From Requirements to the Market A Lean journey Why is it so hard to start at the right place to correctly define value Partly because most producers want to make what they are already making and partly because many customers only know how to ask for some variant of what they are already ge ID: 771318
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From Requirements to the Market A Lean journey “Why is it so hard to start at the right place, to correctly define value? Partly because most producers want to make what they are already making and partly because many customers only know how to ask for some variant of what they are already getting.” ― James P. Womack, Lean Thinking: Banish Waste And Create Wealth In Your Corporation Copyright © 2016 Allegro Business Solutions LLC. All Rights Reserved
Allegro Business Solutions offers services in four key areas: Project/Program Management, Agile & Scrum techniques Lean 6 Sigma methods, and the IT Infrastructure Library (ITIL) . Our principal has years of successful experience with these tools and techniques that can be engaged to meet your needs whether on-site or virtual. We know that each solution has to be tailored to the company culture and team makeup so we focus on working with a variety of stakeholders as part of our processes.http://www.allegrobizsolutions.com/ Copyright © 2016 Allegro Business Solutions LLC. All Rights Reserved About Allegro Business Solutions 2
Mr. Metcalf has developed products and services for over 30 years from the most advances medical ultrasound equipment to a watch cell phone using various forms of product and service development processes and lifecycles. He has been part of fortune 500 companies as well as startups and has employed his entrepreneurial and customer focus to release many highly successful product and services .Jerry’s experience includes project/program management, strategic planning, portfolio management, Lean process improvement, advanced technology, SDLC expertise – Waterfall to Agile, building relationships, technical partner and alliance development, acquisitions, business and contract negotiations, licensing, product management and requirements management, legal acumen, managing though influence and getting things done. Jerry holds the following certificates: PMP, ACP, CSP, CSPO, CSM, SPC, LSS and ITIL v3.Introduction Copyright © 2015 Allegro Business Solutions LLC. All Rights Reserved
Simple answer: A Project that uses Agile Principles and PracticesBut what are those characteristics?Being able to measure ROI early and often in the projectTransparent to the organization – high visibility of project progress and issues Continuous involvement of stakeholders (customers) in throughout the projectThe business owner is empowered to make decisions to meet goalsAdaptive – able to change to meet needs and requirements as they present themselvesAlways looking for ways to reduce waste and target the minimum set of customer valueReduce waste of both the product and the process Copyright © 2016 Allegro Business Solutions LLC. All Rights Reserved What is an Agile Project?4
ScrumIteration based and is the most popularExtreme Programing – XPMost often used for its great Programming discipline Feature Driving Development (FDD)Lean WorkflowDynamic Systems Development Method (DSDM)Crystal Family of MethodsCrystal Clear, Crystal Yellow, Crystal Orange, … Copyright © 2016 Allegro Business Solutions LLC. All Rights Reserved Specific Agile Methods 5
Copyright © 2016 Allegro Business Solutions LLC. All Rights ReservedThe Iron Triangle – Cost, Time and Scope Relationship 6 Traditional Agile Scope - Fixed Cost Time Cost Time Fixed Scope - Dynamic Dynamic Waterfall – Modified Waterfall Agile
Lean ManufacturingHenry Ford starts manufacturing the Model-T in 1913It had interchangeable parts and a process flow – down side one model one colorOther Automobile manufacturers started making more models and colors That required changes in process that slowed down the flow and added slow machineryToyoda and Ohno analyzed the car making process and came up with the Toyota Production System in the 1930’s and in earnest after WWIILean in generalThoroughly described in the book The Machine That Changed the World (1990) by James P. Womack, Daniel Roos, and Daniel T. JonesLean Thinking(1996), James P. Womack and Daniel T. JonesCopyright © 2015 Allegro Business Solutions LLC. All Rights Reserved Introduction to Lean 7
Specify the value desired by the customerIdentify the value stream for each product providing that value and challenge all of the wasted steps (generally nine out of ten) currently necessary to provide itMake the product flow continuously through the remaining value-added steps Introduce pull between all steps where continuous flow is possibleManage toward perfection so that the number of steps and the amount of time and information needed to serve the customer continually fallsCopyright © 2015 Allegro Business Solutions LLC. All Rights Reserved Specifics of Lean thinking today 8From the Lean Enterprise Institute “As lean thinking continues to spread to every country in the world, leaders are also adapting the tools and principles beyond manufacturing, to logistics and distribution, services, retail, healthcare, construction, maintenance, and even government. Indeed, lean consciousness and methods are only beginning to take root among senior managers and leaders in all sectors today."
