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Lean Kanban India 2018 | Developing Business Agility through the Kanban Maturity Model | Teodora Bozheva
- 1. Developing Business Agility through the Kanban Maturity Model Teodora Bozheva @tbozheva
- 2. @tbozheva Business agility is about… • The ability to operate in uncertain environment – Uncertainty coming from customers, market, technologies, or product/service complexity • The ability to shift focus quickly without interrupting the flow of delivering value to the customers.
- 3. @tbozheva • Quick feedback from the environment • Ability to understand and analyze current situation • Ability to make quick decisions and execute them • Ability to align the organization around the common purpose Business agility is based on …
- 4. @tbozheva
- 5. @tbozheva • Individual oblivious to the need of process and polices • Main objective: cope with the work requests • Rudimentary instrumentation • Business outcome totally depends on individual’s skills and knowledge
- 6. @tbozheva • Emerging understanding that a management process, structure and transparency contribute to doing work consistently. • Inconsistent process • Business outcome still depends on individual’s skills • Metrics focused on individuals
- 7. @tbozheva • Work is seen as a service • Consistent process: Management process, polices and decision- making frameworks defined. • Inconsistent outcome • Some metrics in place, but not linked to customer expectations
- 8. @tbozheva • Triage discipline; Classes of services • Actionable metrics • Consistent outcome; • The service is fit-for purpose
- 9. @tbozheva • The service meets customer expectations routinely; becomes fit-for-purpose from stakeholders perspective too • Quantitative understanding of the workflow • Focus on early risk identification and hedging • Capability to manage shared resource and fluctuating demand
- 10. @tbozheva • The business is entirely fit-for purpose from stakeholders perspective • Optimizing for efficiency and improved economic results • Continuous improvement culture in place
- 11. @tbozheva • “Built to last” • Double-loop learning capabilities • The entire business is service-oriented and driven by service delivery. Consistent alignment. • Revising the company strategy • Continually fit for purpose
- 12. @tbozheva The KANBAN MATURITY MODEL is designed to develop BUSINESS AGILITY.
- 13. @tbozheva Two cases • 15 people aprox • Startup to established business • Software development • Flat organizational structure • Ambitious, risk-taking young people; strong personality • Using agile practices • Objectives: (1) Happy paying customers (2) Fast delivery of features ExpertCrew • 150 people aprox • Stable business • Finance data processing • Established organizational structure • Several teams apply basic agile practices • Objectives: Become agile (1) Time-to-market (2) Adaptability to change FinAgile
- 14. @tbozheva ExpertCrew situation Practices used by the core team Personal kanban boards in Trello, chat in Slack Daily meetings Bi-weekly demo-planning meeting Retrospectives 3 months product planning • Re-organize the leadership team • “Friends at work” policy • Structure the organization by specializations: UX design, sw development, content creation • 6 weeks product planning • Re-structure the organization in 3 feature teams sharing 1 UX designer and 1.5 SW developer • Re-organize the leadership team Misalignment 5-6 new people on board Start 2 new features What is wrong with our management? Product quality; Misalignment • New people execute assigned tasks How to grow a sustainable business?
