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Kanban as an economic bargaining system for portfolio management

Kanban as an economic bargaining system for portfolio management






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  • Lots of work, and keeps it coming, typical IT organization has more projects than people and they are being asked to do more with less
  • As a result, we are literally drowning in projects trying to stay afloatWith the all the projects we live in a constant fog of war with no visibility
  • Standard response we see today, let’s stop the flow and gain some controlAdding more process, gates and checkpoints, similar to building a dam
  • The result, projects navigate through a maze of processThis is a system designed to slow everything down and is a place where projects come to die
  • Offer an alternative view instead of centralizing control and depending on processExpose the capability of our scarce resources as a goodAnd push the decision making of purchasing to the buyersi.e. Setup an economic bargaining system
  • The market needs to move from a game of underground politics and back alley dealings…To a game of information and transparency
  • We now have a tool for the job, KanbanA kanban system provides:A common unit of currency for buyers to purchase, kanban cardsA marketplace for buyers to bargain and replenishA visual system of economic bargains made/purchased

Kanban as an economic bargaining system for portfolio management Kanban as an economic bargaining system for portfolio management Presentation Transcript

  • Kanban as an economic bargaining system for portfolio managementLSSC 12 – Ignite TalkMay 2012
  • Kanban on steroids…With three principles Kanban can provide avisual market of economic bargains made bythe organization
  • Offer a “common unit of currency” that represents realsystem scarcity and tie it to planning and customer value Money is not our Unit of scarce resource, Scarcity it’s time and effortTime and effort Time and effortdoes not give is hard tovalue to the accuratelycustomer forecast against Unit of Unit of Value Planning
  • Use throughput and lead time of work types as “commonunits of currency” Defend Differentiator Home Months Average Throughput/Mth Fashion Market Risk Customer Commodity Spoiler Defect 1 2 3 CRCorporate EHT Value Type Demand 12 Investment Business Emergency Technical Cost of Delay Large Massive ATG Fixed Date Size Incremental Solution Medium Small Mobile Integration Months Average Throughput/Mth Work Types Size Lead time 1 2 3 Back end change 1 1 month 12 Batch Job 1 1 month New Web Service 3 2 months Data Conversion 3 3 months
  • Making it real – Enterprise Work Type Catalogue Class of Work Type Lead Time Cost Service GIS Bug Fix Fixed Date 14 $ 6,000 GIS Data Class + Minor Code Change Standard 45 $ 9,000 Package (simple) GIS Data Class + Web Service + Data Standard 180 $ 24,000 Conversion Package (complex) GIS Configuration Package Standard 30 $ 2,000 GIS Coding Package (small) Standard 30 $ 6,000 GIS Coding Package (medium) Standard 60 $ 18,000 GIS Coding Package (large) Standard 120 $ 34,000 GIS Quick Change Expedite 5 $ 12,000
  • Provide a “marketplace” for buyers to bargainand bid against available supply using the“common unit of currency”
  • Expose queues to your customers and allocate capacitybased on throughput currencyIdentify and Set allocations Prioritize Work using Work gets pulledcategorize demand using queues and prioritized queues into delivery WIP limits based on capacity Q4 Q3 Q2 Q1 Build Test Release Demand (50) (50) (50) (50) (5) (8) Channel A 40% Demand Queue A Channel B 20% Demand Queue B Channel C 40% Demand Channel D Queue C
  • Making it real – Monthly bargaining meeting for replenishment Geographic Queue Information Group (8) Natural Queue Resources Group (16) Region North Queue Group (0) Input Queue Region Queue (34) Central Group (0) Region West Queue Group (0) Data Classes Queue Group (10)
  • Provide just-in-time information to promotemarket liquidity and buyer decision-making
  • Decompose and visualize projects as releasable incrementsof business value Projects MMFs Blocker Expedite Fixed Date Standard Class Investment Ready for Project Ready Idea Initial Inception Elaboration Build Test Release Released Done for Backlog Funding (4) (4) Elaboration Projects Feature Sets (8) (8) (4) Under Queue IP Done IP IP Done IP Done Build (8) (8) (4) (4)OnlineSellingProjectsMaintenance Request Backlog (4)and Support Request Backlog (4)ExternalPrograms/ Projects Items blocked > 2 weeks get kicked back
  • Making it real – Agile Portfolio Kanban with MinimalMarketable Feature Sets
  • By applying these three principles withKanban you can setup an economicbargaining system for portfolio management
  • This is the first step to moving an organization towards“leveling flow” by moving from budget based planning tothroughput based planning Budget Planning Level of Work Throughput based Planning Time
  • Thank you for listening and look forward to hearing feedbackfrom the community Alexis Hui Deloitte LEAN Co-founder Senior Consultant – Technology alhui@deloitte.ca Deloitte LEAN LEAN Enhanced Agile for eNterprises http://agileconsulting.blogspot.com/ Twitter: alhui