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Lean Enterprise

Jez Humble
December 11, 2014

Lean Enterprise

Large organizations often struggle to leverage software to create innovative products. This is due to a number of organizational factors, including culture, governance and financial management, and the application of portfolio and program management strategies that do not take advantage of the unique characteristics of software. This talk discusses how to take a lean approach to developing new products and running large scale programs of work, and how to grow a culture that enables organizations to turn software into a competitive advantage.

Video here: https://yow.eventer.com/yow-2014-1222/the-lean-enterprise-by-jez-humble-1696

Jez Humble

December 11, 2014

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  1. lean “precisely specify value by specific product, identify the value

    stream for each product, make value flow without interruptions, let the customer pull value from the producer, and pursue perfection” Womack and Jones, Lean Thinking
  2. enterprise agility “The main obstacles to improved business responsiveness are

    slow decision-making, conflicting departmental goals and priorities, risk- averse cultures and silo-based information.” Economist Intelligence Unit: “Organisational agility: How business can survive and thrive in turbulent times”
  3. The Alignment Trap “Avoiding the Alignment Trap in IT,“ David

    Shpilberg, Steve Berez, Rudy Puryear and Sachin Shah MIT Sloan Management Review Magazine, Fall 2007.
  4. IT as a competitive advantage “Firms with high-performing IT organizations

    were twice as likely to exceed their profitability, market share and productivity goals.” http://bit.ly/2014-devops-report
  5. time to restore service lead time for changes release frequency

    change fail rate it performance http://bit.ly/2014-devops-report
  6. high trust culture how organizations process information Westrum, “A Typology

    of Organizational Cultures” | http://bmj.co/1BRGh5q
  7. @jezhumble changing culture http://www.thisamericanlife.org/radio-archives/episode/403/nummi http://sloanreview.mit.edu/article/how-to-change-a-culture-lessons-from-nummi/ Schein, The Corporate Culture Survival

    Guide “What changed the culture was giving employees the means by which they could successfully do their jobs. It was communicating clearly to employees what their jobs were and providing the training and tools to enable them to perform those jobs successfully.” —John Shook
  8. TOYODA AUTOMATIC LOOM TYPE G 24 “Since the loom stopped

    when a problem arose, no defective products were produced. This meant that a single operator could be put in charge of numerous looms, resulting in a tremendous improvement in productivity.” http://www.toyota-global.com/company/vision_philosophy/toyota_production_system/jidoka.html
  9. hp laserjet firmware team ~5% - innovation 15% - manual

    testing 25% - current product support 25% - porting code 20% - detailed planning 10% - code integration 2008
  10. hp laserjet firmware team ~5% - innovation 15% - manual

    testing 25% - current product support 25% - porting code 20% - detailed planning 10% - code integration 2008 ~40% - innovation 5% - most testing automated 10% - one branch cpe 15% - one main branch 5% - agile planning 2% - continuous integration 2011 The remaining 23% on RHS is spent on managing automated tests.
  11. the economics 2008 to 2011 • overall development costs reduced

    by ~40% • programs under development increased by ~140% • development costs per program down 78% • resources now driving innovation increased by 8X A Practical Approach to Large-Scale Agile Development - Gruver, Young, Fulghum
  12. What obstacles are preventing you from reaching it? which one

    are you addressing now? What is the target condition? (The challenge) What is the actual condition now? When can we go and see what we learned from taking that step? What is your next step? (Start of PDCA cycle) improvement kata
  13. @jezhumble Jeff Gothelf “Better product definition with Lean UX and

    Design” http://bit.ly/TylT6A hypothesis-driven delivery We believe that [building this feature] [for these people] will achieve [this outcome]. We will know we are successful when we see [this signal from the market].
  14. do less “Evaluating well-designed and executed experiments that were designed

    to improve a key metric, only about 1/3 were successful at improving the key metric!” “Online Experimentation at Microsoft”, Kohavi et al http://stanford.io/130uW6X
  15. innovation culture “I think building this culture is the key

    to innovation. Creativity must flow from everywhere. Whether you are a summer intern or the CTO, any good idea must be able to seek an objective test, preferably a test that exposes the idea to real customers. Everyone must be able to experiment, learn, and iterate.” http://glinden.blogspot.com/2006/04/early-amazon-shopping-cart.html
  16. thank you! © 2016-7 DevOps Research and Assessment LLC https://devops-research.com/

    To receive the following: • 30% off my new video course: creating high performance organizations • A copy of this presentation • A 100 page excerpt from Lean Enterprise • An excerpt from the DevOps Handbook • A 20m preview of my Continuous Delivery video workshop • Discount code for CD video + interviews with Eric Ries & more Just pick up your phone and send an email To: [email protected] Subject: devops