Friday, May 25, 2012

Scrum --> Kanban = Scrumban or Kanban? Lessons at Lean Coffee


At Digité/ Swift-Kanban, we had a great visit to the LeanSSC (now Lean Systems Society) last week in Boston.  Having been in the market for just about a year, it is heartening to be recognized and even be told that we are considered one of the top 2-3 Kanban tools that are out there.

An exciting part of the conference was our announcement of our support for Scrumban (or Scrum features) besides our support for both iOS and Android tablets.  Those who came to the booth and saw a demo really loved our embedded support for release/ iteration planning, time capture, burn-down/ burn-up charts and all of the other new features we demonstrated during the show.  Someone from a competitor’s booth next to us in fact said we were pretty much the first Scrumban tool in the market, a possibility we had considered and talked about, although somewhat hesitantly!

The labeling of Scrumban was a matter of some discussion – both at the booth but more interestingly at the Monday (or Tuesday) morning Lean Coffee session organized by Jim Benson, where I posed the question – Scrum --> Kanban = Scrumban or Kanban?  In other words, when a Scrum team uses Kanban to improve their processes, is the end-result that they begin using a combination of Scrum and Kanban (Scrumban) or do they essentially start using just Kanban for software development?  Luckily for me, this question got the most votes and ended up being discussed for quite some time.


There were some great people at the table besides Jim - Jason Montague, Jabe Bloom, Alexei Zheglov and Joe Campbell amongst others and multiple opinions emerged around the table.  Most people felt that it would really depend on the team.  The more mature the team, the greater likelihood that they would be able to get away from the “constraints” of Scrum such as using the time-box – and thus just be using a Kanban process.  By implication, the less mature or less ‘self-organized’ teams would continue to use the time-box within the overall framework of Kanban.  Thus they would be using a Scrumban process. 

A second perspective was that most teams might use Scrumban as a transition phase before moving over completely to Kanban, giving up the time-box and to a more continuous delivery model.  (I should clarify that while the time-box was the main feature of Scrum being discussed, other aspects of the difference between Scrum and Kanban were also discussed.)

Finally, someone who joined towards the second half of the discussion added a third perspective – that if the purpose of Kanban was to help you improve what you are already doing, it is perfectly possible to believe that they may come out of that experience with a “better Scrum process”!

An added point that I wanted to get everyone’s vote on was whether Scrumban was a valid term that described either a transition or a longer lasting phase of a team using both Scrum and Kanban.  Most people around the table agreed that it was a valid phrase to use.  All in all, it was a great discussion and a learning experience – and I look forward to reactions from other prospects and customers of Swift-Kanban for further validation or repudiation of the premise!

Looking forward to the LSS13 in Chicago in April, 2013!

Mahesh Singh
Co-founder/Sr. VP - Product

Thursday, May 3, 2012

Kanban – Evolutionary or Revolutionary?!


One of the key benefits that David Anderson, the renowned Kanban thought-leader and father of the Kanban Method for software development (as well as Advisor to Digité) highlights about Kanban is that it is evolutionary and not revolutionary.  That is to say, it does not introduce a humongous new set of processes in an organization and cause massive disruption like traditional methods have tended to do.

There is no question that Kanban does not introduce a “big bang” new set of processes and rigor in an organization, with a whole new set of procedures to be learnt, guidelines to be followed, new documents/ deliverables to be created to show compliance.  In fact Kanban needs an existing process or methodology so that Kanban can be applied to improve that process!   In itself, Kanban is not a software development or project management methodology, as David clearly points out.

However, going by our own experience as well as that of many of our customers Kanban does introduce several small changes that can be considered revolutionary!  These changes – while not difficult to understand – might be considered extremely challenging – downright revolutionary! - to get used to and implement in a way that truly brings out the essence of Kanban and enable teams and organizations to reap the real benefits of Kanban.

Can you Pull?

While it is easy for everyone to understand the concept of Pull, I suspect it may not be understood just how hard it may be to implement and practice.  Most organizations are used to a somewhat hierarchical/ directive approach to deciding who works on what in any given situation.  Be it software project tasks or normal business function activities, managers are all too used to ‘telling’ their subordinates what to do – and for their part, employees are far too used to be ‘assigned’ work.  We live in a classic Push world.  In a significant – majority? – fraction of workplaces, employees bemoan the manner in which they are assigned work (after all why is Dlibert so popular?!), yet, left on their own, employees will look to managers to help them decide what work they should do next.  In a ‘good workplace environment”, managers will regularly sit down with subordinates to understand what work they can be given or can take on, before assigning work. This probably comes closest to being Pull. 

