Kanban - an alternative path to agility (Agile Russia)

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. Presenter David J. Anderson CEO, Lean Kanban Inc. Agile Days Moscow March 2014 Release 1.1 Kanban An Alternative Path to Agility

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. The Meaning of Agile

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. What Agile Methods Seek to Achieve Let’s not bore you (yet again) with a slide showing the Agile Manifesto! Agile methods ask us to… Make Progress with imperfect information Reworking & course correcting as new information arrives is better risk management & faster than delaying for “perfect” information Enable a high trust culture The trust dividend eliminates bureaucracy & encourages collaborative working & use of tacit knowledge Treat work-in-progress as if it were a liability rather than an asset Knowledge work is perishable. Focus on finishing things quickly before they go stale Create Feedback Loops & enable a capability to adapt With 1st gen Agile methods this was limited to adapting to changing requirements or scope Create a craftsmanship work ethic Encourage high quality, well engineered code that is easily adapted (refactored) as new information arrives and requires very little rework due to errors

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. The Kanban Method – an alternative path to agility!

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. The Old Model (18th-20th Century) Managers Process Workers Process Coaches Designs Or DefinesImposes Follow Assign Workers To Tasks Managers & Workers – 2 different classes Manager as “dating agent” Model

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. The New Model (21st Century) Managers ProcessWorkers Process Coaches Facilitate learning Control & Evolve Policies All Knowledge Workers make management decisions Pay grade relates, decision making, risk & authority to override or change process policies

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. True Management Training Very few knowledge workers are given proper management training. They don’t know what business they are in!

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. What Service Do You Provide? 1. Who are your customers? (or other stakeholders you must serve such as a regulatory authority) 2. What do they ask you for? 3. What is the nature of the demand? (arrival rate and pattern of arrival) 4. What risks are associated with those requests? 5. What do you do to those requests? 6. Where does the finished work go?

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. Scaling Kanban in the Enterprise is about Scaling Effective Management The Kanban Method is not… A project management or software development lifecycle process Nor, does it encourage a process-centric approach to improvement! It’s a service-oriented approach to management & organization

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. Kanban Method Uses large boards to visualize invisible work and virtual signal card systems Creates an adaptive capability in your organization Enables adaptability in your business processes to respond successfully to changes in your business environment

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. Kanban Method • “Kanbanize” your existing process • Provoke existing processes to change and service delivery to improve • Each workflow will evolve a uniquely tailored process solution, “fitter” for its context • Customer & employee satisfaction will improve

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. Kanban has two meanings • Kanban has two meanings in Japanese. Both meanings are incorporated into the Kanban Method • Kanban written in Kanji (Chinese characters) 看板 means “sign” or “large visual board” • Kanban written in Japanese alphabet, hiragana, かんばん means signal cards(s) • In Chinese, only the 看板 version exists. Hence, in Chinese, kanban can only mean “sign board” but the method was actually inspired by the signal cards system used in Japan.

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. Kanban’s Generalized Practices 6 Practices Enable Adaptive Capability Visualize (with a kanban board (看板)) Limit Work-in-progress (with kanban (かんばん)) Manage Flow Make Policies Explicit Implement Feedback Loops Improve Collaboratively, Evolve Experimentally (using models & the scientific method)

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. What is a kanban system? (かんばん)

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. A Kanban Systems consists of “kanban” (かんばん) signal cards in circulation

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. Using a virtual kanban system

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. F F O M N K J I Pull Kanban systems are pull systems Ideas D I Dev Ready G 5 Ongoing Development Testing Done 3 3 Test Ready 5 F B CPull Pull * There is capacity here UAT Release Ready ∞ ∞ Pulling work from development will create capacity here too – the pull signals move upstream! Now we have capacity to replenish our ready buffer

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. F F FF F F J I Pull Kanban are virtual! Ideas D I Engin- eering Ready G 5 Ongoing Development Testing Done 3 3 Test Ready 5 F B CPull Pull These are the virtual kanban * These are the virtual kanbanThese are the virtual kanbanThese are the virtual kanban The board is a visualization of the workflow process, the work-in-progress and the kanban system Boards are not required to do Kanban! The first system used database triggers to signal pull. There was no board! UAT Deploy- ment Ready ∞ ∞

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. F F O M N K J I Kanban can be physical Ideas D I Dev Ready G Development Testing Test Ready F B C UAT Release Ready In-progress Legend 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

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. Commitment is deferred E I D Commitment point F F FF F F F Pull Wish to avoid aborting after commitment Ideas Dev Ready 5 Ongoing Development Testing Done 3 3 Test Ready 5 UAT Release Ready ∞ ∞ We are committing to getting started. We are certain we want to take delivery. Ideas remain optional and (ideally) unprioritized G

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. Discard rates are often high E I D F F F F G I Reject Ideas Dev Ready 5 Ongoing Development Testing Done 3 3 Test Ready 5 UAT Release Ready ∞ ∞ Discarded The discard rate with 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

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. Upstream Kanban Prepares Options Ready for Engin- eering F I Comm- itted D 4 Ongoing Development Done 3 J K 12 Testing Verification 3 L Commitment point 4 - Requi- rements Analysis 2412 - Biz Case Dev 4824 - Pool of Ideas ∞ Min & Max limits insure sufficient options are always available Committed WorkOptions Discarded O Reject P Q $$$ cost of acquiring options

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. Test Ready F F FF F F F Replenishment Frequency E I G D Replenishment Discarded I Pull Ideas Dev Ready 5 Ongoing Development Testing Done 3 35 UAT Release Ready ∞ ∞ The frequency of system replenishment should reflect arrival rate of new information and the transaction & coordination costs of holding a meeting Frequent replenishment is more agile. On-demand replenishment is most agile!

