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BEATING UNCERTAINTY AND SCARCITY USING KANBAN Adam Wu [email protected]

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Page 1: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

BEATING UNCERTAINTY AND SCARCITY USING KANBAN

Adam Wu

[email protected]

Page 2: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

WE ARE LIVING IN AN UNCERTAIN WORLDl Being introduced first in 1927, by the German physicist Werner Heisenberg, it states that the more precisely the position of some particle is determined, the less precisely its momentum can be known, and vice versa.

由Jan Krieger,CC BY-SA 3.0,https://commons.wikimedia.org/w/index.php?curid=16084469由Gisling - 自己的作品,CC BY-SA 3.0,https://commons.wikimedia.org/w/index.php?curid=33152110

Page 3: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

AGE OF VUCAlVolatility

lUncertainty

lComplexity

lAmbiguity

https://hbr.org/2014/01/what-vuca-really-means-for-you

Page 4: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

REAL-LIFE EXAMPLES OF UNCERTAINTY l Many innovation fails, or success in unintended scenarios

l some features never used by any customers

l feature details need to negotiated and adjusted during development process

l estimation can never been accurate

l defects can not be eliminated

l developer productivity varies a lot

Page 5: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

MANAGE VIA CERTAINTY WANT TO ELIMINATE UNCERTAINTY COMPLETELYl According to Don, 65% programmers want to eliminate uncertainty, probably an even higher percentage for managers

l Examples of traditional management thinking to achieve certainty:1. Manage Innovation by defining plan2. Manage plan deviations strictly3. Analyze dependencies precisely ahead of time4. Eliminate defects through more test stages and reviews

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1. MANAGE INNOVATION BY DEFINING GROWTH PLANl Define the KPI target for a new innovation

l Reverse engineer a quarterly plan to achieve the target

l Team will fulfil the short term target first, however miss the chance to achieve real disruptive innovation and potential growth

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2. MANAGE PLAN DEVIATIONS STRICTLYl Team has to leave buffer during estimation, this will lead to contract game, late delivery and parallel work

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3. ANALYZE DEPENDENCIES PRECISELY AHEAD OF TIMEl Try to analysis cross module dependencies and allocate resources carefully, and load resources to 100% utilization

l Changes will happen eventually, and this lead into an re-plan turmoil

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4. ELIMINATE DEFECTS THROUGH MORE TEST STAGES AND REVIEWSl Every defect will need to find the root cause and define a way of prevention, which will cause more test stages and reviews

l Not all test stages and reviews make sense economically

Page 10: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

CYNEFIN框架

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MANAGE VIA CERTAINTY WILL CAUSE CONGESTIONS

FF

FF FF F

UAT

H

E

C

Dev Ready

ReleaseReady

G

D

5∞

拉入

Doing

Dev Test

Done3 3

Test Ready

5 ∞

Customer lead time

Ideas Done∞

Waiting Waiting WaitingWorking Working WaitingWorking

Flow efficiency % = Work Time x 100%

Lead Time

Flow efficiencies of 1-5% are commonly reported. *, **

> 40% is good!

* Zsolt Fabok, Lean Agile Scotland, Sep 2012, Lean Kanban France, Oct 2012** Hakan Forss, Lean Kanban France, Oct 2013

l Congestion can be observed by monitoring flow efficiency

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CONGESTION WILL TRIGGER MULTI-TASKING AND TIME SCARCITYl A study of 10,000 programming sessions recorded from 86 programmers using Eclipse and Visual Studio:

l A programmer takes between 10-15 minutes to start editing code after resuming work from an interruption.

l A programmer is likely to get just one uninterrupted 2-hour session in a day

https://www.infoq.com/news/2013/01/Interruptions https://www.targetprocess.com/articles/speed-in-software-development/

Page 13: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

SCARCITY

Page 14: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

SCARCITY

l You feel that you need something more that what you own

l You can scare money, time, social relationship, etc

Page 15: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

FOCUS DIVIDEND

l The focus dividend— heightened productivity when facing a deadline—comes from our core mechanism: scarcity captures the mind.

l Experiments: Hire college student to spend 3 week to do research paper text auditingl Group A will submit 3 papers at the end of 3 weekl Group B will submit 1 paper per weekl The result is Group B will have high percentage of on-time rate, and also find more text errors

during auditing

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SCARCITY CAUSES US TO TUNNEL

l To focus single-mindedly on managing the scarcity at hand.

l The term tunneling is meant to evoke tunnel vision, the narrowing of the visual field in which objects inside the tunnel come into sharper focus while rendering us blind to everything peripheral, outside the tunnel.

