Learn about a transformation framework that allows companies at the beginning of their journey to build excitement and quick wins, leading to sustainable Lean IT principles, practices, and tools. Tom will outline why this approach has worked in the real world and share some stories from the front lines of lean transformations.

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

2. LITA
Executive
Webinar
May 17, 2016

3. WELCOME!

4. Host and Presenter
Deborah Burton
Member Marketing Team
Lean IT Association (LITA)
Channel Marketing Manager
ITpreneurs
3

5. 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.
4

6. Guest
Presentation

7. Today's Guest Presenter
Tom Paider
Associate Vice President
Nationwide Insurance and Co-Author of
The Lean IT Field Guide
6

8. 7
Watch Webinar Recording
Webinar Recording
Purpose Driven
Lean: Diving into
The Lean IT Field
Guide

9. 8

10. Attempts to Understand and Replicate Toyota
1970’s 1980’s
• 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
Whatwe
saw
1990’s 2000’s1980’s
Focus on Tools Understanding of Systems and Principles
9

11. 10
A More Complex Portfolio Demands IT
Transformation

12. 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.
11

13. 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
SPEED
TIME
Teams waiting for work
due to “discrete”
planning processes
Delivery slowed down
by manual and high
ceremony processes
High Acceleration
during Design,
Develop and
Acceptance Testing
0
Enterprise Agile transformations often times leave behind the Plan and Run functions
12

14. 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
13

15. Unit 1
Unit 2
Unit 3
SILO
WATERFALL
IT DELIVERY
MODEL
AGILE DEVELOPMENT
AGILE + DevOps
REQUIREMENTS
PROJECT ARCH
DESIGN
DEVELOPMENT
MANUAL TEST
MAN. DEPLOY
WATERFALL
MANUAL
ENVIRONMENTS
INCONSISTANT RELEASE PROCESS
INTEGRATED
PERSPECTIVE
SCHEDULED RELEASES
DEV ENVIRONMENT
PROVISIONING
PHYSICAL HW
PROVISIONING
PROJECT
PLANNING
INDIVIDUAL UNIT
PORTFOLIO PLANS
INTEGRATED
PLANS
WATER -------- SCRUM -------- FALL
INFRASTRUCTURE
VIRTUALIZATION
AGILE
DDT
DYNAMIC ENVIRONMENT
PROVISIONING
AUTOMATED
INFRASTRUCTURE
ORCHESTRATION
AGILE
DDT
CONTINUOUS DELIVERY
ITERATIVE
REQUIREMENTS
ENTERPRISE
REFERENCE ARCH
SOME AUTOMATED
TESTING
MANUAL DEPLOYMENT
CONTINUOUS PLANNING
& PRIORITIZATION
MICROSERVICES
ARCHITECTURE
AUTOMATED
TESTING
AUTOMATED DEPLOYMENT
Evolution of Software Development

16. FOOD FOR THOUGHT:
Over 70% of transformations fail
30%
70%
The benefits of agile, DevOps, Lean IT are
known, so why do so many transformations fail?
15

17. LEAN PURPOSE
Capability to ID
& Solve Problems
PDCA Thinking
PROCESSPEOPLE
16

18. LEAN IT
AGILE
LEAN MANAGEMENT
SYSTEM
DevOps
PURPOSE
Capability to ID
& Solve Problems
PDCA Thinking
PROCESSPEOPLE
17

19. Lean“Production”
Lean
Management
Foundational Elements
Super Glue
A Model for Lean IT Transformation
18

20. Case Study – Lean Management
19

21. 16+
MILLION
POLICIES
$345
MILLION
CONTRIBUTED
TO NONPROFITS
AND COMMUNITIES
SINCE 2000
1#
WRITER OF
FARMOWNERS
7LARGEST
HOME INSURER
th
$195.2
BILLION
IN ASSETS
8th
LARGEST
COMMERCIAL
INSURER
$25.3 BILLION IN REVENUE FOR 2014
33,000 Nationwide associates serve
customers in every state
1#CORPORATE LIFE
WRITER
FOUNDED IN 1926
BY MEMBERS OF
THE OHIO
FARM BUREAU
8LARGEST
AUTO INSURER
th
IN THE U.S.
#1
PET & SMALL
BUSINESS
INSURER
#85ON THE
FORTUNE
500 LIST
WE ARE A STRONG MUTUAL COMPANY
BUILT TO SERVE OUR MEMBERS
20

22. 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 PB
IN STORAGE
21

23. C-SUITE
FOUR TIERS FOCUSED ON
BUILDING LEAN LEADERS
LEAN MANAGEMENT SYSTEM
FRONTLINE
DIRECTOR
VICE PRESIDENT
TIER
1
TIER
2
TIER
3
TIER
4
22

24. LEAN MANAGEMENT SYSTEM
Credit: Creating a Lean Culture, David Mann
23

26. REAL TIME
MANAGEMENT
LEAN MANAGEMENT SYSTEM
MODELING
BEHAVIORS
LEADER STANDARD
WORK
25

27. ROLLED UP METRICS
TIER
1
TIER
2
TIER
3
TIER
4
26

28. A Four-Tier Management System
Sustaining the Lean Transformation
and 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
Workflow and daily identification
of key actions needed to address
previous days issues and prevent
reoccurrence
C-Suite
Daily
Gemba
Weekly
Gemba
Weekly
Gemba
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
27

29. Old Model
Change thinking to
change behavior
New Model
Change behavior to
change thinking
What
We Do
Values and
Attitudes
Culture
ADC
“Start by changing how
people behave – what
they do.”
- John Shook
A FRAMEWORK FOR CHANGE
28

30. 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
29

31. Lean IT Resources

32. 31
Watch Webinar Recording
Webinar Recording
Purpose Driven
Lean: Diving into
The Lean IT Field
Guide

33. TOM PAIDER
Twitter: @paidert
Linkedin: thomaspaider
Web: purposedrivenlean.com
Thank You!

34. Questions?

35. Contact Us
Tom Paider
Associate Vice President
Nationwide Insurance and Co-Author
of The Lean IT Field Guide
tompaider1@gmail.com
Deborah Burton
Member Marketing Team
Lean IT Association (LITA)
deborah.burton@leanitassociation.com

36. 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.
35
Become a LITA Training Partner