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Kanban is refreshing v3

David Anderson speaking at the Kanban Coaching Exchange on 26th May 2020.

Kanban is refreshing v3

  1. 1. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business Presented by: David J Anderson Bringing clarity, predictability & sanity to a world filled with stress & anxiety Version 1.1 May 2020 Kanban Coaching Exchange 26th May 2020 Kanban is Refreshing!
  2. 2. Kanban provides a refreshing approach to managing your business
  3. 3. Kanban refreshes… 1. Your employee engagement 2. Your product & service delivery 3. Your customer satisfaction 4. Your economic performance 5. Your organizational culture 6. Your business resilience
  4. 4. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business Employee Engagement
  5. 5. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business Employee engagement Visualization … a sense of purpose …relief from overburdening … hope … cooperation, collaboration & trust …alignment & unity
  6. 6. Employee engagement 1. Visualize work, workflow, risks, purpose, customers 2. WIP Limits Relieve workers & workflow from overburdening Improve predictability, quality & pride of workmanship 3. Change Understanding of the system Empowerment to act Incremental & evolutionary (less risk, less inertia) 4. Customer Service Customer awareness, expectations & why 5. Trusted & Respected Collaborative, empowered, predictable, & transparent 6. Unity through purpose Cooperation across organizational boundaries
  7. 7. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business Product & Service Delivery
  8. 8. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business
  9. 9. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business There is a Kanban pattern to suit every situation in your organization
  10. 10. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business Identify Services Customer Has need Requests a product or service Need fulfilled Requestor accepts or acknowledges delivery Service Delivery Respond to the need with a series of activities
  11. 11. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business Kanban Method: Service Delivery Principles Your organization is a network of interdependent services with policies that determine its behavior. Therefore: 1. Understand and focus on the customer's needs and expectations. 2. Manage the work; let workers self-organize around it. 3. Regularly review the network and its policies to improve outcomes.
  12. 12. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business For every service there is a kanban system
  13. 13. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business Evolutionary Change in Action
  14. 14. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business Kanban Scaling Principles 1. Scale out in a service-oriented fashion one service at a time 2. Design each Kanban system from first principles using STATIK. Do not attempt to design a grand solution at enterprise scale. 3. Use the Kanban Cadences as the management system that enable balance, leading to better enterprise services delivery.
  15. 15. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business 5 lanes each with a dev team providing a software development service to the project
  16. 16. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business Column WIP Limit = 5 Testing (Resolved) is a shared service across 5 dev teams. In this example, testing was off-shore in Chennai, India
  17. 17. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business (some of the) orange tickets are avatars for people from shared services such as enterprise architecture and user experience design Personal kanban
  18. 18. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business Customer Satisfaction
  19. 19. Customer satisfaction… 1. Understand your customer’s purpose 2. Understand expectations for ▪ Design ▪ Implementation ▪ Service Delivery/Customer Experience 3. Define meaningful KPIs 4. Drive improvement using these meaningful metrics 5. Earn trust through customer intimacy
  20. 20. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business How do you know whether a change will be an improvement? …
  21. 21. Commonly recurring customer expectations 1. Delivery time ▪ Predictability ▪ Duration ▪ Timeliness 2. Quality 3. Safety & Conformance 4. Affordability 5. Optionality 6. Convenience Kanban helps directly with the first four
  22. 22. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business Get the book!
  23. 23. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business Economic Performance
  24. 24. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business Economics can be improved in several ways
  25. 25. Improving economics… 1. Producing more More value for the same effort 2. Producing something faster Avoiding cost of delay 3. Selecting items with a greater payoff More value for the same effort 4. Reducing costs Spending less money on the same activities, or Reducing/eliminating wasteful activities such as rework and unnecessary planning or analysis Kanban helps directly with all four
  26. 26. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business Economic Improvements Easy Intermediate Harder Productivity +10% -> +50% +100 –> +300% +300% -> +700% Lead Time Reduction Up to 70% 70% - 90% > 90% Kanban case studies have shown the following economic improvements at deepening levels of implementation…
  27. 27. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business Classes of Services mapped to cost of delay Expedite – white; critical and immediate cost of delay; can exceed other kanban limit (bumps other work); limit 1 Fixed date – orange; cost of delay goes up significantly after deadline Standard - yellow; increasing urgency, cost of delay is shallow but accelerates before leveling out Intangible – blue; cost of delay may be significant but is not incurred until significantly later, if at all delay cost delay cost delay cost delay cost Class of service and its policiesColor Func
  28. 28. Cost reductions… 1. Reduced Planning Typically, ~85% less planning time 2. Reduced Analysis Typically, ~85% less dependency management 3. Reduced rework Up to 90% less defects & rework reported 4. Eliminating unnecessary work Significant reduction in abandoned & aborted work through deferred commitment and improved triage
  29. 29. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business
  30. 30. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business Organizational Culture
  31. 31. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business Organizational Culture is at the heart of the Kanban Maturity Model
  32. 32. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business
  33. 33. David Anderson | dja@leankanban.com Teodora Bozheva | Teodora@berriprocess.com • Routine activities • Observable patterns of interactions • Settled, regular Kanban practices • Habits “How we do work” Things people value and refer to them as principles or norms (written or unwritten) that justify behaviours and practices. “how we live” • Demonstrated results. • Findings from external (customer) and internal (organization) perspective. “How well we work” Pillars of the KMM Architecture
  34. 34. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business Culture follows Values Practices follow Culture Outcomes follow Practices