- 15. @tbozheva FinAgile situation Practices used by selected teams ~5 Team kanban boards Daily meetings Bi-weekly demo-planning meeting Retrospectives 3 months product planning • Re-structure the organization in multi- disciplinary project teams • Unclear how to manage services Attention and resources focused on first wave projects. Short iterations and committed teams work well. • Start with portfolio management • Agile Express training for all teams • Push more work to project teams
- 16. @tbozheva Teams applying Agile practices agile organization
- 17. @tbozheva FinAgile situation Practices used by selectedteams Team epic – feature – task boards Daily meetings Bi-weekly demo-planning meeting Retrospectives 3 months productplanning • Re-structure the organization in project teams • Unclear how to manage services • Re-structure the organization to separate projects from recurring services • New roles: Staffer and Specialization managers • Start with a new tool (Jira). Plenty of team dependencies; Unclear priorities; Misalignment; Too many meetings; Overloaded individuals Attention and resources focused on first wave projects. Short iterations and committed teams work well. • Start with portfolio management Is this Agile? • Agile Express training for all teams • Push more work to project teams
- 18. @tbozheva From practice perspective - very similar organizations ExpertCrew FinAgile Practices used by the core team Personal kanban boards in Trello, plus chat in Slack Daily meetings Bi-weekly demo-planning meeting Retrospectives 3 months product planning Practices used by selected teams Team task boards Daily meetings Bi-weekly demo-planning meeting Retrospectives 3 months product planning
- 19. @tbozheva Culture differences ExpertCrew • Seek quick improvement of business outcomes (customers, economic results) • Weakly centralized management. “Friends at work” Employees value the liberty to contribute and develop their own ideas. Slow decision making due to involving lots of people in it. • No triage discipline. React according to personal perception of customer needs. FinAgile • Seek gradual improvements in work organization • Strongly centralized management Strong management identity (authority) Employees are used to comply to procedures and fulfill clear assignments Management bandwidth exhausted in team meetings (backlog grooming and demo) Slow problem resolution and decision making due to strong dependence on limited management resources • No triage discipline. All work has to be done
- 21. @tbozheva ExpertCrew on KMM ML0ML1ML2ML3 Individuals manage their own tasks in different tools. Personal kanban boards. Daily meeting. Retrospective Strong dependence on individuals Inconsistent process Inconsistent product results Misaligned mini-teams Agreement; Respect Purpose “Friends at work” policy Strong “who I am” culture Reluctance to organizational structure Weak perception of a team as a whole. Some collaboration happens occasionally Limited transparency Decision making: emotional, reactive Diverse understanding of customer expectations •Happy paying customers • Fast delivery of features
- 22. @tbozheva ExpertCrew on KMM ML0ML1ML2ML3 Individuals manage their own tasks in different tools. Personal kanban boards. Daily meeting. Retrospective Strong dependence on individuals Inconsistent process Inconsistent product results Misaligned mini-teams Agreement; Respect Purpose “Friends at work” policy Strong “who I am” culture Reluctance to organizational structure Weak perception of a team as a whole. Some collaboration happens occasionally Limited transparency Decision making: emotional, reactive Diverse understanding of customer expectations •Happy paying customers • Fast delivery of features 1. Start with “who WE are” and a clearly communicated purpose 2. Get a shared understanding of the work process • Visualize end-to-end workflow • Define initial policies, roles and a decision making framework • Establish per-person WIP limits 3. Make work flow consistently. Start measuring delivery time. 4. Focus on improving customer experience
- 23. @tbozheva
- 24. @tbozheva Product development kanban board – initial design Workflow
- 25. @tbozheva FinAgile on KMMML0ML1ML2ML3 Org. structure based on specializations Priority criteria not established Difficult alignment between teams Outcome depends on individual’s heroics Some collaboration within the teams Transparency within teams Work is pushed into the process Basic delivery workflow defined for projects Decision making policies not established. “Yes” to every work request. Lack of understanding of system capability Employees are overloaded Strong “Who I am as a manager” culture •Time to market • Adaptability to change Product and service requirements understood and must meet
- 26. @tbozheva FinAgile on KMMML0ML1ML2ML3 Org. structure based on specializations Priority criteria not established Difficult alignment between teams Outcome depends on individual’s heroics Some collaboration within the teams Transparency within teamsWork is pushed into the process Basic delivery workflow defined for projects Decision making policies not established. “Yes” to every work. Lack of understanding of system capability Employees are overloaded Strong “Who I am as a manager” culture •Time to market • Adaptability to change Product and service requirements understood and must meet 1. Align the Managers • Basic understanding of systems thinking and flow • Start seeing work as service • Decentralize the management. Define decision making polices to empower the teams • Multiple project and service management 2. Get a shared understanding of the work process • Visualize end-to-end workflow • Establish per-person WIP limits 3. Make work flow consistently
- 27. @tbozheva Initial understanding of how knowledge-based systems work Supported by data and actionable metrics
- 28. @tbozheva Agree Management level view Define conclusions and actions
- 29. @tbozheva Developing Business Agility with KMM 1. Understand current situation and purpose of an organization. 2. Understand what cultural and leadership aspects to develop to facilitate the introduction of Kanban practices 3. Get guidance on appropriate Kanban practices which will lead to improving business outcome. 4. Observe impact on culture and business outcomes.
