kanban - an alternative path to agility (lean kanban southern europe 2014)

dja@leankanban.com @lkuceo Copyright Lean Kanban Inc.

Presents

PresenterDavid J. Anderson

Lean KanbanSouthern Europe

May 2014Release 1.0

Kanbanan alternative approach to agility

An Unconventional ApproachMay Be Required

Bruce Lee rejected traditional teaching and styles of Chinese martial arts

Monkey

Mantis

Kung Fu Panda simplified the art to only four styles

There are in fact very many styles…

“Dry land swimming” provides a false sense of capability

Jeet Kune Do

Using no way as way

Having no limitation as limitation

Jeet Kune Do encourages development of a uniquely personal style

"absorb that which is useful“

discard the remainder

Training with an opponent provides the core feedback loop to drive adaptation

Kata are not adaptive

Lee’s genius was recognizing hand-to-hand combat is a complex problem

So why might we need an unconventional approach

to improving agility?

Motivation for the Kanban Method

Traditional Change is an A to B process

***either an internal process group or external consultants

CurrentProcess Future

Process

DefinedDesigned

transition

* Value stream mapping, ** Theory of Constraints Thinking Processes

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

Daniel Kahneman

System 1Sensory PerceptionPattern 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…

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

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/

The Kanban Method

Principles behind the Kanban Method

The Kanban Lens

STATIK(systems thinking approach to introducing kanban)

This process tends to be iterative

For each service…

Understandingkanban systems

Kanban can be physical

DevReady

Development TestingTest

UATReleaseReady

In-progressLegend

Blocked - issue

Blocked - defect

Physical token such as a magnet is a kanban

Colors are used to denote state

Moving done items down below a line is an optional enhancement

seen in some implementations

Override on kanban limit introduces additional

“blocked – issue” kanban

People working on blocked item “A”

have been redirected to work

on item “I”

FF FF FF J

Kanban are often virtual!

Engin-eeringReady

5Ongoing

Development Testing

Done3 3

TestReady

PullThese are the virtual kanban

These are the virtual kanbanThese are the virtual kanbanThese are the virtual kanban

The board is a visualization of the service delivery workflow, work-in-progress and the kanban system

UATDeploy-

mentReady

∞ ∞

Kanban systems are pull systems

DevReady

5Ongoing

Development Testing

Done3 3

TestReady

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

Commitment point

FF FF FF FPull

Wish to avoid aborting after commitment

IdeasDev

Ready5

Ongoing

Development Testing

Done3 3

TestReady

UATReleaseReady

∞ ∞

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

to take delivery.

Ideas remain optional and (ideally) unprioritized

Discard rates are often high

DF FF F

Reject

IdeasDev

Ready5

Ongoing

Development Testing

Done3 3

TestReady

UATReleaseReady

∞ ∞

Discarded

The discard rate with a team at Microsoft in 2004 was 48%. ~50%

is commonly observed

Options have value because the future is uncertain

0% discard rate implies there is no uncertainty about the future

Upstream Kanban Prepares OptionsReady

forEngin-eering

Comm-itted

4 Ongoing

Development

Testing

Verification3

Commitment point

Requi-rementsAnalysis

2412 -

BizCaseDev

4824 -

Poolof

Min & Max limitsinsure sufficientoptions are alwaysavailable

Committed WorkOptions

Discarded

OReject

$$$ cost of acquiring options

TestReady

FF FF FF F

Commitment Frequency

Replenishment

Discarded

IdeasDev

Ready5

Ongoing

Development Testing

Done3 35

UATReleaseReady

∞ ∞

The frequency of system replenishment should reflect

arrival rate of new information and the transaction &

coordination costs of holding a meeting

Frequent commitment is more agile.

On-demand commitment is most agile!

TestReady

FF FF FF F

Defining Kanban System Lead Time

System Lead Time

Discarded

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 ∞

TestReady

FF FF FF F

Delivery Frequency

Delivery

Discarded

The frequency of delivery should reflect the transaction &

coordination costs of deployment plus costs &

tolerance of customer to take delivery

IdeasDev

Ready5

Ongoing

Development Testing

Done3 35

UATReleaseReady

∞ ∞

UAT and Release buffer sizes can reduce as frequency of delivery

increases

Frequent deployment is more agile.

