The document discusses a model called FlowChain for running a software-oriented organization based on lean principles. It introduces key FlowChain concepts like customer purpose, covalency, single-piece continuous flow, in-band improvement, emergence, systems thinking, and allowing people to self-organize against demand. FlowChain aims to improve responsiveness, reduce waste, and minimize work-in-process through these principles. The document then discusses what life might look like in a highly rightshifted organization that follows FlowChain principles.

1. On Belief An Enterprise Perspective on Software-Intensive Product Development with Bob Marshall @flowchainsensei

4. Does this reflect your understanding of the software development industry worldwide? Distribution of Organisations vs. Effectiveness % of organisations Effectiveness 0 1 2 3 4 5

5. % of organisations Effectiveness 0 1 2 3 4 5 Distribution of effectiveness is severely left -shifted. Benefits derive from shifting to the Right. [Courtesy: Steve McConnell: After the Gold Rush] Reality

7. % of organisations Effectiveness 0 1 2 3 4 5 Where are you on the effectiveness axis? Reality: The Basic Rightshifting Curve

8. Waste = All those activities that don’t add stakeholder value. (N.B. Some essential non value-adding activities always remain). Waste % of organisations Effectiveness % waste 0 1 2 3 4 5 Wasted effort 100 75 50 25

9. Not a direct reciprocal of waste. Can - and does - go negative. Productivity = unit of output per unit of input or value per unit of effort . Productivity % of organisations % waste Effectiveness 0 1 2 3 4 5 Wasted effort Productivity A B F 100 75 50 25

10. Software Development Life Cycle % of organisations Effectiveness 0 1 2 3 4 5 Code & Fix Waterfall Agile Beyond ?

11. Flow Mode % of organisations Effectiveness 0 1 2 3 4 5 Random Batch & Queue Sprints / Backlog / User Stories / Use Cases Systems Thinking – e.g. Single piece continuous flow?

12. Feedback delay % of organisations Effectiveness 0 1 2 3 4 5 Random 3 – 6 Months 2 – 4 weeks Daily

13. Administrative Project Management % of organisations Effectiveness 0 1 2 3 4 5 APM Fun a.k.a. Job Satisfaction, Work-life balance Fun APM a.k.a. Ceremony, bean counting, and exemplified by command & control management style (transactional leadership). Wasted potential

14. Perspective on the Individual % of organisations Effectiveness 0 1 2 3 4 5 Respect . Heroism

15. Measurement % of organisations Effectiveness 0 1 2 3 4 5 Metrics Effort Rightshifted organisations put less effort into measurement because they have a better idea of their Rightshifting goals, therefore the questions to which they need answers, and thus what to measure. Plus, measurement is generally part of their BAU. (Effort a.k.a. cost)

16. Inductive vs. Deductive % of organisations Effectiveness 0 1 2 3 4 5 Focus Rightshifted organisation focus collectively on fundamental principles (deductive), in contrast to a focus on the practices of effective development (inductive). Few indeed seem to have studied or understand the principles of effective development. And the implications ? Principles Practices

17. Toolheads % of organisations Effectiveness 0 1 2 3 4 5 Predilection Showing the relative predilection for tools (as the answer to e.g. ignorance), not so much the actual deployment or utilisation of tools.

18. Quality and Testing % of organisations Effectiveness 0 1 2 3 4 5 How can Rightshifted organisations get away with so much less testing, yet still have very low defect rates? Testing effort High Low Quality Philosophy Inspection (test after) Zero defects (test first) Many Few Defects seen by users

19. Development Focus % of organisations Effectiveness 0 1 2 3 4 5 CV-centric Code-centric Requirements-centric Learning-centric

20. Maturity % of organisations Effectiveness 0 1 2 3 4 5 e.g. CMMI 1 2 3 4 5 APM

21. Risk awareness % of organisations Effectiveness 0 1 2 3 4 5 Awareness Left-shifted organisations avoid talking (even thinking!) about risk. Agile practices more-or-less implicitly mitigate risk. Rightshifted organisations transcend risk management in favour of opportunity management.

22. % of organisations Effectiveness 0 1 2 3 4 5 Learning Learning = knowledge systematically captured, and with BAU designed such that knowledge assets must be “Pulled” - and thus re-used - across projects. Systematic Learning

23. Even though e.g. Agile practices such as refactoring reduce the impact (cost) of design loopbacks, they may actually exacerbate their frequency . % of organisations Effectiveness 0 1 2 3 4 5 Frequency Unplanned design loopbacks Many Few None Impact Dip in frequency for e.g. Waterfall organisation is bought at the expense of product quality (fit for purpose)

24. a.k.a. Due Date performance. i.e. How often products are shipped on time, milestones and deadlines met, etc.. Best = circa 98% on-time delivery. % of organisations Effectiveness 0 1 2 3 4 5 Conformance Conformance to Schedules Good Poor

25. Third Parties here include benchmarking partners and organisations, consultants, etc. in the pursuit of (external) knowledge and skills. % of organisations Effectiveness 0 1 2 3 4 5 Involvement Use of Third Parties High Low

26. Problems with the product found “post-live” % of organisations Effectiveness 0 1 2 3 4 5 Deployment problems Many Few Problems

27. Rightshifted organisations have much more uniform results across projects. % of organisations Effectiveness 0 1 2 3 4 5 Variability in Project Success High Low Variation Individuals The System Unsure

28. Although this data is for projects (2087 separate projects), it looks surprisingly similar to the rightshift curve for organisations. ISBSG = International Software Benchmarking Standards Group Corroborating data from ISBSG

29. % of organisations Effectiveness 0 1 2 3 4 5 The Four Management Measures High Low Metrics Effort Rightshift Left drift Drag Turbulence

30. % of organisations Effectiveness 0 1 2 3 4 5 Metaphor in use Office work Software Factory Product Design (Studio) Value Stream Design

31. End of Part 1

34. FlowChain ™ evolving the Software-Oriented Organisation % of organisations Effectiveness 0 1 2 3 4 5 What could life look like in the sunny uplands of a highly-Rightshifted organisation? Reality: The Basic Rightshifting Curve ?

47. FlowChain ™ evolving the Software Development Organisation Enough of the Theory, already!

48. FlowChain ™ evolving the Software Development Organisation What is a Business?

49. FlowChain ™ evolving the Software Development Organisation A Business as a System Customer Seeking Value Shareholder Seeking a Return on Investment

50. FlowChain ™ evolving the Software Development Organisation Why Product Development is Key Customer Evolving the operational value stream Seeking value Board

51. FlowChain ™ evolving the Software Development Organisation Value Stream Development as a System Operational Value Stream Owner Creating an Operational Value Stream Enhancing an Operational Value Stream

52. FlowChain ™ evolving the Software Development Organisation FlowChain in Practice Operational Value Stream Owners Backlog Pool WIP

53. Questions

54. The Beginning – Thank You!