Martin Burns - IBM: Evolving Lean in Enterprise Delivery

How IBM has evolved its Lean practises over the last couple of years towards light touch methods that better meet the needs and concerns of technology teams delivering to enterprise customers, and so increase 'Pull' for Lean methods and the benefits from their adoption.

Transcript

1. © 2012 IBM Corporation Evolving Lean in Matrixed Enterprise Delivery Martin Burns September 2012 Sunday, 18 November 12
2. © 2012 IBM Corporation 2 Introducing…  You may have heard of us  Globally, we employ nearly half a million smart people, working across software, high end systems and services.  Culturally, we’re driven by the true American NYSE mentality: satisfy shareholder & market expectations – growth, revenues, shareprice etc etc. We can argue about whether that’s A Good Thing or not, but as a shareholder, I’m pretty grateful about that.  It’s said that if one of the pillars of Lean is working towards a perfect flow of value, the other is to build a more Toyota-like culture. And I agree, that’s a great destination to have. But IBM != Toyota. And won’t be probably in my lifetime. So whenever we talk about benefits, ultimately they have to be tied back to $, which is also the conversation our customers drive us to. Sunday, 18 November 12
3. © 2012 IBM Corporation 2 Introducing…  You may have heard of us  Globally, we employ nearly half a million smart people, working across software, high end systems and services.  Culturally, we’re driven by the true American NYSE mentality: satisfy shareholder & market expectations – growth, revenues, shareprice etc etc. We can argue about whether that’s A Good Thing or not, but as a shareholder, I’m pretty grateful about that.  It’s said that if one of the pillars of Lean is working towards a perfect flow of value, the other is to build a more Toyota-like culture. And I agree, that’s a great destination to have. But IBM != Toyota. And won’t be probably in my lifetime. So whenever we talk about benefits, ultimately they have to be tied back to $, which is also the conversation our customers drive us to. Sunday, 18 November 12
4. © 2012 IBM Corporation 3 Application Management Services (AMS)  http://www.ibm.com/services/uk/gbs/applicationmanagement/ IBM Application Management Services transforms application development and maintenance through consulting and industry expertise paired with applied innovation from IBM Software and IBM Research to not only lower costs, but also increase time-to-value and service quality. http://www.ibm.com/services/uk/gbs/applicationmanagement/  Large organisation – several thousand people supporting UK customers, in UK, India and beyond  Many top tier customers; not allowed to name them, but think of a major brand->fair chance we’re working there. Infrastructure for many critical industries & govt  Culture: Hugely matrixed; a lot of dedicated account teams (cos that’s how customers want it), with a lot of control resting in account  Top down drive for commercial success, and culturally, in not screwing up. Big compliance mindset. And overall, very successful. Sunday, 18 November 12
5. © 2012 IBM Corporation 4 IBM Global Lean CoE Lean Six Sigma (00’s) Deming/ Juran (‘50s) (14 points, statistical quality) Ohno (’60/‘70s) (Toyota Production System) Motorola – Six Sigma (‘80s) GE (‘80s – ‘90s) Intensity of Change Kotter etc. Transformation & Leadership Six Sigma (applied method for growth and productivity) Customer Partnering (GE Toolkit, QMI, Customer CAP Change Acceleration Process – CAP (Change method and tools) Process Improvement (NPI, Supply Chain, Suppliers) Best Practices (benchmarking, across and outside of GE, ending NIH) Work-out (Kaizen type, cross functional teams, boundarylessness, values) Strategy No 1 or No 2 in each business. Fix, close or sell (Allied Signal) Just in Time (‘80s) Total Quality Management (’80s) (culture change/benchmarking, Baldridge/EFQM, ISO9000) Lean Manufacturing (‘90s) (Kanbans, Pull systems, Visual management) (“Machine that changed the world”, “Lean Thinking”, Value Stream Mapping) (SPC,Quality Circles, Kaizen) BPR (‘90s) (down-sizing, “to be“ processes, process owners)  Very long running – half a decade or so already, and plans a long way going forward.  Grew out of consulting practise, and views itself as very much part of a long history of quality/ improvement thinking particularly 6S;  Works across IBM, with both internal operations and customer facing teams  Track record of strong benefits – all $ linked of course – with some really low hanging fruit. Sunday, 18 November 12
