Apply Systems Thinking

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1 Apply Systems Thinking in Large-scale Scrum Transformation Lv Yi

2 Systems Thinking The process of understanding how things influence one another within a whole

3 The significant problems we face today cannot be solved at the same level of thinking at which they were created - Albert Einstein

4 Cause and Effect are often distant in Time and Space

5 Building blocks

6 Reinforcing loop

7 Balancing loop

8 Delay

9 Systems Archetype Patterns of behavior of a system Wikipedia

10 Recognize, then Leverage

11 Fixes that backfire

12 Template Problem symptom Fix Unintended consequences

13 Current profits Staffing cuts Productivity

14 Small triumphs and long troughs You feel that you need to try the same solution just a little more, and then a little more, and then one more time... until you catch yourself resisting the idea of trying anything else Feel powerlessness. See the dangers, but no choice

15 Limits to growth

16 Template Limits or constraint Growth process Limiting process Growing action Actual performance Corrective action

17 Organization's capacity to improve Resources to quality improvement Growth process Improvements Limiting process Complexity of quality issues

18 You feel as though you have suddenly run into a brick wall, or bumped your head on a glass ceiling An acceleration of growth and performance, then the growth mysteriously levels off The harder you push, the harder the system seems to push back

19 Shifting the burden

20 Template Quick fixes Symptomcorrecting process Problem symptom Side effects Fundamental solutions Source of problem or root cause Addiction loops

21 Heroic, and temporary "crisis mode" Addiction loops Symptomcorrecting process Rewards for "heroic" behavior Delays on product launch Fundamental solutions Dependence on "heroics" for sense of accomplishment Effectiveness of project management

22 Quick fix continues upward Symptom oscillates, the problem seems to come and go The capacity of the system to fix itself declines Powerful tendency toward additive denial. I can get out of this any time I want

23 Tragedy of the commons

24 Template A's growth process Actual performance that A measures A's activity A's limiting process Limits or constraints Total activity Gain per individual activity B's activity B's limiting process B's growth process Actual performance that B measures "Tragic" degradation process

25 A's growth process A's profits A's fishing A's limiting process Sustainable ocean fishing capacity Total fishing Effort required per fish caught B's fishing B's limiting process B's growth process B's profits

26 People benefit individually by sharing a common resource At some point, the amount of activity grows too large for the commons to support You get increased difficulty in getting your share of the common resource You are compelled to step up your own efforts and others acting the same way

27 Accidental adversaries

28 Template Actions in B's favor A's fixes to improve A's own results A's unintended obstruction of B's success A's success B's success B's unintended obstruction of A's success B's fixes to improve B's own results Actions in A's favor

29 P&G's ability to meet Wal-Mart needs for products and services Price promotion by P&G Additional costs of handling promotional items P&G's profitability Wal-Mart's profitability More product sold at discount; manufacturing variability "stocking up" by Wal-Mart Wal-Mart's ability to meet P&G's need for distribution

30 Groups of people, who ought to be in partnership with each other, and who want to be in partnership with each other, end up with bitterly opposed

31 Scenarios

32 Sacrifice Definition of Done

33 Self-managing team

34 Cross-functional team

35 Fault management

36 Transparency

37 Organizational impediments

38 Collaboration between PO and Team

39 Product improvement

40 Recognize, then Leverage

41 Fixes that backfire

42 Template Problem symptom Fix Unintended consequences

43 Increase awareness of the unintended consequences Cut back on the frequency with which you apply the fix and the number of fixes you apply at one time Give up the fix that works only on the symptom Create shared vision Look for alternative fixes

44 Limits to growth

45 Template Limits or constraint Growth process Limiting process Growing action Actual performance Corrective action

46 Be aware of doing more of what worked in the past Look at both the reinforcing and balancing loops to find interrelationships between your success strategies and potential limits The real leverage lies in its early phases Look for other potential engines of growth

47 Shifting the burden

48 Template Quick fixes Symptomcorrecting process Problem symptom Side effects Fundamental solutions Source of problem or root cause Addiction loops

49 Understand the situation, what alternative solutions might you have tried, if the quick fix were not available to you? Use the archetype as a tool for inquiry, not as a tool for advocacy, to the fundamental solution Articulate your long-term vision around the problem Strengthen the long-term solution Reduce dependency on the short-term fix Go cold turkey on the addiction

50 Tragedy of the commons

51 Template A's growth process Actual performance that A measures A's activity A's limiting process Limits or constraints Total activity Gain per individual activity B's activity B's limiting process B's growth process Actual performance that B measures "Tragic" degradation process

52 See the structure together Close off the common resource Have an overriding legislation for the common good, and mandate some common goal or focal point

53 Accidental adversaries

54 Template Actions in B's favor A's fixes to improve A's own results A's unintended obstruction of B's success A's success B's success B's unintended obstruction of A's success B's fixes to improve B's own results Actions in A's favor

55 Don t push on the well-intended fix that applies to your own part of the organization Seek to strengthen your understanding of your partner s fundamental needs, how you are unintentionally undermining them, and how you could support each other instead

56 Reference

57 Contact Yi Lv

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