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Mary Poppendieck “It’s Not About Software”
- 1. lsoftware development
e a n
It’s Not About Working Software
First Build the Right Thing
mary@poppendieck.com Mary Poppendieck www.poppendieck.com
- 2. Gróf András (Andrew Grove)
Business goes on
to new heights
Strategic
Inflection Point
10x change in an element of the business.
What worked before doesn’t work now.
The executives are the last to know.
Business
declines
2 October 10 Copyright©2010 Poppendieck.LLC l e a n
From: Only the Paranoid Survive, by Andy Grove,
- 3. Is Agile Development
At An Inflection Point?
Version 1.0 – Contract Focus Version 2.0 – Development Focus Version 3.0* - Customer Focus
Processes and tools Individuals and Team vision and
Comprehensive interactions initiative
documentation Working software Validated learning
Contract negotiation Customer collaboration Customer discovery
Following a plan Responding to change Initiating Change
Inflection Point:
Customer Focus
1995 2000 2005 2010
3 October 10 l e a n
*Kent Beck, Startup Lessons Learned – April 23, 2010
Copyright©2010 Poppendieck.LLC http://www.justin.tv/startuplessonslearned/b/262656520
- 4. Team Vision and Initiative
There is nothing so useless as doing efficiently
that which should not be done at all. – Peter Durcker
Most products failures are caused by
a lack of Customers.
Not this: But this:
P
R
I
O
R
I
T
I
Z
E
D
l e a n
!
4 October 10 Copyright©2010 Poppendieck.LLC
- 5. Validated Learning
Consider the Entrepreneur – The Objective:
Starts out with no customers Minimum Viable Product
Does it do the job?
Assembles a business team: Will customers pay for it?
Marketing What do we need to learn next?
Development Repeat......multiple times
Quality Assurance Experiment – Learn – Adjust
Operations
First be sure that you are
Support
building the right thing,
Finance then be sure that you are
Others? building the thing right.
5 October 10 Copyright©2010 Poppendieck.LLC l e a n
- 6. Customer Discovery
Ethnography Ideation
Brilliant Systems are the result of a
matching of mental models between
those developing a system and those
who will be using the system.
6 October 10 Copyright©2010 Poppendieck.LLC l e a n
- 7. Initiating Change
WebSphere® Service Registry and Repository
10 month deadline – didn’t know the details
Solution: Get customer feedback
Early Access Program
Customers download new version each month
User feedback on discussion forum
Direct developer-customer interaction
Changed course midstream
User feedback beat marketing input
Phenomenal sales the first day of release
Customers knew they would get what they needed
Support Calls down by an order of magnitude
Mental model of users and developers matched
7 October 10 Copyright©2010 Poppendieck.LLC l e a n
- 8. Extra Features are the Biggest
Waste in Software Development
Features / Functions Used in a Typical System Cost of Complexity
Often / Always Rarely / Never
Used: 20% Used: 64%
Sometimes Rarely 19%
16%
Cost
Often 13%
Always 7%
Never 45%
Standish Group Study Reported at XP2002 by Jim Johnson, Chairman Time
The Biggest Opportunity to Increase Software
8
Development Productivity is to Write Less Code!
October 10 Copyright©2010 Poppendieck.LLC l e a n
- 9. Simplify First – Automate Last
Video Cassette Plant – early 1980’s
Pancake
Coat Slit Pancake Wind Package Ship
Pancake
Chemicals Mix
Parts Assemble
Supplies
MRP scheduled all purchases and sent orders to each workstation
Reliably shipped ~ 60% of weekly plan
Orders filled in ~ 6 weeks
A lot of expediting
9 October 10 Copyright©2010 Poppendieck.LLC l e a n
“If only you would try harder to do what the schedule says….”
