Agile Operations Fundamentals
Agile Operations Fundamentals
Agile Operations Fundamentals
1 Pattern introduction
2 Operate Agile 1 - Team
3 Operate Agile 2 - Leaders
4 Mobilizing the team for process improvement
@ IBM 5 Understand
6 Agile Value Stream Mapping
Agile Operations
7 Explore
8 Test - Validate - Implement
Fundamentals 9
10
Metrics and Measures
Tips, pitfalls and tricks
Introduction Agile Academy Curriculum
Agile Practitioner
Operations Fundamentals Program / Project Fundamentals Strategy Fundamentals
Agile Professional
Business Operations Dev. Ops Agile Leadership
Development Deployment
Testing Infrastructure
Agile
Project / Iteration / Change Management
Agile Expert
Team Coaching Executive Coaching
Introduction What is Operations?
• Business as usual
Examples
• Recruitment
• Budgeting
• Call centers
• Supply chain
• Software operations
Introduction Focus area of the course!
Strategy &
Governance Strategy & Governance Pattern
Pattern Program Execution Pattern
Program Operation
Operation Execution Pattern
Execution Execution
Pattern Pattern
Agile Operations
7 Explore
8 Test - Validate - Implement
Fundamentals 9
10
Metrics and Measures
Tips, pitfalls and tricks
Introduction Purpose and Target Audience
the people in
The target audience is: their managers
the teams
Happy Operations!
Course Topics
1 Pattern introduction
2 Operate Agile 1 - Team
3 Operate Agile 2 - Leaders
4 Mobilizing the team for process improvement
@ IBM 5 Understand
6 Agile Value Stream Mapping
Agile Operations
7 Explore
8 Test - Validate - Implement
Fundamentals 9
10
Metrics and Measures
Tips, pitfalls and tricks
Pattern Introduction The three Agile patterns that cover all work!
Strategy &
Governance Strategy & Governance Pattern
Pattern Program Execution Pattern
Program Operation
Operation Execution Pattern
Execution Execution
Pattern Pattern
OPERATE
Manage / Evolve
Agile Operations
7 Explore
8 Test - Validate - Implement
Fundamentals 9
10
Metrics and Measures
Tips, pitfalls and tricks
Operate Agile 1 - Team What does an Operational Team have to do to be Agile…
OPERATE
Manage / Evolve
TEAM
Social Practices Process Practices Improvement Practices
Social contract/ Visualize work (Kanban boards + Metrics and measures
mood marbles VSM + BVC) Point Kaizen
Pull and do the work Showcase / Retro / Celebrate
Operate Agile 1 - Team Identify the process …then the team
request discuss
price prepare
prepare
check
polish
quality
VALUE STREAM
on time bullying
Keep it simple
Keep it low tech
Keep it visible
Operate Agile 1 - Team The social contract
Mood Marbles
feeling optimistic
feeling tired
feeling anxious
Process Practices
Operate Agile 1 - Team Agile Value Stream Mapping
request discuss
240 price prepare
10 prepare
check
polish
30 quality
PE% = x%
VALUE STREAM
TO DO DOING DONE
flow
Improvement Practices
Operate Agile 1 - Team BVCs
Metrics
Cycle time
Throughput
Unit Cost
Customer sat
Team Sat
Risks
Issues
Team info
Operate Agile 1 - Team Operate – Point Kaizen
Improvement Actions
1 2 3
Operate Agile 1 - Team Showcases
OPERATE
Manage / Evolve
TEAM
Social Practices Process Practices Improvement Practices
Social contract/ Visualize work (Kanban boards + Metrics and measures
mood marbles VSM + BVC) Point Kaizen
Pull and do the work Showcase / Retro / Celebrate
Operate Agile 1 - Team Just get started…
Social Practices
Process Practices
Improvement Practices
Course Topics
1 Pattern introduction
2 Operate Agile 1 - Team
3 Operate Agile 2 - Leaders
4 Mobilizing the team for process improvement
@ IBM 5 Understand
6 Agile Value Stream Mapping
Agile Operations
7 Explore
8 Test - Validate - Implement
Fundamentals 9
10
Metrics and Measures
Tips, pitfalls and tricks
Operate Agile 2 - Leaders What the leaders should do in the operate mode…
OPERATE
Manage / Evolve
Leaders
request discuss
price prepare
prepare
check
polish
quality
Team of Teams
VALUE STREAM
Operate Agile 2 - Leaders Clarity of Vision, Mission, Objectives and Goals
Vision
Goals
SMART Specific
Objectives
Measurable
Mission Attainable
Relevant
Time Bound
Operate Agile 2 - Leaders Goal Grid
I II
YES
ACHIEVE PRESERVE
DO WE WANT IT?
NO III IV
AVOID ELIMINATE
NO YES
DO WE HAVE IT?
