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ITSM conference

Lean In the Enterprise

24.8.17

Talk

Join this session to hear how Enterprises can do and be Lean while ensuring the right areas get the right attention and resources.

In this session I will :

• Touch on Lean Governance, how to change board , executive and managers mindsets in hierarchical organisations, in order to leverage the benefits of being a leaner organisation

• Share experiences I have had getting people to adapt to and adopt Lean and Agile as a way of being and working together better.

I look forward to meeting you all and discuss the challenges in doing this effectively!

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Agenda…Making Lean Enterprises Happen

• Why

• What

• How

• Who

A journey through some local lean transformations….

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Going agile to be Lean in the Enterprise

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Why we need to change the Enterprise ?

Companies are getting more and more external pressure ….

6… leading to sense urgency, loss of control, continuous change / disruption, anxiety

WW1France built hierarchical control with fixed management structure…

…that was costly, fixed direction with command delayXscale Alliance

So the German tanks swarmed around the wall…

….they were small, autonomous groups, and outcome focused

Britain used huge supply convoys to guard against lonesubmarines.

…With long line of command and control in the fleet Xscale Alliance

So the U-Boats swarmed its convoys at night, sinking 60% ofthem…

… they had local autonomy with leadership setting outcomesXscale Alliance

This model has in built delays… late 90’s onwards

Command Control

“Push”“Pull”

CEO

CEO

Customers

Customer facing staff

Customer facing staff

Leading teams

Support teams

Support teams

……..move to customer facing teams

The 7 + 1 Wastes

In order to reduce costs, you must aim to remove anything that doesn’t add value for the

customer.

TIM WOODS

• Transport

• Inventory

• Motion

• Waiting

• Overproduction

• Overprocessing

• Defects (scrap)

• Skills under-utilized

WASTEAll these do not add value (but usually represent 90% of operations time)

Reduce / Eliminate “waste”

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Typical Operational Wastes…

• Overload and Under load - Not managing the demand• Inappropriate prioritising - Urgent Vs Important• Interruptions • Start-ups & End-offs – e.g. of the day, changeovers• Mistakes – Lack of knowledge• Poor Communication• Sorting or searching for things• Waiting - For decisions or information, etc.• Duplication• Bottlenecks• Hand-offs • Failing to do something• Unnecessary movement – e.g. attendance at meetings• Inappropriate equipment• Defects

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• Reduce Risk in constantly changingenvironments

• ROI/cost on bigprojects

• Time it takes for validation bycustomers

• Manage increasing complexity• Customers expecting instant

response & multichannels

• Needs are changing -‐ boomers ageing, Millennial’sgrowing

• Make faster, effective decisions

Enterprise challenges in the “new” world

• Manage a more fluid workplace (contingent workers)

• Engage a new generation of employees

…and

• Lead with a new mindset to become capable of responding and adapting In dynamic environments

agility collective

What should lean Enterprise look like ?

Reinvent the organisation…towards “Teal”

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Fredric Laloux – Reinventing organisation

Red – Command & Control

Orange – Hierarchy

Amber – Innovation organisation

Green – Customer focused

Teal – Self managed and Holocractic

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Move towards Teal organisation …

…to ensure minimal delay and reduced “org” waste

Fredric Laloux –Reinventing organisation

Teal includes

• Equal Worth & Trust• Adapt from within • Self management• No Boss• No Pyramid structure• Transparency• Pull model• Etc.

Holocracy

Mindset – Schneider Cultural transformation model…

….move from company to people orientation

We need to be more agile across the organization…..

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A 4 pillar model encompassing

Change Management Vision: • The senior management conviction to drive the changes is one

of the most important aspects of the restructuring program. Sense of urgency, having a visionary view, inspire people for the restructuring activity

Organizational Structure: • Take hard look. Enterprise organizations built many layers fro

stability and control, which may not be efficient • Organizational silos and layers have to be maximised time

delay.Culture: • This has to be revamped – Culture follows structure• New structure will bring new culture. • New culture to enable people collaboration, communication

and , social networks – across the organisation not Vertically via silos

Process and Tools Optimization: • Employ automated processes to smooth transition for

members through optimized processes and systems.• Software factory (optimized tools) and continuous

improvement and delivery, both for product, teams and individuals

…….Like a lean start-up

Use change accelerator tools …

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Change Mindset first…

22….to a personal self learning growth

As agile mindset and processes enter management mainstream, organisations are learning how to draw on the full talents of those doing the work, involve customers at every stage of product development and so generate innovations that customers value.

