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10 Years of Kanban - What have we learned


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Opening 45 minute key note from Lean Kanban India summarizing 10 years of Kanban history and main innovations and advances during that time, plus a brief overview of Enterprise Services Planning as the future direction for the movement

Published in: Leadership & Management
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10 Years of Kanban - What have we learned

  1. 1. Copyright Lean Kanban Inc. @LKI_dja 10 Years of Kanban What have we Learned? Presenter David J. Anderson LeanKanban India December 2015
  2. 2. Copyright Lean Kanban Inc. @LKI_dja 2004-2006 Microsoft XIT Sustaining Eng. Deferred commitment pull system coupled to probabilistic understanding of lead time • Improved productivity over 200% • Greatly improved predictability • Shortened lead times by ~90% Use of Kanban systems is minimally intrusive for engineers. Process methodologies didn’t change • PSP/TSP remained in use throughout
  3. 3. Copyright Lean Kanban Inc. @LKI_dja Conclusion Kanban is good for service delivery
  4. 4. Copyright Lean Kanban Inc. @LKI_dja 2006 Validating Evidence Eric Landes at Robert Bosch copies XIT solution for intranet maintenance and produces similar results HP Printer Firmware Division, Boise, Idaho, implements a kanban system as part of a Lean initiative and attributes 400% of an 800% productivity improvement to kanban. Lead times fall from 21 months to 3.5 months
  5. 5. Copyright Lean Kanban Inc. @LKI_dja Conclusion Kanban and its results are repeatable
  6. 6. Copyright Lean Kanban Inc. @LKI_dja 2007 Kanban Method Emerges Kanban systems aren’t enough when there is too much variability in the workflow and too much heterogeneity of work types and trouble matching worker skills & experience • Now known as a system liquidity problem • Visual boards are introduced • Kanban limits create stress & provoke process improvements • Multiple classes of service emerge
  7. 7. Copyright Lean Kanban Inc. @LKI_dja 2007 Kanban Method Matures A combination of elements of Kanban such as system replenishment, classes of service, understanding cost of delay, transparency and metrics start to change entire company culture Operations review drives BU wide improvements and starts to influence other BUs within the firm
  8. 8. Copyright Lean Kanban Inc. @LKI_dja Conclusion The Kanban Method is a management system for cultural change & improving organizational maturity
  9. 9. Copyright Lean Kanban Inc. @LKI_dja 2007 First Kanban Software Digital Whiteboard application developed by Darren Davis at Corbis runs on top Microsoft Team Foundation Server Workers run Digital Whiteboard on their desktop but continue to use physical boards in parallel
  10. 10. Copyright Lean Kanban Inc. @LKI_dja Conclusion We need software to get good metrics easily and amplify the management value of Kanban
  11. 11. Copyright Lean Kanban Inc. @LKI_dja 2007 Kanban on Big Projects $11 million budget project with up to 55 people, 16 month schedule, approximately 2400 user story scope 2-tiered kanban boards emerge to visualize parent- child dependencies in requirementsIntroduces hybrid of dedicated teams and floating project personnel using avatars • Specialists such as architects, UX • Generalists who can help any team
  12. 12. Copyright Lean Kanban Inc. @LKI_dja Conclusion Kanban is useful on large projects to improve predictability. More guidance on prioritizing backlogs is required at large scale.
  13. 13. Copyright Lean Kanban Inc. @LKI_dja 2008 Early Adopters Emerge  BBC and IPC Media in London  NBC Universal in LA & New York  Motley Fool in Washington DC area  Constant Contact (Boston) & Ultimate (Ft. Lauderdale), both SaaS firms Media, Internet, SaaS firms are primary early adopters Media, Internet & SaaS firms suffer from acute, self-evident cost of delay and ‘tyranny of the timebox’ challenges. Kanban address these issues for them
  14. 14. Copyright Lean Kanban Inc. @LKI_dja 2009
  15. 15. Copyright Lean Kanban Inc. @LKI_dja 2009 Lean Kanban Conference First community conference held in Miami. Only 58 attendees. Sponsored by Ultimate Software (who will continue to support us for the next 6 years) Full day, single track of Kanban content includes case studies from • Motley Fool • SEP • Inkubook / Authorhouse • Phidelis • Yahoo!
