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ING’s Lean IT journey started in 2009. Now the transition covers more than 300 employees in IT operations and 50 Agile Teams in development. At the European Lean IT Summit, Jael Schuyer and David Bogaerts from ING Bank presented what they have learned along the way. More Lean IT presentations and videos on www.lean-it-summit.com
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Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
Combining the Best of Two Worlds:
Building a Lean Agile Enterprise
Jael Schuyer - ING
David Bogaerts - ING
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www.ing-presentations.intranet Who are we?
David Bogaerts
M: +31 6 11953416
Jael Schuyer
M: +31 6 54230087
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Jael & David are Senior Lean Agile Coaches at ING Bank in the Netherlands. They both started in the Lean Office
environment before moving into Lean IT and Agile. At the moment they are working on the Lean Agile transition in the IT
department Domestic Banking ING.
Jael has worked as a Lean Coach since September 2005. Before working as a Lean Coach, Jael was a Team Manager for
ING. During this period she was introduced to Lean Management and experienced Lean from ‘the other side’.
David has worked as a Lean Coach since February 2007. Before working as a Lean Coach, David was a change manager,
and business consultant for ING. During this period he was involved in reorganization, outsourcing and risk management
projects.
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www.ing-presentations.intranet About ING
ING Profile
• ING is a global financial institution of Dutch origin, offering banking, investments, a variety of life insurance, non-life insurance and retirement services to meet the needs of a broad customer base
• With more than 94,000* employees, we serve over 67 million* private, corporate and institutional customers in over 40 countries in Europe, North America and Latin America, Asia and Australia
ING NL
• 27,201 employees serve 8.2 million private and 66,000 corporate customers
• CIO NL is responsible for maintaining and developing IT applications for ING NL
• 2000+ employees work for CIO NL
*including Insurance Asia & IM Asia
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www.ing-presentations.intranet Our journey
Why we started our journey
On our journey, we started to explore and change the dark places of our world
It takes two to tango
So where are we now?
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2004: Start Lean Office
2009: Lean IT starts in Operations
2010: Agile is introduced
2011: Acceleration of Lean
Agile roll out
2010: Lean starts in Development
A Brief History of our Lean Journey
*Some examples. Results differ per value chain depending on maturity
Becoming more Lean
Agile every day
60+ Lean Agile teams in Software Development
350+ employees in IT Operations
More than 1000 people trained in Lean & Agile
People ‘touched’ by Lean Agile:
37+ % faster time to market of IT changes
20+ % efficiency gain
50+ % reduction of incidents by PDCA
Results*:
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To be cheaper, faster and more adaptive…
and our people are the key to success
Economic crisis: • Banks are nobody’s
favorite
• Effects on our cost-
income ratio
Customer behavior and
expectations are
influenced by IT
possibilities (Facebook,
Google, Apple)
Why we need Lean IT
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Guideline
www.ing-presentations.intranet Our journey
Why we started our journey
On our journey, we started to explore and change the dark places of our world
It takes two to tango
So where are we now?
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www.ing-presentations.intranet We came from classic waterfall with a length and size that competes with Niagara
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And in the end our customers didn’t get what they wanted
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www.ing-presentations.intranet We seriously improved the output of our software delivery processes by…
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accepting we don’t exactly know what we want upfront
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We started breaking up huge projects in small chunks of shippable software
To create a flow of value
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www.ing-presentations.intranet So we are switching towards a focus on value, but need to keep an eye on the whole as well
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12 months
time frame
3 months time
frame
Shippable
software
2-3 weeks time
frame
6 months time
frame
Company
Vision
Product
Vision
Epic
Theme
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Company
Vision
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Shippable
software
2-3 weeks time
frame
6 months time
frame
?
3 months time
frame
Theme
12 months
time frame
So we are switching towards a focus on value, but need to keep an eye on the whole as well
Product
Vision
Epic
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12 months
time frame
3 months time
frame
Theme
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Shippable
software
2-3 weeks time
frame
6 months time
frame So, we are getting there, aren’t we?
Company
Vision
Product
Vision
So we are switching towards a focus on value, but need to keep an eye on the whole as well
Epic
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Guideline
www.ing-presentations.intranet Well, we also encountered some issues getting our value easily in production So we are switching towards a focus on value, but need to keep an eye on the whole as well
3 months time
frame
14
12 months
time frame
Shippable
software
2-3 weeks time
frame
6 months time
frame So, we are getting there, aren’t we?
