"Whats New in Kanban: The State of Kanbanland", Silicon Valley Agile Leadership Network, March 2014

janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.

Presenter Janice Linden-Reed

VP, David J Anderson and Associates Inc.

Silicon Valley ALN

Mountain View, CA March 2014

What’s New with Kanban? The State of KanbanLand

Hello!

@JLINDENREED

JANICE@LEANKANBAN.COM

• Janice Linden-Reed Seattle, WA

• Management Consulting

• Private and Public LKU Certified Kanban Training

• Including:

• Kanban Coaching Professional Masterclass

• LKU Train the Trainer

www.DJAA.com

• Spanish

• Portuguese

• German

• French

• Chinese

• Japanese

• Bulgarian

• Polish

Limited WIP Society

1000+ members LimitedWipSociety.org

Moving the conversation away from process improvement and towards management and decision frameworks

conf.leankanban.com edu.leankanban.com

leankanban.com

• Curriculum based on the Kanban

Method

• Classes

• Introductory (1 day)

• Foundations (2 day: Getting Started)

• Advanced Practitioner (2 day:

Practicing Kanban at Scale)

• Kanban Coaching Professional

Masterclass (3-5 day)

• LKU Train the Trainer (5 day)

Edu.LeanKanban.com

LKU Accredited Kanban Trainers

WHAT IS KANBAN?

KANBAN MYTHS

Kanban Myths • Frank Vega, KCP

Denver, CO

Kanban is not

• …a board on the wall

• … “no iterations”

• … “no estimation”

• …only for Ops teams

• …only for software/IT

• …a methodology

Kanban is not a methodology!

• SCRUM vs KANBAN? (Scrumban?)

• XP vs KANBAN? (Xanpan?)

• WATERFALL vs KANBAN?

• “vs”, “instead of”, “replace”, “choose”

KANBANIZE it!

WHAT IS KANBAN?

THE KANBAN METHOD

• Principles

• Start with what you do now

• Agree to pursue evolutionary change

• Initially keep job titles and roles the same

• Encourage acts of leadership at all levels

David J Anderson

The Kanban Method

Power in Simplicity

• Practices

• Visualize

• Limit WIP

• Manage Flow

• Make Process Policies Explicit

• Implement Feedback Loops

• Improve collaboratively and evolve experimentally

using models and the scientific method

The Kanban Method

WHY USE KANBAN?

KANBAN VALUES

Kanban Values

• Mike Burrows, AKT • Matlock Bath, UK

Kanban Values

ARE YOU REALLY DOING KANBAN?

DEPTH OF KANBAN

Depth of Kanban

1. Visualize

2. Limit Work-in-Progress

3. Manage Flow

4. Make Process Policies

Explicit

5. Improve Collaboratively (using models & scientific method)

Shallow

But wait…

Depth of Kanban

• Bernadette Dario, KCP Toronto, Canada

Depth of Kanban

THE CULTURE OF KANBAN

EVOLUTIONARY CHANGE

Kanban for Evolutionary Change

• Kanban is the humane, start with what you

do now approach to change.

• “The Kanban Method is an evolutionary

approach to building learning organizations.”

– Mike Burrows

Kanban for Evolutionary Change

• “Kanban delivers evolutionary change, by the workers,

for the benefit of the whole system.”

• “Kanban is about installing an adaptive capability in

your organization, about taking a management led

approach to cultural change. Every knowledge worker is

a manager.”

– David J Anderson

FEEDBACK LOOPS AND EVOLUTIONARY CHANGE

KANBAN KATA

• Håkan Forss, AKT Stockholm, Sweden

Kanban Kata

WHY AND HOW TO USE KANBAN?

KANBAN AGENDAS

Kanban Agendas

• Kanban does have its biases.

• As Kanban coaches we should be more willing

to embrace those biases and be more

transparent about them.

• Mike Burrows, AKT Matlock Bath, UK

Kanban Agendas

1) Sustainability

• Kanban adoption at the level of individuals and

teams, often motivated by the need for relief

from unsustainable practices and workloads.

• Achieving balance of demand and capability.

Limiting work in progress

• Interest: Individual contributors

TRANSPARENCY BALANCE COLLABORATION

Kanban Agendas

2) Service Orientation

• Improve service delivery by taking variability out of the process and improving predictability and lead times.

• Customers value delivery time, quality, predictability and safety. Is your organization fit for purpose?

