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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
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 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!
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
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%
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
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
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!
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
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
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?
Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja
Proto-Kanban
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
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
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
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”
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
∞ ∞
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
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
Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja
Are we there yet?
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
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?
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?
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?
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?
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”
Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja
Pull
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”
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
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
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
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!
Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja
Irrefutable Demand
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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!”
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)
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
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
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
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
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!
Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja
Shaping Demand : Triage
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
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
Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja
Get a Demo of Swift ESP!
Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja
SwiftKanban ESP implements Risk Profiling &
Demand Shaping to Manage Large “Backlogs”
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
Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja
Organizational Maturity
Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja
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
Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja
Risk Hedging
Risk Management
Benefits of improving maturity
Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja
What’s Preventing Getting to “pull”?
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
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
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
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
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!
Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja
Blizzard Sport & Why Risk Assessment Matters
Blizzard
Factory
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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
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
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
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
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
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
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
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
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!
Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja
Thank you!
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.”
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
Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja
Appendices
Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja
Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja

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Getting to pull at enterprise scale

  • 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. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Kanban is Ubiquitous!
  • 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. 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. 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. 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. 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. 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. 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. 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. 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. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Proto-Kanban
  • 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. 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. 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. 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. 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. 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. 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. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Are we there yet?
  • 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. 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. 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. 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. 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. 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. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Pull
  • 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. 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. 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. 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. 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. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Irrefutable Demand
  • 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. 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. 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. 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. 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. 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. 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. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Shaping Demand : Triage
  • 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. 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. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Get a Demo of Swift ESP!
  • 45. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja SwiftKanban ESP implements Risk Profiling & Demand Shaping to Manage Large “Backlogs”
  • 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. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Organizational Maturity
  • 48. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja
  • 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. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Risk Hedging Risk Management Benefits of improving maturity
  • 51. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja What’s Preventing Getting to “pull”?
  • 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. 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. 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. 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. 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. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Blizzard Sport & Why Risk Assessment Matters Blizzard Factory
  • 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. 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. 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. 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. 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. 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. 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. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Kanban is Ubiquitous!
  • 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. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Thank you!
  • 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. 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. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Appendices
  • 71. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja
  • 72. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja

Editor's Notes

  1. Team Kanban boards tend to be locally focused and aimed at helping team members visualize and focus on their own work. There may be no real notion of a customer request and no concept of a service delivery workflow The main focus of proto-Kanban is reduction of multitasking, also known as, “relief from overburdening”. Overburdening is know as “muri” in Lean or Toyota Production System. Relief from overburdening refers to individuals and not the whole system which can still be overburdened, slow and unpredictable.
  2. An example of a per-person WIP limit using avatar magnets. The queues with no limit mean that the cycle time can’t be measured across the workflow.
  3. As an understanding of a service delivery workflow emerges, it can make sense to aggregate several team kanban boards into a single board. However, the queues in-between each team remain unlimited. The entire workflow isn’t a pull system but individual teams can focus on specific items of work and benefit from relief from over-burdening.
  4. Aggregated Team Kanban is also know as “infinite done queues” for the obvious reason that the queues between each team activity are unbounded
  5. An aggregated team kanban workflow provides relief from overburdening and is likely to benefit quality but the system can still be overburdened, slow and unpredictable. Customer service may not improve much and customers may still be dissatisfied with their expectations unmet.
  6. There is nothing wrong with a proto-Kanban implementation! In fact, there are many benefits. The choice to build a proto-kanban system is based on the readiness of the participants.
  7. There is nothing wrong with a proto-Kanban implementation! In fact, there are many benefits. The choice to build a proto-kanban system is based on the readiness of the participants.
  8. You will know that you have moved beyond visual management and into Kanban by considering these questions. Given that the Kanban Method is a management method, delivered with management training, we would expect managers to have changed their behavior. We would expect them to focus on managing service requests for customers, on managing work, as it flows through a defined and visualized workflow, while they allow the workers to self-organize around the work. Managers should have given up their “dating agent” behavior where they try to match workers to tasks, and moved on to focusing on customer value. Has the customer interface changed is an indication that replenishment meetings are now happening Has the customer contract changed is evidence that we have a customer focused, service delivery approach quite possibly with a service level agreement (SLA) Has the service delivery business model changed implies that we are offering classes of service, shaping demand with a capacity allocation, and managing risk, possibly with a demand shaping threshold or bifurcation policies that shape demand and workflow routing according to risk. [Question 4 relates to material covered in the ESP curriculum]
  9. Slides in the section are for discussion of review material, as needed. Physical white circle magnets can represent capacity for WIP, rather than putting numbers at the top of each column or displaying physical slots for capacity. There are various ways to communicate information on a kanban board: colors, shapes, locations, etc
  10. Slides in the section are for discussion of review material, as needed. Physical tokens can also be used to communicate other information. There are various ways to communicate information on a kanban board: colors, shapes, locations, etc
  11. The assumption on this design is a single work item type. There are no rows and no WIP limits or capacity allocations for such rows. Therefore we have a single service to deliver a single type of work, however 4 classes of service are offered.
  12. Unlike the previous example, this board visualizes 3 work item types and hence 3 services are being offered. (example, “We fix production defects” service) The colors are likely to represent classes of service. Each row has a WIP limit indicating a capacity allocation across different service types. This will have been implemented to shape demand and hedge risk across the different work item types.
  13. In this example, a risk threshold is established. Only the higher risk items are accepted. Low risk items are rejected. Items which straddle the threshold are discussed and accepted based on free capacity.
  14. In this example, a risk threshold is established. Only the higher risk items are accepted. Low risk items are rejected. Items which straddle the threshold are discussed and accepted based on free capacity.