SlideShare a Scribd company logo
1 of 29
Measuring Success in
the Lean IT World
LITA
Executive
Webinar
Host and Presenter
Deborah Burton
Marketing Lead
Lean IT Association (LITA)
LITA - Pioneering a Global Standard
for Lean IT Education & Certification
● Lean IT Association (LITA) is a non-profit organization founded by three
Accredited Training Organizations (ATOs) - ITpreneurs, Pink Elephant,
Quint Wellington Redwood and three Examination Institutes (EIs) - APMG,
EXIN, PEOPLECERT International Ltd. To realize its broader purpose
LITA aims to provide:
● An industry-standard set of Lean IT reference materials and other
resources for practitioner organizations to use;
● An certification scheme aimed at practitioner organizations looking to
adopt Lean IT principles in the IT Service development and operations
department as well as professionals that want to be certified in Lean IT on
various levels.
Today's Guest Presenter
Niels Loader,
Partner, Quint Wellington Redwood,
Content Board Lead, Lean IT Association,
Chief Examiner Lean IT, APMG
● IT Service Management
● IT Performance Improvement
● Lean IT
● DevOps
Watch the webinar recording
Webinar Recording
Measuring Success in the
Lean IT World
Measuring
Success in the
Lean IT World
Today’s Agenda
1. Why do we need metrics?
2. Lean IT Metrics … and how to choose them
3. Getting metrics to work: Definition and Pitfalls
How can I measure
my success?
Objective
To ensure you can measure your improvements, successes
and progress
Why Metrics?
9
What Should I Measure?
Age-old Question
Why Measure?
 Influence behavior
 Ensure you have facts concerning
a particular situation
 Provides the answer to a
question
 Helps you to provide feedback
Metrics are just the Beginning
Why is it important
Measure
From goals to KPIs
• Ensures discussions are based on facts
• Ensures key measurements to monitor whether we are
achieving our goals
• Facilitates concrete discussions concerning targets
Visualize
From KPIs to steering information
▪ Consistent and effective communication about goals and
priorities
▪ Enables real-time updates and continuous improvement
▪ Ensures everyone has access to the same information
Steer
From steering information to goals
▪ Ability to correct where things go wrong
▪ Ability to give feedback on performance (positive and
negative)
▪ Ability to discuss responsibilities
12
Key Lean IT Metrics
13
Lean IT Metrics are Clearly Customer-focused
1. Lost Production Hours
2. Time to Market of Changes
3. Effectiveness of Changes
4. Quality of Plans
5. Number of Proactive Changes
No IT Outages
Quick
Time to Market
of Changes
“Maintain current functionality” “Provide new functionality” “Give advice on current and
new functionality”
New Use of IT
Listen to the Voice of the Customer when choosing metrics
Customer-oriented metric: Disruptions
No. of
incidents and
resolution
times
Time that
incidents are
open
Time that IT
customers
cannot work
Excess cost
and lost
revenue  
Priority Total number
Average time to
repair (days)
Number of
users
affected
Gross lost
production
days
Cost per
day
Dependancy
Net Lost
production days
Net costs
Costs per day
to business
per incident
Total cost to the
business
Critical 1042 0.7 20 14,227 € 240 50 % 7,113 € 1,707,213 5000 € 3,556,695
High 2796 5.4 10 149,634 € 240 40 % 59,853 € 14,364,817 1000 € 14,963,351
Medium 12196 10.3 4 500,948 € 240 30 % 150,284 € 36,068,234 500 € 62,618,462
Low 376 9.8 1 3,699 € 240 20 % 740 € 177,556 100 € 369,908
16410 668,507 217,991 € 52,317,820 € 81,508,415
It’s about
Lost Production Time
not Mean Time To Repair!
• A classic Lean process metric
• Just-In-Time
• Use for … everything
• “Time to Market”
– Start the positive part of the business case
– Meet agreed implementation date
– Work within budget
– Reliability
Customer-oriented metric: Lead Time
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
18 20 22 24 26 28 30 32 34 36 38 40 42 44 46
Average Customer Lead Time
Total
4 per. Mov. Avg. (Total)
Internal Lean IT metrics: Time
Time is IT’s primary
production factor
Key Metric:
Earning Capacity Analysis
Internal Lean IT metrics: Delivery
DevOps is the ultimate
search for FLOW within IT
Key Metric:
Release Frequency
0
10
20
30
40
50
60
70
80
18 20 22 24 26 28 30 32 34 36 38 40 42 44 46
Number of Story Points per week
Total
4 per. Mov. Avg. (Total)
Bringing the Metrics Together: The KPI Tree
19
Getting Metrics
To Work
20
Measuring is Not as Easy as it Seems
Pitfalls of Metrics
• Spending insufficient time on defining metrics
• Focusing on the numbers and not on what the
numbers are trying to tell you
• Steering on individual scores rather than the
trend
• Creating ‘insignificant’ metrics
• Always test metrics against Lean Principles
Measurement Do's and Don’ts
22
• Do not assume that a measurement measures what
people say it measures
– Describe the purpose of the measurement
• Clearly define the things you want to measure
– Ensure the measurement process is accurate and
precise enough for the purpose
– Ensure the measurement is trusted and that its quality
is constant
– Define the population you are measuring
– State when measurement starts and ends
• Use tools to reduce errors
You ALWAYS
need to explain a
measurement.
No measurement
is self-
explanatory.
Getting Metrics to Work: Definition
KPI : Lead time
Formula:
Lead time
• Date/time customer submits the request (in Service Now: field
“Open Date”) subtracted from the date/time the request is fulfilled
(in Service Now: field “Actual Close Date”. This gives the Lead
time.
• For each type of unit of work, the average lead time is calculated
per week.
.
Issues (Ways in which the KPI can be 'gamed'):
• Incorrect registration of stories and tickets may lead to an incorrect view of
lead time performance.
• Requests are not registered at all, meaning no data is available
Frequency of reporting:
Weekly
Data should be updated on a daily basis, or be available realtime
Measurement Accuracy
1 decimal
Data collection process:
- Extract data (see formula) from ServiceNow (separate files)
- Stories from Backlog section
- Tickets from Risk section
- Load into Excel
- Calculate Lead Time according to formula
- Present data as a time series chart showing at least the last 16 weeks with
a 4-period moving average trendline
KPI owner:
RS MT
Category: process, customer
Definition: Measure the lead time of all units of work in order to
understand where improvements in processes can be made to
decrease lead time
Unit of measurement (%, number, index)
- Number
Level at which the performance indicator is used:
RS MT, teams
Goal: To influence behaviour towards ensuring that customers get the
value they have requested as quickly as possible
Getting Metrics to Work: Key Steps
Defining and measuring metrics
• Use the KPI card
• Start with a quick measurement, automate later
• Learn to work with the metric
Using metrics
• Focus on the behavior you want to change
• Lean IT metrics lead to action
• Integrate metrics into your visual management
Setting goals
• Leadership team of IT is responsible for setting the
direction
• Identify the aspects of strategy you want to measure
Want to Learn More About How Metrics fit into
Lean IT?
25
Contact Us
Niels Loader
Partner Quint Wellington Redwood,
LITA Lead Author Courseware
Development
n.loader@quintgroup.com
Deborah Burton
Marketing Lead
Lean IT Association (LITA)
deborah.burton@leanitassociation.com
Experience Lean IT in Action
We believe that “Lean Thinking” should be an integral part of every
Enterprise IT organization and also every IT professional’s toolkit.
Lean thinking is about understanding how to assess business processes, to identify and eliminate
waste. Today, many IT professionals stakeholders from cross-functional areas -operational, tactical
and strategic — have or are planning to get certified in Lean IT with the objective of reducing waste
and improving efficiency.
27
Become a LITA Training Partner
Watch the webinar recording
Webinar Recording
Measuring Success in the
Lean IT World
Thank you!

