LKCE19 - David J. Anderson - Why We Need KMM

David J Anderson | dja@djaa.com Official Licensed Material Copyright1
Why we need the
Kanban Maturity Model
David J Anderson
Lean Kanban Central Europe
Hamburg November 2019

Copyright David J Anderson School of Management Inc Email: dja@djaa.com
Are you a Grumpy German?

2/3rds of modern Germans are dissatisfied
at work
https://mobil.stern.de/wirtschaft/job/mitarbeiterzufriedenheit--so-unzufrieden-sind-die-deutschen-im-job-8568540.html

Perhaps your work lacks
purpose?
And your workplace lacks
leadership to provide that
purpose?

The Kanban Maturity Model & the Fit-for-
Purpose Framework can help you address
leadership & purpose challenges!

What is the
Kanban Maturity Model?

Healthier
Culture, Practices & Outcomes
through Managed Evolution

David Anderson | dja@djaa.com Official Licensed Material Copyright Mauvius Group Inc.

ML0: Oblivious
“My Way”
Every customer has
their pet

ML1: Team-Focused
“Never the same way
twice”
individual heroics
unconnected teams

ML2: Customer-
Driven
“Never the same result
twice”
managerial heroics
delays and last-minute tension in
spite of coordinated team effort

ML3: Fit-for-Purpose
“Always happy
customers”
no heroes needed anymore
processes under control

ML4: Risk Hedged
“Everyone is happy”
no more surprises

ML5: Market Leader
“Simply the best”
marginal gains
attention to every detail

ML6: Built for
Survival
“Reinvention”
Continually challenging
new identity; new purpose

It is the organization that
matures, not the Kanban
that matures

Follow
procedure
& improve
Panic &
Regress
Organizational
MaturityModel

The Kanban Maturity Model exists to
drive appropriate application of Kanban
practices in organizations seeking to
become fitter for their purpose.

The Two Failure Modes of Kanban Adoption
• Overreaching
• “Failure to install”
• Ambitious transition plan
• Designed by a the “smartest guy in the room”
(a consultant)
• Too much, too soon
• Organization isn’t ready
• Resistance to change
• Aborted transition
• Regress to existing practices
• False Summit Plateau
• “We’ve done Kanban! It helped us […]”
• Usually shop floor, bottom-up initiative
• Relief from overburdening, stressful, abusive
environment
• Improved transparency
• Improved collaboration
• Kanban gave us what we needed

The Kanban Maturity Model
prevents both failure modes seen
in Kanban implementations.

maps 150+ Kanban practices
against organizational maturity
levels and provides a map for
appropriate practice adoption.

There is no such thing as bad
Kanban, just inappropriate
practice selection

illustrates appropriate practices
for each level of organizational
maturity

The Kanban Maturity Model maps
practices from the Kanban Method
against a 7-level model for
organizational maturity

A fit-for-purpose organization
continually satisfies its customers
with products and services designed,
implemented, and delivered in
sustainable manner.

Official Licensed Material Copyright Mauvius Group Inc.
The Fit-for-
Purpose
Framework
David Anderson | dja@leankanban.com

Fit for Purpose

Fit for Purpose
Organization
Unfit for Purpose
Organization
Currently Fit for Purpose
(potentially unsustainable)

We must strive to create an
organization of at least . . .
Maturity Level 4

Sustainable change requires
an evolutionary approach to
change.
Start where you are!
Designed & managed
revolutionary changes are
inherently fragile.

Maturity Level 0
Maturity Level 1
Maturity Level 2
Maturity Level 3
Maturity Level
4
Maturity Level 5
Transition
Current processes & methods
New processes & methods
Designed &
managed
change initiative
The Fast Track to ML4
Maturity Level 6

During changes, things get worse before they get better
Safety!
Patience!
time
Capability
Lower maturity
organizations panic
under stress
Kanban in action!
Avoid the failure mode
of large scale, designed &
managed transitions

The KMM provides the ladder to resolve
structural tension between “where we are
now” and “where we want to be”

Evolutionary Change in Action

Formula for evolutionary
change …
 Stressor
 Reflection Mechanism
 Leadership

Mandela, “What is you approach to leadership?”
Pienaar replies, “By example. Always by example!”

I am the master of
my fate:
I am the captain of
my soul.

