Kanban Cadences and Information Flow

Transcription

1 Certified Training Kanban Cadences and Information Flow

2 Kanban is a way to organize and manage work

3 How does Kanban work? Observe the current situation including performance and service delivery expectations Identify risks and pain points and improvement opportunities Apply techniques to adjust how we manage demand and capability to meet expectations of our customers Techniques to apply include WIP limits Class of service Capacity allocation Decoupled commitment Reversible commitment System Liquidity Flow Efficiency Bottleneck management Dependency management Variability type management more++ Measure to see the result

4 ESP Management System A complete management system for improving communication, collaboration, and decision making across an organization. ESP gives the organization a way to respond faster with greater business agility. ESP coordinates strategic initiatives with current capability to deliver

5 Elements of Enterprise Services Planning Kanban Feedback Loops: Cadences Probabilistic Forecasting Risk Management Shape Demand and Improve Capability

6 What are the activities of ESP Cadences Information Flow? Take data and other input collected from each kanban system Observe signals that adjustment to the system is needed You aren t delivering work when you promised it Your customer has some new dissatisfaction or new request Or, consider current status and decide how to move forward What work is ready to be delivered? What should be pulled next? How can we cope with a new competing product? Discuss and decide on actions Policy changes Apply techniques to shape demand or modify capacity etc Communicate decisions

7 Treat each service separately Demand Observed Capability Observed Capability Demand Demand Observed Capability

8 ESP Feedback Loops Mechanism to Consider existing outcomes Compare them to desired outcomes Is our current service delivery fit for purpose in the eyes of our customers? Is our current capability driving our strategic goals as a business?

9 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 enables balance, leading to better enterprise services delivery.

10 Kanban CadencesDoing things better change Operations change Doing the right things Quarterly info Strategy Review change info change info Monthly change Bi-Weekly change Review Service Delivery Review info info info change info Monthly info Risk Review change Replenishment/ Commitment Meeting Weekly change info Daily Kanban Meeting change info Delivery Planning Meeting Per delivery cadence Getting things done! Focus on Service Delivery

11 Kanban Cadences Improvement/Evolutionary Set change Operations change Strategy Review info change Monthly change Review Service info info change Risk Review Quarterly info change info Bi-Weekly change Delivery Review info info Monthly info change Replenishment/ Commitment Meeting Weekly change info Daily Kanban Meeting change info Delivery Planning Meeting Per delivery cadence Service Delivery Set Focus on Service Delivery

12 Flow of Information and Change info change Flow of information Information delivered from one feedback mechanism to another. The information is considered for possible decisions. Flow of changes Actions and Decisions made at one meeting that will have a direct effect on data reviewed, capability observed and discussions held in other meetings.

13 Pool of Ideas Kanban Roles Are Emerging Ready Risk Requi- for Analysis rements Engin- Analysis eering Comm- itted Development 3 4 Ongoing Done Testing 3 Verification Done K L J H I F D Service Request Manager Discarded Marshals Options O Reject P Q Commitment point Service Delivery Manager Manages Flow

14 The 7 Kanban Cadences

15 Caution! The following meeting descriptions are just typical configurations! You should adjust frequency cadence, duration, attendees based on your organization s needs. You are likely to adjust them over time.

16 Getting Things Done: The Service Delivery Meetings

17 Replenishment Meeting

18 Replenishment Meeting Purpose: To decide what to select from the pool of options, commit to next, and to replenish the input buffer for the Kanban system Cadence: Weekly Duration: 20 to 30 minutes Participants: The service delivery manager or the person responsible for facilitating the delivery planning meeting; together with service delivery personnel who can assess technical and dependency risk and advise on scheduling, sequencing and batching of items Inputs: Observations from Kanban Meetings and Service Delivery Reviews may result in changes to behavior at Replenishment Meetings. Decisions from Strategy Review such as policy changes and portfolio changes. Outputs: Decisions regarding what to pull next plus system changes sent to the Daily Kanban Meeting

