From Requirements to the Market A Lean journey

From Requirements to the Market A Lean journey

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.LLC. All All Rights Reserved Copyright 2015 Allegro Business Solutions Rights Reserved

About Allegro Business Solutions 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 2 Introduction 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. Jerrys 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. Copyright 2015 Allegro Business Solutions LLC. All Rights Reserved What is an Agile Project? Simple answer: A Project that uses Agile Principles and Practices But what are those characteristics? Being able to measure ROI early and often in the project Transparent to the organization high visibility of project progress and issues Continuous involvement of stakeholders (customers) in throughout the project The business owner is empowered to make decisions to meet goals Adaptive able to change to meet needs and requirements as they present themselves Always looking for ways to reduce waste and target the minimum set of customer value Reduce waste of both the product and the process

Copyright 2016 Allegro Business Solutions LLC. All Rights Reserved 4 Specific Agile Methods Scrum Iteration based and is the most popular Extreme Programing XP Most often used for its great Programming discipline Feature Driving Development (FDD) Lean Workflow Dynamic Systems Development Method (DSDM) Crystal Family of Methods Crystal Clear, Crystal Yellow, Crystal Orange, Copyright 2016 Allegro Business Solutions LLC. All Rights Reserved 5 The Iron Triangle Cost, Time and Scope Relationship Waterfall Modified Waterfall

Scope - Fixed Agile Time Fixed Cost Agile Traditional Time Dynamic Cost Scope - Dynamic Copyright 2016 Allegro Business Solutions LLC. All Rights Reserved 6

Introduction to Lean Lean Manufacturing Henry Ford starts manufacturing the Model-T in 1913 It had interchangeable parts and a process flow down side one model one color Other Automobile manufacturers started making more models and colors That required changes in process that slowed down the flow and added slow machinery Toyoda and Ohno analyzed the car making process and came up with the Toyota Production System in the 1930s and in earnest after WWII Lean in general Thoroughly described in the book The Machine That Changed the World (1990) by James P. Womack, Daniel Roos, and Daniel T. Jones Lean Thinking(1996), James P. Womack and Daniel T. Jones Copyright 2015 Allegro Business Solutions LLC. All Rights Reserved 7 Specifics of Lean thinking today Specify the value desired by the customer Identify 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 it

Make the product flow continuously through the remaining value-added steps Introduce pull between all steps where continuous flow is possible Manage toward perfection so that the number of steps and the amount of time and information needed to serve the customer continually falls 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." From the Lean Enterprise Institute Copyright 2015 Allegro Business Solutions LLC. All Rights Reserved 8 Lean Software Development Mary and Tom Poppendieck have been the major proponent of Lean Software development Lean Software Principles Eliminate Waste Embed Quality Learn First Amply learning Deliver Fast Defer Decisions Improve Forever Respect People Empower the team Think Systems Optimize the Whole

Toyota Production System Principles Reduce Setup waste Quality at the source Small lot production Pull production Equipment maintenance Employee involvement Supplier involvement Lean Software Development: An Agile Toolkit, Tom and Mary Poppendieck Copyright 2016 Allegro Business Solutions LLC. All Rights Reserved 9 The 7 principles of Lean development Eliminate Waste This becomes the list of 7 on the following slide which we will go into further detail Embed Quality At evert opportunity add quality to your process from the backlog to demo Learn 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 can Improve Constantly Inspect and Adapt is a major tenant of Scrum and Agile development Respect People The team are the ones that know the work and know best how to organize to get the best throughput Think Systems Keep 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 10 Lean Software Development the Wastes The Seven Software Dev Wastes Extra Features Partially Done Work Relearning Handoffs

Task Switching* Delays Defects The Seven Wastes Taiichi Ohno Overproduction Work in Process WIP Overprocessing Transportation Motion Waiting Defects Task Switching losses as much as 40% efficiency every time there is a switch - Meyer Copyright 2016 Allegro Business Solutions LLC. All Rights Reserved 11 Delivering Value Assessment Based on the 7 wastes in Lean the following are examined as not adding to value Lean Waste Description

