1 00:00:06,614 --> 00:00:08,738 - You might have noticed, or you might not, 2 00:00:08,738 --> 00:00:10,790 that all the configurations of SAFe 3 00:00:10,790 --> 00:00:13,568 have the same foundation layer, 4 00:00:13,568 --> 00:00:15,781 whether you're doing Essential SAFe, 5 00:00:15,781 --> 00:00:19,600 or Portfolio SAFe, Full SAFe, or Solution SAFe, 6 00:00:19,600 --> 00:00:21,389 the rules are the same. 7 00:00:21,389 --> 00:00:23,129 We need our leadership support, 8 00:00:23,129 --> 00:00:25,205 we have the core values I described. 9 00:00:25,205 --> 00:00:27,899 Lean-Agile mindset, SAFe Principals, 10 00:00:27,899 --> 00:00:30,302 the roadmap that I've described very briefly, 11 00:00:30,302 --> 00:00:32,992 and SPCs as guides to help us find the way. 12 00:00:32,992 --> 00:00:37,159 Let's talk now specifically about the Lean-Agile mindset. 13 00:00:38,012 --> 00:00:41,081 Not surprisingly, two halves of the Lean-Agile mindset 14 00:00:41,081 --> 00:00:44,917 is thinking Lean and supporting the Agile Manifesto. 15 00:00:44,917 --> 00:00:46,339 What's the Lean mindset? 16 00:00:46,339 --> 00:00:48,474 Well, everybody who talks about Lean 17 00:00:48,474 --> 00:00:49,506 has a house of Lean. 18 00:00:49,506 --> 00:00:51,693 Now, everybody has a different perspective 19 00:00:51,693 --> 00:00:53,604 but they all have some things in common. 20 00:00:53,604 --> 00:00:55,793 They all have a roof, a value, 21 00:00:55,793 --> 00:00:58,723 they all have some pillars, the things that support value, 22 00:00:58,723 --> 00:00:59,953 and they all have a foundation, 23 00:00:59,953 --> 00:01:02,712 and you can see here that our foundation is leadership. 24 00:01:02,712 --> 00:01:05,043 The pillars are: respect for people and culture, 25 00:01:05,043 --> 00:01:07,315 product development flow, innovation, 26 00:01:07,315 --> 00:01:08,848 and relentless improvement. 27 00:01:08,848 --> 00:01:10,701 Let's go through each of these elements 28 00:01:10,701 --> 00:01:14,384 to understand what it means to have a Lean-Agile mindset. 29 00:01:14,384 --> 00:01:15,536 Starts with a goal. 30 00:01:15,536 --> 00:01:19,401 The goal of Lean is very simple and always constant: 31 00:01:19,401 --> 00:01:22,992 Achieve the sustainably shortest lead time. 32 00:01:22,992 --> 00:01:26,819 So no matter where you are in the process of transformation, 33 00:01:26,819 --> 00:01:29,432 where you are in your enterprise, or who you're talking to, 34 00:01:29,432 --> 00:01:31,195 they'll all resonate with the fact, 35 00:01:31,195 --> 00:01:33,749 whether it be the PMO organization, 36 00:01:33,749 --> 00:01:35,887 the financial organization, managers, 37 00:01:35,887 --> 00:01:38,260 those that are responsible for the current lifecycle, 38 00:01:38,260 --> 00:01:39,974 those responsible for delivering the system, 39 00:01:39,974 --> 00:01:42,069 we can all agree we want to achieve 40 00:01:42,069 --> 00:01:43,959 the sustainably shortest lead time. 41 00:01:43,959 --> 00:01:46,213 But in order to be sustainable, 42 00:01:46,213 --> 00:01:47,397 we also have to make sure that 43 00:01:47,397 --> 00:01:49,607 we're delivering quality and value. 44 00:01:49,607 --> 00:01:53,295 So, best quality and value to people and society. 45 00:01:53,295 --> 00:01:56,835 Individuals, people that do the work in our organization, 46 00:01:56,835 --> 00:01:58,269 and our users that take advantage 47 00:01:58,269 --> 00:02:00,266 of the systems that we build. 48 00:02:00,266 --> 00:02:04,126 And high morale, safety and customer delight. 49 00:02:04,126 --> 00:02:06,889 You can see, kind of some of the Japanese roots 50 00:02:06,889 --> 00:02:08,320 of Lean in here. 51 00:02:08,320 --> 00:02:09,513 Morale matters. 52 00:02:09,513 --> 00:02:12,115 Safety wasn't just in Lean manufacturing, 53 00:02:12,115 --> 00:02:13,122 that was personal safety. 54 00:02:13,122 --> 00:02:14,583 That was personal, physical safety. 55 00:02:14,583 --> 00:02:18,677 Now in our world it's more the safety to explore, 56 00:02:18,677 --> 00:02:22,547 the safety to think and speak freely about your ideas. 57 00:02:22,547 --> 00:02:26,269 And Sam Walton has told us, there is only one boss 58 00:02:26,269 --> 00:02:27,811 and he can fire everybody in the company, 59 00:02:27,811 --> 00:02:29,571 so we all know who we're working for. 60 00:02:29,571 --> 00:02:32,067 So achieving the sustainable shortest lead time 61 00:02:32,067 --> 00:02:33,834 with best quality and value to people and society, 62 00:02:33,834 --> 00:02:35,792 that's the goal, that's why we're using SAFe. 63 00:02:35,792 --> 00:02:37,868 If you're not trying to do that, 64 00:02:37,868 --> 00:02:39,373 than you're probably in the wrong course. 