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© 2008 - 2013 Scaled Agile, Inc. and Leffingwell, LLC. Scaled Agile Framework ® is a trademark of Leffingwell, LLC.
By Dean Leffingwell
Principles of Lean-Agile Leadership
April 18, 2014
2© 2008 - 2013 Scaled Agile, Inc. and Leffingwell, LLC. All rights reserved.
The Management Challenge
If you can’t change the system who can?
It is not enough that
management commit
themselves to quality and
productivity, they must know
what it is they must do.
—W. Edwards Deming
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Lean Foundation: Leadership
1. Take a systems view
2. Embrace the Agile Manifesto
3. Implement product development flow
4. Unlock the Intrinsic motivation of knowledge Workers
Foundation: Leadership
The Goal: Value
Respect for People
Product Development
FlowKaizen
Lean-Agile Leaders
Management is trained in lean thinking
Bases decisions on this long term philosophy
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Understand the economics, the full value chain, and cost of delay
Optimize the whole, not the parts, of the organization
Optimize the whole, not the parts, of the software system
Own the system; take responsibility for systemic change
Align to common mission
Take a systems view#1
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Understand the Full Value Stream
The goal is to optimize the time from concept to cash*
E-mail Supervisor
E-mailTech Lead
Assign Developer
To Verification
To Operations
A long-lived series of system definition, development and deployment steps that provides continuous flow of value
The majority of the time spent going from concept to cash is the result of delays, not value-added activities!
Reduce the delays, improve cycle time
*Adapted from: Implementing Lean Software Development: From Concept to Cash
Value
Waste
5 min _____ 2 min _____ 15 min _____ 2 hours _____ 15 min _____ 3 min 160 min
15 min ½ week 2 weeks 2 weeks 1 week 3 hr 45min ½ week 6 weeks + 4 hrs
Touch time: 2 hrs. 40min. Cycle time: 6 weeks
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Cost of Delay Economics
User/Business Value
+ Time Value
+ Risk Reduction | Opportunity Value
Cost of Delay
Cost of Delay
DurationWSJF =
C
A
B
• Use Job Size (relative or absolute)
as a proxy
• Adjust when capacity warrants
DurationBlue is total CoD
Job sequencing is the key to flow based economics. Do the Weighted Shortest Job First
Time
CoD
Use relative numbers for fast prioritization
Hint
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Own the System
Everybody is already doing his best
It’s the system, not the workers, that ultimately determine quality and productivity
Only management can change the system
Source: Nilsson. The Essential Deming: Leadership Principles from the Father of Quality, McGraw Hill, 2012
—W. Edwards Deming
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Support manifesto values and principles
Deliver more frequently
Know how to implement XP, Scrum, Kanban, SAFe and evolving practices
Foster excellence in software engineering, craftsmanship, collaborative system design
Empower high-performing, cross-functional teams
Exhibit kaizen mind and a bias for action
Embrace the Agile Manifesto#2
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Timebox:5 minutes
Exercise – Scaling Agile Principles
Sit down with your team and discuss a few principles behind the manifesto
Categorize each as: - Scales as is - Requires more thought in the large enterprise
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Visualize work; expose WIP and bottlenecks
Reduce queues and backlogs
Reduce batch size. Accelerate feedback.
Manage and exploit variability with cadence
and synchronization
Limit WIP. Limit demand to capacity.
Implement product development flow#3
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Reduce Queues and Backlogs
Long queues are just bad
Little’s Law
Avg wait time = avg queue length/avg processing rate
Faster processing time decreases wait
But the fastest way to reduce wait time is by reducing queue lengths
Reinertsen, Don. Principles of Product Development Flow
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Reduce Batch Size
Small batches go through the system faster with lower variability
Large batch sizes increase variability High utilization increases variability Severe project slippage is the most
likely result
Reducing batch size – Reduces cycle time; faster
feedback– Decreases variability and risk
Most important batch is the transport (handoff) batch
Proximity (co-location) enables small batch sizes
Project slippage rises exponentially with duration
Fig. Source: Poppendieck. Implementing Lean Software DevelopmentReinertsen, Don. Principles of Product Development Flow
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Apply Visibility and WIP Constraints
Wednesday Thursday Friday Monday Tuesday Wednesday Thursday Friday Monday Tuesday
Sto
ry
10S
tory
11
Sto
ry8
Sto
ry
9
Sto
ry
7
Sto
ry
6S
tory
5
Sto
ry
3
Sto
ry
4
Sto
ry
2
Sto
ry
1
Question How is this team doing? How do you know that?
What would be the affect of a three story WIP constraint on Dev and Test?
Today
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Principles of Product Development Flow
o Read Principles of Product Development Flow
o Don’t worry too much about understanding it.
o Read it again
o Understand it this time.
o Apply it.
Homework
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Build a learning organization and emphasize life-long learning
Create an environment of mutual influence
Foster decentralized decision-making
Provide vision, with minimum specific work requirements
Eliminate demotivating policies, procedures, MBOs. Revamp personnel evaluation.
Unlock the Intrinsic motivation of knowledge workers#4
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On “Managing” Knowledge Workers
Knowledge workers know more about the work they perform than their bosses.
Workers themselves are best
placed to make decisions about
how to perform their work
To effectively lead, the workers
must be heard and respected
Knowledge workers have to
manage themselves. They have
to have autonomy.
Continuing innovation has to be
part of the work, the task, and
the responsibility of knowledge
workers.
—Peter Drucker
17© 2008 - 2013 Scaled Agile, Inc. and Leffingwell, LLC. All rights reserved.
Eight rhesus monkeys for a two week experiment on motivation and learning
Puzzles were placed in their cages
Motivation : The Puzzling Puzzles of Harry Harlow
Unprompted by any external motivation, the monkeys solved the puzzles on their own
This was an interesting, and not understood phenomenon
As a motivator, raisins were added as rewards
Result: the monkeys made more errors and solved the problems less frequently
“It appears that the performance of the task provides its own intrinsic reward…. this drive ..may be as basic as the others…. “
Book: Drive: The Surprising Truth About What Motivates Us by Daniel H. Pink. 2011
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Play this at Home
Drive Surprising Truth
About What Motivates Us
BOOKDrive: The Surprising Truth About What Motivates Us
by Daniel H. Pink. 2011 http://www.youtube.com/watch?v=u6XAPnuFjJc&feature=youtu.be Homework
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Conclusion
The foundation of Lean is Leadership
The foundation of SAFe is You
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