Extra Features Over specifying the customer need Partially done work Work 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 2016 Allegro Business Solutions LLC. All Rights Reserved 12 The Elements of Scrum https://www.scrumalliance.org/why-scrum Copyright 2015 Allegro Business Solutions LLC. All Rights Reserved 13 The Scrum Framework Business Ideas Epics and Features for scrum team Sprint Planning Meeting Review Product backlog Estimate Sprint backlog

Commit to Sprint timebox Communicate Sprint Goals Daily Standup What was done yesterday? What will be done today? Impediments - Blockers? Retrospective Inspect and Adapt Sprint Review Meeting Demo and Acceptance of Sprint stories Product Backlog Groomed, prioritized Features in story form Iteration Timebox 2 to 4 weeks Sprint Backlog Stories estimated by team Task breakdown by team

Copyright 2015 Allegro Business Solutions LLC. All Rights Reserved Potentially Shippable Items 14 Lean Agile/Scrum relationship Lean Principles - to reduce waste without frustrating customers Agile - to reduce cost to make changes that reduce time to market Scrum Team Lean Scrum Team Lean Principles Copyright 2015 Allegro Business Solutions LLC. All Rights Reserved 15

Process Combination Scrum XP Lean Scrum - for the way we plan, organize and manage our work XP for Development discipline Lean for the overall way we think Copyright 2016 Allegro Business Solutions LLC. All Rights Reserved Keep a keen eye on Business Value 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 17 Backlog Grooming Lean thinking 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

18 Gaining Stakeholder feedback Develop wireframes Quick mockups on what the teams requirements understanding Personas Who 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 Cases What 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 19 Backlog grooming implications Grooming Poor grooming means that there is not enough info for the team to understand what is being requested

There 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/Risks Here we run into a big problem for the teams. If we dont 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 20 Method for determining an effective Story Independent Negotiable Valuable Estimable Small Testable

Able to be build in any order Make tradeoffs with Stakeholders If there is no value, then it is a waste There is enough information to estimate the effort Small enough to be estimable Without testing there is no knowledge of achievement Given, When, Then Copyright 2016 Allegro Business Solutions LLC. All Rights Reserved 21 User Stories and the Backlog 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. Acceptance Criteria

Give initial condition When stimulus Rqmts Epic Feature Story Task Then Final condition Copyright 2016 Allegro Business Solutions LLC. All Rights Reserved 22 User Story Examples 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 23 Given that we have Emerging Requirements what do we do? First embrace that new requirements will be coming in as we progress through the project/program Review the business value of each new Feature or Story to ensure the highest business value Ensure 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 reprioritized Copyright 2015 Allegro Business Solutions LLC. All Rights Reserved 24 Relative Priority to achieve a

singularity Develop a single priority list which has the order of importance visible in the ranking Using 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 another Copyright 2016 Allegro Business Solutions LLC. All Rights Reserved 25 Risk/Technology adjusting a Backlog Perform a risk analysis on the backlog to determine items that need to be learned early in the development cycle Move the most risky element up in priority Review the backlog to see what technology items must be completed before business items Backlogs can be adjusted by ROI or Risk calculations

Copyright 2016 Allegro Business Solutions LLC. All Rights Reserved 26 Creating the Product Backlog and Uncertainty Zivs Uncertainty Principle Uncertainty is inherent and inevitable in (Software) development processes and products Humphreys Requirements Uncertainty Principle For a new (Software) system the requirements will not be completely known until the users have used it Wegners Lemma It is not possible to complete specify an interactive system Filling the Product Backlog is an ongoing process based on feedback Copyright 2015 Allegro Business Solutions LLC. All Rights Reserved 27 Building a backlog The Backlog is made

up of a hierarchy of Epics Features Stories Decompose an Epic into Features Decompose Features into Stories in preparation for Sprint Planning Copyright 2015 Allegro Business Solutions LLC. All Rights Reserved 28 A deeper view of the Product Backlog Owned and prioritized by the Product Owner Anyone in the Org can add to the backlog Discipline: If it is not on the backlog it doesnt exist

