Lean As A Driver For Change And Cost Reduction At Kbc Ict Jan Mennens
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Transcript of Lean As A Driver For Change And Cost Reduction At Kbc Ict Jan Mennens
Lean as a driver for change and cost reduction at KBC ICT
Jan Mennens
Agenda
• Company intro
• Using Lean as a tool for a large scale transformational change
– How did the programme get started?
– What are the key lean tools used, how are they deployed?
• Combining top down and bottom up approach to ensure sustainability
• How does this affect ICT process, is ITIL, PMBOK, CMM, … obsolete then?
• Tracking the results of the programme
• First results and lessons learned
• Wrap-up
COMPANY INTRO
KBC
• KBC at a glance KBC Group has a successful track record in bancassurance in its domestic market of Belgium and has been expanding to Central & Eastern Europe over the last 10 years
• Key data on KBC Group
– Total market cap (mid-Nov 2011): 5bn EUR – Total assets: 305bn EUR at the end of 9M11 – Total equity: 17bn EUR – Tier-1 ratio: 13.6% (11.7% core)
• Key data on KBC Bank
– Total assets: 262bn EUR at the end of 9M11 – Total equity: 14bn EUR – Tier-1 ratio: 12.5% (10.4% core)
KBC’s core markets
Company size
• Customers (estimate) 12 million • Number of staff (in FTEs)
• Bank branches – Belgium 845 – Central and Eastern Europe 1 181
• Insurance network – Belgium 506 tied agencies – Central and Eastern Europe sales via various distribution
channels
Belgium 17 537
Central and Eastern Europe 30 760
Rest of the world 2 197
Total 50 494
Shared Services and Operations
8000 people
HOW DID THE PROGRAMME GET STARTED?
Using Lean as a tool for a large scale transformational change
First a clear purpose needs to be defined
• The Lean programme wants to change the behaviour of people and the culture of the company, to a lean way of working, by coaching them and introducing a set of supporting tools and techniques in order to increase efficiency and lower cost Transfor
mational
change
With lean we want to increase flow and add value to the customer
• Customer involvement in process improvement is fundamental
• Introduce KPI’s to measure the improvement and go to a performance driven organisation
• People get responsibility to improve time and again
– Empowerment of people
A lean transformation team should be built
• Get knowledge from external consultant: Celerant
• Gather (to be) Lean coaches from the entities involved
– Mix of senior and junior profiles, internal and newly hired
– Assessment to get a clear view on baseline of capability and avoid wrong choices from both sides
• Start building the team
– Fundamental investment
– Seed for later success!
Roles have to be defined to spread the knowledge in the organisation
con
sult
ant
nav
igat
or
pra
ctit
ion
er
“lean coaches”
promotor
spo
nso
r
met
ho
do
logi
st
Our goal is sustainable transformation
Consultancy support reduces in every wave
Wave Role
1 “I do”
2 “We do”
3 “You do”
Celerant Lead Co-Lead Support
Coaches Learn Co-Lead Lead
Entity Engage Manage Own
PMO Build Support Anchor
Approach: • Emphasis on learning-by-doing through practical experience and co-creation of solutions • Coaches assume greater accountability as they gain confidence and experience • Celerant support reduces as business become more capable and assumes greater ownership
KBC Celerant Support:
A lean competence center supports the transformation
• Provide support to drive Lean transformation – Documentation (project approach, lean tools, …) – Training – Communication – Reporting
• Grow Lean know-how and provide one lean communication platform
• Share best practices and experience among countries and entities – Lean coach forums – Lean Wiki – Community calls
• Give support in leadership coaching – How to deal with new “lean leaders”
WHAT ARE THE KEY LEAN TOOLS USED, HOW ARE THEY DEPLOYED?
