The document discusses applying lean principles to IT. It begins by explaining that value in IT comes from information, not functionality alone. It then describes how IT work can be visualized through multiple interconnected value streams. The document advocates understanding real work, streamlining communication, simplifying processes, and using hypothesis-driven problem solving. It provides an example of applying these principles to processing client records. Finally, it discusses challenges of continuous process improvement in IT and offers examples of areas where lean has been applied successfully.

1. Copyright © Institut Lean France 2011
Lean IT From Theory to Application
Moving beyond the what to the how!
Mike Orzen
Lean Enterprise Institute
The Shingo Prize
www.maorzen.com

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Level Set
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Paradigms
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Where is Value in IT?
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The IT Myth
• IT enables people to solve problems and
create value
Information is primary
Functionality is secondary
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The “Weave”
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7. IT Services Value Streams
Governance, Budget
Enterprise Architecture
Prioritization, Delivery
PMO and Resource Mgt.
Portfolio Mgt.
Infrastructure Engineering
App Dev/Maintenance,
Operations
Help Desk & Support
Application Delivery Value Stream
Service Desk Value Stream
Security, Stability Value Stream
Client Services Value Stream
© Copyright 2011 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved. 7

8. IT Services Value Streams
Governance, Budget
Enterprise Architecture
Prioritization, Delivery
PMO and Resource Mgt.
Portfolio Mgt.
Infrastructure Engineering
App Dev/Maintenance,
Operations
Help Desk & Support
Application Delivery Value Stream
Service Desk Value Stream
Security, Stability Value Stream
Client Services Value Stream
© Copyright 2011 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved. 8

9. IT Services Value Streams
Governance, Budget
Enterprise Architecture
Prioritization, Delivery
PMO and Resource Mgt.
Portfolio Mgt.
Infrastructure Engineering
App Dev/Maintenance,
Operations
Help Desk & Support
Application Delivery Value Stream
Service Desk Value Stream
Security, Stability Value Stream
Client Services Value Stream
© Copyright 2011 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved. 9

10. Copyright © Institut Lean France 2011
About the “Weave”
• The good: expertise and
execution/collaboration and
communication
• The bad: silo based thinking, local
optimization, conflicting priorities
• The ugly: unnecessary complexity and
tech debt
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IT vs. Lean - Behaviors
• Firefighting to methodical cadence of work
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4 Steps
1 Understand the real work
2 Streamline communication
3 Simplify the process
4 Adopt hypothesis-driven problem solving
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Projects
Business
Problems
Barriers &
Opportunities
Counter
Measures &
Solutions
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Working Sequence
Process • Quality,
Speed,
Improvement Cost
Information • Accurate, Timely,
Actionable, Formatted,
Requirements Accessible
• Stable,
System
Trusted,
Requirements Secure
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An Example
• “Know the business better than the
business”
• 4 DNA elements applied to information
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Processing “Client” Records
1. Specifications document all work
processes and include content,
sequence, timing and outcome.
VSM
Volume, quality and timing measures
Focused process mapping
Problem solving
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Processing “Client” Records
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Processing “Client” Records
2. Connections with clear YES/NO signals
directly link every customer and
supplier.
Collaborate all the players
Coordinate information systems
Establish clear signals and business rules
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Processing “Client” Records
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Processing “Client” Records
3. Every product and service travels a
single, simple and direct flow path.
Clearly define the target value stream
Keep it simple and direct
Coordinate information systems
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Processing “Client” Records
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Processing “Client” Records
4. Workers at the lowest feasible level,
guided by a coach, improve their own
work processes using scientific
methods.
Keeps the people closest to the work engaged
in CPI
Keeps work instructions from becoming
“invisible”
Works as a disinfectant to reactive firefighting
behavior
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Processing “Client” Records
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Why is Lean IT So Difficult?
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The Trouble with CPI and IT
• Conflicting forces
• Event-driven thinking
• Culture of heroic effort
• Leading with technology to solve a process
problem (missing the point)
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Examples of Applied Lean IT
• Server Deployment
• App and H/W Maintenance
• Dev/Ops Coordination
• Break/Fix Process
• Offshore Coordination
• Coverage Process
• Help Desk
• Prioritization
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Questions & Comments
Mike Orzen
Lean Enterprise Institute
The Shingo Prize
www.maorzen.com
Twitter: MikeOrzenLeanIT
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www.lean-it-summit.com