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Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja
True Business Agility
Getting to “pull” at enterpris...
Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja
Kanban is Ubiquitous!
Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja
Acceptance
11 years later no one is arguing that Kan...
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China
3 Chinese companies have “very large scale” Ka...
Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja
Return on Investment
Implementations at Huawei, Ping...
Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja
Don’t miss it!
Adam Wu at 17h20
“Ping An China Insur...
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No Harm!
While there have been failed Kanban
impleme...
Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja
But wait, it’s not Kanban!
The problem with this ubi...
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Kanban at Microsoft 2005
Virtual Kanban “pull” syste...
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Kanban at Hewlett-Packard 2006
Virtual Kanban “pull”...
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Proto-Kanban represents minor league victory
What is...
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Proto-Kanban
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Team Kanban
Backlog
F
E
G
D
Next Done
3
In-progress
...
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O
P
R
N
M
L
J
Per Person WIP Limit
Done
F
E
I
Pendin...
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Aggregated Team Kanban
Done
Pool
of
Ideas
F
E
I
Next...
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Aggregated Team Kanban
Done
Pool
of
Ideas
F
E
I
Next...
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Aggregated Team Kanban
Done
Pool
of
Ideas
F
E
I
Next...
Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja
Benefits of proto-Kanban implementations
Benefits
Tr...
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Benefits of proto-Kanban implementations
Benefits
10...
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Are we there yet?
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Kanban Litmus Test
1. Have managers changed their be...
Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja
Have Managers Changed their Behavior?
Are managers m...
Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja
Has the Customer Interface Changed?
Are you still at...
Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja
Has the Customer Contract Changed?
Are you still mak...
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Has the Service Delivery Business Model Changed?
Are...
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Triage
“pull” creates a pressure to triage:
 What s...
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Pull
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F
F
O
M
N
K
J
I
Using movable tokens as kanban is mo...
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F
F
O
M
N
K
J
I
Using movable tokens as kanban is mo...
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Single Service, Multiple Classes of Service
Allocate...
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3 Services Aggregated Together
5 4 4 5 2 = 20 total
...
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Change
Requests
3
1
Prod.
Defects
Maintenance
Usabil...
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Irrefutable Demand
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Don’t miss it!
Andy Carmichael at 15h20
“IRREFUTABLE...
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Pressure for “push” is partially internal
Why does i...
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What causes irrefutable demand?
“we’ve already commi...
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Getting to “pull”
Pull requires that demand is refut...
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Is all irrefutable demand as irrefutable as it seems...
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You have more management options than you think!
Ens...
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Strategies for irrefutable demand
Deferred commitmen...
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Shaping Demand : Triage
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Demand Shaping Threshold
Dimension 1
Dimension 2
Dim...
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Demand Shaping Threshold
Dimension 1
Dimension 2
Dim...
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Get a Demo of Swift ESP!
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SwiftKanban ESP implements Risk Profiling &
Demand S...
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Don’t miss it!
Maria Torrijos Lopez at 12h30
“DEALIN...
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Organizational Maturity
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Personal Kanban
Aggregated
Personal Kanban
Team Kanb...
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Risk Hedging
Risk Management
Benefits of improving m...
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What’s Preventing Getting to “pull”?
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6 Forces Preventing Getting to “Pull”
1. Not startin...
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1. Not Starting with a Customer Facing Service
Team ...
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Affecting a Paradigm Shift to “pull”
Kanban coaching...
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2. We are Just Order Takers
Organizational structure...
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3. Lack of Understanding of Business Risks
Without a...
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Blizzard Sport & Why Risk Assessment Matters
Blizzar...
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Blizzard Sport - Reducing Risk Actual Situation
Prod...
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Blizzard Sport – Kanban etc speeds up production
Pro...
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Blizzard Sport – Risk assessment & sequencing
produc...
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4. A Lack of Mathematical Literacy
The mathematics o...
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5. Lack of Skill in Negotiation
Geeks on the deliver...
