I arrived on Sunday morning via Oslo, and was one of just four people who attended the informal community event at noon that day. Haakan Forss, Al Shalloway, Karl Scotland, and I had a nice discussion about community trends and the challenges faced by our respective clients.

On Monday I was able to catch the last half of the executive track, which had been organized by Professor Jayakanth (JK) Srinivasan from MIT.  In addition to yours truly, JK had invited a handful of senior managers and executives in regional companies to present their experience with Lean so far. I enjoyed the case studies from Ericsson and Nokia, even though their efforts are in an early stage and appear more influenced by Agile ideas than by Lean thus far. Unfortunately, I missed the case study presentations during the first half of the day.

As with almost everyone we hear talk about Lean in the software world, the emphasis in the Ericsson and Nokia case studies was very much on Lean as an operating system and much less on Lean as an organizational learning system or as a people system. However, in both cases it was easy to see that just using some very simple practices like collocating teams and reducing batch sizes can make a huge difference. I also feel it is important to give people in otherwise fairly traditional organizations credit for starting down this path.

One of my highlights at the conference was meeting Steve Denning in person. His presentation in the executive track helped underscore why operating managers attempting to introduce Lean ideas face such a big battle. Steve’s contention, based on researching companies with breakout performance as well as data from publicly traded companies going back decades, is that conventional management systems are not performing well because the premises they are based on are simply wrong. He goes into more detail about this and what to do about it in his book, “The Leader’s Guide to Radical Management”. I very much look forward to future interactions with Steve.

JK had done a wonderful job strictly limiting the size of the group and selecting the people around the table.  This gave people an opportunity to have a frank discussion with their peers. At the end of the day JK also gave a talk featuring an interesting case study of a large Indian IT services company.  We were also treated to a sample of ideas about Lean enterprise transformation described in JK’s new book, “Beyond the Lean Revolution”.

Another highlight at my conference was talking at some length with Al Shalloway, the founder and CEO of NetObjectives. Even though LSI and NetObjectives don’t really compete directly, it is fun to talk to others who are also building consulting firms and exchange discoveries we have made and some war stories as well. Plus Al is just a great guy.

Another distinct treat was a sit-down with Jim Sutton, the current President of the Lean Software and Systems Consortium and one of our advisory board members. I was able to have a conversation we usually have on Skype in person instead, which made it even more enjoyable than usual.

Two people I knew somewhat from Twitter, but had not really talked to in person, were Jean Tabaka and Karl Scotland, both with Rally Software. Jean and I had a great discussion about the evolution of the tool space, and we talked about our experiences with putting on webinars. I also got to hear about Jean’s upcoming vacation to Estonia.

I gave one talk and a half-day mini-workshop at this conference. The talk was about leadership challenges that we have seen senior executives encounter when we help them launch and execute Lean Transformations. Judging from the Twitter comments, it was quite well received, but I was surprised that we didn’t get more questions.  Perhaps people were eager to break for lunch :-)

My workshop on the last day was about Lean Transformations in the software industry.  It opened with some reality checks on what the industry looks like now, who the biggest players are, and some key trends. The workshop was intended for a senior audience. We got about eight people, I think, in part because by then a lot of people had left, and also because the conference did not really attract very many senior folks. The good part was that we had a very interactive session with some good discussion, in particular on the topic of obstacles to organizational learning.

The conference itself appeared to run very smoothly. It was clear that the organizers had done their homework. The conference hotel was a good pick as well, even though it suffered from the usual European aversion towards free and reliable WiFi access. Typing in user names and passwords from WiFi coupons that are freely available to visitors anyway is not value-added. Other than that, the hotel did a great job and the staff was very pleasant to deal with.

My only regret at this conference was not having more time to attend everyone else’s sessions and also not having the time to enjoy Stockholm. I will rectify that by returning as soon as I can, however.  I hope to attend next year’s LESS conference as well.

The conference venue was an old “Artist House” in the middle of Munich, with big halls and a romantic ambiance, but with all the tech you need to hold a good conference. An artist produced paintings during the conference. The gala dinner on the first day was frankly splendid.

The organizers practiced what they preached. As the queues at the Lunch buffet were long the first day, Kanban with Roulette or Poker Chips were introduced as tokens to alleviate these queues on the second day. I wonder how many chips were missing after lunch.. Anyway, it worked. After getting a free chip, we enjoyed the lunch in the not so crowded area due to the queuing.

