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Measuring Success in the Lean IT World

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LITA Executive Webinar with Niels Loader
Niels will share the insights gained in determining and implementing metrics within IT, particularly focusing on the metrics used in a Lean IT organization. He will focus on the key pitfalls and successful strategies for getting to the right metrics and making them work.

Publié dans : Direction et management
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Measuring Success in the Lean IT World

  1. 1. Measuring Success in the Lean IT World
  2. 2. LITA Executive Webinar
  3. 3. Host and Presenter Deborah Burton Marketing Lead Lean IT Association (LITA)
  4. 4. LITA - Pioneering a Global Standard for Lean IT Education & Certification ● Lean IT Association (LITA) is a non-profit organization founded by three Accredited Training Organizations (ATOs) - ITpreneurs, Pink Elephant, Quint Wellington Redwood and three Examination Institutes (EIs) - APMG, EXIN, PEOPLECERT International Ltd. To realize its broader purpose LITA aims to provide: ● An industry-standard set of Lean IT reference materials and other resources for practitioner organizations to use; ● An certification scheme aimed at practitioner organizations looking to adopt Lean IT principles in the IT Service development and operations department as well as professionals that want to be certified in Lean IT on various levels.
  5. 5. Today's Guest Presenter Niels Loader, Partner, Quint Wellington Redwood, Content Board Lead, Lean IT Association, Chief Examiner Lean IT, APMG ● IT Service Management ● IT Performance Improvement ● Lean IT ● DevOps
  6. 6. Watch the webinar recording Webinar Recording Measuring Success in the Lean IT World
  7. 7. Measuring Success in the Lean IT World
  8. 8. Today’s Agenda 1. Why do we need metrics? 2. Lean IT Metrics … and how to choose them 3. Getting metrics to work: Definition and Pitfalls How can I measure my success? Objective To ensure you can measure your improvements, successes and progress
  9. 9. Why Metrics? 9
  10. 10. What Should I Measure? Age-old Question
  11. 11. Why Measure?  Influence behavior  Ensure you have facts concerning a particular situation  Provides the answer to a question  Helps you to provide feedback
  12. 12. Metrics are just the Beginning Why is it important Measure From goals to KPIs • Ensures discussions are based on facts • Ensures key measurements to monitor whether we are achieving our goals • Facilitates concrete discussions concerning targets Visualize From KPIs to steering information ▪ Consistent and effective communication about goals and priorities ▪ Enables real-time updates and continuous improvement ▪ Ensures everyone has access to the same information Steer From steering information to goals ▪ Ability to correct where things go wrong ▪ Ability to give feedback on performance (positive and negative) ▪ Ability to discuss responsibilities 12
  13. 13. Key Lean IT Metrics 13
  14. 14. Lean IT Metrics are Clearly Customer-focused 1. Lost Production Hours 2. Time to Market of Changes 3. Effectiveness of Changes 4. Quality of Plans 5. Number of Proactive Changes No IT Outages Quick Time to Market of Changes “Maintain current functionality” “Provide new functionality” “Give advice on current and new functionality” New Use of IT Listen to the Voice of the Customer when choosing metrics
  15. 15. Customer-oriented metric: Disruptions No. of incidents and resolution times Time that incidents are open Time that IT customers cannot work Excess cost and lost revenue   Priority Total number Average time to repair (days) Number of users affected Gross lost production days Cost per day Dependancy Net Lost production days Net costs Costs per day to business per incident Total cost to the business Critical 1042 0.7 20 14,227 € 240 50 % 7,113 € 1,707,213 5000 € 3,556,695 High 2796 5.4 10 149,634 € 240 40 % 59,853 € 14,364,817 1000 € 14,963,351 Medium 12196 10.3 4 500,948 € 240 30 % 150,284 € 36,068,234 500 € 62,618,462 Low 376 9.8 1 3,699 € 240 20 % 740 € 177,556 100 € 369,908 16410 668,507 217,991 € 52,317,820 € 81,508,415 It’s about Lost Production Time not Mean Time To Repair!
