Change Lessons Learned - Implementing a Kanban System for Enterprise Agility

ChangeLessonsLearned

DesignandImplementationofaKanbansystemforEnterpriseAgility

ShoaibShaukat@shoaibshaukat

Change is the end result of all true learning.

Leo Buscaglia

Lean Kanban Leadership Retreat – Bali 2016

About Me | Lean Agile & Kanban Coach and Management Consultant | Shoaib Shaukat

Context ImplementSituation LearningThinking

Company Competitors Customers


Large Energy Distributor in Victoria is looking to achieve Enterprise Agility within IT and Business

• LackofProcessTransparency• LowDecisionMaking (Priorityof

work)• Waterfall/Prince2process• Automatedsystems/rigid

processes• LotofWIPclogging theteams• Pushdriven (fungible resource

mindset)

• 2500+employees• Lackofbigpicture

understanding• LowCommitment• LowAccountability

• Functional/Siloed• Leadershiphierarchy• Cost&Efficiencydriven• CentralCustomerservices

model


Structures

Processes

People

Industry• Energydistribution• RegulatedbyGovt.• Facingtechnology disruption

frombatterystorage• Lowcommercialfocus

SowhatbusinesswassayingaboutIT…

Percep

tions

Lackofvisibility inITprocesses

ITnot takingownershipofissuesorchangesoroutcomes

Stagnationof systemonceprojecthasbeen

finished

Slownessduetocostrecoveryprocesses->reducing flexibility,

agility,responsiveness

Busin

essN

eeds Leadership Fasterdelivery Customercentric

&responsiveTransparency&

Visibility Agileandflexible

Collaborative Valueadding Ownershipandaccountability Innovative


Organizationisasocialandinteractionspace– verydifficulttochangelargeorganisations

Tofomentchangeallofthisneedstobechanged:

People,Process,Culture


Courtesy:LindaRising

Implementingprocessesisallaboutshapingbehavior

• Thetraditionalviewisthatbydefiningprocessesyoucancontrolpeoplesbehavior,butitisactuallytheotherwayaround.

• Organization'sprocessesandpracticesareanoutcomeofpeople'sthinkingandbehavior.


Pred

ictability Adaptability

Emergence

Convergence

AEPEPC AC

Ad-Hoc

Lean/Agile Agile

LeanStartup

Teams

LowTrust

BecomePredictable ReduceBatchSize

FullyDecouple

PhaseOne

PhaseThree

PhaseFour

PhaseTwo

PhaseFive

PhaseFive• Investto

Learn


PhaseFour• IncreaseLocal

Autonomy

PhaseThree• Break

Dependencies

PhaseOne• Stabilizethe

System

PhaseTwo• ReduceBatch

Size

• Everyteamwillbeanexpeditionteamwiththeirownexperienceandculture• Focusonthegovernance,empowertheteamsandpromotesharedvalues• Everyteamwilltravelatownpacedependingupontheluggagetheycarryon

pathtoAgility


Transformation:ExpeditionApproach– Knowyourtrek

Transformation:ChangeAdoptioncurve

Innovators– 2.5%This isnew– soit’scool!

Earlyadopters– 13.5%It’sinterestingbutIwanttolearnmore. Earlymajority– 34%

Iwanttoknowwhatotherpeople think.

Latemajority– 34%IfIhaveto– Iguess.

Laggards– 16%Wehavealwaysdoneitthisway.


Courtesy:LindaRising


• Enterprisewidesystemchangerequestsincludingsmalltolargechanges.

• Lackofbusinessengagement• Lackofaccountabilityonpartofteams• Highlydissatisfiedbusinessstakeholders• Backloggrownto>800outstandingissues• ~80newfeature/changerequestseverymonth

Transformation:Pickahighvisibilityproblemwithenterprisewideimpact

CaseStudy


Questions:• Wheretolocatethisnewprojectteam?• Whereistheproductowner?• Scrumneedsalltherolesco-located

Decisions

Kanbanisthehumane“startwithwhatyoudonow”approachtochange

TransparencyBalanceRespect

Understanding

CollaborationCustomerfocusAgreementLeadership

AchievingDepthofKanban(Practices)

Visualise

LimitWIP

ManageFlowMakePoliciesExplicit

ImplementFeedbackLoop

Improve Collaboratively,EvolveExperimentally


ImproveCollaboratively– EvolveExperimentally

• BuildingaGovernanceteam(initiallyBusinessPartnershipManagers)andexpandingtoincludetheITGroupManagers(influentialcoalition)• IdentifyBusinessManagers(Finance,Strategy,HR,Legal,ElectricityNetworks,Services,Customergroupetc.)whocouldprioritiseorinfluencetheyteams• IdentifiedprocesschampionsfromApplicationteamsandBusinessteams.• Approaches• Carrot&Stick• Experimentation• Coaching&Mentoring


Transparencyprovidesmanagementcontrolwithlessoverhead


VisualisePortfolioWall

• Providesclarityandsenseofachievingitcreatesmotivation(Zeigarmik Effect)• Positivefeedbackfromyourpeers re-enforces thebehaviour• Also helps us tosee problem(s)anddosomethingabout them

Visualizationaccelerateslearningandtheabilitytoprioritise


ImprovedDecisionMaking

• Createdpipelinesofworkbybusinessunits• Prioritise(basedonValue) collaborativelywithbusinessstakeholdersatwalleveryfortnight• WorkingwithDeliveryteamstoEstimate(Effort) theprioritisedbacklogeveryfortnight• SimpleT-ShirtSizes(1,2,3,4,5)forValueandEffort• Rank=Value/Effort(WSJF)• Settingtherulesofengagement• Everyteamwillonlyworkfromaprioritisedbacklogetc.


Turnthefocusonfinishinganddeliveringwork.

• Easywithsometeamsvsothers(ongoingcoaching)• Educatingthebusinessisacontinuouseffort


MakePoliciesExplicit

• Classesofservice(standardisingtypesofrequests)• Prioritisationpoliciesforbusinessunitse.g.Regulatory,Strategic,BAUetc.• Introducingfastlane(Superhighway)forurgentrequestswithagreement• Simplifyaccountingpractices


ImplementFeedbackloops

• MonitorBalance(Story/Issuecounts– CFDs)• Regularshowcases• Teamretrospectives• Releaseshowcases• JointplanningsessionswithBusiness&ITteams


AchievingResults

• Arenewedfocusonmakingtheworkvisibleandprioritisedhelpedthesameteamstobecomemoreproductive.• Backlogof800itemswasreducedto<350within4monthsoftheintroductionofnewprocess.• Thiswasdespitethefactthatnewissueswerecomingatthesamerate~80permonth.


• Anexpeditionapproachforagiletransformationisrequired–acknowledgedifferentteamswilladoptagileattheirownpace.• Organisationsaretoodifficulttochange– establishingalongtermgoalatstartbutbepreparedtoadaptandsetshorttermgoals.• Usechangeadoptioncurvetoyourbenefit– movepeopletowardstheinnovatorsgroup.• Focusonpeopletochangethemindsets&beliefs.• Useprocessasatooltoshapebehavioursnottocontrolpeople.• UsedepthofKanbanprocesstoimproveyoursystem.• Collaborateatalllevelsandbuildcoalitionstomakethechangehappenandtakeroots.

Learnings:Sustaininglongtermchange…


Engineering

Change Lessons Learned - Implementing a Kanban System for Enterprise Agility