Kanban: Thinking tools for portfolio-level problems

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Kanban: Thinking tools for portfolio-level problems

  1. 1. LSSC 2012Kanban:Thinking tools forportfolio-level problems Mike Burrows (@asplake)  Por*olio  Problems mike@djaa.com http://positiveincline.com Kanban  for    
  2. 2. Why “Portfolio-level problems”?n  Tes$ng  the  Kanban  Method  as  a   thinking  tool   n  Less  about  offering  solu$ons  to  copy   n  More  about  framing  &  solving  problems  n  Idea  &  experience  sharing    Por*olio  Problems n  Good  &  bad   n  Contextual   Kanban  forn  Vision      
  3. 3. Typical scenario§  Organisation §  Functional, hierarchical, not co-located, part outsourced§  Defined life cycle §  Well observed §  Specs, signoffs §  Cross-functional appetite for improvement,  Por*olio  Problems resourced§  Many fixed-date projects Kanban  for §  Remaining durations of many months §  Very low confidence of date compliance    
  4. 4. Kanban  for    Por*olio  Problems  Cole sees dead people
  5. 5. Cole sees dead people  Por*olio  Problems Kanban  forI  see  enterprise-­‐scale  problems  of  overwhelming  WIP,   ins$tu$onalized  at  every  level  of  the  organisa$on      
  6. 6. Characteris$cs  of  typical  top-­‐down   solu$ons  to  porIolio  level  problems  n  Narrow  n  Compliance-­‐driven  n  Push    Por*olio  Problemsn  Disconnect  between  person  &  system   Kanban  for n  Disrespect      
  7. 7. Scaling  up  has  its  issues  too  n  “We  don’t  know  what  each  person   is  working  on”   n  So  allocate  them?  n  “We’ve  no$ced  that  people  are  too    Por*olio  Problems busy  on  too  many  things”   n  So  add  some  front  end  process?   Kanban  for    
  8. 8. No  maPer  how  narrow  you  make  the  funnel  or  how  fine  you  make  the  filter…    Por*olio  Problems Kanban  for ...the  pipeline  will  remain  full      
  9. 9. PorIolio  level  problems  n  They’re  very  real  n  From  all  sides,  solu$ons  that  don’t   help,  miss  the  point  or  make  things   worse    Por*olio  Problems Kanban  for    
  10. 10. The  6  Kanban  prac$ces    –  are  they  even  relevant  here?  1.Visualize2. Limit work-in-progress3. Manage flow4. Make process policies explicit  Por*olio  Problems5. Implement feedback loops6. Improve collaboratively (using models) Kanban  for    
  11. 11. The  6  Kanban  prac$ces    –  are  they  even  relevant  here?  1.Visualize2. Limit work-in-progress3. Manage flow4. Make process policies explicit  Por*olio  Problems5. Implement feedback loops6. Improve collaboratively (using models) Kanban  for    
  12. 12. 1.Visualizen  Visualize  work   n  Projects1   n  Non-­‐projects  n  Demand  &  supply    Por*olio  Problemsn  Flow,  delivery     Kanban  for1Disclaimers  apply      
  13. 13. 2. Limit work-in-progressn  PorIolio  constraints  designed  to   generate  flow  &  provoke  improvement   n  Number   n  Size  ($,  dura$on  expected)   n  WIP  ($,  elapsed  incurred)    Por*olio  Problems n  Burn  rate   n  Delivery  intensity  /  smoothness   Kanban  for n  Cost  of  Carry      
  14. 14. At  both  extremes  of  scale,  limi$ng  by   number  is  very  effec$ve  n  #  of  developer-­‐level  work  items  n  #  of  ini$a$ves    Por*olio  Problems Kanban  for    
  15. 15. At  intermediate  scales,  visualizing  or   limi$ng  by  number  is  less  help  n  Projects  vary  in  size  by  orders  of   magnitude  n  Volume   Not  everything  is  (or  should  be)  a  project    Por*olio  Problemsn  Kanban  for    
  16. 16. Some  relevant  $$  measures  for  single   projects   J F M A M J J A S O N D 1 2 3 4 5 6 7 8 9 10 11 12 Burn WIPn  Leverage  what  you    Por*olio  Problems have  now   J F M A M J J A S O N D Cost of Carry (cumulative)n  Derive  or  es$mate   Kanban  for before  adding  new   tracking      
  17. 17. Size:  cost  *  dura$on   n  You  probably  want  to   penalize  both   n  You  might  wish  to  trade  them  Cost  Por*olio  Problems Kanban  for Duration    
  18. 18. More  ques$ons  of  cost  *  $me  n  Where  is  the  inventory  that  we  should  help  out   of  the  door?  n  Which  projects  should  we  try  hardest  to  split?  n  Where  has  our  posi$on  worsened   unexpectedly?  n  What  is  my  porIolio  cycle  $me?    Por*olio  Problems n  By  IT  or  business  stream?   n  By  class  of  service?   Kanban  forn  What  is  our  inventory  cos$ng  to  hold?      
  19. 19. Cost  of  Carry  n  Cost  *  rate  integrated  over  $me  n  Roughly  propor$onal  to  cost  *  dura$on  n  Apply  a  meaningful  rate  that  reflects   both  financing  and  delay  costs   n  >>  your  cost  of  funds    Por*olio  Problems n  >  25%  p.a.  (Reinertsen)   n  >  2  *  your  hurdle  rate  (me)   Kanban  for n  Risk-­‐adjusted?      
  20. 20. Many  of  these  measures  can  be   aggregated,  sliced  &  diced  Limit this…to limit this J F M A M J J A S O N D Analyse Design Build Test  Por*olio  Problems Kanban  for Limit to capacity    
  21. 21. 3. Manage flown  Visual  management,  DSS   n  See  inventory  &  its  cost   n  See  flow  as  inventory  turnover   n  See  bright  spots,  rough  spots   what’s  dragging,  where  to  intervene   n  Time  dimension,  backwards  &  forwards    Por*olio  Problemsn  A  support,  not  a  subs$tute  for  leadership   n  An  organiza$onal  feedback  mechanism,   Kanban  for “tension”  for  improvement  n  Make  the  most  of  what  you  have  now      
  22. 22. @alhui  nails  it  n  Provide  just-­‐in-­‐$me  informa$on  to   promote  market  liquidity  and  buyer   decision-­‐making  #lssc12  n  Money  is  not  our  currency.  Its  not   scarce  enough.  Time  and  effort  are  our   unit  of  currency  #lssc12    Por*olio  Problems Kanban  for    
  23. 23. My  hope  is  that  these…   1.Visualize 2. Limit work-in-progress 3. Manage flow…lead  to  these    Por*olio  Problems 4. Make process policies explicit 5. Implement feedback loops Kanban  for 6. Improve collaboratively (using models)    
  24. 24. But  first  these…   Leadership Agreement Respect  Por*olio  Problems Understanding Kanban  for    
  25. 25. Cole sees dead people  Por*olio  Problems Kanban  forI  see  enterprise-­‐scale  problems  of  overwhelming  WIP,   ins$tu$onalized  at  every  level  of  the  organisa$on      
  26. 26. To:  kanbandev  Subject:    #ppm  <subject>    Your  problems,  thoughts,  experience    Por*olio  Problems Kanban  for    
  27. 27. Thank you.Questions?  Por*olio  Problems Kanban  for Mike Burrows (@asplake) mike@djaa.com http://positiveincline.com    

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