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Show me the value: Enabling BCM Program Success through Lean thinking
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.
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Show me the value: Enabling BCM Program Success through Lean thinking
- 1. Enabling BCM ProgramSuccess through Lean Thinking Milen Kutev MBCP, SCPM, PMP British Columbia Automobile Association
- 2. The aim ofmy 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 thesesound familiar? Source: The guide to Lean Enablers…
- 4. Main definitions (ISO22301) 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 forBCM/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 VALUEAS DEFINED BY THE KEY STAKEHOLDERS Stakeholders Value Value Stream Flow Pull Perfection Respect
- 7. How do wemeasure 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 agreewhat 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 andgovernance Value creation means realizing benefits at an optimal resource cost while optimizing risk Source: Adapted from ISACA, COBIT 5, 2012
- 10. So, what isVALUE 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 valuerealization 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
- 12. Program benefits management Source:PMI The Standard for Program Management - 3ed, 2013
- 13. FLOW THE WORKTHROUGH 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 optimizethe 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
- 16. Segregating complexity Pictures source– Jeff Patton we incrementally add components piece by piece we iterate to find the right solution
- 17. In summary: theLean 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 Leanin 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 yourtime! 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
- #4 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.
- #6 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.
- #8 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
- #9 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.”
- #10 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
- #11 If your customers/stakeholders fail to see the value that you deliver, there is no value.
- #12 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.
- #13 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.”
- #16 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
- #17 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.
- #18 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.