Banishing Waste and Delivering Value in Your BCM Program

Transcription

1 Lean Times Require Lean Thinking Banishing Waste and Delivering Value in Your BCM Program Session B19: Milen Kutev, MBCP, SCPM, PMP British Columbia Automobile Association / BCAA

2 Why am I talking today? more than 25 years program & project delivery active member of the Lean Program Management CoP editor for PMI s Standard for Program Management-3ed last 10 years primary managing BCM/DRP/ERM

3 Let s set the baseline (ISO definitions) Business Continuity: capability of the organization to continue delivery of products or services at acceptable predefined levels following disruptive incident Stakeholder (Interested Parties): any group or individual that can affect or that is affected by the achievement of the enterprise s objectives. BCM Program Objective: building organizational resilience with the capability of an effective response that safeguards the interests of its key stakeholders, reputation, brand and valuecreating activities Capabilities Confidence Competencies

4 What are the biggest challenges for you? Source: The guide to Lean Enablers

5 So, what is Lean thinking anyway? a set of concepts, principles and tools used to create and deliver the most value from the customer s perspective, while consuming the fewest resources and fully utilizing the skills and knowledge of those who do the work. PEOPLE Respect Perfection Value Customers / Stakeholders Pull PURPOSE Value Stream Flow PROCESS

6 Learn the new Lean words Value: particular worth, utility, benefit, or reward that stakeholders expect in exchange for their respective contributions (resource & money) to the enterprise. Customer: refers to those which are immediately in the downstream from you. It may be internal customers or external customers or end beneficiary. (Extended) Enterprise: a complex, integrated, and interdependent system of people, processes, and technology that creates value as determined by its key stakeholders (including partners, vendors, regulators and customers). based on: MIT s Lean Advancement Initiative LEM

7 Value Respect Value Stream Stakeholders Perfection Flow Pull Lean principles and enablers for BCM programs 1. CAPTURE THE VALUE DEFINED BY THE KEY STAKEHOLDERS

8 Do we agree what value is? Really?? This discussion demonstrated the continuing difficulty of distinguishing between metrics relating to value and metrics relating to compliance, completeness, and effectiveness, which serve different purposes. It raises a question in our minds as to whether directly measuring value is feasible. Perhaps the other metrics serve as indicators that value is being delivered, even if they are not direct measures Source: BCI The measurement of the value contribution of BCM study

9 Think back from stakeholders needs Source: ISO

10 Benefits & dependencies mapping Organizational Change (e.g. integrate ENS within IT incident management) enables Sustained Benefits (e.g. consistent and efficient notification and escalation during working and non-working) enables Project Output / Capability (e.g. new emergency notification system- ENS) prepare to realize enables in turn realizes Intermediate Benefits & Quick Wins (e.g. simplify notification process and eliminate manual rosters) helps achieve one or more Strategic Objective (e.g. improve IT service support & 24x7 availability) Based on: OGC Managing Successful Programmes, 2011

11 Let s repeat, one more time: * provided at the right time at an expected quality Value satisfaction of needs (benefits) * as defined by stakeholders use of resources (contribution) money, people, time, energy, materials, contracts Based on: OGC Management of Value, 2012

12 Value Lean enablers for you Establish the value and benefit of the program to the stakeholders Prioritize benefits by strategic alignment and resource needs Focus all program activities on the high priority benefits that the program intends to deliver Assign responsibility and accountability for benefits realization Frequently engage the stakeholders to assess the benefits throughout the program lifecycle Develop high-quality program requirements among key stakeholders before to start execution or RFP contracting Clarify, derive and prioritize requirements early, often and proactively Actively minimize the bureaucratic, regulatory and compliance burden on the program and sub-projects

13 Value Respect Value Stream Stakeholders Perfection Flow Pull Lean principles and enablers for BCM programs 2. OPTIMIZE THE VALUE STREAM AND ELIMINATE WASTE

14 Key Lean concepts: Muda, Mura, Muri Muda activities that do not add value workload that is not balanced; variability Mura Muri work that creates burden for the team members or processes Picture Source Toyota Motor Company Australia

15 What type of waste we produce? Overproduction Overprocessing Miscommunication Inventory Defects / Rework Unused expertise Waiting Transportation Delivering unnecessary or out-of-sync information Providing capacity that is in excess of the business requirements Adding unnecessary complexity in systems and processes Collecting the same data in several different steps; converting data Large and long meetings, excessive distribution lists Unnecessary hand-offs instead of continuous responsibility Maintaining an overly complex set of policies, procedures, controls Creating elearning library ten times larger than needed Reworking deliverables due to changing requirements or scope Not updating documentation when changes or errors have been found Not doing anything with generated / suggested ideas Delegating tasks with inadequate training Wasted time waiting for the next step in a process (hand-off / approval) Calls not returned; waiting for clarification or information Obtaining information by walking up and down the hallway Travelling to meetings; off-site training

16 Value Stream Lean enablers for you Map the value streams and eliminate non-value added elements Actively manage dependencies to optimize program performance Build in transparency and accountability Pursue multiple solution sets / alternatives in parallel Develop a distributed, collaborative BCM organizational model Ensure up-front that capabilities exist to deliver program requirements Front-load and integrate the program with existing functions Work with suppliers to proactively avoid conflict and mitigate program risk Develop an integrated program schedule at the level of detail for which you have dependable information

