Evolving Lean in Matrixed Enterprise Delivery

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My talk from #lascot12, describing how we evolved our Lean approach to Delivery Teams

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  • Action orientated, errorproofed
  • $$ quantification… not going to specify
  • Evolving Lean in Matrixed Enterprise Delivery

    1. 1. Martin BurnsSeptember 2012Evolving Lean in Matrixed Enterprise Delivery © 2012 IBM Corporation
    2. 2. Introducing… You may have heard of us You may have heard of us Globally, we employ nearly half a million smart Globally, we employ nearly half a million smart people, working across software, high end systems people, working across software, high end systems and services. and services. Culturally, we’re driven by the true American NYSE Culturally, we’re driven by the true American NYSE mentality: satisfy shareholder & market expectations mentality: satisfy shareholder & market expectations – growth, revenues, shareprice etc etc. We can argue – growth, revenues, shareprice etc etc. We can argue about whether that’s A Good Thing or not, but as a about whether that’s A Good Thing or not, but as a shareholder, I’m pretty grateful about that. shareholder, I’m pretty grateful about that. It’s said that if one of the pillars of Lean is working It’s said that if one of the pillars of Lean is working towards a perfect flow of value, the other is to build a towards a perfect flow of value, the other is to build a more Toyota-like culture. And II agree, that’s a great more Toyota-like culture. And agree, that’s a great destination to have. But IBM != Toyota. And won’t be destination to have. But IBM != Toyota. And won’t be probably in my lifetime. So whenever we talk about probably in my lifetime. So whenever we talk about benefits, ultimately they have to be tied back to $, benefits, ultimately they have to be tied back to $, which is also the conversation our customers drive us which is also the conversation our customers drive us 2 to. to. © 2012 IBM Corporation
    3. 3. Application Management Services (AMS)  Large organisation – several thousand people  Large organisation – several thousand people supporting UK customers, in UK, India and beyond supporting UK customers, in UK, India and beyond  Many top tier customers; not allowed to name them,  Many top tier customers; not allowed to name them, http://www.ibm.com/services/uk/gbs/applicationmanagement/ but think of a major brand->fair chance we’re working but think of a major brand->fair chance we’re working there. Infrastructure for many critical industries & govt there. Infrastructure for many critical industries & govt  Culture: Hugely matrixed; a lot of dedicated account  Culture: Hugely matrixed; a lot of dedicated account teams (cos that’s how customers want it), with a lot of teams (cos that’s how customers want it), with a lot of control resting in account control resting in account  Top down drive for commercial success, and  Top down drive for commercial success, and culturally, in not screwing up. Big compliance culturally, in not screwing up. Big compliance mindset. And overall, very successful. mindset. And overall, very successful.IBM Application Management Services transforms application developmentand maintenance through consulting and industry expertise paired withapplied innovation from IBM Software and IBM Research to not only lowercosts, but also increase time-to-value and service quality.http://www.ibm.com/services/uk/gbs/applicationmanagement/3 © 2012 IBM Corporation
    4. 4. IBM Global Lean CoE Just in Time (‘80s) Lean Manufacturing (‘90s) (Kanbans, Pull systems, (“Machine that changed the world”, Visual management) “Lean Thinking”, Value Stream Mapping) Total Quality Management (’80s) BPR (‘90s) Lean Six Sigma (00’s) (SPC,Quality (culture change/benchmarking, (down-sizing, “to be“ Deming/ Ohno Circles, Kaizen) Baldridge/EFQM, ISO9000) processes, process owners) Juran (’60/‘70s) (‘50s) Motorola – (Allied Signal) (14 points, (Toyota Six Sigma (‘80s) statistical Production quality) System) GE (‘80s – ‘90s) Six Sigma (applied method for growth and productivity) Intensity of Change Customer Partnering (GE Toolkit, QMI, Customer CAP Change Acceleration Process – CAP (Change method and tools) Kotter etc. Very long running – half a decade or so already, Transformation Process Improvement (NPI, Supply Chain, Suppliers) Very running – half a decade or so already, and and plans a long way going forward. plans a long way going forward. & Leadership Best Practices (benchmarking, across and outside of GE, ending NIH) Grew out of consulting practise, and views itself as Grew out of consulting practise, and views itself as very much part of a long history of Work-out (Kaizen type, cross functional teams, boundarylessness, values) very much part of a long history of quality/improvement thinking particularly 6S; quality/improvement thinking particularly 6S; Strategy No 1 or No 2 in each business. Fix, close or sell Works across IBM, with both internal operations and Works across IBM, with both internal operations and customer facing teams customer facing teams Track record of strong benefits – all $ linked of course Track record of strong benefits – all $ linked of course –4with some really low hanging fruit. – with some really low hanging fruit. © 2012 IBM Corporation
