Key Note - Smidig 2013 - Scaling Kanban in the Enterprise - Kanban's 3 Agendas

[email protected] @lkuceo Smidig 2013 Copyright Lean Kanban Inc.

PresenterDavid J. Anderson

CEO, Lean Kanban Inc.

SmidigOslo

November 2013Release 1.0

Scaling Kanban in the EnterpriseSustainable Improvement

mailto:[email protected]


Kanban is a Management Method!

This isn’t a management conference!

So why am I here?



The Old Model (18th-20th Century)

Management

Process

Workers

ProcessCoaches

DesignsOr

DefinesImposes

Follow

AssignWorkersTo Tasks

Management & Workers – 2

different classes

Manager as “dating agent” Model



The New Model (21st Century)

Management

ProcessWorkers ProcessCoaches

Facilitate

learningControl

&EvolvePolicies

All Knowledge Workers make management

decisions

Pay grade relates risk & authority to override or change process policies



True Management TrainingVery few

knowledge workers are given proper

management training.

They don’t know what business they

are in!



What Service Do You Provide?



Scaling Kanban in the Enterprise is about Scaling Effective Management

The Kanban Method is not…

A project management or software development lifecycle process

Nor, does it encourage a process-centric approach to improvement!

It’s a service-oriented approach to management & organization



The Kanban Agendas



Motivation for ManagersSurvivability

Agenda

Service-OrientedAgenda

SustainabilityAgenda



The Sustainability Agenda



Economically balancecapability against demand

Goals for using Kanban



Available options

, disruptive & speculative demand



What change really feels like:The J Curve

Patience!

Fitne

ss



Evolutionary change withmany small J’s

Increasing “fitness”

Increasing capabilityfor change



Proto-Kanban – infinite queues

Done

Poolof

Ideas

FH E

C A

I

NextDeploy-

mentReady

GD

GYPB

DEMN

5 ∞

P1

AB

Ongoing

Development Testing

Done Ongoing Done

3 3

I am a buffer!

The clue is in my name – “… Ready”

I am buffering non-instant availability or activity with a

cyclical cadence

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

∞ ∞



Another Proto-Kanban per person WIP limit)



Benefits of proto-Kanban implementation

Benefits

TransparencyEngage people

emotionallyCollaboration

Greater empathyReduced multitasking



H

FF OM

NK

J

I

Pull

Kanban systems are pull systemsIdeas

D

E

A

I

DevReady

G

5Ongoing

Development Testing

Done3 3

TestReady

5

F

B

CPull

Pull

*

There is capacity here

UATReleaseReady

∞ ∞

Pulling work from development will create

capacity here too –the pull signals move

upstream!

Now we have capacity to replenish our ready

buffer



Commitment is deferred

H

EC A

I

D

Commitment point

FF FF FF F

G

Pull

Wish to avoid discard after commitment

IdeasDev

Ready5

Ongoing

Development Testing

Done3 3

TestReady

5

UATReleaseReady

∞ ∞

We are committing to getting started. We are certain we want

to take delivery.

Ideas remain optional and unprioritized



TestReady

FF FF FF F

Defining Kanban System Lead Time

H

E

C A

I

G

DPull

System Lead Time

Abandoned

I

IdeasDev

Ready5

Ongoing

Development Testing

Done3 35

UATReleaseReady

∞ ∞

The clock starts ticking when we accept the customers order, not

when it is placed!

Until then customer orders are merely available options

Kanban system lead time ends when the

item reaches the first ∞

queue



Delivery Rate(from the kanban system) System Lead Time

WIP=

Avg. Lead Time

Avg. Delivery Rate

WIP

Backlog ReadyTo

Deploy

Little’s Law



Benefits of service-orientedsingle kanban system

Benefits

PredictabilityShorter Lead Times

Increased ThroughputImproved trust with

business stakeholdersEliminated DisruptionsMeasurable Benefits



The Service-Oriented Agenda



The Kanban lens



What Service Do You Provide?



Column WIP Limit = 5

Testing is a shared service across 5

dev teams

In this example, testing was off-

shore in Chennai, India



(some of the) orange tickets are avatars for people

from shared services such as

enterprise architecture and user experience

design



5 lanes each with a dev team providing a

software development service to the

project



Column WIP Limits

Clinical Validation Testing,

Deployment,P.O. Acceptance

All are shared service across 3

dev teams



Multiple Types of Work Capacity is allocated across lanes

5 4 4 5 2 = 20 total

Change Req12

Maintenance2

Production Defect6

AllocationTotal = 20

InputQueue In Prog Done

BuildReady Test

ReleaseReadyDoneIn Prog

DevelopmentAnalysisReleased



Multiple classes of serviceAllocate capacity with kanban limit per color

5 4 4 5 2= 20 total

Allocation

10 = 50%

...

