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Attaching Kanban to the            Command & Control World of                 Project Managers               Lean Kanban C...
InsertFocus of this session is on IT projectsNo silver bullet, though
Agenda• Part I: The problem   – What is project management ?   – Why is it problematic with IT development projects ?• Par...
Part ITHE PROBLEM
The Project       A collaborative and temporary enterprise,     frequently involving research or design, that is      care...
Projects are temporary organizations                 CEO                                                • The project‘s or...
Why they invented projects…Hoover Dam Project                 Manhattan Project•   Cost: $49 M (1936)             •   Cost...
…and what we made out of this ideaCall Statistics Report Project    CRM Maintenance 2013 Project•   Cost: $6,200          ...
The awful truth is…                                          • By 2012 the predominant IT                                 ...
Projects focus on Short Term Gain                                       • The idea of the temporary                       ...
Project Managers tend to be Heroes              • Heroic management              • Smooth operations are not good for     ...
Traditional PM requires Planning             The practise of project management             often assumes that right at th...
How wrong is your Plan ?         Requirements change at an         average rate of 1-2% per month         Even if you know...
Project Managers plan Input                                       • The planning/controlling                              ...
Input Planning• Input planning focuses on what to do and not on what to achieve• Input planning is much more complicated a...
Input vs. Output Planning Product                     Product            Output Target                 Output Target  Visi...
Why do they plan Inputs ?                                    • Traditional project management is still                    ...
Input Planning is not applicable to     Software Development                                Construction Project   SW Deve...
The One-Shot Project Plan            •   Note that the principles of project                management require frequent   ...
Part IIFINDING THE RIGHT CURE
Organizational Culture      „How we do things around here to succeed“  • Quite stable  • Very difficult (if you‘re the CEO...
Assumption #1                                        All organisations are –                                        fundam...
Assumption #2                                        Organisational culture is more                                       ...
Assumption #3                                        System-focused interventions                                        w...
Assumption #4                                        Interventions clearly tied to                                        ...
The Baseline    „If the management idea fits the nature of the    organizational culture it will most likely work.        ...
Organizational Culture                                                  We pay attention                                  ...
The Six Kanban Practices     •    Visualize work     •    Limit the work in progress     •    Manage flow     •    Make po...
Six Kanban Core Practices                                We pay attention                                to…Collaboration ...
Core Processes of Traditional PM                        We pay attention                        to…Collaboration Culture  ...
Finding the right Cure                                     • Would you buy a medicine that                                ...
Kanban Principles1. Start where you are  – Understand culture, strategy and leadership  – Identify stakeholders, pain poin...
The usual Stakeholders                             Happy customers will help you in                             keeping th...
Know your Strengths and Weaknesses           (as compared to traditionally managed projects)Strengths                     ...
Strategy 1: The eroding sandwich             Traditional                 Traditional                           Development...
Strategy 2: Coexistence                            Traditionally                              managed                     ...
Strategy 3: All-in                               Kanban                               project              Customer• Pure ...
Part IIISUMMARY
Summary• Traditional project management has an  impressive track record but is not well-suited for  IT development project...
Summary (2)• Organizational culture is at the core of a company  and influences everything• If the management idea fits th...
Summary (3)• Kanban focuses on getting (statistical) control  of a complex production system (short term  goal) and improv...
Summary (4)• Kanban and project management fit well into  command cultures• Kanban and project management might work in  c...
AppendixSOMETHING PERSONAL
The Kanban Community  Where do you think that the Kanban community (the  ones that regularly meet at conferences like this...
The Future of Kanban• Try to attach Kanban to other businesses than IT• The market for IT processes is very saturated• The...
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20121023 lkce 2012

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My presentation from the Lean Kanban Central Europe 2012 conference in Vienna (Oct. 2012).
Note that the subject is controversial, though.