  16. 16. Copyright Lean Kanban Inc. @LKI_dja 2009 Definition of Kanban Method  Principles • Start with what you do now • Agree to pursue evolutionary change • Initially, respect existing roles, responsibilities & job titles  Practices • Visualize, Limit WIP • Manage Flow, Make Policies Explicit • Implement Feedback Loops • Improve collaboratively, evolve experimentally The Kanban Method is positioned as an approach to evolutionary improvement Recognizing that kanban systems were part of a wider management system, the whole system is named for the use of kanban systems
  17. 17. Copyright Lean Kanban Inc. @LKI_dja 2009 “Be Like Water” Joe Campbell’s blog post inspires step 1 of the Ladder of Escalating Motivation for Change, and our primary strategy for resistance to change which is to avoid it This will lead to the comparison of Kanban with Bruce Lee’s journey with Jeet June Do, and the development of Fitness for Purpose and the concept of an adaptive anti-fragile enterprise
  18. 18. Copyright Lean Kanban Inc. @LKI_dja 2009 More Validating Evidence First case emerges which replicates the cultural effects observed in 2007 at Corbis • IPC Media, London (Rob Hathaway, Indigo Blue) First real evidence that the Kanban Method is a repeatable and predictable system of management
  19. 19. Copyright Lean Kanban Inc. @LKI_dja 2009 Commercial Software Entrepreneurs introduce commercial Kanban software products. Initial products come from fans who’ve followed the journey for years Leankit Kanban from Nashville, Tenessee Tools for Agile, Silver Catalyst, Pune, India SwiftKanban starts in 2010
  20. 20. Copyright Lean Kanban Inc. @LKI_dja 2009 “Tyranny of the Timebox” “Tyranny of the Timebox” concept emerges at Agile 2009 after Arlo Belshee/Jim Shore explain the discontinuity from discrete processes (timeboxes) to continuous processes (kanban systems) • Simply making timeboxes smaller to improve agility would never lead you to adopt Kanban. • Kanban was a discontinuous and non-obvious innovation in the Agile community
  21. 21. Copyright Lean Kanban Inc. @LKI_dja 2009 Portfolio Kanban First Portfolio Kanban example presented at Agile 2009 • There is no WIP limit at the portfolio level • Limit WIP on projects, MMFs or MVPs doesn’t make sense
  22. 22. Copyright Lean Kanban Inc. @LKI_dja 2010 – Kanban “blue book”
  23. 23. Copyright Lean Kanban Inc. @LKI_dja 2010 - STATIK Recognizing the need to teach people how to get started with Kanban, training classes adopt the use of the STATIK exercises STATIK = the Systems Thinking Approach To Implementing Kanban • the method is presented at conference in 2012 • the acronym will not be introduced until 2013
  24. 24. Copyright Lean Kanban Inc. @LKI_dja 2010 High Maturity Organizations Kanban is recognized as a method that encourages adoption of higher maturity quantitative methods Kanban is also recognized as a key part of accelerated organizational maturity improvement • Published case studies describe CMMI …….. ML1-ML2 in 3 months, ML2-ML3 in 9 months, ML3-ML5 in 9 months • These timescales are “off the scale” compared to typical timescales for CMMI adoption
  25. 25. Copyright Lean Kanban Inc. @LKI_dja 2010 Upstream Kanban Initially in Belgium and France Upstream Kanban will evolve into Discovery Kanban lead by Patrick Staeyert and his client Nemetschek Skia. Case study will be published in 2013
  26. 26. Copyright Lean Kanban Inc. @LKI_dja 2010 Proto-Kanban First recognized in the Posit Science case study in 2009, pre- kanban system implementations without a full pull system are recognized as an important part of the coaching toolbox Richard Turner of the Stevens Institute coins the term “proto- Kanban” to describe these pre-pull system implementations that eventually evolve into full Kanban 3 Types of Proto-Kanban are eventually recognized • Aggregated personal kanban • Aggregated team kanban • Per-person WIP limits
  27. 27. Copyright Lean Kanban Inc. @LKI_dja 2010 IT Operations  IT Ops people begin appearing in classes  They want to design aggregated personal kanban boards • Specialist workers often dedicated to single work-item type • Refactor to lanes for types, multi- skilled workers with avatars  Demand analysis & capacity allocation become even more important • Especially for unplanned, irrefutable work (push)
  28. 28. Copyright Lean Kanban Inc. @LKI_dja 2010 Break out from IT Sector Stories of Kanban in HR/Recruitment, Sales, and other functions emerge Medium-sized owner-managed firms begin to adopt Kanban enterprise wide • e.g. Huddle Group, Argentina In 2011 stories of legal firms using Kanban for case files emerged in UK and New Zealand
  29. 29. Copyright Lean Kanban Inc. @LKI_dja 2011 Large Scale Enterprise Adoption Business unit wide adoption begins to emerge at firms such as • Petrobras • McKesson • Vanguard • Amdocs
  30. 30. Copyright Lean Kanban Inc. @LKI_dja 2011 Lean Kanban University established Accredited Kanban Trainer program inaugurated with 16 founding member companies and over 20 AKTs • Standardized “practitioner” curriculum published
