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How Lean IT can help drive growth

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The lean process improvement principles that have driven transformational change in areas such as manufacturing, accounting and supply chain management are making big waves in yet another sector: information technology.

Today, many companies are actively seeking the benefits of “lean IT,” seeking to drive out process waste and streamline workflow, turning to lean icons such as Toyota and Honda for inspiration. At The Ohio State University Center for Operational Excellence, for example, an entire community has formed for IT leaders seeking to drive efficiency and effectiveness through lean practices.

The stakes are simple but high: When IT stops, the business stops, and when it flows, it positions the business for success. But the sector – with its complexity, cross-functional interdependencies and conflicting priorities – presents a “perfect storm” of distinctive obstacles for leaders. Moving forward with a transformation, particularly in IT, requires a clarity of purpose, an alignment of people, and a sharp focus on the processes that create value for customers.

Accomplishing all of these takes more than just a set of lean tools – it requires a shift in behavior, driven by leaders equipped to change a culture.

All transformations begin with a look at purpose. A shared purpose is essential to create and drive a common intention, alignment and commitment. Everyone in the IT organization (as well as the business) needs to be very clear on why we are in business, why we are transforming and where we are vs. where we need to be. Without a widely understood and collective purpose that people can clearly see within the context of their daily work, everyone is left on their own to identify what matters most and determine what they should do (or not do) about it.

The next component is people. While clearly a central ingredient in building a highly effective organization, people also are the source of the uncertainty, disengagement, mistrust and political gamesmanship that can plague a workplace. When we treat people with respect and create systems and processes that position them for success, we cultivate trust, engagement, teamwork and high levels of performance.

In the hands of our people are the processes that represent the work we do to fulfill the mission of our organization. When processes are undefined, unclear or not consistently followed, the effort required, the time it takes, the quality of the outcomes and the frustration of staff and customers all become highly unstable and inconsistent.

Too many organizations fail to step back and examine these elements of the bigger picture, which ultimately serves as the “True North” in the lean transformation process. Companies that have “pockets” of improvement – islands of lean in a sea of waste – often lack understanding around a shared purpose, for example.

To truly keep momentum moving, organizations need fearless leaders at the core of their process improvement teams. If they stop leading the charge, improvement work and the underlying transformation immediately begin to taper off. If they succeed, the possibilities are endless.

Why we (almost) did not write the Lean IT Field Guide

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After writing the book Lean IT in 2011, we were amazed by the the response: a great deal of “pent up demand” and interest in applying the principles, methods, and tools of lean to IT operations. This lead to speaking engagements all over the world, webinars and papers, and a number of major opportunities to deploy lean IT in both large and medium-size companies. Like any lean experience, it was journey of trail and discovery with both success and setback, and much was learned.

As I met people in the US, Europe, Asia, and Australia, I heard a common request, “I loved the book and it has changed the way I view the function and purpose of IT and the people I work with, but… [it is always what people say after the but that is most critical!]. What followed was always some form of, “but how do we actually do it?” or “What are the steps we take to introduce and mobilize Lean IT throughout our organization?”

For several years I dismissed this request because I had been taught that people learn lean by going through the often-painful process of trying something, getting knocked down, reflecting, and trying again, until they come to understand that all of lean is a learning system based on the Plan-Do-Check-Adjust method. If we were to direct people in what to do and the sequence to do it, two problems would transpire: 1) without knowing in detail the distinctive challenges of their organization, we were not in a position of understanding to suggest a course of action, and 2) by providing such a roadmap for transformation, we would rob them of the hands-on learning experience essential to lean thinking and effective change.

Mike has had the amazing opportunity to apply lean IT at a number companies including Nike, Con-way, ANZ, Aggreko, Nationwide, and Motorists. After over twenty years of learning and struggling to be a lean thinker, it became apparent that we could share the essential elements of successful lean IT deployments in a way that would not violate either of our concerns. By keeping the roadmap at a level that would be universally applicable, there is ample opportunity for adaptation, experimentation, discovery, and learning so the reader can still experience the journey of lean IT! In fact, many of our readers have emailed to say that the book is equally effective in others areas of the business including the front office, HR, purchasing, Finance, transaction-based processing, analytical work, and even manufacturing. This is not surprising to us – these ideas are based on timeless universal principles which apply well beyond IT.

Applying our roadmap, Tom spearheaded the lean IT transformation at Nationwide with incredible success. In its seventh year, lean IT has delivered a new culture of performance, transparency, and more productive, better quality, and lower costs!

