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Introducing Enterprise Services Planning

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Enterprise Services Planning is the future of how modern 21st Century Business will be managed. It is also the future of Kanban. Kanban has been successfully adapted from its origins in manufacturing to become a highly effective method for management delivery of creative and knowledge work services such as graphic design, public relations, legal services, recruitment, IT services, software development, graphic editing, video editing, database administration and user experience design. Enterprise Services Planning introduces the management techniques necessary to enable an entire enterprise to leverage the benefits of Kanban.

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Introducing Enterprise Services Planning

  1. 1. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Improving agility one service at a time Anticipating demand across an ecosystem of shared services Enterprise Services Planning Scaling the benefits of Kanban Presenter David J. Anderson Swift Kanban Webinar 18 February 2015
  2. 2. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Lean Kanban North America 2015 conference • “Back to our roots” • Implementing Kanban • Looking to the future… • Enterprise Services Planning
  3. 3. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Kanban Coaching Professional Masterclass 5-day course with David J Anderson March 2-6, 2015 www.djaa.com/kcpm-031 Hilton Alexandria Mark Center Learn how to lead successful Kanban initiatives. Improve service delivery and achieve better customer satisfaction • Coaching for evolutionary change • Assuring fitness for purpose • Using the Kanban Method • Designing a service-oriented organization Learn useful improvement models and all of our consulting tools Forinternalcoaches, managers,andconsultants
  4. 4. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc.
  5. 5. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Microsoft XIT Sustaining Engineering Deferred commitment pull system coupled to probabilistic understanding of lead time • Improved productivity over 200% • Greatly improved predictability • Shortened lead times by ~90% Use of Kanban systems is minimally intrusive for engineers. Process methodologies didn’t change • PSP/TSP remained in use throughout
  6. 6. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Conclusion Kanban is good for service delivery
  7. 7. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Kanban Method Emerges Kanban systems aren’t enough when there is too much variability in the workflow and too much heterogeneity of work types and trouble matching worker skills & experience • Now known as a system liquidity problem • Visual boards are introduced • Kanban limits create stress & provoke process improvements • Multiple classes of service emerge
  8. 8. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Kanban Method Matures A combination of elements of Kanban such as system replenishment, classes of service, understanding cost of delay, transparency and metrics start to change entire company culture Operations review drives BU wide improvements and starts to influence other BUs within the firm
  9. 9. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Conclusion The Kanban Method is a management system for cultural change & improving organizational maturity
  10. 10. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. First Kanban Software Digital Whiteboard application developed by Darren Davis at Corbis runs on top Microsoft Team Foundation Server Workers run Digital Whiteboard on their desktop but continue to use physical boards in parallel
  11. 11. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Conclusion We need software to get good metrics easily and amplify the management value of Kanban
  12. 12. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Kanban on Big Projects $11 million budget project with up to 55 people, 16 month schedule, approximately 2400 user story scope 2-tiered kanban boards emerge to visualize parent- child dependencies in requirementsIntroduces hybrid of dedicated teams and floating project personnel using avatars • Specialists such as architects, UX • Generalists who can help any team
  13. 13. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Conclusion Kanban is useful on large projects to improve predictability. More guidance on prioritizing backlogs is required at large scale.
