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Purpose Driven Lean: Diving into The Lean IT Field Guide

Purpose Driven Lean: Diving into The Lean IT Field Guide

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Page 1: Purpose Driven Lean: Diving into The Lean IT Field Guide

Purpose Driven Lean: Diving into The Lean IT Field Guide

Page 2: Purpose Driven Lean: Diving into The Lean IT Field Guide

LITAExecutive WebinarMay 17, 2016

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WELCOME!

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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

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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

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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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Page 13: Purpose Driven Lean: Diving into The Lean IT Field Guide

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

0

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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Page 15: Purpose Driven Lean: Diving into The Lean IT Field Guide

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

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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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Page 17: Purpose Driven Lean: Diving into The Lean IT Field Guide

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

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TOM PAIDERTwitter: @paidertLinkedin: thomaspaider Web: purposedrivenlean.com

Thank You!

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Questions?

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Contact Us

Tom PaiderAssociate Vice PresidentNationwide Insurance and Co-Author of The Lean IT Field Guide

[email protected]

 

Deborah BurtonMember Marketing TeamLean IT Association (LITA)

[email protected]

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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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Become a LITA Training Partner