Continuous Improvement in Learning & Performing by Arthur van Wylick, EDSN, Lean IT Summit 2014
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The document outlines the transformation journey of EDSN, a facilitator in the Dutch energy market, which began in 2011 to transition from a hub to a central agency. It highlights a phased approach to continuous improvement, focusing on departmental optimization, interdepartmental collaboration, and alignment with customer demands, resulting in significant gains in employee and customer satisfaction. Key learnings emphasize the importance of a customer excellence mindset, active management ownership, and the need for skilled external support during the transition.
Continuous Improvement in Learning & Performing by Arthur van Wylick, EDSN, Lean IT Summit 2014
- 1. P ris, France 16 & 17 October, 2014 Copyright © Institut Lean France 2014 Lean IT Summit ® ® EDSN’s Transition Continuous Improvement in Learning & Performing Arthur van Wylick Version 1.0
- 2. Lean IT Summit ® ® Agenda Con nuous Improvement Success Phase 1 Phase 2 Phase 3 Departmental op misa on Outside in op misa on Value Chain op misa on Employees Management MT 0 2 4 6 8 10 Start traject Overdracht HofP # calls per week per employee Number of calls per week per employee +80% Start Handover 2 Approach Results Lessons Learned Discussion Challenge
- 3. Energy Data Service Netherlands (EDSN) is the market facilitator for the Dutch Energy market 3 2011 2012 2013 Turnover 9.4 14.1 21.6 Assets 7.2 20.8 30.5 employees (total) 19 (120) 22 (120) 35 (70) Balance Responsible Supplier Service Provider Producer Grid operator Transport System Operator • Metering point administration • Measurement data registration • Allocation & Reconciliation • Balancing & Settlement Market facilitating platform for providing access to: EDSN Regulated Commercial
- 4. Being part of the changing energy market, EDSN has started an ambitious transition in 2011 From Hub To Central Agent Goal Distributer of messages between parties Manager of centralized registers IT Systems Routing service Centralized Registers Mindset Best effort Mission critical, zero fault Regulation Loosely regulated Tightly regulated 4 EDSN . DSO transition EDSN . DSO Hub Central Agency
- 5. 5 Status of EDSN by the end of 2012 •Significant overrun on its IT project; •Customers had taken over the project management; •EDSN was challenged by customers to prove itself capable of managing mission critical systems. Consequence •The supervisory board had ordered a McKinsey audit; •A new CEO was appointed as per January 2013. In 2012 EDSN was facing a significant challenge to take up its role as a central agent EDSN . DSO transition EDSN . DSO Hub Central Agency
- 6. The new CEO has launched a clear agenda to secure the future of EDSN 6 Get IT project back on track Prepare EDSN for its new role as market facilitator
- 7. EDSN’s change approach was built on 2 LEAN principles 7 Phased approach Employees Management MT CI interventions simultaneously at all levels Continuous Improvement Success Phase 3 Phase 2 Phase 1 Departmental optimisation Outside in optimisation Value Chain optimisation
- 8. 8 Phase 1 •Optimization focused on departments; •Capture low hanging fruit; •Tackle largest dissatisfiers; •Create boost in employee Morale; •Build credibility; •Get right people on the bus. Phase 2 •Define value chains; •Establish new responsibilities; •Tackle interdepartmental issues; •Stimulate and allow high impact improvements; •Align non core teams. Phase 3 •Customer demand as a basis for services offered; •Eliminate ‘non desired services and products’; •Awareness of and ability to translate trends and developments into services; •Align service portfolio with customer requirements. The phased approach has given the organization and its stakeholders a clear scope Continuous Improvement Success Phase 3 Phase 2 Phase 1 Deptart- mental optimisation Outside in optimisation Value Chain optimisation
- 9. Interventions at all levels were focused on creating a customer excellence mindset and leading by example •Build mindset of customer excellence; •Build mindset of ‘you can make a difference’. 9 •Build mindset of facilitating the development of personal skills and know how to deliver customer excellence; •Lead by example. •Create customer excellence mindset; •Have a zero tolerance mindset for deviations from mindset; •Lead by example. Goal Employees Management MT Level
