Applying Lean Thinking to the horizontal support functions: the lessons learned and results achieved at Tieto presented by Tomas Turecek and Martin Chmelar at the Lean IT Summit 2013. More Lean IT presentations and videos on www.lean-it-summit.com

1. Copyright © Institut Lean France 2013
3 & 4 October, 2013
Paris, France
Lean @ Support Functions
Connecting Support functions to Business
by Tomáš Tureček, Martin Chmelař
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2. Copyright © Institut Lean France 2012
Speakers
Martin Chmelař,
Lean&Agile Coach
Lean@Support Functions - Tomáš Tureček, Martin Chmelař
Tomáš Tureček,
Lean&Agile Coach
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3. Copyright © Institut Lean France 2012
We are RainFellows
• Value focus
 ROI, Time-to-market, …
• Over 10 years of Lean / Agile
experience from tens of IT
projects
• Whole value chain support
• Team support
 Leadership, coaching, …
• Over 3500 people are
enjoying results of our
coaching
time, €, satisfaction, …
Need
Lean@Support Functions - Tomáš Tureček, Martin Chmelař
Value
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4. Copyright © Institut Lean France 2012
We represent Tieto
The leading IT service company in
Northern Europe providing IT and
product engineering services
More than 15,000 employees
in more than 20 countries
Lean@Support Functions - Tomáš Tureček, Martin Chmelař
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5. Copyright © Institut Lean France 2012
3 & 4 October, 2013
Paris, France
HR
Staffing
Finance
ICT
Quality
Procurement
SUPPORT FUNCTIONS
Lean@Support Functions - Tomáš Tureček, Martin Chmelař
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Support Functions
Heroes or villains?
Lean@Support Functions - Tomáš Tureček, Martin Chmelař
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7. Copyright © Institut Lean France 2012
They do their best but…
Serving
many
different
value
chains
Busy
business
people
Isolated from
customer value
Wide & shallow
approach used
Far from
customer
Lean@Support Functions - Tomáš Tureček, Martin Chmelař
Serving all
but none
External
constraints
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8. Copyright © Institut Lean France 2012
Some time ago in Tieto…
SGA costs were higher
than competitors’,
IT players of similar size
Feedback showed that Support
Functions
were isolated and not supporting customer
oriented work
Sampo Salonen
SGA: Sales, General & Administration
Lean@Support Functions - Tomáš Tureček, Martin Chmelař
Executive Vice-president,
Global Delivery and Quality
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9. Copyright © Institut Lean France 2012
The CMMI story
1
Our customers want us CMMI.
Which customers? Why?
Don’t ask. Just do it.
Chief Marketing Officer
2
Processes & Quality org.
Your Czech part will be CMMI ML3.
No time to do it. We are busy
with customers’ escalations.
Your processes will be better.
Just do it.
Processes & Quality org.
Lean@Support Functions - Tomáš Tureček, Martin Chmelař
TIPS Team
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2012
Lean@TIPS
Profit
Satisfaction
2x
Employees
* Average monthly profit
in 2012 compared to 2011
Customers
50
40
Start
30
20
10
0
-10
Lean@Support Functions - Tomáš Tureček, Martin Chmelař
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11. Copyright © Institut Lean France 2012
Lean transformation@Tieto
2011
Business impact: 7MEUR in 2012
Let’s try Lean approach
on Support Functions
Lean@Support Functions - Tomáš Tureček, Martin Chmelař
Sampo Salonen
Executive Vice-president,
Global Delivery and Quality
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12. Copyright © Institut Lean France 2012
3 & 4 October, 2013
Paris, France
1.
2.
3.
4.
Start now.
Split & focus.
Bite & chew.
Enjoy every bite 
“HOW TO EAT
AN ELEPHANT?”
Lean@Support Functions - Tomáš Tureček, Martin Chmelař
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13. Copyright © Institut Lean France 2012
Split & Focus
• 5 pilot teams chosen
 Business critical (yummy)
 Ready for change (chewable)
 Known way of working
• Connect SFs
to customer and value
Lean@Support Functions - Tomáš Tureček, Martin Chmelař
Narrow
and deep
focus
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Go & See?
• In distributed software product development?
Solution:
Kaizen workshop!