Kanban turns the whole thing on its head – and asks people to “Pull” work – assign it to themselves – ONLY when they have bandwidth to work, actively discouraging multi-tasking.  I can just see middle- and senior-management gasp in horror at the implications of this.  Not only can they not “TELL” their subordinates on what to work on next, they can’t even tell them to do 3 things at the same time!  Subordinates, on the other hand, must face their own demons. “How do I decide what to do?  I am paid to work that I am told to!  Someone better tell me quick!”  Even in knowledge industries, especially in top-down, hierarchy-conscious societies or where a lot of young (immature) people are part of the workforce, team members may be reluctant to exercise sufficient independence and free thought in order to grasp the new power they have in their hands with “Pull”.

Having come to and settled in the US from a not-so-long-ago-socialist India, I believe this may not be as much of a problem for Western/ American managers/ employees (although Dilbert is an American creation!), who have long been used to having plenty of choice in almost every aspect of life – and being able to ‘pull’ from a set of choices, as it would be people in developing/ socialist countries long used to government/ public sector driven choices – be it for automobiles (Ambassador or Fiat?) or toothpaste (Colgate or Binaca?) or jobs (Doctor or Engineer?).  However, that is perhaps a topic for another blog post!

Pull, if not revolutionary, is definitely a huge mind-set change – and needs all the support it can get from the management and the teams to make it work.  Management must encourage teams to take the necessary decisions to pull work.  Team members must step up the challenges and the responsibility of standing by their Pull decisions.  This, I suspect, takes some getting used to – and for Pull to start working in the Kanban sense of the word.

Thinking out of the (Time) Box

Everyone loves goals, objectives, deliverables and deadlines.  “Tell me what I need to do and by when, and then watch me do it!”  Financial Years and Quarter, Project milestones, Phase-Gates, Releases, Iterations, Sprints – time-boxes all.  Then along comes Kanban and says one word – “Cadence”!  Can you imagine the frenzy this must create in the minds of people trying to grasp this simple, yet elegant, concept?

Some of the common concerns I have heard -  
  •     “How can I understand what my team is doing, if they don’t tell me what they will deliver by when?!” Managers’ own ability to drive their teams without the 2 crucial crutches - scope and time-box – is severely impacted.   Managers must go through a tremendous reorientation to understand that even though the planning mechanism that a release or sprint or a project deadline provided, through the use of cadence and other mechanisms, they can still plan for significant events in their business, yet relieve pressure from teams and actually get them to perform better!
  •     “Unless my current iteration is complete, I do not want my team to look at work in the next iteration!”  The need to control what the team members are doing to the extent of not letting them get an early start on the next set of work may be rare, but it is there!
  •     “As a product company, how can I show my customers my product and release roadmap, if we don’t have defined iterations and releases?”

The mindset change required to get past this type of thinking requires enlightening everyone up and down the chain, including customers!   But the benefits are there for all to see.  At Digité, we have been able to do it for ourselves as well as for our customers – and in the process winning high praise for our responsiveness and speed of doing great product features.

How can I let go of my capability to W(H)IP?

We have all thrived on the ability to multi-task.  We have all touted the ability to do so.  We have exhorted our colleagues, especially our subordinates, to “just handle” stuff thrown their way.  And at great cost – in terms of quality of work, time taken to complete it and in sheer dollar cost.  And yet a vast majority of teams and managers continue to practice it.  Kanban changes all that.  It beings into sharp focus why multi-tasking is not good for the individual or the team and that limiting the amount of work being done at a time actually improves throughput and quality.

In many organizations, it just kills managers to get used to actually limiting the amount of work their subordinates will do at a time – and to prioritize the work for them so they can do so effectively! It actually forces the managers to face the reality that their teams cannot handle all the work dumped on them, and it can be a shocking experience to learn that by limiting WIP, their teams may actually produce more, better!  But to get to that stage requires them to believe, to take the plunge and over a period of 3-6 months actually get to observe that. It is not easy because it is so – revolutionary!

I hate to say this – but I am stuck!

A picture is worth a thousand words – we have all known that.  A chart or a report communicates the status of a project better than a detailed text report – we get that too.  But Kanban make our work visual in a very different way.  It not only helps you communicate how work is to be done, where it is at any point in time, where are the bottlenecks – and finally what (and who) might be stuck or blocked! 

As technical people, we thrive on complexity and challenge.  We love to solve problems – without asking for help.  We hate to give bad news to our team members, our bosses, our customers!  Kanban says – ditch that – and tell EVERYONE as soon as possible that you are stuck – and your work is blocked! In the most visual way!  Not only that, by doing so – you are also doing the unthinkable – you are asking the entire team to swarm and help you get unstuck! 