-‐ Steve Denning, May 22 2017

“

| 40elabor8 Agile FundamentalsCourse

Agile / Lean 101- Mindset, Values, Principles then Frameworks…

• Agile ceremonies• Scrum & Kanban• Empirical sizing & estimation• Just In Time• Walking Story Maps• Teams & Families – EQ skills• Visualisation• Etc.

• Team First• Face 2 face• EQ skills• Visualisation• Self Leading

• People(s) first• Working product• Customer collaboration• Responding to change

• Satisfy customer• Frequent product delivery • Business and It collocated• Success – working product• Team continuous Improvement• Motivated People in teams• Focus on Technical excellence• K.I.S.S. – Simplify• Self organisation teams• Sustainable development

.. Throw away Frameworks teams move -> “Doing” to “Being”

At the heart of Agile …

Agile Team Mantra

Execute – Learn – Adapt - Improve

| 57elabor8 Agile FundamentalsCourse

My part!

My part!My part!

My part!

My part!

Our part!

Our part! Our part!

Our part!

Our part!

Self Leadership – Teaming to get work done

Waterfall Agile lean teams

…… move away from Me & Self Interest to We & Collaboration

Agility…our people are central to value creation

People

Leadership Direction

Manager

Peer

Peer

Peer

Peer

Employeeagility

Driver of change

Leadership Direction

Manager

Employee

Object of change

Employee responsiveness

agility collective

Move to a cross functional model such as Spotify…

28… to leverage the people pulling the work through

A leader’s job is to anticipate the future, to identify the trends that will affect their organization, and to guideand inspire people to move toward a betterreality.

Today more than ever, this job requires leaders to graspthe rapid rate of change in the business world and to build an organization that’s capable of continuallyadapting.

-‐ Nancy Duarte & Patti Sanchez, Duarte Inc. 17 Feb, 2016

judehorrill.com

Change to Leadership – from Management style..

• Self leadership

• Decentralised and Distributed

• Lean, Agile and Adaptable

• Facilitator and Enabler

• Co-‐creator and Ideator

• Collaborative and Interactive

• Ecosystemmindset orientated

New reality: Leadership

mindset is now about …

agility collective

Have a new Organisation Mindset

OLD

Organisation = organismmindset

• Network is inside thebuilding

• Bounded entity, complete unto itself

• Siloed, non-‐questioning

• Slow to adapt

• Stuck with old DNA whileworld outside changes, recombines, evolves

NEW

Organisation = ecosystemmindset

• Network is also outsidethe building

• Part of a wider ecosystem

• Interactive, always asking “is our network working?”

• Fast to adopt and adapt

• Able to grow, absorb, react and transform

agility collective

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How to achieve lean Enterprise ?

Move to a new way of working…

Traditional• Organizational control• Project based funding

• Push work onto teams• One way information flow• Company drivesmessages• Structured around channel• Siloes, Hierarchical• Measure of success =Acceptance

Lean / Agile / Networked

• Team pull work – tell us what they can do

• Team based funding

• Greater individual control• Networked information flow

• Individual creates own messages & choice• Collaborative and Connected

• Measure of success = Active support

agility collective

Incorporate Lean principles & framework….

The Lean House

Waste Reduction – 7+1 Waste

Standardisation – 5s

Kaizen is the practice of continuous improvement and feedback

Continuous Flow – Pull system and Kanban thinking

Long running teams – not project based work but team centric

The Lean Enterprise

But don’t forget to keep the workplace tidy..

A set of steps that creates an organised, clean, efficient, safe and VISUALworkplace.

SUSTAIN(Discipline)

Make 5S a habit inyour workplace

SHINE

(Cleanliness)

5-minutes cleanups5-minute checkups

STANDARDISE

Standardise on the bestway to do things.

Document & train

SORT

Sort = Get rid of clutterOnly have what is

needed in the workplace

SET

in Order

A place for everythingand able to

get to things easily.

IMPROVED

SAFETYMORE

RELIABLE

LOWER

COSTS

FEWER

ERRORS

HIGHER

AVAILABILITY

BETTER

MORALE

Implement with thoroughness &

discipline

Integrate continuous improvement ..

The Lean Enterprise – Humble, Molesky & O’Reilly

Long running, funded teams

Conventional projects take too long

and often miss the mark

Lean (Agile) methods link developers

and users to hit the mark quickly

… not project teams

All incorporated through such agile frameworks - scrum

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Sprint Planning Sprint Review

Sprint Retrospective

Product Grooming

“ShowCase”

From this…top heavy, slower hierarchical, push model…

@AgileHelen - Introduction usiness Agility

To this…Pull model, empowered teams…

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Do small experiments first …

…..Fail fast and learn, repeat

nbn – we had Project One that was successful ….