Editor's Notes
- About me: Improvement initiatives have to demonstrate positive impact on the business results (Nemetschek; involved; eating the results of what we were defining for the organization) Agile require appropriate homeground (beginning of Agile movement; piloting agile methods; observing behavors and outcome) CMMI is useful as a model. Organizations who use it with focus on compliance, get compliant processes. Those who focuss process improvement, get improved processes. Those who ask for the expected minimum of practice implementation to pass the appraisal, usually get the certificate and little more. Those who say “this is a good idea, let see how we can adapt it to our context”, obtain improvements and valuable learning. Kanban and KMM enable creating the right combination of agiliity and discipline that leads to better business outcome. What inspired me to work on the KMM is the opportunity to develop useful guidance for evolving organizations towards their purpose and better business outcome. When I say business outcome, I mean satisfied customers, sustainable business and all this achieved through effective and flexible working routines.
- Business agility refers to the a a group of qualities that allow an organization to respond rapidly to changes in its internal end external environment without loosing momentum and vision. 4 key concepts are important to take into account when discussing business agility: Understanding of the current situation and the purpose of the organization Managing Interactions between teams Aligning teams around a shared purpose Co-evolution of products/services, work practices and cultural values that allow companies to get continually better in meeting their objectives. The primary intent of KMM is to support the evolution of organizations towards their purpose. -------------------------------------------- https://www.hrzone.com/hr-glossary/what-is-business-agility Business agility refers to distinct qualities that allow organisations to respond rapidly to changes in the internal and external environment without losing momentum or vision. Adaptability, flexibility and balance are three qualities essential to long-term business agility. From an HR perspective, agility is about ensuring the human capital in the organisation have the skills and abilities to respond quickly to new developments and the infrastructure and processes to mobilise this human capital into action as efficiently as possible. Four useful concepts when discussing business agility include interactions, co-evolution. Co-evolution is the continuous progression of products, services and processes whereby companies consistently learn and evolve to meet the changing needs of the environment. self-organisation and the edge of chaos. https://www.agilebusiness.org/business-agility
- Business agility refers to the a a group of qualities that allow an organization to respond rapidly to changes in its internal end external environment without loosing momentum and vision. 4 key concepts are important to take into account when discussing business agility: Understanding of the current situation and the purpose of the organization Managing Interactions between teams Aligning teams around a shared purpose Co-evolution of products/services, work practices and cultural values that allow companies to get continually better in meeting their objectives. The primary intent of KMM is to support the evolution of organizations towards their purpose. -------------------------------------------- https://www.hrzone.com/hr-glossary/what-is-business-agility Business agility refers to distinct qualities that allow organisations to respond rapidly to changes in the internal and external environment without losing momentum or vision. Adaptability, flexibility and balance are three qualities essential to long-term business agility. From an HR perspective, agility is about ensuring the human capital in the organisation have the skills and abilities to respond quickly to new developments and the infrastructure and processes to mobilise this human capital into action as efficiently as possible. Four useful concepts when discussing business agility include interactions, co-evolution. Co-evolution is the continuous progression of products, services and processes whereby companies consistently learn and evolve to meet the changing needs of the environment. self-organisation and the edge of chaos. https://www.agilebusiness.org/business-agility
- We describe 7 levels of organizational maturity. Each level is defined in terms of practices for managing the workflows Cultural patterns Fitness for the business purpose of the orgenization.
- Buiness outcome and team’s Agility depends on the individuals’ skills and personality.