Yet suddenly, Kanban is helping us communicate to business stakeholders or customers that there are problems.  But work is progressing.  And is getting delivered. In line with the priority that they set!

So, yes, Kanban is evolutionary.  It does not bring about disruptive process changes that many processes and frameworks have done in the past.  Yet, with due apologies to and full credit to David, it is revolutionary as it strikes at fundamental management and organizational principles, turns things upside down – and makes for a more transparent, more open, more able to experiment type of an organization that is far more prepared to succeed in today’s business environment. 

Like I concluded at the talk I gave at Agile India 2012 conference in Bangalore earlier this year, I believe Kanban is evolutionary in the right places and revolutionary in the right places!

Mahesh Singh
Co-founder/ Sr. VP - Product
Digite, Inc.

Tuesday, March 27, 2012

Lean Software Development

Originally published on: http://msdn.microsoft.com/en-us/library/hh533841(v=vs.110).aspx
David Anderson describes Lean Software Development as follows:
  • Introduction
  • Lean and Agile
  • Lean Beyond Agile
  • Defining Lean Software Development
  • Values
  • Principles
  • Practices
The term Lean Software Development was first coined as the title for a conference organized by the ESPRIT initiative of the European Union, in Stuttgart Germany, October 1992. Independently, the following year, Robert “Bob” Charette in 1993 suggested the concept of “Lean Software Development” as part of his work exploring better ways of managing risk in software projects. The term “Lean” dates to 1991, suggested by James Womack, Daniel Jones, and Daniel Roos, in their book The Machine That Changed the World: The Story of Lean Production[3] as the English language term to describe the management approach used at Toyota. The idea that Lean might be applicable in software development was established very early, only 1 to 2 years after the term was first used in association with trends in manufacturing processes and industrial engineering.
In their 2nd book, published in 1995, Womack and Jones[4] defined five core pillars of Lean Thinking. These were:
  • Value
  • Value Stream
  • Flow
  • Pull
  • Perfection
This became the default working definition for Lean over most of the next decade. The pursuit of perfection, it was suggested, was achieved by eliminating waste. While there were 5 pillars, it was the 5th one, pursuit of perfection through the systemic identification of wasteful activities and their elimination, that really resonated with a wide audience. Lean became almost exclusively associated with the practice of elimination of waste through the late 1990s and the early part of the 21st Century.
The Womack and Jones definition for Lean is not shared universally. The principles of management at Toyota are far more subtle. The single word “waste” in English is described more richly with three Japanese terms:
  • Muda – literally meaning “waste” but implying non-value-added activity
  • Mura – meaning “unevenness” and interpreted as “variability in flow”
  • Muri – meaning “overburdening” or “unreasonableness”
Perfection is pursued through the reduction of non-value-added activity but also through the smoothing of flow and the elimination of overburdening. In addition, the Toyota approach was based in a foundational respect for people and heavily influenced by the teachings of 20th century quality assurance and statistical process control experts such as W. Edwards Deming.
Unfortunately, there are almost as many definitions for Lean as there are authors on the subject.

Lean and Agile

Bob Charette was invited but unable to attend the 2001 meeting at Snowbird, Utah, where the Manifesto for Agile Software Development[5] was authored. Despite missing this historic meeting, Lean Software Development was considered as one of several Agile approaches to software development. Jim Highsmith dedicated a chapter of his 2002 book[6] to an interview with Bob about the topic. Later, Mary & Tom Poppendieck went on to author a series of 3[7,8,9] books. During the first few years of the 21st Century, Lean principles were used to explain why Agile methods were better. Lean explained that Agile methods contained little “waste” and hence produced a better economic outcome. Lean principles were used as a “permission giver” to adopt Agile methods.

Lean Beyond Agile

In recent years, Lean Software Development has really emerged as its own discipline related to, but not specifically a subset of the Agile movement. This evolution started with the synthesis of ideas from Lean Product Development and the work of Donald G. Reinertsen[10,11] and ideas emerging from the non-Agile world of large scale system engineering and the writing of James Sutton and Peter Middleton[12]. I also synthesized the work of Eli Goldratt and W. Edwards Deming and developed a focus on flow rather than waste reduction[13]. At the behest of Reinertsen around 2005, I introduced the use of kanban systems that limit work-in-progress and “pull” new work only when the system is ready to process it. Alan Shalloway added his thoughts on Lean software development in his 2009 book on the topic[14]. Since 2007, the emergence of Lean as a new force in the progress of the software development profession has been focused on improving flow, managing risk, and improving (management) decision making. Kanban has become a major enabler for Lean initiatives in IT-related work. It appears that a focus on flow, rather than a focus on waste elimination, is proving a better catalyst for continuous improvement within knowledge work activities such as software development.

