a3 & kaizen: here's how

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Claudio Perrone written, illustrated and performed by After reading this, Tell this person why you are here and what you want to learn. introduce yourself to a person seated next to you. @agilesensei

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This is a slide deck I originally presented at ALE2011 in Berlin about A3 thinking and Kaizen in the context of a large Lean & Agile enterprise transition. At LESS2011 in Stockholm a few weeks later, it was even awarded as overall "best session of the conference" (in addition to "best in the Organisation Transformations category". (also presented at SDC12 and lssc12) Nov 2011: I want to humbly dedicate this work to Grant (PG) Rule, who suddenly left this world due to a tragic accident. Mar 2013: Latest News: As a follow-up to the presentation, I created an iPhone/iPad app (called A3 Thinker)!!. It's a set of brainstorming cards to help people create substantially better A3s. see http://a3thinker.com for details. A set of physical cards will soon follow. 24 July 2013: ...and yesterday I released the Android version on Google Play! Sep 2013: finally! The formidable A3 Thinker action deck is live! http://a3thinker.com/deck

TRANSCRIPT

Page 1: A3 & Kaizen: Here's How

Claudio Perrone

written, illustrated and performed by

After reading this,

Tell this person why you are here and what you want to learn.

introduce yourself to a person seated next to you.

@agilesensei

Page 2: A3 & Kaizen: Here's How

There is a war Going on…

Page 3: A3 & Kaizen: Here's How

Most large organizations I know are stuck into firefighting and command & control

Is Yours?

Page 4: A3 & Kaizen: Here's How

The traditional organization model seems inadequate to cope with today’s corporate challenges

Organization chart Blame flow

Rule makers

Controllers

Enforcers

Losers

Organization chart

Page 5: A3 & Kaizen: Here's How

But if organizations are more like organisms (i.e. complex adaptive systems)...

Page 6: A3 & Kaizen: Here's How

... How can we encourage and support everyone to be responsible for change?

Page 7: A3 & Kaizen: Here's How

I looked for clues when I attempted to...

Page 8: A3 & Kaizen: Here's How

Leverage and celebrate everyone’s

improvement ideas

1

Page 9: A3 & Kaizen: Here's How

Who are the heroes in a firefighting company?

Page 10: A3 & Kaizen: Here's How

Kaizen memo:

Before improvement: Action taken:

Effect:

Submitted by: Date:

We didn’t trace the small, continuous improvements to our work

Created “Kaizen memos” to post on an “implemented ideas” board

Team members trace and celebrate every implemented idea, even the smallest!

Claudio Perrone

Kaizen Memos

It all started when I launched a kaizen system as part of a major Lean & Agile transition

Page 11: A3 & Kaizen: Here's How

One of the teams was going through a delicate storming phase

Page 12: A3 & Kaizen: Here's How

Things improved sharply as we began to celebrate the completion of each story

Page 13: A3 & Kaizen: Here's How

Kaizen memo:

Before improvement: Action taken:

Effect:

Submitted by: Date:

Story completion was taken for granted

Created an explicit “Ready for Celebration” step in our workflow

Team proudly celebrates completion of stories at standup meetings

Claudio Perrone

Ready for Celebration

... leading me to my first kaizen idea!

Page 14: A3 & Kaizen: Here's How

Backlog Selected Development Testing 4 4 2

Done

Done

Ready for celebration

Page 15: A3 & Kaizen: Here's How

In the early days, loud-voiced celebration was not for everyone, however...

Page 16: A3 & Kaizen: Here's How

... So, we introduced a celebration volume

Kaizen memo:

Before improvement: Action taken:

Effect:

Submitted by: Date:

Some team members were “too modest” to celebrate with a resounding applause

Created a “celebration volume” icon to be crossed on the Kaizen memo

Members can choose to celebrate quietly (e.g. shake of hands, pat on the back, gimme 5, ..)

Claudio Perrone

Celebration Volume

Page 17: A3 & Kaizen: Here's How

People began implementing simple ideas such as improving their working environment...

Before…

… AFTEr

Page 18: A3 & Kaizen: Here's How

... Experimented with different forms of visualization (e.g. prisoner metrics, dj check sheets), scripts, and so on

Page 19: A3 & Kaizen: Here's How

What would your first kaizen idea

look like?

Page 20: A3 & Kaizen: Here's How

Write it down!