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Transcript of "20121023 lkce 2012"

  1. 1. Attaching Kanban to the Command & Control World of Project Managers Lean Kanban Central Europe 2012nikolaus.rumm@cellent.at@nikolaus_rumm
  2. 2. InsertFocus of this session is on IT projectsNo silver bullet, though
  3. 3. Agenda• Part I: The problem – What is project management ? – Why is it problematic with IT development projects ?• Part II: Finding the right cure – What is organizational culture ? – How does it affect Kanban and project management ? – How to handle project management and Kanban in the same organization ?• Part III: Summary
  4. 4. Part ITHE PROBLEM
  5. 5. The Project A collaborative and temporary enterprise, frequently involving research or design, that is carefully planned to achieve a particular aim Usually… • something singular • something new • something risky • something bigSource: Wikipedia, en.wikipedia.org/wiki/Project
  6. 6. Projects are temporary organizations CEO • The project‘s organization is aProcurement Delivery Sales down-scaled version of the IT Domestic company‘s organization Development Sales • The organizational model is IT Operations International Sales the hierarchy • The idea behind it is damage Customer Care limitation (risk isolation) and decomposition • In fact it‘s a confession that Project Manager the company is not able to Analysis achieve some aim with the Dev Team QA Team Team existing structures
  7. 7. Why they invented projects…Hoover Dam Project Manhattan Project• Cost: $49 M (1936) • Cost: $2 B (1946)• Planning time: 5 years • Planning time: 3 years• Implementation time: 5 years • Implementation time: 4 years• Consortium size: 6 companies • Team size: 130,000• Team size: 5,200
  8. 8. …and what we made out of this ideaCall Statistics Report Project CRM Maintenance 2013 Project• Cost: $6,200 • Cost: $14,000• Planning time: 3 weeks • Duration: unlimited• Implementation time: 2 days • Team size: 0.2 FTE• Team size: 0.5 FTE
  9. 9. The awful truth is… • By 2012 the predominant IT management model is the command & control bubble • Everything is a project with a price tag P2 • What‘s not a project is called P4 overhead and thus considered P1 P3 P5 inefficient P8 P6 P7 P11 • The majority of IT projects are just renamed cost units P9 P10 • This is a sign of missing trust between upper and middleThe „weak matrix“ (release 2012) management
  10. 10. Projects focus on Short Term Gain • The idea of the temporary organization encourages The boss optimization of short-term Impress her ! gain • This includes accepting a Project manager customer rip-off, even if we lose the customer after Do the least acceptable the project has finished once he signed that contract • Some project managers focus on satisfying their The customer line manager and not on the customer
  11. 11. Project Managers tend to be Heroes • Heroic management • Smooth operations are not good for heroes • Possible trouble magnets • Prone to burnout in larger projects • Strong bias on dysfunctional communication • Note that some employees actually like that because the hero is responsible for everything • „King of the hill“-syndrome – He who knows everything – He who plans everything – He who decides everything
  12. 12. Traditional PM requires Planning The practise of project management often assumes that right at the beginning… – The goals are clear – The goals are stable – The planner has complete knowledge of the problem – The planner has complete knowledge of how to achieve the goals Each assumption is wrong
  13. 13. How wrong is your Plan ? Requirements change at an average rate of 1-2% per month Even if you know everything and elaborate a perfect plan a one- year project team develops 12- 24% into the bin Inability to follow the change in demand automatically implies reduced quality
  14. 14. Project Managers plan Input • The planning/controlling object is the work package • Work packages describe… – what to do – who will do it – when it will start Henry Laurence Gantt (1861 – 1919) – when it will be completed• Co-founder of scientific • Work packages are input management targets• Inventor of the Gantt chart (1910)
  15. 15. Input Planning• Input planning focuses on what to do and not on what to achieve• Input planning is much more complicated and error prone than output planning• Assumptions – Each resource‘s productivity is known for each task – Each resource‘s productivity is stable• Both assumptions are wrong• Productivity variation between developers is 1:10
  16. 16. Input vs. Output Planning Product Product Output Target Output Target Vision Vision Project Project Output Target Output Target Goals GoalsFeatures Output Target Features Output Target Work Input Target Ad hocPackages • Less work • Better quality StatisticalSchedule Input Target Control Product Product Output OutputIncrement Increment Transformation & Error Source
  17. 17. Why do they plan Inputs ? • Traditional project management is still influenced by a mechanistic mindset from the industrial era (i.e. scientific management) • Focus on efficiency and labour productivity • Patterns – Find the best way how things are done – Eliminate variability by standardization Frederick Taylor – Divide labour until you can downskill the (1856 – 1915) worker • These assumptions are not applicable• Father of scientific management to brain-workers • All attempts to industrialize software development have failed