    5. 5. Lean Project Roadmap Initialisation & ASSESS IMPLEMENT SUSTAIN Mobilisation W0 W1 W2 W3 W4 F D E D I C W4 plan Control Introduction to the Manage Phase Works hops Implement VS W3 Future Selection state design Develop Solution W0,1,2 Current state VS Explore Solution assessment & mapping Define Solution • Stakeholder & Team • W0: - Run Courier Simulation • Business Case completion • Dashboard De live rable s mobilised • W1: - SIPOC - VOC - Mississippi • Project Management • Continuous Improvement • Charter - Environ. Factors – Data Collection - • Coaching VSM Value Tree • Set up RAG • W2: - Current State - Report Out • W3: - Future State - Report Out • W4: - Develop FSCs - Report Out O n the jo b training o f VS M VS M s upporte d by VS M s upporte d by 1 by L e an Coach 2 L e an Coach L e an Coach Training Lean Awarenes s training: FO RUM - For future VSM Learning Bes t Practices - 2 days 1 day DEDIC training:•• This is the norm -for our Lean Deployments Leanbig Delivered by Lean Coach/ – a leaders This is the norm for our Lean Deployments – a big For VSMs who did an Assess phase change change 1 day•• Really powerful for complex problems; II have a Really powerful for complex problems; have a Delivered by Lean Coach/ Lean leaders team I’m working with1who have a really tough team I’m working with who have a really tough week 3-4 weeks 4-6 weeks 12 months problem with account resourcing, which has a problem with account resourcing, which has a 5 $1m+ upside, which definitely passes the value for $1m+ upside, which definitely passes the value for © 2012 IBM Corporation money test with this complex approach. money test with this complex approach.
    6. 6.  But when you propose this kind of approach to AMS  But when you propose this kind of approach to AMS Account Execs (key management tier for addressing Account Execs (key management tier for addressing each customer)… each customer)…Account Exec Response Our processes are evolved already Separate (and distracting) from ‘real work’ of client delivery Needs outside help from experts Too much work Too much cost We don’t have time6 © 2012 IBM Corporation
    7. 7. So… Go And See Show Respect Ask Why…7 © 2012 IBM Corporation
    8. 8. Where The Problems Live  In AMS, processes have evolved a lot already; the  In AMS, processes have evolved lot already; the low hanging fruit really aren’t low hanging fruit really aren’t  We are ignoring (and teaching accounts to ignore)  We are ignoring (and teaching accounts to ignore) the many and small problems, which neglects much the many and small problems, which neglects much of the total potential benefit of the total potential benefit 0.14% of all problems Less in evolved environments such as AMS 8.95% of all problems 90.91% of all problemsAdapted from: Jeff Liker: The Toyota Way Fieldbook & © 2012 IBM CorporationIBM Australia Research
    9. 9. Result and Reflection Doesn’t address needs of En ga No evolved delivery team Ad ge op m e tio nt n / Cult Sus Chang t men ure No tain No rove ing e Imp No Experience9 © 2012 IBM Corporation
    10. 10. Reflection Epiphany Behaving as a short termistEteam, Doesn’t address needs of seeking large 1-offAngag No evolved delivery team Projects that we controlp eme do tio nt n / not Cult a long term strategic team Sus Chang t men seeking to ure No tain sustainably transform AMS No rove ing e to be able to deliver in a Lean way Imp for customer benefit & growth No Experience10 © 2012 IBM Corporation
    11. 11. New Approach – Light Touch Lean i  So rather than going for the big change  So rather than going for the big change nr (which satisfies some stakeholders, but (which satisfies some stakeholders, but faces rejection from the leadership of those faces rejection from the leadership of those Ka on the ground), let’s have a new approach on the ground), let’s have a new approach n tio Pr  Designed and always described as being  Designed and always described as being A3 Pe ems light touch, low impact, easy to start, small ob light touch, low impact, easy to start, small rec commitment etc. commitment etc. rva olv in l Di  Starts from where each team find  Starts from where each team find siv ing themselves themselves sh ic  Different teams will start with different  Different teams will start with different e teg elements of this elements of this Ho tra  Aim however is constant:  Aim however is constant: Every day, a little better Every day, a little better S Kanban Relieves Painpoint Feeds Problem Visibility11 © 2012 IBM Corporation
    12. 12. Kanban: Visualise the Process; See the Problems S p o t th e P r o b le m s  Knowledge Work has a fundamental problem: Its Invisible.  Knowledge Work has a fundamental problem: Its Invisible. Progress is reported after the fact Progress is reported after the fact Problems are Hidden Problems are Hidden Interventions are too late Interventions are too late  This team were facing one of the biggest delivery excellence  This team were facing one of the biggest delivery challenges UKI GBS has hit in the last 10 years. challenges UKI GBS has hit in the last 10 years.  You can’t tell this by looking!  You can’t tell this by looking!12 © 2012 IBM Corporation
