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Copyright © Institut Lean France 2011 Lean IT From Theory to Application Moving beyond the what to the how! Mike Orzen Lean Enterprise Institute The Shingo Prize www.maorzen.com

"Lean IT practices, from theory to application" by Mike Orzen

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Mike Orzen's presentation at the 1st European Lean IT Summit held in Paris in October 2011.

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Page 1: "Lean IT practices, from theory to application" by Mike Orzen

Copyright © Institut Lean France 2011

Lean IT From Theory to Application

Moving beyond the what to the how !

Mike OrzenLean Enterprise Institute

The Shingo Prizewww.maorzen.com

Page 2: "Lean IT practices, from theory to application" by Mike Orzen

Copyright © Institut Lean France 2011

Level Set

Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 2Lean IT - From Theory to Application, Mike Orzen www.maorzen.com

Page 3: "Lean IT practices, from theory to application" by Mike Orzen

Copyright © Institut Lean France 2011

Paradigm s

3

Page 4: "Lean IT practices, from theory to application" by Mike Orzen

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Where is Value in IT?

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• IT enables people to solve problems and create value

� Information is primary

� Functionality is secondary

The IT Myth

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The “Weave”

6Lean IT - From Theory to Application, Mike Orzen www.maorzen.com

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© Copyright 2011 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved.E

nterprise Architecture

Application Delivery Value Stream

Service Desk Value Stream

IT Services Value Streams

Client Services Value Stream

Security, Stability Value Stream

Operations

Help D

esk & S

upport

Governance, B

udget

Infrastructure Engineering

Portfolio M

gt.

App D

ev/Maintenance,

PM

O and R

esource Mgt.

Prioritization, D

elivery

7

Page 8: "Lean IT practices, from theory to application" by Mike Orzen

© Copyright 2011 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved.E

nterprise Architecture

Application Delivery Value Stream

Service Desk Value Stream

IT Services Value Streams

Client Services Value Stream

Security, Stability Value Stream

Operations

Help D

esk & S

upport

Governance, B

udget

Infrastructure Engineering

Portfolio M

gt.

App D

ev/Maintenance,

PM

O and R

esource Mgt.

Prioritization, D

elivery

8

Page 9: "Lean IT practices, from theory to application" by Mike Orzen

© Copyright 2011 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved.E

nterprise Architecture

Application Delivery Value Stream

Service Desk Value Stream

IT Services Value Streams

Client Services Value Stream

Operations

Help D

esk & S

upport

Governance, B

udget

Infrastructure Engineering

Portfolio M

gt.

App D

ev/Maintenance,

PM

O and R

esource Mgt.

Prioritization, D

elivery

9

Security, Stability Value Stream

Page 10: "Lean IT practices, from theory to application" by Mike Orzen

Copyright © Institut Lean France 2011

• The good: expertise and execution/collaboration and communication

• The bad: silo based thinking, local optimization, conflicting priorities

• The ugly: unnecessary complexity and tech debt

About the “Weave”

10Lean IT - From Theory to Application, Mike Orzen www.maorzen.com

Page 11: "Lean IT practices, from theory to application" by Mike Orzen

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• Firefighting to methodical cadence of work

IT vs. Lean - Behaviors

11Lean IT - From Theory to Application, Mike Orzen www.maorzen.com

Page 12: "Lean IT practices, from theory to application" by Mike Orzen

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1 Understand the real work

2 Streamline communication

3 Simplify the process

4 Adopt hypothesis-driven problem solving

4 Steps

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Projects

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Business

Problems

Barriers &

Opportunities

Counter

Measures &

Solutions

Page 14: "Lean IT practices, from theory to application" by Mike Orzen

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Working Sequence

Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 14

Process

Improvement

Process

Improvement

• Quality,

Speed,

Cost

Information

Requirements

Information

Requirements

• Accurate, Timely,

Actionable, Formatted,

Accessible

System

Requirements

System

Requirements

• Stable,

Trusted,

Secure

Page 15: "Lean IT practices, from theory to application" by Mike Orzen

Copyright © Institut Lean France 2011

• “Know the business better than the business”

• 4 DNA elements applied to information

An Example

15Lean IT - From Theory to Application, Mike Orzen www.maorzen.com

Page 16: "Lean IT practices, from theory to application" by Mike Orzen

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1. Specifications document all work processes and include content, sequence, timing and outcome.� VSM� Volume, quality and timing measures� Focused process mapping� Problem solving

Processing “Client” Records

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Copyright © Institut Lean France 2011

Processing “Client” Records

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2. Connections with clear YES/NO signals directly link every customer and supplier.� Collaborate all the players� Coordinate information systems� Establish clear signals and business rules

Processing “Client” Records

Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 18

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Copyright © Institut Lean France 2011

Processing “Client” Records

Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 19

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3. Every product and service travels a single, simple and direct flow path.� Clearly define the target value stream� Keep it simple and direct� Coordinate information systems

Processing “Client” Records

Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 20

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Copyright © Institut Lean France 2011

Processing “Client” Records

Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 21

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Copyright © Institut Lean France 2011

4. Workers at the lowest feasible level, guided by a coach, improve their own work processes using scientific methods.� Keeps the people closest to the work engaged

in CPI� Keeps work instructions from becoming

“invisible”� Works as a disinfectant to reactive firefighting

behavior

Processing “Client” Records

Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 22

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Copyright © Institut Lean France 2011

Processing “Client” Records

Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 23

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Why is Lean IT So Difficult?

24Lean IT - From Theory to Application, Mike Orzen www.maorzen.com

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• Conflicting forces

• Event-driven thinking

• Culture of heroic effort

• Leading with technology to solve a process problem (missing the point)

The Trouble with CPI and IT

25Lean IT - From Theory to Application, Mike Orzen www.maorzen.com

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• Server Deployment• App and H/W Maintenance• Dev/Ops Coordination• Break/Fix Process• Offshore Coordination• Coverage Process• Help Desk• Prioritization

Examples of Applied Lean IT

Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 26

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Questions & Comments

Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 27

Mike OrzenLean Enterprise InstituteThe Shingo Prizewww.maorzen.comTwitter: MikeOrzenLeanIT

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Copyright © Institut Lean France 2011

www.lean-it-summit.com