  16. 16. • A classic Lean process metric • Just-In-Time • Use for … everything • “Time to Market” – Start the positive part of the business case – Meet agreed implementation date – Work within budget – Reliability Customer-oriented metric: Lead Time 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 Average Customer Lead Time Total 4 per. Mov. Avg. (Total)
  17. 17. Internal Lean IT metrics: Time Time is IT’s primary production factor Key Metric: Earning Capacity Analysis
  18. 18. Internal Lean IT metrics: Delivery DevOps is the ultimate search for FLOW within IT Key Metric: Release Frequency 0 10 20 30 40 50 60 70 80 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 Number of Story Points per week Total 4 per. Mov. Avg. (Total)
  19. 19. Bringing the Metrics Together: The KPI Tree 19
  20. 20. Getting Metrics To Work 20
  21. 21. Measuring is Not as Easy as it Seems Pitfalls of Metrics • Spending insufficient time on defining metrics • Focusing on the numbers and not on what the numbers are trying to tell you • Steering on individual scores rather than the trend • Creating ‘insignificant’ metrics • Always test metrics against Lean Principles
  22. 22. Measurement Do's and Don’ts 22 • Do not assume that a measurement measures what people say it measures – Describe the purpose of the measurement • Clearly define the things you want to measure – Ensure the measurement process is accurate and precise enough for the purpose – Ensure the measurement is trusted and that its quality is constant – Define the population you are measuring – State when measurement starts and ends • Use tools to reduce errors You ALWAYS need to explain a measurement. No measurement is self- explanatory.
  23. 23. Getting Metrics to Work: Definition KPI : Lead time Formula: Lead time • Date/time customer submits the request (in Service Now: field “Open Date”) subtracted from the date/time the request is fulfilled (in Service Now: field “Actual Close Date”. This gives the Lead time. • For each type of unit of work, the average lead time is calculated per week. . Issues (Ways in which the KPI can be 'gamed'): • Incorrect registration of stories and tickets may lead to an incorrect view of lead time performance. • Requests are not registered at all, meaning no data is available Frequency of reporting: Weekly Data should be updated on a daily basis, or be available realtime Measurement Accuracy 1 decimal Data collection process: - Extract data (see formula) from ServiceNow (separate files) - Stories from Backlog section - Tickets from Risk section - Load into Excel - Calculate Lead Time according to formula - Present data as a time series chart showing at least the last 16 weeks with a 4-period moving average trendline KPI owner: RS MT Category: process, customer Definition: Measure the lead time of all units of work in order to understand where improvements in processes can be made to decrease lead time Unit of measurement (%, number, index) - Number Level at which the performance indicator is used: RS MT, teams Goal: To influence behaviour towards ensuring that customers get the value they have requested as quickly as possible
  24. 24. Getting Metrics to Work: Key Steps Defining and measuring metrics • Use the KPI card • Start with a quick measurement, automate later • Learn to work with the metric Using metrics • Focus on the behavior you want to change • Lean IT metrics lead to action • Integrate metrics into your visual management Setting goals • Leadership team of IT is responsible for setting the direction • Identify the aspects of strategy you want to measure
  25. 25. Want to Learn More About How Metrics fit into Lean IT? 25
  26. 26. Contact Us Niels Loader Partner Quint Wellington Redwood, LITA Lead Author Courseware Development n.loader@quintgroup.com Deborah Burton Marketing Lead Lean IT Association (LITA) deborah.burton@leanitassociation.com
  27. 27. Experience Lean IT in Action We believe that “Lean Thinking” should be an integral part of every Enterprise IT organization and also every IT professional’s toolkit. Lean thinking is about understanding how to assess business processes, to identify and eliminate waste. Today, many IT professionals stakeholders from cross-functional areas -operational, tactical and strategic — have or are planning to get certified in Lean IT with the objective of reducing waste and improving efficiency. 27 Become a LITA Training Partner
  28. 28. Watch the webinar recording Webinar Recording Measuring Success in the Lean IT World
  29. 29. Thank you!

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