliable, World Class Organizations
  • 6. l e a n Mindfulness  Situational Awareness Understand Command Intent Two Levels Up Command Intent: A concise expression of the purpose of the campaign, the desired results, and the expected team progress toward achieving the desired end state. Maintain Situational Awareness One Level Up 1.Collaborative Planning 2.Situational awareness of progress of other platoons 3.Adapt to make sure the company reaches the end state October 14 6 Copyright©2014 Poppendieck.LLC
  • 7. l e a n Toyota Production System October 14 Copyright©2014 Poppendieck.LLC 7 Thoroughly Remove Waste Just in Time •Make only what, when and the amount needed •Downstream process takes from upstream Jidoka •Processes detect errors and stop on their own •Built in human intelligence Flow Mindfulness / Situational Awareness
  • 8. l e a n Mindfulness Preoccupation with Failure Reluctance to Simplify Sensitivity to Operations Commitment to Resilience Deference to Expertise October 14 Copyright©2014 Poppendieck.LLC 8 Mindfulness Exceptionally Safe, Reliable, World Class Organizations
  • 9. l e a n Theory of Constraints Every system has a bottleneck. Value cannot flow through the system any faster than it flows through that bottleneck. So the best way to improve the system flow is to improve the rate at which value flows through the bottleneck. October 14 Copyright©2014 Poppendieck.LLC 9
  • 10. l e a n When the Constraint is Technical The Integration Problem % of Release Cycle Spent “Hardening” October 14 Copyright©2014 Poppendieck.LLC 10 Typical: 30% Sometimes: 50% Top Companies: <10% Release Cycle
  • 11. l e a n When the Constraint is Knowing What to Build Cost of Complexity 11 October 14 Copyright©2014 Poppendieck.LLC The Biggest Waste in Software Development Cost Time Features / Functions Used in a Typical System Standish Group Study Reported at XP2002 by Jim Johnson, Chairman Always 7% Often 13% Sometimes 16% Rarely 19% Never 45% Rarely / Never Used: 64% Often / Always Used: 20%
  • 12. l e a n Mindfulness Preoccupation with Failure Reluctance to Simplify Sensitivity to Operations Commitment to Resilience Deference to Expertise October 14 Copyright©2014 Poppendieck.LLC 12 Mindfulness Exceptionally Safe, Reliable, World Class Organizations
  • 13. l e a n Who is Responsible for Delivering Value? Delivery Organizations “The Business” “The Product Owner” “The Contracting Party” “The Outsourcing Company” Product Organizations “All of Us” October 14 13 Shared Responsibility Copyright©2014 Poppendieck.LLC
  • 14. l e a n Shared Responsibility Rich Objectives October 14 14 1.Unifying Goal No team succeeds unless overall goal is met All teams understand the desired end state 2. Our Team’s Responsibility We commit to do our part We understand how our part contributes to overall success 3. What Our Team does to Make Sure Other Teams are Successful We maintain awareness of the progress of other teams We help other teams out as appropriate to achieve the overall goal Copyright©2014 Poppendieck.LLC
  • 15. l e a n Mindfulness Preoccupation with Failure Reluctance to Simplify Sensitivity to Operations Commitment to Resilience Deference to Expertise October 14 Copyright©2014 Poppendieck.LLC 15 Mindfulness Exceptionally Safe, Reliable, World Class Organizations
  • 16. l e a n Who is Responsible for Deciding What to Build? 1.Control projects by quantified critical-few results. 1 page in total! 2.Make sure those results are business results, not technical. 3.Give the developers [technical team] the freedom to find out how to deliver those results. 4.Estimate the impacts of your designs on the quantified goals. 5.Select designs with the best value impacts for their costs, do them first. 6.Decompose the workflow into weekly (or 2% of budget) time boxes. 7.Change designs, based on quantified value and cost experience. 8.Change requirements, based on quantified value and cost experience. 9.Involve the stakeholders, every week, in setting quantified value goals. 10.Involve the stakeholders, every week, in actually using value increments. October 14 Copyright©2014 Poppendieck.LLC 16 From: Value-Driven Development Principles and Values by Tom Gilb, Agile Record, July 2010 Tom Gilb Published 1988 19th Printing
  • 17. l e a n Mindfulness Preoccupation with Failure Reluctance to Simplify Sensitivity to Operations Commitment to Resilience Deference to Expertise October 14 Copyright©2014 Poppendieck.LLC 17 Mindfulness Exceptionally Safe, Reliable, World Class Organizations
  • 18. l e a n The Next Generation Software Development Process October 14 Copyright©2014 Poppendieck.LLC 18 Acceptance test driven development process Tight collaboration between business and delivery teams Cross-functional teams include QA and operations Automated build, testing, db migration, and deployment Incremental development on mainline with continuous integration Software always production ready Releases tied to business needs, not operational constraints
  • 19. l e a n Mindfulness Preoccupation with Failure Reluctance to Simplify Sensitivity to Operations Commitment to Resilience Deference to Expertise October 14 Copyright©2014 Poppendieck.LLC 19 Mindfulness Exceptionally Safe, Reliable, World Class Organizations
  • 20. l e a n Preoccupation with Failure Reluctance to Simplify Sensitivity to Operations Commitment to Learning Deference to Expertise Mindfulness October 14 Copyright©2014 Poppendieck.LLC 20 Mindfulness Exceptionally Safe, Reliable, World Class Organizations
  • 21. l e a n Case Study: Government Case: British National Health Service, Electronic Patient Records, 2002 – 2011, £10bn. In Response: Gov.UK. Governance Principles: Don’t slow down delivery Decisions when they’re needed, at the right level Do it with the right people Go see for yourself Only do it if it adds value Trust and verify October 14 Copyright©2014 Poppendieck.LLC 21 4-8 weeks 6-8 weeks A few months, then iterate See: https://www.gov.uk/transformation Delivery team charter: service vision quantifiable goals [impacts] key performance indicators [metrics] that show how they will meet user needs
  • 22. l e a n Impact-driven Development October 14 Copyright©2014 Poppendieck.LLC 22 Tom & Kai Gilb 1.Start with WHY – Purpose, Problem 2.Understand the desired impact: a.Who cares about the impact of potential solutions? b.How will these people measure the impact of outcomes? c.What changes can create outcomes that move the metrics – in the right direction – enough to matter? 3.Experiment: Prototype the most promising changes. 4.Implement a change only if its impact is validated. 5.Iterate rapidly until the desired impact is achieved. Working Backward from Impact
  • 23. l e a n A Company in Durban October 14 Copyright©2014 Poppendieck.LLC 23
  • 24. l e a n software development www.poppendieck.com Mary Poppendieck mary@poppendieck.com Thank You! More Information: www.poppendieck.com