This document discusses designing for benefits realization using a Lean approach. It begins with an introduction to Lean thinking, defining it as a process-oriented system that can deliver enhanced performance for customers. It then discusses designing for benefits realization at the strategic level, including agreeing on a change agenda through hoshin planning and establishing program governance. The document also covers consideration of the landscape being changed using Lean principles like standardizing processes and aligning resources to work. Managing the transition from projects to business as usual is discussed as well.

1. Designing for benefits realisation
with a Lean approach
Ian Ashley
The Change People
16th April 2013
Email : idashley@live.co.uk
Tel : 07909 898625

2. 12Agenda
 Introduction / Credentials
 Definition of Lean
 Designing for Benefits Realisation
 Managing implementation challenges
 Q & A
The Change People April 2013

3. 12
Introduction / Credentials
The Change People – niche consultancy focussed on the people
and process dimensions of change, engaging on business
transformation programmes and IT implementations.
Direct operational experience in Finance, IT, Supply Chain,
Procurement, HR.
Applied lean thinking / process improvement across a range of
sectors including automotive, aerospace, pharmaceuticals, utilities
and the NHS.
Consulted / led programs and workstreams on IT implementations
in Retail, Oil & Gas, Distribution, Automotive
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4. 12
What is Lean ?
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5. 12
What is Lean ?
A process orientated system of working able to
deliver significantly enhanced performance for
Customers and other stakeholders.
The description ‘lean’ first appeared in 1990 in a book
detailing the working methods of Toyota as it out-
performed all other global automotive manufacturers.
Just In
Time
World Class
Productivity
Jidoka
Standardisation
Initially
highlighting
Tools and
Techniques
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6. 12
The key principles of Lean
Lean Thinking (1996), James P. Womack and Daniel T. Jones
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7. 12
Exercise
For the Organisation you work in :
 Who are your Customers ?
 What are they prepared to pay for ?
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8. 12
Distinguishing between ‘business as
usual’ and projects
 Business as Usual
• Business functions / departments perform activities to
ultimately deliver outcomes for customers.
• Can be categorized as value adding, essential non value
adding or non value adding (waste)
 Projects / Programs / Portfolios
• Changing some aspect of Business as Usual
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9. 12
Recognising the Wider Context
It’s a System –
not just a set of
tools
Things should be
made as simple as
possible, but not any
simpler.
Albert Einstein
Burke-Litwin Model
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10. 12
Designing for Benefits Realisation at the
Strategic Level
1. Agreeing the Change Agenda
• Hoshin planning (Policy Deployment) is an effective method for identifying
the ‘vital few’ strategic projects.
• Positive de-selection of projects given limited resources and funding.
• Resources aligned at organisation level onto strategic agenda rather than
determined within each business function.
2. Programme Governance
• PMO established with Programme Manager appointed to manage risks,
issues and resource contention.
• Regular reviews at Board level to add, remove and refine projects
throughout the year to reflect changing context.
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11. 12
Designing for Benefits Realisation at the
Strategic Level
Example Policy
Deployment Matrix
..........A Management Compass (Bechtel)
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12. 12
Consideration of the landscape being
changed - key features of a lean model
1. Measures drive behaviour.
• Appropriate Quality, Cost, Delivery (Q,C,D ) measures linked to the primary
output of a department or process can drive employee engagement to
deliver incremental benefits every day by removing waste.
2. Codify how the work is to be done, right first time, flow.
• Standard operating procedures reflecting best practice underpinning robust
process design.
3. Align resources to the work required.
• Establish the principle of completing a day’s work in a day.
4. Visual Management
5. Team Leader / First Line Supervisor role is crucial
• To ensure work is executed the way it’s been designed and there is enough
resource (daily / hourly).
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13. 12
Waste
Non-value adding activities, or waste, can be categorised into 7 areas :
 Transport movement of materials
 Inventory all supplies and materials being used
 Motion unnecessary people movement due to workplace design
 Waiting waiting for the next process step
 Overproduction producing more than is needed or ahead of demand
 Overprocessing unnecessary activities or design features
 Defects the effort involved in inspecting for and fixing errors
T I M W O O D plus.......
 Untapped human potential loss of creativity and discretionary effort
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14. 12
Exercise
For the Organisation or Project you work in :
 What waste can you see ?
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15. 12
Business as Usual is a key point of
integration
Customer
Requirement
 Processes and procedures
• Define , unambiguously what needs
to be done
• Well designed and aligned to
organisational values and policies
 People
• Fully trained in agreed procedures,
focussed by relevant measures
• Actively managed but encouraged
to solve problems
• Technology
• Designed to support the end to end
process as well as functional
requirements
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16. 12
• A lean model requires tangible project deliverables that
can indicate business readiness :
 Integrated Standard Operating Procedures (SOP’s) – not just
IT user guides
 SOP competency matrices to identify individual training
requirements and create job role clarity
 Impacts on resource levels – will the work require less or
more man hours?
 How will the project impact departmental Quality, Cost,
Delivery measures ?
 Potential for some to be negative with higher benefit elsewhere
 Use the concept of process trials to enable end users
to deeply understand the impact on their jobs.
Managing a project transition to ‘business
as usual’
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17. 12
Agenda
 Introduction / Credentials
 Definition of Lean
 Designing for Benefits Realisation
 Managing implementation challenges
 Q & A
The Change People April 2013

18. 12Recommended Reading
Lean Thinking
James Womack, Dan Jones & Daniel Roos
Double Loop Learning ( Harvard Business Review Article)
Chris Argyris
The Lean Toolbox
John Bicheno
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19. 12
Q & A
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