Application of Lean methodology into the area of IT and Application maintenance gives new opportunities in closing the gap between the world of system development and the world of Mainenance. Short cycle assessment monitors progress towards more agile sowftare maintenance

1. The
road
to
Lean
Success:
Assessment
of
organisa6onal
readiness
Drs.
Hans
Smorenburg,
MSc
Management
Consultant,
Quint
1

2. Economist
MSc
in
Informa6onmanagement
Working
in
IT
Informa6on
Management
and
development
environments
for
15
years
Lean
IT
Consultant/
Trainer
APMG
Agile
Coach/
Consultant
Quint
Wellington
Redwood
Amsterdam
H.Smorenburg@Quintgroup.com
2

3. 3
Ø SePng
the
Context
Ø Key
elements
on
the
Road
to
succes
Ø Quick
Reality
Assessment
Ø Lean
IT
Content
Ø Q&A

4. The
challenge:
reducing
costs
to
deal
with
economic
crisis….
4
Fierce
costcuPng
to
survive
the
exonomic
storm
in
the
short
run..
Een kleine greep uit de berichten van de NOS afgelopen 2 maanden:

5. …as
well
as
reducing
4me
to
market
for
new
products
and
services.
5
Reduce
TTM
for
innova6on
to
keep
in
pace
with
the
market
or
posi6on
in
profitable
nices

6. Buzzwords
dividing
in
same
two
groups…
Focus
on
both
commercial
and
commodi4es
6
Commercial…
.
…..Commodity
Differentiator for –local- market competition
Highly Agile, low time-to-market
Rapid enablement of better ways to serve customers
Creating new markets
Standardize as much as possible on commercial off the shelf products
Proven technologies, standard Services
No customization, non-differentiating and low cost solutions
Robust, reliable and large

7. Market
situa6on
forces
companies
to
differen6ate:
Organiza4onal
Agility
versus
Opera4onal
Excellence
Strategic
planning
Organiza6onal
agility
Opera6onal
excellence
Entrepreneur
ship
7
High
Market
dynamics
Market
complexity
High
Low
Low
§ Focus
on
mximum
agility
to
gain
a
posi6on
in
high
dynamic
and
complex
markets
§ Focus
on
opera6onal
excellence
in
areas
where
cost
per
unit
must
be
minimized.

8. Businesscase
for
Lean
IT
in
the
OE
quadrant:
More
value
for
less
money
More
“Value
Add
Ac6vi6es”
at
lower
total
cost:
1. Reducing
non
value
add
ac6vity:
1. Reduce
demand
with
low
business
value
through
business
priori6za6on)
2. Reduce
waste
2. Improve
quality:
1. First
6me
right
in
each
step,
(Embed
quality
in
the
process)
2. Reduce
“technical
debt”
3. Reduce
6me
from
start
to
delivery
(turnaround
6me)
8
Time
-­‐>
Value
add
ac6vity
Non
value
Add
ac6vity
NVA
NVA
VA
VA
€-­‐>

9. 9
Ø SePng
the
Context
Ø Q&A
Ø Quick
Reality
Assessment
Ø Lean
IT
Content
Ø Key
elements
on
the
Road
to
succes
Ø Q&A

10. An
effec6ve
Lean
Transforma6on
consists
of
changing
aAtude
and
behavior,
supported
by
Lean
instruments
Lean
IT
:
A
way
of
thinking
and
behaving
Strategic
goals
Professionalism
ConGnual
improvement
Customer
OrientaGon
Efficiency
Quality
CooperaGon
Lean
thinking
and
behavior
is
about:
§ Improving
customer
value
§ Con6nual
improvements
in
small
steps
§ Decreasing
peaks
and
troughs
in
produc6on
§ Reducing
waste
§ Involving
everybody
§ Developing
people
§ Focusing
on
long-­‐term
goals
10

11. Principles
of
Lean
IT:
Customer
value
at
the
center
Assess
all
ac6vi6es
in
the
process
on
added
value
in
the
eyes
of
the
customer
Create
con6nuous
flow
in
produc6on
with
the
Just-­‐in-­‐
Time
approach
and
reducing
volume
variance
Demand
triggers
the
process
chain
in
order
to
reduce
stock
First
6me
right,
focus
on
quality
preven6on
of
defects
5
4
3
2
1
11

