Post on 20-Aug-2015
© Copyright Stephen Parry 2011 all rights reserved.
ALE September 2011
Creating an integrated ICT value stream using Lean and Agile thinking
Stephen ParrySee Business Differently
stephen.parry@seebusinessdifferently.comTwitter: LeanvoicesBlog: Leanvoices.comLinkedin
Author of Sense and Respond (MacMillan).
Visiting Fellow to the Lean Enterprise AcademyLean IT Strategy Advisor
© Copyright Stephen Parry 2011 all rights reserved.
1.Separating myth from reality.
2. What is wrong with the traditional approach?
3. Managing and Measuring for value.
4. Redesigning a fragmented ICT value stream.
5. Sustaining Lean and Agile environments to deliver long-term profitability.
© Copyright Stephen Parry 2011 all rights reserved.
Lean Myth Busters:
You won’t find Lean in the tools and methods.
It’s not about optimising waste; it’s about optimising value.
It’s not about managers fixing everything; it’s about the staff owning and solving problems.
It’s not only about processes; it’s about the whole service model and the ICT life-cycle.
It’s not about efficiency at all costs; it’s about effectiveness at the right cost.
This incorporates software development and innovation.
© Copyright Stephen Parry 2011 all rights reserved.
Lean and Agile : Problem Solving Organisations
Traditional organisations tend to keep problems hidden… you must not admit them…. If you do, then YOU become the problem.
Lean and Agile combine into a whole organisation or system designed to surface problems so that teams can solve them….
The assumption being that the problem is in the design of the ‘System’ and the way it conditions our thinking, not the people themselves.
© Copyright Stephen Parry 2011 all rights reserved.
Choice
Freedom
Power
Performance is a matter of having
which is a matter of
with the
Role Design
Processes and Procedures
Performance Measures
Policy
Technology
The organisation is a hindrance to both employees and customers.
Matter of Design
Organisational Transformation
to do what matters for customers.
So who do you need to ‘be’ to take action?…
© Copyright Stephen Parry 2011 all rights reserved.
The customer/service user challenge: They don’t have time………….they say things like:
Solve my problem, completely.
Don't waste my time or cause me hassle.
Minimise the cost of doing business with you.
Provide exactly what I need and deliver value where I need it.
Reduce the number of decisions I must make to resolve my problems.
Don’t get me to help you; I want you to help me!
Adapted from Lean Solutions: Jim Womack and Dan Jones by Stephen Parry
© Copyright Stephen Parry 2011 all rights reserved.
Question:
What would ICT organisations do if they had to pay for all the operational and
service user time they wasted?
Adapted from Lean Solutions: Jim Womack and Dan Jones by Stephen Parry
© Copyright Stephen Parry 2011 all rights reserved.
Traditional approach: Feasible parts creating an infeasible whole.
Functional units
Independent SolutionsDesigned to Meet functionalTargets andGoals.
Throughput process
It’s not unusual to have thirty or more solutions lining up for attention
F1 F2 F4F3 Fn
S1 S2 S4S3 Sn
© Copyright Stephen Parry 2011 all rights reserved.
Traditional approach: Feasible parts creating an infeasible whole.
Improved Customer Experience ?
Functional units
Independent SolutionsDesigned to Meet functionalTargets andGoals.
It’s not unusual to have thirty or more solutions lining up for attention
F1 F2 F4F3 Fn
S1 S2 S4S3 Sn
© Copyright Stephen Parry 2011 all rights reserved.
3. Managing and Measuring for Value
What to measure in a Lean environment
© Copyright Stephen Parry 2011 all rights reserved.
CORE Profile: Value definitions
Creates the possibility for developing new services that will satisfy customers or increase production and revenue.
OPPORTUNITY (Innovate)
Originates externally and is usually waste or demand that is created by other organisations, agencies or institutions.
EXTERNAL(Restore and Re-think)
Is defined by ‘Customer Purpose’. Deliver value effectively to customers and efficiently to the organisation.
CREATE(Optimise)
REMEDIAL(Restore and Remove)
Occurs when the organisation delivers unfit products or services. Production is lost, the customer is unhappy, resulting in loss of money, time, and reputation.
© Copyright Stephen Parry 2011 all rights reserved.
