Evolving Agile with Discovery Kanban

© Patrick Steyaert, 2014www.okaloa.com

Evolving agile
entrepreneurship in large and
small organizations
April 2014
Patrick Steyaert
patrick.steyaert@okaloa.com
© Patrick Steyaert, 2014


Agenda 2
1. Why Discovery Kanban?
2. What is Discovery Kanban?
WHY
HOW
WHAT
www.discovery-kanban.com


Two types of change
Paradigm consistent
§  In accord with the prevailing climate
Paradigm cracking
§  Challenges the prevailing climate,
involving an unfamiliar perspective of
the problem
3


A paradigm cracking change: A shift in
management discipline
The discipline of market disruptors
§  Technology innovation
§  Efficiency innovation
§  Sustaining innovation
§  Disruptive innovation
Excel in 4 of 4
4
The discipline of market leaders
§  low cost
“operational excellence”
§  customized offerings
“customer intimacy”
§  constant innovation
“product leadership”
Excel in 1 of 3
Paradigm
cracking
change
Corporate management Corporate entrepreneurship


The monkey trap
Start-ups
§  Explore and develop new value
streams
§  Entrepreneurship
§  Vulnerable to stagnation
§  Not getting traction
§  Lock in by early customers
and early revenue
§  Growth pains
5
Incumbents
§  Grow and sustain existing
value streams
§  Performance oriented
management system
§  Vulnerable to disruption
§  Paradigm blinders
§  Massive internal resistance
to moving resources away
from the current business


Buzzcar, Google drive,
Wikispeed
Car as a service
Discover new products and
services under uncertainty
6
Toyota
Deliver what the customer
wants when the customer
wants it
Flow, continuous
improvement
Paradigm cracking in industry
Ford
Everyone can own a car (as
long as it is a black model-T)
Economic efficiency and
predictability
Mass production Lean manufacturing,
Lean product
development
Extreme
manufacturing,
Lean start-up


The cycle of innovation 7
Efficiency
innovation
Sustaining
innovation
Disruptive
innovationTechnology
innovation Differentiators
Enablers
Table stakes
Delighters


Changes in the business landscape 8
Ford: Mount Fuji business landscape
Efficiency innovation
Businessfitness
Toyota: Rugged business landscape
Sustaining innovation
Businessfitness
Future: Dancing business landscape
Disruptive innovation
Businessfitness
Mist between mountains
Poisonous gas in the valleys


The new management discipline 9
Exploration
Exploitation
Using options to explore a
rugged business landscape
Businessfitness
Current position
Option
Option
Option
Using optimization to climb a
peak in the business landscape
Businessfitness
Current position
Optimization
Plan-Do-Check-Adjust
(PDCA)
Observe-Orient-Decide-Act
(OODA)
Commitment
The new management discipline requires excellence at both exploiting existing
value streams as well as exploring new value streams.


Change is the bottleneck 10
Policies and
procedures
Optimization
and efficiency
Incremental
change
Chaos and self-
organization
Failure and
learning
Disruptive
change
Not just a change from exploitation to exploration but to exploitation AND
exploration. It requires a corporate entrepreneurship.
exploitation exploration


Agenda 11
WHY
HOW
WHAT


Start where
you are
Discovery Kanban 12
Shared visual
understanding
Improve
collaboratively
Just like The Kanban Method (and lean startup), Discovery kanban
is an evolutionary approach for paradigm cracking change.


A simple discovery Kanban for large
business transformation programmes
13
§  Reformation driven by business
transformation programmes
§  Programmes require collaboration
between business, IS, suppliers
§  Need for better collaboration and a more
entrepreneurial spirit
§  Execution alone is not sufficient
§  Many elements of uncertainty that
need to be dealt with
§  Exploration alone is not sufficient
§  The programme does need to
efficiently deliver


Visualization 14
A discovery kanban used by a programme management team to
manage issues, risks, options, actions, counter measures and probes.


Items that are visualized
PDCA
§  Probe
§  Time-boxed activity to validate
an option
§  Countermeasure
§  Pro-active activity to address
a risk or implement an
improvement
§  Action
§  Re-active activity to deal with
an issue
15
OODA
§  Option
§  The right to do something,
not the obligation
§  Opportunity & Risk
§  A future problem or event
that, should it occur, will
affect you for good or bad
§  Issue
§  A current problem or event
that has occurred and will
adversely affect you


Visualizing exploration and
exploitation
Decide
Observe
Check
PlanOrient
DoProgramme
& Business
environment
Act
O-O-D-A: Issues, Risks & Options
PDCA: Actions, counter measures and probes
Adjust
16


Managing balance 17
Too much “purple tickets”
The programme is in fire fighting mode, programme
management is reactive.
Introduce risk management and continuous
improvement
Absence of “blue tickets”
Does the programme only have a downside (risk)
and no upside (options)?
Or is it an indication of a risk averse mindset of the
programme management team?
Introduce real options thinking to promote a more
entrepreneurial spirit in the PM team.


Collaboratively improve
FEEDFORWARD
§  Focuses on learning in the
future to reach a new pattern
of operation
§  Work as a team
§  Anticipating, indicates a
desired future
§  Rapid learning – we learn from
the future more rapidly than
we learn from the past.
18
FEEDBACK
§  Responding to abnormalities
and try to get back to
predictable zone
§  Uses information from a past
event to provide reflection
§  Troubleshooting alone is not
an effective form of learning


A more elaborate discovery Kanban to
manage renewal of a flagship product
19
§  Renewal of the flagship product
§  Re-engineering
§  New markets
§  Product management and
development need to collaborate
§  Need for renewal of the flagship
product while maintaining efficient
delivery of the current product


Visualization 20
Visualize different types of features in the end-to-end value stream.


The items that are visualized
21
§  Differentiator
§  Unique and disruptive value
propositions
§  Enabler
§  Platform to deliver the
critical quality
§  Table stakes
§  Minimal features to be
competitive
§  Delighter
§  Extend current value
proposition by delighting
the customer
Table
stakes
Delighters
Differentia-
torsEnablers


Plan-execute-verify
(enablers, table stakes)
Build-measure-learn
(differentiators, delighters)
Visualizing exploration and
exploitation
22
UVP
Idea Option
Real
option
Exercised
option
Validated
option
Lean
canvas MVP
Buying
customers
Pivot /
persevere
1st commitment point 2nd commitment point
narrative
Request
concept
Commitment DeploymentVerificationOption
feature
accepted
feature
deployed
feature


Managing balance 23
>4 5 4
>4 5 4
Managing the balance between exploration and exploitation.
3
3
9
4
B
A
L
A
N
C
E


Collaboratively improve 24
Building on Kanban and Lean startup to
collaboratively improve.
create a new
product or
service under
conditions of
extreme
uncertainty
improving the
fitness for
purpose of an
established
product or
service delivery
Using Discovery Kanban to initiate a collaborative improvement based on
kanban and lean startup.


Conclusion 25
Excellence in a dancing business landscape
requires a new management discipline
-  Market disruption
-  Corporate entrepreneurship
Change is the bottleneck
-  Not just from exploitation to exploration
but to exploitation AND exploration
Discovery kanban is a change approach for
catalyzing this new management discipline
-  Integrating exploration and exploitation in
the value stream
WHY
HOW
WHAT
3. How: Grab free templates at: www.discovery-kanban.com


Special thanks! 26
Sean Murphy
SKMurphy
@skmurphy
Arlette Vercammen
Okaloa
@ArletteVercamme


Thank You
patrick.steyaert@okaloa.com
@PatrickSteyaert

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