Stephen Parry's presentation at the 1st European Lean IT Summit held in Paris, France in October 2011

1. Copyright © Institut Lean France 2011
Lean IT Strategy, Organisational Design and Transition
Stephen Parry
CEO See Business Differently
Author of Sense and Respond:
The journey to customer purpose.
Faculty Member of the Lean Enterprise Academy
Twitter: LeanVoices
Blog : www.LeanVoices.com
Stephen.parry@seebusinessdifferently.com
www.seebusinessdifferently.com
Christiane Fischer Simone Engelhardt
Opérationnel Lean Transformation Manager Vice Président SAP IT Infrastructure Services Opérationnel Change and
and Lean IT Consultant Delivery Excellence

2. Lean Myth Busters:
1) You won’t find Lean in the tools and methods.
2) It’s not about optimising waste is about optimising value.
3) It’s not about managers fixing everything it’s about the staff owning and solving problems.
4) It’s not only about processes it’s about the whole service model.
5) It’s not about efficiency at all costs it’s about effectiveness at the right cost.
6) This incorporates development and innovation.

3. Sense and Respond Lean Approach
SENSE what matters DRIVE the service and the strategy
to customers
Drive support services
Capture Demand Data
Build relationship
Build relationship
1. 2. 3.
People People People
Your clients and their Your front-line Your support
customers operation organisation
Purpose Flow
Adapt – Evolve – Inform – Innovate
RESPOND

4. The customer/service user challenge:
They don’t have time………….they say things like:
Solve my problem, completely.
Don't waste my time or cause me hassle.
Minimise the cost of doing business with you.
Provide exactly what I need and deliver value where I need it.
Reduce the number of decisions I must make to resolve my problems.
Don’t get me to help you; I want you to help me!
Adapted from Lean Solutions: Jim Womack and Dan Jones by Stephen Parry

5. Question:
What would ICT organisations do if they
had to pay for all the operational and
service user time they wasted?

6. Traditional approach: Feasible parts creating an infeasible whole.
Functional units
F1 F2 F3 F4 Fn
Independent It’s not unusual
S1 S2 S3 S4 Sn
Solutions to have thirty
Designed to or more
Meet functional solutions lining
Targets and up for attention
Goals.
Throughput process

7. Traditional approach: Feasible parts creating an infeasible whole.
Functional units
F1 F2 F3 F4 Fn
Independent It’s not unusual
S1 S2 S3 S4 Sn
Solutions to have thirty
Designed to or more
Meet functional solutions lining
Targets and up for attention
Goals.
Improved Customer Experience ?

8. The Operating
Level Four
System
The Organising
Level Three System
Level Two The Process
Level One The Output
Adapted from Fourth Generation Management Brian Joiner

9. What type of experience do you create for
customers, employees and managers?
Company pushes products and services ON-COMMAND
Customers and employees are designed out
Mass Production (Make and Sell)
Transactional Incentivised Functional Direct
and processed contribution efficiency and control
Customer experience Employee motivation Support operations Executive leadership
Relational Willing End-to-end Listen
and personal contribution effectiveness and adapt
Lean Enterprise (Sense and Respond)
pulls products and services ON-DEMAND
Customer
Customers and employees are designed in

10. Aligning service provision to customer needs
doing business with you.
• Don't waste my time or
you, I want you to help
• Reduce the number of
• Provide exactly what I
need, where I need it,
problem,completely.
• Minimise the cost of
• Don’t get me to help
decisions I have to
cause me hassle.
when I need it.
• Solve my
make.
me!
Customer Lifecycle
Specify value from the Make value-creating steps occur in a
standpoint of the end customer. Delivery Process tight and integrated sequence so the
product/service will flow smoothly
Identify all the steps in toward the customer
the value stream, eliminating
every step and every action Let customers pull value
and every practice that from the next upstream activity.
does not create value
Pursue Perfection. These steps lead
to greater transparency, enabling
© 2009 See Business Differently Ltd
teams to eliminate further waste

11. Don’t align IT service provision to the transactional needs of the service
user rather to the real world customer outcomes
Enable external Customers Business Process Business
Outcomes
CORE PROFILE
Personal User
Infrastructure
Enable Client Service User Business Processes
Outcomes
Specify value from the Make value-creating steps occur in a
tight and integrated sequence so the
Delivery Process
standpoint of the end customer.
product/service will flow smoothly
Identify all the steps in toward the customer
the value stream eliminating
every step and every action Let customers pull value
and every practice that from the next upstream activity.
does not create value
Pursue Perfection. These steps lead
to greater transparency, enabling
Corporate teams to eliminate further waste Utility
Infrastructure Outcomes
Stable, adaptive infrastructure and applications

12. CORE Profile: Value definitions
Is defined by ‘Customer Purpose’. Deliver value
effectively to customers and efficiently to the
organisation.
CREATE
(Optimise)
Creates the possibility for developing new services that
OPPORTUNITY will satisfy customers or increase production and
(Innovate) revenue.
REMEDIAL Occurs when the organisation delivers unfit products or
(Restore and Remove) services. Production is lost, the customer is unhappy,
resulting in loss of money, time, and reputation.
EXTERNAL
(Restore and Re-think)
Originates externally and is usually waste or demand
that is created by other organisations, agencies or
institutions.