Lean Change

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Toyota Kata approach – hypothesis, test and repeat

Visualize progress for everyone…

.. For continuous communication and discussion

A single individual can have huge influence in a

network….

………You are the change catalyst

And remember the “butterfly” effect ….

…Be the leader who inspires others tojoin you on your business agility quest

agility collective

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Who …?

• ANZ..large financial organization• Nbn .. Major Telco infrastructure project• Vicinity..Major shopping center

organization• Global ITSM / ITL organization

ANZ – IT Change Program - Late 90’s aka “ANZ 2000”

One Team

• Project Management roll out

• Mindset change to being “one Team” at ANZ, from Board down

• Board first then rest of the organisation

• Gained the support

• Run example projects to demonstrate the benefits

• Rest of organisation follow

• Stretch targets introduced

• PM qualifications available to staff

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Adopted the bottom up approach…

Command Control

“Push”“Pull”

CEO

CEO

Customers

Customer facing staff

Customer facing staff

Leading teams

Support teams

Support teams

……..move to customer facing teams

nbn Agile Roll out in IT

Background

• Some 800-1000 IT people

• 80% contractors, multiple vendor teams

• 22 Portfolios, about 10 teams each = 220 teams

• Melbourne 6 locations, Sydney 4, and others across Australia

• Waterfall Projects - IBM SDF

Need

• Slow delivery business value to business

• Become more adaptable to change, challenges of other Telco's

• Move from infrastructure to product based development post 2020

• Project One – tested a lean and more agile way - successful

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Implementation Wave 2 – Agile over Waterfall

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For 3 months all teams

ran with

• Colocation

• Cross functional

team

• VMBs

• Stand-ups

• Retrospectives

But still

• waterfall,

• managed teams

• project based

budgets

• Fixed Deadlines

• IT Delivery teams

nbn - Portfolio “N” FY17 Q1

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Portfolio Level

Community of practices

• Testing• Iteration Leads• Architecture• Devs• BAs

Service Owner

Business Owner

Self leading / managing teams

…but we still have hierarchical functional management

PortfolioCoaches

Business Delivery Teams

View of multi team floor - VMBs

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View of multi team floor – VMB Close up

Vicinity – now a lean & agile organisation

What

• Change of Values and Principles from HR to Agile / Lean

• Setup first Kanban board and went lean

• Rest of departments followed –some 44

• IT came last

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How

• One area at a time

• Followed a simple 7 step process :– Leader Interview

– Introducing agile to the team

– Facilitate a Purpose session

– Run their first Retrospective

– Develop visual management tools

– Agree on the operating rhythm

– Coach / Review / Adjust

• 3 Waves of Agile

– Agile teams – purpose led, improved trust and collaboration

– Agile at scale- Lean culture- waste reduction

– Business Agility- Organic Growth with vision

Agile Eleven

Early observations

• Lack of TRUST in teams due to merger• COMMAND and CONTROL management approach• Everyone was working on the SHORT TERM

…or in other words…

THE SAME AS 95% OF WORKPLACES IN THE WORLD

Agile Eleven

The three waves of agile…

The three Waves of Agile by Charlie Rudd – Solutions IQ

Agile Eleven

Agile for business…

Visual Representation by Christiane Anderson of Eduardo Nofuentes session – 1st Conf 2016

4 Agile Practices• Standup• Kanban• Visualisation• Retrospectives

3 Waves of agile• Agile Teams• Agile program• Business agility

• Customer• Lean• Brave leadership

Mindset change• Servant leadership• Coaching• Vulnerability• Vision & values

… the ability to move quickly, fluently and easilyAgile Eleven

Global ITSM consultancy ..

Who

• A listed company

• 40 plus strong organisation

• IT IL / ITSM Arena

• External consultants

• Back office functions

Why

• Moving into the Digital Delivery arena

• Consultant in agile organisations – e.g. NbN

• Improve back office functions

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How

• Training & education in Lean / Agile

• Follow up mentoring & coaching

• Built own Kanban boards internally

• Mindset change

Client Kanban

board stood up

HR Kanban board – starter

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LinkedIn Post:

“Practice what you preach. Training in the Scrum methodology was a great start (massive thanks to

John Farrow) but recruitment is an ideal practice for embracing the Agile manifesto.

The framework and (exceptionally neat) handwriting has been provided by our own Simon Kaufmann

so now it's time to bring it into daily practice.”

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HR Kanban board – Version 2.0

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HR Kanban board – Version 2.0 - rules

Just introduced Time of Posting onto the

board this morning, starting to build in

more team accountability.

