Slide deck from my talk on Lean at Cisco: Lessons Learned from Lean Product Development and Lean Startup.
The 3 lessons I talk about are:
1. Reduce Batch Sizes and Manage WIP Limits
2. Customer Development
3. Learn to see Waste
I gave this talk at the Clayton Hotel on June 21 2012, at a Lean Startup Event organized by Enterprise Ireland and ITAG.
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Lean at Cisco: Lessons Learned from Lean Product Development and Lean Startup
1. Lean at Cisco: Lessons
Learned from Lean Product
Development and Lean Startup
Ken Power
Internal Agile-Lean Coach/Consultant, Cisco Systems
Thursday June 21, 2012
Lean Startup Event Organized by Enterprise Ireland and ITAG
Š 2010 Cisco and/or its affiliates. All rights reserved. 1
2. January 2008! December 2009! August 2010! June 2011! May 2012!
Formal Agile Portfolio
Transition Agile Office Culture and Management Ongoing
Pilot Projects Program Established Mindset across the continuous
Launched Business Unit improvement
2008 2009 2010 2011 2012 2012+
â˘âŻFirst agile pilots â˘âŻMore Teams â˘âŻCommitment to â˘âŻSupport teams in â˘âŻSynchronize all â˘âŻCreate Flow
â˘âŻAgile Projects â˘âŻAgile Program sustainable and innovating and products across through the
â˘âŻOrganic Growth Management sustained agility developing the the BU Organization
across the BU â˘âŻSystem Wide â˘âŻBroad processes that â˘âŻProblem solving â˘âŻContinue to Lead
through ground- Focus Organization are right for them and obstacle through
up pilot projects â˘âŻFormal Training Focus â˘âŻExpand adoption removal at an Innovation
Plan â˘âŻFocused across product org level â˘âŻFocus on Teams
Stakeholder areas â˘âŻOrganization and Culture
â˘âŻFormal Exec
Support Engagement â˘âŻLean Startup Learning â˘âŻRefine and
â˘âŻCloser Customer principles â˘âŻQuantify and Improve
â˘âŻBroader
Stakeholder Engagement â˘âŻImprove reduce Technical â˘âŻBuild on
Engagement â˘âŻInvestigate Lean capability of Debt Organization
â˘âŻLean Thinking Startup organization â˘âŻAgile Learning
approaches â˘âŻDevelop Portfolio Architecture â˘âŻSustainable
â˘âŻLean Principals
Management â˘âŻEliminate Waste Organization
Concepts
Š 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2
3. â˘âŻ My day job
Co-Founder, Agile Office at Cisco
Internal Agile-Lean Coach/Consultant
â˘âŻ Extra-curricular activities
Fellow of the Lean Systems Society (http://LeanSystemsSociety.org/)
Award-winning publications in Agile and Lean product development
Frequent speaker at major international Agile and Lean conferences
Involved in organizing international Agile and Lean conferences
Industry/academic collaborative research on Lean software development with Lero, UL, NUIG
PhD research in Lean product development (NUIG)
Agile-Lean Galway Meetup (http://www.meetup.com/Agile-Lean-Galway/)
Blog: http://SystemAgility.com/
Š 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3
5. The fallacies that
cause delays,
undermine quality,
and raise costs
D.#G.#Reinertsen,#âThe$principles$of$product$development$ďŹow$:$second$genera8on$lean$
product$developmentâ.#Redondo#Beach,#Calif.:#Celeritas,#2009.#
#
#
S.#Thomke#and#D.#Reinertsen,#"Six$Myths$of$Product$Development,"#Harvard#Business#
Review,#vol.#90,#pp.#84G94,#May#2012#
Š 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5
6. #
S.#Thomke#and#D.#Reinertsen,#"Six$Myths$of$Product$Development,"#Harvard#Business#
Review,#vol.#90,#pp.#84G94,#May#2012#
Myth 1 High utilization of resources and people will improve
performance.
Myth 2 Processing work in large batches improves the economics of
the process.
Myth 3 Our plan is great; we just need to stick to it.
Myth 4 The sooner the project is started, the sooner it will be
finished.
Myth 5 The more features we put into a product, the more
customers will like it.
Myth 6 We will be more successful if we get it right the first time.
Š 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6
7. â˘âŻ Lean Startups are based on three trends
Use of free and open source software
Application of agile software development methods
Ferocious customer-centric rapid iteration, as exemplified by the Customer Development process
â˘âŻ Sometimes described as Lean Thinking applied to the entrepreneurial process
â˘âŻ Equally applicable to large organizations â different challenges
http://theleanstartup.com/
Š 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7
8. â˘âŻ Entrepreneurs are Everywhere
http://theleanstartup.com/
â˘âŻ Entrepreneurship is Management
â˘âŻ Validated Learning
â˘âŻ Innovation Accounting
â˘âŻ Build-Measure-Learn
!
Š 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8
9. Š 2010 Cisco and/or its affiliates. All rights reserved. 9
10. #
S.#Thomke#and#D.#Reinertsen,#"Six$Myths$of$Product$Development,"#Harvard#Business#
Review,#vol.#90,#pp.#84G94,#May#2012#
Total Cost
Optimal Batch Size
Cost
Holding Cost
Transaction Cost
Batch Size
Š 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10
11. #
#
S.#Thomke#and#D.#Reinertsen,#"Six$Myths$of$Product$Development,"#Harvard#Business#
Review,#vol.#90,#pp.#84G94,#May#2012#
Š 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11
12. Š 2010 Cisco and/or its affiliates. All rights reserved. 12
13. Product
Extended Customer Trials
Early
Customer
Engagement
Š 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 13
14. Š 2010 Cisco and/or its affiliates. All rights reserved. 14
15. ââŻ
Views expressed by Tom & Mary Poppendieck and Taichi Ohno
Š 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 15
16. â˘âŻ Extra Features
â˘âŻ Delays
â˘âŻ Handoffs
â˘âŻ Extra Processes / Relearning
â˘âŻ Partially Done Work
â˘âŻ Task Switching
â˘âŻ Defects
â˘âŻ Unused Employee Creativity
Š 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 16
17. ââŻ
James Womack
Š 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 17
18. ââŻ
Eric Ries, The Lean Startup. (page 274)
Š 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 18
19. Š 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 19
20. Š 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 20
21. ââŻ
Credo of the Lean Systems Society (http://leansystemssociety.org/credo/)
Š 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 21
22. â˘âŻ Do not just focus on building great products or
providing great services
â˘âŻ Focus on developing great people and building
great teams
â˘âŻ Build great organizations that appeal to peopleâs
sense of intrinsic motivation
Š 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 22