Lean Pilots An Innovative Framework for Solving Enterprise-Level Challenges

Dr. Mariya Breyter, Director of Agile and Lean Practices

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Agenda

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WHY? WHAT? HOW? CASE STUDIES LESSONS LEARNED WE ARE JUST STARTING

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Why, What, & How

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It is a capital mistake to theorize before one has data.Arthur Conan Doyle

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Root cause

• Paint point: cross-functional inefficiencies identified via “waste walk”

• Lean and Agile successfully delivering value, but in silos

• Dun & Bradstreet experimented with combining the two methodologies to address enterprise-level challenges, while minimizing the risk by providing a Lean structure and Agile cadence

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The “Why”To address multiple common delivery pain points:

• Technology and Business misalignment

• Turnaround time of implementation cycle

• Unsynchronized product launch strategy

• Lack of automation in the process

• Poor customer satisfaction

• Compliance and other regulatory requirements

• Process inefficiencies

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The “What”

• Our pilot is a limited test of Lean Six Sigma solutions on an existing process

• Creating multiple DMAIC loops, the pilot is an opportunity to test Root Cause Hypotheses while minimizing risks and cost

• We identified 4 major areas of opportunity: cycle-time, hand-offs, quality of data, and vintage technology

• Lean Pilots use “lean startup” approach of running experiments to minimize effort and reduce waster in an agile environment

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The “How”

Repeatable Framework:

We are creating solutions to address each area of opportunity by iterative implementation of quick wins, while working on short-term, mid-term and long-term solutions, implemented by a dedicated, cross-functional solution team

Lean startup image source: https://leanstartup.co/. Agile Image distributed under GNU Free Documentation License

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Framework Summary

• Build a cross-functional team

• Empower decision making at the team level

• Use lean methodology to prioritize work (use the 80/20 rule)

• Deliver using Scrum framework so that iterative milestones are defined by the team, and the value is delivered at regular intervals with complete transparency

• Use JIRA to track user stories in a backlog

Continuous Improvement

Sim

plic

ity Fail Fast,

Succeed

FasterSee The Big Picture

Long-standing, Self-organizing Teams

Empowered Employees and Trusted Leaders

Case Study I CONTRACT AUTOMATION

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Not a silver bullet,

but you will get:

• Big challenging initiatives broken

down into smaller, more achievable

efforts

• Incremental value being delivered

earlier

• Transparency into progress,

challenges, risks

• Explicit ‘Go / No Go’ Decision Points

• Learnings with limited investment

How you can help…

• Confirm Value: Feedback on

proposed approach

• Stay Engaged:

o Recommend Update Every 3

Weeks

o Sponsors attend demos (for

those pilots that have them)

• Be Available: To remove blockers /

impediments the teams raise

• Provide Feedback: Let us know

what is working / needs

improvement

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The timeline…Incremental Accelerated

Delivery with Visibility

and Impact

March JulyApril May June

Match

Contracts

Pilot Kick-off

Match

Agile

Squad Set

Up

Match

Report Back to Execs

on Sprint 1

Objectives

Match

Sprint 1 Demo

Match

Sprint 2 Demo

…3 weeks

Match

Go/No Go

Decision

• Assemble team

• Develop Backlog

• Create Environments

Pilot Kick-off

Bid Process

Align with

Partners

Go/No Go

Decision

Bid Process

Socialize with/get

feedback from key

Partners

Bid Process

Assessment

Kick-off

Share Recommendations.

Go/No Go Pilot?

• Visualize existing

flow/cycle time

• Identify opportunities

Bid Process

Contracts

Develop Bid Process

Standardization deck

and finalize GO ROE

Proposal with help

from SMEs

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SummaryProblem/Opportunity: We want to make it easier for customers to do business with us in order to improve customer experience and increase sales. Success Criterion: Increase number of electronic acceptances.

Enterprise Agreement

MASTER AGREEMENT

Rolled-out new Master Agreement for December close.

