Ben Hogan - Extending scrum adoption with visual managment

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Extending Scrum Adoption with

VisualManagementBen HoganSpeaker | Mentor | Trainer | Coach

agileben.com/[email protected]@agileben

Karen, CIO

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Toolbox for the Agile Coach – Visualization Examples Jimmy Janlén

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Days blocked (wasted)

When using Post‐it notes to indicate blocked status it can behelpful to keep track of the days since the blocker wasintroduced.

On the Daily Stand‐up meeting, simply put a dash on theblocker note, also known as tally marks. The dashing in itselfwill remind you and your team to act on the impediment ordependency. And the number of dashes will tell you how manydays have been wasted waiting for something or someone.

A large number of dashes is an invitation to a seriousdiscussion. Why does the team fail to resolve its impediments?Do they lack support? Motivation?

We’re really busy!

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Impacts of utilisation

A

To Do In Progress UAT Done

To Do In Progress Done

A

BIn Progress Done

Business Unit Business Unit

B Can we extend Scrum outside IT?

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Tough times for insurance

Volatility, Uncertainty, Complexity

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How do we respond?

”The greatest biologist since Darwin” – Richard Dawkins

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© Vanguard Consulting Ltd

Thinking governs performance

Performance

System

Thinking

Source: Vangard. John Seddon.

A huge shift in mindset

http://www.forbes.com/sites/stevedenning/2016/04/21/hbrs-‐embrace-‐of-‐agile/

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How do we unlock a new mindset?

“When companies can’t invent, it’s usually because their people are too damn busy.” ―Tom DeMarco, Slack

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“Operating a product development process near full utilization is an economic disaster.”

Donald G. Reinertsen, The Principles of Product Development Flow.

How do these challenges relate you your organisation?• Business generally overburdened• Market pressure to change and innovate• Established leadership mindset

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My role-‐ Training-‐ Mentoring-‐ Coaching

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Big up front planning

Bigg Gantt Charts

“Utterly Ridiculous – a complete waste of time” -‐ Karen

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Step 1: build awareness

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How would you build awareness?Start

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Visceral change

https://agileforest.com/2012/09/26/what-‐is-‐an-‐effective-‐stand-‐up/

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Our approach• Build desire for change– Show your walls– Show your backlog– Visit other sites

• Change incrementally– Try starting with Visual Management– Teach using games– Do an assessment

• Outcomes: lessons and next steps

SHOWING THE WALLS

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Showing the Backlog

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Jun Jul Aug290 225 270

Points required for Operational Imperatives: 165 95 95Points available for Strategic Theme Ranking: 125 130 175

RANK INITIATIVE DUE DATE DELIVERABLE JUN JUL AUG COMMENTS

10 Production Support Ongoing Correction of issues raised from the production environment and other unplanned critical changes - includes WC Monthly extracts for WCA & NCPD Reporting

75 75 75

20 Policy Conversion 31/12/2015 I90 to PC Policy Conversion (includes PC WC Conversion Development) 15 5 530 Workers Comp Claims Migration 30/06/2016 Migration of Workers Comp claims off CC5 and onto CC7 15 5 540 Workers Compensation Upgrade

Project29/02/2016 CLAIMS

Remaining CC build, Operational Reports/Extracts (incl. NSW EL), Test and Fix50 5 5

50 Workers Compensation Upgrade Project

POLICYMay: Report / Extract Development June/July: Contingency/Support

10 5 5

60 Hollard Initiative - Motor Phase 1 (rating algorithm and underwriting rules implementation (Same Wording)

May - Design/Build Motor ChangesJune - Build and Test Motor ChangesJuly - Test and Fix/ Support Implementation 30 15 15

Agreed in meeting on 23/03 that if possible, more resources should be assigned to this to progress more quickly

70 Acerta Revenue Strategy:Product and Portal refinements

May: Broker Portal Renewal Solution (for Blackburn)June : Broadform Changes - Requirements TBATBD

20 20 20

80 Commercial Digital / Online Strategy (Revenue)

May: Discovery for ESSA Quote/Buy Portal (requirements in progress) and Discovery for Bus Pack onlineJune & July : Implement ESSA and Commence Remaining Liab PortalsJuly: RMO Discovery

20 20 20

CD Digital Strategy Planning for June/July meeting is being booked - this will determine whether RMO via Policy Hub Development should proceed - if it does, it will need to be scheduled ahead of Business Pack build (RMO would need to have discovery in July,

