poppendieck 423

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l e a nsoftware development

www.poppendieck.comMary [email protected]@poppendieck.com

The Role of Leadership

In Software Development

1900 The One Best Way

Frederick Winslow Taylor Ruthless subdivision of labor

Engineers know best

Assumptions:Assumptions:

Workers will do as little as possible

Workers do not care about quality

Taylors View of Efficiency Employers get higher profits

Workers get higher pay

But Scientific Management Affronts human dignity

Discourages worker creativity

May 072 Copyright2007 Poppendieck.LLC


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1900 Industrial Training

Charles R. Allen New Bedford, Massachusetts

Four Step method of Industrial Training

Preparation, Presentation, Application, and Testing

On-the job training is best

Supervisors know how to do the job

Supervisors need training in how to train

1917 War Ships were needed

Allen developed programs for shipbuilding

88,000 people were trained in 2 years

Wrote the bookThe Instructor, the Man and the Job

If the learner hasnt learned, the teacher hasnt taught.May 073 Copyright2007 Poppendieck.LLC

1940 Training Within Industry

Wartime Production

Inexperienced Workforce

Used Allens Approach

Training for first line supervisors

Job Instruction how to train workers

Job Methods how to improve the way work is done

Job Relations how to treat workers with respect

Program canceled after the war

Taught in Europe and Japan

Well received, especially in Japan

Modified and still used today in ToyotaMay 074 Copyright2007 Poppendieck.LLC


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1980 Dr. W. Edwards Deming

System of Profound Knowledge

Appreciation for the system A systems view was fundamental; never sub-optimize.

Manage the relationship between suppliers, producers, and customers

Knowledge of Variation Most variation is common cause variation inherent in the system.

Trying to eliminate this variation only makes things worse.

Systemic problems lie beyond the power of the individual worker.

Deadlines and slogans do nothing to address systemic problems.

Provide leadership in changing the way the system works.

Theory of Knowledge Use the Scientific Method to improve systems

Hypothesis, Experiment, Learn, Incorporate Learning (PDCA)

Psychology When it comes to people, the things that make a difference

are skill, pride, expertise, confidence, and cooperation.



1980 Present

The Toyota Production System

Only after American carmakers had exhausted

every other explanation for Toyotas success

an undervalued yen, a docile workforce,

Japanese culture, superior automation

were they finally able to admit that Toyotas real

advantage was its ability to harness the intellectof ordinary employees.

Management Innovation by Gary Hamel,

Harvard Business Review, February, 2006


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Three Stonecutters were asked:

What are you doing?

What are You Building?

May 077 Copyright2007 Poppendieck.LLCMay 077

Im cutting stones!

Im earning a living.Im building a cathedral.

Respect People

Move responsibility and

decision-making to the

lowest possible level.

The Litmus Test:When workers are

annoyed by their job

Do they complain,ignore it, or fix it?


Stone Cutters or Cathedral Builders?


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Leadership

Three Models of Leadership

Old Dictator Style: Do it my way

1980s Empowerment Style: Do it your way...

Lean Style: Follow meand lets figure this out together

The leaders job at Toyota

First, get each person to take initiativeto solve problems and improve his or her job.

Second, ensure that each personsjob is aligned to provide value forthe customer and prosperity for thecompany


John Shook

What is Value?

Brilliant Products

Embody a Deep Understanding of:

The job that customersneed done

The right technologyto do that job


UnderstandsThe Business

UnderstandsThe Technology

Mind Meld


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Who Decides?

Behind every great product is a person with:

Great empathy for the customer Insight into what is technically possible

The ability to see what is essentialand what is incidental

Priority by Committee Everyone gets a vote

No one is responsible for the outcome


Marketing by Checklist We want whatever the competition has

The best way to get a me-too product

Product Champion


Example: Chief Engineer at Toyota

Responsible for Business Success

Develops Deep Customer Understanding

Develops the Product Concept

Creates The High Level System Design

Sets the Schedule

Understands what customers will value

and conveys this to the engineers makingday-to-day tradeoffs

Arbitrates trade-offs when necessary

Defends the Vision


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Marketing Leader

Product Road Map


Release Planning

Ballpark estimatesMinimum useful feature sets

Highest priority / greatest risk first

Technical Leader

Architectural Vision

The Role of Systems Design (Architecture):

