Amp up your Agile implementation in complex
environments with Systems Thinking
@martinaziz@fer_cuenca
Fernando A. Cuenca Martin Aziz
fernando.a.cuenca@gmail.com martinaziz@gmail.com
Toronto Agile
Conference
2017
A company responding to the
environment
The
Company
Customers
Complexity
of Problem
Considering the problem domain
Causal
Loop
Part 1
Dedicated
ScrumMasters
Dedicated
Product Owners Cross-
functional, small
teams
Agile Pattern
Part 3
Introducing Decentralized Control
& Capacity Management
The
Company
Complexity brings scale
Number
of
Teams+
Complexity
of Problem
Causal
Loop
Part 2
+
Customer Recognizable Features,
Fitness for Purpose and Lead Time
The
Company
Customers
Product
Owners
Tribal Identifies, Inwards-looking
local optimization
The
Company
Teams and the local agenda
Number
of Teams
Tribal
Behaviour
+
Local
Improvement
Effort
Complexity
of Problem
+
+
Causal
Loop
Part 3
Where is my
stuff?
What am I
going to get
at the end?
Why does it
take this long?
Seems to work
for me….
6
End to End Measurement for
Fitness
The
Company
How does this impact Lead Time and Fitness
for Customer Purpose?
Lead Time
Fit for
Purpose
-
Number
of Teams
Tribal
Behaviour
+
Local
Improvement
Effort
Complexity
of Problem
+
+
?
Causal
Loop
Part 4
t
Comes from
different sources
Comes in different types,
requiring different
processing
It has different
frequencies of
arrival
It has different
levels of urgency,
Importance, and
cost of delay It has different
perceived value
Cost of Delay and Heterogeneous
demand
The
Company
Senior
Stakeholder
Customer
Commitment
Push
Queue
Commitment, Push and
overburdening
The
Company
Potential for overburdening
Number
of
Teams
Tribal
Behavio
ur
+
Local
Improvement
Effort
Lead
Time
Fit for
Purpose
-
Implicitness of
Commitment
Point
Distance
between Teams &
Commitment
Point
Overburdening
Complexity
of Problem
+
+
+
+
Causal
Loop
Part 5
Delivery “chains”
Shared team
members
Internal “shared
services”
Person with
very specialized
skills “floating”
around teams
“External” team
members
White Spaces
The
Company
The impact of Teams & Overburdening on
Flow Efficiency
Number
of
Teams
Tribal
Behavio
ur
+
+
Flow
Efficiency
-
Local
Improvement
Effort
Lead
Time
Fit for
Purpose
-
Implicitness of
Commitment
Point
Distance
between Teams &
Commitment
Point
Overburdening
+
Complexity
of Problem
Coordination
effort +
White Space
+
+
+
-
-
Causal
Loop
Part 6
Wait Wait Wait WaitWork Work Work Work
Flow Efficiency =
work time
work time + wait time
x 100%
Decomposition and Batch Sizes
The
Company
Some stay the
same
Some are re-
aggregated and
batchedSome describe
business
functionality
Some are purely
technical tasks
Some have
internal
dependencies
Some are sent
to other team’s
backlogs
11
Recognizability and Transaction
Costs
The
Company
The impact of batch size on lead time
Number of
Teams
Tribal
Behaviour
+
+
Flow
Efficiency
-
Local
Improvement
Effort
Lead Time
Fit for
Purpose
-
Implicitness of
Commitment
Point
Distance
between Teams &
Commitment
Point
Overburdening
+
Complexity
of Problem
Coordination
effort +
White Space
+
+
+
-
-
Batch Size
+
+
Transaction
Cost
+
Causal
Loop
Part 7
?
?
Local OptimizationThe
Company
??
?
?
??
Decomposition and Customer Recognizability, the final links
Number
of Teams
Tribal
Behaviour
+
+
Decomposition
+
Customer
Recognizability
Flow
Efficiency
-
Batch Size
Local
Improvement
Effort
+
+
Lead
Time
Fit for
Purpose
-
Implicitness of
Commitment
Point
Distance
between Teams &
Commitment
Point
+
Overburdening
-
+
Complexity
of Problem
Coordination
effort +
White Space
+
-
-
+
+
+
+
+
+
-
+
Transaction
Cost
-
Causal
Loop
Part 8
Sense
& Promise
Push
Stories
Scrum
Team
Scrum
Team
XP
Team
Story
Accumulation
FeaturesIdeas
Kanban
Team
Customers
Delivery
Customers
Doing
White spaces between teams
sources of greatest delays.