Operate Agile 2 - Leaders Inspire and encourage improvement
FUNNEL OF FUNNEL OF
OPERATIONAL WORK PROJECTS
Strategic projects
Improvement projects
Audits
Other work that is not normal
operational work
Operate Agile 2 - Leaders Observe the process of work with a view to improve
Retrospectives and
action follow-up
OPERATE
Manage / Evolve
Leaders
Agile Operations
7 Explore
8 Test - Validate - Implement
Fundamentals 9
10
Metrics and Measures
Tips, pitfalls and tricks
Mobilizing the team for
process improvement Once the problem has been identified….Mobilize the team
OPERATE
Manage / Evolve
Define job
Advertise Select Offer Onboard
requirement
1 2 3
Mobilizing the team for
process improvement Who should be in the improvement team?
1 2 3
Get a couple of reps
from each group that Finance for Marketing etc
know the process well. salary? HR training
Mobilizing the team for
process improvement What are the roles and responsibilities?
Improvement Workshop
Agenda
1. Intro
2. As-is Agile Value Stream Mapping
3. Problem definition
4. Desired Outcome BHAG (Big Hairy Audacious Goals)
5. Solution hypothesis
6. To-Be Value stream design Actions
workshop
where? when? who? how? why?
Facilitator +
Mobilizing the team for
process improvement Once the problem has been identified….Mobilize the team
OPERATE
Manage / Evolve
Agile Operations
7 Explore
8 Test - Validate - Implement
Fundamentals 9
10
Metrics and Measures
Tips, pitfalls and tricks
Understand Understand the current situation and the desired outcome
OPERATE
Manage / Evolve
Key Numbers
1. Unit cost per transaction
2. Cycle time
3. Throughput
4. Defect rate
5. Staff morale
6. Attrition rate
7. Customer Satisfaction
• Know the trend over the last 6 months at least!
Understand Current Problems / Challenges / Blockers
The Problem
why?
What could have been improved? CAUSE 16
CAUSE 10
CAUSE 12
CAUSE 15 CAUSE 17
CAUSE 11
CAUSE 18
CAUSE 13 CAUSE 14
Objectives
Vision
Mission The desired outcome
Goals
Strategy
Understand Understand the value drivers
Reduce Improve
Unit Cost Cycle Time
Value
Improve Increase
Quality Throughput
Improve
Customer
Satisfaction
Understand Goals must be SMART!
S M A R T
specific measureable attainable relative time based
Understand Facilitated Workshop
workshop
Understand Shared Understanding
OPERATE
Manage / Evolve
OPERATE
Manage / Evolve
Agile Operations
7 Explore
8 Test - Validate - Implement
Fundamentals 9
10
Metrics and Measures
Tips, pitfalls and tricks
Agile Value Stream Mapping What is Agile Value Stream Mapping (VSM)?
to manufacturing processes
Agile Value Stream Mapping Agile VSM Rules
Level 2 Map the as-is process at Level 2 within DEPT MGR HR ADVISOR AD AGENCY RECRUITMENT
the swim lanes using sticky notes COMPANY
AT 10 Identify
(connect with string if needed) vacancy
WT 480
Write Check /
Estimate average Activity Time per step (AT) AT 15 job description approve
and Wait Time (WT) in between steps in min Receive
(one day =480min) approval
Send to Receive
recruiter job
Agile Value Stream Mapping What is Agile Value Stream Mapping (VSM)?
PE = 6.49 %
PROCESS EFFICIENCY (PE)
PE % = AT / TCT
PE % = ( 50 / 770 ) X 100 = 6.49 %
Agile Value Stream Mapping Identify opportunities for improvements
10
Identify vacancy
CAN WE
REDUCE Receive Approval
THIS?
Map reality – not what it should be or what the process document says it should be
Keep it simple… don’t bother LEAN icons and rules for now
Agile Operations
7 Explore
8 Test - Validate - Implement
Fundamentals 9
10
Metrics and Measures
Tips, pitfalls and tricks
Explore Explore options for improvement…
OPERATE
Manage / Evolve
• Set a BHAG
• Review your Retrospective and Root Cause Analysis
• VSM (to-be)
- Options for removing bottlenecks
- Options for eliminating waste
• Decide on work to be done to improve
Explore What is Agile Value Stream Mapping (VSM)?
10
Identify vacancy
CAN WE
REDUCE Receive Approval
THIS?
It’s amazing how it can transform teams and drive them to innovate!
Explore Set a Big Hairy Audacious Goal!!
QUALITY
TEAM CUSTOMER
SATISFACTION SATISFACTION
UNIT COST
Explore Retrospective
INSIGHTS
Continue Doing
Start Doing
Stop Doing
Explore Symptoms and Root Causes
Symptoms
Problem
Cause Cause
Cause Cause
Explore Root Cause Analysis
Why?
because
Why?
because
Why?
because
Why?
because
Why?
because
Explore Root Cause Analysis
Ca
Ca
Ca
us
us
us
REASON REASON REASON
e
REASON REASON REASON
SUBJECT
se
se
u
u
Ca
Ca
Ca
REASON REASON REASON
10
Identify vacancy
CAN WE
REDUCE Receive Approval
THIS?
Inventory
Excess products and materials
not being processed.
1/ 8
Explore 8 Wastes: Lean Six Sigma
Talent
Underutilizing people’s talents,
skills & knowledge.
