Scaling Kanban in the
Enterprise
Sustainable Improvement

Presenter
David J. Anderson
CEO, Lean Kanban Inc.
Smidig
Oslo
No...
So why am I here?

Kanban is a Management Method!

This isn’t a management conference!

dja@leankanban.com @lkuceo

Smidig...
The Old Model (18th-20th Century)
Designs
Management &
Or
Imposes
Management Workers Defines
–2
different classes

Assign
...
The New Model (21st Century)
All Knowledge
Workers make
management
decisions
Management
Workers

dja@leankanban.com @lkuce...
True Management Training
Very few knowledge
workers are given
proper management
training.
They don’t know
what business th...
What Service Do You Provide?
1. Who are your customers? (or other
stakeholders you must serve such as a
regulatory authori...
Scaling Kanban in the Enterprise is
about Scaling Effective Management
The Kanban Method is not…
A project management or s...
The Kanban Agendas
The Kanban Method is not without its agendas. It
exhibits a bias towards a specific end game…
1. Sustai...
Motivation for Managers
• Senior Level

Survivability
Agenda

• Make promises they can keep
• Lead the business (strategy,...
The Sustainability Agenda

dja@leankanban.com @lkuceo

Smidig 2013 Copyright Lean Kanban Inc.
Goals for using Kanban

Economically balance
capability against demand
dja@leankanban.com @lkuceo

Smidig 2013 Copyright L...
Available options

, disruptive

& speculative
demand
dja@leankanban.com @lkuceo

Smidig 2013 Copyright Lean Kanban Inc.
Fitness

What change really feels like:
The J Curve

Patience!
dja@leankanban.com @lkuceo

Smidig 2013 Copyright Lean Kanb...
Evolutionary change with
many small J’s

Increasing “fitness”

Increasing capability
for change

dja@leankanban.com @lkuce...
Proto-Kanban – infinite queues
Pool
of
Ideas

Next

Done

3

∞

F
G
I

Testing

Development
Ongoing

5

GY

dja@leankanban...
Another Proto-Kanban
per person WIP limit)

dja@leankanban.com @lkuceo

Smidig 2013 Copyright Lean Kanban Inc.
Benefits of proto-Kanban implementation
Benefits
Transparency
Engage people
emotionally
Collaboration
Greater empathy
Redu...
Kanban systems are pull systems
Development

Test
Ready

Testing

UAT

Release
Ready

3

5

3

∞

∞

5

Ideas

Dev
Ready

...
Commitment is deferred
Development

Test
Ready

Testing

UAT

Release
Ready

3

5

3

∞

∞

5

Ideas

Dev
Ready

Ongoing

...
Defining Kanban System Lead Time
Development

Test
Ready

Testing

UAT

Release
Ready

3

5

3

∞

∞

5

Ideas

Dev
Ready
...
Little’s Law
Delivery Rate
(from the kanban system)

=

WIP
System Lead Time

Backlog
Avg. Lead Time
WIP

dja@leankanban.c...
Benefits of service-oriented
single kanban system
Benefits
Predictability
Shorter Lead Times
Increased Throughput
Improved...
The Service-Oriented Agenda

dja@leankanban.com @lkuceo

Smidig 2013 Copyright Lean Kanban Inc.
The Kanban lens
Kanban asks us to view creative knowledge
work with a different perspective:
• Creative work is service-or...
What Service Do You Provide?
1. Who are your customers? (or other
stakeholders you must serve such as a
regulatory authori...
Column WIP Limit
=5
Testing is a
shared service
across 5 dev
teams

In this example,
testing was offshore in Chennai,
Indi...
(some of the)
orange tickets
are avatars for
people from
shared services
such as
enterprise
architecture and
user experien...
5 lanes each with
a dev team
providing a
software
development
service to the
project

dja@leankanban.com @lkuceo

Smidig 2...
Column WIP
Limits
Clinical
Validation
Testing,
Deployment,
P.O. Acceptance
All are shared
service across 3
dev teams

dja@...
Multiple Types of Work
Capacity is allocated across lanes
5
Allocation
Total = 20

