Risk Mitigation on the Second Iteration

“The only man who never makes a mistake is the man who never does anything.”

– Theodore Roosevelt

Changing a process creates risk, and this includes process improvements that are intended to optimize the workflow. We can predict some of the risk that will occur with a new process, and that risk can be mitigated immediately. If we are doing something new and experimental, then we can pilot the process for a smaller length of time to control any fallout. This strategy is called: “the controlled burn,” because it is what the forest service does to reduce the risk of large fires. Taking a risk is not reckless. It is the basis for experimentation, and there would be no innovation without experimentation.

In addition, risks create reward, and every great visionary in history took risks to make great things happen. For example, Henry Ford built his business around automobiles, and this was at a time when there were very few paved roads. Mr. Ford did not let the presence of risk deter him, and his contributions made the industry what it is today. We can stay true to the entrepreneurial spirit while taking calculated risks, and this will greatly reduce any unintended consequences of a process change.

There are 3 prework items that can be built into a process improvement plan to help reduce risk:

• Review WIP (work in progress) to see if any tasks can be eliminated 
• Communicate and educate impacted teams about the process change
• Have a backup plan

First, it is important to go over any WIP items in the backlog, because the team can eliminate any unnecessary tasks. Typically, these are outdated or duplicate tickets. For example, if the item was time stamped 10 years ago, then it is a good idea to validate that the work is still needed. Also, it is the perfect time to reprioritize the backlog, so the team can work the most important items first. In addition, the WIP tasks should have new estimated completion dates assigned to them, and this will help everyone know the most current information. Similarly, a work burndown chart can be created to give a date for when all of the current WIP tasks will be completed. Communication of the new estimated completion dates is important, because this will reduce work interruption. For example, people will know when their tickets will be executed, so they are not asking the team for updates while they are executing their planned work. Typically, WIP increases in response to a process change, so adding an updated WIP execution plan to your continuous improvement prework will mitigate the risk. 

Next, the continuous improvement lead will help communicate and educate people about the new process. Also, the lead should share why the process change is important, so you gain support for the project. My recommendation is to complete a value stream map of the process, so you have metrics and are able to report the expected increased business value from the process change. For example, if all of the process owners in the value stream know that the process change will decrease the overall process by a significant number of hours per year, then they are more likely to support the project. Training documents are helpful for getting the message out quickly, and there should be a common place where all of the documentation and playbooks are stored. In addition, cross training sessions can be done in parallel, and this will decrease the risk of having only one person that is an expert for any part of the process. Gaining support, communication, and cross training are good tasks to add to your kanban prior to the start of a continuous improvement project.   

Third, have a back-up plan, because having options is always a good thing. As a rule of thumb, you will want to have three different paths you can go down for a solution. Also, you want to cost out each different option, because spending a dollar to save a dime is typically not well received by leadership. If you are using a technology based solution, then you want to explore how it impacts the downstream systems in addition to its functionality. Also, check to see if there is an application in the current landscape that already provides the functionality that you need. In addition, using practices from DevOps will be beneficial if any issues occur. For example, use small batch sizes while you are rolling anything new out, because this will make it is easier to identify where any issues are occurring. Similarly, small batch sizes become useful if any code needs to be rolled back. In summary, having a back-up plan on deck that involves other options for achieving your continuous improvement goals is a good task to add to your prework process, and using DevOps practices during execution prevents issues from becoming critical.

In conclusion, experimentation and innovation will create a solid competitive advantage for a company, and they are key components of a successful corporate culture. New processes do increase risk, but there are ways to make this risk manageable. For unseen risks, pilot the innovation and execute the risk mitigation on the second iteration. Similarly, have a solid prework plan in place that includes: managing WIP, communicating the process change, and having a back-up plan will significantly decrease the risk that comes with changing a process. In summary, continuous improvements and innovations will take us down unknown roads, but there is no reason why we can’t take a GPS to prevent us from getting lost.