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Changing Finger-Pointing to Improvement Using Value
Stream Mapping
Towo Toivola, Director

R&D Global Methods



Protecting the irreplaceable | f-secure.com
Contents
• F-Secure
• Keeping timetables and promises
• Finger-pointing
• What is value stream mapping
• Performing the work
• Effects




2   February 11, 2013
About F-Secure
• Company
    • Founded in 1988, listed on NASDAQ OMX Helsinki
    • Market cap ca 350 m€, annual revenue ca 130 m€ (2010)
    • Headquartered in Helsinki, 18 country offices, presence in more than 100 countries
    • 812 people, 300+ in R&D, 5 R&D offices in 4 countries, Agile since 2005
• Products and Services
    • Online Security: Anti-Malware, e-mail filter, Browsing Protection, Parental Control
    • Content Protection: Online Backup, Anti-Theft
    • Online Storage and Services: Storage Platform, Sharing, Social Media Access
    • Multiple OS platforms (Win, Mac, Linux, mobile), 20+ language versions
• Customers
    • Consumers (retail, reseller, e-store), millions of homes
    • Network operators (ISP, mobile), world leader with 200+ operator partners
    • Corporate



3               © F-Secure Public
More than
200 operator
partners globally
and over 250 m
broadband
subscribers




4
Why Are Timetables Important
• Deliveries to important partners when they have planned for it
• Market cycles
• Customer commitments and penalties
• Lack of reliability results in lack of business
• Long-term planning assumes that delivery dates hold
• Interdependent projects assume that delivery dates hold




5   February 11, 2013
How Is It Usually With Schedules                             “Software
                                                             programmien
• Many companies, including us, suffer from late projects to aikataulut ei pidä”
                                                             some degree
• Deliveries with other than expected content
• Deliveries with poor quality
• Deliveries with outdated content
• Deliveries that require a lot of support work




                                                              “Projektit venyy ja
                                                              paukkuu”


6   February 11, 2013
What Do We Do To Fix The Problem
   Why don‟t you           Why did you                                    There‟s no
   deliver?!                                 We said it‟s
                           promise                                        resources for
                                             risky!!
                           whatever?!                                     delivery!!




                                                                  Professional
       Sales                Biz              R&D                   Services

                                                                          Why do you
                             Can‟t you             Make up your           plan without
It‟s in the                  work faster?!         mind!!                 us!!
roadmap!!

   7   February 11, 2013
Does This Help?




8   February 11, 2013
As Steve Denning Describes It..




9   February 11, 2013   © F-Secure / Confidential
What Is Value Stream Mapping




        Wikipedia:
        Value stream mapping is a lean manufacturing
        technique used to analyze and design the flow of
        materials and information required to bring a
        product or service to a consumer.




10   February 11, 2013
Value Stream Mapping
A value stream is all the activities (both value and non-value adding) currently
required to bring a product through the main flows essential to every product:

                             The design flow from concept to cash




                         Activity     Activity     Activity      Activity



                                Customer demand pulls the work




11   February 11, 2013
Productization Process (case: X)
         1. May 2009                               11. March 2010                                                           10. Sep 2010

             UX                      X                Po Council                                                               Po Council
                                                                            X PSI1&2 dev               Rescoping                                            Kick-off
          Concepting              Req.work
 Activity         6m                 2,5m                                        5m                           3w                                                2d
 Wait                                2,3m                             2w                                                                         1w
 Cumulative                                                                                                                                                    16m




                              31. Jan 2011                                                                                9. May 2011                    30. Jun 2011
17. Sep 2010                                                                March 2011

      Client, Backen              PPSG             Client, Backen                                   Client, Backen          X demo prod                     PSG RTM
                                                                             Req. added                                    upgrade & fixes                   Decision
           d dev              Delay RTM 1m              d dev                                            d dev
              6,5m                                         1m                                               2,5m                  1,5m                          2d