Provide a foundation for growth

Create a common infrastructure

Enable incremental development

Minimize dependencies

Modularize potential change

Create space for teams to innovate

Design, code and test are different aspects ofthe same job and must be done concurrently

Leave room for the future

The architecture willevolve over time



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Leadership Roles

Functional LeaderFunctional LeaderExpertise

Standards

Staffing

Career Paths

Team LeaderTeam LeaderJob InstructionKnows how to do the job

Methods Improvement

No Problem is a problemJob AlignmentProvide value for customers

& prosperity for the company

Marketing LeaderMarketing LeaderBusiness Responsibility

Customer Understanding

Release Planning

Tradeoffs

Technical LeaderTechnical LeaderSystem Architecture

At a high level

Work daily with those

developing the detailsTechnical Guidance Integration

Tradeoffs


Horizontal Versus Vertical

Lean management places the horizontal

flow of value in the foreground.

Lean managers think horizontally.

However

Functions are still strong (or even stronger):

Repositories of deep technical knowledgeHome base for employees

Guardians of career paths


James Womack


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The Matrix Problem

How do functions avoid the dreaded

two boss problem?

By negotiations between the value stream leader

and the function head about what is needed

from the function to support the product.

The employee has only one boss:

the function head.


James Womack

Think Products, not Projects

ProjectsProjectsUp-front fundingScope fixed at onset

Success = cost/schedule/scope

Team often disbands at completion

ProductsProductsIncremental funding

Scope expected to evolve

Success = profit/market share

Team often stays with product


Start of Project

Completion

Maintenance

ConceptFeasibility

Internal Release

Alpha Release

Beta Release

First Production Release

Major Release

Dot upgrade

Batch FundingBatch Funding

Batch ThinkingBatch Thinking

System ThinkingSystem Thinking


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What is a Team?

A team is a group of people who have committed to each

other to work together to achieve a common purpose.

A group of people who sum up their individual efforts to

meet a goal may be a work group, but they arent a team.


Directed

Self-Directing

Self-Directing Work

Directed

Self-Directing


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Reliable Commitment

Is the team committed?Is the team committed?

Small team

Short timeframe

Well-defined goal

Used to working together

Necessary skills

Clear priorities

Basic disciplines

Proper leadershipCommitment of all to work

together to achieve the goal

If commitments are not met:If commitments are not met:

Is it a team or a work group?

Are tasks assigned orself-selected?

Is the team expectedto meetits commitments?

Who gets Partial Credit?Who gets Partial Credit?


Software:

The Brains of a System

Consider the Truck-Driving Problem:Program a computer to drive a truck across Americaunattended, on existing roads, in normal traffic.

This is not a one-pass problem.It will be solved one module at a time over many years.

Nor is it a software problem.Dont even think about the problem without the truck.

In software development We try to solve too many truck driving problems

All at onceWithout access to the truck!


I wonder what

I should donext?

Software DevelopmentSoftware DevelopmentFinding ways to turn over more and more of what we know to computers so

that we have more space left in our minds to discover more interesting things.


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Systems Thinking

Appreciate the SystemAppreciate the System

Build a complete product

Not just Software

Look at the whole picture

Across the Value Stream

For the Entire Lifecycle

Software is rather useless

all by itself

Software is embedded

In hardware

In a process

In an activity


Dev Production

Saving money in development at the expenseof productionmakes no sense.

Software is going to be around for a LONG time.


Case Study:

Zara (Inditex)

Zara: Womens fashion clothingDesign-to-Store in 2 weeks.

Twice-weekly orders.

Delivers globally 2 days after order

On hangers, priced, ready to sell

Shipping prices are not optimized!

Manufactures in small lots

Mostly at co-ops in Western Spain

At Western European labor rates

Inditex: 5 billion (70% Zara)~50 IT people develop applications

Fundamentals: IT is an aid to judgment,

not a substitute for it. Store managers decide on orders.

Designers talk to store managers.

Alignment is pervasive.

