This document contains the presentation slides from Janice Linden-Reed's talk at the 2014 Silicon Valley Agile Leadership Network on the topic of "What's New with Kanban?". The presentation discusses Kanban myths, definitions of Kanban, Kanban values and principles, levels of implementing Kanban, and using Kanban to balance demand and capability. It aims to provide an overview of Kanban concepts and how organizations can use Kanban.
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"Whats New in Kanban: The State of Kanbanland", Silicon Valley Agile Leadership Network, March 2014
1. 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
2. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
Hello!
@JLINDENREED
JANICE@LEANKANBAN.COM
• Janice Linden-Reed
Seattle, WA
3. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
• Management Consulting
• Private and Public LKU
Certified Kanban Training
• Including:
• Kanban Coaching
Professional Masterclass
• LKU Train the Trainer
www.DJAA.com
4. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
• Spanish
• Portuguese
• German
• French
• Chinese
• Japanese
• Bulgarian
• Polish
6. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, 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
7. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
• 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
12. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
Kanban is not
• …a board on the wall
• … “no iterations”
• … “no estimation”
• …only for Ops teams
• …only for software/IT
• …a methodology
13. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
Kanban is not a methodology!
• SCRUM vs KANBAN? (Scrumban?)
• XP vs KANBAN? (Xanpan?)
• WATERFALL vs KANBAN?
• “vs”, “instead of”, “replace”, “choose”
KANBANIZE it!
15. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
• 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
16. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
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
31. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
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
32. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
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
44. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
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
45. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
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 BALANCECOLLABORATION
46. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
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 LEADERSHIPCUSTOMER FOCUS
47. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
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 RESPECTUNDERSTANDING
49. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
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. “
50. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
Kanban Flight Levels • Organizational unit,
uncoordinated input
51. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
Kanban Flight Levels • Organizational unit,
coordinated input
52. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
Kanban Flight Levels
• Value stream: Providing a
service in a coordinated way
53. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
Kanban Flight Levels
• “The performance of a system is not
the sum of its parts but the product
of its interactions” – Russell Ackoff
56. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
Economically balance
capability against demand
Goals for using Kanban
60. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
Kanban is
encouraging
collaborative
conversations with
other stakeholders
to open up options
for improvement
over here
62. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
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?
63. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
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
64. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
Cost of Delay
What happens if you DON’T do the work?
Informs:
…Class of Service…
…Allocation…
…Policy…
65. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
The psychology of a probabilistic approach can be
challenging…
ChangeRequests
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!
66. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
Classes of Service Help Improve Trust
Done
F
E
I
Engin-
eering
Ready
Deploy-
ment
Ready
G
D
GY
PB
MN
2 ∞
P1
AB
Ongoing
Development Testing
Done Verification Acceptance
3 3
Expedite 1
3
Fixed
Date
Standard
Intangible
2
1
DE
69. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
Test
Ready
Flow Efficiency
F
E
I
G
D
GY
PB
DE MN
P1
AB
Customer Lead Time
Waiting Waiting WaitingWorking
Ideas
Dev
Ready
5
Ongoing
Development Testing
Done
3 35
UAT
Release
Ready
∞ ∞
Working WaitingWorking
70. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
Test
Ready
Flow Efficiency
F
E
I
G
D
GY
PB
DE MN
P1
AB
Customer Lead Time
Waiting Waiting WaitingWorking
* Zsolt Fabok, Lean Agile Scotland, Sep 2012, Lean Kanban France, Oct 2012
** Hakan Forss, Lean Kanban France, Oct 2013
Ideas
Dev
Ready
5
Ongoing
Development Testing
Done
3 35
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 WaitingWorking
71. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
Available options
Capacity Allocation
Policies
WIP Limits, Flow, Flow
Efficiency, Focus on
sources of delay
73. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
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
75. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
A
Proposed Projects
B
D
E
F
K
H
G
Projects-in-progress
Horizontal position shows percentage complete
Complete
0%
Complete
100%
C
Simple Portfolio Kanban
J
I
M
N
O
L
Tickets represent Projects,
MVPs or MMFs
76. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
A
Cash Cows
10% budget
Growth Markets
60% budget
Innovative/New
30% budget
Allocation of personnel
Total = 100%
B
D
E
F
K
H
G
Projects-in-progress
Horizontal position shows percentage complete
Complete
0%
Complete
100%
C
Color may indicate
cost of delay (or other risk)
Hedging Risk in a Portfolio Kanban
Size of ticket indicates
budget
78. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
Kanban at Scale
AMDOCS - Israel
WSIB - Canada
PINGAN - China
PETROBRAS – Brazil
SANDVIK IT - Sweden
SIEMANS Health Svcs - USA
79. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
Treat each service separately
Demand
Observed
Capability
Demand
Demand
Observed
Capability
Observed
Capability
80. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
Some systems have dependencies on others
Demand
Observed
Capability
Demand
Demand
Observed
Capability
Observed
Capability
81. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
Some systems have dependencies on others
Demand
Observed
Capability
Demand
Demand
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
82. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
Kanban at Scale • Christophe Achouiantz, KCP
• Borlange, Sweden
Introducing Kanban to 50+ teams at Sandvik IT
83. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
Kanban at Scale • Christophe Achouiantz, KCP
• Borlange, Sweden
87. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
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
88. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
Real Options
Options have value.
Options expire.
Never commit early unless you
know why.
89. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
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
90. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
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…
91. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
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
93. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
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
94. janice@leankanban.com @jlindenreed Silicon Valley Agile Leadership Network 2014, Copyright Lean Kanban Inc.
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