Defining Lean Software Development

Defining Lean Software Development is challenging because there is no specific Lean Software Development method or process. Lean is not an equivalent of Personal Software Process, V-Model, Spiral Model, EVO, Feature-Driven Development, Extreme Programming, Scrum, or Test-Driven Development. A software development lifecycle process or a project management process could be said to be “lean” if it was observed to be aligned with the values of the Lean Software Development movement and the principles of Lean Software Development. So those anticipating a simple recipe that can be followed and named Lean Software Development will be disappointed. You must fashion or tailor your own software development process by understanding Lean principles and adopting the core values of Lean.
There are several schools of thought within Lean Software Development. The largest, and arguably leading, school is the Lean Software & Systems Consortium, which includes Donald Reinertsen, Jim Sutton, Alan Shalloway, Bob Charette, and David J. Anderson. Mary and Tom Poppendieck’s work stands separately, as does the work of Craig Larman, Bas Vodde[15,16], and, most recently, Jim Coplien[17]. This article seeks to be broadly representative of the Lean Software & Systems Consortium viewpoint and to provide a synthesis and summary of their ideas.

Values

The Lean Software & Systems Consortium published its values and principles at the 2011 Lean Software & Systems Conference[18]. It lists the following values:
  • Accept the human condition
  • Accept that complexity & uncertainty are natural to knowledge work
  • Work towards a better Economic Outcome
  • While enabling a better Sociological Outcome
  • Seek, embrace & question ideas from a wide range of disciplines
  • A values-based community enhances the speed & depth of positive change
Accept the Human Condition
Knowledge work such as software development is undertaken by human beings. We humans are inherently complex and, while logical thinkers, we are also led by our emotions and some inherent animalistic traits that can’t reasonably be overcome. Our psychology and neuro-psychology must be taken into account when designing systems or processes within which we work. Our social behavior must also be accommodated. Humans are inherently emotional, social, and tribal, and our behavior changes with fatigue and stress. Successful processes will be those that embrace and accommodate the human condition rather than those that try to deny it and assume logical, machine-like behavior.
Accept that Complexity & Uncertainty are Natural to Knowledge Work
The behavior of customers and markets are unpredictable. The flow of work through a process and a collection of workers is unpredictable. Defects and required rework are unpredictable. There is inherent chance or seemingly random behavior at many levels within software development. The purpose, goals, and scope of projects tend to change while they are being delivered. Some of this uncertainty and variability, though initially unknown, is knowable in the sense that it can be studied and quantified and its risks managed, but some variability is unknowable in advance and cannot be adequately anticipated. As a result, systems of Lean Software Development must be able to react to unfolding events, and the system must be able to adapt to changing circumstances. Hence any Lean Software Development process must exist within a framework that permits adaptation (of the process) to unfolding events.
Work towards a better Economic Outcome
Human activities such as Lean Software Development should be focused on producing a better economic outcome. Capitalism is acceptable when it contributes both to the value of the business and the benefit of the customer. Investors and owners of businesses deserve a return on investment. Employees and workers deserve a fair rate of pay for a fair effort in performing the work. Customers deserve a good product or service that delivers on its promised benefits in exchange for a fair price paid. Better economic outcomes will involve delivery of more value to the customer, at lower cost, while managing the capital deployed by the investors or owners in the most effective way possible.
Enable a better Sociological Outcome
Better economic outcomes should not be delivered at the expense of those performing the work. Creating a workplace that respects people by accepting the human condition and provides systems of work that respect the psychological and sociological nature of people is essential. Creating a great place to do great work is a core value of the Lean Software Development community.

