Lean Thinking

30 October 2018

Measure What Matters

Written by Published in Agile

So far we have looked at two of the four key elements for real business agility - distributed decision making and execution efficiency. It's time now to look at the third element - measuring what matters. Organisations tend to collect a lot of data They measure a lot of stuff. The problem with many of those measurements is that they are often data that is easy to collect rather than data that is important. 

What's the problem with that? Data is data. If it's easy to measure, why not measure it? Having more data has to be better than less. Not necessarily. There is something important about making a measurement that makes it vitally important to measure the right things, rather than just measuring stuff just because you can. The important thing about making a measurement is that measuring drives behaviour. As soon as you measure something, people will naturally try to optimise that measurement and if you're measuring the wrong things, that can drive some very bad behaviour.

16 October 2018

Execution Efficiency

Written by Published in Agile

It's time to continue our look at the 4 key changes needed to become a truly agile organisation. This time we will look at the second key change - execution efficiency. Now most organisations will claim to be efficient already. They make very efficient use of their resources - everything is scheduled to achieve 100% resource loading at all times and costs are kept to a minimum. Things are produced with the minimum number of people and at the minimum cost. What could be more efficient that that?

From a pure, cost efficient sense, they are right, so I'm going to carefully define what I mean by efficiency here. It's not cost efficiency. What I'm talking about is how efficiently the organisation can turn ideas into value. How long does it take, and how much does it cost to take an idea and turn it into a real product or service that generates business value? Isn't that the same as resource efficiency? No, it isn't.

Written by Published in Agile

Imagine you are in a car travelling down the motorway. You are trying to keep to the speed limit (110km/h here in Australia). How good are you at doing that? Do you, like me (and most of the population) just follow the car in front with an occasional glance at the speedometer? A few hasty speed corrections when that occasional glance tells you that the car in front was doing 130 not 100? Now imagine that there is a police car right behind you. Does your strategy change? Mine certainly does. Your eyes barely leave the speedometer. You maintain absolute, tight control over the car's speed.

There are downsides to this approach though. While your eyes are firmly fixed on the speedo (that's Australian for speedometer BTW) they aren't firmly fixed on the road. While you are deeply focused on the operational details of driving the car (controlling its speed) you have lost sight of something very important - the road ahead. You may be sitting right on the speed limit but you have just driven past your exit. Or worse, you may have missed a sign telling you that the speed limit had changed and now the flashing lights are in your rear view mirror and you are being pulled over for speeding. Precisely the thing you were trying to avoid.

18 September 2018

Doing vs Being

Written by Published in Agile

Let me get this out of the way first - Agile is not the point. I see a lot of organisations wanting to "do agile". My question is always "Why?" Why do they want to do agile? Often I find that there is no why. They want to do agile because doing agile is what you do these days, or doing agile is what our competitors do. Doing agile is seen as some sort of magic formula for success. Do these things and good things will happen. No one is quite sure what good things they will be, people talk vaguely about efficiency and faster/better/cheaper. But that doesn't really matter, whatever happens, it will be good.

All these efforts will fail. The organisation will end up doing a bunch of agile things - standups, boards, retros and so on, but the end result will be - nothing. No change in any real measures of organisational success. No improvements in ROI, no improvements in time to market. Nothing. Why? Because doing agile is not the point. Agility is a way to deliver business outcomes. Business outcomes are the point. Not doing agile. The outcome organisations are really looking for is to become agile. Becoming agile means they can respond quickly to changing markets, deliver what their customers need before their competitors do and so on. Becoming agile as an organisation is not the same as doing agile practices. Yes, the practices are important but they aren't the full picture. If all you do are the practices, you will never become agile. As a mathematician would say, they are a necessary condition but not a sufficient condition.

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