Mary and Tom Poppendieck have been the major proponent of Lean Software development Copyright © 2016 Allegro Business Solutions LLC. All Rights ReservedLean Software Development 9 Lean Software PrinciplesToyota Production System Principles Eliminate Waste Reduce Setup waste Embed Quality Quality at the source Learn First – Amply learning Small lot production Deliver Fast – Defer Decisions Pull production Improve Forever Equipment maintenance Respect People – Empower the team Employee involvement Think Systems – Optimize the Whole Supplier involvement Lean Software Development: An Agile Toolkit, Tom and Mary Poppendieck
Eliminate WasteThis becomes the list of 7 on the following slide which we will go into further detail Embed QualityAt evert opportunity add quality to your process from the backlog to demoLearn First One needs to learn as quickly as possible as part of successive elaboration Deliver Fast Get working software (product) in front of stakeholders as quickly as you canImprove Constantly Inspect and Adapt is a major tenant of Scrum and Agile developmentRespect PeopleThe team are the ones that know the work and know best how to organize to get the best throughput Think SystemsKeep the overall system in mind as you develop success increments of what will eventfully become your product Copyright © 2015 Allegro Business Solutions LLC. All Rights Reserved The 7 principles of Lean development 10
Copyright © 2016 Allegro Business Solutions LLC. All Rights ReservedLean Software Development – the Wastes 11 The Seven Software Dev WastesThe Seven Wastes – Taiichi OhnoExtra Features Overproduction Partially Done WorkWork in Process – WIP Relearning Overprocessing Handoffs Transportation Task Switching* Motion Delays Waiting Defects Defects Task Switching losses as much as 40% efficiency every time there is a switch - Meyer
Based on the 7 wastes in Lean the following are examined as not adding to valueCopyright © 2016 Allegro Business Solutions LLC. All Rights Reserved Delivering Value Assessment 12 Lean Waste DescriptionExtra Features Over specifying the customer needPartially done workWork that is waiting to move to the next step in the process Relearning The work is left for a while and has to be taken up again Handoffs One person starts the work and then another is switched in as a replacement Task switching Multitasking is not a good thing and studies have show a 20% to 60% loss in efficiency Delays Items not ready for the next step to proceed affecting throughput Defects The impact of Techdebt – issues not resolved at the time of development
Copyright © 2015 Allegro Business Solutions LLC. All Rights ReservedThe Elements of Scrum 13 https://www.scrumalliance.org/why-scrum
Copyright © 2015 Allegro Business Solutions LLC. All Rights ReservedThe Scrum Framework 14 Product Backlog Groomed, prioritized Features in story form Sprint Planning Meeting Review Product backlog Estimate Sprint backlog Commit to Sprint timebox Communicate Sprint Goals Sprint Backlog Stories estimated by team Task breakdown by team Daily Standup What was done yesterday? What will be done today? Impediments - Blockers? Business Ideas Epics and Features for scrum team Iteration Timebox 2 to 4 weeks Potentially Shippable Items Sprint Review Meeting Demo and Acceptance of Sprint stories Retrospective Inspect and Adapt
Copyright © 2015 Allegro Business Solutions LLC. All Rights ReservedLean – Agile/Scrum relationship 15 Lean Scrum Team Scrum Team Lean Principles Lean Principles - to reduce waste without frustrating customers Agile - to reduce cost to make changes that reduce time to market
Copyright © 2016 Allegro Business Solutions LLC. All Rights ReservedProcess Combination 16 Scrum - for the way we plan, organize and manage our workXP – for Development disciplineLean – for the overall way we think
In a 2006 study, the Standish Group found that in traditional waterfall software projects 64% of typical system features were rarely or never used Over production of features occurs often in traditional IT because stakeholders are only given one opportunity to present their system in a Big Bang fashion 64% Waste Copyright © 2015 Allegro Business Solutions LLC. All Rights Reserved Keep a keen eye on Business Value17
MMF(MMF) is the smallest piece of functionality that can be delivered that has value to both the organization delivering it and the people using it.MVP(MVP) is: "[the] version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort" — Eric Ries – Lean Startup(MVP) is: a product with just enough features to gather validated learning about the product and its continued development - Wikipedia Copyright © 2016 Allegro Business Solutions LLC. All Rights Reserved Backlog Grooming – Lean thinking18
Develop wireframesQuick mockups on what the team’s requirements understandingPersonasWho is the user and in what environment are they going to use the product?Activity Diagrams What is the flow of how this product is going to be used?Use CasesWhat are scenarios how to use this Product?All are methods for attaining requirements for the project. Copyright © 2016 Allegro Business Solutions LLC. All Rights Reserved Gaining Stakeholder feedback19