90 Acerta Operational Improvement Strategy

Highest ranked Operational Improvements items (As ranked in the Business Improvement Forum and Subsequent OBO Ranking Meeting)

May - highest ranked items (ISR Performance, PC Email, PC COC)June - highest ranked itemsJuly - highest ranked items

15 15 15

Requirements to be ready prior to commencement of sprint in order to utilise this capacity, otherwise spare capacity will be used to assist with discovery activities

100 Commercial Direct Operational Improvement

May - highest ranked itemsJune - highest ranked itemsJuly - highest ranked items

15 15 15Requirements to be ready prior to commencement of sprint in order to utilise this capacity

110 RI Set-up 2016/2017 Reinsurance Set-up and Testing 5 Finalised Reinsurance Arrangements Outstanding - we are proceeding with a draft programme initially for Acerta.

120 Client Communications Updates Office Move: Update Address and Phone Number on all System Generated Customer Comms (applying new Guild Logos at the same time) and Policy Wordings (Email versions)

MIGA : Complete co-branding of additional Comms. Need to establish a new Co-Branding Standard which is then applied in future.

Agreed that application of new Branding/Styles for Direct and Acerta Wordings should occur on next significant renewal or when Content Changes necessitate a new Wording

130 Claims Category Changes required for Property and ISR - BI Reporting Issue 1

30/06/2016 Business Interruption related Claim Costs (reserves and payments) are being extracted to the Data Warehouse with an “unknown” coverage attached to them. This means we cannot be sure they relate to BI and, for Pack policies, we can't determine whether the reserves/payments relate to loss of income, claims prep costs or other BI coverages.

PC accepted that we could accept compromise until EOFY 15-16. Please also note that this issue is as a result of the way we reserve in CC.

This 10 points will cover some discovery into a solution for this and may be sufficient to resolve the reporting issue for ISR which is a simpler structure (single BI coverage) than the Business/Prof Packs which have multiple coverages.

15/04/16: As at the End of March 2016, the “unknown” coverage allocations show that about 80% of the issue is around ISR.

140 System Changes arising out GIL Op Model Changes

5 5 Targeting July for discovery - development in August and release in Sept

150 Client Communications for Workers Compensation (Claims)

Complete the remaining 113 Workers Compensation Client Communications 30 30 Operational efficiency. Copying and pasting new documents into GW blank templates is resulting in formatting issues and requires input from Claims Specialists which is not efficient

160 Workflow:Winback and Commercial Direct Pipeline Management

Includes:Winback (for Acerta and Direct)Campaign ManagementLead ManagementAssociated Reporting and Analytics (Requires BI Resourcing)

20 20 20

Total effort for this Project is likely to be 50 - 60 points Require decision on when to execute - contingent on BI Team Resourcing being made available in the same time-frame.Established that the Saleslogix licence is up for renewal on 30 August

170 CAPACITY MARKER 290 235 235180 FA 'Big Bang' conversion Fitness Australia Big Bang conversion options :

Option 1 (estimated here) - is to proceed with the Big Bang Conversion for an October Launch (1st Jan effective renewals).

Option 2: Leave Fitness Australia Policies Expiring 1/Jan/17 - 30/9/17 (2594 Policies) to convert at Renewal.

50 50

We have undertaken a detailed analysis of all of the changes required to PC, BC, CC and Reporting/Analytics to support the Big Bang option.

The total points required to complete this work is approx. 100 which would need to be accommodated in the July and August sprints.

The original estimates provided by Tom were lower, but focussed only on the Conversion component and were predicated on there being around 800 policies left on I90 by December this year. We have since confirmed that there will actually be in excess of 2,594 policies needing to be mid-term converted in December.

************************************************************************Our recommendation is that the Technology and Business capacity which this would consume would be better spent on higher value backlog items and we seek ratification of this outside of this forum with due consideration to operational resourcing impacts and cost/benefit************************************************************************

200 Workers Comp Early Learning WC NSW Early Learning was implemented as a new Producer Code (cost centre) - based on the original requirement to segregate financials. Now that we can potentially write under the same licence we need to modify the implementation so that the business is allocated to the originating producer (region) for budgeting and other financial reporting

Timing for this change is subject to when we want to go live with NSW Early Learning

210 Commercial Direct Revenue: Cyber Insurance

07/2016 dependent on policy volumes

Development of Cyber Product Current proposed approach is that this will initially be implemented avoiding any Guidewire system build but PC has requested that once policy volumes are at 10 or more a month, then a Guidewire solution is required

In the meantime we need to explore the ability in PC of being able to see

220 Claims Category Changes for Property - BI Reporting Issue 2

30/06/2016 Commercial Property claims which impact multiple coverages are not being correctly reported in BI reports - the financials are being rolled up into one coverage - e.g. Buildings. The allocation to a coverage appears to follow the order of Buildings -> Contents -> Stock, and can sometimes be allocated to a coverage that wasn’t impacted at all by the claim. As the data currently looks, there does not appear to be any Stock claims in CC7 – pure stock claims are being allocated to contents. PSD-15344

? ? ?