By Signaling

Leadership Maturity
Schadenfreude
Mudita(Buddhist)
Altru-hedonism
I’m doing better than the other guy
We’re doing better than those other guys
Appreciative joy at the success and good fortune of
others
Compassion
Jealousy, envy, greed, seeking exhilaration
Empathy
Pursuit of pleasure through the selfless concern for
the welfare of others
What is good for us is good for me
What is good for them is good for us

More Leadership Maturity
LowEnergy
LazyLeadership
Deeper,moreintense
HighEnergyLeadership
Invoke identity, relative comparison to other tribes
Drive strong social cohesion, unconditional loyalty
Constantly challenge “how” in order to open up
more possibilities for “what”
Provide a sense of purpose
Conformity, excommunication, intolerance
Define & Communicate “why?”
Challenge & redefine identity “who we are”
Actively manage identity. Make values explicit
Invest in improved capability (people, skills, equipment)
Challenge & redefine purpose “why we exist”

More Leadership Maturity
Relative
Measure
Absolute
Measure
I don’t care if we are winning, so long as I am scoring
We don’t care if we are winning, so long as our
rivals are losing
If we are not winning, we are not good enough. It is
irrelevant what our rivals are doing
We compete with ourselves, our own standards,
our own expectations, our own goals
We aspire to perfection, to be the example against
which all others are measured
Our history doesn’t define us, our future does
Competition inspires and challenges us to be better

Learning&improvement
Stressors
ReflectionMechanisms
Kanban
Meeting
Risk Review
& SDR
Ops Review
Strategy
Review
Personal
WIP Limit
Column
WIP Limit
Row
WIP Limit
Strategy vs
Capability
Visualization
Delivery
Planning
Personal
Reflection
Ops Review
Triage
Replenishment
46

KMM Evolutionary Change Model

Equilibrium
Disrupting the current equilibrium

Consolidating to next level may require some coaching

Tails of Transition:
ML1 – ML2

Problem Statement
“Every team reports that they deliver on
their commitments but I know that
customers are waiting longer than 6
months for delivery”
agile coach,
internet equipment manufacturer

Maturity Level 1 - Team Kanban Boards
Backlog
F
E
G
D
Next Done
3
In-progress
3∞ ∞
GY
PB
DE

Diagnosis
Lack of service-orientation
Localized metrics & objectives
No customer recognizable work items
Lack of collaboration across service-
delivery workflow

Recommendations
Implement:
STATIK
Customer recognizable work item types
Service-oriented workflow board
System Capability Review

Maturity Level 2 – Aggregated Team Kanban Board
Ready for
Customer
Pool
of
Ideas
F
E
I
Next
Mobile UI
Dev
G
D
GY
PB
DE MN
5
3
P1
AB
Ongoing
Platform
Enhancement
API Development
Done Ongoing Done
3 3
Team 1 Kanban
∞ ∞ ∞
Team 2 Kanban
Team 3 Kanban

Economic Benefits of ML2
Large telecom and internet equipment manufacturer
Kanban across 5500 people, 14 product units
Maturity Level 2
10-50% productivity improvement
Displaced the need to hire 1200 engineers

7 Bariers to ML2
1. Not starting with a customer-facing service
2. Lack of service orientation / customer focus
3. Copying an organizational blueprint
4. Forced to use an organizational standard process
5. Managers do not take Kanban training
6. Lack of Flow Manager
7. Legacy tooling

ML2 – ML3

Problem Statement
“I haven’t looked at the lead time
chart in months”
software development manager,
telecom equipment manufacturer

Diagnosis
Is the “service delivery manager
role present?
Are customer expectations
understood & communicated?
Is there service delivery review
happening?

Additional questions
Is there any blocker management?
Is blocker likelihood and impact
being reported?
Is there a risk review?
Is the lead time distribution thin or
fat-tailed?

