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Flow•gnosis

Solutions Demand Problems

I’m obliged to Ben Simo (@QualityFrog) for a couple of recent tweets that prompted me to write this post:

BenSImoTweets

I very much concur that solutions disconnected from problems have little value or utility. It’s probably overdue to remind myself of the business problems which spurred me to create the various solutions I regularly blog about.

FlowChain

Problem

Continually managing projects (portfolios of projects, really) is a pain in the ass and a costly overhead (it doesn’t contribute to the work getting done, it causes continual scheduling and bottlenecking issues around key specialists, detracts from autonomy and shared purpose, and – from a flow-of-value-to-the-customer perspective – chops up the flow into mini-silos (not good for smooth flow). Typically, projects also leave little or no time, or infrastructure, for continually improving the way the work works. And the project approach is a bit like a lead overcoat, constraining management’s options, and making it difficult to make nimble re-adjustments to priorities on-the-fly.

Solution (in a Nutshell)

FlowChain proposes a single organisational backlog, to order all proposed new features and products, along with all proposed improvement actions (improvement to the way the work works). Guided by policies set by e.g. management, people in the pool of development specialists coalesce – in small groups, and in chunks of time of just a few days – around each suitable highest-priority work item to see it through to “done”.

Prod•gnosis

Problem

Speed to market for new products is held back and undermined by the conventional piecemeal, cross-silo approach to new product development. With multiple hands-offs, inter-silo queues, rework loops, and resource contentions, the conventional approach creates excessive delays (cf cost of delay), drives up the cost-of-quality (due to the propensity for errors), and the need for continual management  interventions (constant firefighting).

Solution (in a Nutshell)

Prod•gnosisproposes a holistic approach to New Product Development, seeing each product line or product family as an operational value stream (OVS), and the ongoing challenge as being the bringing of new operational value streams into existence. The Prod•gnosis approach stipulates an OVS-creating centre of excellence: a group of people with all the skills necessary to quickly and reliably creating new OVSs. Each new OVS, once created, is handed over to a dedicated OVS manager and team to run it under day-to-day BAU (Business as Usual).

Flow•gnosis

Problem

FlowChain was originally conceived as a solution for Analytic-minded organisations. In other words, an organisation with conventional functional silos, management, hierarchy, etc. In Synergistic-minded organisations, some adjustments can make FlowChain much more effective and better suited to that different kind of organisation.

Solution (in a Nutshell)

Flow•gnosis merges Prod•gnosis and FlowChain together, giving an organisation-wide, holistic solution which improves organisational effectiveness, reifies Continuous Improvement, speeds flowof new products into the market, provides an operational (value stream based) model for the whole business, and allows specialists from many functions to work together with a minimum of hand-offs, delays, mistakes and other wastes.

Rightshifting

Problem

Few organisations have a conscious idea of how relatively effective they are, and of the scope for them to become much more effective (and thus profitable, successful, etc.). Absent this awareness, there’s precious little incentive to lift one’s head up from the daily grind to imagine what could be.

Solution (in a Nutshell)

Rightshifting provides organisations with a context within which to consider their relative effectiveness, both with respect to other similar organisations, and more significantly, with respect to the organisation’s potential future self.

The Marshall Model

Problem

Few organisations have an explicit model for organisational effectiveness. Absence of such a model makes it difficult to have conversations around what actions the organisation needs to take to become more effective. And for change agents such as Consultants and Enterprise Coaches attempting to assist an organisation towards increased effectiveness, it can be difficult to choose the most effective kinds of interventions (these being contingent upon where the organisation is “at”, with regard to its set of collective assumptions and beliefs a.k.a. mindset).

Solution (in a Nutshell)

The Marshall Model provides an explanation of organisational effectiveness. The model provides a starting point for folks inside an organisation to begin discussing their own perspectives on what effectiveness means, what makes their own particular organisation effective, and what actions might be necessary to make the organisation more effective. Simultaneously, the Marshall Model (a.k.a. Dreyfus for Organisations) provides a framework for change agents to help select the kinds of interventions most likely to be successful.

