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dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Presenter
David J. Anderson
CEO
Agile Business C...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
http://lkuk.leankanban.com
America Square Confer...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Understanding
“fitness for purpose”
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
What makes a pizza delivery service
“fit for pur...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Meet Neeta - a project manager
• Neeta’s team ar...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Neeta is also a working mom!
• Neeta gets home l...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Lesson 1
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
To be “fit for purpose” there is a
product compo...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Modern creative & knowledge
worker businesses of...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Lesson 2
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Neeta has 2 identities –
Mother and Project Mana...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Defining Fitness Criteria
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Market Adoption Lifecycle Segmentation
Enthusias...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Customer Storytelling & Clustering
Tell stories ...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
You can’t just ask!
Neeta, how fast would
you li...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Who knows your customers?
• Front line staff
• T...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Pizza boy knows Neeta’s Story!
Staff who meet cu...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
GT car manufacturer story
A well known manufactu...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Retarding customer service until
customers compl...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Look for clusters or
patterns of demand, or
simi...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Telecom Equipment Example
A platform maintenance...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Different lanes, different risks
Done
F
E
I
Engi...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Lesson 3
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
To have confidence you are
offering a service th...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Service Delivery Kanban
improves business agility
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Test
Ready
F
F
FF
F
F F
Commitment Frequency
E
I...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Test
Ready
F
F
FF
F
F F
Defining Kanban System L...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Test
Ready
F
F
FF
F
F F
Delivery Frequency
E
I
G...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Lesson 4
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Kanban systems decouple
planning, prioritization...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Adapting to deliver better service
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Each service delivery workflow can have its
own ...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Dependencies between systems create
an ecosystem...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Feedback is needed at 3 levels
Operations
Review...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Standup Meeting
Daily
Disciplined conduct and
ac...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Service Delivery Review
Weekly
A focused discuss...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Buffer dependencies, agree SLAs
5 4 43 2 2
...In...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Operations Review
Monthly
Disciplined review of
...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Risks, fitness criteria & classes of service
sho...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Organizational Improvements Emerge
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Lesson 5
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Adaptation and evolution requires
feedback loops...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Sensing Changes in Market
Conditions
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
We need a different set of
thresholds for our fi...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Our pizza delivery service can be
“fitter for pu...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
“Fitness For Purpose” Review
Regular recurring m...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Integration with Net Promoter Score
• NPS should...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Lesson 6
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
We need the ability to “sense” or
our ability to...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Conclusions
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
1. “Fitness for Purpose”
has both a product
comp...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
4. Kanban decouples
planning, lead time &
delive...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
http://lkuk.leankanban.com
America Square Confer...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Thank you!
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
David Anderson is an innovator in
the management...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
Acknowledgements
Customer storytelling and segme...
dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
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"Fitness for Purpose" - Resilience & Agility in Modern Business

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High technology businesses tend to focus on and reward innovation but to be “fit for purpose” in the eyes of customers, product and service innovation must be coupled with acceptable service delivery. Business resilience relies on a constant ability to sense shifts in customer demands and expectations, and to respond with new products, service and levels of service delivery. Evolutionary biology provides us with a model for adapting to changing conditions and evaluating fitness. This talk will look at how the Kanban Method enables evolutionary adaptability and how to define fitness criteria metrics to drive effective business performance.

Published in: Leadership & Management

"Fitness for Purpose" - Resilience & Agility in Modern Business

  1. 1. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Presenter David J. Anderson CEO Agile Business Conference London October 2014 Release 1.0 Fit For Purpose Resilience & Agility in Modern Business
  2. 2. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. http://lkuk.leankanban.com America Square Conference Centre London Register now!