We hope that The Lean IT Field Guide inspires your journey in IT and beyond!

Accountability: Not What You Think it is…

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Accountability. It’s a word often feared in society for being associated with the blame game – being singled out when things go wrong, even if the reasons are beyond your scope of control. It seems we are always hearing about the importance of creating a culture of accountability.

Unfortunately, when managers and associates hear the term, they often flinch! Expressions such as “We’re holding you accountable” are often seen as code for “You are liable and will be blamed if things do not go as planned!” This is a major problem for any organization that is serious about creating and sustaining a lean transformation.

If we consider the lessons of LEI’s Transformation Model (shown above), we see that the entire foundation rests on the basic thinking and fundamental assumptions (both overt and unseen) that drive current culture. For leaders who wish to transform from a command-and-control culture to a more participative one, a key assumption is that, when treated respectfully, people will align to a common purpose, deeply engage in both doing the work and improving the process, and assume higher levels of accountability.

The image includes employees taking on tasks without being told to do so, showing initiative to improve quality first and efficiency second, and genuinely caring about their customers, team members, organization, and community. This basic assumption that is so central to a lean transformation becomes null and void when accountability is seen as a liability that management assigns, rather than a self-assumed role that people undertake of their own volition.

When there is evidence of intentional avoidance of accountability, it suggests that people don’t trust the intentions of the organization, leadership, or even fellow teammates. They may be avoiding the risk of potential conflict that comes from taking on a task which the outcome is uncertain. This is true problem solving and it can be scary enough without the fear of being blamed if things don’t work out well. It is interesting to note the role that trust plays in all this.

Creating a lean environment is essentially creating a learning environment. In a learning environment, we move away from experts who tell others what to do and towards learners who run experiments (rapid PDCA cycles) to better understand root cause(s) and validate effective countermeasures. Accountability must be self-imposed in order for people to truly grasp the concept, take ownership, and take on appropriate levels of commitment.

But this can only be done when the fear and apprehension most people associate with words such as accountability are openly addressed. When reflecting on your own organization, here are a few questions to consider:

  1. Do we blame people when things don’t go as planned?
  2. Do people self-assume accountability or do we assign/delegate accountability?
  3. In our current culture is there fear, anxiety or hesitation around accountability?
  4. Do we ask people to be accountable before asking if they are capable?
  5. Do accountability and authority always go together? When should they?

To learn more about creating a culture of accountability and respect through effective leadership, sign up for Mike Orzen’s pre-summit workshop, Lead with Respect: Practicing Respect for People to Enable Engagement, Teamwork & Accountability, at the 2016 Lean Healthcare Transformation Summit this June. Learn more about Lead with Respect and other Summit workshops on the summit webpage.

Note: this article also appeared in the Lean Enterprise’s Lean Post in February of 2016.

The Importance of Work Systems, Sequence, & Adaptive Lean IT Systems – Part 4

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This is Part 4 of Sequences, Behaviors and Integrating Adaptive Lean IT Systems – an updated article originally published in the Lean Management Journal in October 2015.

In the previous blog entry, team huddles and a visual management system were mentioned. These are both examples of work systems designed to encourage the specific behaviors we want to cultivate. There are many work systems that comprise a lean management system including problem solving, daily huddles, leader standard work, training, recognition, visual management, strategy deployment, measurement, and monthly performance reviews, just to name a few.

It is these work systems that impact people’s behavior most significantly by emphasizing and reinforcing those actions we want to see everyday from everyone. Where many organizations get into trouble is in the sequence and timing of how and when to introduce these systems.

SEQUENCE IS CRITICAL

Over the past twenty-four years, I have tried many approaches and witnessed what works and what doesn’t. Here’s the bottom line: each organization has its own culture, history, and work environment, so one size does not fit all. There is no standard deployment sequence or collection of work systems that apply universally. That said; there are some fundamental concepts applicable to all organizations.

1) Start by establishing a clear purpose throughout the organization. This is a prerequisite for success.

2) Acknowledge that the bedrock of lean is learning and that problem solving capability is the skill to cultivate if you are serious about transformation.

3) Strive to balance the two pillars of lean: continuous improvement and respect for people. Don’t make the common mistake of falling in love with tools of continuous improvement and ignoring respect for people.

4) Create a culture of accountability by building work systems that position your people to succeed, to learn, and to grow. This is true respect for people and promotes high levels of teamwork, engagement, accountability, and ultimately performance.

