Steve Bell - Lean IT @ 7. Kongres itSMF Polska 2014

9/16/2014
Lean IT Service Management
1 © Lean IT Strategies, LLC All Rights Reserved
But you can’t tell a large
2
bank, insurance
company, or airline to
“just be like Google”
Established
Enterprises
Must Disrupt
Or Be
Disrupted
© Lean IT Strategies, LLC All Rights Reserved
Copyright Lean IT Strategies, LLC presented to
itSMF Poland Sept 11, 2014 1

9/16/2014
Question of the day
How can the principles of Lean IT be applied
to IT Service Management in a large, existing
organization with significant legacy IT
architecture and culture, to continuously
improve and innovate towards stability,
speed, agility and continuous delivery ?
To understand how Lean IT
can help, we must examine the
principles:
• Engagement
• Flow of value
• Leadership

9/16/2014
Engagement
5
Source: Pierre Masai, CIO, Toyota EMEA
Flow of value
6
1. Specify what creates value from the
customer’s perspective
2. Identify all steps across the whole
value stream
3. Make those actions that create value flow
4. Only make what is pulled by the customer
just in time
5. Strive for perfection by continually
removing successive layers of waste

9/16/2014
Leadership
Most organizations think and function in vertical silos,
but all Value Flows horizontally
Teams should:
Be responsible for their processes
Make the work and problems visible
Continuously solve problems cross-functionally to
drive improvement and innovation
“The Lean manager realizes that no manager at a
higher level can or should solve a problem at a lower
level; problems can only be solved where they live, by
those living with them” Jim Womack
8
Your current processes are perfectly designed to take
up (over) 100% of the people’s time working in them
Waste is disguised as useful work
Source: David Balestracci, Quality Improvement:
Practical Applications for Medical Group Practices

9/16/2014
9
Waste – Process not People
• Does not indicate employees are deficient or
not working hard
• Causes people to work too hard as they put
out fires, deal with interruptions and rework
mistakes
• The result of bad processes and systems,
not bad people!
The strategic journey of an established IT organization
20%
Grow and Transform
80%
Keeping
Lights
On
50%
Grow and Transform
50%
Keeping
Lights
On
Development
& Innovation
Operational
Excellence
10
Source: Steve Bell, Run Grow Transform 2012

9/16/2014
Degrees of Uncertainty
20%
Grow and Transform
80%
Keeping
Lights
On
50%
Grow and Transform
50%
Keeping
Lights
On
Uncertainty
Standards
11 Source: Steve Bell, Run Grow Transform 2012
Lean
Development
Development
Uncertainty
Variation
Learning
Lean
Production
Operations
Standardization
Variation reduction
Process efficiency
Process efficiency Learning

9/16/2014
Run
Operational Excellence
Continuous Improvement
Incremental change
Uncertainty is low
Transform
Imagination Creation
Disruptive innovation
Radical change
Uncertainty is high
Capitalize on innovation
with effective operations
Grow
Commercialization
Sustaining innovation
Step change
Uncertainty is moderate
Revenue
Growth
Funds
Innovation
13 Source: Steve Bell, Run Grow Transform (2012)
Traditional IT is isolated fromits customers
CIO
IT Related
product/service
development
Development Operations Support Advisory

9/16/2014
How do we connect with value?
15
value stream
just in time
Definition of “Service”
Contribution to the welfare of others
Merriam-Webster dictionary
16

9/16/2014
17
Value hypothesis
Customer Facing services (SLA)
Request and delivery method and
performance metrics as seen through the
eyes of the customer (business and/or end
customer-consumer)
• Application (provision, integrate, develop)
• Infrastructure (provision, integrate, develop)
• Professional services (strategic advisory, improvement,
• Support (Incident and Knowledge management)
Supporting Technical services (OLA)
Request and delivery method and performance
metrics as seen internally by technical teams
education, architecture, data management, security, etc.)
• All technical components utilized (directly or
• Management activities of the technical stacks
• Event, Change, Problem management
Supporting Administrative services (OLA)
Request and delivery method and performance
metrics as seen internally by administrative teams
indirectly) by the customer facing services
• Governance
• Finance
• HR
• Sourcing
• PMO, SMO, Lean, other offices
How do we continuously improve?
18
value stream
just in time

9/16/2014
19
“Kaizen”
Kai means “To improve”
Zen means “For the better”
“Kaizen” simply means continuous improvement
Kaizen starts with a vision for the customer
Where are we?
How do we know?
20
Current
Condition
Target
Condition
Challenge
Vision for
Customer
Strategic Intent
Inspiring vision for
the future
What will make us
awesome in our
customers’ eyes?
Leadership sets a
challenge:
How do we
stretch together
to achieve what
we believe is
difficult or
perhaps
impossible
What operating
pattern are we
aiming for in
1 week to 90 days
It’s beyond our
current
knowledge
threshold so we
have to learn
Kaizen
Problems
Obstacles
PDCA
One experiment
at a time
Quick
iterations,
measure each
outcome
Practice and
learn
Obstacles
Parking Lot

9/16/2014
How do we integrate the enterprise?
21
value stream
just in time
Are IT value streams a Black Box or Black Hole?

