Business Value of
Lean Leadership
22AttributesofSuccessfulBusiness
Executives,Directors,andManagers
Twitter: @dr_david_f_rico
Website: http://www.davidfrico.com
LinkedIn: http://www.linkedin.com/in/davidfrico
Agile Capabilities: http://davidfrico.com/rico-capability-agile.pdf
Agile Cost of Quality: http://www.davidfrico.com/agile-vs-trad-coq.pdf
DevOps Return on Investment (ROI): http://davidfrico.com/rico-devops-roi.pdf
Dave’s NEW Business Agility Video: http://www.youtube.com/watch?v=hTvtsAkL8xU
Dave’s NEWER Scaled Agile Framework SAFe 4.5 Video: http://youtu.be/1TAuCRq5a34
Dave’s NEWEST Development Operations Security Video: http://youtu.be/X22kJAvx44A
DoD Fighter Jets versus Amazon Web Services: http://davidfrico.com/dod-agile-principles.pdf
Principles of Collaborative Contracting: http://davidfrico.com/collaborative-contract-principles.pdf
Author Biography
 36+ years in IT industry
 Oversees large IT portfolio
 Cloud, Lean, & Agile leader
 Numerous books & papers
 Cost-benefit thought leader
 Agile & CMMI ROI expert
 Frequent public speaker
 PMP, CSEP, EBAS, SAFe
 Teaches at 7 universities
2
LEAN Leadership Principles
3
 Guide organizations to deliver new impactful products and services at the speed-of-light.
 Reduce risk using millions of inexpensive learning loops per day to uncover tacit market needs.
 Apply digital transformation principles to increase value and reduce waste, defects, and cycle-time.
Servant Leadership
lead·er·ship (lē′dәr-shĭp′) Guide,
shepherd, direct, influence, inspire;
To show the path forward.
 Recognized lean thinker
 Promotes lean principles
 Builds a lean organization
RESULT: Lean organizational change
institutionalizes much faster
4
con·ver·sa·tion (kŏn′vәr-sā′shәn)
Chat, discuss, exchange, dialogue;
To exchange thoughts, feelings.
 Daily F2F communications
 Mostly casual and informal
 Unstructured conversation
RESULT: Lean just-in-time exchange of
up-to-date information/data
5
Conversationally Rich
col·lab·o·ra·tive (kә-lăb′ә-rә-tĭv)
Cooperative, synergistic, together;
To create a new idea together.
 Extremely small teams
 Work in collaborative pairs
 Temporary as-needed basis
RESULT: Lean innovations developed
and delivered extremely fast
6
Highly Collaborative
vi·su·al (vĭzh′o͞o‐əl) Draw, paint,
picture, model, illustrate, elucidate;
To communicate with images.
 Simple, informal visuals
 More pictures than words
 Low cost, easy to maintain
RESULT: Lean information exchanged
holistically and completely
7
Visually Intensive
so·cial (sō′shәl) Friendly, congenial,
kind, amicable, intimate, neighborly;
To interact in a positive way.
 A congenial workplace
 Make it informal, intimate
 Conducive to cooperation
RESULT: Lean performance optimizes,
balances, and stabilizes
8
Social Atmosphere
em·pow·er (ĕm-pou′әr) Delegate,
permit, endow, entitle, authorize;
To grant equal decision rights.
 Delegate power, authority
 Instill employee ownership
 Bottom up decision making
RESULT: Lean performance is enabled
to reach peak speed/quality
9
Empowerment Oriented
fo·cused (fō′kәst) Aim, point, direct,
zero-in, undivided, concentrate on;
To concentrate on a single task.
 Do one small task at a time
 Prepare, start, and finish
 Minimize interruptions
RESULT: Lean speed, quality, cycle
time, performance improve
10
Focused Single Tasking
light·en (līt′әn) Ease, decrease,
lessen, remove, relieve, alleviate;
To decrease size of a large task.
 Decrease task sizes
 Build in excess capacity
 Allow time to be productive
RESULT: Lean throughput, lead time,
cycle time, quality improve
11
Lightened Workloads
bal·anced (băl′әnst) Level, match,
align, smooth, equalize, harmonize;
To harmonize opposing forces.
 Match demand to capacity
 Pull work through system
 Start work you can finish
RESULT: Lean wait time, bottlenecks,
queues and delays reduced
12
Balanced Workflow
prod·uct (prŏd′әkt) Wares, goods,
yield, output, release, merchandise;
To deliver a valuable request.