2/ 8
Explore 8 Wastes: Lean Six Sigma
Waiting
Wasted time waiting for the next
step in a process.
3/ 8
Explore 8 Wastes: Lean Six Sigma
Motion
Unnecessary movements by
people (e.g., walking).
4/ 8
Explore 8 Wastes: Lean Six Sigma
Defects
Efforts caused by rework, scrap,
& incorrect information.
5/ 8
Explore 8 Wastes: Lean Six Sigma
Transportation
Unnecessary movements of
products & materials.
6/ 8
Explore 8 Wastes: Lean Six Sigma
Overprocessing
More work or higher quality than
is required by the customer.
7/ 8
Explore 8 Wastes: Lean Six Sigma
Overproduction
Production that is more than
needed or before it is needed.
8/ 8
Explore 8 Wastes: Lean Six Sigma
Muda
8 wastes
Mura Muri
Unevenness Over Burdening
Explore What are bottlenecks?
Slow Flows
Explore Optimizing the bottleneck first
COMPLEXITY
PEOPLE RESOURCES
OF WORK
Increase Decrease
efficiency of input to
bottleneck bottleneck
• Make sure its free of defect input • Manage the onramp
• Improve the process (reduce wasteful steps)
• Automate
• Up-skill and train
• Reschedule work
• Increase work time
• Minimize down time
Notice how adding
• Add more resources more resources is
the last option!
Explore Kaizen
Continuous Improvement
10
Identify vacancy
CAN WE
REDUCE Receive Approval
THIS?
SOLUTION
SOLUTION SOLUTION
PROS CONS
SOLUTION
PROBLEM
SOLUTION
SOLUTION
Explore Explore options for improvement…
OPERATE
Manage / Evolve
• Set a BHAG
• Review your Retrospective and Root Cause Analysis
• VSM (to-be)
- Options for removing bottlenecks
- Options for eliminating waste
• Decide on work to be done to improve
Course Topics
1 Pattern introduction
2 Operate Agile 1 - Team
3 Operate Agile 2 - Leaders
4 Mobilizing the team for process improvement
@ IBM
5 Understand
6 Agile Value Stream Mapping
Agile Operations
7 Explore
8 Test - Validate - Implement
Fundamentals 9
10
Metrics and Measures
Tips, pitfalls and tricks
Test - Validate - Implement Explore options for improvement…
OPERATE
Manage / Evolve
OPERATE
Manage / Evolve
At start of Iteration
Work
0 1 2 n Showcase
At end of Iteration
Iteration zero
is the setup iteration
Retrospective
Test - Validate - Implement Update your standards as you improve…
Test - Validate - Implement Celebrate and trumpet success
Test - Validate - Implement Then start all over again...
OPERATE
Manage / Evolve
SUCCESS
what people think it looks like What it really looks like
Test - Validate - Implement Implementation
Agile Operations
7 Explore
8 Test - Validate - Implement
Fundamentals 9
10
Metrics and Measures
Tips, pitfalls and tricks
Metrics and Measures Key Metrics on a balanced score card
FINANCIAL
CUSTOMER
• Total cost UNIT COST • SLA
SAT. +
PER TRANS.
# OF DEFECTS
PEOPLE CUSTOMER
THROUGHPUT
PROCESS
Metrics and Measures 6 Golden Metrics
Outcome
Behavior
Process
Metrics and Measures Remember it’s all about trends...
Avoid
Vanity Metrics
Metrics and Measures Vanity Metrics
Increasing
Pageviews
Flat Revenue
Metrics and Measures Vanity Metrics
Up to date
Simple
Visible
Metrics and Measures
DISCIPLINE
It’s the difference between good and great.
Course Topics
1 Pattern introduction
2 Operate Agile 1 - Team
3 Operate Agile 2 - Leaders
4 Mobilizing the team for process improvement
@ IBM 5 Understand
6 Agile Value Stream Mapping
Agile Operations
7 Explore
8 Test - Validate - Implement
Fundamentals 9
10
Metrics and Measures
Tips, pitfalls and tricks
Tips And Tricks Pitfalls to watch out for!!
Paralysis by analysis
get better
- One to two months
Have fun ?
- Celebrate success
Agile Operations
7 Explore
8 Test - Validate - Implement
Fundamentals 9
10
Metrics and Measures
Tips, pitfalls and tricks
Tips And Tricks The three Agile patterns that cover all work!
Strategy &
Governance Strategy & Governance Pattern
Pattern Program Execution Pattern
Program Operation
Operation Execution Pattern
Execution Execution
Pattern Pattern
OPERATE
Manage / Evolve
workshop
where? when? who? how? why?
Facilitator +
Tips And Tricks What is Agile Value Stream Mapping (VSM)?
10
Identify vacancy
CAN WE
REDUCE Receive Approval
THIS?
ok not ok
feeling tired
Keep it low tech
feeling under the weather
Keep it visible
feeling anxious
Tips And Tricks
Agile Operations
7 Explore
8 Test - Validate - Implement
Fundamentals 9
10
Metrics and Measures
Tips, pitfalls and tricks