Using Lean as a tool for a large scale transformational change
A lean pyramid contains building blocks to build to a lean culture
Continuous improve-
ment
Learning organiza-
tion
Lean vision & strategy
Clear roles & account-
abilities (RACI)
Open communi-cation & feedback
Pro-active manage-
ment
Effective meetings
Voice of Customer
Value stream
mapping
Voice of Business
Workplace organiza-
tion
Waste quantifi-cation &
elimination
Lean KPIs
Integrated reporting
system
Fact-based decision making
Empowered ownership
Work flow and layout optimiza-
tion
Visual manage-
ment
Problem solving
sessions (Kaizen)
Root cause analysis
Coaching & facilitation
Collabora-tion &
teamwork
Results focus
Organiza-tional
flexibility
Work standardi-
zation
Lean leadership
Lean culture
Basic lean tools are provided to support these building blocks
But some tools
are more
important than
others
APPROACH Using lean to drive efficiency: key areas to focus on
The KBC lean approach… …is a holistic approach
Results
Operational Financial Cultural
Behaviour
Customer centricity Results focus
Accountability Teamwork
People Capability &
Accountability
Process Steps to add value
System P
C
D A
Measurement & Improvement
START ON THE FLOOR AND WITH MANAGEMENT AT THE SAME TIME
Combining top down and bottom up approach to ensure sustainability
A three phase implementation approach proves to give good results
Awareness Create
understanding Build
capability
Train Methodologists
Implement performance management system (LDMS)
•VOC
•KPI, RACI, Meetings
•Gemba
•Lean behaviour
Coaching
Implementation example
Aw
aren
ess
Management interviews
Top down analysis
Focus areas
Target setting
Make resources available
Optional
•Value proposition
•Strategy workshop
Set
the
flag
wo
rksh
op
Senior management
Middle management
Departement / Teams
Aw
aren
ess Lean Yourself
•WS 1 Visual management, white board, daily meeting
•WS 2 Cont inuous improvement and problem solving
Continuous improvement
•Problem solving
•Kaizen
•Organisation projects
What do we want to achieve!
Set-up core team Train core team Coach core team
End-to-end process projects
IS ITIL, PMBOK, CMM, … OBSOLETE THEN?
How does this affect ICT processes?
ITIL as an example: evolution in 23 years
• Throughout its history, ITIL makes service delivery more and more explicit – 1989: Service level management – 1990: Problem, Configuration, Cost management… – 1997: Customer focussed SLM – 2006: ITIL V2 did not differ a lot from V1 although books were
called Service support and Service delivery • Content restructured • Introduction of a first function: Helpdesk
– 2007: ITIL V3 pivots the standard ICT operations processes to a more service oriented view • Content restructured again • More focus on service management through the whole cycle • Emphasis on creating business value • Focus on “Continual Service Improvement”
– 2011: ITIL V3.1 • Business relationship management and demand management are explicit
processes
Lean helps to improve Service and Customer oriented thinking
Outside in focus
Put the customer in the centre Look at end to end value chain
Performance driven organisation People get responsibility to
improve time and again
Introduce service thinking
Introduce process thinking (ICT Operations) Process oriented
Inside out focus
Lean puts process responsibilities back in the organisation
• Introducing lean techniques on the work floor
– White boards
– Daily huddle / Short interval control
– Issue / problem detection
– Problem solving
– Performance driven culture
– Move to continuous improvement
Give the responsibility of the process back to the people on
the floor
Some examples
• Catalogue Request Management in ICT HU – Improvement of SLA fulfilment with 12-50 % for 7 most frequent used catalogue
items
– Reduce the implementation time below the target chosen catalogue items (e.g. from 8 to 0,8 days for fileserver directory generation)
• “We are particularly satisfied about the ‘lean testing’: testing together, and using small sprints, have led to on time in full completion of tests”
• “I realise now I have to help my customer in understanding the design – I will follow up more closely, give them intermediate steps, and ask more questions about my assumptions.”
• After a thorough examination of the issues from 1 ICT development department, it showed that 80% of the improvement actions were internal, department related
HOW DO YOU KNOW YOU ARE ON TRACK?
