DrillingInfo Evolutionary approach to change Jay Paulson May 16, 2016

Myself 15+ years as a software engineer 5+ years implementing Kanban Trained as a Kanban Coach in September of 2014 DrillingInfo in November 2014 LinkedIn Lean Kanban North America 2016 Speaker

DrillingInfo Company Profile Oil & Gas Industry Founded in 1999 Privately held ~$100 million per/year ~500 Employees ~40 Software Engineers Austin Denver Costa Rica Ukraine India California Rally JIRA Physical Boards twitter

Appropriateness Lower maturity organizations Impatient Panic under stress Low trust Poor risk management Lack of alignment between vision, strategy & action Lack of alignment between strategy & capability Superstitious behavior Revolutionary not Evolutionary When is it not appropriate to Kanban? Evolutionary - Humbled Revolutionary - Arrogant, grand gestures, great victory, hero! twitter

Principles of Kanban Flow like water around the rocks of resistance. 1.Start with what you do now. 2.Agree to pursue evolutionary change. 3.Initially, respect current processes, roles, responsibilities, and job titles. 4.Encourage acts of leadership at every level in your organization from individual contributor to senior management. Photo by Dale Ellerm twitter

Where did I start? ●Trained team with getKanban board game ●Facilitated Platform’s team Kanban board creation using STATIK ●Created physical board ●Continued to use DI’s electronic tool, Rally ●Started to track additional 3 metrics ○Lead Time ○Delivery Rate ○Work In Progress (WIP) twitter

Value Stream Verify in Prod Ideas Robert Demo Acceptance Impl Grooming Release Commitment point System Lead Time Customer Lead Time Options Development twitter

Physical Board - Options Development Minimum Maximum WIP Limits twitter

Physical Board - Committed Work twitter

Rally Board twitter

Metrics ●Captured 2 ways ○Manually in Google Sheets ○In Rally then exported 3 Basic Charts ●Histogram ●Lead Time Run Chart ●Cumulative Flow Diagram (CFD) LeanSheets.org twitter

LeanSheets - Cumulative Flow Diagram Work in progress on specific date twitter

LeanSheets - Lead Time Run Chart Average Lead Time 8 business days +/- 7 business days Outliers removed average Lead Time 7 business days +/- 4 business days twitter

LeanSheets - Histogram 84% probability of completing work in 14 business days or less. twitter

Metrics - Little’s Law ●A key result from queuing theory that relates a process’s arrival rate (for which we use delivery rate as its proxy), lead time, and work-in-progress ●The Kanban variant of Little's Law states: The mean delivery rate of work items leaving the kanban system, is equal to the number of work items in the system (the WIP limit) divided by the mean lead time through the system Delivery Rate WIP Lead Time twitter

Executive Capacity Forecast Teams Primary Projects 4 Week Forecast Dec.1 st – Dec.31 st 4 Week Capacity Forecast Dec.1 st – Dec. 31 st 4 Week Capacity Forecast Dec.1 - Dec.31st P.90P.65P.50Actual Q “Commit” 4Q 2015 “Stretch Plan” Q “Best Case” Mos EsileyOFS Workspace GIS GeoData Services Entitlements Platform Austin / UK OFS Workspace Sentinels (Coextrix) DI Direct Access (was managed API) DB Tech 14 Digit API Well Master UX/UI Production Workspace CM Totals twitter

Getting Better Introduced ●Scheduling & Sequencing work ●Managing risk by Cost of Delay ●Capacity forecasting ●Classes of Service ●Fit for purpose metrics ●Capacity allocation twitter

Feedback twitter

Daily Standup ●Team creates agenda ●Place for feedback to occur for improvements ●Customer focus twitter

Replenishment / Commitment Meeting ●Typically a part of Planning Session ●Can be on demand ●Evolve based on team and customer feedback twitter

Delivery Planning Meeting ●Weekly ●Evolving to Continuous Deployment twitter

Risk Review ●Blocker and Defect clustering ●Review hidden risk ●Mitigation strategies ●Review current WIP and Options twitter

Strategy Review ●Current Markets ●Review metrics (lead time, quality, capacity) ●Capabilities ●Alignment of strategy and capability ●Understand Risk twitter

Service Delivery Review ●Discussion about system capability ●Review system metrics ●Discuss customer feedback ●Discuss system design changes twitter

Operations Review ●Team focused around done work, strategy, future work, and metrics ○Histograms ○Run Charts ○System balance ○Blocker clustering twitter

Operations Review “I also am very pleased by the recent Operational Review meeting. The presentation by the groups was concise, had good KPIs showing where they stood and resulted in meaningful discussion and action items that actually make a difference in how we get our work done. I was really impressed by how the teams worked together to help each other.” -- Mike Couvillion, CTO, DrillingInfo, Inc December 22, 2015 twitter

Implementing on 1 team lead to... ●15 teams gathering metrics ●6 teams attending Operations Review ●3 teams with deep implementation (3-6+ months) ●Delivery Rate increased 135% - 225% ●Monthly Corporate training class with getKanban game ●Tracking arrivals, discards, and blockers ●CTO reporting engineering team’s capacity forecast to executive leadership team ●CTO ability to get average cost per card per team ●Dependency tracking with Red, Yellow, and Green status depending on individual team’s confidence level Lead Time metric twitter

Demand Observed Capability Demand Observed Capability Kanban at scale twitter

Kanban - Theory of Constraints twitter

Kanban twitter