Lean @support functions by Martin Chmelar & Tomas Turecek, Tieto

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Applying Lean Thinking to the horizontal support functions: the lessons learned and results achieved at Tieto presented by Tomas Turecek and Martin Chmelar at the Lean IT Summit 2013.
More Lean IT presentations and videos on www.lean-it-summit.com

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Lean @support functions by Martin Chmelar & Tomas Turecek, Tieto

  1. 1. Copyright © Institut Lean France 2013 3 & 4 October, 2013 Paris, France Lean @ Support Functions Connecting Support functions to Business by Tomáš Tureček, Martin Chmelař 1
  2. 2. Copyright © Institut Lean France 2012 Speakers Martin Chmelař, Lean&Agile Coach Lean@Support Functions - Tomáš Tureček, Martin Chmelař Tomáš Tureček, Lean&Agile Coach 2
  3. 3. Copyright © Institut Lean France 2012 We are RainFellows • Value focus  ROI, Time-to-market, … • Over 10 years of Lean / Agile experience from tens of IT projects • Whole value chain support • Team support  Leadership, coaching, … • Over 3500 people are enjoying results of our coaching time, €, satisfaction, … Need Lean@Support Functions - Tomáš Tureček, Martin Chmelař Value 3
  4. 4. Copyright © Institut Lean France 2012 We represent Tieto The leading IT service company in Northern Europe providing IT and product engineering services More than 15,000 employees in more than 20 countries Lean@Support Functions - Tomáš Tureček, Martin Chmelař 4
  5. 5. Copyright © Institut Lean France 2012 3 & 4 October, 2013 Paris, France HR Staffing Finance ICT Quality Procurement SUPPORT FUNCTIONS Lean@Support Functions - Tomáš Tureček, Martin Chmelař 5
  6. 6. Copyright © Institut Lean France 2012 Support Functions Heroes or villains? Lean@Support Functions - Tomáš Tureček, Martin Chmelař 6
  7. 7. Copyright © Institut Lean France 2012 They do their best but… Serving many different value chains Busy business people Isolated from customer value Wide & shallow approach used Far from customer Lean@Support Functions - Tomáš Tureček, Martin Chmelař Serving all but none External constraints 7
  8. 8. Copyright © Institut Lean France 2012 Some time ago in Tieto… SGA costs were higher than competitors’, IT players of similar size Feedback showed that Support Functions were isolated and not supporting customer oriented work Sampo Salonen SGA: Sales, General & Administration Lean@Support Functions - Tomáš Tureček, Martin Chmelař Executive Vice-president, Global Delivery and Quality 8
  9. 9. Copyright © Institut Lean France 2012 The CMMI story 1 Our customers want us CMMI. Which customers? Why? Don’t ask. Just do it. Chief Marketing Officer 2 Processes & Quality org. Your Czech part will be CMMI ML3. No time to do it. We are busy with customers’ escalations. Your processes will be better. Just do it. Processes & Quality org. Lean@Support Functions - Tomáš Tureček, Martin Chmelař TIPS Team 9
  10. 10. Copyright © Institut Lean France 2012 2012 Lean@TIPS Profit Satisfaction 2x Employees * Average monthly profit in 2012 compared to 2011 Customers 50 40 Start 30 20 10 0 -10 Lean@Support Functions - Tomáš Tureček, Martin Chmelař 10
  11. 11. Copyright © Institut Lean France 2012 Lean transformation@Tieto 2011 Business impact: 7MEUR in 2012 Let’s try Lean approach on Support Functions Lean@Support Functions - Tomáš Tureček, Martin Chmelař Sampo Salonen Executive Vice-president, Global Delivery and Quality 11
  12. 12. Copyright © Institut Lean France 2012 3 & 4 October, 2013 Paris, France 1. 2. 3. 4. Start now. Split & focus. Bite & chew. Enjoy every bite  “HOW TO EAT AN ELEPHANT?” Lean@Support Functions - Tomáš Tureček, Martin Chmelař 12
  13. 13. Copyright © Institut Lean France 2012 Split & Focus • 5 pilot teams chosen  Business critical (yummy)  Ready for change (chewable)  Known way of working • Connect SFs to customer and value Lean@Support Functions - Tomáš Tureček, Martin Chmelař Narrow and deep focus 13
  14. 14. Copyright © Institut Lean France 2012 Go & See? • In distributed software product development? Solution: Kaizen workshop! Lean@Support Functions - Tomáš Tureček, Martin Chmelař 14