As a result of this, we are unable to obtain a true view of the performance of individual coverage sections (Buildings, Contents and Stock).

230 Integration of ClaimCenter v7 to external system provider Claim Central

30/06/2016 Integration of external provider Claim Central to ClaimCenter v7 30 30 PSD-16167

240 Application Performance Tuning Review and Optimise system performance of Workflow Screens and other functions ISR RaterWorkflow ViewsISR Endorsements

250 PC: Workers Comp Ability for Customers to submit their Wages and Financials Declaration Online 15 15 15 Agreed in meeting on 23/03 that Stuart would confirm whether this should be deferred until next year - question mark over business value at this time and capacity to implement

260 Liability Workshop updates to CC7, result of immersion

Ongoing Items raised from immersion done by AP, TD and SB for Liability claims. 75 Jiras raised and prioritised in Backlog. Please note that @8/2, 41 of these items have been actioned.

5 5

270 Occurrence Policies with Claims Made Endorsements

Company strategy has been determined. We are going to have Occurrence Policies with Claims Made Endorsements changes will be required to PC and CC to accommodate

Currently neither PC or CC can cater for Occurrence Policies with Claims Made Endorsements.

280 SMS Capability - for Billing and Claims Reminders

Ability to remind customers to pay their premium (BC) or to attend their medical appointments (Workers Comp Claims)

Effort to implement - 20 points of complexity per use case. Cost for 20,000 Claims and 20,000 Billing would be approx. $5,000 (based on approx. 7 to 10 c per sms and a monthly subscription). Effort / cost based on a basic implementation with minimal reporting capability

290 IVR for Claims Currently in Claims, a customer must call and speak to a claims specialist to pay their excess. It would be Operationally effective for customers to be able to make Excess payments via BPay without requiring in Claims Specialist intervention. This would free the Claims Specialist up from lengthy phone calls to do this over the phone.

Claims currently do about 15 of these per week. The customer would also have the added benefit of being able to pay their excess at a time convenient to them rather than in Guild's office hours.

300 Premium Capping/Cupping Revisit Capping / Cupping - are we losing revenue due to the methodology AL action to review Guidewire Axelerator with business to see if the approach is preferable. Possible sequencing following Hollards Rating Changes

310 Superior Risk Selection:Peril Assessment Summary

Risk Analysis Screen - new Peril Assessment Screen which captures the snapshot of the Peril Assessment Results back in PC

Blocked awaiting Guidewire to provide an integration point to support snapshotting the results in PC

** OPERATIONAL IMPERATIVES**

Guidewire Delivery (Jun 2016 to Aug 2016) - Candidate Listing Final

Total Points available: 1 Technology head count = 15 Delivery Points per month

Items not yet 'business ready' or 'decision pending'

Formalising the Governance Framework

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Exec briefings

CEO & GM intro to Agile and Scrum

Visiting other Sites

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Step 2: learning and doing

Change incrementally

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kick-start visual management with each team

Teaching using games

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Coaching

• Setup wall

• Workflow• Policies


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Limit by Space

If your team does Kanban or some version of Scrumban andhave a hard time honoring the WIP Limits you have set foryourselves, perhaps this approach can help you.

Instead of writing the WIP Limits, adjust the spaces. Make theboxes and areas containing the Post‐its so small that you can’tphysically fit more Post‐its than the space allows withoutbreaking the WIP Limit.

This approach also makes it bluntly obvious if the WIP Limithas been broken somewhere, just look for Post‐its stackedupon each other.


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Stuff Collectors

Having a hard time finding the right colored Post‐its? Do thepens seem to constantly disappear? Why not put up boxesbeneath or beside the whiteboard where you can collect them.

You can even add labels that at the same time will function asa legend, explaining the colors of the Post‐its.

