A Better Method
                                   for IT

                                  David Joyce
                 ...
Systems Thinking
                         The means to obtain knowledge,
                           and act with predictio...
ice NOT
                                                  Better pract
                                                   ...
Are we just building
            the wro ng thing righter?




       Rather than focusing on going Agile which
        ma...
We need to bring considerably more                         We need to encourage a whole
   to the table than just the tech...
Its not “The Business”,
                                                        ?
                                Its “Our...
If we build technology around a
                                wasteful process, then we are
                            ...
A




                              B

                                  8
Saturday, 25 September 2010
A                   A




                              B       B

                                          8
Saturday, 2...
Business Analysis - NO!




                                          Custo mer An
                                       ...
Typical Organisation Hierarchy           Customer View

                                               Customers
         ...
Senior Leaders




                                      Marketing




                                                   ...
Senior Leaders




                                                                               140
                    ...
Senior Leaders




                                                                                                       ...
Senior Leaders
Outside
  in




                                      Flow               Flow             Flow            ...
Core Processes vs
                 Support Processes



                                                 Support




     ...
Since IT “ca n” sho uld it?



                                                      There is little merit in a well
     ...
“I recently asked a CIO whether he would prefer to deliver a
      project somewhat late and over-budget, but rich with
  ...
The thing that makes technology
                                        work is not the technology


                     ...
Larger gains can be achieved through better thinking
                             around the design and management of work...
Clarity of Purpose




John Seddon & Daniel Pink        18
Saturday, 25 September 2010
Value vs Failure Deman d




           Value Demand; what we want
          from our customers and spend
                ...
En d to En d Flow




     We often find hundreds of steps,
      but very few will be valued by
              the customer...
En d to En d Flow




     We often find hundreds of steps,
      but very few will be valued by
              the customer...
En d to En d Flow



                                                                 CUSTOMER
                           ...
En d to En d Flow



     Mapping is important, because it helps staff to
          change their perspective on the work

...
Syste m Con ditions




John Seddon                       22
Saturday, 25 September 2010
Pre dictability
   Capability an d




              People may argue over what we should or
               shouldn’t do f...
Pre dictability
   Capability an d



                        Upper control limit

                        x              ...
Pre dictability
   Capability an d




25
Saturday, 25 September 2010
Pre dictability
   Capability an d                                                                 on Cause vs
           ...
Co mparison

                                       Team 1


                                                x            ...
Impro ve              Improve performance without
                                                    using technology

  ...
When we focus on customer needs, and the organisation as
           a system, many of the previous problems, that apparent...
Can technology further impro ve
      this process or system?


      Now we can see potential
     benefits, from a positi...
Measure improvement results

             Use o perationa
                             l
            perfor mance d
      ...
A better m etho d for IT




                                                             System
                         ...
Case Studies




                                    33
Saturday, 25 September 2010
Case Study

                              Study of query management




                                          34
Satur...
35
          Walking the flow
                                                           Certain data obscured for confident...
End to end vs SLAs
                                                           3rd Party reported following
               ...
Analysing Demand




                              60% Failure Demand


                                                  ...
BBC Customer Support System - IVR



        Current IVR Query Routing vs Top 5 Query Reasons

         IVR questions did ...
Reco m men dations



        1. Total system visibility - map end to end experience,
           identifying improvements
...
Case Study

                                 Results




                                    40
Saturday, 25 September 2010
Case Study

                              IT is THE bottleneck




                                        41
Saturday, 25...
!"!#
                                                                                                           $"!#
     ...
Case Study

                                 Results




                                    43
Saturday, 25 September 2010
Case Study

                                Measures




                                    44
Saturday, 25 September 2010
If you find that despite lots of measures, you don’t really
   know much about what matters to customers, then it can be a
...
How do you study purpose? Go out into the system and study
            demand, what matters to your customer. Look at Valu...
The worker has to be
    responsible, and have the means
       to control their own work




         When people underst...
Case Study

                                 Results




                                    48
Saturday, 25 September 2010
Case Study

                              Understanding Capability and
                               Increasing Capacity ...
Value Demand            Failure Demand   Demand




                                                        50
Saturday, 2...
Blockers hard to
                       remo ve




51
Saturday, 25 September 2010
Mean reduced from 30 to 10 days (67%)
                               Large drop in the spread in variation.
              ...
Case Study

