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Just say #no____ the altenative path to enterprise agility

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The Kanban Method & Enterprise Services Planning have, for a decade, offered an alternative to Agile methodologies for improving business agility across professional services organizations employing thousands of knowledge workers. This key note highlights why Kanban is the least disruptive approach to agility but the most radical alternative to Agile

Veröffentlicht in: Leadership & Management
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Just say #no____ the altenative path to enterprise agility

  1. 1. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Just Say #no_____ The Alternative Path to Enterprise Agility Presenter David J. Anderson Lean Kanban North America Washington D.C. May 2017
  2. 2. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja UK Wastes Billions Every Year On Failed Agile Projects http://www.itpro.co.uk/strategy/28581/uk-wastes-billions-every-year-on-failed-agile-projects “more than half of CIOs think the agile methodology is now discredited, while three quarters aren't prepared to defend it as a way of completing projects anymore. Additionally, half of CIOS think agile processes are just an IT fad”
  3. 3. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Kanban – the alternative path to agility
  4. 4. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Kanban It works for all professional services! It’s not just for software development or your IT department
  5. 5. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Kanban The least disruptive approach to enterprise agility, the most radical alternative to Agile
  6. 6. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Kanban #noRevolutionaryChange #noEstimates #noIterations #noPlanning #noPrioritization #noBacklogGrooming #noDependencyManagement #noCrossFunctionalTeams
  7. 7. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Kanban “This is going to scare the living daylights out of the Agile community”, Rachel Davies (March 2008)
  8. 8. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Kanban at Microsoft 2005 Virtual Kanban “pull” system – No visual boards! 230% productivity improvement 91% reduction in average lead time On-time performance up from 0% to 98% Time frame – 15 months Cost – almost nothing, no coaching fees, no training, no consultants, 2 permanent team members added mid-transformation taking productivity from 150% improvement to 230% improvement
  9. 9. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Kanban at Hewlett-Packard 2006 Virtual Kanban “pull” system – no visual boards! 700% productivity improvement! Lead time on new generation of laser printer firmware dropped from 21 months to 3.5 months 4.5 day working week Timeframe – less than 1 year Cost – almost nothing – no coaches, no training, no consultants
  10. 10. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja China 3 Chinese companies have “very large scale” Kanban implementations  Huawei – Telecoms & electronics – 5000+ people (in 2017 scaling to 98,000)  Ping An – Insurance & banking – 5000+ people  CMB – Banking – 3000+ people Meanwhile in Europe…  Large scale has been seen at Ericsson, Skania, Siemens, Rolls-Royce, BBVA, Odigeo (eDreams, Opodo) and others
  11. 11. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Return on Investment Implementations at Huawei, Ping An & CMB have each cost around the equivalent of 3 full time employees salaries Huawei are seeing improvements in productivity in the range of 10-50% with an average of 25% across more than 10 product units Improvements at Huawei are the equivalent of 1250 engineers they didn’t need to hire Return on investment is 300->400:1 or >30,000%
  12. 12. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Kanban is much cheaper to implement At one of the Chinese companies mentioned earlier, Kanban is costing just 1/150th of the cost of Scrum on a per employee basis Scrum is requiring 1 coach for every 12-14 employees and is struggling to institutionalize Kanban cost just 200 training & coaching days to completely institutionalize across several thousand people in 5 cities across China
  13. 13. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja No Harm! While there have been failed Kanban implementations, there are no stories of Kanban doing harm to organizations Unlike some Agile methods and other management fads such as Holacracy, there are no stories of Kanban causing 20%-40% staff turnover or inflicting brutal and cruel change There has been tribal, emotional push back in organizations where Agile is a religion
  14. 14. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Is Agile too tribal? Is the tribal nature of the Agile community holding back adoption of better, simpler and more effective means of improving agility? Is it about “being Agile” rather than delivering business agility? And why would Kanban be so scary for Agilists? Does it obviate the need for many of their tribal rituals and superstitious practices?
  15. 15. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Just how radical is Kanban?
  16. 16. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja #noRevolutionaryChange
  17. 17. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Traditional Change is an A to B process A is where you are now. B is a destination.  B is either defined (from a methodology definition)  or designed (by tailoring a framework or using a model based approach such as VSM* or TOC TP**) To get from A to B, a change agency*** will guide a transition initiative to install B into the organization ***either an internal process group or external consultants Current Process Future Process Defined Designed transition * Value stream mapping, ** Theory of Constraints Thinking Processes
  18. 18. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja What change really feels like: The J Curve
  19. 19. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja What change really feels like: The J Curve Safety!
