kanban - follow your own path to agility

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

Kanbanfollow your own path to agility

What is Kanban?How do you implement it?What are the benefits?

Scrum Gathering ChinaHangzhou, October 2016

Bruce Lee’s Journey in Martial Arts

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

Kanban rejects the idea of defined Agile “methodologies”!

Lee wanted to start from first principles and core concepts

*Apparently still called the Five Ways, there are actually now six **with the later inclusion of SAA**The fact that The Five Ways has six elements is evidence of evolution in action***Incorporated core ideas such as "center line" and single fluid motion from Wing Chun and parrying from Epee Fencing********Not a Chinese Martial Art and hence evidence of "no limitation as limitation"

Five* Ways of Attack***• Single Direct Attack (SDA)• Attack By Combination (ABC)• Progressive Indirect Attack

(PIA)• (Hand) Immobilization Attack

(HIA)• Attack by Drawing (ABD)• Single Angle Attack (SAA)

Lee’s approach still needed a name

Kanban is just a name!

The Kanban Method is named for use of kanban

systems

- a single practice within a wider philosophy

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

Kanban – follow your own path to agility!

Kanban is the Agile method with a “methodology”!

There is no defined Kanban Process!

What is a kanban system?(かんばん )

A Kanban Systems consists of “kanban” (かんばん ) signal cards

in circulation

Kanban has two meanings

The Kanban Method– an alternative path to agility!

Kanban Method

The Kanban Method

Simple Underlying Principles

1. Intangible Goods (professional services) businesses can be managed like physical, tangible goods businesses

2. Represent intangible goods with tangible artifacts3. Make invisible work & workflows visible4. Control & limit inventory of intangible goods

The Kanban Method

Service Delivery Principles

1. Understand and focus on your customers’ needs and expectations

2. Manage the work, let people self-organize around it3. Evolve your management policies to improve

customer & business outcomes

Seeing Services

For each service implement a Kanban “pull” system

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

Kanban has been called “Iterationless” Agile.

Batches of work are replaced with continuous flow of work

Commitment is deferred

Commitment point

FF FF FF F

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

Kanban implements the Lean principle of “just in time” through the practice of deferred commitment

TestReady

FF FF FF F

Decoupled Cadence Improved Optionality

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

Lead time

The frequency of delivery should reflect the transaction & coordination

costs of deployment plus costs & tolerance of customer to take delivery

Delivery

For software development skill in configuration management is an enabling capability for

Kanban

Agility = Capability x Optionality

SkillsExperienceCapacity

# Options x Frequency of decision making

TestReady

Flow Efficiency

Customer Lead TimeWaiting Waiting WaitingWorking

* Zsolt Fabok, Lean Agile Scotland, Sep 2012, Lean Kanban France, Oct 2012** Hakan Forss, Lean Kanban France, Oct 2013

IdeasDev

Ready5

Ongoing

Development Testing

Done3 35

UATReleaseReady

∞ ∞

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!

Working WaitingWorking

Multitasking means time spent in working columns is often waiting

Waiting Waiting WaitingWorking Working WaitingWorking

TestReady

Implications of low Flow Efficiency

IdeasDev

Ready5

Ongoing

Development Testing

Done3 35

UATReleaseReady

∞ ∞

Low flow efficiency means that most of lead time is influenced by environmental factors that are unlikely to change soon

Customer Lead Time

In a low flow efficiency

environment, Class of service is much

more likely to influence lead time

than any other factor

As a result, lead time is not very sensitive to the size or complexity of a single work item,

or to the specific people involved or

their individual capabilities

Fragile lead time distribution

Weibull, k=0.8

Mode < 1Median = 6Mean = 9Tail = 553 outliers > 55High value = 77High value = 100 x Mode

Typical of IT operations work or very low organizational

maturity and capability software development

More Robust Lead Time

Mode = 10Median = 11Mean = 12Tail = 602 outliers > 60High value = 105High value = 10 x Mode

Typical of higher organizational maturity & capability software development with Kanban.

