Agiletour 2013 Lean Application maintenance way to success, Quint Hans Smorenburg

The road to Lean Success: Assessment of organisa6onal readiness

Drs. Hans Smorenburg, MSc Management Consultant, Quint

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R: 127 G: 127 B: 127

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R: 255 G: 153 B: 0

R: 199 G: 218 B: 238

R: 168 G: 199 B: 228 R: 227 G: 236 B: 246

R: 136 G: 182 B: 220

R: 99 G: 158 B: 211

R: 51 G: 103 B: 153

R: 0 G: 128 B: 0

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Bodytekst Calibiri 20pts

Titel stijl Calibiri 32pts

Lijn/pijl R:19 G:26 B:125

Economist MSc in Informa6onmanagement Working in IT Informa6on Management and development environments for 15 years Lean IT Consultant/ Trainer APMG Agile Coach/ Consultant Quint Wellington Redwood Amsterdam [email protected]

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R: 127 G: 127 B: 127

R: 166

G: 166

B: 166

R: 191 G: 191 B: 191

R: 217

G: 217

B: 217

R: 255 G: 0 B: 0

R: 255 G: 192 B: 0

R: 255 G: 153 B: 0

R: 199 G: 218 B: 238

R: 168 G: 199 B: 228 R: 227 G: 236 B: 246

R: 136 G: 182 B: 220

R: 99 G: 158 B: 211

R: 51 G: 103 B: 153

R: 0 G: 128 B: 0

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3

Ø  SePng the Context

Ø  Key elements on the Road to succes

Ø  Quick Reality Assessment

Ø  Lean IT

Content

Ø  Q&A

R: 127 G: 127 B: 127

R: 166

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R: 255 G: 153 B: 0

R: 199 G: 218 B: 238

R: 168 G: 199 B: 228 R: 227 G: 236 B: 246

R: 136 G: 182 B: 220

R: 99 G: 158 B: 211

R: 51 G: 103 B: 153

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The challenge: reducing costs to deal with economic crisis….

4

Fierce costcuPng to survive the exonomic storm in the short run..

Een kleine greep uit de berichten van de NOS afgelopen 2 maanden:

R: 127 G: 127 B: 127

R: 166

G: 166

B: 166

R: 191 G: 191 B: 191

R: 217

G: 217

B: 217

R: 255 G: 0 B: 0

R: 255 G: 192 B: 0

R: 255 G: 153 B: 0

R: 199 G: 218 B: 238

R: 168 G: 199 B: 228 R: 227 G: 236 B: 246

R: 136 G: 182 B: 220

R: 99 G: 158 B: 211

R: 51 G: 103 B: 153

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…as well as reducing 4me to market for new products and services.

5

Reduce TTM for innova6on to keep in pace with the market or posi6on in profitable nices

R: 127 G: 127 B: 127

R: 166

G: 166

B: 166

R: 191 G: 191 B: 191

R: 217

G: 217

B: 217

R: 255 G: 0 B: 0

R: 255 G: 192 B: 0

R: 255 G: 153 B: 0

R: 199 G: 218 B: 238

R: 168 G: 199 B: 228 R: 227 G: 236 B: 246

R: 136 G: 182 B: 220

R: 99 G: 158 B: 211

R: 51 G: 103 B: 153

R: 0 G: 128 B: 0

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Buzzwords dividing in same two groups… Focus on both commercial and commodi4es

6

Commercial….

…..Commodity

Differentiator for –local- market competition

Highly Agile, low time-to-market

Rapid enablement of better ways to serve customers

Creating new markets

Standardize as much as possible on commercial off the shelf products

Proven technologies, standard Services

No customization, non-differentiating and low cost solutions

Robust, reliable and large

R: 127 G: 127 B: 127

R: 166

G: 166

B: 166

R: 191 G: 191 B: 191

R: 217

G: 217

B: 217

R: 255 G: 0 B: 0

R: 255 G: 192 B: 0

R: 255 G: 153 B: 0

R: 199 G: 218 B: 238

R: 168 G: 199 B: 228 R: 227 G: 236 B: 246

R: 136 G: 182 B: 220

R: 99 G: 158 B: 211

R: 51 G: 103 B: 153

R: 0 G: 128 B: 0

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Market situa6on forces companies to differen6ate: Organiza4onal Agility versus Opera4onal Excellence

Strategic planning

Organiza6onal agility

Opera6onal excellence

Entrepreneur ship

7

High

Market dynamics

Market com

plexity

High

Low

Low

§  Focus on mximum agility to gain a posi6on in high dynamic and complex markets

§  Focus on opera6onal excellence in areas where cost per unit must be minimized.