- 10. From Push to Pull
Crisis at our Video Cassette Plant
Competition selling cassettes
for less than we could make them
Our Response
Statistical Analysis for Quality Immediate Results:
Improvement 95% of weekly plan
Just-in-Time (Lean) Production Orders filled in 2 weeks
The Great Coffee Cup Simulation No expediting
Pancake
Coat Slit Pancake Wind Package Ship
Pancake
Supplies
Chemicals Mix
10 October 10
Parts
Copyright©2010 Poppendieck.LLC l e a n
Assemble
- 11. Lessons Learned
1. It’s Not Luck; It’s Hard Work
Years of Quality Improvement
Statistical Analysis System
QA moved to the production line
Stop-the-Line Attitude
Months spent designing the details
Designed by production workers
Pre-dated Just-in-Time consultants
Leadership through all levels of line management
The design process WAS the training
2. Simplify First, Automate Last.
3. Consider the whole system, not just the software.
11 October 10 Copyright©2010 Poppendieck.LLC l e a n
- 12. Optimize the Whole
Optimizing a part of a system will always
sub-optimize the overall system.
Beware of Layer Teams!
“The” Business
F F F F F
Process e e e e e
a a a a a
Software t t t t t
u u u u u
Operations r r r r r
e e e e e
Support
12 October 10 Copyright©2010 Poppendieck.LLC l e a n
- 13. Case Study: Amazon.com
It’s all about scale.
2000 – Hit the wall
2001 – Started transition to services
Each Owned by a 2PT
All functions – including operations!
Encapsulate data and business logic
Basic Services and Consolidator Services
2009 – Completed Transition.
Conway’s Law
Organizations which design systems are constrained to produce designs
13 October 10 Copyright©2010 Poppendieck.LLC l e a n
which are copies of the communication structures of these organizations.
- 14. Cost Center Disease
Focus on cost reduction instead of delivering value.
Where is the disease most likely?
IT departments
Government Organizations
Outsourcing Companies
What’s Wrong with Cost Centers?
No way to focus on superior customer outcomes
No basis for trade-off decisions
No engagement
No passion
14 October 10 Copyright©2010 Poppendieck.LLC l e a n
- 15. Three IT Archetypes
Utility – Provide cost-effective, utility-like
reliability with constantly declining costs.
Supplier – Deliver application projects on time
and on budget, based on operating units’
requirements and priorities.
Partner – Create differentiating, competitive
solutions for the company’s customers,
suppliers, and internal users.
Source: Forrester Research
15 October 10 Copyright©2010 Poppendieck.LLC l e a n
- 16. Product-Centric Development
is a Hot New Trend †
*
16 October 10 Copyright©2010 Poppendieck.LLC l e a n
*(develop, operate, and manage your custom applications as ‘commercial’ software products)
†DaveWest & Roy Wildeman – Forrester, Dec. 2009
54% of surveyed companies favor product centric focus.
- 17. Disruptive Technologies
Stage One – Start-up Stage Four – Disruption
New technology finds an unmet need New low end product
Stage Two – Growth Faster, smaller, cheaper,
Move up-market for higher margins draws less power, etc.
But not good enough for
Stage Three – Flattening up-market customers
The product overshoots market needs Enters down-market and
finds an unmet need
Eventually grows up and
takes over the market
“The fact is that because of the cloud,
today a young upstart can take market
share without an incumbent having
time to react.” – Werner Vogles, Amazon.com
17 October 10
Werner Vogels
Amazon.com
Copyright©2010 Poppendieck.LLC l e a n
- 18. Case Studies
GE Healthcare
“We realized that the biggest
impediment was that we were
selling what we were making
[rather than] making what the
customers here needed.”*
The MAC-i: EKG’s for Rs 9
“Our engineering and marketing teams now interact
closely with the customers here [in India] to understand
their requirements. We look at their work flow, their
environmental limitations, their profitability issues and
The Vscan: $8000 Ultrasound unit other factors and we then price, design and manufacture
the size of a mobile phone. Based
on designs originating in China, it
will revolutionize global healthcare.
18 October 10 Copyright©2010 Poppendieck.LLC l e a n
the products accordingly”** **Ashish Shah, general manager,
global technology, GE Healthcare
*V. Raja, president and CEO of GE Healthcare-South Asia.
