Principle #2: Apply systems thinking

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A system must be managed. It will not manage itself. Left to themselves, components become selfish, competitive, independent profit centers, and thus destroy the system. The secret is cooperation between components toward the aim of the organization.

W. Edwards Deming

The three foundational bodies of knowledge that inform SAFe are systems thinking, Agile development, and Lean product development. Systems thinking takes a holistic approach to solution development, incorporating all aspects of a system and its environment into the design, development, deployment, and maintenance of the system itself.

Figure 1 illustrates the three primary aspects of systems thinking.

The three aspects of systems thinking are listed with a small diagrammatic representation for each as follows: ‘The solution itself is a system,’ ‘The enterprise building the system is a system, too,’ and ‘Optimize the full value stream.’

Figure 1. Three aspects of systems thinking

Understanding these concepts helps leaders and teams navigate the complexity of solution development, the organization, and the larger picture of total time-to-market. Each is described in the following sections.

The Solution Is a System

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SAFe guides the development and deployment of complex software and cyber-physical systems. They are represented by the SAFe Solution object, the tangible object that delivers the end user’s value and is the subject of each Value Stream—the application, satellite, medical device, or website. When it comes to such tangible systems, Deming’s comment that “a system must be managed” leads to some critical insights:

The Enterprise Building the System Is a System, Too

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There’s a second aspect to systems thinking: The people, management, and processes of the organization that builds the system are also a system. The understanding that systems must be managed applies here as well. Otherwise, the components of the organization building the system will optimize locally and become selfish, limiting the speed and quality of value delivery. This leads to another set of systems thinking insights:

Understand and Optimize the Full Value Stream

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Value streams are fundamental to SAFe. A SAFe portfolio is essentially a collection of value streams, each of which delivers one or more solutions to the market. As illustrated in Figure 2, each value stream consists of the steps necessary to integrate and deploy a new concept through a new or existing system.

An illustration of the solution development value stream.

Figure 2. The solution development value stream

Understanding and optimizing the full value stream—the third aspect of systems thinking—is the only way to reduce the total time it takes to go from concept to cash [2]. Systems thinking mandates that leaders and practitioners grasp and continuously optimize the full value stream, especially as it crosses technical and organizational boundaries.

One essential process is value stream mapping, a systematic way to view all the steps required to produce value. Value stream mapping allows leaders to quickly recognize that the actual value-added processing steps—creating code and components, deployment, validation, and so forth—consume only a small portion of the total time-to-market. This recognition drives leaders to constantly focus on the delays between steps. An example of a value stream map is provided in Figure 3. Note that almost all the time between feature request and deployment in this figure is wait time, resulting in a highly inefficient process.

A diagrammatic illustration of an example of value stream mapping, where most of the time is the wait time.

Figure 3. Value stream mapping example: most of the time is wait time

Only Management Can Change the System

Everyone is already doing their best; the problems are with the system … only management can change the system.

W. Edwards Deming

This Deming quote prepares us for a final set of insights. Systems thinking requires a new approach to management—that is, a perspective in which managers are problem solvers, take the long view, proactively eliminate impediments, and lead the changes necessary to improve systems and performance. These Lean-Agile Leaders:

Summary

Understanding the elements of systems thinking helps leaders and teams recognize the ‘why’ and the ‘what’ of their actions, as well as the impact on those around them. This leads to a leaner, smarter enterprise that can better navigate organization and solution development complexities, which in turn results in better business outcomes.

LEARN MORE

[1] Deming, W. Edwards. The New Economics. MIT Press, 1994.

[2] Poppendieck, Mary, and Tom Poppendieck. Implementing Lean Software Development: From Concept to Cash. Addison-Wesley, 2006.