- Consistent process
- Business agility refers to the a a group of qualities that allow an organization to respond rapidly to changes in its internal end external environment without loosing momentum and vision. 4 key concepts are important to take into account when discussing business agility: Understanding of the current situation and the purpose of the organization Managing Interactions between teams Aligning teams around a shared purpose Co-evolution of products/services, work practices and cultural values that allow companies to get continually better in meeting their objectives. The primary intent of KMM is to support the evolution of organizations towards their purpose. Help them move faster towards their business purpose without interrupting the flow of value to their customers. -------------------------------------------- https://www.hrzone.com/hr-glossary/what-is-business-agility Business agility refers to distinct qualities that allow organisations to respond rapidly to changes in the internal and external environment without losing momentum or vision. Adaptability, flexibility and balance are three qualities essential to long-term business agility. From an HR perspective, agility is about ensuring the human capital in the organisation have the skills and abilities to respond quickly to new developments and the infrastructure and processes to mobilise this human capital into action as efficiently as possible. Four useful concepts when discussing business agility include interactions, co-evolution. Co-evolution is the continuous progression of products, services and processes whereby companies consistently learn and evolve to meet the changing needs of the environment. self-organisation and the edge of chaos. https://www.agilebusiness.org/business-agility
- FinAgile – rather generic objectives. One one side because the organization is very large. On the other side, it is expected that compliance to the agile practices will bring all the benefits declared by other organizations using agile. Time-to-market = develop valuable products that meet the expectations of our customers Adaptability to change = Developing products using iterations to take advantage of the customer feedback Differences between the cases: Expecrt Crew live in an environment of uncertainties; have a clear purpose, emerging process Fin Agile lives in a stable environment, which begins to feel the pressure of the competitors to deliver services in shorter time and to be able to respond quickly to changing requests fron regulators.
- ExpertCrew Objective using agile practices (daiyies, Friday demo, planning) problems with the progress and alignment restructuring by specialties problems with quality change within leadership team, restructuring by features – no improvement observed The Management and the people want to see results and improvement soon. They feel the urgency because the funding they still have from the investors is getting less everyday. Management team chose Kanban as a management means that requires little overhead The need of management is clear but the steps to introduce organizational structure causes reluctance Lack of understanding of what the finished product should look like. This affects the product quality Lack of alignment between teams Lack of triage discipline. Even though the purpose and scope of a project were initially defined, they are not revised again during the reléase. Agreement to pursue improvement gradually Understanding of how work occurs and what impediments there are in the workflow – not really. Shared Purpose – about the business yes; - about the improvement actions focus – no (the 3rd day one of the Leadership Team members came and asked “what do we want with this?”)
- The furst teams were selected and all the focus and resources were provided to enable the application of Agile by the book Management who wans to see the change in the teams, to be able to deliver more work, but w/o changing the management style. No sense of urgency Lack of perception of the business outcome They try to achive shorter delivery times through speeding up the teams, only team-level strtuctural changes, w/o adjusting the decisión framework and work management policies to the new challenges. I.e they are ML1 organization which meets the challenges of
- Dependencies cause: Queues of additional work Interruptions Rework due to miscommunication Frustration Extra work hours / Larger delivery time IN some cases there were conflict of priorities because people in the teams were also dependendent on Different senior managers. Organizational agility is not about the number of teams applying agile practice. Tio develop a true business Agility, the had to grow the ability to resolve dependencies quickly. It is about how quickly dependencies between teams are resolved. The proposal for coping with the dependencies problema was: To train scum masters who supervise the strict application of the agile ceremonies To introduce an Agile Termometer (Radiator) which by means of a survey measures, if team members understand the Project objectives, can speak openly at the meetings, use short delivery cycles, tak into account the customer feedback, and so on and so forth. This is a clear evidence that these metrics measure compliance to certain practices but do not address the real problema at hand.
- Is this Agile? = Is this the Agility that they were expecting? Are they able to deliver value to their customers faster? (time-to-market) Can they shift rapidly and easily focus on issues that are important to resolve in order not to interrupt value delivery? (adaptability) The teams were selected and all the focus and resources were provided to enable the application of Agile by the book Management who wans to see the change in the teams, to be able to deliver more work, but w/o changing the management style. No sense of urgency Lack of perception of the business outcome Is this Agile? = Are you getting faster in delivering value? They assume that complying to agile practices will authomatically bring them business agility. However business agility is not about how many projects do daily meetings, demo-planning meetings and retrospectives. It is about how to align all the teams in delivering value to the customers. It is difficult to convince the Managers that the agility of an organization depends primarily on the ability to resolve dependencies between their teams, on how fast the interactions between the teams are, that is on how fast the que “Wait on other teams” is processed. As a business, what is agility for you?
