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Lean & Agile: Opportunities forContract Management and AdministrationRick WaltersJanuary 2017
Presented for theNational Contract Management AssociationNorth Texas Chapter
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Working DefinitionsThe presentation will cover a sampling of concepts and tools from Lean and Agile practices.
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MaximizeCustomer
Value
Systematic methods for the elimination of waste within an organization’s systems
Iterative, highly collaborative project and software development methods
Lean Agile Agile Manifesto
Agile Scrum
Software Development
Self-organizing Teams
Lean Manufacturing
Six Sigma Quality
Process Improvement
Quality Circles
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78 of 80 days removed from process
80% less errors
75% lower overhead
Michael Hammer ([email protected]) is the founder of Hammer and Company, a management research and education firm based in Cambridge, Massachusetts.Photo: http://www.hammerandco.com/
Harvard Business reviewReengineering Work: Don’t Automate, Obliterate, Michael HammerFrom the July-August 1990 Issue
Agile contributing to 3x improvement in project success rates.Agile Projects are More Successful than Traditional Projects, Anthony Mersino, Aug. 2016 and Standish Group Chaos Studies.
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Rethink rules and assumptions about how work is done
Apply new techniques and tools to engage your customer and your team
Achieving breakthroughs
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Agenda
Presentation: Lean and Agile concepts, tools, techniques and examples
Discussion: Opportunities for application in Contract Management
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TEDxRainier - Joe Justice - WikiSpeed
High Efficiency and Road LegalPrototype in 3 months
10th place of over 100
https://www.youtube.com/watch?v=x8jdx-lf2Dw&list=PL1AC4FFCAEAC422FA (~10 min)
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Achievement
High EfficiencyRoad LegalFunctional Prototype, 3 Mo.10th of over 100
Breakthroughs
Development cycle
10-25 years 7 day cycles
Car body cost and time
$36,000, three months $800, 3 days
Tool cost
$100MM $89 ban saw, home-made CNC router
Engagement
44 People4 countries
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CMBOK Foundational Competencies
Desktop Reference Guide to the Contract Management Body of Knowledge
NCMA, July 2015
Before During After
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Con
tract
Man
agem
ent P
rofe
ssio
nGains• Electronic systems (vs paper)• Standardized, processes,
templates • Supplier on-boarding • Electronic approval signatures • Elimination of paper PO,
electronic acknowledgement
Challenges, Opportunities• Forms in triplicate, why not enter
one place, one time • Purchase order cycle time too long • Supplier collaboration • Kanban board for complex products• ISO 9000 prescriptive
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Lean and Agile concepts illustrated in the video
Development cycle time
Distributed collaborative teams
Reduce waste and errors
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Manifesto for Agile Software Development
We are uncovering better ways of developing software by doing it and helping others do it. Through this work we have come to value:
Individuals and interactions over processes and toolsWorking software over comprehensive documentation
Customer collaboration over contract negotiationResponding to change over following a plan
That is, while there is value in the items onthe right, we value the items on the left more.
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© 2001, the above authorsthis declaration may be freely copied in any form,
but only in its entirety through this notice.
Learn – Adapt ControlPeople Artifacts
Kent BeckMike BeedleArie van BennekumAlistair CockburnWard Cunningham
Martin FowlerJames GrenningJim HighsmithAndrew Hunt
Ron JeffriesJon KernBrian MarickRobert C. Martin
Steve MellorKen SchwaberJeff SutherlandDave Thomas
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Development cycle time:drives delivery and learning
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2-4 Week plan
Learn and adjust every day
Learn and adjust every 2-4 weeks
Deliver working product
every 2-4 weeks
Agile Scrum LifecycleOverall plan
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Distributed collaborative teams
Scrum Roles
Scrum Master
Product Owner
Development Team
Structured interactions and communications tools
Product PlanningSprint PlanningDaily Stand-up (15 min.)
