Purpose Driven Lean:
Diving into The Lean
IT Field Guide
LITA
Executive
Webinar
May 17, 2016
WELCOME!
Host and Presenter
Deborah Burton
Member Marketing Team
Lean IT Association (LITA)
Channel Marketing Manager
ITpreneurs
3
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.
4
Guest
Presentation
Today's Guest Presenter
Tom Paider
Associate Vice President
Nationwide Insurance and Co-Author of
The Lean IT Field Guide
6
7
Watch Webinar Recording
Webinar Recording
Purpose Driven
Lean: Diving into
The Lean IT Field
Guide
8
Attempts to Understand and Replicate Toyota
1970’s 1980’s
• Statistical process
control and other
statistical tools used
to understand
problems
• Team based problem
solving
• JIT Tools including:
• Kanban
• Pull
• One Piece Flow
• Cellular Structures
• Toyota Production
System
• Understanding that
tools are part of
larger system
• Limited application
to production floor
and front line
employees
1990’s
• The Toyota Way described
the principles and behaviors
that drive Toyota
• Understanding of the
importance of the
management system and
principles in a lean
organization.
2000’s
1970’s
Whatwe
saw
1990’s 2000’s1980’s
Focus on Tools Understanding of Systems and Principles
9
10
A More Complex Portfolio Demands IT
Transformation
NEW WAY
OLD WAY
Source: Lean IT, Bell and Orzen
WHAT IS LEAN IT?
All applications of lean thinking, principles, methods, and tools in the world of information
management and technology. Lean IT is a new way of leveraging technology to engage people,
improve process, and solve problems.
11
Wait states due to starvation of prioritized
work flow into backlogs
Wait states due to contention for
downstream environments and
manual processes
Agile DDT
RUN
PLAN BUILD
SPEED
TIME
Teams waiting for work
due to “discrete”
planning processes
Delivery slowed down
by manual and high
ceremony processes
High Acceleration
during Design,
Develop and
Acceptance Testing
0
Enterprise Agile transformations often times leave behind the Plan and Run functions
12
DevOps is a set of practices and principles to optimize the
entire information technology value stream
Plan Build Run
Shift from vertical practices to
horizontal improvement
DevOps is a movement that aims to correct the
silo thinking and focus on the full value stream
13
Unit 1
Unit 2
Unit 3
SILO
WATERFALL
IT DELIVERY
MODEL
AGILE DEVELOPMENT
AGILE + DevOps
REQUIREMENTS
PROJECT ARCH
DESIGN
DEVELOPMENT
MANUAL TEST
MAN. DEPLOY
WATERFALL
MANUAL
ENVIRONMENTS
INCONSISTANT RELEASE PROCESS
INTEGRATED
PERSPECTIVE
SCHEDULED RELEASES
DEV ENVIRONMENT
PROVISIONING
PHYSICAL HW
PROVISIONING
PROJECT
PLANNING
INDIVIDUAL UNIT
PORTFOLIO PLANS
INTEGRATED
PLANS
WATER -------- SCRUM -------- FALL
INFRASTRUCTURE
VIRTUALIZATION
AGILE
DDT
DYNAMIC ENVIRONMENT
PROVISIONING
AUTOMATED
INFRASTRUCTURE
ORCHESTRATION
AGILE
DDT
CONTINUOUS DELIVERY
ITERATIVE
REQUIREMENTS
ENTERPRISE
REFERENCE ARCH
SOME AUTOMATED
TESTING
MANUAL DEPLOYMENT
CONTINUOUS PLANNING
& PRIORITIZATION
MICROSERVICES
ARCHITECTURE
AUTOMATED
TESTING
AUTOMATED DEPLOYMENT
Evolution of Software Development
FOOD FOR THOUGHT:
Over 70% of transformations fail
30%
70%
The benefits of agile, DevOps, Lean IT are
known, so why do so many transformations fail?