More Related Content

What's hot

Peter Hubbard: Don't Get Stuck in a Silo – Going Digital isn't Transformation
Peter Hubbard: Don't Get Stuck in a Silo – Going Digital isn't TransformationPeter Hubbard: Don't Get Stuck in a Silo – Going Digital isn't Transformation
Peter Hubbard: Don't Get Stuck in a Silo – Going Digital isn't TransformationitSMF UK
 
ITIL and CMMI for service
ITIL and CMMI for serviceITIL and CMMI for service
ITIL and CMMI for serviceBoonNam Goh
 
Fusion 09 PPT -Kirch Final
Fusion 09 PPT -Kirch FinalFusion 09 PPT -Kirch Final
Fusion 09 PPT -Kirch FinalCathy Kirch
 
IT strategy presentation by global leading CIO, Creagh Warren
IT strategy presentation by global leading CIO, Creagh WarrenIT strategy presentation by global leading CIO, Creagh Warren
IT strategy presentation by global leading CIO, Creagh Warrenbob panic
 
itSMF - Foundations of Lean IT
itSMF - Foundations of Lean ITitSMF - Foundations of Lean IT
itSMF - Foundations of Lean ITMatt Blair
 
ADD: New itil implementation approach
ADD: New itil implementation approachADD: New itil implementation approach
ADD: New itil implementation approachMohamed Zohair
 
Getting the Best Out of Service Management
Getting the Best Out of Service ManagementGetting the Best Out of Service Management
Getting the Best Out of Service ManagementFrancis D'Souza
 
Dave Wheable: Can We Manage the Future
Dave Wheable: Can We Manage the FutureDave Wheable: Can We Manage the Future
Dave Wheable: Can We Manage the FutureitSMF UK
 
Tackling ITIL Implementation Challenges
Tackling ITIL Implementation ChallengesTackling ITIL Implementation Challenges
Tackling ITIL Implementation ChallengesMohamed Zohair
 
Solution Architecture And (Robotic) Process Automation Solutions
Solution Architecture And (Robotic) Process Automation SolutionsSolution Architecture And (Robotic) Process Automation Solutions
Solution Architecture And (Robotic) Process Automation SolutionsAlan McSweeney
 
Clare McAleese: Verism at Vocalink Mastercard... Our Journey so Far
Clare McAleese: Verism at Vocalink Mastercard... Our Journey so FarClare McAleese: Verism at Vocalink Mastercard... Our Journey so Far
Clare McAleese: Verism at Vocalink Mastercard... Our Journey so FaritSMF UK
 
VEA: ARIS and Alfabet Journey Together
VEA: ARIS and Alfabet Journey Together VEA: ARIS and Alfabet Journey Together
VEA: ARIS and Alfabet Journey Together Software AG
 
Agile-DevOps-Business-agility
Agile-DevOps-Business-agilityAgile-DevOps-Business-agility
Agile-DevOps-Business-agilityPaul Peissner
 
Enterprise service management is finally a business reality
Enterprise service management is finally a business realityEnterprise service management is finally a business reality
Enterprise service management is finally a business realityFreshservice
 
Improve IT service management with lean IT
Improve IT service management with lean ITImprove IT service management with lean IT
Improve IT service management with lean ITQuint Wellington Redwood
 
Stuart Howitt: Honey, I Shrunk the Incident
Stuart Howitt: Honey, I Shrunk the IncidentStuart Howitt: Honey, I Shrunk the Incident
Stuart Howitt: Honey, I Shrunk the IncidentitSMF UK
 
