A story of lean IT transformation by Jean Cunningham - European Lean IT Summit 2012

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At the European Lean IT Summit 2012, Jean Cunningham presented the story of a lean transformation that occurred within the IT organization in a global company. More lean IT videos and presentations on www.lean-it-summit.com

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  • (Add unique title and presenter) Introduce event and sponsor.
  • My colleagues and I have been fortunate to be on the fore front of lean innovation in the U.S. since the early 90’s. Jean inadvertently helped to invent what has become known as lean accounting. In our decision making roles for large and medium size companies we lived it and evolved it and believe we can help you do the same. Logo (waste going in the can, basketball hoop, cheering leanster, red olive martini)
  • Lantech was historically very successful before lean, the inventor and leader in their segment. They lost an important patent. Worked with Coopers and Lybrand to define issues. Tried partial builds with more inventory and other “fixes”. Once they started adopting lean, the gains were surprising and dramatic. Tell story of Lantech being early adopter, put in Lean thinking and then HBR selection the Lantech Chapter
  • From an Activity perspective….what people do vs. what we’d like them to do! Time horizon of work…..historical, what does history mean, what to do in the future Applies to accounting, HR, IT, and others Move towards using resources to influence the future rather than recording the past. (One could argue that Consulting, and to a lesser degree, Analysis, are the only two areas of value added work in Finance) Lean Accounting is not about having less accountants – but more fully utilizing those we do have to do more value added work! (HANDOUT – “10 Strategies For Achieving Lean Accounting Goals”)
  • (Add unique title and presenter) Introduce event and sponsor.
  • A story of lean IT transformation by Jean Cunningham - European Lean IT Summit 2012