5) Work systems must be designed, built, maintained, and improved by the people doing the actual work. Outside support is fine, but the frontline people must do the work.

ADAPTIVE LEAN IT SYSTEMS

Whether you are considering bringing lean IT to your organization, currently applying it to IT operations, or determined to build a lasting transformation, awareness of the lean IT diamond and the importance of behavior, work systems, and sequence will significantly increase your odds of success.

At the end of the day, Lean IT is all about effectively responding to change by continuously improving adaptive systems. In order to be effective, IT must change its behavior and functional capabilities in response to its environment and the needs of the Business. When IT reshapes systems and technology, the adaptive change is directly relevant to achieving the goals and objectives of the organization.

SUMMARY

For IT organizations to evolve and become more responsive to the changing needs of the Business while simultaneously maintaining the stability and security they are held responsible for, IT professionals need to understand and embrace the behaviors, as well as the thinking, of Lean IT.

For additional information on how to mobilize a Lean IT transformation, see The Lean IT Field Guide – A Roadmap for Your Transformation.

 

The Importance Of Behavior – Part 3

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This is Part 3 of Sequences, Behaviors and Integrating Adaptive Lean IT Systems – an updated article originally published in the Lean Management Journal in October 2015.

At the end of the day, all change comes down to altering our established patterns of behavior. Anyone who has attempted to make a lifestyle change (such as quitting smoking or eating healthier) can attest to how difficult this is.

It is interesting to note that most transformations tend to focus on training people in the new ways of doing things. We assume that if people know about a new (presumable better) way of doing something, they will automatically adopt it as their regular way of acting. Nothing could be further from the truth. If knowing about a better behavior caused people to change their actions and develop new habits, no one would be overweight, use tobacco products, or run on less than 6 hours of sleep!

We are all creatures of habit and become very comfortable with the way we’ve always done it, even when our routines become outdated, broken, and painfully frustrating. Why? Because it is really difficult to change the behavior of others or even ourselves. This resistance to change is a universal condition that, unless addressed directly and openly, puts all transformation efforts at serious risk.

MAKE/BREAK, CADENCE, & PREDICTABILITY

There are three factors you need to know about to effectively address this issue: make/break, cadence, and predictability. So what does it take to make or break a habit? I have confirmed it requires 40 days of practicing a new behavior before we can even begin to change old habits. At 90 days we have confirmed and strengthened the routine. At 120 days the new habit becomes deeply engrained as a part of our identity (how we see ourselves). At 1,000 days we have mastered the new behavior. Here’s the secret: the days must be consecutive! That’s right – if you miss a day, any day, the next day is Day One and you start counting from the beginning. I have personally used this approach to successfully affect change at both organizational and personal levels and it works.

Why is this approach so effective? People like routine and predictability – we are hard-wired to repeat what has worked before and to be skeptical of anything outside the conventional pattern. Most people drive to work using the same route, walk through a grocery store selecting the same items, watch the same TV programs, and go to bed at the same time – you get the picture. By enforcing a new routine and deliberately changing our behavior, we gradually provide the predictability and structure our human nature innately desires. When the changes make our work better, faster, less stressful, and prove to be more rewarding, that further reinforces the value of the routine and new habits begin to take deeper root.

As new work processes yield better results including more consistent quality, less rework, variability, and overburden, predictability of outcomes increases and we receive yet another dose of reinforcement – increased customer satisfaction!

THE KEY SYSTEM – PROBLEM SOLVING

An example may serve to clarify this approach to creating new habits. Let’s assume you have introduced lean problem solving to your IT group as part of your transformation. People have received training in basic lean concepts including PDCA, A3, and root cause analysis. The assumption is that once people understand lean problem solving, they will use it in their daily work. This rarely happens. In most cases about 10% of your people will be self-starters and try to apply lean practices on their own. The vast majority of people attend the training and think, “That’s interesting…” and then go back to work using their normal ways of getting things done. They quickly fall back to their comfort zone, which excludes the ideas and tools shared in the training workshop.

Applying the make/break, cadence, and predictability concepts, we would include problem solving as an essential element of our daily team huddles and visual management system. On a daily basis, the team would be coached by responding to questions of inquiry designed to foster new ways of applying what was learned during the training on problem solving. The only way people learn lean is by doing lean!

In the final post of this series, we’ll explore the importance of work systems and sequencing to build adaptive Lean IT systems.