Itsmf successful itsm transformation v 1 - 28-11-2013
Itsmf successful itsm transformation v 1 - 28-11-2013Itsmf successful itsm transformation v 1 - 28-11-2013
Itsmf successful itsm transformation v 1 - 28-11-2013Sukumar Daniel
 
Food for thought for executives and it managers linked_in
Food for thought for executives and it managers linked_inFood for thought for executives and it managers linked_in
Food for thought for executives and it managers linked_inEKlaver
 

What's hot (20)

Peter Hubbard: Don't Get Stuck in a Silo – Going Digital isn't Transformation
Peter Hubbard: Don't Get Stuck in a Silo – Going Digital isn't TransformationPeter Hubbard: Don't Get Stuck in a Silo – Going Digital isn't Transformation
Peter Hubbard: Don't Get Stuck in a Silo – Going Digital isn't Transformation
 
ITIL and CMMI for service
ITIL and CMMI for serviceITIL and CMMI for service
ITIL and CMMI for service
 
Fusion 09 PPT -Kirch Final
Fusion 09 PPT -Kirch FinalFusion 09 PPT -Kirch Final
Fusion 09 PPT -Kirch Final
 
IT strategy presentation by global leading CIO, Creagh Warren
IT strategy presentation by global leading CIO, Creagh WarrenIT strategy presentation by global leading CIO, Creagh Warren
IT strategy presentation by global leading CIO, Creagh Warren
 
itSMF - Foundations of Lean IT
itSMF - Foundations of Lean ITitSMF - Foundations of Lean IT
itSMF - Foundations of Lean IT
 
ADD: New itil implementation approach
ADD: New itil implementation approachADD: New itil implementation approach
ADD: New itil implementation approach
 
Lean IT Defined
Lean IT DefinedLean IT Defined
Lean IT Defined
 
Getting the Best Out of Service Management
Getting the Best Out of Service ManagementGetting the Best Out of Service Management
Getting the Best Out of Service Management
 
Dave Wheable: Can We Manage the Future
Dave Wheable: Can We Manage the FutureDave Wheable: Can We Manage the Future
Dave Wheable: Can We Manage the Future
 
ITIL Challenges With Implementation
ITIL Challenges With ImplementationITIL Challenges With Implementation
ITIL Challenges With Implementation
 
Tackling ITIL Implementation Challenges
Tackling ITIL Implementation ChallengesTackling ITIL Implementation Challenges
Tackling ITIL Implementation Challenges
 
Solution Architecture And (Robotic) Process Automation Solutions
Solution Architecture And (Robotic) Process Automation SolutionsSolution Architecture And (Robotic) Process Automation Solutions
Solution Architecture And (Robotic) Process Automation Solutions
 
Clare McAleese: Verism at Vocalink Mastercard... Our Journey so Far
Clare McAleese: Verism at Vocalink Mastercard... Our Journey so FarClare McAleese: Verism at Vocalink Mastercard... Our Journey so Far
Clare McAleese: Verism at Vocalink Mastercard... Our Journey so Far
 
VEA: ARIS and Alfabet Journey Together
VEA: ARIS and Alfabet Journey Together VEA: ARIS and Alfabet Journey Together
VEA: ARIS and Alfabet Journey Together
 
Agile-DevOps-Business-agility
Agile-DevOps-Business-agilityAgile-DevOps-Business-agility
Agile-DevOps-Business-agility
 
Enterprise service management is finally a business reality
Enterprise service management is finally a business realityEnterprise service management is finally a business reality
Enterprise service management is finally a business reality
 
Improve IT service management with lean IT
Improve IT service management with lean ITImprove IT service management with lean IT
Improve IT service management with lean IT
 
Stuart Howitt: Honey, I Shrunk the Incident
Stuart Howitt: Honey, I Shrunk the IncidentStuart Howitt: Honey, I Shrunk the Incident
Stuart Howitt: Honey, I Shrunk the Incident
 
Itsmf successful itsm transformation v 1 - 28-11-2013
Itsmf successful itsm transformation v 1 - 28-11-2013Itsmf successful itsm transformation v 1 - 28-11-2013
Itsmf successful itsm transformation v 1 - 28-11-2013
 
Food for thought for executives and it managers linked_in
Food for thought for executives and it managers linked_inFood for thought for executives and it managers linked_in
Food for thought for executives and it managers linked_in
 

Viewers also liked

La resolución de problemas como una oportunidad dentro de las organizaciones:...
La resolución de problemas como una oportunidad dentro de las organizaciones:...La resolución de problemas como una oportunidad dentro de las organizaciones:...
La resolución de problemas como una oportunidad dentro de las organizaciones:...Lean IT Association
 
Content Creation Process
Content Creation ProcessContent Creation Process
Content Creation ProcessSujan Patel
 
Purpose Driven Lean: Diving into The Lean IT Field Guide
Purpose Driven Lean: Diving into The Lean IT Field GuidePurpose Driven Lean: Diving into The Lean IT Field Guide
Purpose Driven Lean: Diving into The Lean IT Field GuideLean IT Association
 
¿Por qué es tan importante la cultura en el liderazgo de Lean IT?
¿Por qué es tan importante la cultura en el liderazgo de Lean IT?¿Por qué es tan importante la cultura en el liderazgo de Lean IT?
¿Por qué es tan importante la cultura en el liderazgo de Lean IT?Lean IT Association
 
Design in Tech Report 2017
Design in Tech Report 2017Design in Tech Report 2017
Design in Tech Report 2017John Maeda
 
The Next Evolution of Account-Based Marketing
The Next Evolution of Account-Based MarketingThe Next Evolution of Account-Based Marketing
The Next Evolution of Account-Based MarketingTechTarget
 