4

Analysis
Input
Queue In Prog Done

4...
Multiple classes of service
Allocate capacity with kanban limit per color
5

4

Analysis
Input
Queue In Prog Done

4

5

D...
Scaling out across an
organization

dja@leankanban.com @lkuceo

Smidig 2013 Copyright Lean Kanban Inc.
Kanban has two approaches to scaling
• Scaling by not scaling
• Scale out using the service-orientation concept to
build a...
Treat each service separately
Demand

Observed
Capability

Demand

Observed
Capability

Demand

Observed
Capability

dja@l...
Some systems have dependencies on
others
Demand

Observed
Capability

Demand

Observed
Capability

Demand

Observed
Capabi...
Survivability Agenda

dja@leankanban.com @lkuceo

Smidig 2013 Copyright Lean Kanban Inc.
Daniel Kahneman has given us a simple
model for how we process information
Learning
from theory

Learning by
Experience

S...
How we process change…
I logically evaluate
change using System 2
I adapt quickly

I feel change emotionally
using System ...
Adopting new processes challenges people
psychologically & sociologically
• New roles attack identity
• New responsibiliti...
The Kanban Method…
• Rejects the traditional
approach to change
• Believes, it is better to avoid
resistance than to push
...
The Kanban Method…
• Catalyzes improvement
through use of kanban
systems and visual boards*
• Takes its name from the use
...
The Kanban Method is a new approach to
improvement

Kanban is a
method
without
methodology
dja@leankanban.com @lkuceo

Smi...
Water flows around the rock

“be like water”

the rock represents resistance
dja@leankanban.com @lkuceo

Smidig 2013 Copyr...
Kanban should be like water*
In change
management, resista
nce is from the
people involved
and it is always
emotional (sys...
Principles behind the Kanban Method
• Start with what you do now
• Agree to pursue evolutionary change
• Initially, respec...
6 Practices Enable Process Evolution
The Kanban Method
Visualize
Limit Work-in-progress
Manage Flow
Make Policies Explicit...
Start with what you do now
• The Kanban Method evolved with the principle
that it “should be like water” - enable change
w...
Fitness criteria are metrics that measure
observable external outcomes
• Fitness criteria are metrics
that measure things
...
Validate Fitness Criteria with real
customers
• It is necessary to keep checking that the fitness
criteria we are measurin...
Which system is fitter?
System B

System A Mean 17 days

Mean 12 days

30

14
12
10
8
6
4
2
0

25
20
15
Frequency

10

Fre...
Measuring delivery against expectation
System B

System A Mean 17 days
14
12
10
8
6
4
2
0

System B is clearly fitter!

Me...
Business Risks, Fitness Criteria & Classes
of Service should all align
• If your kanban system is designed properly the
cl...
Evolutionary change has no defined end
point
Initial
Process

Evaluate
Fitness
Roll
back

We don’t know the
end-point but ...
Institutionalize feedback systems to enable
evolutionary change

Operations
Review
System
Capability
Review

manager to su...
Organizational Improvements Emerge

dja@leankanban.com @lkuceo

Smidig 2013 Copyright Lean Kanban Inc.
Disintermediate!
Risks, fitness criteria & classes of service
should be explicit & transparent
Operations
Review

Lead tim...
Scaling Kanban
Each Kanban System is designed from
first principles around a service
provided
Scale out in a service-orien...
Scaled-out multiple kanban systems with
feedback loops & model-driven
improvement
Benefits
Cultural shift
(across whole bu...
Know why you are using a metric!
• Is your metric a fitness criteria that assesses
system capability and indicates fitness...
Thank you!
dja@leankanban.com @lkuceo

Smidig 2013 Copyright Lean Kanban Inc.
Upcoming Training in Scandinavia
3-day Kanban Coaching Professional Masterclass
Stockholm 20-22 November
http://djaa.com/d...
About

David Anderson is a thought
leader in managing effective
software teams. He leads a
training, consulting, publishin...
Acknowledgements
Joe Campbell first blogged about the similarity in philosophy between the
Kanban Method and the teachings...
dja@leankanban.com @lkuceo

