Every business aims to increase revenue while minimizing cash burn and ensuring customer satisfaction. However, many inefficiencies that hinder business success often go unnoticed. To reveal these challenges, you have to shed light on your workflows and identify the factors preventing better business outcomes.

That’s what using Kanban metrics is all about, process improvement.

Sometimes, explaining the benefits of adopting Kanban metrics can be challenging. However, by showcasing its strategic perspective and the significant rewards it brings to your company, you can effectively communicate its value.

Therefore, we present this business case today – to help you articulate the benefits of Kanban analytics and its tremendous impact on your company’s profits. This use case will empower you to confidently demonstrate the concept to your leadership team and obtain approval for its adoption.

Your Business Case

Let’s first highlight why incorporating Kanban metrics and analytics into your business is a logical choice.

Kanban Analytics Simplifies Work Management

The primary goal of Kanban is to expose the current state of your processes and enable the evaluation of potential improvement opportunities.

With a Kanban analytical solution in place, you will gain clear visibility into delivery times, capacity, and impediments that hinder your team’s delivery speed. By identifying bottlenecks, eliminating blockers, and managing dependencies, you can literally multiply their results.

The focus shifts from starting more work to completing what’s already in progress and delivering results to the market as quickly as possible, leading to a faster return on investment.

Getting Started with Kanban Requires Minimal Changes

You don’t need to overhaul your processes, tools, working practices, or organizational structure to begin using Kanban.

On the contrary, you can start with your existing practices and make small, evolutionary changes that align with your business context to enhance your workflow.

Adopting Kanban Metrics is a Low-Cost, Low-Risk Initiative

Implementing Kanban metrics is cost-effective as this approach integrates with your current workflow without necessitating disruptive changes that cannot be reversed if the initiative doesn’t succeed.

It generates a powerful financial impact by optimizing delivery speed, reducing costs, and enabling consistent and faster results in the market.

The 3 Main Benefits of Adopting Kanban Kanban in Your Organization

Allow me to present a success story from one of our customers who initially adopted Kanban analytics for a single team before scaling it across their organization, achieving remarkable success within a year. They prefer to stay anonymous as they consider adopting this approach to work management their main competitive advantage!

Reducing Delivery Times

This team used to work on multiple products simultaneously, causing context switching and dependencies that obstructed workflow. Most of the time, items were stuck in the process, accumulating waiting time. By revealing the root causes of delays and increasing transparency, significant improvement possibilities emerged.

Gross Revenue 2021

In 2021, while working on three products, they took 4 months, 6 months, and 9 months to deliver each product, respectively. Frustration and delays arose due to work abandonment, context switching, and legacy code. Every product took progressively longer to complete.

Upon adopting Kanban analytics in 2021, they evaluated their delivery time and identified a major contributor: waiting time resulting from team members being busy with other products, causing dependencies and significant idle time in their workflow.

Cycle Time Breakdown

To address this challenge, they decided to initiate one product at a time and start the next one only after completing the previous one. Despite the products being similar to those in 2021, they aimed to reduce delivery times by 40%, primarily by eliminating waiting time caused by dependencies.

By focusing on one product at a time, they achieved their goal in just 2 months, releasing their first product.

Effective Work Flow Management

Next, they assessed blockers in their workflow and worked on eliminating sources of waiting time. Through blocker clustering, they realized that additional requirements and defects were causing interruptions and delays.

Blocker Clustering Analysis

To overcome this obstacle, they implemented a WIP-limited pull system, established explicit policies for managing dependencies, bottlenecks, and blockers, and enhanced team awareness and confidence in handling obstacles. This not only eliminated the disruptive practice of interrupting ongoing work but also significantly improved the quality of results.

Increased Productivity

As a result, the team became more self-managed and engaged, leading to outstanding work quality. Over the next 6 months, they further reduced delivery times by 10%.

By July 2022, they had already released three products, each being live for two months. Leveraging their available capacity, they decided to develop two more products by the year-end using the same strategy.

Gross Revenue 2022

Their revenue for 2022 demonstrated substantial growth, with all products being released faster and generating revenue for longer periods compared to the previous year. Additionally, they expanded their revenue channels, delivering four products by October 2022.

Their gross revenue increased by 22% through focused work, effective workflow management, and active utilization of Kanban analytics.

The Impact of Kanban Metrics & Analytics

By implementing Kanban analytics, this team transformed their practices and achieved remarkable results within a year:

  • Improved productivity by 40%
  • Reduced delivery times by 50%
  • Increased growth revenue by 22%
  • Realized cash flow earlier
  • Established two new revenue channels
  • Improved quality and customer satisfaction
  • Enhanced team social culture
  • Established a predictable delivery system

Numbers speak for themselves.

Here is your action item: Conduct a trial, explore your data, and present the results to your leadership team

That’s it for today, my friend.

You now have all the means in your hands to demonstrate how adopting Kanban metrics can make your organization more productive, cost-effective, and profitable in the short term.

Thanks for checking in and I look forward to seeing you again next week, same time and place for more managerial goodness! Bye for now.

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