lean design for services

Design for Lean Services

Designing for maximum value and minimum waste

©2016 Globe North, LLC All rights reserved

What we will cover

• Lean and Design

• Design for Lean Services

• Getting Started


Lean and Design

• Lean programs usually start with focus on continuous improvement of existing processes

• Emphasis is on identifying quick wins resulting from simple solutions to simple problems

– Removing bottlenecks

– Reducing defects

• Rarely in early phases of deployment is Design for Lean considered

• As programs mature, leaders at all levels should look for opportunities to “start with a blank sheet,” especially for new processes or ones being considered for major redesign including IT investment


When to Design for Lean?

• When a new service is required - for example supporting a new statute

• When major investments - such as IT enablement are planned and process should be redesigned prior to development

• When an existing process is no longer capable even with some improvement to meet changing requirements


Lean Manufacturing and Design

• Lean focuses on customer value

• Lean requires building in concepts of 5S and Continuous Flow

• Lean requires screening out sources of input and process variation that could cause defects

• Lean requires respecting people, hearing their ideas and concerns

Value

Value Stream

Flow

Pull

PerfectionLean Principles


Current Thinking on Lean and Design

• Design Thinking

• Lean Start Up

• Agile Development

Source: Xavior Miller


Lessons from Design Thinking

• Empathize – observe and achieve understanding of customer needs

• Define – the opportunity

• Ideate –to many approaches to satisfy need

• Prototype – select alternatives

• Test – alternatives for ability to meet needs

• Iterate as requiredDesign Thinking


Lessons from Lean Startup

• Hypothesis – Next big idea

• UVP – unique value proposition

• MVP – Minimum viable Product

• Refine – Product

• Execute – Build the business

Lean Startup

Source: Eric Ries, The Lean Startup


Lessons from Agile Development

• Plan – work pulling from product backlog

• Design, Build, Test – code based on requirements

• Review – with product owner

• Do it again - work in sprints to continuously increment value


Distilling Essentials of Lean Design

Focused on customer value

Open to new ideas

Keeping things simple

Moving fast

Frequently iterating

Design Thinking

Value

Value Stream

Flow

Pull

PerfectionLean PrinciplesPlan

DoCheck

Act


Design For Lean Services

Observe & Empathize

Understand Value Needed

Consider Delivery Options

Design for Lean Operation

Test & Learn

Revise & Release


Lean Design for the Public Sector:

Private Public

Market Customers Citizens

Demand generated by Marketing & Sales Statute and Customer Need

Process triggered by Customer request Citizen request

Process completed when Customer pays Citizen receives approval, license, etc.

Competitive pressures Customer can switch to another service provider Citizens and businesses can choose to move

Measures of success Customer Satisfaction, Revenue Growth, Profitability Citizen Satisfaction, Compliance with Statutes, Within Budget

Penalties for poor performance May require remuneration for missed service levels Citizen and business complaints

The citizen is your customer, work out from their need.Observe how they engage through your process.Make things simple for them.

I CITIZENS



Observe & Empathize

Understand Value

Needed


Design for Lean

Operation

Test & Learn

Revise & Release

• Observe & Empathize– Watch how, when and where customers

engage, noting unmet needs or opportunities to provide new value.

Tools:GembaCustomer InterviewEthnographic AnalysisVoice of the CustomerJourney Mapping



Observe & Empathize

Understand Value

Needed


Design for Lean

Operation

Test & Learn

Revise & Release

• Understand Value Needed– Determine what customer most need and

how they would like to have that need met.

Tools:Voice of the CustomerEthnographic AnalysisJourney MappingCustomer Insight Workshop



Observe & Empathize

Understand Value

Needed


Design for Lean

Operation

Test & Learn

Revise & Release

• Consider Delivery Options– Diverge, generating many new ideas,

opening aperture to include completely new approaches to deliver value.

Tools:Ideation workshopBrainstorming TechniquesCustomer Dreaming Session



Observe & Empathize

Understand Value

Needed


Design for Lean

Operation

Test & Learn

Revise & Release

• Design for Lean Operation– Converge, selecting simplest way to deliver

value, including only what is needed, optimizing input & process elements to reduce potential for defects & ensure continuous flow.

Tools:Value Stream MappingError ProofingDemand Smoothing



Observe & Empathize

Understand Value

Needed


Design for Lean

Operation

Test & Learn

Revise & Release

• Test & Learn– Engage customers directly through

prototyping, assessing fit for purpose.

Tools:Process SimulationPilotingCustomer market-testing



Observe & Empathize

Understand Value

Needed


Design for Lean

Operation

Test & Learn

Revise & Release

• Revise & Release– Address insights gleaned from

testing, improving fit for purpose, then implement new service.

Tools:Value Stream Mapping30-60-90 Day PlanCommunication Plan


To get started…

• Start with a blank sheet

• Focus on your customers

• Work out from need

• Add only that which adds value

• Leave out the rest

• Try that

Summary

Lean concepts are key to design methods

Lean design is a continuous, fast and iterative process of rethinking work

Design For Lean Services derives simplest path to providing customer value

To get started, start with a blank sheet and focus on your customers…


Gregory North

President, Globe North, LLC

[email protected]

www.globenorth.com

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lean design for services

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