15
LEAN PURPOSE
Capability to ID
& Solve Problems
PDCA Thinking
PROCESSPEOPLE
16
LEAN IT
AGILE
LEAN MANAGEMENT
SYSTEM
DevOps
PURPOSE
Capability to ID
& Solve Problems
PDCA Thinking
PROCESSPEOPLE
17
Lean“Production”
Lean
Management
Foundational Elements
Super Glue
A Model for Lean IT Transformation
18
Case Study – Lean Management
19
16+
MILLION
POLICIES
$345
MILLION
CONTRIBUTED
TO NONPROFITS
AND COMMUNITIES
SINCE 2000
1#
WRITER OF
FARMOWNERS
7LARGEST
HOME INSURER
th
$195.2
BILLION
IN ASSETS
8th
LARGEST
COMMERCIAL
INSURER
$25.3 BILLION IN REVENUE FOR 2014
33,000 Nationwide associates serve
customers in every state
1#CORPORATE LIFE
WRITER
FOUNDED IN 1926
BY MEMBERS OF
THE OHIO
FARM BUREAU
8LARGEST
AUTO INSURER
th
IN THE U.S.
#1
PET & SMALL
BUSINESS
INSURER
#85ON THE
FORTUNE
500 LIST
WE ARE A STRONG MUTUAL COMPANY
BUILT TO SERVE OUR MEMBERS
20
TECHNOLOGY AT NATIONWIDE
35,000+
PERSONAL
COMPUTERS
10,000+
PHYSICAL & VIRTUAL
SERVERS
9,000+
IT WORKFORCE
PREDOMINANTLY
IN-HOUSE
$1+
BILLION
ANNUAL IT
SPEND
~8 PB
IN STORAGE
21
C-SUITE
FOUR TIERS FOCUSED ON
BUILDING LEAN LEADERS
LEAN MANAGEMENT SYSTEM
FRONTLINE
DIRECTOR
VICE PRESIDENT
TIER
1
TIER
2
TIER
3
TIER
4
22
LEAN MANAGEMENT SYSTEM
Credit: Creating a Lean Culture, David Mann
23
REAL TIME
MANAGEMENT
LEAN MANAGEMENT SYSTEM
MODELING
BEHAVIORS
LEADER STANDARD
WORK
25
ROLLED UP METRICS
TIER
1
TIER
2
TIER
3
TIER
4
26
A Four-Tier Management System
Sustaining the Lean Transformation
and Enabling Real-Time Management
All levels of the system are connected,
ensuring a common focus on value delivery,
employee engagement, and problem solving
Director
Frontline
Vice President
Workflow and daily identification
of key actions needed to address
previous days issues and prevent
reoccurrence
C-Suite
Daily
Gemba
Weekly
Gemba
Weekly
Gemba
Review of strategy, escalated items, longer
term trends, and continuous improvement
opportunities.
Tier I Visual and Huddle
System (Daily)
Tier IV Visual and
Huddle System
(Weekly)
Tier II Visual and
Huddle System (Daily)
Tier III Visual and
Huddle System
(Weekly)
Daily
Gemba
27
Old Model
Change thinking to
change behavior
New Model
Change behavior to
change thinking
What
We Do
Values and
Attitudes
Culture
ADC
“Start by changing how
people behave – what
they do.”
- John Shook
A FRAMEWORK FOR CHANGE
28
CLOSING THOUGHTS…
“START BY CHANGING HOW PEOPLE BEHAVE – WHAT THEY DO” – John Shook
• Old Model: Change Thinking to Change Behavior
• New Model: Change Behavior to Change Thinking
EFFECTIVE LEAN IT ADDRESSES ENGINEERING (PRODUCTION) AND MANAGEMENT
• Innovations such as Agile and DevOps are a part of the Lean IT body of knowledge
• Apply lean to the hard engineering processes and problems, not just the management or
peripheral processes
LEAN SUSTAINABILITY REQUIRES A LEAN MANAGEMENT SYSTEM
• Lean Management is the primary method of sustaining a lean transformation
• Efficiency is only the secondary benefit of lean management, the primary benefit is modeling
ideal behaviors for frontline staff
29
Lean IT Resources
31
Watch Webinar Recording
Webinar Recording
Purpose Driven
Lean: Diving into
The Lean IT Field
Guide
TOM PAIDER
Twitter: @paidert
Linkedin: thomaspaider
Web: purposedrivenlean.com
Thank You!
Questions?
Contact Us
Tom Paider
Associate Vice President
Nationwide Insurance and Co-Author
of The Lean IT Field Guide
tompaider1@gmail.com
Deborah Burton
Member Marketing Team
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.