Infographic: Medicare Marketing: Direct Mail: Still The #1 Influencer For Tho...
Infographic: Medicare Marketing: Direct Mail: Still The #1 Influencer For Tho...Infographic: Medicare Marketing: Direct Mail: Still The #1 Influencer For Tho...
Infographic: Medicare Marketing: Direct Mail: Still The #1 Influencer For Tho...Scott Levine
 
The Marketer's Guide To Customer Interviews
The Marketer's Guide To Customer InterviewsThe Marketer's Guide To Customer Interviews
The Marketer's Guide To Customer InterviewsGood Funnel
 
Why Is Culture So Critical to Lean IT Leadership?
Why Is Culture So Critical to Lean IT Leadership?Why Is Culture So Critical to Lean IT Leadership?
Why Is Culture So Critical to Lean IT Leadership?Lean IT Association
 
Omista oma työsi sytyke seminaari 2016 09
Omista oma työsi sytyke seminaari 2016 09Omista oma työsi sytyke seminaari 2016 09
Omista oma työsi sytyke seminaari 2016 09Pentti Virtanen
 
Eitm Technical Brief
Eitm Technical BriefEitm Technical Brief
Eitm Technical Briefbyunesiu
 
The Vertically Integrated Apple Pie: How vertical integration drives the need...
The Vertically Integrated Apple Pie: How vertical integration drives the need...The Vertically Integrated Apple Pie: How vertical integration drives the need...
The Vertically Integrated Apple Pie: How vertical integration drives the need...jmarkwort
 
AGILE CHM J-Marselje v5.2
AGILE CHM J-Marselje v5.2AGILE CHM J-Marselje v5.2
AGILE CHM J-Marselje v5.2Johan Marselje
 
Adaptive Business Capability
Adaptive Business CapabilityAdaptive Business Capability
Adaptive Business CapabilityMalcolm Ryder
 

Viewers also liked (19)

La resolución de problemas como una oportunidad dentro de las organizaciones:...
La resolución de problemas como una oportunidad dentro de las organizaciones:...La resolución de problemas como una oportunidad dentro de las organizaciones:...
La resolución de problemas como una oportunidad dentro de las organizaciones:...
 
Content Creation Process
Content Creation ProcessContent Creation Process
Content Creation Process
 
Purpose Driven Lean: Diving into The Lean IT Field Guide
Purpose Driven Lean: Diving into The Lean IT Field GuidePurpose Driven Lean: Diving into The Lean IT Field Guide
Purpose Driven Lean: Diving into The Lean IT Field Guide
 
Lean IT - Foundation
Lean IT - FoundationLean IT - Foundation
Lean IT - Foundation
 
¿Por qué es tan importante la cultura en el liderazgo de Lean IT?
¿Por qué es tan importante la cultura en el liderazgo de Lean IT?¿Por qué es tan importante la cultura en el liderazgo de Lean IT?
¿Por qué es tan importante la cultura en el liderazgo de Lean IT?
 
Design in Tech Report 2017
Design in Tech Report 2017Design in Tech Report 2017
Design in Tech Report 2017
 
The Next Evolution of Account-Based Marketing
The Next Evolution of Account-Based MarketingThe Next Evolution of Account-Based Marketing
The Next Evolution of Account-Based Marketing
 
Infographic: Medicare Marketing: Direct Mail: Still The #1 Influencer For Tho...
Infographic: Medicare Marketing: Direct Mail: Still The #1 Influencer For Tho...Infographic: Medicare Marketing: Direct Mail: Still The #1 Influencer For Tho...
Infographic: Medicare Marketing: Direct Mail: Still The #1 Influencer For Tho...
 
The Marketer's Guide To Customer Interviews
The Marketer's Guide To Customer InterviewsThe Marketer's Guide To Customer Interviews
The Marketer's Guide To Customer Interviews
 
Why Is Culture So Critical to Lean IT Leadership?
Why Is Culture So Critical to Lean IT Leadership?Why Is Culture So Critical to Lean IT Leadership?
Why Is Culture So Critical to Lean IT Leadership?
 
OBASHI® - Foundation
OBASHI® - FoundationOBASHI® - Foundation
OBASHI® - Foundation
 
Help us free the kees
Help us free the keesHelp us free the kees
Help us free the kees
 
Continuous is great
Continuous is greatContinuous is great
Continuous is great
 
Omista oma työsi sytyke seminaari 2016 09
Omista oma työsi sytyke seminaari 2016 09Omista oma työsi sytyke seminaari 2016 09
Omista oma työsi sytyke seminaari 2016 09
 
Eitm Technical Brief
Eitm Technical BriefEitm Technical Brief
Eitm Technical Brief
 
The Vertically Integrated Apple Pie: How vertical integration drives the need...
The Vertically Integrated Apple Pie: How vertical integration drives the need...The Vertically Integrated Apple Pie: How vertical integration drives the need...
The Vertically Integrated Apple Pie: How vertical integration drives the need...
 
Cobit trainigng schedule
Cobit trainigng scheduleCobit trainigng schedule
Cobit trainigng schedule
 
AGILE CHM J-Marselje v5.2
AGILE CHM J-Marselje v5.2AGILE CHM J-Marselje v5.2
AGILE CHM J-Marselje v5.2
 
Adaptive Business Capability
Adaptive Business CapabilityAdaptive Business Capability
Adaptive Business Capability
 

Similar to Measuring Success in the Lean IT World

it_Define_Service_Desk_Metrics_That_Matter_Storyboard.pptx
it_Define_Service_Desk_Metrics_That_Matter_Storyboard.pptxit_Define_Service_Desk_Metrics_That_Matter_Storyboard.pptx
it_Define_Service_Desk_Metrics_That_Matter_Storyboard.pptxAbdulelah Aljabri
 
Move from Business Intelligence to Advanced Analytics by Integrating IBM SPSS...
Move from Business Intelligence to Advanced Analytics by Integrating IBM SPSS...Move from Business Intelligence to Advanced Analytics by Integrating IBM SPSS...
Move from Business Intelligence to Advanced Analytics by Integrating IBM SPSS...Perficient, Inc.
 