Transforming IT Is More Difficult But Not Impossible – The Lean IT Diamond – Part 2

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This is Part 2 of Sequences, Behaviors and Integrating Adaptive Lean IT Systems – an updated article published in the Lean Management Journal in October 2015.

Today, many companies are actively seeking the benefits of lean IT and are undergoing constant transportation in their IT group. They are often familiar with lean and/or Six Sigma and have had some success with process improvement in other areas of the business such as manufacturing, accounting, and supply chain.

However, the landscape of IT, the complexity and dynamics of technology, the interdependency of its functional silos, and conflicting priorities when working with the Business, all combine to create a perfect storm of distinctive obstacles.

There is a key relationship that exists in all organizations. When understood and appreciated, it can provide clarity and direction to a lean IT transformation.

Let’s look at the components of the lean IT diamond and why it can be so helpful. At the top of the model, we begin with Purpose. A shared purpose is essential to create and drive a common intention, alignment, and commitment. Everyone in the IT organization (as well as the Business) needs to very clear on why we are in business, why we are transforming, and where we are vs. where we need to be.

If this shared understanding is not in place, you can be certain to see different behaviors, erratic degrees of engagement, and the consequential mixed results. Without a widely understood and collective purpose that people can clearly see within the context of their daily work, everyone is left on their own to identify what matters most and determine what they should do (or not do) about it. If you have ever witnessed pockets of improvement (aka islands of lean in a sea of waste), you can be assured there is a lack of understanding around shared purpose.

The next component is People. It may seem obvious that people are a central ingredient in building a highly effective organization. What is not so obvious, or at least publicly acknowledged, is that many work environments are abundant with uncertainty, disengagement, mistrust, apathy, fear, and political gamesmanship. In our first book, Lean IT Enabling and Sustaining Your Lean Transformation, I noted that people are often the only appreciating asset in an organization. When we treat people with respect and create systems and processes that position them for success, we cultivate trust, engagement, teamwork, and high levels of performance. Perhaps the most essential element in a successful transformation is to ensure the initiative is behavior-based. See the next post in this series for a discussion of behavior-based change.

Process represents the work we do to create value for our customers, to collaborate with our partners (the Business, vendors, supply chain, and outside resources), and to ultimately fulfill the mission of our organization. When processes are undefined, unclear, or not consistently followed, the effort required, the time it takes, the quality of the outcomes, and the frustration of staff and customers all become highly unstable and inconsistent.

The final component of the lean IT diamond is Information and Technology. It is useful to think of these two elements as distinct yet highly interdependent. With respect to information, IT is the mechanism that transforms raw data into useful and actionable information. IT, when done well, is the connective nervous system that joins people with actionable information.

Concerning technology, IT is the enabler of the business – capturing, organizing, and storing immense amounts of data, routine tasks, building transactional records, enforcing business process rules, managing secure access, all while providing work process functionality and visibility to all functional areas of the business.

The flow of complete, accurate, timely, and actionable information is a key determinant of the flow of customer value and organizational performance. When IT stops, the Business stops. When IT flows, information flows and the Business is positioned for success (of course it takes more than just great IT).

Transformation, Behavior, Sequence, and Adaptive Lean IT Systems – Part 1

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Updated article which recently appeared in the October 2015 edition of the Lean Management Journal

Transformation is today’s buzzword. It seems everyone in the lean community is talking about transformation. This makes sense given that we’ve spent the past several decades attempting to understand, copy, and adapt the improvement tools of Deming, Ohno, Shingo, and others and getting mixed results. Today we have only a handful of companies we might describe as Lean Enterprises and Toyota remains as the undisputed archetype. So what is transformation and why are so many companies pursuing it? Transformation is often described using words such as radical change, metamorphosis, revolution, and overhaul. Perhaps the most important aspect of a true transformation is that it is irreversible. This is the characteristic of lean transformation that has eluded most organizations. Granted, they have trained their people in the tools and core concepts, experienced process improvements through kaizen, made changes to the physical environment, introduced lean management systems, and have realized measureable results.

TRANSFORMATION IS DIFFICULT TO SUSTAIN – THE PUNISHMENT OF SISYPHUS

But what many organizations discover is that the momentum and energy required to keep their transformation going is being provided by a small group of people (usually the Process Improvement team, a cadre of lean coaches, or a charismatic lean champion). If they stop leading the charge, improvement work and the underlying transformation immediately begin to taper off. It’s as if organizational momentum is a large stone that needs to be constantly pushed up hill – if we stop pushing, it quickly rolls back down! This reminds me of the Greek myth of Sisyphus, who was punished for being deceitful by being forced to carry a huge boulder up a mountain, only to watch it roll back down, for all of eternity. Many organizations seem to be stuff in a similar loop!

