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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

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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!

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•  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/

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http://SystemAgility.com/publications/ http://SystemAgility.com/events/

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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#

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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#

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•  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/

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•  Entrepreneurs are Everywhere

•  Entrepreneurship is Management

•  Validated Learning

•  Innovation Accounting

•  Build-Measure-Learn

!

http://theleanstartup.com/

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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#

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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#

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Product

Early Customer Engagement

Extended Customer Trials

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Views expressed by Tom & Mary Poppendieck and Taichi Ohno

“ 

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•  Extra Features

•  Delays

•  Handoffs

•  Extra Processes / Relearning

•  Partially Done Work

•  Task Switching

•  Defects

•  Unused Employee Creativity

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James Womack

“ 

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Eric Ries, The Lean Startup. (page 274)

“ 

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Credo of the Lean Systems Society (http://leansystemssociety.org/credo/)

“ 

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• 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.