How a Financial Firm gained Portfolio Alignment and Operational Improvement through Transforming to Kanban Method?

2019

IT & Infra, Financial Services Firm, USA

Business Challenges

The company is a leading debt buyer financial firm of the USA, having offices across the globe. Through acquiring a number of companies in the past 65 years, the company has established its operations and investments in 15 countries. It’s subsidiaries purchase portfolios of consumer receivables from major banks, credit unions, commercial retailers, and telecommunications companies, and work with individuals to repay their debts, through giving various options.

The newly appointed CIO office initiated a transformation project in the IT & Infra organisation. The major challenge reported by the organisation was having operational teams distributed in multiple countries and the different time zones, and the primary development teams were located in India and the US. Teams were not aligned with the portfolios, in addition to that planning and capacity allocation were among the top issues for the organisation.

Company’s leadership decided to identify an expert consultancy to direct the transformation, and in the evaluation process the company approached
INNOVATION ROOTS to give a proposal for transformation using Kanban Method and Tools, and eventually hired our company as a trusted provider for managing the transformation after a few rounds of meetings.

Solution

INNOVATION ROOTS started the conversation with the company's leadership and teams to establish a trusted environment. These initial interviews and assessments guided in defining the business goals to be delivered by the transformation project.

Along with the leadership and key stakeholders of the company, we defined a detailed plan with steps to implement the transformation by taking the vision, goals, objectives and key milestones into the account.

Transformation planning step was followed by an end-to-end assessment of the current state of operations.

Assessment outcomes highlighted the bright spots and areas of improvement;

  • Portfolio level items face major delay to get delivered, and this was primarily due to structure

  • Teams were not aligned to delivering portfolio wise, rather most of the team were structured project wise only for a certain duration

  • Project Management process use to take a lot of time in planning, allocation, and was a complex process in nature to address the fast incoming needs/requests

  • Structure was a constraint to plan a priority project and to timely allocate resource & people even when the capacity was available

  • Classification of type of work was not in place and a lot of time was invested in managing downstream operations

  • Prioritisation was not systematic, and it resulted into chaos to get SLA based work done

  • Most of the teams were distributed and faced frequent delay in decision making

  • Teams and organisational metrics were not guiding the improvements

The outcome of the assessment reflected realtime state, and next efforts were to define the granular level plan for the teams to be trained and coached on Kanban Methods along with Azure DevOps tool;

  • On the floor work started with training the leaders, managers and executives on Kanban Method and its core concepts

  • As the next step of transformation, all the teams were trained in Kanban Method foundation

  • Embedded coaching engagement started with identification of value streams for portfolios and defining the organisational structure to deliver the value in alignment with those value streams

  • Facilitated teams to define and run Kanban System using STATIK, and mentored the teams to adapt concepts like visible Kanban boards, define the workflows, limit WIP, manage the flow and implement frequent improvements

  • Coached teams on implementation of Azure DevOps ALM, and trained them on end-to-end use of various Azure services to manage work in distributed setup

  • Defined and implemented metrics - cycle time, throughput for teams and organisation

  • Set the Kanban Cadence and Flow to digitally manage the work

  • Coached teams on optimizing the flow of work, managing with constraints and improve collaboratively

As the first wave succeeded new units and projects (waves) were included incrementally into the transformation, and additional coaches were embedded to coach these new waves to implement the practices and gain maturity in implementing Scrum, Kanban and DevOps.

Outcomes

The transformation program ran for an year and a few months, after that it was handed over to internal coaches to manage for continuous improvement.

As a result,

  • Kanban ways of working helped organization to align the teams to portfolios, and work more efficiently. This resulted in a significant improvement in work getting done by the priority

  • Demand and Capacity management improved as teams started visualize the flow and manage the same.This resulted in significant improvement in cycle time

  • Teams gained clarity on their roles and responsibilities, and improved their contribution to deliver early and often high quality increments

  • Constraints and bottlenecks became more visible and it provided opportunities for innovation and to evolve over time for better performance. This resulted in significant improvement in throughput

  • Organisation started acquiring new culture to collaboratively improve using Cycletime, Throughput, WIP limits and Cumulative flow

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