  35. 35. David Anderson | dja@leankanban.com Teodora Bozheva | Teodora@berriprocess.com Kanban Maturity Model Values What people think matters. Transparency and trust is important to progress. Practices Qualities of actions and behaviors. At a deeper level managers can influence more capability, predictability, control, coordination and risk hedging.
  36. 36. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business Culture = Values x Behavior Define Identity ( Decisions + Actions ) of the leaders Understanding Culture
  37. 37. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business Lean Decision Filter Value trumps Flow Expedite at the expense of flow to maximize value Flow trumps Waste Elimination Increase WIP if required to maintain flow even though it will add waste Waste elimination trumps economy of scale Drive efficiency by reducing transaction & coordination costs of selecting, scheduling, sequencing, and delivering work First published in 2009 Kanban helps with all 3
  38. 38. A decision filter for every cultural value deepens organizational maturity
  39. 39. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business A decision filter for… “Leadership at all Levels” If you can “do something about it” just do it! Act rather than ask permission It is better to try (even if you fail) than not to have made an attempt
  40. 40. We develop leaders by teaching them decision filters and holding them accountable for their decisions and actions!
  41. 41. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business 2nd edition Available June 2020
  42. 42. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business Business Resilience
  43. 43. Coping with crisis… Kanban, the Kanban Community & a good KCP can help with up to 10 of these attributes
  44. 44. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business Follow procedure & improve Panic & RegressOrganizationalMaturityis analogoustoResilience
  45. 45. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business Social Psychology The study and science of psychology of individuals experiencing social change Stability Inertia Incremental Dramatic Happy People Unhappy People Unhappy People Unhappy People No Pressure Frustration No resistance, little anxiety Anxiety, Fear, Stress, Crisis No Change No Change Change Change Initially normative Structural changes may emerge Always structural Kanban Agile Changes to “how” and “what”. Emergent structural change is voluntary and is “pulled” Changes to “who” and “why”. Changes affect identity, role, status and relationships
  46. 46. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business Evolutionary Change in Action Formula for evolutionary change … ▪ Stressor ▪ Reflection Mechanism ▪ Leadership
  47. 47. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business Kanban delivers incremental social change Refreshing!
  48. 48. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business Organization feels secure Organization feels threatened Individuals feel secure • Process focus • Rules & regulations • Infighting & backstabbing • Lack of innovation • Risk averse • Conservative • Cooperative effort to strengthen the tribe • Personal Sacrifice • Symbols & symbolic actions become more important • Common enemy • Rituals practiced (to strengthen social cohesion) Individuals feel insecure • Resignation (leaves org) • Antagonism towards remaining staff • Or,… org ejects individual • Individual acts to harm the organization • Everyone leaves the org • Organization quickly dissolves • Individuals lay claim to tribal valuables • Look for a new org to join Source: Great Boss, Dead Boss Ray Immelman Tribal SecurityPsychological Crisis
  49. 49. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business Organization feels recognized & respected Organization feels ignored & disrespected Individuals feel the have dignity, recognition, respect & status • Clear outcome of organizational efforts • Highly motivated • Extreme loyalty • Strong encouragement & support • Individual heroics praised (at low maturity), or • Systemic improvements are recognized (at higher maturity) • Urgency to change • Individuals hone skills • Tribal symbols are reaffirmed • Strategies are redefined • Relationships are refined and improved Individuals feel they lack dignity, recognition, respect & status • Individual feels out of step with the culture, values & group norms, tries to change their behavior & (re)integrate with the group • Or, individual leaves to form a new organization • Finger pointing & blame • Involve outsiders • Loss of focus • Promoting own world view • Infighting • Looking for new symbols of value Source: Great Boss, Dead Boss Ray Immelman Tribal ValuePsychological Crisis
  50. 50. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business In order to cope with crisis as an organization, individuals needs to feel secure & valued Kanban helps by reducing the likelihood of individuals suffering psychological crisis during periods of existential threat to the organization!
  51. 51. In conclusion…
  52. 52. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business
  53. 53. Resume… 1. Your employee engagement 2. Your product & service delivery 3. Your customer satisfaction 4. Your economic performance 5. Your organizational culture 6. Your business resilience
  54. 54. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business House of Resilience
  55. 55. Kanban refreshes all aspects of your business… Let Kanban be your foundation for the resilience you need in now, & in future!
  56. 56. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business
  57. 57. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business Inquiries Virginia Santos virginia@djaa.com
  58. 58. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business Acknowledgments Originating in 1973, Heineken “refreshment” campaign. Copy writer, Terry Lovelock, Collett Dickenson Pearce Spokesperson, Larry Hagman
  59. 59. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business Acknowledgments 2010 “Kanban in Action” cartoon by Pujan Roka
  60. 60. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business Acknowledgments 2020 “Kanban Refreshment Guy” by Nastya Kondratova
  61. 61. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business About David Anderson is an innovator in management thinking for 21st Century businesses. He leads a training, consulting, events and publishing business making new ideas accessible to managers across the globe. He has almost 40 years experience in the high technology industry starting with games in the early 1980’s. He’s led technology groups delivering superior economic results using innovative agile methods at large companies such as Sprint & Motorola. He is the pioneer of the Kanban Method, Enterprise Services Planning, Kanban Maturity Model, Fit-for- Purpose Framework and Service-oriented Organizational Design. His latest book, published in 2018, is, Fit For Purpose – How Modern Businesses Find, Satisfy & Keep Customers 2nd Edition. David is CEO of Mauvius Group, a training, tools & events business with locations in Seattle, USA and Bilbao, Spain.
  62. 62. David J. Anderson | dja@djaa.com Copyright David J. Anderson School of Management Inc. a Mauvius Group business

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