Kanban & ESP - When are they appropriate?

Copyright Lean Kanban Inc.dja@leankanban.com @LKI_dja
Kanban &
Enterprise Services Planning
When are they appropriate?
David J. Anderson
LeanKanban India
December 2015

Understanding Options for
Improvement

Kanban’s Service Oriented Agenda

Available options
,
disruptive &
speculative demand

Most process
geeks & IT
managers are
operating over
here
, disruptive
& speculative demand

We use Kanban to
improve in an
evolutionary way
, disruptive

Risk Management is an
Enabling Capability…
,
disruptive & speculative
demand

Tools For Risk
Management…
, disruptive

, disruptive
We use Enterprise
Services Planning
to analyze risk
across demand for
work and respond
with suitable
scheduling,
sequencing,
demand shaping,
& capacity
allocation

Appropriateness
for the use of kanban systems

My motivationfor adopting
kanban systems was to
prevent muri, control mura
and encourage an evolutionary
approachto change
Overburdening
Variability in Flow

Appropriateness Question #1
Does your process suffer from
overburdening or
variability in flow?

What causes unevenness?
1. Non-instant availability of specialist skills or
collaborators
2. Information fails to arrive before it is needed
3. Hidden/Implicit classes of service that cause work
to be interrupted to process other work
4. Variety in work (complexity & size)
5. Changing priorities related to variety in risks
associated with work (e.g. cost of delay)
6. Capacity constrained specialist skilled workers or
other resources (e.g. test environments)

Are any of these present in your work
environment?

Kanban may be appropriate for you!

Kanban is unnecessary where demand never
exceeds capability and flow is smooth and
never interrupted!
If conditions of overburdening
or unevenness in flow exist or
are likely to then use of a
kanban system may be an
appropriate choice

Would your process benefit from
deferred commitment?

When is deferred commitment useful?
1. Future market, economic, political conditions or
customer tastes or demands are uncertain
2. Demands, priorities, or schedules may change
3. There is an existing high abandonment or discard
rate of ideas or requests
4. There is a high abort rate of committed work
5. There is a high rework rate or high level of failure
demand
6. Work is delivered but ignored or never used

Kanban is unnecessary where demands and
expectations never change, ideas are never
discarded, work aborted or obviated
If conditions of uncertainty in
the external environment exist
then use of a kanban system
may be an appropriate choice

In developing the
Kanban Method, a change
management approach that uses kanban
boards & kanban systems to provoke change,
we are enabling the emergenceof
leaner service delivery organizations

Appropriateness
for the Kanban Method

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

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

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

The Kanban Method…
Rejects the traditional approach
to change
Believes, it is better to avoid
resistance than to push harder
against it
 Don’t install new processes
 Don’t reorganize
Is designed for carbon-based
life forms
 Evolutionary change that is
humane

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

Water flows around the rock
“be like water”
the rock represents resistance

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/

Are people likely to resist change
emotionally, rejecting forced
changes to their identities?

Traditional Change is an A to B process
A is where you are now. B is a destination.
 B is either defined (from a methodology definition)
 or designed (by tailoring a framework or using a model based
approach such as VSM* or TOC TP**)
To get from A to B, a change agency*** will guide a
transition initiative to install B into the organization
***either an internal process group or external consultants
Current
Process
Future
Process
Defined
Designed
transition
* Value stream mapping, ** Theory of Constraints Thinking Processes

What change really feels like:
The J Curve

The J Curve
Safety!

The J Curve
Patience!

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

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 qualitatively
assess actual outcomes such as
 customer satisfaction
 employee satisfaction

Evolutionary Change May Be Enough
Evolutionary change can often
deliver dramatic improvements in
key fitness metrics such as lead
time, quality, & delivery rate

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 don’t know the
end-point but we do
know our emergent
process is fitter!

Evolutionary change with
many small J’s
Fitness
Time

Is your boss a revolutionary?

Not every senior leader is a revolutionary
The last thing IBM
needs now is a
new strategy

But many feel the need
to shake things up and leave their mark
Carly Fiorina
We need to buy
Compaq!
Go big or go home!

Your boss may
lack the patience
to wait for an
evolutionary
approach to
improvement to
take effect

Kanban & the Cynefin Framework

if observation shows
mura & muri are
present
then respond with a
kanban system

if deferred
commitment is
desirable
then respond with a
kanban system

Existing Process is
mapped
Overlay a kanban
system
Implement in a single
transition

If there are many
interdependent
services
then respond with
Enterprise Services
Planning

Kanban -
Simple rules made
visual & explicit
Feedback
Kaizen events –
adapt the rules

Change kanban
system design
(policies) to catalyze
(or probe) for desired
emergent outcomes

Ecosystems of
interdependent
professional services
(such as software product
development)
exist in all 3 domains

ESP & Kanban are
designed to work
across all 3 domains

Kanban is unlikely
to be useful in the
Chaotic domain

Conclusion

Kanban & ESP
For broad application as a service delivery workflow
overlay to control “mura” and eliminate “muri” &
enable deferred commitment
For broad application as a management system
enabling adaptive capability and emergent “fitness
for purpose”
Most useful where demand can be treated as a pool
of options and can be shaped using risk
management, marketing strategy and strategic
planning

Kanban & ESP
Kanban systems for appropriately categorized
Obvious Domain problems
ESP risk assessment, scheduling, sequencing, risk
hedging algorithms for analyzed Complicated
Domain problems
Kanban Cadences coupled to model-driven
improvement techniques, and an awareness of the
psychology, social psychology & sociology of the
workplace for Complex Domain problems

Kanban is for evolutionaries
Kanban may be
just what I need!
I don’t have time for
this! Kick ass, take
names & get it done!
Carly Fiorina

Copyright Lean Kanban Inc. dja@leankanban.com @LKI_dja
Thank you!

About
David Anderson is an innovator in
management of 21st Century
businesses that employ creative
people who “think for a living” . He
leads a training, consulting,
publishing and event planning
business dedicated to developing,
promoting and implementing new
management thinking & methods…
He has 30+ years experience in the high technology industry
starting with computer games in the early 1980’s. He has
led software organizations delivering superior productivity
and quality using innovative methods at large companies such
as Sprint and Motorola.
David defined Enterprise Services Planning and originated
Kanban Method an adaptive approach to improved service
delivery. His latest book, published in June 2012, is, Lessons
in Agile Management – On the Road to Kanban.
David is Chairman & CEO of Lean Kanban Inc., a business
operating globally, dedicated to providing quality training &
events to bring Kanban and Enterprise Services Planning to
businesses who employ those who must “think for a living.”

Kanban & ESP - When are they appropriate?

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