  3. 3. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Understanding “fitness for purpose”
  4. 4. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. What makes a pizza delivery 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)
  5. 5. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Meet Neeta - a project manager • Neeta’s team are working late (again) • Neeta needs to feed them with pizza • What attributes do her team care about in a pizza delivery service? • Delivery time = approximately 1 hour • Non-functional quality = tasty & hot • Functional quality (order accuracy) = doesn’t matter if small mistakes are made, geeks will eat any flavor of pizza • Predictability = +/- 30 minutes is acceptable • Safety = so long as health & safety in food preparation is good, it’s fine
  6. 6. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Neeta is also a working mom! • Neeta gets home late. Her kids are really hungry and even though she shouldn’t she decides to order pizza for them • What makes a pizza delivery service acceptable to her kids age 4, 6, 9 & 11 years? • Delivery time = 20 minutes • Non-functional quality = doesn’t matter too much, it’s pizza!!! • Functional quality (order accuracy) = it must be cheese pizza! No other flavor is acceptable! (even if you take the pepperoni off) • Predictability = +/- 5 minutes maximum!!! • Safety = only mommy worries about that stuff!
  7. 7. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Lesson 1
  8. 8. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. To be “fit for purpose” there is a product component & a service delivery component We need to offer a selection of different recipes which are tasty & popular. However, we must also deliver with speed & predictability
  9. 9. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Modern creative & knowledge worker businesses often obsess with product definition & strategy Operational excellence and service delivery excellence are often overlooked or treated as inferior management skills
  10. 10. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Lesson 2
  11. 11. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Neeta has 2 identities – Mother and Project Manager Each of Neeta’s identities represents a different market segment for the pizza delivery service Traditional demographic & income group segmentation does not accurately capture the context to understand “fit for purpose” Nor, for that matter, do personas. As Neeta represents two segments not just one persona
  12. 12. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Defining Fitness Criteria
  13. 13. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Market Adoption Lifecycle Segmentation Enthusiasts Early Adopters Early Majority Late Majority Laggards Rate Of Market Adoption time Moore’s Chasm Little Chasm Hip Cool Buggy Community development Niche Market Features Good func quality Adequate non-func quality Permission Giving Early adopter Exceptional func and non- func quality Cost Effective Broad Features Exceptional func and non- func quality Low Cost Easy Access Forced adoption Viewed as taxation Fit for purpose Fit for purposeChange of time
  14. 14. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Customer Storytelling & Clustering Tell stories about real customers, their motivation, what they buy and why. Cluster similar stories Give each cluster a “nickname” e.g. • “All ins” • “Aspirationals” • “Bet hedgers” • “Boy scouts”
  15. 15. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. You can’t just ask! Neeta, how fast would you like your pizza delivered? How predictable do you need us to be with our delivery estimate? Customers will tend to tell you they need better service and more features than they really need! Would you pay more for the things you say you need and want? No, probably not! Believe what customers actually do, do not believe what they say they’ll do! Actually behavior will vary from declared intent!
  16. 16. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Who knows your customers? • Front line staff • Those who take and those who deliver orders • Those who provide “customer care” • Often the lowest paid staff in a business • Often the highest turnover, shortest tenured positions • And yet, they have the vital information that enables the business to survive, thrive and compete
  17. 17. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Pizza boy knows Neeta’s Story! Staff who meet customers can be trained to learn what matters to them and why Create ways to capture customer stories or directly involve customer facing staff when defining customer segments fitness criteria
  18. 18. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. GT car manufacturer story A well known manufacturer of GT cars determined customers were prepared to wait 21 months to take delivery They learned this by letting delivery time slip to 27 months and receiving cancellations and customers switching to a rival manufacturer Determining fitness criteria thresholds by reducing service levels until customer complaints rise to dangerous levels isn’t a “safe to fail” approach! Damaging your brand, your reputation and your profitability is a strange way to discover how to be… “fit for purpose!”
  19. 19. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Retarding customer service until customers complain vehemently or take their business elsewhere could be damaging • Undermines brand • Damages reputation • Loss of market share • Loss of revenue Probing for threshold values by reducing service quality isn’t “safe to fail” Is it “safe to fail”? We need general guidance that allows us to probe for fitness criteria threshold values that is “safe to fail” If we can’t ask, and we can’t allow service to decline until complaints make the threshold evident, what can we do?
  20. 20. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Look for clusters or patterns of demand, or similar expectations, or emerging segments Probe with classes of service Create a class of service to respond to the believed new segment • Set service levels at or close to anticipated threshold levels Observe take up of class of service • Is it over-used? (or abused?) If so tighten qualification criteria • Is it under-used? Consider removing it Fixed delivery date class of service emerged this way. Initially abused by marketing, eligibility criteria were tightened up.