    13. 13. Kanban… and Introduce a lot of Lean For Free Customer6 Core Kanban Practises Value n ct io1. Visualise Valu Stre2. Limit Work in Progress e Perf3. Manage Flow am e4. Explicit Process Policies5. Implement Feedback Pr Pul e6. Improve Collaboratively; in l ec Evolve Experimentally c ip Pi w 1 lo le F 5 Lean Principles 13 © 2012 IBM Corporation
    14. 14. …And Gain Empirically Provable Results MMF Lead Time (Off Backlog to Ready for UAT) & Trend 120 100 Delivery turnaround and predictability improvingLead time (working days) 80 60 40 20 0 1-Dec 1-Jan 1-Feb 1-Mar 1-Apr 1-May 1-Jun MMF Start Date Time stabilising & outliers reducing 14 © 2012 IBM Corporation
    15. 15. Countermeasure: A3 – Problemsolving for All Sustainability Melts Resistance Co he P r th e lve mm ro t So lem s ob o p un blem A3 Pr vel ica De te s Drives Solves The Improvement Strategic Problem at All Scales Alignment as ‘Normal’15 © 2012 IBM Corporation
    16. 16. PDCA Thinking – the Heart of Lean Problemsolving Plan Do Empirical Experimental Method■ Whats the Problem? ■ What are we doing to remove the obstacles? – Whats the Current Condition? – Whats the Target Condition? Check – Whats stopping us getting there? ■ Did it work? (obstacles) Adjust/Act ■ If so, how do we work like that all the time? ■ If not, what are we trying next? Action Orientated Action Orientated Template error-proofs Thinking Process Template error-proofs Thinking Process © 2012 IBM Corporation
    17. 17. Owner Coach Date What are we trying to do? What are we trying to do?Theme: What will address the root What will address the root Why is this important? Why Why is this important? Why causes & achieve the goals? causes & achieve the goals?Strategic Background did you pick this problem? did you pick this problem? Countermeasures What’s happening now? What’s happening now? How will the countermeasures How will the countermeasuresCurrent Situation Quantify Quantify Action Plan be implemented? be implemented? # Action Owner Due Date 1 2 3Goal & Forecast Benefits What will success look like? What will success look like? Confirmation & Actual Benefits How will we know the How will we know the Quantify Quantify countermeasures work? countermeasures work?Analysis eg 5 Whys/Pareto What’s the real What’s the real problem? problem? Standardise How will we make the benefits How will we make the benefits widespread? widespread? © 2012 IBM Corporation
    18. 18. A3 & Hoshin Kanri: Strategic Alignment & Solving the Right Problem Useful A3 Reading Flinchbaugh Sobek & Rother Smalley Ebook only: http://leanpub.com/a3problemsolving an D oPl an D D o A3 Pl o an A3 Pl A3 A k ck ct ck A c A he he ct C he ct C  Complex A3s (eg increase customer satisfaction) can usually be  Complex A3s (eg increase customer satisfaction) can usually be C broken down into smaller ones broken down into smaller ones  These will align to a hierarchy of problems/goals for the team  These will align to a hierarchy of problems/goals for the team  Understanding this hierarchy of goals is the heart of Hoshin Kanri  Understanding this hierarchy of goals is the heart of Hoshin Kanri18 © 2012 IBM Corporation
    19. 19. Hoshin Kanri: Cascading high level vision to the Front Line Goals Quarterly Senior Management Regular, structured Vision Hoshin feedback loops Kanri Plan P D A Monthly C Objectives Middle Management Goals Hoshin D Kanri Plan P A Initiatives C Objectives Hoshin D Teams P Kanri Plan A C Measures Hoshin Kanri aims to: Hoshin Kanri aims to: Individuals Initiatives  Deploy strategic goals down organizational layers, building  Deploy strategic goals down organizational layers, building traceability in throughout the cascade traceability in throughout the cascade Hoshin D Kanri Plan P  Establish enterprise-wide alignment on objectives and measures  Establish enterprise-wide alignment on objectives and measures  Break down silos between functions and business units, by  Break down silos between functions and business units, by aligning action plans to strategic objectives and measures aligning action plans to strategic objectives and measures A C  Clear line of sight from CEO to coalface  Clear line of sight from CEO to coalface  Linked to Metrics that Execs care about  Linked to Metrics that Execs care about19 © 2012 IBM Corporation
    20. 20. Outcomes Pull  Push Push Teams starting to identify own improvements  Real Sponsorship Adoption of methods on own initiative  Viral Hoshin Kanri Benefits  Faster Deliveries  Happier Customers  Lower Costs  $$$20 © 2012 IBM Corporation
    21. 21. TakeawaysTransformations Need PullSituational Awareness really, really mattersGo and See… ReflectionMatch Methods to NeedsCombination of 1. Kanban 2. A3 3. Hoshin Kanriwork together very powerfully in wide range of situations…but how you implement them…21 © 2012 IBM Corporation
    22. 22. Questions..? Martin Burns @martinburnsuk http://writing.easyweb.co.uk/22 © 2012 IBM Corporation

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