"Implementing a lean approach in IT operations and infrastructure" by Philippe Laniesse, CTO of BNP Paribas

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At the European Lean IT Summit 2012, Philippe Laniesse CTO of BNP Paribas presented how he is implementing a lean approach

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"Implementing a lean approach in IT operations and infrastructure" by Philippe Laniesse, CTO of BNP Paribas

  1. 1. Implementing a Leanapproach in IT operations and infrastructure European Lean IT Summit 22-23 November, 2012 Paris, France Philippe Laniesse, CTO of BNP Paribas
  2. 2. SOMMAIRE1. Introduction to BNP Paribas IT Group Production2. Context and goals3. A new approach within Production4. Set-up5. Benefits6. Conclusion ITG IPS I European Lean IT Summit 2012 22/12/2012 2
  3. 3. The IT Group Production delivers services tonumerous and various entities of the Group ITG IPS I European Lean IT Summit 2012 22/12/2012 3
  4. 4. IT Group Production – Some figures Coverage WorkforceAround 40% of GroupProduction services Around 1 500 collaborators With a similar sized external workforce Datacentres5 Strategic Datacentres located in WorkstationsFrance and Belgium 70 000 of the 270 000# 10 000 servers# 100 000 Mips Mail# 8 000 To storage 120 000 mail boxes # 400 firewalls (France) 60 000 ITG IPS I European Lean IT Summit 2012 22/12/2012 4
  5. 5. SOMMAIRE1. Introduction to BNP Paribas IT Group Production2. Context and goals3. A new approach within Production4. Set-up5. Benefits6. Conclusion ITG IPS I European Lean IT Summit 2012 22/12/2012 5
  6. 6. Context and GoalsThe economical and regulatory environment impacts all financial institutions,including BNP Paribas and indirectly its production unitsThe pace of changes required by the Businesses to adapt to new economical constraints, the increased need for reduction of « Time To Market ».Regulatory requirements are generating a huge volume of adaptationsWe need more than ever to master quality, budget, cost, delays and risk with an emphasis onefficiency due to unfavourable economical context Increasing complexity of the IT environment Complexity of processes, organisation (international dimension, xborder requirements, extended enterprise) Richness but also increased complexity of applications and infrastructures solutions Exponential increases of volumes require stronger management of capacity, performances and costs … leading to renewed constraints: We need to be more agile and keep in sync with Business requirements, be prompt to implement required solutions Our collaborators must get a better understanding of their contribution/accountability within the overall set-up. The enterprise must control the evolution of production running costs and investments Increasing need for industrialisation ITG IPS I European Lean IT Summit 2012 22/12/2012 6
  7. 7. Context and Goals Passed years experiences  Development departments have invested these last years on improving their operational processes and their quality control and have used extensively CMMI framework. Within BNP Paribas, all development units have reached at least a level 3 maturity.  As a contributor to development projects, the Production has embedded in Development methodology it own requirements. The production life cycle processes were enhanced.  ISO 9001: The Group IT Production has been working on client satisfaction and improvement of quality delivered to the clients and the performance of its quality management system over the last decade. It has remained certified during all that period of time.  ISO 20000-1: More recently, we have adopted the ITIL referential, rationalised accordingly our processes using best practices and reached an ISO 20000-1 certification.  ISO 27000: A part of infrastructure is already certified for security management system. We anticipate that in near future all the organization need to be certified and reach a high level of security performance.  ISO 14001: A part of our infrastructure services is already certified ISO 14001. We foresee that this will be extended to most of our Production Services, in line with the emphasis we put on Social and Environmental ResponsibilityThese methodologies have indeed brought real benefits but they reach some limitsEven if the processes give appropriate descriptions of the activities, they may be sometime too high level without enough field procedures and therefore look quite theoretical and be quite far away from the reality on the ground : in such cases, the expected improvements will remain not enough precise and somehow theoretical too.So even if they are structured upon bringing direct value to the Client, they may not always reach the field and not bring value to all parties such as the Collaborator. Such benefits may remain limited. ITG IPS I European Lean IT Summit 2012 22/12/2012 7
  8. 8. SOMMAIRE1. Introduction to BNP Paribas IT Group Production2. Context and goals3. A new approach within Production4. Set-up5. Benefits6. Conclusion ITG IPS I European Lean IT Summit 2012 22/12/2012 8
