Lean Continual Service Improvement – Driving Change Enablement

Lean Continual Service Improvement “Driving Change Enablement”

LITAExecutive WebinarApril 12, 2016

WELCOME!

Host and Presenter

Deborah BurtonMember Marketing TeamLean IT Association (LITA)

Channel Marketing ManagerITpreneurs

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.

Today's Guest Presenter

David SmithPresidentMicromation Inc.We help our customers increase the value they provide to their Customers.

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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

Perfection

Story # 1 – Gov OpsBetter IT Customer Service by Reducing Muda (waste) to Improve Incident Flow.

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

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.

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

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.

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.

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.

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.

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.

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The Results

These steps were repeated on 26 more critical services over an 18 month period.

All measured services were dramatically improved and verified.

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

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: incidentTools: 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

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?

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.

IM Workflows by Tier

Register Diagnose Repair Restore

Tier 0

(Service Desk)

Tier 1

(Situation Mgr)

Tier 2

(Internal SME)

Tier 3

(Vendor SME)

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As- IsTo - Be

Story # 2 – Big BankIT Prevents Loss of Major Business Customers by Reducing Mura (variance) to Improve Customer Services.

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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

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.

Lean Thinking Helps Big Bank Find - Eliminate Weakest Links

2. Value Stream

3. Information Flow 4. Measure

1. Strategy & Tactics

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 RetentionService provider

Process: incident notifications

Technologies: infrastructure/ app. Services

Retention

Performance measurement

Technology stability

Communications

FMEA, Initiatives

Dashboard, Scorecards

Notification System

StabilityAvailabilityOutages

Fines/ Penalties

E2E Service Stability (variance)

Service Model Value Stream

FMEA Used to Isolate (Root - Cause) weak Links that need Remediation

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Streamlined Information Flow

Big Bank Services Performance Dashboard

Big Bank

Key Performance Metrics by Service

Loss PerformanceLoss 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 1Dollars Items

xxx $xxx xxx

xxx $xxx xxx

SRV 2Dollars Items

xxx $xxx xxx

xxx $xxx xxx

SRV 3Dollars Items

xxx $xxx xxx

xxx $xxx xxx

SRV 4Dollars Items

xxx $xxx xxx

xxx $xxx xxx

SRV 5Dollars 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


Root Cause Analysis• Serim xlkm mls f lkjsldkmm sk ddd


Improvement Initiatives• Serim xlkm mls f lkjsldkmm sk ddd


Green = 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 TrendService 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





Reliability - Number of Critical/High priority incidents reportedSERVICE 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 windowsSERVICE 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

Story # 3 - GameOnGameOn Repatriates Service Desk to Reduce Waste (muda), Improve Service & reduce TCO

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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.

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.

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.

GameOn Insources Service Desk

GameOn repatriates service desk using ITIL best practices. Subsequent IT control check verifies best decision.

Lean thinking helps GameOn provide more value less cost by reducing waste

1. Strategy & Tactics 2. Identify waste

3. Improvement 4. Control

How to Build Your Dream Team

Support

Operations

Security

Applications

SponsorKaizenLead

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.

How to Learn More: LITA Supports (4) Distinct Certifications

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Watch Webinar Recording

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Questions?

Contact Us

David SmithPresidentMicromation Inc.

david-smith-064a14

[email protected]

www.micromationinc.com

Deborah BurtonMember Marketing TeamLean IT Association (LITA)

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.

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