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Purpose Driven Lean: Diving into The Lean IT Field Guide
LITAExecutive WebinarMay 17, 2016
WELCOME!
Host and Presenter
Deborah BurtonMember Marketing TeamLean IT Association (LITA)
Channel Marketing ManagerITpreneurs
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LITA - Pioneering a Global Standard for Lean IT Education & Certification
● Lean IT Association (LITA) is a non-profit organization founded by three Accredited Training Organizations (ATOs) - ITpreneurs, Pink Elephant, Quint Wellington Redwood and three Examination Institutes (EIs) - APMG, EXIN, PEOPLECERT International Ltd. To realize its broader purpose LITA aims to provide:
● An industry-standard set of Lean IT reference materials and other resources for practitioner organizations to use;
● An certification scheme aimed at practitioner organizations looking to adopt Lean IT principles in the IT Service development and operations department as well as professionals that want to be certified in Lean IT on various levels.
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Guest Presentation
Today's Guest Presenter
Tom PaiderAssociate Vice PresidentNationwide Insurance and Co-Author ofThe Lean IT Field Guide
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Watch Webinar Recording
Webinar Recording
Purpose Driven Lean: Diving into The Lean IT Field Guide
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Attempts to Understand and Replicate Toyota
How was Toyota
outperforming
us on quality
How was Toyota able to
sustain and
grow their coast and
quality advantage?
1970’s 1980’s
How did Toyota build
a continuous
improvement
culture
• Statistical process control and other statistical tools used to understand problems
• Team based problem solving
• JIT Tools including:• Kanban• Pull• One Piece Flow• Cellular Structures
• Toyota Production System
• Understanding that tools are part of larger system
• Limited application to production floor and front line employees
1990’s• The Toyota Way described
the principles and behaviors that drive Toyota
• Understanding of the importance of the management system and principles in a lean organization.
2000’s
1970’s
Wha
t we
saw
1990’s 2000’sHow was
Toyota outperforming
us on cost
1980’s
Focus on Tools Understanding of Systems and Principles
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A More Complex Portfolio Demands IT Transformation
NEW WAY
OLD WAY
Source: Lean IT, Bell and Orzen
WHAT IS LEAN IT?
All applications of lean thinking, principles, methods, and tools in the world of information management and technology. Lean IT is a new way of leveraging technology to engage people, improve process, and solve problems.
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Wait states due to starvation of prioritized work flow into backlogs
Wait states due to contention for downstream environments and
manual processes
Agile DDT
RUN PLAN BUILD
SPEE
D
TIME
Teams waiting for work due to “discrete”
planning processes
Delivery slowed down by manual and high ceremony processes
High Accelerationduring Design, Develop and
Acceptance Testing
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Enterprise Agile transformations often times leave behind the Plan and Run functions
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DevOps is a set of practices and principles to optimize the entire information technology value stream
Plan Build Run
Shift from vertical practices to horizontal improvement
DevOps is a movement that aims to correct the silo thinking and focus on the full value stream
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Unit 1
Unit 2
Unit 3
SILO
WATERFALL
IT DELIVERYMODEL
AGILE DEVELOPMENT
AGILE + DevOps
REQUIREMENTSPROJECT ARCH
DESIGN
DEVELOPMENT
MANUAL TEST
MAN. DEPLOY
WATERFALL
MANUALENVIRONMENTS
INCONSISTANT RELEASE PROCESS
INTEGRATEDPERSPECTIVE
SCHEDULED RELEASES
DEV ENVIRONMENT PROVISIONING
PHYSICAL HW PROVISIONING
PROJECT PLANNING
INDIVIDUAL UNIT PORTFOLIO PLANS
INTEGRATEDPLANS
WATER -------- SCRUM -------- FALL
INFRASTRUCTUREVIRTUALIZATION
AGILE DDT
DYNAMIC ENVIRONMENT PROVISIONING
AUTOMATED INFRASTRUCTUREORCHESTRATION
AGILE DDT
CONTINUOUS DELIVERY
ITERATIVE REQUIREMENTS
ENTERPRISE REFERENCE ARCH
SOME AUTOMATEDTESTING
MANUAL DEPLOYMENT
CONTINUOUS PLANNING & PRIORITIZATION
MICROSERVICESARCHITECTURE
AUTOMATEDTESTING
AUTOMATED DEPLOYMENT
Evolution of Software Development
FOOD FOR THOUGHT:
Over 70% of transformations fail
The benefits of agile, DevOps, Lean IT are known, so why do so many transformations fail?