  20. 20. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja What change really feels like: The J Curve Patience!
  21. 21. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja The Kanban Method Change Management Principles 1. Start with what you do now  Understanding current processes, as actually practiced  Respecting existing roles, responsibilities & job titles 2. Gain agreement to pursue improvement through evolutionary change 3. Encourage acts of leadership at all levels
  22. 22. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Evolutionary change has no defined end point Evolving Process Roll forward Roll back Initial Process Future process is emergent Evaluate Fitness Evaluate Fitness Evaluate Fitness Evaluate Fitness Evaluate Fitness We don’t know the end-point but we do know our emergent process is fitter!
  23. 23. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Strategy Review Risk Review Monthly Service Delivery Review Bi-WeeklyQuarterly Kanban Meeting Daily Operations Review Monthly Replenishment/ Commitment Meeting Weekly Delivery Planning Meeting Per delivery cadence change change change change change change change change change info info info info info info info info info change info Kanban Cadences
  24. 24. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Fitness Time Evolutionary change with many small J’s
  25. 25. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Punctuated Equilibrium Punctuation Points • Financial crisis, regulatory changes, political changes, merger, acquisition, divestiture, split, IPO, outsourcing, CEO change, key man exit, reorganization, arrival of a disruptive innovation/insurgents in your market • Easy to insert change • First 100 days • Honeymoon period, blame predecessor Periods of Equilibrium • Need emotional motivation for change • Immersive experiential learning • New species competes for fitness in existing environment • Grey squirrel, red squirrel • Galapagos Island Effect • Isolation strategy • Innovator’s Solution
  26. 26. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja #noEstimates
  27. 27. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Don’t speculate about the future, study historical trends Do you manage your business on speculation, superstition and socially engineered heroics? Or do you use facts, objectivity and science to make decisions?
  28. 28. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Lead Time & Weibull Distributions Lead time histograms observed to be Weibull distributions typically with shape parameter 1.0 < k < 2.0 The details of the mathematics are not particularly important. What is important is to recognize that the risk is always in the tail and the length of the tail varies from 2x – 10x from the mode in the data
  29. 29. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja ChangeRequests SLA (customer expectation or fitness criteria) 60 days Use Lead Time Distribution to Evaluate Service Delivery Effectiveness 22-150 day spread of variation 85% on-time 15% late Due Date Performance (DDP) Predictability
  30. 30. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Delivery Rate Lead Time WIP = Avg. Lead Time Avg. Delivery RateWIP Backlog Ready To Deploy Little’s Law
  31. 31. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Forecasting methods ESP relies on two types of forecasting approaches  Reference class forecasting  Monte Carlo simulation Reference class forecasting requires an assumption of an equilibrium – the near future will reflect the continuing conditions of the recent past  We sample data from a period in the recent past and use it to forecast future behavior  The sample period is determined by evaluating the volatility in kanban system liquidity
  32. 32. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Digite Prod Dev (5 months) CME Nynex Dept “A” (2 months) CME Nynex Dept “B” (2 months) Daily transaction volume (“pulls”) Volatility (in pull transactions) Turbulence (or volatility(volatility)) Measuring Liquidity (of service delivery)
  33. 33. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Auto-detecting changes in volatility Liquidity daily pull tx volume & volatility are leading indicators of process health Periods of similar volatility used to select reference class forecasting data for Monte Carlo simulation (of project durations etc) Changes in volatility suggest changes with processes and risk with forecast dates Different volatility regimes can be detected using GARCH modeling
  34. 34. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Monte Carlo Simulation for Scope Forecasting
  35. 35. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja #noIterations
  36. 36. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Don’t artificially constrain work in timeboxes Most business domains do not naturally lend themselves to starting work, and completing it within synchronized time boxes Iterations (or Sprints) are a low capability crutch for software development teams with poor ability at configuration management and version control, and poor capability at coordination and decision making Most professional services work shouldn’t be organized in time boxed batches. It should be allowed to flow! The Tyranny of the Ever Decreasing Timebox is real  http://www.djaa.com/tyranny-ever-decreasing-timebox
  37. 37. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Test Ready F F FF F F F Replenishment Frequency EG D Replenishment Discarded I Pull Ideas Dev Ready 5 Ongoing Development Testing Done 3 35 UAT Release Ready ∞ ∞ The frequency of system replenishment should reflect arrival rate of new information and the transaction & coordination costs of holding a meeting Frequent replenishment provides more agility On-demand replenishment gives most agility!