35
Become a LITA Training Partner

Purpose Driven Lean: Diving into The Lean IT Field Guide

  • 1.
    Purpose Driven Lean: Divinginto The Lean IT Field Guide
  • 2.
  • 3.
  • 4.
    Host and Presenter DeborahBurton Member Marketing Team Lean IT Association (LITA) Channel Marketing Manager ITpreneurs 3
  • 5.
    LITA - Pioneeringa 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. 4
  • 6.
  • 7.
    Today's Guest Presenter TomPaider Associate Vice President Nationwide Insurance and Co-Author of The Lean IT Field Guide 6
  • 8.
    7 Watch Webinar Recording WebinarRecording Purpose Driven Lean: Diving into The Lean IT Field Guide
  • 9.
  • 10.
    Attempts to Understandand Replicate Toyota 1970’s 1980’s • Statistical process control and other statistical tools used to understand problems • Team based problem solving • JIT Tools including: • Kanban • Pull • One Piece Flow • Cellular Structures • Toyota Production System • Understanding that tools are part of larger system • Limited application to production floor and front line employees 1990’s • The Toyota Way described the principles and behaviors that drive Toyota • Understanding of the importance of the management system and principles in a lean organization. 2000’s 1970’s Whatwe saw 1990’s 2000’s1980’s Focus on Tools Understanding of Systems and Principles 9
  • 11.
    10 A More ComplexPortfolio Demands IT Transformation
  • 12.
    NEW WAY OLD WAY Source:Lean IT, Bell and Orzen WHAT IS LEAN IT? All applications of lean thinking, principles, methods, and tools in the world of information management and technology. Lean IT is a new way of leveraging technology to engage people, improve process, and solve problems. 11
  • 13.
    Wait states dueto starvation of prioritized work flow into backlogs Wait states due to contention for downstream environments and manual processes Agile DDT RUN PLAN BUILD SPEED TIME Teams waiting for work due to “discrete” planning processes Delivery slowed down by manual and high ceremony processes High Acceleration during Design, Develop and Acceptance Testing 0 Enterprise Agile transformations often times leave behind the Plan and Run functions 12
  • 14.
    DevOps is aset of practices and principles to optimize the entire information technology value stream Plan Build Run Shift from vertical practices to horizontal improvement DevOps is a movement that aims to correct the silo thinking and focus on the full value stream 13
  • 15.
    Unit 1 Unit 2 Unit3 SILO WATERFALL IT DELIVERY MODEL AGILE DEVELOPMENT AGILE + DevOps REQUIREMENTS PROJECT ARCH DESIGN DEVELOPMENT MANUAL TEST MAN. DEPLOY WATERFALL MANUAL ENVIRONMENTS INCONSISTANT RELEASE PROCESS INTEGRATED PERSPECTIVE SCHEDULED RELEASES DEV ENVIRONMENT PROVISIONING PHYSICAL HW PROVISIONING PROJECT PLANNING INDIVIDUAL UNIT PORTFOLIO PLANS INTEGRATED PLANS WATER -------- SCRUM -------- FALL INFRASTRUCTURE VIRTUALIZATION AGILE DDT DYNAMIC ENVIRONMENT PROVISIONING AUTOMATED INFRASTRUCTURE ORCHESTRATION AGILE DDT CONTINUOUS DELIVERY ITERATIVE REQUIREMENTS ENTERPRISE REFERENCE ARCH SOME AUTOMATED TESTING MANUAL DEPLOYMENT CONTINUOUS PLANNING & PRIORITIZATION MICROSERVICES ARCHITECTURE AUTOMATED TESTING AUTOMATED DEPLOYMENT Evolution of Software Development
  • 16.
    FOOD FOR THOUGHT: Over70% of transformations fail 30% 70% The benefits of agile, DevOps, Lean IT are known, so why do so many transformations fail? 15
  • 17.
    LEAN PURPOSE Capability toID & Solve Problems PDCA Thinking PROCESSPEOPLE 16
  • 18.
    LEAN IT AGILE LEAN MANAGEMENT SYSTEM DevOps PURPOSE Capabilityto ID & Solve Problems PDCA Thinking PROCESSPEOPLE 17
  • 19.
