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

Transcript

1. @jezhumble | #yow14 | 11 december 2014
   the lean enterprise
   

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2. 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
   

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3. enterprise
   a complex, adaptive system
   composed of people who share
   a common purpose
   

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5. scrum-
   fall
   water-
   

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6. lifecycle of innovations
   

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7. technology adoption lifecycle
   Geoffrey Moore, Crossing the Chasm
   

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8. three horizons
   Baghai, M., Coley, S. and White, D., The Alchemy of Growth
   

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9. Intuit horizons and metrics
   

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10. explore vs exploit
    

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11. product/market fit
    MOST IDEAS
    FAIL!
    

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12. optionality
    Nassim Taleb, Antifragile
    

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13. build-measure-learn
    

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15. 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”
    

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16. 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.
    

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17. iron triangle
    

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18. 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
    

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19. time to restore service
    lead time for changes
    release frequency
    change fail rate
    it performance
    http://bit.ly/2014-devops-report
    

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20. technical practices
    http://bit.ly/2016-devops-report
    

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21. high trust culture
    how organizations process information
    Westrum, “A Typology of Organizational Cultures” | http://bmj.co/1BRGh5q
    

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22. @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
    

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23. the production line
    http://www.flickr.com/photos/toyotauk/4711057997/
    

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24. 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
    

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

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26. deployment pipeline
    

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27. 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.
    

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28. 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
    

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30. 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
    

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31. target conditions
    Gruver & Mouser, Leading the Transformation
    

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32. impact mapping
    Gojko Adzic, Impact Mapping
    

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33. @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].
    

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34. experiments
    Different types of user research, courtesy of Janice Fraser
    

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35. 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
    

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36. Jon Jenkins, “Velocity Culture, The Unmet Challenge in Ops” 2011 | http://bit.ly/1vJo1Ya
    

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37. 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
    

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38. 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: jezhumble@sendyourslides.com
    Subject: devops
    

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