On-demand deployment is most agile!

Service Delivery Agility

Service Agility

Commitment frequencyLead TimeDelivery

Frequency Lead

Service Agility

Frequent

Seldom

Frequent

Seldom

MoreAgile

LessAgile

Kanban system dynamics

Understandingthe Kanban Method

Treat each service separatelyDe

ObservedCapability

Feedback Loops

OperationsReview

ServiceDeliveryReview

StandupMeeting

The Kanban Kata

weekly

monthly

Standup Meeting

Daily Meeting

Disciplined conduct (kata) & acts of leadership identify problems

Improvement discussions & process evolution happen at after meetings

Service Delivery Review

Weekly Meeting

Usually (but not always) between a superior and a sub-ordinate

A focused discussion about demand, observed system capability, and fitness for purpose

Comparison of capability against fitness criteria metrics and target conditions, such as lead time SLA with 60 day, 85% on-time target

Discussion & agreement on actions to be taken to improve capability

Operations Review

Monthly meeting

Disciplined review of demand and capability for each kanban system

Provides system of systems view and understanding

Kanban system design changes & process evolution suggested by attendees

Organizational Improvements Emerge

Visualize work, workflow & business risksusing large physical or electronic boards in communal spaces

Implement Virtual Kanban SystemsManage FlowMake Policies ExplicitImplement the Kanban KataEducate your workforce to enable collaborative evolution of policies & ways of working

based on models of workflow from bodies of knowledge such as Theory of Constraints, Deming’s Profound Knowledge, Lean, Risk Management ideas such as Real Option Theory & Liquidity

Kanban’s 6 Specific Practices

Fitness Criteria

Start with what you do now

Fitness criteria are metrics that measure observable external outcomes

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

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

System A

Frequency

Lead Time Expectation Spread (Days)

5 10 15 20 25 30 More0

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

Evolutionary change has no defined end point

EvolvingProcess

Rollforward

Rollback

InitialProcess

Future process is emergent

EvaluateFitness

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

process is fitter!

Business Agility

Agilit

Strong

Respond

Frequent

Seldom

MoreAgile

LessAgile

SeldomKa

Strong

Business Agility

SenseFitness criteria by market segment

Capability against demand

RespondService Delivery Time

Evolutionary Changes

Conclusions

1. Kanban helps you manage your organization as an ecosystem of creative service workflows.

2. Kanban enables you to improve your business agility through evolutionary improvement with significantly reduced resistance to change.

3. Kanban improves the survivability of your business making it resilient to a rapidly changing external environment

Thank you!

Learn More

http://www.limitedwipsociety.org

http://edu.leankanban.com

@leankanbanu

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 a founder of the Lean Kanban Inc., a business dedicated to assuring quality of training in the Lean Kanban Method for managers of those who must “think for a living.”

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 48 & 49 was provided by Raymond Keating of CME Group.

Hakan Forss of Avega Group in Stockholm has been instrumental in defining the Kanban Kata and evangelizing its importance as part of a Kaizen culture.

Real options thinking inspired by the work of Chris Matts, Olav Maassen & Upstream Kanban pioneered by Patrick Steyaert.

References to Sense & Respond are inspired by the work of Stephen Parry.

Don Reinertsen first suggested using virtual kanban systems for service delivery.

Acknowledgements

kanban - an alternative path to agility (lean kanban southern europe 2014)

kanban method

dry land swimming

styles djaleankanban

djaleankanban

kanban method

fitness criteria

lead time

dev ready

Leadership & Management

kanban: an evolutionary approach to agility through lean

discovery kanban - lean kanban uk 2014

lean & kanban: introducción

kaizen kanban lean manufacturing

kanban - an evolutionary approach to agility

lean software development & kanban

lean kanban

lean kanban practitioner - the agile...

lean kanban france2013 : kanban for managers

kanban - an alternative path to agility (lean kanban...

key note - lean kanban france 2013 - kanban evolutionary...

lean kanban fr 2013 - vin et kanban

how to start my kanban - lean kanban france 2015

lean, kanban and tfs

lean for project agility - kanban way

jpk lean kanban-gezondheidszorg

kaizen kanban-lean manufacturing

lean, kanban, and tfs

strength-based kanban (lean kanban france 2012 #lkfr12)

kanban, devops, lean startup