  14. 14. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. STATIK Recognizing the need to teach people how to get started with Kanban, training classes adopt the use of the STATIK exercises STATIK = the Systems Thinking Approach To Implementing Kanban • the method is presented at conference in 2012 • the acronym will not be introduced until 2013
  15. 15. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Kanban has 3 approaches to scaling Scaling out a service delivery workflow  Expand kanban systems both upstream and downstream Scaling out across a network  Scale out using the service-orientation concept to build a network of independently operating but interdependent services (with a kanban system for each service)  Control WIP on unbounded queues between services Scaling by scale-free understanding – apply the principles & general practices at each level  Personal / small team  Tasks completed in hours  Service delivery / workflow  Work items e.g. user stories completed in days  Portfolio  Projects, MVPs, MMFs completed in months
  16. 16. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. The Kanban Lens Learn to view what you do now as a set of services (that can be improved):  What to look for… • Creative work is service-oriented • Service delivery involves workflow • Workflow involves a series of knowledge discovery activities  What to do… • Map the knowledge discovery workflow • Pay attention to how & why work arrives • Track work flowing through the service
  17. 17. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Treat each service separately Demand Observed Capability Demand Demand Observed Capability Observed Capability Analyze demand & capability for each service independently Design a Kanban system for each service using the STATIK method. Scale out in a service-oriented fashion, one service at a time
  18. 18. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Anticipating Demand, Allocating Capacity 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 and help keep demand in balance with overall system capability
  19. 19. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Scale-free understanding Eliminating unbounded queues • Proto-kanban to full workflow kanban • Coupling interdependent network of kanban systems Andy Carmichael’s Smallest Possible Definition of Kanban See Flow, Start Here, With visible work & policies, validate improvements Core practices renamed “general practices” with specific practices at different scales • Personal/team Kanban • Service Delivery / Workflow Kanban • Portfolio Kanban
  20. 20. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. • 2 Days of Learning Sessions • Choose Your ½ Day Workshops • Risk Profiling – David J Anderson • Cost of Delay – Don Reinertsen • Project Management with Kanban • Cynefin 101 for Portfolio Kanban • Simple Probabilistic Forecasting …and more! • Becoming Data-Driven • Objective Retrospectives • Forecasting • Enterprise Kanban & Lean Startup • Scrumban • Kanban Coaching • Blockers for Improvement • RBS Project Sizing • Kanban Academic Research …
  21. 21. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Kanban Coaching Professional Masterclass 5-day course with David J Anderson March 2-6, 2015 www.djaa.com/kcpm-031 Hilton Alexandria Mark Center Learn how to lead successful Kanban initiatives. Improve service delivery and achieve better customer satisfaction • Coaching for evolutionary change • Assuring fitness for purpose • Using the Kanban Method • Designing a service-oriented organization Learn useful improvement models and all of our consulting tools Forinternalcoaches, managers,andconsultants
  22. 22. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc.
  23. 23. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Enterprise Services Planning Enterprise Services Planning is a new modular 5-day training program from Lean Kanban which will be available from 2nd quarter 2015 Kanban is now table stakes. Large scale benefits are enabled by implementing Enterprise Services Planning Here are two small sections of the training material highlighting some planning & risk management concepts for scheduling & sequencing work at project or portfolio level …
  24. 24. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Lean Kanban Training Roadmap The Kanban Method (2 days) Intro to Kanban (1 day) Ready Trained Getting Started with Kanban (2 days) Enterprise Services Planning (5 days) Ready Trained Ready Trained Ready Training Trained Train the Trainer (5 days) Ready Trained Qualified Coaching Masterclass (5 days) Ready Trained Qualified KMP KMP KMP KMP KMP KMP Kanban Proficiency
  25. 25. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc.
  26. 26. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc.
  27. 27. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Moving the conversation away from process improvement and towards management and decision frameworks conf.leankanban.com edu.leankanban.com leankanban.com “Power in Simplicity”
  28. 28. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Essence of the Lean Kanban brand Pragmatic, actionable evidence-based guidance! Something you can take away and implement next Monday
  29. 29. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. ESP Training Modules Module 1 Portfolio Management (Day 1 & 2)  Strategy, fitness for purpose, KPIs, Cost of Delay, Scheduling, Sequencing, Portfolio risk, risk hedging, risk profiling, aligning strategy & capability, strategy review Module 2 Options, Commitment & Delivery (Day 3)  Understanding kanban systems, real options, upstream Kanban, commitment & replenishment, lead time, chance vs assignable cause variation Module 3 Project & Demand Management (Day 4)  Demand analysis, demand shaping, capacity planning, project forecasting, risk review, labor pool liquidity, workflow liquidity Module 4 Portfolios, Programs & Dependencies (Day 5)  Scaling Kanban, dependencies, visualizing dependencies, portfolio Kanban, stand ups, service delivery reviews, ops reviews
