How to Measure Success with Kanban

Mark Draper

·October 20, 2023

·9 min read

Introduction

Measuring the success of a kanban system is crucial for assessing its effectiveness. Without proper measurement, it can be difficult to determine whether the system is achieving its intended goals and delivering value. Key performance indicators (KPIs) and metrics provide quantifiable data that enable project managers and agile enthusiasts to evaluate the performance of their kanban system objectively. By identifying desired outcomes and goals, practitioners can establish a baseline for measuring success and track progress over time. In this blog post, we will explore how to measure success with kanban using KPIs and metrics, providing you with valuable insights to improve your project management practices.

Identifying Desired Outcomes

Defining desired outcomes is a crucial step in measuring the success of your kanban system. It involves clearly defining the goals and objectives that you want to achieve through the implementation of kanban. By having well-defined outcomes, you can effectively evaluate whether your kanban system is delivering the intended results.

Defining desired outcomes

To define desired outcomes, start by identifying the specific goals and objectives of your kanban system. These goals should be aligned with the overall objectives of your project or organization. For example, if your project aims to improve efficiency and reduce lead time, your desired outcome could be to achieve shorter cycle times for tasks or projects.

Ensure that the desired outcomes are specific and measurable. This means that they should be clearly defined and quantifiable so that you can track progress and assess success objectively. Avoid vague or general statements and instead focus on specific metrics or targets that can be measured.

Establishing success criteria

Once you have defined your desired outcomes, it is important to establish success criteria that will indicate whether these outcomes have been achieved. Success criteria can be qualitative or quantitative, depending on the nature of your goals.

For example, if one of your desired outcomes is to improve customer satisfaction, a qualitative success criterion could be achieving positive feedback from customers through surveys or reviews. On the other hand, if your goal is to reduce lead time, a quantitative success criterion could be achieving a 20% reduction in average lead time compared to previous performance.

Ensure that the success criteria are measurable and specific so that you can track progress accurately. This will enable you to determine whether your kanban system is successfully delivering on its intended outcomes.

Selecting Relevant KPIs and Metrics

Choosing appropriate key performance indicators (KPIs) and metrics is essential for effectively measuring the success of your kanban system. These indicators provide quantifiable data that can help you evaluate the performance and effectiveness of your system.

Choosing appropriate KPIs

To choose the right KPIs, start by identifying the key areas of focus for your kanban system. These areas could include cycle time, lead time, throughput, customer satisfaction, or any other aspect that is critical to achieving your desired outcomes.

Select KPIs that directly align with these areas of focus. For example, if reducing cycle time is one of your goals, a relevant KPI would be the average time it takes for a task or project to move through each stage of your kanban board.

Consider using industry-standard KPIs such as cycle time, lead time, throughput, and customer satisfaction. These indicators have been widely adopted in agile and project management practices and can provide valuable insights into the performance of your kanban system.

Determining relevant metrics

In addition to KPIs, it is important to determine relevant metrics that provide meaningful insights into the performance of your kanban system. Metrics are specific measurements or data points that can help you track progress towards your desired outcomes.

Choose metrics that align with your goals and objectives. For example, if you want to monitor how efficiently work flows through each column on your kanban board, you could track average time in column or blocked time (the amount of time a task spends waiting due to dependencies or blockers).

Ensure that the selected metrics are aligned with the desired outcomes and goals of your kanban system. By tracking these metrics over time, you can gain valuable insights into how well your system is performing and identify areas for improvement.

Setting Benchmarks

Setting benchmarks is an important step in measuring the success of your kanban system. It involves establishing baseline measurements and defining specific targets or benchmarks for each key performance indicator (KPI) or metric.

Establishing baseline measurements

To set benchmarks, start by measuring the current performance of your kanban system to establish a baseline. This serves as a reference point for future measurements and allows you to track progress over time.

Collect data on the selected KPIs and metrics that you have identified. For example, if one of your KPIs is cycle time, measure the average time it takes for tasks or projects to move through each stage of your kanban board. This will provide you with initial performance data that can be used as a starting point for improvement.