• Interest: middle managers

FLOW LEADERSHIP CUSTOMER FOCUS

Kanban Agendas

3) Survivability

• The Kanban Method's feedback loops and model-driven improvement provide an adaptive capability. Hence, together the adaptive capability and the fitness evaluation give a business the capability to survive and thrive even in the presence of a rapidly changing external environment.

• Evolutionary approach; successful change management

• Interest: executives

AGREEMENT RESPECT UNDERSTANDING

KANBAN IN CONTEXT

KANBAN FLIGHT LEVELS

Kanban Flight Levels

• Klaus Leopold, AKT Vienna, Austria

“Before you start with Kanban it is important to decide where you want to embed it in the overall organizational context. Introducing Kanban on each flight level requires different change management skills. “

Kanban Flight Levels • Organizational unit,

uncoordinated input

• Organizational unit,

coordinated input

• Value stream: Providing a

service in a coordinated way

• “The performance of a system is not

the sum of its parts but the product

of its interactions” – Russell Ackoff

• Portfolio

WHY USE KANBAN?

BALANCE DEMAND & CAPABILITY

Economically balance capability against demand

Goals for using Kanban

Available options

Risk Management is an Enabling Capability…

Most process geeks & IT managers are operating over here

Kanban is encouraging

collaborative conversations with other stakeholders to open up options

for improvement over here

Example: Shape the Demand

Case Study: an HR team

• Vacation request

• Payroll Management

• New employee setup

(computer/accounts)

• Recruitment/Interviews

• Performance reviews

• Employee training

• Benefits administration

• Which is seasonal?

• What is the cadence?

• What is the delivery

expectation?

• What policies can you

set up?

• How can you group

the work?

Case Study: an HR team

• Vacation request

• Payroll Management

• New employee setup

(computer/accounts)

• Recruitment/Interviews

• Performance reviews

• Employee training

• Benefits administration

FIXED DATE

STANDARD

INTANGIBLE

EXPEDITE

Cost of Delay

What happens if you DON’T do the work?

Informs: …Class of Service…

…Allocation… …Policy…

The psychology of a probabilistic approach can be challenging…

Change

85% at 60 days

Mean 50 days

98% at 150 days

I don’t want to take the risk of being longer than 60 days. I need a precise estimate of when it will

be delivered!

Classes of Service Help Improve Trust

Engin- eering Ready

Deploy-ment Ready

Ongoing

Development Testing

Done Verification Acceptance 3 3

Expedite 1

Fixed Date

Standard

Intangible

IMPROVING DELIVERY CAPABILITY:

FLOW EFFICIENCY

Available options

Test Ready

Flow Efficiency

Customer Lead Time

Waiting Waiting Waiting Working

Ideas Dev

5 Ongoing

Development Testing

UAT Release Ready

∞ ∞

Working Waiting Working

Test Ready

Flow Efficiency

Customer Lead Time

Waiting Waiting Waiting Working

* Zsolt Fabok, Lean Agile Scotland, Sep 2012, Lean Kanban France, Oct 2012 ** Hakan Forss, Lean Kanban France, Oct 2013

Ideas Dev

5 Ongoing

Development Testing

UAT Release Ready

∞ ∞

Flow efficiency measures the percentage of total lead time is spent actually adding value (or

knowledge) versus waiting

Flow efficiency % = Work Time x 100%

Lead Time Flow efficiencies of 1-5% are commonly reported. *, **

> 40% is good! Multitasking means time spent in working columns is often

waiting time

Working Waiting Working

Available options Capacity Allocation

Policies

WIP Limits, Flow, Flow Efficiency, Focus on

sources of delay

SHAPE THE DEMAND

PORTFOLIO KANBAN

Portfolio Kanban

“If the wrong decisions are made on a portfolio level, efficiency on a team level doesn’t really help. What’s more, it can even be harmful because we just produce waste more efficiently. “

• Pawel Brodzinski, KCP Krakow, Poland

Portfolio Kanban

Proposed Projects

Projects-in-progress

Horizontal position shows percentage complete

Complete 0%

Complete 100%

Simple Portfolio Kanban

Tickets represent Projects, MVPs or MMFs

A Cash Cows 10% budget

Growth Markets 60% budget

Innovative/New 30% budget

Allocation of personnel Total = 100%

Projects-in-progress

Horizontal position shows percentage complete

Complete 0%

Complete 100%

Color may indicate cost of delay (or other risk)