 Establish value streams
 Deliver small products fast
 Create product ecosystems
RESULT: Lean value creation achieved
via rapid product feedback
13
Product Orientation
ex·per·i·ment (ĭk-spĕr′ә-mәnt) Test,
trial, probe, model, sample, prototype;
To gather rapid data from a test.
 Form business hypotheses
 Develop fast, low-cost tests
 Gather feedback and repeat
RESULT: Lean throughput, value, and
performance achieved fast
14
Small Experiments
batch·es (băch′әs) Group, set, lot,
pack, bunch, collection, aggregate;
To order a large amount of jobs.
 Decrease batch sizes
 Shorten delivery times
 Plan for fast turnaround
RESULT: Lean lead, cycle time, and
feedback cycles decreased
15
Extremely Small Batches
one·piece (wŭn′pēs) Single, only,
isolated, solitary, discrete, individual;
To order one element at a time.
 One requirement at a time
 Make requirements small
 Deploy requirement fast
RESULT: Lean performance, feedback,
and value achieved quickly
16
One-Piece Workflow
min·i·mal (mĭn′ә-mәl) Easy, small,
simple, elementary, uncomplicated;
To create a very simple solution.
 Form very simple designs
 Independent as possible
 Create a single function
RESULT: Lean lead times, cycle times,
and delivery speeds increase
17
Minimalistic Design
e·mer·gent (ĭ-mûr′jәnt) Grow, form,
rise, evolve, unfold, develop, mature;
To gradually evolve a solution.
 Gradually create designs
 Grow and evolve solutions
 Adapt to unplanned change
RESULT: Lean customer value reached
very quickly and completely
18
Emergent Architecture
mod·u·lar (mŏj′ә-lәr) Unit, chunk,
block, interchangeable component;
To make small independent units.
 Create small services
 Functionally independent
 Amalgamate to ecosystems
RESULT: Lean value is achieved fast,
efficiently, and effectively
19
Modularized Microservices
dev-ops (dĕv′ŏps) Early, automated,
iterative, fast, test, integrate, deploy;
To automate test and deployment.
 Automate version control
 Automate end-to-end tests
 Create automated pipelines
RESULT: Lean balance of work flows,
demand and value achieved
20
Intense DevOps Automation
de·ploy (dĭ-ploi′) Send, ship, deliver,
launch, release, install, distribute;
To quickly deploy small services.
 Create small microservices
 Automatic test and certify
 Fast automatic deploys
RESULT: Lean workflow, effectiveness,
efficiency, value, & feedback
21
Frequent Small Deployments
cy·cle·time (sī′kәl-tīm) Effort, hours,
duration, schedule, throughput, interval;
To accelerate end-to-end delivery.
 Mapend-to-endvaluestream
 Eliminate low-value activity
 Automate manual process
RESULT: Lean workflow fast, efficient,
value adding, & inexpensive
22
Fast End-to-End Cycle Times
in·no·vate (ĭn′ә-vāt′) Invent, create,
new, fresh, original, novelty, futuristic;
To create new original solution.
 More up-front designers
 Fast small experimentation
 Automated backend deploy
RESULT: Lean value adding product
and service development
23
Shift-Left Innovation
meas·ure (mĕzh′әr) Count, quantify,
qualify, appraise, assess, evaluate;
To quickly assess customer value.
 Quickly market prototypes
 Assess customer reaction
 Optimize customer value
RESULT: Lean end-to-end enterprise
value creation & optimization
24
Customer Measurement
im·prove (ĭm‐pro͞ov′) Fix, enhance,
amend, refine, polish, purify, perfect;
To make fast frequent correction.
 Frequently retrospect
 Radical process redesign
 Quickly implement changes
RESULT: Lean end-to-end efficiency,
effectiveness & market value
25
Relentless Improvement
26
Summary
 Servant Leadership
 Extremely Small Batches
 Business Experimentation
 Simple Minimalistic Designs
 Emergent & Evolutionary Design
 Small, Highly-Collaborative Teams
 Focused, Single-Tasking, Limited WIP
 Long-Lived Value Streams & Budgeting
 Rich, High-Context Informal Conversations
 End-to-End Fully Automated DevOps Pipelines
 Level Workflow by Matching Capacity to Demand
 One-Piece Workflow & Frequent Small Deployments
 Highly-Modularized Design-Independent Microservices
 Excess Capacity for Fewer High-Value Adding Innovations
 Frequent Qualitative & Quantitative Customer Measurements
 Continuous Improvement, Adaptation to Change, Pivot & Move
 Radical End-to-End Value Stream Lead & Cycle Time Reductions
 Simple Visualization, Openness, and Transparent Communications
 Happy, Healthy, & Informal Social Relationships, Trust, & Attitudes
 Empowerment, Employee Ownership, & Frontline Bottoms-Up Decision-Making
 Shift-Left Thinking--More People Creating & Innovating than Testing & Validating
27
Dave’s Capabilities
Software
Quality
Mgt.
