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Kanban for
Portfolio Management	

Gaetano Mazzanti	

@mgaewsj	

Agile42
sounds familiar?	

too many things to do 	

slipping schedule 	

continuous resource reallocation,
multitasking
too slow to react
demand	

capacity
the illusion of predictability	

delays	

defects	

plan	

uncertainty	

emerging knowledge	

impediments	

more detailed planning	

rigid change management	

additional overhead
welcome to uncertainty
Project Portfolio Management (PPM) is the centralized
management of processes, methods, and technologies used by
project managers and Project Management Offices (PMOs) to
analyze and collectively manage a group of current or proposed
projects based on numerous key characteristics. The objectives
of PPM are to determine the optimal resource mix for delivery
and to schedule activities to best achieve an organization’s
operational and financial goals ― while honouring constraints
imposed by customers, strategic objectives, or external real-
world factors.	

wikipedia
traditional portfolio
tenets	

Governance	

Compliance	

Control	

PMO (budget administration, staffing, auditing)
traditional portfolio
“pillars”	

Top-down	

Centralized Annual Budget	

Detailed Planning	

Fixed date, fixed cost, fixed scope
(fixed fate L)	

Cumbersome electronic tools	

starting vs finishing	

people as “resources”	

full capacity allocation	

PUSH!
we love Excel!
rebooting teams	

project “completed”:
reboot the team and…
start again L ouch!	

teams are rebooted, project to project, putting
together different people each time and
expecting to have predictable outcomes	

	

Tuckman model of team development
On time, On Budget  Conformant to Specs	

	

	

	

oops!	

how is success measured
inspired by Joakim Sunden
What is Lean Kanban?	

The Kanban method is an
evolutionary approach to change
Lean	

add value without generating waste
muri, mura, muda
principles of the
Kanban method	

start with what you do now	

agree to pursue incremental, evolutionary change	

respect the current process, roles, responsibilities 
titles	

encourage acts of leadership at all levels in your
organization – from individual contributor to senior
management
Kanban
six core practices	

visualize
limit WIP
manage flow
make process policies explicit
implement feedback loops
improve collaboratively, evolve experimentally
if you can’t see it
you can’t manage it
Visualize	

Knowledge work is invisible. If you can’t see
something, it is (almost) impossible to manage
it. 	

Collaborative process improvement is almost
impossible if work and workflow are invisible
and if process policies are not explicit. 	

David J Anderson
a Kanban board	

visualize to understand the process	

	

how the process works and fails to work for
you and your customers	

	

how it can be changed
expose dysfunctions
Limit WIP
balancing
demand  capacity	

demand	

capacity	

no matter how good you are at filtering
capacity is always full (and more)
# of items in system (WIP)	

B	

C	

D	

F	

E	

A	

ideas	

 elaborate	

 do	

 delivered	

validate	

G	

H	

I	

# of items in a specific
state = 2	

# of items in
specific area = 4	

total # of
items = 9
limiting WIP	

fewer commitments	

more options	

finishing stuff- stop starting start finishing
100% utilization myth	

idle work	

vs	

idle workers	

	

efficiency (doing things right)	

vs	

effectiveness (doing the right things)
multitasking	

sucks	

	

	

it’s easier to start	

than it is to finish
multitasking sucks	

visualphotos.com	

1
2
3
4
5
6
YOUR MULTITASKING
IS MY BOTTLENECK	

Jim Benson	

1
2
3
4
5
6
let work flow	

let work flow
visualize flow	

ideas	

 elaborate	

 do	

 delivered	

validate	

B	

C	

D	

F	

E	

A
visualize flow	

B	

C	

D	

F	

E	

A	

ideas	

 elaborate	

 do	

 delivered	

validate
highlight issues	

B	

C	

D	

F	

E	

A	

ideas	

 elaborate	

 do	

 delivered	

validate	

!	

!
measure flow	

B	

C	

D	

F	

E	

A	

ideas	

 elaborate	

 do	

 delivered	

validate	

G	

H	

I
cycle time	

=	

WIP / throughput	

(throughput = average completion rate)	

Little’s Law
flow = speed * density
slack (%)	

absorb variations
% capacity
utilization
queuesize
queue size
grows
exponentially
at high capacity0	
  
5	
  
10	
  
15	
  
20	
  
25	
  
0	
   10	
   20	
   30	
   40	
   50	
   60	
   70	
   80	
   90	
   100	
  
make process policies explicit	

(i.e. definition of done,WIP limits, pairing reviews, test
automation, …)	

	

implement feedback loops	

(i.e. standups, retrospectives, operation reviews, metrics, …)	

	

improve collaboratively, evolve experimentally	

(using models and the scientific method)
Lean Agile Portfolio
traits	

Value driven	

WIP limited	

Decentralized, adaptive	

Empirical, Probabilistic (statistical data support)	

Lightweight business case/specs	

Lightweight estimation	

Physical Boards	

Traditional Portolio Management	

Centralized Annual Budget	

Detailed Planning	

Fixed date, fixed cost, fixed scope
(fixed fate L)	