- 19. A Tale of Two Terminals
London Heathrow,
Terminal 5
300,000 sq m
$8.76 billion
7 years
Opened March 27, 2008
Beijing Capital Airport,
Terminal 3
986,000 sq m ~ 3 times larger
$3.80 billion ~ Half the cost
3.75 years ~ Half the time
19
Opened March 26, 2008
October 10 Copyright © 2007 Poppendieck.llc l e a n
- 20. Baggage Handling System
Beijing Capital Airport, Terminal 3 London Heathrow, Terminal 5
19,200 bags / hour Baggage handling chaos the first day
68 km of conveyers 500 flights canceled
5 min. plane to claim Up to 4 hour wait to claim baggage
0.23% handling errors in 2008 28,000 bags piled up the first weekend
Multiple operational test runs (Dec-Jan) Workers warned management that their
20
8,000+ mock passengers
Ran on a trial basis for a month (Feb)
October 10 l e a n
training was inadequate. But the planned
full scale startup “could not be delayed”.
Copyright © 2007 Poppendieck.llc
- 21. Social-Technical Systems
Early 1950’s: Mechanization In The English Coal Mines*
Mechanization broke up tightly knit teams that used to perform
the entire extraction process from blasting to hauling to sorting.
Different people performed the various steps on different shifts
Caused coordination problems.
The equipment was so loud people could not communicate
Inhibited teamwork.
People felt alone, isolated, and unappreciated deep in the earth.
Destroyed pride, satisfaction and belonging.
Pay system: from group incentive to hourly wage
Destroyed monetary motivation.
21 October 10 Copyright © 2007 Poppendieck.llc l e a n
The overall result: Decreased productivity and labor strife.
* Eric Trist and Fred Emery; Tavistock Institute
- 22. Principles of
Social-Technical Systems
Technical Social
Includes: Responsible Autonomy
machinery Semi-autonomous groups
processes
Internal leader
physical arrangement
Adaptability
Joint optimization:
Group decides how to respond
Social and technical systems must
be balanced and integrated. to complexity and uncertainty
Reliable processes: Whole Tasks
End-to-end responsibility born
A bad process will defeat a good
person every time. by small cohesive group
Built-in quality: Meaningful Tasks
22
You can’t test quality in!
October 10 Copyright © 2007 Poppendieck.llc l e a n
Commitment; not compliance
- 23. Open Source
A New Social-Technical System?
The Impossible Public Good?
The “Tragedy of the Commons” does not apply
Defies all known social and economic theory
Incredibly stable No monetary rewards or sanctions
23
Impossibly complex
October 10 Copyright©2010 Poppendieck.LLC l e a n
No central authority in the traditional sense
- 24. Is Open An Inflection
Source Point?
Motivation 2.0 Motivation 3.0
Extrinsic motivation Intrinsic motivation
Pay for time Treat Workers like Volunteers
Economics 2.0 Economics 3.0
The key scarcity which The key scarcity is the time, energy &
drives decisions is capital brainpower of bright, creative people
Coordination 2.0 Coordination 3.0
Leaders direct followers Leaders recruit followers
No option to opt-out There is always an option to opt-out
Passion 2.0 Passion 3.0
Winning the Game
24 October 10 Copyright©2010 Poppendieck.LLC l e a n
First of all, I need to know Why?
- 25. The Future Belongs to You
Motivation 3.0 Economics 3.0
Autonomy The new scarcity:
Mastery The time, energy and brainpower
Purpose of bright, creative people.
Passion 3.0
Coordination 3.0 Start with the Why.
Leaders attract followers. Invest your time and
Wisdom is found at the worksite. energy in your passion.
You are the core of the new economy.
You can change the world.
25 October 10 Copyright©2010 Poppendieck.LLC l e a n
- 26. lsoftware development
e a n
Thank You!
More Information: www.poppendieck.com
mary@poppendieck.com Mary Poppendieck www.poppendieck.com