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Enterprise Services Planning with Kanban Feb 18 th , 2015 Brought to you by:

Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

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Page 1: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

Enterprise Services Planningwith Kanban

Feb 18th, 2015

Brought to you by:

Page 2: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

Agenda:

Introductions A Quick word from the Sponsor Enterprise Services Planning with Kanban Audience Q&A

Page 3: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

Some Housekeeping

Questions will be taken via Q&A box. Please enter your question in the Q&A box on the right side of your screen.

Questions will be taken grouped by topic in the order received

The webinar will be recorded. Slides and the recording will be made available after the meeting.

Page 4: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

Introductions

David Anderson CEO, DJ

Anderson & Associates

Mahesh Singh Co-founder, SVP –

Product, Digité/ SwiftKanban

Today’s Speaker

Your Host

Page 5: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

David Anderson

David Anderson is a thought leader and pioneer in the field of Lean/ Kanban for Software Development and managing effective software teams. He has over 25 years experience in the software industry starting with computer games in the early 1980’s. He has led software teams delivering great productivity and quality using innovative agile methods.

David has written 3 books, Agile Management for Software Engineering – Applying the Theory of Constraints for Business Results, and Kanban – Successful Evolutionary Change for your Technology Business. His latest book is Lessons in Agile Management.

David is of course the Chairman of LeanKanban, Inc. LeanKanban Inc. licenses trainers and training materials and organizes events around the world to promote adoption and high quality understanding of the Kanban Method and Enterprise Services Planning.

Last but not the least, David is an Advisor to Digité, Inc. and consults with us for overall product strategy, especially in the area of Lean/ Kanban.

Page 6: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

Quick word from the Sponsor!

Digité, Inc. - Pioneer in Web-based Collaborative Products/ Solutions for Geographically Distributed Teams

Headquartered in Cupertino, CA Over 300,000 users in the Americas,

Europe, Asia/ Pacific Products that cover Lean/ Kanban, Agile

ALM, Project/ Portfolio Management SwiftKanban is our flagship Lean/ Kanban

product

Page 7: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

SwiftKanban Visual Management – Software Development

Page 8: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

SwiftKanban Visual Management – Marketing

Page 9: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

SwiftKanban Visual Management – Planning the Thanksgiving Party!

Page 10: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

SwiftKanban - Analytics

Page 12: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

Over to David ….

Page 13: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @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

Page 14: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

Lean Kanban North America 2015 conference

Page 15: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

Kanban Coaching Professional Masterclass

Page 16: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

Page 17: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @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

Page 18: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

Conclusion

Kanban is good for service delivery

Page 19: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @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

Page 20: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @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

Page 21: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

Conclusion

The Kanban Method is a management system for

cultural change & improving organizational maturity

Page 22: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @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

Page 23: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

Conclusion

We need software to get good metrics easily and amplify the management value of Kanban

Page 24: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @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 requirements

Introduces hybrid of dedicated teams and floating project personnel using avatars

• Specialists such as architects, UX

• Generalists who can help any team

Page 25: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @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.

Page 26: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @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

Page 27: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

Kanban has 3 approaches to scaling

Page 28: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

The Kanban Lens

Page 29: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

Treat each service separatelyD

em

and

ObservedCapability

Dem

and

Dem

and

ObservedCapability

ObservedCapability

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

Page 30: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

Anticipating Demand, Allocating CapacityD

em

and

ObservedCapability

Dem

and

Dem

and

ObservedCapability

ObservedCapability

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 withoverall system capability

Page 31: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

Scale-free understandingEliminating 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

Page 32: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

• Becoming Data-Driven• Objective Retrospectives• Forecasting• Enterprise Kanban & Lean Startup• Scrumban• Kanban Coaching• Blockers for Improvement• RBS Project Sizing• Kanban Academic Research …

Page 33: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

Kanban Coaching Professional Masterclass

Page 34: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

Page 35: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

Enterprise Services PlanningEnterprise 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 …

Page 36: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

Lean Kanban Training RoadmapThe

KanbanMethod(2 days)

Intro toKanban(1 day)

Ready Trained

GettingStarted

with Kanban(2 days)

Enterprise Services Planning(5 days)

Ready Trained Ready Trained Ready Training Trained

Train the Trainer (5 days)Read

yTrained Qualified

Coaching Masterclass (5 days)Read

yTrained Qualified

KMP

KMP

KMP

KMP

KMP

KMP

Kanban Proficiency

Page 37: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

Page 38: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

Page 39: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @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”

Page 40: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @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

Page 41: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

ESP Training Modules

Page 42: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

Beta test special offer

Page 43: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

Scheduling

Page 44: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

When should we start something?

imp

act

When we need it

85th percentile

Ideal StartHere

Commitment point

timeJan10

Nov11

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

Page 45: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

We can study sensitivity to different start dates

imp

act

When we need it

50th percentile

Later StartHere

Commitment point

timeJan10

Nov25

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

Page 46: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

What is the latest we could start?

imp

act

When we need it

0th percentile

Very latestart

Commitment point

timeJan10

Dec19

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

Page 47: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

To be certain of delivery without incurring any cost of delay is expensive

imp

act

When we need it

98th percentile

Early Start

Commitment point

timeJan10

Aug11

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!!!

Page 48: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

Window of opportunity

imp

act

When we need it

Earliest Start

timeJan10

Aug11

Latest viable

start

Dec19

Optimal Start

Nov11

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.

Page 49: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

Lead time is perhaps the most important metric we gain from

kanban systemsLead time coupled with cost of

delay sensitivity analysis is a key enabler of deferred commitment and consensus on when to make

commitments

Lesson

Page 50: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

We need tools!

Page 51: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

Tools will facilitate decision making

Page 52: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

Enterprise Services Planning“The Future of Kanban”

Page 53: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

Kanban experience reports

app and mobile development

Including…

Page 54: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

Kanban Coaching Professional Masterclass

Page 55: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

Thank you!

Page 56: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @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.”

Page 57: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

[email protected] @leankanbanu Copyright Lean Kanban Inc.

Page 58: Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

Q&A

Please ask a question using the Q&A Box on the right side of your screens.

Host will ask questions in the sequence in which question is received.

Thank you for your help and cooperation!!