getting to pull at enterprise scale
TRANSCRIPT
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True Business AgilityGetting to “pull” at enterprise scale
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Kanban is Ubiquitous!
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Acceptance
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Return on Investment
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Don’t miss it!
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No Harm!
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But wait, it’s not Kanban!
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Kanban at Microsoft 2005
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Kanban at Hewlett-Packard 2006
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Proto-Kanban represents minor league victory
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Proto-Kanban
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Team Kanban
Backlog
F
HE
C A
G
D
Next Done
3
In-progress
3∞ ∞
GY
PB
DE
IJ Avatar for each
team memberStill at a single team level but maturing
to focus on managing work and less on managing
workers
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O
P
R
N
M
L
J
Per Person WIP Limit
Done
F
H E
C
A
I
Pending
G
DGY
PB DE
MN
AB
Dev/Build/Test/Deploy
DevReady
GY
GY
PB
PB
MN
MN
DE
DE
ABAB
K
Bench
Specify
B
∞∞ ∞
Unbounded
Queue
DelayedWIP
At this level, we are focused on managing work
and enabling people to self-organize around it but we aren’t limiting WIP in the system as a whole. Hence, service delivery will not be predictable
Moving beyond a single team to a service delivery workflow
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Aggregated Team Kanban
Done
Poolof
Ideas
FH E
C A
I
NextDeploy-
mentReady
GD
GYPB
DEMN
5 ∞
P1
AB
Ongoing
Development Testing
Done Ongoing Done
3 3
Team 1 Kanban
∞ ∞
Team 2 Kanban
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Aggregated Team Kanban
Done
Poolof
Ideas
FH E
C A
I
NextDeploy-
mentReady
GD
GYPB
DEMN
5 ∞
P1
AB
Ongoing
Development Testing
Done Ongoing Done
3 3∞ ∞
Also known
as “infinite
done queues”
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Aggregated Team Kanban
Done
Poolof
Ideas
FH E
C A
I
NextDeploy-
mentReady
GD
GYPB
DEMN
5 ∞
P1
AB
Ongoing
Development Testing
Done Ongoing Done
3 3
Infinite limits on Done columns means that there really isn’t a kanban pull system present.
This style of proto-kanban controls multi-tasking but doesn’t limit workflow WIP
∞ ∞
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Benefits of proto-Kanban implementations
Benefits
TransparencyRelief from overburdening
Reduced multitaskingImproved qualityPeople engaged
emotionallyMore collaborationGreater empathy
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Benefits of proto-Kanban implementations
Benefits
10-50% greater productivity
Up to 50% reductionin lead times
Average 25% headcount saving
Return on investment300->400 : 1
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Are we there yet?
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Kanban Litmus Test
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Have Managers Changed their Behavior?
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Has the Customer Interface Changed?
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Has the Customer Contract Changed?
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Has the Service Delivery Business Model Changed?
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Triage
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H
FF OM
NK
J
I
Using movable tokens as kanban is more flexible
Ideas
D
E
A
I
DevReady
G
Development TestingTest
Ready
F B
C
UATReleaseReady
In-progressLegend
Done
Blocked - issue
Blocked - defect
Override on kanban limit introduces additional
“blocked – issue” kanban
People working on blocked item “A”
have been redirected to work
on item “I”
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H
FF OM
NK
J
I
Using movable tokens as kanban is more flexible
Ideas
D
E
A
I
DevReady
G
Development TestingTest
Ready
F B
C
UATReleaseReady
In-progressLegend
Done
Blocked - issue
Blocked - defect
Using physical slots in the previous example has been shown to create
inertia to modification & improvement
Using movable tokens allows for WIP limits to be easily modified and provides a natural signal
token mechanism
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Single Service, Multiple Classes of ServiceAllocate capacity with kanban limit per color
5 4 4 5 2 = 20 total
Allocation
10 = 50%
...