Scrum teams often produce kappa ~= 1.2

Increased “focus” from WIP limits with Kanban improves shape, shifting it right (up)

This is more desirable – shorter tail = more predictable

Delivery Capability has 3 Dimensions

Service Delivery Agility

Commitment frequencyLead TimeDelivery

Frequency

Service Delivery Agility

Frequent

Seldom

Frequent

Seldom

MoreAgile

LessAgile

Kanban system dynamics

Avg. Lead Time

Avg. Delivery Rate

Poolof

ReadyTo

Deliver

Little’s Law

Delivery Rate(from the kanban system) System Lead Time

Delivery rate (or “velocity”) is another measure of

capability

When should we commit?

ct When we need it

Zone of possible

delay cost

If we start here

Commitment point

timeJan10

To consider the best time to start something we can

examine the probable opportunity lost by

multiplying the lead time probability distribution

function against the Delivery Delay Cost

function.

By sliding the lead time distribution across the

Delivery Delay Cost we can compare the Probable

Delay Costs for a delay in starting

The Optimal Time to Start

When we need it

85th percentile

Ideal StartHere

Commitment point

If we start too early, we forgo the option and

opportunity to do something else that may provide value.

If we start too late we risk incurring the cost

of delay

With a 6 in 7 chance of on-time delivery, we

can always expedite to insure on-time delivery

Discovery Kanban Prepares OptionsReady

forEngin-eering

Comm-itted

4 Ongoing

Development

Testing

Verification3

Commitment point

Requi-rementsAnalysis

2412 -

RiskAnalysis

4824 -

Poolof

Min & Max limitsensure sufficientoptions are alwaysavailable

Committed WorkOptions

Discarded

OReject

$$$ spent acquiring options $$$ spent converting

options

Embedded Options

Delivery KanbanDiscovery Kanban

RolesReady

forEngin-eering

Comm-itted

4 Ongoing

Development

Testing

Verification3

Commitment point

Requi-rementsAnalysis

2412 -

RiskAnalysis

4824 -

Poolof

Service Delivery ManagerService Request Manager

Discarded

OReject

Marshals Options Manages Flow

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

The Kanban Method

General Practices

1. Visualize (with a kanban board 看板 )

2. Limit work-in-progress (with kanban かんばん )

3. Manage flow4. Make policies explicit5. Implement feedback loops6. Improve collaboratively, evolve experimentally

(using models & the scientific method)

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

StrategyReview

RiskReview

Monthly

ServiceDeliveryReview

Bi-WeeklyQuarterly

KanbanMeeting

OperationsReview

Monthly

Replenishment/Commitment

Meeting

Weekly

DeliveryPlanningMeeting

Per delivery cadence

change change

change

change change

change

infoinfo

change info

Kanban Cadences

Focus on Service DeliveryService Delivery Set

Improvement/Evolutionary Set

The Essence of Kanban in Action

Survivability = Agility x Adaptability

Capability x Optionality

Capability(to manage change) Frequency of change opportunitiesx

SkillsExperienceOrg maturity

Capability

OptionalityAdaptability

Agility

Survivability

Out-maneuvered

Unfit for purposefailure

failureFragile

Easily disrupted

RobustAntifragileEvolutionaryCapability

Conclusions

Capability

Delivered as management training & coaching

Focus on managers at all levelsBusiness unit scale

HorizontalApplicable to all professional services (not just IT)

Capability

Typical AgileMethod

Delivered as methodologies, process improvement & coaching

Focus on individuals and teams

VerticalTends to be IT, or software engineering specific

Conclusions

The future of creative work should be inspired by the philosophy of Bruce Lee

Thank you!

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 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.”

Fragile Lead time distribution data courtesy Andreas Bartel, Hamburg, Germany

Robust Lead time distribution data courtesy of an anonymous client in China

Acknowledgements

Appendices

2010 – Kanban “blue book”

2012 Lessons in Agile Management

The heavily under-rated book that underpins the Kanban Coaching Masterclass and most of the theory behind the Kanban Method

2014 Kanban from the Inside

kanban - follow your own path to agility

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