[email protected], [email protected]
Scaling Agile to the Enterprise with Lean
Carsten Ruseng Jakobsen Mary Poppendieck
$Revis
ion: 1.1
$
Program
Grow a Lean Culture in projects
The Clash With the Surrounding Organisation
Bring Sourcing Partners on
What would we do differently?
$Revis
ion: 1.1
$
Company overview
Systematic offices
Denmark
Aarhus and Copenhagen
Finland
Tampere
USA
Washington
England
London and Sleaford
• 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
$Revis
ion: 1.1
$
Vision A leading international company in delivering reliable and simple
solutions to people who make critical decisions every day
Mission Simplifying Critical Decision making
Systematics business areas In
tero
pera
bility
Com
mand a
nd C
ontr
ol
Situation A
ware
ness
Ele
ctr
onic
Warf
are
Support
Clinic
al In
form
ation S
yste
ms
Managem
ent
Info
rmation S
yste
ms
Board
er
Contr
ol
Various
Fin
ance
Tra
nsport
Agriculture
Govern
ment
Defe
nce
HealthCare
Inte
llig
ence a
nd
National Security
Defe
nce
Inte
ropera
bility,
Com
mand a
nd c
ontr
ol
Situational Aw
are
ness
Ele
ctr
onic
Warf
are
Healt
hcare
Clinic
al In
form
ation s
yste
ms
In
tellig
en
ce a
nd
Nati
on
al S
ecu
rit
y
Managem
ent
Info
rmation S
yste
ms
Bord
er
Contr
ol
Vari
ous o
ther
solu
tions
In
teg
rati
on
Servic
es
Fin
ance
Tra
nsport
Agri
culture
Public S
ecto
r
$Revis
ion: 1.1
$
Grow a Lean culture in projects
$Revis
ion: 1.1
$
Lean practices and culture focus
2005 2008 - 2007 2006
Vision and strategy
Practice initiatives
Culture initiatives
Scrum
Early testing
Refined Values Leadership framework
Efficiency improvements
Simplify processes
Lean Self Assessment
$Revis
ion: 1.1
$
Setting the stage – define Lean vision
Input Emperical Owner Receiver Change Resp. First Mover
Environment Output
Current strategy 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?
New strategy:
Mission
Vision Values
Values The seven values from Marys book:
-Prioritize
-Any other
1) Priorized list of values
2) List of other values
Principles for change previously and now
The nine principles for change(3x3):
Suggestions on change methods?
Lean practices The 22 thinking tools from Marys book:
- Prioritize
Prioritized list of practices
Risk for change project
Risk
Risk profile
A vision for the Lean change was established from interviews
Only these 5 stakeholders!
Ref.: J. Pries-Heje S. Tryde, ”Role model for the organizational IT change”, 2003 Ivan Aaen, ”A Conceptual MAP of Software Process Improvement”, 2001
$Revis
ion: 1.1
$
Bring on the experts
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.
Mary Poppendieck
• 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
• 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?
Systematic adoption of Lean
$Revis
ion: 1.1
$
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
T19 Refactoring
T20 Test
P2 Amplify Learning
T5 Synkronize
T4 Iterations
P2 Amplify Learning
T3 Feedback
T6 Setbased
development
P6 Build Integrity In
T18 Conceptual
integrity
T 17 Perceived
integrity
Management P1 Create Value
T1 Eliminate waste
T2 Value stream
P4 Deliver fast
T11 Queue theory
T12 Cost of delay
P7 See the Whole
T22 Contracts
T21 Measures
P3 Defer commitment
T7 Options thinking
T8 Defer commitment
T9 Decisionmaking
People
P5 Empower team
T16 Expertise
P5 Empower team
T14 Motivation
P5 Empower team
T15 Leadership
P5 Empower team
T13 Selfdetermination
T10 Pull
Four pilots showed great results, all other projects followed!
$Revis
ion: 1.1
$
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 e-mail culture
5. Efficient meetings
6. Establish a local improvement culture – enable kaizen
Walk the talk … Listen to challenges and always come back with answers
$Revis
ion: 1.1
$
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.
