10 Years of Kanban - What have we learned

Copyright Lean Kanban Inc. [email protected] @LKI_dja

10 Years of KanbanWhat have we Learned?


2004-2006 Microsoft XIT Sustaining Eng.

Deferred commitment pull system coupled to probabilistic understanding of lead time

• Improved productivity over 200%

• Greatly improved predictability

• Shortened lead times by ~90%

Use of Kanban systems is minimally intrusive for engineers. Process methodologies didn’t change

• PSP/TSP remained in use throughout


Conclusion

Kanban is good for service delivery


2006 Validating Evidence

Eric Landes at Robert Bosch copies XIT solution for intranet maintenance and produces similar results

HP Printer Firmware Division, Boise, Idaho, implements a kanban system as part of a Lean initiative and attributes 400% of an 800% productivity improvement to kanban. Lead times fall from 21 months to 3.5 months


Conclusion

Kanban and its resultsare repeatable


2007 Kanban Method Emerges

Kanban systems aren’t enough when there is too much variability in the workflow and too much heterogeneity of work types and trouble matching worker skills & experience

• Now known as a system liquidity problem

• Visual boards are introduced

• Kanban limits create stress & provoke process improvements

• Multiple classes of service emerge


2007 Kanban Method Matures

A combination of elements of Kanban such as system replenishment, classes of service, understanding cost of delay, transparency and metrics start to change entire company culture

Operations review drives BU wide improvements and starts to influence other BUs within the firm


Conclusion

The Kanban Method is a management system for

cultural change & improving organizational maturity


2007 First Kanban Software

Digital Whiteboard application developed by Darren Davis at Corbis runs on top Microsoft Team Foundation Server

Workers run Digital Whiteboard on their desktop but continue to use physical boards in parallel


Conclusion

We need software to get good metrics easily and amplify the management value of Kanban


2007 Kanban on Big Projects

$11 million budget project with up to 55 people, 16 month schedule, approximately 2400 user story scope

2-tiered kanban boards emerge to visualize parent-child dependencies in requirements

Introduces hybrid of dedicated teams and floating project personnel using avatars

• Specialists such as architects, UX

• Generalists who can help any team


Conclusion

Kanban is useful on large projects to improve

predictability.

More guidance on prioritizing backlogs is required at large

scale.


2008 Early Adopters Emerge

Media, Internet, SaaS firms are primary early adopters

Media, Internet & SaaS firms suffer from acute, self-evident cost of delay and ‘tyranny of the timebox’ challenges. Kanban address these issues for them


2009


2009 Lean Kanban Conference

First community conference held in Miami. Only 58 attendees. Sponsored by Ultimate Software (who will continue to support us for the next 6 years)

Full day, single track of Kanban content includes case studies from

• Motley Fool• SEP• Inkubook /

Authorhouse• Phidelis• Yahoo!


2009 Definition of Kanban Method

The Kanban Method is positioned as an approach to evolutionary improvement

Recognizing that kanban systems were part of a wider management system, the whole system is named for the use of kanban systems


2009 “Be Like Water”

Joe Campbell’s blog post inspires step 1 of the Ladder of Escalating Motivation for Change, and our primary strategy for resistance to change which is to avoid it

This will lead to the comparison of Kanban with Bruce Lee’s journey with Jeet June Do, and the development of Fitness for Purpose and the concept of an adaptive anti-fragile enterprise

http://joecampbell.wordpress.com/2009/05/13/be-like-water/

http://joecampbell.wordpress.com/2009/05/13/be-like-water/


2009 More Validating Evidence

First case emerges which replicates the cultural effects observed in 2007 at Corbis

• IPC Media, London (Rob Hathaway, Indigo Blue)

First real evidence that the Kanban Method is a repeatable and predictable system of management


2009 Commercial Software

Entrepreneurs introduce commercial Kanban software products. Initial products come from fans who’ve followed the journey for years Leankit Kanban from

Nashville, Tenessee

Tools for Agile, Silver Catalyst, Pune, India

SwiftKanban starts in 2010


2009 “Tyranny of the Timebox”

“Tyranny of the Timebox” concept emerges at Agile 2009 after Arlo Belshee/Jim Shore explain the discontinuity from discrete processes (timeboxes) to continuous processes (kanban systems)

• Simply making timeboxes smaller to improve agility would never lead you to adopt Kanban.

