Post on 08-Sep-2014
description
Kanban for���Portfolio Management
Gaetano Mazzanti @mgaewsj
Agile42
sounds familiar?
“too many things to do” “slipping schedule”
“continuous resource reallocation, multitasking”
“too slow to react”
demand
capacity
the illusion of predictability
delays
defects plan
uncertainty emerging knowledge
impediments
more detailed planning rigid change management
additional overhead
welcome to uncertainty
Project Portfolio Management (PPM) is the centralized management of processes, methods, and technologies used by project managers and Project Management Offices (PMOs) to analyze and collectively manage a group of current or proposed projects based on numerous key characteristics. The objectives of PPM are to determine the optimal resource mix for delivery and to schedule activities to best achieve an organization’s operational and financial goals ― while honouring constraints imposed by customers, strategic objectives, or external real-world factors.
wikipedia
traditional portfolio tenets
Governance
Compliance
Control
PMO (budget administration, staffing, auditing)
traditional portfolio “pillars”
Top-down
Centralized Annual Budget
Detailed Planning
Fixed date, fixed cost, fixed scope���(fixed fate L)
Cumbersome electronic tools
starting vs finishing
people as “resources”
full capacity allocation
PUSH!
we love Excel!
rebooting teams
project “completed”: ���reboot the team and…���
start again L ouch!
teams are rebooted, project to project, putting together different people each time and expecting to have predictable outcomes
Tuckman model of team development
On time, On Budget & Conformant to Specs
oops!
how is success measured
inspired by Joakim Sunden
What is Lean Kanban?
The Kanban method is an���evolutionary approach to change
Lean
add value without generating waste
muri, mura, muda
principles of the���Kanban method
start with what you do now
agree to pursue incremental, evolutionary change
respect the current process, roles, responsibilities & titles
encourage acts of leadership at all levels in your organization – from individual contributor to senior management
Kanban���six core practices
visualize ���limit WIP���manage flow ���make process policies explicit���implement feedback loops���improve collaboratively, evolve experimentally
if you can’t see it���you can’t manage it
Visualize
Knowledge work is invisible. If you can’t see something, it is (almost) impossible to manage it.
Collaborative process improvement is almost impossible if work and workflow are invisible and if process policies are not explicit.
David J Anderson
a Kanban board
visualize to understand the process
how the process works and fails to work for you and your customers
how it can be changed
expose dysfunctions
Limit WIP
balancing���demand & capacity
demand
capacity
no matter how good you are at filtering���capacity is always full (and more)
# of items in system (WIP)
B
C D F
E
A
ideas elaborate do delivered validate
G
H
I
# of items in a specific state = 2
# of items in���specific area = 4
total # of���items = 9
limiting WIP
fewer commitments
more options
finishing stuff-> stop starting start finishing
100% utilization myth idle work
vs
idle workers
efficiency (doing things right)
vs
effectiveness (doing the right things)
multitasking sucks
it’s easier to start than it is to finish
multitasking sucks
visualphotos.com
123456
YOUR MULTITASKING ���IS MY BOTTLENECK
Jim Benson
12
34
56
let work flow let work flow
visualize flow
ideas elaborate do delivered validate
B C
D
F E
A
visualize flow
B
C
D
F E
A
ideas elaborate do delivered validate
highlight issues
B
C
D
F E
A
ideas elaborate do delivered validate
!
!
measure flow
B
C D F
E
A
ideas elaborate do delivered validate
G
H
I
cycle time
= WIP / throughput
(throughput = average completion rate)
Little’s Law
flow = speed * density
slack (%) absorb variations
% capacity utilization
queue size
queue size grows
exponentially at high capacity 0
5
10
15
20
25
0 10 20 30 40 50 60 70 80 90 100
make process policies explicit (i.e. definition of done, WIP limits, pairing reviews, test automation, …) implement feedback loops (i.e. standups, retrospectives, operation reviews, metrics, …) improve collaboratively, evolve experimentally (using models and the scientific method)
Lean Agile Portfolio traits
Value driven
WIP limited
Decentralized, adaptive
Empirical, Probabilistic (statistical data support)
Lightweight business case/specs
Lightweight estimation
Physical Boards
Traditional Portolio Management
Centralized Annual Budget
Detailed Planning
Fixed date, fixed cost, fixed scope���(fixed fate L)
Compliance driven, top-down approach
Cumbersome electronic tools
Kanban board design Ideas
ooBiz Case Tech
Assessment15-30 5-12
Committed5
In Progress5
Verification5
RejectedCommitment
Point
Busines
s
R&D
source David J Anderson
Kanban board designs
source Pawel Brodzinski
demand analysis
where does work come from?