Technical
Project
Mgt.
Software
Development
Methods
Leadership &
Org. Change
Systems
Engineering
Cost Estimates
& Scheduling
Acquisition &
Contracting
Strategy &
Roadmapping
Lean, Kanban,
& Six Sigma
Modeling &
Simulations
Big Data,
Cloud, NoSQL
Workflow
Automation
Metrics,
Models, & SPC
BPR, IDEF0,
& DoDAF
DoD 5000,
TRA, & SRA
PSP, TSP, &
Code Reviews
CMMI &
ISO 9001
Innovation
Management
Statistics, CFA,
EFA, & SEM
Research
Methods
Evolutionary
Design
Valuation — Cost-Benefit Analysis, B/CR, ROI, NPV, BEP, Real Options, etc.
Lean-Agile — Scrum, SAFe, Continuous Integration & Delivery, DevOpsSec, etc.
STRENGTHS – Data Mining  Gathering & Reporting Performance Data  Strategic Planning  Executive & Manage-
ment Briefs  Brownbags & Webinars  White Papers  Tiger-Teams  Short-Fuse Tasking  Audits & Reviews  Etc.
● Data mining. Metrics, benchmarks, & performance.
● Simplification. Refactoring, refinement, & streamlining.
● Assessments. Audits, reviews, appraisals, & risk analysis.
● Coaching. Diagnosing, debugging, & restarting stalled projects.
● Business cases. Cost, benefit, & return-on-investment (ROI) analysis.
● Communications. Executive summaries, white papers, & lightning talks.
● Strategy & tactics. Program, project, task, & activity scoping, charters, & plans.
PMP,CSEP,
EBAS,BAF,FCP,
FCT,ACP,CSM,
DEVOPS,&
SAFE
36+ YEARS
IN IT
INDUSTRY

Lean & Agile Thinking Principles for Leaders

  • 1.
    Business Value of LeanLeadership 22AttributesofSuccessfulBusiness Executives,Directors,andManagers Twitter: @dr_david_f_rico Website: http://www.davidfrico.com LinkedIn: http://www.linkedin.com/in/davidfrico Agile Capabilities: http://davidfrico.com/rico-capability-agile.pdf Agile Cost of Quality: http://www.davidfrico.com/agile-vs-trad-coq.pdf DevOps Return on Investment (ROI): http://davidfrico.com/rico-devops-roi.pdf Dave’s NEW Business Agility Video: http://www.youtube.com/watch?v=hTvtsAkL8xU Dave’s NEWER Scaled Agile Framework SAFe 4.5 Video: http://youtu.be/1TAuCRq5a34 Dave’s NEWEST Development Operations Security Video: http://youtu.be/X22kJAvx44A DoD Fighter Jets versus Amazon Web Services: http://davidfrico.com/dod-agile-principles.pdf Principles of Collaborative Contracting: http://davidfrico.com/collaborative-contract-principles.pdf
  • 2.
    Author Biography  36+years in IT industry  Oversees large IT portfolio  Cloud, Lean, & Agile leader  Numerous books & papers  Cost-benefit thought leader  Agile & CMMI ROI expert  Frequent public speaker  PMP, CSEP, EBAS, SAFe  Teaches at 7 universities 2
  • 3.
    LEAN Leadership Principles 3 Guide organizations to deliver new impactful products and services at the speed-of-light.  Reduce risk using millions of inexpensive learning loops per day to uncover tacit market needs.  Apply digital transformation principles to increase value and reduce waste, defects, and cycle-time.
  • 4.