Principles

The Lean Software & Systems community seems to agree on a few principles that underpin Lean Software Development processes.
  • Follow a Systems Thinking & Design Approach
  • Emergent Outcomes can be Influenced by Architecting the Context of a Complex Adaptive System
  • Respect People (as part of the system)
  • Use the Scientific Method (to drive improvements)
  • Encourage Leadership
  • Generate Visibility (into work, workflow, and system operation)
  • Reduce Flow Time
  • Reduce Waste to Improve Efficiency
Follow a Systems Thinking & Design Approach
This is often referred to in Lean literature as “optimize the whole,” which implies that it is the output from the entire system (or process) that we desire to optimize, and we shouldn’t mistakenly optimize parts in the hope that it will magically optimize the whole. Most practitioners believe the corollary to be true, that optimizing parts (local optimization) will lead to a suboptimal outcome.
A Lean Systems Thinking and Design Approach requires that we consider the demands on the system made by external stakeholders, such as customers, and the desired outcome required by those stakeholders. We must study the nature of demand and compare it with the capability of our system to deliver. Demand will include so-called “value demand,” for which customers are willing to pay, and “failure demand,” which is typically rework or additional demand caused by a failure in the supply of value demand. Failure demand often takes two forms: rework on previously delivered value demand and additional services or support due to a failure in supplying value demand. In software development, failure demand is typically requests for bug fixes and requests to a customer care or help desk function.
A systems design approach requires that we also follow the Plan-Do-Study-Act (PDSA) approach to process design and improvement. W. Edwards Deming used the words “study” and “capability” to imply that we study the natural philosophy of our system’s behavior. This system consists of our software development process and all the people operating it. It will have an observable behavior in terms of lead time, quality, quantity of features or functions delivered (referred to in Agile literature as “velocity”), and so forth. These metrics will exhibit variability and, by studying the mean and spread of variation, we can develop an understanding of our capability. If this is mismatched with the demand and customer expectations, then the system will need to be redesigned to close the gap.
Deming also taught that capability is 95% influenced by system design, and only 5% is contributed by the performance of individuals. In other words, we can respect people by not blaming them for a gap in capability compared to demand and by redesigning the system to enable them to be successful.
To understand system design, we must have a scientific understanding of the dynamics of system capability and how it might be affected. Models are developed to predict the dynamics of the system. While there are many possible models, several popular ones are in common usage: the understanding of economic costs; so-called transaction and coordination costs that relate to production of customer-valued products or services; the Theory of Constraints – the understanding of bottlenecks; and The Theory of Profound Knowledge – the study and recognition of variability as either common to the system design or special and external to the system design.
Emergent Outcomes can be Influenced by Architecting the Context for a Complex Adaptive System
Complex systems have starting conditions and simple rules that, when run iteratively, produce an emergent outcome. Emergent outcomes are difficult or impossible to predict given the starting conditions. The computer science experiment “The Game of Life” is an example of a complex system. A complex adaptive system has within it some self-awareness and an internal method of reflection that enables it to consider how well its current set of rules is enabling it to achieve a desired outcome. The complex adaptive system may then choose to adapt itself – to change its simple rules – to close the gap between the current outcome and the desired outcome. The Game of Life adapted such that the rules could be re-written during play would be a complex adaptive system.
In software development processes, the “simple rules” of complex adaptive systems are the policies that make up the process definition. The core principle here is based in the belief that developing software products and services is not a deterministic activity, and hence a defined process that cannot adapt itself will not be an adequate response to unforeseeable events. Hence, the process designed as part of our system thinking and design approach must be adaptable. It adapts through the modification of the policies of which it is made.
The Kanban approach to Lean Software Development utilizes this concept by treating the policies of the kanban pull system as the “simple rules,” and the starting conditions are that work and workflow is visualized, that flow is managed using an understanding of system dynamics, and that the organization uses a scientific approach to understanding, proposing, and implementing process improvements.
Respect People
The Lean community adopts Peter Drucker’s definition of knowledge work that states that workers are knowledge workers if they are more knowledgeable about the work they perform than their bosses. This creates the implication that workers are best placed to make decisions about how to perform work and how to modify processes to improve how work is performed. So the voice of the worker should be respected. Workers should be empowered to self-organize to complete work and achieve desired outcomes. They should also be empowered to suggest and implement process improvement opportunities or “kaizen events” as they are referred to in Lean literature. Making process policies explicit so that workers are aware of the rules that constrain them is another way of respecting them. Clearly defined rules encourage self-organization by removing fear and the need for courage. Respecting people by empowering them and giving them a set of explicitly declared policies holds true with the core value of respecting the human condition.
Use the Scientific Method
Seek to use models to understand the dynamics of how work is done and how the system of Lean Software Development is operating. Observe and study the system and its capability, and then develop and apply models for predicting its behavior. Collect quantitative data in your studies, and use that data to understand how the system is performing and to predict how it might change when the process is changed.
The Lean Software & Systems community uses statistical methods such as statistical process control charts and spectral analysis histograms of raw data for lead time and velocity to understand system capability. They also use models such as: the Theory of Constraints to understand bottlenecks; The System of Profound Knowledge to understand variation that is internal to the system design versus that which is externally influenced; and an analysis of economic costs in the form of tasks performed to merely coordinate, set up, deliver, or clean up after customer-valued product or services are created. Some other models are coming into use, such as Real Option Theory, which seeks to apply financial option theory from financial risk management to real-world decision making.
The scientific method suggests: we study; we postulate an outcome based on a model; we perturb the system based on that prediction; and we observe again to see if the perturbation produced the results the model predicted. If it doesn’t, then we check our data and reconsider whether our model is accurate. Using models to drive process improvements moves it to a scientific activity and elevates it from a superstitious activity based on intuition.
Encourage Leadership