R: 127 G: 127 B: 127

R: 166

G: 166

B: 166

R: 191 G: 191 B: 191

R: 217

G: 217

B: 217

R: 255 G: 0 B: 0

R: 255 G: 192 B: 0

R: 255 G: 153 B: 0

R: 199 G: 218 B: 238

R: 168 G: 199 B: 228 R: 227 G: 236 B: 246

R: 136 G: 182 B: 220

R: 99 G: 158 B: 211

R: 51 G: 103 B: 153

R: 0 G: 128 B: 0

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Businesscase for Lean IT in the OE quadrant: More value for less money

More “Value Add Ac6vi6es” at lower total cost:

1.  Reducing non value add ac6vity: 1.  Reduce demand with low business value

through business priori6za6on) 2.  Reduce waste

2.  Improve quality: 1.  First 6me right in each step, (Embed quality in

the process) 2.  Reduce “technical debt”

3.  Reduce 6me from start to delivery (turnaround 6me)

8

Time -‐>

Value add ac6vity Non value Add ac6vity NVA

NVA

VA

VA

€-‐>

R: 127 G: 127 B: 127

R: 166

G: 166

B: 166

R: 191 G: 191 B: 191

R: 217

G: 217

B: 217

R: 255 G: 0 B: 0

R: 255 G: 192 B: 0

R: 255 G: 153 B: 0

R: 199 G: 218 B: 238

R: 168 G: 199 B: 228 R: 227 G: 236 B: 246

R: 136 G: 182 B: 220

R: 99 G: 158 B: 211

R: 51 G: 103 B: 153

R: 0 G: 128 B: 0

Standaard

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9


Ø  Q&A


Ø  Lean IT

Content


Ø  Q&A

R: 127 G: 127 B: 127

R: 166

G: 166

B: 166

R: 191 G: 191 B: 191

R: 217

G: 217

B: 217

R: 255 G: 0 B: 0

R: 255 G: 192 B: 0

R: 255 G: 153 B: 0

R: 199 G: 218 B: 238

R: 168 G: 199 B: 228 R: 227 G: 236 B: 246

R: 136 G: 182 B: 220

R: 99 G: 158 B: 211

R: 51 G: 103 B: 153

R: 0 G: 128 B: 0

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An effec6ve Lean Transforma6on consists of changing aAtude and behavior, supported by Lean instruments

Lean IT : A way of thinking and behaving

Strategic goals

Professionalism

ConGnual improvement

Customer OrientaGon

Efficiency Quality

CooperaGon

Lean thinking and behavior is about: §  Improving customer value §  Con6nual improvements in small steps §  Decreasing peaks and troughs in produc6on §  Reducing waste §  Involving everybody §  Developing people §  Focusing on long-‐term goals

10

R: 127 G: 127 B: 127

R: 166

G: 166

B: 166

R: 191 G: 191 B: 191

R: 217

G: 217

B: 217

R: 255 G: 0 B: 0

R: 255 G: 192 B: 0

R: 255 G: 153 B: 0

R: 199 G: 218 B: 238

R: 168 G: 199 B: 228 R: 227 G: 236 B: 246

R: 136 G: 182 B: 220

R: 99 G: 158 B: 211

R: 51 G: 103 B: 153

R: 0 G: 128 B: 0

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Principles of Lean IT: Customer value at the center

Assess all ac6vi6es in the process on added value in the eyes of the customer

Create con6nuous flow in produc6on with the Just-‐in-‐Time approach and reducing volume variance

Demand triggers the process chain in order to reduce stock

First 6me right, focus on quality preven6on of defects

5

4

3

2

1

11

R: 127 G: 127 B: 127

R: 166

G: 166

B: 166

R: 191 G: 191 B: 191

R: 217

G: 217

B: 217

R: 255 G: 0 B: 0

R: 255 G: 192 B: 0

R: 255 G: 153 B: 0

R: 199 G: 218 B: 238

R: 168 G: 199 B: 228 R: 227 G: 236 B: 246

R: 136 G: 182 B: 220

R: 99 G: 158 B: 211

R: 51 G: 103 B: 153

R: 0 G: 128 B: 0

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Dimensions of Lean IT to deliver Customer value.: Focus on five dimensions and con4nous improvement

Lean It based on five dimensions And conGnuous improvement with Kaizen

1 Lean IT focuses on Behaviour and aPtude using techniques form six sigma to reinforce the learning ability of the organisa6on.

