show me the value: enabling bcm program success through lean thinking
TRANSCRIPT
Enabling BCM Program Success through Lean Thinking
Milen Kutev MBCP, SCPM, PMP
British Columbia Automobile Association
The aim of my presentation todays is
to provide insights and perspective on applying
Lean thinking principles to business continuity
program management.
Quick facts about me:
more than 25 years of program & project delivery
active member of Lean Program Management CoP
editor for PMI’s Standard for Program Management
in last 10 years primary managing BCM/DRP/GRC
programs for different industries
Any of these sound familiar?
Source: The guide to Lean Enablers…
Main definitions (ISO 22301)
Business Continuity: capability of the organization to
continue delivery of products or services at acceptable
predefined levels following disruptive incident.
Stakeholder (Interested Parties): any group or
individual that can affect or that is affected by the
achievement of the enterprise’s objectives.
BCM Program Objective: building organizational
resilience with the capability of an effective response
that safeguards the interests of its key stakeholders,
reputation, brand and value-creating activities.
Competencies
Capabilities
Confidence
Lean Principles for BCM/GRC
Capture the Value as defined by stakeholders
Optimize the value stream and Eliminate Waste
Flow the Work through streamlined processes
Let stakeholders Pull Value
Pursue Perfection in all processes
Treat People as Your Most Important Asset
CAPTURE THE VALUE AS DEFINED BY THE KEY STAKEHOLDERS
Stakeholders
Value
Value Stream
Flow
Pull
Perfection
Respect
How do we measure BCM value?
Value of the assets under protection (ROSI, cost of
downtime, losses, reduction in insurance premiums)
Tracking the work done (# of documents updated,
BIA/TRA conducted, # of tests/exercises organized)
Relying on our previous experience (benefits achieved
in previous program/organization)
Aligning to high level strategic goals (protect brand,
regulatory compliance, improve productivity, resilient
operations, reduce risk)
Using persuasive communication (“Selling” to the
executives, whatever vendor sell us as a value)
Do we agree what value is?
The measurement of the value contribution of BCM to an organization’s objectives is one of the most difficult issues in our field…
…This discussion demonstrated the continuing difficulty of distinguishing between metrics relating to value and metrics relating to compliance, completeness, and effectiveness, which serve different purposes.
It raises a question in our minds as to whether directly measuring value is feasible…
Source: BCI “The measurement of the value contribution of BCM” study 2012-2014
Value creation and governance
Value creation means
realizing benefits
at an optimal resource cost
while optimizing risk
Source: Adapted from ISACA, COBIT 5, 2012
So, what is VALUE then?
satisfaction of needs (benefits) *
as defined by stakeholders
use of resources (contribution)
money, people, time,
energy, materials, contracts
Value
* provided at the right time
at an expected quality
particular worth, utility, benefit, or reward that stakeholders expect
in exchange for their respective contributions
Benefits and value realization
Project Output / Capability(e.g. new emergency
notification system- ENS)
Intermediate Benefits & Quick Wins(e.g. simplify notification process and
eliminate manual rosters)
Organizational Change(e.g. integrate ENS within IT
incident management)
Sustained Benefits(e.g. consistent and efficient notification and
escalation during regular and off-hours)
Strategic Objective(e.g. improve IT service
support & 24x7 availability)
enables prepare
to realize
enables
in turn
realizes
enables
help achieve
one or more
Program benefits management
Source: PMI The Standard for Program Management - 3ed, 2013
FLOW THE WORK THROUGHSTREAMLINED PROCESSES
Stakeholders
Value
Value Stream
Flow
Pull
Perfection
Respect
Easy to understand, right?
flow of Information
flow of Power and Control
flow of Resources
flow of Work-In-Progress
flow of Partner's services
look for
stops,
delays,
constrains,
re-do
How to optimize the flow?
standardizing procedures
setting a common tempo
eliminating loop-backs
balancing workloads
make your choices and
commitments at the last
responsible moment
focus on integration, transparency and collaboration
blueprint
vision time
box
challenges
value
time
box
challenges
value
time
box
challenges
value
time
box
challenges
value
blueprint
vision time
box
challenges
value
needs needs
metrics metrics
Segregating complexity
Pictures source – Jeff Patton
we incrementally add components piece by piece
we iterate to find the right solution
In summary: the Lean BCM path
“Classic” BCM Principle Lean BCM
think forward from the capabilities or technology
(BIA, TRA, hot-site, cold-site, EOC, ICS …)
think backward from stakeholder needs and
expectations; solve specific business problems by
developing the capabilities
different disciplines with complicated and hard to
maintain documentation
focus on cross-organizational and cross-functional
integration; understand the context for actions to
unblock the flow of value creation
align activities and standardize through
compliance to ISO 22301 / DRI practices
value stream as an uninterrupted flow of
predictable and robust tasks, proceeding without
rework or backflow; clear responsibilities, resilient
interfaces, effective communication pathways
vertical communications to control the use of
resources
horizontal communications to align the work with
the rate of demand
changes are designed and implemented by
experts
everyone is engaged in creating value and
improving their work; Go and See; Ask Why;
“follow me” leadership
Stream
Value
How we manage little things is the way we manage big things
Flow
Pull
Respect
Takeaways and resources
Lean in Program Management Community of Practice (PMI / INCOSE / MIT)
Encyclopedia of Lean Enablers for Managing Engineering Programs (MIT-
CEPE)
Lean Management Enterprise Compendium (McKinsey & Company)
Lean enablers for managing BCM programs (Excel file
shared on OneDrive; Adapted version for BCM/DRP/GRC programs)
Stakeholder register and benefits management toolkit (Excel templates for BCM/DRP/GRC programs)
Benefits mapping template (Visio template for BCM/DRP/GRC
programs)
Free takeaways for you:
To learn more about Lean Thinking:
Thanks for your time!
There is nothing so useless as doing efficiently that which should not be done at all
Peter F. Drucker
get in touch if you want to discuss further:
ca.linkedin.com/in/milenkutev