Hedging Risk in a Portfolio Kanban

Size of ticket indicates budget

KANBAN AT SCALE

Kanban at Scale

AMDOCS - Israel

WSIB - Canada

PINGAN - China

PETROBRAS – Brazil

SANDVIK IT - Sweden

SIEMANS Health Svcs - USA

Treat each service separately

and Observed

Capability

Observed Capability

Some systems have dependencies on others

and Observed

Capability

Observed Capability

Some systems have dependencies on others

and Observed

Capability

Observed Capability

Looking downstream, you want the system to help you anticipate and

manage dependencies

Looking 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 with overall system capability

Kanban at Scale • Christophe Achouiantz, KCP • Borlange, Sweden

Introducing Kanban to 50+ teams at Sandvik IT

Kanban at Scale • Christophe Achouiantz, KCP • Borlange, Sweden

Kanban at Scale

COMPATIBLE MANAGEMENT METHODS

Probabilistic Forecasting

Beyond Budgeting

Measure success against competition, targeting external benchmarks, not against internal budget Delegate responsibility to operational managers with means to act independently Customer-oriented teams are responsible for satisfied and profitable customers

Real Options

Options have value. Options expire. Never commit early unless you know why.

Making Better Decisions in the Face of Complexity & Uncertainty

S A N F R A N C I S C O

May 5-8, 2014

LKNA.LeanKanban.com #lkna14 @LeanKanbanNA

Kanban Lean Startup Beyond Budgeting Managing Risk

Lean Applied Evolving Product Management

Lean Kanban North America 2014 May 5-8 4 KEYNOTES

6 TRACKS 24 INTERACTIVE WORKSHOPS

BRICKELL KEY AWARDS ASK A KCP

GAMES LOUNGE Kanban Beyond Budgeting Lean Startup Lean Applied Managing Risk Evolving Product Management Plus: Real Options Kanban and CMMI Innovation Accounting…

Making Better Decisions in the Face of Complexity & Uncertainty

S A N F R A N C I S C O

May 5-8, 2014

LKNA.LeanKanban.com #lkna14 @LeanKanbanNA

Kanban Lean Startup Beyond Budgeting Managing Risk

Lean Applied Evolving Product Management

Resources

• Kanban Myths • http://www.vissinc.com/2013/11/12/kanban-method-myths-and-

misconceptions/

• Depth of Kanban • http://www.djaa.com/sites/ltdwip/DepthOfKanban.pdf

• Kanban Values • http://positiveincline.com/index.php/2013/01/introducing-kanban-through-its-

values/

• Kanban Agendas • http://www.infoq.com/author/Mike-Burrows

• Kanban Kata • https://vimeo.com/53406169

• Kanban Flight Levels • http://www.klausleopold.com/2013/07/kanban-and-its-flight-levels.html

• Portfolio Kanban • http://brodzinski.com/2013/03/portfolio-kanban-why-should-i-care.html

• Flow Efficiency • http://djaa.com/who-your-vice-president-delay

Resources

• Lean Kanban North America 2014 • http://lkna.leankanban.com

• Lean Kanban Conference Series • http://conf.leankanban.com/calendar

• Kanban Community • http://limitedwipsociety.ning.com/

• Certified Kanban Training Courses • http://edu.leankanban.com

• Kanban: Successful Evolutionary Change for your Technology Business

• http://www.djaa.com

• Kanban Kickstart Field Guide • http://leanagileprojects.blogspot.com/2013/04/the-kanban-kick-start-field-guide-

now.html

Resources

• Kanban Case Studies

• http://www.leankanban.com/case-studies

• http://www.infoq.com/articles/kanban-siemens-health-services

• http://www.infoq.com/articles/kanban-Sandvik-IT-1

• http://www.infoq.com/news/2013/12/flow-thinking-Ericsson

• http://www.infoq.com/news/2013/12/applying-kanban-SAP

• Kanban Reports

• Using Kanban to Manage Big Data Development

• https://www.gartner.com/doc/2116015/use-kanban-manage-big-data

• Lean Software Management at BBC Worldwide

• http://ieeexplore.ieee.org/xpl/login.jsp?tp=&arnumber=5741001

"Whats New in Kanban: The State of Kanbanland", Silicon Valley Agile Leadership Network, March 2014

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Transcript of "Whats New in Kanban: The State of Kanbanland", Silicon Valley Agile Leadership Network, March 2014

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