Lean IT strategy, lean measurement and organizational design

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Stephen Parry's presentation at the 1st European Lean IT Summit held in Paris, France in October 2011

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Lean IT strategy, lean measurement and organizational design

  1. 1. Copyright © Institut Lean France 2011 Lean IT Strategy, Organisational Design and Transition Stephen Parry CEO See Business Differently Author of Sense and Respond: The journey to customer purpose. Faculty Member of the Lean Enterprise Academy Twitter: LeanVoices Blog : www.LeanVoices.com Stephen.parry@seebusinessdifferently.com www.seebusinessdifferently.com Christiane Fischer Simone EngelhardtOpérationnel Lean Transformation Manager Vice Président SAP IT Infrastructure Services Opérationnel Change and and Lean IT Consultant Delivery Excellence
  2. 2. Lean Myth Busters:1) You won’t find Lean in the tools and methods.2) It’s not about optimising waste is about optimising value.3) It’s not about managers fixing everything it’s about the staff owning and solving problems.4) It’s not only about processes it’s about the whole service model.5) It’s not about efficiency at all costs it’s about effectiveness at the right cost.6) This incorporates development and innovation.
  3. 3. Sense and Respond Lean Approach SENSE what matters DRIVE the service and the strategy to customers Drive support services Capture Demand Data Build relationship Build relationship 1. 2. 3. People People PeopleYour clients and their Your front-line Your support customers operation organisation Purpose Flow Adapt – Evolve – Inform – Innovate RESPOND
  4. 4. The customer/service user challenge: They don’t have time………….they say things like: Solve my problem, completely. Dont waste my time or cause me hassle. Minimise the cost of doing business with you. Provide exactly what I need and deliver value where I need it. Reduce the number of decisions I must make to resolve my problems. Don’t get me to help you; I want you to help me!Adapted from Lean Solutions: Jim Womack and Dan Jones by Stephen Parry
  5. 5. Question: What would ICT organisations do if they had to pay for all the operational and service user time they wasted?
  6. 6. Traditional approach: Feasible parts creating an infeasible whole. Functional units F1 F2 F3 F4 FnIndependent It’s not unusual S1 S2 S3 S4 SnSolutions to have thirtyDesigned to or moreMeet functional solutions liningTargets and up for attentionGoals. Throughput process
  7. 7. Traditional approach: Feasible parts creating an infeasible whole. Functional units F1 F2 F3 F4 FnIndependent It’s not unusual S1 S2 S3 S4 SnSolutions to have thirtyDesigned to or moreMeet functional solutions liningTargets and up for attentionGoals. Improved Customer Experience ?
  8. 8. The OperatingLevel Four System The OrganisingLevel Three SystemLevel Two The ProcessLevel One The Output Adapted from Fourth Generation Management Brian Joiner
  9. 9. What type of experience do you create for customers, employees and managers? Company pushes products and services ON-COMMAND Customers and employees are designed out Mass Production (Make and Sell) Transactional Incentivised Functional Direct and processed contribution efficiency and controlCustomer experience Employee motivation Support operations Executive leadership Relational Willing End-to-end Listen and personal contribution effectiveness and adapt Lean Enterprise (Sense and Respond) pulls products and services ON-DEMAND Customer Customers and employees are designed in
  10. 10. Aligning service provision to customer needs doing business with you. • Dont waste my time or you, I want you to help • Reduce the number of • Provide exactly what I need, where I need it, problem,completely. • Minimise the cost of • Don’t get me to help decisions I have to cause me hassle. when I need it. • Solve my make. me! Customer LifecycleSpecify value from the Make value-creating steps occur in astandpoint of the end customer. Delivery Process tight and integrated sequence so the product/service will flow smoothlyIdentify all the steps in toward the customerthe value stream, eliminatingevery step and every action Let customers pull valueand every practice that from the next upstream activity.does not create value Pursue Perfection. These steps lead to greater transparency, enabling © 2009 See Business Differently Ltd teams to eliminate further waste
  11. 11. Don’t align IT service provision to the transactional needs of the service user rather to the real world customer outcomes Enable external Customers Business Process Business Outcomes CORE PROFILE Personal UserInfrastructure Enable Client Service User Business Processes Outcomes Specify value from the Make value-creating steps occur in a tight and integrated sequence so the Delivery Process standpoint of the end customer. product/service will flow smoothly Identify all the steps in toward the customer the value stream eliminating every step and every action Let customers pull value and every practice that from the next upstream activity. does not create value Pursue Perfection. These steps lead to greater transparency, enabling Corporate teams to eliminate further waste Utility Infrastructure Outcomes Stable, adaptive infrastructure and applications
  12. 12. CORE Profile: Value definitions Is defined by ‘Customer Purpose’. Deliver value effectively to customers and efficiently to the organisation. CREATE (Optimise) Creates the possibility for developing new services that OPPORTUNITY will satisfy customers or increase production and (Innovate) revenue. REMEDIAL Occurs when the organisation delivers unfit products or(Restore and Remove) services. Production is lost, the customer is unhappy, resulting in loss of money, time, and reputation. EXTERNAL(Restore and Re-think) Originates externally and is usually waste or demand that is created by other organisations, agencies or institutions.