  18. 18. Input Planning is not applicable to Software Development Construction Project SW Development Project Plan Very detailed Sketchy Validation of the plan Formal Informal IT support available Dependencies between Very strict Medium tasks Variability of productivity Low High Freedom of choice for the Non-existing High worker Changes Few Many Impact of changes Local Possibly global Work mode Follow the plan Follow the goal (even if there‘s a plan)
  19. 19. The One-Shot Project Plan • Note that the principles of project management require frequent replanning • Many projects have no up-to-date project plan • Reasons – Too much effort – Could surface the bad truth • The plan is necessary for getting the approval, but after that no one is asking for it • Outdated plans are a clear indication of cargo cult project management • Common in organizations that treat projects as instruments of accounting and controlling and not for development
  20. 20. Part IIFINDING THE RIGHT CURE
  21. 21. Organizational Culture „How we do things around here to succeed“ • Quite stable • Very difficult (if you‘re the CEO) if not impossible (if you‘re an external consultant) to change • Changing it takes at least 2-3 years • Attracts or chills possible employeesSource: William E. Schneider, The Reengineering Alternative
  22. 22. Assumption #1 All organisations are – fundamentally – living social organisms • Stable core of beliefs, ethics and principles • The system reacts to attempts that pull it off center with resistance and homoeostasis • Fundamental changes are unlikely without a crisisSource: William E. Schneider, The Reengineering Alternative
  23. 23. Assumption #2 Organisational culture is more powerful than anything else Leader- Strategy • Agile implementations must ship consider strategy, leadership and – above all – culture in Culture order to be sustainable • If the change is not sustainable then the change initiative has failedSource: William E. Schneider, The Reengineering Alternative
  24. 24. Assumption #3 System-focused interventions work. Component-centered interventions usually do not. – The system can’t be decomposed – Anything we do in agile management must address the whole systemSource: William E. Schneider, The Reengineering Alternative
  25. 25. Assumption #4 Interventions clearly tied to business strategy work. Interventions not clearly tied to business strategy do not – Start where you are – Accept how the company currently works – The intervention must accomplish the company’s purpose and not that of the change agent – The others are always moreSource: William E. Schneider, The Reengineering Alternative
  26. 26. The Baseline „If the management idea fits the nature of the organizational culture it will most likely work. If not, it will most likely fail.“ • Kanban does not fit to all organizational cultures • Kanban is less invasive than Scrum, but still a big challenge for most enterprisesSource: William E. Schneider, The Reengineering Alternative
  27. 27. Organizational Culture We pay attention to… Collaboration Culture Presence and Control Culture Reality Goal Synergy Goal Dominance Method Teamwork Method Gain control Customer Relationship Cooperation Customer Relationship Controlled Organizational Model Team Organizational Model Hierarchy Archetype Family Archetype Military The way we take Personal decisions is… Impersonal Goal Improvement Goal Excellency Method Personal growth Method Growth of expertise Customer Relationship Fulfilment Customer Relationship Exploit your USP Organizational Model Network Organizational Model Matrix, ad hoc Archetype Religion Archetype University Possible Cultivation Culture Future Competence CultureSource: William E. Schneider, The Reengineering Alternative
  28. 28. The Six Kanban Practices • Visualize work • Limit the work in progress • Manage flow • Make policies explicit • Implement feedback loops • Improve collaboratively, evolve experimentallySource: Leopold, Kaltenecker, Kanban in der IT
  29. 29. Six Kanban Core Practices We pay attention to…Collaboration Culture Presence and Control Culture Reality Make Feedback policies loops explicit Visualize Limit the WIP work Scrum ? The way we takePersonal decisions is… Impersonal Improve (based on Manage flow models) Kanban focuses on operational excellence by getting statistical control and improving the Possible system‘s cultureCultivation Culture Future Competence Culture
  30. 30. Core Processes of Traditional PM We pay attention to…Collaboration Culture Presence and Control Culture Reality Project Initiating planning Executing Controlling The way we takePersonal decisions is… Impersonal Closing Traditional project management focuses on getting control of a team and utilizing them to the highest possible extent PossibleCultivation Culture Future Competence Culture
  31. 31. Finding the right Cure • Would you buy a medicine that claims to help against all diseases ? • The six Kanban practices have to be adopted to fit the organizational culture • Kanban will fit control cultures, might be adoptable to collaboration and competence cultures and will most likely fail in cultivation cultures„If the management idea fits the nature of the • This is the same compatibilityorganizational culture it will pattern as with traditional project most likely work. managementIf not, it will most likely fail.“
