This document discusses applying Lean principles to business continuity program management. It defines key Lean concepts like capturing value as defined by stakeholders, optimizing value streams, flowing work through streamlined processes, and pursuing perfection. The document emphasizes that value should be defined by stakeholder needs and measured by benefits realized, rather than compliance activities. Lean approaches like value stream mapping and continuous improvement can help optimize the flow of work and create more value from business continuity programs.
Islamabad Escorts | Call 03274100048 | Escort Service in Islamabad
Enabling BCM Success through Lean Principles
1. Enabling BCM Program Success
through Lean Thinking
Milen Kutev
MBCP, SCPM, PMP
British Columbia Automobile
Association
2. The aim of my presentation todays is
to provide insights and perspective on applying
Lean thinking principles to business continuity
program management.
Quick facts about me:
more than 25 years of program & project delivery
active member of Lean Program Management CoP
editor for PMI’s Standard for Program Management
in last 10 years primary managing BCM/DRP/GRC
programs for different industries
3. Any of these sound familiar?
Source: The guide to Lean Enablers…
4. Main definitions (ISO 22301)
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.
Competencies
Capabilities
Confidence
5. Lean Principles for BCM/GRC
Capture the Value as defined by stakeholders
Optimize the value stream and Eliminate Waste
Flow the Work through streamlined processes
Let stakeholders Pull Value
Pursue Perfection in all processes
Treat People as Your Most Important Asset
6. CAPTURE THE VALUE AS DEFINED
BY THE KEY STAKEHOLDERS
Stakeholders
Value
Value
Stream
Flow
Pull
Perfection
Respect
7. How do we measure BCM value?
Value of the assets under protection (ROSI, cost of
downtime, losses, reduction in insurance premiums)
Tracking the work done (# of documents updated,
BIA/TRA conducted, # of tests/exercises organized)
Relying on our previous experience (benefits achieved
in previous program/organization)
Aligning to high level strategic goals (protect brand,
regulatory compliance, improve productivity, resilient
operations, reduce risk)
Using persuasive communication (“Selling” to the
executives, whatever vendor sell us as a value)
8. Do we agree what value is?
The measurement of the value contribution of
BCM to an organization’s objectives is one of
the most difficult issues in our field…
…This discussion demonstrated the continuing
difficulty of distinguishing between metrics
relating to value and 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…
Source: BCI “The measurement of the value contribution of BCM” study 2012-2014
9. Value creation and governance
Value creation means
realizing benefits
at an optimal resource cost
while optimizing risk
Source: Adapted from ISACA, COBIT 5, 2012
10. So, what is VALUE then?
satisfaction of needs (benefits) *
as defined by stakeholders
use of resources (contribution)
money, people, time,
energy, materials, contracts
Value
* provided at the right time
at an expected quality
particular worth, utility, benefit, or reward that stakeholders expect
in exchange for their respective contributions
11. Benefits and value realization
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)
enables prepare
to realize
enables
in turn
realizes
enables
help achieve
one or more
13. FLOW THE WORK THROUGH
STREAMLINED PROCESSES
Stakeholders
Value
Value
Stream
Flow
Pull
Perfection
Respect
14. Easy to understand, right?
flow of Information
flow of Power and Control
flow of Resources
flow of Work-In-Progress
flow of Partner's services
look for
stops,
delays,
constrains,
re-do
15. 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
blueprint
vision time
box
challenges
value
time
box
challenges
value
time
box
challenges
value
time
box
challenges
value
blueprint
vision time
box
challenges
value
needs needs
metrics metrics
17. In summary: the Lean BCM path
“Classic” BCM Principle Lean BCM
think forward from the capabilities or technology
(BIA, TRA, hot-site, cold-site, EOC, ICS …)
think backward from stakeholder needs and
expectations; solve specific business problems by
developing the capabilities
different disciplines with complicated and hard to
maintain documentation
focus on cross-organizational and cross-functional
integration; understand the context for actions to
unblock the flow of value creation
align activities and standardize through
compliance to ISO 22301 / DRI practices
value stream as an uninterrupted flow of
predictable and robust tasks, proceeding without
rework or backflow; clear responsibilities, resilient
interfaces, effective communication pathways
vertical communications to control the use of
resources
horizontal communications to align the work with
the rate of demand
changes are designed and implemented by
experts
everyone is engaged in creating value and
improving their work; Go and See; Ask Why;
“follow me” leadership
Stream
Value
How we manage little things is the way we manage big things
Flow
Pull
Respect
18. Takeaways and resources
Lean 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)
Lean enablers for managing BCM programs (Excel file
shared on OneDrive; Adapted version for BCM/DRP/GRC programs)
Stakeholder register and benefits management toolkit
(Excel templates for BCM/DRP/GRC programs)
Benefits mapping template (Visio template for BCM/DRP/GRC
programs)
Free takeaways for you:
To learn more about Lean Thinking:
19. Thanks for your time!
There is nothing so useless as doing
efficiently that which should not be
done at all
Peter F. Drucker
get in touch if you want
to discuss further:
milen.kutev@gmail.com
ca.linkedin.com/in/milenkutev
Editor's Notes
Top 10 Challenges for Managing Complex Programs
Developed by group of 15 subject matter experts with feedback through wider community of practice (180+ members). Discussed at 4 large and very successful workshops, involving both PMI and INCOSE members and backed-up by two validation surveys.