Stories hard to recognize by
customers or actors on the left end
of the flow.
Unconstrained demand
Early
Commitment
without
connection to
capability
Key challenges of the systemThe
System
Constraining the work
Number
of Teams
Tribal
Behaviour
+
+
Decomposition
+
Customer
Recognizability
Flow
Efficiency
-
Batch Size
Local
Improvement
Effort
+
+
Lead
Time
Fit for
Purpose
-
Implicitness of
Commitment
Point
Distance
between Teams &
Commitment
Point
+
Overburdening
-
+
Complexity
of Problem
Coordination
effort +
White Space
+
-
-
+
+
+
+
+
+
-
+
Transaction
Cost
-
Constraints
- -
Breaking
the loop
Making commitments explicit
Number
of Teams
Tribal
Behaviour
+
+
Decomposition
+
Customer
Recognizability
Flow
Efficiency
-
Batch Size
Local
Improvement
Effort
+
+
Lead
Time
Fit for
Purpose
-
Implicitness of
Commitment
Point
Distance
between Teams &
Commitment
Point
+
Overburdening
-
+
Complexity
of Problem
Coordination
effort +
White Space
+
-
-
+
+
+
+
+
-
+
Transaction
Cost
-
Constraints
- -
Explicit
Commitment
-
Breaking
the loop
Know your delivery capability and implement Pull
Number
of Teams
Tribal
Behaviour
+
+
Decomposition
+
Customer
Recognizability
Flow
Efficiency
-
Batch Size
Local
Improvement
Effort
+
+
Lead
Time
Fit for
Purpose
-
Implicitness of
Commitment
Point
Distance
between Teams &
Commitment
Point
+
Overburdening
-
+
Complexity
of Problem
Coordination
effort +
White Space
+
-
-
+
+
+
+
+
-
+
Transaction
Cost
-
Constraints
- -
Explicit
Commitment
-
Pull
Policies
Measurement
-
-
Breaking
the loop
See your world as a service to a customer. Maintain customer
recognizability at all times.
Number
of Teams
Tribal
Behaviour
+
+
Decomposition
+
Customer
Recognizability
Flow
Efficiency
-
Batch Size
Local
Improvement
Effort
+
+
Lead
Time
Fit for
Purpose
-
Implicitness of
Commitment
Point
Distance
between Teams &
Commitment
Point
+
Overburdening
-
+
Complexity
of Problem
Coordination
effort +
White Space
+
-
-
+
+
+
+
+
-
+
Transaction
Cost
-
Constraints
- -
Explicit
Commitment
-
Pull
Policies
Measurement
-
-
Service
Orientation
+
Breaking
the loop
Flow – getting to a system that is in control
Sense
Pull
Features
Features
Do Next
Ideas
CustomersDelivery
Customers
Features
Do
Features
Good Constrained delivery
pipeline
Upstream Downstream
Progress Customer
Recognizable
Delivery Improvements
aligned to optimize for
value delivery
Work is pulled into delivery
pipe automatically as
capacity becomes
available. Push is avoided
to prevent overburdening.
A new
system
0. Understand the purpose of the System and identify Services
1. Understand Sources of Dissatisfaction
2. Analyze Demand and Capability
3. Model the Knowledge Discovery Knowledge
4. Discover Classes of Service
5 . Design Kanban Systems
6. Roll-out
One way to get there: STATIK
the Systems Thinking Approach to Introducing Kanban
A new
system
1. Who are my
customers?
2. What do they
expect?
3. How do I meet those
expectations?