Copyright 2015 Allegro Business Solutions LLC. All Rights Reserved 29 Backlog grooming based on Team velocity Copyright 2016 Allegro Business Solutions LLC. All Rights Reserved 30 Product Roadmaps Story map Release map Encourage Stakeholder involvement Copyright 2016 Allegro Business Solutions LLC. All Rights Reserved 31 The Product Backlog Lifecycle The Product Backlog has no end it is never finished unless the

activity is not longer needed The Product Backlog should be groomed on a regular cadence The Product Backlog evolves to meet the Feedback received from customers and the marketplace New Items Released Elements Copyright 2015 Allegro Business Solutions LLC. All Rights Reserved 32 Roles and Responsibilities in Scrum Deliver Business Objects Develops and maintains the Product based on Stakeholder needs and define sprint goals Develop and commit to the Sprint Backlog Commit to

delivering the sprint goals Backlog and is communication link between the team and Stakeholders Product Owner Feedback Scrum Team Provides product needs, guidance and feedback Stakeholders Manages the Scrum Process, Maintains metrics works Retrospective actions and removes Scrum Master impediments Copyright 2015 Allegro Business Solutions LLC. All Rights Reserved

33 The Product Owner Has been referred to as the Single Project Throat to Choke Responsible to deliver a successful product: Vision Business Objectives Priorities Minimum Viable Product Product Owner Minimum Marketable Features Clearly articulates Stories to team Performance expectations Release dates

Copyright 2015 Allegro Business Solutions LLC. All Rights Reserved 34 Product Owner Attitude Is open to negotiation from the team and Stakeholders Team Sequencing (discussed further in the team section) Stakeholders being able to embrace change in the market or Corporate needs Is 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 team Can come from the ranks of Product Manager, Marketing Manager, Project Manager or in a case of Services a Customer Copyright 2015 Allegro Business Solutions LLC. All Rights Reserved 35 Being Open to Uncertainty It is impossible to know all of the requirements in advance We tried that with Waterfall and had less that stellar results

By educated assumption we can add areas of interest to the backlog for further refinement Requirements 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 when One of the 7 Lean Principles Learn First Copyright 2015 Allegro Business Solutions LLC. All Rights Reserved 36 Product Owner Actions 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

Copyright 2015 Allegro Business Solutions LLC. All Rights Reserved 37 Methods for visualizing the work Determine the flow of work Break it into work packages that make sense for the project Put 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 time Generally 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 38 Kanban Development 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 workflow Limit WIP Littles law Manage Flow Make Process Policies Explicit Improve Collaboratively (using models & the scientific method) Copyright 2016 Allegro Business Solutions LLC. All Rights Reserved 39 Littles Law WIP (Kanban) 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 *WIP Work in Process **ACXR Average Completion Rage David Anderson is a leader in this methodology http://www.djaa.com/brief-history-kanban-knowledge-work Copyright 2016 Allegro Business Solutions LLC. All Rights Reserved

40 Visibility board example with WIP limits Littles Law can be applied when analyzing this visibility board Copyright 2016 Allegro Business Solutions LLC. All Rights Reserved 41 Value Stream Mapping 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 objective Methods for creating a VSM What 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 flow Revisit the VSM regularly to see if other improvements can be made Identify who is the process owner Gather a team that has input to the process for a broad perspective of what needs to change May be part of a Kaizen activity Kaizens definition is positive change Copyright 2016 Allegro Business Solutions LLC. All Rights Reserved 42 Actual VSM used to improve asset management Generic Datacenter Asset Management flow Current State As-Is Asset Mngt Process Level 1 VSM Owner: Asset Management Suppliers: Business & Product Groups, HW Vendors W