65 00:02:39,373 --> 00:02:40,594 But if you are trying to do that, 66 00:02:40,594 --> 00:02:43,652 there's a lot more meat that we can put on this bone. 67 00:02:43,652 --> 00:02:44,798 Respect for people. 68 00:02:44,798 --> 00:02:46,803 I mentioned just a minute or so ago 69 00:02:46,803 --> 00:02:48,799 kind of a common phrase in Lean: 70 00:02:48,799 --> 00:02:50,537 People do all the work. 71 00:02:50,537 --> 00:02:51,903 But guess what? 72 00:02:51,903 --> 00:02:53,598 Lean differs a little bit from Agile 73 00:02:53,598 --> 00:02:55,390 in your view of the customer. 74 00:02:55,390 --> 00:02:57,340 Lean thinks about the full system view, 75 00:02:57,340 --> 00:02:59,939 end-to-end, all the steps between 76 00:02:59,939 --> 00:03:01,791 ideation and delivery, 77 00:03:01,791 --> 00:03:04,714 and it thinks about, well, I might be 78 00:03:04,714 --> 00:03:06,090 in the middle of one of those steps, 79 00:03:06,090 --> 00:03:09,207 I'm a software developer and I work with a tester 80 00:03:09,207 --> 00:03:12,358 who's able to script some automated tests around my code. 81 00:03:12,358 --> 00:03:13,614 That's pretty cool. 82 00:03:13,614 --> 00:03:16,672 Well, who's the first person that consumes my work. 83 00:03:16,672 --> 00:03:18,957 Goodness, it's the person writing the test. 84 00:03:18,957 --> 00:03:21,552 So my customer is very local to me. 85 00:03:21,552 --> 00:03:22,955 My first customer is a person 86 00:03:22,955 --> 00:03:25,403 on the bench next to me, metaphorically, 87 00:03:25,403 --> 00:03:27,684 that's gonna consume the work and that's really important. 88 00:03:27,684 --> 00:03:31,851 So, if we think about, for example, the deployment team, 89 00:03:33,411 --> 00:03:36,153 if we think about IT Service management, 90 00:03:36,153 --> 00:03:39,346 our solutions can't solve any problems for the customer 91 00:03:39,346 --> 00:03:41,582 until it's deployed, so guess what, 92 00:03:41,582 --> 00:03:42,946 they're my customer too. 93 00:03:42,946 --> 00:03:45,408 So let's just use that perspective for a second. 94 00:03:45,408 --> 00:03:48,175 Let's take the kind of traditional view 95 00:03:48,175 --> 00:03:49,922 of a software development shop 96 00:03:49,922 --> 00:03:52,185 approaching this firewall called 97 00:03:52,185 --> 00:03:54,393 we're about to deploy our system into production 98 00:03:54,393 --> 00:03:56,771 and think about here's my customer. 99 00:03:56,771 --> 00:03:58,198 It's the people that are doing the work 100 00:03:58,198 --> 00:03:59,498 to deploy the system. 101 00:03:59,498 --> 00:04:01,241 What are the rules? 102 00:04:01,241 --> 00:04:02,624 Don't overload them. 103 00:04:02,624 --> 00:04:03,883 Don't give them too much work. 104 00:04:03,883 --> 00:04:05,141 Nobody likes that. 105 00:04:05,141 --> 00:04:06,782 Don't make them wait. 106 00:04:06,782 --> 00:04:08,509 Don't force them to do wasteful work. 107 00:04:08,509 --> 00:04:10,190 Don't impose wishful thinking. 108 00:04:10,190 --> 00:04:11,994 Don't say things that turn out not to be true 109 00:04:11,994 --> 00:04:13,853 because you hope they're going to be true. 110 00:04:13,853 --> 00:04:16,336 So if we think about our customer in this context, 111 00:04:16,336 --> 00:04:20,437 we can think about all the steps in delivering value, 112 00:04:20,437 --> 00:04:23,177 and think about every one of those steps 113 00:04:23,177 --> 00:04:26,177 probably has a customer that we need 114 00:04:27,190 --> 00:04:28,570 to apply these rules to. 115 00:04:28,570 --> 00:04:30,939 And that makes quite an interesting paradigm 116 00:04:30,939 --> 00:04:34,492 because it keeps constantly in mind 117 00:04:34,492 --> 00:04:36,526 that the flow through the system 118 00:04:36,526 --> 00:04:38,983 involves addressing customer needs 119 00:04:38,983 --> 00:04:42,857 in a way that satisfies them and engages them in the work. 120 00:04:42,857 --> 00:04:44,093 A few other aspects: 121 00:04:44,093 --> 00:04:47,428 build long-term partnerships based upon trust. 