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Efficient and Effective. The Best of Two Worlds

Efficient and Effective. The Best of Two Worlds

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How much business agility can an organization achieve? Is this related to the nature of the organization? To its business model, size, culture, geographical distribution, leadership? Yes, certainly all these elements play a fundamental role in how and in how much agility we can expect to have.

You might be surprised to know, though, that there are different ways in which those elements can contribute, which means that business agility is achievable in quite different types of organizations, sometimes unexpectedly.

In this session, we are going to relate part of the journey that the speakers, in their function of business agility coaches, are traveling with one of their clients, Pietro Fiorentini Spa, an Oil&Gas multinational company.

This company is exceptionally well-versed in Lean methods, which they have brought outside of just production and into different functions of the organization, and this has provided them with a great deal of efficiency in what they do.

However, they realize that efficiency (“doing the thing right”) without effectiveness (“doing the right thing”) is worthless or even harmful.

So their quest for business agility is a challenge in preserving all that makes them so efficient and improving, through news processes and ways of collaborating, their effectiveness.

We are going to discuss some of the changes that are being implemented in terms of leadership, self-organization, and team autonomy in several functions, including concrete examples coming form the designing and building of one of their production lines.

We intend to illustrate how business agility goes beyond production (certainly way beyond software production) and can coexist — and be synergetic — with some well-established management approaches.

Originally presented the 12 September 2020 at Agile Business Day, Andrea Provaglio, Paolo Sammicheli, and Andrea Aganetti.

How much business agility can an organization achieve? Is this related to the nature of the organization? To its business model, size, culture, geographical distribution, leadership? Yes, certainly all these elements play a fundamental role in how and in how much agility we can expect to have.

You might be surprised to know, though, that there are different ways in which those elements can contribute, which means that business agility is achievable in quite different types of organizations, sometimes unexpectedly.

In this session, we are going to relate part of the journey that the speakers, in their function of business agility coaches, are traveling with one of their clients, Pietro Fiorentini Spa, an Oil&Gas multinational company.

This company is exceptionally well-versed in Lean methods, which they have brought outside of just production and into different functions of the organization, and this has provided them with a great deal of efficiency in what they do.

However, they realize that efficiency (“doing the thing right”) without effectiveness (“doing the right thing”) is worthless or even harmful.

So their quest for business agility is a challenge in preserving all that makes them so efficient and improving, through news processes and ways of collaborating, their effectiveness.

We are going to discuss some of the changes that are being implemented in terms of leadership, self-organization, and team autonomy in several functions, including concrete examples coming form the designing and building of one of their production lines.

We intend to illustrate how business agility goes beyond production (certainly way beyond software production) and can coexist — and be synergetic — with some well-established management approaches.

Originally presented the 12 September 2020 at Agile Business Day, Andrea Provaglio, Paolo Sammicheli, and Andrea Aganetti.

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Efficient and Effective. The Best of Two Worlds