Business & technology people

really understand each other. Technology initiatives begin from

within. Business goals alwaysshape the use of technology.

Computerization is standardized andtargeted. The process is the focus.

This is Systems Thinking.This is Systems Thinking.

RESULTS Zara Industry

New Items introduced / year 11,000 3,000

Items sold at full price 85% 60-70%

Unsold Items


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Alignment

In order for organizations to perform brilliantly,

there are two prerequisites:*

First, everyone has to agree on what they want,

Second everyone has to agree on cause and effect.


*The Tools of Cooperation and Change, by ClaytonChristensen and others, Harvard Business Review, Oct 2006

Does everyone onDoes everyone onthe managementthe managementteam speak theteam speak thesame language?same language?


Cost Cutting

Drive cost out of each

department

Easy

Can easily interfere with

overall waste reduction

Example

Eliminate waste between

departments

Difficult

May not result in the

lowest department costs

Dev Production


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Financial Perspectives

Balance Sheet Thinking

What is the break-upvalue of the company?

I look at the bottomline. It tells me whatto do. Roger B. Smith

This metric guided GMinto the most catastrophic lossof market share in business history.*

Delay doesnt matter

Just-in-case is wise Work-in-process has value

Queues support better decisions

Cash Flow Thinking

How long does it take toconvert capital into cash?

The value of any stock,bond, or business today

is determined by the cashinflows and outflows

Berkshire Hathaway AnnualReport, 1992 (Warren Buffett)

Delay creates waste

Just-in-time is wiserWork-in-process is waste

Queues gum up the worksand slow things down


*Conquering Complexity in your Business,by Michael George & Stephen Wilson, p 53

Conformance to Plan

A Plan is a Commitment

Predictability comes from

conformance to plan.

The plan is always right,

even though it was made

when we had the least

information.

Planning is indispensable,

but plans are useless.

The most predictable

performance comes from

maintaining options until

we have the most

information.

May 0728 Copyright2007 Poppendieck.LLC* Dwight Eisenhower

*


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Utilization

We need full utilization of

expensive resources.

It is impossible to have

intact teams because this

decreases utilization.

Large queues of work help

keep everyone busy.

It is impossible to move

rapidly without slack.

Intact teams increase

overall productivity by

preserving team learning.

Batch and queue mentality

is the biggest detriment to

system-wide performance.


Work Standards

The purpose of standards is

to make it possible for any

one to do any job.

Standards are initiated by

process groups.

Written standards are to be

followed, not changed.

The purpose of standards is

to provide a baseline for the

team to change.

If you believe that standards

are writ in stone, you will fail.

You have to believe that

standards are there to be

changed.*

May 0730 Copyright2007 Poppendieck.LLC* Yoshio Shima, Director, Toyoda Machine Works


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Accountability


Span of Influence

Hold people accountable for

what they can influence

Measure at the team level

Fosters collaboration

Example

The team includes technical and

business people, and the whole

team assumes responsibility for

business success

Span of Control

Hold people accountable for

what they cancontrol

Measure at the individual level

Fosters competition

Example

The development team should be

responsible fortechnical success

The product manager should be

responsible forbusiness success

There is no such thing

as Technical SuccessKent Beck, XP 2004

Measure UP

Decomposition You get what you measure

You cant measure everything

Stuff falls between the cracks

You add more measurements

You get local sub-optimization

Example Measure Cost, Schedule, & Scope

Quality & Customer Satisfactionfall between the cracks

Measure these too!

Aggregation You get what you measure

You cant measure everything

Stuff falls between the cracks

You measure UP one level

You get global optimization

Example Measure Cost, Schedule, & Scope

Quality & Customer Satisfactionfall between the cracks

Measure Business CaseRealization instead!


From to ! From to !


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Three System Measurements

Average Cycle TimeAverage Cycle Time From Product Concept

To First Releaseor

From Feature Request

To Feature Deploymentor

From Defect

To Patch

The Business CaseThe Business Case P&L or

ROI or

Goal of theInvestment

Customer SatisfactionCustomer Satisfaction A measure of

sustainability

l e a nsoftware development

www.poppendieck.comMary [email protected]@poppendieck.com

Thank You!

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