  31. 31. Copyright Lean Kanban Inc. @LKI_dja 2013 – Kanban Agendas  Survivability • Resilience/anti-fragility • Evolutionary capability  Service-orientation • Fitness criteria metrics • Workflow • service level expectations  Sustainability • Relief from over-burdening
  32. 32. Copyright Lean Kanban Inc. @LKI_dja 2013 Fitness for Purpose Service-orientation allows us to ask what makes a service “fit for purpose” Fitness criteria are metrics that measure things customers value when selecting a service again & again • Delivery time • Quality • Predictability • Safety (or conformance to regulatory requirements)
  33. 33. Copyright Lean Kanban Inc. @LKI_dja 2013 Kanban Values Transparency Balance Collaboration Customer Focus Flow Leadership Understanding Agreement Respect
  34. 34. Copyright Lean Kanban Inc. @LKI_dja 2014 Kanban from the Inside
  35. 35. Copyright Lean Kanban Inc. @LKI_dja 2013 Scale-free understanding Eliminating unbounded queues • Proto-kanban to full workflow kanban • Coupling interdependent network of kanban systems Andy Carmichael’s Smallest Possible Definition of Kanban See Flow, Start Here, With visible work & policies, validate improvements Core practices renamed “general practices” with specific practices at different scales • Personal/team Kanban • Service Delivery / Workflow Kanban • Portfolio Kanban
  36. 36. Copyright Lean Kanban Inc. @LKI_dja 2014 Kanban Litmus Test 1. Have managers changed their behavior? 2. Has the customer interface changed? 3. Has the customer contract changed? 4. Has the service delivery business model changed? If you can’t answer yes to at least 2 of these questions you aren’t doing Kanban yet!
  37. 37. Copyright Lean Kanban Inc. @LKI_dja What we now know!  Kanban systems are applicable for almost any creative or knowledge work service delivery workflow  The Kanban Method is appropriate wherever an evolutionary approach to change is desirable  Kanban works in low and high maturity organizations but basic maturity or converged workflow steps are required to model and implement a kanban system
  38. 38. Copyright Lean Kanban Inc. @LKI_dja What we now know!  Use of Kanban consistently shows 200-800% productivity gains and 50-90% lead time improvements where a baseline is available  Personal Kanban is a “gateway drug” to introduce Kanban in the office  Personal Kanban in the office is known as Team Kanban and is a form of Proto-Kanban  Getting beyond Proto-Kanban is challenging!!!
  39. 39. Copyright Lean Kanban Inc. @LKI_dja What we now know!  Kanban represents about 3% of the Agile market by revenue.  Shallow/Proto-Kanban is widely adopted but represents no market value • Physical boards • Little or no training or consulting  Kanban is more readily adopted by non-IT people who have no “methodology baggage”
  40. 40. Copyright Lean Kanban Inc. @LKI_dja What we now know!  Kanban depth & maturity maps to organizational maturity level  Kanban adoption doesn’t work without sharing some of the 9 values  Kanban maturity does not improve without leadership  Kanban can be culturally challenging for many businesses
  41. 41. Copyright Lean Kanban Inc. @LKI_dja A vision from 2003 In 2003, I described my work with Feature-driven Development (FDD) & Agile Management as “like MRP for Knowledge Work” Instead Don Reinertsen said, “you have all the pieces in place to adopt the use of kanban systems”
  42. 42. Copyright Lean Kanban Inc. @LKI_dja Kanban to MRP  1947 Kanban in manufacturing – Taiichi Ohno • Term “kanban” not adopted until 1964  1964 Manufacturing Requirements Planning – Joseph Orlicky • Book published in 1975  Kanban to MRP 17 years
  43. 43. Copyright Lean Kanban Inc. @LKI_dja A vision for 2015 We now have all the pieces in place to start managing modern business where employees “think for a living” and make decisions – knowledge worker businesses – and managing them with the rigor, anticipation and risk awareness that I envisaged in 2003 I now call this future vision Enterprise Services Planning (ESP)
  44. 44. Copyright Lean Kanban Inc. @LKI_dja Enterprise Services Planning
  45. 45. Copyright Lean Kanban Inc. @LKI_dja You are part of a professional services business! An ecosystem of professionals providing interdependent services, often with complex dependencies. Professional Service organizations build intangible goods
  46. 46. Copyright Lean Kanban Inc. @LKI_dja The challenge of professional services businesses A constantly changing external environment has a ripple effect across your entire business ecosystem Priorities change and required capability & service levels rise in response to competition, disruptive market innovation & changes in customer tastes
  47. 47. Copyright Lean Kanban Inc. @LKI_dja What should we start next? Will it be delivered when we need it? Do we have capacity to do everything we need to do?
