essential kanban: what you need to know about kanban… even if you’re not using kanban!

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© 2017 ANDY CARMICHAEL ALL RIGHTS RESERVED DEVELOPER SOUTH COAST APRIL 2017 Essential Kanban Developer South Coast, April 2017 @DevSouthCoast @andycarmich what you even when you’re not using Kanban! need to know about Kanban…

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Essential

Kanban

Developer South Coast, April 2017@DevSouthCoast @andycarmich

what you even when you’re not using Kanban!need to know about Kanban…

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ALTERNATIVE TITLE:

WHAT EVERY SCRUM MASTER NEEDS TO KNOW ABOUT KANBAN

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THE FIRST RULE OF KANBAN

CLUB…

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How to start doing Kanban…

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KANBAN IS A WAY OF SEEING

IT IS NOT A PROCESS FRAMEWORK(NOR A THREAT TO THEM… UNLESS IT UNCOVERS DEMONSTRABLE IMPROVEMENTS IN YOUR CONTEXT)

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A method for defining, managing, and improvingservices that deliver knowledge work

A “start with what you do now” approach to change

A way of seeing… a way of changing

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The Foundational Principles ofKanban?

Change Management:• Start here

• Agree to evolve

• Lead – everywhere by everyone

Service Delivery:• Customer first

• Manage the work not workers

• Evolve policies for outcomes

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EVOLUTION IS NOT SMALLER CHANGE …

IT’S A DIFFERENT MECHANISM OF CHANGE

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Evolution is not a set of small revolutions…

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It’s a different mechanism

• The evolutionary process involves • differentiation (copying with deliberate differences

or mutations);

• selecting for fitness; and

• keeping and amplifying “more fit” change, while dampening or reversing “less fit” change

• Technology and processes evolve (at an ever increasing rate)

Beinhocker, Eric D. 2007. The origin of wealth: evolution, complexity, and the radical remaking of economics. London: Random House Business Books.

@andycarmich@andycarmich

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MANAGEMENT IS NOT OBSOLETE

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Lead – everywhere by everyone

• Every Scrum Master a manager; every manager a Servant Leader

• Direction – Management – Leadership (communication of intent as well as objectives)

• From leader-follower relationships to leader-leader relationships

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MAKE POLICY CHANGES

EXPLICIT

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General Practices of Kanban

•Make the process… … visual … WiP limited … flow … explicit … responsive (with feedback) … evolve

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Policies (1): The old boarding school rule

http://images4.fanpop.com/image/photos/22400000/The-evil-boarding-school-dark-the-hedgehog-22496901-640-456.jpg @andycarmich@andycarmich

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Policies (2): When “the law is an ass”

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MEASURE AGILITY BY…

VALUE DELIVERYLEAD TIME

FITNESS FOR PURPOSE

NOT PRACTICE ADOPTION

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Work in Progress

System Lead TimeDelivery Rate

Understand flow systems

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Limit WiP to achieve “pull” and predictable Lead Time

Deferred commitment and limited WiP are cornerstones of effective demand management

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Manage Flow (to maximise flow of value)

Expedite

Elev

ate

the

con

stra

int

Standard

Fixed Date

Intangible

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OPTIMISE FLOW RATHER THAN

UTILISATION

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@andycarmich@andycarmich

Flow Systems follow Little’s Law

In 1961 Dr John Little (studying Queuing Theory) proved that, in a stationary system:

λ = L / W

• λ is the average arrival rate

• L is the average number of items in the queue,

• W is the average time in queue

• Subject to similar assumptions we can apply this to kanban systems:

Delivery Rate = WiP / Lead Time

• The overline indicates the average (arithmetic mean)

For other parts of the process use:

• Throughput: the rate items depart the system under consideration.

• Time in Process (TiP): for the time an item takes from entering to leaving the system (or part of the system) under consideration(or Time in Development, Time in Acceptance, Time in Queue, etc.)

Lead Time and Delivery Rate is what we (service provider and customer)

care about

Lead Time and Delivery Rate is what we (service provider and customer)

care about

Work in Progress is what we can control

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Utilisation, Delivery Rate and Lead Time

• Capacity is finite (and lower than you think!

• Increasing utilisation increases LT (not much at first)

• Increasing utilisation increases DR (at first)

• At a certain point flow is destroyed. DR collapses. LT tends to infinity!

• Near the critical point, flow is fragile. Perturbations have severe, unpredictable and long-lasting effects.