122 00:04:47,428 --> 00:04:49,079 It's not a short-term deal where I got 123 00:04:49,079 --> 00:04:51,964 the lowest possible cost for component A, 124 00:04:51,964 --> 00:04:54,258 for the outsourcing resource that could 125 00:04:54,258 --> 00:04:55,713 develop that feature set, 126 00:04:55,713 --> 00:04:58,588 it's about the total cost of ownership over time. 127 00:04:58,588 --> 00:05:00,748 In order to do that, we want our partnerships 128 00:05:00,748 --> 00:05:03,578 to be based upon trust and mutual respect, 129 00:05:03,578 --> 00:05:07,248 and frankly, good outcome economics for both. 130 00:05:07,248 --> 00:05:10,835 Kotter notes, that cultural change comes last, not first. 131 00:05:10,835 --> 00:05:13,937 To change the culture you have to change the organization. 132 00:05:13,937 --> 00:05:16,272 So we won't start with a cultural flag. 133 00:05:16,272 --> 00:05:18,893 We will not be waving a "here's our new culture" flag 134 00:05:18,893 --> 00:05:20,232 as we head down this path. 135 00:05:20,232 --> 00:05:21,801 Instead, what we will be doing, 136 00:05:21,801 --> 00:05:24,038 is we'll be changing the organization 137 00:05:24,038 --> 00:05:26,765 and achieving a short and sustainable lead time, 138 00:05:26,765 --> 00:05:30,048 and that in turn will start to drive the cultural change 139 00:05:30,048 --> 00:05:32,167 that helps make that persist. 140 00:05:32,167 --> 00:05:33,745 Respect for people and culture. 141 00:05:33,745 --> 00:05:35,462 People do all the work. 142 00:05:35,462 --> 00:05:36,629 Flow. 143 00:05:36,629 --> 00:05:40,015 A relatively newer addition to our knowledge base 144 00:05:40,015 --> 00:05:41,208 if you will. 145 00:05:41,208 --> 00:05:43,530 Not brand new, ten and twenty years old. 146 00:05:43,530 --> 00:05:45,827 But the notion of continuous flow of value, 147 00:05:45,827 --> 00:05:47,331 product development flow, 148 00:05:47,331 --> 00:05:49,149 that hits us through works from Reinertsen, 149 00:05:49,149 --> 00:05:53,551 it hits us through Dev Ops, and the school of knowledge 150 00:05:53,551 --> 00:05:55,899 about continuously releasing value. 151 00:05:55,899 --> 00:05:57,836 So flow really matters. 152 00:05:57,836 --> 00:05:59,964 A few interesting things about flow. 153 00:05:59,964 --> 00:06:01,817 Reinertsen notes that, "Operating 154 00:06:01,817 --> 00:06:04,413 a product development process near full utilization 155 00:06:04,413 --> 00:06:06,429 is an economic disaster." 156 00:06:06,429 --> 00:06:08,725 I'm going to talk about that more a little bit later, 157 00:06:08,725 --> 00:06:10,232 but think about that for a second. 158 00:06:10,232 --> 00:06:12,267 Is your product development process, 159 00:06:12,267 --> 00:06:13,558 your software development process, 160 00:06:13,558 --> 00:06:17,197 your systems builder process, running at full utilization? 161 00:06:17,197 --> 00:06:18,067 Probably. 162 00:06:18,067 --> 00:06:20,610 If so, are you getting the right economics? 163 00:06:20,610 --> 00:06:22,008 Perhaps not. 164 00:06:22,008 --> 00:06:24,245 So lets talk about some additional aspects to flow. 165 00:06:24,245 --> 00:06:25,301 Well, what is it? 166 00:06:25,301 --> 00:06:27,614 We wanna optimize continuous and sustainable 167 00:06:27,614 --> 00:06:28,675 throughput of value. 168 00:06:28,675 --> 00:06:30,576 It doesn't stop, we just do it forever. 169 00:06:30,576 --> 00:06:32,773 There's always work in process, 170 00:06:32,773 --> 00:06:35,760 it's always limited, we're always releasing value. 171 00:06:35,760 --> 00:06:38,540 We wanna get out of the start-stop-start project life. 172 00:06:38,540 --> 00:06:40,989 So I've started the project, we've got an overrun, 173 00:06:40,989 --> 00:06:42,210 we need to rethink that. 174 00:06:42,210 --> 00:06:43,636 Why do I have a project to begin with? 175 00:06:43,636 --> 00:06:45,118 I know I need something to do. 176 00:06:45,118 --> 00:06:46,148 Aren't the people together? 177 00:06:46,148 --> 00:06:47,729 Don't we know who could do that best? 178 00:06:47,729 --> 00:06:49,530 Can't we just feed them that work? 179 00:06:49,530 --> 00:06:50,363 Wouldn't that make sense? 180 00:06:50,363 --> 00:06:51,938 Do I have to create a project to do that? 181 00:06:51,938 --> 00:06:53,559 No project's unsafe. 182 00:06:53,559 --> 00:06:55,471 I already mentioned this, build quality in; 183 00:06:55,471 --> 00:06:56,558 flow depends on it. 184 00:06:56,558 --> 00:06:59,126 Understand, exploit and manage variability. 185 00:06:59,126 --> 00:07:01,298 Now this is different than traditional Lean thinking. 186 00:07:01,298 --> 00:07:04,239 This is not Six Sigma reduction in defects. 