Lean IT From Theory to Application

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1 Lean IT From Theory to Application Moving beyond the what to the how! Mike Orzen Lean Enterprise Institute The Shingo Prize

2 Level Set Lean IT - From Theory to Application, Mike Orzen 2

3 Paradigms 3

4 Where is Value in IT? Lean IT - From Theory to Application, Mike Orzen 4

5 The IT Myth IT enables people to solve problems and create value Information is primary Functionality is secondary Lean IT - From Theory to Application, Mike Orzen 5

6 The Weave Lean IT - From Theory to Application, Mike Orzen 6

7 Help Desk & Support Operations 7 IT Services Value Streams App Dev/Maintenance, Infrastructure Engineering Portfolio Mgt. PMO and Resource Mgt. Prioritization, Delivery Enterprise Architecture Governance, Budget Application Delivery Value Stream Service Desk Value Stream Security, Stability Value Stream Client Services Value Stream Copyright 2011 Mike Orzen & Associates, Inc. All rights reserved.

8 Help Desk & Support Operations 8 IT Services Value Streams App Dev/Maintenance, Infrastructure Engineering Portfolio Mgt. PMO and Resource Mgt. Prioritization, Delivery Enterprise Architecture Governance, Budget Application Delivery Value Stream Service Desk Value Stream Security, Stability Value Stream Client Services Value Stream Copyright 2011 Mike Orzen & Associates, Inc. All rights reserved.

9 Help Desk & Support Operations 9 IT Services Value Streams App Dev/Maintenance, Infrastructure Engineering Portfolio Mgt. PMO and Resource Mgt. Prioritization, Delivery Enterprise Architecture Governance, Budget Application Delivery Value Stream Service Desk Value Stream Security, Stability Value Stream Client Services Value Stream Copyright 2011 Mike Orzen & Associates, Inc. All rights reserved.

10 About the Weave The good: expertise and execution/collaboration and communication The bad: silo based thinking, local optimization, conflicting priorities The ugly: unnecessary complexity and tech debt Lean IT - From Theory to Application, Mike Orzen 10

11 IT vs. Lean - Behaviors Firefighting to methodical cadence of work Lean IT - From Theory to Application, Mike Orzen 11

12 4 Steps 1 Understand the real work 2 Streamline communication 3 Simplify the process 4 Adopt hypothesis-driven problem solving Lean IT - From Theory to Application, Mike Orzen 12

13 Projects Business Problems Barriers & Opportunities Counter Measures & Solutions Lean IT - From Theory to Application, Mike Orzen 13

14 Working Sequence Process Improvement Quality, Speed, Cost Information Requirements Accurate, Timely, Actionable, Formatted, Accessible System Requirements Stable, Trusted, Secure Lean IT - From Theory to Application, Mike Orzen 14

15 An Example Know the business better than the business 4 DNA elements applied to information Lean IT - From Theory to Application, Mike Orzen 15

16 Processing Client Records 1. Specifications document all work processes and include content, sequence, timing and outcome. VSM Volume, quality and timing measures Focused process mapping Problem solving Lean IT - From Theory to Application, Mike Orzen 16

17 Processing Client Records Lean IT - From Theory to Application, Mike Orzen 17

18 Processing Client Records 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 Lean IT - From Theory to Application, Mike Orzen 18

19 Processing Client Records Lean IT - From Theory to Application, Mike Orzen 19

20 Processing Client Records 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 Lean IT - From Theory to Application, Mike Orzen 20

21 Processing Client Records Lean IT - From Theory to Application, Mike Orzen 21

22 Processing Client Records 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 Lean IT - From Theory to Application, Mike Orzen 22

23 Processing Client Records Lean IT - From Theory to Application, Mike Orzen 23

24 Why is Lean IT So Difficult? Lean IT - From Theory to Application, Mike Orzen 24

25 The Trouble with CPI and IT Conflicting forces Event-driven thinking Culture of heroic effort Leading with technology to solve a process problem (missing the point) Lean IT - From Theory to Application, Mike Orzen 25

26 Examples of Applied Lean IT Server Deployment App and H/W Maintenance Dev/Ops Coordination Break/Fix Process Offshore Coordination Coverage Process Help Desk Prioritization Lean IT - From Theory to Application, Mike Orzen 26

27 Questions & Comments Mike Orzen Lean Enterprise Institute The Shingo Prize Twitter: MikeOrzenLeanIT Lean IT - From Theory to Application, Mike Orzen 27

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