Lean Continual Service Improvement – Driving Change Enablement
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The document discusses how Lean principles can be applied to continually improve IT service delivery. It provides three examples: 1) A government agency used Lean tools like failure mode analysis to standardize support patterns and improve incident response times. 2) A bank used value stream mapping and metrics to identify weak links causing outages and reduce customer retention risks. 3) A gaming company insourced their service desk after finding outsourcing introduced waste and higher support costs. Lean helped reduce waste and costs while improving service.
Lean Continual Service Improvement – Driving Change Enablement
- 1. Lean Continual Service Improvement “Driving Change Enablement”
- 3. WELCOME!
- 4. Host and Presenter Deborah Burton Member Marketing Team Lean IT Association (LITA) Channel Marketing Manager ITpreneurs
- 5. LITA - Pioneering a Global Standard for Lean IT Education & Certification ● Lean IT Association (LITA) is a non-profit organization founded by three Accredited Training Organizations (ATOs) - ITpreneurs, Pink Elephant, Quint Wellington Redwood and three Examination Institutes (EIs) - APMG, EXIN, PEOPLECERT International Ltd. To realize its broader purpose LITA aims to provide: ● An industry-standard set of Lean IT reference materials and other resources for practitioner organizations to use; ● An certification scheme aimed at practitioner organizations looking to adopt Lean IT principles in the IT Service development and operations department as well as professionals that want to be certified in Lean IT on various levels.
- 6. Today's Guest Presenter David Smith President Micromation Inc. We help our customers increase the value they provide to their Customers.
- 7. 7 Watch Webinar Recording Webinar Recording Lean Continual Service Improvement “Driving Change Enablement”
- 8. Lean is a Way of Thinking and Acting • Increase customer value • Eliminate waste • Management as facilitator • Employee involvement • Continual improvement Customer Value Value Stream Flow Pull Perfecti on
- 9. Story # 1 – Gov Ops Better IT Customer Service by Reducing Muda (waste) to Improve Incident Flow.
- 10. Gov Ops Services Improvement Program Jill was the program manager who successfully improved many IT services for a Government Operations group (Gov Ops) using Lean thinking. Jill
- 11. Gov Ops Consolidation and Streamlining Gov Ops had recently consolidated many IT departments into fewer IT groups as part of a streamlining effort. This presented significant challenges in delivering quality IT services with the many changes that had taken place.
- 12. Integrated Service Agreement Methodology (ISAM) Jills’ team developed an Integrated Service Agreement Methodology (ISAM) that significantly improved support services by removing challenges and increasing effectiveness of the Help Desk, 1st line and 2nd line support processes. Jill’s Team ME
- 13. Step # 1 – Define Strategy We cataloged and classified critical customer groups, the services they used, where they were most vulnerable/risk, prioritized a roadmap, then worked with each customer to identify their expectations.
- 14. Step # 2 - Measurements The selected services were then instrumented using dashboards, scorecards and metrics for performance monitoring. A six month baseline was created for each service. Later, corrective actions were taken to reinforce improvements.
- 15. Step # 3 - Enablers We then decomposed individual services using a failure mode and effects analysis (FMEA). Results into a support model which identified the best support patterns, knowledge records, prescriptive actions for 1st line, 2nd line, 3rd line and what required configuration records.
- 16. Step # 4 - Challenges Then we closed all gaps by documenting service levels, roles & responsibilities, escalations, notifications, detection methods and performance measurements. These were attested and signed-off by all stakeholders.
- 17. Step # 5 - Initiatives The service was then activated into the operational environment by training and coaching help desk agents, L1, L2, L3 staff on their roles/ responsibilities, service levels, knowledge records etc. 17
- 18. The Results These steps were repeated on 26 more critical services over an 18 month period. All measured services were dramatically improved and verified.