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. Test Ready F F FF F F F Delivery Frequency E 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 Ideas Dev Ready 5 Ongoing Development Testing Done 3 35 UAT Release Ready ∞ ∞ UAT and Release buffer sizes can reduce as frequency of delivery increases Frequent deployment is more agile. On-demand deployment is most agile!

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. Test Ready F F FF F F F Specific delivery commitment may be deferred even later E I G D 2nd Commitment point* Discarded I Ideas Dev Ready 5 Ongoing Development Testing Done 3 35 UAT Release Ready ∞ ∞ We are now committing to a specific release date *This may happen earlier if circumstances demand it

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. Test Ready F F FF F F F Defining Kanban System Lead Time E I G D Pull System Lead Time Discarded I Ideas Dev Ready 5 Ongoing Development Testing Done 3 35 UAT Release Ready ∞ ∞ 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

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. Avg. Lead Time Avg. Delivery RateWIP Pool of Ideas Ready To Deploy Little’s Law & Cumulative Flow Delivery Rate (from the kanban system) System Lead Time WIP =

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. F F FF F F F Defining Customer Lead Time UAT E I Dev Ready Delivery Ready G D 5 ∞ Pull Ongoing Development Testing Done 3 3 Test Ready 5 ∞ Customer Lead Time The clock still starts ticking when we accept the customers order, not when it is placed! Abandoned J Pool of Ideas Done ∞ Frequency of batch transfers needs to be calculated and added to kanban system lead time to calculate customer lead time Frequency of batch transfers needs to be calculated and added to kanban system lead time to calculate customer lead time

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. Test Ready Flow Efficiency F E I G D GY PB DE MN P1 AB Customer Lead Time Waiting Waiting WaitingWorking * 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 35 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 WaitingWorking

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. Observe Lead Time Distribution as an enabler of a Probabilistic Approach to Management Lead Time Distribution 0 0.5 1 1.5 2 2.5 3 3.5 1 8 15 22 29 36 43 50 57 64 71 78 85 92 99 106 113 120 127 134 141 148 Days CRs&Bugs SLA expectation of 44 days with 85% on-time Mean of 31 days SLA expectation of 105 days with 98 % on-time This is multi-modal data! The work is of two types: Change Requests (new features); and Production Defects This is multi-modal data! The work is of two types: Change Requests (new features); and Production Defects

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. Filter Lead Time data by Type of Work (and Class of Service) to get Single Mode Distributions 85% at 10 days Mean 5 days 98% at 25 days ChangeRequests ProductionDefects 85% at 60 days Mean 50 days 98% at 150 days

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. Metrics for Kanban Systems Cumulative flow integrates demand, WIP, approx. avg. lead time and delivery rate capabilities Lead time histograms show us actual lead time capability Flow efficiency, value versus failure demand (rework), initial quality, and impact of blocking issues are also useful

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. Kanban Improves Agility • Lead times gradually reduce • Predictability of delivery gradually improves • Organizational social capital improves • Governance, risk management are improved • Empowerment without loss of control • Improves are often dramatic! • 700% increase in delivery rate at BBC • On-time delivery often greater than 90% • Delivery times often reduced by up to 90%

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. Kanban Coming to Russia… Moscow September 24-25 Venue to be announced. Watch… http://conf.leankanban.com http://conf.leankanban.ru/

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. Learn More http://www.limitedwipsociety.org http://edu.leankanban.com @leankanbanu

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. Thank you!

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. Upcoming Training in Europe Leading Change & Managing Risk Masterclasses Stockholm March 24-28 http://djaa.com/kcpm-022014b Vienna March 31 – April 4 http://www.djaa.com/kcpm-05201401 Berlin May 19-23 http://www.djaa.com/kcpm-05201401

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. 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 leads Lean Kanban Inc., a global management training, events & publishing business dedicated to offering high quality, innovative, modern management training for the creative knowledge worker industries of the 21st Century.

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. Acknowledgements 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 & the optimal exercise point as an improvement over “last responsible moment” emerged from discussions with Chris Matts, Olav Maassen and Julian Everett around 2009. The inherent need for evolutionary capability that enables organizational adaptation was inspired by the work of Dave Snowden.

dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc. ICAgile.com/AgileDays14 Your Code: AD14112

Kanban - an alternative path to agility (Agile Russia)

by David Anderson, CEO at Lean Kanban Incorporated

on May 04, 2014

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Kanban - an alternative path to agility (Agile Russia) Presentation Transcript