Download - Kanban @ Vanguard
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Kanban @ VanguardAn Experience Report
The Lean Kanban Global SummitAlexandria, VA USA13 May 2019 1:30pm – 2:30pm EDT
David Hughes, KCP
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Vanguard Fast Facts
One of the world’s largest investment management companies, named for a distinguished 18th century vessel.
About 415 low-cost traditional funds and ETFs.
18 locations worldwide with about 17,600 crew members.
About $5.2 trillion in global assets under management
Character counts.
Vanguard is widely recognized as a leader in low-cost investing and a steadfast advocate for the interests of all investors.
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Vanguard Fast Facts
For more information, please contact the Public Relations Team at
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4For internal use only. Not for public distribution.
Vanguard’s Lean Operating Model
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Business Value @ Startup Speed Program
Agile “Transformation” Since 2007
• Scrum Method “Official”
• Federated Structure
DevOps Enabling Practices since 2014
• Solutions Path
• Modern Work Practices
• Modern Technologies
• Modern Infrastructure
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Studying Maturity Levels
Kanban Adoption Increasing• Fast Flow
• Fast Feedback
• Fast Learning
Year-long effort
• Population ~ 240 teams
• 10% sample
Independent sampling dimension
• 700 individual practitioners
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Testing the Lean Operating Model
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Testing the Lean Operating Model - Hypotheses
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Testing the Lean Operating Model - Hypotheses
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Testing the Lean Operating Model - Hypotheses
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Testing the Lean Operating Model - Hypotheses
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Kanban @ Vanguard
Empirical Results Recovering From Scrum Stall
Avoiding Scrum Stall
Never Experiencing Scrum Stall
STATIK Through No-stall Scrum
ESP’s Positive Impact on Kanban Maturity Levels
Vanguard Examples Through the KMM Lens
Conclusions
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Why?
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Why?
1. Problem Hypothesis
2. Scrum “before” Kanban “after”
3. Critical success factors
4. Kanban maturity levels
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How?
Training and workshops
Multi-leveled “flights” of boards
Time-boxed iterations
New ways of thinking and working
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… And How!
Coaching deeply
Old-fashioned system context diagramming
ESP operations review
Upstream filtering
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Kanban @ Vanguard
Empirical Results Recovering From Scrum Stall
Avoiding Scrum Stall
Never Experiencing Scrum Stall
STATIK Through No-stall Scrum
ESP’s Positive Impact on Kanban Maturity Levels
Vanguard Examples Through the KMM Lens
Conclusions
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Scrum Stall Symptoms
Mediocre Lead Time Mediocre Average Delivery Rate
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Scrum Stall Causes
Myopia
PO Bottleneck
Hortator
Drum Beater For These Guys
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Scrum Stall Effects
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Team P
Database platform for Financial systems
• Projects• Recurring maintenance• Break-fix• Enhancements• Service and support
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Team P: Pre-Kanban State, One Year
Average delivery lead time 38 to 57 days.
Low work item volume “elevated” to production.
Who is the customer? For what service?
Quick-fix manual process flow.
Scrum Stall
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Team P: Evolution Through Systems Thinking
Visualization Through Classical Systems Analysis
• System context diagram
• System workflow
• Affinity grouping classes of service
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Team P: Evolution Through Systems Thinking
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Team P: Evolution Through Systems Thinking
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Team P: Evolution Through Systems Thinking
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Team P: The View Upstream (Original Scrum Stall)
Phone Calls/
Meetings
Individual Emails
Enterprise Support Emails
Team P
(JIRA)
Recurring Activities
Team Initiatives
Technical Debt
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Team P: The View Upstream (Kanban)
SharePoint
Phone Calls/
Meetings
Individual Emails
Enterprise Support Emails
Team P
(JIRA)
Recurring Activities
Team Initiatives
Technical Debt
Daily Feed
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Team P: ESP Context
Operations review with mid-level management and all teams (new monthly meeting).
Replenishment meeting including mid-level management (repurposed existing meeting).
Kanban standup meeting with the team, itself, with enhanced collaboration among parallel teams (repurposed, refined existing meeting).
Strategy review with the financial system governance board (repurposed existing meeting).
Delivery planning with production release CI/CD pipeline technical management (repurposed existing meeting).
Risk reviews with PMO.
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Team P: New Perspective on Customers
Workflow Optimization Metrics
Classes of Service
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Team P: Classes of Service
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Team P: Realistic Work Flow
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Team P: Flow Metrics
1yr Scrum 90d Kanban & ESP
Not
hing
H
ere!