Smidig 2013 Copyright Lean Kanban Inc.
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Key Note - Smidig 2013 - Scaling Kanban in the Enterprise - Kanban's 3 Agendas

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The Kanban Method comes with 3 explicit agendas: Sustainability; Service-orientation; and survivability. This presentation looks at how to achieve large scale Kanban implementations in your enterprise and how Kanban will enable sustainable pace, improved service delivery and survivability through evolutionary capability and an improved focused on fitness for purpose

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  • Intent is that class opening to mid-morning break slides 1 through 35
  • Kanban enables us to do all three – improve capability, shape demand and pursue elimination of root causes and reduce failure demandTraditional process improvement and intuitive, instinctive management tends to focus on the left hand side – improving capability – and leaves a lot of value on the table by ignoring shaping demand and reducing failure demand
  • Instructors can point out that the “per person” WIP limit in the Posit case study is another form of proto-KanbanThe main focus of proto-Kanban is reduction of multitasking and individual relief from overburdening but the system can still be overburdened, slow and unpredictable
  • The reason is people resist change. The traditional change model would work perfectly well with silicon-based life forms because the benefits could be argued and agreed with logical. But carbon-based life forms resist change because they don't process it logically but with their sensory perception, their emotional intelligence, the older brain function Daniel Kahneman calls "system 1".
  • The reason is people resist change. The traditional change model would work perfectly well with silicon-based life forms because the benefits could be argued and agreed with logical. But carbon-based life forms resist change because they don't process it logically but with their sensory perception, their emotional intelligence, the older brain function Daniel Kahneman calls "system 1".
  • New roles (defined in the methodology) attack their identityNew responsibilities using new techniques & practices attack their self-esteem and put their social status at riskStatistically, most people resist most change because individually they have more to lose than to gain. Probabilistically, it is safer to be conservative and stick to current practices and avoid shaking up the current social hierarchy. Only the brave or the reckless will pursue grand changes.
  • The Kanban Method rejects the traditional change management method and rejects the installation of a new style of working - a new methodology. It does this because it is better to avoid resistance than to push harder against it.The Kanban Method introduces an evolutionary approach to change that is humane. It is designed to work with carbon-based life forms processing change with system 1. The Kanban Method catalyzes improvement through the use of kanban systems and visual boards (also known as "kanban" in Chinese and in Japanese when written with Chinese characters). It is from the use of kanban that the method takes its name, but it is just a name. Anyone who thinks Kanban is just about kanban (boards & systems) is truly mistaken. The Kanban Method is an example of a new approach to improvement. It is a method without methodology.
  • The Kanban Method rejects the traditional change management method and rejects the installation of a new style of working - a new methodology. It does this because it is better to avoid resistance than to push harder against it.The Kanban Method introduces an evolutionary approach to change that is humane. It is designed to work with carbon-based life forms processing change with system 1. The Kanban Method catalyzes improvement through the use of kanban systems and visual boards (also known as "kanban" in Chinese and in Japanese when written with Chinese characters). It is from the use of kanban that the method takes its name, but it is just a name. Anyone who thinks Kanban is just about kanban (boards & systems) is truly mistaken. The Kanban Method is an example of a new approach to improvement. It is a method without methodology.
  • Bruce Lee was a philosopher. He majored in philosophy at the University of Washington, Seattle. His own personal philosophy was heavily influenced by Taoism and Buddhism. He brought this philosophy to his interpretation of Kung Fu and the heart of JeetKune Do.One of his key teachings was "to be like water". Water flows around the rock. The rock represents resistance - in fighting, the resistance is from the opponent.
  • In change management, resistance is from the people involved and it is always emotional.To flow around the rock, we must learn how to avoid emotional resistance.
  • The Kanban Method evolved with this principle in mind. That we must discover a way that enabled change while avoiding invoking sources of resistance - even better if we could motivate the people involved to advocate for the changes required. With Kanban you start with what you do now, and "kanbanize" it, catalyzing the evolutionary process into action. Changes to processes in use will occur and evaluating whether a change is truly an improvement can be done using fitness criteria that evaluate the external outcome.
  • Fitness criteria are metrics that measure things customer or other external stakeholders value such as delivery time, quality, predictability, conformance to regulatory requirements or metrics that value actual outcomes such as customer satisfaction or employee satisfaction
  • Traditional change is an A to B process. A is where you are now. B is a destination. B is either defined (from a methodology definition) or designed (by tailoring a framework).To get from A to B, a change agency* will guide a transition initiative to install destination B into the organization.*either an internal SEPG or external consultants
  • Kanban closes the learning loop using 3 feedback mechanisms:the standup meeting in front of the kanban boardthe manager to subordinate meetings (both 1-1 and 1-team)the operations review meetingIronically, these have come to known as the Kanban Kata. Ironic because Lee was opposed to Kata as they normally represent an open loop system without learning.
  • Kanban closes the learning loop using 3 feedback mechanisms:the standup meeting in front of the kanban boardthe manager to subordinate meetings (both 1-1 and 1-team)the operations review meetingIronically, these have come to known as the Kanban Kata. Ironic because Lee was opposed to Kata as they normally represent an open loop system without learning.
  • Key Note - Smidig 2013 - Scaling Kanban in the Enterprise - Kanban's 3 Agendas

