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

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

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

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scrum- fall water-

lifecycle of innovations

technology adoption lifecycle Geoffrey Moore, Crossing the Chasm

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

Intuit horizons and metrics

explore vs exploit

product/market fit MOST IDEAS FAIL!

optionality Nassim Taleb, Antifragile

build-measure-learn

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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”

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.

iron triangle

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

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

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

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

@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

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

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

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

deployment pipeline

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.

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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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

target conditions Gruver & Mouser, Leading the Transformation

impact mapping Gojko Adzic, Impact Mapping

@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].

experiments Different types of user research, courtesy of Janice Fraser

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

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

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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