+1 = +5%
4 = 20%
6 = 30%
InputBuffer In Prog DoneDoneIn Prog
DevelopmentAnalysis BuildReady Test
ReleaseReady
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3 Services Aggregated Together
5 4 4 5 2 = 20 total
Change Req12
Maintenance2
Production Defect6
AllocationTotal = 20
InputBuffer In Prog Done
BuildReady Test
ReleaseReadyDoneIn Prog
DevelopmentAnalysisReleased
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ChangeRequest
s3
1
Prod.Defects
Maintenance
UsabilityImproveme
nt
2
1
Improving Liquidity through Labor Pool Flexibility
Teams
F
HE
C A
Engin-eeringReady
G
D
GY
PBDE
MN
2
P1
AB
Ongoing
Analysis Testing
Done VerificationAcceptance3 3Ongoing
DevelopmentDone3
Joe
Peter
Steven
Joann
David
Rhonda
Brian
Ashok
TeamLead
Junior who will be rotated through all 4 teams
Generalist or T-shaped people who can move flexibly across rows on the board to keep work
flowing
It’s typical to see splits of fixed team workers versus flexible system
workers of between 40-60%
Roughly half the labor pool are flexible workers
Promotions from junior team member to flexible
worker with an avatar clearly visualize why a
pay rise is justified. Flexible workers help manage liquidity risk
better!
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Irrefutable Demand
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Don’t miss it!
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Pressure for “push” is partially internal
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What causes irrefutable demand?
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Getting to “pull”
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Is all irrefutable demand as irrefutable as it seems?
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You have more management options than you think!
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Strategies for irrefutable demand
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Shaping Demand : Triage
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Demand Shaping ThresholdDimension 1
Dimension 2
Dimension 3
Dimension 5
Dimension 4
DefinitelyDo
This
Demand shapingthreshold
Talk aboutthis one
DefinitelyDon’tThis
Each risk dimension represents a taxonomy of categories describing
a known risk.
Policy describes the category in each dimension at or
above which we wish to accept demand
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Demand Shaping ThresholdDimension 1
Dimension 2
Dimension 3
Dimension 5
Dimension 4
Don’tDo
This
ExclusionZone
Talk aboutthis one
DefinitelyDo
This
Thresholds can be used to as upper or lower
boundsExclusion zone can be to the outside or inside of the graph
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Get a Demo of Swift ESP!
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SwiftKanban ESP implements Risk Profiling & Demand Shaping to Manage Large “Backlogs”
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Don’t miss it!
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Organizational Maturity
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Personal Kanban
Aggregated Personal Kanban
Team Kanban
Emergent/Undefined Workflow
Per Person WIP LimitCONWIP
Physical spacekanban
Physical token kanban
Virtual KanbanClasses of service
Capacity allocationLiquidity optimization
Aggregated teams
Patterns of Kanban Board Designs
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Relief fr
om
Overb
urdening
Predictability
Fast, Smooth Flow
Risk Hedging
Risk Management
Benefits of improving maturity
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What’s Preventing Getting to “pull”?
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6 Forces Preventing Getting to “Pull”
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1. Not Starting with a Customer Facing Service
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Affecting a Paradigm Shift to “pull”
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2. We are Just Order Takers
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3. Lack of Understanding of Business Risks
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Blizzard Sport & Why Risk Assessment Matters
Blizzard Factory
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Blizzard Sport - Reducing Risk Actual Situation
Production Volume
100%
Make-to-forecastWorld
Sales Volume Reporting to HQ
I II III IV V VI VII VIII IX X XI0%
Risk
LaunchVolume
100% of total –> 90% risk = 90% risk
Cycle Time
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Blizzard Sport – Kanban etc speeds up production
Production Volume
100%
Make-to-forecastWorld
Sales Volume Reporting to HQ
I II III IV V VI VII VIII IX X XI0%
Risk
Adapt production to make-to-order
90% of total –> 70% risk = 63% risk
LaunchVolume
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Blizzard Sport – Risk assessment & sequencing produce a larger payoff in risk reduction
Production Volume
100%
Make-to-forecastUSA / CAN / JP
Make-to-orderWorld
Sales Volume
I II III IV V VI VII VIII IX X XI0%
Risk
30% of total –> 20% risk = 6% risk
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4. A Lack of Mathematical Literacy
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5. Lack of Skill in Negotiation
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6. Lack of Confidence Planning & Scheduling
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Reminder - Don’t miss it!
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Kanban is Ubiquitous!
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Declare Victory & Fight On!
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Thank you!
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About
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 the 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.”
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Screenshots of SwiftKanban ESP risk assessment framework courtesy of Digite
Blizzard Sport inventory at risk assessment slides courtesy of Erix-Jan Kaak and Tecnica Group
Acknowledgements
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Appendices
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Kein Merkeln im Büro !!!
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