LEAN IT IS ESSENTIAL

Delivering value to the customer is a common objective of practically every organization in existence. In order to accomplish this, it is essential to deliver services, products, and information which meets customer-defined quality, at a price they are willing to pay, and at a pace that matches customer demand. With the advent of the Internet, smartphones, and unprecedented access to information, customer expectations of quality, value, variety, convenience, and delivery have been increasing rapidly and there is no end in site. In order to meet customer expectations, today’s business climate is categorically reliant on the flow of information. Modern-day business process improvement, a collection of principles, systems, and tools aimed at creating a culture of continuous process improvement has evolved over the past 100 years or so. Most recently, we have been witnessing an explosion of improvement methodologies in the Information and Technology space. This comes as no surprise given our insatiable need for the information we require to make timely, informed decisions in response to ever-increasing customer expectations.

In the 1980’s, the IT Infrastructure Library (ITIL) emerged as a set of standard practices for IT which focused on aligning IT services with the needs of business (a novel idea at the time). ITIL has gone through several iterations and evolved to include a continuous service improvement component that embraces many of the tenets of lean thinking. Since then, we have seen the further application of lean in IT including Agile/Scrum, Kanban, Continuous Delivery, Lean Startup, DevOps, and Lean/ Agile Project Management.

I refer to this entire body of IT performance improvement as lean IT. Lean IT is the application of lean through to Information, Communication, and Technology. It’s a management system made up of two key pillars: continuous process improvement and respect for people. Lean IT is ultimately a learning system using a structured and disciplined approach to solving problems and pursuing opportunities. Lean IT focuses on engaging IT people to methodically improve IT processes in partnership with the Business to deliver more value to end users and enable the Business to deliver more value to end customers. This includes getting out on a regular basis to better understand the challenges and value equations of end users and see how information and technology are really being used. Lean IT is about engaging people, improving core business processes, and leveraging technology to enable the entire organization to accomplish more, create more, and achieve more with the least effort required.

In the next installment of this post, we’ll explore the Lean IT Diamond and that fact, although transformation is extremely difficult, it is not impossible.

Driving Transformational Behavior with Core Work Systems

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by Ben Linders on Aug 27, 2015

 

Mike Orzen will talk about using core work systems to drive transformational behavior at the Lean IT Summit 2015. InfoQ will cover this event with news, Q&As and articles.

InfoQ interviewed Orzen about the benefits that organizations aim for when they adopt lean IT, why adopting and reinforcing new behaviors is essential to creating sustained change for the better, core work systems and work processes for IT organizations, and common missteps that organizations tend to make in lean IT transformations and how to prevent them.

 

InfoQ: Can you briefly describe lean IT for the InfoQ readers?

Orzen: Lean IT is the application of lean thinking to Information, Communication, and Technology. Lean thinking is a learning system made up of two key components: continuous process improvement and respect for people. Lean IT focuses on engaging IT staff in methodically improving IT processes and technology in order to deliver more value to its customers. Lean IT is all about people and technology enabling the entire organization to achieve great results through great behavior.

 

InfoQ: Which kinds of benefits do organizations aim for when they plan to do a lean IT transformation?

Orzen: In today’s world, business runs at the speed and agility of the underlying information flow. The benefits of lean IT are essential to make it possible for organizations to perform at high levels of operational excellence. There are many rewards: improved team effectiveness and productivity, greater return on IT spend, superior project performance (quality, user-acceptance, delivered functionality, delivery time, and total cost of ownership), higher levels of engagement and accountability, greater levels of trust, communication, and collaboration with the Business, recruitment and retention of IT talent, and the creation of a fun and rewarding IT work environment.

 

InfoQ: Can you elaborate why adopting and reinforcing new behaviors is essential to creating sustained change for the better?

 

Orzen: Most companies embarking on lean (whether in IT or another part of their business) tend to initially focus primarily on the tools (value stream mapping, A3, standard work, 5S, etc.). Tools alone fail to change the deeply engrained habits we all bring to the way we think about and perform our daily work. These paradigms tend to lock people into “the ways we’ve always done it” and prevent change beyond a superficial level, let alone breakthrough improvement. That is why well over 95% of lean transformation initiatives fall short of their stated goals.