• Kanban was a discontinuous and non-obvious innovation in the Agile community


2009 Portfolio Kanban

First Portfolio Kanban example presented at Agile 2009

• There is no WIP limit at the portfolio level

• Limit WIP on projects, MMFs or MVPs doesn’t make sense


2010 – Kanban “blue book”


2010 - STATIK

Recognizing the need to teach people how to get started with Kanban, training classes adopt the use of the STATIK exercises

STATIK = the Systems Thinking Approach To Implementing Kanban

• the method is presented at conference in 2012

• the acronym will not be introduced until 2013


2010 High Maturity Organizations

Kanban is recognized as a method that encourages adoption of higher maturity quantitative methods

Kanban is also recognized as a key part of accelerated organizational maturity improvement

• Published case studies describe CMMI …….. ML1-ML2 in 3 months, ML2-ML3 in 9 months, ML3-ML5 in 9 months

• These timescales are “off the scale” compared to typical timescales for CMMI adoption


2010 Upstream Kanban

Initially in Belgium and France

Upstream Kanban will evolve into Discovery Kanban lead by Patrick Staeyert and his client Nemetschek Skia. Case study will be published in 2013


2010 Proto-Kanban

First recognized in the Posit Science case study in 2009, pre-kanban system implementations without a full pull system are recognized as an important part of the coaching toolbox

Richard Turner of the Stevens Institute coins the term “proto-Kanban” to describe these pre-pull system implementations that eventually evolve into full Kanban

3 Types of Proto-Kanban are eventually recognized

• Aggregated personal kanban

• Aggregated team kanban

• Per-person WIP limits


2010 IT Operations


2010 Break out from IT Sector

Stories of Kanban in HR/Recruitment, Sales, and other functions emerge

Medium-sized owner-managed firms begin to adopt Kanban enterprise wide

• e.g. Huddle Group, Argentina

In 2011 stories of legal firms using Kanban for case files emerged in UK and New Zealand


2011 Large Scale Enterprise Adoption

Business unit wide adoption begins to emerge at firms such as

• Petrobras• McKesson• Vanguard• Amdocs


2011 Lean Kanban University established

edu.leankanban.com

Accredited Kanban Trainer program inaugurated with 16 founding member companies and over 20 AKTs• Standardized “practitioner”

curriculum published


2013 – Kanban Agendas


2013 Fitness for PurposeService-orientation allows us to ask what makes a service “fit for purpose”

Fitness criteria are metrics that measure things customers value when selecting a service again & again

• Delivery time• Quality• Predictability• Safety (or conformance

to regulatory requirements)


2013 Kanban Values

Transparency Balance Collaboration

CustomerFocus Flow Leadership

Understanding Agreement Respect


2014 Kanban from the Inside


2013 Scale-free understandingEliminating unbounded queues

• Proto-kanban to full workflow kanban

• Coupling interdependent network of kanban systems

Andy Carmichael’s Smallest Possible Definition of Kanban

See Flow,Start Here,

With visible work & policies, validate improvements

Core practices renamed “general practices” with specific practices at different scales

• Personal/team Kanban• Service Delivery /

Workflow Kanban• Portfolio Kanban


2014 Kanban Litmus Test


What we now know!


What we now know!


What we now know!


What we now know!


A vision from 2003In 2003, I described my work with Feature-driven Development (FDD) & Agile Management as “like MRP for Knowledge Work” Instead Don Reinertsen said,

“you have all the pieces in place to adopt the use of kanban systems”


Kanban to MRP


A vision for 2015We now have all the pieces in place to start managing modern business where employees “think for a living” and make decisions – knowledge worker businesses – and managing them with the rigor, anticipation and risk awareness that I envisaged in 2003

I now call this future visionEnterprise Services Planning

(ESP)


Enterprise Services Planning


You are part of a professional services business!

An ecosystem of professionals providing interdependent services, often with complex dependencies.

Professional Service organizations build intangible goods


The challenge of professional services businesses

A constantly changing external environment has a ripple effect across your entire business ecosystem

Priorities change and required capability & service levels rise in response to competition, disruptive market innovation & changes in customer tastes


What should we start next? Will it be

delivered when we need it?

Do we have capacity to do everything we

need to do?


How will dependencies

affect our ability

to deliver?

How many activities should

we have running in parallel?

If we delay starting something, will the capacity be available

when we need it?


Dem

and

ObservedCapability

Dem

and

Dem

and

ObservedCapability

ObservedCapability

ESP – Anticipating Demand, Allocating CapacityLooking downstream, you want the system to help you anticipate

and manage dependencies


ESP – Anticipating Demand, Allocating CapacityDe

man

d

ObservedCapability

Dem

and

Dem

and

ObservedCapability

ObservedCapability

Looking upstream, you want the system to help you anticipate and

manage demand


Dem

and

ObservedCapability

Dem

and

Dem

and

ObservedCapability

ObservedCapability

ESP – Anticipating Demand, Allocating Capacity

Combine the two, and across the organization you smooth flow end-to-

end and help keep demand in balance withoverall system capability



Enterprise Services Planning (ESP) is an enterprise-wide management solution that leverages Kanban* to improve each service within your business.


Enterprise Services PlanningManufacturing

1947 – Kanban1964 & 1975 – MRP

Professional Services

2004 – Kanban2015 – ESP

ESP is “MRP for professional services”. ESP is for managing capacity & scheduling intangible work.

ESP uses algorithms enabled with data from analysis of the work requests, our existing capability, and knowledge of customer expectations, to make recommendations






ESP & Kanban is a complete management system


Thank you!


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 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 & CEO 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.”


Date post:	15-Apr-2017
Category:	Leadership & Management
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10 Years of Kanban - What have we learned

Leadership & Management