Making 14 million gas and electricity customers happier using Lean: On the Dutch energy market, EDSN manages the data of approximately 14 million gas and electricity customers. Discover how their Lean program provided a major transformation between grid operators, commercial parties and shipping parties in redesigning their metering data processes and the following results: a reduction of handling time of incidents of 65%, improved client satisfaction by 13% and employee satisfaction by 16%. A presentation by Arthur van Wylick, director of EDSN at the Lean IT Summit 2014. More examples of Lean in IT on www.lean-it-summit.com

1. P ris, France
16 & 17 October, 2014
Copyright © Institut Lean France 2014
Lean IT Summit ®
®
EDSN’s Transition
Continuous Improvement in
Learning & Performing
Arthur van Wylick
Version 1.0

2. Lean IT Summit ®
®
Agenda
Con nuous Improvement Success
Phase 1 Phase 2 Phase 3
Departmental
op misa on
Outside in
op misa on
Value
Chain
op misa on
Employees
Management
MT
0
2
4
6
8
10
Start traject Overdracht HofP
# calls per week per employee
Number of calls per week
per employee
+80%
Start Handover
2
Approach
Results
Lessons Learned
Discussion
Challenge

3. Energy Data Service Netherlands (EDSN) is the market
facilitator for the Dutch Energy market
3
2011 2012 2013
Turnover 9.4 14.1 21.6
Assets 7.2 20.8 30.5
employees
(total)
19
(120)
22 (120) 35 (70)
Balance
Responsible
Supplier
Service
Provider
Producer
Grid
operator
Transport
System
Operator
• Metering point
administration
• Measurement
data
registration
• Allocation &
Reconciliation
• Balancing &
Settlement
Market
facilitating
platform for
providing
access to:
EDSN
Regulated Commercial

4. Being part of the changing energy market, EDSN has started an ambitious transition in 2011
From Hub
To Central Agent
Goal
Distributer of messages between parties
Manager of centralized registers
IT Systems
Routing service
Centralized Registers
Mindset
Best effort
Mission critical, zero fault
Regulation
Loosely regulated
Tightly regulated
4
EDSN
.
DSO
transition
EDSN
.
DSO
Hub
Central Agency

5. 5
Status of EDSN by the end of 2012
•Significant overrun on its IT project;
•Customers had taken over the project management;
•EDSN was challenged by customers to prove itself capable of managing mission critical systems.
Consequence
•The supervisory board had ordered a McKinsey audit;
•A new CEO was appointed as per January 2013.
In 2012 EDSN was facing a significant challenge to take up its role as a central agent
EDSN
.
DSO
transition
EDSN
.
DSO
Hub
Central Agency

6. The new CEO has launched a clear agenda to secure the future of EDSN
6
Get IT project back on track
Prepare EDSN for its new role as market facilitator

7. EDSN’s change approach was built on 2 LEAN principles
7
Phased approach
Employees
Management
MT
CI interventions simultaneously at all levels
Continuous Improvement Success
Phase 3
Phase 2
Phase 1
Departmental
optimisation
Outside in
optimisation
Value
Chain
optimisation

8. 8
Phase 1
•Optimization focused on departments;
•Capture low hanging fruit;
•Tackle largest dissatisfiers;
•Create boost in employee Morale;
•Build credibility;
•Get right people on the bus.
Phase 2
•Define value chains;
•Establish new responsibilities;
•Tackle interdepartmental issues;
•Stimulate and allow high impact improvements;
•Align non core teams.
Phase 3
•Customer demand as a basis for services offered;
•Eliminate ‘non desired services and products’;
•Awareness of and ability to translate trends and developments into services;
•Align service portfolio with customer requirements.
The phased approach has given the organization and its stakeholders a clear scope
Continuous Improvement Success
Phase 3
Phase 2
Phase 1
Deptart- mental optimisation
Outside in optimisation
Value Chain optimisation

9. Interventions at all levels were focused on creating a customer excellence mindset and leading by example
•Build mindset of customer excellence;
•Build mindset of ‘you can make a
difference’.
9
•Build mindset of facilitating the development of personal skills and know how to deliver customer excellence;
•Lead by example.
•Create customer excellence mindset;
•Have a zero tolerance mindset for deviations from mindset;
•Lead by example.
Goal
Employees
Management
MT
Level