 

No one likes change when it is done to him or her, but most people willingly participate when they are part of the creation process. When people are respectfully engaged to make real improvements to the obstacles they deal with everyday, given the tools, time, and support they need to test potential improvements, and coached to reflect and learn from the improvement cycle, we unleash tremendous energy and excitement.

 

Thinking alone won’t make this happen. We’ve all heard the maxim, “It is easier to act your way into a new way of thinking than it is to think you way into a new way of acting.” We lead with a bias toward action and that means changing behavior.

 

InfoQ: Your talk will be covering core work systems and work processes for IT organizations that want to become lean. Can you give some examples of this?

 

Orzen: Core work systems set people up for success by creating transparency, collaboration, and mutual trust among associates, supervisors, managers, and executives. These systems make it very clear what specific behaviors are expected of everyone. For example, a visual management system that clearly shows daily goals compared to actual performance highlights gaps between where teams need to be and where they are. When people know whether they are winning or loosing, they can make adjustments, communicate to stakeholders, request help, and escalate issues beyond their circle of control.

 

A visual management system creates the setting and context in which managers and executives visit the workplace on a regular, scheduled cadence to stand in the shoes of the people doing the work, understand their challenges, and actively coach, support and develop their people.

 

Another example is the problem solving system. I often work with companies that lack an approach for solving problems in a common, structured way. If you ask ten people how they go about solving a problem, you’ll get at least ten answers (sometimes more!). Without a united approach to the way people identify, define, understand, analyze, experiment, and ultimately solve complex problems, we tend to make guesses and try fixes based on unfounded beliefs and assumptions, often making matters worse!

 

When there is a common approach to how problems are defined, current conditions are analyzed, and potential solutions are developed and tested, the social fabric of an organization changes and drives new levels of engagement and results. PDCA, DMAIC, and Kepner-Tregoe are all examples of problem solving work systems. But the real key is not found in forms and templates, it is in the common language and behavior of team members as they encounter problems and opportunities for improvement.

Work processes are the methods, sequences, and steps we take to get the work done. When work processes are undefined or inconsistently applied, the effort required to perform work and the quality of the product or service are highly variable. Lean IT drives quality and as a result increases the flow of work. As this happens, the visibility and speed at which problems come at you are accelerated. In a lean IT work environment, work processes need to be stable, capable, standardized, and continuously improved. This is more of an aspiration than it is a final destination. As someone once said, “there is no finish line!”

 

InfoQ: What are the common missteps that organizations tend to make in lean IT transformations? Can you elaborate why do organizations tend to make these mistakes, and what can be done to prevent them?

Orzen: As I mentioned earlier, the most common misstep is the exclusive focus on lean tools. The most successful transformations are based on core principles, built through work systems, and adjusted through the tools. Another mistake is not engaging executives and managers appropriately and at the right time. Leaders, managers, and supervisors all have critical roles to play in a successful lean IT transformation. Sequence and timing are of critical importance and many organizations miss this.

 

A third oversight happens because lean is simple to understand yet deceptively difficult to successfully realize. The nature of information and technology, the interdependency of functional silos, working with the Business, and the complexity of technology, presents a very different domain with a vast array of unique challenges.

 

I have worked with organizations that had successfully introduced lean in areas such as manufacturing and supply chain, and then ran into a brick wall when they attempted to initiate a lean IT transformation. I believe the reason for this is the behavioral component of any transformation. Nowhere in business is this more pronounced than in IT. The very essence of technology is tools-based and siloed while the nature of the work is people-based and integrated – requiring high levels of communication, collaboration, and trust.

 

In IT, many organizations discover they need a roadmap in order to do the right things, in the right sequence, at the right time, and at the right pace. That was the impetus for our new book, The Lean IT Field Guide. Every transformation is situation-based, so each organization’s journey is unique – just as their infrastructure architecture, technology stack, and configuration is unique! That said, there are some common elements we find in all successful lean IT transformations.

 

InfoQ: If people want to read more about lean IT, where can they go?

 

Orzen: I can recommend five sources:

  • our first book, Lean IT: Enabling and Sustaining Your Lean Transformation lays out the principles and foundational ideas of lean IT,
  • our next book, The Lean IT Field Guide (available now for pre-order and on shelves November 2015) provides a roadmap for the work systems discussed),
  • my website at com has information and resources,
  • check out my twitter feeds (always on lean IT, lean, and related topics) @mikeorzen,
  • and visit the new Lean IT Association site, this is an international non-profit group dedicated to supporting a high standard of lean IT practice. Full disclosure: I recently was appointed to their curriculum advisory board.

