discovery kanban

© Patrick Steyaert, 2016 1

Discovery KANBANEmail: [email protected]

Twitter: @PatrickSteyaert@DiscoveryKanban@Okaloa

website: www.okaloa.comwww.discovery-kanban.com

Dublin, May 2016


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


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


Innovation Kata

WORK = INNOVATION

Everybody innovates all timethe


Accommodating both exploitation and exploration

Dealing with dualityExploitation

Hierarchy

Risk avoidance

Planning

Central decisions

Exploitation

Risk taking

Self-organization

Experimentation

Local decisions


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


Understanding innovationFitness landscapes

Fitness

Search space


flowUnderstanding innovation

inbound

InventoryEnsure an even flow from start to end!

outbound

Options

Commitments


changeUnderstanding innovation

Reflective observation

Active experimentation

ORIENT

DECIDEACTOBSERVE

Implicit guidance

DOCHECK

ADJUST

PLAN

Feedback

Unfolding events

Model


Understanding innovationdirection

Pragmatic leadershipBeing comfortable with the

uncomfortable


Understanding innovationModern agility IN THE CONTEXT OF innovation

Disruptive innovation

Technology innovation

Efficiency innovation

Sustaining innovation


Henry ford


Mount fuji landscapeEFFICIENCY INNOVATION in a

commodities market

Economies of scale

Value entitlement

Fitness


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)


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


Toyota


Rugged landscapeSUSTAINING INNOVATION IN A

Segmented marketFitness

Category power

Company power


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


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


Cultivated habit of changeActive experimentation

do

check

adjust

plan

We believe that<doing

this>Will achieve

<this outcome>

Hypothesis

Experiment

Results

LearningModel


digital


Paradigm shift

New (d

igital)

para

digm

Old (analog) paradigm

VolatilityUncertaintyComplexityAmbiguity

Disruptive innovation


Evolutionary methods


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


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


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


Lean startupcreate new products or services under conditions

of extreme uncertaintyIdeas

Build

Product

Measure

Data

Learn


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


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


Small changes accumulate into *big*

outcomes

Exponential organizations

success

Expected pain

Expected gain

Traditional

Exponential


Dancing LandscapeExponential innovation


Dealing with unfolding eventsThe OODA loop

orient

decide

act

observe

Unfolding events

Implicit guidance

Implicit

guidance

Intuitive Rational


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


Integrating innovation(s)

Intersecting unmet needs with emergent possibilities

Disruptive innovationTechnology

innovation

Efficiency innovation

Sustaining innovation


Managing uncertainty

Desirability

Viability

Feasibility


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


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


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


Double loop learning

Reflective observation

Active experimentation

ORIENT

DECIDEACTOBSERVE

Implicit guidance

DOCHECK

ADJUST

PLAN

Feedback

Unfolding events

Model

ViabilityFeasibility

Desirability


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


It starts with a downstream Kanban

downstreamready Elaborate Develo

pTest

5 4 65

User stories, defects, …

Done


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


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


Adding observationDecision making

(OODA)Hypothe

sisLearning (PDCA)

ObserveOrient Decide

Ready to Act

Plan Do Check

Adjust5 4 65>5 >6>8

Experiments to improve


to commi

t

ready elaborate

Build Validate5 4 65>7 >5 >38

User stories

obstacles


REPLACING REQUIREMENTS WITH HYPOTHESES


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


Moving into a portfolio level

46

Learn

Grow

Executeopportunities commitments

market observations

market experiments

ugly ducklings and invisible gorilla's


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


Thank youStay in touch!

@PatrickSteyaert [email protected]

discovery kanban

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