  1. 1. Andrea Provaglio, Paolo Sammicheli, Andrea Aganetti Efficient and Effective The Best of Two Worlds 12 September 2020
  2. 2. Andrea Provaglio Enterprise Agility Coach
 http://andreaprovaglio.com Who We Are Andrea Aganetti Product Owner
 KPO Team Leader http://fiorentini.com Paolo Sammicheli Agile Business Coach, Scrum Trainer
 International Author and Speaker http://paolo.sammiche.li
  3. 3. The Company Andrea Aganetti
  4. 4. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Copyleft Pietro Fiorentini Spa, Paolo Sammicheli, Andrea Provaglio. Pietro Fiorentini Spa We are an international Company that designs, manufactures and installs equipment, complete solutions and services for Oil and Gas treatment, metering and regulation.
  5. 5. Our Numbers • Over 80 years of history • Export started in 1956 • Over 1700 employees worldwide • 6 production facilities in Italy • 7 production facilities worldwide • Sales offices located in Europe, America, Africa and Asia
  6. 6. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Copyleft Pietro Fiorentini Spa, Paolo Sammicheli, Andrea Provaglio. Why Lean and Agile together • With Lean we achieved Efficiency • With Agile we want to improve Effectiveness An organization that simultaneously manages the existing business model and its change CONSOLIDATE EXPLORE / PROBE BACKBONE NETWORK ORGANIZATION AUTONOMY AND DISTRIBUTED LIABILITY
  7. 7. Agility at the Enterprise Level Andrea Provaglio
  8. 8. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Copyleft Pietro Fiorentini Spa, Paolo Sammicheli, Andrea Provaglio. PF Gave Me Food for Thought Mmh, Lean + Agile, uh…?
  9. 9. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Copyleft Pietro Fiorentini Spa, Paolo Sammicheli, Andrea Provaglio. Remember, We Are All Children of the Industrial Revolution
  10. 10. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Copyleft Pietro Fiorentini Spa, Paolo Sammicheli, Andrea Provaglio. I’m Going To Touch On… Performance Management Value Creation Leadership Culture
  11. 11. • Lean Production Lines (obviously) • Value Streams + Organizational Functional Units • Yearly company-wide Lean Transformation Plan • 1 Kaizen week / month, 15 teams (3000+ man- hour per month!) • Japanese Sensei overlooking the Kaizen process • 5S for workstation efficiency • 3P methodology for hardware prototyping • They’ve been doing this for two decades • Lean culture deeply ingrained in the organization PF Is Very Lean This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Copyleft Pietro Fiorentini Spa, Paolo Sammicheli, Andrea Provaglio.
  12. 12. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Copyleft Pietro Fiorentini Spa, Paolo Sammicheli, Andrea Provaglio. We Have/Had Agile Teams Working On… • Several IT projects • One TLC project • One Architecture project (new offices layout) • Plant & Process Packages jobs (delivery of full systems) • Kick-off of a start-up company • A few hardware devices (for quality and innovation)
 • One IT product / service • One production line “product” (more about this later) Projects Products
  13. 13. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Copyleft Pietro Fiorentini Spa, Paolo Sammicheli, Andrea Provaglio. What We Did So Far • Create as-stable-as-possible dedicated teams • Implemented nested feedback loops at the technical and business level • Reduced team dependencies • Improved self-management of project/ product teams
  14. 14. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Copyleft Pietro Fiorentini Spa, Paolo Sammicheli, Andrea Provaglio. 3x Faster
  15. 15. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Copyleft Pietro Fiorentini Spa, Paolo Sammicheli, Andrea Provaglio. Noticing the “Artifacts” is Part of my Work
  16. 16. • Lean originates from industrial production (tangible goods) • Agile originates from IT (intangible goods) • Easy to confuse the intent of one practice with another • Let’s see some example… Where It Gets Trickier This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Copyleft Pietro Fiorentini Spa, Paolo Sammicheli, Andrea Provaglio.
  17. 17. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Copyleft Pietro Fiorentini Spa, Paolo Sammicheli, Andrea Provaglio. KPIs Are Not For Cognitive Work • KPIs are for measuring a process, which must be visible and quantifiable • People go after intents, goals, objectives, aspirations, attempts, ideas; they learn by doing, by trying, by experimenting and also by failing. How do you quantify and measure that? • OKRs (or similar approaches) are more fit to promote virtuous behaviors in teams doing cognitive work This doesn’t work
  18. 18. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Copyleft Pietro Fiorentini Spa, Paolo Sammicheli, Andrea Provaglio. Outcome over Output • When the desired result is clear and the process to get there is well defined, we naturally focus on maximizing Output (Lean) • When the goal is more abstract and the conditions are unpredictably changing, we should focus more on maximizing Outcome (Agile) • In an industrial mindset, it’s easy to confuse Output (work done) with Outcome (valuable results)
  19. 19. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Copyleft Pietro Fiorentini Spa, Paolo Sammicheli, Andrea Provaglio. An Extra Layer of Leadership Skills • In Lean the manager is “the expert” • Management approach is “Just-in-Time” • This is consistent with having clear goals and processes and tends to create specialists • Agile leadership is based on the assumption that things are and will be uncertain • Therefore, leaders and managers must create a safe environment in which to live with uncertainty and also be effective