how is value assigned (and verified) to initiatives?
is arrival rate predictable? (usually not)
Ideasoo
Biz Case TechAssessment
15-30 5-12Committed
5In Progress
5Verification
5
RejectedCommitment
Point
Busines
s
R&D
work item types
standard
fixed date
urgent/emergency
intangible
…
small
medium
large
…
growth
maintenance
innovation
…
the magic of visualizing
waiting for approval initial design,
planning, outsourcing,
mold design, etc.
demand
capacity
one week later
a new board
color = team
46
flow
(bad) flow
Z Z ZZ Z
Z Z ZZ Z
Z Z ZZ Z
bottlenecks
B
C D F
E
A
ideas elaborate do delivered validate
G
H
I
gate
J
K
bottlenecks
B
C
D
F
E
A
ideas elaborate do delivered validate
G H
I
gate
J
K L
bottlenecks
B
C
D
F
E
A
ideas elaborate do delivered validate
G H
I J
K
L
gate
items queueing up
empty area
limit WIP
by # of initiatives (size matters)
by size
by team capacity
by space available
by conversation
…
limit WIP by���team capacity / space available
mar apr may jun jul aug sep
TeamA
TeamB
TeamC
TeamD
TeamE
once again: ���complexity and uncertainty are
intrinsic to knowledge work
we must be able to���react to unfolding events and���adapt to changing circumstances
David J Anderson
but… we hate uncertainty
we prefer to take a decision now
even if it risks being wrong
i.e. annual budget (we remove options, we increase risks)
decision making in uncertainty
balance:
risk/return
maintenance/growth
short term/long term
etc.
selection
what to do next?
what to finish next?
last responsible moment selection
Discoverwhat to do
Do It Validate Outcome
Reject Commitment
keep your options open
pull
selecting/pulling���a project
do first
do next
do soon /���re-evaluate
do sometime or reject
fit with goals
timeliness (urgency, ���
Cost of Delay, ���fit with strategy)
source GDS select what you don’t do
what about���specs & estimations?
what if you have 50 candidate initiatives and only 15 can be done?
what’s the point (cost) of specifying and estimating all 50?
precision is worthless
guesstimation -> range + historical data
check and adapt
when starting a project
we simply need a rough idea of size and���an understanding of (un)certainty
which parameters should you consider to select what to do next
ROI, IRR, NPV, etc. ?
Do you know your Cost of Delay???
ROI Cost of Delay���
(1 month)
Project A 25% 5k
Project B 15% 30k
which one would you select next? example credit: Kenny Rubin
cost of delay &���classes of service
cost
time
cost
time
cost
time
classes of service and WIP standard work = 60%
urgent = 10%
due date = 20%
maintenance = 10%
classes of service, WIP, expedite lane
D
H
J I
F B
A E C
6
M L K 2
1
1
O
Q
N
P
EXPEDITE LANE
G
ideas elaborate do delivered validate
metrics?
try
measure learn
goal
measure learn
as a learning loop
control chart
4
6
8
10
12
14
16
average cycletime
UCL
LCL
cycle time
knowledge work has high variability
time!
CFD���Cumulative Flow Diagram
monitoring progress 90% complete
remaining 10% could take forever
is usually meaningless
90% of what?
burn-up chart
time
outcome
enough…
Lean Agile Portfolio traits
Value driven
WIP limited
Decentralized, adaptive
Empirical, Probabilistic (statistical data support)
Lightweight business case/specs
Lightweight estimation
Physical Boards
Traditional Portolio Management
Centralized Annual Budget
Detailed Planning
Fixed date, fixed cost, fixed scope���(fixed fate L)
Compliance driven, top-down approach
Cumbersome electronic tools
Portfolio Kanban���is more about���
changing/transforming the organization���than about���
stickies on a board
Mike Burrows
no change disruptive change
Kanban
inspired by the works of many, including���Mike Burrows, Pawel Brodzinski and David J Anderson
Kanban
learn from the people plan with the people begin with what they have build on what they know
Lao-Tzu
Gaetano Mazzanti
@mgaewsj
gaetano.mazzanti@agile42.com
Agile42
Kanban