  9. 9. ACE « Amélioration Continue de l’Efficacité » Efficiency Continuous Improvement ACE: The history of Lean within BNP Paribas  The objective of the ACE approach is to improve the efficiency of our processes, so as to fulfil better the expectations and the needs of our Clients. It is inspired from lean manufacturing.  The ACE approach started in 2004 across the whole of BNP Paribas Group. It was extensively used initially within the Back Offices  The ACE approach aims at streamlining the processes, their interactions focusing on reduction of delays, simplification of processes, creation of value for the clients in terms of products and services:  Eliminate as much as possible the activities which do not bring added value  Synchronize the flow of information between operational processes (improve the interaction and interoperability)  Standardize the processes and operations  Enable the operational teams to better manage their processes and the associated performances. The implementation of ACE method to Group Production Services started in 2007. ITG IPS I European Lean IT Summit 2012 22/12/2012 9
  10. 10. ACE – A new approach within Production (1/2) This method is characterised by a holistic approach of problems and addresses simultaneously:  Clients expectations on services,  The quality and productivity objectives of entities providing services,  The active role of collaborators in the performance management and in the actions required for continuous improvement. As such, the approach forces us to consider again fundamental questions:  What is the added value of each activity from the Client perspective?  What are the best operational practices and how can we bring everyone to use them? The ACE approach is based on what happens on the field:  The team leader and the collaborators are actors of the method.  They realize what happens in their daily activity and progressively take charge of improvement avenues,  They get a better understanding of their role and of what is essential and superfluous in their activities,  They enter a virtuous circle by measuring, analysing, proposing evolution, modifications, all bearing in mind their added value. ITG IPS I European Lean IT Summit 2012 22/12/2012 10
  11. 11. ACE – A new approach within Production (2/2) The sponsor of each ACE Project is a member of the ExecutiveCommittee of the Group IT Production  This helps top managers to get in touch with the field, to acknowledge the facts, based on real cases. We do not work only based on theoretical models.  This is also an opportunity for top management to clarify expectations, priorities in terms of operational efficiency.  This participates in improving the communication between the top management and the field employees.  Ultimately, the alignment between the Strategy, the high level objectives and the management of priorities at operational level is improved. ITG IPS I European Lean IT Summit 2012 22/12/2012 11
  12. 12. SOMMAIRE1. Introduction to BNP Paribas IT Group Production2. Context and goals3. A new approach within Production4. Set-up5. Benefits6. Conclusion ITG IPS I European Lean IT Summit 2012 22/12/2012 12
  13. 13. Set-up – the projects, the team, the coaches, the pilots Each project follows a standard process over a period of 13 weeks with established milestones and moment of truth. Performance management is not intuitive and requires a rigorous process and specific working methods  It is therefore required to have experts accompanying the process : the coaches.  We have adopted a mix of internal (Corporate ACE team) and external specialists The projects are managed by Project Leaders specialised on ACE projects : the ACE pilots. The more experienced they get, the less coaching we will need but a minimum must still be maintained. Each ACE project covers an activity or a set of similar activities typically handled by a team of 10 to 15 people maximum. This limit is important to ensure that the coach and the pilot can transfer their know-how on Performance Management and Continuous Improvement to each collaborator. ITG IPS I European Lean IT Summit 2012 22/12/2012 13
  14. 14. Set-up – The Sponsor, the Middle Mgt, the Top Mgt The active involvement of the Sponsor is a key success factor  The Sponsor must fix a performance objective. When first results appear, it is tempting to compromise: he must remain committed to this objective.  He must be attentive to the team feed back, go on the field (he is the one going on site for reporting and not the usual way around), be supportive. Middle management must be handled with special care  During the ACE project, the Middle Manager is caught in between the Sponsor and the Team  During this time, he must acknowledge what happens while avoiding to interfere. He must let the team take full responsibility of the process of continuous improvement : this is pretty uncomfortable for a lot of them.  To ease the process, we have set up a specific coaching focused on one of their future top priority: problem management. An ACE Program Office coordinates all actions (planning, selection,follow-up, staffing of Project Leader and Coaches ...) I am personally involved through the Program Committee and makes on site visits twice a month. ITG IPS I European Lean IT Summit 2012 22/12/2012 14
