ALE2011 Stephen Parry on ICT Value Chain

© 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

[email protected]: LeanvoicesBlog: Leanvoices.comLinkedin

Author of Sense and Respond (MacMillan).

Visiting Fellow to the Lean Enterprise AcademyLean IT Strategy Advisor


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.


1. Separating myth from reality


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.


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.


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?…


2. What is wrong with the traditional approach?


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


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


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


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


3. Managing and Measuring for Value

What to measure in a Lean environment


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.


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


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


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


CORE Profile for Global IT end user application support (November 2009)


4. Redesigning a fragmented ICT value stream

Changing thinking, feelings and perceptions of management and staff.


18Looking at customer demand and impact: Diagnosing how much waste is created with poor applications, systems and processes.

19

Averages throw away the data for improvement


5. Sustaining Lean and Agile environments to deliver long-term

profitability.

Changing the Climate by changing the design, measurement, job roles and management behaviours


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


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?


LearningSense Making and Sharing


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?


LeadingListen and Adapt Leadership


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?


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?


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.


Sense and Respond: The Journey to Customer

Purpose

Susan Barlow, Stephen Parry and Mike Faulkner.

Thank you for listeningseebusinessdifferently.com

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Lean andAgile

Climate

Enga

ging

Improving

Leading

Learning