Kanban for Portfolio Management
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slides for my presentation at OSS4B 2013
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Kanban for Portfolio Management
- 1. Kanban for Portfolio Management Gaetano Mazzanti @mgaewsj Agile42
- 2. sounds familiar? too many things to do slipping schedule continuous resource reallocation, multitasking too slow to react
- 4. the illusion of predictability delays defects plan uncertainty emerging knowledge impediments more detailed planning rigid change management additional overhead
- 6. 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
- 7. traditional portfolio tenets Governance Compliance Control PMO (budget administration, staffing, auditing)
- 8. 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!
- 10. 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
- 11. On time, On Budget Conformant to Specs oops! how is success measured
- 12. inspired by Joakim Sunden
- 13. What is Lean Kanban? The Kanban method is an evolutionary approach to change
- 14. Lean add value without generating waste
- 15. muri, mura, muda
- 16. 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
- 17. Kanban six core practices visualize limit WIP manage flow make process policies explicit implement feedback loops improve collaboratively, evolve experimentally
- 18. if you can’t see it you can’t manage it
- 19. 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
- 20. 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
- 22. Limit WIP
- 23. balancing demand capacity demand capacity no matter how good you are at filtering capacity is always full (and more)
- 24. # 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
- 25. limiting WIP fewer commitments more options finishing stuff- stop starting start finishing
- 26. 100% utilization myth idle work vs idle workers efficiency (doing things right) vs effectiveness (doing the right things)
- 27. multitasking sucks it’s easier to start than it is to finish
- 28. multitasking sucks visualphotos.com 1 2 3 4 5 6 YOUR MULTITASKING IS MY BOTTLENECK Jim Benson 1 2 3 4 5 6
- 29. let work flow let work flow
- 30. visualize flow ideas elaborate do delivered validate B C D F E A
- 31. visualize flow B C D F E A ideas elaborate do delivered validate
- 32. highlight issues B C D F E A ideas elaborate do delivered validate ! !
- 33. measure flow B C D F E A ideas elaborate do delivered validate G H I
- 34. cycle time = WIP / throughput (throughput = average completion rate) Little’s Law
- 35. flow = speed * density
- 36. slack (%) absorb variations % capacity utilization queuesize queue size grows exponentially at high capacity0 5 10 15 20 25 0 10 20 30 40 50 60 70 80 90 100
- 37. 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)
- 38. 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
- 39. Kanban board design Ideas oo Biz Case Tech Assessment 15-30 5-12 Committed 5 In Progress 5 Verification 5 Rejected Commitment Point Business RD source David J Anderson
- 40. Kanban board designs source Pawel Brodzinski
- 41. demand analysis where does work come from? how is value assigned (and verified) to initiatives? is arrival rate predictable? (usually not) Ideas oo Biz Case Tech Assessment 15-30 5-12 Committed 5 In Progress 5 Verification 5 Rejected Commitment Point Business RD
- 42. work item types standard fixed date urgent/emergency intangible … small medium large … growth maintenance innovation …
- 43. the magic of visualizing waiting for approval initial design, planning, outsourcing, mold design, etc. demand capacity
- 44. one week later
- 45. a new board color = team
- 46. 46 flow
- 47. (bad) flow Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z
- 48. bottlenecks B C D F E A ideas elaborate do delivered validate G H I gate J K
- 49. bottlenecks B C D F E A ideas elaborate do delivered validate G H I gate J K L
- 50. bottlenecks B C D F E A ideas elaborate do delivered validate G H I J K L gate items queueing up empty area
- 51. limit WIP by # of initiatives (size matters) by size by team capacity by space available by conversation …
- 52. limit WIP by team capacity / space available mar apr may jun jul aug sep Team A Team B Team C Team D Team E
- 53. 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
- 54. 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)
- 55. decision making in uncertainty balance: risk/return maintenance/growth short term/long term etc.
- 56. selection what to do next? what to finish next?
- 57. last responsible moment selection Discover what to do Do It Validate Outcome Reject Commitment keep your options open pull
- 58. 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
- 59. 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
- 60. when starting a project we simply need a rough idea of size and an understanding of (un)certainty
- 61. 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
- 62. cost of delay classes of service cost time cost time cost time
- 63. classes of service and WIP standard work = 60% urgent = 10% due date = 20% maintenance = 10%
- 64. 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
- 66. control chart 4 6 8 10 12 14 16 average cycletime UCL LCL cycle time knowledge work has high variability time!
- 68. monitoring progress 90% complete remaining 10% could take forever is usually meaningless 90% of what?
- 70. enough…
- 71. 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
- 72. Portfolio Kanban is more about changing/transforming the organization than about stickies on a board Mike Burrows
- 74. 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