leaning - energized work presentation

Presented by Simon Baker, Energized Work 28 October 2010

a tendency or partiality of a particular kind

Simon Baker Twitter: @energizr Skype: simon.energizr Email: simon@energizedwork.com Blog: blog.energizedwork.com

Delight customers

Profit in business comes from repeat customers, customers that boast about your product, and that bring friends with them.

– Deming

‘‘

Follow the money

The goal of every company is to make money.

– Goldratt

‘‘

Most products fail because they don’t have enough customers

The greatest risks are delivering the wrong thing, not validating customers early and an unproven business model.

Organizations are over-organized

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

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

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.

Small continuous improvements only go so far

Way of working E

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

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.

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

Run small experiments as learning cycles

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.

– John Seddon

Measures should reflect the true purpose of the people doing the work.

‘‘

Don’t chase targets. Use measurements to pursue improvement

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

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

Shared Vision

Visualize the future in a charter

Manage by cash flow

Visualize the cash position using cash basis accounting in a simple profit-and-loss statement.

To drive profit, increase revenue and remove the causes of costs

Inventory can’t generate revenue

50,000

100,000

150,000

200,000

250,000

300,000

350,000

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.

Sustain throughput to satisfy value demand

Throughput [ Per Week ]

Release as often as customers will allow to get their feedback.

Minimize failure demand

10 Rework [ Per Week ]

Repaid Debt Fixed Defects Debt Defects

Fix defects immediately. Manage debt carefully and continuously.

INQUIRY

Design Prototype

IMMERSION

OPTION Hypothesis

MANAGE

Make Test

DELIVERY Validation

Customers, stakeholders, users Business model

Discovery-driven delivery

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.

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.

Thank you. Twitter: @energizr Skype: simon.energizr Email: simon@energizedwork.com Blog: blog.energizedwork.com

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