IT Service Management And Lean Fundamentals

1. IT Service Management • And • Lean Fundamentals

2. Rate of Change Assumption: The rate of change will accelerate Deficit Reduction Action Plan Blueprint 2020 Departmental Re-alignment Responsible Expenditure Management “Do More with Less” “Take Less and Do even Greater Things” Reduction in Agency Spending Modernizing IT - SSC Modernizing and Reducing the Back Office Aging Workforce 2

3. A Time for Change An extract from the 20th Annual Report2 to the Prime Minister from Public Service Canada: “Although we face continuous change in our organizations, our important responsibilities and mandates remain. In today’s competitive world, a strong and high performing Public Service is critical to Canada’s success. We must be able to deliver the best advice to Ministers and implement our mandates with excellence. To succeed, a leaner public service must be one that is continuously performing at peak productivity. Managers should expect excellence from all employees.” Note 2: Clerk of the Privy Council and Secretary to the Cabinet, for the year ending March 31, 2013

4. ITSM Challenges Assumption: The rate of change will accelerate Proliferation Of Computing Mobile Devices Speed of Change – Agility Higher Availability What is ITSM’s Value-Add ? ITSM Top Challenges Reduction in Agency Spending Cloud Solutions Outsourcing Versus Insourcing 4

5. ITSM from GoC perspective External Clients Citizens/ Corporations GoC – Internal Clients Program Areas (Business) Provinces/ Municipalities Program Area C Program Area B Program Area A Other Agencies ITSM Internal Services Finance, HR, Legal, IM and IM/IT ITSM ITSM Shared Services Canada

6. A Key Question for CIO’s “How can I increase the business value of our ITSM investment?”

7. A Journey to Lean

8. What is Lean? • A business strategy which enables organizations to work more efficiently to meet today’s challenging times of doing more with less • A series of principles, concepts, tools and techniques focused on the elimination of Non-Value Add activity referred to as “Waste Conditions” in any process1 • Seeks to correct inefficiencies in processes, enhancing an organization’s capability to deliver on its mission • An employee-empowering continuous improvement framework • A different way of thinking Note1: James Womack, Daniel Jones, and Daniel Roos - 1990 book The Machine that Changed the World to describe the manufacturing paradigm (often referred to as the Toyota Production System).

9. Lean is not … • Lean does not displace ITSM models and process frameworks, “it enhances them” • Lean is not just another quality or improvement “program of the month”

10. Benefits of Lean • Lean can dramatically improve the performance and effectiveness of ITSM processes in FederalPublic Sector processes in a relatively short timeframe. • Benefits: • Eliminate or dramatically reduce backlogs • Significantly reduce lead times • Improve the quality and consistency of work products, services and activities • Allocate more staff time to “mission critical” work • Reduce process complexity • Enhance process transparency to internal and external audiences

11. Where is Lean Deployed? • Worldwide Government Agencies are embracing Lean • Government of Canada • Canadian Provincial Governments • Government of USA • USA State Governments • International Government Agencies

12. Worldwide Government Agencies • Worldwide federal government agencies are achieving rapid results using Lean • The level of deployment of Lean within an organization is directly correlated to the recognition of the “Burning Platform” by leadership and management levels • Levels of Transformation3 • Note 3: Levels of Transformation - Shingo Prize – Operational excellence

13. Public Sector

14. The 5 Lean Principles

15. Understand Value from the Client Perspective Lean Principle #1 Lean considers Value as what matters to the Client Lean Concepts: • To maintain the Client Value perspective throughout the end to end journey until the product/service is delivered • ITSM focuses on the customer’s perspective while aligning information technology (IT) services delivery to the needs of the organization

16. Understand Valuefrom the Client Perspective Lean Principle #1 - • Focusing on the value from the Client perspective creates an opportunity for integrated-process thinking • From the Client perspective, 60% to 80% of the process activities are considered to be Non-Value Add or Waste 1 This diagram could reflect most existing processes

17. Lean Principle #2 A Value Stream represents all the activities required to bring a product or service to a Client Lean Concept: • A Value Stream is composed of two (2) types of activities: • Value Add • Non-Value Add • Understand the Value Stream • ITSM is the delivery of end-to-end services • ITSM assessments and audits are used in determining the current state of ITSM within an organization and defining its desired future state