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6. Lack of Confidence Planning & Scheduling
Kanban h...
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Reminder - Don’t miss it!
Maria Torrijos Lopez at 12...
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Kanban is Ubiquitous!
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Declare Victory & Fight On!
11 years later no one is...
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Thank you!
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About
David Anderson is an innovator in
management o...
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Screenshots of SwiftKanban ESP risk assessment frame...
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Appendices
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Getting to pull at enterprise scale

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Kanban implementations have become ubiquitous around the world. Many are very large scale with over 5000 people using the technique. However, enterprise are struggling to implement end-to-end pull systems. Why? This talk looks at how to achieve true Lean workflows with deferred commitment and just-in-time replenishment in professional services enterprises

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Getting to pull at enterprise scale

  1. 1. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja True Business Agility Getting to “pull” at enterprise scale Presenter David J. Anderson Lean Kanban Central Europe Hamburg, Germany November 2016
  2. 2. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Kanban is Ubiquitous!
  3. 3. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Acceptance 11 years later no one is arguing that Kanban isn’t appropriate in professional services work Companies everywhere, large and small, are simply doing it! So, it’s time to declare victory! We’ve won the argument that Kanban is a good idea!
  4. 4. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja China 3 Chinese companies have “very large scale” Kanban implementations  Huawei – Telecoms & electronics – 5000+ people  Ping An – Insurance & banking – 5000+ people  CMB – Banking – 3000+ people Meanwhile in Europe…  Large scale has been seen at Ericsson, Skania, Siemens, Rolls-Royce, BBVA, Odigeo (eDreams, Opodo) and others
  5. 5. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Return on Investment Implementations at Huawei, Ping An & CMB have each cost around the equivalent of 3 full time employees salaries Huawei are seeing improvements in productivity in the range of 10-50% with an average of 25% across more than 10 product units Improvements at Huawei are the equivalent of 1250 engineers they didn’t need to hire Return on investment is 300->400:1 or >30,000%
  6. 6. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Don’t miss it! Adam Wu at 17h20 “Ping An China Insurance & Services” Case Study Kanban across 5000 people What did it cost? What has it meant for company performance, enterprise agility and robustness to disruptive fintech?  Particularly release frequency of mobile financial applications
  7. 7. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja No Harm! While there have been failed Kanban implementations, there are no stories of Kanban doing harm to organizations Unlike some Agile methods and other management fads such as holacracy, there are no stories of Kanban causing 20%-40% staff turnover or inflicting brutal and cruel change There has been tribal, emotional push back in organizations where Agile is a religion
  8. 8. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja But wait, it’s not Kanban! The problem with this ubiquitous and virtuous adoption of Kanban is that it isn’t really Kanban at all!
  9. 9. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Kanban at Microsoft 2005 Virtual Kanban “pull” system – No visual boards! 230% productivity improvement 91% reduction in average lead time On-time performance up from 0% to 98% Time frame – 15 months Cost – almost nothing, no coaching fees, no training, no consultants, 2 permanent team members added mid-transformation taking productivity from 150% improvement to 230% improvement
  10. 10. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Kanban at Hewlett-Packard 2006 Virtual Kanban “pull” system – no visual boards! 700% productivity improvement! Lead time on new generation of laser printer firmware dropped from 21 months to 3.5 months 4.5 day working week Timeframe – less than 1 year Cost – almost nothing – no coaches, no training, no consultants
  11. 11. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Proto-Kanban represents minor league victory What is being implemented at large scale all over the world is visualization and per person, or per team WIP limits Enterprises are struggling to implement end-to-end “pull” at any significant scale! WHY?