• Our work is a teamsport and we are on the same team
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
• Build integrity by exposing defects early and relentless improvements
• See and optimize the whole
$Revis
ion: 1.1
$
Page 12
$Revis
ion:
$
Systematic Core Values
The redefinition of values were influenced by Lean
Making a Difference
People Centric
Freedom with Responsibility
Contributing to Society
Pervasive Quality
Cost Conscious
A creative company that stands out from the crowd
Our company is built on personal and professional integrity
We believe and trust in people
We contribute to the advancement of the places we call home
Do the right thing the right way
We use our resources wisely
Our employees are talents that grow with the job, not resources that are used and dumped
We are commited to building longterm relationships with selected customers and partners
We treat people with dignity and value their contributions and maintain fairness in all relationships
What we say is true and credible
We have a passion to succeed in everything we do
We have a long term strategic focus and the ability to act instantly
We are committed to innovation and promote creative thinking in an energetic and inspiring working environment
We are willing to take on challenges and see them through
We believe empower-ment is the best way for people and organizations to grow
Our employees have freedom with responsibility, and an obligation to take responsibility
We expect and appreciate initiative and ambition
Better train people and risk they leave – than do nothing and risk they stay
We deliver to an agreed schedule, budget and quality
We work to the highest standards and strive for continuous improvement in everything we do
We admit our mistakes and learn from them
We listen to and challenge our customers and we speak their language
We want to maintain our financial freedom to control the pace and direction og our future
We spend what is needed and nothing more
We employ sound financial practices
We fiercely fight waste, bureaucracy and any non-value creating activities
We participate responsibly in the marketplaces in which we act
We are commited to respecting the laws, values and cultures where we do business
We encourage our employees to contribute positively in every community we call home
We contribute to the enrichment of our home communities through active participation in R&D projects, training and educational activities
$Revis
ion: 1.1
$
Page 13
$Revis
ion:
$
Drastical reduction in size
• 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
New Quality Management System in numbers
l e a n
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
July 11 Copyright©2011 Poppendieck.LLC 14
$Revis
ion: 1.1
$
Food for Thought: How do you choose a starting
point for organizational change?
$Revis
ion: 1.1
$
Clash with the Surrounding Organization
$Revis
ion: 1.1
$
Page 17
$Revis
ion:
$
Realtime projects great but …
• 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
Management gets behind when going in the ”old” pace
$Revis
ion: 1.1
$
Page 18
$Revis
ion:
$
BU realtime status and decisions
Realtime status on projects and sale in business unit
Top Management and VP’s and project managers reviewed status in this room looking where information was updated in realtime by project managers
$Revis
ion: 1.1
$
Page 19
$Revis
ion:
$
Company realtime status and decisions
• Weekly management meeting is cancelled
• Instead a daily 10 minute standup with CEO and VP’s is introduced
CEO and VP daily standup meeting
$Revis
ion: 1.1
$
Page 20
$Revis
ion:
$
See the whole - shared functions
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
Deliver co-ordinated services and understand the entire value stream
Denmark
Aarhus and Copenhagen
Finland
Tampere
USA
Washington
England
London and Sleaford
$Revis
ion: 1.1
$
Page 21
$Revis
ion:
$
See the whole across offices and locations
• Ownership and organisation reformed
• Group town-hall meetings on video
• Values refined to cover ONE group
One company operating from many offices located at different locations
l e a n
Visualization
at the Executive Level
Ford
Alan Mulally
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
Scania
Modular Architecture Spans Products
Weekly Planning Meeting
July 11 Copyright©2011 Poppendieck.LLC 22
l e a n
Visualization
From: www.qv-system.com July 11 Copyright©2011 Poppendieck.LLC 23
$Revis
ion: 1.1
$
Food for Thought: What does it mean to be agile
outside the development projects?
$Revis
ion: 1.1
$
Bring Partners On
$Revis
ion: 1.1
$
Partners involvement
Sale: Positioning, Pursuit, proposal Development Maintenance
Project phases
scenarios
1
2
3
4
Partners level of effort
$Revis
ion: 1.1
$
Organisation
Integrated teams aligns well with Systematic values
Project management, Product Owner
Software Architect and User Experience
3
4
4
3
2
2
Systematic
Partner
3
4
Team 1
3
4
4
3
Team 2
4
3
2
2
Team 3
2
2
E.g. specialists
$Revis
ion: 1.1
$
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
$Revis
ion: 1.1
$
Sourcing IT infrastructure
All sourcecode remain on Systematic network.
Separate network established for developers at sourcing partner
Shared document- and sourcekode repository.
Shared backlog and burndown graphs.
Citrix Access Gateway
External Firewall/
External Access
Active Directory
CVS
Fil sharing
Mail Server
Intranet Server
ClearCase & ClearQuest
Closed project network
Sourcing development environment
l e a n
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
July 11 30 Copyright©2011 Poppendieck.LLC
l e a n
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.
July 11 31 Cop
yrig
ht©
200
8
Pop
pen
diec
k.L
LC
l e a n
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.
July 11 32 Copyright©2008 Poppendieck.LLC
$Revis
ion: 1.1
$
Food for Thought: What internal practices change when
partners become involved in
agile projects?
$Revis
ion: 1.1
$
What would we do differently?
$Revis
ion: 1.1
$
Page 35
$Revis
ion:
$
What would we do differently
• Story: Kaizen boards
• Management team more in front
When you are done you know how you should have made it
$Revis
ion: 1.1
$
Questions?