                                                                                                                                                               27,5m

                                                                                          19. Oct 2011
                                                                                          Cost of Delay                                                           Cost of
                                                                                           NNN kEur                                         X times               Delay ?!
1. Jul 2011                               2 service
                  X+1               releases, migration             Package               Production for             Fixes, customization,                Production for
              Proj. started        script dev, packaging            validation             customer A                migration, deployment                 operator [ ]
                                  rework, customization
                                             2,5                       1d                      5d                          (estimated cal.time for all customers is Nm)

                                                                                          Total 2,5 years                                                  Total 3 years
     Observations
       are missing
     from this11, 2013
       12 February view           © F-Secure Confidential
What We Did
• Case study VSM of an interesting project
• Cooperation of different functions the gain different viewpoints
• Gathering factual data
        • If someone believes a certain thing, that‟s a fact

• All major steps and events
  from business decision to first
  delivery
• Many observations about                                      Quality
  project environment                    Technology


• 5 workshops, 3 different
  groups, 3 hours each                                                        IT
• Assessing generalizability of                                          HR
  events                                               Legal


 13   February 11, 2013
Results of Workshops
• Unparallel visibility to what happens when we
  work
• Concrete, undeniable data that everyone can
  grasp
• No single function was doing their work
  poorly, but were not cooperating in a way that is
  optimized for the whole
• Many disturbances will hit a long project
          • They will make it yet longer

• Calendar time truly costs money
• We have some consistent, irrational behavior
  as a company




14   February 11, 2013
Reactions to Results
• “So it‟s not just bad R&D work”
• Realizing nobody had the big picture
          • Even execs

• Shocked at the length of cycle time
          • Even execs

• Realizing the cost of delay
• Willingness to change big things
• Desire for an improved value stream:
New productization process


                                         “Eye opening
                                          experience”
15   February 11, 2013
Current Status: Striving to Utilize Change Potential
• Project „commandments‟ in preparation
• „Future state‟ versions are in preparation
• Root cause analysis taking place
• Applying planning mechanisms to enable 3-month projects
• Spreading knowledge
• Major improvement targets for next year being specified




16   February 11, 2013
Do you know how to improve your company?
Are “They” preventing any improvement?




Make it visual, make it concrete.
Make a value stream map.
17   February 11, 2013
Any
questions?