12

R: 127 G: 127 B: 127

R: 166

G: 166

B: 166

R: 191 G: 191 B: 191

R: 217

G: 217

B: 217

R: 255 G: 0 B: 0

R: 255 G: 192 B: 0

R: 255 G: 153 B: 0

R: 199 G: 218 B: 238

R: 168 G: 199 B: 228 R: 227 G: 236 B: 246

R: 136 G: 182 B: 220

R: 99 G: 158 B: 211

R: 51 G: 103 B: 153

R: 0 G: 128 B: 0

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Lean IT: The 5 Dimensions in closer detail

§  Focus on the needs, wishes and requirements of the customers

§  Define, analyze and improve customer value

§  Is the organiza6on structured to meet customer demand?

§  Are knowledge and skills of the employees aligned with the customer demand?

§  Do we share the same insight?

§  Analyze the current and future process

§  Iden6fy poten6al improvements

§  What value does this process add to the customer?

§  Why are we doing this work?

§  How much 6me is spent on value add ac6vi6es ?

§  What is the process, team and individual performance?

§  Implementa6on of KPIs to achieve the desired results

Customer centered teams

Applica6on Development

Applica6e maintenance

Service Management

Applica6e Development

Applica6e Maintenance

Service Management

Applica6e Development

Applica6e Maintenance

Service Management

17

verbeterpuntenaantal+nieuwe+en+doorgevoerde+verbeterpunten C umulatief+doorgevoerd+s inds +1/1/11

R ealisatie 0Doels telling 0

0 0 0

67

0 0 033

17

25

-40

-20

0

20

40

60

80

21 22 23 24 25 26 27 Einde jaar

Doorgevoerd deze week Nieuw deze week Doelstelling

Klant Medewerker Marktconformiteit

DUMMY

DUMMY

Klantbarometer

Score per apsect met Gem. score op alle vragen

Productiviteit

xxx

Burndown Functionaliteit

xxx

Lerend effect (verbeterpunten))

Aantal verbeterpunten per week

Tijdigheid

xxx

Burndoen Budget

xxx

Kwaliteit Producten xxx

DUMMY

Medewerkertevredenheid

Gem. score op alle vragen

DUMMY

0"

1"

2"

3"

4"

5"

6"

7"

8"

9"

Kwaliteit"opgeleverde"func=onaliteit"

DLT"Voorspelbaarheid""

Kosten:"Voorspelbaarheid"van"de"kosten"

Kosten:"Totale"kosten"

Kwaliteit"Stabiliteit"

Proces:"Uitvoering"project"

Proces:"Communica=e"

Proces:"Business"kennis"

DLT"Snelheid"

Kwaliteit"Capaciteit"

Klantbarometer+ICT+MIV++gesorteerd+op+afnemende+prioriteit+(week2+2012)+

++

Huidige"score"van"de"klant"week"2"2012"(10"="hoog)"

Huidige"score"van"de"klant"week"5"2012"(10"="hoog)"

0

1

2

3

4

5

6

7

8

9

3 4 5 6 7 8 9 10 11 12 13

Aan

tal v

erbe

terp

unte

n

Week

Lerend effect continue verbeteren Kadaster(ICT(Project(MIV(

(

Oplossing geborgd In uitvoering Inplannen om te doen In inbox Gecascadeerd

7,6 7,9 7,9

6,2 6,6

7,1

8,0 7,6 7,6

6,3

6,9 7,3

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

9,0

10,0

Impa

ct

Richtin

g

Perso

onlijk

Perso

onlijk

e

Sfeer in

het te

am

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werkin

g

Team barometer

Week 03

Week 04

maximale

minimale DUMMY

DUMMY

% S

tory

poin

t cq

Func

tiepu

nten

ger

ealis

eerd

% Budget cq uren gerealiseerd

Planningslijn

Nieuw, voorstel door Gerbrand: Fouten per regel code opgeleverd product

Voorstel Gerbrand: Uren per functiepunt cq storypoint per iteratie (velocity)

