Understanding Lean IT

Understanding Lean IT
- Paul Snowdon BA, BASc, Master Black Belt
The webinar will begin in 5 minutes
The Smarter Everyday project is owned and operated by CTE Solutions Inc.

Understanding Lean IT
- Paul Snowdon BA, BASc, Master Black Belt
The Smarter Everyday project is owned and operated by CTE Solutions Inc.

SnowdonConsulting
www.snowdonconsulting.ca
November 6, 2014
Your Presenter
• Runs a boutique training, coaching and
consulting firm focused on leading and
coaching organizations through change
• Core expertise in Coaching, Leadership,
Strategy Deployment, Lean Six Sigma, Process
Innovation, IT PMO
• Consulting in the IT Sector for past 7 years
• Founder of the Certificate of Lean Six Sigma at
University of Toronto, School of Continuing
Studies (now the 3rd largest certificate at
UofT!)
• Has trained thousands of ‘belts’ covering every
industry sector

SnowdonConsulting
November 6, 2014
Three Critical Trends in IT
1. IT is a broker of
services
2. Silos and sprawl are
killing IT agility
3. The IT budget math
isn’t working

Setting the Stage … Some Questions
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• Are you satisfied with the % of costs required to
support on going operations?
• Are you satisfied with the length of time to deploy?
• Are you satisfied with the amount of time your
teams spend on creating innovative solutions for
your organization?
• Are you satisfied with your Change, Incident and
Problem Management processes?
• Are your IT Infrastructure people and processes
ready to be brokers of IT Services?
• Are you satisfied with IT Service Quality mind-set in
your organization?
If the answer to any of these questions is No, Lean IT can
help…

November 6, 2014
The Big Question that Lean Answers
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How can we reduce the
time from when our
customer says they want
something, until they get it
and pay for it?

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Focus of Lean IT
IT Service Delivery is enabled
through People, Process and
Technology
• Traditional focus in IT is on
Technology
• Lean IT focuses heavily on
People and Process.
• Service Delivery is improved by
using both
People Process
Technology
IT professionals with Lean IT capability and deep Technology
knowledge can dramatically improve the quality of IT
Services

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Lean Thinking
• Based on the Toyota Production System,
created by Taichi Ohno
• A principle driven, tool based philosophy
that focuses on eliminating waste so that all
activities/steps add value from the
customer’s perspective.
• Popularized in North America and Europe
by the book Lean Thinking

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Goal of a Lean Organization
Create the ability to:
1. Deliver the exact product /
service
2. In the exact quantity
3. With the exact quality that the
customer needs
4. Exactly when they need it
Lean IT is the application of these principles to improve the
efficiency, effectiveness and economics of IT Service Delivery.

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What Lean IT is Not
• A replacement for proven engineering,
software design and related technical
principles and practices
• Bad code is still bad code
• Poor engineering design is still poor engineering
design
• A substitute for leadership and people
management activities
• Leaders still need to lead, set vision and align
people/resources around important goals
• Management activities still need to be focused on
efficient use of resources/people to achieve goals
• A substitute for a technology strategy and
vision for the organization

What does Lean IT really mean?
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Lean IT means:
• Reduce Steps
• Reduce Errors
• Reduce Complexity
• Increase IT Agility
• Free Up the Capacity of IT to focus on Innovation
Which leads to:
• Increased Ratio of Planned to Unplanned Work
• Increased Mean Time Between Failure (MTBF)
• Reduced Mean Time To Release (MTTR)
• Reduced Mean Time To Resolve (MTTR)
• Increased Availability
• Increased % of Successful Changes
• Increased Server to Sys Admin Ratio
• Increased % Effort Deployed Early in Change-Release Cycle
• Improved Ratio of Ongoing Support Costs to Innovation Costs
• Improved employee engagement and productivity

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Lean Definitions
1. Value Added
• Value is a product or service that the customer is
willing to pay for e.g.. Processing a loan, printing
cheques etc.
2. Non Value Added
• An activity that the customer would be unwilling
to pay for in isolation eg. Waiting times, checking
work, correcting errors
3. Value Enabling or Business Value Added
• An activity that is required to operate the
business but the customer is unwilling to pay for,
eg., budget tracking, internal controls.

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Defining Waste
• Transport
• Inventory
• Motion
• Waiting
• Over-production
• Over-processing
• Defects/Inspection
People’s Talents
Do you know TIM WOOD?

