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Kanban & ESP - When are they appropriate?

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Closing key note from Lean Kanban India. Understanding the appropriate application of kanban systems, appropriate use of Enterprise Services Planning, and appropriate application of the Kanban Method for Evolutionary Change. Mapping to Cynefin complexity framework

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Kanban & ESP - When are they appropriate?

  1. 1. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Kanban & Enterprise Services Planning When are they appropriate? David J. Anderson LeanKanban India December 2015
  2. 2. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Understanding Options for Improvement
  3. 3. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Kanban’s Service Oriented Agenda
  4. 4. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Available options , disruptive & speculative demand
  5. 5. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Most process geeks & IT managers are operating over here , disruptive & speculative demand
  6. 6. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja We use Kanban to improve in an evolutionary way , disruptive & speculative demand
  7. 7. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Risk Management is an Enabling Capability… , disruptive & speculative demand
  8. 8. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Tools For Risk Management… , disruptive & speculative demand
  9. 9. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja , disruptive & speculative demand We use Enterprise Services Planning to analyze risk across demand for work and respond with suitable scheduling, sequencing, demand shaping, & capacity allocation
  10. 10. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Appropriateness for the use of kanban systems
  11. 11. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja My motivationfor adopting kanban systems was to prevent muri, control mura and encourage an evolutionary approachto change Overburdening Variability in Flow
  12. 12. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Appropriateness Question #1 Does your process suffer from overburdening or variability in flow?
  13. 13. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja What causes unevenness? 1. Non-instant availability of specialist skills or collaborators 2. Information fails to arrive before it is needed 3. Hidden/Implicit classes of service that cause work to be interrupted to process other work 4. Variety in work (complexity & size) 5. Changing priorities related to variety in risks associated with work (e.g. cost of delay) 6. Capacity constrained specialist skilled workers or other resources (e.g. test environments)
  14. 14. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Are any of these present in your work environment?
  15. 15. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Kanban may be appropriate for you!
  16. 16. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Kanban is unnecessary where demand never exceeds capability and flow is smooth and never interrupted! If conditions of overburdening or unevenness in flow exist or are likely to then use of a kanban system may be an appropriate choice
  17. 17. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Appropriateness Question #2 Would your process benefit from deferred commitment?
  18. 18. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja When is deferred commitment useful? 1. Future market, economic, political conditions or customer tastes or demands are uncertain 2. Demands, priorities, or schedules may change 3. There is an existing high abandonment or discard rate of ideas or requests 4. There is a high abort rate of committed work 5. There is a high rework rate or high level of failure demand 6. Work is delivered but ignored or never used
  19. 19. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Are any of these present in your work environment?
  20. 20. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Kanban may be appropriate for you!
  21. 21. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Kanban is unnecessary where demands and expectations never change, ideas are never discarded, work aborted or obviated If conditions of uncertainty in the external environment exist then use of a kanban system may be an appropriate choice
  22. 22. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja In developing the Kanban Method, a change management approach that uses kanban boards & kanban systems to provoke change, we are enabling the emergenceof leaner service delivery organizations
  23. 23. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Appropriateness for the Kanban Method
  24. 24. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Daniel Kahneman has given us a simple model for how we process information Daniel Kahneman System 1 Sensory Perception Pattern Matching System 2 Logical Inference Engine Learning by Experience Learning from theory FAST But slow to learn SLOW But fast to learn
  25. 25. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja How we process change… Daniel Kahneman Silicon-based life form Carbon-based life form I logically evaluate change using System 2 I adapt quickly I feel change emotionally using System 1 I adapt slowly
  26. 26. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Adopting new processes challenges people psychologically & sociologically New roles attack identity New responsibilities using new techniques & practices threaten self-esteem & social status Most people resist most change because individually they have more to lose than gain It is safer to be conservative and stick to current practices and avoid shaking up the current social hierarchy Only the brave, the reckless or the desperate will pursue grand changes
  27. 27. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja The Kanban Method… Rejects the traditional approach to change Believes, it is better to avoid resistance than to push harder against it  Don’t install new processes  Don’t reorganize Is designed for carbon-based life forms  Evolutionary change that is humane
  28. 28. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja The Kanban Method… Catalyzes improvement through use of kanban systems and visual boards* Takes its name from the use of kanban but it is just a name Anyone who thinks Kanban is just about kanban (boards & systems) is truly mistaken *also known as "kanban" in Chinese and in Japanese when written with Chinese characters
  29. 29. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Water flows around the rock “be like water” the rock represents resistance
  30. 30. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Kanban should be like water* In change management, resistance is from the people involved and it is always emotional (system 1) To flow around the rock, we must learn how to avoid emotional resistance * http://joecampbell.wordpress.com/2009/05/13/be-like-water/
  31. 31. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Appropriateness Question #3 Are people likely to resist change emotionally, rejecting forced changes to their identities?