• The critical point depends on variability

@andycarmich@andycarmich

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Alan Walker [CC BY-SA 2.0 (http://creativecommons.org/licenses/by-sa/2.0)], via Wikimedia Commonshttps://commons.wikimedia.org/wiki/File%3AThe_M1_on_a_winter's_afternoon_-_geograph.org.uk_-_112140.jpg @andycarmich@andycarmich

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Resource Efficiency or Flow Efficiency

First focus on flow…then efficiency

“What is Lean” – NiklasModig and Par Ahlstrom

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value trumps …

flow trumps …

waste elimination trumps …

economies of scale .

The “Lean Decision Filter” - after Mehta, Anderson, Raffo, 2008. @andycarmich@andycarmich

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NO TEAM IS AN ISLAND

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Efficient subsystems (teams/services) do not necessarily mean efficient systems

• Chains of services (widening your scope of view)

• Hierarchies of services (higher level systems making commitments than team-level services must deliver)

• Networks of services (blockers in one system are demand in another)

Systems Thinking

Service

Service

• optimise the whole not the parts• plan as a whole, balance demand• make queues visible• flexible resources

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@andycarmich@andycarmich

A chain of services (e.g. the life of a “story”)

In Progress

wmww

wmww

wmww

Done

wmww

wmww

Sprint BL

wmww

Ready

wmww

Preparing

wmww

wmww

wmww

Selected

wmww

wmww

Pool of ideas

wmww

wmww

wmww

UAT

wmww

Released

wmww

wmww

wmww

Deployed

wmww

Customer

wmww

wmww

Consider this process…What happens

before it?

What happens after?

Don’t just optimise this!

Selection:Now? Never?

Later?

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A hierarchy of services (e.g. multi-team epics)

• Use feedback loops

• Plan work across teams

• Examine the constraints

• Don’t overload!

Team A

Team B

Team C

X

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Feature Selected

2 - 5

Pool of Ideas

User Story Identified

30

User Story Preparation

In Progress Ready

User Story Development

In Progress

Ready (Done)

Feature Acceptance

8In

ProgressReady

Deploy-ment

5

DeliveredFeature

Preparation

3 - 10In

Progress Ready

Discarded

Epic 511

Epic 606

Epic 287

Epic 329

Epic 439

Epic 562

Epic 478

Epic 431

Story 602-01

Epic 335

Epic 302

Epic 602

Epic 512

Story 602-04

Story 602-02

Story 602-06

Story 602-03

Story 602-05

Story 302-03

Story 302-01

Story 302-07

Story 302-02

Story 302-08

Story 302-06

Story 335-09

Story 335-10

Story 335-04

Story 335-08

Story 335-03

Story 335-01

Story 512-04

Story 512-07

Story 512-02

Story 512-05

Story 512-03

Story 512-06

Story 335-06

Story 335-05

Story 335-02

Story 512-01

Story 335-07

Story 302-09

Story 303-05

Story 302-04

Epic 221

Epic 662

Epic 651

Epic 589

Epic 444

Epic 609

Epic 577

Epic 362

Epic 468

Epic 401

Epic 582

Epic 521

Epic 339

Epic 276

Epic 694

Epic 213

Epic 274

Epic 287

Epic 388

Epic 419

Epic 386

Epic 294

15 15

PolicyBusiness case showing

value, cost of delay, size estimate and

design outline.

PolicySelection at

Replenishment meeting chaired by Product Director.

PolicyAs per

“Definition of Done” (see…)

PolicySmall, well-understood,

testable, agreed with PD & Team

PolicyRisk assessed per

Continuous Deploy-ment policy (see…

wikipedia.org/wiki/ Kanban_(development)

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A network of services (e.g. dependent services)

• Fulfilling system commitments depends on timely delivery from other services

• Same principles apply within a network of interdependent services as for one

• “Scale by applying Kanban in a context of greater scale”

• Use feedback loops

• Make the queues visible to give the “customer” options

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No team is an islandOptimise the system not the parts

• Islands of efficiency

• Think in systems

•Build a “bigger tribe”

•Where is the value?

Immelman, Ray. 2003. Great boss dead boss: How to exact the very best performance from your company and not get crucified in the process. Gurnee, IL: Stewart Philip International.

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DEADLINES CREATE TURBULENCE –

MANAGE TO REAL CHANGES IN COST OF DELAY, NOT ITERATION BOUNDARIES.

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Sprint boundaries and Kanban cadences are not deadlines

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Cadence versus Deadline

• Is the sprint boundary a review point in a continuous process, or a stop-start?