Leadership and management are not the same. Management is the activity of designing processes, creating, modifying, and deleting policy, making strategic and operational decisions, gathering resources, providing finance and facilities, and communicating information about context such as strategy, goals, and desired outcomes. Leadership is about vision, strategy, tactics, courage, innovation, judgment, advocacy, and many more attributes. Leadership can and should come from anyone within an organization. Small acts of leadership from workers will create a cascade of improvements that will deliver the changes needed to create a Lean Software Development process.
Generate Visibility
Knowledge work is invisible. If you can’t see something, it is (almost) impossible to manage it. It is necessary to generate visibility into the work being undertaken and the flow of that work through a network of individuals, skills, and departments until it is complete. It is necessary to create visibility into the process design by finding ways of visualizing the flow of the process and by making the policies of the process explicit for everyone to see and consider. When all of these things are visible, then the use of the scientific method is possible, and conversations about potential improvements can be collaborative and objective. Collaborative process improvement is almost impossible if work and workflow are invisible and if process policies are not explicit.
Reduce Flow Time
The software development profession and the academics who study software engineering have traditionally focused on measuring time spent working on an activity. The Lean Software Development community has discovered that it might be more useful to measure the actual elapsed calendar time something takes to be processed. This is typically referred to as Cycle Time and is usually qualified by the boundaries of the activities performed. For example, Cycle Time through Analysis to Ready for Deployment would measure the total elapsed time for a work item, such as a user story, to be analyzed, designed, developed, tested in several ways, and queued ready for deployment to a production environment.
Focusing on the time work takes to flow through the process is important in several ways. Longer cycle times have been shown to correlate with a non-linear growth in bug rates. Hence shorter cycle times lead to higher quality. This is counter-intuitive as it seems ridiculous that bugs could be inserted in code while it is queuing and no human is actually touching it. Traditionally, the software engineering profession and academics who study it have ignored this idle time. However, empirical evidence suggests that cycle time is important to initial quality.
Alan Shalloway has also talked about the concept of “induced work.” His observation is that a lag in performing a task can lead to that task taking a lot more effort than it may have done. For example, a bug found and fixed immediately may only take 20 minutes to fix, but if that bug is triaged, is queued and then waits for several days or weeks to be fixed, it may involve several or many hours to make the fix. Hence, the cycle time delay has “induced” additional work. As this work is avoidable, in Lean terms, it must be seen as “waste.”
The third reason for focusing on cycle time is a business related reason. Every feature, function, or user story has a value. That value may be uncertain but, nevertheless, there is a value. The value may vary over time. The concept of value varying over time can be expressed economically as a market payoff function. When the market payoff function for a work item is understood, even if the function exhibits a spread of values to model uncertainty, it is possible to evaluate a “cost of delay.” The cost of delay allows us to put a value on reducing cycle time.
With some work items, the market payoff function does not start until a known date in the future. For example, a feature designed to be used during the 4th of July holiday in the United States has no value prior to that date. Shortening cycle time and being capable of predicting cycle time with some certainty is still useful in such an example. Ideally, we want to start the work so that the feature is delivered “just in time” when it is needed and not significantly prior to the desired date, nor late, as late delivery incurs a cost of delay. Just-in-time delivery ensures that optimal use was made of available resources. Early delivery implies that we might have worked on something else and have, by implication, incurred an opportunity cost of delay.
As a result of these three reasons, Lean Software Development seeks to minimize flow time and to record data that enables predictions about flow time. The objective is to minimize failure demand from bugs, waste from over-burdening due to delay in fixing bugs, and to maximize value delivered by avoiding both cost of delay and opportunity cost of delay.
Reduce Waste to Improve Efficiency
For every valued-added activity, there are setup, cleanup and delivery activities that are necessary but do not add value in their own right. For example, a project iteration that develops an increment of working software requires planning (a setup activity), an environment and perhaps a code branch in version control (collectively known as configuration management and also a setup activity), a release plan and performing the actual release (a delivery activity), a demonstration to the customer (a delivery activity), and perhaps an environment teardown or reconfiguration (a cleanup activity.) In economic terms, the setup, cleanup, and delivery activities are transaction costs on performing the value-added work. These costs (or overheads) are considered waste in Lean.
Any form of communication overhead can be considered waste. Meetings to determine project status and to schedule or assign work to team members would be considered a coordination cost in economic language. All coordination costs are waste in Lean thinking. Lean software development methods seek to eliminate or reduce coordination costs through the use of colocation of team members, short face-to-face meetings such as standups, and visual controls such as card walls.
The third common form of waste in Lean Software Development is failure demand. Failure demand is a burden on the system of software development. Failure demand is typically rework or new forms of work generated as a side-effect of poor quality. The most typical forms of failure demand in software development are bugs, production defects, and customer support activities driven out of a failure to use the software as intended. The percentage of work-in-progress that is failure demand is often referred to as Failure Load. The percentage of value-adding work against failure demand is a measure of the efficiency of the system.
The percentage of value-added work against the total work, including all the non-value adding transaction and coordination costs, determines the level of efficiency. A system with no transaction and coordination costs and no failure load would be considered 100% efficient.
Traditionally, Western management science has taught that efficiency can be improved by increasing the batch size of work. Typically, transaction and coordination costs are fixed or rise only slightly with an increase in batch size. As a result, large batches of work are more efficient. This concept is known as "economy of scale." However, in knowledge work problems, coordination costs tend to rise non-linearly with batch size, while transaction costs can often exhibit a linear growth. As a result, the traditional 20th Century approach to efficiency is not appropriate for knowledge work problems like software development.
It is better to focus on reducing the overheads while keeping batch sizes small in order to improve efficiency. Hence, the Lean way to be efficient is to reduce waste. Lean software development methods focus on fast, cheap, and quick planning methods; low communication overhead; and effective low overhead coordination mechanisms, such as visual controls in kanban systems. They also encourage automated testing and automated deployment to reduce the transaction costs of delivery. Modern tools for minimizing the costs of environment setup and teardown, such as modern version control systems and use of virtualization, also help to improve efficiency of small batches of software development.