17 Value Respect Value Stream Stakeholders Perfection Flow Pull Lean principles and enablers for BCM programs 3. FLOW THE WORK THROUGH STREAMLINED PROCESSES

18 So what is flow? It s sounds easy enough to understand, right? flow of Information flow of Power and Control flow of Resources flow of Work-In-Progress look for stops, delays, constrains, re-do flow of Partner's services

19 How to optimize the flow? focus on integration, transparency and collaboration needs challenges challenges challenges challenges needs challenges vision blueprint time box time box time box time box vision blueprint time box metrics value value value value metrics value standardizing procedures setting a common tempo eliminating loop-backs balancing workloads make your choices and commitments at the last responsible moment

20 What s wrong with targets & milestones? If you have a stable system, then there is no use to specify a goal. You will get whatever the system will deliver. A goal beyond the capability of the system will not be reached. If you have not a stable system, then there is again no point in setting a goal. There is no way to know what the system will produce: it has no capability. W. Edwards Deming

21 Segregating complexity: iterative or incremental we incrementally add components piece by piece we iterate to find the right solution Pictures source Jeff Patton

22 Flow Lean enablers for you Make your choices and commitments at the last responsible moment Identify and evaluate all alternatives as soon as possible Ensure clear responsibility, accountability and authority Standardize the work to reduce variations in processes and performance Make performance visible to balance capacity and improve accountability Use a program manager role to lead and integrate program from start to finish The one who executes the work is the one who plans the work Pursue collaborative and inclusive decision making that resolves the root causes of issues

23 Value Respect Value Stream Stakeholders Perfection Flow Pull Lean principles and enablers for BCM programs 4. LET STAKEHOLDERS PULL VALUE

24 Pull some advice from Steve Jobs

25 Pull Lean enablers for you Pull tasks and outputs based on need, and reject others as waste Promote effective real time direct communication between each Giver and Receiver in the value flow Implement a Pull system to manage "work in progress" such that resources are kept continually employed but not over-worked Make work in progress and existing demand (tasks backlog) visible for everyone Promote the culture in which people pull knowledge as they need it and limit the supply of information to genuine users only Establish effective contracting vehicles in the program that create effective pull for value from external stakeholders

26 Value Respect Value Stream Stakeholders Perfection Flow Pull Lean principles and enablers for BCM programs 5. PURSUE PERFECTION IN ALL PROCESSES

27 Perfection by quality and continuous improvement Standardized tasks are the foundation for continuous improvement and employee empowerment Continuously solving root problems drives organizational learning Plan Do Check Act Clarify the Problem Break Down the Problem Define Future State and Gaps Root Cause Analysis Develop Corrective Actions See Corrective Actions Through Monitor both Results and Processes Standardize Successful Processes

28 Problems some advice from Ohno San No one has more trouble, than the person who claims to have no trouble. Having no problems is the biggest problem of all Taiichi Ohno

29 Perfection Lean enablers for you Make effective use of existing program management and organizational resiliency standards Make anomalies, incidents and problems jump out in the process of performing the work Strive for excellence, to get quality right the first time Use change management effectively to continually and pro-actively align the program with unexpected changes in the environment Proactively manage uncertainty and risk to maximize program benefits and sustainable capabilities Strive for perfect communication, coordination and collaboration across people and processes Promote continuous improvement methods to draw best energy and creativity from all stakeholders

30 Value Respect Value Stream Stakeholders Perfection Flow Pull Lean principles and enablers for BCM programs 6. TREAT PEOPLE AS YOUR MOST IMPORTANT ASSET

31 People make the difference enabling front line staff to unblock the flow of value creation solve business problems in their specific context follow me and let s figure this out together Go and See Ask five Why s Show Respect We build people before we build cars (Toyota) developing their capabilities through mentored learning by doing everyone learns to use the continuous improvement approach Based on: John Shook, LEI

32 Respect Lean enablers for you Build a program culture based on respect for people Motivate by making the higher purpose of the program and program elements transparent Support an autonomous working style Encourage personal networks and interactions Expect and support people in their strive for professional excellence and promote their careers Promote the ability to rapidly learn and continuously improve Design processes in a way that participants see opportunities for learning Watch Dan Pink at YouTube Picture Source danpink.com & RSA

33 In summary the Lean BCM path solve specific business problems by developing the capabilities to improve the flow of work enabled by leaders showing clear direction and asking questions and believing that the organization is never done, always striving to improve Based on: John Shook, LEI

34 Internet resources for additional information Lean in Program Management Community of Practice (PMI / INCOSE / MIT) Encyclopedia of Lean Enablers for Managing Engineering Programs (MIT-CEPE) Lean Management Enterprise Compendium (McKinsey & Company) The Lean Enterprise Institute (LEI) American Productivity & Quality Center (APQC) The Lean Enterprise Academy (UK) Envision a better future Question value of every activity Solve problems together Pull people out of their boxes Slow down to speed up

35 The last slide To continue your Lean journey, it is essential to keep asking questions thanks for listening! get in touch if you want to discuss further: ca.linkedin.com/in/milenkutev