    1. 1. Scaling Kanban in the Enterprise Sustainable Improvement Presenter David J. Anderson CEO, Lean Kanban Inc. Smidig Oslo November 2013 Release 1.0 dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    2. 2. So why am I here? Kanban is a Management Method! This isn’t a management conference! dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    3. 3. The Old Model (18th-20th Century) Designs Management & Or Imposes Management Workers Defines –2 different classes Assign Workers To Tasks Manager as “dating agent” Model Workers dja@leankanban.com @lkuceo Process Follow Smidig 2013 Copyright Lean Kanban Inc. Process Coaches
    4. 4. The New Model (21st Century) All Knowledge Workers make management decisions Management Workers dja@leankanban.com @lkuceo Facilitate Pay grade relates Process Control & learning risk & authority to Evolve Policies override or change process policies Smidig 2013 Copyright Lean Kanban Inc. Process Coaches
    5. 5. True Management Training Very few knowledge workers are given proper management training. They don’t know what business they are in! dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    6. 6. What Service Do You Provide? 1. Who are your customers? (or other stakeholders you must serve such as a regulatory authority) 2. What do they ask you for? 3. What do you do to those requests? 4. Where does the finished work go? dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    7. 7. Scaling Kanban in the Enterprise is about Scaling Effective Management The Kanban Method is not… A project management or software development lifecycle process Nor, does it encourage a processcentric approach to improvement! It’s a service-oriented approach to management & organization dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    8. 8. The Kanban Agendas The Kanban Method is not without its agendas. It exhibits a bias towards a specific end game… 1. Sustainability 2. Service-orientation 3. Survivability dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    9. 9. Motivation for Managers • Senior Level Survivability Agenda • Make promises they can keep • Lead the business (strategy, positioning) • Mid-level Service-Oriented Agenda • Up-managing – answer the hard questions with confidence Sustainability • Down-managing – make difficult decisions with Agenda confidence • Line-level & Individual Contributors • Relief from abusive environment dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    10. 10. The Sustainability Agenda dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    11. 11. Goals for using Kanban Economically balance capability against demand dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    12. 12. Available options , disruptive & speculative demand dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    13. 13. Fitness What change really feels like: The J Curve Patience! dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    14. 14. Evolutionary change with many small J’s Increasing “fitness” Increasing capability for change dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    15. 15. Proto-Kanban – infinite queues Pool of Ideas Next Done 3 ∞ F G I Testing Development Ongoing 5 GY dja@leankanban.com @lkuceo Deployment Ready Ongoing 3 Done ∞ I am a buffer! Infinite limits on done columns D P1 means that there really isn’t a The clue is in my name – “… E kanban pull system present. PB Ready” DE MN proto-kanban AB This style of I am buffering non-instant controls multi-tasking but availability or activity with a doesn’t limit workflow WIP cyclical cadence Smidig 2013 Copyright Lean Kanban Inc. ∞ Done
    16. 16. Another Proto-Kanban per person WIP limit) dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    17. 17. Benefits of proto-Kanban implementation Benefits Transparency Engage people emotionally Collaboration Greater empathy Reduced multitasking dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    18. 18. Kanban systems are pull systems Development Test Ready Testing UAT Release Ready 3 5 3 ∞ ∞ 5 Ideas Dev Ready Ongoing Pull K M F Done B Pull J G N O F I F Pull D C * Pulling work from Now we have capacity development will There is capacity here I to replenish our ready create capacity here buffer – too the pull signals move upstream! dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    19. 19. Commitment is deferred Development Test Ready Testing UAT Release Ready 3 5 3 ∞ ∞ 5 Ideas Dev Ready Ongoing Done Ideas remain optional and unprioritized Pull F F F F F F F D G E Wish to avoid discard after commitment We are committing to getting started. We are certain we want to take delivery. Commitment point dja@leankanban.com @lkuceo I Smidig 2013 Copyright Lean Kanban Inc.
