A story of lean IT transformation by Jean Cunningham - European Lean IT Summit 2012

Copyright © Institut Lean France 2012

This is the story of a lean transformation that
occurred within the IT organization in a large, global
company. Learn how this department launched their
lean efforts, piqued internal interest, created
capability and transformed their approach to IT
operations with lean thinking. They utilized all the
lean tools and not only conducted cross-functional
improvement activities with dramatic results, but also
created a culture of everyday improvement that
continues to advance lean waste reduction to this
day. This IT organization became the symbol of
change, improvement and leadership for the entire
company.

JeanCunninghamConsulting.com 1


22 & 23 November, 2012
Paris, France

Launch Lean in
a Global IT Organization
European
Lean IT Summit 2012
with
Jean Cunningham


Building LEAN Beyond Manufacturing

• Founder and president
• Lean accounting and lean
office pioneer
• Former CFO, Lantech, Inc.
• Former CFO, Marshfield
Managing Times Press, 2003 Productivity Press, 2007 Door Systems
Shingo Prize, 2004 Shingo Prize, 2008



Global Enterprise
• Well known innovator in manufacturing and
distribution
• Consumer-based household products
• Global
 150 countries
 Used by 25% of world population daily
 Products have #1 or #2 market share in 80
countries
• 800 IT professionals globally plus global
external IT partners



Timeline

Discovery May-Oct 2008
Launch Dec 2008
Develop Team Q1 2009
Introduce to IT personnel Q2-Q4 2009
IT Lean Team Leadership FY 2010
Expansion FY 2011
Value Add IT FY 2012



Discovery, May-Oct 2008

• Operation led

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Information Systems

Human Resources

Accounting




• Finance interest via workshop
• Manufacturing IT support internal
workshop
• Global finance workshop
 Three problem events
 IT executive spends five days with finance



? ?
n N ew
Lea
ew
N ormal N

Maintenance

“ Can Lean be an answer?”


Launch, Dec 2008

• Approval from CIO for trial
• Find external support / coach
• Identify key team members and leader
• Three day introduction
Day 1 Lean introduction to key team
Day 2 AM Lean Introduction to large IT group (40 people)
Day 2 PM Mini-kaizens
Day 3 AM • Portolio Management (15 team members)
• Cost Management (10 team members)
Day 3 PM Presentation, “Ah ha” moments



Develop Team, Q1 2009
• Dedicate resource
 1 team leader
 5 full time
 All top performers
 All in U.S.A.
• Scope, objectives, &
quarterly plan
 Personal development
 Introduce Lean
 Build awareness
• “What does this mean to me?”



Introduce to Personnel, Q2-Q4 2009

• Consultant led initial • Internal tools
kaizen events;  8 wastes
shadow by key leads  Kanban
 Small enhancements  Visual Management
 Launch SharePoint • Added extended team
sites
members
 Regulatory
 Global
 Access management
 Part-time
• Quick & Easy boards  Functional



IT Lean Team Leadership, FY 2010

• Problem area focus events
• Lean education to all IT
• Working cross functional
• Metrics for lean team
 % of people trained
 # of people in events
 Q & E improvements
 Events held



IT Lean Team Leadership, FY 2010

• Team skill development tools
 Value stream mapping
 8 wastes
Teach Know
 Pull Others About
 Kanban
Fully With
 Standard work Able Help

 Metrics



Expansion, FY 2011
Corporate Initiative
Corporate Initiative
Human Resources  Finance  Legal  IT
Human Resources Finance Legal IT
• Selected a consulting firm guide
• Six sigma as “competition”
• Pre-selected problems
 Current state evaluated prior to the event
• Not IT “way”
• Confusion / check the box
• Existing team members recruited to more
senior positions
• New team members added


Value Add IT, FY 2012

1. Focus on business management IT
 Functional leader driven
 Teach leaders to see problems
 Teach problem solving
 Lean team supports leaders



Value Add IT, FY 2012

2. Organization development
 First IT lean leader promotion to senior
operations
 Lean IT team members
promoted and act as leaders
with lean
 Second IT lean leader selected
as development opportunity
 Risk that some team members
not moving off team



Lean IT Transformation

Consulting
Consulting
Analysis

Analysis Transactions

Transactions



Summary and Results

• Lean as a business strategy not an
initiative
• Importance of daily improvement focus
• Commitment of “free resources”
• Value of coach; not consultant



Summary and Results

• Not a quick fix
 Year 2
 95% trained
 30% involved in kaizen
 Year 3
 Global involvement fully
 Zero overhead growth
 Year 4
 Average delivery of application up 300%
 Pulling external work inside



Lean IT Principles

1. Automate only if it is easier, faster, and complements
your culture.
2. Build commonality to increase visibility and access to
information.
3. The primary purpose of security is to avoid data
corruption and provide information access.
4. Nothing lasts forever.
5. System and software inflexibility can be the greatest
inhibitor of change.
6. Plain English system instructions are better than
shorthand.
20
JeanCunninghamConsulting.com


Lean IT Principles
7. Keystrokes matter to power users.
8. Capture everything you can about your customer.
9. Archive customer history; clean house on internal
transactions.
10. Capture information once and be done.
11. Use commonality to create an information highway.
12. Productivity for all is more important than productivity
for one.
13. Huge data stores are easy to manipulate.

21
JeanCunninghamConsulting.com


JCC Products and Services
• Lean Office Workshops
• Business Process Kaizens
• Lean Accounting
• Lean Human Resources
• Lean IT and IS Migration
• Strategic Deployment Planning
• Lean Metrics
• Lean Financial Statements


Contact

Jean Cunningham

Email: jean.cunningham@leanjcc.com
Phone: 224.688.3504



22 & 23 November, 2012
Paris, France

Launch Lean in
a Global IT Organization
European
Lean IT Summit 2012

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A story of lean IT transformation by Jean Cunningham - European Lean IT Summit 2012

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