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LEAN PURPOSE
Capability to ID & Solve Problems
PDCA Thinking
PROCESSPEOPLE
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LEAN IT
AGILE LEAN MANAGEMENT SYSTEM DevOps
PURPOSE
Capability to ID & Solve Problems
PDCA ThinkingPROCESSPEOPLE
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Lean “Production”
Lean M
anagement
Foundational Elements
Super Glue
A Model for Lean IT Transformation
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Case Study – Lean Management
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16+MILLIONPOLICIES
$345MILLIONCONTRIBUTED
TO NONPROFITS AND COMMUNITIES
SINCE 2000
1#WRITER OF
FARMOWNERS
7LARGEST
HOME INSURER
th
$195.2 BILLION
IN ASSETS
8 thLARGEST
COMMERCIALINSURER
$25.3 BILLION IN REVENUE FOR 2014
33,000 Nationwide associates serve customers in every state
1#CORPORATE LIFE
WRITER
FOUNDED IN 1926BY MEMBERS OF
THE OHIO FARM BUREAU
8LARGEST
AUTO INSURER
thIN THE U.S.
#1PET & SMALL BUSINESSINSURER
#85ON THE
FORTUNE500 LIST
WE ARE A STRONG MUTUAL COMPANY BUILT TO SERVE OUR MEMBERS
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TECHNOLOGY AT NATIONWIDE
35,000+PERSONAL
COMPUTERS
10,000+PHYSICAL & VIRTUAL
SERVERS
9,000+IT WORKFORCE
PREDOMINANTLY IN-HOUSE
$1+ BILLION
ANNUAL IT SPEND
~8 PBIN STORAGE
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C-SUITE
FOUR TIERS FOCUSED ON BUILDING LEAN LEADERS
LEAN MANAGEMENT SYSTEM
FRONTLINE
DIRECTOR
VICE PRESIDENT
TIER 1
TIER 2
TIER 3
TIER 4
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LEAN MANAGEMENT SYSTEM
Credit: Creating a Lean Culture, David Mann
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REAL TIME MANAGEMENT
LEAN MANAGEMENT SYSTEM
MODELING BEHAVIORS
LEADER STANDARD WORK
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ROLLED UP METRICS
TIER 1
TIER 2TIER 3
TIER 4
CONNECTION
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A Four-Tier Management System Sustaining the Lean Transformationand Enabling Real-Time Management
All levels of the system are connected, ensuring a common focus on value delivery, employee engagement, and problem solving
Director
Frontline
Vice President
Feedback
and Coaching
Workflow and daily identification of key actions needed to address previous days issues and prevent
reoccurrence
C-Suite
Escalation
Escalation
Escalation
Feedback
and Coaching
Feedback
and Coaching
Daily Gemba
Weekly Gemba
WeeklyGemba
Review of strategy, escalated items, longer term trends, and continuous improvement
opportunities.
Tier I Visual and Huddle System (Daily)
Tier IV Visual and Huddle System
(Weekly)
Tier II Visual and Huddle System (Daily)
Tier III Visual and Huddle System
(Weekly)
Daily Gemba
Rolled
Up
Metrics
Rolled
Up
Metrics
Rolled
Up
Metrics
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Old ModelChange thinking to change behavior
New ModelChange behavior to change thinking
What We Do
Values and Attitudes
CultureADC
“Start by changing how people behave – what they do.” - John Shook
A FRAMEWORK FOR CHANGE
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CLOSING THOUGHTS…
“START BY CHANGING HOW PEOPLE BEHAVE – WHAT THEY DO” – John Shook• Old Model: Change Thinking to Change Behavior • New Model: Change Behavior to Change Thinking
EFFECTIVE LEAN IT ADDRESSES ENGINEERING (PRODUCTION) AND MANAGEMENT• Innovations such as Agile and DevOps are a part of the Lean IT body of knowledge• Apply lean to the hard engineering processes and problems, not just the management or
peripheral processes
LEAN SUSTAINABILITY REQUIRES A LEAN MANAGEMENT SYSTEM • Lean Management is the primary method of sustaining a lean transformation• Efficiency is only the secondary benefit of lean management, the primary benefit is modeling
ideal behaviors for frontline staff
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Lean IT Resources
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Watch Webinar Recording
Webinar Recording
Purpose Driven Lean: Diving into The Lean IT Field Guide
TOM PAIDERTwitter: @paidertLinkedin: thomaspaider Web: purposedrivenlean.com
Thank You!
Questions?
Contact Us
Tom PaiderAssociate Vice PresidentNationwide Insurance and Co-Author of The Lean IT Field Guide
Deborah BurtonMember Marketing TeamLean IT Association (LITA)
Experience Lean IT in Action
We believe that “Lean Thinking” should be an integral part of every Enterprise IT organization and also every IT professional’s toolkit.
Lean thinking is about understanding how to assess business processes, to identify and eliminate waste. Today, many IT professionals stakeholders from cross-functional areas -operational, tactical and strategic — have or are planning to get certified in Lean IT with the objective of reducing waste and improving efficiency.
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