19 Replenishment Meeting Activities/Discussion What s new since the last meeting? Inspect any submissions to the pool of options/ideas, or the ready for delivery buffer Ensure that items that are available for selection are correctly classified for risk and requested classes of service are appropriate. Correct any mistakes How many kanban slots are available and of what type/class? What kanban signals do we have? Filter the available pool of options by type, class, schedule window to gain an initial list of candidates for selection Ask stakeholders to select a short list of candidates based on initial filtering Given the anticipated lead time, is it possible to form a consensus on the most important items for selection? If, not arrange to vote for selection

20 Replenishment Meeting Example Observations from Kanban Meetings and Service Delivery Reviews may result in changes to behavior at Replenishment Meetings. For example, a high discard rate resulting in work items being moved to the trash can has been shown to change stakeholder behavior and result in a tightening of the definition of ready used to assert that a work item is available for selection at the Replenishment Meeting.

21 [Daily] Kanban Meeting

22 Kanban Meeting Purpose: To observe and track the status of the work (not the workers). To observe the flow of work. Cadence: Daily Duration: minutes Participants: The immediate service group or team doing the work (4-50 people). Facilitated by Service Delivery Manager Inputs: Decisions from Replenishment Meeting and from Delivery Planning Meeting. Decisions and new initiatives from Strategy Review. Outputs: Progress reported to Delivery Planning Meeting and to Service Delivery Review

23 Kanban Meeting Activities: Board will show the state of work and whether it is actively being worked on, is queuing or is blocked or waiting for some other reason. The Service Delivery Manager will walk the board iterating across the tickets from right (most close to completion) to left (most recently started). The SD Manager may solicit a status update on a ticket or simply ask if there is any additional information that is not on the board and may not be known to the team. Attention is given to items blocked or delayed. The team will discuss briefly who is working an issue and when it will be resolved. There will also be a call for any other blocking issues that are not on the board and for anyone who needs help to speak up.

24 Kanban Meeting More mature teams may only discuss blocked items, and not discuss every ticket on the board. The Service Delivery Manager must take responsibility for resolution of blocking issues. They will ask who is assigned to resolve it and when will it be resolved. Clearly defined escalation paths and policies are important for unresolved issues. After Meeting: The participants spontaneously meet around an issue or problem observed during the Kanban Meeting. Their goal is to discuss it and seek resolution. Happens immediately after the Daily Kanban Meeting.

25 Delivery Planning Meeting

26 Delivery Planning Meeting Purpose: To plan downstream delivery and form a delivery manifest. Cadence: Varies, based on delivery cadence Duration: 1-2 hours Participants: Facilitated by the person playing the role of Service Delivery Manager. Any other interested parties should be invited including those who receive and accept the delivery, and anyone involved in the logistics of making a delivery. Specialists are present for their technical knowledge and riskassessment capabilities. Managers are present so that decisions can be made. Inputs: Information from Daily Kanban Meeting on which items are potentially available to deliver. Risk considerations from Risk Review which might affect delivery decisions. Outputs: Decisions on which items to deliver, communicated to Daily Kanban Meeting. Information on issues with delivery sent to Risk Review.

27 Delivery Planning Meeting Discussion (Kata) Which items in the system are (or will be) ready for release? What is required to actually release each item to production? What testing will be required post-release to validate the integrity of production systems? What risks are involved? How are these risks being mitigated? What contingency plans are required? Who needs to be involved in the release and present during the push to production (or other delivery mechanism)? How long will the release take? What other logistics will be involved?

