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This is the (long overdue) translation of my opening keynote at the Italian Agile Day. I just presented it for IASA Ireland (International Association Software Architects). The a3thinker.com iphone/ipad app I mentioned (on Lean problem solving, 5 Whys, etc) went on sale on the Apple store on Mar 18. The A3 Thinker's Action Deck (physical cards) is going to be on sale shortly...and it is just awesome ;-)
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Claudio Perrone
written, illustrated and performed by
@agilesensei www.agilesensei.com www.a3thinker.com
How do you develop WINNING
products?
a few years ago, this would have been my answer…
Waterfall focused on speed & efficiency through specialization
Despite all the best intentions, however, Bringing projects to “success” always required heroic efforts
“ --- Samuel T. Redwine, Jr.
Software and cathedrals are much the same – first we build them, then we pray.
… And the risk of failing to meet customer expectations was high
Luckily, in 2001, I met someone who OPENED MY EYES…
1 Agile Software
Development
“It was then that I discovered the true nature of the problem.”
“I started by applying XP technical practices”
“… Which I later integrated with scrum”
“My teams and I fully embraced Agile development to grow a world-class software organization”
To DO Doing Done
Family 1
Unplanned Next
Burndown
Days
Wo
rk L
eft
We syncronized our work daily
Good Bad Next
Do more Do Less
Stop Doing
Start Doing
Keep Doing
We systematically reviewed our process
The revolution was represented by the “inspect & adapt” approach to development
Our culture was based on “empowerment” rather than “command & control”
We crafted opinionated software
“The best software has a vision. The best software takes sides. … Decide what your vision is and run with it.” -- 37 signals
We won awards and respect…
We almost touched the sky…
Almost
“July 2009 was the wettest July on record in Ireland”
“I’ll remember it as the month MATTEO was born”
BUT it is also the month I had to let go of a dream
WITHOUT A JOB
WITHOUT A purpose
WITH A GROWING Family to support…
… I did the only thing that was left
for me to do…
On my first mission, a cio asked me a question that haunts me to this day…
“If you were so smart, why did you fail?”
Lean
2
The adoption of Agile practices at enterprise level proved to be a mighty challenge
Scrum works Except when it
doesn’t
…you'll need to design processes that improve the product development flow…
“to succeed…”
… Optimize the whole, rather than just focus on unit costs…
… and develop a culture of continuous improvement
…
Awesome. Do it!
er…Alternatively, you can buy a bunch of cool cloud-based enterprise 2.0 solutions and/or send your people to a “certified scrum gladiator”tm course.
Enterprise Transition
Community (ETC)
Process Definition Workgroup
.. Continuous Integration
Workgroup ..
Architecture CoP ..
Scrum CoP …
Automated testing CoP …
etc
Improvement backlog
Teams gained the support of Entreprise transition communities, communities of practice and improvement workgroups
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0.25h
3d
5h
2.5d
2h
2d
1h
2h
1h Value Adding Time (VAT)
Non VAT
Period calculated: from xx to yy (high season)
F: 200/month
Average: 10/day
Proc. Lead Time: 71.75h
Total Cycle Time: 9.25h
Proc. Efficiency 12.9%
Push arrow
inbox
20jobs 10jobs 5jobs 2jobs due date FIFO $ value
Current State Value-Stream Map
Acme Reinsurance
Date: xxx
Author: Claudio Perrone
Pull arrow
C/T too long
Reduce batch sizes
Train on Kanban pulling
Improve system
validation
Clarify classes of
service
Setup Kanban board
Kaizen Customers Lean destroyed the myth that splitting work
in big batches improves the economies of scale.
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0.25h
2d
4h
1.5d
2h
1d
1h
2h
1h Value Adding Time (VAT)
Non VAT
Period calculated: from xx to yy (high season)
F: 200/month
Average: 10/day
Proc. Lead Time: 46.25h
Total Cycle Time: 8.25h
Proc. Efficiency 17.8%
MAX 5 jobs
Future State Value-Stream Map
Acme Reinsurance
Date: xxx
Author: Claudio Perrone
Pull arrow
Customers
MAX 4 jobs
MAX 2jobs
MAX 2jobs
C/T too long
Reduce batch sizes
Train on Kanban pulling
Improve system
validation
Clarify classes of
service
Setup Kanban board
… And provided many “tools” to obliterate the competition
I Integrated the kanban method to enable an evolutionary approach to change
Ordered Backlog
Development Pre- Testing CD
Ready 6 3
Rq. Fixed
Done
Expedite 1
Integration
Pre- Tested
Smoke Test Done
Integration Team (Complex configuration)
KANBAN enabled the introduction of agility in otherwise unsuitable contexts
DOD DOD DOD DOR
But it was only the beginning
A war was tragically consuming behind corporate walls
Firefighting, arbritrary targets and autocratic leadership were undermining the opportunity for a real transformation
… You are a “chicken”. You shouldn’t even talk
The traditional agile approach towards management wasn’t going to be effective
Does this look familiar?
