Scaling Agile to the Enterprise with Lean
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1 Scaling Agile to the Enterprise with Lean Carsten Ruseng Jakobsen Mary Poppendieck
2 Program Grow a Lean Culture in projects The Clash With the Surrounding Organisation Bring Sourcing Partners on What would we do differently?
3 Company overview Systematic offices USA England Denmark Finland Washington London and Sleaford Aarhus and Copenhagen Tampere Established in 1985 Approx. 475 employees; 71% with a MSc or Ph.D. CMMI Level 5 certified Sales partners world-wide Customers in 35+ countries 97% of our customers would recommend us to other customers
4 Defence Defence Interoperability Interoperability, Command and Control Command and control Situational Awareness Electronic Warfare Electronic Warfare Support Healthcare HealthCare Clinical Information Systems Clinical Information systems Intelligence and and National Security National Security Management Information Systems Management Information Systems Boarder Control Border Control Various Various other solutions Integration Services Finance Finance Transport Transport Agriculture Public Sector Government Systematics business areas Vision A leading international company in delivering reliable and simple solutions to people who make critical decisions every day Mission Simplifying Critical Decision making
5 Grow a Lean culture in projects
6 Lean practices and culture focus Lean Self Assessment Refined Values Leadership framework Culture initiatives Practice initiatives Vision and strategy Scrum Early testing Efficiency improvements Simplify processes
7 Setting the stage define Lean vision Only these 5 stakeholders! Input Emperical Owner Receiver Change Resp. First Mover Environment Output Current strategy Values Principles for change previously and now Lean practices The six questions: What is the product? Why use it? What is the purpose? Who will change? Who will use it? What is the end goal? The seven values from Marys book: -Prioritize -Any other The nine principles for change(3x3): The 22 thinking tools from Marys book: - Prioritize New strategy: Mission Vision Values 1) Priorized list of values 2) List of other values Suggestions on change methods? Prioritized list of practices Risk for change project Risk Risk profile A vision for the Lean change was established from interviews Ref.: J. Pries-Heje S. Tryde, Role model for the organizational IT change, 2003 Ivan Aaen, A Conceptual MAP of Software Process Improvement, 2001
8 Bring on the experts Mary Poppendieck Systematic adoption of Lean P1: Create value and make status immediately available. It was important for Systematic to rephrase Eliminate Waste to avoid speculation on staff reduction. P2: Amplify learning and gemba. Practice over theory seek learning where processes are executed, e.g. in the projects Mary and Tom Poppendieck visited Systematic in december 2005 to do an executive briefing and a management briefing. At the management briefing Systematic presented current challenges related to testing and cycle time. In a very short time Mary facilitated a new understanding of the problem and how what to consider in order to improve. P3: Decide in the latest responsible moment. Unable to communicate message, and postponed talk and adoption of this principle. P4: Deliver fast and regularly. In addition to fast we decided a tact time of 1 calendar month P5: Empower teams and delegate with trust and respect. Close to Systematic values, but remove last parts of micromanagement P6: Build integrity in, prevent defects and ensure continuous improvement. New mindset: prevent instead of remove! P7: See the whole and produce to pull. Focus on: who ordered this work and why?
9 First improvements inspired from Lean Causal dependencies between thinking tools provided insight into Lean Software Development Realized that adopting Lean would impact culture and values more than practices and processes Two improvement-opportunities identified from business needs: Short Iterations(Scrum) and Early Test (New development method) Customer Value Flow Pull Perfection Production P6 Integrity P2 Amplify Learning P2 Amplify Learning P6 Build Integrity In T19 Refactoring T20 Test T5 Synkronize T4 Iterations T3 Feedback T6 Setbased development T18 Conceptual integrity T 17 Perceived integrity Management P1 Create Value P4 Deliver fast P7 See the Whole P3 Defer commitment T1 Eliminate waste T2 Value stream T11 Queue theory T12 Cost of delay T22 Contracts T21 Measures T10 Pull T7 Options thinking T8 Defer commitment T9 Decisionmaking People P5 Empower team P5 Empower team P5 Empower team P5 Empower team T16 Expertise T14 Motivation T15 Leadership T13 Selfdetermination Four pilots showed great results, all other projects followed!