187 00:07:04,239 --> 00:07:07,264 We do want reduction in defects, but we also recognize that 188 00:07:07,264 --> 00:07:09,025 I might be building the wrong thing, 189 00:07:09,025 --> 00:07:11,535 or something material might have happened in the marketplace 190 00:07:11,535 --> 00:07:13,203 that cause my current solution 191 00:07:13,203 --> 00:07:15,109 not to become the right thing. 192 00:07:15,109 --> 00:07:18,178 OK, so that variability, we have to harness that 193 00:07:18,178 --> 00:07:19,769 to our advantage. 194 00:07:19,769 --> 00:07:21,121 Integrate frequently. 195 00:07:21,121 --> 00:07:22,744 If you're not integrating you're not flowing. 196 00:07:22,744 --> 00:07:24,826 You're building working process 197 00:07:24,826 --> 00:07:28,733 and assumption-driven code that hasn't yet been deployed. 198 00:07:28,733 --> 00:07:30,842 And informed decision-making via fast feedback. 199 00:07:30,842 --> 00:07:34,207 We'll talk a lot about fast feedback in the next module. 200 00:07:34,207 --> 00:07:35,469 Innovation. 201 00:07:35,469 --> 00:07:37,536 This pillar of Lean is an interesting one, 202 00:07:37,536 --> 00:07:40,249 because it doesn't always exist as a pillar, 203 00:07:40,249 --> 00:07:41,618 but it exists in SAFe for a reason. 204 00:07:41,618 --> 00:07:44,603 We wanna call out innovation specifically. 205 00:07:44,603 --> 00:07:46,542 A few interesting kind of aspects 206 00:07:46,542 --> 00:07:48,788 or perspectives on innovation. 207 00:07:48,788 --> 00:07:51,773 Number one, Deming notes, that, "Innovation comes 208 00:07:51,773 --> 00:07:53,255 from the producer." 209 00:07:53,255 --> 00:07:54,437 I'm a user of an iPhone. 210 00:07:54,437 --> 00:07:56,520 It's not my job to drive their innovation, 211 00:07:56,520 --> 00:07:58,395 it's their job to move me to places 212 00:07:58,395 --> 00:07:59,565 that I didn't even think about. 213 00:07:59,565 --> 00:08:03,285 So, the net summation of all customers inputs 214 00:08:03,285 --> 00:08:05,166 does not make a strategy. 215 00:08:05,166 --> 00:08:06,396 That doesn't drive innovation. 216 00:08:06,396 --> 00:08:09,031 Sometimes innovation causes you to move a customer 217 00:08:09,031 --> 00:08:10,625 to a place where you need them to be 218 00:08:10,625 --> 00:08:12,400 and they need to be, that they may not be 219 00:08:12,400 --> 00:08:13,810 quite ready to go. 220 00:08:13,810 --> 00:08:16,160 So innovation comes from the producer. 221 00:08:16,160 --> 00:08:20,185 However, as Eric Ries notes in the Lean startup work, 222 00:08:20,185 --> 00:08:23,849 yes, producers innovate, but customers validate. 223 00:08:23,849 --> 00:08:26,082 So that's the feedback we need, 224 00:08:26,082 --> 00:08:28,056 the fast feedback that I mentioned earlier 225 00:08:28,056 --> 00:08:30,886 that allows us to make sure that our innovation is tracking. 226 00:08:30,886 --> 00:08:33,959 It's not a decent innovation until we get feedback. 227 00:08:33,959 --> 00:08:38,676 I use very few words from Japanese to describe Lean, 228 00:08:38,676 --> 00:08:40,398 but here's one: Gemba. 229 00:08:40,398 --> 00:08:42,731 Gemba, I think, is one of the most important words 230 00:08:42,731 --> 00:08:45,984 in Lean thinking, particularly with respect to innovation. 231 00:08:45,984 --> 00:08:48,588 Gemba means you have to know what you're talking about 232 00:08:48,588 --> 00:08:50,168 from the customer's environment. 233 00:08:50,168 --> 00:08:52,515 Gemba is the place where the work is actually performed. 234 00:08:52,515 --> 00:08:55,089 So, for example, if you're watching TV in Japan, 235 00:08:55,089 --> 00:08:56,702 you're reading the translated captions, 236 00:08:56,702 --> 00:08:59,396 you might see a detective at the scene of the crime 237 00:08:59,396 --> 00:09:01,675 call his boss and say, his boss would say, 238 00:09:01,675 --> 00:09:03,275 "Where are you?" and he would say, "I'm in Gemba." 239 00:09:03,275 --> 00:09:04,349 What's that mean? 240 00:09:04,349 --> 00:09:06,303 Gemba means, I'm standing right now 241 00:09:06,303 --> 00:09:07,814 where the crime has occurred. 242 00:09:07,814 --> 00:09:09,673 I am literally at the crime scene. 243 00:09:09,673 --> 00:09:10,936 This is where the crime occurred. 244 00:09:10,936 --> 00:09:14,169 So there's no ambiguity, I'm not hearing this third-party, 245 00:09:14,169 --> 00:09:16,216 I'm witnessing with my own eyes what it is. 246 00:09:16,216 --> 00:09:17,694 We talk about Gemba a lot. 247 00:09:17,694 --> 00:09:19,762 We talk about the need to be in Gemba. 