Outcomes

2. Outcomes “A group of people can get together, talk about Lean; what it means and how it applies to us. Furthermore and more importantly, what we can do to work in this way and evangelise the principles”

3. What is it and where did it come from? A very brief history of Lean • Born out of the Henry Ford – Model T Ford production line and W. Edwards Deming “Plan – Do – Check – Act” Cycle which was taken to Japan in the Post WWII era • Toyota best developed the model known as Toyota Production System – popularised Just In Time Production • What did they do so well? • Got Employees involved in the process – especially in terms of Quality • Focused on smaller batches • Worked to eliminate Waste – in the end-to-end production process • Reduced queues in the production line (reduced inventory required) • WIP was reduced • Ultimate focus was on Customer Satisfaction– delivering on time resulted in customer satisfaction and Quality improvement resulted in less returns and repairs • Not difficult to see how this works so well in the Product Development World

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5. House of Lean The Roof of the House • GOAL – Value, Speed, Quality • Sustainably shortest lead time • Best Quality and Value to Clients • TaiichiOhno (Father of Toyota Production System) “All we are doing is looking at the timeline from the moment the customer gives us an order to the point when we collect the cash. And we are reducing that timeline by removing the non-value-added waste”

6. Pillars of Lean Respect for People • Software is developed by people for people!!! • If you look after the people and the teams, they will build effective software • Fundamentally people want to come to work to do a good job. If you create the right environment for them to do so, they will! • Teams must be empowered to make change and continuously improve • Partnerships are built on mutual respect and trust

7. House of Lean Product Development Flow Take an Economic View Actively Manage Queues Understand & Exploit Variability Reduce Batch Size Apply WIP Constraints Control Flow Under Uncertainty Get Feedback As Fast As Possible Decentralise Control

8. House of Lean 1. Take an Economic View • Apply Economics to everything. Ultimately we are doing this to make money! • Reduce wasteful work because it costs money • Produce Minimum Viable Product (MVP) • Understand the full value chain • Sequence work/jobs for maximum benefit • If you quantify one thing, quantify the cost of delay • Empower local decision-making • I want to make sure the costs of running teams and producing Features becomes more visible to everyone

9. House of Lean 2. Actively Manage Queues • Long queues lead to: • Longer cycle times • Increased risk • More variability • Lower quality • Decreased Motivation

10. House of Lean 3. Understand and Exploit Variability • You cannot add value without adding variability! • We will miss opportunities to add value or remove waste if we do not exploit variability • By using spikes effectively, you can discover which features/stories can be done and which should not be done • Use of spikes helps control the variability. We can invest more in those areas which will add value and abandon those areas which will only be wasteful

11. House of Lean 4. Reduce Batch Size • Small batches: • Reduce cycle time • Enable faster feedback • Good Infrastructure and s/w development practices enable small batches – Build and Test automation; Continuous Integration - etc

12. House of Lean 5. Apply WIP Constraints • Stop starting and start finishing! • Enables us to maximise economic benefit (by having work in the ‘Deployed’ column and not in the ‘In Progress’ column) • Brings focus to a task • Maximises throughput • Ensures prioritisation of work (most important work is in progress while less-important work is not taken on)

13. House of Lean 6. Control Flow Under Uncertainty • Donald Reniertsen“We get more value from overall alignment than local excellence” • Introduces the ideas of cadence and synchronisation • Cadence: • Turns unpredictable events into predictable ones (Sprints 2 weeks and regular drops into production) • Makes waiting time predictable – expectations are managed • Helps manage load by limiting time • Synchronisation: • Causes multiple events to happen at the same time (E.G. sprints within the Programme) • This facilitates cross-functional trade-offs of people and resources

14. House of Lean 7. Get Feedback As Fast As Possible • McGill“Sometimes people don’t know what they want until they see it” • Reduces ‘cost’ of failure - decreases risk • Improves efficiency of learning • Enables MVP – if client sees it they realise they might not necessarily need everything they have asked for • Enables shorter cycle time • Enables better development Quality • Local feedback loops are as important as global ones (peer/BA/Team review)

15. House of Lean 8. Decentralise Control • Centralised decisions should be made for: • Those that are made infrequently • Those that can be applied Globally • Decentralise others: • Ensures efficiency (time taken) to make decisions. Knowledge of Vision and Roadmap here is important – so decisions can be made with context • Local decisions have the right local context • Teams should be empowered to make the right decisions in the best interests of the team, the programme and the bank • If it adds Value – do it; if it doesn’t, don’t

16. House of Lean Third Pillar – Continuous Improvement • Kaizen: “Change for the Best” • We must be relentless in Reflection • Continuous Improvement • Small, steady improvement • Use empirical data to make improvements (data off board or Rally) • Reflect at key milestones • Use tools like Retrospectives & root cause analysis 5 Whys • Protect knowledge base by keeping personnel stable and careful succession planning – no key man dependencies

17. House of Lean Foundation – Management Support • If Management do not support or facilitate the process – it will not be very effective! • This includes facilitating stakeholder participation in the process

18. In Summary then… wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww

19. Summary Changemindsets – develop a lean culture Continuously change and improve Influence others Always challenge – always ask why Become a Lean Revolutionary and Evangelise!