13. Move
Installation
Equipment CREATE VALUE BIN
Provide
Nothing in here because no one was looking
Quote OPPORTUNITY TO CREATE VALUE BIN
Slow
Repeat Network
Progress Fault
Application
Problem
RESTORE LOST VALUE BIN
Chase Engineer
Not arrived
Escalation Computer
is not working
3rd Party
Can’t Supply
EXTERNAL LOST VALUE BIN
Customer Purpose Defines Value,
What was once seen as Value is now seen as WASTE
all in addition to the 40% rework.
There is no value in fixing symptoms. Fix the Road not the Tyres.
Customer Purpose = Business Outcomes .
Moving from the cost of Failure to the Return on Value

14. Fixing the wrong problem

15. Operational VALUE STREAM MAP for each Demand Type
End-to-end Response capability and cost (efficiency)
Customer experience at touch points
VALUE and PURPOSE
linked to the customer
(effectiveness)
15
BUSINESS INTELLIGENCE

16. Creation
Opportunity
Restoration
External
0% 20% 40% 60% 80%
Restoration
Restoration
Restoration
Creation
Creation 16

17. CORE Profile: ICT support operations
Before changing the service.
Create 8%
Opportunity 2%
Remedial 80%
External 10%
Source Fujitsu Case Study: Sense and Respond Book Used with kind permission

18. CORE Profile: ICT support operations
after changing the service.
Create 50%
Opportunity 12%
Remedial 33%
External 5%
Source Fujitsu Case Study: Sense and Respond Book Used with kind permission

19. CORE Profile for Global IT end User support (November 2009)
19

20. Customer and People Measures:
Flow
You’ll not find many measures
in this zone.
End to End
‘If you measure your
service using averages,
you will deliver an
average service.’
Functional
Value
No Matters to Customers Yes
Purpose
©Copyright Stephen Parry 2010. All rights reserved.

22. The way we think
Design Principles
H.R Standards
R&R Process
Field
Bonus. Management
Technologies
ICT Infrastructure Change
Fleet
Management
Management
ICT Service
Staff
Logistics Escalation
Stores Problem
CORE Management
Profile
Customer
Safety Resource
Services Management
Building Knowledge
Services Management
Commercial Finance
Trading Budgets
Diagnosing
Measurement Service Mgnt
the ‘System’ from
The Customer to the
Design of the Organisation
and the way we think.

23. Six Steps to a new service and a new operating model.
Customer
Purpose Profile People Process Performance
Generates service user demands
Help Desk
Service User Business Process
End-to-end
Contact Centre
RESPOND Performance
Service Centre
Customer Value Stream
C Measurement
Call Centre
SENSE End-to-End Customer
Enterprise
O Mgnt. Processes Impact
CORE
IT Operating
R Customer Technicians
Infrastructure Cost
Demand Component
Profile Control
(Internal and Revenue
E Integration
External
Suppliers) Revenue
Service Mgnt
Potential
Map Identify Codify and Design Map Value Map Cost
Customer User/Customer quantify and Implement Stream and
Lifecycle Needs Customer/user New Service Link to Customer Performance
Needs Model To the business
Customers
Business Optimised ‘On-Demand flow of Value’ Incident-Free-Zone. Customer Value Enterprise®
Purpose
Customer Value Enterprise® is a registered trademark for See Business Differently

25. Search for Common Purpose
Business Purpose Common Purpose
‘We all work for the same We provide expertise
company but we live in and services to enable With pride we relentlessly
different worlds’ us to produce, sell and pursue and apply our
support software by insight, ingenuity and
creating and running technologies to create
Thomas Queisser wealth and a secure
Sense and Respond Leader robust, effective and
efficient IT-Solutions. future.
To contribute with my
Purpose skills and to be fairly Strengthen my value
rewarded in a secure chain in a way that
Value and trusted differentiates me from
environment that competitors and
offers challenges and provides a return on
Action allows me to develop my investment.
and grow.
Employee Purpose Customer Purpose

