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@agilesensei
agilesensei.com
a3thinker.com

nd
yo
Be ue
al
V
ms
ea
tr
S

on

ti
n ac
ni
utio
ol
l ev
ta
imen
r
Expe
written, illustrated
and performed by

Claudio Perrone
I’ve seen things most people wouldn’t
believe…
Like the rise of A Learning organization,
fueled by the enlightened self-interest of
ITS people
I saw how Curiosity and courage can
generate endless options
... And what it means to develop, and honor
people for their ideas & contribution.
All those… moments... will be lost in time
like tears...
in... rain
% of organizations

Today, Many of us face a different world…

effectiveness
(*) Courtesy:
Steve McConnell – After the Gold Rush
& Bob Marshall (“Marshall Model of Organizational Effectiveness” www.fallingblossoms.com)
It’s a world where Invention and
innovation are replaced by organizational
conformity…
… Knowledge development IS annihilated
by bureaucracy, fire-fighting, and
command & control
Companies go through many reorganizations,
only to stay the same

Organization chart

Blame flow

God

Victims
Rule makers
Controllers
Enforcers
Losers
The traditional agile approach towards
management Hasn’t been particularly
effective
… You are a “chicken”. You
shouldn’t even talk
Arguably, organizations can’t be “agile” if
only the development teams are doing Agile

Typical “Agile” Enterprise

SMs
It’s a war we
can’t possibly
win…
Unless…
1

BEYOND VALUE
STREAMS
“

All we are doing is looking at the
timeline from the moment the
customer gives us an order to the
point we can collect the cash.
And we are reducing that timeline by
removing the non-value-added
wastes.
-­‐-­‐-­‐	
  TaiichiOhno,	
  Founder	
  of	
  TPS	
  
Customers
Lean destroyed the myth that splitting work
Kaizen
Current State Value-Stream Map
in big batches improves the economies xx to yy (high season)
Period calculated: from of
Acme Reinsurance
Push arrow
F: 200/month
scale.
Date: xxx
inbox

Author: Claudio Perrone

Average: 10/day

Pull arrow
Proc. Lead Time: 71.75h
Non VAT

3d

Value Adding Time (VAT)

0.25h

2d

2.5d
5h

2h
1h

1h

Calculate
premium

2h

Submit
quote

Proc. Efficiency 12.9%

Train on
Kanban
pulling
Reinsurance placement

Request for
reinsurance

Register
20jobs

Clean &
analyze
data

FIFO

Reduce
batch
sizes

10jobs
$ value

Calculate
risk

2jobs
due date

Clarify
classes of
service

C/T too
long
Setup
Kanban
board

5jobs

Improve
system
validation

Total Cycle Time: 9.25h
… And provided many “tools” to obliterate
Customers
the competition
Future State Value-Stream Map
Period calculated: from xx to yy (high season)
Acme Reinsurance
Date: xxx

F: 200/month

Pull arrow

Author: Claudio Perrone

Average: 10/day

Proc. Lead Time: 46.25h
Non VAT

2d

Value Adding Time (VAT)

0.25h

1d

1.5d
4h

2h
1h

2h

1h

Calculate
premium

Submit
quote

Proc. Efficiency 17.8%

Train on
Kanban
pulling
Reinsurance placement

Request for
reinsurance

Register
MAX
5 jobs

Reduce
batch
sizes

Clean &
analyze
data

MAX
4 jobs

Calculate
risk

MAX
2jobs

Clarify
classes of
service

C/T too
long
Setup
Kanban
board

MAX
2jobs

Improve
system
validation

Total Cycle Time: 8.25h
“but that’s only part of the story…”
Why do you allow
your competitors to
copy all your tools?
What they need to see…
is not visible
What the
hell is He
talking
about?
Does this look
familiar?
Beyond Value Streams: Experimental Evolution in Action
Do you
remember
how the
story ends?
W. Edwards deming believed that…

“

95% of variation in worker’s
performance is governed by the
systems

---W. Edwards Deming
…Which maybe explains why the purpose
of the Lean systems society is to…

“Improve the world
by improving its
systems.”
Lean Systems Society

“Excellence in
Managing Complexity”

http://leansystemssociety.org/
Perhaps…

“

We should work on our processes, not
the outcome of our processes.
---W. Edwards Deming
“At Toyota, improving and managing are one
and the same”

Traditional thinking:

Normal daily management

+
improvement

Toyota’s thinking:

Normal daily management

=
Process improvement
“

Some people question targets.
Question arbitrary targets instead.
"How are we going to change our
systems to achieve it?”
That’s an excellent question.
-- Claudio Perrone
In Lean, Managers have a purpose...

