A better method for it export - David Joyce

A Better Method
for IT

David Joyce
ThoughtWorks

1
Saturday, 25 September 2010

Systems Thinking
The means to obtain knowledge,
and act with prediction and
conﬁdence of improvement.

John Seddon - Freedom from Command & Control
2

ice NOT
Better pract
e
be st practic

No Sin gle Solution

Anything can be improved if
you know how to look.
Everything you need to know
is in your own system

W. Edwards Deming & Taiichi Ohno
4

Are we just building
the wro ng thing righter?

Rather than focusing on going Agile which
may lead to being successful, instead we
should focus on the needs of our customers.

How agile you are doesn’t matter. Whether you are 50% agile,
90% agile, or agile through and through doesn’t matter.
What matters, is that your company is satisfying its customers,
stakeholders, and employees.

Dr Russell Ackoff & Esther Derby
4

We need to bring considerably more We need to encourage a whole
to the table than just the technical “system” view rather than a
ability to transform user stories into locally optimised view
product in a more efﬁcient way

We often develop
solutions based on
sub optimised status quo

are
Softw
t
Projec
Projects often focus on the
needs of a single business unit

Eric Landes, David Anderson & Dr. Peter Middleton
5

Its not “The Business”,
?
Its “Our Business”

Jeff Patten & Mary Poppendieck 6

If we build technology around a
wasteful process, then we are
locking in that process for longer

Dr. Peter Middleton
7

A

B

8

A A

B B

8

Business Analysis - NO!

Custo mer An
alysis - Yes!

9

Typical Organisation Hierarchy Customer View

Customers
Senior Leaders
Workers

Line Mgt
Upper
Mgt Upper Mgt

Middle Middle Mgt
Mgt

Line Mgt

Workers
Senior Leaders

10

Senior Leaders

Marketing

Front Ofﬁce
Finance
Sales

IT
11

Senior Leaders

140
days
Marketing

Front Ofﬁce
Finance
Sales

IT
Hidden costs
11

Senior Leaders

180
I.T
. days
Marketing

Front Ofﬁce
Finance
.
I.T .
I.T
Sales

IT
. .
I.T I.T
. . .
I.T I.T I.T
. I.T
I .T. I.T
.

Hidden costs
11

Senior Leaders
Outside
in

Flow Flow Flow Flow 20
days
Marketing

Front Ofﬁce
Finance
Sales

IT
Hidden costs
12

Core Processes vs
Support Processes

Support

Core
Customer
Core

13

Since IT “ca n” sho uld it?

There is little merit in a well
executed project that no one
wants the output from

The Standish data are NOT a good indicator
of poor software development performance.
However, they ARE an indicator of systemic failure
of our planning and measurement processes

Dr. Peter Middleton & Tripp Babbitt & Jim Highsmith 14

“I recently asked a CIO whether he would prefer to deliver a
project somewhat late and over-budget, but rich with
business beneﬁts, or one that is on-time and under-budget
but of scant business value.
He thought it was a tough call, and then went for the
on-time scenario.
Delivering on-time and within budget is part of his IT
department’s performance metrics.
Chasing after the elusive business value, over which he
thought he had little control anyway, is not.”

If you give a manager a numerical target,
he’ll make it, even if he has to
destroy the company in the process

Cutter Sr. Consultant Helen Pukszta & W. Edwards Deming 15

The thing that makes technology
work is not the technology

Does this mean the end of IT?

There is a better way to approach the
use of technology.
Understand and improve, then ask if
technology can further improve

Dr. Peter Middleton & Tripp Babbitt 16

Larger gains can be achieved through better thinking
around the design and management of work

into the wo rk as nee de d
Then pu ll technology

John Seddon 17

Clarity of Purpose

John Seddon & Daniel Pink 18

Value vs Failure Deman d

Value Demand; what we want
from our customers and spend
time on

Failure Demand; demands we don’t want.
Failure to do something or do something
right for the customer

John Seddon 19

En d to En d Flow

We often ﬁnd hundreds of steps,
but very few will be valued by
the customer

People may argue over what the value steps are.
The rule is purpose deﬁnes the value work

Stuart Corrigan 20

En d to En d Flow

CUSTOMER
DEMAND

We often ﬁnd hundreds of steps,
but very few will be valued by
the customer

People may argue over what the value steps are.
The rule is purpose deﬁnes the value work

Stuart Corrigan 20

En d to En d Flow

Mapping is important, because it helps staff to
change their perspective on the work

Customers
Workers

Line Mgt

Upper Mgt

Middle Mgt

Senior Leaders
John Seddon 21

Syste m Con ditions

John Seddon 22

Pre dictability
Capability an d

People may argue over what we should or
shouldn’t do for our customers, but they
cannot argue over what we actually do

