This document discusses how Lean principles can be applied to Business Continuity Management (BCM) programs to deliver more value while reducing waste. It outlines six Lean principles - value, value stream, flow, pull, perfection, and respect for people - and provides examples of how each can help optimize BCM programs. The document argues that focusing first on understanding stakeholder needs and eliminating non-value added activities can help BCM programs achieve their objectives in a more efficient manner.

1. Banishing Waste and Delivering Value in Your BCM Program
Session B19: Milen Kutev, MBCP, SCPM, PMP
British Columbia Automobile Association / BCAA
Lean Times Require
Lean Thinking

2. more than 25 years program & project delivery
active member of the PMI Lean Program Management CoP
editor for PMI’s Standard for Program Management –3 ed
last 10 years primary managing BCM/DRP/ERM programs
Why am I talking today ?

3. Business Continuity: capability of the organization to continue delivery of products or services at acceptable predefined levels following disruptive incident
Stakeholder (Interested Parties): any group or individual that can affect or that is affected by the achievement of the enterprise’s objectives.
BCM Program Objective: building organizational resilience with the capability of an effective response that safeguards the interests of its key stakeholders, reputation, brand and value-creating activities
Let’s set the baseline (ISO 22300 definitions)
Capabilities
Confidence
Competencies

4. What are the biggest challenges for you?
Source: The guide to Lean Enablers…

5. So, what is Lean thinking anyway?
a set of concepts, principles and tools used to create and deliver the most value from the customer’s perspective, while consuming the fewest resources and
fully utilizing the skills and knowledge of those who do the work.
PURPOSE
PROCESS
PEOPLE
Customers / Stakeholders
Value
Value Stream
Flow
Pull
Perfection
Respect

6. Value: particular worth, utility, benefit, or reward that stakeholders expect in exchange for their respective contributions (resource & money) to the enterprise.
Customer: refers to those which are immediately in the downstream from you. It may be internal customers or external customers or end beneficiary.
(Extended) Enterprise: a complex, integrated, and interdependent system of people, processes, and technology that creates value as determined by its key stakeholders (including partners, vendors, regulators and customers).
Learn the new Lean words
based on: MIT´s Lean Advancement Initiative LEM

7. 1. CAPTURE THE VALUE DEFINED BY THE KEY STAKEHOLDERS
Lean principles and enablers for BCM programs
Stakeholders
Value
Value Stream
Flow
Pull
Perfection
Respect

8. …This discussion demonstrated the continuing difficulty of distinguishing between metrics relating to valueand metrics relating to compliance, completeness, and effectiveness, which serve different purposes.
It raises a question in our minds as to whether directly measuring value is feasible. Perhaps the other metrics serve as indicators that value is being delivered, even if they are not direct measures…
Do we agree what value is? Really ??
Source: BCI “The measurement of the value contribution of BCM” study 2012-2014

9. Think back from stakeholders needs
Source: ISO 22313-2012

10. Benefits & dependencies mapping
Based on: OGC Managing Successful Programmes, 2011
Project Output / Capability(e.g. new emergency notification system- ENS) Intermediate Benefits & Quick Wins(e.g. simplify notification process and eliminate manual rosters) Organizational Change(e.g. integrate ENS within IT incident management) Sustained Benefits(e.g. consistent and efficient notification and escalation during regular and off-hours) Strategic Objective(e.g. improve IT service support & 24x7 availability) enablesprepare to realizeenablesin turn realizesenableshelp achieve one or more

11. Let’s repeat, one more time:
satisfaction of needs (benefits) *
as defined by stakeholders
use of resources (contribution)
money, people, time,
energy, materials, contracts
Value 
Based on: OGC Management of Value, 2012
* provided at the right time at an expected quality

12. Focus only on activities that add value
There is nothing so
useless as doing well
that which should
not be done at all
Peter Druker