• Is behaviour of the team different approaching the deadline?

• Are most things Done near the end?

• Is there pressure to complete the forecast?(does the forecast become a target?)

Different behaviour when analysing stochastic systems is referred to as regime change. Regime change reduces the forecastability of the system.

Real deadlines are where the cost of delay changes radically. Regime change may be a necessary evil as such dates approach.

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Time (t) influences Value (V)

𝐷𝑒𝑙𝑎𝑦 𝐶𝑜𝑠𝑡 = −𝜕𝑉

𝜕𝑡Δ𝑡

“Cost of Delay” (CoD)

A Cost –e.g. measured in dollars

A rate of change in valuee.g. measured in dollars per week

or “Urgency”?

A sudden drop in the value versus release date curve indicates a real deadline

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How urgent is it to start this item?

• the ordering of work items (WSJF: Urgency / LT)

• Choosing the class of service that is appropriate for the work item • Policies for more value, less risk• Ensuring some intangible items are

always in play (interruptible if unexpected / irrefutable demand)

• Pay attention to the “last responsible moment” for starting a work item (say, 85% probability point)

Source: @lki_dja

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FINANCIAL POLICIES DETERMINE

MANAGEMENT BEHAVIOUR

@andycarmich@andycarmich

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Financial policies that inhibit business agility

• Capitalisation of Work in Progress

• No recognition of Cost of Delay

• Equating Cost to Value (e.g. “Earned Value”)

• Cost saving versus value delivery

• Annual budgeting

• …

When accountants understand the problem of policies which drive unhelpful behaviour, they can reformulate policies. We cannot do this for them – we cannot achieve behaviour change without them.

@andycarmich@andycarmich

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SUMMARY

@andycarmich@andycarmich

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The Kanban Method is not…• a process or a process framework

• nor an informal mechanism for visually organising work, without inconvenient rules

• nor even a scaling framework, though it is applicable at a wide variety of scales

applicable even when you’re “not using Kanban”

• a way of looking at your work, whatever process you use, and improving customer and business outcomes

• a way to see your work through a different lens – the Lean flow paradigm

• a way to focus on the work (rather than the worker), and the customer’s purpose (rather than the service provider’s)

• a way to continually examine the flow of value and incrementally improve it

the first rule of Kanban Club principles and practices policies – the old boarding school rule; when “the law is an ass” evolution is not smaller change, but different change agility is measured by lead time and value delivery, rather than practices adoption no team is an island flow efficiency versus resource efficiency deadlines create turbulence – manage to real changes in cost of delay, not iteration boundaries Financial policies determine management behaviour

Kanban is…

Themes and memes

@andycarmich@andycarmich

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Physical book available from Amazon and other booksellers. PDF can be downloaded from leankanban.com/guide

Template can be downloaded from goo.gl/Ho5nz8!

@andycarmich@andycarmich

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ReferencesAnderson, David J. 2010. Kanban: Successful Evolutionary Change for Your Technology Business. United States: Blue Hole Press.

Anderson, David J., and Andy Carmichael. 2016. Essential Kanban Condensed. United States: Lean Kanban University. http://leankanban.com/guide

Beinhocker, Eric D. 2007. The origin of wealth: evolution, complexity, and the radical remaking of economics. London: Random House Business Books.

Brad Pitt photo. Fight club, 20th Century Fox. 1999

Greenleaf, R. 1982. Servant leadership: A journey into the nature of legitimate power and greatness. 25th ed. New York: Paulist Press International,U.S.

Immelman, Ray. 2003. Great boss dead boss: How to exact the very best performance from your company and not get crucified in the process. Gurnee, IL: Stewart Philip International.

Little, J. 1961. A Proof for the Queuing Formula: L = λ W. Operations Research, 9(3), pp.383-387.

Mehta, M., Anderson, D. and Raffo, D. 2008. Providing value to customers in software development through lean principles. Software Process: Improvement and Practice, 13(1), pp.101-109.

Marquet, D. 2015. Turn the ship around!: A true story of building leaders by breaking the rules. United Kingdom: Portfolio Penguin.

Modig, Niklas and Pär Åhlström. This Is Lean: Resolving the Efficiency Paradox. 1st ed. Stockholm: Rheologica Publishing.

Reinertsen, Donald G. 2009. The principles of product development flow: second generation lean product development. Redondo Beach, CA: Celeritas Publishing.

@andycarmich@andycarmich

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Questions and Discussion

@andycarmich@andycarmich