10 Crossing the chasm sustain focus Establish vision folder and lean self assesment Workshop with groups of specialists Project Managers, architects, testers, user experience, - What are the challenges and solutions to adopt a Lean mindset Strategic project to increase efficiency with lean initiated Workshop with all projects what can you improve? Six organisational changes and 80+ project specific initiatives 1. Scrum 2. New development process with focus on early test 3. Need based reporting distinguish reporting from controlling 4. Improved culture 5. Efficient meetings 6. Establish a local improvement culture enable kaizen Walk the talk Listen to challenges and always come back with answers
11 What is a Lean culture for Systematic? Basic assumptions: We learn all life We can always improve even though what we do is already good The best knowledge on a work process is possessed by those who execute the process We are an unbureaucratic community based on mutual respect We all do our best to solve the challenges we are facing together We believe that truth has many faces and respectfully seek insight into the mosaic of truth. Values: Create value and make status immidiately visible Amplify learning, and seek facts where they happen Defer commitment and decide in last responsible moment Deliver fast in a stable flow based on pull from customer Empower teams and delegate with trust and respect Our work is a teamsport and we are on the same team Build integrity by exposing defects early and relentless improvements See and optimize the whole
12 Systematic Core Values The redefinition of values were influenced by Lean Making a Difference People Centric Freedom with Responsibility Pervasive Quality Cost Conscious Contributing to Society A creative company that stands out from the crowd Our company is built on personal and professional integrity We believe and trust in people Do the right thing the right way We use our resources wisely We contribute to the advancement of the places we call home We have a passion to succeed in everything we do Our employees are talents that grow with the job, not resources that are used and dumped We believe empowerment is the best way for people and organizations to grow We deliver to an agreed schedule, budget and quality We want to maintain our financial freedom to control the pace and direction og our future We participate responsibly in the marketplaces in which we act We have a long term strategic focus and the ability to act instantly We are commited to building longterm relationships with selected customers and partners Our employees have freedom with responsibility, and an obligation to take responsibility We work to the highest standards and strive for continuous improvement in everything we do We spend what is needed and nothing more We are commited to respecting the laws, values and cultures where we do business We are willing to take on challenges and see them through We treat people with dignity and value their contributions and maintain fairness in all relationships We expect and appreciate initiative and ambition We admit our mistakes and learn from them We employ sound financial practices We encourage our employees to contribute positively in every community we call home $Revision: $ We are committed to innovation and promote creative thinking in an energetic and inspiring working environment What we say is true and credible Better train people and risk they leave than do nothing and risk they stay We listen to and challenge our customers and we speak their language We fiercely fight waste, bureaucracy and any non-value creating activities We contribute to the enrichment of our home communities through active participation in R&D projects, training and educational activities Page 12
13 Drastical reduction in size New Quality Management System in numbers Business Manual reduced from app. 85 pages to 14 pages Number of roles reduced from 77 to 11 Number of processes reduced from 34 to 13 Number of procedures reduced from 201 to 3 $Revision: $ Page 13
14 Characteristics of Lean Companies: 1. They don t call themselves Lean The Way 2. Customer Obsession Stay Profitable to Stay in Business 3. Operational Discipline Things. Just. Work. 4. Highly Engaged People The Golden Rule 5. System-Level Incentives Long Term Thinking 14 July 11 Copyright 2011 Poppendieck.LLC l e a n
15 Food for Thought: How do you choose a starting point for organizational change?
16 Clash with the Surrounding Organization
17 Realtime projects great but Management gets behind when going in the old pace Governance system and old style reporting is unable to keep up with the realtime speed of the projects VP s are asked to get out of their office To establish a room with realtime information for the business unit To facilitate closer daily interaction with project managers and sales people $Revision: $ Page 17
18 BU realtime status and decisions Realtime status on projects and sale in business unit $Revision: $ Top Management and VP s and project managers reviewed status in this room looking where information was updated in realtime by project managers Page 18
19 Company realtime status and decisions CEO and VP daily standup meeting Weekly management meeting is cancelled Instead a daily 10 minute standup with CEO and VP s is introduced $Revision: $ Page 19
20 See the whole - shared functions Deliver co-ordinated services and understand the entire value stream Project Start Up Service: Co-ordinated effort across all shared functions IT infrastructure Legal HR Methods and tools Shared functions across sites: Shared functions are virtual teams across sites USA England Denmark Finland $Revision: $ Washington London and Sleaford Aarhus and Copenhagen Tampere Page 20
21 See the whole across offices and locations One company operating from many offices located at different locations Ownership and organisation reformed Group town-hall meetings on video Values refined to cover ONE group $Revision: $ Page 21
22 Visualization at the Executive Level Scania Ford Modular Architecture Spans Products Alan Mulally 22 Weekly Planning Meeting July 11 Copyright 2011 Poppendieck.LLC Work Together as One Team: Information Center (Big Room) Walls lined with charts and graphs) Weekly Meetings (Executive Team) Anticipate/address problems as a team System focused, long term decisions l e a n
23 Visualization 23 July 11 Copyright 2011 Poppendieck.LLC l e a n From:
24 Food for Thought: What does it mean to be agile outside the development projects?
25 Bring Partners On
26 Partners involvement Project phases Sale: Positioning, Pursuit, proposal Development Maintenance scenarios 1 2 Partners level of effort 3 4
27 Organisation Systematic Project management, Product Owner Software Architect and User Experience Team 1 Team 2 Team Partner E.g. specialists Integrated teams aligns well with Systematic values
28 Staffing of projects using sourcing Sourced developers communicative competencies are as important as the technical competencies. Hiring interviewes with all sourced developers. All new sourced developers receive a two week introduction course in Århus. Frequent visits at both locations communication is crucial for succes! Established comprehensive manual on practices
29 Sourcing IT infrastructure All sourcecode remain on Systematic network. CVS Separate network established for developers at sourcing partner External Firewall/ External Access Active Directory Citrix Access Gateway Fil sharing ClearCase & ClearQuest Shared document- and sourcekode repository. Shared backlog and burndown graphs. Closed project network Intranet Server Mail Server Sourcing development environment
30 What is the Motivation for Sourcing Partners? Poor Reasons: 1. Cost 2. Risk Avoidance 3. Thrashing Good Reasons: 1. Talent / Expertise 2. Market Savvy 3. Scale 30 July 11 Copyright 2011 Poppendieck.LLC l e a n
31 Global Teams A team is a group of people who have committed to each other to work together to achieve a common purpose. Distance does not change this definition. It just makes teams more challenging. Cop July l e a n
32 Global Team Models Small team has members located around the world; they coordinate with each other daily. Small co-located teams working on relatively independent subsets of a divisible architecture. A representative on core team communicates daily with and coordinates the work of a remote team. 32 July 11 Copyright 2008 Poppendieck.LLC l e a n
33 Food for Thought: What internal practices change when partners become involved in agile projects?
34 What would we do differently?
35 What would we do differently When you are done you know how you should have made it Story: Kaizen boards Management team more in front $Revision: $ Page 35
36 Questions?
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