Lean Adaptive Management @ LKBE2011
Presentation for Lean Kanban BeNeLux 2011 Some organizations work in a simple, stable business environment with simple, stable and consistent business goals. Other organizations have to deal with a complex, fast changing business environment where business goals may be contingent or even contradictory. In this workshop we explore how our current models for improvement are well equipped for simple and stable business environments but fail to cope with the complexities of today’s fast changing business. We discuss how we need to move beyond the current single- and multi-model improvement theory towards a thorough understanding of complex business challenges and situational improvement based on lean adaptive principles. We discuss the case of a software product company that is faced with complex – and possibly contradictory – business challenges. A previous improvement initiative based on CMMI and Scrum did measurably improve the process of the development group but – as seems to be so often the case - failed to go beyond a local one-shot point improvement: 1) it did not sufficiently involve upstream and downstream stakeholders such as product management and support (and ultimately the customers and users); 2) it did not sufficiently differentiate between different kinds of developments leading to one-size-fits-all processes that actually fit no development very well; 3) it did not provide the insight to take on complex business challenges. In order to tackle the above issues we decided to work on three fronts at the same time: 1. End-to-end flow (lean): Use Kanban to create flow in the end-to-end value stream starting from initial ideas up until actual implementation. The end-to-end-flow takes into account both value discovery (understanding the value) and value delivery (delivering the value). 2. Tailored project management (adaptive): Use a sense-making framework (based on Cynefin) to differentiate between developments where the value is clear enough to go almost directly into value delivery (linear flow), and developments where the value uncertainty mandates iteration between value discovery and value delivery (iterative flow). 3. Organizational maturity (management): Create a continuous improvement culture that works both bottom-up and top-down. Use Kanban to create a continuous improvement and high-maturity culture from the bottom-up. Use CMMI appraisals as a yardstick to measure organizational progress top-down in order to avoid that local improvements get stuck locally. And most of all, use tailored project management to simultaneously manage bottom-up and top-down improvements to match complex business goals.
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- 1. Lean adaptive management Lean & Kanban Benelux 2011 Patrick Steyaert October 2011 Patrick.steyaert@teamprosource.eu Twitter: @PatrickSteyaert www.TeamProsource.eu www.TeamProsource.eu
- 2. Quiz … Further fill in your CEO’s shopping list: 1. Higher quality 2. Higher throughput 3. Shorter lead and cycle times 4. <<fill in>> 5. 6. Lean & Kanban Benelux 2011 www.TeamProsource.eu 2
- 3. Our purpose is to deliver value Value should at least be understood in the same level of detail as effort and cost* *Freely quoted from “Waltzing With Bears: Managing Risk on Software Projects”, Tom DeMarco & Timothy Lister Lean & Kanban Benelux 2011 www.TeamProsource.eu 3
- 4. Scale (in)variance Mathematics Reality Lean & Kanban Benelux 2011 www.TeamProsource.eu 4
- 5. Case • Developing and delivering software applications in regulated domain • Management and development distributed over locations in Europe • Part of an international group • Leader in an international market Lean & Kanban Benelux 2011 www.TeamProsource.eu 5
- 6. Complex challenges The organization is faced with complex challenges in its product engineering and development process: – delivering on time and with the right quality – product development as well as custom projects – a complex and changing business domain (many codes and norms) – uncertainty about user needs and market opportunities – complexities of a function oriented, geographically distributed, organisation (product engineering versus product development) – technological complexity – substantially re-engineer the product at the same time keep on delivering new functionality at a high pace Lean & Kanban Benelux 2011 www.TeamProsource.eu 6
- 7. Organization Management CT1 SE SE SE SE CT2 CT3 Product Mgmt. QA SW development 360° Improvement Case www.TeamProsource.eu 7
- 8. The end-to-end value stream Narratives Models Product in use Idea Condept Requirement Verification Validation Implemented Concepts Product in development Lean & Kanban Benelux 2011 www.TeamProsource.eu 8
- 9. The end-to-end value stream – in practice Narratives Models Product in use Idea Condept Requirement Verification Validation Implemented Concepts Product in development Lean & Kanban Benelux 2011 www.TeamProsource.eu 9