  13. 13. Move Installation Equipment CREATE VALUE BIN Provide Nothing in here because no one was looking Quote OPPORTUNITY TO CREATE VALUE BIN Slow Repeat Network Progress Fault Application Problem RESTORE LOST VALUE BIN Chase Engineer Not arrived Escalation Computer is not working 3rd PartyCan’t Supply EXTERNAL LOST VALUE BIN Customer Purpose Defines Value, What was once seen as Value is now seen as WASTE all in addition to the 40% rework. There is no value in fixing symptoms. Fix the Road not the Tyres. Customer Purpose = Business Outcomes . Moving from the cost of Failure to the Return on Value
  14. 14. Fixing the wrong problem
  15. 15. Operational VALUE STREAM MAP for each Demand Type End-to-end Response capability and cost (efficiency) Customer experience at touch points VALUE and PURPOSE linked to the customer (effectiveness) 15BUSINESS INTELLIGENCE
  16. 16. CreationOpportunityRestoration External 0% 20% 40% 60% 80%RestorationRestorationRestoration Creation Creation 16
  17. 17. CORE Profile: ICT support operations Before changing the service.Create 8%Opportunity 2%Remedial 80%External 10% Source Fujitsu Case Study: Sense and Respond Book Used with kind permission
  18. 18. CORE Profile: ICT support operations after changing the service.Create 50%Opportunity 12%Remedial 33%External 5% Source Fujitsu Case Study: Sense and Respond Book Used with kind permission
  19. 19. CORE Profile for Global IT end User support (November 2009) 19
  20. 20. Customer and People Measures: Flow You’ll not find many measures in this zone. End to End ‘If you measure your service using averages, you will deliver an average service.’ Functional Value No Matters to Customers Yes Purpose©Copyright Stephen Parry 2010. All rights reserved.
  21. 21. The way we think Design Principles H.R Standards R&R Process Field Bonus. Management Technologies ICT Infrastructure Change Fleet Management Management ICT Service Staff Logistics Escalation Stores Problem CORE Management Profile Customer Safety Resource Services Management Building Knowledge Services Management Commercial Finance Trading BudgetsDiagnosing Measurement Service Mgntthe ‘System’ fromThe Customer to theDesign of the Organisationand the way we think.
  22. 22. Six Steps to a new service and a new operating model.CustomerPurpose Profile People Process Performance Generates service user demands Help Desk Service User Business Process End-to-end Contact Centre RESPOND Performance Service Centre Customer Value Stream C Measurement Call Centre SENSE End-to-End Customer Enterprise O Mgnt. Processes Impact CORE IT Operating R Customer Technicians Infrastructure Cost Demand Component Profile Control (Internal and Revenue E Integration External Suppliers) Revenue Service Mgnt Potential Map Identify Codify and Design Map Value Map Cost Customer User/Customer quantify and Implement Stream and Lifecycle Needs Customer/user New Service Link to Customer Performance Needs Model To the businessCustomersBusiness Optimised ‘On-Demand flow of Value’ Incident-Free-Zone. Customer Value Enterprise® Purpose Customer Value Enterprise® is a registered trademark for See Business Differently
  23. 23. Search for Common Purpose Business Purpose Common Purpose‘We all work for the same We provide expertisecompany but we live in and services to enable With pride we relentlesslydifferent worlds’ us to produce, sell and pursue and apply our support software by insight, ingenuity and creating and running technologies to createThomas Queisser wealth and a secureSense and Respond Leader robust, effective and efficient IT-Solutions. future. To contribute with my Purpose skills and to be fairly Strengthen my value rewarded in a secure chain in a way that Value and trusted differentiates me from environment that competitors and offers challenges and provides a return on Action allows me to develop my investment. and grow. Employee Purpose Customer Purpose
