Lean & Agile: Are they worth the effort?
February 1st, 2009 by Jiri
This is a follow-up to Lean v. Agile.
Most of what I read about Agile and Lean is coherent and relatively believable, but I still can’t get rid of a feeling that there is something wrong. When I dug deeper, I then realised that the key sources of my cognitive dissonance (apart from over-generalisation and over-zealous marketing) is the fact that
- Their benefits of these methods are poorly formulated and
- The benefits of across-the-board implementation probably do not stack up if you judge it by implementation difficulty
But I am getting ahead of myself. To understand whether Lean and Agile are worth the effort, means understanding cost, benefits and limitations.
Case 1: Agile
To understand how is the business benefit a problem in the case of Agile, let me play out a scenario of me going to one of my senior IT execs asking for sponsorship for an internal project to drive Agile into some parts of our business. The situation is imaginary, but is likely to have happened if I tried to do something like this in one of my gigs during last 2-3 years.
Sponsor: “So what is this Agile thing about?”
Me: “It’s a reshuffle in our delivery process. We’d be basically using a kind of a ‘Just in Time’ and make our delivery process smooth and produce a lot less documentation”.
Sponsor (looking at me with expectations): “and that would give us?”
Me (channelling David Nicolette): “Our customer will like the incremental delivery and demonstrations of working, value-add software, starting with the most valuable features as defined by the customer. From the earliest iterations we will demonstrate working software to their customer. Our customers have never received results that good from traditional method.”
Sponsor: “That sounds good in theory and I can see how architects would like that, but I am not entirely convinced if business would really see this as a major breakthrough. Sure, the responsiveness is an issue, but when push comes to shove, getting the new customer management system and cleaning out the duplicates in asset data is likely going to bea much higher priority. Money speaks you know and these two things will generate lots of revenue and lower costs.”
Me: “Ehm, um”
The problem is that if you prioritise a wholesale internal process change against delivery of new business capabilities (or an improvement of existing ones), it is typically business capability that wins over internal process. Having said that, there are definite situations where quick and adaptive delivery of new business or IT capabilities is critical. The only question is which one are these. And this will be constrained by the fact that some activities will be inherently difficult to make agile because of capacity, contractual, commercial or plain physical limitations. This means that the right questions relative to Agile arenot if it is worth it but,
- What are the niches in which delivery of small and frequent iterations are indeed business critical rather than desirable
- Which IT delivery activities can be realistically turned agile without impacting dependent activities
Case 2: Lean
Lean is a slightly different story. When compared with Agile, adoption of Lean in manufacturing industry shows business benefits that would make my execs listen rather intently. For instance if you interpreted some of metrics quoted in Cliff Ransom’s A Wall Street View of Lean Transformation, you could surmise that in the context of an in-house IT organisation it could help to increase total output by 12% to 15% without related increase in cost.
That looks appealing, at least until you find out this issue of Strategy+Business with Booz&Co consultants saying:
Lean manufacturing may not be rocket science, but implementing it is like advanced rocket science. There has been no shortage of initiatives intended to revive established manufacturing locations in North America and Western Europe. But the failure rates for plant turnaround in these areas are striking. Few manufacturing professionals today have any difficulty describing their vision of how excellent factories should operate. They are highly knowledgeable about the leading manufacturing techniques. Knowing the theory is one thing, of course; making it work in practice is quite another. Despite the fact that practically all of the relevant elements have been public knowledge for nearly 20 years, few brownfield plants have successfully made the transition to lean manufacturing.
So in case of Lean, the question worth looking at are:
- Do the factors that generate the kind of benefits Lean manufacturing companies benefit from apply to IT?
- Would implementation of Lean in IT be more or less difficult than in manufacturing?
- Is partial implementation of Lean in IT feasible and what kind of benefits it would give you?
If you find the above remotely interesting, stay tuned as the follow-up posts that I have in progress.
I received and started reading
Happy new year to you all. I am continuing with the Best Of theme and today I am moving on to books.