Talk given at Lean Kanban Central Europe 2016

1. Dr. Klaus Leopold
web: www.LEANability.com
blog: www.klausleopold.com
mail: klaus.leopold@LEANability.com
twitter: @klausleopold
Enterprise Flow
Lean Kanban Central Europe, 8. Nov. 2016, Hamburg, DE

2. www.LEANability.com@klausleopold
•company with ~80 development teams
•excellent order situation
- more and more customer projects
- many ideas for product development
•problems
- long cycle time of projects
- bad on time delivery
•suggested solution: let’s make all teams A G I L E
The Situation
•project business
- product development
- (customization) projects

3. @klausleopold www.LEANability.com
started
finished
projects in
progress
long term average arrival rate
long term average departure rate
#projects
time

4. www.LEANability.com@klausleopold
ONGOING PROJECTS DONE
l
l

5. www.LEANability.com@klausleopold
ONGOING PROJECTS DONE
l
l

6. www.LEANability.com@klausleopold
ONGOING PROJECTS DONE
l l

7. www.LEANability.com@klausleopold
ONGOING PROJECTS DONE
l
l

8. www.LEANability.com@klausleopold
ACTIVE PROJECTS DONE
l
INACTIVE PROJECTS
l
the amount of active working
time at the lead time is
often not more than 5%
limit number of projects in progress!

9. www.LEANability.com@klausleopold
DONE
l
OPTIONS
limit number of projects in progress!
(2)
l
But where’s the benefit?
Before, project were waiting in INACTIVE
now they are sitting in OPTIONS.
PROJECTS

10. @klausleopold www.LEANability.com
A
B
C
5 weeks
A B C
5 10 15
13 14 15
A AB BC C

11. @klausleopold www.LEANability.com
A
B
C
5 weeks
5 10 15
16 18 20
A AB BC C
WIP limits
- reduce cycle time & time to market
- reduce switching overhead
- reduce cost of delay
- reduce delivery risk
- increase predictability
- …
A B C

12. www.LEANability.com@klausleopold
Little‘s Law
Ø cycle time =
Ø WIP
Ø throughput
John D.C. Little
= time, work spends in the system
= number of work items in the system
= number of completed work items in a
timeframe
cycle time
WIP
throughput

13. www.LEANability.com@klausleopold
A G I L ELet’s make all teams
You need to limit the entity where you want to see the benefits!
•lead by example
- be the change that you want to see
- let teams work and let them pull
change
•do strategic portfolio management
- limit WIP in your company
- cash cows, innovations, change
initiatives, etc.

14. www.LEANability.com@klausleopold
clarification realizing lessons learned
limit WIP in your organization
0% 99%
PROJECTS
INNOVATIONS
ORG-CHANGES
concept realizing next steps
prepare realizing validate next steps
DONEOPTIONS

15. www.LEANability.com@klausleopold
Coordination: weekly strategy meeting
•participants: top management and department leaders
•main purpose:
- update the overall view
- decide on starting new projects, innovations, and changes
•location: in front of the board
•duration:
- scheduled for 30 minutes
- mostly not longer than 10-15 minutes

16. www.LEANability.com@klausleopold
started
finished
options
work removed
from options pool
throughput increased
delivered more, faster
Work in Progress decreased
#projects
time

17. www.LEANability.com@klausleopold
•organizational performance increased significantly
•teams felt less stressful
•more and more teams started to use Kanban on team level
•That’s a very good thing!
- Still, we must not sub-optimize too much.
Dynamic started

18. www.LEANability.com@klausleopold
awesome methodAGILE
Team
“install” your favorite agile method here

19. www.LEANability.com@klausleopold
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
am
Team
Team
Team
Team

20. www.LEANability.com@klausleopold
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
An organization is not
a container of
independent teams!!
Team
am
Team
Team
Team
Team

21. www.LEANability.com@klausleopold
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
am
Team
Team
Team
Team
Customer

22. www.LEANability.com@klausleopold
team 1
team 2
team 3
team 4
customer wish: write a love letter

23. www.LEANability.com@klausleopold
customer wish: write a love letter

24. www.LEANability.com@klausleopold
The performance of a system is not
the sum of its parts.
It’S the product of its interactions.
— Russell Ackoff

25. www.LEANability.com@klausleopold
Agility of an organization is not
having many agile teams.
Agility is about having
agile interactions between teams.

26. www.LEANability.com@klausleopold
organizational structure operational structure
idea/order value

27. www.LEANability.com@klausleopold
operational structure
1. identify, visualize and optimize work flow
2. limit work in progress
3. establish fast feedback loops
optimize
AGILE INTERACTIONS
idea/order value
for each portfolio item:

28. www.LEANability.com@klausleopold
SYSTEM FOR A PLATFORM PROJECT
coordinates the work of
- 6 development teams (including 2 Scrum teams & 1 Kanban)
- enterprise architects
- business representatives
- sales representatives
doing approved int.
(24)
concretize
idea
(12)
define
epic
(9)
development
(8)
review
epics
ready
for dev
rejected
(1)
test
(1)
ready
to roll
(1)
roll
out
DONEINBOX
doing done doing done UAT0% 99%50% done
dev team
planning
(12)
GO!
Start here!
“scale down” later
Remember, teams
didn’t change the
way they worked!

29. www.LEANability.com@klausleopold
doing approved int.
(24)
concretize
idea
(12)
define
epic
(9)
development
(8)
review
epics
ready
for dev
rejected
(1)
test
(1)
ready
to roll
(1)
roll
out
DONEINBOX
doing done doing done UAT0% 99%50% done
dev team
planning
(12)
GO!
(5)
develop
int. test UAT
(2)
waiting
4 EPICdefine tasks
(4)
NEXT
(1)
review
READY 2
ROLL
Elephant 1 + Tasks
Elephant 2 + Tasks
(5)
test
doing done
SYSTEM FOR A TEAM
This part of the board
is POTENTIAL DEMAND
for the team!

30. www.LEANability.com@klausleopold
Coordination
•standup
- twice a week, delegates
•retrospective
- once a month, delegates
•team planning
- weekly, delegates
project level
•team stand-ups
- daily or twice a week, team
members plus “guests”
•team retrospectives
- 2-3-4 weeks cadence, team
members plus “guests”
team level

31. www.LEANability.com@klausleopold
Split Develop Review DONEAnalyze
Level 1: operational
Clar. Arch. Realization Roll-Out Train DONE
Level 2: coordination
Strategy X
Strategy Y
Project A
Idea Elaborate Realize DONE Level 3: strategy FLIGHT LEVELS

32. www.LEANability.com@klausleopold
TAKE AWAYS
*Agile teams don’t lead to an
agile organization
*start “as high” as you can
-biggest bang for the buck
-limit WiP in your organization
-lead by example
*optimize operational structure
-changes in the organizational
structure might be a result

33. LEANability GmbH | Rögergasse 36/16 | A-1090 Wien
o f f i c e @ L E A N a b i l i t y. c o m | + 4 3 6 7 6 3 3 0 4 8 0 3
www.LEANability.com | facebook.LEANability.com
www.bit.ly/kcl-wiley
EXTRA: E-Book inside
klaus LEOPOLD
KANBAN
VOM TEAMFOKUS
ZUR WERTSCHÖPFUNG
in der Praxis
www.bit.ly/kanbaninit-v2www.bit.ly/kanban-praxisbuch