    20. 20. Defining Kanban System Lead Time Development Test Ready Testing UAT Release Ready 3 5 3 ∞ ∞ 5 Ideas Dev Ready Ongoing Pull F F F F F F F D G Done The clock starts ticking when we accept the customers order, not when it is placed!Kanban system lead time Until then customer orders are ends merely E available options when the item reaches the System Lead Time I Abandoned I dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc. first ∞ queue
    21. 21. Little’s Law Delivery Rate (from the kanban system) = WIP System Lead Time Backlog Avg. Lead Time WIP dja@leankanban.com @lkuceo Ready To Deploy Avg. Delivery Rate Smidig 2013 Copyright Lean Kanban Inc.
    22. 22. Benefits of service-oriented single kanban system Benefits Predictability Shorter Lead Times Increased Throughput Improved trust with business stakeholders Eliminated Disruptions Measurable Benefits dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    23. 23. The Service-Oriented Agenda dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    24. 24. The Kanban lens Kanban asks us to view creative knowledge work with a different perspective: • Creative work is service-oriented • Service delivery involves workflow • Workflow involves a series of knowledge discovery activities Learn to view what you do now as a set of services (that can be improved) dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    25. 25. What Service Do You Provide? 1. Who are your customers? (or other stakeholders you must serve such as a regulatory authority) 2. What do they ask you for? 3. What do you do to those requests? 4. Where does the finished work go? dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    26. 26. Column WIP Limit =5 Testing is a shared service across 5 dev teams In this example, testing was offshore in Chennai, India dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    27. 27. (some of the) orange tickets are avatars for people from shared services such as enterprise architecture and user experience design dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    28. 28. 5 lanes each with a dev team providing a software development service to the project dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    29. 29. Column WIP Limits Clinical Validation Testing, Deployment, P.O. Acceptance All are shared service across 3 dev teams dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    30. 30. Multiple Types of Work Capacity is allocated across lanes 5 Allocation Total = 20 4 Analysis Input Queue In Prog Done 4 5 Development In Prog Done Build Ready Change Req 12 Maintenance 2 Production Defect 6 dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc. 2 Test = 20 total Release Ready Released
    31. 31. Multiple classes of service Allocate capacity with kanban limit per color 5 4 Analysis Input Queue In Prog Done 4 5 Development In Prog Done Build Ready Allocation +1 = +5% 4 = 20% 10 = 50% 6 = 30% dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc. 2 = 20 total Test Release Ready ...
    32. 32. Scaling out across an organization dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    33. 33. Kanban has two approaches to scaling • Scaling by not scaling • Scale out using the service-orientation concept to build a network of independently operating but interdependent services • Scaling by scale-free understanding • Same principles apply at 3 levels • Personal / small team – Tasks completed in hours • Service delivery / workflow – Work items e.g. user stories completed in days • Portfolio – Projects, MVPs, MMFs completed in months dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    34. 34. Treat each service separately Demand Observed Capability Demand Observed Capability Demand Observed Capability dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    35. 35. Some systems have dependencies on others Demand Observed Capability Demand Observed Capability Demand Observed Capability dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    36. 36. Survivability Agenda dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    37. 37. Daniel Kahneman has given us a simple model for how we process information Learning from theory Learning by Experience SLOW FAST But slow to learn System 1 Sensory Perception Pattern Matching dja@leankanban.com @lkuceo But fast to learn Daniel Kahneman Smidig 2013 Copyright Lean Kanban Inc. System 2 Logical Inference Engine
    38. 38. How we process change… I logically evaluate change using System 2 I adapt quickly I feel change emotionally using System 1 Silicon-based life form I adapt slowly Daniel Kahneman dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc. Carbon-based life form