26. Running A3’s
S&R Phase III – A3 Overview in this Phase
Phase 1 (Prototype), Phase 2 (Mobilization), Phase 3 (Standardization)
Proto- Mobili- Standard- Subject Matter Senior Business
Existing and New A3‘s ... A3 Owner A3 Support Team
type zation ization Expert Coach
Future State Operating Techical Dietmar Reinelt/
Frank-Martin Haar Sushil Dabare Zhang Shurong
Model & Operating Strategy Advisory Panel Steffen Hempel
Dietmar Weishaupt
Routemap Planning Ron Iannacone Andreas Heinz Amit Gupta Alexander Göppert Lakshmi K.K.
Frank-Martin Haar
Christian
Communication & Andreas Heinz Uli Kochendoerfer Ali Guereke Rapberger/
Broadcast Beng Hang Tay
Service Tool Jacqueline Frank-Martin Haar
Vinay Chadha Maureen Tonetta Lakshmi K.K.
Implementation Yildirim James Armstrong
Simone
Program Management Steffen Hofstetter Nico Neuhold
Engelhardt
Management Center Christiane Fischer
Sanjiv Nashte Shajan K.J. Chad Troisi Thomas Peters
Implementation (Pilot) Sushil Dabare
Thomas Queisser
Jawahar A.
Dagmar Simone
Business Improvement Vineeta Bhardwaj
Holger Neiheiser Oeldemann Pallavi Bhanot
Systems George Oommen Engelhardt

27. Running A3’s
S&R Phase III – A3 Overview in this Phase
Phase 1 (Prototype), Phase 2 (Mobilization), Phase 3 (Standardization)
Proto- Mobili- Standard- Subject Matter Senior Business
Existing and New A3‘s ... A3 Owner A3 Support Team
type zation ization Expert Coach
Infrastructure Tim Frömbsdorff Technical
Tobias Schühle Atil Gaikwad Dietmar Reinelt
Management Alex Göppert Advisory Panel
Technical Design Siegfried Kübel
Christian Roth Tbd Greg Pearse
Authority Uwe Rötschke
Chad Troisi &
Global Service
Service Management Armin Storek Ron Iannacone All REMs / BEMs Greg Pearse
Management
Team
Maureen Tonetta
Service Performance Andreas da Tim Oppermann
Marco Ries Michael Scanlan Greg Pearse
Review Process Trindade Chad Howard
Murat Karakullukcu
Service Improvement Tim Oppermann Bernadette
Chad Troisi Chad Howard
(Get Well Plan) Tim Frömbsdorff Koller
Business Process
Ron Iannacone Armin Storek Joshua Jacquette Greg Pearse
Definition
Tim Oppermann
Service Management & Armin Storek Ron Iannacone Chad Howard Joachim Bolz Greg Pearse
Customer Engagement Chad Troisi
Customer Access Rules Sushil Dabare Amit Gupta Christiane Fischer Lakshmi K.K.
Dagmar Simone
Process Governance Kathy Balsley Pallavi Bhanot
Oeldemann Engelhardt

28. Running A3’s
S&R Phase III – A3 Overview in this Phase
Phase 1 (Prototype), Phase 2 (Mobilization), Phase 3 (Standardization)
Proto- Mobili- Standard- Subject Matter Senior Business
A3 Owner A3 Support Team
type zation ization Expert Coach
Key User Group &
- - - - -
Customer Lifecycle
Process Management
- - - - -
Implementation
Management Center - - - -
-
Design Options
Data & New Measurement - - - - -

29. From first to last: Respect for people
Quotes from Stephen Parry Seminar.
We believe people are capable of learning and taking on additional
responsibility, and if you create the right environment, people will want to
learn and will actively seek more responsibility.
In this context ‘respect for people’, means Managers helping employees
understanding that all people have the ability to freely choose how they solve
learn and the right to be given opportunities to problems displays total
learn. respect.
There is a world of difference
between helping people to see
and telling them they are blind.
Most of all we must trust that
people are capable of owning and
solving their own problems with a
little bit of help.

30. Sense and Respond: Strategy White Papers and Pod Casts
The Journey to Customer New Principles and a New Vision for Services
Purpose A Demanding World
Measuring for Value. Transformation Pitfalls and Lessons
Susan Barlow, Stephen Parry and
Mike Faulkner.
Research papers
Service Climate Management
Cranfield/Fujitsu Managing For Value
Articles
Turning Customer Service upside down
Service Climate Management
Customer: Lost in translation
Seven Deadly Sins of Transformation
TV and Radio
BBC Documentary ‘The Crunch’
Channel 4/Einstein CIPD. Sense and Respond
BBC Radio 4 In Business The Heartbeat Economy
BBC Radio 4 In Business Lean and Mean and at your Service
www.seebusinessdifferently.com