    Servant Leadership lead·er·ship (lē′dәr-shĭp′)Guide, shepherd, direct, influence, inspire; To show the path forward.  Recognized lean thinker  Promotes lean principles  Builds a lean organization RESULT: Lean organizational change institutionalizes much faster 4
  • 5.
    con·ver·sa·tion (kŏn′vәr-sā′shәn) Chat, discuss,exchange, dialogue; To exchange thoughts, feelings.  Daily F2F communications  Mostly casual and informal  Unstructured conversation RESULT: Lean just-in-time exchange of up-to-date information/data 5 Conversationally Rich
  • 6.
    col·lab·o·ra·tive (kә-lăb′ә-rә-tĭv) Cooperative, synergistic,together; To create a new idea together.  Extremely small teams  Work in collaborative pairs  Temporary as-needed basis RESULT: Lean innovations developed and delivered extremely fast 6 Highly Collaborative
  • 7.
    vi·su·al (vĭzh′o͞o‐əl) Draw,paint, picture, model, illustrate, elucidate; To communicate with images.  Simple, informal visuals  More pictures than words  Low cost, easy to maintain RESULT: Lean information exchanged holistically and completely 7 Visually Intensive
  • 8.
    so·cial (sō′shәl) Friendly,congenial, kind, amicable, intimate, neighborly; To interact in a positive way.  A congenial workplace  Make it informal, intimate  Conducive to cooperation RESULT: Lean performance optimizes, balances, and stabilizes 8 Social Atmosphere
  • 9.
    em·pow·er (ĕm-pou′әr) Delegate, permit,endow, entitle, authorize; To grant equal decision rights.  Delegate power, authority  Instill employee ownership  Bottom up decision making RESULT: Lean performance is enabled to reach peak speed/quality 9 Empowerment Oriented
  • 10.
    fo·cused (fō′kәst) Aim,point, direct, zero-in, undivided, concentrate on; To concentrate on a single task.  Do one small task at a time  Prepare, start, and finish  Minimize interruptions RESULT: Lean speed, quality, cycle time, performance improve 10 Focused Single Tasking
  • 11.
    light·en (līt′әn) Ease,decrease, lessen, remove, relieve, alleviate; To decrease size of a large task.  Decrease task sizes  Build in excess capacity  Allow time to be productive RESULT: Lean throughput, lead time, cycle time, quality improve 11 Lightened Workloads
  • 12.
    bal·anced (băl′әnst) Level,match, align, smooth, equalize, harmonize; To harmonize opposing forces.  Match demand to capacity  Pull work through system  Start work you can finish RESULT: Lean wait time, bottlenecks, queues and delays reduced 12 Balanced Workflow
  • 13.
    prod·uct (prŏd′әkt) Wares,goods, yield, output, release, merchandise; To deliver a valuable request.  Establish value streams  Deliver small products fast  Create product ecosystems RESULT: Lean value creation achieved via rapid product feedback 13 Product Orientation
  • 14.
    ex·per·i·ment (ĭk-spĕr′ә-mәnt) Test, trial,probe, model, sample, prototype; To gather rapid data from a test.  Form business hypotheses  Develop fast, low-cost tests  Gather feedback and repeat RESULT: Lean throughput, value, and performance achieved fast 14 Small Experiments
  • 15.
    batch·es (băch′әs) Group,set, lot, pack, bunch, collection, aggregate; To order a large amount of jobs.  Decrease batch sizes  Shorten delivery times  Plan for fast turnaround RESULT: Lean lead, cycle time, and feedback cycles decreased 15 Extremely Small Batches
  • 16.
    one·piece (wŭn′pēs) Single,only, isolated, solitary, discrete, individual; To order one element at a time.  One requirement at a time  Make requirements small  Deploy requirement fast RESULT: Lean performance, feedback, and value achieved quickly 16 One-Piece Workflow
  • 17.
    min·i·mal (mĭn′ә-mәl) Easy,small, simple, elementary, uncomplicated; To create a very simple solution.  Form very simple designs  Independent as possible  Create a single function RESULT: Lean lead times, cycle times, and delivery speeds increase 17 Minimalistic Design
  • 18.
    e·mer·gent (ĭ-mûr′jәnt) Grow,form, rise, evolve, unfold, develop, mature; To gradually evolve a solution.  Gradually create designs  Grow and evolve solutions  Adapt to unplanned change RESULT: Lean customer value reached very quickly and completely 18 Emergent Architecture
  • 19.
    mod·u·lar (mŏj′ә-lәr) Unit,chunk, block, interchangeable component; To make small independent units.  Create small services  Functionally independent  Amalgamate to ecosystems RESULT: Lean value is achieved fast, efficiently, and effectively 19 Modularized Microservices
  • 20.
    dev-ops (dĕv′ŏps) Early,automated, iterative, fast, test, integrate, deploy; To automate test and deployment.  Automate version control  Automate end-to-end tests  Create automated pipelines RESULT: Lean balance of work flows, demand and value achieved 20 Intense DevOps Automation
  • 21.