Organisational Psychotherapy

Problem

Some organisations embrace the idea that the collective organisational mindset – what people, collectively believe about how organisations should work – is the prime determinant of organisational effectiveness, productivity, quality of life at work, profitability, and success. If so, how to “shift” the organisation’s mindset, its collective beliefs, assumptions and tropes, to a more healthy and effective place? Most organisations do not naturally have this skill set or capability. And it can take much time, and many costly missteps along the way, to acquire such a capability.

Solution (in a Nutshell)

Organisational Psychotherapy provides a means to accelerate the acquisition of the necessary skills and capabilities for an organisation to become competent in continually revising its collective set of assumptions and beliefs. Organisational Psychotherapy provides guidance and support to organisations in all stages of this journey.

Emotioneering

Problem

Research has shown conclusively that people buy things not on rational lines, but on emotional lines. Rationality, if it has a look-in at all, is reserved for post-hoc justification of buying decisions. Most product development today is driven by rationality. What are the customers’ pain points? What are the user stories or customer journeys we need to address? What features should we provide to ameliorate those pain points and meet those user needs? Upshot: mediocre products which fail to appeal to the buyers emotions, excepting by accident. And thus less customer appeal, and so lower margins, lower demand and slower growth.

Solution (in a Nutshell)

Emotioneering proposes replacing the conventional requirements engineering process (whether that be big-design-up-front or incremental/iterative design) focusing as it does on product features, with an *engineering* process focusing on ensuring our products creaate the emotional responses we wish to evoke in our customers and markets.

The Antimatter Principle

Problem

How to create an environment where the relationships between people can thrive and flourish? An environment where engagement and morale is consistent through the roof? Where joy, passion and discretionary effort are palpable, ever-present and to-the-max?

Solution (in a Nutshell)

The Antimatter Principleproposes that putting the principle of “attending to folks’ needs” at front and centre of allof the organisations policies is by far the best way to create an environment where the relationships between people can thrive and flourish. Note: this includes policies governing the engineeringdisciplines of the organisation, i.e. attending to customers’ needs at least as much as to the needs of all the other Folks That Matter.

– Bob

Holistic Solutions for Product Development Businesses

Several people have been in contact this week to say “It’s all very well talking about holistic solutions for software development, but who really has any notion of what that might even look like?”

Which is a fair question.

Aside: Let’s note that the phrase “holistic solution for software development” is an oxymoron of the first order. By definition, software development is but part (and generally a small part) of any solution that addresses customer or market needs. Even software “pure plays” have a lot of non-software components.

So, I thought I’d describe just one holistic solution for whole organisations that develop new products containing some software. For want of a better name, I’ll call it this example “Flow•gnosis”. With this example, I hope that maybe one or two readers might find a spark of insight or inspiration to broach the question of a True Consensus in their own organisation.

I’ll try to keep this post brief. I’d be happy to come talk with you about holistic product development solutions for organisations, in person, if you have any real interest.

Flow•gnosis?

Flow•gnosis is a hybrid born of FlowChain and Prod•gnosis. FlowChain is not specifically a holistic solution, focussing as it does on improving the flow of knowledge work through a development group or department whilst moving continuous improvement “in-band”. Prod•gnosis is specifically a holistic solution for effective, organisation-wide product development, but says little about how to organise the work for e.g. improved flow or continuous improvement.

Together, they serve as an exemplar of a holistic solution for knowledge-work organisations, such as software product companies, software houses, tech product companies, and organisations of every stripe with in-house product development needs.

Let’s also note that Flow•gnosis is just an example, to illuminate just a few aspects of a holistic solution. Do not under any circumstances consider copying it or cloning it. Aside from the lack of detail presented here, you’d be missing the whole point of the challenge: building a True Consensus, as a group, with your people, in your context.

What’s the Problem?

Before talking more about a solution, what’s the problem we’re trying to solve?

I’ll work through an almost universal problem facing organisations that “do” software development. A problem that some enterprising supplier or management team might choose to address with an “innovative” solution.

Understanding the Problem

Here are some typical Undesirable Effects (UDEs) I hear from many companies involved in software and product development:

UDE: Delivery is not fast enough (long time-to-market)

UDE: New products cost too much to develop (high cost to bring to market)

UDE: We struggle to keep our products at the cutting edge

UDE: We always drop balls in hand-offs of tasks (i.e. between specialists, or business functions)

UDE: Continual contention for in-demand specialists

(For the sake of brevity, I’ll skip the building and analysis of the cause and effect graph. Your analysis will be different, in any case).