Value Stream
…and (at least) a method.
I believe

“

Lean is a business strategy
to make money*
THROUGH
the development of people

(*) replace with “create customer value” or “reach
results”, if you prefer
So, maybe...

“

It’s not what you do but rather what
you learn by doing it that matters.
-- Claudio Perrone
“learning to see” involves bringing to the
surface what we learn
Value Stream

Learning
Stream(s)
An A3 report, for example, “surfaces” a learning
stream around a problem
A set of kaizen memos can represent
another Learning stream…

Kaizen memo:

Kaizen Memos

Before improvement:

We didn’t trace the small,
continuous improvements
to our work

Action taken:

Created “Kaizen memos” to
post on an “implemented
ideas” board

Effect: Team members trace and celebrate every

implemented idea, even the smallest!

Submitted by: Claudio Perrone

Date:
…Which can also be “SURFACED” on a kaizen
board
What other
Learning streams
can we seek to
surface?
How about stories?
How about change efforts?
More specifically…

How do you introduce
and surface change in
your organization?
2

EVOLVE
EXPERIMENTALLY

(A Lean Change story)
“Once upon a time, in a ‘fortune 50’ land,
A prince lived in a much troubled castle”
“after reading a great book, he thought”

Scrum is
AWESOME!
Fascinated by the benefits that a mature
agile organization can bring…
Visibility

Business	
  Value

Agile	
  Development

Adaptability

Risk

Traditional	
  Development
… he said:

I want you to turn
33+ teams using scrum.
Do it. Now.
Scrum may be a great solution, but…

…What’s the
problem?
I went to the “gemba”, the place were the
value is actually created. After all…

“

... A desk is a dangerous place from
which to view the world.
--- John le Carre
After some fact finding, I shared my
observations and insights…

Insights

Lean Change Cycle

Review

Options

Introduce

MVC
Prepare
Copies of my preliminary A3 were lying
on the table…

http://a3thinker.com/deck
after 1½ years of waterfall Development,
The company was experiencing a seemingly
endless integration hell
many People where blaming each other
for what was happening
What could we do?

Insights

Lean Change Cycle

Review

Options

Introduce

MVC
Prepare
The ship was sinking fast…
So, “Do nothing” was not an option
with that urgency,
in that context,
And with that complexity…

…scrum was not
a viable option
In the end, we agreed to:
- aim at a pre-release for a major customer
- focus on flow optimization
change was certainly going to be
disruptive (and not so “minimal”)

Insights

Lean Change Cycle

Review

Options

Introduce

MVC
Prepare
…But desperate times called for
desperate measures

Insights

Lean Change Cycle

Review

Options

Introduce

MVC
Prepare
“we articulated our Change strategy”

Urgency

Target State
Stable prerelease
deployed to
Major Client
by xx

If we don’t
release soon,
the ship will
sink!

Communication

Vision

Cadenced
meetups

Pre-Release to
Major Client by
Focus on JIT
fixes

Cross-funct.
teams
Kanban

Committments
…

R&D Teams

Testing Dep

Success
Criteria

Actions

Change
Participants

Mgmt

Released by xx
QA ok Major client
happy

Review
MMFs

Wins
morale

https://leanpub.com/leanchangemethod

Baseline for
performance
Keep job

Keep Client
we also negotiated and challenged certain
(self-serving) policies
We introduced lean techniques very
pragmatically

Insights

Lean Change Cycle

Review

Options

Introduce

MVC
Prepare
We moved hundreds of people in just 3
days, to reduce many functional barriers

Programming
Team

Testing
Team

Programming
Team
Documentation
Team

Cross-functional
Team
Functional Team

Cross-functional
Team
teams adopted a kanban bord, each fine-tuned
according to their specific workflow
Development

Ordered
Backlog

3

6
Rq.
Fixed

DOD

DOR
Expedite

1

PreTesting

CD
Ready

Smoke Test

PreTested

Done

DOD

Integration

Done

Integration Team
(Complex configuration)
DOD
We reviewed and validated our progress
and assumptions regularly

Insights

Lean Change Cycle

Review

Options

Introduce

MVC
Prepare
focus on flow optimization, Shared sense of
Urgency and executive sponsorship enabled us to
deliver fast, against all odds
What would your
first lean change
implementation look
like?
Start small! These days, When I first
engage with any team…
…I often start with a retrospective to
collect initial insights
(and to obtain permission to help)…
I USE THAT DATA TO feed a change board And
SYSTEMATICALLY DEFINE AND negotiate
explicit change experiments

Observations & insights
Options
Possible Experiments
This Week
Week + 1
Week + 2
Week + 3
Archive
That was a (powerful) learning stream!
BUT…
HOW DO WE KNOW THAT
WE ARE actually
CREATING VALUE?
It’s hard. We accept that…

“… complexity and uncertainty
are natural to social systems and
knowledge work.”

http://leansystemssociety.org/
Are we doomed?