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Team P: Flow Metrics Repeated Month-by-Month
System Lead Time
September
Mean 10.0 days
Stdev 8.2 days
System Lead Time
October
Mean 7.5 days
Stdev 9.3 days
System Lead Time
November
Mean 8.6 days
Stdev 9.1 days
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Team P: Flow Metrics @ 3 Months
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Team P: Flow Metrics @ 5 Months
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Team P: Bottleneck Root Cause Analysis
yymmddCT 32 28.1% It appears that 15% of the workers (four people) are responsible for delivering nearly 60% of the work.SD 15 13.2%KV 12 10.5%RS 9 7.9% 59.6%DW 6 5.3%LA 5 4.4%SL 5 4.4%BV 4 3.5%SD 4 3.5%KM 3 2.6%PM 3 2.6%VS 3 2.6%AS 2 1.8%BS 2 1.8%HD 2 1.8%JN 2 1.8%TG 2 1.8%DK 1 0.9%JD 1 0.9%MJ 1 0.9%BC 0 0.0%DT 0.0%KJ 0.0%PM 0.0%VT 0.0%
114 100.0%0
5
10
15
20
25
30
35
CT SD KV RS DW LA SL BV SD KM PM VS AS BS HD JN TG DK JD MJ BC DT KJ PM VT
PSP Labor-WorkItem Allocation YYMMDD
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Team P: Kanban Method
PRINCIPLES• Start with what you do now.• Agree to pursue evolutionary
change.• Encourage acts of leadership at
every level.• Focus on the customer.• Manage the work and let people
self-organize.• Evolve policies to improve
outcomes.
PRACTICES
• Visualize
• Limit WiP
• Manage flow
• Make policies explicit
• Feedback loops
• Improve and evolve
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Kanban @ Vanguard
Empirical Results Recovering From Scrum Stall
Avoiding Scrum Stall
Never Experiencing Scrum Stall
STATIK Through No-stall Scrum
ESP’s Positive Impact on Kanban Maturity Levels
Vanguard Examples Through the KMM Lens
Conclusions
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Team Q
Revenue and rebate systems and services within Finance
• External vendors• Projects• Recurring maintenance• Break-fix• Enhancements• Service and support
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Team Q: Visualizing the Alternative Path to Agility
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Team Q: The Power of a Physical Board
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Team Q: The Power of the Physical Board
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Team Q: The Power of a Physical Board
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Team Q: The Retrospective Habit
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Team Q: Upstream Filter Board
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Team Q: Flow Metrics – Success with STATIK!
1yr Scrum 90d Kanban & ESP
Littl
e H
ere!
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Team Q: Flow Metrics – Spectacular Acceleration!
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Team Q: Critical Success Factors
Big, visible physical Kanban board
• Correlated with JIRA virtual Kanban board and automated metrics
Upstream filtering
• Simplest “board” that could possibly work with the simplest policy
Focus on bottlenecks
• Systems thinking + Theory of Constraints
• External vendors included with internal team
Kanban Maturity Model
• Implicit through deep coaching
• Reflecting good behavior, not explicitly driving it
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Team Q: Critical Success Factors
Big, visible physical Kanban board
• Correlated with JIRA virtual Kanban board and automated metrics
Upstream filtering
• Simplest “board” that could possibly work with the simplest policy
Focus on bottlenecks
• Systems thinking + Theory of Constraints
• External vendors included with internal team
Kanban Maturity Model
• Implicit through deep coaching
• Reflecting good behavior, not explicitly driving it
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Team Q: Critical Success Factors
Big, visible physical Kanban board
• Correlated with JIRA virtual Kanban board and automated metrics
Upstream filtering
• Simplest “board” that could possibly work with the simplest policy
Focus on bottlenecks
• Systems thinking + Theory of Constraints
• External vendors included with internal team
Kanban Maturity Model
• Implicit through deep coaching
• Reflecting good behavior, not explicitly driving it
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Team Q: Critical Success Factors
Big, visible physical Kanban board
• Correlated with JIRA virtual Kanban board and automated metrics
Upstream filtering
• Simplest “board” that could possibly work with the simplest policy
Focus on bottlenecks
• Systems thinking + Theory of Constraints
• External vendors included with internal team
Kanban Maturity Model
• Implicit through deep coaching
• Reflecting good behavior, not explicitly driving it
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Team Q: Critical Success Factors
Big, visible physical Kanban board
• Correlated with JIRA virtual Kanban board and automated metrics
Upstream filtering
• Simplest “board” that could possibly work with the simplest policy
Focus on bottlenecks
• Systems thinking + Theory of Constraints
• External vendors included with internal team
Kanban Maturity Model
• Implicit through deep coaching
• Reflecting good behavior, not explicitly driving it
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Kanban @ Vanguard
Empirical Results Recovering From Scrum Stall
Avoiding Scrum Stall
Never Experiencing Scrum Stall
STATIK Through No-stall Scrum
ESP’s Positive Impact on Kanban Maturity Levels
Vanguard Examples Through the KMM Lens
Conclusions
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Team C
Compliance operations in the Legal unit.
