Lean & Agile: Move like Starlings in the Sky

Transcription

1 Lean & Agile: Move like Starlings in the Sky Peter Matthijssen Adaptive to change What we do today, is not good enough for tomorrow We need to constantly adapt and improve

2 About Peter Matthijssen Consultant and Lean Six Sigma Black belt Business Process Management & Business Analysis Finance, Government, Healthcare, Production, Some publications Thinking in processes (2012) The second wave of Lean (2013) Working with Lean (2013) 3 BiZZdesign: Building Strong Organizations! Organizations increasingly need to deal with timepressured business improvements and high-impact transformation in a truly complex business and IT reality BiZZdesign enables this by providing proven change capabilities through integrated solutions consisting of professional services software solutions training best practices 4

3 Locations & Clients Worldwide 5 Agile business is about doing the right thing at all times in a changing environment Lean is about doing the work a little bit better every day How can Lean make your organization more Agile 6

4 Conclusions Lean is NOT the single silver bullet for Agile business Short-cyclic (Lean) improvement can powerfully support Agile work The Lean philosophy provides lessons for a foundation for Agile business 7 Proposed schedule Vision on Agile business Vision on Lean Management Basics Lean Management Second wave of Lean Foundation for Lean Lean and agile business Foundation for agile business Conclusions and tips

5 VISION ON AGILE BUSINESS 9 Business agility Business agility is the "ability of a [business system] to rapidly respond to change by adapting its initial stable configuration". In a business context, agility is the ability of an organization to rapidly adapt to market and environmental changes in productive and costeffective ways. Source: Wikipedia The environment changes ever faster Not adapting is not an option 10

6 Some more quotes The unfreeze-change-freeze model, reasoning from a stable current to a desired future state, no longer applies, because organizations in the New Normal are in a constant state of flux. As stated by Gartner (keynote ITXpo 2013): In 2017, every company will be a digital company. Capabilities to change fast and remain agile will be imperative. 11 Business drivers Agility Products/Service dynamics Cost dynamics Volume dynamics Channel flexibility Chain flexibility Changing legislation Technology adoption

7 About agile business Agile business is about: Cyclic development: incremental and learning People: collaboration and communication Delivering customer value It requires capabilities on strategic, organizational and technical levels It requires making choices: Where do we need/ want to be agile? Where do we need/ want to be stable? 13 Business: agility as a strategy Agility Process: agile work Organization and IT

8 There are a lot of reasons to frustrate change Change must be tested is a risk has a deadline must be managed is a bit scary 15 Agile business requires an agile culture Strong sense of responsibility Collaborative attitude Transparency about performance Postponed decisions Focus on customer value Trust by management Embrace change This may be a big leap for traditional organizations You cannot top-down organize and manage Agility 16

9 Conclusions on Agility The environment changes ever faster; not adapting is not an option Agility is not just about software development, but an enterprise-wide issue It requires capabilities on strategic, organizational and technical levels There are many barriers to agility Cultural differences, management practices, legacy systems,... Agility is an attitude: change is an opportunity! 17 BASICS LEAN MANAGEMENT 18

10 About Lean Management Originated from the Japanese auto industry (TPS) To offer products/ services faster and cheaper to customers Focus on value to the customers Lean offers Techniques and best practices for improving flow, eliminating waste and continuous improvement A mindset - Lean Thinking You cannot be Lean, you can only become Lean [Masaaki Imai] Lean Management approach 1. Identify the activities in the process that create value 2. Determine the order of events value stream map 3. Improve the flow 4. The customer pulls the products or services through the process pull 5. Perfect the process remove waste These are principles of Lean

11 Customer value How to define value? 1. Solve my problem completely 2. Provide exactly what I want 3. Provide it where I want it 4. Provide it when I want it 5. Don t waste my time (and money) 6. Don t cause new problems Many things we do, don t add value Value in the process (VSM)

12 Flow Undeveloped Flow Developed Flow Continuous movement Lean techniques: Waste Deadly wastes 1. Movement 2. Transport 3. Defects/ Repetition 4. Inventory 5. Waiting times 6. Redundant work 7. Over-processing 8. Unused talent 9. Complexity 24

13 Waste in the process The Lean toolbox Single piece flow Line Balancing Waste scan BOB vs WOW Value Stream Mapping Bottleneck analysis Just in time Poka Yoke A3 Context analysis Visual management 5 S

14 Lean is HOT! Higher speed We want to become Lean! Flexibility Higher quality Lower costs 27 Talk about Lean Management Lean = cost cutting Lean is a hype! Lean and Mean! Lean is for production companies Lean doesn t work for us We tried Lean Is there anything wrong with Lean? 28

15 The second wave of Lean Lean is a project Focus on cost cutting Focus on techniques It doesn t last Focus on what Lean is really about First wave House of Lean

16 Continuous improvement The problem/ the challenge Implementation and process control Continuous improvement Possible causes What issues could be at hand The current situation The facts Solutions tackling the causes Causes and root causes of the problems 31 Doing the work a little bit better every day I C A D M Small steps for strategic improvement

17 Lean culture FOUNDATION FOR LEAN House of Lean: We need a foundation!

18 Foundation 1: Customer first Is our customer really King? Foundation 2: Commitment Top three critical success factors for Lean management: 1. Management commitment 2. Management commitment 3. Management commitment

19 Foundation 3: The real work GEMBA Supporting organization GEMBA = Where the real work is done Lean is all about people!

20 LEAN AND AGILE BUSINESS 39 Agile business is about doing the right thing at all times in a changing environment Lean is about doing the work a little bit better every day How can Lean make your organization more Agile 40

21 Lean vs. Agile business Agile business Customer value Process Trust by management Cyclic change Integral design & IT People Learning Measure Lean management Customer value Process Management commitment Cyclic improvement Process improvement People Learning Measure Continuous change Continuous improvement Lean and Agile share goals and principles 41 Lean supports the process of Agile work Business: agility as a strategy Process: agile work Agility Organizati on and IT

22 Short-cyclic improvement & change I C A D M Customer value Short-cyclic improvement (Lean) enables continuous change Continuous Change Something new What is really happening? Implementation and process control Continuous improvement Change Our current situation The facts Solutions & decisionmaking Impact analysis 44

23 Lean provides a toolbox for short-cyclic change 45 Lean technique: Context analysis Process design and technology are the usual suspects. Key causes can usualy be found in Rules, Structure and Motivation [Alec Sharp] Simple, clear purpose and principles give rise to complex and intelligent behavior. Complex rules and regulations give rise to simple and stupid behavior [Dee Hock] Reducing complexity makes you more Agile

24 Improvement and change are FUN! Get people involved Communication! 47 Business: agility as a strategy Agility Process: agile work Organization and IT

25 Agile changes Continuous improvement & continuous change change Improvement and change techniques 49 Foundation for Agile business 50

26 Japanese look on Western organizations We need good cooperation at the GEMBA! Conclusions Lean is NOT the single silver bullet for Agile business Short-cyclic (Lean) improvement can powerfully support Agile work The Lean philosophy provides lessons for a foundation for Agile business 52

27 Tips and good practices Connect your Lean and Agile initiatives Use short-cyclic improvement to do the work a little bit better every day Action Don t get stuck in plans and designs Experiment trial and error Accept uncertainty make decisions on the way Inspire people for improvement and change FUN! And 53 Use customer value as your North star But prepare for changing customers and needs Good luck with! 54

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