  15. 15. Set-up – Post project … The new management practices brought by the ACE method (daily teamcheckpoint, visual dashboard management and PDCA « on the wall », ...) are at risk tosubside post Project. The follow-up post-project is therefore crucial  Periodical visit from the sponsor in the teams (it’s the manager who goes to the report and not the other way around)  The middle management must support the initiative  The KPI associated to the initiative must be embedded in the objectives of the entity, of the team and at individual level  Strong communication on realised improvements, on results brought by the method and uttermost on the actors of these successes. Interviews, flash on the intranet, testimony in internal events … To materialise the productivity synergies  The synergies and the increased efficiency are followed up in a specific dashboard by the Executive Committee of the Department.  To ensure that we maximise the benefits, a global monitoring is required as full realisation might require cross department adjustments  Sometime the adjustment is made directly in the concerned team  Most of the time, full benefit can only be achieved in a larger perimeter ITG IPS I European Lean IT Summit 2012 22/12/2012 15
  16. 16. SOMMAIRE1. Introduction to BNP Paribas IT Group Production2. Context and goals3. A new approach within Production4. Set-up5. Benefits6. Conclusion ITG IPS I European Lean IT Summit 2012 22/12/2012 16
  17. 17. The outcome The outcomes of the completed projects are very significantSome examples of the achievements ITG IPS I European Lean IT Summit 2012 22/12/2012 17
  18. 18. The performance is understood and shared by all collaborators thanks to the « on the wall » dashboard management Performance ProblemsClient Satisfaction Seeing TOGETHER Problems are resolved one by one The Process ITG IPS I European Lean IT Summit 2012 22/12/2012 18
  19. 19. The team takes responsibility for work on a daily basis Daily successful tasks 80% 35% 39% March April May ITG IPS I European Lean IT Summit 2012 22/12/2012 19
  20. 20. Actually, the performance improves in a matter of monthsExample of a team of project managers DeliveryDeadlines respected dates are better Example of a team in 100 94 respected charge of application 75% 57 delivery 55 Customer Stocks of requests satisfaction and incidents shrink 2011 March April May increases drastically  Stock of requests  Stock of incidentsCustomer satisfaction 120 118 on delays 10 58 64 8 8 7,7 44 114 80 2 Delayed 22 4 requests 60 56 20 5 0 40 2011 March April May Postponed 0 0 requests May Beg End End May Beg End End June June July June June July ITG IPS I European Lean IT Summit 2012 22/12/2012 20
  21. 21. The performance improves at all levels within a few months … Nb of Incidents Stock of incidents Resolutions in timeCustomer Satisfaction 100 9 93 21 28 30 21* 8,4 9,8 9,7 114 80 49 Mai Juin Juillet 5 0 0 Mai Juin Juillet Mai Juin Juillet Mai Juin Juillet L’enquête est effectuée par mail. * conjoncturel Un objectif journalier est fixé sur le A ce jour, peu d’envois sont L’augmentation des incidents au tableau des objectifs. Les retards sont souvent dus à réalisée. mois de juin est lié à MDI. Avec la réduction des stocks, des incidents qui arrivent déjà en L’objectif est d’envoyer plus de Des actions sont en cours pour l’équipe traite maintenant retard. mail d’enquête pour obtenir un diminuer le volume des incidents. uniquement les entrées du jour. retour plus proche de la réalité. Stock of demands Demands Demands on time Customer demands postponed on time 96 80 96 83 58 60 82 64 50 20 23 4 0 0 0 Mai Juin Juillet Mai Juin Juillet 11 L’équipe s’est donné un objectif Juin Juillet Mai Juin Juillet journalier pour la diminution du Un travail particulier a été effectué Il s’agit du respect de la L’amélioration du respect des délais stock via le tableau d’analyse de pour la réduction des demandes planification et de la date planifiée client est due à la réduction des production. suspendues via un PDCA. par l’équipe. retards et des suspendues. Un travail particulier a été réalisé Des retards ont été constatés lors Traitement des demandes au jour le sur les demandes en retard et les de l’attaque du stock. jour. demandes suspendues ITG IPS I European Lean IT Summit 2012 22/12/2012 21
  22. 22. Problems are exposed on the wall and treated by theteam... ITG IPS I European Lean IT Summit 2012 22/12/2012 22
  23. 23. Productivity gains are concretisedThey can be significant … Client Satisfaction Delays Nb Demands 9 80% 8 1.6j 7.3 0.5j 35% 0.5j 0% June August June August June Sept Quality : RFT Stocks Productivity 66 4 100% 4 85% 65% 2.5 0 0 Jan April Jan April June August ITG IPS I European Lean IT Summit 2012 22/12/2012 23
  24. 24. In a nutshell ... ITG IPS I European Lean IT Summit 2012 22/12/2012 24
  25. 25. SOMMAIRE1. Introduction to BNP Paribas IT Group Production2. Context and goals3. A new approach within Production4. Set-up5. Benefits6. Conclusion ITG IPS I European Lean IT Summit 2012 22/12/2012 25
  26. 26. Conclusion An approach creating value at all levels Inline with the economical context requirements It is a tool to transform in depth the enterprise A way of handling « simply » very complex problems It is disturbing but worth the effort! ITG IPS I European Lean IT Summit 2012 22/12/2012 26

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