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BANDWIDTH TAX

l Bandwidth measures our computational capacity, our ability to pay attention, to make good decisions, to stick with our plans, and to resist temptations.

l Bandwidth correlates with everything from intelligence and SAT performance to impulse control and success on diets.

l By constantly drawing us back into the tunnel, scarcity taxes our bandwidth and, as a result, inhibits our most fundamental capacities.

Page 18: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

JERSEY MALL TEST

l Pick some poor and rich people to attend the expirenment.

l Ask one question before the Raven’s Progressive Matrices test & The Executive Control Test:lImagine that your car has some trouble, which requires a $X service. Your auto insurance will cover half the cost. You need to decide whether to go ahead and get the car fixed, or take a chance and hope that it lasts for a while longer. How would you go about making such a decision? Financially, would it be an easy or a difficult decision for you to make?

Page 19: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

COGNITIVE CAPACITY

l A central feature of cognitive capacity is fluid intelligence. To test for the impact of scarcity on people’s cognitive capacity, we use the most prominent and universally accepted measure of fluid intelligence, the Raven’s Progressive Matrices test

Page 20: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

EXECUTIVE CONTROL.

l Executive control is multifaceted, so we begin by considering one of the many important functions to which it contributes, namely, self-control.

Page 21: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

EASY MODE

l The amount is 300$,No pressure to both poor and rich

Page 22: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

HARD MODE

l The amount is 3000$, cause scarcity for the poor

l By that measure our effects correspond to between 13 and 14 IQ points

Page 23: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

SCARCITY MINDSET

l Long term scarcity will form a scarcity mindset, and change your behavior and decision making

l Scarcity mindset includes:l Borrowingl Slack-envyl Present biasl Jugglingl Neglecting the futurel Fail to plan

Page 24: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

SCARCITY MINDSET

l Present Bias: We overvalue immediate benefits at the expense of future ones:

lSlack-envy: A standard impulse when there is a lot to do is to pack tightly— as tightly as possible, to fit everything in. And when you are not tightly packed, there’s a feeling that perhaps you are not doing enough.

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SCARCITY MINDSET

l Borrowing: Why do we borrow when we face situations of scarcity? We borrow because we tunnel. And when we borrow, we dig ourselves deeper in the future. Scarcity today creates more scarcity tomorrow.

Page 26: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

SCARCITY MINDSET

lJuggling: the constant move from one pressing task to the next. l Juggling is a logical consequence of tunneling.l When we tunnel, we “solve” problems locally

and temporarily. l We do what we can in the present, but this

creates new problems in the future.

Page 27: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

SCARCITY MINDSET

l Neglect the future: l Putting off an important but not urgent activity is

like borrowing. l You gain time today by not doing it. But you incur a

cost in the future: you will need to find time (possibly more time) to do it at some later point.

lFail to plan: lWhen we focus so intensely on making ends meet

now, we plan less effectively for the future.

Page 28: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

HOW KANBAN HELPS TO BEAT UNCERTAINLY AND SCARCITYl Visualize to sense and manage uncertainty

l Flow conditioning to control uncertainty

l Adaptive flow/plan management to fight uncertaintyl Resource managementl Class of servicel Adaptive dependency managementl Probabilistic forecasting and SLA

l Actively manage quality uncertainty

l Foster self managing team to manage uncertainty locally

Page 29: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

VISUALIZE UNCERTAINTY DURING KNOWLEDGE WORK COLLOBORATIONS

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VISUALIZE RESOURCE ALLOCATION UNCERTAINTY BETWEEN PORTFOLIOS

Page 31: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

HOW KANBAN HELPS TO BEAT UNCERTAINLY AND SCARCITYl Visualize to sense and manage uncertainty

l Flow conditioning to control uncertainty

l Adaptive flow/plan management to fight uncertaintyl Resource managementl Class of servicel Adaptive dependency managementl Probabilistic forecasting and SLA

l Actively manage quality uncertainty

l Foster self managing team to manage uncertainty locally

Page 32: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …
Page 33: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

ANOTHER EXAMPLE OF FLOW CONDITIONINGl Adding a round column make fire escaping faster

Page 34: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

HOW KANBAN HELPS TO BEAT UNCERTAINLY AND SCARCITYl Visualize to sense and manage uncertainty

l Flow conditioning to control uncertainty

l Adaptive flow/plan management to fight uncertaintyl Resource managementl Class of servicel Adaptive dependency managementl Probabilistic forecasting and SLA

l Actively manage quality uncertainty

l Foster self managing team to manage uncertainty locally

Page 35: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

HOW KANBAN HELPS TO BEAT UNCERTAINLY AND SCARCITYl Visualize to sense and manage uncertainty

l Flow conditioning to control uncertainty

l Adaptive flow/plan management to fight uncertaintyl Resource managementl Class of servicel Adaptive dependency managementl Probabilistic forecasting and SLA

l Actively manage quality uncertainty

l Foster self managing team to manage uncertainty locally

Page 36: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

ADPATIVE RESOURCE MANAGEMENT

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HOW KANBAN HELPS TO BEAT UNCERTAINLY AND SCARCITYl Visualize to sense and manage uncertainty

l Flow conditioning to control uncertainty

l Adaptive flow/plan management to fight uncertaintyl Resource managementl Class of servicel Adaptive dependency managementl Probabilistic forecasting and SLA

l Actively manage quality uncertainty

l Foster self managing team to manage uncertainty locally

Page 38: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …
Page 39: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