13

R: 127 G: 127 B: 127

R: 166

G: 166

B: 166

R: 191 G: 191 B: 191

R: 217

G: 217

B: 217

R: 255 G: 0 B: 0

R: 255 G: 192 B: 0

R: 255 G: 153 B: 0

R: 199 G: 218 B: 238

R: 168 G: 199 B: 228 R: 227 G: 236 B: 246

R: 136 G: 182 B: 220

R: 99 G: 158 B: 211

R: 51 G: 103 B: 153

R: 0 G: 128 B: 0

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Empower teams to operate effec6vely: delegate & facilitate

Board

Senior Management

Realisa6on

Middel management

Management proces

Primary proces Board

Senior Management

Realisa6on

Middel management

Management Proces

Primary proces

Tradi6onal organisa6on Lean organisa6on

14

R: 127 G: 127 B: 127

R: 166

G: 166

B: 166

R: 191 G: 191 B: 191

R: 217

G: 217

B: 217

R: 255 G: 0 B: 0

R: 255 G: 192 B: 0

R: 255 G: 153 B: 0

R: 199 G: 218 B: 238

R: 168 G: 199 B: 228 R: 227 G: 236 B: 246

R: 136 G: 182 B: 220

R: 99 G: 158 B: 211

R: 51 G: 103 B: 153

R: 0 G: 128 B: 0

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Manage 6me spent: It is the most important produc4on factor in IT!

Why?

§  Understandable on all levels

§  Not stockable

Incidents

Problems

CoördinaGon

Earning Capacity

Burning Capacity

Projects

Changes

Service req.

OperaGons

Overhead

15

R: 127 G: 127 B: 127

R: 166

G: 166

B: 166

R: 191 G: 191 B: 191

R: 217

G: 217

B: 217

R: 255 G: 0 B: 0

R: 255 G: 192 B: 0

R: 255 G: 153 B: 0

R: 199 G: 218 B: 238

R: 168 G: 199 B: 228 R: 227 G: 236 B: 246

R: 136 G: 182 B: 220

R: 99 G: 158 B: 211

R: 51 G: 103 B: 153

R: 0 G: 128 B: 0

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Strive to perfec6on: Reduce Waste, Variability and Inflexibility

Mo6on

Inventory

Over processing

Defects & Rework

Wai6ng 6me

Transporta6on

Variability §  Variability in volume or complexity of

customer demand §  Spread in the outcome of processes

Inflexibility §  Team capacity cannot scale up or down with customer demand §  Skill & Knowledge doesn’t match customer demand §  Batch and queue opera6ng model; fixed volumes or specifica6ons §  Fixed 6ming constraints for delivery; change windows

Waste

Overproduc6on

R: 127 G: 127 B: 127

R: 166

G: 166

B: 166

R: 191 G: 191 B: 191

R: 217

G: 217

B: 217

R: 255 G: 0 B: 0

R: 255 G: 192 B: 0

R: 255 G: 153 B: 0

R: 199 G: 218 B: 238

R: 168 G: 199 B: 228 R: 227 G: 236 B: 246

R: 136 G: 182 B: 220

R: 99 G: 158 B: 211

R: 51 G: 103 B: 153

R: 0 G: 128 B: 0

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Key to success: Consistency in the way of measuring, steering and working.

17

•  Clear goals (value statement) •  Change story •  Management Commitment •  KPI tree

•  Mo6va6on •  Visual management •  Performance dialogue •  KPI dashboard

•  Bestprac6ces •  Improvement cycle •  Kaizen •  Improvemenreams

R: 127 G: 127 B: 127

R: 166

G: 166

B: 166

R: 191 G: 191 B: 191

R: 217

G: 217

B: 217

R: 255 G: 0 B: 0

R: 255 G: 192 B: 0

R: 255 G: 153 B: 0

R: 199 G: 218 B: 238

R: 168 G: 199 B: 228 R: 227 G: 236 B: 246

R: 136 G: 182 B: 220

R: 99 G: 158 B: 211

R: 51 G: 103 B: 153

R: 0 G: 128 B: 0

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Kaizen

Kaikaku

Improvem

ent

Implem

ented

Time

“Every year we improve 2% in our produc6on processes

18

Incremental small steps lead earlier to visible results than big improvement steps