12. Dimensions
of
Lean
IT
to
deliver
Customer
value.:
Focus
on
five
dimensions
and
con4nous
improvement
Lean
It
based
on
five
dimensions
And
conGnuous
improvement
with
Kaizen
1
Lean
IT
focuses
on
Behaviour
and
aPtude
using
techniques
form
six
sigma
to
reinforce
the
learning
ability
of
the
organisa6on.
12

13. Lean
IT:
The
5
Dimensions
in
closer
detail
§ Focus
on
the
needs,
wishes
and
requirements
of
the
customers
§ Define,
analyze
and
improve
customer
value
§ Is
the
organiza6on
structured
to
meet
customer
demand?
§ Are
knowledge
and
skills
of
the
employees
aligned
with
the
customer
demand?
§ Do
we
share
the
same
insight?
§ Analyze
the
current
and
future
process
§ Iden6fy
poten6al
improvements
§ What
value
does
this
process
add
to
the
customer?
§ Why
are
we
doing
this
work?
§ How
much
6me
is
spent
on
value
add
ac6vi6es
?
§ What
is
the
process,
team
and
individual
performance?
§ Implementa6on
of
KPIs
to
achieve
the
desired
results
Customer
centered
teams
Applica6on
Development
Applica6e
maintenance
Service
Management
Applica6e
Development
Applica6e
Maintenance
Service
Management
Applica6e
Development
Applica6e
Maintenance
Service
Management
17
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Doelstelling 0
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17
25
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-20
0
20
40
60
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21 22 23 24 25 26 27 Einde jaar
Doorgevoerd deze week Nieuw deze week Doelstelling
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Aantal verbeterpunten per week
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Burndoen Budget
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Kwaliteit Producten
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DUMMY
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het
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maximale
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%Storypointcq
Functiepuntengerealiseerd
% Budget cq uren gerealiseerd
Planningslijn
Nieuw, voorstel door
Gerbrand:
Fouten per regel code
opgeleverd product
Voorstel Gerbrand:
Uren per functiepunt cq
storypoint per iteratie
(velocity)
13

14. Empower
teams
to
operate
effec6vely:
delegate
&
facilitate
Board
Senior
Management
Realisa6on
Middel
management
Management
proces
Primary
proces
Board
Senior
Management
Realisa6on
Middel
management
Management
Proces
Primary
proces
Tradi6onal
organisa6on
Lean
organisa6on
14

15. Manage
6me
spent:
It
is
the
most
important
produc4on
factor
in
IT!
Why?
§ Understandable
on
all
levels
§ Not
stockable
Incidents
Problems
CoördinaGon
Earning
Capacity
Burning
Capacity
Projects
Changes
Service
req.
OperaGons
Overhead
15

16. Strive
to
perfec6on:
Reduce
Waste,
Variability
and
Inflexibility
Mo6on
Inventory
Over
processing
Defects
&
Rework
Wai6ng
6me
Transporta6on
Variability
§
Variability
in
volume
or
complexity
of
customer
demand
§
Spread
in
the
outcome
of
processes
Inflexibility
§ Team
capacity
cannot
scale
up
or
down
with
customer
demand
§ Skill
&
Knowledge
doesn’t
match
customer
demand
§ Batch
and
queue
opera6ng
model;
fixed
volumes
or
specifica6ons
§ Fixed
6ming
constraints
for
delivery;
change
windows
Waste
Overproduc6on

17. Key
to
success:
Consistency
in
the
way
of
measuring,
steering
and
working.
17
• Clear
goals
(value
statement)
• Change
story
• Management
Commitment
• KPI
tree
• Mo6va6on
• Visual
management
• Performance
dialogue
• KPI
dashboard
• Bestprac6ces
• Improvement
cycle
• Kaizen
• Improvemenreams

18. Kaizen
Kaikaku
Improvement
Implemented
Time
“Every
year
we
improve
2%
in
our
produc6on
processes
18
Incremental
small
steps
lead
earlier
to
visible
results
than
big
improvement
steps

19. KPI’s:
Keep
in
mind
what
you
want
to
achieve!
§ Contribu6on
to
customer
value
is
more
important
than
achieving
a
KPI
§ Managing
with
KPIs
is
a
balancing
act.
The
instrument
only
works
if
the
model
is
in
balance
§ At
the
organiza6onal
level,
KPIs
should
have
a
certain
tension,
for
example
between
Sales
and
Quality
§ Manage
the
trend
in
KPI
development
not
the
KPI
in
a
single
moment
19