Customer Purpose Defines Value, What was once seen as Value is now seen as WASTE
all in addition to the 40% rework. There is no value in fixing symptoms. Fix the Road not the Tyres.
CREATE VALUE BIN
OPPORTUNITY TO CREATE VALUE BIN
Customer Purpose = Business Outcomes
RESTORE LOST VALUE BIN
EXTERNAL LOST VALUE BIN
RepeatFault
EngineerNot arrived
Computer is not working
ProgressChase
3rd PartyCan’t Supply Installation
MoveEquipment
ProvideQuote
Escalation SlowNetwork
ApplicationProblem
Nothing in here because no one was looking
© Copyright Stephen Parry 2011 all rights reserved.
Create
External
Opportunity
Remedial
8%
80%
2%
10%
CORE Profile: ICT support operationsBefore changing the service.
Source Fujitsu Case Study: Sense and Respond Book Used with kind permission
© Copyright Stephen Parry 2011 all rights reserved.
Create
External
Opportunity
Remedial
50%
33%
12%
5%
CORE Profile: ICT support operationsafter changing the service.
Source Fujitsu Case Study: Sense and Respond Book Used with kind permission
© Copyright Stephen Parry 2011 all rights reserved.
CORE Profile for Global IT end user application support (November 2009)
© Copyright Stephen Parry 2011 all rights reserved.
4. Redesigning a fragmented ICT value stream
Changing thinking, feelings and perceptions of management and staff.
© Copyright Stephen Parry 2011 all rights reserved.
18Looking at customer demand and impact: Diagnosing how much waste is created with poor applications, systems and processes.
© Copyright Stephen Parry 2011 all rights reserved.
5. Sustaining Lean and Agile environments to deliver long-term
profitability.
Changing the Climate by changing the design, measurement, job roles and management behaviours
© Copyright Stephen Parry 2011 all rights reserved.
Lean and Agile: Creating a learning and problem solving climate. Climetrics ® Model
Lean andAgile
Climate
Enga
ging
Und
erst
andi
ng a
nd d
efin
ing
Cus
tom
er n
eeds
Improving Innovation and Improvement
LeadingListen and A
dapt LeadershipLearning
Sense Making and Sharing
© Copyright Stephen Parry 2011 all rights reserved.
Lean and Agile, Creating a learning and problem solving climate. Climetrics ® Model
Engaging
Understanding and definingCustomer needs
Does the job design allow all staff to engage with customers and users?
To what extent can staff modify solutions without management permission?
Is everything forbidden unless permitted, or is everything permitted unless forbidden?
© Copyright Stephen Parry 2011 all rights reserved.
LearningSense Making and Sharing
Lean and Agile, Creating a learning and problem solving climate. Climetrics ® Model
Do staff routinely share business intelligence and improvement information with senior management ?
What is the management focus? - employee utilisation, cost reduction and work intensification or creativity, customer outcomes, problem solving, learning and sharing knowledge?
© Copyright Stephen Parry 2011 all rights reserved.
LeadingListen and Adapt Leadership
Lean and Agile, Creating a learning and problem solving climate. Climetrics ® Model
Do Leaders foster a no-blame climate to surface problems for teams to work on?
Do leaders routinely spend time at the workplace solving front-line issues with the staff?
Do leaders pay more attention to efficiency-driven functional targets or end-to-end effectiveness at creating customer and user outcomes?
© Copyright Stephen Parry 2011 all rights reserved.
Improving Innovation and Improvement
Lean and Agile: Creating a learning and problem solving climate. Climetrics ® Model
Do employees influence end-to-end business processes?
What influence does staff have over improving the measurement system?
What influence do employees have on improving products and services?
© Copyright Stephen Parry 2011 all rights reserved.
From first to last: Respect for peopleQuotes from Stephen Parry Seminar.
In this context ‘respect for people’, means understanding that all people have the ability to learn and the right to be given opportunities to
learn.
Managers helping employees freely choose how they solve
problems displays total respect.
There is a world of difference between helping people to see and telling them they are blind.
We believe people are capable of learning and taking on additional responsibility, and if you create the right environment, people will want to
learn and will actively seek more responsibility.
Most of all we must trust that people are capable of owning and solving their own problems with a
little bit of help.