We had great talks by Karl Scotland, Paul Allan Klipp, David Anderson, Kent Beck, John Seddon and Stephen Bungay, just to mention the ones that I attended.  Others were probably just as good, but with three parallel tracks one has to make choices.  David Anderson talked about on Predictability and Measurement with Kanban.  Paul Allan Klipp offered helpful tips for selling Kanban. Perhaps the most striking quote came from Kent Beck: “The future is already here, it’s just not evenly distributed”.  He was speaking about shortening release cycles.

Two open, or little-addressed themes which I think many are challenged by are contractual issues and the “interface” to senior management. I think the software industry and IT organizations have a lot of work to (re)gain the trust of senior executives, and this was mentioned by several speakers. Continuously delivering quality software can help alleviate this.

As I had expected, the focus at this conference was very much on just Kanban, individuals teams, and the boards.  This made my own “Beyond Kanban” talk stand out, with more high-level Lean concepts for helping improve organizational performance and meet business goals.

I look forward to next year’s conference in Vienna.

For more information and registration, visit the ITB event page.

Lean Transformation in the Software Industry: The Big Picture

Lean Practioners in the software industry have thus far been focused mostly on using Lean tools to help product development teams become more effective. But Lean is a methodology to help the whole organization learn and execute better, not just one team or department. In this executive-level workshop we will discuss how leaders can orchestrate company-wide Lean transformations and create more value for customers, shareholders and employees as a result.

The workshop is base on Lean Software Institute’s unique real-world experience working with senior leaders in a wide range of companies over the last seven years. This workshop is aimed at senior management and attendance is limited to ensure a quality experience for all participants.

Topics addressed in this full-day workshop will include:

• Software Industry Trends and Challenges
• How Lean Thinking is influencing the Software Industry
• The Unfulfilled Promise of Lean in the software Industry
• What Could Be: Software Companies as learning Organzations
• Obstacles you will face on your Lean Journey
• Lean as an Operating System
• Lean as an Organzational Learning System
• Lean as a People System
• Where and how to Begin with Lean
• Architecting Lean Transformations
• Developing Lean Leaders: The Inner Voyage
• Benchmarking: You vs. the Competition

About the Speaker

Frode Odegard has more than twenty years of experience as an entrepreneur and trusted advisor to high-tech executives. Organizations he has helped include Sony Electronics Inc., Locheed Martin, Honeywell Aerospace and Plantronics. Frode is currently writing a book on Lean transformations for software executives.  Before founding the Lean Software Institute in 2004, Frode was the CEO and founder of Odegard Labs., Inc., a software engineering research and consulting firm. Prior to founding Odegard Labs in 1991, Frode was CEO and founder of Modula-2 CASE Systems, a Norwegian company building next-generation tools for embedded software developers. In 2010, Frode also founded a global incubator for new startups, Odegard adVentures.

Registration

For more information and registration, visit the ITB event page.

But how many leaders can offer a truly compelling purpose?

Not just for investors and customers, but for employees. I am not not talking about “saving the world” in any altrustic sense. I mean something that is challenging, will have a visible impact in the world, will be highly valued by customers, and is inspiring to be a part of: a cause.

Causes that have gained a lot of traction include “to be the fabric of real-time communication on the web” (Skype), “giving people the power to share and make the world more open and connected” (Facebook), “connecting people with what’s important to them” (Twitter), and “organizing and making available the world’s information” (Google).

Hot startups attract bright and talented people, not just because there is a potential for a big financial payoff, but because we as humans derive much of the meaning of our lives from what we do in our careers. Sure, with the high unemployment rates we see in the US and Europe today, it is easier to recruit people who “need” a job. But that’s not true for A-players, who often have a job already or at least have many good options to choose from.

Consider companies that are struggling to innovate and ask yourself what their big, compelling cause is. Microsoft’s vision used to be “a computer in every home and on every desk”. Well, that happened. What is their cause now? What about Yahoo? Can anyone say what Yahoo’s compelling cause is?

Obviously, an exciting cause is not enough. The world is full of companies with a seemingly exciting cause coupled with disasterous execution. But without a clear purpose, a company easily loses focus and the best people will be looking for a more inspiring place to be.  Or, if there is an opportunity to cash out, they will stay just long enough for the big payoff, and then leave.

Here is what Steve Jobs said in a 2005 Stanford commencement speech:

“Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t settle.”

I think this applies to leaders too. If your employees think your company is boring, it probably IS boring. Do something about it.