  30. 30. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Beta test special offer Offer an ESP training module and get up to 50% off list price through end of April 2014 We are looking for a few select clients to test the new class material Ideal test clients are medium-sized, privately held firms or business units of larger publicly companies where the VP is the sponsor ESP class material is mostly tried and tested but not in its current configuration. Beta testing is primarily to check timing and understand whether the sequencing facilitates the desired learning outcomes To order an ESP training beta test, contact Wes Harris, Commercial Director of David J. Anderson & Associates, wes@djaa.com
  31. 31. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Scheduling
  32. 32. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. When should we start something? impact When we need it 85th percentile Ideal Start Here Commitment point timeJan 10 Nov 11 If we start too early, we forgo the option and opportunity to do something else that may provide value. If we start too late we risk incurring the cost of delay If we pull the work into our kanban system on Nov 11 we have a 6 out of 7 chance of on-time delivery
  33. 33. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. We can study sensitivity to different start dates impact When we need it 50th percentile Later Start Here Commitment point timeJan 10 Nov 25 If we start as late as November 25 we only have a 50% chance of on- time delivery However, the cost of delay incurred if we deliver within 60 days is relatively small. We have an 85% chance of achieving delivery with acceptable cost of delay 85th percentile
  34. 34. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. What is the latest we could start? impact When we need it 0th percentile Very late start Commitment point timeJan 10 Dec 19 If we start as late as December 19 we have 0% chance of on-time delivery We have about a 10% chance of a total loss delivering the promotion beyond the expiry date of the opportunity 85th percentile total loss
  35. 35. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. To be certain of delivery without incurring any cost of delay is expensive impact When we need it 98th percentile Early Start Commitment point timeJan 10 Aug 11 If we are conservative and do not wish to carry any risk of late delivery or any risk of incurring an opportunity cost of delay, then we must start as early as August 13th. We must commit to our Spring Break 2015 promotion during Summer 2014!!!
  36. 36. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Window of opportunity impact When we need it Earliest Start timeJan 10 Aug 11 Latest viable start Dec 19 Optimal Start Nov 11 On August 11st the item becomes available for selection at Kanban system replenishment. The ideal time to start is November 11th. After December 19th our option to deliver this item expires and we would discard it from our pool.
  37. 37. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Lead time is perhaps the most important metric we gain from kanban systems Lead time coupled with cost of delay sensitivity analysis is a key enabler of deferred commitment and consensus on when to make commitments Lesson
  38. 38. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. We need tools!  Existing Kanban software products largely seek to replicate the function of a physical board  They don’t actually help with real management problems  Enterprise Services Planning is easy to understand but laborious to implement • No one built a Gantt chart manually!  A new breed of tools will emerge in 2015 offering ESP support
  39. 39. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Tools will facilitate decision making  ESP software tools will facilitate the decision making to run the enterprise  Assist with commitment & replenishment  Assist with risk assessment & hedging  Assist with capacity planning  Facilitate SDRs & Ops Reviews
  40. 40. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Enterprise Services Planning “The Future of Kanban”  “Fit for Purpose” service delivery • Fitness criteria metrics & classes of service tuned to market segments / source of customer demand  Anticipate Demand • Comprehend WIP limits, staffing levels and required liquidity levels  Shape Demand • Allocate capacity to hedge risk • Bifurcate demand with risk policies  Scheduling, Sequencing & Selection • Intelligent recommendation engine utilizing risk profiles & risk management policies
  41. 41. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Kanban experience reports • Ultimate • Software • BazaarVoice • web recommendations app and mobile development Including…
  42. 42. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Kanban Coaching Professional Masterclass 5-day course with David J Anderson March 2-6, 2015 www.djaa.com/kcpm-031 Hilton Alexandria Mark Center Learn how to lead successful Kanban initiatives. Improve service delivery and achieve better customer satisfaction • Coaching for evolutionary change • Assuring fitness for purpose • Using the Kanban Method • Designing a service-oriented organization Learn useful improvement models and all of our consulting tools Forinternalcoaches, managers,andconsultants
  43. 43. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Thank you!
  44. 44. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. About David Anderson is an innovator in management of 21st Century businesses that employ creative people who “think for a living” . He leads a training, consulting, publishing and event planning business dedicated to developing, promoting and implementing new management thinking & methods… He has 30+ years experience in the high technology industry starting with computer games in the early 1980’s. He has led software organizations delivering superior productivity and quality using innovative methods at large companies such as Sprint and Motorola. David defined Enterprise Services Planning and originated Kanban Method an adaptive approach to improved service delivery. His latest book, published in June 2012, is, Lessons in Agile Management – On the Road to Kanban. David is Chairman 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.”
  45. 45. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc.

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