Why Kanban makes a difference for managers

Constant change has become the norm for companies and presents managers with completely new challenges. A key question is how companies can organize themselves in such a way that they can react quickly to new requirements without losing efficiency.

One possible lever here is Kanban. But what difference can the use of Kanban make to corporate management?

–

What does flow mean in everyday use?

"Flow" describes a state in which work is uninterrupted and runs smoothly. This term is used in many areas. In everyday life, we experience flow when we are completely absorbed in a task, such as at work, during sports or hobbies. In this state, we often feel particularly productive because the effort and the result are perfectly balanced.

Lean and Kanban: efficiency through continuous improvement

In the business world, the term "flow" has a more specific meaning, especially in the context of Lean and Kanban.

Lean management, which originally comes from automotive production, attempts to reduce waste, i.e. to eliminate non-value-adding process steps. - Be it unnecessary waiting times, superfluous work steps or overfilled warehouses. Kanban, a lean management method, visualizes the work flow and thus helps to identify bottlenecks, among other things. This transparency facilitates continuous process improvement, for example by limiting work in progress (WIP). These so-called "WIP limits" prevent Kanban from starting too many tasks at the same time. This directly promotes a focus on the activities that are currently being actively worked on. - This in turn means that this work flows through the system faster, i.e. it is completed more quickly. Both Lean and Kanban help to design work processes in such a way that the value stream from idea to delivery functions as smoothly as possible and continuous improvement is supported.

Value stream and value chain: a brief overview

A value stream comprises all the steps required to bring a product or service from idea to delivery. This is similar to the value chain, which describes the sequence of activities through which a company creates value. Both concepts emphasize the importance of improving the flow from start to finish to maximize efficiency and value for the customer. By looking at the entire process, local optimizations are avoided and the overall delivery capability of the company is improved.

Concepts and measurements from series production

In production, methods have been developed to measure and improve flow. Concepts such as throughput, cycle time and WIP (work in progress) are important for understanding the efficiency of production processes. These concepts can also be applied to knowledge work. However, some adjustments are necessary here as the work is less predictable and often more complex.

Perfect flow: reality or wishful thinking?

"Perfect flow" means that work moves smoothly from one phase to the next, without delays or interruptions. In mass production, this is achievable because the processes are standardized and repeatable. In knowledge work, as in Book "Project Phoenix" perfect flow is more difficult to achieve because creative and intellectual tasks often contain unpredictable elements. Nevertheless, managers can achieve great improvements by applying lean and Kanban principles.

Kanban as the key to corporate coordination

Kanban offers a flexible and visual method for coordinating flow at all levels of an organization. By visualizing tasks and bottlenecks, managers can react quickly to problems and risks and make the necessary adjustments. This leads to a more efficient way of working. Kanban also ensures greater transparency and better communication within the company.

SAFe® (Scaled Agile Network), which sees itself as a systematic approach to scaling agile practices at company level, also uses Kanban as a tool for corporate management, for example for the Portfolio Management.

Why Kanban makes a difference for managers

Why does Kanban make a difference for managers?
By using Kanban to coordinate the company, it is possible to better visualize active and upcoming projects and thus make better decisions. One of these decisions can be, for example, following the Kanban idea of finishing things before starting new ones. This minimizes work in progress and promotes flow, which leads to smoother and faster delivery. This can significantly increase a company's ability to deliver.
Flow not only improves efficiency, but also employee satisfaction and the quality of work. When managers optimize flow in their value streams, they can strengthen the adaptability and resilience of their organization. This is particularly valuable in uncertain times like these.

Curious? Let's see together how we can take your organization's delivery capability to the next level.

You are also welcome to take a look around our site, for example on the following topics Management development, Corporate strategy and portfolio management or also to our training courses, for example to our certified Kanban training. Accredited Kanban trainer Astrid Meyser also offers a training session on the first Wednesday of every month. Kanban consultation hour to. 

If you have any questions or suggestions... Feel free to contact us.