Boost IT Service Management
with Lean IT
Quint Wellington Redwood
Established in 1992 in Amsterdam More than 250 consultants globally Operations covering 49 countries Core business: Sourcing, Architecture, Governance, Lean
ITService Management & DevOps
Listed as Top Global Advisor on Sourcing & Governance Trendsetter in IT Service Management, Lean IT & DevOps
Quint is a global consulting firm dedicated to the improvement of IT’s value to the business
1. Gaining perspective over your entire scope of processes2. Understanding some key differences between ITSM and
Lean IT3. Identifying and reducing wait time and waste4. Focusing IT services on processes that deliver business
value5. Common pitfalls for those looking to “get lean”
Objectives of this presentation How do I lower costs and
increase the capacity for innovation?
The Not So Good News …
You’ve invested in ITSM …… but you’re not getting the results
you expected
What’s missing?
Customer satisfaction Value for money Service Performance Motivation of the workforce
Improving IT Service Management: 3 basic options
IT Process Implementation
(ITSM)
Performance-Based Service Management
Lean IT
Focus
Focus
Focus
Improve process maturity through
focus on best practices
Improve overall performance of IT
organization through focus on units of
work
Improve value of IT organization to
customers through behavior and
attitude
What is Lean IT and what does it do?
Lean
▪ Customer value as basis▪ Value delivered through value streams▪ Ensure flow in value streams▪ Initiate pull▪ Perfection through Continuous
Improvement
IT
▪ Technical and organizational complexity▪ Specific language▪ Understand the IT gemba▪ Know IT processes▪ Understand IT performance
▪ Application of Lean Manufacturing principles Combined with extensive knowledge of IT service delivery
▪ Aimed at a sustainable development to an IT organization that maximizes the flow of value to customers
Lean + IT = Lean IT
Some differences…
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2
3
4
…focus on processes…prioritizes for resource efficiency …uses process metrics…polices the process
…focus on value streams…aims for flow and flow efficiency…uses customer-oriented metrics…solves problems in the process
ITSM Lean IT…describes WHAT
…focuses on WHY and HOW
Focus on the right processes
• Understand the units of work
• Understand which ITSM processes are actually value streams and which are not
• Make sure you ‘score’ on the customer value processes
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Resource Efficiency
Ensure ‘expensive’ technical people have enough work
Inventory is OK because people will never be idle
A person not working on something is waste
No time for improvement
Stressful environment
Lean IT instills the right kind of efficiency
Flow Efficiency
Ensure work ‘flows’ through the organization as quickly as possible
Low inventory ensures agility of the IT organization
Someone doing unnecessary work is waste
Space for improvement Low stress environment
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ITSM • % reduction in average time to respond to a call for assistance from first-
line operatives• % increase in the Incidents resolved by first line operatives • % increase in the Incidents resolved by first line operatives on first
response• % reduction of Incidents incorrectly assigned• % reduction of Incidents incorrectly categorized• reduced mean elapsed time for resolution or circumvention of Incidents,
broken down by impact code • increased % of Incidents resolved within agreed (in SLAs) response times
by impact code.• reduction in the service unavailability caused by Incidents• increased % of Incidents resolved within target times by priority • increased % of Incidents resolved within target times by category • % reduction in the average time for second line support to respond• reduction of the Incident backlog• % increase in the Incidents fixed before Users notice• % reduction in the Incidents reopened • % reduction in the overall average time to resolve Incidents• reduction in the # of Incidents requiring more than one second line
support team.• % reduction in average cost of handling incidents• improve % of business incidents dealt with first line operatives • % reduction # of times first line operatives bypassed• % improvement in average # of incidents handled by each first line
operatives• no delays in the production of management reports• improved scores on CSS responses.
Lean IT metrics are clearly customer-focusedLean IT
• Lost Production Hours• Time to Market of changes• Effectiveness of changes• Quality of plans• Proactive changes• Satisfaction (customer and
employee)
… and that’s only Incident Management!
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ITSM
• Seen as ‘policeman’• Focus on the process• Ensure everyone follows the
process• Work hard to implement the
future state process description
Process managers do the same job differently
Lean IT
• Facilitator• Focus on results for the
customer• Communicate the customers’
need for the process• Work hard to solve problems to
achieve results for the customer
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Conclusion: Lean IT and ITSM are complementaryITSM
• Best Practice Framework• Definitions• Focuses on processes and
functions• Processes focus on IT work
Lean IT• Improvement Method• Principles• Focuses on daily improvement
and value for customers• Processes focus on flow and
value
ITSM Lean IT
Does applying Lean to IT solve our problems?
1. Insufficient understanding that Lean IT means learning … lots of it
2. Managers do not understand that they have to take the lead and change first
3. Forget to empower people … in steps4. Use the tools, but forget the behavior5. Give up at the first sign of resistance or
difficulty
Pitfalls of Lean IT
The Good News …
You’ve invested in ITSM …… investing in Lean IT will leverage
that investment
Why? Every business is becoming a digital businessWe believe every digital experience should be excellent and that excellence is defined by capabilities, not technology
We believe IT capabilities in organizations are key to creating excellent digital experiences as technology will continue to change, so success is defined by the ability to harvest that innovation over the actual innovation itself
Build high performance IT organizations that:• Are responsive to
customer needs • Embrace Agility• Are Secure & Rugged• Harvest innovation• Drive Change• Continuously improve
flow
Focus on delivery processes..
.. and simplify them! Create Value Streams Focus on performance Engage staff Anchor capabilities in
the organization
Why do it? What to do? How to do it?
How do you start applying Lean IT to ITSM?
Visual Management• Use ITSM to define your units of work• Ensure that it is clear who is working on what• Steer on completion of work
Kaizen / Problem-solving• Identify problems in ITSM processes• Use kaizen to tackle problems• Solve small problems on a daily basis
Goal-setting, KPIs and Measurement • Measure lead time and ability to meet deadlines• Visualize measures• Take action to improve performance
Focus on time
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Time is the primary production factor
Why? Here and now Manageable
But first … Lean IT is all about Learning
Anyone involved in leading continuous improvement within IT
Anyone in a (in)formal Lean transformational / leadership role
Everyone working in IT
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D a r e t o c h a l l e n g e
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