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a keynote
Agile and Beyond
Dearborn, Michigan

10th March 2012

David J. Anderson
David J. Anderson & Associates, Inc.
dja@djaa.com
Twitter @agilemanager
Agile Manifesto

Agile &
Beyond
2012
11 years on

Agile &
Beyond
2012
STOP

Agile &
Beyond
2012
doing Agile

Agile &
Beyond
2012
Start!

Agile &
Beyond
2012
Making agile organizations

Agile &
Beyond
2012
Think Agility!

Agile &
Beyond
2012
Act locally in your context

Agile &
Beyond
2012
How to Think Agility!

Agile &
Beyond
2012
Agile &
Beyond
2012

Make progress with
imperfect information
Foster a
high trust
culture

Agile &
Beyond
2012
Develop capability to respond to unfolding events

Agile &
Beyond
2012
Treat WIP inventory as a liability
rather than an asset

Agile &
Beyond
2012
Respond faster with improved
lead times

Agile &
Beyond
2012
Knowledge work is perishable

Agile &
Beyond
2012
Create feedback loops and enable a capability to
adapt (evolve)

Agile &
Beyond
2012
Embrace a craft ethic and pursue high quality
through pride of workmanship

Agile &
Beyond
2012
My philosophy

Agile &
Beyond
2012
Don’t try to do Agile
Instead
Start with what you do now
and improve your agility
Agile &
Beyond
2012
Minimize resistance
to adoption of new ideas
and ways of workings

Agile &
Beyond
2012
Identify problems one at a time

Agile &
Beyond
2012
Make Incremental
Evolutionary
Changes

Agile &
Beyond
2012
Don’t ask people to change

Agile &
Beyond
2012
Respect current job titles,
roles & responsibilities

Agile &
Beyond
2012
Since 2004 kanban systems have
been used to get beyond Agile and
deliver improved agility

Agile &
Beyond
2012
White boards were introduced in 2007 to visualize workflow
and work items flowing through the process

Agile &
Beyond
2012
WIP limits are used to create a pull system &
and the board visually signals pull to make a kanban system
WIP Limit – regulates
work at each stage in
the process

Pull

Flow – from Engineering
Ready to Release Ready

Agile &
Beyond
2012
Kanban board simulation

5

4

Analysis
Input
Queue In Prog Done

3

4

Development
Dev
Ready In Prog Done

2

Build
Ready

Test

Release
Ready

Stage

Prod.

Agile &
Beyond
2012

Flow

2
How does Kanban help with agility?

Agile &
Beyond
2012
Make progress
with imperfect information

Agile &
Beyond
2012
Encourage craftsmanship
and pride of workmanship

Agile &
Beyond
2012
Pull criteria policies encourage a focus on quality
& progress with imperfect information
5

4

Analysis
Input
Queue In Prog Done

4

Development
Dev
Ready In Prog Done

Policies
~~~~~~
~~~~

2

2

Build
Ready

Test

Policies
~~~~~~
~~~~

Release
Ready

Stage

Policies
~~~~~~
~~~~

Prod.

Agile &
Beyond
2012

Policies
~~~~~~
~~~~

3
Foster a High Trust Culture

Agile &
Beyond
2012
Agile &
Beyond
2012

Transparency of process. Collaboration and openness
Agile &
Beyond
2012

Empowerment through explicit policies
Avg. Lead Time

30
-M
ar

23
-M
ar

16
-M
ar

9M
ar

2M
ar

eb
24
-F

eb

WIP

17
-F

eb

240
220
200
180
160
140
120
100
80
60
40
20
0

10
-F

Features

Device Management Ike II Cumulative Flow

Time
Inventory

Started

Designed

Coded

Complete

Agile &
Beyond
2012

Reporting of demand versus capability
Lead Time Distribution
3.5
3

CRs & Bugs

2.5
2
1.5
1
0.5

1

4

7

0

3

6

8
14

14

13

12

12

11

10

99

92

85

78

71

64

57

50

43

36

29

22

8

15

1

0

Days

Mean of
31 days

SLA expectation of
51 days with 98% on-time

SLA expectation of
44 days with 85% on-time
Agile &
Beyond
2012

Understanding (lead time) capability
DBA Team Velocity
90

80

Trend

70

60

50
Total Velocity
Small support tasks
40

30

Trend

20

10

(not included
in total velocity)

Week of Christmas

0

Understanding (velocity) capability

Agile &
Beyond
2012

Courtesy Mattias Skarin client in 2009/2010, plotted weekly
Mean 42, +1 sigma = 55, -1 sigma = 29 (+/- 1.4x)
Create a capability
to respond to
unfolding events

Agile &
Beyond
2012
Example classes of service


Expedite




Fixed Delivery Date




Significant delay incurred on or
from a specific date in near future

Standard Class




Significant immediate cost of delay

(Near) linear cost of delay either
immediate or near future

Intangible Class


Agile &
Beyond
2012

No tangible cost of delay within a
reasonable lead time delivery
window
Allocate capacity across classes of service
mapped against demand
5

4

Analysis
Input
Queue In Prog Done

3

4

Development
Dev
Ready In Prog Done

2

Build
Ready

2 = 20 total

Test

Release
Ready

Allocation
+1 = +5%
4 = 20%

6 = 30%

Agile &
Beyond
2012

10 = 50%
Cost of Delay function sketches to
delineate classes of risk
Expedite – white; critical and immediate cost of
delay; can exceed other kanban limit (bumps
other work); 1st priority - limit 1
Fixed date – orange; cost of delay goes up
significantly after deadline; 2nd priority
Standard - yellow; cost of delay is shallow but
accelerates before leveling out; 3rd priority
Intangible – blue; cost of delay is not incurrent
until significantly later; 4th priority
Agile &
Beyond
2012
Knowledge work is perishable

Agile &
Beyond
2012
Limiting WIP delays commitment

Agile &
Beyond
2012
Only commit when work items
are pulled into the queue

Agile &
Beyond
2012
Tickets on the board are committed. Items in the
backlog are merely options
5

4

Analysis
Input
Queue In Prog Done

3

4

Development
Dev
Ready In Prog Done

2

Build
Ready

Test

Release
Ready

Stage

Prod.