Lean@Support Functions - Tomáš Tureček, Martin Chmelař
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Kaizen Workshop
2011
(1) Agree on
common goal and
map end-to-end
value stream
☺
X
C
C
☺
X
(2) Visualize
perceived issues
C
C
!
!
!
(3) Investigate
root causes
!
(4) Brainstorm ideal
solutions and small
“Kaizen” steps
Root
cause
Lean@Support Functions - Tomáš Tureček, Martin Chmelař
Cause
!
Root
cause
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KW@Support Functions
1. Delivery driven interfaces to Support Functions
Quality
Finance
… etc.
… etc.
Role/Representative
Staffing
Delivery Manager
Sales phase
Development/Transition phase
S&M,
Contract
renewal,
CS
Cust. Managers (Sales)
Line Managers
Cont. Service Managers
2. Support Function driven interfaces to Delivery
 Weekly, Monthly, Quarterly, Annually
Quality Lead
Finance Partner
Finance Controller
HR Partner
Staffing
Purchasing,
Subcontracting,
Procurement
Special Guests (LT, Man.)
Lean@Support Functions - Tomáš Tureček, Martin Chmelař
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KW@Support Functions
Lean@Support Functions - Tomáš Tureček, Martin Chmelař
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Findings from pilot cases
• Low autonomy (A lot of approvals)
• Overhead (Finance reports, HR questions, Manual reporting, ...)
Lean@Support Functions - Tomáš Tureček, Martin Chmelař

19. Copyright © Institut Lean France 2012
Results
• Mutual feedback
Delivery: “It was really great to
have LT member here and
discuss topics immediately.”
SF: “We are first time ever
looking for process and
connecting deliveries and
support functions!”
• Agreed actions to problems of pilots
“GL bookings (delayed invoices) are now much easier to handle after our
issue was reflected in a finance tool”
“We had problem to track down costs on our very huge and complex service portfolio;
finance partner offered us to set-up our portfolio differently to get the visibility”
Martin Sztemon
“We boosted our relationship with Support function partners on workshop; this paid of
later when we were solving our daily issues with them.
Project manager
Lean@Support Functions - Tomáš Tureček, Martin Chmelař
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20. Copyright © Institut Lean France 2012
Results
• Inputs and feedback to the new operating model
 From Cost centers to Projects
 Survey; In compare to 2012 is your (PM/CSM/DM)…
…decision making power higher now?
Much
smaller
Same
Much
higher
…overhead smaller now?
Much
higher
Same
Much
smaller
Workshops findings had big influence
on the result operating model
Sampo Salonen
Executive Vice-president,
Global Delivery and Quality
Lean@Support Functions - Tomáš Tureček, Martin Chmelař
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21. Copyright © Institut Lean France 2012
How about chewing?
Lean@Finance
Lean@Staffing
Internal
coach
1.
2.
3.
4.
Form Core team coach pairs
Find internal coaches inside SFs
Initiate Lean@(concreteSF)
Continuous improvement
Lean@...
Core team
Lean@Support Functions - Tomáš Tureček, Martin Chmelař
• We relied on
SF heads and LT team
to keep the wheel spinning…
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Failure or success?
• Lean@(concreteSF) unfortunately faded out…
 Missing active change agents
• However, half a year after…
 Contacted by people from within SFs
 KW@ICT, KW@Finance
• So we managed to create a ripple effect
and the journey continues…
Lean@Support Functions - Tomáš Tureček, Martin Chmelař
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23. Copyright © Institut Lean France 2012
This story was about how
important it is to…
•
Approach people positively - everyone does his/her best
•
Focus people and their actions on value
•
Keep Startup mindset & PDCA
•
Prioritize and focus
•
Go & See - Kaizen workshop
•
Bring people together to break the silos
•
Focus on long term results, but win something quickly as well
•
Find change agents
Lean@Support Functions - Tomáš Tureček, Martin Chmelař
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But the most important lesson was…
People first
 Let them meet. Let them talk. Let them share.
 To find WHAT and WHY they want to achieve together
 Because only people who know WHAT and WHY can
invent the HOW and make the needed improvement…
Lean@Support Functions - Tomáš Tureček, Martin Chmelař
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www.lean-it-summit.com