    1. 1. Copyright © Institut Lean France 2012 This is the story of a lean transformation that occurred within the IT organization in a large, global company. Learn how this department launched their lean efforts, piqued internal interest, created capability and transformed their approach to IT operations with lean thinking. They utilized all the lean tools and not only conducted cross-functional improvement activities with dramatic results, but also created a culture of everyday improvement that continues to advance lean waste reduction to this day. This IT organization became the symbol of change, improvement and leadership for the entire company.JeanCunninghamConsulting.com 1
    2. 2. Copyright © Institut Lean France 2012 22 & 23 November, 2012 Paris, France Launch Lean ina Global IT Organization European Lean IT Summit 2012 with Jean Cunningham
    3. 3. Copyright © Institut Lean France 2012 Building LEAN Beyond Manufacturing • Founder and president • Lean accounting and lean office pioneer • Former CFO, Lantech, Inc. • Former CFO, MarshfieldManaging Times Press, 2003 Productivity Press, 2007 Door Systems Shingo Prize, 2004 Shingo Prize, 2008JeanCunninghamConsulting.com 3
    4. 4. Copyright © Institut Lean France 2012 Global Enterprise • Well known innovator in manufacturing and distribution • Consumer-based household products • Global  150 countries  Used by 25% of world population daily  Products have #1 or #2 market share in 80 countries • 800 IT professionals globally plus global external IT partnersJeanCunninghamConsulting.com 4
    5. 5. Copyright © Institut Lean France 2012 Timeline Discovery May-Oct 2008 Launch Dec 2008 Develop Team Q1 2009 Introduce to IT personnel Q2-Q4 2009 IT Lean Team Leadership FY 2010 Expansion FY 2011 Value Add IT FY 2012JeanCunninghamConsulting.com 5
    6. 6. Copyright © Institut Lean France 2012 Discovery, May-Oct 2008 • Operation led re g tu ce sin rs ac D an ip ll de ha R& Se uf Sh Fin Or rc an Pu M Information Systems Human Resources AccountingJeanCunninghamConsulting.com 6
    7. 7. Copyright © Institut Lean France 2012 Discovery, May-Oct 2008 • Finance interest via workshop • Manufacturing IT support internal workshop • Global finance workshop  Three problem events  IT executive spends five days with financeJeanCunninghamConsulting.com 7
    8. 8. Copyright © Institut Lean France 2012 Discovery, May-Oct 2008 ? ? n N ew Lea ew N ormal N Maintenance “ Can Lean be an answer?”JeanCunninghamConsulting.com 8
    9. 9. Copyright © Institut Lean France 2012 Launch, Dec 2008 • Approval from CIO for trial • Find external support / coach • Identify key team members and leader • Three day introduction Day 1 Lean introduction to key team Day 2 AM Lean Introduction to large IT group (40 people) Day 2 PM Mini-kaizens Day 3 AM • Portolio Management (15 team members) • Cost Management (10 team members) Day 3 PM Presentation, “Ah ha” momentsJeanCunninghamConsulting.com 9
    10. 10. Copyright © Institut Lean France 2012 Develop Team, Q1 2009 • Dedicate resource  1 team leader  5 full time  All top performers  All in U.S.A. • Scope, objectives, & quarterly plan  Personal development  Introduce Lean  Build awareness • “What does this mean to me?”JeanCunninghamConsulting.com 10
    11. 11. Copyright © Institut Lean France 2012Introduce to Personnel, Q2-Q4 2009 • Consultant led initial • Internal tools kaizen events;  8 wastes shadow by key leads  Kanban  Small enhancements  Visual Management  Launch SharePoint • Added extended team sites members  Regulatory  Global  Access management  Part-time • Quick & Easy boards  FunctionalJeanCunninghamConsulting.com 11
    12. 12. Copyright © Institut Lean France 2012 IT Lean Team Leadership, FY 2010 • Problem area focus events • Lean education to all IT • Working cross functional • Metrics for lean team  % of people trained  # of people in events  Q & E improvements  Events heldJeanCunninghamConsulting.com 12
    13. 13. Copyright © Institut Lean France 2012 IT Lean Team Leadership, FY 2010 • Team skill development tools  Value stream mapping  8 wastes Teach Know  Pull Others About  Kanban Fully With  Standard work Able Help  MetricsJeanCunninghamConsulting.com 13
    14. 14. Copyright © Institut Lean France 2012 Expansion, FY 2011 Corporate Initiative Corporate Initiative Human Resources  Finance  Legal  IT Human Resources Finance Legal IT • Selected a consulting firm guide • Six sigma as “competition” • Pre-selected problems  Current state evaluated prior to the event • Not IT “way” • Confusion / check the box • Existing team members recruited to more senior positions • New team members addedJeanCunninghamConsulting.com 14
    15. 15. Copyright © Institut Lean France 2012 Value Add IT, FY 2012 1. Focus on business management IT  Functional leader driven  Teach leaders to see problems  Teach problem solving  Lean team supports leadersJeanCunninghamConsulting.com 15
    16. 16. Copyright © Institut Lean France 2012 Value Add IT, FY 2012 2. Organization development  First IT lean leader promotion to senior operations  Lean IT team members promoted and act as leaders with lean  Second IT lean leader selected as development opportunity  Risk that some team members not moving off teamJeanCunninghamConsulting.com 16
    17. 17. Copyright © Institut Lean France 2012 Lean IT Transformation Consulting Consulting Analysis Analysis Transactions TransactionsJeanCunninghamConsulting.com 17
    18. 18. Copyright © Institut Lean France 2012 Summary and Results • Lean as a business strategy not an initiative • Importance of daily improvement focus • Commitment of “free resources” • Value of coach; not consultantJeanCunninghamConsulting.com 18
    19. 19. Copyright © Institut Lean France 2012 Summary and Results • Not a quick fix  Year 2  95% trained  30% involved in kaizen  Year 3  Global involvement fully  Zero overhead growth  Year 4  Average delivery of application up 300%  Pulling external work insideJeanCunninghamConsulting.com 19
    20. 20. Copyright © Institut Lean France 2012 Lean IT Principles 1. Automate only if it is easier, faster, and complements your culture. 2. Build commonality to increase visibility and access to information. 3. The primary purpose of security is to avoid data corruption and provide information access. 4. Nothing lasts forever. 5. System and software inflexibility can be the greatest inhibitor of change. 6. Plain English system instructions are better than shorthand. 20JeanCunninghamConsulting.com
    21. 21. Copyright © Institut Lean France 2012 Lean IT Principles 7. Keystrokes matter to power users. 8. Capture everything you can about your customer. 9. Archive customer history; clean house on internal transactions. 10. Capture information once and be done. 11. Use commonality to create an information highway. 12. Productivity for all is more important than productivity for one. 13. Huge data stores are easy to manipulate. 21JeanCunninghamConsulting.com
    22. 22. Copyright © Institut Lean France 2012 JCC Products and Services • Lean Office Workshops • Business Process Kaizens • Lean Accounting • Lean Human Resources • Lean IT and IS Migration • Strategic Deployment Planning • Lean Metrics • Lean Financial StatementsJeanCunninghamConsulting.com 22
    23. 23. Copyright © Institut Lean France 2012 Contact Jean Cunningham Email: jean.cunningham@leanjcc.com Phone: 224.688.3504JeanCunninghamConsulting.com 23
    24. 24. Copyright © Institut Lean France 2012 22 & 23 November, 2012 Paris, France Launch Lean ina Global IT Organization European Lean IT Summit 2012 Material is Copyrighted

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