大量生产支持任务

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HOW KANBAN HELPS TO BEAT UNCERTAINLY AND SCARCITYl Visualize to sense and manage uncertainty

l Flow conditioning to control uncertainty

l Adaptive flow/plan management to fight uncertaintyl Resource managementl Class of servicel Adaptive dependency managementl Probabilistic forecasting and SLA

l Actively manage quality uncertainty

l Foster self managing team to manage uncertainty locally

Page 41: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

Copyright Lean Kanban [email protected] @lki_dja

Reservation systems

First reported by Sami Honkonen, “Scheduling Work in a Kanban” November 2011http://www.samihonkonen.com/wp-content/uploads/2011/11/scheduling-work-in-kanban.pdf

Page 42: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

Copyright Lean Kanban [email protected] @lki_dja

Dependency Management & Cost of Delay

Desired delivery date

Super-Linear Region

Class 2

Class 3Class 4

Class 2

Clas

s 5

Page 43: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

Copyright Lean Kanban [email protected] @lki_dja

Class 1 Dependency Management

Calling System

Called System

We Don’t Care!

No WIP limits

Dependency impact is built into customer lead time

distribution. We start early enough & cost of delay is low enough that we don’t need to explicitly manage the dependency

Page 44: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

Copyright Lean Kanban [email protected] @lki_dja

Class 5 Dependency Management

Calling System

Called System

“Guaranteed”

“Guaranteed” ClassBooking

Defn of Ready requires

confirmed “Guaranteed”

booking on called system

No margin for error!

We want 100% confidence in the

start time for customer lead

time and no risk on dependent

capacity availability

Page 45: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

HOW KANBAN HELPS TO BEAT UNCERTAINLY AND SCARCITYl Visualize to sense and manage uncertainty

l Flow conditioning to control uncertainty

l Adaptive flow/plan management to fight uncertaintyl Resource managementl Class of servicel Adaptive dependency managementl Probabilistic forecasting and SLA

l Actively manage quality uncertainty

l Foster self managing team to manage uncertainty locally

Page 46: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …
Page 47: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

Cha

nge

Req

uest

s

SLA60天

22 - 150天

85%On-time

15%Delay

信心指数

可预测性

FORECASTING LEADTIME

Page 48: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

HOW KANBAN HELPS TO BEAT UNCERTAINLY AND SCARCITYl Visualize to sense and manage uncertainty

l Flow conditioning to control uncertainty

l Adaptive flow/plan management to fight uncertaintyl Resource managementl Class of servicel Adaptive dependency managementl Probabilistic forecasting and SLA

l Actively manage quality uncertainty

l Foster self managing team to manage uncertainty locally

Page 49: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

QUALITY BUILD-IN DEV PROCESS

Spec By Example

Write User Stories

Split Stories into Task

Develop Self Test

Single System Integration

Test

SVT by Stories

Exploratory Test Ca

Production Launch

Page 50: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

开发自验-前端

Page 51: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

HOW KANBAN HELPS TO BEAT UNCERTAINLY AND SCARCITYl Visualize to sense and manage uncertainty

l Flow conditioning to control uncertainty

l Adaptive flow/plan management to fight uncertaintyl Resource managementl Class of servicel Adaptive dependency managementl Probabilistic forecasting and SLA

l Actively manage quality uncertainty

l Foster self managing team to manage uncertainty locally

Page 52: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …
Page 53: BEATING UNCERTAINTY AND Adam Wu SCARCITY USING …

HOW KANBAN HELPS TO BEAT UNCERTAINLY AND SCARCITYl Visualize to sense and manage uncertainty

l Flow conditioning to control uncertainty

l Adaptive flow/plan management to fight uncertaintyl Resource managementl Class of servicel Adaptive dependency managementl Probabilistic forecasting and SLA

l Actively manage quality uncertainty

l Foster self managing team to manage uncertainty locally

Scarcity

Manage via certainty:1. Manage Innovation by defining plan

2. Manage plan deviations strictly

3. Analyze dependencies precisely ahead of time

4. Eliminate defects through more test stages and reviews