- In both cases the improvement is sought through re-structuring the organization.
- ExpertCrew Sense of urgency Known business outcome There are different paths, each with its advantages and disadvantages. Frequent change of course of action because of the intent of te management to satisfy all expectations. Fear to establish policies because of the “Friends at work” agreement Part of the business agility profile is the decision making. Making a wrong decision is better than making no decision.
- ExpertCrew Sense of urgency Known business outcome There are different paths, each with its advantages and disadvantages. Frequent change of course of action because of the intent of te management to satisfy all expectations. Fear to establish policies because of the “Friends at work” agreement Part of the business agility profile is the decision making. Making a wrong decision is better than making no decision. The misunderstood policy of “friend at work”and the fear to breach it prevents them from agreeing an organizational structure and management policies that will allow them to get closed to their purpose. FinAgile The fear of the Senior Management to establish decision making policies which will allow the teams to prioritize work and align to other teams creates conflicts between the teams which resolution is too slow Manager’s fear is due to unclear idea of what their position would be in an agile business organization
- Current situation summary: ML1T: Who I am culture, Inconsistent process, Inconsistent outcome, too weak org. Structure Objective: ML3 What obstacles do we see between the current sytuation and the pourpose from business Agility perspective? Start with the culture substitute the strong “who I am culture” by “who we are” one To be able to cope with uncertainty coming from their customers and market visualize end-to.end Flow so that all team members have a unified understanding of what is changing and why To be able to get fast feedbacl visualize actual situation of work, blockers and rework To be able to speed up decisión making centralize manageent and define explicit policies and borders To be able to keep all team aligned visualize multiple fueature development and the actual resource occupation Actions: Start with culture – who we are Processes (focus on business agility) Act quickly in uncertain environment – centralize decision making Uninterrupted flow of value –> align teams -> define policies for autonomoous decision making Fast feedback and analysisi of current situation -> visualize end-to-end workflow Quick decisions -> visualize blockers, fast feedback, explicit policies and boundaries for decisión making Centralize strategic decisions in the leadership team How to … Align the organization around the common purpose Get quick feedback from the environment (observe changes and risks; track business outcome) Understand and analyze current situation Enable quick decisions and execute them Substitute the strong “who I am” culture by “As a team we create more value” Establish a common purpose, and communicate it widely and clearly to the entire organization and all new commers Address “lack of alignment” and emotional decision making by Visualizing the entire workflow and state of work within teams and between them. explicit policies of selecting work items (focus on the purpose), escalating blocking issues, visualziing defects Create a decision channel – define borders for stategic decision making and operative decisions Improvement Recommendations Centralize management. Define and communicate strategic objectives and management means and roles to the company. Esablish roles who will deal with strategic and business management, as well as roles who will coordinate work at product team level and between development teams. Unify criteria that allow teams to make decisions and escalate only strategy-related issues. Introduce the concepts of flow to the entire organization Provide shared visibility of team work to facilitate coordination between the three teams. Measure delivery times Measure customer satisfaction
- Current situation summary: ML1T: Who I am culture, Inconsistent process, Inconsistent outcome, too weak org. Structure Objective: ML3 Actions Culture: Who we are ML2T – policies and visualize Make work flow: manage blocking issues and defects with appropritae policies (= establish consistent process) Improve product quality Centralize strategic decisions in the leadership team How to … Align the organization around the common purpose Get quick feedback from the environment (observe changes and risks; track business outcome) Understand and analyze current situation Enable quick decisions and execute them Substitute the strong “who I am” culture by “As a team we create more value” Establish a common purpose, and communicate it widely and clearly to the entire organization and all new commers Address “lack of alignment” and emotional decision making by Visualizing the entire workflow and state of work within teams and between them. explicit policies of selecting work items (focus on the purpose), escalating blocking issues, visualziing defects Create a decision channel – define borders for stategic decision making and operative decisions Improvement Recommendations Centralize management. Define and communicate strategic objectives and management means and roles to the company. Esablish roles who will deal with strategic and business management, as well as roles who will coordinate work at product team level and between development teams. Unify criteria that allow teams to make decisions and escalate only strategy-related issues. Introduce the concepts of flow to the entire organization Provide shared visibility of team work to facilitate coordination between the three teams. Measure delivery times Measure customer satisfaction
