steve bell - lean it @ 7. kongres itsmf polska 2014

9/16/2014

Copyright Lean IT Strategies, LLC presented to

itSMF Poland Sept 11, 2014 1

Lean IT Service Management

1 © Lean IT Strategies, LLC All Rights Reserved

2

Established

Enterprises

Must Disrupt

Or Be

Disrupted

© Lean IT Strategies, LLC All Rights Reserved

But you can’t tell a large

bank, insurance

company, or airline to

“just be like Google”

9/16/2014



Question of the day

How can the principles of Lean IT be applied

to IT Service Management in a large, existing

organization with significant legacy IT

architecture and culture, to continuously

improve and innovate towards stability,

speed, agility and continuous delivery ?


To understand how Lean IT

can help, we must examine the

principles:


• Engagement

• Flow of value

• Leadership

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Engagement


Source: Pierre Masai, CIO, Toyota EMEA

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Flow of value

1. Specify what creates value from the

customer’s perspective

2. Identify all steps across the whole

value stream

3. Make those actions that create value flow

4. Only make what is pulled by the customer

just in time

5. Strive for perfection by continually

removing successive layers of waste


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Leadership

Most organizations think and function in vertical silos, but all Value Flows horizontally

Teams should:

Be responsible for their processes

Make the work and problems visible

Continuously solve problems cross-functionally to drive improvement and innovation

“The Lean manager realizes that no manager at a higher level can or should solve a problem at a lower level; problems can only be solved where they live, by those living with them” Jim Womack


8

Your current processes are perfectly designed to take

up (over) 100% of the people’s time working in them

Waste is disguised as useful work

Source: David Balestracci, Quality Improvement:

Practical Applications for Medical Group Practices

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Waste – Process not People

• Does not indicate employees are deficient or not working hard

• Causes people to work too hard as they put out fires, deal with interruptions and rework mistakes

• The result of bad processes and systems, not bad people!


80%Keeping

Lights

On

20%Grow and Transform

50%Keeping

Lights

On


Operational

Excellence

Development

& Innovation

10

The strategic journey of an established IT organization

Source: Steve Bell, Run Grow Transform 2012

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Degrees of Uncertainty

80%Keeping

Lights

On


50%Keeping

Lights

On


Standards

Uncertainty

11 Source: Steve Bell, Run Grow Transform 2012

Lean

Development

� Development

� Uncertainty

� Variation

� Learning

Lean

Production

� Operations

� Standardization

� Variation reduction

� Process efficiency

� Process efficiency � Learning


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Run

Operational Excellence

Continuous Improvement

Incremental change

Uncertainty is low

TransformImagination & Creation

Disruptive innovation

Radical change

Uncertainty is high

GrowCommercialization

Sustaining innovation

Step change

Uncertainty is moderate

Revenue

Growth

Funds

Innovation

Capitalize on innovation

with effective operations

13 Source: Steve Bell, Run Grow Transform (2012)

Traditional IT is isolated from its customers

CIO

Development Operations Support Advisory

IT Related

product/service

development


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How do we connect with value?




value stream



just in time




Definition of “Service”

Contribution to the welfare of others

Merriam-Webster dictionary

16

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Value hypothesis

Customer Facing services (SLA)

Request and delivery method and

performance metrics as seen through the

eyes of the customer (business and/or end

customer-consumer)

Supporting Technical services (OLA)

Request and delivery method and performance

metrics as seen internally by technical teams

Supporting Administrative services (OLA)

Request and delivery method and performance

metrics as seen internally by administrative teams

• Application (provision, integrate, develop)

• Infrastructure (provision, integrate, develop)

• Professional services (strategic advisory, improvement,

education, architecture, data management, security, etc.)

• Support (Incident and Knowledge management)

• Governance

• Finance

• HR

• Sourcing

• PMO, SMO, Lean, other offices

• All technical components utilized (directly or

indirectly) by the customer facing services

• Management activities of the technical stacks

• Event, Change, Problem management


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How do we continuously improve?




value stream



just in time




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“Kaizen”

Kai means “To improve”

Zen means “For the better”

“Kaizen” simply means continuous improvement


Kaizen starts with a vision for the customer

20

Current

Condition

Target

ConditionChallenge

Vision for

Customer

Strategic Intent

Inspiring vision for

the future

What will make us

awesome in our

customers’ eyes?