GroomingPoor grooming means that there is not enough info for the team to understand what is being requestedThere may not be info on technology, sequencing, Acceptance Criterion, etc.Estimation If there is poor grooming then how can the team estimate even relatively what work is required?How can we determine velocity of the team and when they can get to the items we so want down further in the backlog.Dependencies/RisksHere we run into a big problem for the teams. If we don’t know the details of the stories how can we determine if there are dependancies on other team, technology or risks? Copyright © 2016 Allegro Business Solutions LLC. All Rights Reserved Backlog grooming implications20
Copyright © 2016 Allegro Business Solutions LLC. All Rights ReservedMethod for determining an effective Story 21
Copyright © 2016 Allegro Business Solutions LLC. All Rights ReservedUser Stories and the Backlog 22 ROLE – is the user of the element GOAL – is what they want to accomplish BENEFIT – is the business value it provides Describes the value from a users perspective of the value of the element to be developed The backlog is a collection of Stories that are arranged in priority order by value Description – details of the story, technical, logistic, timing, etc. Acceptan ce Criteria” Give – initial condition When – stimulus Then – Final condition Rqmts Epic Feature Story Task
As a consumer, I want shopping cart functionality to easily purchase items online.As an executive, I want to generate a report to understand which departments need to improve their productivity.As a developer, I want to publish the current state of my application to an update set, so that I can deploy it to a production system .As a customer, I want to receive notifications when an incident is commented, so that I am updated on the status.As a change manager, I want to enable the assessment of risk for any given change by establishing a list of questions with multiple choice answers .Copyright © 2015 Allegro Business Solutions LLC. All Rights Reserved User Story Examples 23
First embrace that new requirements will be coming in as we progress through the project/programReview the business value of each new Feature or Story to ensure the highest business valueEnsure that we are not over-specifying or adding extra features that add to wasted time and effort for which the customer or marketplace in not willing to pay Groom the backlog on a cadence so that new requirements can be added and the backlog order reprioritizedCopyright © 2015 Allegro Business Solutions LLC. All Rights ReservedGiven that we have Emerging Requirements what do we do? 24
Develop a single priority list which has the order of importance visible in the rankingUsing this method provided a means for adding, subtracting or changing order as new information is provided It clearly shows the relative priority of one element to anotherCopyright © 2016 Allegro Business Solutions LLC. All Rights ReservedRelative Priority to achieve a singularity 25
Perform a risk analysis on the backlog to determine items that need to be learned early in the development cycleMove the most risky element up in priorityReview the backlog to see what technology items must be completed before business itemsBacklogs can be adjusted by ROI or Risk calculations Copyright © 2016 Allegro Business Solutions LLC. All Rights Reserved Risk/Technology adjusting a Backlog 26
Ziv’s Uncertainty PrincipleUncertainty is inherent and inevitable in (Software) development processes and productsHumphrey’s Requirements Uncertainty Principle For a new (Software) system the requirements will not be completely known until the users have used itWegner’s LemmaIt is not possible to complete specify an interactive systemFilling the Product Backlog is an ongoing process based on feedback Copyright © 2015 Allegro Business Solutions LLC. All Rights Reserved Creating the Product Backlog and Uncertainty27
Copyright © 2015 Allegro Business Solutions LLC. All Rights ReservedBuilding a backlog 28 The Backlog is made up of a hierarchy of Epics → Features → StoriesDecompose an Epic into FeaturesDecompose Features into Stories in preparation for Sprint Planning
Copyright © 2015 Allegro Business Solutions LLC. All Rights ReservedA deeper view of the Product Backlog 29Owned and prioritized by the Product Owner Anyone in the Org can add to the backlog Discipline: “If it is not on the backlog it doesn’t exist
Copyright © 2016 Allegro Business Solutions LLC. All Rights ReservedBacklog grooming based on Team velocity 30
Copyright © 2016 Allegro Business Solutions LLC. All Rights ReservedProduct Roadmaps 31 Story map Release map Encourage Stakeholder involvement
The Product Backlog has no end – it is never finished unless the activity is not longer neededThe Product Backlog should be groomed on a regular cadenceThe Product Backlog evolves to meet the Feedback received from customers and the marketplace Copyright © 2015 Allegro Business Solutions LLC. All Rights ReservedThe Product Backlog Lifecycle 32 New Items Released Elements
Copyright © 2015 Allegro Business Solutions LLC. All Rights ReservedRoles and Responsibilities in Scrum 33 Product Owner Scrum Master Scrum Team Stakeholders Commit to delivering the sprint goals Develop and commit to the Sprint Backlog Develops and maintains the Product Backlog and is communication link between the team and Stakeholders Provides product needs, guidance and feedback Feedback Deliver Business Objects based on Stakeholder needs and define sprint goals Manages the Scrum Process, works Retrospective actions and removes impediments Maintains metrics
