Lean Continuous Improvement and Metrics for Agile Organizations

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<ul><li> 1. Lean Continuous Improvement Powered By Agile 1 </li> <li> 2. -2- Enterprise Kanban 3 Times per Week Enterprise Prepare Introduce Measure Learn 4-6 Weeks EnterpriseStand up Agile Delivery And A Lean Mindset Drive Improvement Through Insight Gained From Both Qualitative Intuition And Quantitative Analysis Legend Manage Queues &amp; WIP Retrospective Every Week Teams Improvement Experiment Queue Prepare Introduce Measure Project Standups Every Week 1-3 Weeks Executive Escalation Transformation Experiment Queue Every 2 Week Operational Reviews Enterprise Standups Conduct Standups Raise Risks, Issues, Blockers IT Health Dashboard ES Deep Dive Diagnostic Reporting Monitor Metrics and Measurements Project Improvements As Identified ES Improvements As Identified Weekly/Monthly Every 2 Week Monthly Weekly Change Canvas Transformation Canvasc Learn Quality / Improvement Metrics &amp; Measurements Delivery Activities Change Canvas </li> <li> 3. - 3 - Continuous improvement is achieved through Lean-Agile Inspired Problem-solving Techniques measure, analyze and report on team productivity Gather incremental improvements through Retrospectives Why Why Why Why Why Determine root cause using 5 Whys 1 2 3 Synthesize problems into solutions and socialize across the organization Business Planning Project Planning PM Group Reqs BA Group Architect ure identify improvement opportunities using both qualitative and quantitative problem-solving Identify further improvements through analysis of team productivity metrics Use value stream mapping to visualize the value delivery activities, and identify areas of waste </li> <li> 4. -4- Agile teams leverage the quality management framework through a set of reoccurring delivery cadences Scrum Team Conduct Standups &amp; Spontaneous Quality Circles Raise, Visualize and Resolve Issues Pull, Visualize &amp; Limit Work in Progress Daily Weekly 2 Weeks + Escalate Unresolved Issues through EPMO Build Weekly Metrics Dashboard Update Metrics Tracker Update Enterprise Kanban Board Conduct Improvements Standup Analyze Delivery Dashboard Monthly Monthly Retrospective / Root Cause Analysis Conduct Quarterly Operational Reviews Identify Improvements Perform Bi- Monthly Business Replenishment Deploy Every 1 to 2 Months Bi-Monthly Client Demos Monthly Improvement Replenishment 4 </li> <li> 5. -5- Leveraging Continuous Improvement for Standards/Policies Each Team has a set of standards which describes how to complete work (e.g. work types, process, team and/or global standards) 1 The team can select to use the standard or suggest an improvement 2 If the team suggests an improvement they must make apredictionof improved performance 3 The team then completes the work, and measures performance 4 If performance is improved than the suggested improvement becomes thenew standard for that team 5 Team standards can be spread to other teams, becoming standards that apply to processes, standard work types, and even globally. These standards can be facilitated by various improvement events (e.g. operational reviews, retrospectives, etc.) 6 Managers can help teams by recommending optional practices and suggestions for improvements with a prediction and measurement period. 7 MMFs Work Team Predict Performance Suggest Improvement Execute Work Measure New Standard IMO Managers Suggest Improvement Recommend Standard 2 1 Existing Standards 3 4 5 6 7 Standards for Work Types Standards for Teams Global Standards Standards for Processes 5 </li> <li> 6. Improvement through measuring and managing flow </li> <li> 7. -7- Measuring and managing flow allows the entire organization to isolate and remove variation, improving quality as a result Even, steady movement of work through various states, shorter lead times, and limited &amp; small amounts of rework intermittent bottlenecks in the delivery process surrounded by states with little to no work Staggered, uneven progress, long lead times, and growth of the backlog due to rework Consistent, even amount of work across delivery states, no gaps or bunching of work in any particular state A critical principle of continuous improvement for knowledge work is the management and measurement of the flow of business valued work, enabled through the Kanban method Lack of flow State of flow </li> <li> 8. -8- Flow can be measured for Knowledge work when work is catalog into discrete units of business valued demand Knowledge work is inherently variable A multitude of factors can make demand different, making meaningful analysis across demand challenging One approach is to measure each unit of demand according to a unique combination of demand categorization factors This approach makes it impossible to compare units of work, as each unit gets tagged somewhat differently from the last A multitude of factors can make demand variable and difficult to measure Aggregate factors into a set of standard demand profiles Maintenance for Channels Team Operational work to maintain health of the system Enhancements for Integration Team Work focused on extending functionality of application assets New Story for HR department Work necessary support development for entirely new applications Break-Fix for EDW system Fixes to systems already in production, typically of critical urgency Investment Work focusedon enhancing system, people and process capabilities, low impact to business and no tangible cost of delay in the near future Blockers Visualizes an obstruction (internal or external to the team) that prevents a work type from completing its current activities Defects Visualizes an error in a completed work type that must be corrected before being pulled In order to make a system of work measurable in a useful way, aggregate demand into different types, based on their impact to the system of work, into well-defined demand profiles Examples Solution Value Type Cost of Delay Size Market Risk Customer Work Item LOB2 LOB4 LOB3 LOB1 Differentiator Spoiler Defend Commodity Emergency Fixed Date Incremental Investment Java Web SAP Massive Medium Small Large Defect CR Business Technical Integration </li> <li> 9. -9- Expedite Class High and immediate impact to business (very significant cost of delay) Break-fix type of work that needs immediate attention. Automatically jumps queues Requires specialist resources drop other work in preference to working an