Kanban's 3 Agendas (London Lean Kanban Day)

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When introducing the Kanban Method coaches and consultants have 3 specific agendas that resonate with people at different levels within a business: survivability; service-orientation; and sustainability. This presentations explains what they are, why they matter and who they affect.

Text of Kanban's 3 Agendas (London Lean Kanban Day)

  • dja@leankanban.com @lkuceo LLKD 2014, Copyright Lean Kanban Inc. Presenter David J. Anderson CEO, Lean Kanban Inc. London Lean Kanban Day London February 2014 Release 1.0 Kanbans 3 Agendas Sustainability, Service-orientation, Survivability
  • dja@leankanban.com @lkuceo LLKD 2014, Copyright Lean Kanban Inc. Daniel Kahneman has given us a simple model for how we process information Daniel Kahneman System 1 Sensory Perception Pattern Matching System 2 Logical Inference Engine Learning by Experience Learning from theory FAST But slow to learn SLOW But fast to learn
  • dja@leankanban.com @lkuceo LLKD 2014, Copyright Lean Kanban Inc. How we process change Daniel Kahneman Silicon-based life form Carbon-based life form I logically evaluate change using System 2 I adapt quickly I feel change emotionally using System 1 I adapt slowly
  • dja@leankanban.com @lkuceo LLKD 2014, Copyright Lean Kanban Inc. Adopting new processes challenges people psychologically & sociologically New roles attack identity New responsibilities using new techniques & practices threaten self-esteem & social status Most people resist most change because individually they have more to lose than gain It is safer to be conservative and stick to current practices and avoid shaking up the current social hierarchy Only the brave, the reckless or the desperate will pursue grand changes
  • dja@leankanban.com @lkuceo LLKD 2014, Copyright Lean Kanban Inc. The Kanban Method Rejects the traditional approach to change Believes, it is better to avoid resistance than to push harder against it Dont install new processes Dont reorganize Is designed for carbon-based life forms Evolutionary change that is humane
  • dja@leankanban.com @lkuceo LLKD 2014, Copyright Lean Kanban Inc. The Kanban Method Catalyzes improvement through use of kanban systems and visual boards* Takes its name from the use of kanban but it is just a name Anyone who thinks Kanban is just about kanban (boards & systems) is truly mistaken *also known as "kanban" in Chinese and in Japanese when written with Chinese characters
  • dja@leankanban.com @lkuceo LLKD 2014, Copyright Lean Kanban Inc. The Kanban Method is a new approach to improvement Kanban is a method without methodology
  • dja@leankanban.com @lkuceo LLKD 2014, Copyright Lean Kanban Inc. Water flows around the rock be like water the rock represents resistance
  • dja@leankanban.com @lkuceo LLKD 2014, Copyright Lean Kanban Inc. Kanban should be like water* In change management, resistance is from the people involved and it is always emotional (system 1) To flow around the rock, we must learn how to avoid emotional resistance * http://joecampbell.wordpress.com/2009/05/13/be-like-water/
  • dja@leankanban.com @lkuceo LLKD 2014, Copyright Lean Kanban Inc. Principles behind the Kanban Method Start with what you do now Agree to pursue evolutionary change Initially, respect roles, responsibilities and job titles Encourage acts of leadership at all levels The first 3 principles were specifically chosen to address System 1 objections, to flow around the rock of emotional resistance in humans
  • dja@leankanban.com @lkuceo LLKD 2014, Copyright Lean Kanban Inc. 6 Practices Enable Process Evolution The Kanban Method Visualize Limit Work-in-progress Manage Flow Make Policies Explicit Implement Feedback Loops Improve Collaboratively, Evolve Experimentally (using models & the scientific method)
  • dja@leankanban.com @lkuceo LLKD 2014, Copyright Lean Kanban Inc. Motivation for Managers Senior Level Make promises they can keep Lead the business (strategy, positioning) Mid-level Up-managing answer the hard questions with confidence Down-managing make difficult decisions with confidence Line-level & Individual Contributors Relief from abusive environment Survivability Agenda Service-Oriented Agenda Sustainability Agenda
  • dja@leankanban.com @lkuceo LLKD 2014, Copyright Lean Kanban Inc. Survivability Agenda
