Lean Thinking

Written by Published in Lean

Everyone who has ever worked for a large company knows that they make really silly decisions. Completely illogical decisions. Decisions so monumentally ridiculous that you wonder how the company actually manages to survive as a going concern, let alone turn a profit. It's seemingly obvious to everyone in the organisation, except the senior executives who are making the decisions. Good projects aren't funded, bad ones are. Good teams or departments are restructured but poorly performing ones aren't. Opportunities are lost. How do they continue to make money with all these bad decisions? And why do smart executives continue to make them?

The answer of course is that big companies very seldom make truly bad decisions. What they make are a lot of very sub-optimal decisions. Decisions made are seldom illogical, there is a lot of reasoning that goes into them. Unfortunately, that logic and reasoning is based on very poor information. The decisions they make are good enough to stay in business and continue to make significant amounts of money. They just aren't the best decisions possible. The real question isn't "how can companies still make money while making poor decisions" but "how much more money could they make if they made better decisions". Looking at the reasons why companies make sub-optimal decisions can point us to ways to make better ones.

31 March 2015

Too Big To Fail

Written by Published in Lean

The project is huge. It's been running for years. It's late. It's getting later every day. No-one can remember why the project started in the first place. No one is sure why we are still pushing ahead, but the project refuses to die. Money is thrown at it. The project team becomes larger and larger. It becomes harder and harder to get any other projects funded because MegaProject is sucking up all the available money and people. The project has become Too Big To Fail.

We've all seen something like this at one point or another (preferably from a long way away) - a huge project, lumbering on year after year, never delivering anything but consuming every part of the organisation it touches. Everything is diverted into making sure this project doesn't fail. Those on the outside (and many on the inside) wonder why the decision isn't made to kill it off. The original business case has long since evaporated. The project will never deliver the benefits it was supposed to. Why doesn't management pull the pin? The answer is simple - the organisation has fallen prey to the sunk cost fallacy, also known as the gambler's fallacy.

Written by Published in Agile

I am working with a team that has a great VMB. It's the first thing people say when they walk past and see a stand-up in progress - "what a fantastic VMB" they say. And it is indeed fantastic. It represents the team's work really well. It's clear and easy to understand. It shows obstacles and what the team is doing to overcome them. It really assists the team in their stand-ups. It facilitates discussions between the team and its stakeholders.

The next question people invariably ask is -"can we set up our board like that?" Of course they can. The VMB design isn't proprietary to the team. Anyone can use it. So they do. Copies of this fantastic board are springing up everywhere, but pretty soon they come back and say "there's something wrong. Our stand-ups don't flow as well as yours and the board just doesn't work. Have we copied something wrong?" Yes they have. They have copied the wrong thing entirely. The thing they haven't realized is that my team's fantastic board, and the fantastic stand-ups and discussions it facilitates, has nothing at all to do with the layout of the board, and everything to do with the performance of the team.

Written by Published in Agile

The responsibility trap is a very easy one to fall into. The symptoms are easy to spot - it's 11pm, you are sitting in an empty office, buried in work up to your eyeballs. Everyone else went home hours ago. Weekends are a myth. You haven't seen your family for days. The agile principle of sustainable pace applies to everyone on the team... except you. How did it happen? The trap is a really easy one to stumble into because it's insidious. You can wander in without realising you are inside, you won't notice until you are deep inside and by then it's too late. Try to leave and the trap will snap shut around you. While anyone can fall into the trap, it's particularly easy for people in expert, leadership or coaching roles to get stuck in it.

The trap is really simple, it works like this - the team needs something done. You, as "the expert" in the area, take it on and do it. The next time it needs doing, you do it again. Now, everyone just expects you to do it. Then something else comes up and, as "the expert", you step up and do it. And so on, until you are buried in a pile of work. Your intentions were good - the team needed something done, they were busy, it was urgent, you did it. What's wrong with that?

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