expedite class item Release dates may be adjusted to accommodate required delivery date Complete in 2 days or less 95% of the time Cost of Delay Function Standard Class Shallow but immediate impact to business (medium cost of delay) Most work types needed with some urgency should be treated as standard class items Processed on a first in first out basis Completed 20 days or less, 80% of the time Investment/ Maintenance Class Low impact to business. No tangible cost of delay associated with this type of work in the near future Will be pulled through the system in an ad-hoc fashion. Can be displaced by all other classes of work Completed 60 days or less, 40% of the time Fixed Date Medium/High impact to business (high cost of delay after delivery date) Delivery date constrained by legal commitment with customer or supplier, or regulatory/legislative requirement, or ministerial promise Estimate and move from input queue close to estimated days away from due date Selected for work over standard class. May be promoted to Expedite if late Completed according to estimate, (80% ) provided 10 days of advance notice Applying a Class of Service to each demand profile allows teams to indicate the cost of delay of not completing a discrete unit of demand, teams can measure a service level promise associated with completing that demand </li> <li> 10. -10- Lean metrics can be used to measure flow of discrete units of demand, along with predictability, agility and quality Delivery Lead Time E2E Lead Time Process Cycle Time Project Project Defect / Blocking Issue Cycle Time Business Blocking Cycle Time Quality Defects MMF MMF Feature Feature Feature Feature Feature Ideas Idea Intake Feature / Solution Options Analysis Project Planning &amp; Analysis Delivery Backlog MMF Planning &amp; Analysis Delivery(R,D,B,T) BAT Deploy Complete Delivery Throughput MMF Throughput Capacity Load Feature Feature Feature Feature A lack of flow, and or flow of low-quality work will indicate sources of quality problems, highlighting where improvements may be required MMF </li> <li> 11. -11- Lean Metric enable an organization to measuringthe effectiveness of processing multiple types of demand Metric Description Measures Delivery Lead Time Elapsed time of a Storybetween the Product Backlog and Delivery Complete Providean understanding of the minimum time it was required to service a request. Agility Wait Time Elapsed time a story has spent waiting for a downstream team to begin work. Provide insight into the efficiency of hand-offs between member Agility DeliveryThroughput The number of story ready for release per month (or desired frequency) Provides understanding of overall efficiency and productivity Capacity Capacity Load The ratio of individual work items being processed to number of people in the organization Measures overall organizational maturity, and serves as a leading indicator for cycle times, and predictability as well as quality Collaboration Story Target Conformance The percentage of storiesthat were completed within the agreed upon estimate (i.e. estimate vs. actual). Enables a meaningful comparisonbetween the initial estimate and the actual result. Allows better estimation of similar stories in the future Predictability Defect / BlockingIssue Cycle Time The amount of time it takes to resolve a defector an issue that is preventing work from being completed. Measures the capability of managers and executives to resolve problems Quality BlockingRate Percentage of stories in progress that have been blocked on one or more occasions during a specific time period. Shows how well the organization is a coordinating work that has been prioritized across the enterprise Collaboration Failure intake Percentage of stories in progress that entered the system of work because of previous story was not properly implemented the first time. Points to some optimizations of efficiency over quality, and number of defects that have escaped to the market. Quality DefectDensity Percentage of stories in progress that have one or more defects raisedagainst them anywhere in the process. Indicates poor collaboration and communication across different teams. Quality </li> <li> 12. - 12 - Graphical representation of each WPs total time for completion (y-axis) vs. the date the WP was completed Provides insight into potential outliers (i.e. WPs that took significantly longer than the average) to investigate SPC Chart Individual teams will be coached to fill out both cumulative flow diagrams and statistical process control diagrams demonstrating relative delivery performance and overall health of the team This diagram shows the number of work tickets in each phase on a given day and tracks it over time on a stacked area chart A wide area vertical suggests a lot of work in progress for a particular phase Visualizes bottlenecks and interruption of flow over time Cumulative Flow Diagram </li> <li> 13. - 13 - Cumulative Flow Diagrams provides a method of tracking and forecasting progress and helps identify bottlenecks in the process 1 Cumulative provide a method for tracking progress of projects in a "burn up" fashion simultaneously providing a perspective on total scope competition and individual Story progress If the work tickets are flowing smoothly, the bands should be smooth and their heights should be stable Provides a leading metric on visually analyzing trends in lead time and WIP which allows teams and managers to react early to growing problems and provide transparency into the whole lifecycle Littles Law: The amount of work in progress is directly proportional to the lead times of the system (i.e. Higher WIP = Longer Cycle Times, and vice versa) By monitoring and controlling the teams WIP you can predict and speed up cycle times for current and future work items Cumulative Flow Diagram (CFD) 0 5 10 15 20 25 31-Jan-11 14-Feb-11 28-Feb-11 14-Mar-11 28-Mar-11 11-Apr-11 25-Apr-11 9-May-11 Total Stories Week Ending Requirements Design Build Wait Time Code Test Promotion QA Wait Time QA UAT Wait Time UAT RFC RFC Wait Time RTP Wait Time RTP Done Requirements Work In Progress E2E Lead Time Teams Work in Progress Idle / Wait Time Jagged Flow indicates batching and requires further root cause analysis Work Packages </li> <li> 14. -14- Completing all open stories by end of May requires a throughput of approximately 25 storiesper month -10 10 30 50 70 90 110 130 nov dec jan feb march apr may jun july Stories End of Iteration...</li></ul>