R: 127 G: 127 B: 127

R: 166

G: 166

B: 166

R: 191 G: 191 B: 191

R: 217

G: 217

B: 217

R: 255 G: 0 B: 0

R: 255 G: 192 B: 0

R: 255 G: 153 B: 0

R: 199 G: 218 B: 238

R: 168 G: 199 B: 228 R: 227 G: 236 B: 246

R: 136 G: 182 B: 220

R: 99 G: 158 B: 211

R: 51 G: 103 B: 153

R: 0 G: 128 B: 0

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KPI’s: Keep in mind what you want to achieve!

§  Contribu6on to customer value is more important than achieving a KPI

§  Managing with KPIs is a balancing act. The instrument only works if the model is in balance

§  At the organiza6onal level, KPIs should have a certain tension, for example between Sales and Quality

§  Manage the trend in KPI development not the KPI in a single moment

19

R: 127 G: 127 B: 127

R: 166

G: 166

B: 166

R: 191 G: 191 B: 191

R: 217

G: 217

B: 217

R: 255 G: 0 B: 0

R: 255 G: 192 B: 0

R: 255 G: 153 B: 0

R: 199 G: 218 B: 238

R: 168 G: 199 B: 228 R: 227 G: 236 B: 246

R: 136 G: 182 B: 220

R: 99 G: 158 B: 211

R: 51 G: 103 B: 153

R: 0 G: 128 B: 0

Standaard

Grijstinten

Accenten




20


Ø  Q&A


Ø  Lean IT

Content


Ø  Q&A

R: 127 G: 127 B: 127

R: 166

G: 166

B: 166

R: 191 G: 191 B: 191

R: 217

G: 217

B: 217

R: 255 G: 0 B: 0

R: 255 G: 192 B: 0

R: 255 G: 153 B: 0

R: 199 G: 218 B: 238

R: 168 G: 199 B: 228 R: 227 G: 236 B: 246

R: 136 G: 182 B: 220

R: 99 G: 158 B: 211

R: 51 G: 103 B: 153

R: 0 G: 128 B: 0

Standaard

Grijstinten

Accenten




Organisa6onal readiness PiRalls in becoming (and remaining) Lean. § Define success in terms of business value:

§  Problem-‐Solu6on mismatch §  Become Lean/ agile is not the goal, it is a means.. §  What is the true problem? (5 WHY’s, 4 P) §  Does the proposed solu6on/improvement address the Problem/Need?

§  Goal steering and working mismatch §  Goal sePng, way of steering and working in a PDCA Cycle §  Rather unclear or unknown expecta6ons! §  Proper authority and specific support from management granted BEFORE the efforts start?

§  Have the priori6es been mutually set/agreed by Customer management and teams?

§  Not measuring progress/results §  Even worse: oven organisa6ons try to figure out if they were successful AFTER improvement ini6a6ve took place

§  Is progress frequently being measured? (Exploit repor6ng and data collec6on from tooling!)

21

R: 127 G: 127 B: 127

R: 166

G: 166

B: 166

R: 191 G: 191 B: 191

R: 217

G: 217

B: 217

R: 255 G: 0 B: 0

R: 255 G: 192 B: 0

R: 255 G: 153 B: 0

R: 199 G: 218 B: 238

R: 168 G: 199 B: 228 R: 227 G: 236 B: 246

R: 136 G: 182 B: 220

R: 99 G: 158 B: 211

R: 51 G: 103 B: 153

R: 0 G: 128 B: 0

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Accenten




Assess Business, management and Teams: Alignment on Lean dimensions

§ Create a baseline for Improvement cycle: § Where are we now:

§  Importance and actual performance on each score §  Measurement of Stakeholder alignment (conformity) on each dimension.

§  Improvement area’s: §  Improvement plan for next stage based on value and perceived effort tot reach next plaworm

§  Combined Expert and stakeholder view on current level of maturity.

§ “Sprint review” at the end of each program stage. §  Do we develop sufficient progress. § What should we develop next §  Create commitment momentum frequently.