Arne has a deep background in Agile software development and in particular Scrum. He is a veteran consultant and business developer in the Scandinavian IT industry with additional global experience in Europe and Asia. Arne brings with him extensive experience from working in management teams, and he has a track record of combining people, processes and products to successfully build and execute long term strategies. For more than 15 years, Arne has helped industry leaders such as Ericsson, Telenor, Telia, ABB, Volvo and Saab. He is a Certified Scrum Trainer and has personally trained thousand of developers and managers in software best practices.

As more and more Agile practitioners are discovering Lean Thinking, Arne will be a great ambassador as we reach out to Agile practitioners to show them how Lean can help them have a much broader and deeper impact on organizational performance.

Because of our increased activity in the Nordic Region, we are also expanding Øystein Paulsen’s role from Director of Business Development for Norway to Director of Client Services for The Nordic Countries (Sweden, Denmark, Norway, Iceland, and Finland).

Frode L. Odegard
CEO, Lean Software Institute

Becoming a Lean Leader: What Can and Will Go Wrong (Lecture)

Abstract

The Lean Journey is not an easy one. Leaders who embark on a quest to turn their companies into “Learning Organizations” face a number of obstacles, many of which seem unavoidable. Since its founding in 2004, the Lean Software Institute has accumulated a long list of challenges IT/software executives face when introducing Lean.

Common challenges include harmful leadership behaviors, perceived conflicts between Lean and the business model, silo boundaries, unhelpful bonus schemes, intellectual dishonesty, internal misalignment, poor business literacy among employees, insufficient leadership involvement, leaders doing too much, under/overestimating the organization’s change capacity, and poor knowledge management.

Success also brings its own risks, such as employees holding leaders to a higher standard and then leaving the organization when leaders fail to raise their game. In this talk we will discuss what leaders can do to detect and meet these challenges, and how they can transform themselves in the process.

Lean Transformation in the Software Industry: The Big Picture (Executive Workshop)

Abstract

Lean practitioners in the software industry have thus far been focused mostly on using Lean tools to help product development teams become more effective. But Lean is a methodology to help the whole organization learn and execute better, not just one team or department! In this executive-level workshop we will discuss how leaders can orchestrate company-wide Lean transformations and create more value for customers, shareholders, and employees as a result. The workshop is based on Lean Software Institute’s unique real-world experience working with senior leaders in a wide range of companies over the last seven years. This workshop is aimed at senior management and attendance is limited to ensure a quality experience for all participants.

Topics addressed in this workshop will include:

• Software Industry Trends and Challenges
• How Lean Thinking is influencing the Software Industry
• The Unfulfilled Promise of Lean in the Software Industry
• What Could Be: Software Companies as Learning Organizations
• Obstacles you will face on your Lean Journey
• Lean as an Operating System (Beyond Value Streams and Kanban: A 5D Systems View)
• Lean as an Organizational Learning System (Mobilizing for Innovation and Performance)
• Lean as a People System (Coaching for Growth, Autonomy, and Meaning)
• Where to Begin (Relating Lean to Your Business Model and Organizational Lifecycle Stage)
• Architecting Lean Transformations (Leadership, Governance, Change Capacity, Financials)
• Developing Lean Leaders: The Inner Voyage
• Benchmarking: You vs. the Competition

Speaker bio:

Frode Odegard has more than twenty years of experience as an entrepreneur and trusted advisor to high-tech executives. Organizations he has helped include Sony Electronics Inc., Lockheed Martin, Honeywell Aerospace, and Plantronics. Frode is currently writing a book on Lean transformations for software executives.

Before founding the Lean Software Institute in 2004, Frode was the CEO and founder of Odegard Labs, Inc., a software engineering research and consulting firm. Prior to founding Odegard Labs in 1991, Frode was the CEO and founder of Modula-2 CASE Systems A/S, a Norwegian company building next-generation tools for embedded software developers. In 2010, Frode also founded a global incubator for new startups, Odegard adVentures. His interests outside work include history, philosophy, psychology, theoretical computer science, travel, linguistics, and strength training.

Beyond Kanban: A Lean Systems Approach

Abstract

Kanban scheduling in software development represents a great advance over fixed-iteration approaches such as Scrum. However, implementations still face barriers because they are primarily focused on individual teams and not well connected with organizational performance as a whole. Kanban also represents a small subset of the greater promise of Lean. That that promise is to create a learning organization in which employees grow and prosper as part of a process of relentless improvement in the way we deliver customer and shareholder value.