9 Measuring and Improving Corporate IT Performance through the Balanced Score...
9 Measuring and Improving Corporate IT Performance through the Balanced Score...9 Measuring and Improving Corporate IT Performance through the Balanced Score...
9 Measuring and Improving Corporate IT Performance through the Balanced Score...wirtaagustin2
 
Practical Software Development Metrics
Practical Software Development MetricsPractical Software Development Metrics
Practical Software Development MetricsJari Kuusisto
 
The Business Value of System Center 2012
The Business Value of System Center 2012The Business Value of System Center 2012
The Business Value of System Center 2012jmustac
 
SNW Spring 10 Presentation General
SNW Spring 10 Presentation GeneralSNW Spring 10 Presentation General
SNW Spring 10 Presentation GeneralJeff Kubacki
 
Daniel Breston - DevOps metrics that matter
Daniel Breston - DevOps metrics that matterDaniel Breston - DevOps metrics that matter
Daniel Breston - DevOps metrics that matteritSMF UK
 
Key Performance Indicators
Key Performance IndicatorsKey Performance Indicators
Key Performance IndicatorsCIToolkit
 
PPT %GenMngmnt^Improvement - KPIs Complete Presentation.pdf
PPT %GenMngmnt^Improvement - KPIs Complete Presentation.pdfPPT %GenMngmnt^Improvement - KPIs Complete Presentation.pdf
PPT %GenMngmnt^Improvement - KPIs Complete Presentation.pdfSuhas Agawane
 
SQL Saturday STL 2016 Presentation
SQL Saturday STL 2016 PresentationSQL Saturday STL 2016 Presentation
SQL Saturday STL 2016 PresentationMatthew W. Bowers
 
Making your analytics talk business | Big Data Demystified
Making your analytics talk business | Big Data DemystifiedMaking your analytics talk business | Big Data Demystified
Making your analytics talk business | Big Data DemystifiedOmid Vahdaty
 
Inspire2015 Bank of America Merrill Lynch
Inspire2015 Bank of America Merrill LynchInspire2015 Bank of America Merrill Lynch
Inspire2015 Bank of America Merrill LynchAltan Atabarut, MSc.
 
Localization Metrics and KPIs
Localization Metrics and KPIsLocalization Metrics and KPIs
Localization Metrics and KPIsRWS Moravia
 
Facility Management Metrics That Matter
Facility Management Metrics That MatterFacility Management Metrics That Matter
Facility Management Metrics That MatterRobert Lambe, CFM
 
Why Value Stream is key to Digital Product Delivery
Why Value Stream is key to Digital Product Delivery Why Value Stream is key to Digital Product Delivery
Why Value Stream is key to Digital Product Delivery Mani Maun
 
Agile metrics.pdf
Agile metrics.pdfAgile metrics.pdf
Agile metrics.pdfForte Group
 
What ISO Management Systems can learn from Balanced Scorecard?
What ISO Management Systems can learn from Balanced Scorecard?What ISO Management Systems can learn from Balanced Scorecard?
What ISO Management Systems can learn from Balanced Scorecard?PECB
 
IT Governance Framework
IT Governance FrameworkIT Governance Framework
IT Governance FrameworkSherri Booher
 
CobiT, Val IT & Balanced Scorecards
CobiT, Val IT & Balanced ScorecardsCobiT, Val IT & Balanced Scorecards
CobiT, Val IT & Balanced ScorecardsMichael Sim
 

Similar to Measuring Success in the Lean IT World (20)

it_Define_Service_Desk_Metrics_That_Matter_Storyboard.pptx
it_Define_Service_Desk_Metrics_That_Matter_Storyboard.pptxit_Define_Service_Desk_Metrics_That_Matter_Storyboard.pptx
it_Define_Service_Desk_Metrics_That_Matter_Storyboard.pptx
 
Move from Business Intelligence to Advanced Analytics by Integrating IBM SPSS...
Move from Business Intelligence to Advanced Analytics by Integrating IBM SPSS...Move from Business Intelligence to Advanced Analytics by Integrating IBM SPSS...
Move from Business Intelligence to Advanced Analytics by Integrating IBM SPSS...
 
9 Measuring and Improving Corporate IT Performance through the Balanced Score...
9 Measuring and Improving Corporate IT Performance through the Balanced Score...9 Measuring and Improving Corporate IT Performance through the Balanced Score...
9 Measuring and Improving Corporate IT Performance through the Balanced Score...
 
Practical Software Development Metrics
Practical Software Development MetricsPractical Software Development Metrics
Practical Software Development Metrics
 
The Business Value of System Center 2012
The Business Value of System Center 2012The Business Value of System Center 2012
The Business Value of System Center 2012
 
SNW Spring 10 Presentation General
SNW Spring 10 Presentation GeneralSNW Spring 10 Presentation General
SNW Spring 10 Presentation General
 
Daniel Breston - DevOps metrics that matter
Daniel Breston - DevOps metrics that matterDaniel Breston - DevOps metrics that matter
Daniel Breston - DevOps metrics that matter
 
Key Performance Indicators
Key Performance IndicatorsKey Performance Indicators
Key Performance Indicators
 
PPT %GenMngmnt^Improvement - KPIs Complete Presentation.pdf
PPT %GenMngmnt^Improvement - KPIs Complete Presentation.pdfPPT %GenMngmnt^Improvement - KPIs Complete Presentation.pdf
PPT %GenMngmnt^Improvement - KPIs Complete Presentation.pdf
 
