1 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 DrillingInfo Evolutionary approach to change Jay Paulson March 23, 2016

2 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 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

3 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 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

4 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 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!

5 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 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

6 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 Where did I start? ●Trained team with getKanban board game ●Facilitated Platform’s team Kanban board creation ●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)

7 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 Value Stream Verify in Prod Ideas Robert Demo Acceptance Impl Grooming Release Commitment point System Lead Time Customer Lead Time Options Development

8 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 Physical Board - Options Development

9 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 Physical Board - Committed Work

10 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 Rally Board

11 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 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

12 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 LeanSheets - Cumulative Flow Diagram Work in progress on specific date

13 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 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

14 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 LeanSheets - Histogram 84% probability of completing work in 14 business days or less.

15 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 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

16 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 Getting Better Introduced ●Scheduling & Sequencing work ●Managing risk by Cost of Delay ●Capacity forecasting ●Classes of Service ●Fit for purpose metrics ●Capacity allocation

17 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 Feedback

18 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 Daily Standup ●Team creates agenda ●Place for feedback to occur for improvements ●Customer focus

19 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 Replenishment / Commitment Meeting ●Typically a part of Planning Session ●Can be on demand ●Evolve based on team and customer feedback

20 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 Delivery Planning Meeting ●Weekly ●Evolving to Continuous Deployment

21 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 Risk Review ●Blocker and Defect clustering ●Review hidden risk ●Mitigation strategies ●Review current WIP and Options

22 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 Strategy Review ●Current Markets ●Review metrics (lead time, quality, capacity) ●Capabilities ●Alignment of strategy and capability ●Understand Risk

23 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 Service Delivery Review ●Discussion about system capability ●Review system metrics ●Discuss customer feedback ●Discuss system design changes

24 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 Operations Review ●Team focused around done work, strategy, future work, and metrics ○Histograms ○Run Charts ○System balance ○Blocker clustering

25 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 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

26 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 Implementing on 1 team lead to... ●12 teams gathering metrics ●6 teams attending Operations Review ●3 teams with deep implementation (3-6+ months) ●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

27 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 Demand Observed Capability Demand Observed Capability Kanban at scale

28 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 Kanban - Theory of Constraints

29 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 Kanban

30 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series Ashish Shanker

31 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 Synerzip in a Nutshell  Software product development partner for small/mid-sized technology companies Exclusive focus on small/mid-sized technology companies, typically venture- backed companies in growth phase By definition, all Synerzip work is the IP of its respective clients Deep experience in full SDLC – design, dev, QA/testing, deployment  Dedicated team of high caliber software professionals for each client Seamlessly extends client’s local team offering full transparency Stable teams with very low turn-over NOT just “staff augmentation, but provide full management support  Actually reduces risk of development/delivery Experienced team – uses appropriate level of engineering discipline Practices Agile development – responsive yet disciplined  Reduces cost – dual-site team, 50% cost advantage  Offers long-term flexibility – allows (facilitates) taking offshore team captive – aka “BOT” option

32 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 Synerzip Clients

33 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 Next Webinar Collaborate with Non- Collaborators Complimentary Webinar: Tuesday, April 26, Noon CST Presented by: Pollyanna Pixton Author and Principal, Accelinnova

34 Copyright © 2016, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. Webinar Series 2016 Ashish Shanker Connect with linkedin.com/company/synerzip facebook.com/Synerzip