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Value-Stream-Mapping,

  • 1. Changing Finger-Pointing to Improvement Using Value Stream Mapping Towo Toivola, Director R&D Global Methods Protecting the irreplaceable | f-secure.com
  • 2. Contents • F-Secure • Keeping timetables and promises • Finger-pointing • What is value stream mapping • Performing the work • Effects 2 February 11, 2013
  • 3. About F-Secure • Company • Founded in 1988, listed on NASDAQ OMX Helsinki • Market cap ca 350 m€, annual revenue ca 130 m€ (2010) • Headquartered in Helsinki, 18 country offices, presence in more than 100 countries • 812 people, 300+ in R&D, 5 R&D offices in 4 countries, Agile since 2005 • Products and Services • Online Security: Anti-Malware, e-mail filter, Browsing Protection, Parental Control • Content Protection: Online Backup, Anti-Theft • Online Storage and Services: Storage Platform, Sharing, Social Media Access • Multiple OS platforms (Win, Mac, Linux, mobile), 20+ language versions • Customers • Consumers (retail, reseller, e-store), millions of homes • Network operators (ISP, mobile), world leader with 200+ operator partners • Corporate 3 © F-Secure Public
  • 4. More than 200 operator partners globally and over 250 m broadband subscribers 4
  • 5. Why Are Timetables Important • Deliveries to important partners when they have planned for it • Market cycles • Customer commitments and penalties • Lack of reliability results in lack of business • Long-term planning assumes that delivery dates hold • Interdependent projects assume that delivery dates hold 5 February 11, 2013
  • 6. How Is It Usually With Schedules “Software programmien • Many companies, including us, suffer from late projects to aikataulut ei pidä” some degree • Deliveries with other than expected content • Deliveries with poor quality • Deliveries with outdated content • Deliveries that require a lot of support work “Projektit venyy ja paukkuu” 6 February 11, 2013
  • 7. What Do We Do To Fix The Problem Why don‟t you Why did you There‟s no deliver?! We said it‟s promise resources for risky!! whatever?! delivery!! Professional Sales Biz R&D Services Why do you Can‟t you Make up your plan without It‟s in the work faster?! mind!! us!! roadmap!! 7 February 11, 2013
  • 8. Does This Help? 8 February 11, 2013
  • 9. As Steve Denning Describes It.. 9 February 11, 2013 © F-Secure / Confidential
  • 10. What Is Value Stream Mapping Wikipedia: Value stream mapping is a lean manufacturing technique used to analyze and design the flow of materials and information required to bring a product or service to a consumer. 10 February 11, 2013
  • 11. Value Stream Mapping A value stream is all the activities (both value and non-value adding) currently required to bring a product through the main flows essential to every product: The design flow from concept to cash Activity Activity Activity Activity Customer demand pulls the work 11 February 11, 2013
  • 12. Productization Process (case: X) 1. May 2009 11. March 2010 10. Sep 2010 UX X Po Council Po Council X PSI1&2 dev Rescoping Kick-off Concepting Req.work Activity 6m 2,5m 5m 3w 2d Wait 2,3m 2w 1w Cumulative 16m 31. Jan 2011 9. May 2011 30. Jun 2011 17. Sep 2010 March 2011 Client, Backen PPSG Client, Backen Client, Backen X demo prod PSG RTM Req. added upgrade & fixes Decision d dev Delay RTM 1m d dev d dev 6,5m 1m 2,5m 1,5m 2d 27,5m 19. Oct 2011 Cost of Delay Cost of NNN kEur X times Delay ?! 1. Jul 2011 2 service X+1 releases, migration Package Production for Fixes, customization, Production for Proj. started script dev, packaging validation customer A migration, deployment operator [ ] rework, customization 2,5 1d 5d (estimated cal.time for all customers is Nm) Total 2,5 years Total 3 years Observations are missing from this11, 2013 12 February view © F-Secure Confidential
  • 13. What We Did • Case study VSM of an interesting project • Cooperation of different functions the gain different viewpoints • Gathering factual data • If someone believes a certain thing, that‟s a fact • All major steps and events from business decision to first delivery • Many observations about Quality project environment Technology • 5 workshops, 3 different groups, 3 hours each IT • Assessing generalizability of HR events Legal 13 February 11, 2013
  • 14. Results of Workshops • Unparallel visibility to what happens when we work • Concrete, undeniable data that everyone can grasp • No single function was doing their work poorly, but were not cooperating in a way that is optimized for the whole • Many disturbances will hit a long project • They will make it yet longer • Calendar time truly costs money • We have some consistent, irrational behavior as a company 14 February 11, 2013
  • 15. Reactions to Results • “So it‟s not just bad R&D work” • Realizing nobody had the big picture • Even execs • Shocked at the length of cycle time • Even execs • Realizing the cost of delay • Willingness to change big things • Desire for an improved value stream: New productization process “Eye opening experience” 15 February 11, 2013
  • 16. Current Status: Striving to Utilize Change Potential • Project „commandments‟ in preparation • „Future state‟ versions are in preparation • Root cause analysis taking place • Applying planning mechanisms to enable 3-month projects • Spreading knowledge • Major improvement targets for next year being specified 16 February 11, 2013
  • 17. Do you know how to improve your company? Are “They” preventing any improvement? Make it visual, make it concrete. Make a value stream map. 17 February 11, 2013

Editor's Notes

  • #12: Value stream map is a timeline of the major events that occur from the time the clock starts until it stops.