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© Reaktor 2015 Leadership beyond Agile Sustainable change that matters Sami Lilja, Agile coach Twitter: @samililja

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© Reaktor 2015

Leadership beyond AgileSustainable change that matters

Sami Lilja, Agile coachTwitter: @samililja

© Reaktor 2015

Have you ever as a customer..

© Reaktor 2015

Have you ever at your work..

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© Reaktor 2015

© Reaktor 2015

What if local supermarket was organised like an IT department?

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The Reality?

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© Reaktor 2015

Leadership beyond Agile

• Systems Thinking

• New view to organisation development

• Value Demand and Failure Demand

• Towards the Better

© Reaktor 2015

”© Reaktor 2015

A system is not the sum of its parts but the product of their interactions

- Russell Ackoff

What is System

• Collection of parts that are interdependent.

• The parts interact in a such a way that it affects the capabilities and qualities of the entire system

• System has a purpose

”© Reaktor 2015

A system is not the sum of its parts but the product of their interactions

- Russell Ackoff

What if we do not see The System?• Collection of parts that

are interdependent

• The parts interact in a such a way that it affects the capabilities and qualities of the entire system

• System has a purpose

Managing parts separately.“Most of the costs falls

between the cracks”- M Poppendieck

“The cost is not in the transactions. The cost is in

the flow”- J Seddon

The purpose, from customer perspective, is not understood.

Design and management of work is done incorrectly,

causing waste.

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© Reaktor 2015

95 / 5

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An example of a system

Joe

Team

Product Owner

HelpDesk

Customers

Logistics Departme

ntSuppliers

MAIN MENU1. Catalogue2. myInvoicesSelect: ___

webshop.comIT System

What issues can affect Joe’s work negatively?

© Reaktor 2015

What impacts Joe’s work• Clarity of the customer request

• Communication channels between departments

• Quality of backlog

• Other items in the backlog

• Team’s working practices

• Tools (compilers, editors, TA, CI, ...)

• Pressure

• Dependencies with other departments

• Processes and working practices

• Interrupts

• Bonuses (Joe, team members, PO, other people in the company)

• Responsibility sharing between the people

• Priority of work

• Non-work-related issues (e.g. mother hospitalized)

• Code base

• Joe’s Competency (domain knowledge, technical skills, “interpersonal skills”)

• Product Owner’s competence (e.g. ability to prioritize

• etc.

System

System

System

System

System

System

System

System

System

System

Joe

JoeSyste

m

System

System

System

Another Syste

m

System

System

© Reaktor 2015

Performance

(√Process + People)System

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Methods

Purpose

Measure

© Reaktor 2015

Source: http://www.flickr.com/photos/ichihara-hanpu/8070674230/

© Reaktor 2015

What is the Purpose of your organisation?

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Demand

Value Demand(Arvokysyntä)

Adds value to customer or user.

What and How of the service

This is type of Demand we want

Failure Demand(Häiriökysyntä)

Failure to fulfil customer or user needs

Bad quality, delays, wrong product or service; missing product or service

Consequential wasteful work inside the organisation: meeting, queues, waiting, misunderstandings, reporting

Up to 80% of work done in an organisation

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© Reaktor 2014

Do we need this process at all?

What thinking created this

process?

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Value Demand and Failure Demand

Value Demand(Arvokysyntä)

Adds value to customer or user.

What and How of the service

This is type of Demand we want

Failure Demand(Häiriökysyntä)

Failure to fulfil customer or user needs

Bad quality, delays, wrong product or service; missing product or service

Consequential wasteful work inside the organisation: meeting, queues, waiting, misunderstandings, reporting

Up to 80% of work done in an organisation

© Reaktor 2014

• Processes, tools and IT Systems are a good servant but a bad master

• They do not fix the problems in the system

• However, processes & tools & IT Systems may hide the problems deeper

© Reaktor 2015

© Reaktor 2014

Towards the Better

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ProcessesRules and guidelines

Governance

Metrics

Design and management of

workFunding model

Goals

Incentives and bonuses

Recruiting and outsourcing

Tools and technologies

IT Systems

Quality of requirements

Structure of business units Resourcing

practises

Customer and market

understanding

Project Management

Office

Relationship with

customers

Training

Site locationsTeam

structure QA Practises

Meetings

Communication channels Feedback (and

lack of)

Technical Debt

Knowledge (and lack of)

Deployment practises

Current code baseRoles and

responsibilities

System conditions(Systeemin olosuhteet)

© Reaktor 2015

Study and understand Demand

Demand from customers and clients (Value & Failure)

Demand from internal stakeholders

1. Define work item types. E.g.

- Source / Destination- Workflow- Order of Magnitude in

Size

2. For each work type analyse e.g.

- Demand- Arrival Rate- % of Value vs Failure

Demand- Customer Expectations

3. Describe Sources of Internal and External Dissatisfaction

© Reaktor 2015

Design Against Deman

d

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Project delivery or Classes of Service

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Priority or Capability allocation?

Product Owner

Team

Product Owner

Team

40%

40%

20%

© Reaktor 2015

Improvement is not enough• Radical change requires a new perspective

• From inside-out to outside-in, from process compliance to customer need

• Study Demand

• Understand the difference between Value and Failure Demand

• Design against Demand, plan for things that go predictably wrong

• Understand Purpose

• Create Measures that are relevant for the Purpose

• Use measures for learning, not for target setting or bonuses

• Have courage to change harmful System Conditions

• Experiment, experiment, experiment!

© Reaktor 2015

© Reaktor 2015

Thank you!

Twitter: @samililja