13.  Establish the value and benefit of the program to the stakeholders
 Prioritize benefits by strategic alignment and resource needs
 Focus all program activities on the high priority benefits that the program intends to deliver
 Assign responsibility and accountability for benefits realization
 Frequently engage the stakeholders to assess the benefits throughout the program lifecycle
 Develop high-quality program requirements among key stakeholders before to start execution or RFP contracting
 Clarify, derive and prioritize requirements early, often and proactively
 Actively minimize the bureaucratic and compliance burden on the program and projects
Value –Lean enablers for you

14. 2. OPTIMIZE THE VALUE STREAM AND ELIMINATE WASTE
Lean principles and enablers for BCM programs
Stakeholders
Value
Value Stream
Flow
Pull
Perfection
Respect

15. Key Lean concepts: Muda, Mura, Muri
Picture Source –Toyota Motor Company Australia
activities that
do not add value
workload that is not balanced; variability
work that creates
burden for the team members or processes
Muda
Mura
Muri

16. What type of waste we produce?
•Delivering unnecessary or out-of-sync information
•Providing capacity that is in excess of the business requirements
Overproduction
•Adding unnecessary complexity in systems and processes
•Collecting the same data in several different steps; converting data
Overprocessing
•Large and long meetings, excessive email distribution lists
•Unnecessary hand-offs instead of continuous responsibility
Miscommunication
•Maintaining an overly complex set of policies, procedures, controls
•Creating eLearning library ten times larger than needed
Inventory
•Reworking deliverables due to changing requirements or scope
•Not updating documentation when changes or errors have been found
Defects / Rework
•Not doing anything with generated / suggested ideas
•Delegating tasks with inadequate training
Unused expertise
•Wasted time waiting for the next step in a process (hand-off / approval)
•Calls not returned; waiting for clarification or information
Waiting
•Obtaining information by walking up and down the hallway
•Travelling to meetings; off-site training
Transportation

17.  Map the value streams and eliminate non-value added elements
 Actively manage dependencies to optimize program performance
 Build in transparency and accountability
 Pursue multiple solution sets / alternatives in parallel
 Develop a distributed, collaborative BCM organizational model
 Ensure up-front that capabilities exist to deliver program requirements
 Front-load and integrate the program with existing functions
 Work with suppliers to proactively avoid conflict and mitigate program risk
 Develop a program schedule at the level of detail for which you have dependable information
Value Stream –Lean enablers for you

18. 3. FLOW THE WORK THROUGHSTREAMLINED PROCESSES
Lean principles and enablers for BCM programs
Stakeholders
Value
Value Stream
Flow
Pull
Perfection
Respect

19. So what is flow?
flow of Information
flow of Power and Control
flow of Resources
flow of Work-In-Progress
flow of Partner's services
It’s sounds easy enough to understand, right?
look for stops, delays, constrains, re-do

20. How to optimize the flow?
 standardizing procedures
 setting a common tempo
 eliminating loop-backs
 balancing workloads
make your choices and commitments at the last responsible moment
focus on integration, transparency and collaboration
blueprintvisiontime boxchallengesvaluetime boxchallengesvaluetime boxchallengesvaluetime boxchallengesvalueblueprintvisiontime boxchallengesvalueneedsneedsmetricsmetrics

21. What’s wrong with targets & milestones ?
If you have a stable system, then there is no use to specify a goal. You will get whatever the system will deliver.
If you have not a stable system, then there is again no point in setting a goal. There is no way to know what the system will produce: it has no capability.
W. Edwards Deming

22. Segregating complexity: iterative or incremental
Pictures source –Jeff Patton
we incrementally add components piece by piece
we iterate to find the right solution

23.  Make your choices and commitments at the last responsible moment
 Identify and evaluate all alternatives as soon as possible
 Ensure clear responsibility, accountability and authority
 Standardize the work to reduce variations in processes and performance
 Make performance visible to balance capacity and improve accountability
 Use a program manager role to lead and integrate program from start to finish
 The one who executes the work is the one who plans the work
 Pursue collaborative and inclusive decision making that resolves the root causes of issues
Flow –Lean enablers for you