                                 Results




                                    53
Saturday, 25 September 2010
Case Study

                               IT Help Desk




                                     54
Saturday, 25 September...
Variation
                              reducing,
                              but average
                              ...
Jun 08 - Sep 08                                      Oct 08 - Dec 08
    UCL: 76 Mean: 16 Longest: 500                    ...
57
Saturday, 25 September 2010
Thinking -> System -> Performance




58
Saturday, 25 September 2010
Case Study

                                 Results




                                    59
Saturday, 25 September 2010
Beyond the BBC

                               Applying the Method




                                        60
Saturday...
Deming: I find few people in industry            Ohno: The important thing with
     know what constitutes a system        ...
Saturday, 25 September 2010
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A better method for it export - David Joyce

  1. 1. A Better Method for IT David Joyce ThoughtWorks 1 Saturday, 25 September 2010
  2. 2. Systems Thinking The means to obtain knowledge, and act with prediction and confidence of improvement. John Seddon - Freedom from Command & Control 2 Saturday, 25 September 2010
  3. 3. ice NOT Better pract e be st practic No Sin gle Solution Anything can be improved if you know how to look. Everything you need to know is in your own system W. Edwards Deming & Taiichi Ohno 4 Saturday, 25 September 2010
  4. 4. Are we just building the wro ng thing righter? Rather than focusing on going Agile which may lead to being successful, instead we should focus on the needs of our customers. How agile you are doesn’t matter. Whether you are 50% agile, 90% agile, or agile through and through doesn’t matter. What matters, is that your company is satisfying its customers, stakeholders, and employees. Dr Russell Ackoff & Esther Derby 4 Saturday, 25 September 2010
  5. 5. We need to bring considerably more We need to encourage a whole to the table than just the technical “system” view rather than a ability to transform user stories into locally optimised view product in a more efficient way We often develop solutions based on sub optimised status quo are Softw t Projec Projects often focus on the needs of a single business unit Eric Landes, David Anderson & Dr. Peter Middleton 5 Saturday, 25 September 2010
  6. 6. Its not “The Business”, ? Its “Our Business” Jeff Patten & Mary Poppendieck 6 Saturday, 25 September 2010
  7. 7. If we build technology around a wasteful process, then we are locking in that process for longer Dr. Peter Middleton 7 Saturday, 25 September 2010
  8. 8. A B 8 Saturday, 25 September 2010
  9. 9. A A B B 8 Saturday, 25 September 2010
  10. 10. Business Analysis - NO! Custo mer An alysis - Yes! 9 Saturday, 25 September 2010
  11. 11. Typical Organisation Hierarchy Customer View Customers Senior Leaders Workers Line Mgt Upper Mgt Upper Mgt Middle Middle Mgt Mgt Line Mgt Workers Senior Leaders 10 Saturday, 25 September 2010
  12. 12. Senior Leaders Marketing Front Office Finance Sales IT 11 Saturday, 25 September 2010
  13. 13. Senior Leaders 140 days Marketing Front Office Finance Sales IT Hidden costs 11 Saturday, 25 September 2010
  14. 14. Senior Leaders 180 I.T . days Marketing Front Office Finance . I.T . I.T Sales IT . . I.T I.T . . . I.T I.T I.T . I.T I .T. I.T . Hidden costs 11 Saturday, 25 September 2010
  15. 15. Senior Leaders Outside in Flow Flow Flow Flow 20 days Marketing Front Office Finance Sales IT Hidden costs 12 Saturday, 25 September 2010
  16. 16. Core Processes vs Support Processes Support Core Customer Core 13 Saturday, 25 September 2010
  17. 17. Since IT “ca n” sho uld it? There is little merit in a well executed project that no one wants the output from The Standish data are NOT a good indicator of poor software development performance. However, they ARE an indicator of systemic failure of our planning and measurement processes Dr. Peter Middleton & Tripp Babbitt & Jim Highsmith 14 Saturday, 25 September 2010