248 00:09:19,762 --> 00:09:21,095 There's different types of Gemba. 249 00:09:21,095 --> 00:09:25,403 If you're in the process of producing courseware, 250 00:09:25,403 --> 00:09:26,697 there's a process that works there 251 00:09:26,697 --> 00:09:28,248 and people that work there, that's their Gemba, 252 00:09:28,248 --> 00:09:30,669 but that's not the customer's Gemba. 253 00:09:30,669 --> 00:09:32,881 The instructor's Gemba is the class. 254 00:09:32,881 --> 00:09:35,151 The student's Gemba is the environment they work in, 255 00:09:35,151 --> 00:09:37,668 so get out of the office, get into Gemba, 256 00:09:37,668 --> 00:09:41,529 because as Taiichi Ohno, one of the godfathers of Lean said, 257 00:09:41,529 --> 00:09:44,827 "No useful improvement was ever invented at a desk." 258 00:09:44,827 --> 00:09:46,483 So we think about Gemba constantly. 259 00:09:46,483 --> 00:09:49,737 We're always on the look for opportunities to be in Gemba, 260 00:09:49,737 --> 00:09:53,422 we always ask ourself, is that an opinion 261 00:09:53,422 --> 00:09:54,549 that we created here in the office, 262 00:09:54,549 --> 00:09:56,769 or did that feed directly from Gemba? 263 00:09:56,769 --> 00:09:57,690 A few other things. 264 00:09:57,690 --> 00:10:00,009 Provide time and space for creativity. 265 00:10:00,009 --> 00:10:01,930 We have to be careful that the Agile 266 00:10:01,930 --> 00:10:04,932 Tyranny of the Urgent still allows you to think. 267 00:10:04,932 --> 00:10:07,914 It's OK to think in Lean development and Agile development. 268 00:10:07,914 --> 00:10:10,201 We may have to even provide time to think. 269 00:10:10,201 --> 00:10:12,101 Hackathons and things like that. 270 00:10:12,101 --> 00:10:13,927 Apply innovation accounting. 271 00:10:13,927 --> 00:10:15,261 This is a very important principal. 272 00:10:15,261 --> 00:10:16,738 We can't go very deep here, 273 00:10:16,738 --> 00:10:18,292 but you can read about it on the site 274 00:10:18,292 --> 00:10:19,449 when you look at some other things 275 00:10:19,449 --> 00:10:21,630 we're gonna talk about soon: 276 00:10:21,630 --> 00:10:24,857 minimum viable products and minimum marketable features. 277 00:10:24,857 --> 00:10:27,190 A challenge we have with ROI 278 00:10:29,628 --> 00:10:33,111 as a metric that we use to measure business performance 279 00:10:33,111 --> 00:10:35,988 is it appears really, really late. 280 00:10:35,988 --> 00:10:39,208 The R appears so far after the I 281 00:10:39,208 --> 00:10:41,584 that it's simply too late. 282 00:10:41,584 --> 00:10:43,840 So if you don't get the right amount of R 283 00:10:43,840 --> 00:10:44,838 there's nothing you can do about it 284 00:10:44,838 --> 00:10:46,616 because you're already down the road a little bit. 285 00:10:46,616 --> 00:10:48,687 Innovation accounting addresses that. 286 00:10:48,687 --> 00:10:51,631 We'll talk about MVPs and minimum marketable features 287 00:10:51,631 --> 00:10:54,692 and every one will say, how would I measure 288 00:10:54,692 --> 00:10:57,612 that I'm getting the right trend for the feedback? 289 00:10:57,612 --> 00:10:58,886 Are people using that feature? 290 00:10:58,886 --> 00:11:00,208 Are we getting any downloads? 291 00:11:00,208 --> 00:11:02,923 Is what we're doing making any sense to the user? 292 00:11:02,923 --> 00:11:04,496 And then lastly, I think this word came 293 00:11:04,496 --> 00:11:06,268 from Lean Startup, I'm pretty sure, 294 00:11:06,268 --> 00:11:07,702 pivot without mercy or guilt. 295 00:11:07,702 --> 00:11:08,944 What does that mean? 296 00:11:08,944 --> 00:11:11,840 It means that you learn new things, OK. 297 00:11:11,840 --> 00:11:14,707 You should never be in a situation where you're saying, 298 00:11:14,707 --> 00:11:17,155 here's what we've learned in this situation 299 00:11:17,155 --> 00:11:19,960 and we need to make a change based upon learning, 300 00:11:19,960 --> 00:11:22,399 where people are going, well you should have known all that. 301 00:11:22,399 --> 00:11:24,268 Well you might find yourself in that situation, 302 00:11:24,268 --> 00:11:27,413 but yeah, well maybe I should have known it, but we didn't. 303 00:11:27,413 --> 00:11:29,205 We collectively didn't know that. 304 00:11:29,205 --> 00:11:31,300 So when we pivot without mercy or guilt it says, 305 00:11:31,300 --> 00:11:32,599 that was a great learning, 306 00:11:32,599 --> 00:11:35,148 we just invested X-thousand dollars, 307 00:11:35,148 --> 00:11:37,876 or this much time, or this many million dollars, 308 00:11:37,876 --> 00:11:40,280 and this initiative, but we've learned 309 00:11:40,280 --> 00:11:42,873 that that's not really where we wanna go 310 00:11:42,873 --> 00:11:46,150 and we need to pivot, and no guilt, no mercy, 311 00:11:46,150 --> 00:11:47,778 we're going to make a change 312 00:11:47,778 --> 00:11:51,394 based upon the fact pattern that asserted itself. 