6. © 2012 IBM Corporation 5 Lean Project Roadmap • This is the norm for our Lean Deployments – a big change • Really powerful for complex problems; I have a team I’m working with who have a really tough problem with account resourcing, which has a $1m + upside, which definitely passes the value for money test with this complex approach. Sunday, 18 November 12
7. © 2012 IBM Corporation 5 Lean Project Roadmap • This is the norm for our Lean Deployments – a big change • Really powerful for complex problems; I have a team I’m working with who have a really tough problem with account resourcing, which has a $1m + upside, which definitely passes the value for money test with this complex approach. Sunday, 18 November 12
8. © 2012 IBM Corporation 6 Account Exec Response  But when you propose this kind of approach to AMS Account Execs (key management tier for addressing each customer)… Sunday, 18 November 12
9. © 2012 IBM Corporation 6 Account Exec Response Our processes are evolved already  But when you propose this kind of approach to AMS Account Execs (key management tier for addressing each customer)… Sunday, 18 November 12
10. © 2012 IBM Corporation 6 Account Exec Response Our processes are evolved already Separate (and distracting) from ‘real work’ of client delivery  But when you propose this kind of approach to AMS Account Execs (key management tier for addressing each customer)… Sunday, 18 November 12
11. © 2012 IBM Corporation 6 Account Exec Response Our processes are evolved already Separate (and distracting) from ‘real work’ of client delivery Needs outside help from experts  But when you propose this kind of approach to AMS Account Execs (key management tier for addressing each customer)… Sunday, 18 November 12
12. © 2012 IBM Corporation 6 Account Exec Response Our processes are evolved already Separate (and distracting) from ‘real work’ of client delivery Needs outside help from experts Too much work  But when you propose this kind of approach to AMS Account Execs (key management tier for addressing each customer)… Sunday, 18 November 12
13. © 2012 IBM Corporation 6 Account Exec Response Our processes are evolved already Separate (and distracting) from ‘real work’ of client delivery Needs outside help from experts Too much work Too much cost  But when you propose this kind of approach to AMS Account Execs (key management tier for addressing each customer)… Sunday, 18 November 12
14. © 2012 IBM Corporation 6 Account Exec Response Our processes are evolved already Separate (and distracting) from ‘real work’ of client delivery Needs outside help from experts Too much work Too much cost We don’t have time  But when you propose this kind of approach to AMS Account Execs (key management tier for addressing each customer)… Sunday, 18 November 12
15. © 2012 IBM Corporation 7 So… Sunday, 18 November 12
16. © 2012 IBM Corporation 7 So… Go And See Sunday, 18 November 12
17. © 2012 IBM Corporation 7 So… Go And See Show Respect Sunday, 18 November 12
18. © 2012 IBM Corporation 7 So… Go And See Show Respect Ask Why… Sunday, 18 November 12
19. © 2012 IBM Corporation Where The Problems Live Adapted from: Jeff Liker: The Toyota Way Fieldbook & IBM Australia Research  In AMS, processes have evolved a lot already; the low hanging fruit really aren’t  We are ignoring (and teaching accounts to ignore) the many and small problems, which neglects much of the total potential benefit Sunday, 18 November 12
20. © 2012 IBM Corporation Where The Problems Live Adapted from: Jeff Liker: The Toyota Way Fieldbook & IBM Australia Research 0.14% of all problems Less in evolved environments such as AMS  In AMS, processes have evolved a lot already; the low hanging fruit really aren’t  We are ignoring (and teaching accounts to ignore) the many and small problems, which neglects much of the total potential benefit Sunday, 18 November 12
21. © 2012 IBM Corporation Where The Problems Live Adapted from: Jeff Liker: The Toyota Way Fieldbook & IBM Australia Research 0.14% of all problems Less in evolved environments such as AMS 8.95% of all problems  In AMS, processes have evolved a lot already; the low hanging fruit really aren’t  We are ignoring (and teaching accounts to ignore) the many and small problems, which neglects much of the total potential benefit Sunday, 18 November 12
22. © 2012 IBM Corporation Where The Problems Live Adapted from: Jeff Liker: The Toyota Way Fieldbook & IBM Australia Research 0.14% of all problems Less in evolved environments such as AMS 8.95% of all problems 90.91% of all problems  In AMS, processes have evolved a lot already; the low hanging fruit really aren’t  We are ignoring (and teaching accounts to ignore) the many and small problems, which neglects much of the total potential benefit Sunday, 18 November 12
