a holistic view of complex systems and organizational change

AT1 Agile Development Concurrent Session 11/13/2014 10:00 AM

"A Holistic View of Complex Systems and Organizational

Change"

Presented by:

Al Shalloway Net Objectives

Brought to you by:

340 Corporate Way, Suite 300, Orange Park, FL 32073 888-268-8770 ∙ 904-278-0524 ∙ [email protected] ∙ www.sqe.com

mailto:[email protected]

With more than forty years of experience, the founder and CEO of Net Objectives Al Shalloway is an industry thought leader in lean, SAFe, kanban, product portfolio management, Scrum, and agile design. Al helps companies transition enterprise-wide to lean and agile methods, and teaches courses in these areas—one of a handful of SAFe SPC trainers. He is the primary author of Lean-Agile Software Development: Achieving Enterprise Agility, Design Patterns Explained, Lean-Agile Pocket Guide for Scrum Teams, and Essential Skills for the Agile Developer. Cofounder (although no longer affiliated) with Lean Kanban University, Al is a popular speaker at prestigious conferences worldwide.

copyright (c) Net Objectives, Inc. All Rights Reserved.

12 November 2014

1

Al Shalloway CEO, Net Objectives SPC Trainer

A Holistic View of Complex Systems and Organizational Change

© Copyright Net Objectives, Inc. All Rights Reserved 2

Al Shalloway [email protected]

@AlShalloway

CEO, Founder

Co-founder of Lean-Systems Society

Co-founder Lean-Kanban University


12 November 2014

2


Lean Enterprise

Business

Management

Team

ASSESSMENTS CONSULTING

TRAINING COACHING

Lean Management Project Management

Lean for Executives Product Portfolio Management Business Product Owner Product Owner

technical process

Onsite SPC Leading SAFe + with extended topics SAFe Architecture PM/PO

Kanban / Scrum ATDD / TDD / Design Patterns


Complex systems still have patterns


12 November 2014

3


different kinds

of predictability


If you give people more things than they can handle, it will lower both their productivity, and their resolve to do better

If you treat people poorly, they will not work as hard for you as they would otherwise

If you separate people by distance and/or time, their ability to work together will go down

if you reward people based on particular measures, they will work more towards those measures than they will towards what you put those measures in place for

if people ignore principles that effect their work, they will get inferior results than if they attend to them

if people don't have a common vision, they will not work as well together as a team that has a common vision

Some Easy Predictions


12 November 2014

4


if you don't define your acceptance tests before writing your code you will waste a lot of effort

if you don't attend to code quality, your code will degrade and be harder to maintain and update in the future

if you write for just yourself, your teammates will have trouble understanding your code

if you use archaic names for your code variables, people won't understand your code well

The longer you take between integrations, the longer the integrations will take

if you don't get customer feedback quickly, you will write a lot of code they really don't want (for any number of reasons)

Some More Easy Predictions


If managers can't see what you are doing, they won't understand what you are doing If managers ask you to do one more thing in your iteration and they don't know your process (or you don't have an explicit one) then when you say you can't squeeze it in they will likely think you just aren't willing to take the extra effort required

Some Predictions About Management


12 November 2014

5


Systems & Structures Poor systems cause most of our problems

Biggest sources of waste are: • Delays in workflow • Delays in feedback

Consider: • Customers don’t know what they want • What happens when we don’t do test-first

Consider: • Developers and fixing bugs • The delays due to system


which part of the airplane is responsible for FLIGHT?


12 November 2014

6


Value Stream Impedance Value Stream Impedance (VSI) is a quantitative measure of the resistance faced by the work in a value stream.

Impedance often creates delays which create more work which creates more delays.

Impedance that slows us down is not as bad as the impedance which creates additional work that we now have to do, work that could have been avoided

Example. The thrashing that takes place when software developed by different teams are integrated.


Value Stream Impedance Number and size of work in process

People in a value stream not working together

How people are both geographically and managerially located

Sequence work is done in (test-first lowers this)

Too much WIP

Too little automation

Long feedback cycles

The disparity between management structure and the way the real work takes place

contributors to VSI


12 November 2014

7


Simple – easy cause and effect

Chaotic – small changes can cause big impacts

Complicated – many to many

Complex – more about holistic relationships – not exactly predictable in advance

Types of Systems


Thinking a System Is Complex Is More About Us

What is complex now may be simple tomorrow.