9/16/2014
These are IT
Services!
23
Lean IT has two aspects:
1. Outward-facing - supporting the
continuous improvement of business
processes, and
2. Inward-facing - improving the
performance of IT processes and
service delivery.
Business stakeholders
and process steps
IT
Service Management
Integrated Value Stream
Operating Model
Kaizen
Team
Program
Learning
Value Stream Team:
• Business process owner
• IT service owner
• Data/analytics
• Coach
24
External
Customer
Value Stream
Development
Operations
Technology stacks
Kaizen
Bus Process
Improvement
External Svc Providers
DevOps
ITSM/ITIL Agile
Integrated Team: line of sight to customer value
Kaizen
e.g.
Backlog
Mgmt
Kaizen
e.g.
Problem
Mgmt

9/16/2014
End-to-End Flow of Value
It’s about more than delivering software faster!
Source: Steve Bell, 25 Run Grow Transform (2012)
The Importance of
Visual Management
26
“Making the invisible visible”

9/16/2014
Supported by visual management to
help spot problems and guide action
Communicate process standards and actions

9/16/2014
Visually trigger a response to a defect
Do not pass on a problem, solve it!
Visual Workload Management
30

9/16/2014
Kanban
Visualization of:
31
Demand
Priority
Load/Capacity
Flow
Responsibility lanes
Fast/Slow lanes
Problems
Demand Backlog
Work In Process
Problem
Measure
32
Develop analytics and visualization
for effective problem solving

9/16/2014
Lean Leadership
Behaviors
33
“Empowerment without alignment is chaos”
Peter Senge, Fifth Discipline

9/16/2014
Lean transformation focus
35
Leadership
Middle
Management
Clarity of purpose and goals
Strategy deployment
Enterprise value stream architecture
Focus on systemic overburden and variation
Executive champion engagement
Teams and
Individuals
Value Stream Ownership/Management
Problem solving
Visual management
Coaching/mentoring
Standard work
Workload mgmt
Visual management
Daily improvement
What behaviors do we seek?
Comfort with problems
Thinking deeply about what
the problem really is
How far “to the left” can we
define the problem?
No departmental boundaries,
value stream view
End customer focus
Foster ownership and
responsibility
36
Don’t tell . . . Ask what do you
see? Why?
Relish problems, spend most of
the agenda on them
Walk the process in detail
Use problem solving tools
overtly
Be the voice of the customer
Avoid sub-optimized metrics
Emphasize learning and practice
Source: Lean Enterprise Institute

9/16/2014
The Danger of Implementation Thinking
Having an implementation orientation actually impedes our
organization's progress and the development of people's
capabilities.
The way from where we are to where we want to be next is a
gray zone full of unforseeable obstacles, problems and issues
that we can only discover along the way. The best we can do is
to know the approach, the means, we can utilize for dealing
with the unclear path to a new desired condition [the lean
problem solving approach] not what the content and steps of
our actions- the solutions - will be. If someone claims certainty
about the steps that will be implemented to reach the desired
destination, that should be a red flag to us.
Mike Rother, Toyota Kata
The Risk of “Implementing” ITIL
It’s possible to implement ITIL but not solve problems at
their root causes and deliver little sustaining value
It’s possible to implement ITIL without engaging people
and the overall organization in an authentic cultural
transformation
IT organizations should start with Lean Thinking rather
than leading with ITIL tools and techniques
The ITIL toolbox provides good practices that should be
viewed as potential target conditions to be
experimented upon by the team
38 38 © Lean IT Strategies, LLC All Rights Reserved

9/16/2014
Lean thinking is not a methodology or a framework,
it’s a practice . . . learning through experience and coaching
Lean = Learn
Knowledge is an unending adventure at the edge of
uncertainty.
Jacob Bronowski, Scientist
Author of The Ascent of Man
40
It’s easier to act your way to a new way of thinking,
than to think your way to a new way of acting.
John Shook
Lean Enterprise Institute

9/16/2014
41
Next Master Class
Lean IT Summit, Paris
October 15, 2014 www.lean-it-summit.com
SteveB@LeanITStrategies.com

Steve Bell - Lean IT @ 7. Kongres itSMF Polska 2014

More Related Content

What's hot

Viewers also liked

Similar to Steve Bell - Lean IT @ 7. Kongres itSMF Polska 2014

More from Fundacja Governica

Recently uploaded

Steve Bell - Lean IT @ 7. Kongres itSMF Polska 2014