  • dja@leankanban.com @lkuceo LLKD 2014, Copyright Lean Kanban Inc. Start with what you do now The Kanban Method evolved with the principle that it should be like water - enable change while avoiding sources of resistance With Kanban you start with what you do now, and "kanbanize" it, catalyzing the evolutionary process into action. Changes to processes in use will occur Evaluating whether a change is truly an improvement is done using fitness criteria that evaluate an external outcome
  • dja@leankanban.com @lkuceo LLKD 2014, Copyright Lean Kanban Inc. Fitness criteria are metrics that measure observable external outcomes Fitness criteria are metrics that measure things customers or other external stakeholders value Delivery time Quality Predictability Safety (conformance to regulatory requirements) or metrics that value actual outcomes such as customer satisfaction employee satisfaction
  • dja@leankanban.com @lkuceo LLKD 2014, Copyright Lean Kanban Inc. Evolutionary change has no defined end point Evolving Process Roll forward Roll back Initial Process Future process is emergent Evaluate Fitness Evaluate Fitness Evaluate Fitness Evaluate Fitness Evalua Fitnes We dont know the end-point but we do know our emergent process is fitter!
  • dja@leankanban.com @lkuceo LLKD 2014, Copyright Lean Kanban Inc. Validate Fitness Criteria with real customers It is necessary to keep checking that the fitness criteria we are measuring do indeed matter to customers Variation in what matters to different customers provides the opportunity to segment demand and offer different classes of service within your kanban system e.g. Will you pay extra to have your pizza delivered faster?
  • dja@leankanban.com @lkuceo LLKD 2014, Copyright Lean Kanban Inc. Which system is fitter? We dont know! System B is faster but without understanding customer expectations, both may be fit enough 0 2 4 6 8 10 12 14 Lead Time (Days) System A Frequency 0 5 10 15 20 25 30 5 10 15 20 25 30 More Lead Time in Days System B Frequency Mean 17 days Mean 12 days
  • dja@leankanban.com @lkuceo LLKD 2014, Copyright Lean Kanban Inc. Measuring delivery against expectation 0 2 4 6 8 10 12 14 Lead Time (Days) System A Frequency 0 2 4 6 8 10 12 Lead Time Expectation Spread (Days) System A Frequency 0 5 10 15 20 25 30 5 10 15 20 25 30 More Lead Time in Days System B Frequency 0 5 10 15 20 25 30 35 40 45 -15 -10 -5 0 5 10 15 20 More Lead Time Expectation Spread (Days) System B Frequency Mean 17 days Mean 12 days System B is clearly fitter! System B delivers 5/7 within expectations System A only delivers 3/7 within expectations
  • dja@leankanban.com @lkuceo LLKD 2014, Copyright Lean Kanban Inc. Business Risks, Fitness Criteria & Classes of Service should all align If your kanban system is designed properly the classes of service you are offering should align with the true business risks in the domain And the metrics being used to evaluate system capability, should be fitness criteria that are derived from the business risk being managed For example, cost of delay requires us to measure lead time
  • dja@leankanban.com @lkuceo LLKD 2014, Copyright Lean Kanban Inc. Institutionalize feedback systems to enable evolutionary change Operations Review Service Delivery Review Standup Meeting manager to subordinate(s) (both 1-1 and 1-team)
  • dja@leankanban.com @lkuceo LLKD 2014, Copyright Lean Kanban Inc. Organizational Improvements Emerge
  • dja@leankanban.com @lkuceo LLKD 2014, Copyright Lean Kanban Inc. Disintermediate! Risks, fitness criteria & classes of service should be explicit & transparent Operations Review Service Delivery Review Standup Meeting manager to subordinate(s) (both 1-1 and 1-team) Expose risk, classes of service & fitness criteria at all 3 levels of feedback Lead time Quality Predictability Lead time Quality Predictability Lead time Quality Predictability
  • dja@leankanban.com @lkuceo LLKD 2014, Copyright Lean Kanban Inc. Know why you are using a metric! Is your metric a fitness criteria that assesses system capability and indicates fitness for purpose and likelihood of surviving and thriving by satisfying customers? Or, is your metric evaluating and guiding a specific change to improve fitness of the system? If neither, you dont need it! Metrics guiding improvements should be temporary & discarded when no longer needed
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