Lean at Cisco: Lessons Learned from Lean Product Development and Lean Startup
-
date post
14-Sep-2014 -
Category
Technology
-
view
3.125 -
download
5
description
Transcript of Lean at Cisco: Lessons Learned from Lean Product Development and Lean Startup
© 2010 Cisco and/or its affiliates. All rights reserved. 1
Lean at Cisco: Lessons Learned from Lean Product Development and Lean Startup Ken Power Internal Agile-Lean Coach/Consultant, Cisco Systems
Thursday June 21, 2012
Lean Startup Event Organized by Enterprise Ireland and ITAG
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2
Pilot Projects
2008 • First agile pilots • Agile Projects • Organic Growth across the BU through ground-up pilot projects
Formal Agile Transition Program
Launched
2009 • More Teams • Agile Program Management
• System Wide Focus
• Formal Training Plan
• Formal Exec Support
• Broader Stakeholder Engagement
• Lean Thinking • Lean Principals
Agile Office Established
2010 • Commitment to sustainable and sustained agility
• Broad Organization Focus
• Focused Stakeholder Engagement
• Closer Customer Engagement
• Investigate Lean Startup approaches
Culture and Mindset
2011 • Support teams in innovating and developing the processes that are right for them
• Expand adoption across product areas
• Lean Startup principles
• Improve capability of organization
• Develop Portfolio Management Concepts
Portfolio Management
across the Business Unit
2012 • Synchronize all products across the BU
• Problem solving and obstacle removal at an org level
• Organization Learning
• Quantify and reduce Technical Debt
• Agile Architecture
• Eliminate Waste
Ongoing continuous
improvement
2012+ • Create Flow through the Organization
• Continue to Lead through Innovation
• Focus on Teams and Culture
• Refine and Improve
• Build on Organization Learning
• Sustainable Organization
January 2008! December 2009! August 2010! May 2012!June 2011!
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3
• My day job Co-Founder, Agile Office at Cisco Internal Agile-Lean Coach/Consultant
• Extra-curricular activities Fellow of the Lean Systems Society (http://LeanSystemsSociety.org/) Award-winning publications in Agile and Lean product development Frequent speaker at major international Agile and Lean conferences Involved in organizing international Agile and Lean conferences Industry/academic collaborative research on Lean software development with Lero, UL, NUIG PhD research in Lean product development (NUIG) Agile-Lean Galway Meetup (http://www.meetup.com/Agile-Lean-Galway/) Blog: http://SystemAgility.com/
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4
http://SystemAgility.com/publications/ http://SystemAgility.com/events/
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5
The fallacies that cause delays, undermine quality, and raise costs
D.#G.#Reinertsen,#“The$principles$of$product$development$flow$:$second$genera8on$lean$product$development”.#Redondo#Beach,#Calif.:#Celeritas,#2009.###S.#Thomke#and#D.#Reinertsen,#"Six$Myths$of$Product$Development,"#Harvard#Business#Review,#vol.#90,#pp.#84G94,#May#2012#
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6
Myth 1 High utilization of resources and people will improve performance.
Myth 2 Processing work in large batches improves the economics of the process.
Myth 3 Our plan is great; we just need to stick to it. Myth 4 The sooner the project is started, the sooner it will be
finished. Myth 5 The more features we put into a product, the more
customers will like it. Myth 6 We will be more successful if we get it right the first time.
D.#G.#Reinertsen,#“The$principles$of$product$development$flow$:$second$genera8on$lean$product$development”.#Redondo#Beach,#Calif.:#Celeritas,#2009.###S.#Thomke#and#D.#Reinertsen,#"Six$Myths$of$Product$Development,"#Harvard#Business#Review,#vol.#90,#pp.#84G94,#May#2012#
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7
• Lean Startups are based on three trends Use of free and open source software Application of agile software development methods Ferocious customer-centric rapid iteration, as exemplified by the Customer Development process
• Sometimes described as Lean Thinking applied to the entrepreneurial process
• Equally applicable to large organizations – different challenges
http://theleanstartup.com/
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8
• Entrepreneurs are Everywhere
• Entrepreneurship is Management
• Validated Learning
• Innovation Accounting
• Build-Measure-Learn
!
http://theleanstartup.com/
© 2010 Cisco and/or its affiliates. All rights reserved. 9
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10
Batch Size
Cost
Total Cost
Holding Cost
Transaction Cost
Optimal Batch Size
D.#G.#Reinertsen,#“The$principles$of$product$development$flow$:$second$genera8on$lean$product$development”.#Redondo#Beach,#Calif.:#Celeritas,#2009.###S.#Thomke#and#D.#Reinertsen,#"Six$Myths$of$Product$Development,"#Harvard#Business#Review,#vol.#90,#pp.#84G94,#May#2012#
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11
D.#G.#Reinertsen,#“The$principles$of$product$development$flow$:$second$genera8on$lean$product$development”.#Redondo#Beach,#Calif.:#Celeritas,#2009.###S.#Thomke#and#D.#Reinertsen,#"Six$Myths$of$Product$Development,"#Harvard#Business#Review,#vol.#90,#pp.#84G94,#May#2012#
© 2010 Cisco and/or its affiliates. All rights reserved. 12
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 13
Product
Early Customer Engagement
Extended Customer Trials
© 2010 Cisco and/or its affiliates. All rights reserved. 14
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 15
Views expressed by Tom & Mary Poppendieck and Taichi Ohno
“
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 16
• Extra Features
• Delays
• Handoffs
• Extra Processes / Relearning
• Partially Done Work
• Task Switching
• Defects
• Unused Employee Creativity
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 17
James Womack
“
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 18
Eric Ries, The Lean Startup. (page 274)
“
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 19
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 20
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 21
Credo of the Lean Systems Society (http://leansystemssociety.org/credo/)
“
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 22
• Do not just focus on building great products or providing great services
• Focus on developing great people and building great teams
• Build great organizations that appeal to people’s sense of intrinsic motivation
Thank you.