Lean-Agile Business Analysis

Lean-Agile Business Analysis

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  LEAN-AGILE BUSINESS ANALYSIS KEVIN BRENNAN KEVIN@NEWBA.COM @BAKEVIN
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  THE OUT-OF-CONTEXT PRODUCT OWNER Needs Value Solutions Changes ContextStakeholders Agilemethods tend to assume this is clear. When it’s not, nothing else is rooted in reality.
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  AGILE FOCUSES ONNEW PRODUCT DEVELOPMENT INNOVATION • Do something new. • No roadmap. • Success will be known when we get there. • Major changes in direction likely. IMPROVEMENT • Existing process, product, or services. • Stakeholders understand what it does. • Success measures and requirements are knowable. • “Best practice” not certain. IMPLEMENTATION • Standard operating procedure. • No reason to have unique process. • Best practices are defined. • Little benefit from a unique approach. AGILE LEAN WATERFALL
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  WHAT IS LEAN?
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  LEAN PROVIDES ACONTEXT BY LOOKING AT THE VALUE STREAM Source: Michael A. Porter, Competitive Advantage Management Technology Finance Human Resources Margin SupportingActivity Organizational Capabilities Inbound Logistics Production & Operations Outbound Logistics Sales & Marketing Service PrimaryActivity
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  LEAN PAIRS WELLWITH AGILE Process Reengineering Lean Agile Waterfall ProductProcess Continuous Improvement Project
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  LEAN’S CONTEXT ISCUSTOMER VALUE “TRUE NORTH” • Defines value from the perspective of the customer • Ideal state of the process. • Multi-year goal. • "True North” points in a direction, doesn’t specify how to get there. VALUE STREAM • The work performed to deliver a product or service to a customer. • Goal is to increase customer value. • Also critical—eliminate or minimize “waste”, which includes any work that does not increase value. • The value stream map is used to find where waste is happening and prioritize improvement efforts.
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  LEAN IS CONTINUOUS IMPROVEMENT,NOT A PROJECT • Assess and understand the problem • Seek the root cause • Evaluate alternative solutions • Adjust the change as needed • If satisfied, deploy widely, otherwise roll it back. • Implement the proposed change • Examine the outcomes of the change • Determine whether value delivered as expected Plan Do Check Act PDCA Cycle
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  LEAN IS ABOUTINCREASING VALUE AND REMOVING WASTE 80%or more of business activities are waste that doesn’t add value for customers.
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  WHAT DOES LEANFOCUS ON? Stability Standardized Work Leveling Kaizen Just in Time Flow Remove the Root Causes of Defects QualityProductivity VALUE Respect for People
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  LEAN-AGILE BUSINESS ANALYSIS CHANGESOUR FOCUS From To ‣ Applications ‣ Business Cases ‣ One-Shot, "Complete" Projects ‣ Documentation and Specification ‣ Solving Immediate Issues ‣ Value Streams ‣ Customer Value ‣ Ongoing Delivery and Improvement ‣ Visual Models and Management ‣ Eliminating Root Causes
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  “IF YOU DON’T UNDERSTAND THEPROBLEM, YOU BUFFER WITH VOLUME.” ANDY AND ME AND THE HOSPITAL, PASCAL DENNIS
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  LEAN-AGILE BUSINESS ANALYSIS KEYPROCESS STEPS 1 Identifying Value 4 Designing the Future State 2 Setting Targets 5 Planning the Improvement Path 3 Evaluating Current State Processes 6 Validating the Results
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  MAKE THE WORK VISUAL TableMountain National Park 3 September 2017
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  VALUE IS DEFINEDBY THE CUSTOMER
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  OPERATIONAL METRICS Financial Customer Satisfaction Internal Business Process Learning & Growth Visionand Objectives
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  LEAN DEVELOPMENT METRICS Financial Marketand Operational Impact Product Development Performance Opportunity and Risk Management Vision and Objectives
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  DEFINE VALUE • Foryour business analysis process: • Identify 2 stakeholders who aren’t happy with the current state • Define their unmet needs • What would tell us that their needs have been met? • What metrics can we use to track the value they are receiving?
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  GO AND SEEPhoto by Clark Young on Unsplash
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  USING THE VALUESTREAM MAP FOR HIGH-LEVEL INSIGHT Operations Triage Requests IT Steering Committee Assess Feasibility Architect Develop BRD Business Analysis Develop SRD Business Analysis Obtain Signoff Business Analysis Development 15 d 20 d 15 d 5 d LT = 5 d PT = 15 m %C&A = 10% LT =20 d PT = 3 d %C&A = 65% LT= 45 d PT= 10 d %C&A = 80% LT = 30 d PT = 7 d %C&A = 90% LT = 15 d PT = 2 h %C&A = 95% Total Lead Time: 165 days Total Process Time: 20 days, 2 hours, and 15 min Activity Ratio: 8.2%
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  BUILD A DETAILEDPROCESS MAP FOR SPECIFIC IMPROVEMENTS CSR Assessor Account Manager Accounts Payable Report Claim Assess Claim Information Determine Eligibility Review Assessment Approve Payment Send Check Update Customer on Assessment Notify Customer of Payment
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  DOCUMENT CURRENT STATE • Lookback on recent requirements gathering workshops you’ve held. • Start capturing all the delays you run into and the real work that it takes to get one completed. • Walk through process with some in the group acting out difficult or inaccessible stakeholders. • Build a comprehensive process map. Photo by Joe Shillington on Unsplash
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  IMPACT MAPPING Goal Actor Actor Actor Impact Impact Deliverable Deliverable Deliverable Tie backto the “North Star” Stakeholders who can affect our ability to reach the goal How we want to affect the stakeholder’s behaviour What we will build to achieve the result
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  TARGET SETTING Goal • Whichgoal from our KPIs is most important to focus on first? • Define measures for that goal so we know if it’s been achieved. Actors • Which stakeholders can help you achieve the goal or prevent you from success? • Consider primary actors, secondary actors, and other stakeholders Impacts • How will the behaviour of each actor change once the system is in place? • How will that change contribute to our goal? Show how behaviour differs from today. Deliverables • What can we do as a team to deliver the desired impacts? • Include process and other changes, not just the software changes • Keep these as high-level—we will refine them into epics and features shortly.