  21. 21. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Telecom Equipment Example A platform maintenance department at a telecom equipment manufacturer receives demand only from internal application departments… … Each request is tagged with the originating telco operator for whom the request is being implemented. Each operator is given a lane on the kanban board Imagine 3 American telco operators with different strategic positions… • Verizon value quality most • Sprint value time-to-market • Voicestream/T-Mobile USA values low cost Now design and offer 3 classes of service… • High quality, tight “done” criteria for each step • Short lead time – pull priority, looser “done” criteria • Low cost – junior staff, lowest priority compared to other work
  22. 22. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Different lanes, different risks Done F E I Engin- eering Ready Deploy- ment Ready G D GY PB MN 10 ∞ P1 AB Ongoing Development Testing Done Verification Acceptance 10 10 Verizon 10 10 Sprint T-Mobile 10 DE DA Each lane represents a different source of demand but also different fitness criteria and threshold values Different classes of service and different pull criteria policies are defined for each lane providing service levels tuned to the “fitness for purpose” expectations of each customer
  23. 23. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Lesson 3
  24. 24. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. To have confidence you are offering a service that is “fit for purpose”, you must offer different classes of service To serve more than one market segment adequately, you must offer a selection of classes of service Classes of service should align to market segments and fitness criteria (or stakeholders needs)
  25. 25. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Service Delivery Kanban improves business agility
  26. 26. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Test Ready F F FF F F F Commitment Frequency E I G D Replenishment Discarded I Pull Ideas Dev Ready 5 Ongoing Development Testing Done 3 35 UAT Release Ready ∞ ∞ The frequency of system replenishment should reflect arrival rate of new information and the transaction & coordination costs of holding a meeting Frequent replenishment & commitment is more agile. On-demand commitment is most agile!
  27. 27. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Test Ready F F FF F F F Defining Kanban System Lead Time E I G D Pull System Lead Time Discarded I Ideas Dev Ready 5 Ongoing Development Testing Done 3 35 UAT Release Ready ∞ ∞ The clock starts ticking when we accept the customers order, not when it is placed! Until then customer orders are merely available options Kanban system lead time ends when the item reaches the first ∞ queue
  28. 28. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Test Ready F F FF F F F Delivery Frequency E I G D Delivery Discarded I Pull The frequency of delivery should reflect the transaction & coordination costs of deployment plus costs & tolerance of customer to take delivery Ideas Dev Ready 5 Ongoing Development Testing Done 3 35 UAT Release Ready ∞ ∞ Frequent delivery is more agile. On-demand delivery is most agile!
  29. 29. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Lesson 4
  30. 30. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Kanban systems decouple planning, prioritization & commitment from lead time and delivery scheduling Service delivery can be tuned to the dynamics of the business environment and evolve to be “fitter for purpose” Kanban doesn’t use time-boxed iterations, or conventional planning or prioritizaztion methods Instead commitment is deferred, selection is “just-in-time” and prioritization is dynamic & based on class of service
  31. 31. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Adapting to deliver better service
  32. 32. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Each service delivery workflow can have its own kanban system Demand Observed Capability Demand Demand Observed Capability Observed Capability
  33. 33. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Dependencies between systems create an ecosystem Demand Observed Capability Demand Demand Observed Capability Observed Capability Looking downstream, you want the system to help you anticipate and manage dependenciesLooking upstream, you want the system to help you anticipate and manage demand Combine the two, and across the organization you smooth flow end-to-end improving lead times and predictability
  34. 34. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Feedback is needed at 3 levels Operations Review Service Delivery Review Standup Meeting daily weekly monthly
  35. 35. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Standup Meeting Daily Disciplined conduct and acts of leadership lead to improvement opportunities Problem solving & improvement discussions are taken outside the meeting
  36. 36. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Service Delivery Review Weekly A focused discussion about system capability Usually in private (often 1-1) between a more senior manager and individual(s) responsible for the system operation Review against fitness criteria metrics, e.g. current capability versus lead time SLA with 60 day, 85% on-time target Discuss shortfalls against (customer) expectations Analyze for assignable/special cause versus chance/common cause Discuss options for risk mitigation & reduction or system design changes to improve observed capability against expectations