Root cause: Developing new software, products and services through a byzantine labyrinth of tasks and hand-offs, between and across dozens of specialisms within the company and its network of suppliers and distributors. This approach causes many delays (waste of time), mistakes (waste of effort, money), contention of resources, etc.

Conflict: A) Specialists must work together in their own specialist groups or silos to maintain their cutting-edge skills and know-how. B) Specialists from across all specialisms must work together as a group else handoffs and queues will cause many delays and mistakes.

Conflict arrow: Specialists cannot work in their own groups advancing their specialist knowledge at the same time as they work together with other kinds of specialist on new product ideas.

Flawed assumption at the root of the conflict: Specialists must work together. What makes this so? Only the old rules of the organisation. That silos (a.k.a. business functions) “own” their clutch of specialists. What if we changed that rule? (Note: this change is one key element of Toyota’s TPDS). And if we changed that rule, what other rules would we need to change too?

A Bird’s Eye View of Flow•gnosis

Prod•gnosis looks at an organisation as a collection of parallel Operational Value Streams, each dedicated to the selling and support of one of the organisations’ (whole) product or service lines. And each with its own team or collection of people doing the daily work of that operational value stream. Further, Prod•gnosis asks “How do these operational value streams come into being?” And answers with “They are made/created/developed by a dedicated Product Development Value Stream.”

FlowChain describes a way of working where a pool of self-organising specialists draws priority work from a backlog, executes the work, and delivers both the requested work item, and posting new work items (for improving the ways the work works) into the backlog. In this way, FlowChain both improves flow of work through the system, and brings continuous improvement “in-band”

By merging Prod•gnosis and FlowChain together into Flow•gnosis, we have an organisation-wide, holistic example which improves organisational effectiveness, reifies Continuous Improvement, speeds flow of new products into the market, provides an operational (value stream based) model for the whole business, and allows specialists from many functions to work together with a minimum of hand-offs, delays, mistakes and other wastes.

The latter point is perhaps the most significant aspect of Flow•gnosis. Having customer, supplier, marketing, sales, finance, logistics, service, billing, support and technical (e.g. software, usability, emotioneering, techops, etc.) specialists all working together (cf. Toyota’s Obeya or “Big Room” concept) enables the evolution of “Mafia Products” and “Mafia Offers” which the more traditional silo-based models of business organisation just can’t address effectively.

Out With the Old Rules, In with the New

Flow•gnosis is an innovation. Irrespective of the promised benefits of Flow•gnosis, we have learnt in recent posts that adopting an innovation ONLY brings benefits when we change the rules.

Let’s apply the four questions to our Flow•gnosis innovation and see what rule changes will be necessary to truly reap the benefits.

Q1: What is the POWER of Flow•gnosis?
A1: Flow•gnosis makes it commercially feasible for a company to repeatably come to market with new “Mafia Products”.

Mafia Product: “A product (or service) so compelling that your customers can’t refuse it and your competition can’t or won’t offer the same.”

Q2: What limitation does Flow•gnosis diminish?
A2:  Serialisation of specialist work (passing things back and forth between various specialist and business functions).

Q3: What existing rules served to help us accommodate that limitation?
A3: Handoffs. Queues. Batches. Separation of command and control from the work. Process. Process conformance. Local measures. Constant expediting. Critical path planning (Gannt charts, WBS). Local optima. Functional management (discrete management of each separate business function).

Q4: What (new) rules must we use now?
A4: Flow. Value streams. SBCE. Holistic measures. Ubiquitous information radiators. Cost Of Delay prioritisation. Buffer management. Constant collaboration. Dedicated teams of generalising specialists. Self-organisation. In-band continuous improvement. Resource levelling. Limits on WIP.

Summary

This post has been a – necessarily brief – look at one holistic solution to (software) product development. Crucially, we have seen how old rules have to be replaced, and what many of the replacement new rules might look like.

I invite you to remember that Flow•gnosis is just an broad-brush example of a holistic solution. Please don’t consider copying it or cloning it. And remember the real challenge: building, as a management group, a True Consensus.

– Bob

Further Reading

Meeting Folks’ Needs At Scale – Think Different blog post

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