Practices

Lean Software Development does not prescribe practices. It is more important to demonstrate that actual process definitions are aligned with the principles and values. However, a number of practices are being commonly adopted. This section provides a brief overview of some of these.
Cumulative Flow Diagrams
Cumulative Flow Diagrams have been a standard part of reporting in Team Foundation Server since 2005. Cumulative flow diagrams plot an area graph of cumulative work items in each state of a workflow. They are rich in information and can be used to derive the mean cycle time between steps in a process as well as the throughput rate (or “velocity”). Different software development lifecycle processes produce different visual signatures on cumulative flow diagrams. Practitioners can learn to recognize patterns of dysfunction in the process displayed in the area graph. A truly Lean process will show evenly distributed areas of color, smoothly rising at a steady pace. The picture will appear smooth without jagged steps or visible blocks of color.
In their most basic form, cumulative flow diagrams are used to visualize the quantity of work-in-progress at any given step in the work item lifecycle. This can be used to detect bottlenecks and observe the effects of “mura” (variability in flow).
Visual Controls
In addition to the use of cumulative flow diagrams, Lean Software Development teams use physical boards, or projections of electronic visualization systems, to visualize work and observe its flow. Such visualizations help team members observe work-in-progress accumulating and enable them to see bottlenecks and the effects of “mura.” Visual controls also enable team members to self-organize to pick work and collaborate together without planning or specific management direction or intervention. These visual controls are often referred to as “card walls” or sometimes (incorrectly) as “kanban boards.”
Virtual Kanban Systems
A kanban system is a practice adopted from Lean manufacturing. It uses a system of physical cards to limit the quantity of work-in-progress at any given stage in the workflow. Such work-in-progress limited systems create a “pull” where new work is started only when there are free kanban indicating that new work can be “pulled” into a particular state and work can progress on it.
In Lean Software Development, the kanban are virtual and often tracked by setting a maximum number for a given step in the workflow of a work item type. In some implementations, electronic systems keep track of the virtual kanban and provide a signal when new work can be started. The signal can be visual or in the form of an alert such as an email.
Virtual kanban systems are often combined with visual controls to provide a visual virtual kanban system representing the workflow of one or several work item types. Such systems are often referred to as “kanban boards” or “electronic kanban systems.” A visual virtual kanban system is available as a plug-in for Team Foundation Server, called Visual WIP[19]. This project was developed as open source by Hakan Forss in Sweden.
Small Batch Sizes / Single-piece Flow
Lean Software Development requires that work is either undertaken in small batches, often referred to as “iterations” or “increments,” or that work items flow independently, referred to as “single-piece flow.” Single-piece flow requires a sophisticated configuration management strategy to enable completed work to be delivered while incomplete work is not released accidentally. This is typically achieved using branching strategies in the version control system. A small batch of work would typically be considered a batch that can be undertaken by a small team of 8 people or less in under 2 weeks.
Small batches and single-piece flow require frequent interaction with business owners to replenish the backlog or queue or work. They also require a capability to release frequently. To enable frequent interaction with business people and frequent delivery, it is necessary to shrink the transaction and coordination costs of both activities. A common way to achieve this is the use of automation.
Automation
Lean Software Development expects a high level of automation to economically enable single-piece flow and to encourage high quality and the reduction of failure demand. The use of automated testing, automated deployment, and software factories to automate the deployment of design patterns and creation of repetitive low variability sections of source code will all be commonplace in Lean Software Development processes.
Kaizen Events
In Lean literature, the term kaizen means “continuous improvement” and a kaizen event is the act of making a change to a process or tool that hopefully results in an improvement.