313 00:11:51,394 --> 00:11:53,323 Very important kind of key elements 314 00:11:53,323 --> 00:11:57,074 of thinking about innovation in the house of Lean. 315 00:11:57,074 --> 00:11:58,550 Relentless improvement. 316 00:11:58,550 --> 00:12:00,985 Lots of feedback on lots of slides, we get it all the time, 317 00:12:00,985 --> 00:12:03,649 and somebody said, do you really mean danger? 318 00:12:03,649 --> 00:12:05,660 Are we really trying to scare people here? 319 00:12:05,660 --> 00:12:07,606 Well, number one, I didn't make this up. 320 00:12:07,606 --> 00:12:10,267 This came from, I think it was one of the chairman of Toyota 321 00:12:10,267 --> 00:12:12,240 about a decade or so ago, 322 00:12:12,240 --> 00:12:15,954 and I ask my students, students in class like you, 323 00:12:15,954 --> 00:12:17,950 are you in a competitive market? 324 00:12:17,950 --> 00:12:20,156 Everybody raises their hand, yeah. 325 00:12:20,156 --> 00:12:21,296 Do you have some birthright 326 00:12:21,296 --> 00:12:23,131 that says you're guaranteed success? 327 00:12:23,131 --> 00:12:24,463 No. 328 00:12:24,463 --> 00:12:26,624 Are you kind of on the edge of the seat 329 00:12:26,624 --> 00:12:28,587 about what the competitors could do 330 00:12:28,587 --> 00:12:30,152 or how the market might change 331 00:12:30,152 --> 00:12:33,244 to make your job, your solution, your company less viable? 332 00:12:33,244 --> 00:12:35,933 If so, that's OK, because that constant sense of danger 333 00:12:35,933 --> 00:12:36,766 will inform you. 334 00:12:36,766 --> 00:12:40,603 I always think of Bill Gates with his constant sense 335 00:12:40,603 --> 00:12:42,103 of fear and danger 336 00:12:43,211 --> 00:12:44,726 and just downright paranoia 337 00:12:44,726 --> 00:12:47,506 about the fact that the Windows franchise 338 00:12:47,506 --> 00:12:48,919 would be taken away from him 339 00:12:48,919 --> 00:12:50,738 and they aggressively defended that, 340 00:12:50,738 --> 00:12:52,453 that constant sense of danger. 341 00:12:52,453 --> 00:12:55,192 Have to optimize the whole, not the parts. 342 00:12:55,192 --> 00:12:56,215 A key part of systems thinking 343 00:12:56,215 --> 00:12:58,142 is when you optimize a component of a system 344 00:12:58,142 --> 00:13:00,137 it does not optimize a system. 345 00:13:00,137 --> 00:13:04,238 It could even make the system behave differently or worse. 346 00:13:04,238 --> 00:13:06,007 Consider facts carefully and act quickly. 347 00:13:06,007 --> 00:13:09,461 So, two things: careful consideration, quick decision, 348 00:13:09,461 --> 00:13:11,920 like pivot without mercy or guilt. 349 00:13:11,920 --> 00:13:14,120 Lots of Lean tools and we'll talk about those 350 00:13:14,120 --> 00:13:16,716 through this course, to identify and address root causes. 351 00:13:16,716 --> 00:13:18,885 This is a key part of relentless improvement. 352 00:13:18,885 --> 00:13:20,974 You need the tools to be able to do that 353 00:13:20,974 --> 00:13:22,435 and it's not simply a matter of 354 00:13:22,435 --> 00:13:23,986 what went well what didn't? 355 00:13:23,986 --> 00:13:25,737 That's a good form of retrospective, 356 00:13:25,737 --> 00:13:27,593 but deep dives into corrective action 357 00:13:27,593 --> 00:13:29,870 and really understanding the root causes 358 00:13:29,870 --> 00:13:32,188 of the things that are causing those issues. 359 00:13:32,188 --> 00:13:33,991 And of course, just like in Agile, 360 00:13:33,991 --> 00:13:36,085 reflect at key milestones; identify 361 00:13:36,085 --> 00:13:37,504 and address shortcomings. 362 00:13:37,504 --> 00:13:39,230 You're seeing many things here 363 00:13:39,230 --> 00:13:41,064 that also occur in Agile. 364 00:13:41,064 --> 00:13:43,408 For example, that's a part of the Agile manifesto. 365 00:13:43,408 --> 00:13:45,498 So while these are different perspectives 366 00:13:45,498 --> 00:13:47,938 and each brings a lot of value, 367 00:13:47,938 --> 00:13:50,008 they share certain common elements. 368 00:13:50,008 --> 00:13:52,580 And I think that many of these elements appear 369 00:13:52,580 --> 00:13:55,607 in both our Lean and our Agile thinking. 