a story of lean it transformation by jean cunningham - european lean it summit 2012

Copyright © Institut Lean France 2012

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This is the story of a lean transformation that occurred within the IT organization in a large, global company. Learn how this department launched their lean efforts, piqued internal interest, created capability and transformed their approach to IT operations with lean thinking. They utilized all the lean tools and not only conducted cross-functional improvement activities with dramatic results, but also created a culture of everyday improvement that continues to advance lean waste reduction to this day. This IT organization became the symbol of change, improvement and leadership for the entire company.


22 & 23 November, 2012Paris, France

Launch Lean in a Global IT Organization

European Lean IT Summit 2012

withJean Cunningham



• Founder and president• Lean accounting and lean

office pioneer• Former CFO, Lantech, Inc.• Former CFO, Marshfield

Door Systems

Building LEAN Beyond Manufacturing

Productivity Press, 2007Shingo Prize, 2008

Managing Times Press, 2003Shingo Prize, 2004


• Well known innovator in manufacturing and distribution

• Consumer-based household products• Global

150 countries Used by 25% of world population daily Products have #1 or #2 market share in 80

countries• 800 IT professionals globally plus global

external IT partners

Global Enterprise




Timeline

Discovery May-Oct 2008

Launch Dec 2008

Develop Team Q1 2009

Introduce to IT personnel Q2-Q4 2009

IT Lean Team Leadership FY 2010

Expansion FY 2011

Value Add IT FY 2012


• Operation led

Discovery, May-Oct 2008


Manufacture

R&DSe

llOrders

Purchasi

ng

Ship

Finan

ce

Information Systems

Human Resources

Accounting


• Finance interest via workshop• Manufacturing IT support internal

workshop• Global finance workshop

Three problem events IT executive spends five days with finance






“ Can Lean be an answer?”

Maintenance

Normal New

Lean New ??


• Approval from CIO for trial• Find external support / coach• Identify key team members and leader• Three day introduction

Launch, Dec 2008


Day 1 Lean introduction to key team

Day 2 AM Lean Introduction to large IT group (40 people)

Day 2 PMDay 3 AM

Mini-kaizens• Portolio Management (15 team members)• Cost Management (10 team members)

Day 3 PM Presentation, “Ah ha” moments


• Dedicate resource 1 team leader 5 full time All top performers All in U.S.A.

• Scope, objectives, & quarterly plan Personal development Introduce Lean Build awareness

• “What does this mean to me?”

Develop Team, Q1 2009



• Consultant led initial kaizen events; shadow by key leads Small enhancements Launch SharePoint

sites Regulatory Access management

• Quick & Easy boards

• Internal tools 8 wastes Kanban Visual Management

• Added extended team members Global Part-time Functional


Introduce to Personnel, Q2-Q4 2009


• Problem area focus events• Lean education to all IT• Working cross functional• Metrics for lean team

% of people trained # of people in events Q & E improvements Events held

IT Lean Team Leadership, FY 2010



• Team skill development tools Value stream mapping 8 wastes Pull Kanban Standard work Metrics

IT Lean Team Leadership, FY 2010


TeachOthers

FullyAble

WithHelp

KnowAbout


• Selected a consulting firm guide• Six sigma as “competition”• Pre-selected problems

Current state evaluated prior to the event• Not IT “way”• Confusion / check the box• Existing team members recruited to more

senior positions• New team members added

Expansion, FY 2011


Corporate InitiativeHuman Resources Finance Legal IT


1. Focus on business management IT Functional leader driven Teach leaders to see problems Teach problem solving Lean team supports leaders

Value Add IT, FY 2012



2. Organization development First IT lean leader promotion to senior

operations Lean IT team members

promoted and act as leaders with lean

Second IT lean leader selected as development opportunity

Risk that some team members not moving off team

Value Add IT, FY 2012




Lean IT Transformation

Transactions

Analysis

Consulting

Analysis

Consulting

Transactions


• Lean as a business strategy not an initiative

• Importance of daily improvement focus• Commitment of “free resources”• Value of coach; not consultant

Summary and Results



• Not a quick fix Year 2

95% trained30% involved in kaizen

Year 3Global involvement fullyZero overhead growth

Year 4Average delivery of application up 300%Pulling external work inside

Summary and Results



1. Automate only if it is easier, faster, and complements your culture.

2. Build commonality to increase visibility and access to information.

3. The primary purpose of security is to avoid data corruption and provide information access.

4. Nothing lasts forever.5. System and software inflexibility can be the greatest

inhibitor of change.6. Plain English system instructions are better than

shorthand.

Lean IT Principles

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7. Keystrokes matter to power users.8. Capture everything you can about your customer.9. Archive customer history; clean house on internal

transactions.10. Capture information once and be done.11. Use commonality to create an information highway.12. Productivity for all is more important than productivity for

one.13. Huge data stores are easy to manipulate.

Lean IT Principles

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JCC Products and Services• Lean Office Workshops

• Business Process Kaizens• Lean Accounting• Lean Human Resources• Lean IT and IS Migration

• Strategic Deployment Planning• Lean Metrics• Lean Financial Statements



Contact

Jean Cunningham

Email: [email protected]: 224.688.3504


22 & 23 November, 2012Paris, France

Launch Lean in a Global IT Organization

European Lean IT Summit 2012

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a story of lean it transformation by jean cunningham - european lean it summit 2012

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