SQL Saturday STL 2016 Presentation
SQL Saturday STL 2016 PresentationSQL Saturday STL 2016 Presentation
SQL Saturday STL 2016 Presentation
 
Making your analytics talk business | Big Data Demystified
Making your analytics talk business | Big Data DemystifiedMaking your analytics talk business | Big Data Demystified
Making your analytics talk business | Big Data Demystified
 
Inspire2015 Bank of America Merrill Lynch
Inspire2015 Bank of America Merrill LynchInspire2015 Bank of America Merrill Lynch
Inspire2015 Bank of America Merrill Lynch
 
Localization Metrics and KPIs
Localization Metrics and KPIsLocalization Metrics and KPIs
Localization Metrics and KPIs
 
Facility Management Metrics That Matter
Facility Management Metrics That MatterFacility Management Metrics That Matter
Facility Management Metrics That Matter
 
Timothy Scerri Resume
Timothy Scerri ResumeTimothy Scerri Resume
Timothy Scerri Resume
 
Why Value Stream is key to Digital Product Delivery
Why Value Stream is key to Digital Product Delivery Why Value Stream is key to Digital Product Delivery
Why Value Stream is key to Digital Product Delivery
 
Agile metrics.pdf
Agile metrics.pdfAgile metrics.pdf
Agile metrics.pdf
 
What ISO Management Systems can learn from Balanced Scorecard?
What ISO Management Systems can learn from Balanced Scorecard?What ISO Management Systems can learn from Balanced Scorecard?
What ISO Management Systems can learn from Balanced Scorecard?
 
IT Governance Framework
IT Governance FrameworkIT Governance Framework
IT Governance Framework
 
CobiT, Val IT & Balanced Scorecards
CobiT, Val IT & Balanced ScorecardsCobiT, Val IT & Balanced Scorecards
CobiT, Val IT & Balanced Scorecards
 

Recently uploaded

Team Dynamics: A Journey to Excellence
Team Dynamics: A Journey to ExcellenceTeam Dynamics: A Journey to Excellence
Team Dynamics: A Journey to ExcellenceGDSC PJATK
 
Leading People - Harvard Manage Mentor Certificate
Leading People - Harvard Manage Mentor CertificateLeading People - Harvard Manage Mentor Certificate
Leading People - Harvard Manage Mentor CertificateVICTOR MAESTRE RAMIREZ
 
Dehradun🌹Vip ℂall Girls ❤Heer 931579xxxx💟 Full Trusted ℂALL GIRLS IN Dehradu...
Dehradun🌹Vip ℂall Girls  ❤Heer 931579xxxx💟 Full Trusted ℂALL GIRLS IN Dehradu...Dehradun🌹Vip ℂall Girls  ❤Heer 931579xxxx💟 Full Trusted ℂALL GIRLS IN Dehradu...
Dehradun🌹Vip ℂall Girls ❤Heer 931579xxxx💟 Full Trusted ℂALL GIRLS IN Dehradu...Mumbai Escorts
 
Management 13th Edition by Richard L. Daft test bank.docx
Management 13th Edition by Richard L. Daft test bank.docxManagement 13th Edition by Richard L. Daft test bank.docx
Management 13th Edition by Richard L. Daft test bank.docxssuserf63bd7
 
Presentation On "Yusuf Ibn Tashfin" a true leader (1061 to 1106)_ prepared by...
Presentation On "Yusuf Ibn Tashfin" a true leader (1061 to 1106)_ prepared by...Presentation On "Yusuf Ibn Tashfin" a true leader (1061 to 1106)_ prepared by...
Presentation On "Yusuf Ibn Tashfin" a true leader (1061 to 1106)_ prepared by...kamrulShuva
 
Mastering Compassion: A Heavenly Perspective on Leadership
Mastering Compassion: A Heavenly Perspective on LeadershipMastering Compassion: A Heavenly Perspective on Leadership
Mastering Compassion: A Heavenly Perspective on LeadershipbluetroyvictorVinay
 
UX in an Agile World - Scrum Gathering
UX in an Agile World -   Scrum GatheringUX in an Agile World -   Scrum Gathering
UX in an Agile World - Scrum GatheringKaizenko
 
DrupalCamp Atlanta 2022 - Effective Project Management
DrupalCamp Atlanta 2022 - Effective Project ManagementDrupalCamp Atlanta 2022 - Effective Project Management
DrupalCamp Atlanta 2022 - Effective Project ManagementNorah Medlin
 
TEST BANK for Operations Management, 14th Edition by William J. Stevenson,.pdf
TEST BANK for Operations Management, 14th Edition by William J. Stevenson,.pdfTEST BANK for Operations Management, 14th Edition by William J. Stevenson,.pdf
TEST BANK for Operations Management, 14th Edition by William J. Stevenson,.pdfmarcuskenyatta275
 
Uniting Efficiency and Quality_ The Synergy of Lean Management and Six Sigma.pdf
Uniting Efficiency and Quality_ The Synergy of Lean Management and Six Sigma.pdfUniting Efficiency and Quality_ The Synergy of Lean Management and Six Sigma.pdf
Uniting Efficiency and Quality_ The Synergy of Lean Management and Six Sigma.pdfEnterprise Wired
 
Mastering Agility_ Unveiling the Power of Agile Project Management.pdf
Mastering Agility_ Unveiling the Power of Agile Project Management.pdfMastering Agility_ Unveiling the Power of Agile Project Management.pdf
Mastering Agility_ Unveiling the Power of Agile Project Management.pdfEnterprise Wired
 