Do you remember how the story ends?
---W. Edwards Deming
“ 95% of variation in worker’s performance is governed by the systems
W. Edwards deming believed that…
---W. Edwards Deming “ We should work on our processes, not the outcome of our processes.
Perhaps…
--- Claudio Perrone “ Let’s design systems as if tomorrow
we were more stupid than today.
And I would add…
“At Toyota, improving and managing are one and the same”
Normal daily management
+ improvement
Traditional thinking:
Normal daily management
= Process improvement
Toyota’s thinking:
--- John Shook, Chairman & CEO, Lean Enterprise Institute
“ There are three kinds of leaders. Those who tell you what to do. Those who allow you to do what you want. And lean leaders who come down to the work and help you figure it out.
“you manage things, you lead people”
During my work with “a3 thinking”, a Toyota management process to systematically solve problems, improve and mentor…
I discovered that a3 thinking = Lean thinking, a vivid expression of the scientific method!
--- Eiji Toyoda
I want you to use your own heads. And I want you actively to train your people on how to think for themselves.
“ “The Lean revolution gave a purpose and method to management”
“Hence, I offer you my own definition”
“ (*) replace with “create customer value” or “achieve results”, if you prefer
Lean is a business strategy to make money* THROUGH the development of people
Using Lean and agile, I brought operational excellence to many clients, from large enterprises to fast-growing companies around Europe
But that old question still
remained unanswered…
… Until one day
3 Lean Startup
I entered a new world
--- Eric Ries
A startup is a human institution designed to create new products and services under conditions of extreme uncertainty.
“ ... A world that recognized the extraordinary challenges I once faced
It gave me a path to create a sustainable business around products that customers want
Pivot
Customer discovery
Customer validation
Customer creation
Company building
Customer development
Lean & Agile development
stop stop stop
Problem: Unknown solution: Unknown
hypothesis, experiments, insights
data, feedback, insights
PROBLEM/ SOLUTION
FIT
PRODUCT/ MARKET
FIT
SCALE
Build
Measure
Learn
(Build an experiment to test that hypothesis)
(Determine a quantitative or qualitative method to evaluate that hypothesis.)
(establish an hypothesis)
... A path characterized by frequent scientific experiments…
Build
Measure
Learn idea
Product data
(Turn ideas into product)
(How customers respond)
(whether to pivot or persevere)
(often a series of MVPs)
… To accelerate the rate of learning…
… And measure real progress towards success
Acquisition
Activation
retention
revenue
referral
How do users find you?
Do users have a great first experience?
Do users come back?
How do you make money?
Do user tell others?
Cohort analysis
( see Dave McClure “Pirate” metrics)
--- Henry Ford
It is not the employer who pays the wages. Employers only handle the money. It is the customer who pays the wages
“
Today
I document my business model(s) explicitly
www.leancanvas.com
Customer Segments
Early adopters
Unfair Advantage
Channels
Revenue streams Cost structure
Unique Value Proposition
Solution
Key metrics
Top 3 Problems
Existing alternatives
my vision is built on opinions untested assumptions
… which I systematically validate with experiments…
… that force me to “get out of the building”
SELECTED DESIGN/BUILD EXPERIMENTS
DONE
PARTIAL ROLLOUT
VALIDATE QUALITATIVELY
FULL ROLLOUT
VERIFY QUANTITATIVELY
BACKLOGS IN PROGRESS DONE VALIDATED LEARNING
DONE
Hypo- theses
Observations/ INSIGHTS
…and gather data to verify whether my actions affect customer behavior
I execute tasks To develop features That are part of experiments That I run to validate hypotheses That I formulate thanks to observations about the world that surrounds us.
specifically...
I Use A3 thinking to systematically focus on the “one metric that matters” in the current stage of my business
Target
Increase conversion rate from 8% to 10% by Mar 31st 2013
I validate my solutions, OFTEN with low fidelity MVPs
… and Activate enthusiastic earlyvangelists with a glimpse of a future that will come
What will Your future look like?
Final Thoughts
--- Me (1967 - )
Create the conditions to inevitably converge to it.
Don’t dream of success. “
--- Chinese proverb
Talk does not cook rice “ [email protected] www.agilesensei.com
www.twi6er.com/agilesensei www.a3thinker.com
Claudio Perrone
[email protected] www.agilesensei.com
www.twi6er.com/agilesensei www.a3thinker.com
Thank You!