- 10. Kanban Kanban • Visualize the workflow Narratives Models Product in use • Limit WIP Idea Condept Requirement Verification Validation Implemented • Manage Flow • Make Process Policies Explicit • Improve Collaboratively (using models & the scientific method) Concepts Product in development Lean & Kanban Benelux 2011 www.TeamProsource.eu 10
- 11. Lean & Kanban Benelux 2011 www.TeamProsource.eu 11
- 12. Source of confusion Change-the-business Run-the-business In an emergent market In the core market Value is speculative Value is clear (smaller (large but uncertain) but certain) Start with low quality No less than highest but prepare to grow quality standards Lean & Kanban Benelux 2011 www.TeamProsource.eu 12
- 13. Being on the edge Value maximization Value renewal Lean & Kanban Benelux 2011 www.TeamProsource.eu 13
- 14. Emergent Extension Large potential (uncertain) Return and investment with return, incremental assessable risk investment 14 Novel / Sensitive Enhancement Large upfront investment with Small investment with small uncertain returns return Lean & Kanban Benelux 2011 www.TeamProsource.eu www.cognitive-edge.com
- 15. Different risk profiles High e.g. novel Novel market Uncertainty about value Enhance ment Low e.g. existing market Low High e.g. fits within current e.g. challenges architecture current architecture Uncertainty about capabilities Lean & Kanban Benelux 2011 www.TeamProsource.eu 15
- 16. Emergent Extension Cumulate success Managing the risk 16 Novel / Sensitive Enhancement Cascading failure repeated and increasingly efficient delivery of quality Lean & Kanban Benelux 2011 www.TeamProsource.eu www.cognitive-edge.com
- 17. Challenges for enhancements One routine project does not make a success, it is the repeated and increasingly efficient delivery of quality that makes a success Lean & Kanban Benelux 2011 www.TeamProsource.eu 17
- 18. Challenge for extensions Identifying risk removing risk producing value Lean & Kanban Benelux 2011 www.TeamProsource.eu 18
- 19. Challenge for emergent projects Creating cumulative success Lean & Kanban Benelux 2011 www.TeamProsource.eu 19
- 20. Challenge for sensitive projects Cascading failure Lean & Kanban Benelux 2011 www.TeamProsource.eu 20
- 21. Adaptive management Every project is unique … … but some are more unique than others! Lean & Kanban Benelux 2011 www.TeamProsource.eu 21
- 22. How do we discover and deliver value? Lean & Kanban Benelux 2011 www.TeamProsource.eu 22
- 23. The end-to-end value stream Discovery Kanban Delivery Kanban • Visualize the flow of • Visualize the workflow options Product in use Narratives Models • Ensure minimal options • Limit WIP Idea Condept Requirement Verification Validation Implemented • Manage Flow • Manage Flow • Make Process Policies • Make Process Policies Explicit Explicit • Improve Collaboratively (using models & the • Improve Collaboratively scientific method) (using models & the scientific method) Concepts Product in development Lean & Kanban Benelux 2011 www.TeamProsource.eu 23
- 24. Linear flow • When discovery precedes delivery – The user is engaged at the beginning and at the end – The needs are discovered at the start and the results of the project are delivered at the end DISCOVERY DELIVERY Verified Validated Implemented Request Option Requirement solution solution solution Lean & Kanban Benelux 2011 www.TeamProsource.eu 24
- 25. Iterative flow • When discovery and delivery are intertwined – The user is continuously involved in the project Implemented solution Idea – The needs are discovered iteratively and Validated Concept project results are also solution delivered iteratively – Risks are managed and Verified solution Requirement benefits are realised incrementally during the project Lean & Kanban Benelux 2011 www.TeamProsource.eu 25
- 26. Lean adaptive management Iterative Emergent Iterative discovery Product in use Level of iteration Extension Iterative development Product in development Enhancement Small batch linear Feature>Feature>Feature Sensitive Large batch linear Narrative>Model>Product Linear Lean & Kanban Benelux 2011 www.TeamProsource.eu 26
- 27. How do we organize? Lean & Kanban Benelux 2011 www.TeamProsource.eu 27
- 28. Entrepreneurial Project culture management culture 28 High reliability High culture maturity culture Lean & Kanban Benelux 2011 www.TeamProsource.eu www.cognitive-edge.com
- 29. Lean adaptive management • End-to-end flow – Create flow in the end-to-end value stream (Delivery + Discovery) • Tailored project management – Differentiate between the need for linear workflow and iterative workflow • Ambidexterity – Integrate different cultures in the organization Lean & Kanban Benelux 2011 www.TeamProsource.eu 29
- 30. www.teamprosource.eu THANK YOU Do you want to be kept informed? http://www.kanbanforprojects.eu/ Lean & Kanban Benelux 2011 www.TeamProsource.eu www.TeamProsource.eu 30