Innovation Hub

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Grads and Digital Team are starting to progress their PoCs and Product Delivery

from within our little Innovation Hub.

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Innovation Hub – Estimation Board

Questions…

John Farrow

Outcome Delivery | Education & Mentoring | Strategy | Facilitation

Business Agile | Lean6 Sigma | NLP Practitioner | HPT | Lean ChangeScaled Agile Practioner | Safe | Xscale | LeSS | Adapted Scale

M: 0409-855-171 | farrowj@bigpond.com |au.linkedin.com/in/johnfarrow1

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Summary

agile principles and

values

Scrum Process - “Ceremonies”

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Sprint Planning Sprint Review

Sprint Retrospective

6 Time-

boxes

Product Grooming

“ShowCase”

Overview of scrumhttps://www.youtube.com/watch?v=_BWbaZs1M_8https://www.youtube.com/watch?v=aP3TBpWWwJ8

Scrum broken down ( for these you need to setup a free, dummy account first)· https://agilevideos.com/videos/scrum-101-part-1-scrum-basics/· https://agilevideos.com/videos/scrum-101-part-2-the-scrum-process/· https://agilevideos.com/videos/scrum-101-part-3-scrum-values/· https://agilevideos.com/videos/scrum-101-part-4-scrum-terms-review/·Scrum and Kanban Differenceshttps://www.youtube.com/watch?v=rIaz-l1Kf8w

Agile introduction to estimationhttps://www.youtube.com/watch?v=sCCUEtjCpCshttps://www.youtube.com/watch?v=7nTxdl29ePY

Full Crash Course – 1.5 Hourshttps://www.youtube.com/watch?v=wNwfFStmtw8

Agile Training support material - Videos

All the slides used in this pack are available on the respective websites and / or have been presented in open forums.

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References

Reference Website Conatcts

Agility Collective www.theagilitycollective.com Jude HorrillJude@theagilitycollective.com

Agile Eleven www.theagileeleven.com Eduardo Nofuenteseduardo@theagileeleven.com

Lean Change www.leanchange.org Jason Littleleanchange.org/author/jasonlittle

Xscale – Scaled agile / lean approach

www.xscalealliance.org Peter Merel peter.merel@xscalealliance.org

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1. http://www.mckinsey.com/industries/financial-services/our-insights/ings-agile-transformation2. http://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/an-operating-model-for- company-wide-agile-development

3. https://www2.deloitte.com/us/en/pages/financial-services/articles/scaling-agile-at-financial-institutions- lessons-from-the-trenches.html

4. https://www.forbes.com/sites/jacobmorgan/2015/01/16/do-we-need-hierarchy/#271ffe7e1c5e

5. https://www.mindsetworks.com/science/

6. http://www.scaledagileframework.com/agile-release-train/

7. https://www.linkedin.com/pulse/you-working-teal-organization-chandan-lal-patary?trk=mp-reader-card

8. https://www.linkedin.com/pulse/do-you-have-growth-mindset-chandan-lal-patary?trk=mp-reader-card

9. https://www.linkedin.com/pulse/swarming-technique-organizational-transformation-chandan-lal- patary?trk=mp-reader-card

10. https://www.linkedin.com/pulse/transformation-silos-sustainable-chandan-lal-patary?trk=mp-reader-

card11. https://www.linkedin.com/pulse/how-my-uncles-improved-organizational-business-value- patary?trk=mp-reader-card

12. https://www.linkedin.com/pulse/lean-culture-kanban-agile-devops-chandan-lal-patary?trk=mp-reader- card

13. https://www.linkedin.com/pulse/organizational-silos-how-agile-coach-can-help-team-chandan- lal?trk=mp-reader-card

14. https://www.linkedin.com/pulse/mindset-agile-chandan-lal-patary-pmp-csm-cssgb?trk=mp-reader-card15. https://www.linkedin.com/pulse/continuous-delivery-mantra-survival-chandan-lal-patary-pmp-csm- cssgb?trk=mp-reader-card

16. https://www.linkedin.com/pulse/using-schneider-culture-model-successful-agile-patary-pmp-csm- cssgb?trk=mp-reader-card

17. https://labs.spotify.com/2014/03/27/spotify-engineering-culture-part-1/

18. https://labs.spotify.com/2014/09/20/spotify-engineering-culture-part-2/19. https://www.linkedin.com/pulse/agile-deployment-school-annual-day-program-applying-chandan- lal?trk=mp-reader-card

20. http://www.scaledagileframework.com/agile-release-train/

21. http://agilitrix.com/2011/03/how-to-make-your-culture-work/

Further reading