How do you manage risks and uncertainties in lean and agile process optimization projects?

😁 Wow! Agile and Lean mentioned together in the same article! This is uncommon, almost rare! I love it! As a Lean Six Sigma & Agile expert, I’ve been promoting them together (along with other frameworks), for quite some time. Why not add more tools (capabilities) to you own (and your organization’s business toolbox)? It will only produce better outcomes as the two have more similarities than differences and are quite complimentary. This way you don’t run around with that one hammer (insert framework here), treating all your business problems like they are nails. Matt Rebeiro - Challenge the Status Quo #BusinessProcessImprovement #agile #LeanSixSigma #process #framework

While agile and lean have similarities with respect to tools, they differ in their purpose and behaviours. At a foundational level, they each address a different source of risk. Agile contends with the uncertainties associated with requirements by iterating the development of a solution verifying continuously with outcomes. Whereas, Lean contends with uncertainties connected with operational processes that lead to the creation of waste rather than value.

To mitigate any risk or avoid uncertainty in any process, irrespective of the framework, one needs to have a clear understanding of the various probable outcomes that arise out of the various types of people, processes and the products in a given system. This is the 2nd step in the lean, understanding the value chain. I feel this encapsulates everything. So the 1st step of identifying Value, in Lean, would be to design a product or process that takes the above mentioned into consideration. A lot of the frameworks are similar or used in different stages of the same project. implementing user centric design thinking would help creating an efficient process or product in the first step. And agile in the third step, iterative improvement.

Understanding the problem and the customer is essential in managing risks and uncertainties in lean and agile process optimization projects. By thoroughly understanding the problem at hand and the needs of the customer, teams can identify potential risks and uncertainties more effectively. This understanding enables teams to develop targeted solutions, prioritize efforts, and anticipate potential challenges. Additionally, by continuously engaging with the customer and gathering feedback throughout the project, teams can validate assumptions, mitigate risks, and ensure that the solutions meet the customer's expectations and requirements.

To manage risks and uncertainties in lean and agile process optimization projects, start by thoroughly understanding the problem and the customer’s needs. Clear insights into the issues and customer expectations help identify potential risks and develop effective strategies. This foundational understanding allows for more targeted risk management and helps ensure that process changes align with what is truly needed, reducing the likelihood of unforeseen issues.

Having a current snapshot is a crucial step in agile process optimisation. Before eliminating waste you need to know where it hides within your processes. Simply shifting all your existing processes to lean and agile methods would mean you'll be getting very lean and agile waste in addition to things that work well. So building process maps and figuring out the non-value-added steps should be done before you even start using agile.

In my experience, identifying risks early is the way both lean and agile approaches manage uncertainties. Many times, I have noticed that teams utilize techniques such as risk poker game and also regularly use retrospectives to reflect on the effectiveness of the mitigation.

IMHE, too many companies skip this step and start optimizing blindly. Taking the time to map processes is a critical step. Yes, it’s tedious. Sure, it’s messy when stakeholders aren’t experts at mapping. But given the right tools and guidance, it will 💯 % help transform chaos into clarity.

Defining the value stream involves mapping out the series of steps or activities required to deliver a product or service to the customer. This includes identifying all processes, resources, and information flows involved in creating value for the customer. Eliminating waste, on the other hand, entails identifying and removing any activities or processes within the value stream that do not directly contribute to delivering value to the customer. This includes activities such as overproduction, waiting, unnecessary movement, defects, and excessive processing. By focusing on value-added activities and eliminating waste, organizations can streamline their processes, improve efficiency, and enhance customer satisfaction.

Gaining holistic clarity of the key area or enterprise is a must. Value stream mapping, supported by knowledge from DASVC's (disciplined agile value stream consultant), helps organizations creatively and strategically approach the value stream map to better evaluate risk and waste. Focusing on value vs hierarchy in the delivery of value is difficult, yet highly valuable.

Defining the value stream and eliminating waste are crucial for managing risks and uncertainties in lean and agile projects. Map out all steps involved in delivering value and identify any activities that do not add value. By focusing on eliminating waste and optimizing the value stream, you streamline processes, reduce potential risks, and create a more efficient workflow, which helps in managing uncertainties more effectively.

Implementing incremental and iterative changes involves making small, incremental adjustments to processes or systems over time, rather than implementing large-scale changes all at once. This approach allows for gradual improvements and adjustments based on feedback and learning from previous iterations. It involves breaking down larger changes into smaller, manageable steps and implementing them in a series of iterations or cycles. Each iteration builds upon the previous one, incorporating feedback, testing new ideas, and making adjustments as needed. This iterative approach enables organizations to adapt more effectively to change, minimize disruptions, and continuously improve their processes and systems.

In my experience with process optimization, implementing incremental and iterative changes was key to managing risks. We worked with a client facing challenges in their supply chain process. Instead of overhauling everything at once, we introduced small, gradual changes to their inventory management system. For example, we first adjusted only the reorder points for one product line, monitored the results, and refined our approach based on feedback. This iterative method allowed us to address issues as they arose and made it easier to adapt to unforeseen challenges. By taking small steps and evaluating each change, we minimized risks and achieved a smoother, more effective optimization.

Collaboration and communication are essential for successful business process improvement. They enable teams to leverage diverse perspectives, share information, and work cohesively towards common goals. Effective communication channels, such as meetings and project documentation, keep everyone informed and engaged, fostering trust and accountability.

Measuring and monitoring are essential for business process improvement. It involves setting KPIs to assess process effectiveness and efficiency, tracking them regularly, and taking corrective actions as needed. This ongoing process enables organizations to track progress, make informed decisions, and drive continuous improvement.