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ALE2011 Stephen Parry on ICT Value Chain
The document discusses creating an integrated ICT value stream using Lean and Agile thinking. It addresses separating myths from reality, the problems with traditional approaches, and managing and measuring for value. Specifically, it notes that the traditional functional unit approach can create an infeasible whole. It also discusses that Lean and Agile aim to surface problems so teams can solve them, rather than hiding problems. Finally, it introduces the CORE profile for defining and measuring value in a Lean environment.
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ALE2011 Stephen Parry on ICT Value Chain
- 1. Creating an integratedICT value stream using Lean and Agile thinking ALE September 2011 Stephen Parry See Business Differently stephen.parry@seebusinessdifferently.com Twitter: Leanvoices Blog: Leanvoices.com Linkedin Author of Sense and Respond (MacMillan). Visiting Fellow to the Lean Enterprise Academy Lean IT Strategy Advisor © Copyright Stephen Parry 2011 all rights reserved.
- 2. 1.Separating myth fromreality. 2. What is wrong with the traditional approach? 3. Managing and Measuring for value. 4. Redesigning a fragmented ICT value stream. 5. Sustaining Lean and Agile environments to deliver long-term profitability. © Copyright Stephen Parry 2011 all rights reserved.
- 3. 1. Separating mythfrom reality © Copyright Stephen Parry 2011 all rights reserved.
- 4. Lean Myth Busters: You won’t find Lean in the tools and methods. It’s not about optimising waste; it’s about optimising value. It’s not about managers fixing everything; it’s about the staff owning and solving problems. It’s not only about processes; it’s about the whole service model and the ICT life-cycle. It’s not about efficiency at all costs; it’s about effectiveness at the right cost. This incorporates software development and innovation. © Copyright Stephen Parry 2011 all rights reserved.
- 5. Lean and Agile: Problem Solving Organisations Traditional organisations tend to keep problems hidden… you must not admit them…. If you do, then YOU become the problem. Lean and Agile combine into a whole organisation or system designed to surface problems so that teams can solve them…. The assumption being that the problem is in the design of the ‘System’ and the way it conditions our thinking, not the people themselves. © Copyright Stephen Parry 2011 all rights reserved.
- 6. The organisation isa hindrance to both employees and customers. Organisational Performance is a matter of having Transformation Choice Policy which is a matter of Role Design Freedom Processes and Procedures with the Performance Measures Power Technology to do what matters for customers. Matter of Design © Copyright Stephen Parry 2011 all rights reserved. So who do you need to ‘be’ to take action?…
- 7. 2. What iswrong with the traditional approach? © Copyright Stephen Parry 2011 all rights reserved.
- 8. The customer/service userchallenge: They don’t have time………….they say things like: Solve my problem, completely. Don't 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 © Copyright Stephen Parry 2011 all rights reserved.
- 9. Question: What would ICT organisations do if they had to pay for all the operational and service user time they wasted? Adapted from Lean Solutions: Jim Womack and Dan Jones by Stephen Parry © Copyright Stephen Parry 2011 all rights reserved.
- 10. Traditional approach: Feasibleparts creating an infeasible whole. Functional units F1 F2 F3 F4 Fn Independent It’s not unusual S1 S2 S3 S4 Sn Solutions to have thirty Designed to or more Meet functional solutions lining Targets and up for attention Goals. Throughput process © Copyright Stephen Parry 2011 all rights reserved.
- 11. Traditional approach: Feasibleparts creating an infeasible whole. Functional units F1 F2 F3 F4 Fn Independent It’s not unusual S1 S2 S3 S4 Sn Solutions to have thirty Designed to or more Meet functional solutions lining Targets and up for attention Goals. Improved Customer Experience ? © Copyright Stephen Parry 2011 all rights reserved.
- 12. 3. Managing andMeasuring for Value What to measure in a Lean environment © Copyright Stephen Parry 2011 all rights reserved.
- 13. CORE Profile: Valuedefinitions 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. © Copyright Stephen Parry 2011 all rights reserved.