  12. 12. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Proto-Kanban
  13. 13. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Team Kanban Backlog F E G D Next Done 3 In-progress 3∞ ∞ GY PB DE Avatar for each team memberStill at a single team level but maturing to focus on managing work and less on managing workers
  14. 14. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja O P R N M L J Per Person WIP Limit Done F E I Pending G D GY PB DE MN AB Dev/Build/ Test/Deploy Dev Ready GY GY PB PB MN MN DE DE AB AB K Bench Specify ∞∞ ∞ Unbounded Queue Delayed WIP At this level, we are focused on managing work and enabling people to self-organize around it but we aren’t limiting WIP in the system as a whole. Hence, service delivery will not be predictable Moving beyond a single team to a service delivery workflow
  15. 15. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Aggregated Team Kanban Done Pool of Ideas F E I Next Deploy- ment Ready G D GY PB DE MN 5 ∞ P1 AB Ongoing Development Testing Done Ongoing Done 3 3 Team 1 Kanban ∞ ∞ Team 2 Kanban
  16. 16. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Aggregated Team Kanban Done Pool of Ideas F E I Next Deploy- ment Ready G D GY PB DE MN 5 ∞ P1 AB Ongoing Development Testing Done Ongoing Done 3 3∞ ∞ Also known as “infinite done queues”
  17. 17. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Aggregated Team Kanban Done Pool of Ideas F E I Next Deploy- ment Ready G D GY PB DE MN 5 ∞ P1 AB Ongoing Development Testing Done Ongoing Done 3 3 Infinite limits on Done columns means that there really isn’t a kanban pull system present. This style of proto-kanban controls multi-tasking but doesn’t limit workflow WIP ∞ ∞
  18. 18. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Benefits of proto-Kanban implementations Benefits Transparency Relief from overburdening Reduced multitasking Improved quality People engaged emotionally More collaboration Greater empathy
  19. 19. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Benefits of proto-Kanban implementations Benefits 10-50% greater productivity Up to 50% reduction in lead times Average 25% headcount saving Return on investment 300->400 : 1
  20. 20. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Are we there yet?
  21. 21. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja 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 it is unlikely you’ve switched to Kanban yet! You may have the intent to adopt it through a series of evolutionary steps initially adopting proto-Kanban
  22. 22. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Have Managers Changed their Behavior? Are managers managing people, assigning work, focused on utilization levels, building brittle, deterministic plans, making early customer commitments and often making promises without regard to capability or respect for risk & uncertainty? Or have they switched to managing work, focusing on flow, forecasting probabilistically, deferring commitment, making promises based on probability, embracing risk and uncertainty, and focusing on due date performance against SLAs?
  23. 23. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Has the Customer Interface Changed? Are you still attending the same old planning meetings on the same old schedule? Or, have you adopted kanban system replenishment meetings? Are customers present at replenishment meetings? Does commitment happen at the replenishment meeting when an item is “pulled” onto the board? Has the frequency of the meeting changed? Is it much more frequent than before?
  24. 24. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Has the Customer Contract Changed? Are you still making commitments the same way? Has the promise you make and the way you make it changed? Are you still making deterministic plans, promising precise scope and schedule, and hedging with contingency by “overestimating” size, complexity, or duration of work? Or are you working probabilistically, studying historical data, aggregating risk and using service level agreements as a new style of contract with the customer?
  25. 25. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Has the Service Delivery Business Model Changed? Are you carrying all the risk? Fixed delivery date, fixed scope, fixed cost? Precise promises based on deterministic planning? Is all work treated homogenously from a risk perspective? Do you process all requests the same way? Or, have you introduced classes of service based on risk profiling and assessment of cost of delay? Do you offer multiple classes of service by allocating capacity and hedging risk? Is class of service tied to risk and urgency? Do you have explicit policy assigning class of service to different risk profiles?