28 Forecast tickets completed for delivery Ideas Dev Ready 5 Test Development Ready Testing Ongoing Done UAT Delivery Ready M L N F F J K H 100% confidence A C E D Discarded I 70+% confidence G I

29 Ideas Boost class of service on marginal tickets to ensure delivery Dev Ready 5 Test Development Ready Testing Ongoing Done UAT Delivery Ready M L N F F J K H 100% confidence A C E D Discarded I Fixed date CoS provides 100% confidence G I

30 Delivery Planning Daily Kanban Meeting Ask which items [from the Kanban board] do we believe will be completed in time for delivery on [delivery date]? This can be done using Monte Carlo simulation built into high quality Kanban software tools, or it can be done in a more qualitative manner by asking team members how things are flowing. In this situation, all items committed for delivery at Delivery Planning effectively become fixed delivery date class of service items. Ideally this should be made explicit and visualized appropriately. As a consequence the queuing discipline on the kanban board is affected. What and how workers at the kanban board choose pull items will be changed for a temporary period until the delivery is made from the system to the customer(s).

31 Doing the Right Things and Doing Things Right: The Improvement Set

32 Strategy Review

33 Strategy Review Purpose: Are we in the business we want to be in AND do we have the capability to be in that business? Are our goals achievable? Cadence: Quarterly Duration: ½ day Participants: Customer-facing staff; senior leaders; product and portfolio managers Input: Current capability information from Service Delivery Review and Ops Review. Also informed by input from Replenishment meetings, most likely related to business risk, capacity allocation or demand shaping policy. Input from customer-facing staff. Output: New information and decisions brought into Operations Review and Service Delivery Review with fitness for purpose information and KPIs (Key Performance Indicator metrics).

34 Strategy Review, example Example 1 Existing strategy pursues seasonal, short-shelf life opportunities with fixed delivery dates. Current capability: lead times are too long and highly unpredictable. As a result, many opportunities are missed partially or completely. Decision may be made to readjust the allocation of the portfolio for more medium and long-term opportunities better suited to current capability. Example 2 Customer-facing staff reports on reasons why customers order from us. Cluster the narratives and compare with existing market segmentation. Make adjustments if new customer segments have appeared.

35 Service Delivery Review

36 Service Delivery Review Purpose: Look at whether we are delivering according to customer expectations. Looks at a single kanban board. Compare current capabilities against fitness criteria metrics and seek to balance demand against capability and hedge risk appropriately. Cadence: Twice a month Duration: ½ hour Participants: Conducted by the Service Delivery Manager (SDM) often includes Service Request Manager, customers and other external stakeholders together with representatives of the delivery team Inputs: Progress and data from Daily Kanban Meeting; Decisions from Operations Review. Actions from Risk Review. Outputs: Findings reported at Operations Review.

37 Service Delivery Review Activity A focused discussion about system capability Review against fitness criteria metrics, e.g. current capability versus lead time SLA with 60 day, 85% on-time target Discuss shortfalls against (customer) expectations. Analyze for assignable/special cause versus chance/common cause Discuss options for risk mitigation & reduction or system design changes to improve observed capability against expectations What services do we currently provide? Which service requests / work items types do we accept? What are the service level expectations of each work item type?

38 Service Delivery Review Discussion What is our current capability to delivery each type? Lead time distribution Delivery Rate System Liquidity Level Transaction volume, volatility, immediacy Flow efficiency Quality Delay Risk (from blocker) as likelihood and impact Service level expectation, due date performance Questions relating to process improvement What have your team achieved since last meeting? What do you need help with from a colleague? What do you need help with from the supervisor or service delivery manager? Does it need escalated?

39 Service Delivery Review, example Discovery from Service Delivery Review It there were a lot of Fixed Date items but a long tail in lead time distribution then the customer might choose to schedule the fixed date items earlier or to reduce the quantity of Fixed Date items by changing their strategy.

40 Operations Review

41 Operations Review Purpose: Systems of Systems level review. Disciplined review of demand and capability for each kanban system with a particular focus on dependencies and dependent effects. Cadence: Monthly Duration: 2 hours Participants: Service Delivery Manager and Service Request Manager for each kanban system. Senior management. Senior business owners or customer representatives. Downstream mid-level managers. Functional managers and senior individual contributors representing each kanban system. Product Mgr, Portfolio Mgr, Project Mgr.