Leadership sets a

challenge:

How do we

stretch together

to achieve what

we believe is

difficult or

perhaps

impossible

What operating

pattern are we

aiming for in

1 week to 90 days

It’s beyond our

current

knowledge

threshold so we

have to learn

Where are we?

How do we know?

Problems &

Obstacles

PDCA

One experiment

at a time

Quick

iterations,

measure each

outcome

Practice and

learn

Obstacles

Parking Lot

Kaizen


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How do we integrate the enterprise?




value stream



just in time




Are IT value streams a Black Box or Black Hole?


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Lean IT has two aspects:

1. Outward-facing - supporting the

continuous improvement of business

processes, and

2. Inward-facing - improving the

performance of IT processes and

service delivery.

These are IT

Services!


Service Management

24

External

CustomerValue Stream

24

Development

Operations

Technology stacks

Value Stream Team:

• Business process owner

• IT service owner

• Data/analytics

• Coach

Integrated Team: line of sight to customer value

Kaizene.g.

Backlog

Mgmt

Kaizene.g.

Problem

Mgmt

KaizenBus Process

ImprovementKaizen

Team &

Program

Learning

Integrated Value Stream

Operating Model

Business stakeholders and process steps

Ex

tern

al

Svc

Pro

vid

ers

DevOps

IT

Agile

ITSM/ITIL


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End-to-End Flow of ValueIt’s about more than delivering software faster!

Source: Steve Bell, Run Grow Transform (2012) 25

The Importance of

Visual Management

26

“Making the invisible visible”


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Supported by visual management to

help spot problems and guide action


Communicate process standards and actions


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Visually trigger a response to a defectDo not pass on a problem, solve it!


Visual Workload Management

30

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Kanban

Visualization of:

Demand

Priority

Load/Capacity

Flow

Responsibility lanes

Fast/Slow lanes

Problems

Demand BacklogWork In Process

ProblemMeasure


32

Develop analytics and visualization

for effective problem solving


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Lean Leadership

Behaviors

33

“Empowerment without alignment is chaos”

Peter Senge, Fifth Discipline


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Lean transformation focus

35

Leadership

Middle

Management

Teams and

Individuals

Clarity of purpose and goals

Strategy deployment

Enterprise value stream architecture

Focus on systemic overburden and variation

Executive champion engagement

Value Stream Ownership/Management

Problem solving

Visual management

Coaching/mentoring

Standard work

Workload mgmt

Visual management

Daily improvement


What behaviors do we seek?

Comfort with problems

Thinking deeply about what

the problem really is

How far “to the left” can we

define the problem?

No departmental boundaries,

value stream view

End customer focus

Foster ownership and

responsibility

36

Don’t tell . . . Ask what do you

see? Why?

Relish problems, spend most of

the agenda on them

Walk the process in detail

Use problem solving tools

overtly

Be the voice of the customer

Avoid sub-optimized metrics

Emphasize learning and practice

Source: Lean Enterprise Institute


9/16/2014



The Danger of Implementation Thinking"Having an implementation orientation actually impedes our

organization's progress and the development of people's

capabilities.

The way from where we are to where we want to be next is a

gray zone full of unforseeable obstacles, problems and issues

that we can only discover along the way. The best we can do is

to know the approach, the means, we can utilize for dealing

with the unclear path to a new desired condition [the lean

problem solving approach] not what the content and steps of

our actions- the solutions - will be. If someone claims certainty

about the steps that will be implemented to reach the desired

destination, that should be a red flag to us."

Mike Rother, Toyota Kata


The Risk of “Implementing” ITIL

It’s possible to implement ITIL but not solve problems at

their root causes and deliver little sustaining value

It’s possible to implement ITIL without engaging people

and the overall organization in an authentic cultural

transformation

IT organizations should start with Lean Thinking rather

than leading with ITIL tools and techniques

The ITIL toolbox provides good practices that should be

viewed as potential target conditions to be

experimented upon by the team


9/16/2014



Lean thinking is not a methodology or a framework,

it’s a practice . . . learning through experience and coaching


Lean = Learn

Knowledge is an unending adventure at the edge of

uncertainty.

Jacob Bronowski, Scientist

Author of The Ascent of Man

40

It’s easier to act your way to a new way of thinking,

than to think your way to a new way of acting.

John Shook

Lean Enterprise Institute


9/16/2014



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Next Master Class

Lean IT Summit, Paris October 15, 2014 www.lean-it-summit.com


[email protected]

steve bell - lean it @ 7. kongres itsmf polska 2014

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