Lean Thinking

Tuesday, 12 June 2018 20:48

The Cost Trap

Published in Agile

Time to close out our series on common traps with a look at probably the most common trap organisations fall into. I don't think I have ever worked for an organisation that wasn't caught to some extent in this trap. What I'm talking about today is the cost trap. You get into this trap by having the wrong sort of conversations - conversations about cost. "How much will this cost?" That question has lead most organisations astray. Why is that? Surely how much it costs is an important question. And indeed it is. The problem occurs when that's the only question you ask. Cost is important, but there is something else you need in order to make a good decision. There is half the information missing. That other half is value. "What will I get in return?"

Let me put it this way, if I were to ask you "would you rather I took $10 from you or $50?" I suspect most of you would chose $10 (and for those who wouldn't, you are very generous, please leave your name in the comments below...). If, on the other hand, I asked "Would you rather I took $10 and gave you back $50 or took $50 and gave you back $500?" I'm guessing most of you would pick the $50. Just focusing on the cost would drastically lower your return. But this is what most organisations do. To be fair, most organisations do consider value, particularly at the top levels of the organisation. Every idea starts with a cost/value decision. ROI is a key consideration. But as work moves down the organisation, the discussion starts to become less and less about value and more and more about cost. The point at which the organisation falls into the cost trap is the point where the value part of the discussion vanishes and the discussion becomes entirely about cost. Often, this is where an idea becomes a project and is handed over for delivery.

Tuesday, 28 November 2017 21:40

The Agile Transformation. Myth Or Reality?

Published in Agile

We have all heard about organisations that have successfully made the transition to an agile way of working. Some of us may even know someone who knows someone who says they worked at one once. But much like sightings of the Loch Ness Monster, Bigfoot or the Tasmanian Tiger, most of these claims evaporate under even basic scrutiny. Now, I know there are agile organisations out there. Organisations that have been born in the agile age and have been built from the ground up with agile principles in mind. I'm not talking about those organisations.

I'm talking about the old, legacy organisations. The ones with decades of process and culture to remake. The ones we are always being told (mostly in press releases or flashy conference presentations) are transforming themselves into new, agile organisations. Shedding the baggage of the past and embracing the bright, agile future. But scratch the surface and how many have actually managed to transform themselves? "But transformation is hard", I hear you say. "It takes time and many organisations just haven't had time to complete the job. What you ask isn't fair". And indeed, transformation is hard so let's relax the criteria a bit - how many organisations have actually managed to establish even the start of a real agile culture?

Tuesday, 31 October 2017 23:08

The Limits of Management (and Umbrellas)

Published in Agile

When a team in an organisation decides to do something a bit different (like adopting agile), the rest of the organisation tends to push back and force the team to conform to the normal way of doing things. A team, isolated and on their own, can only resist that pressure for so long until they have to give in. It's like standing outside in a thunderstorm - sooner or later you will get so uncomfortable that you will have to retreat to shelter.

But what if you could take some shelter with you? Something like an umbrella perhaps? It's not exactly comfortable standing under an umbrella in a raging storm but it will let you withstand the elements for longer than you could if you didn't have one. This is what we do in organisations when we start to engage leaders. When the team's leader gets engaged with the change, they can provide some shelter to the team. They become the team's umbrella. But as anyone who has stood outside with an umbrella in a storm will know, the protection they provide is limited at best. We need something better.

Tuesday, 08 August 2017 11:23

Attractors

Published in Agile

Organisational change is hard. I don't think there are many people who will disagree with that statement. But let's look a little closer at it. What about organisational change is the hard bit? It's not getting change started. Generally organisations know they need to change constantly and are quite accepting of the fact that change happens. They have change teams and change champions and change consultants to help their many change programs succeed. But often, at the end of the day, despite all the effort that goes into these change programs, nothing actually changes. Once the dust settles, the organisation is left essentially the way it was.

It doesn't matter what kind of change it is, agile adoption, cultural change, new processes. They all tend to end up with the organisation reverting over time to its old behaviour. Why? Is it just the universe trying to be awful to people who do change for a living? No. The reason change doesn't stick comes from the study of the behaviour of complex adaptive systems. In particular from something called attractors.

Tuesday, 25 July 2017 11:17

Open Financial Figures

Published in Agile

It's bonus time here at work right now so everyone (well, all the permies anyway) is excited about finances all of a sudden. The corridors are abuzz with talk about last year's performance, our EBIT, EBITDA, ROI, earnings, operating costs and of course the most important question of all - "what does all this mean for my bonus this year?". Anticipation builds as finance gets ready to release the all-important set of yearly numbers.

The company's financial results are really important and everyone should engage with them. After all, that's really why we are all here (even us contractors) - to make the company successful. Engaging with the financials is great. The problem here is that people engage for about a week around bonus time, then once that's done and dusted, they go back to focusing on their own individual KPIs and ignore the financials for the rest of the year. That's not what we want. We want people to focus on the financials all the time. So how do we do that?

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