370 00:13:55,607 --> 00:13:56,704 Leadership. 371 00:13:56,704 --> 00:13:58,944 You might see some houses of Lean 372 00:13:58,944 --> 00:14:02,153 that say management foundation or management support, 373 00:14:02,153 --> 00:14:03,137 one of the ones that I found 374 00:14:03,137 --> 00:14:06,799 when I was building this class many, many years ago, 375 00:14:06,799 --> 00:14:08,098 said management support. 376 00:14:08,098 --> 00:14:09,762 Nah, it's not enough. 377 00:14:09,762 --> 00:14:11,981 We can't be supported, right? 378 00:14:11,981 --> 00:14:13,774 We need our managers to lead. 379 00:14:13,774 --> 00:14:17,175 Like Deming said, they must know what it is they must do. 380 00:14:17,175 --> 00:14:18,757 So it's not a matter of, hey you folks 381 00:14:18,757 --> 00:14:20,027 have my support for this. 382 00:14:20,027 --> 00:14:21,341 You need that too. 383 00:14:21,341 --> 00:14:24,269 It's, you have my active involvement. 384 00:14:24,269 --> 00:14:27,372 What can I do to help make this thing a reality? 385 00:14:27,372 --> 00:14:28,602 What impediments are in your way? 386 00:14:28,602 --> 00:14:32,023 What might prevent you from being successful with that. 387 00:14:32,023 --> 00:14:35,619 So we need you, in other words, to lead the change. 388 00:14:35,619 --> 00:14:36,938 Why? 389 00:14:36,938 --> 00:14:40,583 Deming notes, "People are already doing their best; 390 00:14:40,583 --> 00:14:42,710 the problems are with the system. 391 00:14:42,710 --> 00:14:45,131 Only management can change the system." 392 00:14:45,131 --> 00:14:45,964 OK? 393 00:14:45,964 --> 00:14:47,000 Everybody's doing their best. 394 00:14:47,000 --> 00:14:48,950 I go into my office and look around 395 00:14:48,950 --> 00:14:50,543 and people are working hard. 396 00:14:50,543 --> 00:14:54,393 Sometimes we don't always get the results that we want. 397 00:14:54,393 --> 00:14:56,312 Did I see that person goofing off? 398 00:14:56,312 --> 00:14:58,768 No, I didn't see that, I saw them working really hard 399 00:14:58,768 --> 00:14:59,965 and frankly getting frustrated. 400 00:14:59,965 --> 00:15:02,402 There's something wrong with the system. 401 00:15:02,402 --> 00:15:04,925 We need leadership to be able to change the system, 402 00:15:04,925 --> 00:15:07,697 and in order to that we have to know the way. 403 00:15:07,697 --> 00:15:10,957 We'll talk a little later on about life-long learning 404 00:15:10,957 --> 00:15:15,066 and leader's role and responsibility to show the way. 405 00:15:15,066 --> 00:15:17,555 We're building systems now that we've never built before 406 00:15:17,555 --> 00:15:20,778 with technologies that are literally just a few years old, 407 00:15:20,778 --> 00:15:23,393 maybe to a decade old max, 408 00:15:23,393 --> 00:15:25,162 even if that solution has been built 409 00:15:25,162 --> 00:15:27,555 in some other company, it wasn't your company. 410 00:15:27,555 --> 00:15:29,635 So when you emphasize life-long learning 411 00:15:29,635 --> 00:15:33,554 and you become a leader who is constantly 412 00:15:33,554 --> 00:15:35,531 advancing their skills and knowledge set, 413 00:15:35,531 --> 00:15:36,797 others will follow that model. 414 00:15:36,797 --> 00:15:39,251 That's what leaders do, leaders lead. 415 00:15:39,251 --> 00:15:40,897 We develop people. 416 00:15:40,897 --> 00:15:43,472 We work on the systems and we advance the systems, 417 00:15:43,472 --> 00:15:45,744 but we develop the people with the skills. 418 00:15:45,744 --> 00:15:47,464 Inspire and align with mission; 419 00:15:47,464 --> 00:15:49,112 minimize possible constraints. 420 00:15:49,112 --> 00:15:51,364 This is a key element of Lean as well. 421 00:15:51,364 --> 00:15:52,506 What are we trying to do? 422 00:15:52,506 --> 00:15:55,239 Take that mountain, deliver this system. 423 00:15:55,239 --> 00:15:58,256 A good talk by an executive in this area says, 424 00:15:58,256 --> 00:16:01,115 here's the mission, there's a trade show deadline, 425 00:16:01,115 --> 00:16:03,247 there's a market window, we wanna build 426 00:16:03,247 --> 00:16:05,786 the best possible system we can to achieve that, 427 00:16:05,786 --> 00:16:07,298 now what can you do? 428 00:16:07,298 --> 00:16:09,756 We know you wanna do great work, how can you achieve that? 429 00:16:09,756 --> 00:16:12,149 So we wanna do that, well we wanna minimize constraints. 430 00:16:12,149 --> 00:16:15,956 And oh, by the way you can't do x, y, z, (mumbles). 