 

Lastly, I can be reached at mike@mikeorzen.com.

Intentional Respect

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Change is hard – we all know that – and ignoring the element of respect for people makes engagement and lasting change practically impossible.

Most of us are familiar with the Toyota Production System House, with its two pillars of Kaizen and Jidoka, but the model that resonates more deeply with many is The Toyota Way House as you can see below. This is certainly the case for me, and I’ve been reflecting on why this is.

Here’s a thought: the Toyota Way model suggests a relationship between the technical and social sides of a lean transformation that we intuitively know to be true.

On the left side is continuous improvement or kaizen, and here where most people invest their time, learning, and experimenting with the myriad lean tools available: value stream mapping, 5s, A3, PDCA, standard work, visual management, kanban, heijunkahoshin kanri, etc. These tools can be very effective at making a significant impact on safety, quality, delivery time, throughput, and productivity. However, most people discover that a tools-based approach to lean transformation is impossible to sustain and does not create anything approaching a lasting change for the better of people, teams, or organizations.

It’s really not surprising then that, according to McKinsey, 70% of all organizational improvement initiatives fail. This isn’t surprising considering the very few examples we have outside of Toyota of enterprise-wide lean transformations. There are many reasons why this is, but perhaps one key factor is that most organizations fail to intentionally balance the technical tools side with the social side of Lean. Most people say, “We respect our people. In fact, it is one of our core company values!” I don’t deny that most of us strongly believe in respect for people and that is great. But there is a big difference in believing in something and acting in a way that aligns with that belief.

On the right pillar is respect for people, so what does that really mean and what sort of actions can we take that shows we really practice respect for our people through the way we do our work? It comes down to this: how are we engaging our people? Is the purpose in peoples’ hearts aligned with our organization’s purpose? What specific behaviors are we taking to stand in the other person’s shoes and develop a deep awareness of their point of view? Do we try and try again to see the work from their perspective?

We spend so much effort trying to design perfect work systems and improve business processes focusing on lean tools, while simultaneously failing to connect with people on a level that awakens mutual trust, engagement, effective teamwork, and self-generating accountability (in other words accountability wherein people are intrinsically inspired – people assume accountability because they want to, now because they are being told to, measured, or threatened). A key takeaway from the illustration above is that creating a balance between the technical and social sides of Lean is not just good, it’s fundamental. It is the foundation upon which everything else rests. So, what are you doing in your organization to create this balance?

The next gemba walk you take, kaizen event you participate in, or daily stand up you attend, or A3 you review, ask yourself two questions:

  1. “What are we doing to show our people how much we care and how much we respect their opinions, ideas, contributions, and potential to transform?”
  2. “Are the actions we are taking to lead with respect fostering the levels of engagement, teamwork, and accountability needed to attain our vision and purpose?”

I recently worked with the Lean Enterprise Institute to create a new workshop, Lead with Respect, to address this very issue. The two-day experience is based on the book, Lead with Respect, a novel of lean practice, by Michael and Freddy Ballé. We developed the workshop with the support and input of Professor Ballé over the course of eight months and uses hands-on exercises to reinforce the specific behaviors of respect for people while applying the technical side of lean – those tools we are all so familiar with. This workshop raises our collective level of awareness of what effective leadership looks like and builds a bridge connecting the tools side of lean to the results and relationships side. Indeed it is only when we create an environment of mutual trust that we can change work habits and sustain high levels of performance.

Note: This version of this blog entry first appeared in the Lean Enterprise Institute’s Lean Post.

 

Applying the Principles of Lean IT to Data Management – Part 3

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In this final installment of this 3-part series, we look at how the practices and principles of Lean IT provide the approach and tools needed to eliminate data quality issues at the source. See Part 1 here and Part 2 here.

For a practical example of Lean IT and data management, see the webinar Lean IT: Driving SAP Continual Process Improvement.

Lean IT as Part of the Solution

In lean, all improvement starts with the people. The first step is to engage with your employees by leading with respect, creating a meaningful challenge, and fostering a workplace where excellence is the norm. When you engage with people respectfully, they respond in ways you never could have dreamed plausible.