The Lean philosophy is fundamentally about creating value for the customer/client while using the fewest resources possible. It’s about getting the right service in the right amount to the right person at the right time, while minimizing waste and being flexible and open to change and improvement.
Lean Principles for BCM/DRP/GRC Programs and Expected Results:
Capture the Value Defined by Stakeholders - Builds the BCM/GRC program around benefits
Optimize the Value Stream and Eliminate Waste - Plan the value-adding stream of work activities during the program lifecycle, from the need to capabilities delivery, until disposal, while eliminating waste. Focuses on cross-organizational and cross-functional integration while optimizing resource usage
Flow the Work through Streamlined Processes - Organize the value stream as an uninterrupted flow of predictable and robust tasks, proceeding without rework or backflow. Establish clear responsibilities, resilient interfaces, and effective communication pathways.
Let Stakeholders Pull Value - Organize the pull of the work-in-progress as needed and when needed by all receiving tasks. Simplify information exchange and collaboration.
Pursue Perfection in All Processes - Make all imperfections visible and pursue perfection, i.e. the process of never ending improvement. Improve the program governance (efficiency) and adaptive capabilities in a changing environment (effectiveness).
Treat People as Your Most Important Asset - Base human relations on respect for people. Create an energetic and positive environment by developing skills, behavior and culture.
The symptoms: There is no shared understanding of what constitutes value for the enterprise, what level of effort is
required to realize it or how to measure value. As a result, opportunities to realize value are missed or fail in execution, and
value is often eroded or destroyed.
The solution: Establish broad-based awareness of the need for benefits management and value realization control; nurture understanding of what is involved in developing this capability; and build a strong internal executive and management commitment to improving and
sustaining value creation over time.
What should change: Organizational and individual behavior should change to take a broader enterprise-wide view and a
more disciplined, value-driven approach to decision making
As per BCI “The measurement of the value contribution of BCM to an organisation’s objectives is one of the most difficult issues in our field. But it is also very important, because an understanding of the value BCM brings determines the investment and the commitment we can expect from our organisations. Getting this right is fundamentally important to getting the organisational buy-in, without which no BCM programme is ever going to be effective.”
COBIT 5 addresses governance and management of technology from an end-to-end perspective, starting with stakeholder goals that ultimately cascade to enabler goals. Governance is ultimately responsible for value creation, integrating benefits realization, risk optimization and resource optimization
If your customers/stakeholders fail to see the value that you deliver, there is no value.
Capability is JUST the starting point.
Benefits are often defined in the context of the intended beneficiary and may be shared between multiple stakeholders.
Management will buy the benefit rather than fund the cost of an intangible outcome.
BCM is not just a risk mitigation and control tool – but also adds value and creates an upside to your business.
As per PMIs Standard for PgMgmt - Benefits Management Process:
• Focus program stakeholders on the outcomes and benefits to be provided by the various activities conducted during the program’s duration.
• Align the expected benefits with the organization’s goals and objectives,
• Assign responsibility and accountability for the realization of benefits provided by the program and ensure that the benefits can be sustained.
PMI Standard for Program Management: “Programs and projects deliver benefits to organizations by generating business value, enhancing current capabilities, facilitating business change, maintaining an asset base, offering new products and services to the market, or developing new capabilities for the organization. A benefit is an outcome of actions, behaviors, products, or services that provide utility to the sponsoring organization as well as to the program’s intended beneficiaries or stakeholders…. With the focus on benefits realization and the multiple components that work together to produce the intended outcomes, the complexity and duration of programs demand that the program manager take a broad, collective view of all the program’s components to thoroughly understand and successfully manage the progress and contributions of the component parts.”
Be careful what you ask for (your metrics and objectives), because goals are such powerful motivators that they can have severe side effects:
Narrowed focus (missed opportunities)
Reduced learning
Gaming the system
Decreased cooperation
Incremental: When you work incrementally you add components piece by piece until you are finished.
Iterative: When you work iteratively you build what you can in one iteration, then review it and improve it in next iteration and so on until its finished.
The Lean Mindset
1. Clients matter most: Focusing on delivering value to the client (what they are willing to pay for)
2. People make the difference: Managing based on facts and enforcing consequences; Developing people; Value flows through people;
3. Problems are opportunities: Addressing the cause of a problem and transforming it into an opportunity; Taking ownership of solving problems
4. Look at large challenges, solve small problems
Management will buy the benefit rather than fund the cost of an intangible outcome.
BCM is not just a risk mitigation and control tool – but also adds value and creates an upside to your business.