Kanban at the System Level
A new
system
Service 1
Service 2
Service 3
Discovery
(N)
Construction
(N)
Deployment
(N)
Commitment
Points
Upstream Flow
Downstream
Flows
Constraints to
enable PULL
Validation
(N)
Different
visualization
fidelity
Learning
More Some resources that have influenced us
Antifragile: Things That
Gain from Disorder
Nassim Nicholas Taleb
Kanban from the Inside
Mike Burrows
The Principles of Product
Development Flow
Donald G. Reinersten
Lessons in Agile
Management: On the
Road to Kanban
David J. Anderson
Goal: A Process of
Continuous
Improvement
Eli Goldratt
Management 3.0
Jurgen Appelo
Toyota KATA
Mike Rother
Actionable Agile Metrics
for Predictability
Daniel S. Vacanti
Learning
More Some people that have influenced us
David J. Anderson (LKU,
Kanban)
leankanban.com/blog
Alexei Zheglov (Kanban)
connected-knowledge.com
Patrick Steyaert (Flow)
www.okaloa.com
Chris Chapman
(#SystemsThinkingTO)
@DerailleurAgile
Esther Derby (Agile
Management)
www.estherderby.com/category
/insights
Dave Snowden (Cynefin)
cognitive-edge.com/blog
About us How to reach us to keep the conversation going

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Amp up your agile tac 2017

  • 1. Amp up your Agile implementation in complex environments with Systems Thinking @martinaziz@fer_cuenca Fernando A. Cuenca Martin Aziz fernando.a.cuenca@gmail.com martinaziz@gmail.com Toronto Agile Conference 2017
  • 2. A company responding to the environment The Company Customers
  • 3. Complexity of Problem Considering the problem domain Causal Loop Part 1
  • 4. Dedicated ScrumMasters Dedicated Product Owners Cross- functional, small teams Agile Pattern Part 3 Introducing Decentralized Control & Capacity Management The Company
  • 6. Customer Recognizable Features, Fitness for Purpose and Lead Time The Company Customers Product Owners
  • 7. Tribal Identifies, Inwards-looking local optimization The Company
  • 8. Teams and the local agenda Number of Teams Tribal Behaviour + Local Improvement Effort Complexity of Problem + + Causal Loop Part 3
  • 9. Where is my stuff? What am I going to get at the end? Why does it take this long? Seems to work for me…. 6 End to End Measurement for Fitness The Company
  • 10. How does this impact Lead Time and Fitness for Customer Purpose? Lead Time Fit for Purpose - Number of Teams Tribal Behaviour + Local Improvement Effort Complexity of Problem + + ? Causal Loop Part 4 t
  • 11. Comes from different sources Comes in different types, requiring different processing It has different frequencies of arrival It has different levels of urgency, Importance, and cost of delay It has different perceived value Cost of Delay and Heterogeneous demand The Company
  • 13. Potential for overburdening Number of Teams Tribal Behavio ur + Local Improvement Effort Lead Time Fit for Purpose - Implicitness of Commitment Point Distance between Teams & Commitment Point Overburdening Complexity of Problem + + + + Causal Loop Part 5
  • 14. Delivery “chains” Shared team members Internal “shared services” Person with very specialized skills “floating” around teams “External” team members White Spaces The Company
  • 15. The impact of Teams & Overburdening on Flow Efficiency Number of Teams Tribal Behavio ur + + Flow Efficiency - Local Improvement Effort Lead Time Fit for Purpose - Implicitness of Commitment Point Distance between Teams & Commitment Point Overburdening + Complexity of Problem Coordination effort + White Space + + + - - Causal Loop Part 6 Wait Wait Wait WaitWork Work Work Work Flow Efficiency = work time work time + wait time x 100%
  • 16. Decomposition and Batch Sizes The Company
  • 17. Some stay the same Some are re- aggregated and batchedSome describe business functionality Some are purely technical tasks Some have internal dependencies Some are sent to other team’s backlogs 11 Recognizability and Transaction Costs The Company
  • 18. The impact of batch size on lead time Number of Teams Tribal Behaviour + + Flow Efficiency - Local Improvement Effort Lead Time Fit for Purpose - Implicitness of Commitment Point Distance between Teams & Commitment Point Overburdening + Complexity of Problem Coordination effort + White Space + + + - - Batch Size + + Transaction Cost + Causal Loop Part 7
  • 20. Decomposition and Customer Recognizability, the final links Number of Teams Tribal Behaviour + + Decomposition + Customer Recognizability Flow Efficiency - Batch Size Local Improvement Effort + + Lead Time Fit for Purpose - Implicitness of Commitment Point Distance between Teams & Commitment Point + Overburdening - + Complexity of Problem Coordination effort + White Space + - - + + + + + + - + Transaction Cost - Causal Loop Part 8