  26. 26. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Triage “pull” creates a pressure to triage:  What should we do immediately?  What can wait until later? • And if so, when? (a scheduling problem)  What shouldn’t we do at all? (discard) If you haven’t developed a strong triage discipline then you almost certainly haven’t achieved end-to- end “pull”
  27. 27. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Pull
  28. 28. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja F F O M N K J I Using movable tokens as kanban is more flexible Ideas D I Dev Ready G Development Testing Test Ready F B C UAT Release Ready In-progress Legend Done Blocked - issue Blocked - defect Override on kanban limit introduces additional “blocked – issue” kanban People working on blocked item “A” have been redirected to work on item “I”
  29. 29. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja F F O M N K J I Using movable tokens as kanban is more flexible Ideas D I Dev Ready G Development Testing Test Ready F B C UAT Release Ready In-progress Legend Done Blocked - issue Blocked - defect Using physical slots in the previous example has been shown to create inertia to modification & improvement Using movable tokens allows for WIP limits to be easily modified and provides a natural signal token mechanism
  30. 30. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Single Service, Multiple Classes of Service Allocate capacity with kanban limit per color 5 4 4 5 2 = 20 total Allocation 10 = 50% ... +1 = +5% 4 = 20% 6 = 30% Input Buffer In Prog DoneDoneIn Prog DevelopmentAnalysis Build Ready Test Release Ready
  31. 31. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja 3 Services Aggregated Together 5 4 4 5 2 = 20 total Change Req 12 Maintenance 2 Production Defect 6 Allocation Total = 20 Input Buffer In Prog Done Build Ready Test Release ReadyDoneIn Prog DevelopmentAnalysis Released
  32. 32. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Change Requests 3 1 Prod. Defects Maintenance Usability Improvement 2 1 Improving Liquidity through Labor Pool Flexibility Teams F E Engin- eering Ready G D GY PB DE MN 2 P1 AB Ongoing Analysis Testing Done Verification Acceptance 3 3 Ongoing Development Done 3 Joe Peter Steven Joann David Rhonda Brian Ashok Team Lead Junior who will be rotated through all 4 teams Generalist or T-shaped people who can move flexibly across rows on the board to keep work flowing It’s typical to see splits of fixed team workers versus flexible system workers of between 40-60% Roughly half the labor pool are flexible workers Promotions from junior team member to flexible worker with an avatar clearly visualize why a pay rise is justified. Flexible workers help manage liquidity risk better!
  33. 33. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Irrefutable Demand
  34. 34. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Don’t miss it! Andy Carmichael at 15h20 “IRREFUTABLE DEMAND: When you can’t say “NO””  UNDERSTAND YOUR OPTIONS - YOU MAY HAVE MORE THAN YOU THINK!”
  35. 35. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Pressure for “push” is partially internal Why does it feel like “push” is inevitable and unavoidable? Because so much demand is actually internally spawned from existing commitments! So many Kanban implementations are proto-Kanban semi- push systems because they service internally generated demand which is irrefutable If you are to get to “pull”, you generally have to start with externally facing customer services Or insert a strong “definition of ready” at the customer facing point, which states that we will only commit to externally demand when internal dependency capacity is confirmed (this has a tendency to lead to undesirable behaviors – big team/org unit sizes, big batch sizes)
  36. 36. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja What causes irrefutable demand? “we’ve already committed to it”  Potentially bad behavior on the part of executives or sales people  “the boss wants it” It’s a legal or regulatory requirement It’s table stakes for this customer or market niche It’s mission critical  High severity production defects
  37. 37. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Getting to “pull” Pull requires that demand is refutable or at least delayable Demand must be balanced against capability to supply Demand can be shaped Kanban systems have a notion of capacity and hence a strong definition of ready may include whether capacity has been booked in advance using a dynamic reservation system
  38. 38. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Is all irrefutable demand as irrefutable as it seems? Can we use policy to shape demand?  For example, sacrifice fidelity or quality on items of a given risk category or risk profile to bifurcate demand to a shared sevice? Can we smooth demand through better understanding of when to schedule it or its cost of delay?  Schedule highest cost of delay items at optimal start time, and offset others to less optimal start times while recognizing their comparative cost of delay is lower?  i.e. anticipate overburdening and trade off lost opportunity for smoother flow, rather than…  reacting to overburdening by delaying items, lengthening lead times, increasing the tail on the distribution and negatively affecting predictability
  39. 39. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja You have more management options than you think! Ensure…  Use the feedback loops of risk review, operations review & strategy review to adjust demand to capability  Use a holistic approach to managing the network of interdependent services • Operations review • Dynamic reservation systems  Decision making is informed & effective • Risk profiling • Demand shaping thresholds and other policies are explicit  Management of uncommitted options is returned to the customer
  40. 40. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Strategies for irrefutable demand Deferred commitment negotiated and agreed with customer Classes of Service  maximize flow of value  build flexibility to handle variation Operations Review cadence to balance demand Staff liquidity  allocate high skilled, multi-skilled staff before less flexible staff Examine the constraint/bottleneck in multiple workflows  Use policies to subordinate other parts of the system to the bottleneck (shape/bifurcate demand)  elevate the constraint/bottleneck Limit capacity / utilisation (e.g. to 50% for planned work) Reduce work in progress Manage flow!