Agile &
Beyond
2012

Commitment point

2
Highlight delays

Agile &
Beyond
2012
Tickets on the board are committed. Items in the
backlog are merely options
5

4

Analysis
Input
Queue In Prog Done

3

4

Development
Dev
Ready In Prog Done

2

Build
Ready

Test

Release
Ready

Stage

Prod.

Agile &
Beyond
2012

Pink tickets show blocking issues

2
Create Feedback Loops

Agile &
Beyond
2012
Agile &
Beyond
2012

Team-level Kaizen events happen naturally
Agile &
Beyond
2012

Operations reviews drive inter-team kaizen events
The Kanban Method

Agile &
Beyond
2012
Foundational Principles

1.
2.

3.

Start with what you do now
Agree to pursue incremental,
evolutionary change
Initially, respect current roles,
responsibilities & job titles
Agile &
Beyond
2012
5 core practices for successful Kanban adoption

1.
2.
3.

4.
5.

Deep

Agile &
Beyond
2012

Visualize
Limit Work-in-Progress
Manage Flow
Make Policies Explicit
Improve Collaboratively
(using models & scientific
method)

Depth

Shallow
Book Published
April 2010

Agile &
Beyond
2012

A 72,000 word
intro to the topic
http://leankanbanuniversity.com
http://www.limitedwipsociety.org

LinkedIn Groups: Software Kanban

Yahoo! Groups: kanbandev
Yahoo! Groups: kanbanops
Kanban System Adoption Examples Globally
USA
McKesson
Vanguard
GoDaddy
Xbox
Motley Fool
CityGrid Media
Ultimate Software
Constant Contact
SEP
REI
Robert Bosch

Argentina
Huddle
ThomsonReuters

UK
BBC
IPC Media
Financial Times
Microsoft

Scandinavia
Unibet
Volvo
Skania
Spotify
Ericsson

Mainland EU
Ubuntu
Xing
BWin
Brazil ASR
Petrobras
CESAR
Phidelils
O Globo

Israel
Amdocs
Answers.com
TypeMock

China & HK
Thomson-Reuters
Nike

Australia
Lonely Planet
Telstra

New Zealand
Ministry of
Social
Development

Agile &
Beyond
2012
Kanban System Adoption by Industry


Media




Games




Vanguard, Motley Fool, Chase, ASR

Software & Telecoms


Amdocs, Ultimate, Constant Contact, Phidelis, SEP,
Huddle, CESAR, Ubuntu

Public Sector


Ministry of Defence (Denmark), Ministry of Social
Development (New Zealand)

Agile &
Beyond
2012



Includes Robert Bosch, Volvo, Skania, Petrobras,
Nike

Finance & Insurance




Mostly small studios includes video arcade thru
mobile games to online gambling such as Unibet &
Bwin

Manufacturing




Includes BBC, Sky, Lonely Planet, Time/Life, IPC,
Mobile.de, O Globo, Financial Times, NBC Universal,
Thomson-Reuters
Keynotes by:
Gregory Howell
Steven Spear
Yochai Benkler

Want higher value, more predictable deliveries?
Looking for better risk management?
Interested in Lean and Kanban?

 HEAR KANBAN CASE STUDIES
 LEARN THE MECHANICS
 CONNECT WITH THE GLOBAL
COMMUNITY
Agile &
Beyond
2012

http://lssc12.leanssc.org/
Conclusion

Agile &
Beyond
2012
STOP

Agile &
Beyond
2012
doing Agile

Agile &
Beyond
2012
Start!

Agile &
Beyond
2012
Thinking Agility!
Agile &
Beyond
2012
Act locally in your context

Agile &
Beyond
2012
to create agile organizations

Agile &
Beyond
2012
Make Progress with Imperfect Information
Foster a High Trust Culture
Treat WIP as a liability, delay commitment

Reduce Lead Times, minimize Cost of Delay
Encourage Quality of Workmanship
Agile &
Beyond
2012

Create Feedback Loops
Stop doing Agile!
Start Thinking Agility!
Agile and Beyond
Dearborn, Michigan

10th March 2012

David J. Anderson
David J. Anderson & Associates, Inc.
dja@djaa.com
Twitter @agilemanager
Thank you!

Agile &
Beyond
2012

dja@djaa.com
http://djaa.com/
About…
David Anderson is a thought leader in
managing effective software teams. He leads
a consulting, training and publishing and
event planing business dedicated to
developing, promoting and implementing
sustainable evolutionary approaches for
management of knowledge workers.

He has 30 years experience in the high
technology industry starting with computer
games in the early 1980’s. He has led software
teams delivering superior productivity and
quality using innovative agile methods at large
companies such as Sprint and Motorola.
David is the author of two books, Agile
Management for Software Engineering –
Applying the Theory of Constraints for Business
Results, and Kanban – Successful Evolutionary
Change for your Technology Business.
David is a founder of the Lean Kanban
University, a business dedicated to assuring
quality of training in Lean and Kanban
throughout the world.

Agile &
Beyond
2012

http://leankanbanuniversity.com
Email: dja@djaa.com Twitter: agilemanager

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Key Note - Agile & Beyond - Stop Doing Agile! Start Thinking Agility