    39. 39. Adopting new processes challenges people psychologically & sociologically • New roles attack identity • New responsibilities using new techniques & practices threaten self-esteem & social status • Most people resist most change because individually they have more to lose than gain • It is safer to be conservative and stick to current practices and avoid shaking up the current social hierarchy • Only the brave, the reckless or the desperate will pursue grand changes dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    40. 40. The Kanban Method… • Rejects the traditional approach to change • Believes, it is better to avoid resistance than to push harder against it • Don’t install new processes • Don’t reorganize • Is designed for carbon-based life forms • Evolutionary change that is humane dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    41. 41. The Kanban Method… • Catalyzes improvement through use of kanban systems and visual boards* • Takes its name from the use of kanban but it is just a name • Anyone who thinks Kanban is just about kanban (boards & systems) is truly mistaken *also known as "kanban" in Chinese and in Japanese when written with Chinese charac dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    42. 42. The Kanban Method is a new approach to improvement Kanban is a method without methodology dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    43. 43. Water flows around the rock “be like water” the rock represents resistance dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    44. 44. Kanban should be like water* In change management, resista nce is from the people involved and it is always emotional (system 1) To flow around the rock, we must learn how to avoid emotional resistance * http://joecampbell.wordpress.com/2009/05/13/be-like-water/ dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    45. 45. Principles behind the Kanban Method • Start with what you do now • Agree to pursue evolutionary change • Initially, respect roles, responsibilities and job titles • Encourage acts of leadership at all levels The first 3 principles were specifically chosen to address System 1 objections, to flow around the rock of emotional resistance in humans dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    46. 46. 6 Practices Enable Process Evolution The Kanban Method Visualize Limit Work-in-progress Manage Flow Make Policies Explicit Implement Feedback Loops Improve Collaboratively, Evolve Experimentally (using models & the scientific method) dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    47. 47. Start with what you do now • The Kanban Method evolved with the principle that it “should be like water” - enable change while avoiding sources of resistance • With Kanban you start with what you do now, and "kanbanize" it, catalyzing the evolutionary process into action. Changes to processes in use will occur • Evaluating whether a change is truly an improvement is done using fitness criteria that evaluate an external outcome dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    48. 48. Fitness criteria are metrics that measure observable external outcomes • Fitness criteria are metrics that measure things customers or other external stakeholders value • • • • Delivery time Quality Predictability Safety (conformance to regulatory requirements) • or metrics that value actual outcomes such as • customer satisfaction • employee satisfaction dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    49. 49. Validate Fitness Criteria with real customers • It is necessary to keep checking that the fitness criteria we are measuring do indeed matter to customers • Variation in what matters to different customers provides the opportunity to segment demand and offer different classes of service within your kanban system • e.g. Will you pay extra to have your pizza delivered faster? dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    50. 50. Which system is fitter? System B System A Mean 17 days Mean 12 days 30 14 12 10 8 6 4 2 0 25 20 15 Frequency 10 Frequency 5 0 5 Lead Time (Days) 10 15 20 25 30 More Lead Time in Days We don’t know! System B is faster but without understanding customer expectations, both may be fit enough dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    51. 51. Measuring delivery against expectation System B System A Mean 17 days 14 12 10 8 6 4 2 0 System B is clearly fitter! Mean 12 days 30 25 20 15 Frequency 10 Frequency 5 System B delivers 5/7 within expectations System A only delivers 3/7 within expectations 0 5 10 15 Lead Time (Days) 20 10 8 6 4 Frequency 45 40 35 30 25 20 15 10 5 0 Frequency -15 Lead Time Expectation Spread (Days) dja@leankanban.com @lkuceo More System B 12 0 30 Lead Time in Days System A 2 25 -10 -5 0 5 10 15 20 More Lead Time Expectation Spread (Days) Smidig 2013 Copyright Lean Kanban Inc.