• Fourteen (14) Master Agreement based matters were addressed by the commercial legal team in December

• Language from new Master Agreement was used to address issues raised by customers on older executed Master Agreements

• Significantly fewer redlines were identified

• Training scheduled with other global teams

31%

44% 43%46%

56%

30%

40%

50%

60%Electronic Acceptance 2016

ONLINE TERMS

Implemented Pilot for Online Terms on January 21st.

• Results in a simplified order form which focuses on product specific terms

• All general terms and conditions are in a link incorporated by reference

Case Study 1IGLOBAL THIRD PARTY ENGAGEMENT

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Global 3rd Party EngagementPilot Title Global 3rd Party Engagement

Problem / Opportunity

We want to make it easier for customers to do business with 3rd parties by improving the on-boarding process

Long-Term Objectives

• Streamline the on-boarding process• Automate the on-boarding process• Capture the current on-boarding cycle time for 3rd parties• Reduce on-boarding cycle time for 3rd parties

Scope Improve end-user experience for onboarding 3rd parties (start to finish).

Success Criteria

• Improved customer experience• Reduced cycle time for 3d party on-boarding from an average of 17.6 days to less than 10• Improved communication of SLA• Improved communication of current status and next steps

Implementation Team <team members>

Executive Sponsor: <Name>Product Owner: <Name>

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Global Third Party Engagement: Service Level Targets

Milestone 1 (Sprint 2 outcome)

Milestone 2 (Sprint 3 target)

End Goal

• Customer Advisory Group (CAG) • Upfront communication to set

expectations, provide awareness of forms required, and identify next steps

• Interim steps to expedite contract review

• Touchpoints consolidation • Accelerated Screening process • Accelerated Contract

Negotiation process

Service Level Target: 12 days

Service Level Target: 10 days

Service Level Target: 6 days*

Note: Aggregate Benchmark “Best in class” Service Level : 10 days

* Simple agreements, using D&B paper and no redlines. Screening:3 days, Legal and other stakeholders:2 days, GS&P: 1 day

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One Release…

September October November

• Identify & assemble team• Develop backlog• Create communications

plan and risk mitigation strategy

• Define success criteria and baseline data

3POB 3POB 3POB 3POB

• Baseline data collected

• Root cause analysis completed

• Specific steps identified

• Metrics defined• Improvement 1

implemented

3POB

• Improvements 1 and 2 measured

• Improvement 3 implemented

• Pivot as needed to achieve objectives utilizing decision-making process

3 weeks

• Improvement 1 measured

• Pivot implemented

• Improvement 2 implemented

3 weeks 3 weeks 3 weeks

December

3POB

• Review progress against success criteria

• Prepare training and documentation

3 weeks

January

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Breakdown of Supplier Engagement Cycle Time (in business days)

47.3%

7.3%

45.5%

Baseline Data

68%

8%

24%

Sprint 1-3 Data

Overall Cycle Time Improvement: 49.3%

69.7%

18.2%

12.1%

Sprint 4-5 Data

27%

22%

Third Party Engagement Cycle Time Improvement

Global Third Party Engagement Process Improvement:

Pulse Check Survey Results

33% say it is much better. Trending %8

71% of customers said they received a timely response from the team. Trending %4

45% of customers say new instructions are easy to follow.

76% of customers say current experience with supplier engagement is better than previous experience.

Info gathered through Dec. 31, 2016

Trending 5%

Trending 4%

Case Study IIIDUNS RESEARCH

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Problem Statement

Feedback from one of our major customer groups

indicated our DUNS Number assignment process

is confusing and does not meet their expectations

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Customer Pain Points

• Multiple potential points of entry are confusing to

customers

• Non D&B Websites and some internal sites are driving

inconsistent experiences including potential charges to

create DUNS Number

• Significant portion of mini investigations that do not

result in the creation of a DUNS Number are due to

“Unable to Contact and Verify Data”

• Strained market resources are driving backlogs and

extended turn around times in specific markets

• Lack of clear escalation path and support for issues

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Key Metrics Impact: July 2016 to January 2017

An

swer

wit

h D

UN

S#

As a result of the solutions developed in the pilot, key metrics are continuing to improve

IMPLEMENT CONSISTENT

QUALITY MONITORING

STREAMLINE VALIDATION

PROCESS

AUTOMATION DRIVES

VELOCITY

COLLABORATION WITH KEY

BUSINESS PARTNERS

MODERNIZE CONTACT

METHODOLOGY

REDESIGN CUSTOMER SUPPORT

MODEL

Cu

st

om

er

S

at

is

fa

ct

io

n

Case Study IVPRIVACY SHIELD

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What is the EU-US Privacy Shield?