  41. 41. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Shaping Demand : Triage
  42. 42. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Demand Shaping Threshold Dimension 1 Dimension 2 Dimension 3 Dimension 5 Dimension 4 Definitely Do This Demand shaping threshold Talk about this one Definitely Don’t This Each risk dimension represents a taxonomy of categories describing a known risk. Policy describes the category in each dimension at or above which we wish to accept demand
  43. 43. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Demand Shaping Threshold Dimension 1 Dimension 2 Dimension 3 Dimension 5 Dimension 4 Don’t Do This Exclusion Zone Talk about this one Definitely Do This Thresholds can be used to as upper or lower bounds Exclusion zone can be to the outside or inside of the graph
  44. 44. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Get a Demo of Swift ESP!
  45. 45. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja SwiftKanban ESP implements Risk Profiling & Demand Shaping to Manage Large “Backlogs”
  46. 46. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Don’t miss it! Maria Torrijos Lopez at 12h30 “DEALING WITH A MASSIVE BACKLOG AT THE WORLD'S NO.2 ONLINE TRAVEL COMPANY”  Large scale Enterprise Services Planning implementation  Risk profiling in action
  47. 47. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Organizational Maturity
  48. 48. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja
  49. 49. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Personal Kanban Aggregated Personal Kanban Team Kanban Emergent/Undefined Workflow Per Person WIP Limit CONWIP Physical space kanban Physical token kanban Virtual Kanban Classes of service Capacity allocation Liquidity optimization Aggregated teams Patterns of Kanban Board Designs
  50. 50. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Risk Hedging Risk Management Benefits of improving maturity
  51. 51. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja What’s Preventing Getting to “pull”?
  52. 52. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja 6 Forces Preventing Getting to “Pull” 1. Not starting with a customer facing service 2. “We are just order takers” 3. Lack of understanding of business risks 4. Lack of mathematical literacy 5. Lack of skills in negotiation or forming business agreements 6. Lack of confidence planning & scheduling at scale
  53. 53. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja 1. Not Starting with a Customer Facing Service Team Kanban isn’t enough unless the team offers a bespoke service that is directly customer facing Initiatives start where there is enthusiasm and don’t follow the coaching guidance on “where to start in large corporations” Internal services suffer from irrefutable demand but lack the guidance or political influence to cope with irrefutable demand
  54. 54. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Affecting a Paradigm Shift to “pull” Kanban coaching guidance on “where to start” within large organizations… 1. Must be Customer Facing 2. Must Not be Mission Critical 3. Must be Highly visible 4. Staff are enthusiastic  indeed may volunteer to pilot the changes
  55. 55. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja 2. We are Just Order Takers Organizational structure or corporate governance that puts product & service delivery functions in a silos without influence or stewardship over what is selected, when it is scheduled, and how it is sequenced, is destructive and economically damaging Build trust with transparency, visibility, excellence in delivery, metrics Encourage greater collaboration – replenishment meetings with both sides present - requesters and delivery
  56. 56. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja 3. Lack of Understanding of Business Risks Without a framework for analyzing risks and scrutinizing the analysis, we rely on “the hero product manager”. It’s low maturity upstream! A shared language for discussing business, technical and delivery risks, fosters collaboration and consensus Elevate the product owner from “the single ringable neck” to the owner of the risk assessment framework Enterprise Services Planning features a rich risk assessment framework which is now implemented in SwiftKanban ESP edition – get a demo!