In this talk we will present an extended version of the Lean Management vision, based on Systems Thinking, which incorporates a framework for breakthrough improvements (Kaikaku) as well as continuous improvement (Kaizen). The framework presented goes beyond inventory and activity management and incorporates five dimensions of mapping and improving work – value stream, information, organization, product, and social architecture. The LSI 5D framework has been used to create quantifiable results with a variety of business models and settings, including Aerospace & Defense, Medical Devices, and Game Development.

To ensure that Lean delivers quantifiable business value, we must understand how to best leverage it with our business model and the organization’s developmental stage. We will discuss how this is done in practice, linking value streams to business models and financial outcomes,

Speaker bio

Eilif Monrad-Krohn has spent more than twenty years creating software and enabling organizations to do so better than before. Organizations he has contributed to include Intershop, Quelle, Norsk Hydro, Tine, and ODIM. Eilif’s experience includes design and development, training, project management, and process improvement. He has been focused on process management solutions in the last five years. Originally from Norway, Eilif has been based in Germany since 1987. He holds a Bachelor’s Degree in Computer Science from the University of Colorado.

Earlier this year, Chris Hefley was nominated for the Brickell Key Award. Here is what we submitted to the selection committee at the time:

We have been impressed by Bandit Software’s customer service and willingness to listen to feedback and advice as it continues to develop its offering. I remember watching the CEO of one of our clients using LeanKit Kanban to show his own managers real-time inventory in their value streams and thinking that this was really the ultimate stamp of credibility.

Today, when you walk into that company’s lobby, you will see a big flat screen cycling between kanban boards for all their value streams across all functions of the company (lead generation, sales, custom development, product development, etc.) Data from their value streams feed into their Kaizen system, with Hansei meetings being used to make decisions about what A3 projects to launch. LeanKitKanban has been and continues to be instrumental in that particular company’s Lean Journey.

Good tools accelerate the learning for everyone in the Lean ecosystem — teachers, researchers, and consultants as well as their students and clients. We strongly believe that Chris and his team deserve recognition for their efforts and advances.

We look forward to future collaboraton with LeanKit as they continue to grow and evolve.

Juha Christensen

Juha is Chairman of Cogniance and CloudMade, as well as a partner and co-founder of Progression Partners and Sunstone Capital. Voted one of the 25 most influential Europeans in Technology by Time Magazine, Juha has had profound impact on the industry though his efforts at companies like Symbian, Microsoft, Macromedia (now Adobe), Trolltech and Teleca.

Through Progression Partners and Sunstone Capital, Juha is involved at board level in multiple companies. He wrote the business plan and led the negotiations that brought Nokia, Motorola, Ericsson, Sony, Samsung and others together to create the mobile operating system company Symbian. Later he ran Microsoft’s mobile platform efforts, bringing to market Pocket PC and Smartphone.

After Microsoft, Juha served as President at Macromedia. Juha is a long serving member on the board of Teleca, the largest systems integrator in the mobile industry. Juha is also a founding Venture Partner at Copenhagen based Sunstone Capital, a leading European venture capital company with EUR 450 million under management.

I look forward to us benefiting from Juha’s deep experience as we work to scale LSI for global impact and as we reach out to our  neighbors here in Silicon Valley.

I often talk about Lean as providing an operating system, an organizational learning system, and a people development system. While the Lean Software Development community is becoming more sophisticated about adopting and using Lean practices for managing workflow, Kaizen is still very new to most. The emphasis is still very much on Lean as an operating system.

The tool field is still in a very early stage, which is in itself exciting; I expect to see much more sophisticated tools over the next year.  Leankit Kanban demonstrated an electronic kanban solution using touch screens, which I think is a promising direction.

Scaling is still a challenge.  Most of the discussion still centers on tools, teams, and tactics instead of organizations, transformation, and behaviors. This is in part because the Lean Software community is still not well integrated with the Lean community at large. There even appears to be active resistance among some against going beyond the development “silo”. There also seems to be some confusion and controversy about whether and to what extent Lean as applied to software needs its own terminology.

For me, perhaps the most delightful aspect of the conference was the coverage of topics from adjacent fields such as systems engineering, complexity theory, and risk management.  This provided many new ideas for people to think about.

The theme of my own talk was integration.  We believe Lean must be applied across  organizational functions and be integrated with strategy, business models, and accounting models to transform the IT sector. The Lean Software Institute will continue to emphasize integration and bridge-building.  From the very beginning we have regarded Lean as a journey that transforms individuals and organizations, and we always will.