Kanban is refreshing v3

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!

Kanban provides a refreshing
approach to managing your
business

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

Employee Engagement

Employee engagement
Visualization
… a sense of purpose
…relief from overburdening
… hope
… cooperation,
collaboration & trust
…alignment & unity

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

Product & Service Delivery

There is a Kanban pattern
to suit every situation in
your organization

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

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.

For every service there is a
kanban system

Evolutionary Change in Action

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.

5 lanes each with a dev
team providing a software
development service to the
project

Column WIP Limit = 5
Testing (Resolved) is a
shared service across 5 dev
teams.
In this example, testing was
off-shore in Chennai, India

(some of the) orange tickets
are avatars for people from
shared services such as
enterprise architecture and
user experience design
Personal kanban

Customer Satisfaction

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

How do you know
whether a change
will be an
improvement? …

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

Get the book!

Economic Performance

Economics can be
improved in several ways

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

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…

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

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

Organizational Culture

Organizational Culture is at
the heart of the Kanban
Maturity Model

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

Culture follows Values
Practices follow Culture
Outcomes follow Practices

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.

Culture = Values x Behavior
Define
Identity
( Decisions + Actions ) of the leaders
Understanding Culture

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

A decision filter for every
cultural value deepens
organizational maturity

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

We develop leaders by
teaching them decision filters
and holding them accountable
for their decisions and actions!

2nd edition
Available June 2020

Business Resilience

Coping with crisis… Kanban, the Kanban
Community & a good KCP
can help with up to 10 of
these attributes

Follow
procedure
& improve
Panic &
RegressOrganizationalMaturityis
analogoustoResilience

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

Evolutionary Change in Action
Formula for evolutionary
change …
▪ Stressor
▪ Reflection Mechanism
▪ Leadership

Kanban delivers
incremental social change
Refreshing!

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

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

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!

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

House of Resilience

Kanban refreshes all aspects of your business…
Let Kanban be your
foundation for the resilience
you need in now, & in future!

Inquiries
Virginia Santos
virginia@djaa.com

Acknowledgments
Originating in 1973, Heineken “refreshment” campaign.
Copy writer, Terry Lovelock, Collett Dickenson Pearce
Spokesperson, Larry Hagman

Acknowledgments
2010 “Kanban in Action” cartoon by Pujan Roka

Acknowledgments
2020 “Kanban Refreshment Guy” by Nastya Kondratova

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.

Kanban is refreshing v3

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