crj@systematic.dk, mary@poppendieck.com

Scaling Agile to the Enterprise with Lean

Carsten Ruseng Jakobsen Mary Poppendieck

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Program

Grow a Lean Culture in projects

The Clash With the Surrounding Organisation

Bring Sourcing Partners on

What would we do differently?

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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

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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

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Grow a Lean culture in projects

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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

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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

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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

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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!

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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

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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

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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

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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

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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

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Food for Thought: How do you choose a starting

point for organizational change?

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Clash with the Surrounding Organization

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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

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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

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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

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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

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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

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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

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Visualization

From: www.qv-system.com July 11 Copyright©2011 Poppendieck.LLC 23

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Food for Thought: What does it mean to be agile

outside the development projects?

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Bring Partners On

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Partners involvement

Sale: Positioning, Pursuit, proposal Development Maintenance

Project phases

scenarios

1

2

3

4

Partners level of effort

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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

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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

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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

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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

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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.

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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.

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Food for Thought: What internal practices change when

partners become involved in

agile projects?

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What would we do differently?

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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

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Questions?