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

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[email protected] @lkuceo Copyright Lean Kanban Inc. Presents Presenter David J. Anderson Lean Kanban Southern Europe May 2014 Release 1.0 Kanban an alternative approach to agility

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Kanban offers an alternative evoltionary approach to improving fitness for purpose and agility of a business. This pr

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Page 1: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

[email protected] @lkuceo Copyright Lean Kanban Inc.

Presents

PresenterDavid J. Anderson

Lean KanbanSouthern Europe

May 2014Release 1.0

Kanbanan alternative approach to agility

Page 2: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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An Unconventional ApproachMay Be Required

Page 3: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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Bruce Lee rejected traditional teaching and styles of Chinese martial arts

Page 4: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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Snake

Monkey

Mantis

Tiger

Kung Fu Panda simplified the art to only four styles

Page 5: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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There are in fact very many styles…

Page 6: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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“Dry land swimming” provides a false sense of capability

Page 7: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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Jeet Kune Do

Using no way as way

Having no limitation as limitation

Page 8: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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Jeet Kune Do encourages development of a uniquely personal style

"absorb that which is useful“

discard the remainder

Page 9: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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

Page 10: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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Kata are not adaptive

Page 11: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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

Page 12: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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So why might we need an unconventional approach

to improving agility?

Page 13: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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Motivation for the Kanban Method

Page 14: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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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

A B

Page 15: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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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

Page 16: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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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

Page 17: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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Adopting new processes challenges people psychologically & sociologically

Page 18: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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The Kanban Method…

Page 19: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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The Kanban Method…

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

Page 20: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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Water flows around the rock

“be like water”

the rock represents resistance

Page 21: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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Kanban should be like water*

* http://joecampbell.wordpress.com/2009/05/13/be-like-water/

Page 22: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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The Kanban Method

Page 23: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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Principles behind the Kanban Method

Page 24: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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The Kanban Lens

Page 25: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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STATIK(systems thinking approach to introducing kanban)

This process tends to be iterative

For each service…

Page 26: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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Understandingkanban systems

Page 27: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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H

FF OM

NK

J

I

Kanban can be physical

Ideas

D

E

A

I

DevReady

G

Development TestingTest

Ready

F B

C

UATReleaseReady

In-progressLegend

Done

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”

Page 28: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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H

FF FF FF J

I

Kanban are often virtual!

Ideas

D

E

A

I

Engin-eeringReady

G

5Ongoing

Development Testing

Done3 3

TestReady

5

F

B

CPull

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

∞ ∞

Page 29: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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H

FF OM

NK

J

I

Pull

Kanban systems are pull systems

Ideas

D

E

A

I

DevReady

G

5Ongoing

Development Testing

Done3 3

TestReady

5

F

B

CPull

Pull

*

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

Page 30: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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Commitment is deferred

H

EC A

I

D

Commitment point

FF FF FF FPull

Wish to avoid aborting after commitment

IdeasDev

Ready5

Ongoing

Development Testing

Done3 3

TestReady

5

UATReleaseReady

∞ ∞

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

to take delivery.

Ideas remain optional and (ideally) unprioritized

G

Page 31: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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Discard rates are often high

H

E

C A

I

DF FF F

GH

I

Reject

IdeasDev

Ready5

Ongoing

Development Testing

Done3 3

TestReady

5

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

Page 32: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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Upstream Kanban Prepares OptionsReady

forEngin-eering

F

H

I

Comm-itted

D

4 Ongoing

Development

Done3

JK

12

Testing

Verification3

L

Commitment point

4 -

Requi-rementsAnalysis

2412 -

BizCaseDev

4824 -

Poolof

Ideas

Min & Max limitsinsure sufficientoptions are alwaysavailable

Committed WorkOptions

Discarded

OReject

P Q

$$$ cost of acquiring options

Page 33: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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TestReady

FF FF FF F

Commitment Frequency

H

E

C A

I

G

D

Replenishment

Discarded

I

Pull

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!

Page 34: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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TestReady

FF FF FF F

Defining Kanban System Lead Time

H

E

C A

I

G

DPull

System Lead Time

Discarded

I

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 ∞

queue

Page 35: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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TestReady

FF FF FF F

Delivery Frequency

H

E

C A

I

G

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

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!

Page 36: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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Service Delivery Agility

Service Agility

Commitment frequencyLead TimeDelivery

Frequency Lead

Tim

e

Short

Long

Deliv

ery

Service Agility

Com

mitm

ent

Frequent

Seldom

Frequent

Seldom

MoreAgile

LessAgile

Kanban system dynamics

Page 37: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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Understandingthe Kanban Method

Page 38: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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Treat each service separatelyDe

man

d

ObservedCapability

Dem

and

Dem

and

ObservedCapability

ObservedCapability

Page 39: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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Feedback Loops

OperationsReview

ServiceDeliveryReview

StandupMeeting

The Kanban Kata

daily

weekly

monthly

Page 40: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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Standup Meeting

Daily Meeting

Disciplined conduct (kata) & acts of leadership identify problems

Improvement discussions & process evolution happen at after meetings

Page 41: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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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

Page 42: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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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

Page 43: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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Organizational Improvements Emerge

Page 44: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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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

Page 45: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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Fitness Criteria

Page 46: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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Start with what you do now

Page 47: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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Fitness criteria are metrics that measure observable external outcomes

Page 48: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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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

5

10

15

20

25

30

System B

Frequency

Lead Time in Days

Mean 17 days Mean 12 days

Page 49: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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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

2

4

6

8

10

12

System A

Frequency

Lead Time Expectation Spread (Days)

5 10 15 20 25 30 More0

5

10

15

20

25

30

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

Page 50: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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Evolutionary change has no defined end point

EvolvingProcess

Rollforward

Rollback

InitialProcess

Future process is emergent

EvaluateFitness

EvaluateFitness

EvaluateFitness

EvaluateFitness

EvaluateFitness

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

process is fitter!

Page 51: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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Business Agility

Serv

ice D

eliv

ery

Agilit

y

Strong

Weak

Evol

utio

nary

cha

nges

Respond

Frequent

Seldom

MoreAgile

LessAgile

Defin

e Fit

ness

Crit

eria

Often

SeldomKa

nban

Kat

a

Sense

Strong

Weak

Business Agility

SenseFitness criteria by market segment

Capability against demand

RespondService Delivery Time

Evolutionary Changes

Page 52: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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Conclusions

Page 53: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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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

Page 54: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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Thank you!

Page 55: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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Learn More

http://www.limitedwipsociety.org

http://edu.leankanban.com

@leankanbanu

Page 56: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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About

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.”

Page 57: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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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

Page 58: Kanban - an alternative path to agility (Lean Kanban Southern Europe 2014)

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