Tracking the results of the programme
Measure your results by focussing on capability…
• Capability looks at 7 must haves 1. Voice Of the Customer feedback and analysis integrated
into process
2. KPIs aligned with value drivers in all departments
3. Top-down performance management system (LDMS) in place
4. RACI defining accountabilities in all departments
5. White board and regular stand-up meetings in all teams
6. Regular Kaizen events to generate improvement ideas (opportunities)
7. Regular 'gemba' walking tours by leaders on the floor
• This is tracked in all teams of the entities – Monthly reporting on all performance meetings up till
management committee of SSO
Part of the overall dashboard
Reported on entity level
Example of capability tracking
MWB - Maximize Staff Engagement and Talent Development
Scoring Level
0 20 40 60 80 100actual
scoreVOC
LEAN must have 1. VOC feedback and analysis integrated
into process
team
x 20
PERFORMANCE MANAGEMENT
LEAN must have
2. KPIs aligned with value drivers in all departments
3. Top-down performance management system (LDMS) in
place
4. RACI defining accountabilities in all departments
team
x 20
SHORT INTERVAL CONTROL
LEAN must have 5. White board and daily stand-upo
meetings in all departments
team
x 20
OPPORTUNITIES
LEAN must have 6. Regular Kaizen events to generate
improvement ideas (opportunities)
team
x 40
GEMBA
LEAN must have 7. Regular 'gemba' walking tours by leaders
on the floor
team
x 20
meth 1
x 0
meth 2
x 0
meth 3
x 0
120
KPI Lean Score evaluate the Lean maturity of the organisation based on the 7 Lean Must haves
in combination with the capability of the methodologists
LEAN CAPABILITY OF THE METHODOLOGISTS
Lean capability of a team
…and benefits: example of overview of benefits 2011
• Evolution of generated benefits in 2011
– December 2011 shows the final result:
• Realised benefits: 28,4 M € (vs a target of 30,6 M €)
• Available: 25,8 M €
• Identified: 41,7 M€
What do our customers think about lean?
"By meeting every day at a fixed time round the whiteboard, we are now becoming involved with each other's issues and successes much more quickly, it is easier to consult each other and to organise matters.” Tine Procureur Middle Office KBC Asset Management
"Each echelon in the hierarchy must be committed. That is certainly half of the success“ Yves Lippens KBC Asset Management
Our relationship with business was already good and has even improved while using some VOC-techniques. More frequent but shorter meetings with our customer keep a finger on the pulse Maarten Casteleyn, ICT project leader Investment Services
LESSONS LEA(R)NED
Even a lean programme can continuously improve
• Lean is a way-of-working, not a program Reinforce that lean is a commitment to different way-of-working, not a project with an end-date; minimize bureaucracy and use simple tools to plan and manage implementation, e.g. maturity assessment, white-boards, and A3s
• Emphasize lean-thinking, not lean-tools Focus on the creation of customer value though improved work-flow and the elimination of waste, not the implementation of tools, e.g. VSM or 5S
• Conduct awareness training before implementation Invest in up-front training to create understanding and awareness of lean principles including continuous improvement, performance management, and adaptive change to minimize resistance to change
• Top-down, bottom-up, and end-to-end Implement top-down performance management to create “pull” for improvement; Build capability bottom-up within teams; Optimize work-flow across end-to-end processes to improve performance
• Implement KPIs before introducing lean techniques Define value and performance measures first to identify focus areas and select the relevant approach and tools, i.e. end-to-end vs. bottom-up
• Think big, start small, scale fast Start with a limited scope proof-of-concept project to demonstrate benefits; Use self-implementation for rapid deployment of foundation practices, e.g. white-boards; Use coaches to build-capability and quickly replicate best-practices - not to manage and control
• Management is a key lever in the transformation Management support, exemplary behaviour is very important for the success of the program
WRAP-UP
Summarizing the high level timeline
1H2010 • Programme preparation, analysis, set focus
September 2010
• Train first wave coaches
Oktober 2010
• Start proof of concept projects
April 2011 • Start second wave
2H2011 • Start “Lean Yourself” approach
1Q2012
• 20 certified lean coaches, 20 certified methodologists, 5% savings, first steps outside SSO
End 2012
• 40 certified lean coaches, 150 certified methodologists, 20% savings, expand to the rest of KBC…
Thank You!
Questions?