“

If you get good at delivering shit faster,
you just get a lot of shit.
--Jeff Patton
3

VALIDATED
LEARNING

(A lean startup story)
Some time ago, I decided to write a book
on A3 thinking
But I didn’t want to write a book that
nobody reads…
So, I Documented my initial assumptions on a
Lean canvas

Top 3
Problems

Existing
alternatives

Solution

Key metrics

Cost structure

Unique
Value
Proposition

Unfair
Advantage

Channels

Revenue streams

Customer
Segments

Early
adopters
… and then, I went “out of the building”, to
validate those assumptions
I shaped my thinking around the the build/measure/
learn loop through an experiment board

Learn

idea

(whether to pivot
or persevere)

Build
(Turn ideas into product)

(often a series of
MVPs)

data

Product
Measure
(How customers respond)
…Which, today, consists of observations/
insights, open questions, and ideas…
targets, analysis and hypotheses…
Experiments (identify, define metric, build)
Validation (qualitative & quantitative)
…& knowledge base.
In other words…

“

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.
-- Claudio Perrone
My mindset shifted:
“From concept to cash”
to “From question to knowledge base”
Ironically
,
I never wrote that book
people needed something to help them
when and where it mattered most
So I tested an idea with a low fidelity MVP
… captured enthusiastic earlyvangelists with a
glimpse of what would come next…
And released a family of thinking tools…

www.a3thinker.com	
  
to change the world.
one problem at a time.

www.a3thinker.com/deck	
  
Final Thoughts
“

It’s not what you do but rather what
you learn by doing it that matters.

-- Claudio Perrone
“

It’s not what you do but rather what
you learn by doing it that matters.
But then...

-- Claudio Perrone
“

It’s not what you do but rather what
you learn by doing it that matters.
But then...
it’s not what you learn, but rather
what you do with it that matters.
-- Claudio Perrone
Thank You!

Claudio	
  Perrone	
  

claudio@agilesensei.com	
  
www.agilesensei.com	
  
www.a3thinker.com	
  
www.twi@er.com/agilesensei	
  
Beyond Value Streams: Experimental Evolution in Action

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Beyond Value Streams: Experimental Evolution in Action

