1. Enterprise Services Planning with Kanban Feb 18 th, 2015 Brought to you by:

2. Agenda:  Introductions  A Quick word from the Sponsor  Enterprise Services Planning with Kanban  Audience Q&A

3. Some Housekeeping  Questions will be taken via Q&A box. Please enter your question in the Q&A box on the right side of your screen.  Questions will be taken grouped by topic in the order received  The webinar will be recorded. Slides and the recording will be made available after the meeting.

4. Introductions  David Anderson  CEO, DJ Anderson & Associates  Mahesh Singh  Co-founder, SVP – Product, Digité/ SwiftKanban Today’s Speaker Your Host

5. David Anderson  David Anderson is a thought leader and pioneer in the field of Lean/ Kanban for Software Development and managing effective software teams. He has over 25 years experience in the software industry starting with computer games in the early 1980’s. He has led software teams delivering great productivity and quality using innovative agile methods.  David has written 3 books, Agile Management for Software Engineering – Applying the Theory of Constraints for Business Results, and Kanban – Successful Evolutionary Change for your Technology Business. His latest book is Lessons in Agile Management.  David is of course the Chairman of LeanKanban, Inc. LeanKanban Inc. licenses trainers and training materials and organizes events around the world to promote adoption and high quality understanding of the Kanban Method and Enterprise Services Planning.  Last but not the least, David is an Advisor to Digité, Inc. and consults with us for overall product strategy, especially in the area of Lean/ Kanban.

6. Quick word from the Sponsor!  Digité, Inc. - Pioneer in Web-based Collaborative Products/ Solutions for Geographically Distributed Teams  Headquartered in Cupertino, CA  Over 300,000 users in the Americas, Europe, Asia/ Pacific  Products that cover Lean/ Kanban, Agile ALM, Project/ Portfolio Management  SwiftKanban is our flagship Lean/ Kanban product

7. SwiftKanban Visual Management – Software Development

8. SwiftKanban Visual Management – Marketing

9. SwiftKanban Visual Management – Planning the Thanksgiving Party!

10. SwiftKanban - Analytics

11. Key Customers 11

12. Over to David ….

13. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Improving agility one service at a time Anticipating demand across an ecosystem of shared services Enterprise Services Planning Scaling the benefits of Kanban Presenter David J. Anderson Swift Kanban Webinar 18 February 2015

14. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Lean Kanban North America 2015 conference “Back to our roots” Implementing Kanban Looking to the future… Enterprise Services Planning

15. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Kanban Coaching Professional Masterclass 5-day course with David J Anderson March 2-6, 2015 www.djaa.com/kcpm-031www.djaa.com/kcpm-031 Hilton Alexandria Mark Center Learn how to lead successful Kanban initiatives. Improve service delivery and achieve better customer satisfaction Coaching for evolutionary change Assuring fitness for purpose Using the Kanban Method Designing a service-oriented organization Learn useful improvement models and all of our consulting tools For internal coaches, managers, and consultants

16. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc.

17. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Microsoft XIT Sustaining Engineering Deferred commitment pull system coupled to probabilistic understanding of lead time Improved productivity over 200% Greatly improved predictability Shortened lead times by ~90% Use of Kanban systems is minimally intrusive for engineers. Process methodologies didn’t change PSP/TSP remained in use throughout

18. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Conclusion Kanban is good for service delivery

19. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Kanban Method Emerges Kanban systems aren’t enough when there is too much variability in the workflow and too much heterogeneity of work types and trouble matching worker skills & experience Now known as a system liquidity problem Visual boards are introduced Kanban limits create stress & provoke process improvements Multiple classes of service emerge

20. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Kanban Method Matures A combination of elements of Kanban such as system replenishment, classes of service, understanding cost of delay, transparency and metrics start to change entire company culture Operations review drives BU wide improvements and starts to influence other BUs within the firm

21. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Conclusion The Kanban Method is a management system for cultural change & improving organizational maturity

22. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. First Kanban Software Digital Whiteboard application developed by Darren Davis at Corbis runs on top Microsoft Team Foundation Server Workers run Digital Whiteboard on their desktop but continue to use physical boards in parallel

23. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Conclusion We need software to get good metrics easily and amplify the management value of Kanban

24. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Kanban on Big Projects $11 million budget project with up to 55 people, 16 month schedule, approximately 2400 user story scope 2-tiered kanban boards emerge to visualize parent-child dependencies in requirements Introduces hybrid of dedicated teams and floating project personnel using avatars Specialists such as architects, UX Generalists who can help any team

25. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Conclusion Kanban is useful on large projects to improve predictability. More guidance on prioritizing backlogs is required at large scale.

26. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. STATIK Recognizing the need to teach people how to get started with Kanban, training classes adopt the use of the STATIK exercises STATIK = the Systems Thinking Approach To Implementing Kanban the method is presented at conference in 2012 the acronym will not be introduced until 2013

27. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Kanban has 3 approaches to scaling Scaling out a service delivery workflow  Expand kanban systems both upstream and downstream Scaling out across a network  Scale out using the service-orientation concept to build a network of independently operating but interdependent services (with a kanban system for each service)  Control WIP on unbounded queues between services Scaling by scale-free understanding – apply the principles & general practices at each level  Personal / small team  Tasks completed in hours  Service delivery / workflow  Work items e.g. user stories completed in days  Portfolio  Projects, MVPs, MMFs completed in months

28. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. The Kanban Lens Learn to view what you do now as a set of services (that can be improved):  What to look for… Creative work is service-oriented Service delivery involves workflow Workflow involves a series of knowledge discovery activities  What to do… Map the knowledge discovery workflow Pay attention to how & why work arrives Track work flowing through the service

29. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Treat each service separately Demand Observed Capability Demand Observed Capability Analyze demand & capability for each service independently Design a Kanban system for each service using the STATIK method. Scale out in a service-oriented fashion, one service at a time

30. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Anticipating Demand, Allocating Capacity Demand Observed Capability Demand Observed Capability Looking downstream, you want the system to help you anticipate and manage dependencies Looking upstream, you want the system to help you anticipate and manage demand Combine the two, and across the organization you smooth flow end-to- end and help keep demand in balance with overall system capability

31. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Scale-free understanding Eliminating unbounded queues Proto-kanban to full workflow kanban Coupling interdependent network of kanban systems Andy Carmichael’s Smallest Possible Definition of Kanban See Flow, Start Here, With visible work & policies, validate improvements Core practices renamed “general practices” with specific practices at different scales Personal/team Kanban Service Delivery / Workflow Kanban Portfolio Kanban

32. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. 2 Days of Learning Sessions Choose Your ½ Day Workshops Risk Profiling – David J Anderson Cost of Delay – Don Reinertsen Project Management with Kanban Cynefin 101 for Portfolio Kanban Simple Probabilistic Forecasting …and more! Becoming Data-Driven Objective Retrospectives Forecasting Enterprise Kanban & Lean Startup Scrumban Kanban Coaching Blockers for Improvement RBS Project Sizing Kanban Academic Research …

33. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Kanban Coaching Professional Masterclass 5-day course with David J Anderson March 2-6, 2015 www.djaa.com/kcpm-031www.djaa.com/kcpm-031 Hilton Alexandria Mark Center Learn how to lead successful Kanban initiatives. Improve service delivery and achieve better customer satisfaction Coaching for evolutionary change Assuring fitness for purpose Using the Kanban Method Designing a service-oriented organization Learn useful improvement models and all of our consulting tools For internal coaches, managers, and consultants

34. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc.

35. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Enterprise Services Planning Enterprise Services Planning is a new modular 5-day training program from Lean Kanban which will be available from 2 nd quarter 2015 Kanban is now table stakes. Large scale benefits are enabled by implementing Enterprise Services Planning Here are two small sections of the training material highlighting some planning & risk management concepts for scheduling & sequencing work at project or portfolio level …

36. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Lean Kanban Training Roadmap The Kanban Method (2 days) Intro to Kanban (1 day) ReadyTrained Getting Started with Kanban (2 days) Enterprise Services Planning (5 days) ReadyTrainedReadyTrainedReadyTrainingTrained Train the Trainer (5 days) Ready TrainedQualified Coaching Masterclass (5 days) Ready TrainedQualified KMP Kanban Proficiency

37. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc.

38. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc.

39. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Moving the conversation away from process improvement and towards management and decision frameworks conf.leankanban.com edu.leankanban.com leankanban.com “Power in Simplicity”

40. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Essence of the Lean Kanban brand Pragmatic, actionable evidence-based guidance! Something you can take away and implement next Monday

41. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. ESP Training Modules Module 1 Portfolio Management (Day 1 & 2)  Strategy, fitness for purpose, KPIs, Cost of Delay, Scheduling, Sequencing, Portfolio risk, risk hedging, risk profiling, aligning strategy & capability, strategy review Module 2 Options, Commitment & Delivery (Day 3)  Understanding kanban systems, real options, upstream Kanban, commitment & replenishment, lead time, chance vs assignable cause variation Module 3 Project & Demand Management (Day 4)  Demand analysis, demand shaping, capacity planning, project forecasting, risk review, labor pool liquidity, workflow liquidity Module 4 Portfolios, Programs & Dependencies (Day 5)  Scaling Kanban, dependencies, visualizing dependencies, portfolio Kanban, stand ups, service delivery reviews, ops reviews

42. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Beta test special offer Offer an ESP training module and get up to 50% off list price through end of April 2014 We are looking for a few select clients to test the new class material Ideal test clients are medium-sized, privately held firms or business units of larger publicly companies where the VP is the sponsor ESP class material is mostly tried and tested but not in its current configuration. Beta testing is primarily to check timing and understand whether the sequencing facilitates the desired learning outcomes To order an ESP training beta test, contact Wes Harris, Commercial Director of David J. Anderson & Associates, wes@djaa.com

43. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Scheduling

44. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. When should we start something? impact When we need it 85 th percentile Ideal Start Here Commitment point time Jan 10 Nov 11 If we start too early, we forgo the option and opportunity to do something else that may provide value. If we start too late we risk incurring the cost of delay If we pull the work into our kanban system on Nov 11 we have a 6 out of 7 chance of on-time delivery

45. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. We can study sensitivity to different start dates impact When we need it 50 th percentile Later Start Here Commitment point time Jan 10 Nov 25 If we start as late as November 25 we only have a 50% chance of on-time delivery However, the cost of delay incurred if we deliver within 60 days is relatively small. We have an 85% chance of achieving delivery with acceptable cost of delay 85 th percentile

46. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. What is the latest we could start? impact When we need it 0 th percentile Very late start Commitment point time Jan 10 Dec 19 If we start as late as December 19 we have 0% chance of on-time delivery We have about a 10% chance of a total loss delivering the promotion beyond the expiry date of the opportunity 85 th percentile total loss

47. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. To be certain of delivery without incurring any cost of delay is expensive impact When we need it 98 th percentile Early Start Commitment point time Jan 10 Aug 11 If we are conservative and do not wish to carry any risk of late delivery or any risk of incurring an opportunity cost of delay, then we must start as early as August 13 th. We must commit to our Spring Break 2015 promotion during Summer 2014!!!

48. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Window of opportunity impact When we need it Earliest Start time Jan 10 Aug 11 Latest viable start Dec 19 Optimal Start Nov 11 On August 11st the item becomes available for selection at Kanban system replenishment. The ideal time to start is November 11 th. After December 19 th our option to deliver this item expires and we would discard it from our pool.

49. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Lead time is perhaps the most important metric we gain from kanban systems Lead time coupled with cost of delay sensitivity analysis is a key enabler of deferred commitment and consensus on when to make commitments Lesson

50. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. We need tools!  Existing Kanban software products largely seek to replicate the function of a physical board  They don’t actually help with real management problems  Enterprise Services Planning is easy to understand but laborious to implement No one built a Gantt chart manually!  A new breed of tools will emerge in 2015 offering ESP support

51. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Tools will facilitate decision making  ESP software tools will facilitate the decision making to run the enterprise  Assist with commitment & replenishment  Assist with risk assessment & hedging  Assist with capacity planning  Facilitate SDRs & Ops Reviews

52. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Enterprise Services Planning “The Future of Kanban”  “Fit for Purpose” service delivery Fitness criteria metrics & classes of service tuned to market segments / source of customer demand  Anticipate Demand Comprehend WIP limits, staffing levels and required liquidity levels  Shape Demand Allocate capacity to hedge risk Bifurcate demand with risk policies  Scheduling, Sequencing & Selection Intelligent recommendation engine utilizing risk profiles & risk management policies

53. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Kanban experience reports Ultimate Software BazaarVoice web recommendations app and mobile development Including…

54. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Kanban Coaching Professional Masterclass 5-day course with David J Anderson March 2-6, 2015 www.djaa.com/kcpm-031www.djaa.com/kcpm-031 Hilton Alexandria Mark Center Learn how to lead successful Kanban initiatives. Improve service delivery and achieve better customer satisfaction Coaching for evolutionary change Assuring fitness for purpose Using the Kanban Method Designing a service-oriented organization Learn useful improvement models and all of our consulting tools For internal coaches, managers, and consultants

55. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. Thank you!

56. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc. About David Anderson is an innovator in management of 21 st Century businesses that employ creative people who “think for a living”. He leads a training, consulting, publishing and event planning business dedicated to developing, promoting and implementing new management thinking & methods… He has 30+ years experience in the high technology industry starting with computer games in the early 1980’s. He has led software organizations delivering superior productivity and quality using innovative methods at large companies such as Sprint and Motorola. David defined Enterprise Services Planning and originated Kanban Method an adaptive approach to improved service delivery. His latest book, published in June 2012, is, Lessons in Agile Management – On the Road to Kanban. David is Chairman of Lean Kanban Inc., a business operating globally, dedicated to providing quality training & events to bring Kanban and Enterprise Services Planning to businesses who employ those who must “think for a living.”

57. sales@leankanban.com @leankanbanu Copyright Lean Kanban Inc.

58. Q&A  Please ask a question using the Q&A Box on the right side of your screens.  Host will ask questions in the sequence in which question is received.  Thank you for your help and cooperation!!

59. Thank You! David J AndersonDigité/ SwiftKanban dja@djaa.comsales@digite.com @dja_djaa@swiftkanban www.swiftkanban.com Janice Linden-Reed janice@djaa.comjanice@djaa.comMahesh Singh mahesh@digite.com Wes Harris@maheshsingh wes@djaa.com www.leankanban.com