Lean Software Development processes use several different activities to generate kaizen events. These are listed here. Each of these activities is designed to stimulate a conversation about problems that adversely affect capability and, consequently, ability to deliver against demand. The essence of kaizen in knowledge work is that we must provoke conversations about problems across groups of people from different teams and with different skills.
Daily standup meetings
Teams of software developers, often up to 50, typically meet in front of a visual control system such as a whiteboard displaying a visualization of their work-in-progress. They discuss the dynamics of flow and factors affecting the flow of work. Particular focus is made to externally blocked work and work delayed due to bugs. Problems with the process often become evident over a series of standup meetings. The result is that a smaller group may remain after the meeting to discuss the problem and propose a solution or process change. A kaizen event will follow. These spontaneous meetings are often referred to as spontaneous quality circles in older literature. Such spontaneous meetings are at the heart of a truly kaizen culture. Managers will encourage the emergence of kaizen events after daily standup meetings in order to drive adoption of Lean within their organization.
Retrospectives
Project teams may schedule regular meetings to reflect on recent performance. These are often done after specific project deliverables are complete or after time-boxed increments of development known as iterations or sprints in Agile software development.
Retrospectives typically use an anecdotal approach to reflection by asking questions like “what went well?”, “what would we do differently?”, and “what should we stop doing?”
Retrospectives typically produce a backlog of suggestions for kaizen events. The team may then prioritize some of these for implementation.
Operations Reviews
An operations review is typically larger than a retrospective and includes representatives from a whole value stream. It is common for as many as 12 departments to present objective, quantitative data that show the demand they received and reflect their capability to deliver against the demand. Operations reviews are typically held monthly. The key differences between an operations review and a retrospective is that operations reviews span a wider set of functions, typically span a portfolio of projects and other initiatives, and use objective, quantitative data. Retrospectives, in comparison, tend to be scoped to a single project; involve just a few teams such as analysis, development, and test; and are generally anecdotal in nature.
An operations review will provoke discussions about the dynamics affecting performance between teams. Perhaps one team generates failure demand that is processed by another team? Perhaps that failure demand is disruptive and causes the second team to miss their commitments and fail to deliver against expectations? An operations review provides an opportunity to discuss such issues and propose changes. Operations reviews typically produce a small backlog of potential kaizen events that can be prioritized and scheduled for future implementation.
There is no such thing as a single Lean Software Development process. A process could be said to be Lean if it is clearly aligned with the values and principles of Lean Software Development. Lean Software Development does not prescribe any practices, but some activities have become common. Lean organizations seek to encourage kaizen through visualization of workflow and work-in-progress and through an understanding of the dynamics of flow and the factors (such as bottlenecks, non-instant availability, variability, and waste) that affect it. Process improvements are suggested and justified as ways to reduce sources of variability, eliminate waste, improve flow, or improve value delivery or risk management. As such, Lean Software Development processes will always be evolving and uniquely tailored to the organization within which they evolve. It will not be natural to simply copy a process definition from one organization to another and expect it to work in a different context. It will also be unlikely that returning to an organization after a few weeks or months to find the process in use to be the same as was observed earlier. It will always be evolving.
The organization using a Lean software development process could be said to be Lean if it exhibited only small amounts of waste in all three forms (“mura,” “muri,” and “muda”) and could be shown to be optimizing the delivery of value through effective management of risk. The pursuit of perfection in Lean is always a journey. There is no destination. True Lean organizations are always seeking further improvement.
Lean Software Development is still an emerging field, and we can expect it to continue to evolve over the next decade.
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  18. http://www.leanssc.org/2011/05/leanssc-vision-values-and-mission-1-0beta/
  19. http://hakanforss.wordpress.com/2010/11/23/visual-wip-a-kanban-board-for-tfs
-- David Anderson