Setting targets and benchmarks

Once you have established a baseline, it is important to define specific targets or benchmarks for each KPI or metric. These targets should be realistic and achievable based on your desired outcomes and goals.

Consider industry standards and best practices when setting benchmarks. Research what other organizations in your industry are achieving in terms of cycle time, lead time, throughput, customer satisfaction, or any other relevant metrics. This can help you set ambitious yet attainable targets that align with industry norms.

By setting targets and benchmarks, you create clear objectives to strive towards. They provide motivation for continuous improvement and serve as a means to evaluate the success of your kanban system objectively. Regularly monitor progress against these targets to ensure that you are on track towards achieving your desired outcomes.

Regularly Measuring and Tracking Performance

Regularly measuring and tracking the performance of your kanban system is crucial for evaluating its effectiveness and making data-driven improvements. This section will explore how to implement a measurement process and effectively monitor key performance indicators (KPIs) and metrics.

Implementing a measurement process

To ensure consistent and reliable measurement, establish a regular cadence for measuring and tracking performance. Define the frequency at which data will be collected and analyzed. This could be daily, weekly, or monthly, depending on the nature of your project or organization.

It is important to ensure that the measurement process is consistent across different teams or projects within your organization. Use standardized methods for collecting data and ensure that everyone involved understands the importance of accurate and timely data collection.

Monitoring KPIs and metrics

Continuously monitor the selected KPIs and metrics to track progress towards the established targets or benchmarks. Regular monitoring allows you to identify any trends or patterns that may indicate areas for improvement.

Keep a close eye on deviations from expected performance. If certain KPIs or metrics are consistently falling short of targets, it may indicate bottlenecks or inefficiencies in your kanban system. Conversely, if you consistently exceed targets, it may signal opportunities for further optimization.

By actively monitoring KPIs and metrics, you can gain valuable insights into the performance of your kanban system. This enables you to make informed decisions based on real-time data, identify areas for improvement, and take proactive measures to enhance overall effectiveness.

Analyzing the Data and Making Adjustments

Analyzing the data collected from your kanban system is essential for gaining insights into its performance and making informed decisions. This section will discuss how to analyze performance data and make data-driven adjustments to improve your kanban system.

Analyzing performance data

To analyze the performance of your kanban system, examine the collected data for patterns, trends, and anomalies. Look for areas where you are consistently meeting or exceeding targets, as well as areas where you are falling short. Identify any bottlenecks or inefficiencies that may be impacting success.

By analyzing the data, you can gain valuable insights into how well your kanban system is functioning. For example, if you notice a consistent increase in cycle time over a certain period, it may indicate a bottleneck in your workflow that needs to be addressed. Similarly, if customer satisfaction scores are consistently low, it may signal a need to improve communication or address quality issues.

Making data-driven adjustments

Use the insights gained from the data analysis to make informed decisions about adjustments to your kanban system. Based on identified issues or areas of improvement, consider making changes to address these concerns.

For example, if you identify a bottleneck in your workflow causing delays, you could implement strategies such as redistributing tasks or adjusting work-in-progress (WIP) limits to alleviate congestion. If customer satisfaction scores are low due to communication issues, you could introduce regular feedback sessions or improve transparency in your process.

Continuously iterate and improve your kanban system based on the analysis of performance data. Regularly reassess goals and objectives and adjust KPIs and metrics accordingly. By making data-driven adjustments, you can optimize the effectiveness of your kanban system and ensure that it continues to deliver value over time.

Conclusion

Measuring the success of your kanban system is essential for assessing its effectiveness and making data-driven improvements. By identifying desired outcomes and goals, selecting relevant key performance indicators (KPIs) and metrics, and regularly measuring and tracking performance, you can gain valuable insights into the performance of your kanban system.

Analyzing the collected data allows you to identify areas for improvement, address bottlenecks, and make informed decisions to optimize your kanban system. By continuously iterating and making data-driven adjustments, you can ensure that your kanban system delivers value and helps you achieve your desired outcomes.

In conclusion, by implementing a systematic approach to measuring success with kanban, you can enhance project management practices and drive continuous improvement in your organization.