Kaizen memo:

Before improvement: Action taken:

Effect:

Submitted by: Date:

We had this problem We did this

It became a little better You Today

Page 21: A3 & Kaizen: Here's How

Unfortunately, Management’s initial reaction wasn’t exactly what I expected...

Page 22: A3 & Kaizen: Here's How

Who can yawn the loudest?

“Seeds of a revolution? Yeah right.”

Page 23: A3 & Kaizen: Here's How

But as the transition progressed, massive impediments raised dramatically to the surface

Page 24: A3 & Kaizen: Here's How

Like never before, we badly needed to develop our

ability to...

Page 25: A3 & Kaizen: Here's How

Systematically solve

problems

2

Page 27: A3 & Kaizen: Here's How

Copies of my preliminary A3 were lying on the table…

Page 28: A3 & Kaizen: Here's How

It was a hell of a good way to kick start a transition

Page 29: A3 & Kaizen: Here's How

I followed that same approach to tackle problems at team level

Page 30: A3 & Kaizen: Here's How

a "problem" is the difference between the "current situation" and the "standard/expectation"

Gap = Problem

Current Situation

Standard

Page 31: A3 & Kaizen: Here's How

So the first step I took with a team was to clarify & breakdown the problem…

Theme:

Problem Situation:

Target(s):

Cause Analysis:

Countermeasure(s):

Implementation:

Follow-up:

Page 32: A3 & Kaizen: Here's How

Background  Team is looking at improving its internal feedback loop to reduce cost of delay, particularly when rework is involved.

Theme:  

Current Situation  Lead-time of reworked stories: 14.6 days Processing time: 2.8 days Current State Map

Why are we talking about it?

Where do things stand today?

Page 33: A3 & Kaizen: Here's How

Problem Statement  

Lead-time of reworked stories: 10d

Team takes 4.6d longer to deliver a reworked story

The problem affects about 15% of all stories

If no action is taken, customers will continue to suffer delays

What should be happening?

Expectation – Current Situation

When? How often?

Where? How Long?

What is effected? Importance?

Urgency? Tendency?

Expectation:  

Discrepancy:  

Extent:  

Rationale:  

Page 34: A3 & Kaizen: Here's How

WE THEN SET A TARGET TO STIMULATE IMPROVEMENT

Theme:

Problem Situation:

Target(s):

Cause Analysis:

Countermeasure(s):

Implementation:

Follow-up:

Page 35: A3 & Kaizen: Here's How

Target  

Extent: The problem affects about 15% of all stories

Rationale: If no action is taken, customers will continue to suffer delays

Reduce lead-time of reworked items from 14.6d to 10d by July 31st 2011

what?

how much?

by when?

Page 36: A3 & Kaizen: Here's How

Background  Team is looking at improving its internal feedback loop to reduce cost of delay, particularly when rework is involved.

Current Situation  Lead-time of reworked stories: 14.6 days Processing time: 2.8 days

Reduce lead-time of reworked items

Theme:

Then, we wrote the theme

what? how much?

from 14.6d to 10d

Page 37: A3 & Kaizen: Here's How

What prevents us from reaching our target Condition?

Analysis  

Lead time > 10d

Functional test performed once a week

No dedicated tester

Tasks accumulate in large batches on Deploy stage

official (test) builds are installed weekly

Why?  

Push system

Why?  

Why?  

Why?  Nightly build setup/configuration takes 0.5d Verify “why” logic with

“therefore” in reverse

Facts, not opinions

Actionable root causes!

Cause Analysis:

Page 38: A3 & Kaizen: Here's How

Only then we identified a set of potential countermeasures…

Theme:

Problem Situation:

Target(s):

Cause Analysis:

Countermeasure(s):

Implementation:

Follow-up:

Page 39: A3 & Kaizen: Here's How

Cause Countermeasure Description Benefit Effectiveness

Feasi-bility

Impact

A Limit WIP/Pull Limit how many stories team can start in parallel

-improve flow -encourage small stories

+ ++ 0

B Hire tester Hire dedicated internal tester

eliminate dependency on external people and spend more time on testing

- ++ --

B Do system Test internally

Devs that don’t work on feature can test someone else’s work

Reduces testing bottlenecks, improves knowledge sharing

+ + -

B SLAs with external testers

Create service level agreements between team and external testes

-more predictable flow -clear expectations -no “begging” -closer collaboration

++ + -

C Skip setup

Test the latest version of a subset of component files skipping the full product setup

