Mike Orzen's presentation at the 1st European Lean IT Summit held in Paris in October 2011.

1. Copyright © Institut Lean France 2011
Lean IT From Theory to Application
Moving beyond the what to the how!
Mike Orzen
Lean Enterprise Institute
The Shingo Prize
www.maorzen.com

2. Copyright © Institut Lean France 2011
Level Set
Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 2

3. Copyright © Institut Lean France 2011
Paradigms
3

4. Copyright © Institut Lean France 2011
Where is Value in IT?
Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 4

5. Copyright © Institut Lean France 2011
The IT Myth
• IT enables people to solve problems and
create value
Information is primary
Functionality is secondary
Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 5

6. Copyright © Institut Lean France 2011
The “Weave”
Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 6

7. IT Services Value Streams
Governance, Budget
Enterprise Architecture
Prioritization, Delivery
PMO and Resource Mgt.
Portfolio Mgt.
Infrastructure Engineering
App Dev/Maintenance,
Operations
Help Desk & Support
Application Delivery Value Stream
Service Desk Value Stream
Security, Stability Value Stream
Client Services Value Stream
© Copyright 2011 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved. 7

8. IT Services Value Streams
Governance, Budget
Enterprise Architecture
Prioritization, Delivery
PMO and Resource Mgt.
Portfolio Mgt.
Infrastructure Engineering
App Dev/Maintenance,
Operations
Help Desk & Support
Application Delivery Value Stream
Service Desk Value Stream
Security, Stability Value Stream
Client Services Value Stream
© Copyright 2011 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved. 8

9. IT Services Value Streams
Governance, Budget
Enterprise Architecture
Prioritization, Delivery
PMO and Resource Mgt.
Portfolio Mgt.
Infrastructure Engineering
App Dev/Maintenance,
Operations
Help Desk & Support
Application Delivery Value Stream
Service Desk Value Stream
Security, Stability Value Stream
Client Services Value Stream
© Copyright 2011 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved. 9

10. Copyright © Institut Lean France 2011
About the “Weave”
• The good: expertise and
execution/collaboration and
communication
• The bad: silo based thinking, local
optimization, conflicting priorities
• The ugly: unnecessary complexity and
tech debt
Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 10

11. Copyright © Institut Lean France 2011
IT vs. Lean - Behaviors
• Firefighting to methodical cadence of work
Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 11

12. Copyright © Institut Lean France 2011
4 Steps
1 Understand the real work
2 Streamline communication
3 Simplify the process
4 Adopt hypothesis-driven problem solving
Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 12

13. Copyright © Institut Lean France 2011
Projects
Business
Problems
Barriers &
Opportunities
Counter
Measures &
Solutions
Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 13

14. Copyright © Institut Lean France 2011
Working Sequence
Process • Quality,
Speed,
Improvement Cost
Information • Accurate, Timely,
Actionable, Formatted,
Requirements Accessible
• Stable,
System
Trusted,
Requirements Secure
Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 14

15. Copyright © Institut Lean France 2011
An Example
• “Know the business better than the
business”
• 4 DNA elements applied to information
Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 15

16. Copyright © Institut Lean France 2011
Processing “Client” Records
1. Specifications document all work
processes and include content,
sequence, timing and outcome.
VSM
Volume, quality and timing measures
Focused process mapping
Problem solving
Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 16

17. Copyright © Institut Lean France 2011
Processing “Client” Records
Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 17

18. Copyright © Institut Lean France 2011
Processing “Client” Records
2. Connections with clear YES/NO signals
directly link every customer and
supplier.
Collaborate all the players
Coordinate information systems
Establish clear signals and business rules
Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 18

19. Copyright © Institut Lean France 2011
Processing “Client” Records
Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 19

20. Copyright © Institut Lean France 2011
Processing “Client” Records
3. Every product and service travels a
single, simple and direct flow path.
Clearly define the target value stream
Keep it simple and direct
Coordinate information systems
Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 20

21. Copyright © Institut Lean France 2011
Processing “Client” Records
Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 21

22. Copyright © Institut Lean France 2011
Processing “Client” Records
4. Workers at the lowest feasible level,
guided by a coach, improve their own
work processes using scientific
methods.
Keeps the people closest to the work engaged
in CPI
Keeps work instructions from becoming
“invisible”
Works as a disinfectant to reactive firefighting
behavior
Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 22

23. Copyright © Institut Lean France 2011
Processing “Client” Records
Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 23

24. Copyright © Institut Lean France 2011
Why is Lean IT So Difficult?
Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 24

25. Copyright © Institut Lean France 2011
The Trouble with CPI and IT
• Conflicting forces
• Event-driven thinking
• Culture of heroic effort
• Leading with technology to solve a process
problem (missing the point)
Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 25

26. Copyright © Institut Lean France 2011
Examples of Applied Lean IT
• Server Deployment
• App and H/W Maintenance
• Dev/Ops Coordination
• Break/Fix Process
• Offshore Coordination
• Coverage Process
• Help Desk
• Prioritization
Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 26

27. Copyright © Institut Lean France 2011
Questions & Comments
Mike Orzen
Lean Enterprise Institute
The Shingo Prize
www.maorzen.com
Twitter: MikeOrzenLeanIT
Lean IT - From Theory to Application, Mike Orzen www.maorzen.com 27

28. Copyright © Institut Lean France 2011
www.lean-it-summit.com