  38. 38. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Test Ready F F FF F F F Delivery Frequency EG D Delivery Discarded I Pull The frequency of delivery should reflect the transaction & coordination costs of deployment plus costs & tolerance of customer to take delivery Ideas Dev Ready 5 Ongoing Development Testing Done 3 35 UAT Release Ready ∞ ∞ Frequent delivery gives more agility On-demand delivery gives most agility!
  39. 39. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja I Test Ready F N K M L J F Specific delivery commitment may be deferred even later until delivery planning E G D 2nd Commitment point* Discarded I Ideas Dev Ready 5 Ongoing Development Testing Done 3 35 UAT Delivery Ready ∞ ∞ We are now committing to a specific release date *This may happen earlier if circumstances demand it
  40. 40. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Test Ready F N K M L J F Forecast tickets completed for delivery E I G D Discarded I Ideas Dev Ready 5 Ongoing Development Testing Done 3 35 UAT Delivery Ready ∞ ∞ 100% confidence 70+% confidence
  41. 41. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Test Ready F N K M L J F Boost class of service on marginal tickets to ensure delivery E G D Discarded I Ideas Dev Ready 5 Ongoing Development Testing Done 3 35 UAT Delivery Ready ∞ ∞ 100% confidence Fixed date CoS provides 100% confidence I
  42. 42. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja #noPlanning
  43. 43. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Don’t plan the work, plan the ecosystem! Enterprise Services Planning involves designing a system of (kanban) systems Design and evolve your systems to deliver the outcomes you want, need or expect Plan the services! Plan the risk assessment framework! Plan the selection policies! Plan the classes of service! Plan how decisions are made and how things will be treated! Plan your policies! Don’t plan individual work orders
  44. 44. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Seeing Services Learn to view what you do now as a set of services (that can be improved):  Service-orientation Paradigm… • Creative & knowledge work is service-oriented • Services have a requestor who both requests a product or service and accepts or acknowledges delivery of the finished item or condition • Service delivery may involve workflow • Workflow involves a series of knowledge discovery activities • The way in which a request is treated defines its class of service
  45. 45. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Defining Enterprise Services Learn to make existing service delivery workflows explicit:  Defining a service • Identify the requestor & the service delivery person/team/workflow • Does someone play the role of service delivery manager? • Is the service “shared” across several requestors? • Does someone play the role of service request manager? • What is it that is requested? • Understand the volume and pattern for arrival of requests • Map the knowledge discovery workflow for each type of request • Understand the way requests are treated with respect to queuing, selection, capacity allocation, and quality
  46. 46. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Treat each service separately Demand Observed Capability Demand Demand Observed Capability Observed Capability
  47. 47. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja STATIK (Systems Thinking Approach to Introducing Kanban) 1. Understand what makes the service “fit for purpose” 2. Understand sources of dissatisfaction regarding current delivery 3. Analyze sources of and nature of demand 4. Analyze current delivery capability 5. Model the service delivery workflow 6. Identify & define classes of service 7. Design the kanban system 8. Socialize design & negotiate implementation This process tends to be iterative Identify Services. For each service…
  48. 48. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja The Kanban Method Scaling Principles 1. Scale out in a service-oriented fashion one service at a time 2. Design each kanban system from first principles using STATIK. Do not attempt to design a grand solution at enterprise scale 3. Use the Kanban Cadences as the management system that enable balance, leading to better enterprise services delivery
  49. 49. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Organizational Improvements Emerge
  50. 50. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Reserved Capacity & Dynamic Reservation Systems Calling Service Called Service Scheduling Reservation “Defn of Ready” may require confirmed booking on called service
  51. 51. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja #noPrioritization
  52. 52. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja What does “priority” even mean? Prioritization is an activity to set priorities for work items What does “priority” mean?  A position in a queue or sequence?  A class of service guiding selection from a set of options?  An indication of when to schedule an item?