Bad data entered into high-performance IT systems produces what one CEO described as, “Crap at the speed of light!” Even if we successfully create a lean application development environment, bad data will efficiently yield inaction-able information and over time, people will disengage and lose trust in their leaders, as well as the ERP system. The resourcefulness and genius of most workforces lies dormant beneath layers of distrust, uncertainty, and unreliability of the systems they are forced to contend with.

You engage with people because they really are your most valuable resource; in fact, people are your only appreciative resource! It is those who are closest to the work (as well as closest the problems) that most deeply understand the challenges and are best positioned to develop effective countermeasures.

In lean, we engage those closest to the work to define a target state, determine our current status, measure the gap, and identify roadblocks and obstacles. We run a series of experiments to strengthen our understanding of cause and effect and validate which countermeasures effectively move the dial and achieve measureable results. This cycle of learning and discovery (referred to as PDCA – Plan-Do-Check- Adjust) is a process that is frequently repeated until it becomes embedded into daily work routines. Although it seems straightforward and relatively simple, it is wickedly difficult to accomplish!

Figure 2 illustrates the PDCA cycle – an educational cycle of trial and discovery. The initial step of the process is Plan which starts with going and seeing where the work is performed in order to fully understand the current situation from the perspective of customers, end users, and those doing the work. Emphasis is placed on facts (data) over opinion and discovering potential obstacles that threaten the attainment of a target state (where we need to be in terms of quality, delivery time, productivity, cost, and customer satisfaction). As we tighten our grasp of the situation, we develop experiments to validate our understanding.

In the Do phase, we run the experiment and compare outcomes with our expectations. Again, we place an emphasis on measuring what matters most to customers, end users and those doing the work. In Check, we reflect on the results of the experiment and learn. If the results are what we anticipated, we have validated our understanding of cause and effect and demonstrated that the countermeasures intended to spark improvements actually work! If the results show a gap still exists, then we still do not fully understand, and need to consider alternative approaches.

Finally, in the Adjust phase, we determine our next step on what we learned during Check. If we have identified a working solution, we make it part of the standard work process. On the other hand, if we have not discovered an approach that gets us to where we need to be, we enter another cycle of learning and discovering by repeating the PDCA sequence. The cycle is repeated until we attain the results required.

The power of PDCA or lean problem solving is in its scalability, neutrality, and methodology. PDCA works well with relatively simple challenges as well as complex enterprise-level problems. It is domain neutral and functions effectively in any discipline, be it IT, supply chain, finance, manufacturing, service, healthcare, science, or other fields. The structured methodology supports a way of thinking and mental framework of how we approach problems that drive higher quality analysis and more effective responses.

So where does technology fit into lean IT? The answer may surprise you: it fits in last! First we engage the people and provide the tools, training, and support they need to drive improvement to core business processes. Those people in turn focus on the process to enhance quality at the source and flow of value to end users and customers. Then and only then, do we implement new technology and/or reconfigure our current systems to enable and automate redesigned processes that focus primarily on effectiveness.

This is not easy work, but the payoff creates new levels of performance, a cultural shift, and a competitive advantage that are almost impossible to match. Happy people do great work. When people experience the positive feeling of solving problems at the root cause level (rather than repeatedly working around chronic problems), they experience radical shifts in performance, personal growth, and teamwork. When they have the tools and information they need to succeed, that’s where the magic happens. When it comes to technology, it starts with quality at the source and that means accurate, complete, and timely data.

If you want to succeed, data quality is not an option, it’s a necessity. The quality of your data will determine the quality of your information, which plays the defining role in the quality of your work. Lead with respect by creating work systems and processes that produce great work!

So Now What?

So what can you do to effectively address data quality problems and leverage lean IT to extract greater value from SAP?

Learn: start your lean IT journey by reading our first book Lean IT, Enabling and Sustaining Your Lean Transformation, and by pre-ordering the “How To” book The Lean IT Field Guide (available November 2015). Pre-order the book here.

Connect: engage with your employees by going to where the work is done to better understand the challenges they are experiencing and to see things from their perspective.

Involve: introduce lean process improvements by applying the PDCA cycle of experimentation.

Automate: only after you have engaged your people and improved core work processes, should you consider new technology and/or reconfiguration to automate and streamline newly improved processes.

As we discussed earlier, lean IT is all about engaging people, improving processes, and leveraging technology – always in that order. The sooner you begin to address the issue of data quality, the sooner you begin to realize the impact of high-quality actionable information.

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