discovery kanban
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© Patrick Steyaert, 2016 1
Discovery KANBANEmail: patrick.steyaert@okaloa.com
Twitter: @PatrickSteyaert@DiscoveryKanban@Okaloa
website: www.okaloa.comwww.discovery-kanban.com
Dublin, May 2016
© Patrick Steyaert, 2016 2
Patrick Steyaert, PhD
Background Academic turned entrepreneur turned coach/trainer/speaker
Applying Kanban in the core and at the edges
Creator of Discovery Kanban (incl. Upstream Kanban), Kanban systems for change, The Kanban Experience
Brickell Key Award Winner 2015
© Patrick Steyaert, 2016 3
The system of InnovationAnalysis and synthesis
Picture: http://s117.photobucket.com/The image of a snowmobile was often used by John Boyd to illustrate the role of analysis and synthesis in innovation
© Patrick Steyaert, 2016 4
Innovation Kata
WORK = INNOVATION
Everybody innovates all timethe
© Patrick Steyaert, 2016 5
Accommodating both exploitation and exploration
Dealing with dualityExploitation
Hierarchy
Risk avoidance
Planning
Central decisions
Exploitation
Risk taking
Self-organization
Experimentation
Local decisions
© Patrick Steyaert, 2016 6
Sustainability
“There are many challenges for innovation
labs not only to survive but to yield new
business ideas that truly matter to the
parent company.”– Neo
“The word innovation has become virtually meaningless. “– Brant Cooper
“At best, most of these innovation labs will
produce only tweaks to today’s business
models.” – Saul Kaplan
© Patrick Steyaert, 2016 7
Understanding innovationFitness landscapes
Fitness
Search space
© Patrick Steyaert, 2016 8
flowUnderstanding innovation
inbound
InventoryEnsure an even flow from start to end!
outbound
Options
Commitments
© Patrick Steyaert, 2016 9
changeUnderstanding innovation
Reflective observation
Active experimentation
ORIENT
DECIDEACTOBSERVE
Implicit guidance
DOCHECK
ADJUST
PLAN
Feedback
Unfolding events
Model
© Patrick Steyaert, 2016 10
Understanding innovationdirection
Pragmatic leadershipBeing comfortable with the
uncomfortable
© Patrick Steyaert, 2016 11
Understanding innovationModern agility IN THE CONTEXT OF innovation
Disruptive innovation
Technology innovation
Efficiency innovation
Sustaining innovation
© Patrick Steyaert, 2016 12
Henry ford
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Mount fuji landscapeEFFICIENCY INNOVATION in a
commodities market
Economies of scale
Value entitlement
Fitness
© Patrick Steyaert, 2016 14
Flow productionDeliver the highest possible quality at the lowest possible cost
Flow production based on division of labor, interchangeable parts and standard work
Planned change – thinking largely separated from doing
Cost/Benefit, Return on investment (ROI)
© Patrick Steyaert, 2016 15
flow production
inbound
Inventory
Production and shipment of finished goods
Reception and storage of incoming parts
Materials planning, standard work and division of labor
outbound
Options
Commitments
© Patrick Steyaert, 2016 16
Toyota
© Patrick Steyaert, 2016 17
Rugged landscapeSUSTAINING INNOVATION IN A
Segmented marketFitness
Category power
Company power
© Patrick Steyaert, 2016 18
continuous flowDeliver what the customer wants when the customer wants it
Continuous flow integrating people in teams and integrating value adding steps in value streams
A cultivated habit of change based on active experimentation (PDCA)
True north – e.g. one-piece flow, zero defects
© Patrick Steyaert, 2016 19
From push to pullContinuous flow
inbound
Inventory
Production and shipment against orders
JIT reception and storage of incoming parts
Kanban, work cells, takt-time in value streams
outbound
Options
Commitments
© Patrick Steyaert, 2016 20
Cultivated habit of changeActive experimentation
do
check
adjust
plan
We believe that<doing
this>Will achieve
<this outcome>
Hypothesis
Experiment
Results
LearningModel
© Patrick Steyaert, 2016 21
digital
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Paradigm shift
New (d
igital)
para
digm
Old (analog) paradigm
VolatilityUncertaintyComplexityAmbiguity
Disruptive innovation
© Patrick Steyaert, 2016 23
Evolutionary methods
© Patrick Steyaert, 2016 24
Kanban systemsManaging flow in knowledge work
upstream inventory downstreamsuggestionSynthesisanalysis Ready
to commi
t
ready elaborate
Build Test
Synthesizing features and analyzing into
user stories(options)
5 4 65>7 >5 >3
Developing and delivering user
stories (commitments)
Done
Com
mitm
ent p
oint
User storyFeature
FeatureDefect
User story
User storyFeatureidea
© Patrick Steyaert, 2016 25
End-to-end flow
inbound
Inventory
Developing and delivering user stories
Synthesizing features and analyzing into user stories
Visualize, Limit WIP, Measure, Feedback, Improve
outbound
Options
Commitments
© Patrick Steyaert, 2016 26
The Kanban MethodEvolutionary change
Start where you are now
STEP #1
Implement a safe-to-fail
change