- There is very rough understanding of organizational capability. In general everything has to be done by the deadlines. How to … Align the organization around the common purpose Get quick feedback from the environment (observe changes and risks; track business outcome) Understand and analyze current situation Enable quick decisions and execute them We need to consolidate ML1 yet because this type of work is new to the people and they need more time to get used to it. In addition, starting more teams on Agile, leads that other teams get less coaching and therefore abandon the ractices. The overal objective is to create “Who we are cultire” first among the managers and liike this to enable the adoption of the Kanban practices. Trade policies that allow teams to make decisions and prioritize and unblock work for overal view of the projects and service status. To stop pushing work, introduce basic concepts of systems thinking flow, and seeing services. Give them the quantitative arguments they need to convince Staffer that some resources have to relocated. Work on unifying criteria for prioritizing work among specialization areas (programs). Develop the “who we are” culture Although ML2T is still about Teams, we need to make sure that Managers have deeper understanding of how to manage for business agility, therefore we start introducing them to concepts from the next levek, ML2C. In this way we protect the identity of the Manager as a person who drives its subordinates. Improvement suggestions: Decentralize management. Managers are afraid of losing the autority and the importance of being managers. => If they are to allow teams to be more self-organized (based on policies and criteria), they need to get higher level control over something else => ishow them the overal picture of the projects and services they manage, use data (managers need numeric arguments) Define priority criteria that allow teams to make decisions and escalate only strategy-related issues. Involve management in refining them. Unify priorities at management level Introduce the concepts of flow and systems thinking to management first in order to stop pushing work and improve alignment. Collect basic quantittaive information and prepare arguments for Management. Introduce the concepts of flow to the teams. Train them in decision making Provide shared visibility of team work, queues of work and bocking issues. Start with some basic portfolio (multiple projects) management to educate Managers in working with limited financial resources and understand calue in economic terms. Plus, make them feel important because they have a higher level view and understanding of the organization’s situation.
- There is very rough understanding of organizational capability. In general everything has to be done by the deadlines. How to … Align the organization around the common purpose Get quick feedback from the environment (observe changes and risks; track business outcome) Understand and analyze current situation Enable quick decisions and execute them We need to consolidate ML1 yet because this type of work is new to the people and they need more time to get used to it. In addition, starting more teams on Agile, leads that other teams get less coaching and therefore abandon the practices. The overal objective is to create “Who we are cultire” first among the managers and liike this to enable the adoption of the Kanban practices. Trade polices that allow teams to make decisions and prioritize and unblock work for overal view of the projects and service status. To stop pushing work, introduce basic concepts of systems thinking flow, and seeing services. Give them the quantitative arguments they need to convince Staffer that some resources have to relocated. Work on unifying criteria for prioritizing work among specialization areas (programs). Develop the “who we are” culture Although ML2T is still about Teams, we need to make sure that Managers have deeper understanding of how manage for business agility, therefore we start introducing them to concepts from the next levek, ML2C. In this way we protect the identity of the Manager as a person who drives its subordinates. Improvement suggestions: Decentralize management. Managers are afraid of losing the autority and the importance of being managers. => If they are to allow teams to be more self-organized (based on policies and criteria), they need to get higher level control over something else => ishow them the overal picture of the projects and services they manage, use data (managers need numeric arguments) Define priority criteria that allow teams to make decisions and escalate only strategy-related issues. Involve management in refining them. Unify priorities at management level Introduce the concepts of flow and systems thinking to management first in order to stop pushing work and improve alignment. Collect basic quantittaive information and prepare arguments for Management. Introduce the concepts of flow to the teams. Train them in decision making Provide shared visibility of team work, queues of work and bocking issues. Start with some basic portfolio (multiple projects) management to educate Managers in working with limited financial resources and understand calue in economic terms. Plus, make them feel important because they have a higher level view and understanding of the organization’s situation.
- Metrics – related to demand distibution and lead time per type of work– focus on customer and initial understanding of system capability in order to be able to define actions that will address the balance between demand and capability.
- Correct multiple-programs board for managing multiple projects and shared services