  15. 15. Copyright © Institut Lean France 2012 Kaizen Workshop 2011 (1) Agree on common goal and map end-to-end value stream ☺ X C C ☺ X (2) Visualize perceived issues C C ! ! ! (3) Investigate root causes ! (4) Brainstorm ideal solutions and small “Kaizen” steps Root cause Lean@Support Functions - Tomáš Tureček, Martin Chmelař Cause ! Root cause 15
  16. 16. Copyright © Institut Lean France 2012 KW@Support Functions 1. Delivery driven interfaces to Support Functions Quality Finance … etc. … etc. Role/Representative Staffing Delivery Manager Sales phase Development/Transition phase S&M, Contract renewal, CS Cust. Managers (Sales) Line Managers Cont. Service Managers 2. Support Function driven interfaces to Delivery  Weekly, Monthly, Quarterly, Annually Quality Lead Finance Partner Finance Controller HR Partner Staffing Purchasing, Subcontracting, Procurement Special Guests (LT, Man.) Lean@Support Functions - Tomáš Tureček, Martin Chmelař 16
  17. 17. Copyright © Institut Lean France 2012 KW@Support Functions Lean@Support Functions - Tomáš Tureček, Martin Chmelař 17
  18. 18. Copyright © Institut Lean France 2012 Findings from pilot cases • Low autonomy (A lot of approvals) • Overhead (Finance reports, HR questions, Manual reporting, ...) Lean@Support Functions - Tomáš Tureček, Martin Chmelař
  19. 19. Copyright © Institut Lean France 2012 Results • Mutual feedback Delivery: “It was really great to have LT member here and discuss topics immediately.” SF: “We are first time ever looking for process and connecting deliveries and support functions!” • Agreed actions to problems of pilots “GL bookings (delayed invoices) are now much easier to handle after our issue was reflected in a finance tool” “We had problem to track down costs on our very huge and complex service portfolio; finance partner offered us to set-up our portfolio differently to get the visibility” Martin Sztemon “We boosted our relationship with Support function partners on workshop; this paid of later when we were solving our daily issues with them. Project manager Lean@Support Functions - Tomáš Tureček, Martin Chmelař 19
  20. 20. Copyright © Institut Lean France 2012 Results • Inputs and feedback to the new operating model  From Cost centers to Projects  Survey; In compare to 2012 is your (PM/CSM/DM)… …decision making power higher now? Much smaller Same Much higher …overhead smaller now? Much higher Same Much smaller Workshops findings had big influence on the result operating model Sampo Salonen Executive Vice-president, Global Delivery and Quality Lean@Support Functions - Tomáš Tureček, Martin Chmelař 20
  21. 21. Copyright © Institut Lean France 2012 How about chewing? Lean@Finance Lean@Staffing Internal coach 1. 2. 3. 4. Form Core team coach pairs Find internal coaches inside SFs Initiate Lean@(concreteSF) Continuous improvement Lean@... Core team Lean@Support Functions - Tomáš Tureček, Martin Chmelař • We relied on SF heads and LT team to keep the wheel spinning… 21
  22. 22. Copyright © Institut Lean France 2012 Failure or success? • Lean@(concreteSF) unfortunately faded out…  Missing active change agents • However, half a year after…  Contacted by people from within SFs  KW@ICT, KW@Finance • So we managed to create a ripple effect and the journey continues… Lean@Support Functions - Tomáš Tureček, Martin Chmelař 22
  23. 23. Copyright © Institut Lean France 2012 This story was about how important it is to… • Approach people positively - everyone does his/her best • Focus people and their actions on value • Keep Startup mindset & PDCA • Prioritize and focus • Go & See - Kaizen workshop • Bring people together to break the silos • Focus on long term results, but win something quickly as well • Find change agents Lean@Support Functions - Tomáš Tureček, Martin Chmelař 23
  24. 24. Copyright © Institut Lean France 2012 But the most important lesson was… People first  Let them meet. Let them talk. Let them share.  To find WHAT and WHY they want to achieve together  Because only people who know WHAT and WHY can invent the HOW and make the needed improvement… Lean@Support Functions - Tomáš Tureček, Martin Chmelař 24
  25. 25. Copyright © Institut Lean France 2012 More about Lean in IT on: www.lean-it-summit.com

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