23. © 2012 IBM Corporation 9 Result and Reflection Doesn’t address needs of evolved delivery team No Engagem ent/ Adoption No Improvement No Experience No Sustaining Culture Change Sunday, 18 November 12
24. © 2012 IBM Corporation 10 Reflection Epiphany Doesn’t address needs of evolved delivery team No Engagem ent/ Adoption No Improvement No Experience No Sustaining Culture Change Sunday, 18 November 12
25. © 2012 IBM Corporation 10 Reflection Epiphany Doesn’t address needs of evolved delivery team No Engagem ent/ Adoption No Improvement No Experience No Sustaining Culture Change Behaving as a short termist team, seeking large 1-off Projects that we control not a long term strategic team seeking to sustainably transform AMS to be able to deliver in a Lean way for customer benefit & growth Sunday, 18 November 12
26. © 2012 IBM Corporation 11 New Approach – Light Touch Lean Kanban Relieves Painpoint Feeds Problem Visibility A3 Pervasive Problemsolving Hoshin Kanri Strategic Direction  So rather than going for the big change (which satisfies some stakeholders, but faces rejection from the leadership of those on the ground), let’s have a new approach  Designed and always described as being light touch, low impact, easy to start, small commitment etc.  Starts from where each team find themselves  Different teams will start with different elements of this  Aim however is constant: Every day, a little better Sunday, 18 November 12
27. © 2012 IBM Corporation 11 New Approach – Light Touch Lean Kanban Relieves Painpoint Feeds Problem Visibility A3 Pervasive Problemsolving Hoshin Kanri Strategic Direction  So rather than going for the big change (which satisfies some stakeholders, but faces rejection from the leadership of those on the ground), let’s have a new approach  Designed and always described as being light touch, low impact, easy to start, small commitment etc.  Starts from where each team find themselves  Different teams will start with different elements of this  Aim however is constant: Every day, a little better Sunday, 18 November 12
28. © 2012 IBM Corporation 11 New Approach – Light Touch Lean Kanban Relieves Painpoint Feeds Problem Visibility A3 Pervasive Problemsolving Hoshin Kanri Strategic Direction  So rather than going for the big change (which satisfies some stakeholders, but faces rejection from the leadership of those on the ground), let’s have a new approach  Designed and always described as being light touch, low impact, easy to start, small commitment etc.  Starts from where each team find themselves  Different teams will start with different elements of this  Aim however is constant: Every day, a little better Sunday, 18 November 12
29. © 2012 IBM Corporation 12 Kanban: Visualise the Process; See the Problems  Knowledge Work has a fundamental problem: It's Invisible. Progress is reported after the fact Problems are Hidden Interventions are too late  This team were facing one of the biggest delivery excellence challenges UKI GBS has hit in the last 10 years.  You can’t tell this by looking! Sunday, 18 November 12
30. © 2012 IBM Corporation 12 Kanban: Visualise the Process; See the Problems  Knowledge Work has a fundamental problem: It's Invisible. Progress is reported after the fact Problems are Hidden Interventions are too late  This team were facing one of the biggest delivery excellence challenges UKI GBS has hit in the last 10 years.  You can’t tell this by looking! Sunday, 18 November 12
31. © 2012 IBM Corporation 12 Kanban: Visualise the Process; See the Problems  Knowledge Work has a fundamental problem: It's Invisible. Progress is reported after the fact Problems are Hidden Interventions are too late  This team were facing one of the biggest delivery excellence challenges UKI GBS has hit in the last 10 years.  You can’t tell this by looking! Sunday, 18 November 12
32. © 2012 IBM Corporation 12 Kanban: Visualise the Process; See the Problems  Knowledge Work has a fundamental problem: It's Invisible. Progress is reported after the fact Problems are Hidden Interventions are too late  This team were facing one of the biggest delivery excellence challenges UKI GBS has hit in the last 10 years.  You can’t tell this by looking! Sunday, 18 November 12