If we don’t take an holistic view we may have problems.

Few approaches (certainly not Scrum or Kanban Method) takes an holistic view


12 November 2014

8


Common Organizational Structure

inspired by Dan North, BSC/ADP 2012

Marketing Product Management

Development Support


What they can manage What they need to manage

Their people • If they are working on

the right things and at the right level

• Their “productivity” The quality of work of their people

Hierarchical


12 November 2014

9


The Nature of Our Work


Development Support


We Manage This Way

even though our value flows this way


12 November 2014

10


What they can manage What they need to manage

Their people • If they are working on

the right things and at the right level

• Their “productivity” The quality of work of their people

Time-to-market Effects of upstream groups on their teams Effects of downstream groups on their teams

Hierarchical vs. Lean Management


Who is managing the value?


12 November 2014

11


Time-to-Market


Development Support


how often does work wait?

Adding Value

Waiting

Adding Value Adding Value

Adding Value

Adding Value Adding Value

What percent of the time is our work moving forward?

How would you know?

No one is managing this in most companies.

Waiting

How much of the time is it waiting for something else to be done?

Wai

tin

g

Adding Value

Adding Value

Adding Value

Adding Value

Waiting


Development Support


12 November 2014

12


What happens when adding value is delayed?

Between getting requirements and using them?

Between writing a bug and it being detected?

Between two groups getting out of sync?


The Whole Picture


Development Support


12 November 2014

13


Legacy Organization: Matrix Resources to Projects

Project 1

Project 2

Project 3

Project 4

Project N


Let’s Create a Pilot Project

Project 1

Project 2

%

Project 3

Project 4

Project N

Business Analyst, Architect, Usability Expert, Developer, Developer, Tester, Project Manager

Expert

Just creating a cross-functional, co-located team you will improve

3x without changing your process.

While it may be successful as a pilot, it will likely not

be sustainable.


12 November 2014

14


Getting Requirements

Testing

Programming

Design

Integration

Planning

Collaboration

Re-doing requirements

Working from old requirements

“Fixing” bugs

“Integration” errors

Deployment

Building unneeded features

Overbuilding frameworks

What Work Do You Do?

Training Documentation

Essentially duplicating

components What percentage of your time do you spend on the left? Write it down.


1. Identify the actions taken in the value stream

Approve Request Reqts Sign Off

Review Deploy

Analysis

Design Code Test


12 November 2014

15


120 hrs` 280 hrs 240 hrs 8 hrs 2 hrs

1. Identify the actions taken in the value stream 2. What was the real time from start to finish of the action?

Approve Request Reqts Sign Off

Review Deploy

Analysis

Design Code Test

0.5 hrs 160 hrs 8 hrs 8 hrs 100 hrs



1. Identify the actions taken in the value stream 2. What was the real time from start to finish of the action? 3. What was the average time working on this vs working on other things?

Approve

.1 / 7.9 hrs

Request

0.5 / 0.0 hr

Reqts

60 / 100 hrs

Sign Off

1 / 7 hrs

Review

2 / 0 hrs

Deploy

3 / 5 hrs

Analysis

40 / 600 hrs

Design

40 / 80 hrs

Code

80 / 200 hrs

Test

40 / 200 hrs



12 November 2014

16


80 hrs 320 hrs 80 hrs 320 hrs

80 hrs


1. Identify the actions taken in the value stream 2. What was the real time from start to finish of the action? 3. What was the average time working on this vs working on other things? 4. Identify time between actions


Approve

.1 / 7.9 hrs

Request

0.5 / 0.0 hr

Reqts

60 / 100 hrs

Sign Off

1 / 7 hrs

Review

2 / 0 hrs

Deploy

3 / 5 hrs

Analysis

40 / 600 hrs

Design

40 / 80 hrs

Code

80 / 200 hrs

Test

40 / 200 hrs




80 hrs



1. Identify the actions taken in the value stream 2. What was the real time from start to finish of the action? 3. What was the average time working on this vs working on other things? 4. Identify time between actions 5. Identify any loop backs required