22

R: 127 G: 127 B: 127

R: 166

G: 166

B: 166

R: 191 G: 191 B: 191

R: 217

G: 217

B: 217

R: 255 G: 0 B: 0

R: 255 G: 192 B: 0

R: 255 G: 153 B: 0

R: 199 G: 218 B: 238

R: 168 G: 199 B: 228 R: 227 G: 236 B: 246

R: 136 G: 182 B: 220

R: 99 G: 158 B: 211

R: 51 G: 103 B: 153

R: 0 G: 128 B: 0

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Accenten




Lean Quick Reality Assessment: Quinterview

§ How well do you know your organizaGonal strengths, risks, and gaps in delivery?

§ Are all your stakeholders aligned? § What are your areas of improvement, and

where should you focus on?

§ Provides objec6ve analysis and recommenda6on report

* Provided by Quint Wellington Redwood, accredited APMG ATO

R: 127 G: 127 B: 127

R: 166

G: 166

B: 166

R: 191 G: 191 B: 191

R: 217

G: 217

B: 217

R: 255 G: 0 B: 0

R: 255 G: 192 B: 0

R: 255 G: 153 B: 0

R: 199 G: 218 B: 238

R: 168 G: 199 B: 228 R: 227 G: 236 B: 246

R: 136 G: 182 B: 220

R: 99 G: 158 B: 211

R: 51 G: 103 B: 153

R: 0 G: 128 B: 0

Standaard

Grijstinten

Accenten




24


Ø  Q&A


Ø  Lean IT

Content


Ø  Q&A

R: 127 G: 127 B: 127

R: 166

G: 166

B: 166

R: 191 G: 191 B: 191

R: 217

G: 217

B: 217

R: 255 G: 0 B: 0

R: 255 G: 192 B: 0

R: 255 G: 153 B: 0

R: 199 G: 218 B: 238

R: 168 G: 199 B: 228 R: 227 G: 236 B: 246

R: 136 G: 182 B: 220

R: 99 G: 158 B: 211

R: 51 G: 103 B: 153

R: 0 G: 128 B: 0

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Accenten




(Bumpy) Road to success

§ Making steps is not the same as dancing tango §  Define success in business value and s6ck to it… §  Doing daily stand-‐ups is important, but…. §  asking the right ques6ons and taking early ac6on is really important.

§  “Plan Do Check Act” §  Together with business: define value, evaluate §  Within teams: use simple tools, enhancing interac6on, based on facts

§  Create short feedback cycles and small steps

§  Create stable teams competent for the job §  Don’t focus too much on process, focus on deliverables crea6ng business value

§  Get in control on team level §  Don’t scaling plans up too early… §  Remember Tucker:

§  Give teams 6me to grow §  Give them appropriate coaching

§  Lean Leadership…. 25

R: 127 G: 127 B: 127

R: 166

G: 166

B: 166

R: 191 G: 191 B: 191

R: 217

G: 217

B: 217

R: 255 G: 0 B: 0

R: 255 G: 192 B: 0

R: 255 G: 153 B: 0

R: 199 G: 218 B: 238

R: 168 G: 199 B: 228 R: 227 G: 236 B: 246

R: 136 G: 182 B: 220

R: 99 G: 158 B: 211

R: 51 G: 103 B: 153

R: 0 G: 128 B: 0

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Grijstinten

Accenten




Q&A

26

R: 127 G: 127 B: 127

R: 166

G: 166

B: 166

R: 191 G: 191 B: 191

R: 217

G: 217

B: 217

R: 255 G: 0 B: 0

R: 255 G: 192 B: 0

R: 255 G: 153 B: 0

R: 199 G: 218 B: 238

R: 168 G: 199 B: 228 R: 227 G: 236 B: 246

R: 136 G: 182 B: 220

R: 99 G: 158 B: 211

R: 51 G: 103 B: 153

R: 0 G: 128 B: 0

Standaard

Grijstinten

Accenten




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w w w . q u i n t g r o u p . com Voor verdere informa6e of vragen kunt u contact opnemen met :

Hans Smorenburg [email protected]

D a r e t o c h a l l e n g e

Postbus 2345 1180 EH Amstelveen The Netherlands +31 (0)20 305 3721 (Office) +31 (0)6 3101 3874 (Mobile)

Agiletour 2013 Lean Application maintenance way to success, Quint Hans Smorenburg

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