Recommendations
Implement:
Service Delivery Manager Role
Service Delivery Review
Blocker Metrics
Risk Review
Customer Expectation Fitness Criteria

F
F
FF
F
F J
I
Maturity Level 3 Kanban Board (and pull system)
Ideas
D
I
Engin-
eering
Ready
G
5
Ongoing
Development Testing
Done
3 3
Test
Ready
5
F
B
CPull
Pull
*
UAT
Deploy-
ment
Ready
∞ ∞

In typical early case studies such as Microsoft IT, Corbis, Robert Bosch, Posit Science
and IPC Media…
Scale from 6 to 150 people
Maturity Level 3 – full pull implementation
100-250% productivity improvement
Lead times reduced by up to 90%

12 Barriers to ML3
1. Lack of purpose
2. “We are just order takers”
3. Silos. Local metrics and reporting. Lack of customer oriented KPIs
4. Lack of role responsible and accountable for taking customer orders to expectations –
the Service Delivery Manager
5. Regime change – reorganizations erase evolving ‘informal’ collaboration across silos
6. “All our demand is fixed date”
7. “All our demand is irrefutable”
8. Lack of qualitative understanding of business risks
9. Lack of mathematical literacy
10. Lack of skills in negotiation or forming business agreements
11. Legacy tooling
12. “We need a tool before we can get started”

ML3 – ML4

Problem Statement
“We just put out a release on time,
met our commitments, but our
product management team,
reacted with WTF is this?”
software development manager,
mobile application, Berlin

Diagnosis
Work items weren’t meaningful and
understood by customers
A-synchonous commitment
Pull from partially committed
“buffer”, no replenishment meeting

Recommendations
Implement:
2-tiered Kanban Board
New coarse-grained work item type
Synchronous commitment
Full replenishment meeting with customers
present, & synchronous commitment
Customers commit to coarse-grained work items

Parent-child dependencies can be
represented with 2-tiered boards
Features
(parents)
User
Stories
(children)

Single Service, Multiple Classes of Service
Maturity Level 4 risk hedging strategy with capacity allocation
5 4 4 5 2= 20 total
Allocation
10 = 50%
...
+1 = +5%
4 = 20%
6 = 30%
Input
Buffer In Prog DoneDoneIn Prog
DevelopmentAnalysis Build
Ready Test
Release
Ready

3 Services Aggregated Together
Maturity Level 4 risk hedging strategy with capacity allocation
5 4 4 5 2 = 20 total
Change Req
12
Maintenance
2
Production Defect
6
Allocation
Total = 20
Input
Buffer In Prog Done
Build
Ready Test
Release
ReadyDoneIn Prog
DevelopmentAnalysis
Released

BBC Worldwide Website*
HP Laser Printer Firmware
Scale around 600 people
Productivity gains of 700%
Lead times reduced from 21 months to 3 months
*IEEE Management: Middleton and Joyce

7 Barriers to ML4
1. Lack of customer intimacy
2. Lack of strategic direction or risk hedged allocation of investment
3. Lack of alignment and congruence with strategy and values
4. Lack of quantitative understanding of business risks
5. Lack of mathematical literacy
6. Lack of risk management literacy
7. Lack of confidence, planning, scheduling at scale

Discover your purpose

Adopt cultural values & management practices
to evolve to a properly balanced,
fit-for-purpose organization

Let the
Kanban Maturity Model
be your guide

Don’t be a Grumpy German!
https://mobil.stern.de/wirtschaft/job/mitarbeiterzufriedenheit--so-unzufrieden-sind-die-deutschen-im-job-8568540.html

David Anderson | dja@djaa.com Official Licensed Material Copyright Mauvius Group Inc.
Take the training class
in Hamburg in December

Thankyou!

About
David Anderson is an innovator in
management thinking for 21st Century
businesses. He leads a training, events,
licensing and publishing business making
new ideas accessible to managers across
the globe.
He has 30+ years experience in the high technology
industry and has worked at IBM, Spint PCS, Motorola
and Microsoft as well as several startups
David is the pioneer of the Kanban Method, Kanban
Maturity Model, Fit For Purpose Framework and
Enterprise Services Planning.
He is the author of 6 books, the most recent being Fit
For Purpose – How Modern Businesses Find, Satisfy &
Keep Customers 2nd Edition.
David is Chairman of David J Anderson School of
Management, a private business school with locations
in Seattle, USA and Bilbao, Spain, and CEO of
Mauvius Group Inc. doing business as Kanban
University licensing Kanban training through a global
network of partners and training companies.

Appendices

The Kanban Maturity Model Book

Fit for Purpose

Official Licensed Material Copyright Mauvius Group Inc.
The Fit-for-
Purpose
Framework
David Anderson | dja@leankanban.com Alexei Zheglov| alex@LeanAtoZ.com

LKCE19 - David J. Anderson - Why We Need KMM

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