Company
Vision
Product
Vision
Theme
Epic
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Software in
production
Availability
Test environments
Manual
test effort
Deployment
Authorizations
Processes &
Procedures
Silo’s
Some examples of what we encounter, have been solved or are still ongoing
Shippable
software
Well, we also encountered some issues getting our value easily in production
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www.ing-presentations.intranet Closing the gap step by step
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Examples of experiments we did:
• (Ownership of) Test environments
• Automated build
• Automated testing
• Automated deployment
• Steps towards Agile Governance
But it is hard to automate automation
Plan
Check
Do Act
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www.ing-presentations.intranet We needed a focus point. It became Continuous Delivery
“Continuous delivery is about putting the release schedule in the hands of the business, not in the hands of IT. Implementing continuous delivery means making sure your software is always production ready throughout its entire lifecycle – that any build could potentially be released to users at the touch of a button using a fully automated process in a matter of seconds or minutes.
Jez Humble, David Farley: Continuous Delivery
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Guideline
www.ing-presentations.intranet Our journey
Why we started our journey
On our journey, we started to explore and change the dark places of our world
It takes two to tango
So where are we now?
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1
2
3
4
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Guideline
www.ing-presentations.intranet It takes two to change a large organization
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Management & Employees
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Started bottom up with top down support
We want change
We want change,
so go for it
…and had to learn all the way through
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Guideline
www.ing-presentations.intranet Struggle: empowerment is a very thin cord to balance on
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Conflict pyramid*
Management Funnel*
* Based on Leidinggeven zonder bevelen – Filip Vandendriessche
Objective (or Problem)
Pre conditions
How
Strategic Level
Tactical Level
Operational Level
Employees (Teams)
Management
Direction (Lean Agile Roadmap)
Execution of roadmap
People excelling in their craft
Managing an empowered team means being closer to the
team than before
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www.ing-presentations.intranet Training for both management and employees is essential to become Lean Agile
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Agile: Practical Experiences
Seeing the whole (systems thinking)
Starting Agile & Scaling up
Agile: Practical Experiences
Operational Management & KPI’s
Continuous Improvement Exercise
Portfolio Management & Planning
Lunch Lunch Lunch
Lean & Agile Principles
Monday Tuesday Wednesday Thursday Friday
09:00
10:00
11:00
12:00
13:00
14:00
15:00
16:00
17:00
18:00
19:00
Time
Mindset & Behavior
Why and What of Agile Flow
OM of Self Directed Teams
Leading the Change
Commitment
Evaluation
Introduction 1 Review Previous Day 9 Review Previous Day 9
24 2
6
16
13 5
12
17
25
Review Previous Day 9
10
Reflection on your Why & What of Agile
8
Continuous improve towards perfection
Being a Change Role Model
Reflection on your Why & What of Agile
8 Reflection on your Why & What of Agile
8
Drinks
Commitment, cont. 24
Lunch
Basics of Scrum 4
3
15
Lunch
Review Previous Day 9
20
21
Agile Safari
Reflection on your Why & What of Agile
8
Waste 7
14
KPI’s, cont. 12
Kanban 11
23
18
19
Performance Management
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Example of a 5 days training program for first line and middle management of the IT Value Stream
First line and middle management are in the driver’s seat
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Inattention to results
Avoidance of accountability
Lack of commitment
Fear of conflict
Absence of trust
From: The five dysfunctions of a team – Patrick Lencioni
To resolve problems structurally and capture solutions at every level…
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High Performing Teams
Structural Problem Solving at every Level
Plan
Check
Do Act
Senior Management
Middle Management
Lean Agile Coaches
Management
Solution
Delivery
Lean Agile
Teams
•Problems which can not
be resolved without help
•Solutions which might be
useful for others
•Prioritized problems
•Status on resolving
impediments
•Solutions
we need to become a learning organization
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Guideline
www.ing-presentations.intranet Our journey
Why we started our journey
On our journey, we started to explore and change the dark places of our world
It takes two to tango
So where are we now?
24
1
2
3
4
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www.ing-presentations.intranet We are getting clear results*
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37+ % faster time to market of IT changes 20+ % efficiency gain 50+ % reduction of incidents by PDCA
*Some examples. Results differ per value chain depending on maturity
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www.ing-presentations.intranet And our customers feel it*
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“Well done ING. Do continue”
* Customer Feedback on Mobile Banking ING App
We are on the right track, but with every issue solved
more problems become visible
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We have just started on our journey and are determined to go forward
The bag’s not for what I take, Colson -
it’s for what I find along the way
MacGyver, 1985
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Photo rights reserved:
Slide Photo Photographer Image bank
8 Changed priorities ahead Domeheid Flickr
9 Waterfall DrStarbuck Flickr
10 Big Ship Lyng883 Flickr
Sailing boats Ian Sane Flickr
19 Tango Katagaci Stock.xchng
28 Road Alaskan Dude Flickr