    52. 52. Business Risks, Fitness Criteria & Classes of Service should all align • If your kanban system is designed properly the classes of service you are offering should align with the true business risks in the domain • And the metrics being used to evaluate system capability, should be fitness criteria that are derived from the business risk being managed • For example, cost of delay requires us to measure lead time dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    53. 53. Evolutionary change has no defined end point Initial Process Evaluate Fitness Roll back We don’t know the end-point but we do know our emergent Evaluate process is fitter! Fitness Evaluate Fitness Roll forward Evolving Process Evaluate Fitness Evalua Fitnes Future process is emergent dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    54. 54. Institutionalize feedback systems to enable evolutionary change Operations Review System Capability Review manager to subordinate(s) (both 1-1 and 1-team) dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc. Standup Meeting
    55. 55. Organizational Improvements Emerge dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    56. 56. Disintermediate! Risks, fitness criteria & classes of service should be explicit & transparent Operations Review Lead time Quality Predictability System Capability Review manager to subordinate(s) (both 1-1 and 1-team) dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc. Expose risk, classes of service & fitness criteria at all 3 levels of feedback Lead time Quality Predictability Standup Meeting Lead time Quality Predictability
    57. 57. Scaling Kanban Each Kanban System is designed from first principles around a service provided Scale out in a service-oriented fashion Do not attempt to design a grand solution at enterprise scale The Kanban Kata are essential! Allow a better system of systems to emerge over time dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    58. 58. Scaled-out multiple kanban systems with feedback loops & model-driven improvement Benefits Cultural shift (across whole business) Managers Managing Empowerment Autonomy Continuous Improvement Viral Spread dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    59. 59. Know why you are using a metric! • Is your metric a fitness criteria that assesses system capability and indicates fitness for purpose and likelihood of surviving and thriving by satisfying customers? • Or, is your metric evaluating and guiding a specific change to improve fitness of the system? • If neither, you don’t need it! • Metrics guiding improvements should be temporary & discarded when no longer needed dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    60. 60. Thank you! dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    61. 61. Upcoming Training in Scandinavia 3-day Kanban Coaching Professional Masterclass Stockholm 20-22 November http://djaa.com/david-anderson-6 2-day Advanced Practitioner Oslo 10-11 February, 2014 Copenhagen 12-13 February, 2014 (email me for details) dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    62. 62. About David Anderson is a thought leader in managing effective software teams. He leads a training, consulting, publishing and event planning business dedicated to developing, promoting and implementing sustainable evolutionary… He has 30 years experience in the high technology industry starting with computer games in the early 1980’s. He has led software teams delivering superior productivity and quality using innovative agile methods at large companies such as Sprint and Motorola. David is the pioneer of the Kanban Method an agile and evolutionary approach to change. His latest book, published in June 2012, is, Lessons in Agile Management – On the Road to Kanban. David is the leader of Lean Kanban Inc., a management training business dedicated to offering high quality management training for creative knowledge worker industries throughout the world. dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    63. 63. Acknowledgements Joe Campbell first blogged about the similarity in philosophy between the Kanban Method and the teachings of Bruce Lee. He coined the phrase “Kanban should be like water”. The data on slides 52 & 53 was provided by Raymond Keating of CME Group. Kanban’s 3 Agendas has been a collaboration with Mike Burrows with input from Kurt Hausler, Markus Andrezak & Andy Carmichael The succinct summary of Kanban’s approach to scaling is borrowed from Andy Carmichael’s “Shortest Possible Definition of Kanban” dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
    64. 64. dja@leankanban.com @lkuceo Smidig 2013 Copyright Lean Kanban Inc.
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