10. Interventions at all levels require outside support - House of Performance supported EDSN with Lean and personal development support
10
•Daily stand ups;
•Kaizens;
•Introduction of KPI’s on first time right and first call resolution.
•Coaching on management style (1 on 1);
•Alignment of management controls for Service Profit Chain.
•Development of shared vision;
•Monthly team building sessions;
•Intervision and Kaizens;
•Sinners vs Saints analysis (and follow up).
House of Performance supported
Employees
Management
MT

11. Key achievements of first phase are impressive
0
2
4
6
8
10
Start traject
Overdracht HofP
Customer Satisfaction (Service Dept.)
+16%
0
2
4
6
8
10
Start traject
Overdracht HofP
Employee Satisfaction (Maintenance Dept.)
0%
10%
20%
30%
40%
50%
60%
70%
Start traject
Overdracht HofP
% Throughput calls
0
2
4
6
8
10
Start traject
Overdracht HofP
# calls per week per employee
0
2
4
6
8
Start traject
Overdracht HofP
Throughput time (days)
Number of calls per week per employee
Throughput calls in % (Chain: 1st and 2nd line)
Throughput time calls (Chain: 1st and 2nd line)
+21%
Start
Handover
Start
Handover
+80%
-65%
-28%
Start
Handover
Start
Handover
Start
Handover

12. In first phase IM and Maintenance & Support were most successful, Projects lagged behind
12
MT
Information Management
Projects
Maintenance & Support
F&A Purchasing
HRM
Information Management:
•Focus on productivity through standardization of work processes and eliminating waste;
•Impressive results. Maintenance & Support:
•Traditional approach of eliminating waste
•impressive results in productivity, customer satisfaction and mindset. Staff departments:
•focus on support process improvement;
•2nd wave, focus on ‘getting in control’. Projects:
•Few results due to focus on delivery of program;
•stand alone mindset.
✔
✖
✔
✔
✔
✔

13. Continuous Improvement Success
Phase 3
Phase 2
Phase 1
Deptart- mental optimisation
Outside in optimisation
Value Chain optimisation
EDSN has started second phase optimization; focus on improvement of innovation cycle
13
Sept 2014
Management Assessment
June 2014, start with value chain based organization
Period of chaos and doubt
Moment of truth

14. Projects (build)
Value Chain thinking led to major breakthrough for Projects (by necessity due to vacancy)
14
Information Management (design)
Maintenance & Support (manage)
Before phase 2:
•2 handover moments;
•Limited ownership;
•Departmental success not always in line with EDSN success;
•3 cultures.
In phase 2:
•Committed handovers;
•Staffing from line departments in Projects;
•Common principles, KPI’s and values;
•Everybody is committed to successful outcome.
Information Management (design)
Maintenance & Support (manage)
Projects (build)

15. Main Learnings
•Phased approach works well:
–Keeps focus;
–Provides roadmap;
–Sets management agenda.
•Continuous Improvement interventions need to be at all levels:
–With strong focus on mindset of customer excellence;
–Personal belief: not talking about money saves a lot of money;
–Be very tough on deviators from mindset of skillset and customer excellence;
–Mirror of outside consultant for team is needed;
–Skill set of outside consultant for interventions at all levels is needed.
•Managing a project with all stakeholders in team works well;
•Active ownership by management acts as a catalyst to cross silo boundaries;
•Management Pyramid is indeed upside down. Cracks in higher management team lead to tip over;
•Although the transition has been very successful, almost 30% of staff has left the company during phase 1 and the start of phase 2.
15

16. Lean IT Summit ®
®
Contact Details
EDSN, The Netherlands
www.edsn.nl
Arthur van Wylick
Arthur@plusu.nl, +31 62 96 28 286
(CEO until July 11, 2014)
Paul Roos
paul.roos@edsn.nl, + 31 35 54 80 180
(CEO as of July 12, 2014)
16
House of Performance, The Netherlands
www.hofp.nl
Stephanie Hunfeld
s.hunfeld@hofp.nl, + 31 30 23 93 360
Consultant
Heiko van Eldijk
h.vaneldijk@hofp.nl, + 31 30 23 93 360
Partner