33. © 2012 IBM Corporation 12 Kanban: Visualise the Process; See the Problems  Knowledge Work has a fundamental problem: It's Invisible. Progress is reported after the fact Problems are Hidden Interventions are too late  This team were facing one of the biggest delivery excellence challenges UKI GBS has hit in the last 10 years.  You can’t tell this by looking! Sunday, 18 November 12
34. © 2012 IBM Corporation 12 Kanban: Visualise the Process; See the Problems  Knowledge Work has a fundamental problem: It's Invisible. Progress is reported after the fact Problems are Hidden Interventions are too late  This team were facing one of the biggest delivery excellence challenges UKI GBS has hit in the last 10 years.  You can’t tell this by looking! Sunday, 18 November 12
35. © 2012 IBM Corporation 13 Kanban… and Introduce a lot of Lean For Free 6 Core Kanban Practises 1. Visualise 2. Limit Work in Progress 3. Manage Flow 4. Explicit Process Policies 5. Implement Feedback 6. Improve Collaboratively; Evolve Experimentally Sunday, 18 November 12
36. © 2012 IBM Corporation 13 Kanban… and Introduce a lot of Lean For Free Customer Value Pull Principle Value Stream 1 Piece Flow Perfection 5 Lean Principles 6 Core Kanban Practises 1. Visualise 2. Limit Work in Progress 3. Manage Flow 4. Explicit Process Policies 5. Implement Feedback 6. Improve Collaboratively; Evolve Experimentally Sunday, 18 November 12
37. © 2012 IBM Corporation 14 …And Gain Empirically Provable Results Delivery turnaround and predictability improving Sunday, 18 November 12
38. © 2012 IBM Corporation 14 …And Gain Empirically Provable Results Delivery turnaround and predictability improving 0.0 12.5 25.0 37.5 50.0 1 2 3 4 5 6 7 9 10 12 13 15 18 19 20 23 24 25 26 29 30 31 36 37 39 40 Ticket Lead Time Time stabilising & outliers reducing Sunday, 18 November 12
39. © 2012 IBM Corporation 15 Countermeasure: A3 – Problemsolving for All Communicates the Problem Solves The Problem Develops the Problem Solver Sustainability Drives Improvement at All Scales as ‘Normal’ Melts Resistance Strategic Alignment A3 Sunday, 18 November 12
40. © 2012 IBM Corporation PDCA Thinking – the Heart of Lean Problemsolving ▪ What's the Problem? – What's the Current Condition? – What's the Target Condition? – What's stopping us getting there? (obstacles) Plan  Action Orientated  Template error-proofs Thinking Process Sunday, 18 November 12
41. © 2012 IBM Corporation PDCA Thinking – the Heart of Lean Problemsolving ▪ What's the Problem? – What's the Current Condition? – What's the Target Condition? – What's stopping us getting there? (obstacles) Plan Empirical Experimental Method  Action Orientated  Template error-proofs Thinking Process Sunday, 18 November 12
42. © 2012 IBM Corporation PDCA Thinking – the Heart of Lean Problemsolving ▪ What's the Problem? – What's the Current Condition? – What's the Target Condition? – What's stopping us getting there? (obstacles) Plan Do ▪ What are we doing to remove the obstacles? Empirical Experimental Method  Action Orientated  Template error-proofs Thinking Process Sunday, 18 November 12
43. © 2012 IBM Corporation PDCA Thinking – the Heart of Lean Problemsolving ▪ What's the Problem? – What's the Current Condition? – What's the Target Condition? – What's stopping us getting there? (obstacles) Plan Do Check ▪ What are we doing to remove the obstacles? ▪ Did it work? Empirical Experimental Method  Action Orientated  Template error-proofs Thinking Process Sunday, 18 November 12
44. © 2012 IBM Corporation PDCA Thinking – the Heart of Lean Problemsolving ▪ What's the Problem? – What's the Current Condition? – What's the Target Condition? – What's stopping us getting there? (obstacles) Plan Do Check Adjust/Act ▪ What are we doing to remove the obstacles? ▪ Did it work? ▪ If so, how do we work like that all the time? ▪ If not, what are we trying next? Empirical Experimental Method  Action Orientated  Template error-proofs Thinking Process Sunday, 18 November 12
45. © 2012 IBM Corporation Strategic Background Current Situation Analysis eg 5 Whys/Pareto Countermeasures Confirmation & Actual Benefits Standardise Action Plan Action Plan # Action Owner Due Date 1 2 3 How will we know the countermeasures work? How will we make the benefits widespread? Goal & Forecast Benefits Theme: What will address the root causes & achieve the goals? How will the countermeasures be implemented? What’s the real problem? Why is this important? Why did you pick this problem? What will success look like? Quantify What’s happening now? Quantify What are we trying to do? Owner Coach Date Sunday, 18 November 12