原版定制(UBC毕业证书)加拿大英属哥伦比亚大学毕业证原件一模一样
原版定制(UBC毕业证书)加拿大英属哥伦比亚大学毕业证原件一模一样原版定制(UBC毕业证书)加拿大英属哥伦比亚大学毕业证原件一模一样
原版定制(UBC毕业证书)加拿大英属哥伦比亚大学毕业证原件一模一样rtgdfgss
 

Recently uploaded (12)

Team Dynamics: A Journey to Excellence
Team Dynamics: A Journey to ExcellenceTeam Dynamics: A Journey to Excellence
Team Dynamics: A Journey to Excellence
 
Leading People - Harvard Manage Mentor Certificate
Leading People - Harvard Manage Mentor CertificateLeading People - Harvard Manage Mentor Certificate
Leading People - Harvard Manage Mentor Certificate
 
Dehradun🌹Vip ℂall Girls ❤Heer 931579xxxx💟 Full Trusted ℂALL GIRLS IN Dehradu...
Dehradun🌹Vip ℂall Girls  ❤Heer 931579xxxx💟 Full Trusted ℂALL GIRLS IN Dehradu...Dehradun🌹Vip ℂall Girls  ❤Heer 931579xxxx💟 Full Trusted ℂALL GIRLS IN Dehradu...
Dehradun🌹Vip ℂall Girls ❤Heer 931579xxxx💟 Full Trusted ℂALL GIRLS IN Dehradu...
 
Management 13th Edition by Richard L. Daft test bank.docx
Management 13th Edition by Richard L. Daft test bank.docxManagement 13th Edition by Richard L. Daft test bank.docx
Management 13th Edition by Richard L. Daft test bank.docx
 
Presentation On "Yusuf Ibn Tashfin" a true leader (1061 to 1106)_ prepared by...
Presentation On "Yusuf Ibn Tashfin" a true leader (1061 to 1106)_ prepared by...Presentation On "Yusuf Ibn Tashfin" a true leader (1061 to 1106)_ prepared by...
Presentation On "Yusuf Ibn Tashfin" a true leader (1061 to 1106)_ prepared by...
 
Mastering Compassion: A Heavenly Perspective on Leadership
Mastering Compassion: A Heavenly Perspective on LeadershipMastering Compassion: A Heavenly Perspective on Leadership
Mastering Compassion: A Heavenly Perspective on Leadership
 
UX in an Agile World - Scrum Gathering
UX in an Agile World -   Scrum GatheringUX in an Agile World -   Scrum Gathering
UX in an Agile World - Scrum Gathering
 
DrupalCamp Atlanta 2022 - Effective Project Management
DrupalCamp Atlanta 2022 - Effective Project ManagementDrupalCamp Atlanta 2022 - Effective Project Management
DrupalCamp Atlanta 2022 - Effective Project Management
 
TEST BANK for Operations Management, 14th Edition by William J. Stevenson,.pdf
TEST BANK for Operations Management, 14th Edition by William J. Stevenson,.pdfTEST BANK for Operations Management, 14th Edition by William J. Stevenson,.pdf
TEST BANK for Operations Management, 14th Edition by William J. Stevenson,.pdf
 
Uniting Efficiency and Quality_ The Synergy of Lean Management and Six Sigma.pdf
Uniting Efficiency and Quality_ The Synergy of Lean Management and Six Sigma.pdfUniting Efficiency and Quality_ The Synergy of Lean Management and Six Sigma.pdf
Uniting Efficiency and Quality_ The Synergy of Lean Management and Six Sigma.pdf
 
Mastering Agility_ Unveiling the Power of Agile Project Management.pdf
Mastering Agility_ Unveiling the Power of Agile Project Management.pdfMastering Agility_ Unveiling the Power of Agile Project Management.pdf
Mastering Agility_ Unveiling the Power of Agile Project Management.pdf
 
原版定制(UBC毕业证书)加拿大英属哥伦比亚大学毕业证原件一模一样
原版定制(UBC毕业证书)加拿大英属哥伦比亚大学毕业证原件一模一样原版定制(UBC毕业证书)加拿大英属哥伦比亚大学毕业证原件一模一样
原版定制(UBC毕业证书)加拿大英属哥伦比亚大学毕业证原件一模一样
 

