introducing enterprise services planning

[email protected] @leankanbanu Copyright Lean Kanban Inc.

Improving agility one

service at a time

Anticipating demand across an

ecosystem of shared services

Enterprise Services PlanningScaling the benefits of Kanban


Lean Kanban North America 2015 conference


Kanban Coaching Professional Masterclass


Microsoft XIT Sustaining Engineering

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


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


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


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


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.


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


Kanban has 3 approaches to scaling


The Kanban Lens


Treat each service separatelyDe

man

d

ObservedCapability

Dem

and

Dem

and

ObservedCapability

ObservedCapability

Analyze demand & capability for each service independently

Design a Kanban system for each service using the STATIK method.

Scale out in a service-oriented fashion, one service at a time


Anticipating Demand, Allocating CapacityDe

man

d

ObservedCapability

Dem

and

Dem

and

ObservedCapability

ObservedCapability

Looking downstream, you want the system to help you anticipate

and manage dependenciesLooking upstream, you want the system to help you anticipate and

manage demand

Combine the two, and across the organization you smooth flow

end-to-end and help keep demand in balance withoverall system capability


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


• Becoming Data-Driven• Objective Retrospectives• Forecasting• Enterprise Kanban & Lean Startup• Scrumban• Kanban Coaching• Blockers for Improvement• RBS Project Sizing• Kanban Academic Research …


Enterprise Services PlanningEnterprise Services Planning is a new modular 5-day training program from Lean Kanban which will be available from 2nd quarter 2015

Kanban is now table stakes. Large scale benefits are enabled by implementing Enterprise Services Planning

Here are two small sections of the training material highlighting some planning & risk management concepts for scheduling & sequencing work at project or portfolio level …


Lean Kanban Training RoadmapThe

KanbanMethod(2 days)

Intro toKanban(1 day)

Ready Trained

GettingStarted

with Kanban(2 days)

Enterprise Services Planning(5 days)

Ready Trained Ready Trained Ready Training Trained

Train the Trainer (5 days)Read

yTrained Qualified

Coaching Masterclass (5 days)Read

yTrained Qualified

KMPKMP

KMPKMP

KMP

KMP

Kanban Proficiency


Moving the conversation away from process improvement and towards management and decision frameworks

conf.leankanban.com edu.leankanban.com

leankanban.com

“Power in Simplicity”


Essence of the Lean Kanban brand

Pragmatic, actionable evidence-based guidance!

Something you can take away and implement next Monday


ESP Training Modules


Beta test special offer


Scheduling


When should we start something?

impa

ct

When we need it

85th percentile

Ideal StartHere

Commitment point

timeJan10

Nov11

If we start too early, we forgo the option and opportunity to do something else that may

provide value.

If we start too late we risk incurring the cost of delay

If we pull the work into our kanban system on Nov 11 we

have a 6 out of 7 chance of on-time delivery


We can study sensitivity to different start dates

impa

ct

When we need it

50th percentile

Later StartHere

Commitment point

timeJan10

Nov25

If we start as late as November 25 we only have a 50% chance

of on-time delivery

However, the cost of delay incurred if we deliver within 60

days is relatively small. We have an 85% chance of achieving delivery with acceptable cost of delay

85th percentile


What is the latest we could start?

impa

ct

When we need it

0th percentile

Very latestart

Commitment point

timeJan10

Dec19

If we start as late as December 19 we have 0% chance of on-

time delivery

We have about a 10% chance of a total loss delivering the

promotion beyond the expiry date of the opportunity

85th percentiletotal loss


To be certain of delivery without incurring any cost of delay is expensive

impa

ct

When we need it

98th percentile

Early Start

Commitment point

timeJan10

Aug11

If we are conservative and do not wish to carry any risk of late delivery or any risk of

incurring an opportunity cost of delay, then we must start as

early as August 13th.

We must commit to our Spring Break 2015 promotion during

Summer 2014!!!


Window of opportunity

impa

ct

When we need itEarliest Start

timeJan10

Aug11

Latest viable

start

Dec19

Optimal Start

Nov11

On August 11st the item becomes available for selection

at Kanban system replenishment.

The ideal time to start is November 11th.

After December 19th our option to deliver this item expires and

we would discard it from our pool.


Lead time is perhaps the most important metric we gain from

kanban systemsLead time coupled with cost of

delay sensitivity analysis is a key enabler of deferred commitment and consensus on when to make

commitments

Lesson


We need tools!


Tools will facilitate decision making


Enterprise Services Planning“The Future of Kanban”


Kanban experience reports

app and mobile development

Including…


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 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.”

introducing enterprise services planning

Leadership & Management