24. 4. LET STAKEHOLDERSPULL VALUE
Lean principles and enablers for BCM programs
Stakeholders
Value
Value Stream
Flow
Pull
Perfection
Respect

25. Pull –some advice from Steve Jobs
If you are working on something excitingthat you really care about, you don't have to be pushed. The vision pulls you.
Steve Jobs

26.  Pull tasks and outputs based on need, and reject others as waste
 Promote effective real time direct communication between each Giverand Receiverin the value flow
 Implement a Pullsystem to manage "work in progress" such that resources are kept continually employed but not “over-worked
 Make “work in progress” and existing demand (tasks backlog) visible for everyone
 Promote the culture in which people pull knowledge as they need it and limit the supply of information to genuine users only
 Establish effective contracting vehicles in the program that create effective pull for value from external stakeholders
Pull –Lean enablers for you

27. 5. PURSUE PERFECTION IN ALLPROCESSES
Lean principles and enablers for BCM programs
Stakeholders
Value
Value Stream
Flow
Pull
Perfection
Respect

28. Standardized tasks are the foundation for continuous improvement and employee empowerment
Continuously solving root problems drives organizational learning
Perfection by quality and continuous improvement
Plan
Do
Check
Act
Clarify the Problem
Break Down the Problem
Define Future State and Gaps
Root Cause Analysis
Develop Corrective Actions
See Corrective Actions Through
Monitor both Results and Processes
Standardize Successful Processes

29. Problems –some advice from OhnoSan
“No one has more trouble, than the person who claims to have no trouble.”
Having no problems is the biggest problem of all
TaiichiOhno

30.  Make effective use of existing program management and organizational resiliency standards
 Make anomalies, incidents and problems jump out in the process of performing the work
 Strive for excellence, to get quality right the first time
 Use change management effectively to continually and pro-actively align the program with unexpected changes in the environment
 Proactively manage uncertainty and risk to maximize program benefits and sustainable capabilities
 Strive for perfect communication, coordination and collaboration across people and processes
 Promote continuous improvement methods to draw best energy and creativity from all stakeholders
Perfection –Lean enablers for you

31. 6. TREAT PEOPLE AS YOURMOST IMPORTANT ASSET
Lean principles and enablers for BCM programs
Stakeholders
Value
Value Stream
Flow
Pull
Perfection
Respect

32. People make the difference
enabling front line staff to unblock the flow of value creation
developing their capabilities through mentored learning by doing
everyone learns to use the continuous improvement approach
solve business problems
in their specific context
follow me and let’s figure this out together
Go and See
Ask five Why’s
Show Respect
Based on: John Shook, LEI
We build people before we build cars (Toyota)

33.  Build a program culture based on respect for people
 Motivate by making the higher purpose of the program and program elements transparent
 Design processes in a way that participants see opportunities for learning
 Expect and support people in their strive for professional excellence and promote their careers
 Encourage personal networks and interactions
 Promote the ability to rapidly learn and continuously improve
 Support an autonomous working style
Respect –Lean enablers for you
Watch Dan Pink at YouTube
Picture Source –danpink.com& RSA

34. solve specificbusiness problems
by developing the capabilities
to improve the flow of work
enabled by leaders showing clear directionand asking questions
and believing that the organization is never done, always striving to improve
In summary –the Lean BCM path
Based on: John Shook, LEI

35. Internet resources for additional informationLean in Program Management Community of Practice(PMI / INCOSE / MIT) Encyclopedia of Lean Enablers for Managing Engineering Programs(MIT-CEPE)
Lean Management Enterprise Compendium (McKinsey & Company)
The Lean Enterprise Institute(LEI)
American Productivity & Quality Center (APQC)
The Lean Enterprise Academy(UK)
Envision a better future
Question value of every activity
Solve problems together
Pull people out of their boxes
Slow down to speed up

36. To continue your Lean journey, it is essential to keep asking questions
thanks for listening!
get in touch if you want to discuss further: milen.kutev@gmail.com
ca.linkedin.com/in/milenkutev
The last slide 