  • 20.
    Case Study –Lean Management 19
  • 21.
    16+ MILLION POLICIES $345 MILLION CONTRIBUTED TO NONPROFITS AND COMMUNITIES SINCE2000 1# WRITER OF FARMOWNERS 7LARGEST HOME INSURER th $195.2 BILLION IN ASSETS 8th LARGEST COMMERCIAL INSURER $25.3 BILLION IN REVENUE FOR 2014 33,000 Nationwide associates serve customers in every state 1#CORPORATE LIFE WRITER FOUNDED IN 1926 BY MEMBERS OF THE OHIO FARM BUREAU 8LARGEST AUTO INSURER th IN THE U.S. #1 PET & SMALL BUSINESS INSURER #85ON THE FORTUNE 500 LIST WE ARE A STRONG MUTUAL COMPANY BUILT TO SERVE OUR MEMBERS 20
  • 22.
    TECHNOLOGY AT NATIONWIDE 35,000+ PERSONAL COMPUTERS 10,000+ PHYSICAL& VIRTUAL SERVERS 9,000+ IT WORKFORCE PREDOMINANTLY IN-HOUSE $1+ BILLION ANNUAL IT SPEND ~8 PB IN STORAGE 21
  • 23.
    C-SUITE FOUR TIERS FOCUSEDON BUILDING LEAN LEADERS LEAN MANAGEMENT SYSTEM FRONTLINE DIRECTOR VICE PRESIDENT TIER 1 TIER 2 TIER 3 TIER 4 22
  • 24.
    LEAN MANAGEMENT SYSTEM Credit:Creating a Lean Culture, David Mann 23
  • 26.
    REAL TIME MANAGEMENT LEAN MANAGEMENTSYSTEM MODELING BEHAVIORS LEADER STANDARD WORK 25
  • 27.
  • 28.
    A Four-Tier ManagementSystem Sustaining the Lean Transformation and Enabling Real-Time Management All levels of the system are connected, ensuring a common focus on value delivery, employee engagement, and problem solving Director Frontline Vice President Workflow and daily identification of key actions needed to address previous days issues and prevent reoccurrence C-Suite Daily Gemba Weekly Gemba Weekly Gemba Review of strategy, escalated items, longer term trends, and continuous improvement opportunities. Tier I Visual and Huddle System (Daily) Tier IV Visual and Huddle System (Weekly) Tier II Visual and Huddle System (Daily) Tier III Visual and Huddle System (Weekly) Daily Gemba 27
  • 29.
    Old Model Change thinkingto change behavior New Model Change behavior to change thinking What We Do Values and Attitudes Culture ADC “Start by changing how people behave – what they do.” - John Shook A FRAMEWORK FOR CHANGE 28
  • 30.
    CLOSING THOUGHTS… “START BYCHANGING HOW PEOPLE BEHAVE – WHAT THEY DO” – John Shook • Old Model: Change Thinking to Change Behavior • New Model: Change Behavior to Change Thinking EFFECTIVE LEAN IT ADDRESSES ENGINEERING (PRODUCTION) AND MANAGEMENT • Innovations such as Agile and DevOps are a part of the Lean IT body of knowledge • Apply lean to the hard engineering processes and problems, not just the management or peripheral processes LEAN SUSTAINABILITY REQUIRES A LEAN MANAGEMENT SYSTEM • Lean Management is the primary method of sustaining a lean transformation • Efficiency is only the secondary benefit of lean management, the primary benefit is modeling ideal behaviors for frontline staff 29
  • 31.
  • 32.
    31 Watch Webinar Recording WebinarRecording Purpose Driven Lean: Diving into The Lean IT Field Guide
  • 33.
    TOM PAIDER Twitter: @paidert Linkedin:thomaspaider Web: purposedrivenlean.com Thank You!
  • 34.
  • 35.
    Contact Us Tom Paider AssociateVice President Nationwide Insurance and Co-Author of The Lean IT Field Guide tompaider1@gmail.com Deborah Burton Member Marketing Team Lean IT Association (LITA) deborah.burton@leanitassociation.com
  • 36.
    Experience Lean ITin 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. 35 Become a LITA Training Partner