Say NO to local optimization and double your teams' throughput

Slide 1

Slide 1 text

Slide 2

Slide 2 text

About me • Scrum Professional, Agile Coach, Consultant • Helping companies with • Quality engineering practices • Organizational performance • Innovation • Wells Fargo, Optum, US Bank, Pearson • Founder of the Negotiation Practice Community • Certified Crucial Conversations Trainer • Certified Scrum Foundation Educator COPYRIGHT © 2022 VLADIMIR BUSHIN | BUSHIN CONSULTING, LLC | ALL RIGHTS RESERVED

Slide 3

Slide 3 text

Agenda: • What’s in it for you? • Unpacking the dangers of local optimization • See how it can be solved • Q&A, Discussion, Sharing COPYRIGHT © 2022 VLADIMIR BUSHIN | BUSHIN CONSULTING, LLC | ALL RIGHTS RESERVED

Slide 4

Slide 4 text

A Paradox of Local Optimization • … people presume non-bottlenecks as equal to non-important. This is a huge mistake! …. Through the dependencies the change in non-constraint may impact the bottleneck to the extent that the effectiveness will go down to basically zero. Non-constraints are very important. • The prevailing notion is that More is Better. …This is correct only for the bottlenecks. For the non-bottlenecks there’s a threshold. Until this threshold - More is Better. But when you cross this threshold the More becomes Worse, not Better. This threshold is defined by the interdependencies with the bottlenecks. Therefore, it’s impossible to find this threshold when you look at non- bottlenecks in isolation. • For the vast majority of the system (non-bottlenecks) the Local Optima is not equal to the Global Optima. If you locally optimize for “More is Better” the overall result will be Worse! - Dr. Eliyahu Goldratt COPYRIGHT © 2022 VLADIMIR BUSHIN | BUSHIN CONSULTING, LLC | ALL RIGHTS RESERVED

Slide 5

Slide 5 text

Slide 6

Slide 6 text

Getting a buy-in from people in power Typical questions from VP level: • When you talk about increasing throughput, do you mean adding people? • When you talk about increasing the speed of delivery, do you mean that people must work longer hours? Typical managers’ and teams’ assumptions: • Assigning work to a specialist is the most efficient • To solve a business problem, we first need to understand which components are impacted and then split it between the teams specializing in those components • The Faster each team works – the Better (More = Better) COPYRIGHT © 2022 VLADIMIR BUSHIN | BUSHIN CONSULTING, LLC | ALL RIGHTS RESERVED

Slide 7

Slide 7 text

Slide 8

Slide 8 text

Slide 9

Slide 9 text

Slide 10

Slide 10 text

Slide 11

Slide 11 text

Slide 12

Slide 12 text

Where is the potential? When you discuss with your company you may hear: • Remove pressure from Yellow factory (avoid orange boxes) • Stop the Blue factory producing yellow boxes • Make Blue factory help Yellow factory work on the pile • Make Blue factory produce red boxes • Increase the throughput of the Yellow factory • Automate Yellow factory COPYRIGHT © 2022 VLADIMIR BUSHIN | BUSHIN CONSULTING, LLC | ALL RIGHTS RESERVED

Slide 13

Slide 13 text

Slide 14

Slide 14 text

Slide 15

Slide 15 text

Thank you! Q&A • Vladimir Bushin: • Ask me a question via email: vb@bushinconsulting.com • Read my blog at my website: https://bushinconsulting.com/ • Connect with me: https://www.linkedin.com/in/vladimirbushin/ • Join my meetup: https://www.meetup.com/influential-agile-leader/ • Text me or call me if you need help: 612-644-6065 • Negotiation Practice Community: • Join LinkedIn group: https://www.linkedin.com/groups/13873133/ • Visit website: http://www.negotiationpracticecommunity.com/ • Read blog: http://www.humblenegotiator.com/ COPYRIGHT © 2021 VLADIMIR BUSHIN | BUSHIN CONSULTING, LLC | ALL RIGHTS RESERVED