  • 21. Sense & Promise Push Stories Scrum Team Scrum Team XP Team Story Accumulation FeaturesIdeas Kanban Team Customers Delivery Customers Doing White spaces between teams sources of greatest delays. Stories hard to recognize by customers or actors on the left end of the flow. Unconstrained demand Early Commitment without connection to capability Key challenges of the systemThe System
  • 22. Constraining the work Number of Teams Tribal Behaviour + + Decomposition + Customer Recognizability Flow Efficiency - Batch Size Local Improvement Effort + + Lead Time Fit for Purpose - Implicitness of Commitment Point Distance between Teams & Commitment Point + Overburdening - + Complexity of Problem Coordination effort + White Space + - - + + + + + + - + Transaction Cost - Constraints - - Breaking the loop
  • 23. Making commitments explicit Number of Teams Tribal Behaviour + + Decomposition + Customer Recognizability Flow Efficiency - Batch Size Local Improvement Effort + + Lead Time Fit for Purpose - Implicitness of Commitment Point Distance between Teams & Commitment Point + Overburdening - + Complexity of Problem Coordination effort + White Space + - - + + + + + - + Transaction Cost - Constraints - - Explicit Commitment - Breaking the loop
  • 24. Know your delivery capability and implement Pull Number of Teams Tribal Behaviour + + Decomposition + Customer Recognizability Flow Efficiency - Batch Size Local Improvement Effort + + Lead Time Fit for Purpose - Implicitness of Commitment Point Distance between Teams & Commitment Point + Overburdening - + Complexity of Problem Coordination effort + White Space + - - + + + + + - + Transaction Cost - Constraints - - Explicit Commitment - Pull Policies Measurement - - Breaking the loop
  • 25. See your world as a service to a customer. Maintain customer recognizability at all times. Number of Teams Tribal Behaviour + + Decomposition + Customer Recognizability Flow Efficiency - Batch Size Local Improvement Effort + + Lead Time Fit for Purpose - Implicitness of Commitment Point Distance between Teams & Commitment Point + Overburdening - + Complexity of Problem Coordination effort + White Space + - - + + + + + - + Transaction Cost - Constraints - - Explicit Commitment - Pull Policies Measurement - - Service Orientation + Breaking the loop
  • 26. Flow – getting to a system that is in control Sense Pull Features Features Do Next Ideas CustomersDelivery Customers Features Do Features Good Constrained delivery pipeline Upstream Downstream Progress Customer Recognizable Delivery Improvements aligned to optimize for value delivery Work is pulled into delivery pipe automatically as capacity becomes available. Push is avoided to prevent overburdening. A new system
  • 27. 0. Understand the purpose of the System and identify Services 1. Understand Sources of Dissatisfaction 2. Analyze Demand and Capability 3. Model the Knowledge Discovery Knowledge 4. Discover Classes of Service 5 . Design Kanban Systems 6. Roll-out One way to get there: STATIK the Systems Thinking Approach to Introducing Kanban A new system 1. Who are my customers? 2. What do they expect? 3. How do I meet those expectations?
  • 28. Kanban at the System Level A new system Service 1 Service 2 Service 3 Discovery (N) Construction (N) Deployment (N) Commitment Points Upstream Flow Downstream Flows Constraints to enable PULL Validation (N) Different visualization fidelity
  • 29. Learning More Some resources that have influenced us Antifragile: Things That Gain from Disorder Nassim Nicholas Taleb Kanban from the Inside Mike Burrows The Principles of Product Development Flow Donald G. Reinersten Lessons in Agile Management: On the Road to Kanban David J. Anderson Goal: A Process of Continuous Improvement Eli Goldratt Management 3.0 Jurgen Appelo Toyota KATA Mike Rother Actionable Agile Metrics for Predictability Daniel S. Vacanti
  • 30. Learning More Some people that have influenced us David J. Anderson (LKU, Kanban) leankanban.com/blog Alexei Zheglov (Kanban) connected-knowledge.com Patrick Steyaert (Flow) www.okaloa.com Chris Chapman (#SystemsThinkingTO) @DerailleurAgile Esther Derby (Agile Management) www.estherderby.com/category /insights Dave Snowden (Cynefin) cognitive-edge.com/blog
  • 31. About us How to reach us to keep the conversation going