  37. 37. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Buffer dependencies, agree SLAs 5 4 43 2 2 ...Input Queue Dev Ready In Prog DoneDoneIn Prog DevelopmentAnalysis Build Ready Test Release Ready Waiting on External Group Late against SLA Dots denote clock ticking on SLA
  38. 38. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Operations Review Monthly Disciplined review of demand and capability for each kanban system Provides system of systems view and understanding System changes are suggested by attendees
  39. 39. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Risks, fitness criteria & classes of service should be explicit & transparent at all levels Operations Review Service Delivery Review Standup Meeting Lead time Quality Predictability Lead time Quality Predictability Lead time Quality Predictability daily weekly monthly
  40. 40. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Organizational Improvements Emerge
  41. 41. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Lesson 5
  42. 42. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Adaptation and evolution requires feedback loops to generate “mutations” (suggested changes) Fitness criteria metrics from the external environment should be used to evaluate fitness and guide evolutionary changes regardless of the level in the organization
  43. 43. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Sensing Changes in Market Conditions
  44. 44. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. We need a different set of thresholds for our fitness criteria for each market segment Our business needs the ability to “sense” changing customer tastes. As time goes by, the criteria & thresholds for a given market segment may change
  45. 45. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Our pizza delivery service can be “fitter for purpose” by offering different classes of service for each market segmentBut, do we have the capability to deliver on customer expectations?
  46. 46. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. “Fitness For Purpose” Review Regular recurring meeting with front-line staff • Perhaps performed at different organizational levels to roll-up information in larger scale organizations Review customer stories • Do they map to existing clusters? • Or, do we see emerging new clusters? Review Fitness criteria • Do we perceive customers of a given cluster/segment are happy and consider us “fit for purpose” • What services or product features or service delivery expectations have emerged or changed?
  47. 47. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Integration with Net Promoter Score • NPS should have a 2nd question “Why did you give this rating?” which has a micro-narrative answer • Micro-narratives can be clustered with SenseMaker software. Segments identified and fitness criteria suggested and tested Making sense of supplementary question responses by clustering & interpreting fitness criteria makes Net Promoter Score actionable!
  48. 48. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Lesson 6
  49. 49. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. We need the ability to “sense” or our ability to “respond” may no longer be appropriate Our sensing capability exists with our staff who interact directly with customers, we must involve them directly in our feedback loops & metrics definition
  50. 50. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Conclusions
  51. 51. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. 1. “Fitness for Purpose” has both a product component & a service delivery component 2. Market segmentation should be done based on unique fitness criteria metrics 3. To be confident you are “fit for purpose” you must offer a selection of classes of service aligned against fitness criteria metrics
  52. 52. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. 4. Kanban decouples planning, lead time & delivery activities increasing business agility 5. Adaptation requires feedback loops & these should be driven by evaluation against fitness criteria metrics 6. Without a capability to “sense” our ability to “respond” may be inappropriate. We need a “sensing” feedback loop involving customer facing personnel
  53. 53. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. http://lkuk.leankanban.com America Square Conference Centre London Register now!
  54. 54. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Thank you!
  55. 55. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.
  56. 56. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. David Anderson is an innovator in the 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 the Modern Management Framework 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 CEO of David J. Anderson & Associates Inc., a consulting and training firm operating globally offering management training solutions for 21st Century businesses where employees make performance defining decisions daily. About
  57. 57. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd. Acknowledgements Customer storytelling and segmentation by clustering stories will be recognized by some as a form of Dave Snowden’s Sense Making exercise. “Safe to fail” is an approach to experimental, evolutionary adaptation to a complex and changing environment, also advocated by Dave Snowden. Sense and Respond was inspired by Stephen Parry and his book of the same title.
  58. 58. dja@djaa.com @djaa_dja Copyright David J. Anderson & Associates (UK) Ltd.

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