  53. 53. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Don’t Prioritize, Select Dynamically Understand when to schedule an item based on its cost of delay Set its class of service based on cost of delay Select dynamically from a set of options based on cost of delay When you understand how to assess cost of delay you no longer need to prioritize (and re-prioritize) Make the cost of delay transparent, visualize the risks, enable dynamic selection
  54. 54. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Visualize Risks to provide Scheduling Information TS Market Risk CR Spoil Diff Lifecycle Cost of Delay Tech Risk Delay Impact New Mid Cow Expedite FD Std Intangible ELE Maj. Cap. Disc Unknown Soln Known but not us Done it before Commodity Risk profile for a work item or project Outside: Commit Early Inside: Commit Late
  55. 55. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Scheduling & Sequencing TS Market Risk CR Spoil Diff Lifecycle Cost of Delay Tech Risk Delay Impact New Mid Cow Expedite FD Std Intangible ELE Maj. Cap. Disc Unknown Soln Known but not us Done it before Commodity Sequence: 1st Sequence: 3rd Sequence: 2nd If only real life was so simple!
  56. 56. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Custom Profile Contains Narrative Our CEO has requested we do the blue project. Which one do we postpone? The purple project is important but can be delayed with little penalty.
  57. 57. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Scheduling using Cost of Delay
  58. 58. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja #noBacklogGrooming
  59. 59. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Leave your backlogs ungroomed! Make selections by filtering!
  60. 60. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Visualize Risks to provide Scheduling Information TS Market Risk CR Spoil Diff Lifecycle Cost of Delay Tech Risk Delay Impact New Mid Cow Expedite FD Std Intangible ELE Maj. Cap. Disc Unknown Soln Known but not us Done it before Commodity Risk profile for a work item or project Outside: Commit Early Inside: Commit Late
  61. 61. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Demand Shaping – picking the right things Dimension 1 Dimension 2 Dimension 3 Dimension 5 Dimension 4 Definitely Do This Demand shaping threshold Talk about this one Definitely Don’t This
  62. 62. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja SwiftKanban ESP implements Risk Profiling & Demand Shaping to Manage Large “Backlogs”
  63. 63. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja #noDependencyManagement
  64. 64. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Cost of Delay informs Dependency Management When the cost of delay is small or there is sufficient time to start early then there is no need to manage dependencies explicitly. Let them emerge and manage them dynamically Where the cost of delay is greater introduce a dynamic reservation system using different classes of service to reserve capacity on dependent services
  65. 65. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Reservation systems First reported by Sami Honkonen, “Scheduling Work in a Kanban” November 2011 http://www.samihonkonen.com/wp-content/uploads/2011/11/scheduling-work-in-kanban.pdf
  66. 66. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Class 1 No Dependency Management Calling Service Called Service We Don’t Care! No WIP limits Dependency impact is built into customer lead time distribution. We start early enough & cost of delay is low enough that we don’t need to explicitly manage the dependency
  67. 67. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Class 2 Tail Risk Mitigation. Reserved Capacity Calling Service Called Service WIP limits [5] [2] We wish to mitigate the tail risk in the customer facing lead time by insuring dependency delivery is predictable & reliable as a consequence of reserved capacity on the called service
  68. 68. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Class 3 Known Dependency. Informed Scheduling Calling Service Called Service Reservation system [5] [2] Filtered lead time “Reserved” Class Booking Dependency Analysis Determine the dependency exists, make a reservation for it to insure capacity on the called service when we need it!
  69. 69. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Class 4 Known dependency. Specific Scheduling Calling Service Called Service Reservation system “Reserved” “Guaranteed” Class Booking “Defn of Ready” requires confirmed booking on called service We want a high confidence in the start time for customer lead time. We take no risk on dependent capacity becoming available
  70. 70. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Class 5 No margin for error Calling Service Called Service “Guaranteed” “Guaranteed” Class Booking “Defn of Ready” requires confirmed “Guaranteed” booking on called service No margin for error! We want 100% confidence in the start time for customer lead time and no risk on dependent capacity availability
  71. 71. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Multiple Reservations Cost of delay (and other risk assessment) can be used to establish, optimal start, and whether earlier or later is preferred if optimal isn’t available Make multiple bookings at lower classes of service “reserved”, or “standby” for the same item. If it shows up early and capacity is available start it, cancel its other reservations “Guaranteed” “Reserved” “Stand by” 3 bookings for same ticket
  72. 72. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja #noCrossFunctionalTeams
  73. 73. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Don’t reorganize. Make the existing organizational structure work better – provide transparency, create “Einheit” Kanban doesn’t share the cross functional team agenda of Agile methods If you have cross functional teams, then we’ll start with what you do now If you don’t have cross functional teams, then we’ll start with what you do now Don’t reorganize http://leankanban.com/kanban-does-not-share-your-agile-cross-functional-team-agenda/
  74. 74. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Seeing Services Learn to view what you do now as a set of services (that can be improved):  Service-orientation Paradigm… • Creative & knowledge work is service-oriented • Services have a requestor who both requests a product or service and accepts or acknowledges delivery of the finished item or condition • Service delivery may involve workflow • Workflow involves a series of knowledge discovery activities • The way in which a request is treated defines its class of service
  75. 75. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Treat each service separately Demand Observed Capability Demand Demand Observed Capability Observed Capability
  76. 76. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Organizational Improvements Emerge
  77. 77. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Kanban improves “Einheit” Kanban provides a simple means to improve unity and alignment  Transparency onto who is the customer and why did they request something  Risk assessment Kanban provides a sense of purpose, enabling large groups of people across organizational units to collaborate towards a common goal Kanban turns a network of services into a team! No need to reorganize!