STEP #2
Evaluate fitness against
fitness-for-purpose criteria
if positive reinforce if negative roll back
STEP #3
© Patrick Steyaert, 2016 27
Lean startupcreate new products or services under conditions
of extreme uncertaintyIdeas
Build
Product
Measure
Data
Learn
© Patrick Steyaert, 2016 28
Kanban systems for Learning
Hypothesis
Build-measure-learnStart Build meas
ureLear
nHypothesis
AbandonMVP
Hypothesis
Learning (PDCA)Plan Do Che
ckAdju
st5 4 65
HypothesisViability
FeasibilityDesirability Abandon
Experiments
© Patrick Steyaert, 2016 29
tractionA form of flow
inbound
Inventory Activation into paying customers
Acquisition of unaware users
Identify constraints to traction
outbound
Options
Commitments
Ref. Scaling Lean, Ash Maurya
© Patrick Steyaert, 2016 30
Small changes accumulate into *big*
outcomes
Exponential organizations
success
Expected pain
Expected gain
Traditional
Exponential
© Patrick Steyaert, 2016 31
Dancing LandscapeExponential innovation
© Patrick Steyaert, 2016 32
Dealing with unfolding eventsThe OODA loop
orient
decide
act
observe
Unfolding events
Implicit guidance
Implicit
guidance
Intuitive Rational
© Patrick Steyaert, 2016 33
Thriving on change
Rebounding from change
Responding to change
Anticipating change
Thriving on change
“The entrepreneur always searches
for change, responds to it, and
exploits it as an opportunity.”― Peter F. Drucker
© Patrick Steyaert, 2016 34
Integrating innovation(s)
Intersecting unmet needs with emergent possibilities
Disruptive innovationTechnology
innovation
Efficiency innovation
Sustaining innovation
© Patrick Steyaert, 2016 35
Managing uncertainty
Desirability
Viability
Feasibility
© Patrick Steyaert, 2016 36
Building on Dualities
Unaware users
Paying customers Requirements Products
Exploration Exploitation
Ideas
Change
Delivery
Measure
Data
Learn
Ideas
Build
Product
Measure
Data
Learn
Flow
change
Flow
change
© Patrick Steyaert, 2016 37
End-to-end flow
inbound
InventoryEnsure an even flow from start to end!
outbound
Options
Commitments
Delivering user storiesActivation to paying customers
Capturing opportunities
Creating user storiesAcquisition of unaware users
Creation of opportunities
© Patrick Steyaert, 2016 38
Kanban systems for doingManaging flow
INBOUND inventory OUTBOUNDsuggestionState A State B Ready
to commi
t
ready State C State D
State F
Options
5 4 65>7 >5 >3
Commitment
Done
Com
mitm
ent p
oint
© Patrick Steyaert, 2016 39
Double loop learning
Reflective observation
Active experimentation
ORIENT
DECIDEACTOBSERVE
Implicit guidance
DOCHECK
ADJUST
PLAN
Feedback
Unfolding events
Model
ViabilityFeasibility
Desirability
© Patrick Steyaert, 2016 40
Kanban systems for learningReflective observation + Active experimentation
Decision making (OODA)
Hypothesis Learning (PDCA)ObserveOrient
Abandon
Decide
Ready to Act
Plan Do Check
Adjust
Observations
5 4 65>5 >6 >3>8
HypothesisViability
FeasibilityDesirability AbandonExperiments
© Patrick Steyaert, 2016 41
It starts with a downstream Kanban
downstreamready Elaborate Develo
pTest
5 4 65
User stories, defects, …
Done
© Patrick Steyaert, 2016 42
ADDING upstream
upstream inventory downstreamsuggestionSynthesisAnalysis Ready
to commi
t
ready Elab Dev Test
Features
5 4 65>7 >5 >3
User stories, defects, …
Done
Com
mitm
ent p
oint
© Patrick Steyaert, 2016 43
Adding Experiments to improve
upstream inventory downstreamideas Synthesisanalysis Ready
to commi
t
ready elaborate
Build Test5 4 65>7 >5 >38
Hypothesis Learning (PDCA)Plan Do Chec
kAdjust
5 4 65Experiments to
improve
User stories
Done
© Patrick Steyaert, 2016 44
Adding observationDecision making
(OODA)Hypothe
sisLearning (PDCA)
ObserveOrient Decide
Ready to Act
Plan Do Check
Adjust5 4 65>5 >6>8
Experiments to improve
upstream inventory downstreamideas Synthesisanalysis Ready
to commi
t
ready elaborate
Build Validate5 4 65>7 >5 >38
User stories
obstacles
© Patrick Steyaert, 2016 45
REPLACING REQUIREMENTS WITH HYPOTHESES
upstream inventory downstreamideas Synthesisanalysis Ready
to commi
t
ready
elaborate
Build Validate
Decision making (OODA)
Hypothesis
Learning (PDCA)ObserveOrient Deci
deReady to
ActPlan Do Chec
kAdjust
MVPASSUMPTIONSHYPOTHESISBREAKD
OWNReady to TRY
ready BUILD MEASURE
LEARN5 4 65>7 >5 >38
MVP
© Patrick Steyaert, 2016 46
Moving into a portfolio level
46
Learn
Grow
Executeopportunities commitments
market observations
market experiments
ugly ducklings and invisible gorilla's
© Patrick Steyaert, 2016 47
Discovery Kanban
Kanban systems for innovation and
change
Innovate your system of innovation with discovery kanban
Build on duality between exploration and exploitation
dancing landscape better represents current situation than VUCA
Understand Flow, change, direction
© Patrick Steyaert, 2016 48
Thank youStay in touch!
@PatrickSteyaert patrick.steyaert@okaloa.com
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