  18. 18. “I recently asked a CIO whether he would prefer to deliver a project somewhat late and over-budget, but rich with business benefits, or one that is on-time and under-budget but of scant business value. He thought it was a tough call, and then went for the on-time scenario. Delivering on-time and within budget is part of his IT department’s performance metrics. Chasing after the elusive business value, over which he thought he had little control anyway, is not.” If you give a manager a numerical target, he’ll make it, even if he has to destroy the company in the process Cutter Sr. Consultant Helen Pukszta & W. Edwards Deming 15 Saturday, 25 September 2010
  19. 19. The thing that makes technology work is not the technology Does this mean the end of IT? There is a better way to approach the use of technology. Understand and improve, then ask if technology can further improve Dr. Peter Middleton & Tripp Babbitt 16 Saturday, 25 September 2010
  20. 20. Larger gains can be achieved through better thinking around the design and management of work into the wo rk as nee de d Then pu ll technology John Seddon 17 Saturday, 25 September 2010
  21. 21. Clarity of Purpose John Seddon & Daniel Pink 18 Saturday, 25 September 2010
  22. 22. Value vs Failure Deman d Value Demand; what we want from our customers and spend time on Failure Demand; demands we don’t want. Failure to do something or do something right for the customer John Seddon 19 Saturday, 25 September 2010
  23. 23. En d to En d Flow We often find hundreds of steps, but very few will be valued by the customer People may argue over what the value steps are. The rule is purpose defines the value work Stuart Corrigan 20 Saturday, 25 September 2010
  24. 24. En d to En d Flow We often find hundreds of steps, but very few will be valued by the customer People may argue over what the value steps are. The rule is purpose defines the value work Stuart Corrigan 20 Saturday, 25 September 2010
  25. 25. En d to En d Flow CUSTOMER DEMAND We often find hundreds of steps, but very few will be valued by the customer People may argue over what the value steps are. The rule is purpose defines the value work Stuart Corrigan 20 Saturday, 25 September 2010
  26. 26. En d to En d Flow Mapping is important, because it helps staff to change their perspective on the work Customers Workers Line Mgt Upper Mgt Middle Mgt Senior Leaders John Seddon 21 Saturday, 25 September 2010
  27. 27. Syste m Con ditions John Seddon 22 Saturday, 25 September 2010
  28. 28. Pre dictability Capability an d People may argue over what we should or shouldn’t do for our customers, but they cannot argue over what we actually do John Seddon 23 Saturday, 25 September 2010
  29. 29. Pre dictability Capability an d Upper control limit x x x x x x x x x x Mean x x x x x x x x x Lower control limit Time 24 Saturday, 25 September 2010
  30. 30. Pre dictability Capability an d 25 Saturday, 25 September 2010
  31. 31. Pre dictability Capability an d on Cause vs Co m m S pecial Cause 100 x x x x x x x 50 x x x x x x x x x x x x 0 26 Saturday, 25 September 2010
  32. 32. Co mparison Team 1 x Team 2 xx x x x x x x x x x x x x x Team 3 x x x x x xx Team 4 x x x x x x x John Seddon 27 Saturday, 25 September 2010
  33. 33. Impro ve Improve performance without using technology If the current work uses technology, leave it in place, work with it, or treat it as a constraint Don’t do anything to change the technology Instead, change to a Systems Design Plan the redesign Setup a clean stream and Roll changes in John Seddon 28 Saturday, 25 September 2010
  34. 34. When we focus on customer needs, and the organisation as a system, many of the previous problems, that apparently required software projects, may well have been ‘dissolved’ The improvement effort can be targeted to where it has most benefit Dr. Peter Middleton 29 Saturday, 25 September 2010
  35. 35. Can technology further impro ve this process or system? Now we can see potential benefits, from a position of knowledge, about the work. We can therefore predict The result is always less the benefits technology investment in technology, but solutions will bring much more value from it IT is pulled into the work, rather than dictating the way work works John Seddon 30 Saturday, 25 September 2010
  36. 36. Measure improvement results Use o perationa l perfor mance d ata Split dat a after a chang e 31 Saturday, 25 September 2010
  37. 37. A better m etho d for IT System Un de rstan d Me asure Pull Technology Improve the work 32 Saturday, 25 September 2010
  38. 38. Case Studies 33 Saturday, 25 September 2010
  39. 39. Case Study Study of query management 34 Saturday, 25 September 2010