Copyright © 2015 Allegro Business Solutions LLC. All Rights ReservedThe Product Owner 34 Has been referred to as the Single Project Throat to Choke Responsible to deliver a successful product: Vision Business Objectives Priorities Minimum Viable Product Minimum Marketable Features Clearly articulates Stories to team Performance expectations Release dates Product O wner
Is open to negotiation from the team and StakeholdersTeam – Sequencing (discussed further in the team section)Stakeholders – being able to embrace change in the market or Corporate needsIs business focused Best value for the least work for customer satisfaction (Lean)Comfortable in front of people telling the product or service story and representing the teamCan come from the ranks of Product Manager, Marketing Manager, Project Manager or in a case of Services a CustomerCopyright © 2015 Allegro Business Solutions LLC. All Rights Reserved Product Owner Attitude 35
It is impossible to know all of the requirements in advance We tried that with Waterfall and had less that stellar resultsBy educated assumption we can add areas of interest to the backlog for further refinementRequirements will emerge from customers in specific and the marketplace in general The answer is Rapid Cycles of Learning will provide insight into what is needed and whenOne of the 7 Lean Principles – Learn FirstCopyright © 2015 Allegro Business Solutions LLC. All Rights Reserved Being Open to Uncertainty 36
Copyright © 2015 Allegro Business Solutions LLC. All Rights ReservedProduct Owner Actions 37 Develops the product roadmap A roadmap for Stakeholders on product direction Prioritizes Features for the product or service Maintains just enough detail for the teams to be able to engaging in the next level of planning Provides a longer view for the team where the they are heading
Determine the flow of work Break it into work packages that make sense for the projectPut in a place for everyone to see This transparency will show both the team and management the status of where the project stands at any one timeGenerally estimates are not accurate so by visualizing the work everyone can see how long it takes and any issues confronting the work getting completed So how does this work?Copyright © 2016 Allegro Business Solutions LLC. All Rights Reserved Methods for visualizing the work 38
Kanban (Card) comes from minimizing work in process (WIP) in manufacturing. It is a visual way to see Software development efforts Kanban workflow principles:Visualize the workflowLimit WIP – Little’s lawManage FlowMake Process Policies ExplicitImprove Collaboratively ( using models & the scientific method)Copyright © 2016 Allegro Business Solutions LLC. All Rights ReservedKanban Development 39
Lead Time = WIP* (units) / ACR** (units per time period)To reduce the lead time – to get something completed for a given units per time requires a reduction in WIP Copyright © 2016 Allegro Business Solutions LLC. All Rights ReservedLittle’s Law – WIP (Kanban) 40 David Anderson is a leader in this methodology http://www.djaa.com/brief-history-kanban-knowledge-work *WIP – Work in Process **ACXR – Average C ompletion Rage
Copyright © 2016 Allegro Business Solutions LLC. All Rights ReservedVisibility board example with WIP limits 41 Littles Law can be applied when analyzing this visibility board
What value does VSM bring to a Program?It lays out the process from end to end and shows the steps necessary to complete the objectiveMethods for creating a VSMWhat is it that the program will deliver? What is the current process?Where are the delays, waste and constraints?What is the vision for the future state and create that flowRevisit the VSM regularly to see if other improvements can be madeIdentify who is the process ownerGather a team that has input to the process for a broad perspective of what needs to changeMay be part of a Kaizen activity – Kaizen’s definition is positive change Copyright © 2016 Allegro Business Solutions LLC. All Rights Reserved Value Stream Mapping42
Copyright © 2016 Allegro Business Solutions LLC. All Rights ReservedActual VSM used to improve asset management 43
Copyright © 2016 Allegro Business Solutions LLC. All Rights ReservedExample CFD – Controlled WIP limits 44
Copyright © 2016 Allegro Business Solutions LLC. All Rights ReservedCFD with out of control WIP 45 Large WIP
Risk Severity = Risk Probability x Risk ImpactThis method is the same for WF or Agile projectsScores can be developed and managed as they are resolvedCan be charted in many ways – one is a Risk burndown chart Copyright © 2016 Allegro Business Solutions LLC. All Rights ReservedManaging Risk 46
Satir Curve of changeNote the “where scared people quite” part of the curveNote how deep the Dip can beReinforce WiiF(Them) Copyright © 2015 Allegro Business Solutions LLC. All Rights ReservedChange Management 47
Copyright © 2016 Allegro Business Solutions LLC. All Rights ReservedADKAR Explained 48
Copyright © 2016 Allegro Business Solutions LLC. All Rights ReservedQ & A 49
Copyright © 2016 Allegro Business Solutions LLC. All Rights ReservedThank you!50