46. © 2012 IBM Corporation 18 A3 & Hoshin Kanri: Strategic Alignment & Solving the Right Problem D o A ct C heck Plan A3 Useful A3 Reading Ebook only: http://leanpub.com/ a3problemsolving Flinchbaugh Sobek & Smalley Rother  Complex A3s (eg increase customer satisfaction) can usually be broken down into smaller ones  These will align to a hierarchy of problems/goals for the team  Understanding this hierarchy of goals is the heart of Hoshin Kanri Sunday, 18 November 12
47. © 2012 IBM Corporation 18 A3 & Hoshin Kanri: Strategic Alignment & Solving the Right Problem D o A ct C heck Plan A3 A3 D o A ct C heck Plan Useful A3 Reading Ebook only: http://leanpub.com/ a3problemsolving Flinchbaugh Sobek & Smalley Rother  Complex A3s (eg increase customer satisfaction) can usually be broken down into smaller ones  These will align to a hierarchy of problems/goals for the team  Understanding this hierarchy of goals is the heart of Hoshin Kanri Sunday, 18 November 12
48. © 2012 IBM Corporation 18 A3 & Hoshin Kanri: Strategic Alignment & Solving the Right Problem D o A ct C heck Plan A3 A3 A3 D o A ct C heck Plan D o A ct C heck Plan Useful A3 Reading Ebook only: http://leanpub.com/ a3problemsolving Flinchbaugh Sobek & Smalley Rother  Complex A3s (eg increase customer satisfaction) can usually be broken down into smaller ones  These will align to a hierarchy of problems/goals for the team  Understanding this hierarchy of goals is the heart of Hoshin Kanri Sunday, 18 November 12
49. © 2012 IBM Corporation 19 Hoshin Kanri: Cascading high level vision to the Front Line Hoshin Kanri Plan Initiatives Objectives Senior Management Middle Management Initiatives Measures Hoshin Kanri Plan Goals Objectives Hoshin Kanri Plan Vision Goals Hoshin Kanri Plan Teams Individuals Monthly Quarterly Regular, structured feedback loops D A C P D A C P D A C P D A C P Hoshin Kanri aims to:  Deploy strategic goals down organizational layers, building traceability in throughout the cascade  Establish enterprise-wide alignment on objectives and measures  Break down silos between functions and business units, by aligning action plans to strategic objectives and measures  Clear line of sight from CEO to coalface  Linked to Metrics that Execs care about Sunday, 18 November 12
50. © 2012 IBM Corporation 20 Outcomes  Push  Real Sponsorship  Viral Hoshin Kanri Push Sunday, 18 November 12
51. © 2012 IBM Corporation 20 Outcomes  Teams starting to identify own improvements  Adoption of methods on own initiative  Push  Real Sponsorship  Viral Hoshin Kanri Push Pull Sunday, 18 November 12
52. © 2012 IBM Corporation 20 Outcomes  Teams starting to identify own improvements  Adoption of methods on own initiative  Push  Real Sponsorship  Viral Hoshin Kanri Push Pull  Faster Deliveries  Happier Customers  Lower Costs  $$$ Benefits Sunday, 18 November 12
53. © 2012 IBM Corporation 21 Takeaways Sunday, 18 November 12
54. © 2012 IBM Corporation 21 Takeaways Transformations Need Pull Sunday, 18 November 12
55. © 2012 IBM Corporation 21 Takeaways Transformations Need Pull Situational Awareness really, really matters Sunday, 18 November 12
56. © 2012 IBM Corporation 21 Takeaways Transformations Need Pull Situational Awareness really, really matters Go and See… Reflection Sunday, 18 November 12
57. © 2012 IBM Corporation 21 Takeaways Transformations Need Pull Situational Awareness really, really matters Go and See… Reflection Match Methods to Needs Sunday, 18 November 12
58. © 2012 IBM Corporation 21 Takeaways Transformations Need Pull Situational Awareness really, really matters Go and See… Reflection Match Methods to Needs Combination of 1. Kanban 2. A3 3. Hoshin Kanri Sunday, 18 November 12
59. © 2012 IBM Corporation 21 Takeaways Transformations Need Pull Situational Awareness really, really matters Go and See… Reflection Match Methods to Needs Combination of 1. Kanban 2. A3 3. Hoshin Kanri work together very powerfully in wide range of situations… Sunday, 18 November 12
60. © 2012 IBM Corporation 21 Takeaways Transformations Need Pull Situational Awareness really, really matters Go and See… Reflection Match Methods to Needs Combination of 1. Kanban 2. A3 3. Hoshin Kanri work together very powerfully in wide range of situations… but how you implement them… Sunday, 18 November 12
61. © 2012 IBM Corporation 21 Takeaways Transformations Need Pull Situational Awareness really, really matters Go and See… Reflection Match Methods to Needs Combination of 1. Kanban 2. A3 3. Hoshin Kanri work together very powerfully in wide range of situations… but how you implement them… Sunday, 18 November 12
62. © 2012 IBM Corporation 22 Questions..? Martin Burns @martinburnsuk http://writing.easyweb.co.uk/ Sunday, 18 November 12