  32. 32. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Traditional Change is an A to B process A is where you are now. B is a destination.  B is either defined (from a methodology definition)  or designed (by tailoring a framework or using a model based approach such as VSM* or TOC TP**) To get from A to B, a change agency*** will guide a transition initiative to install B into the organization ***either an internal process group or external consultants Current Process Future Process Defined Designed transition * Value stream mapping, ** Theory of Constraints Thinking Processes
  33. 33. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja What change really feels like: The J Curve
  34. 34. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja What change really feels like: The J Curve Safety!
  35. 35. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja What change really feels like: The J Curve Patience!
  36. 36. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Start with what you do now The Kanban Method evolved with the principle that it “should be like water” - enable change while avoiding sources of resistance With Kanban you start with what you do now, and "kanbanize" it, catalyzing the evolutionary process into action. Changes to processes in use will occur Evaluating whether a change is truly an improvement is done using fitness criteria that evaluate an external outcome
  37. 37. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Fitness criteria are metrics that measure observable external outcomes Fitness criteria are metrics that measure things customers or other external stakeholders value  Delivery time  Quality  Predictability  Safety (conformance to regulatory requirements) or metrics that qualitatively assess actual outcomes such as  customer satisfaction  employee satisfaction
  38. 38. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Evolutionary Change May Be Enough Evolutionary change can often deliver dramatic improvements in key fitness metrics such as lead time, quality, & delivery rate
  39. 39. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Evolutionary change has no defined end point Evolving Process Roll forward Roll back Initial Process Future process is emergent Evaluate Fitness Evaluate Fitness Evaluate Fitness Evaluate Fitness Evalua Fitnes We don’t know the end-point but we do know our emergent process is fitter!
  40. 40. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Evolutionary change with many small J’s Fitness Time
  41. 41. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Appropriateness Question #4 Is your boss a revolutionary?
  42. 42. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Not every senior leader is a revolutionary The last thing IBM needs now is a new strategy
  43. 43. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja But many feel the need to shake things up and leave their mark Carly Fiorina We need to buy Compaq! Go big or go home!
  44. 44. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Your boss may lack the patience to wait for an evolutionary approach to improvement to take effect
  45. 45. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Kanban & the Cynefin Framework
  46. 46. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja
  47. 47. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja
  48. 48. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja
  49. 49. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja if observation shows mura & muri are present then respond with a kanban system
  50. 50. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja if deferred commitment is desirable then respond with a kanban system
  51. 51. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Existing Process is mapped Overlay a kanban system Implement in a single transition
  52. 52. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja If there are many interdependent services then respond with Enterprise Services Planning
  53. 53. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Kanban - Simple rules made visual & explicit Feedback Kaizen events – adapt the rules
  54. 54. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Change kanban system design (policies) to catalyze (or probe) for desired emergent outcomes
  55. 55. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Ecosystems of interdependent professional services (such as software product development) exist in all 3 domains
  56. 56. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja ESP & Kanban are designed to work across all 3 domains
  57. 57. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Kanban is unlikely to be useful in the Chaotic domain
  58. 58. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Conclusion
  59. 59. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Kanban & ESP For broad application as a service delivery workflow overlay to control “mura” and eliminate “muri” & enable deferred commitment For broad application as a management system enabling adaptive capability and emergent “fitness for purpose” Most useful where demand can be treated as a pool of options and can be shaped using risk management, marketing strategy and strategic planning
  60. 60. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Kanban & ESP Kanban systems for appropriately categorized Obvious Domain problems ESP risk assessment, scheduling, sequencing, risk hedging algorithms for analyzed Complicated Domain problems Kanban Cadences coupled to model-driven improvement techniques, and an awareness of the psychology, social psychology & sociology of the workplace for Complex Domain problems
  61. 61. Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja Kanban is for evolutionaries Kanban may be just what I need! I don’t have time for this! Kick ass, take names & get it done! Carly Fiorina
  62. 62. Copyright Lean Kanban Inc. dja@leankanban.com @LKI_dja Thank you!
  63. 63. Copyright Lean Kanban Inc. dja@leankanban.com @LKI_dja About David Anderson is an innovator in management of 21st Century businesses that employ creative people who “think for a living” . He leads a training, consulting, publishing and event planning business dedicated to developing, promoting and implementing new management thinking & methods… He has 30+ years experience in the high technology industry starting with computer games in the early 1980’s. He has led software organizations delivering superior productivity and quality using innovative methods at large companies such as Sprint and Motorola. David defined Enterprise Services Planning and originated Kanban Method an adaptive approach to improved service delivery. His latest book, published in June 2012, is, Lessons in Agile Management – On the Road to Kanban. David is Chairman & CEO of Lean Kanban Inc., a business operating globally, dedicated to providing quality training & events to bring Kanban and Enterprise Services Planning to businesses who employ those who must “think for a living.”
  64. 64. Copyright Lean Kanban Inc. dja@leankanban.com @LKI_dja

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