431 00:16:15,956 --> 00:16:17,103 There are some things you can't do. 432 00:16:17,103 --> 00:16:18,982 You can't violate security protocols, 433 00:16:18,982 --> 00:16:20,515 and safety protocols and things like that, 434 00:16:20,515 --> 00:16:23,242 there are constraints, but the leaderships job 435 00:16:23,242 --> 00:16:25,252 is to minimize the constraints and make sure 436 00:16:25,252 --> 00:16:28,118 that not every cut you had in the history of the company 437 00:16:28,118 --> 00:16:29,878 has scar tissue to the point 438 00:16:29,878 --> 00:16:31,045 where you've written a procedure 439 00:16:31,045 --> 00:16:33,130 to prevent that from ever happening again. 440 00:16:33,130 --> 00:16:34,479 Because if you do that, you may prevent 441 00:16:34,479 --> 00:16:37,196 that thing from ever happening again, 442 00:16:37,196 --> 00:16:40,592 you may prevent anything from ever happening again. 443 00:16:40,592 --> 00:16:43,156 So we need to be able to minimize those constraints. 444 00:16:43,156 --> 00:16:44,733 Decentralize decision-making. 445 00:16:44,733 --> 00:16:45,893 I'm gonna talk a lot about that. 446 00:16:45,893 --> 00:16:48,698 We're gonna see that in multiple Quicktimes over the course. 447 00:16:48,698 --> 00:16:50,850 And then finally, I'll talk about this as well, 448 00:16:50,850 --> 00:16:53,935 unlock the intrinsic motivation of knowledge workers. 449 00:16:53,935 --> 00:16:55,284 You've hired bright people. 450 00:16:55,284 --> 00:16:56,555 They wanna come to work. 451 00:16:56,555 --> 00:17:00,169 Their whole career is based on building software 452 00:17:00,169 --> 00:17:03,025 and hardware and electronics and optics 453 00:17:03,025 --> 00:17:05,252 and mechanical systems. 454 00:17:05,252 --> 00:17:06,328 They wanna do that. 455 00:17:06,328 --> 00:17:07,570 They wanna build great systems. 456 00:17:07,570 --> 00:17:09,467 We have to unlock that motivation. 457 00:17:09,467 --> 00:17:11,805 That's an entire module in the leadership module 458 00:17:11,805 --> 00:17:14,943 that's in lesson number nine. 459 00:17:14,943 --> 00:17:18,462 So, take a minute and maybe a bit of a homework here. 460 00:17:18,462 --> 00:17:21,235 Assess where you are on a Lean mindset. 461 00:17:21,235 --> 00:17:23,929 How are you on value delivery, are you high or low? 462 00:17:23,929 --> 00:17:26,747 Respect for people and culture, how do you rate? 463 00:17:26,747 --> 00:17:29,196 Great culture, great respect or (groans) 464 00:17:29,196 --> 00:17:31,063 kinda treat people like cogs? 465 00:17:31,063 --> 00:17:33,430 Do I understand flow or thinking about flow? 466 00:17:33,430 --> 00:17:36,032 Do a quick rating and then find somebody else 467 00:17:36,032 --> 00:17:37,555 in your organization. 468 00:17:37,555 --> 00:17:40,617 Share just that slide with them and say OK, 469 00:17:40,617 --> 00:17:42,202 how do you think we're doing here. 470 00:17:42,202 --> 00:17:43,626 Are your scores comparable? 471 00:17:43,626 --> 00:17:44,754 And use that. 472 00:17:44,754 --> 00:17:48,263 Based upon that, network a little bit and say, 473 00:17:48,263 --> 00:17:50,895 this is a Lean mindset, how are we doing on Lean? 474 00:17:50,895 --> 00:17:52,114 Are we there or not? 475 00:17:52,114 --> 00:17:53,618 And if you find an area where, gosh, 476 00:17:53,618 --> 00:17:55,866 we're really struggling with innovation, 477 00:17:55,866 --> 00:17:57,994 we used to be really good at that when we were small. 478 00:17:57,994 --> 00:17:59,279 Then talk about that and say, 479 00:17:59,279 --> 00:18:00,912 well, how would we regain that 480 00:18:00,912 --> 00:18:04,098 and also, take a look at SAFe. 481 00:18:04,098 --> 00:18:06,932 I encourage you to see what SAFe says about innovation 482 00:18:06,932 --> 00:18:08,781 and ways to achieve that. 483 00:18:08,781 --> 00:18:09,885 So that's a Lean mindset. 484 00:18:09,885 --> 00:18:11,654 That's an introduction to Lean mindset 485 00:18:11,654 --> 00:18:13,280 and it's a deep body of knowledge 486 00:18:13,280 --> 00:18:15,953 so I spent maybe 20 or 25 minutes here 487 00:18:15,953 --> 00:18:18,007 on a body of knowledge that goes back decades 488 00:18:18,007 --> 00:18:19,668 and has literally hundreds of books. 489 00:18:19,668 --> 00:18:21,219 We'll talk more in some of the principals 490 00:18:21,219 --> 00:18:23,629 about some of that, but without that Lean mindset, 491 00:18:23,629 --> 00:18:26,073 we're gonna have a really tough time.