  • 1. @agilesensei agilesensei.com a3thinker.com nd yo Be ue al V ms ea tr S on ti n ac ni utio ol l ev ta imen r Expe written, illustrated and performed by Claudio Perrone
  • 2. I’ve seen things most people wouldn’t believe…
  • 3. Like the rise of A Learning organization, fueled by the enlightened self-interest of ITS people
  • 4. I saw how Curiosity and courage can generate endless options
  • 5. ... And what it means to develop, and honor people for their ideas & contribution.
  • 6. All those… moments... will be lost in time like tears... in... rain
  • 7. % of organizations Today, Many of us face a different world… effectiveness (*) Courtesy: Steve McConnell – After the Gold Rush & Bob Marshall (“Marshall Model of Organizational Effectiveness” www.fallingblossoms.com)
  • 8. It’s a world where Invention and innovation are replaced by organizational conformity…
  • 9. … Knowledge development IS annihilated by bureaucracy, fire-fighting, and command & control
  • 10. Companies go through many reorganizations, only to stay the same Organization chart Blame flow God Victims Rule makers Controllers Enforcers Losers
  • 11. The traditional agile approach towards management Hasn’t been particularly effective … You are a “chicken”. You shouldn’t even talk
  • 12. Arguably, organizations can’t be “agile” if only the development teams are doing Agile Typical “Agile” Enterprise SMs
  • 13. It’s a war we can’t possibly win…
  • 16. “ All we are doing is looking at the timeline from the moment the customer gives us an order to the point we can collect the cash. And we are reducing that timeline by removing the non-value-added wastes. -­‐-­‐-­‐  TaiichiOhno,  Founder  of  TPS  
  • 17. Customers Lean destroyed the myth that splitting work Kaizen Current State Value-Stream Map in big batches improves the economies xx to yy (high season) Period calculated: from of Acme Reinsurance Push arrow F: 200/month scale. Date: xxx inbox Author: Claudio Perrone Average: 10/day Pull arrow Proc. Lead Time: 71.75h Non VAT 3d Value Adding Time (VAT) 0.25h 2d 2.5d 5h 2h 1h 1h Calculate premium 2h Submit quote Proc. Efficiency 12.9% Train on Kanban pulling Reinsurance placement Request for reinsurance Register 20jobs Clean & analyze data FIFO Reduce batch sizes 10jobs $ value Calculate risk 2jobs due date Clarify classes of service C/T too long Setup Kanban board 5jobs Improve system validation Total Cycle Time: 9.25h
  • 18. … And provided many “tools” to obliterate Customers the competition Future State Value-Stream Map Period calculated: from xx to yy (high season) Acme Reinsurance Date: xxx F: 200/month Pull arrow Author: Claudio Perrone Average: 10/day Proc. Lead Time: 46.25h Non VAT 2d Value Adding Time (VAT) 0.25h 1d 1.5d 4h 2h 1h 2h 1h Calculate premium Submit quote Proc. Efficiency 17.8% Train on Kanban pulling Reinsurance placement Request for reinsurance Register MAX 5 jobs Reduce batch sizes Clean & analyze data MAX 4 jobs Calculate risk MAX 2jobs Clarify classes of service C/T too long Setup Kanban board MAX 2jobs Improve system validation Total Cycle Time: 8.25h
  • 19. “but that’s only part of the story…”
  • 20. Why do you allow your competitors to copy all your tools?
  • 21. What they need to see… is not visible What the hell is He talking about?
  • 25. W. Edwards deming believed that… “ 95% of variation in worker’s performance is governed by the systems ---W. Edwards Deming
  • 26. …Which maybe explains why the purpose of the Lean systems society is to… “Improve the world by improving its systems.” Lean Systems Society “Excellence in Managing Complexity” http://leansystemssociety.org/
  • 27. Perhaps… “ We should work on our processes, not the outcome of our processes. ---W. Edwards Deming
  • 28. “At Toyota, improving and managing are one and the same” Traditional thinking: Normal daily management + improvement Toyota’s thinking: Normal daily management = Process improvement
  • 29. “ Some people question targets. Question arbitrary targets instead. "How are we going to change our systems to achieve it?” That’s an excellent question. -- Claudio Perrone
  • 30. In Lean, Managers have a purpose... Value Stream
  • 31. …and (at least) a method.
  • 32. I believe “ Lean is a business strategy to make money* THROUGH the development of people (*) replace with “create customer value” or “reach results”, if you prefer
  • 33. So, maybe... “ It’s not what you do but rather what you learn by doing it that matters. -- Claudio Perrone
  • 34. “learning to see” involves bringing to the surface what we learn Value Stream Learning Stream(s)
  • 35. An A3 report, for example, “surfaces” a learning stream around a problem
  • 36. A set of kaizen memos can represent another Learning stream… Kaizen memo: Kaizen Memos Before improvement: We didn’t trace the small, continuous improvements to our work Action taken: Created “Kaizen memos” to post on an “implemented ideas” board Effect: Team members trace and celebrate every implemented idea, even the smallest! Submitted by: Claudio Perrone Date:
  • 37. …Which can also be “SURFACED” on a kaizen board
  • 38. What other Learning streams can we seek to surface?
  • 40. How about change efforts?
  • 41. More specifically… How do you introduce and surface change in your organization?
  • 43. “Once upon a time, in a ‘fortune 50’ land, A prince lived in a much troubled castle”
  • 44. “after reading a great book, he thought” Scrum is AWESOME!
  • 45. Fascinated by the benefits that a mature agile organization can bring… Visibility Business  Value Agile  Development Adaptability Risk Traditional  Development