+1 = +5%

4 = 20%

6 = 30%

InputQueue In Prog DoneDoneIn Prog

DevelopmentAnalysis BuildReady Test

ReleaseReady



Scaling out across an organization



Kanban has two approaches to scaling



Treat each service separatelyDe

man

d

ObservedCapability

Dem

and

Dem

and

ObservedCapability

ObservedCapability



Some systems have dependencies on others

Dem

and

ObservedCapability

Dem

and

Dem

and

ObservedCapability

ObservedCapability



Survivability Agenda



Daniel Kahneman has given us a simple model for how we process information

Daniel Kahneman

System 1Sensory Perception

Pattern Matching

System 2Logical Inference

Engine

Learning byExperience

Learning from theory

FASTBut slow to learn

SLOWBut fast to learn



How we process change…

Daniel Kahneman

Silicon-basedlife form

Carbon-basedlife form

I logically evaluate change using System 2

I adapt quickly

I feel change emotionally using System 1

I adapt slowly



Adopting new processes challenges people psychologically & sociologically



The Kanban Method…



The Kanban Method…

*also known as "kanban" in Chinese and in Japanese when written with Chinese characters



The Kanban Method is a new approach to improvement

Kanban is a

method without

methodology



Water flows around the rock

“be like water”

the rock represents resistance



Kanban should be like water*

* http://joecampbell.wordpress.com/2009/05/13/be-like-water/



Principles behind the Kanban Method



6 Practices Enable Process Evolution

The Kanban Method

VisualizeLimit Work-in-progressManage FlowMake Policies ExplicitImplement Feedback LoopsImprove Collaboratively, Evolve Experimentally

(using models & the scientific method)



Start with what you do now



Fitness criteria are metrics that measure observable external outcomes



Validate Fitness Criteria with real customers



Which system is fitter?

5 10 15 20 25 30 40 45 55 65 More02468

101214

System A

Frequency

Lead Time (Days)

5 10 15 20 25 30 More0

5

10

15

20

25

30

System B

Frequency

Lead Time in Days

Mean 17 days Mean 12 days



Measuring delivery against expectation

5 10 15 20 25 30 40 45 55 65 More02468

101214

System A

Frequency

Lead Time (Days)

-25 -20 -5 0 5 10 20 30 35 40 More0

2

4

6

8

10

12

System A

Frequency

Lead Time Expectation Spread (Days)

5 10 15 20 25 30 More0

5

10

15

20

25

30

System B

Frequency

Lead Time in Days

-15 -10 -5 0 5 10 15 20 More05

1015202530354045

System B

Frequency

Lead Time Expectation Spread (Days)

Mean 17 days Mean 12 days

System B is clearly fitter!

System B delivers 5/7 within expectationsSystem A only delivers 3/7 within expectations



Business Risks, Fitness Criteria & Classes of Service should all align



Evolutionary change has no defined end point

EvolvingProcess

Rollforward

Rollback

InitialProcess

Future process is emergent

EvaluateFitness

EvaluateFitness

EvaluateFitness

EvaluateFitness

EvaluateFitness

We don’t know the end-point but we do know our emergent

process is fitter!



Institutionalize feedback systems to enable evolutionary change

OperationsReview

SystemCapability

Review

StandupMeetingmanager to subordinate(s)

(both 1-1 and 1-team)



Organizational Improvements Emerge



Disintermediate!Risks, fitness criteria & classes of

service should be explicit & transparent

OperationsReview

SystemCapability

Review

StandupMeeting

manager to subordinate(s) (both 1-1 and 1-team)

Expose risk, classes of service & fitness

criteria at all 3 levels of feedback

Lead timeQualityPredictability





Scaling KanbanEach Kanban System is designed from first principles around a service provided

Scale out in a service-oriented fashion

Do not attempt to design a grand solution at enterprise scale

The Kanban Kata are essential!

Allow a better system of systems to emerge over time



Scaled-out multiple kanban systems with feedback loops & model-driven

improvementBenefits

Cultural shift(across whole business)

Managers ManagingEmpowerment

AutonomyContinuous

ImprovementViral Spread



Know why you are using a metric!



Thank you!



Upcoming Training in Scandinavia

3-day Kanban Coaching Professional MasterclassStockholm 20-22 Novemberhttp://djaa.com/david-anderson-6

2-day Advanced PractitionerOslo 10-11 February, 2014Copenhagen 12-13 February, 2014(email me for details)


http://djaa.com/david-anderson-6

http://djaa.com/david-anderson-6


About

David Anderson is a thought leader in managing effective software teams. He leads a training, consulting, publishing and event planning business dedicated to developing, promoting and implementing sustainable evolutionary…He has 30 years experience in the high technology industry starting with computer games in the early 1980’s. He has led software teams delivering superior productivity and quality using innovative agile methods at large companies such as Sprint and Motorola.David is the pioneer of the Kanban Method an agile and evolutionary approach to change. His latest book, published in June 2012, is, Lessons in Agile Management – On the Road to Kanban.David is the leader of Lean Kanban Inc., a management training business dedicated to offering high quality management training for creative knowledge worker industries throughout the world.



Joe Campbell first blogged about the similarity in philosophy between the Kanban Method and the teachings of Bruce Lee. He coined the phrase “Kanban should be like water”.

The data on slides 52 & 53 was provided by Raymond Keating of CME Group.

Kanban’s 3 Agendas has been a collaboration with Mike Burrows with input from Kurt Hausler, Markus Andrezak & Andy Carmichael

The succinct summary of Kanban’s approach to scaling is borrowed from Andy Carmichael’s “Shortest Possible Definition of Kanban”

Acknowledgements