Don’t need to wait for daily/weekly builds, reduce feedback delay between dev/test

++ + -

Countermeasures  C.Perrone

June 10, 2011

Page 40: A3 & Kaizen: Here's How

With the proposed countermeasures the future would look like this

Future State Map

Page 41: A3 & Kaizen: Here's How

In the implementation section, we created & shared an action plan

Theme:

Problem Situation:

Target(s):

Cause Analysis:

Countermeasure(s):

Implementation:

Follow-up:

Page 42: A3 & Kaizen: Here's How

Action Plan  

What Who Where How Proj. Completion

Actual completion

Vsm Stef./Claudio

Team Room

Post-its 10/6 10/6

Trace prisoner metrics

Paola Whiteboard Mark at each standup

15/7 N/A

Adopt skip-setup procedure

Team Team room

Agree policy

10/7 10/7

Limit WIP Team Whiteboard Agree policy

27/6 27/6

Hire tester Stef. Meeting room

Begging Mgmt :D

Never 29/6

Agree internal testing policy

Team Meeting Room

Retrospective

10/7 10/7

SLAs with external testers

Claudio/Elena/Stef.

Meeting Room

Agree policy

10/7 15/7

Page 43: A3 & Kaizen: Here's How

Finally the follow-up section…

Theme:

Problem Situation:

Target(s):

Cause Analysis:

Countermeasure(s):

Implementation:

Follow-up:

Page 44: A3 & Kaizen: Here's How

Follow-up  

Indicators  

Item Initial 15/7 31/7

Lead-time non-reworked items

7.8d 5d 5d

Lead-time reworked items

14.6d 6d 5d

WIP 15 5 6

IF THEN Countermeasure plan failed Begin A3 process to identify root cause of failed

plan

Target achieved but problem could recur

Identify other root causes and find new countermeasures

Target achieved and problem won’t recur

Share findings, standardize countermeasures, begin A3 process to reduce percentage of reworked items

Page 45: A3 & Kaizen: Here's How

We posted the A3 on the wall, right beside the kanban board

Page 46: A3 & Kaizen: Here's How

the team became 3 times faster, with less rework

Page 47: A3 & Kaizen: Here's How

The new state became the new "baseline for improvement”

Page 48: A3 & Kaizen: Here's How

We shared our findings with our communities of practice to let the acquired knowledge spread “laterally”

Page 49: A3 & Kaizen: Here's How

What problems would you

tackle?

Page 50: A3 & Kaizen: Here's How

More importantly, management saw what it means to "remove impediments”

Page 51: A3 & Kaizen: Here's How

… making me realize that

I had chance to...

Page 52: A3 & Kaizen: Here's How

Turn the leadership

triangle upside-down

3

Page 53: A3 & Kaizen: Here's How

At this point of the transition we were falling into chaos

Performance

Time

Late Status Quo

Resistance

Chaos

Integration

New Status Quo Foreign Element (transition begins)

Transforming Idea

Satir Change Model

Page 54: A3 & Kaizen: Here's How

The leadership triangle was actually broken

Page 55: A3 & Kaizen: Here's How

To turn the leadership triangle upside down, we didn’t need enforcers, “easy going” or absent managers…

we needed problem solvers!

Page 56: A3 & Kaizen: Here's How

So I began to tackle problems by pairing up with one promising manager

Page 57: A3 & Kaizen: Here's How

… Then I began practicing quick coaching cycles

What do you mean by it? (Clarity) Is it always the case? (Assumptions) How do you know? (Evidence) What are you implying by that? (Implications) Would that necessarily happen? (consequences) Do anyone see it another way? (Alternative Point of views)    

Page 58: A3 & Kaizen: Here's How

Today, more managers are beginning their a3

thinking journey

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So, I released a family of thinking tools…

www.a3thinker.com  

Page 61: A3 & Kaizen: Here's How

Final Thoughts

Page 62: A3 & Kaizen: Here's How

“ -- Chinese proverb

If you want 1 year of prosperity, grow seeds. If you want 10 years of prosperity, grow trees. If you want 100 years of prosperity, grow people.

Page 63: A3 & Kaizen: Here's How

Claudio  Perrone  

[email protected]  www.agilesensei.com  

www.twi<er.com/agilesensei  www.a3thinker.com  

Thank You!