  48. 48. Copyright Lean Kanban Inc. @LKI_dja How will dependencies affect our ability to deliver? How many activities should we have running in parallel? If we delay starting something, will the capacity be available when we need it?
  49. 49. Copyright Lean Kanban Inc. @LKI_dja Demand Observed Capability Demand Demand Observed Capability Observed Capability ESP – Anticipating Demand, Allocating Capacity Looking downstream, you want the system to help you anticipate and manage dependencies
  50. 50. Copyright Lean Kanban Inc. @LKI_dja ESP – Anticipating Demand, Allocating Capacity Demand Observed Capability Demand Demand Observed Capability Observed Capability Looking upstream, you want the system to help you anticipate and manage demand
  51. 51. Copyright Lean Kanban Inc. @LKI_dja Demand Observed Capability Demand Demand Observed Capability Observed Capability ESP – Anticipating Demand, Allocating Capacity Combine the two, and across the organization you smooth flow end- to-end and help keep demand in balance with overall system capability
  52. 52. Copyright Lean Kanban Inc. @LKI_dja Enterprise Services Planning *Kanban is a way to organize and manage work. It improves service delivery speed & predictability through a combination of limiting work-in-progress & deferred commitment It uses visual management and Lean techniques such as limiting the amount of work in progress, and probabilistic forecasting. Kanban helps to balance demand with capability. Balancing demand and capability = improved flow. Improved flow = Improved predictability. Enterprise Services Planning (ESP) is an enterprise-wide management solution that leverages Kanban* to improve each service within your business.
  53. 53. Copyright Lean Kanban Inc. @LKI_dja Enterprise Services Planning Manufacturing 1947 – Kanban 1964 & 1975 – MRP Professional Services 2004 – Kanban 2015 – ESP ESP is “MRP for professional services”. ESP is for managing capacity & scheduling intangible work. ESP uses algorithms enabled with data from analysis of the work requests, our existing capability, and knowledge of customer expectations, to make recommendations
  54. 54. Copyright Lean Kanban Inc. @LKI_dja Enterprise Services Planning Planning involves… Scheduling Sequencing Selecting Commitment Anticipating & Managing Dependencies Risk Management Understanding what is essential based on…  Business strategy  Fitness for purpose
  55. 55. Copyright Lean Kanban Inc. @LKI_dja Enterprise Services Planning The Right Things At The Right Time Done The Right Way With Appropriate Risk Exposure
  56. 56. Copyright Lean Kanban Inc. @LKI_dja ESP & Kanban is a complete management system Managerial Motivator • Senior-level • Lead the business (strategy and positioning) • Confidence they can deliver on strategic goals • Legacy (long term survival) • Mid-level • Up-managing – answer the hard questions with confidence • Down-managing – make difficult decisions with confidence • Line-level & Individual Contributors • Relief from abusive environment • Overburdened • Quality suffers • Low job satisfaction Kanban Agenda • Survivability • Service-orientation (and customer focus) • Sustainability
  57. 57. Copyright Lean Kanban Inc. @LKI_dja Thank you!
  58. 58. Copyright Lean Kanban Inc. @LKI_dja About David Anderson is an innovator in management of 21st Century businesses that employ creative people who “think for a living” . He leads a training, consulting, publishing and event planning business dedicated to developing, promoting and implementing new management thinking & methods… He has 30+ years experience in the high technology industry starting with computer games in the early 1980’s. He has led software organizations delivering superior productivity and quality using innovative methods at large companies such as Sprint and Motorola. David defined Enterprise Services Planning and originated Kanban Method an adaptive approach to improved service delivery. His latest book, published in June 2012, is, Lessons in Agile Management – On the Road to Kanban. David is Chairman & CEO of Lean Kanban Inc., a business operating globally, dedicated to providing quality training & events to bring Kanban and Enterprise Services Planning to businesses who employ those who must “think for a living.”
  59. 59. Copyright Lean Kanban Inc. @LKI_dja