- 10. Interventions at all levels require outside support - House of Performance supported EDSN with Lean and personal development support 10 •Daily stand ups; •Kaizens; •Introduction of KPI’s on first time right and first call resolution. •Coaching on management style (1 on 1); •Alignment of management controls for Service Profit Chain. •Development of shared vision; •Monthly team building sessions; •Intervision and Kaizens; •Sinners vs Saints analysis (and follow up). House of Performance supported Employees Management MT
- 11. Key achievements of first phase are impressive 0 2 4 6 8 10 Start traject Overdracht HofP Customer Satisfaction (Service Dept.) +16% 0 2 4 6 8 10 Start traject Overdracht HofP Employee Satisfaction (Maintenance Dept.) 0% 10% 20% 30% 40% 50% 60% 70% Start traject Overdracht HofP % Throughput calls 0 2 4 6 8 10 Start traject Overdracht HofP # calls per week per employee 0 2 4 6 8 Start traject Overdracht HofP Throughput time (days) Number of calls per week per employee Throughput calls in % (Chain: 1st and 2nd line) Throughput time calls (Chain: 1st and 2nd line) +21% Start Handover Start Handover +80% -65% -28% Start Handover Start Handover Start Handover
- 12. In first phase IM and Maintenance & Support were most successful, Projects lagged behind 12 MT Information Management Projects Maintenance & Support F&A Purchasing HRM Information Management: •Focus on productivity through standardization of work processes and eliminating waste; •Impressive results. Maintenance & Support: •Traditional approach of eliminating waste •impressive results in productivity, customer satisfaction and mindset. Staff departments: •focus on support process improvement; •2nd wave, focus on ‘getting in control’. Projects: •Few results due to focus on delivery of program; •stand alone mindset. ✔ ✖ ✔ ✔ ✔ ✔
- 13. Continuous Improvement Success Phase 3 Phase 2 Phase 1 Deptart- mental optimisation Outside in optimisation Value Chain optimisation EDSN has started second phase optimization; focus on improvement of innovation cycle 13 Sept 2014 Management Assessment June 2014, start with value chain based organization Period of chaos and doubt Moment of truth
- 14. Projects (build) Value Chain thinking led to major breakthrough for Projects (by necessity due to vacancy) 14 Information Management (design) Maintenance & Support (manage) Before phase 2: •2 handover moments; •Limited ownership; •Departmental success not always in line with EDSN success; •3 cultures. In phase 2: •Committed handovers; •Staffing from line departments in Projects; •Common principles, KPI’s and values; •Everybody is committed to successful outcome. Information Management (design) Maintenance & Support (manage) Projects (build)
- 15. Main Learnings •Phased approach works well: –Keeps focus; –Provides roadmap; –Sets management agenda. •Continuous Improvement interventions need to be at all levels: –With strong focus on mindset of customer excellence; –Personal belief: not talking about money saves a lot of money; –Be very tough on deviators from mindset of skillset and customer excellence; –Mirror of outside consultant for team is needed; –Skill set of outside consultant for interventions at all levels is needed. •Managing a project with all stakeholders in team works well; •Active ownership by management acts as a catalyst to cross silo boundaries; •Management Pyramid is indeed upside down. Cracks in higher management team lead to tip over; •Although the transition has been very successful, almost 30% of staff has left the company during phase 1 and the start of phase 2. 15
- 16. Lean IT Summit ® ® Contact Details EDSN, The Netherlands www.edsn.nl Arthur van Wylick Arthur@plusu.nl, +31 62 96 28 286 (CEO until July 11, 2014) Paul Roos paul.roos@edsn.nl, + 31 35 54 80 180 (CEO as of July 12, 2014) 16 House of Performance, The Netherlands www.hofp.nl Stephanie Hunfeld s.hunfeld@hofp.nl, + 31 30 23 93 360 Consultant Heiko van Eldijk h.vaneldijk@hofp.nl, + 31 30 23 93 360 Partner