Measuring Success in the Lean IT World

  • 1. Measuring Success in the Lean IT World
  • 3. Host and Presenter Deborah Burton Marketing Lead Lean IT Association (LITA)
  • 4. LITA - Pioneering a Global Standard for Lean IT Education & Certification ● Lean IT Association (LITA) is a non-profit organization founded by three Accredited Training Organizations (ATOs) - ITpreneurs, Pink Elephant, Quint Wellington Redwood and three Examination Institutes (EIs) - APMG, EXIN, PEOPLECERT International Ltd. To realize its broader purpose LITA aims to provide: ● An industry-standard set of Lean IT reference materials and other resources for practitioner organizations to use; ● An certification scheme aimed at practitioner organizations looking to adopt Lean IT principles in the IT Service development and operations department as well as professionals that want to be certified in Lean IT on various levels.
  • 5. Today's Guest Presenter Niels Loader, Partner, Quint Wellington Redwood, Content Board Lead, Lean IT Association, Chief Examiner Lean IT, APMG ● IT Service Management ● IT Performance Improvement ● Lean IT ● DevOps
  • 6. Watch the webinar recording Webinar Recording Measuring Success in the Lean IT World
  • 8. Today’s Agenda 1. Why do we need metrics? 2. Lean IT Metrics … and how to choose them 3. Getting metrics to work: Definition and Pitfalls How can I measure my success? Objective To ensure you can measure your improvements, successes and progress
  • 10. What Should I Measure? Age-old Question
  • 11. Why Measure?  Influence behavior  Ensure you have facts concerning a particular situation  Provides the answer to a question  Helps you to provide feedback
  • 12. Metrics are just the Beginning Why is it important Measure From goals to KPIs • Ensures discussions are based on facts • Ensures key measurements to monitor whether we are achieving our goals • Facilitates concrete discussions concerning targets Visualize From KPIs to steering information ▪ Consistent and effective communication about goals and priorities ▪ Enables real-time updates and continuous improvement ▪ Ensures everyone has access to the same information Steer From steering information to goals ▪ Ability to correct where things go wrong ▪ Ability to give feedback on performance (positive and negative) ▪ Ability to discuss responsibilities 12
  • 13. Key Lean IT Metrics 13
  • 14. Lean IT Metrics are Clearly Customer-focused 1. Lost Production Hours 2. Time to Market of Changes 3. Effectiveness of Changes 4. Quality of Plans 5. Number of Proactive Changes No IT Outages Quick Time to Market of Changes “Maintain current functionality” “Provide new functionality” “Give advice on current and new functionality” New Use of IT Listen to the Voice of the Customer when choosing metrics
  • 15. Customer-oriented metric: Disruptions No. of incidents and resolution times Time that incidents are open Time that IT customers cannot work Excess cost and lost revenue   Priority Total number Average time to repair (days) Number of users affected Gross lost production days Cost per day Dependancy Net Lost production days Net costs Costs per day to business per incident Total cost to the business Critical 1042 0.7 20 14,227 € 240 50 % 7,113 € 1,707,213 5000 € 3,556,695 High 2796 5.4 10 149,634 € 240 40 % 59,853 € 14,364,817 1000 € 14,963,351 Medium 12196 10.3 4 500,948 € 240 30 % 150,284 € 36,068,234 500 € 62,618,462 Low 376 9.8 1 3,699 € 240 20 % 740 € 177,556 100 € 369,908 16410 668,507 217,991 € 52,317,820 € 81,508,415 It’s about Lost Production Time not Mean Time To Repair!
  • 16. • A classic Lean process metric • Just-In-Time • Use for … everything • “Time to Market” – Start the positive part of the business case – Meet agreed implementation date – Work within budget – Reliability Customer-oriented metric: Lead Time 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 Average Customer Lead Time Total 4 per. Mov. Avg. (Total)
  • 17. Internal Lean IT metrics: Time Time is IT’s primary production factor Key Metric: Earning Capacity Analysis
  • 18. Internal Lean IT metrics: Delivery DevOps is the ultimate search for FLOW within IT Key Metric: Release Frequency 0 10 20 30 40 50 60 70 80 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 Number of Story Points per week Total 4 per. Mov. Avg. (Total)
  • 19. Bringing the Metrics Together: The KPI Tree 19
  • 21. Measuring is Not as Easy as it Seems Pitfalls of Metrics • Spending insufficient time on defining metrics • Focusing on the numbers and not on what the numbers are trying to tell you • Steering on individual scores rather than the trend • Creating ‘insignificant’ metrics • Always test metrics against Lean Principles
  • 22. Measurement Do's and Don’ts 22 • Do not assume that a measurement measures what people say it measures – Describe the purpose of the measurement • Clearly define the things you want to measure – Ensure the measurement process is accurate and precise enough for the purpose – Ensure the measurement is trusted and that its quality is constant – Define the population you are measuring – State when measurement starts and ends • Use tools to reduce errors You ALWAYS need to explain a measurement. No measurement is self- explanatory.
  • 23. Getting Metrics to Work: Definition KPI : Lead time Formula: Lead time • Date/time customer submits the request (in Service Now: field “Open Date”) subtracted from the date/time the request is fulfilled (in Service Now: field “Actual Close Date”. This gives the Lead time. • For each type of unit of work, the average lead time is calculated per week. . Issues (Ways in which the KPI can be 'gamed'): • Incorrect registration of stories and tickets may lead to an incorrect view of lead time performance. • Requests are not registered at all, meaning no data is available Frequency of reporting: Weekly Data should be updated on a daily basis, or be available realtime Measurement Accuracy 1 decimal Data collection process: - Extract data (see formula) from ServiceNow (separate files) - Stories from Backlog section - Tickets from Risk section - Load into Excel - Calculate Lead Time according to formula - Present data as a time series chart showing at least the last 16 weeks with a 4-period moving average trendline KPI owner: RS MT Category: process, customer Definition: Measure the lead time of all units of work in order to understand where improvements in processes can be made to decrease lead time Unit of measurement (%, number, index) - Number Level at which the performance indicator is used: RS MT, teams Goal: To influence behaviour towards ensuring that customers get the value they have requested as quickly as possible
  • 24. Getting Metrics to Work: Key Steps Defining and measuring metrics • Use the KPI card • Start with a quick measurement, automate later • Learn to work with the metric Using metrics • Focus on the behavior you want to change • Lean IT metrics lead to action • Integrate metrics into your visual management Setting goals • Leadership team of IT is responsible for setting the direction • Identify the aspects of strategy you want to measure
  • 25. Want to Learn More About How Metrics fit into Lean IT? 25
  • 26. Contact Us Niels Loader Partner Quint Wellington Redwood, LITA Lead Author Courseware Development n.loader@quintgroup.com Deborah Burton Marketing Lead Lean IT Association (LITA) deborah.burton@leanitassociation.com
  • 27. Experience Lean IT in Action We believe that “Lean Thinking” should be an integral part of every Enterprise IT organization and also every IT professional’s toolkit. Lean thinking is about understanding how to assess business processes, to identify and eliminate waste. Today, many IT professionals stakeholders from cross-functional areas -operational, tactical and strategic — have or are planning to get certified in Lean IT with the objective of reducing waste and improving efficiency. 27 Become a LITA Training Partner
  • 28. Watch the webinar recording Webinar Recording Measuring Success in the Lean IT World