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  TARGET SETTING Scale Whatare we measuring? Meter How do we measure it? What is the source of information? Benchmark Where are we today (if known)? Minimum What is the minimum acceptable return on investment? Target What is the level we want to achieve?
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  SETTING TARGETS: BUILD ANIMPACT MAP • Based on your metrics and process map, where can you improve value for your customers? • Define improvement targets for this change • Assess the behaviour changes needed • Determine deliverables that will produce them Photo by Joe Shillington on Unsplash
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  WASTE Muda Work that doesn’tadd value for a customer. • Type-1: Necessary but non-value added. • Type-2: Unnecessary. First targets of improvement. VARIABILITY Mura Inconsistent outcomes from a process. Includes testing, inspection, rework, or any other variation in quality, cost or delivery. OVERDOING Muri Demanding more from people, equipment or systems than they can manage on an ongoing basis. Excessive hours or usage leads to long- term burnout or equipment breakdowns. MUDA, MURA AND MURI: THE THREE TYPES OF WASTE
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  SEVEN FORMS OFNON-VALUE ADDED WORK (MUDA) Form of Waste AKA Explanation Transport Convenance Movement of product or materials that is not required for value-added work. Waiting Delay Waiting to perform work because no value- added work is available to do. Overproduction Making more of something than your customer needs. Defect Corrections, repair, revision If a product fails to meet the need, or isn’t done right the first time. Inventory Work products that are stored rather than being used. Adds effort to track and maintain. Motion Movement Travel time or other motions required to produce valuable work. Extra Processing Overprocessing Additional work due to inadequate technology, poor materials, etc.
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  WASTE IN PRODUCT DEVELOPMENT Formof Waste Sub-group Explanation Scatter Distraction Management or organizational overhead that doesn’t help with delivery Communication barriers Distance, limited information channels, formal reporting structures Poor tools Poor techniques, limited training, inadequate computers or software tools Hand-off Useless Information Filling out reports, unnecessary documentation, CYA Waiting Delays because key stakeholders aren’t available or have different priorities Wishful Thinking Testing to Specifications Failing to look for edge use cases or potential unanticipated problems Discarded Knowledge Learning that is lost because it’s never transferred or recorded
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  ASSESS VALUE DELIVERED CSR Assessor Account Manager Accounts Payable ReportClaim LT=1h PT 10m Assess Claim Information Determine Eligibility LT=5d PT=3h Review Assessment Approve Payment Send Check Update Customer on Assessment Notify Customer of Payment V V N N VW W W
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  IDENTIFY WASTE AND OPPORTUNITIES •Determine which tasks are: • Value-added • Necessary • Waste • Waste is determined by whether the customer would pay to get it • Look for waiting times • Now is when you define the ideal Photo by Joe Shillington on Unsplash
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  BUILDING THE BACKBONEOF A STORY MAP • The backbone serves as the connection between our lean process work and agile development • The resulting story map will drive the development process • Backbones take us end-to-end • The backbone provides a scope for the development effort • It provides context to let us know what does and doesn’t belong • The logical backbone is a process flow • Non-value added steps are included, as they must be actively removed Report Claim Assess Claim Information Determine Eligibility Review Assessment Approve Payment Send Check Update Customer on Assessment Notify Customer of Payment
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  STORY MAPS Step 1Step 2 Step 3 Step 2Step 1Step 3Step 2Step 4 Step 1 Step 3 Step 4 Step 5 Step 1 Step 2 Step 3 Step 4 Step 5 Task 1 Task 2 Alternate Task 2a Task 3 Story RiskStory Story Story Story StoryStory Story Story Story Risk Story StoryStory Story Story Story Story Risk StoryStoryStory Story StoryStory • Story maps can include: • Software stories • Enablers • Process stories • Risks • Order by relative priority • Each story relates to the relevant process step • Gives a complete visual guide to scope
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  INCREASE VALUE • Wherecan you increase the value delivered from a customer perspective based on the process map? • Can you add additional value either through the process or through IT enhancements? ELIMINATE WASTE • Prioritize the elimination of unnecessary steps. • Automate or eliminate necessary but non-value-added steps whenever possible. • Reduce lead time that doesn’t involve working on a customer need. INCORPORATING PROCESS IMPROVEMENT
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  BUILD A STORYMAP • Use your process map to build a backbone • Fit your stories beneath it under the appropriate process steps. • Look for gaps—places where stories are missing. • Can you complete the process? • Can you complete the steps within the process? • Are there risks or questions you must address? • Create an initial prioritization for each step. Photo by Joe Shillington on Unsplash
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  DO • Make thechange. CHECK • Evaluate outcomes against impact map. • Did you get predicted results? If not why? • Was value increased or waste eliminated? • Could learning help with other problems? ACT OR ADJUST • Resolve downstream issues. • Adjust based on pilot results. AFTER THE PLANNING
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  IT’S A JOURNEY,NOT A DESTINATION Photo by adrian on Unsplash
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  QUESTIONS? Contact • kevin@newba.com • @bakevin •linkedin.com/in/bakevin KEVIN BRENNAN INDEPENDENT CONSULTANT