John Seddon 23

Pre dictability
Capability an d

Upper control limit

x x x x
x x x
x x x
Mean x x x
x x
x x x x
Lower control limit

Time

24

Pre dictability
Capability an d

25

Pre dictability
Capability an d on Cause vs
Co m m
S pecial Cause

100
x

x
x x x x x
50
x x x
x x x x
x x
x x x

0

26

Co mparison

Team 1

x Team 2
xx
x x x
x
x x x
x x
x
x x
x

Team 3

x x x
x x xx
Team 4

x x
x x
x
x
x

John Seddon 27

Impro ve Improve performance without
using technology

If the current work uses
technology, leave it in place, work
with it, or treat it as a constraint
Don’t do anything to change
the technology

Instead, change to a
Systems Design Plan the redesign

Setup a clean stream and
Roll changes in
John Seddon 28

When we focus on customer needs, and the organisation as
a system, many of the previous problems, that apparently
required software projects, may well have been ‘dissolved’

The improvement effort can be
targeted to where it has most beneﬁt

Dr. Peter Middleton 29

Can technology further impro ve
this process or system?

Now we can see potential
beneﬁts, from a position of
knowledge, about the work.

We can therefore predict The result is always less
the beneﬁts technology investment in technology, but
solutions will bring
much more value from it

IT is pulled into the work, rather
than dictating the way work
works

John Seddon 30

Measure improvement results

Use o perationa
l
perfor mance d
ata

Split dat
a
after a
chang e

31

A better m etho d for IT

System
Un de rstan d
Me asure

Pull Technology

Improve the work

32

Case Studies

33

Case Study

Study of query management

34

35
Walking the ﬂow
Certain data obscured for conﬁdentiality reasons

Total customer experience involves multiple silos and hand-offs between 3rd party call
centre and BBC Divisions


End to end vs SLAs
3rd Party reported following
against SLAs:

• 80% of queries resolved in
1 working day
• 100% in 5 working days
• Call answering SLA is 90%
of calls answered within 30
seconds
• Call abandoned rate is less
than 3%

Customer query end to end times in days – provides a
different perspective.
36

Analysing Demand

60% Failure Demand

37

BBC Customer Support System - IVR

Current IVR Query Routing vs Top 5 Query Reasons

IVR questions did not match customer demand

38

Reco m men dations

1. Total system visibility - map end to end experience,
identifying improvements
2. Call handling analysis - establish end to end times
and value/failure demand
3. Align IVR route options with customer needs
4.Supplement SLAs with end to end times and &
value/failure demand metrics
5. Website for customers to easily update their details

39

Case Study

Results

40

Case Study

IT is THE bottleneck

41

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Case Study

Results

43

Case Study

Measures

44

If you ﬁnd that despite lots of measures, you don’t really
know much about what matters to customers, then it can be a
powerful starting place for change

Clarity of purpose, and measures that
relate to purpose, are prerequisites to
learning and improvement

Measures should be in the
hands of those doing the work

John Seddon 30

How do you study purpose? Go out into the system and study
demand, what matters to your customer. Look at Value
Demand vs Failure Demand, go and talk to your customers!

Jeremy Cox 34

The worker has to be
responsible, and have the means
to control their own work

When people understand what is happening
where they work, they are able to contribute
more in improving the work.
This results in greater control and ﬂexibility

John Seddon 35

Case Study

Results

48

Case Study

Understanding Capability and
Increasing Capacity for New
Development

49

Value Demand Failure Demand Demand

50

Blockers hard to
remo ve

51

Mean reduced from 30 to 10 days (67%)
Large drop in the spread in variation.
# Days Blocked Recent outliers have proved to be special cause,
waiting for a 3rd party.

52 Data split from ﬁnancial year end


Case Study

Results

53

Case Study

IT Help Desk

54

Variation
reducing,
but average
# calls not
by much

Low # calls
is xmas period

55

Jun 08 - Sep 08 Oct 08 - Dec 08
UCL: 76 Mean: 16 Longest: 500 UCL: 66 Mean: 14 Longest: 360

Jan 09 - Mar 09
UCL: 63 Mean: 14 Longest: 300
56

57

Thinking -> System -> Performance

58

Case Study

Results

59

Beyond the BBC

Applying the Method

60

Deming: I ﬁnd few people in industry Ohno: The important thing with
know what constitutes a system improvement, is to think of new
work methods, not to make new
Drucker: There is nothing so tools or equipment
useless as doing efﬁciently, that
which should not be done at all

61

A better method for it export - David Joyce

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