Lean Thinking

Published in Agile

Last post I put forward 7 principles that I think every agile methodology should have. In this post, I'll be explaining (hopefully) what each of those principles means and why I think it is important. To recap, the six principles for a succesful methodology are -

  • They are built around small, self-organising teams
  • The team has a clear vision of what they are doing and where they fit into the bigger picture
  • The team delivers a regular flow of value via a well defined backlog of work
  • There is a content authority responsible for making sure decisions are made quickly
  • There is a clear bidirectional service agreement between the team and the rest of the organisation
  • There is a fast feedback loop that allows the team and organisation to optimise both the process and the product.
  • The methodology is self-similar at scale.

So, let's start looking at these in more detail.

Published in Agile

As an agile coach I am always pushing for cultural change. That's what agile is really - it's not a delivery mechanism, it's a fundamental change in the culture of an organisation. What do we mean by organisational culture? There are many definitions but the one that I like is that culture is a shared understanding of values. It's the understanding everyone has of what the organisation thinks is important. Culture drives behaviour - people will seek to maximise what is considered important in the culture and will behave in ways that do that.

The problem of course is that, as anyone will tell you, cultural change is hard. CEOs are tasked with changing culture and spend years failing to do it. People say that the only way to change culture is to change all the people. Or that cultural change only happens when a generation of employees retire. I don't agree. Cultural change is really easy. You just need to let people know what the organisation values. "Hang on", I hear you say, "Just wait a minute. Organisations have been putting out statements for years about what they want in their new culture. People can often quote chapter and verse from the CEO's latest values statement. Millions are spent on flashy communications. And nothing changes."

Tuesday, 18 August 2015 11:41

Talk at the Agile@Scale Meetup

Published in Agile

Hi Folks. Something a bit different today. It's a video post. Specifically, the video of my talk at the Agile@Scale Meetup in Sydney a couple of weeks ago.

https://www.youtube.com/watch?v=5rC54siNInA will take you there (Sorry... can't embed the video).

The presentation I used can be found on Slideshare here, or on my Google Drive here.

And if you want to know more about the Agile@Scale meetup, you can find them here.

Published in Agile

Faster, Better, Cheaper. That's the way agile is usually sold. Faster delivery, with better quality and lower cost. That's the pitch I hear over and over from people trying to get organisations on board with agile. It's an attractive pitch too. Who wouldn't want something faster, better and cheaper? The only problem with the pitch is that it's not really true. Not initially anyway. Agility will eventually get an organisation delivering faster, better and cheaper but, at least initially, it will be slower and more expensive (it will usually be better quality though). It may well stay slower and more expensive for a long time if the organisation has to overcome a lot of legacy (not just code but culture and processes as well).

So when the organisation goes to measure its new agile initiative and finds that it's not getting what it was sold, questions get asked. And well they should. The first is usually "Why?", to which the standard answer is "cultural change is hard....", the next is usually "When?", to which the answer is usually a shrug and some more about how hard cultural change is. This is often the point where the senior leaders that were really keen on agile, suddenly stop being keen on agile and organisational support vanishes. Given the length of time it takes a big organisation to get to faster, better, cheaper with agile, we really do ourselves no favours by using that as our selling point. What we need is something we can have an immediate (or at least relatively quick) impact on, that is also going to have a positive impact on the business. Fortunately it exists - risk. Agility should be sold as a means of reducing risk.

Tuesday, 28 April 2015 18:24

Outcome Based Funding

Published in Lean

So last time I talked about large companies and some of the reasons why they make sub-optimal decisions. Not bad decisions, but ones that aren't as good as they could be. The main reason for sub-optimisation was centralisation of decision making and the main reason for centralisation was the need for control. In particular the control on spending money. With no central control of funding, anyone could spend a bunch of company money and the company would soon be broke.

If decentralised decisions are more optimal because the person making them has more information than someone further from the coal face, but centralisation is required for spend control, what are large companies to do? Are they doomed to make sub-optimal decisions forever? Fortunately, no. There are ways of maintaining centralised control of spend while allowing decentralised decision making about where to spend money. There are, in fact, many ways to do this and we will look at one of them now. I'm calling it outcome based funding; I'm sure the financial folks have a fancy, official name for it, but outcome based funding will do for now.

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