    de·ploy (dĭ-ploi′) Send,ship, deliver, launch, release, install, distribute; To quickly deploy small services.  Create small microservices  Automatic test and certify  Fast automatic deploys RESULT: Lean workflow, effectiveness, efficiency, value, & feedback 21 Frequent Small Deployments
  • 22.
    cy·cle·time (sī′kәl-tīm) Effort,hours, duration, schedule, throughput, interval; To accelerate end-to-end delivery.  Mapend-to-endvaluestream  Eliminate low-value activity  Automate manual process RESULT: Lean workflow fast, efficient, value adding, & inexpensive 22 Fast End-to-End Cycle Times
  • 23.
    in·no·vate (ĭn′ә-vāt′) Invent,create, new, fresh, original, novelty, futuristic; To create new original solution.  More up-front designers  Fast small experimentation  Automated backend deploy RESULT: Lean value adding product and service development 23 Shift-Left Innovation
  • 24.
    meas·ure (mĕzh′әr) Count,quantify, qualify, appraise, assess, evaluate; To quickly assess customer value.  Quickly market prototypes  Assess customer reaction  Optimize customer value RESULT: Lean end-to-end enterprise value creation & optimization 24 Customer Measurement
  • 25.
    im·prove (ĭm‐pro͞ov′) Fix,enhance, amend, refine, polish, purify, perfect; To make fast frequent correction.  Frequently retrospect  Radical process redesign  Quickly implement changes RESULT: Lean end-to-end efficiency, effectiveness & market value 25 Relentless Improvement
  • 26.
    26 Summary  Servant Leadership Extremely Small Batches  Business Experimentation  Simple Minimalistic Designs  Emergent & Evolutionary Design  Small, Highly-Collaborative Teams  Focused, Single-Tasking, Limited WIP  Long-Lived Value Streams & Budgeting  Rich, High-Context Informal Conversations  End-to-End Fully Automated DevOps Pipelines  Level Workflow by Matching Capacity to Demand  One-Piece Workflow & Frequent Small Deployments  Highly-Modularized Design-Independent Microservices  Excess Capacity for Fewer High-Value Adding Innovations  Frequent Qualitative & Quantitative Customer Measurements  Continuous Improvement, Adaptation to Change, Pivot & Move  Radical End-to-End Value Stream Lead & Cycle Time Reductions  Simple Visualization, Openness, and Transparent Communications  Happy, Healthy, & Informal Social Relationships, Trust, & Attitudes  Empowerment, Employee Ownership, & Frontline Bottoms-Up Decision-Making  Shift-Left Thinking--More People Creating & Innovating than Testing & Validating
  • 27.
    27 Dave’s Capabilities Software Quality Mgt. Technical Project Mgt. Software Development Methods Leadership & Org.Change Systems Engineering Cost Estimates & Scheduling Acquisition & Contracting Strategy & Roadmapping Lean, Kanban, & Six Sigma Modeling & Simulations Big Data, Cloud, NoSQL Workflow Automation Metrics, Models, & SPC BPR, IDEF0, & DoDAF DoD 5000, TRA, & SRA PSP, TSP, & Code Reviews CMMI & ISO 9001 Innovation Management Statistics, CFA, EFA, & SEM Research Methods Evolutionary Design Valuation — Cost-Benefit Analysis, B/CR, ROI, NPV, BEP, Real Options, etc. Lean-Agile — Scrum, SAFe, Continuous Integration & Delivery, DevOpsSec, etc. STRENGTHS – Data Mining  Gathering & Reporting Performance Data  Strategic Planning  Executive & Manage- ment Briefs  Brownbags & Webinars  White Papers  Tiger-Teams  Short-Fuse Tasking  Audits & Reviews  Etc. ● Data mining. Metrics, benchmarks, & performance. ● Simplification. Refactoring, refinement, & streamlining. ● Assessments. Audits, reviews, appraisals, & risk analysis. ● Coaching. Diagnosing, debugging, & restarting stalled projects. ● Business cases. Cost, benefit, & return-on-investment (ROI) analysis. ● Communications. Executive summaries, white papers, & lightning talks. ● Strategy & tactics. Program, project, task, & activity scoping, charters, & plans. PMP,CSEP, EBAS,BAF,FCP, FCT,ACP,CSM, DEVOPS,& SAFE 36+ YEARS IN IT INDUSTRY