ALE2011 Stephen Parry on ICT Value Chain

Creating an integrated ICT value stream
using Lean and Agile thinking
ALE September 2011

Stephen Parry
See Business Differently

stephen.parry@seebusinessdifferently.com
Twitter: Leanvoices
Blog: Leanvoices.com
Linkedin

Author of Sense and
Respond (MacMillan).

Visiting Fellow to the Lean
Enterprise Academy
Lean IT Strategy Advisor

© Copyright Stephen Parry 2011 all rights reserved.

1.Separating myth from reality.

2. What is wrong with the traditional
approach?

3. Managing and Measuring for value.

4. Redesigning a fragmented ICT value
stream.

5. Sustaining Lean and Agile environments
to deliver long-term profitability.


1. Separating myth from reality


Lean Myth Busters:

You won’t find Lean in the tools and
methods.

It’s not about optimising waste; it’s
about optimising value.

It’s not about managers fixing
everything; it’s about the staff owning
and solving problems.

It’s not only about processes; it’s about
the whole service model and the ICT
life-cycle.

It’s not about efficiency at all costs; it’s
about effectiveness at the right cost.

This incorporates software development
and innovation.


Lean and Agile : Problem Solving Organisations

Traditional organisations tend to keep problems hidden…
you must not admit them…. If you do, then YOU become
the problem.

Lean and Agile combine into a whole organisation or
system designed to surface problems so that teams can
solve them….

The assumption being that the problem is in the design of
the ‘System’ and the way it conditions our thinking, not
the people themselves.


The organisation is a hindrance to both
employees and customers.

Organisational
Performance is a matter of having Transformation

Choice
Policy
which is a matter of
Role Design

Freedom Processes and
Procedures

with the Performance
Measures

Power Technology

to do what matters for customers.
Matter of Design
© Copyright Stephen Parry 2011 all rights reserved. So who do you need to ‘be’ to take action?…

2. What is wrong with the
traditional approach?


The customer/service user challenge:
They don’t have time………….they say things like:

Solve my problem, completely.

Don't waste my time or cause me hassle.

Minimise the cost of doing business with you.

Provide exactly what I need and deliver value where I need it.

Reduce the number of decisions I must make to resolve my problems.

Don’t get me to help you; I want you to help me!

Adapted from Lean Solutions: Jim Womack and Dan Jones by Stephen Parry

Question:

What would ICT organisations do if they
had to pay for all the operational and
service user time they wasted?

Adapted from Lean Solutions: Jim Womack and Dan Jones by Stephen Parry

Traditional approach: Feasible parts creating an infeasible whole.

Functional units

F1 F2 F3 F4 Fn

Independent It’s not unusual
S1 S2 S3 S4 Sn
Solutions to have thirty
Designed to or more
Meet functional solutions lining
Targets and up for attention
Goals.

Throughput process


Traditional approach: Feasible parts creating an infeasible whole.

Functional units

F1 F2 F3 F4 Fn

Independent It’s not unusual
S1 S2 S3 S4 Sn
Solutions to have thirty
Designed to or more
Meet functional solutions lining
Targets and up for attention
Goals.

Improved Customer Experience ?


3. Managing and Measuring for Value

What to measure in a Lean environment


CORE Profile: Value definitions

Is defined by ‘Customer Purpose’. Deliver value
effectively to customers and efficiently to the
organisation.
CREATE
(Optimise)

Creates the possibility for developing new services that
OPPORTUNITY will satisfy customers or increase production and
(Innovate) revenue.

REMEDIAL Occurs when the organisation delivers unfit products or
(Restore and Remove) services. Production is lost, the customer is unhappy,
resulting in loss of money, time, and reputation.

EXTERNAL
(Restore and Re-think)

Originates externally and is usually waste or demand
that is created by other organisations, agencies or
institutions.


CREATE VALUE BIN

Nothing in here because no one was looking
OPPORTUNITY TO CREATE VALUE BIN

RESTORE LOST VALUE BIN

Application
Problem EXTERNAL LOST VALUE BIN
Progress Engineer
Chase Customer Purpose Defines Value,
Not arrived

What was once seen as Value is now seen as WASTE
Provide 3rd Party Repeat
Installation
Quote Can’t Supply all in addition to the 40% rework.
Fault

There is no value in fixing symptoms. Fix the Road not the Tyres.
Slow Computer Move
Escalation
Network is not working Equipment

Customer Purpose = Business Outcomes

CORE Profile: ICT support operations
Before changing the service.

Create 8%

Opportunity 2%

Remedial 80%

External 10%

© Copyright Stephen Parry 2011 all rights reserved. Source Fujitsu Case Study: Sense and Respond Book Used with kind permission

CORE Profile: ICT support operations
after changing the service.

Create 50%

Opportunity 12%

Remedial 33%

External 5%

© Copyright Stephen Parry 2011 all rights reserved. Source Fujitsu Case Study: Sense and Respond Book Used with kind permission

CORE Profile for Global IT end user application support (November 2009)


4. Redesigning a fragmented
ICT value stream

Changing thinking, feelings and perceptions
of management and staff.


Looking at customer demand and impact: Diagnosing how much waste is created 18
with poor applications, systems and processes.

Averages throw away the data for improvement

19

5. Sustaining Lean and Agile
environments to deliver long-term
profitability.

Changing the Climate by changing the design, measurement, job
roles and management behaviours


Lean and Agile: Creating a learning and problem solving climate.
Climetrics ® Model

Sense Making and Sharing

Learning

Listen and Adapt Leadership
Understanding and defining

Engaging
Customer needs

Leading
Lean and
Agile
Climate

Improving
Innovation and Improvement


Lean and Agile, Creating a learning and problem solving climate.
Climetrics ® Model

Understanding and defining
Customer needs

Engaging

Does the job design allow all staff to engage with customers and users?

To what extent can staff modify solutions without management permission?

Is everything forbidden unless permitted, or is everything permitted unless
forbidden?


Climetrics ® Model

Sense Making and Sharing

Learning

Do staff routinely share business intelligence and improvement information with
senior management ?

What is the management focus? - employee utilisation, cost reduction and work
intensification or creativity, customer outcomes, problem solving, learning and
sharing knowledge?


Climetrics ® Model

Listen and Adapt Leadership

Leading

Do Leaders foster a no-blame climate to surface problems for teams to work on?

Do leaders routinely spend time at the workplace solving front-line issues with the
staff?

Do leaders pay more attention to efficiency-driven functional targets or end-to-end
effectiveness at creating customer and user outcomes?


Lean and Agile: Creating a learning and problem solving climate.
Climetrics ® Model

Innovation and Improvement

Improving

Do employees influence end-to-end business processes?

What influence does staff have over improving the measurement system?

What influence do employees have on improving products and services?


From first to last: Respect for people
Quotes from Stephen Parry Seminar.
We believe people are capable of learning and taking on additional
responsibility, and if you create the right environment, people will want to
learn and will actively seek more responsibility.

In this context ‘respect for people’, means Managers helping employees
understanding that all people have the ability to freely choose how they solve
learn and the right to be given opportunities to problems displays total
learn. respect.

There is a world of difference
between helping people to see
and telling them they are blind.

Most of all we must trust that
people are capable of owning and
solving their own problems with a
little bit of help.


Sense and Respond: Thank you for listening
The Journey to Customer
Purpose
seebusinessdifferently.com
Susan Barlow, Stephen Parry and
Mike Faulkner. LeanVoices.com BLOG

Twitter: LeanVoices

Learning

Engaging

Leading
Lean and
Agile
Climate

Improving

ALE2011 Stephen Parry on ICT Value Chain

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