lkce16 - kanban @pingan by adam wu
TRANSCRIPT
About PingAn Group
• Ranking 41st on the Global Fortune 500
• 2nd largest insurance group in China
• Biggest private owned company in China
• 1.2M employees in total
• More than 6000 IT staff
Our journey started from
an UNHAPPY business department of
PingAn Property Insurance in April 2011
Unhappy Business People
• Taobao Insurance can deliver a feature within 2 weeks
• However, we have to wait for 2 months
• WHY?!!
First Agile Experiment - A Radical Change
• The whole team, business & IT people, were moved in together, incl. PMs, developers, testers etc.
• The role of Business/Software Analyst was eliminated, therefore, the Product Manager can talk with developers directly.
• The team started to manage and merge code on their own, no more Configuration Managers exists, but the delivery turned out to be better and faster.
Here Comes Astonishing Business Result
• Sales volume via website grew 15 times by the end of 2011
• PingAn took over the leading position in the online market for car insurance
• All this happened within 8 months
4 5 6 7 8 9 10 11 12
2173 3063
8262
13092 13181
17870
27624
31365 32921
Happy ending of 1st experiment led to SCALING requirement on team level.
However, copy & paste wouldn’t work for all teams
considering their contextual difference.
What should we DO?
Kanban Training for Team Leaders
Kanban Training for Internal Coaches
Advanced Training for Managers
Kanban Parade to Exchange Tips & Ideas
Allow Each Kanban to be Different……
Allow Each Kanban to be Different……
Encourage Team to Evolve Kanban after Iteration (I/III/V)
Encourage Team to Evolve Kanban after Iteration (VI/VIII/XI)
Using Kanban to ensure more
RELIABILITY and ADAPTIVITY of
different project delivery since 2012
Using Kanban to Avoid Scarcity Mood
• Relieve people from overburden and multi-tasking
• Stop starting, start finishing
• Limit WIP
• Defer commitment
Why should We Avoid Scarcity Mood Choose rich and poor people randomly for the experiment. Before they taking 2 test, ask them the question below.
“Your car is having some trouble and requires $XX to be fixed. You can pay in full, take a loan, or take a chance and forego the service at the moment. How would you go about making the decision? “
Test 1: Cognitive Capacity
• Raven’s matrices
Test 2: Executive Control
Easy Mode: Repair will Cost $150
• Not much concern caused for either rich or poor people
Hard Mode: Repair will Cost $1500
• Much more concern is caused for the poor, but not the rich.
Concl.: Scarcity Occupies People’s Bandwidth • Focusing on scarcity is involuntary.
• It fills our mind and results in less bandwidth for everything else.
• Bandwidth – what our brain can do.
• It’s our “computational capacity, ability to pay attention, to make good decisions, to stick to our plans, and to resist temptations.”
Lead Time Shorten from 2 Months to 3 Weeks
PS: Sx is # for iteration (one iteration per week)
Each feature completed dev, test & UAT within 3 weeks
Kanban Enhanced Adaptivity Greatly
60% original features got deployed as planned 60%
40% features with low priority were abandoned
40%
40% features with high priority were added during delivery 40%
necessary technical tasks accomplished
Using Kanban with business people
to manage product VARIABILITY
since 2014
Typical Innovation Process for an Enterprise
Business leader presents idea
BA/SA turns idea into requirement
IT leader provides estimation
Quality
Schedule
Idea Budget
Quality
Schedule
Feature Budget
Quality
Schedule
Feature Budget
But, Variability Cannot Never Be Eliminated
How to Solve the Issue?
Leading the Variability into Areas with Lower Cost
Always Lack of Variability in Budget Area
• In most companies, experienced stuff is a scared resource. The success of new projects can hardly rely on support from using lots of experienced people.
• Adding new people to boost the size of the project team is not recommended, since it will always increase managing and collaboration cost.
Quality
Schedule
Feature Budget
Choosing Quality as Cheap Area is Not Wise
• People have got used to choose quality as the “low cost” area.
• But it won’t be easy to acknowledge this publicly.
• As a result, lots of projects are doomed to fail from the day they launched.
Quality
Schedule
Feature Budget
Managing Variability via Managing Feature List or Feature Details
Feature
Schedule
Budget
Details
Quality
Quality
Schedule
Feature Budget
Quality
Schedule
Feature Budget
What Should We Provide?
Business leader presents idea
BA/SA turns idea into requirement
IT leader provides estimation
Quality
Schedule
Idea Budget
Quality
Schedule
Feature Budget
Quality
Schedule
Feature Iteration
Plan Budget
Here Comes Astonishing Business Result
• Sales volume via website grew 15 times by the end of 2011
• PingAn took over the leading position in the online market for car insurance
• All this happened within 8 months
4 5 6 7 8 9 10 11 12
2173 3063
8262
13092 13181
17870
27624
31365 32921
3-day Quick Start to Kick Off the Project
More than 350 User Stories
Brief Iteration Plan for next 3 Months
Using Kanban to manage
END-2-END value stream since 2015
Training for Business Managers
End-2-End Lead Time Shorten from 140 days to 80 days (PingAn Bank)
140
93 106
84.4 80
0
20
40
60
80
100
120
140
160
2015.09-10 2015.11-12 2016.01-02 2016.03 2016.04
Using CEO Level Kanban for
company portfolio management in 2016
Mapping the Company Value Stream
CEO Level Kanban (PingAn Fintech)
Kanban Adoption Journey of PingAn
• Our journey started from an UNHAPPY business department of PingAn Property Insurance in April 2011
• 1st experiment achieved astonishing business result, with car insurance online sales volume GROWING by 15 TIMES within 8 months
• Team level Kanban adoption started - “SCALING BY PULL”
• Ensuring more RELIABILITY and ADAPTIVITY of different project delivery since 2012
• Managing product VARIABILITY together with business people since 2014
• Managing END-2-END value stream since 2015
• CEO Level Kanban established for portfolio management in 2016
Software Dev is Heterogenous by Nature
• Different CoD (Cost of Delay)
• Different Size
• Different Complexity
• Different Staff Capability
On the Way along, We Noticed…… • Traditionally, we use a homogeneous process to manage tasks and people
• What is needed, however, is a heterogeneous ecosystem for the complex environment
• Kanban plays a significant role in the evolvement of this ecosystem, from a homogeneous status into a heterogeneous model safely
• Starting with visualization of the working process, the difference emerges gradually, such as value stream, class of service, replenishment / pull policy, definition of done, SLA etc.
• As we explore into it, more benefits achieved on business level and cultural level. Finally, the whole organization peacefully reached its “harmonious way of surviving and evolving”.