Compliance driven, top-down approach	

Cumbersome electronic tools
Kanban board design	

Ideas
oo
Biz Case
Tech
Assessment
15-30 5-12
Committed
5
In Progress
5
Verification
5
Rejected
Commitment
Point
Business
RD
source David J Anderson
Kanban board designs	

source Pawel Brodzinski
demand analysis	

where does work come from?	

how is value assigned (and verified) to initiatives?	

is arrival rate predictable? (usually not)	

Ideas
oo
Biz Case
Tech
Assessment
15-30 5-12
Committed
5
In Progress
5
Verification
5
Rejected
Commitment
Point
Business
RD
work item types	

standard	

fixed date	

urgent/emergency	

intangible	

…	

small	

medium	

large	

…	

growth	

maintenance	

innovation	

…
the magic of visualizing	

waiting for
approval	

 initial design,
planning,
outsourcing,
mold design, etc.	

demand	

capacity
one week later
a new board	

color = team
46	
  
flow
(bad) flow	

Z Z Z
Z Z 	

Z Z Z
Z Z 	

Z Z Z
Z Z
bottlenecks	

B	

C	

D	

F	

E	

A	

ideas	

 elaborate	

 do	

 delivered	

validate	

G	

H	

I	

gate
J	

K
bottlenecks	

B	

C	

D	

F	

E	

A	

ideas	

 elaborate	

 do	

 delivered	

validate	

G	

H	

I	

gate
J	

K	

L
bottlenecks	

B	

C	

D	

F	

E	

A	

ideas	

 elaborate	

 do	

 delivered	

validate	

G	

H	

I	

J	

K	

L	

gate
items 	

queueing up	

empty	

area
limit WIP	

by # of initiatives (size matters)	

by size	

by team capacity	

by space available	

by conversation	

…
limit WIP by
team capacity / space available	

mar apr may jun jul aug sep
Team
A
Team
B
Team
C
Team
D
Team
E
once again:
complexity and uncertainty are
intrinsic to knowledge work	

we must be able to
react to unfolding events and
adapt to changing circumstances	

David J Anderson
but… we hate uncertainty	

we prefer to take a decision now	

even if it risks being wrong	

i.e. annual budget (we remove options, we
increase risks)
decision making in
uncertainty	

balance:	

risk/return	

maintenance/growth	

short term/long term	

etc.
selection	

what to do next?	

what to finish next?
last responsible moment
selection	

Discover
what to do
Do It Validate
Outcome
Reject Commitment
keep your options open	

pull
selecting/pulling
a project	

do first	

do next	

do soon /
re-evaluate	

do sometime	

or reject	

fit with goals	

timeliness	

(urgency,
Cost of Delay,
fit with strategy)	

source GDS
select what you don’t do
what about
specs  estimations?	

what if you have 50 candidate initiatives and
only 15 can be done?	

what’s the point (cost) of specifying and
estimating all 50?	

precision is worthless	

guesstimation - range + historical data	

check and adapt
when starting a project	

we simply need a rough idea of size and
an understanding of (un)certainty
which parameters should you
consider to select what to do next	

ROI, IRR, NPV, etc. ?	

Do you know your Cost of Delay???	

ROI	

Cost of
Delay
(1 month)	

Project A	

 25%	

 5k	

Project B	

 15%	

 30k	

which one would you select next?	

example credit: Kenny Rubin
cost of delay 
classes of service	

cost 	

time	

cost 	

time	

cost 	

time
classes of service and WIP	

standard work = 60%	

urgent = 10%	

due date = 20%	

maintenance = 10%
classes of service, WIP, expedite lane	

D	

H	

J	

I	

F	

 B	

A	

E	

C	

6	

M	

 L	

 K	

2	

1	

1	

O	

Q	

N	

P	

EXPEDITE LANE	

G	

ideas	

 elaborate	

 do	

 delivered	

validate
metrics?	

try	

measure	

learn	

goal	

measure	

learn	

as a learning loop
control chart	

4	

6	

8	

10	

12	

14	

16	

average cycletime	

UCL	

LCL	

cycle time	

knowledge work	

has high variability	

time!
CFD
Cumulative Flow Diagram
monitoring progress	

90% complete	

remaining 10% could take forever	

is usually meaningless	

90% of what?
burn-up chart	

time	

outcome
enough…
Lean Agile Portfolio
traits	

Value driven	

WIP limited	

Decentralized, adaptive	

Empirical, Probabilistic (statistical data support)	

Lightweight business case/specs	

Lightweight estimation	

Physical Boards	

Traditional Portolio Management	

Centralized Annual Budget	

Detailed Planning	

Fixed date, fixed cost, fixed scope
(fixed fate L)	

Compliance driven, top-down approach	

Cumbersome electronic tools
Portfolio Kanban
is more about
changing/transforming the organization
than about
stickies on a board	

Mike Burrows
no change
disruptive
change
Kanban
inspired by the works of many, including
Mike Burrows, Pawel Brodzinski and David J Anderson	

Kanban
learn from the people
plan with the people
begin with what they have
build on what they know
Lao-Tzu
Gaetano Mazzanti	

@mgaewsj	

gaetano.mazzanti@agile42.com	

Agile42	

Kanban

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