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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
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Hello!
@JLINDENREED
[email protected]
• Janice Linden-Reed Seattle, WA
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• Management Consulting
• Private and Public LKU Certified Kanban Training
• Including:
• Kanban Coaching Professional Masterclass
• LKU Train the Trainer
www.DJAA.com
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• Spanish
• Portuguese
• German
• French
• Chinese
• Japanese
• Bulgarian
• Polish
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Limited WIP Society
1000+ members LimitedWipSociety.org
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Moving the conversation away from process improvement and towards management and decision frameworks
conf.leankanban.com edu.leankanban.com
leankanban.com
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• 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
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LKU Accredited Kanban Trainers
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WHAT IS KANBAN?
KANBAN MYTHS
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Kanban Myths • Frank Vega, KCP
Denver, CO
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Kanban is not
• …a board on the wall
• … “no iterations”
• … “no estimation”
• …only for Ops teams
• …only for software/IT
• …a methodology
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Kanban is not a methodology!
• SCRUM vs KANBAN? (Scrumban?)
• XP vs KANBAN? (Xanpan?)
• WATERFALL vs KANBAN?
• “vs”, “instead of”, “replace”, “choose”
KANBANIZE it!
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WHAT IS KANBAN?
THE KANBAN METHOD
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• 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
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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
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WHY USE KANBAN?
KANBAN VALUES
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Kanban Values
• Mike Burrows, AKT • Matlock Bath, UK
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Kanban Values
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Kanban Values
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Kanban Values
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ARE YOU REALLY DOING KANBAN?
DEPTH OF KANBAN
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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)
Dep
th
Shallow
Deep
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But wait…
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Depth of Kanban
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Depth of Kanban
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Depth of Kanban
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Depth of Kanban
• Bernadette Dario, KCP Toronto, Canada
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Depth of Kanban
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THE CULTURE OF KANBAN
EVOLUTIONARY CHANGE
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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
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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
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FEEDBACK LOOPS AND EVOLUTIONARY CHANGE
KANBAN KATA
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• Håkan Forss, AKT Stockholm, Sweden
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Kanban Kata
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Kanban Kata
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Kanban Kata
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Kanban Kata
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Kanban Kata
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Kanban Kata
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Kanban Kata
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WHY AND HOW TO USE KANBAN?
KANBAN AGENDAS
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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
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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
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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
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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
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KANBAN IN CONTEXT
KANBAN FLIGHT LEVELS
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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. “
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Kanban Flight Levels • Organizational unit,
uncoordinated input
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Kanban Flight Levels
• Organizational unit,
coordinated input
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Kanban Flight Levels
• Value stream: Providing a
service in a coordinated way
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Kanban Flight Levels
• “The performance of a system is not
the sum of its parts but the product
of its interactions” – Russell Ackoff
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Kanban Flight Levels
• Portfolio
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WHY USE KANBAN?
BALANCE DEMAND & CAPABILITY
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Economically balance capability against demand
Goals for using Kanban
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Available options
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Risk Management is an Enabling Capability…
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Most process geeks & IT managers are operating over here
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Kanban is encouraging
collaborative conversations with other stakeholders to open up options
for improvement over here
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Example: Shape the Demand
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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?
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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
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Cost of Delay
What happens if you DON’T do the work?
Informs: …Class of Service…
…Allocation… …Policy…
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The psychology of a probabilistic approach can be challenging…
Change
Req
ues
ts
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!
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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
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IMPROVING DELIVERY CAPABILITY:
FLOW EFFICIENCY
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Available options
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Test Ready
Flow Efficiency
F
E
I
G
D
GY PB
DE MN
P1
AB
Customer Lead Time
Waiting Waiting Waiting Working
Ideas Dev
Ready
5 Ongoing
Development Testing
Done
3 3 5
UAT Release Ready
∞ ∞
Working Waiting Working
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Test Ready
Flow Efficiency
F
E
I
G
D
GY PB
DE MN
P1
AB
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
Ready
5 Ongoing
Development Testing
Done
3 3 5
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
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Available options Capacity Allocation
Policies
WIP Limits, Flow, Flow Efficiency, Focus on
sources of delay
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SHAPE THE DEMAND
PORTFOLIO KANBAN
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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
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Portfolio Kanban
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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
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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
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KANBAN AT SCALE
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Kanban at Scale
AMDOCS - Israel
WSIB - Canada
PINGAN - China
PETROBRAS – Brazil
SANDVIK IT - Sweden
SIEMANS Health Svcs - USA
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Treat each service separately
Dem
and Observed
Capability
Dem
and
Dem
and
Observed Capability
Observed Capability
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Some systems have dependencies on others
Dem
and Observed
Capability
Dem
and
Dem
and
Observed Capability
Observed Capability
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Some systems have dependencies on others
Dem
and Observed
Capability
Dem
and
Dem
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
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Kanban at Scale • Christophe Achouiantz, KCP • Borlange, Sweden
Introducing Kanban to 50+ teams at Sandvik IT
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Kanban at Scale • Christophe Achouiantz, KCP • Borlange, Sweden
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Kanban at Scale
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COMPATIBLE MANAGEMENT METHODS
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Probabilistic Forecasting
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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
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Real Options
Options have value. Options expire. Never commit early unless you know why.
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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
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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…
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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
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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
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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
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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