The EU-US Privacy Shield Framework is an agreement by the U.S. Department of Commerce and European Commission to provide companies with a mechanism to comply with EU data protection requirements when transferring personal data from the EU to the United States.

The Framework ensures a continuing level of protection consistent with Privacy Shield Principles when European Union (EU) personal data collected under the Framework is transferred to third parties.

Privacy Shield replaces the former EU-US Safe Harbor framework.

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What does Privacy Shield Certification mean?

• Dun & Bradstreet certified that it complies

with Privacy Shield Principles on September

26, 2016.

• Dun & Bradstreet has a grace period of 9

months from September 26 to comply with

the Accountability for Onward Transfer

Principle.

• This Principle requires Dun & Bradstreet to

inform customers and vendors who receive

EU personal information that they must follow

the privacy shield principles.

New Customers/Orders:

Post-certification, Privacy Shield

language added to new Orders and

Master Agreements.

Existing Customers:

Each Line of Business (LOBs)

represented on Lean-Agile Team &

developed implementation plan

Lessons Learned

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Welcome Early Failure

Self Organizing Cross-Functional Teams

Enterprise Level Collaboration

Data Inspired in Everything We Do

How to ensure cross-enterprise

alignment?

How to ensure fast decision

making?

How to experiment

safely?

What were the challenges and what did we learn?

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Lessons Learned

• Lean Pilots promote mastery, autonomy and purpose for employees

• Participants enjoy working on cross-functional teams and cross-level team (e.g. legal leaders and marketing analysts)

• Role definition is the key in setting expectations

• Best of all three worlds• Rapid validation is a direct way of solving

multi-year company-wide problems with minimum time and effort

• It is important to close Lean Pilots early (go/no-go every 3 months)

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• Developed the framework; draft playbook is in progress

• Established Lean Pilots as a brand across Dun &Bradstreet and generated high demand with zero marketing

• Defined scoring framework around new pilots as well as an exit and handover scoring system

• Ready to share externally as a comprehensive framework

Where we are today

Image by Daniel Penfield (Own work) [CC BY-SA 4.0 (http://creativecommons.org/licenses/by-sa/4.0)], via Wikimedia Commons

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Testimonials

“The amount of work would never happen in 3-4 weeks. All projects should be done this way.” - Team Member

“Standups twice a week work. Useful process and kept us on track.”

- Product Owner

“It helps to lean in and go forward”- Team Member

“Sprinting prevents people from being overwhelmed on complex process improvement initiatives. It provides clear measurable goals by prioritizing set of improvements and organizing implementation into chunks. It is different from lean because it takes ownership of implementation, not just the research.”- Product Owner

“At some point, the Global Third Party Engagement Project itself may wind down, but the philosophy has instilled in us the mindset to apply the same approach to everything else we do.” - Product Owner

“I’m very happy with how this project is going and I like the opportunity it provides me to provide regular feedback.” -Stakeholder

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What’s Next?

• Establish a repeatable lean project framework inside Dun & Bradstreet and make it available to anyone within the company

• Start offering lean pilots as a service by Lean PMO

• Get buy in and excitement across the organization to further drive Lean Enterprise adoption

• Share externally and learn from others who implement this framework in their organizations

Mariya Breyter breyterm@dnb.com http://www.agileleantransformation.com/ @mbreyter

This deck was prepared in collaboration with Misbah Chaudhry, Vincent Miller, Katie Waugh and Lean Pilot team members