42 Operations Review Inputs: Summary findings from Service Delivery Reviews for all kanban systems in the network. Business performance information from Strategy Review such as financial reports, customer satisfaction surveys. Ongoing improvement initiatives from Risk Review about system-wide changes. Outputs: A list of improvement suggestions/actions/decisions or required changes to strategy with designated owners sent to Service Delivery Review and to Strategy Review. Dependent impact on tail risk for a lead time distribution, to Risk Review, to inform prioritizing risks for reduction mitigation or contingency planning.

43 Operations Review Activity/Discussion Look at performance, capability, and dependencies between multiple kanban systems Dependencies understood. Interdependent effects exposed Kaizen events suggested by attendees Improvement opportunities assigned to managers as last agenda item

44 Risk Review

45 Risk Review Purpose: Look at problems that put our delivery capability at risk. Cadence: Monthly Duration: 1-2 hours Participants: Facilitated by a Service Delivery Manager or a Kanban coach; Anyone with information or experience of recent blockers. Service delivery managers. Project and program managers. Customer-facing managers are optional. Might have managers from dependent services.

46 Risk Review Inputs: Issues from a network of kanban systems from Ops Review and individual kanban systems from Service Delivery Review. Decisions from Delivery Planning Meeting. Outputs: Information from Risk Review may inform Delivery Planning as it may not be wise to assert an item will be ready for delivery and make a commitment if there is a tail risk that cannot readily be managed and effectively avoided for a specific work item. Actions decided at Risk Review, specifically risk reduction, mitigation or contingency plans, may enable changes in service delivery and kanban system design and hence change requests flow from Risk Review to Service Delivery Review and Operations Review.

47 Risk Review Activities Cluster blocker tickets from the last month Cluster blockers based on the stories behind the delay Each cluster represents a risk Analyze likelihood & impact Identify the risks most impacting the tail of the lead time distribution and focus on those Review risk management policies Identify Likelihood & Impact Root Cause Analysis

48 Risk Review example We may need to understand where the tail of a lead time distribution most directly affects a failure to satisfy customers and poor performance against service level expectations. Actions that trim the tail of a lead time distribution will have the effect of reducing average lead time and shifting it to the left on the distribution curve. As a consequence of this, it may be possible to change capacity allocation for a given type of work, or alter the capacity allocation for a specific class of service.

49 Risk Review Discussion How much risk do we want to take? Do we have the correct risk assessment framework? Have we identified the right risk dimensions? Are our assessment taxonomies for risk dimensions providing us with actionable information? Do they need modified? Which risks do we want to hedge? How should we allocate our portfolio or product mix across those risks? In which percentages for each category?

50 Risk Review, continued Review classes of service Are they still appropriate? Are they being used? Have any exceptions been made? Is there a new pattern? Need for a new class of service? Review blockers Prioritize mitigation & reduction actions based on blocker cluster analysis Review risk hedging policies Consider whether recently observed demand fits with historic patterns and capacity allocation is still appropriate Review demand shaping policies Should we adjust policies that bifurcate demand on dependent or shared services?

51 Risk Review, continued Types of blocked items Blocked with an issue internal to our system (and within our political control) Blocked due to an issue outside our system but within our firm (requires collaboration and possibly political capital to resolve) Blocked due to an issue external to our firm, typically with a vendor, regulator, customer, or perhaps a political issue such as a forthcoming election

52 What do you do with the insights from Kanban Cadences?

53 Pain point identified: Do you know what to do? Missing deadlines Poor predictability can t say when work will be finished Overburdened, too busy Dealing with dependencies Shifting priorities Quality issues Customer dissatisfaction

54 Do you know techniques to improve? Lead time distribution improvement Flow efficiency improvement Risk profiling for portfolios System and staff liquidity WIP limits Class of Service Capacity allocation Options management Kanban systems volatility Risk types; variability types Forecasting with utility graph functions

55 Enterprise Services Planning Executive Summit esp.leankanban.com

56 ESP 5-Day Training Class with David J Anderson -- info@leankanban.com --

57 Kanban Leadership Retreat conf.leankanban.com/retreat

58 Thank you!