LKCE16 - Kanban @PingAn by Adam Wu
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Transcript of LKCE16 - Kanban @PingAn by Adam Wu
![Page 2: LKCE16 - Kanban @PingAn by Adam Wu](https://reader031.fdocument.pub/reader031/viewer/2022030304/58789b121a28ab42588b4713/html5/thumbnails/2.jpg)
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
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Our journey started from
an UNHAPPY business department of
PingAn Property Insurance in April 2011
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Unhappy Business People
• Taobao Insurance can deliver a feature within 2 weeks
• However, we have to wait for 2 months
• WHY?!!
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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.
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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
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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?
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Kanban Training for Team Leaders
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Kanban Training for Internal Coaches
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Advanced Training for Managers
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Kanban Parade to Exchange Tips & Ideas
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Allow Each Kanban to be Different……
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Allow Each Kanban to be Different……
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Encourage Team to Evolve Kanban after Iteration (I/III/V)
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Encourage Team to Evolve Kanban after Iteration (VI/VIII/XI)
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Using Kanban to ensure more
RELIABILITY and ADAPTIVITY of
different project delivery since 2012
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Using Kanban to Avoid Scarcity Mood
• Relieve people from overburden and multi-tasking
• Stop starting, start finishing
• Limit WIP
• Defer commitment
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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? “
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Test 1: Cognitive Capacity
• Raven’s matrices
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Test 2: Executive Control
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Easy Mode: Repair will Cost $150
• Not much concern caused for either rich or poor people
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Hard Mode: Repair will Cost $1500
• Much more concern is caused for the poor, but not the rich.
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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.”
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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
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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
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Using Kanban with business people
to manage product VARIABILITY
since 2014
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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
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But, Variability Cannot Never Be Eliminated
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How to Solve the Issue?
Leading the Variability into Areas with Lower Cost
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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
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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
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Managing Variability via Managing Feature List or Feature Details
Feature
Schedule
Budget
Details
Quality
Quality
Schedule
Feature Budget
Quality
Schedule
Feature Budget
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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
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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
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3-day Quick Start to Kick Off the Project
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More than 350 User Stories
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Brief Iteration Plan for next 3 Months
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Using Kanban to manage
END-2-END value stream since 2015
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Training for Business Managers
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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
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Using CEO Level Kanban for
company portfolio management in 2016
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Mapping the Company Value Stream
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CEO Level Kanban (PingAn Fintech)
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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
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Software Dev is Heterogenous by Nature
• Different CoD (Cost of Delay)
• Different Size
• Different Complexity
• Different Staff Capability
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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”.