  32. 32. Kanban Principles1. Start where you are – Understand culture, strategy and leadership – Identify stakeholders, pain points and interests2. Apply evolutionary, incremental change3. Initially respect job titles, roles, responsibilities and processes4. Encourage leadership on all levels – Depending on the organizational culture this might be difficult
  33. 33. The usual Stakeholders Happy customers will help you in keeping the management buy in Customer Line Management Win the customer Do not betray the line (reliability, predictability) management (transparency) Win the end users Project Plan resources and buildEnd Users (quality, flexibility) Team up creative tension Stick to the rules Other Other Other (but don‘t overperform) Plan resources Projects Projects (availability) Projects Win PMO Legacy Legacy Legacy Products Products Join Products Avoid
  34. 34. Know your Strengths and Weaknesses (as compared to traditionally managed projects)Strengths Weaknesses• Better control of productivity • No stable plan by definition• Less variability • Statistical control is not as sexy as direct• Usually better quality control (for traditional managers)• Much more flexibility • Some cultures might not like the idea of• Better integration with legacy a team taking decisions maintenance and other projects• Plenty of metrics availableOpportunities Threats• Users/customers are generally • You‘re a democratic alien in C&C disappointed of traditionally managed • You‘re a heartless number cruncher in IT projects collaboration cultures• Users/customers usually like the way of • You‘re mediocre in competence cultures working with agile teams • You‘re totally insane in cultivation• Long-term relationship with the cultures customer is possible • The PMO usually hates you • External interventions might erode your agile implemenentation
  35. 35. Strategy 1: The eroding sandwich Traditional Traditional Development Project Release (Kanban) Management Planning Customer IT Operations• Perhaps the easiest way in established companies• Pros: easy, less conflict, potential growth in both directions• Cons: undermines end-to-end thinking, possible concurrency with project manager, focuses too much on process mechanics
  36. 36. Strategy 2: Coexistence Traditionally managed project Kanban Customer project Line Management• Perhaps the best way if supported by line management• Pros: exploitation of the full potential of Kanban possible, allows the build-up of creative tension with traditional projects, prevents monoculture• Cons: might lead to unproductive conflict, totally depending on line management‘s buy in, requires intense relationship management with line management, limited possibilities for cultural change
  37. 37. Strategy 3: All-in Kanban project Customer• Pure Kanban implementation; short term goal in startups, long term goal in established companies• Pros: exploitation of the full potential of Kanban possible, advanced management/leadership principles possible• Cons: maybe not the best fit for all customers (and their cultures) if you are an IT services company
  38. 38. Part IIISUMMARY
  39. 39. Summary• Traditional project management has an impressive track record but is not well-suited for IT development projects – Relies on a plan – Plans input, not output – Biased on waterfall – Projects tend to optimize short-term gain• Traditional project management is about decomposition and getting control• Many companies misuse projects for accounting
  40. 40. Summary (2)• Organizational culture is at the core of a company and influences everything• If the management idea fits the nature of the organizational culture it will most likely work; otherwise it will fail• Organizational cultures can be divided in – Command – stick to the rules ! – Collaboration – work together as a team ! – Cultivation – grow ! – Competence – be the best !
  41. 41. Summary (3)• Kanban focuses on getting (statistical) control of a complex production system (short term goal) and improving it (long term goal)• Project management focuses on getting control of a team and utilizing them to the highest possible extent (short term goal)• Both methods have the idea of control, based on rules and rationale at the core
  42. 42. Summary (4)• Kanban and project management fit well into command cultures• Kanban and project management might work in collaboration and competence cultures• Kanban and project management will likely fail in cultivation cultures (use Scrum there ?)• Kanban and project management can coexist, as they ultimately are rooted in the same culture
  43. 43. AppendixSOMETHING PERSONAL
  44. 44. The Kanban Community Where do you think that the Kanban community (the ones that regularly meet at conferences like this one) best fits into ? We pay attention to… Collaboration Presence and Control Culture Culture RealityPersonal The way we take Impersonal decisions is… Cultivation Culture Competence Culture Possible Future Understand your bias and know your blind spots
  45. 45. The Future of Kanban• Try to attach Kanban to other businesses than IT• The market for IT processes is very saturated• There‘s strong demand for such kind of management in many fields of business• Integrate people from other disciplines to get fresh ideas Learn and grow outside of IT !
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