  40. 40. 35 Walking the flow Certain data obscured for confidentiality reasons Total customer experience involves multiple silos and hand-offs between 3rd party call centre and BBC Divisions Saturday, 25 September 2010
  41. 41. End to end vs SLAs 3rd Party reported following against SLAs: • 80% of queries resolved in 1 working day • 100% in 5 working days • Call answering SLA is 90% of calls answered within 30 seconds • Call abandoned rate is less than 3% Customer query end to end times in days – provides a different perspective. 36 Saturday, 25 September 2010
  42. 42. Analysing Demand 60% Failure Demand 37 Saturday, 25 September 2010
  43. 43. BBC Customer Support System - IVR Current IVR Query Routing vs Top 5 Query Reasons IVR questions did not match customer demand 38 Saturday, 25 September 2010
  44. 44. Reco m men dations 1. Total system visibility - map end to end experience, identifying improvements 2. Call handling analysis - establish end to end times and value/failure demand 3. Align IVR route options with customer needs 4.Supplement SLAs with end to end times and & value/failure demand metrics 5. Website for customers to easily update their details 39 Saturday, 25 September 2010
  45. 45. Case Study Results 40 Saturday, 25 September 2010
  46. 46. Case Study IT is THE bottleneck 41 Saturday, 25 September 2010
  47. 47. !"!# $"!# %"!# &"!# '"!# (!"!# ($"!# )*+,-./# 0123*45# 67.89+:# !"#"#$ 0;<#=>+25+*# Saturday, 25 September 2010 ;7:#?2@9#6A# AB7C97D93# !"#"#$ E2C@7@+2# F+*85G+># )9722CC2:# =.G3,-93## E2C@7@+2# E2C@7@+2# Value Stream Mapping H5@I7@+2# <3.G#JC5C+2# 0;<#K-2,C2:# L3M-35/# F*C/3#=/+*C35# =/+*N# H5@I7@+2# A..3>/72.3# Mapped the value stream from idea to completion O*C/3*C7# #L3BC31#=/+*C35# 1C/G#P3B39+>3*5# L37,N#Q+*# P3B39+>I32/# R-3-3# !"#"#$ =>*C2/#)9722C2:# SC.8+T# P3B39+>#U#<35/# L3:*355C+2#U# ;+7,#<35/# L393753# )+5/#J3*CV.7@+2# /35@2:# F75/3# W78C2:#J79-3#
  48. 48. Case Study Results 43 Saturday, 25 September 2010
  49. 49. Case Study Measures 44 Saturday, 25 September 2010
  50. 50. If you find that despite lots of measures, you don’t really know much about what matters to customers, then it can be a powerful starting place for change Clarity of purpose, and measures that relate to purpose, are prerequisites to learning and improvement Measures should be in the hands of those doing the work John Seddon 30 Saturday, 25 September 2010
  51. 51. How do you study purpose? Go out into the system and study demand, what matters to your customer. Look at Value Demand vs Failure Demand, go and talk to your customers! Jeremy Cox 34 Saturday, 25 September 2010
  52. 52. The worker has to be responsible, and have the means to control their own work When people understand what is happening where they work, they are able to contribute more in improving the work. This results in greater control and flexibility John Seddon 35 Saturday, 25 September 2010
  53. 53. Case Study Results 48 Saturday, 25 September 2010
  54. 54. Case Study Understanding Capability and Increasing Capacity for New Development 49 Saturday, 25 September 2010
  55. 55. Value Demand Failure Demand Demand 50 Saturday, 25 September 2010
  56. 56. Blockers hard to remo ve 51 Saturday, 25 September 2010
  57. 57. Mean reduced from 30 to 10 days (67%) Large drop in the spread in variation. # Days Blocked Recent outliers have proved to be special cause, waiting for a 3rd party. 52 Data split from financial year end Saturday, 25 September 2010
  58. 58. Case Study Results 53 Saturday, 25 September 2010
  59. 59. Case Study IT Help Desk 54 Saturday, 25 September 2010
  60. 60. Variation reducing, but average # calls not by much Low # calls is xmas period 55 Saturday, 25 September 2010
  61. 61. Jun 08 - Sep 08 Oct 08 - Dec 08 UCL: 76 Mean: 16 Longest: 500 UCL: 66 Mean: 14 Longest: 360 Jan 09 - Mar 09 UCL: 63 Mean: 14 Longest: 300 56 Saturday, 25 September 2010
  62. 62. 57 Saturday, 25 September 2010
  63. 63. Thinking -> System -> Performance 58 Saturday, 25 September 2010
  64. 64. Case Study Results 59 Saturday, 25 September 2010
  65. 65. Beyond the BBC Applying the Method 60 Saturday, 25 September 2010
  66. 66. Deming: I find few people in industry Ohno: The important thing with know what constitutes a system improvement, is to think of new work methods, not to make new Drucker: There is nothing so tools or equipment useless as doing efficiently, that which should not be done at all 61 Saturday, 25 September 2010
  67. 67. Saturday, 25 September 2010

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