  • 46. … he said: I want you to turn 33+ teams using scrum. Do it. Now.
  • 47. Scrum may be a great solution, but… …What’s the problem?
  • 48. I went to the “gemba”, the place were the value is actually created. After all… “ ... A desk is a dangerous place from which to view the world. --- John le Carre
  • 49. After some fact finding, I shared my observations and insights… Insights Lean Change Cycle Review Options Introduce MVC Prepare
  • 50. Copies of my preliminary A3 were lying on the table… http://a3thinker.com/deck
  • 51. after 1½ years of waterfall Development, The company was experiencing a seemingly endless integration hell
  • 52. many People where blaming each other for what was happening
  • 53. What could we do? Insights Lean Change Cycle Review Options Introduce MVC Prepare
  • 54. The ship was sinking fast… So, “Do nothing” was not an option
  • 55. with that urgency, in that context, And with that complexity… …scrum was not a viable option
  • 56. In the end, we agreed to: - aim at a pre-release for a major customer - focus on flow optimization
  • 57. change was certainly going to be disruptive (and not so “minimal”) Insights Lean Change Cycle Review Options Introduce MVC Prepare
  • 58. …But desperate times called for desperate measures Insights Lean Change Cycle Review Options Introduce MVC Prepare
  • 59. “we articulated our Change strategy” Urgency Target State Stable prerelease deployed to Major Client by xx If we don’t release soon, the ship will sink! Communication Vision Cadenced meetups Pre-Release to Major Client by Focus on JIT fixes Cross-funct. teams Kanban Committments … R&D Teams Testing Dep Success Criteria Actions Change Participants Mgmt Released by xx QA ok Major client happy Review MMFs Wins morale https://leanpub.com/leanchangemethod Baseline for performance Keep job Keep Client
  • 60. we also negotiated and challenged certain (self-serving) policies
  • 61. We introduced lean techniques very pragmatically Insights Lean Change Cycle Review Options Introduce MVC Prepare
  • 62. We moved hundreds of people in just 3 days, to reduce many functional barriers Programming Team Testing Team Programming Team Documentation Team Cross-functional Team Functional Team Cross-functional Team
  • 63. teams adopted a kanban bord, each fine-tuned according to their specific workflow Development Ordered Backlog 3 6 Rq. Fixed DOD DOR Expedite 1 PreTesting CD Ready Smoke Test PreTested Done DOD Integration Done Integration Team (Complex configuration) DOD
  • 64. We reviewed and validated our progress and assumptions regularly Insights Lean Change Cycle Review Options Introduce MVC Prepare
  • 65. focus on flow optimization, Shared sense of Urgency and executive sponsorship enabled us to deliver fast, against all odds
  • 66. What would your first lean change implementation look like?
  • 67. Start small! These days, When I first engage with any team…
  • 68. …I often start with a retrospective to collect initial insights (and to obtain permission to help)…
  • 69. I USE THAT DATA TO feed a change board And SYSTEMATICALLY DEFINE AND negotiate explicit change experiments Observations & insights Options Possible Experiments This Week Week + 1 Week + 2 Week + 3 Archive
  • 70. That was a (powerful) learning stream!
  • 71. BUT… HOW DO WE KNOW THAT WE ARE actually CREATING VALUE?
  • 72. It’s hard. We accept that… “… complexity and uncertainty are natural to social systems and knowledge work.” http://leansystemssociety.org/
  • 73. Are we doomed? “ If you get good at delivering shit faster, you just get a lot of shit. --Jeff Patton
  • 75. Some time ago, I decided to write a book on A3 thinking
  • 76. But I didn’t want to write a book that nobody reads…
  • 77. So, I Documented my initial assumptions on a Lean canvas Top 3 Problems Existing alternatives Solution Key metrics Cost structure Unique Value Proposition Unfair Advantage Channels Revenue streams Customer Segments Early adopters
  • 78. … and then, I went “out of the building”, to validate those assumptions
  • 79. I shaped my thinking around the the build/measure/ learn loop through an experiment board Learn idea (whether to pivot or persevere) Build (Turn ideas into product) (often a series of MVPs) data Product Measure (How customers respond)
  • 80. …Which, today, consists of observations/ insights, open questions, and ideas…
  • 81. targets, analysis and hypotheses…
  • 83. Validation (qualitative & quantitative)
  • 85. In other words… “ 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. -- Claudio Perrone
  • 86. My mindset shifted: “From concept to cash” to “From question to knowledge base”
  • 88. people needed something to help them when and where it mattered most
  • 89. So I tested an idea with a low fidelity MVP
  • 90. … captured enthusiastic earlyvangelists with a glimpse of what would come next…
  • 91. And released a family of thinking tools… www.a3thinker.com  
  • 92. to change the world. one problem at a time. www.a3thinker.com/deck  
  • 94. “ It’s not what you do but rather what you learn by doing it that matters. -- Claudio Perrone
  • 95. “ It’s not what you do but rather what you learn by doing it that matters. But then... -- Claudio Perrone
  • 96. “ It’s not what you do but rather what you learn by doing it that matters. But then... it’s not what you learn, but rather what you do with it that matters. -- Claudio Perrone
  • 97. Thank You! Claudio  Perrone   claudio@agilesensei.com   www.agilesensei.com   www.a3thinker.com   www.twi@er.com/agilesensei