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[email protected] @lkuceo Presenter: David J. Anderson CEO Lean Kanban Inc. Lean Kanban Netherlands Utrecht October 2013 Release 1.0 What does modern mean and what is enabling new ways of managing in a new century Why Modern? Why now?

Modern Management Methods Netherlands 2013 Opening Remarks - Why Modern, Why Now?

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"Modern" has a meaning in liberal arts. It means that a discontinuous innovation causes the form of the medium to change. The Modern Management Methods conferences hope to highlight new methods of management that represent a new form of the art. These new methods are enabled by new technology from the humble Post-It Note to sophisticated software solutions

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Page 1: Modern Management Methods Netherlands 2013 Opening Remarks - Why Modern, Why Now?

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Presenter:David J. Anderson

CEO Lean Kanban Inc.

Lean Kanban Netherlands

UtrechtOctober 2013

Release 1.0

What does modern

mean and what is enabling new

ways of managing in a

new century

Why Modern?Why now?

Page 2: Modern Management Methods Netherlands 2013 Opening Remarks - Why Modern, Why Now?

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Modern in Music

Page 3: Modern Management Methods Netherlands 2013 Opening Remarks - Why Modern, Why Now?

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Not Modern!

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Modern

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Modern enters mainstream

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Modern isn’t new forever

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Modern in Art

Page 8: Modern Management Methods Netherlands 2013 Opening Remarks - Why Modern, Why Now?

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Photography

The arrival of photography heralded an end to several hundred years of representational painting

Photography was a discontinuous innovation

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Impressionism – a new beginning

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Modern in Science

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Newtonian physics was out and the era of Quantum Mechanics arrived

Werner Heisenberg

JamesClerk-Maxwell

Albert Einstein

Niels Bohr

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The Drucker Challenge

Page 13: Modern Management Methods Netherlands 2013 Opening Remarks - Why Modern, Why Now?

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Drucker’s Challenge in 1999

Can we improve the productivity of knowledge workers by a factor of fifty times during the twenty first century?

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Where is that 50x improvement going to come from?

Done

Poolof

Ideas

F

H E

C A

I

Engin-eeringReady

Deploy-mentReady

GD

GYPB

DEMN

2 ∞

P1

AB

Lead Time

Ongoing

Development Testing

Done VerificationAcceptance3 3Flow efficiency measures the

percentage of total lead time is spent actually adding value (or

knowledge) versus waiting

Waiting Waiting WaitingWorking

Flow efficiency% = Work Time x 100%

Lead TimeFlow efficiencies of 1-5% are

commonly reported*, **

* Hakan Forss, Lean Kanban France, Oct 2013** 2% reported by Zsolt Fabok, Lean Kanban France, Oct 2012

Multitasking means time spent in working columns is often waiting

time

Working

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Modern Management

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We stand on the verge of a revolution in modern management

New science, new thinking and new technology is enabling us to implement new ways of managing creative work for the businesses of the 21st Century

Page 17: Modern Management Methods Netherlands 2013 Opening Remarks - Why Modern, Why Now?

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Breakthroughs in Understanding humans

The big innovation has been the emergence of neuroscience in the past 25 yearsWhile significant advances in sociology have given us models for understanding tribal behavior in the workplaceAdvances in complexity science have given us ways to understand and react to situations where the outcome is emergent and the starting conditions matter.

Page 18: Modern Management Methods Netherlands 2013 Opening Remarks - Why Modern, Why Now?

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The Quantum Era of Management

Management has been rooted in the philosophy of determinism and reductionism. It's 18th Century in origin. Recent trends have seen us move to a more holistic systems thinking approach, and a probabilistic and statistical approach to risk and decision making.

Page 19: Modern Management Methods Netherlands 2013 Opening Remarks - Why Modern, Why Now?

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New technologies enable a new form

New technologies such as the humble Post-It note as well as software, flat panel displays, ubiquitous broadband Internet available globally, web cams, and video over IP are just some of the technologies enabling us to embrace a new form of management

Page 20: Modern Management Methods Netherlands 2013 Opening Remarks - Why Modern, Why Now?

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Social Capital Reaps Rewards

This new management involves understanding people - trusting them, empowering themBut it is an empowerment without loss of controlIt is autonomy without loss of governanceIt's humane without being anarchistic

Page 21: Modern Management Methods Netherlands 2013 Opening Remarks - Why Modern, Why Now?

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The System & Environment Matter

Modern management also recognizes that the system and the environment matterIndividual performance isn't enoughReductionism to the smallest unit - the worker - local optimization - make each worker produce as much as possible - isn't the answerThe complex system of which the worker is just a single part must be designed and managedUnderstanding and affecting the outcome from complex systems of work is the key to delivering on Drucker's challenge.Simply motivating people isn't enough!

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Modern Management Methods

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“Modern”can take years or decades to emerge

"Modern" is never new by the time you come to hear about it.The modern management methods at this week's conference have been around for perhaps a decade or moreIt is only now that they are consumable by a mainstream audience. Now that the infrastructure of literature, training materials and vendors providing tools, training and consulting services exist to make these modern management methods available to you

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Enjoy discovering Modern Management

For many this conference will be eye opening - the beginning of a new approach to managing a 21st C businessFor those giving their time to present this new material, it's been a journey of years or decades to get to this point. Years of pioneering, bucking the trends, ignoring the naysayers, and shrugging off the social isolation of being the mad man doing weird stuff in a cornerIt’s not new! It’s tried, tested and proven by pioneers

Page 25: Modern Management Methods Netherlands 2013 Opening Remarks - Why Modern, Why Now?

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Thank you!

Page 26: Modern Management Methods Netherlands 2013 Opening Remarks - Why Modern, Why Now?

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David Anderson is a thought leader in managing creative knowledge workers. He leads a consulting, training, publishing and event planning business dedicated to developing, promoting and implementing sustainable evolutionary approaches for management in 21st Century industries.He has 30 years experience in the high technology industry starting with computer games in the early 1980’s. He has led software teams delivering superior productivity and quality using innovative methods at large companies such as Sprint and Motorola.

David is the pioneer of the Kanban Method an evolutionary approach to change and improved service delivery & business agility. His latest book is, Lessons in Agile Management – On the Road to Kanban.

David is a founder of the Lean Kanban University, a trade association dedicated to assuring quality Kanban training through a worldwide network of accredited trainers and defined, peer reviewed curriculum.

About

Page 27: Modern Management Methods Netherlands 2013 Opening Remarks - Why Modern, Why Now?

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The idea of Modern Management Methods was inspired by History of Modern Part 2 by Orchestral Maneuvers in the Dark.

Daniel S. Vacanti first suggested that the Kanban Method and related techniques of probabilistic forecasting, statistical methods, and both qualitative and quantitative risk management were creating a change in management methods of the same magnitude and of a similar nature to the shift from Newtonian physics to Quantum Mechanics.

Janice Linden-Reed assisted with photo editing for this presentation

Acknowledgements

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