Boost IT Service Management

with Lean IT

Quint Wellington Redwood

Established in 1992 in Amsterdam More than 250 consultants globally Operations covering 49 countries Core business: Sourcing, Architecture, Governance, Lean

ITService Management & DevOps

Listed as Top Global Advisor on Sourcing & Governance Trendsetter in IT Service Management, Lean IT & DevOps

Quint is a global consulting firm dedicated to the improvement of IT’s value to the business

1. Gaining perspective over your entire scope of processes2. Understanding some key differences between ITSM and

Lean IT3. Identifying and reducing wait time and waste4. Focusing IT services on processes that deliver business

value5. Common pitfalls for those looking to “get lean”

Objectives of this presentation How do I lower costs and

increase the capacity for innovation?

The Not So Good News …

You’ve invested in ITSM …… but you’re not getting the results

you expected

What’s missing?

Customer satisfaction Value for money Service Performance Motivation of the workforce

Improving IT Service Management: 3 basic options

IT Process Implementation

(ITSM)

Performance-Based Service Management

Lean IT

Focus

Focus

Focus

Improve process maturity through

focus on best practices

Improve overall performance of IT

organization through focus on units of

work

Improve value of IT organization to

customers through behavior and

attitude

What is Lean IT and what does it do?

Lean

▪ Customer value as basis▪ Value delivered through value streams▪ Ensure flow in value streams▪ Initiate pull▪ Perfection through Continuous

Improvement

IT

▪ Technical and organizational complexity▪ Specific language▪ Understand the IT gemba▪ Know IT processes▪ Understand IT performance

▪ Application of Lean Manufacturing principles Combined with extensive knowledge of IT service delivery

▪ Aimed at a sustainable development to an IT organization that maximizes the flow of value to customers

Lean + IT = Lean IT

Some differences…

1

2

3

4

…focus on processes…prioritizes for resource efficiency …uses process metrics…polices the process

…focus on value streams…aims for flow and flow efficiency…uses customer-oriented metrics…solves problems in the process

ITSM Lean IT…describes WHAT

…focuses on WHY and HOW

Focus on the right processes

• Understand the units of work

• Understand which ITSM processes are actually value streams and which are not

• Make sure you ‘score’ on the customer value processes

1

Resource Efficiency

Ensure ‘expensive’ technical people have enough work

Inventory is OK because people will never be idle

A person not working on something is waste

No time for improvement

Stressful environment

Lean IT instills the right kind of efficiency

Flow Efficiency

Ensure work ‘flows’ through the organization as quickly as possible

Low inventory ensures agility of the IT organization

Someone doing unnecessary work is waste

Space for improvement Low stress environment

2

ITSM • % reduction in average time to respond to a call for assistance from first-

line operatives• % increase in the Incidents resolved by first line operatives • % increase in the Incidents resolved by first line operatives on first

response• % reduction of Incidents incorrectly assigned• % reduction of Incidents incorrectly categorized• reduced mean elapsed time for resolution or circumvention of Incidents,

broken down by impact code • increased % of Incidents resolved within agreed (in SLAs) response times

by impact code.• reduction in the service unavailability caused by Incidents• increased % of Incidents resolved within target times by priority • increased % of Incidents resolved within target times by category • % reduction in the average time for second line support to respond• reduction of the Incident backlog• % increase in the Incidents fixed before Users notice• % reduction in the Incidents reopened • % reduction in the overall average time to resolve Incidents• reduction in the # of Incidents requiring more than one second line

support team.• % reduction in average cost of handling incidents• improve % of business incidents dealt with first line operatives • % reduction # of times first line operatives bypassed• % improvement in average # of incidents handled by each first line

operatives• no delays in the production of management reports• improved scores on CSS responses.

Lean IT metrics are clearly customer-focusedLean IT

• Lost Production Hours• Time to Market of changes• Effectiveness of changes• Quality of plans• Proactive changes• Satisfaction (customer and

employee)

… and that’s only Incident Management!

3

ITSM

• Seen as ‘policeman’• Focus on the process• Ensure everyone follows the

process• Work hard to implement the

future state process description

Process managers do the same job differently

Lean IT

• Facilitator• Focus on results for the

customer• Communicate the customers’

need for the process• Work hard to solve problems to

achieve results for the customer

4

Conclusion: Lean IT and ITSM are complementaryITSM

• Best Practice Framework• Definitions• Focuses on processes and

functions• Processes focus on IT work

Lean IT• Improvement Method• Principles• Focuses on daily improvement

and value for customers• Processes focus on flow and

value

ITSM Lean IT

Does applying Lean to IT solve our problems?

1. Insufficient understanding that Lean IT means learning … lots of it

2. Managers do not understand that they have to take the lead and change first

3. Forget to empower people … in steps4. Use the tools, but forget the behavior5. Give up at the first sign of resistance or

difficulty

Pitfalls of Lean IT

The Good News …

You’ve invested in ITSM …… investing in Lean IT will leverage

that investment

Why? Every business is becoming a digital businessWe believe every digital experience should be excellent and that excellence is defined by capabilities, not technology

We believe IT capabilities in organizations are key to creating excellent digital experiences as technology will continue to change, so success is defined by the ability to harvest that innovation over the actual innovation itself

Build high performance IT organizations that:• Are responsive to

customer needs • Embrace Agility• Are Secure & Rugged• Harvest innovation• Drive Change• Continuously improve

flow

Focus on delivery processes..

.. and simplify them! Create Value Streams Focus on performance Engage staff Anchor capabilities in

the organization

Why do it? What to do? How to do it?

How do you start applying Lean IT to ITSM?

Visual Management• Use ITSM to define your units of work• Ensure that it is clear who is working on what• Steer on completion of work

Kaizen / Problem-solving• Identify problems in ITSM processes• Use kaizen to tackle problems• Solve small problems on a daily basis

Goal-setting, KPIs and Measurement • Measure lead time and ability to meet deadlines• Visualize measures• Take action to improve performance

Focus on time

18

Time is the primary production factor

Why? Here and now Manageable

But first … Lean IT is all about Learning

Anyone involved in leading continuous improvement within IT

Anyone in a (in)formal Lean transformational / leadership role

Everyone working in IT

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D a r e t o c h a l l e n g e

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