leaning - energized work presentation
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Presented by Simon Baker, Energized Work 28 October 2010
a tendency or partiality of a particular kind
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Simon Baker Twitter: @energizr Skype: simon.energizr Email: [email protected] Blog: blog.energizedwork.com
Delight customers
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Profit in business comes from repeat customers, customers that boast about your product, and that bring friends with them.
– Deming
‘‘
Follow the money
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The goal of every company is to make money.
– Goldratt
‘‘
Most products fail because they don’t have enough customers
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The greatest risks are delivering the wrong thing, not validating customers early and an unproven business model.
Organizations are over-organized
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Specialization and centralization comes at the cost of complexity in the form of unnecessary dependencies that introduce waste and bottlenecks.
Conventional product development is like betting on a hole-in-one
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Every idea and decision is an hypothesis until it’s validated by paying customers. It’s a big risk waiting for a big-bang release to test the market exists and the product fits, and to prove that sales can be repeated.
Improve the odds of success with continuous discovery, validation and iteration
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Implant with rapid and responsive iterative delivery capability into day-to-day business operations to continually test business assumptions and feature ideas with customers using working software.
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Small continuous improvements only go so far
Way of working E
ffect
iven
ess A transformative change
can remove endemic waste and provide a better place to start from.
But it’s got to be successful.
Organize around products and collapse the value stream to remove endemic waste
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No silos. No projects. Everyone sits together, including business people, and work full-time on the product. Dependencies are removed. Environments are owned. It’s a small business with autonomy to pursue its goals.
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Seize a crisis or create one
Understand the system. Set up quickly. Do something that can’t be ignored. Forget grand strategy for the moment. Produce immediate results.
– Lean Thinking. Womack and Jones
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Run small experiments as learning cycles
MAKE
LEARN TEST
By applying Deming’s cycle repeatedly, at different levels, to tackle uncertainty. Product development becomes a test-driven delivery system that tells us we’re building the right thing and we’re building the thing right.
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– John Seddon
Measures should reflect the true purpose of the people doing the work.
‘‘
Don’t chase targets. Use measurements to pursue improvement
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Fund the business plan incrementally
CHARTER
INVEST
MEASURE
EXECUTE
Base funding on product performance in the market.
Is it satisfying customers? Is it profitable?
3 Months
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Success Criteria Testable expectations in terms of customer satisfaction, profit, environmental performance and other measures Measurements updated as progress is made
Current Situation Background and context Quantified data Qualitative assessment Previous measurements
Constraints Budget
Why Validated data from previous experiments Root-cause analysis
Assumptions To be validated
Risks
Shared Vision
Visualize the future in a charter
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Manage by cash flow
Visualize the cash position using cash basis accounting in a simple profit-and-loss statement.
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To drive profit, increase revenue and remove the causes of costs
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Inventory can’t generate revenue
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
23/1
0 30
/10
06/1
1 13
/11
20/1
1 27
/11
04/1
2 11
/12
18/1
2 24
/12
08/0
1 15
/01
22/0
1 29
/01
05/0
2 12
/02
19/0
2 26
/02
04/0
3 11
/03
18/0
3 25
/03
01/0
4 08
/04
15/0
4 22
/04
29/0
4 06
/05
13/0
5 20
/05
27/0
5 03
/06
10/0
6 17
/06
24/0
6 01
/07
08/0
7 15
/07
22/0
7 29
/07
05/0
8 12
/08
19/0
8 26
/08
02/0
9
£
Total Sleeping Money
Inventory Started WIP Ready to Start WIP Prepared WIP
Inventory costs money to make, costs even more money to maintain the code, and the cost of delayed release is lost earnings.
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Sustain throughput to satisfy value demand
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20
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60
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120
23/1
0
30/1
0
06/1
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13/1
1
20/1
1
27/1
1
04/1
2
11/1
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18/1
2
25/1
2
01/0
1
08/0
1
15/0
1
22/0
1
29/0
1
05/0
2
12/0
2
19/0
2
26/0
2
04/0
3
11/0
3
18/0
3
25/0
3
01/0
4
08/0
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15/0
4
22/0
4
29/0
4
06/0
5
13/0
5
20/0
5
27/0
5
03/0
6
10/0
6
17/0
6
24/0
6
01/0
7
08/0
7
15/0
7
22/0
7
29/0
7
05/0
8
12/0
8
19/0
8
26/0
8
02/0
9
Sto
ries
Throughput [ Per Week ]
Release as often as customers will allow to get their feedback.
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Minimize failure demand
-25
-20
-15
-10
-5
0
5
10 Rework [ Per Week ]
Repaid Debt Fixed Defects Debt Defects
Fix defects immediately. Manage debt carefully and continuously.
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INQUIRY
Design Prototype
Learn
IMMERSION
OPTION Hypothesis
MANAGE
Make Test
Learn
DELIVERY Validation
Customers, stakeholders, users Business model
Discovery-driven delivery
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Vertically slicing stories creates opportunities for feedback and collaboration
When sitting together face-to-face time is easy and cheap. Everything is driven by conversations. Lot’s of conversations.
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Small is beautiful. Big is noisy
Scaling a small system won’t produce bigger results. It becomes a different system and won’t behave in the same ways.
A big system loses purpose and becomes too busy supporting itself.
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Thank you. Twitter: @energizr Skype: simon.energizr Email: [email protected] Blog: blog.energizedwork.com
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