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Scenario
You are looking at the improve the
mean time to release. You have been
told that it takes ‘way too long’.
You have measured the following
processes and collected the following
times:
Requirements Gathering: 4 weeks
Development: 12 weeks
Configuration: 1 week
QA: 6 weeks
Release: 1 day
What will you fix to
make this process
go faster?

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Defining Value and Waste
Req’s Dev Config QA Release
Time
Value Added Work Non-Value Added Work
Before
After
Would you believe …
Typical non-value to value-added ratio is of the order of 99:1
You need to consider the entire value stream

IMHO …. Critical ITIL Processes That
Drive Continual Service Improvements
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Change
Management
• Purpose: Ensure that
changes are recorded,
evaluated, authorized,
prioritized, planned,
tested, implemented,
documented in a
controlled manner
Incident
Management
• Purpose: Restore normal
service as quickly as
possible, and to minimize
the adverse impact on
business operations
Problem
Management
• Purpose: to prevent
problems and resulting
incidents from happening,
to eliminate recurring
incidents and to minimize
the impact of incidents
that cannot be prevented
What is the
impact of
Waste
(TIMWOOD)
on these ITIL
Processes?

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November 6, 2014
So what are all these
belts that I keep hearing
about?

Green Belt
Yellow Belt
Team Member
Team Member
Team Member
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Lean Projects – Typical Roles
Senior Executive Team
Project
Sponsor
Project
Sponsor
Project
Sponsor
Black Belt
Green Belt
Green Belt
Yellow Belt
Team Member
Project Team One
Black Belt
Yellow Belt
Yellow Belt
Team Member
Team Member
Project Team Two Project Team Three
Master Black
Belt or
Black Belt
Business Unit
Champion

Overview of Lean Certifications – The
‘Belts’
Project Role Part Time
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Project
Role
Full Time
Project
Role
Training Goal of Certification
White Belt ✓ ½ day • Awareness of Basic Lean Principles
Yellow Belt ✓ 2-3 days
• Understanding of Core Lean Principles
and Practices
• Participate in Lean Projects
Green Belt ✓ 5-10 days
• Understanding of Core Lean Principles
and Practices
• Lead Kaizens and Small/Medium Lean
Projects
Black Belt ✓ 10-20 days
• Deep Understanding of Lean and
Continuous Improvement Principles
and Practices
• Lead Large Lean Projects
• Train and Coach GB, YB, WB
Master Black
Belt / Sensei
✓ 20+ days
• Mastery of Lean and Continuous
Improvement Principles and Practices
• Lead Enterprise-wide Lean Initiatives
• Train and Coach BB, Executives
Champion ✓ 1-2 days
• Select and Champion Lean Projects
• Implement Lean Management
Principles

November 6, 2014
Lean IT Training at CTE Solutions
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• 3 day Yellow Belt Lean IT course in
Toronto (Nov 3-5, 2014)
• Cost = $2,095/student
• Instructor led training, hands-on,
experiential learning
• Course covers core Lean IT skills and
tools
• Yellow Belt Certification
• Complete training AND
• Complete a 30 question, multiple choice
exam, with a score of 50% or higher
• Exam is completed in class (1 hr duration)

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November 6, 2014
Q & Eh…

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Thank you for your time!
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Paul Snowdon BA, BASc, Master Black Belt

Training with impact
TECHNICAL MANAGEMENT BUSINESS
Microsoft
VMware
Cloud Computing
IT and Cyber Security
CompTIA
Java Programming-
Languages
Novell & UNIX
TOGAF
Enterprise
Architecture
ITIL
COBiT
Agile and Scrum
Business Analysis
Project Management
Change Management
Communication Skills
Leadership Skills
Negotiation Skills
Problem Solving Skills
Facilitation Skills
and many more…
SnowdonConsulting sales@ctesolutions.com

CTE Solutions Inc. - Ottawa
11 Holland Avenue, Suite 100
Ottawa, Ontario, K1Y 4S1
Tel: (613) 798-5353
Toll Free: 1 (866) 635-5353
Fax: (613) 798-5574
CTE Solutions Inc. - Toronto
77 Bloor St. West, Suite 1406
Toronto, Ontario M5S 1M2
Tel: (416) 284-2700
Toll Free: 1 (866) 635-5353
Fax: (416) 284-6797
For Free Training
Resources
SnowdonConsulting sales@ctesolutions.com

Understanding Lean IT

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