Customers: Business Groups, Product Groups Rework Queue 8.0 Manual Process V Pre-Racked vs. Individual servers 2.0 1.0 Manual Process Procure Wait

Time Details TBD 4.0 3.0 Update & Share Receive & Acquire W W Rework Queue Manual Process Rework

W W Queue 6.0 7.0 10.0 Manual Process Manage Deploy Rework Queue Manual

Process Stage & Transport Migrate Rework Queue Blocked Tickets 5.0 Manual Process (Asset information from HW Vendors) V W

Manual Process Decom W Disposal Rework Queue 9.0 Manual Process V Retire - 24/7 DC - Lights out Facility

- MSFT DC - New Products - Networking Equipment W Rework Queue V Rework Rework PRD Onsite Vendor Schedule 2.1 3.1 Manual Process

AX iAdmin Updates Order Updates Concurrent Asset Update & Deployment - MiV / UPUSHDirect - iAdmin Updates V Queue V W Rework Rework W V

11.0 Details TBD Manual Process Queue 4.1 5.1 Manual Process Order Updates 6.1 Rework Manual Process

7.1 Manual Process Asset Updates Internal Re-Use Hard Drive Audit Audit Manual Process (Security Classification) Migrate Total Process Time: xxx days. Process Time: TBD

Audit Decom Work Time: TBD Retire Process Time: 2 d Process Time: TBD Process Time: TBD Process Time: TBD Audit Process Time: 20% DCs over 1Q Process Time: TBD # Rsrcs: TBD Process Time: TBD

Work Time: TBD Work Time: TBD Work Time: TBD Work Time: TBD # Rsrcs: TBD Work Time: TBD SLA: Same DC 36 Diff DC 51 days # Rsrcs: 1.0 # Rsrcs: 2-3 # Rsrcs: 1-4 # Rsrcs: 1-10+ SLA: N/A

# Rsrcs: TBD ASM Min-Max: 1 49.2 Hrs. SLA: N/A SLA: N/A SLA: N/A SLA: 73 Days (SNEN) ASM Min-Max: N/A SLA: 33 Days ASM Avg: 16.8 Hrs. ASM Min-Max: N/A ASM Min-Max: N/A ASM Min-Max: N/A

ASM Min-Max: .1 37.6 Hrs. (Process steps 2.0 and 5.0) ASM Avg: N/A ASM Min-Max: .1 23.6 Hrs. ASM Min-Max: .1 - 24.2 Hrs. ASM Avg: N/A ASM Avg: N/A ASM Avg: N/A ASM Avg: 11.5 Hrs. ASM Avg: 11.3 Hrs. ASM Avg: 11.5 (Process steps 2.0 and 5.0) Copyright 2016 Allegro Business Solutions LLC. All Rights Reserved

Work Time: TBD # Rsrcs: TBD SLA: N/A 43 Example CFD Controlled WIP limits Copyright 2016 Allegro Business Solutions LLC. All Rights Reserved 44 CFD with out of control WIP Large WIP Copyright 2016 Allegro Business Solutions LLC. All Rights Reserved 45 Managing Risk Risk Severity = Risk Probability x Risk Impact This method is the same for WF or Agile projects

Scores can be developed and managed as they are resolved Can be charted in many ways one is a Risk burndown chart Copyright 2016 Allegro Business Solutions LLC. All Rights Reserved 46 Change Management Satir Curve of change Note the where scared people quite part of the curve Note how deep the Dip can be Reinforce WiiF(Them) Copyright 2015 Allegro Business Solutions LLC. All Rights Reserved 47 ADKAR Explained Copyright 2016 Allegro Business Solutions LLC. All Rights Reserved

48 Q&A Copyright 2016 Allegro Business Solutions LLC. All Rights Reserved 49 Thank you! Copyright 2016 Allegro Business Solutions LLC. All Rights Reserved 50

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