- 14. CREATE VALUE BIN Nothing in here because no one was looking OPPORTUNITY TO CREATE VALUE BIN RESTORE LOST VALUE BIN Application Problem EXTERNAL LOST VALUE BIN Progress Engineer Chase Customer Purpose Defines Value, Not arrived What was once seen as Value is now seen as WASTE Provide 3rd Party Repeat Installation Quote Can’t Supply all in addition to the 40% rework. Fault There is no value in fixing symptoms. Fix the Road not the Tyres. Slow Computer Move Escalation Network is not working Equipment Customer Purpose = Business Outcomes © Copyright Stephen Parry 2011 all rights reserved.
- 15. CORE Profile: ICTsupport operations Before changing the service. Create 8% Opportunity 2% Remedial 80% External 10% © Copyright Stephen Parry 2011 all rights reserved. Source Fujitsu Case Study: Sense and Respond Book Used with kind permission
- 16. CORE Profile: ICTsupport operations after changing the service. Create 50% Opportunity 12% Remedial 33% External 5% © Copyright Stephen Parry 2011 all rights reserved. Source Fujitsu Case Study: Sense and Respond Book Used with kind permission
- 17. CORE Profile forGlobal IT end user application support (November 2009) © Copyright Stephen Parry 2011 all rights reserved.
- 18. 4. Redesigning afragmented ICT value stream Changing thinking, feelings and perceptions of management and staff. © Copyright Stephen Parry 2011 all rights reserved.
- 19. Looking at customerdemand and impact: Diagnosing how much waste is created 18 with poor applications, systems and processes. © Copyright Stephen Parry 2011 all rights reserved.
- 20. Averages throw awaythe data for improvement 19
- 22. 5. Sustaining Leanand Agile environments to deliver long-term profitability. Changing the Climate by changing the design, measurement, job roles and management behaviours © Copyright Stephen Parry 2011 all rights reserved.
- 23. Lean and Agile:Creating a learning and problem solving climate. Climetrics ® Model Sense Making and Sharing Learning Listen and Adapt Leadership Understanding and defining Engaging Customer needs Leading Lean and Agile Climate Improving Innovation and Improvement © Copyright Stephen Parry 2011 all rights reserved.
- 24. Lean and Agile,Creating a learning and problem solving climate. Climetrics ® Model Understanding and defining Customer needs Engaging Does the job design allow all staff to engage with customers and users? To what extent can staff modify solutions without management permission? Is everything forbidden unless permitted, or is everything permitted unless forbidden? © Copyright Stephen Parry 2011 all rights reserved.
- 25. Lean and Agile,Creating a learning and problem solving climate. Climetrics ® Model Sense Making and Sharing Learning Do staff routinely share business intelligence and improvement information with senior management ? What is the management focus? - employee utilisation, cost reduction and work intensification or creativity, customer outcomes, problem solving, learning and sharing knowledge? © Copyright Stephen Parry 2011 all rights reserved.
- 26. Lean and Agile,Creating a learning and problem solving climate. Climetrics ® Model Listen and Adapt Leadership Leading Do Leaders foster a no-blame climate to surface problems for teams to work on? Do leaders routinely spend time at the workplace solving front-line issues with the staff? Do leaders pay more attention to efficiency-driven functional targets or end-to-end effectiveness at creating customer and user outcomes? © Copyright Stephen Parry 2011 all rights reserved.
- 27. Lean and Agile:Creating a learning and problem solving climate. Climetrics ® Model Innovation and Improvement Improving Do employees influence end-to-end business processes? What influence does staff have over improving the measurement system? What influence do employees have on improving products and services? © Copyright Stephen Parry 2011 all rights reserved.
- 28. From first tolast: 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 difference between helping people to see and 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. © Copyright Stephen Parry 2011 all rights reserved.
- 29. Sense and Respond: Thank you for listening The Journey to Customer Purpose seebusinessdifferently.com Susan Barlow, Stephen Parry and Mike Faulkner. LeanVoices.com BLOG Twitter: LeanVoices Learning Engaging Leading Lean and Agile Climate Improving © Copyright Stephen Parry 2011 all rights reserved.