The boxes could be made out of cardboard and put up usingadhesive tape. Or buy yourself shower storage baskets withsuction cups, attaching them to the whiteboard itself or anearby window.


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Blocker Notes

If you for some reason become blocked while working on atask, preventing you from moving forward ‐ add a red blockernote on top of that task. This makes the reason known foreveryone, and also works as a follow‐up reminder.

Review the blockers during the Daily Stand‐up and discuss howto address and resolve each of them.

The description clearly states why you are blocked, who youare waiting for (and why), or what the problem is. To make iteven clearer, write your own name and the date you becameblocked in the corner of the Post‐it.


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Hourglass Scrum Wall

A Scrum wall doesn’t need to be in the shape of a grid. TheHourglass Scrum Wall replaces a User Story lane with anHourglass where tasks flow downwards. It provides twonatural dimensions for limiting work in progress; the numberof concurrent User Stories, and an upper limit of two activetasks per User Story. If a story is too small to be broken downinto tasks (i.e. the team can finish the entire story within a day)it simply occupies the whole Hourglass.

Not separating “Work in progress” into “Coding”, “Reviewing”,and “Testing” and so on also enforces cross‐disciplinecollaboration and knowledge sharing.

Result: 28 boards across 10 departments

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Marketing

Underwriting

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PMs board

Superannuation sales

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Superannuation operations

Sales team

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Risk and Compliance

Finance

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Boards for cross department strategic initiatives

Second cross department initiative

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Visualisation:1. Work Items2. Work Flow3. Blocked work4. Workers / Avatars5. Work Types / Classes of Service6. Priority / Expedite7. Impediments / Issues8. Ready for Pull / Done columns9. WIP Limits10. Size11. Start / Finish Dates / Lead time12. Due Dates13. Team culture / fun

Limiting WIP1. Agreement to limit WIP2. Per person limits / limiting some of the time3. Overall limits are set and kept

Measure and Manage Flow1. Measuring throughput2. Measuring WIP3. Measuring days blocked4. CFD Chart5. Measuring Start / Finish / Lead Time6. Calculated SLA / Lead Time targets7. Measuring team satisfaction8. Measuring customer satisfaction

Explicit Policies1. Wall policy: card design, colour, placement 2. Defined Purpose and Measures of Performance3. Prioritisation policy4. Queue replenishment policy5. Work Sizing / Splitting Policy6. Definition of done / column entry/exit criteria7. Definition of “Ready to start”8. Staff / work allocation policy9. Classes of service policy10. Over WIP Limit Policy

Feedback Loops1. Daily meeting2. Service review / Measurement cadence3. Risk review / blocker review4. Operations Review / Retrospective5. Review / Demo / Customer Feedback

Improve Experimentally1. Visualisation is improving2. WIP is reducing over time3. Measures show improvement over time4. Policies are being updated5. Retrospectives / Reviews drive actual improvements6. Overall depth of Kanban is improving7. Using toyota / kanbankata: mentor/mentee coaching

Visualise(

Limit(WIP(

Manage(Flow(

Explicit(Policies(

Feedback(Loops(

Improve(

Current(

Kanban self assessment chartVersion 2. Questions or feedback contact [email protected]

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Results

Lessons learned

Visualising work was much easier than limiting WIP

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Result: known overburdening

7-8Avg Number of Tasks In Progress Per Person

Weinberg, G.M. Quality Software Management: Vol. 1 System Thinking.New York. Dorset House, 1992.

https://insights.sei.cmu.edu/devops/2015/03/addressing-‐the-‐detrimental-‐effects-‐of-‐context-‐switching-‐with-‐devops.html

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Elfving and Tommelein (2003) "Impact of Multitasking and merge bias on procurement of complex equipment”http://www.betterprojects.net/2010/12/multitasking-is-enemy-of-focus.html

2x3x

Lessons learned

Small changes can have large impacts

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Result: new office design

What would you do next?

Start

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Next steps

Limiting and Measuring WIP

Portfolio visualisation and prioritisation

New office and visualisation kits

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Visual Management Master Class

agileben.com/visual-management

§ Public Class: Half-Day 22nd June§ Private classes by appointment

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On your phone: get the materials

Subscribe at agileben.com for goodies:

SlidesVisual Management Mastery bookletSelf assessment toolDiscounts

On your phone: get the materials

Subscribe at agileben.com for goodies

Start

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QuestionsSt

art

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Ben Hogan - Extending scrum adoption with visual managment

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