Kanban - The Radical Choice for Enterprise Agility
"Discover why Kanban is gaining traction in the agile community, with successful implementations in China and Europe. Learn about its cost-effectiveness and significant return on investment, making it an appealing alternative to traditional Agile methods."
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Presentation Transcript
Kanban This is going to scare the living daylights out of the agile community , Rachel Davis (March 2007) www.agileagonist.com
Daniel Doiron PMP-AKT www.agileagonist.com Lean Kanban University Trainer Daniel Doiron @agileagonist LinkedIn - Daniel Doiron Management 3.0 Facilitator Daniel Doiron
KANBAN the alternative path to agility The least disruptive approach to enterprise agility The most radical alternative to Agile
ACCEPTANCE 11 years later no one is arguing that Kanban isn t appropriate in professional services work Companies everywhere, large and small, are simply doing it! So, it s time to declare victory! We ve won the argument that Kanban is a good idea!
KANBAN is much cheaper to implement At one of the Chinese companies, Kanban is costing just 1/150 of the cost of Scrum on a per employee basis Scrum is requiring 1 coach for every 12-14 employees and is struggling to institutionalize Kanban cost just 200 training and coaching days to completely institutionalize across several thousand people in 5 cities across China
CHINA 3 Chinese companies have very large scale Kanban implementations: Huawei Telecoms & electronics 5000+ people Ping An Insurance & banking 5000+ people CMB Banking 3000+ people Meanwhile in Europe Large scale has been seen at Ericsson, Skania, Siemens, Rolls-Royce, BBVA, Odigeo (eDreams, Opodo) and others
RETURN ON INVESTMENT Implementations at Huawei, Ping An & CMB have each cost around the equivalent of 3 full time employees salaries Huawei are seeing improvements in productivity in the range of 10-50% with an average of 25% across more than 10 product units Improvements at Huawei are the equivalent of 1250 engineers they didn t need to hire Return on investment is 300->400:1 or >30,000%
Cause No Harm! While there have been failed Kanban implementations, there are no stories of Kanban doing harm to organizations Unlike some Agile methods and other management fads such as holacracy, there are no stories of Kanban causing 20%-40% staff turnover or inflicting brutal and cruel change There has been tribal, emotional push back in organizations where Agile is a religion
KANBAN AT MICROSOFT 2005 Virtual Kanban pull system No visual boards! 230% productivity improvement 91% reduction in average lead time On-time performance up from 0% to 98% Time frame 15 months Cost almost nothing, no coaching fees, no training, no consultants, 2 permanent team members added mid-transformation taking productivity from 150% improvement to 230% improvement
KANBAN at Hewlett-Packard 2006 Virtual Kanban pull system no visual boards! 700% productivity improvement! Lead time on new generation of laser printer firmware dropped from 21 months to 3.5 months 4.5 day working week Timeframe less than 1 year Cost almost nothing no coaches, no training, no consultants
KANBAN It works for all professional services! It is not just for software development or your IT department
UP COMING DALLAS CLASSES - 20% OFF TO PMI DALLAS CHAPTER MEMBERS WITH PROMOTIONAL CODE = DALLAS WEEKEND KMP I Dec 16-17 2017 https://edu.leankanban.com/class/3752/kmp-i-kanban-foundation-system-design-dallas KMP II Dec 18-19 2017 https://edu.leankanban.com/class/3753/kmp-ii-kanban-cadences-management- professional-dallas KMP I Feb 13-14 2018 https://edu.leankanban.com/class/4080/kmp-i-kanban-foundation-system-design-dallas KMP II Feb 15-16 2018 https://edu.leankanban.com/class/4081/kmp-ii-kanban-cadences-professional- management-dallas
Thank you & Read Students Testimonials at www.agileagonist.com