  20. 20. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Copyleft Pietro Fiorentini Spa, Paolo Sammicheli, Andrea Provaglio. Our Work in Progress • Introducing performance management practices that are fit for complex, cognitive work (based on goals and feedbacks) • Improving the Product Ownership practices (for Value and Effectiveness) • Developing the understanding and practice of Leadership in an Agile culture
  21. 21. Scrum for Hardware in Oil&Gas Paolo Sammicheli
  22. 22. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Copyleft Pietro Fiorentini Spa, Paolo Sammicheli, Andrea Provaglio. Context The selected Scrum Team Product was the Production Line of a New Gas Pressure Regulator. The New Gas Pressure Regulator (in the picture) was develop by another Team in another site and started before the production line.
  23. 23. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Copyleft Pietro Fiorentini Spa, Paolo Sammicheli, Andrea Provaglio. Team Lift Off
  24. 24. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Copyleft Pietro Fiorentini Spa, Paolo Sammicheli, Andrea Provaglio. • The brainstorming occurred in 4 different table. All the ideas then have been then merged into a single Canvas explaining the reason why of the new product. Basic Canvas Free Download: https://paolo.sammiche.li/download
  25. 25. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Copyleft Pietro Fiorentini Spa, Paolo Sammicheli, Andrea Provaglio. • The existing KPO served the team as Scrum Master • Cross functional team with representatives from: Tooling department, Maintenance and Logistics Pilot Team formed: theRollingScrums
  26. 26. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Copyleft Pietro Fiorentini Spa, Paolo Sammicheli, Andrea Provaglio. Scrum Team Room PROTOTYPING PROTOTYPING BUILD and TEST
  27. 27. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Copyleft Pietro Fiorentini Spa, Paolo Sammicheli, Andrea Provaglio. Incremental development with Lean 3P «Lean 3P is an event-driven cross-functional team process. This rapid prototyping process is called try-storming, and it involves creation of trial designs to see how well they solve product and process challenges. Try-storming, like the name implies, is a hands-on extension of the brainstorming process. Try-storming is a type of prototyping that takes ideas and quickly mocks them up, so they can be evaluated physically. (…) It should be inserted early in the Product Development process to align all of the many vertical functions in our horizontal value stream.» — Extract from: the Lean 3P Advantage, Allan R. Coletta, 2012
  28. 28. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Copyleft Pietro Fiorentini Spa, Paolo Sammicheli, Andrea Provaglio. Architectural Fishbone served as User Story Mapping
  29. 29. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Copyleft Pietro Fiorentini Spa, Paolo Sammicheli, Andrea Provaglio. Sprint Board • Including everything: Features, Bugs, Chore, Interruptions and Kaizen. • Scrum Patterns implemented: • Interruption Buffer • Scrumming the Scrum • Yesterday’s Weather • Swarming
  30. 30. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Copyleft Pietro Fiorentini Spa, Paolo Sammicheli, Andrea Provaglio. Lean 3P and Scrum x10 x50 x250 Prototype • Lean 3P incremental level served as User Story’s Acceptance Criteria. • Very smooth adoption since the team members were familiar with the approach from the beginning.
  31. 31. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Copyleft Pietro Fiorentini Spa, Paolo Sammicheli, Andrea Provaglio. 3D Printing to shorten feedback
  32. 32. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Copyleft Pietro Fiorentini Spa, Paolo Sammicheli, Andrea Provaglio. Sprint Review
  33. 33. Conclusions Andrea Aganetti
  34. 34. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Copyleft Pietro Fiorentini Spa, Paolo Sammicheli, Andrea Provaglio. Benefits • Increased know-how sharing across the Team • Distributed Leadership • Effectiveness together with Efficiency • Responding to change — with a stable team, the time required to change priorities or to start a new project moved from weeks to hours • The Sprint Review structured the feedback in a single moment, increasing stakeholders alignment and reducing risks • Easier planning with a Single Scrum Board that contains everything: new implementations, fixes, interruptions
  35. 35. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Copyleft Pietro Fiorentini Spa, Paolo Sammicheli, Andrea Provaglio. Points of Attention • Better to involve the main stakeholders from the beginning so they enter in the right mindset of cadence and early regular feedback. • Initial team composition needs to be taken into consideration, since later changes may impact on the performance and the morale of the team • Management commitment is essential to allow team members to be fully dedicated to the SCRUM team
  36. 36. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Copyleft Pietro Fiorentini Spa, Paolo Sammicheli, Andrea Provaglio. Thank You! Questions, comments, ideas? We’d love to hear from you!
 Join us on Zoom at 11:15 Meeting ID: 891 5663 5623 Passcode: 647125

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