65% defective Repeat 3X

20% rejected Repeat 1X

Approve

.1 / 7.9 hrs

Request

0.5 / 0.0 hr

Reqts

60 / 100 hrs

Sign Off

1 / 7 hrs

Review

2 / 0 hrs

Deploy

3 / 5 hrs

Analysis

40 / 600 hrs

Design

40 / 80 hrs

Code

80 / 200 hrs

Test

40 / 200 hrs



12 November 2014

17


1. Identify the actions taken in the value stream 2. What was the real time from start to finish of the action? 3. What was the average time working on this vs working on other things? 4. Identify time between actions 5. Identify any loop backs required 6. Calculate Process Cycle Efficiency:


80 hrs


0.5 hrs 160 hrs 8 hrs 8 hrs

120 hrs` 280 hrs 240 hrs

100 hrs

8 hrs 2 hrs



Avg Time Worked Total Cycle Time

PCE = = 14.9% 509 hrs

3433 hrs

509 hrs

3433 hrs

Avg Time Worked Total Cycle Time

Approve

.1 / 7.9 hrs

Request

0.5 / 0.0 hr

Reqts

60 / 100 hrs

Sign Off

1 / 7 hrs

Review

2 / 0 hrs

Deploy

3 / 5 hrs

Analysis

40 / 600 hrs

Design

40 / 80 hrs

Code

80 / 200 hrs

Test

40 / 200 hrs

Approve .1 / 7.9 hrs

Request 0.5 / 0.0 hrs

Reqts 60 / 100 hrs

Sign Off 1 / 7 hrs

Review 2 / 0 hrs

Deploy 3 / 5 hrs

Analysis 40 / 60 hrs

Design 40 / 80 hrs

Code 80 / 200 hrs

Test 40 / 200 hrs

0.5 hrs 160 hrs 8 hrs 8 hrs

120 hrs 280 hrs 240 hrs

100 hrs

8 hrs 2 hrs


160 hrs 80 hrs 80 hrs



80 hrs

80 hrs



80 hrs



Approve

0.1 / 7.9 hrs

Request

0.5 / 0.0 hr

Reqts

60 / 100 hrs

Sign Off

1 / 7 hrs

Review

2 / 0 hrs

Deploy

3 / 5 hrs

Analysis

40 / 60 hrs

Design

40 / 80 hrs

Code

80 / 200 hrs

Test

40 /200 hrs




160 hrs 80 hrs 80 hrs



80 hrs

80 hrs

Eliminating delays between

what you do

Getting better at what you do

Which gives a better return?



12 November 2014

18


here’s a spot!

…and another!


MAKE

VALUE

FLOW

Enterprise Agility

Business

Management

Team

technical


12 November 2014

19


BUSINESS AGILITY BUSINESS INCREMENTS PRIORITY AND SEQUENCE RELEASE PLANNING

Business


The Business wants to Specify what is most important at any given point in time Learn from what is already implemented Learn from changing environment Update and reprioritize requirements

do not build what you do not need!

The Business may know what is valuable but in the beginning they may not know or understand everything involved in achieving it

Business Agility


12 November 2014

20


Lean-Agile improves time-to-market

MORE BETTER

market share

profit margins

product life time

customer satisfaction

bandwidth to pursue more markets

return on investment

risk investment

LESS

FASTER


FLOW VALUE STREAM VISUALIZATION IMPEDIMENT IMPACT WORKFLOW AS PROCESS

ACCOUNTABILITY MANAGE (LIMIT) QUEUES VISUAL CONTROLS MANAGE FLOW (PROCESS)

Management


12 November 2014

21


How Do Iterations Help? • Easier to plan • Better management visibility • Identify problems, avoid and/or correct quicker • Better prediction and certainty

Progress / Status • Track functionality vs. activities • Status / progress are visible… not derived • Individuals, teams, management, and business

all use the same information radiators

Management Agility


Management Responsibilities • Achieving highest business value (ROI) from the

technology investment (development) • Continually balance demand with capacity • Ensure there is a process

and provide support for the process • Develop and equip people so they can succeed

Management Agility


12 November 2014

22


TEAM AGILITY SELF ORGANIZATION SPEED OF PRODUCING QUALITY BUSINESS INCREMENTS

Team


Value Delivery Teams • Cross-functional • Collective ownership • Self-organization