- 19. Lean Thinking Finds - Eliminates Waste Kaizen Events Decompose Service Find Root Cause Define Measure AnalyzeImprove Control Service Function1 App 1 Infra 1 NetWK 1 App… Infra 2 NetWK … Function … Failure Cause RiskRank Action 1 3 2 Remove Waste4
- 20. Define Strategy Using CSI Value Canvas – Lean A3 Challenge: Waste, Issues, Gaps, Risks Initiative: Improvement, Innovation Control: Metrics, Analytics, Artifacts, Evidence Enabler: Managed Elements Strategy: Outcomes, Benefits Portfolio: Purpose, Timeframe www.csi-manager.com Integrated Service Agreement Methodology (ISAM) Better customer service delivery People: Service Desk Process: incident Tools: ticketing, Bus. Intelligence Data: Support, Knowledge, Conf. items Unclear R&R Process changes No CMDB Tacit knowledge Authority matrix Standardize support patterns Support model, SLOs Knowledge records Performance Reliability Availability Customer Satisfaction Cost Avoidance Regulatory Compliance
- 21. Service Decomposition Helped Determine Optimal and Prescriptive Support Patterns Service Function1 App 1 Infra 1 NetWK 1 App… Infra 2 NetWK … Function … What can fail? What is priority? Who to call? How long will it take? Who needs to know?
- 22. Application and Infrastructure Failure Modes and Effects Analysis (FMEA) Identify all failure modes. Consider the root causes. Assess the risk of the failure Rank the failure modes. Determine corrective actions. FMEA is used to understand what can go wrong, the impacts of failures, how failures are detected and what corrective action should be taken.
- 23. IM Workflows by Tier Register Diagnose Repair Restore Tier 0 (Service Desk) Tier 1 (Situation Mgr) Tier 2 (Internal SME) Tier 3 (Vendor SME) 23 As- Is To - Be
- 24. Story # 2 – Big Bank IT Prevents Loss of Major Business Customers by Reducing Mura (variance) to Improve Customer Services. 24
- 25. Big Bank in Trouble Because of Broken Services Some of Big Bank’s corporate customers threaten to pull-out due to inconsistent delivery of electronic banking services. Big Bank
- 26. What Could be Worse than That? “Penalties – Fines – Share Value” Performance penalties if transactions have to be refunded due to missed time cut-offs. Too many missed cut-offs result in fines from banking regulatory bodies. Word gets out, shareholders panic, dump shares, share price drops.
- 27. Lean Thinking Helps Big Bank Find - Eliminate Weakest Links 2. Value Stream 3. Information Flow 4. Measure 1. Strategy & Tactics
- 28. Strategy & tactics using CSI Value Canvas – Lean A3 Challenge: Waste, Issues, Gaps, Risks Initiative: Improvement, Innovation Control: Metrics, Analytics, Artifacts, Evidence Enabler: Managed Elements Strategy: Outcomes, Benefits Portfolio: Purpose, Timeframe Corporate Customer Retention Service provider Process: incident notifications Technologies: infrastructure/ app. Services Retention Performance measurement Technology stability Communications FMEA, Initiatives Dashboard, Scorecards Notification System Stability AvailabilityOutages Fines/ Penalties E2E Service Stability (variance)
- 29. Service Model Value Stream
- 30. FMEA Used to Isolate (Root - Cause) weak Links that need Remediation 30
- 32. Big Bank Services Performance Dashboard Big Bank Key Performance Metrics by Service Loss Performance Loss Event Summary FY 2014 Q1 Q2 Q3 Q4 # Payments Missed xxx xxx xxx xxx $ Penalties/Fines $xxx $xxx $xxx $xxx Key Processing Volumes (FYTD 2014) Analysis SRV 1 Dollars Items xxx $xxx xxx xxx $xxx xxx SRV 2 Dollars Items xxx $xxx xxx xxx $xxx xxx SRV 3 Dollars Items xxx $xxx xxx xxx $xxx xxx SRV 4 Dollars Items xxx $xxx xxx xxx $xxx xxx SRV 5 Dollars Items xxx $xxx xxx xxx $xxx xxx Observations • Serim xlkm mls f lkjsldkmm sk ddd sldkd • Lksdk lkdm • iweij Issues/Gaps/Risks • Serim xlkm mls f lkjsldkmm sk ddd sldkd • Lksdk lkdm • iweij Root Cause Analysis • Serim xlkm mls f lkjsldkmm sk ddd sldkd • Lksdk lkdm • iweij Improvement Initiatives • Serim xlkm mls f lkjsldkmm sk ddd sldkd • Lksdk lkdm • iweijGreen = Target Met, Yellow = Between Target and Warning, Red = Warning Exceeded. Null = No Data Available Target Warning Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Trend Service Availability- Service is available for use by a business User during agreed business hours. SERVICE 1 % availability of services >66 <33 99.61 82.77 97.49 90.30 82.21 20.72 SERVICE 2 % availability of services >66 <33 99.85 83.80 98.54 90.72 99.75 100.00 SERVICE 3 % availability of services >66 <33 99.48 96.83 99.61 90.72 100.00 100.00 SERVICE 4 % availability of services >66 <33 99.31 63.20 97.93 90.72 99.75 100.00 SERVICE 5 % availability of services >66 <33 99.19 78.40 97.96 90.72 99.74 22.73 Reliability - Number of Critical/High priority incidents reported SERVICE 1 # Crit/High Incidents closed per period <2 >5 2.00 6.00 5.00 4.00 5.00 2.00 SERVICE 2 # Crit/High Incidents closed per period <2 >5 1.00 4.00 3.00 3.00 1.00 - SERVICE 3 # Crit/High Incidents closed per period <2 >5 1.00 3.00 1.00 3.00 - - SERVICE 4 # Crit/High Incidents closed per period <2 >5 2.00 7.00 4.00 3.00 1.00 - SERVICE 5 # Crit/High Incidents closed per period <2 >5 3.00 4.00 3.00 3.00 1.00 1.00 SLA Breach- Number of outages during critical business service time windows SERVICE 1 # Customer SLA breaches per period <2 >5 - - - - - - SERVICE 2 # Customer SLA breaches per period <2 >5 - 2.00 2.00 1.00 1.00 - SERVICE 3 # Customer SLA breaches per period <2 >5 - 2.00 - 1.00 - - SERVICE 4 # Customer SLA breaches per period <2 >5 1.00 5.00 2.00 1.00 - - SERVICE 5 # Customer SLA breaches per period <2 >5 1.00 3.00 2.00 1.00 1.00 1.00
- 33. Story # 3 - GameOn GameOn Repatriates Service Desk to Reduce Waste (muda), Improve Service & reduce TCO 33
- 34. GameOn Outsources Service Desk GameOn is in the gaming / betting business. GameOn outsourced Service Desk to low cost service provider in effort to reduce operational costs.
- 35. GameOn IT Health Check Finds Growing Problems in Support Delivery Annual IT checkup finds a growing problem. Users dissatisfied with new service desk. Internal Tier II user support effort significantly higher.
- 36. Root Cause Indicates Dispatch vs. Resolve Model Analysis determines low 1st call resolution, most calls are dispatched to internal Tier II because of security clearance policy/constraints. This causes delay and increases support costs.
- 37. GameOn Insources Service Desk GameOn repatriates service desk using ITIL best practices. Subsequent IT control check verifies best decision.
- 38. Lean thinking helps GameOn provide more value less cost by reducing waste 1. Strategy & Tactics 2. Identify waste 3. Improvement 4. Control
- 39. How to Build Your Dream Team Support Operations Security Applications Sponsor Kaizen Lead In order to solve a problem using kaizen, we must accept that the problem is not solvable by an individual; that it is only with the power of a diversity of points of view that the problem will be adequately addressed.
- 40. How to Learn More: LITA Supports (4) Distinct Certifications
- 41. 41 Watch Webinar Recording Webinar Recording Lean Continual Service Improvement “Driving Change Enablement”
- 42. Questions?
- 43. Contact Us David Smith President Micromation Inc. david-smith-064a14 info@micromationinc.com www.micromationinc.com Deborah Burton Member Marketing Team Lean IT Association (LITA)
- 44. Experience Lean IT in Action We believe that “Lean Thinking” should be an integral part of every Enterprise IT organization and also every IT professional’s toolkit. Lean thinking is about understanding how to assess business processes, to identify and eliminate waste. Today, many IT professionals stakeholders from cross-functional areas -operational, tactical and strategic — have or are planning to get certified in Lean IT with the objective of reducing waste and improving efficiency. 44 Become a LITA Training Partner