  57. 57. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Blizzard Sport & Why Risk Assessment Matters Blizzard Factory
  58. 58. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Blizzard Sport - Reducing Risk Actual Situation Production Volume 100% Make-to-forecast World Sales Volume Reporting to HQ I II III IV V VI VII VIII IX X XI 0% Risk Launch Volume 100% of total –> 90% risk = 90% risk Cycle Time
  59. 59. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Blizzard Sport – Kanban etc speeds up production Production Volume 100% Make-to-forecast World Sales Volume Reporting to HQ I II III IV V VI VII VIII IX X XI 0% Risk Adapt production to make-to- order 90% of total –> 70% risk = 63% risk Launch Volume
  60. 60. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Blizzard Sport – Risk assessment & sequencing produce a larger payoff in risk reduction Production Volume 100% Make-to-forecast USA / CAN / JP Make-to-order World Sales Volume I II III IV V VI VII VIII IX X XI 0% Risk 30% of total –> 20% risk = 6% risk
  61. 61. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja 4. A Lack of Mathematical Literacy The mathematics of probability in lead time distributions and forecasting service delivery is not difficult, but it isn’t taught in schools or universities except to statisticians! Knowing when and where Gaussian distributions, Central Limit Theorem & functions of averages such as Little’s Law apply and when they don’t is vitally important You can’t have rational conversation about when to start things, or commitments on when or how much will be delivered without basically mathematical literacy on probability distribution functions
  62. 62. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja 5. Lack of Skill in Negotiation Geeks on the delivery side generally haven’t been to business school. Business owners & product managers on the requesting side have been to business school and received formal training in the art of negotiation Geeks tend to lose out in negotiations Business people refuse to play the transparent, collaborative game and emotionally resist real data & evidence How to deal with this challenge is a skill we teach in Kanban Coaching Professional classes  Create “skin in the game” with collaborative workshops – STATIK  Or, design kanban systems with layers of classes of service and capacity allocation that can be revealed in response to customer objections
  63. 63. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja 6. Lack of Confidence Planning & Scheduling Kanban has lacked a comprehensive dependency management and scheduling system This is now available in Enterprise Services Planning Case studies with scheduling & planning boards appeared as early as 2009 (Posit Science), others include…  Sami Honkonen “Scheduling Work in Kanban” 2011  Visotech, Klaus Leopold & Lean Kanban University Press 2014  Odigeo, Maria Torrijos Lopez, LKCE Hamburg 2016
  64. 64. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Reminder - Don’t miss it! Maria Torrijos Lopez at 12h30 “DEALING WITH A MASSIVE BACKLOG AT THE WORLD'S NO.2 ONLINE TRAVEL COMPANY”  Large scale Enterprise Services Planning implementation  Risk profiling in action  Dynamic reservation system for scheduling demand
  65. 65. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Kanban is Ubiquitous!
  66. 66. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Declare Victory & Fight On! 11 years later no one is arguing that Kanban isn’t appropriate in professional services work Companies everywhere, large and small, are simply doing it! Kanban is broadly accepted a good thing! Now it is time to actually start doing Kanban properly!
  67. 67. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Thank you!
  68. 68. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @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 the 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 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.”
  69. 69. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Screenshots of SwiftKanban ESP risk assessment framework courtesy of Digite Blizzard Sport inventory at risk assessment slides courtesy of Erix-Jan Kaak and Tecnica Group Acknowledgements
  70. 70. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Appendices
  71. 71. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja
  72. 72. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja

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