Wins and Losses • Quick wins for morale • Quick losses for corrections

Consistency

Value focus

Visibility

Terminology and roles

Lean-Agile principles, practices, and metrics

Velocity and Business Value delivery capacity

Team Agility


12 November 2014

23


TECHNICAL AGILITY BEST ENGINEERING PRACTICES

TDD, DESIGN PATTERNS, EMERGENT DESIGN, CONTINUOUS INTEGRATION, REFACTORING

CONTINUOUS IMPROVEMENT

Team


60%-80%

The right technical perspective saves you Change-tolerant code Good engineering practices Discovering how best to evolve the system driven by Business needs Maintaining scope of system extensions Automating manual testing

of development happens after the first release

Technical Agility


12 November 2014

24


Portfolios

Programs

Projects

Book of Work Rolling Releases Levels 1, 2, & 3

Program Backlog Releases

Multiple Teams

Product Backlog Iterations

Whole Team

Lean

-Agi

le

Fram

ew

ork

Sc

ale

d A

gile

Fr

ame

wo

rk

LA I

tera

tive

Fr

ame

wo

rk

Executive, Business,

Management, & Team

Business, Management,

& Team

Business & Team Practices

Responsibilities Scale and Scope Toolsets Complexity


V A L U E S T R E A M O W N E R , B U S I N E S S S P O N S O R , T E C H N O L O G Y S P O N S O R , S T A K E H O L D E R S

TE

AM

P

RO

GR

AM

P

OR

TF

OL

IO

B U S I N E S S D I S C O V E R Y B U S I N E S S D E L I V E R Y

Input

Define Business capabilities

Create MBIs

Sequence MBIs

Create Features

Assign to Team Backlogs


12 November 2014

25


BUSINESS PMO PRODUCT MANAGER


TE

AM

P

RO

GR

AM

P

OR

TF

OL

IO

V A L U E S T R E A M O W N E R , B U S I N E S S S P O N S O R , T E C H N O L O G Y S P O N S O R , S T A K E H O L D E R S

Business Priority


Create MBIs

Sequence MBIs

Create Features



BUSINESS PMO SYSTEM ARCHITECT

PRODUCT MANAGER ENTERPRISE ARCHITECT


TE

AM

P

RO

GR

AM

P

OR

TF

OL

IO

Business Planning


Create MBIs

Sequence MBIs

Create Features



12 November 2014

26



TE

AM

P

RO

GR

AM

P

OR

TF

OL

IO

Business Staging




Create MBIs

Sequence MBIs

Create Features


RELEASE TRAIN ENGINEER

TEAM LEAD



TE

AM

P

RO

GR

AM

P

OR

TF

OL

IO

Ready to Pull




Create MBIs

Sequence MBIs

Create Features


RELEASE TRAIN ENGINEER

TEAM LEAD


12 November 2014

27

Al Shalloway email: [email protected] Twitter tag @alshalloway Register at www.netobjectives.com/register for webinar info Lean resources at www.netobjectives.com/lean Tutorials An Introduction to SAFe: The Scaled Agile Framework Mon 8:30-4:30 Design Patterns Explained – From Analysis To Implementation Mon 1-4 Eight Steps to Kanban Tue 8:30-12 Principles and Practices of Lean Software Development Tue 8:30-12 Lean Software Development is for Everyone Wed 4:15-5:15 A Holistic View of Complex Systems and Organizational Change Thu 10-11 Avoiding Over and Under Design Thu 11:30-12:30

Thank You


Lean Enterprise

Business

Management

Team

ASSESSMENTS CONSULTING

TRAINING COACHING

Lean Management Project Management

Lean for Executives Product Portfolio Management Business Product Owner Product Owner

technical process

Onsite SPC Leading SAFe + with extended topics SAFe Architecture PM/PO

Kanban / Scrum ATDD / TDD / Design Patterns

mailto:[email protected]

http://www.netobjectives.com/register

http://www.netobjectives.com/lean

a holistic view of complex systems and organizational change

Software

copyright c net objectives

al shalloway net objectives

net objectives spc trainer

founder of lean

lean kanban university

founder leankanban university

leanagile pocket guide

agile design