• Monitoring tools• Communications content and channels• Small work items• Enhancements• Technical changes• Deadline and dependency management
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Team C
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Team C: Flow Metrics
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Team V
Web-based user experience.
• New product development
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Team V
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Team V
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Kanban @ Vanguard
Empirical Results Recovering From Scrum Stall
Avoiding Scrum Stall
Never Experiencing Scrum Stall
STATIK Through No-stall Scrum
ESP’s Positive Impact on Kanban Maturity Levels
Vanguard Examples Through the KMM Lens
Conclusions
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Team J
Data Analytics
• New product development
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Team J: Scrum Team with Kanban Practices
To Do board – separate class of service not related to vision
Scrum board – as simple as possible, no workflow, per se
No story pointing
Ferocious commitment to constant product backlog refinement
Ruthless about not wasting time
Massively committed to customer engagement
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Team J: Flow Metrics
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Team J: Flow Metrics
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Kanban @ Vanguard
Empirical Results Recovering From Scrum Stall
Avoiding Scrum Stall
Never Experiencing Scrum Stall
STATIK Through No-stall Scrum
ESP’s Positive Impact on Kanban Maturity Levels
Vanguard Examples Through the KMM Lens
Conclusions
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Enterprise Services Planning : Vanguard CSFs
Operations Review
Backlog Refinement and Replenishment
Repurpose Existing Meetings
• Strategy, risk review
• Delivery planning
Stand up meetings
Service Delivery Review
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Kanban @ Vanguard
Empirical Results Recovering From Scrum Stall
Avoiding Scrum Stall
Never Experiencing Scrum Stall
STATIK Through No-stall Scrum
ESP’s Positive Impact on Kanban Maturity Levels
Vanguard Examples Through the KMM Lens
Conclusions
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Manage Flow
Automated fast feedback metrics through JIRA
Upstream filtering – the secret success sauce!
Backlog replenishment / refinement.
Focus immediately on service class modeling and workflow visualization, together
Commit to an operations review meeting immediately
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Make Policies Explicit
Establish initial request acceptance policies
• Upstream filtering – the secret success sauce!
Establish pull criteria
Establish a delivery commitment point
Classes of service
• Define them immediately and together with workflow visualization
• Establish customer acceptance criteria
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Kanban @ Vanguard
Empirical Results Recovering From Scrum Stall
Avoiding Scrum Stall
Never Experiencing Scrum Stall
STATIK Through No-stall Scrum
ESP’s Positive Impact on Kanban Maturity Levels
Vanguard Examples Through the KMM Lens
Conclusions
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Why?
1. Problem Hypothesis
2. Scrum “before” Kanban “after”
3. Critical success factors
4. Kanban maturity levels
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… And How!
Coaching deeply
Old-fashioned system context diagramming
ESP operations review
Upstream focus
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Testing the Lean Operating Model
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Testing the Lean Operating Model
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Validated Results – Method Selection Trends
• 240 team population• 10% sample• All started with Scrum• 40% switched/switching to Kanban
Switched-to Kanban teams outperform all but one of the very best Scrum teams.
• JIRA control chart and cumulative flow diagram• 4% awareness• 1.5% using to drive inspect & adapt behavior
Kanban teams at or above KMM level 2 embrace these JIRA reports.
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Validated Results – Empirical Measures for Value
Team level success with JIRA reports:• System lead time (scatter plot)• Cumulative flow diagram
Enterprise level success with four DevOps measures:• Deployment frequency• Change failure rate• Build cycle time• Mean time to recovery
Automated code pipelines are CSFs for “elevating” quality code to production early & often.
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Validated Results – Scientific Method
• Yes, team month-over-month• Yes, across teams and business areas
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Scientific Method Applied – Repeatable Results
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Validated Results – Critical Success Factors
1. System context diagramming2. Upstream filtering3. Backlog refinement4. Affinity grouping – service classes5. Explicit policy definition6. Preserving options to pivot
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Final Thoughts – Promoting Leadership At All Levels
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Kanban @ Vanguard
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Kanban @ VanguardDavid Hughes, KCP
Website: https://dhughes-avc.com/LinkedIn Profile: linkedin.com/in/david19341