– What did you accomplish since the last meeting?– What are you working on until the next meeting?– What is getting in your way or keeping you
from doing your job?Sprint ReviewSprint Retrospective
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Learn and adjust every day
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Visualizing Workflow – Scrum Board
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To Do | Doing | Review | Done
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Reduce Waste and Errors8 Wastes of Lean - TIM WOODS
T Transport – Moving people, products & information
I Inventory – Storing parts, pieces, documentation ahead of requirements
M Motion – Bending, turning, reaching, lifting
W Waiting – For parts, information, instructions, equipment
O Over production – Making more than is IMMEDIATELY required
O Over processing – Tighter tolerances or higher grade materials than are necessary
D Defects – Rework, scrap, incorrect documentation
S Skills – Under utilizing capabilities, delegating tasks with inadequate training
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Alternative acronym:Process Excellence NetworkThe 8 Deadly Lean Wastes – DOWN TIMEContributor: Jason McGee-AbePosted: 08/12/2015
Originally was 7 “muda” Japanese term for waste.Lean Manufacturing - Wikipedia
Sprint Planning
Test Driven Development
Daily Stand-ups
Wikispeed examples
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Summary of Lean and Agile principles and practicesLean1 Agile2
• Lean – Eliminate Waste for efficiency: reduce steps and cycle time in a process
• Six Sigma – Reduce variation for effectiveness: Eliminate defects from a customer perspective
• Individuals and interactions over processes and tools• Working software over comprehensive documentation• Customer collaboration over contract negotiation• Responding to change over following a plan
• Process Mapping• TIM WOODS or DOWNTIME• Root Cause Analysis (Fishbone Diagram)• Statistical Analysis• Control Charts• RACI – Responsible, Accountable, Consulted,
Informed
• Product owner – represents client/market• Product backlog – dynamic and prioritized• Scrum Master – Orchestrate the Agile process• Sprints (Plan, Review, Retrospective)• Daily stand-ups – Rapid learning and adaptation• Self-organizing empowered teams• Burn-down chartsTe
chni
ques
, Too
lsPr
inci
ples
Bold: Some of the items discussed in the presentation, directly or indirectly.
1. Adapted from Wikipedia definitions for Lean and Six Sigma 2. From the Agile Manifesto agilemanifesto.org
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Application for Contract Management
Group• Examples of Lean or Agile concepts or techniques that
could enable gains listed
Table discussions (10 min)• Discuss at your tables
– What are some ideas about how Lean or Agile concepts or techniques could be applied or combined to address the challenges or opportunities?
– Alternatively, what are some concepts or techniques you would like to learn more about?
• Refer to handouts with concepts and techniques
Report out (10 min)17
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Con
tract
Man
agem
ent P
rofe
ssio
nGains• Electronic systems (vs paper)• Standardized, processes,
templates • Supplier on-boarding • Electronic approval signatures • Elimination of paper PO,
electronic acknowledgement
Challenges, Opportunities• Forms in triplicate, why not enter
one place, one time • Purchase order cycle time too long • Supplier collaboration • Kanban board for complex products• ISO 9000 prescriptive
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Examples of Lean or Agile concepts or techniques that could enable gains such as these.
How could Lean or Agile concepts or techniques be applied? Or, which concepts would you like to learn more about?
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Resources
• Contact centers of excellence within your organization for guidance or support
• A few representative organizations offering training and or certifications ASQ - asq.org
› Lean Six Sigma PMI – Project Management Institute - www.pmi.org
› PMI Agile Certified Practitioner (PMI-ACP)® ScrumAlliance - www.scrumalliance.org
› Certified Scrum: Master, Developer, Product Owner, Team Coach, etc.
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Accelerate your Careertie-ins across topics
Best Practices (Oct) Change Management (Nov) Lean-Agile (Jan)
The 10 Best Practices in Contract Management
Change Management and Contract Administration
Lean / Agile practices in Contract Management and
Administration
Conduct benchmarking for process and technology ideas
to simplify, streamline and improve results
Implement change management for effectiveness
in existing processes or improved adoption and
sustainability of new ideas
Explore core concepts of Lean and Agile and imagine how they might be applied to our challenges and opportunities
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Reference
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Notes and references
• References in comments and photos throughout these slides are from the TEDxRainier talk by Joe Justice and information in the WikiSpeed website (www.wikispeed.org).
• Michael Hammer ([email protected]) is the founder of Hammer and Company, a management research and education firm based in Cambridge, Massachusetts. Harvard Business Review: Reengineering Work: Don’t Automate, Obliterate, Michael Hammer. From the July-
August 1990 Issue • Manifesto for Agile Software Development (agilemanifesto.org)• TIM WOODS and DOWN TIME
Also known as 7 “muda” - Lean Manufacturing - Wikipedia Process Excellence Network: The 8 Deadly Lean Wastes – DOWN TIME, Contributor: Jason McGee-Abe.
Posted: 08/12/2015
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