20. 20
Ø SePng
the
Context
Ø Q&A
Ø Quick
Reality
Assessment
Ø Lean
IT
Content
Ø Key
elements
on
the
Road
to
succes
Ø Q&A

21. Organisa6onal
readiness
PiRalls
in
becoming
(and
remaining)
Lean.
§ Define
success
in
terms
of
business
value:
§ Problem-­‐Solu6on
mismatch
§ Become
Lean/
agile
is
not
the
goal,
it
is
a
means..
§ What
is
the
true
problem?
(5
WHY’s,
4
P)
§ Does
the
proposed
solu6on/improvement
address
the
Problem/Need?
§ Goal
steering
and
working
mismatch
§ Goal
sePng,
way
of
steering
and
working
in
a
PDCA
Cycle
§ Rather
unclear
or
unknown
expecta6ons!
§ Proper
authority
and
specific
support
from
management
granted
BEFORE
the
efforts
start?
§ Have
the
priori6es
been
mutually
set/agreed
by
Customer
management
and
teams?
§ Not
measuring
progress/results
§ Even
worse:
oven
organisa6ons
try
to
figure
out
if
they
were
successful
AFTER
improvement
ini6a6ve
took
place
§ Is
progress
frequently
being
measured?
(Exploit
repor6ng
and
data
collec6on
from
tooling!)
21

22. Assess
Business,
management
and
Teams:
Alignment
on
Lean
dimensions
§ Create
a
baseline
for
Improvement
cycle:
§ Where
are
we
now:
§ Importance
and
actual
performance
on
each
score
§ Measurement
of
Stakeholder
alignment
(conformity)
on
each
dimension.
§ Improvement
area’s:
§ Improvement
plan
for
next
stage
based
on
value
and
perceived
effort
tot
reach
next
plaworm
§ Combined
Expert
and
stakeholder
view
on
current
level
of
maturity.
§ “Sprint
review”
at
the
end
of
each
program
stage.
§ Do
we
develop
sufficient
progress.
§ What
should
we
develop
next
§ Create
commitment
momentum
frequently.
22

23. Lean
Quick
Reality
Assessment:
Quinterview
§ How
well
do
you
know
your
organizaGonal
strengths,
risks,
and
gaps
in
delivery?
§ Are
all
your
stakeholders
aligned?
§ What
are
your
areas
of
improvement,
and
where
should
you
focus
on?
§ Provides
objec6ve
analysis
and
recommenda6on
report
*
Provided
by
Quint
Wellington
Redwood,
accredited
APMG
ATO

24. 24
Ø SePng
the
Context
Ø Q&A
Ø Quick
Reality
Assessment
Ø Lean
IT
Content
Ø Key
elements
on
the
Road
to
succes
Ø Q&A

25. (Bumpy)
Road
to
success
§ Making
steps
is
not
the
same
as
dancing
tango
§ Define
success
in
business
value
and
s6ck
to
it…
§ Doing
daily
stand-­‐ups
is
important,
but….
§ asking
the
right
ques6ons
and
taking
early
ac6on
is
really
important.
§ “Plan
Do
Check
Act”
§ Together
with
business:
define
value,
evaluate
§ Within
teams:
use
simple
tools,
enhancing
interac6on,
based
on
facts
§ Create
short
feedback
cycles
and
small
steps
§ Create
stable
teams
competent
for
the
job
§ Don’t
focus
too
much
on
process,
focus
on
deliverables
crea6ng
business
value
§ Get
in
control
on
team
level
§ Don’t
scaling
plans
up
too
early…
§ Remember
Tucker:
§ Give
teams
6me
to
grow
§ Give
them
appropriate
coaching
§ Lean
Leadership….
25

26. Q&A
26

27. 27
w
w
w
.
q
u
i
n
t
g
r
o
u
p
.
com
Voor
verdere
informa6e
of
vragen
kunt
u
contact
opnemen
met
:
Hans
Smorenburg
H.Smorenburg@quintgroup.com
D a r e t o c h a l l e n g e
Postbus
2345
1180
EH
Amstelveen
The
Netherlands
+31
(0)20
305
3721
(Office)
+31
(0)6
3101
3874
(Mobile)