  24. 24. Running A3’s S&R Phase III – A3 Overview in this Phase Phase 1 (Prototype), Phase 2 (Mobilization), Phase 3 (Standardization) Proto- Mobili- Standard- Subject Matter Senior BusinessExisting and New A3‘s ... A3 Owner A3 Support Team type zation ization Expert Coach Future State Operating Techical Dietmar Reinelt/ Frank-Martin Haar Sushil Dabare Zhang Shurong Model & Operating Strategy Advisory Panel Steffen Hempel Dietmar Weishaupt Routemap Planning Ron Iannacone Andreas Heinz Amit Gupta Alexander Göppert Lakshmi K.K. Frank-Martin Haar Christian Communication & Andreas Heinz Uli Kochendoerfer Ali Guereke Rapberger/ Broadcast Beng Hang Tay Service Tool Jacqueline Frank-Martin Haar Vinay Chadha Maureen Tonetta Lakshmi K.K. Implementation Yildirim James Armstrong Simone Program Management Steffen Hofstetter Nico Neuhold Engelhardt Management Center Christiane Fischer Sanjiv Nashte Shajan K.J. Chad Troisi Thomas Peters Implementation (Pilot) Sushil Dabare Thomas Queisser Jawahar A. Dagmar Simone Business Improvement Vineeta Bhardwaj Holger Neiheiser Oeldemann Pallavi Bhanot Systems George Oommen Engelhardt
  25. 25. Running A3’s S&R Phase III – A3 Overview in this Phase Phase 1 (Prototype), Phase 2 (Mobilization), Phase 3 (Standardization) Proto- Mobili- Standard- Subject Matter Senior BusinessExisting and New A3‘s ... A3 Owner A3 Support Team type zation ization Expert CoachInfrastructure Tim Frömbsdorff Technical Tobias Schühle Atil Gaikwad Dietmar ReineltManagement Alex Göppert Advisory PanelTechnical Design Siegfried Kübel Christian Roth Tbd Greg PearseAuthority Uwe Rötschke Chad Troisi & Global ServiceService Management Armin Storek Ron Iannacone All REMs / BEMs Greg Pearse Management Team Maureen Tonetta Service Performance Andreas da Tim Oppermann Marco Ries Michael Scanlan Greg Pearse Review Process Trindade Chad Howard Murat KarakullukcuService Improvement Tim Oppermann Bernadette Chad Troisi Chad Howard(Get Well Plan) Tim Frömbsdorff KollerBusiness Process Ron Iannacone Armin Storek Joshua Jacquette Greg PearseDefinition Tim OppermannService Management & Armin Storek Ron Iannacone Chad Howard Joachim Bolz Greg PearseCustomer Engagement Chad Troisi Customer Access Rules Sushil Dabare Amit Gupta Christiane Fischer Lakshmi K.K. Dagmar Simone Process Governance Kathy Balsley Pallavi Bhanot Oeldemann Engelhardt
  26. 26. Running A3’s S&R Phase III – A3 Overview in this Phase Phase 1 (Prototype), Phase 2 (Mobilization), Phase 3 (Standardization) Proto- Mobili- Standard- Subject Matter Senior Business A3 Owner A3 Support Team type zation ization Expert CoachKey User Group & - - - - -Customer LifecycleProcess Management - - - - -ImplementationManagement Center - - - - -Design OptionsData & New Measurement - - - - -
  27. 27. From first to last: Respect for people Quotes from Stephen Parry Seminar. We believe people are capable of learning and taking on additional responsibility, and if you create the right environment, people will want to learn and will actively seek more responsibility. In this context ‘respect for people’, means Managers helping employees understanding that all people have the ability to freely choose how they solve learn and the right to be given opportunities to problems displays total learn. respect. There is a world of differencebetween helping people to seeand telling them they are blind. Most of all we must trust that people are capable of owning and solving their own problems with a little bit of help.
  28. 28. Sense and Respond: Strategy White Papers and Pod Casts The Journey to Customer New Principles and a New Vision for Services Purpose A Demanding World Measuring for Value. Transformation Pitfalls and LessonsSusan Barlow, Stephen Parry and Mike Faulkner. Research papers Service Climate Management Cranfield/Fujitsu Managing For Value Articles Turning Customer Service upside down Service Climate Management Customer: Lost in translation Seven Deadly Sins of Transformation TV and Radio BBC Documentary ‘The Crunch’ Channel 4/Einstein CIPD. Sense and Respond BBC Radio 4 In Business The Heartbeat Economy BBC Radio 4 In Business Lean and Mean and at your Service www.seebusinessdifferently.com

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