18. Value Stream - Value Add A Value Add activity is defined by the following criteria: • Value Add • Recognized by the Client as adding value • Directly contributes to the creation and delivery of the product or service • Is done right the first time • Policy Value Add • Compliancy to GoC legislative/policy framework • Compliancy to departmental or agency policies 2

19. Value Stream – Non-Value Add • Activities that Must Be Done • Activities that must still be done because of limitations with current technologies and assets • Maintenance activities • Waste • Consumption of resources without adding value - “Muda” • Unevenness in the operations - “Mura” • Overburdening of resources - “Muri” A Non-Value Add activity can be classified into two (2) categories: 2

20. Value Stream - Non-Value Add How much process waste is generated by ITSM frameworks?

21. Waste (Muda) Conditions There are eight (8) Waste (Muda) conditions: • Understand the Value Stream

22. Muda - Waste Types & Conditions

23. Waste - Mura • Irregular, inconsistent, uneven, and unbalanced workloads associated with a resource (people, process or technology) Unevenness in a process where the source of variation is not caused by the Client • Understand the Value Stream

24. Waste - Muri • Placing excessive demand on equipment, facilities, and people caused by Mura and Muda • Muri is pushing a machine or person beyond natural limits • Overburdening people results in health, safety and quality problems Overburdening of resources • Understand the Value Stream

25. Lean Principle #3 • Flow is the sequencing of the Value Add activities while always keeping the Client Value at the forefront of each step Lean Concept: • To achieve a smooth and leveled process • ITSM is process-focused and aligns to process improvement frameworks and methodologies • ITSM provides a framework to structure IT activities and interactions with customers/users • Create Flow

26. Lean Metrics and Types Leadership/ Management Engagement Deployment & Employee Satisfaction

27. Lean Principle #4 • Upstream process activities only occur when real demand exists at the downstream operation • Enables Just-In-Time delivery of products and services Lean Concept: • The combination of Flow and Pull with support from Visual Indicators such as a “Kanban” results in aneffective and efficient process • Migrate to Pull • ITSM promotes best practice process models • ITSM Tools Universe highlights available ITSM technology for management of IT Services

28. Lean Principle #5 • Lean Thinking becomes part of your day-to-day approach Lean Concept: • The selection and applicability of the different Lean tools depends on process complexity, desired outcome and metric(s) • Pursue Perfection through Continuous Improvement • Service Management needs to be seen as a practice, not a project • Service management takes practice, commitment and focus

29. Lean / ITSM Outcomes • The “value” is defined by the Client • Increases visibility into the complete journey of the product or service and ITSM enabling role • Develops a culture of continuous improvement • Creates new ways of working • Improves quality, cost effectiveness, IT service delivery and responsiveness to the Client

30. Understand Value from the Client Perspective The 5 Lean Principles and ITSM • ITSM focuses on the customer’s perspective while aligning information technology (IT) services delivery to the needs of the organization • Pursue Perfection through Continuous Improvement • Understand the Value Stream • ITSM is the delivery of end-to-end services • ITSM assessments and audits are used in determining the current state of ITSM within an organization and defining its desired future state • ITSM is process-focused and aligns to process improvement frameworks and methodologies • ITSM provides a framework to structure IT activities and interactions with customers/users • Migrate to Pull • Create Flow • ITSM promotes best practice process models • ITSM Tools Universe highlights available ITSM technology for management of IT Services • Service Management needs to be seen as a practice, not a project • Service management takes practice, commitment and focus

31. Lean Principles & Tools/Techniques Spaghetti Diagram Value Stream Mapping Waste Identification Fishbone Diagram Gemba Kanban Genchi Genbutsu Pull 5 Whys PDCA Cycle Lean Action-out Report Pay-off Matrix SMART Objectives Andon A3 Report Kaizen Event Lean Metrics Poka-Yoke

32. Famous Quotes If we are in a constant and accelerated state of change then maybe… “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.” Darwin If we need to adapt then maybe… “We can’t keep doing things the same way and expect different results.” Einstein If we need to change then maybe… “We can't solve today’s problems by using the same kind of thinking we used when we created them.” Einstein

33. Q & A

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