  78. 78. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Kanban facilitates geographical distribution No need for collocation Kanban, from its beginnings at Microsoft, enabled superior performance from geographically distributed organizations Transparency, sense of purpose, explicit risks, ease of tracking Kanban has low coordination costs even for distributed organizations
  79. 79. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Change Requests 3 1 Prod. Defects Maintenance Usability Improvement 2 1 Improving Liquidity through Labor Pool Flexibility Teams F E Engin- eering Ready G D GY PB DE MN 2 P1 AB Ongoing Analysis Testing Done Verification Acceptance 3 3 Ongoing Development Done 3 Joe Peter Steven Joann David Rhonda Brian Ashok Team Lead Junior who will be rotated through all 4 teams Generalist or T-shaped people who can move flexibly across rows on the board to keep work flowing It’s typical to see splits of fixed team workers versus flexible system workers of between 40-60% Roughly half the labor pool are flexible workers Promotions from junior team member to flexible worker with an avatar clearly visualize why a pay rise is justified. Flexible workers help manage liquidity risk better!
  80. 80. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja The Alternative Path to Enterprise Agility
  81. 81. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Kanban It works for all professional services! It’s not just for software development or your IT department
  82. 82. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Kanban The least disruptive approach to enterprise agility, the most radical alternative to Agile
  83. 83. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Kanban #noRevolutionaryChange #noEstimates #noIterations #noPlanning #noPrioritization #noBacklogGrooming #noDependencyManagement #noCrossFunctionalTeams
  84. 84. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Kanban “This is going to scare the living daylights out of the Agile community”, Rachel Davies (March 2008)
  85. 85. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja It’s not about #noVoodooRituals Kanban isn’t some anarchistic rage against the system. It isn’t anti-Agile! There are simple principles at work! If something is disruptive, painful, time-consuming and yields information of low value then consider stopping it altogether. Add it back when, and only when, risks suggest you need to pay attention to it. Plan at system design level. Plan your policies and decision frameworks Empower people with explicit policy. Enable high quality dynamic decision making
  86. 86. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja And finally… #noPrescriptiveProcessDefinitions Find your own path to agility!
  87. 87. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Thank you!
  88. 88. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja 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 the 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.”
  89. 89. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Screenshots of SwiftKanban ESP risk assessment framework and Scope Forecasting courtesy of Digite Acknowledgements
  90. 90. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Appendices
  91. 91. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja You are part of a professional services business! An ecosystem of professionals providing interdependent services, often with complex dependencies. Professional Service organizations build intangible goods
  92. 92. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja The challenge of professional services businesses A constantly changing external environment has a ripple effect across your entire business ecosystem Priorities change and required capability & service levels rise in response to competition, disruptive market innovation & changes in customer tastes
  93. 93. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Agility = Capability x Optionality Skills Experience Capacity # Options x Frequency of decision making
  94. 94. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Survivability = Agility x Adaptability Capability x Optionality Capability (to manage change) Frequency of change opportunitiesx Skills Experience Org maturity
  95. 95. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja Capability OptionalityAdaptability Agility Survivability Out-maneuvered Unfit for purpose
  96. 96. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja
  97. 97. Copyright Lean Kanban Inc.Email: dja@leankanban.com Twitter: @LKI_dja

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