lean @support functions by martin chmelar & tomas turecek, tieto
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Copyright © Institut Lean France 2013
3 & 4 October, 2013 Paris, France
Lean @ Support Functions
Connecting Support functions to Business
by Tomáš Tureček, Martin Chmelař
1
Copyright © Institut Lean France 2012
Martin Chmelař,
Lean&Agile Coach
Tomáš Tureček,
Lean&Agile Coach
Speakers
Lean@Support Functions - Tomáš Tureček, Martin Chmelař 2
Copyright © Institut Lean France 2012
• Value focus
ROI, Time-to-market, …
• Whole value chain support
• Team support
Leadership, coaching, …
• Over 10 years of Lean / Agile
experience from tens of IT
projects
• Over 3500 people are
enjoying results of our
coaching
Lean@Support Functions - Tomáš Tureček, Martin Chmelař
We are RainFellows
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Need Value
time, €, satisfaction, …
Copyright © Institut Lean France 2012
The leading IT service company in
Northern Europe providing IT and
product engineering services
We represent Tieto
Lean@Support Functions - Tomáš Tureček, Martin Chmelař
More than 15,000 employees
in more than 20 countries
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Copyright © Institut Lean France 2012
3 & 4 October, 2013 Paris, France
SUPPORT FUNCTIONS
Lean@Support Functions - Tomáš Tureček, Martin Chmelař
HR Finance
ICT Staffing
Quality Procurement
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Copyright © Institut Lean France 2012
Support Functions
Heroes or villains?
Lean@Support Functions - Tomáš Tureček, Martin Chmelař 6
Copyright © Institut Lean France 2012
Isolated from customer value
Serving all but none
They do their best but…
Busy business people
External constraints
Lean@Support Functions - Tomáš Tureček, Martin Chmelař
Far from customer
Serving many
different value chains
Wide & shallow
approach used
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Copyright © Institut Lean France 2012
Some time ago in Tieto…
Lean@Support Functions - Tomáš Tureček, Martin Chmelař
SGA costs were higher than competitors’,
IT players of similar size
Feedback showed that Support Functions were isolated and not supporting customer
oriented work
Sampo Salonen Executive Vice-president,
Global Delivery and Quality SGA: Sales, General & Administration
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Copyright © Institut Lean France 2012
The CMMI story
Lean@Support Functions - Tomáš Tureček, Martin Chmelař 9
Our customers want us CMMI.
Which customers? Why?
Don’t ask. Just do it.
Chief Marketing Officer Processes & Quality org.
TIPS Team Processes & Quality org.
Your Czech part will be CMMI ML3.
No time to do it. We are busy with customers’ escalations.
Your processes will be better. Just do it.
1
2
Copyright © Institut Lean France 2012
Lean@TIPS
Profit
2x
* Average monthly profit
in 2012 compared to 2011
Satisfaction
Customers
Employees
-10
0
10
20
30
40
50
Start
Lean@Support Functions - Tomáš Tureček, Martin Chmelař 10
2012
Copyright © Institut Lean France 2012
Lean transformation@Tieto
Lean@Support Functions - Tomáš Tureček, Martin Chmelař
Business impact: 7MEUR in 2012
Sampo Salonen Executive Vice-president,
Global Delivery and Quality
Let’s try Lean approach on Support Functions
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2011
Copyright © Institut Lean France 2012
3 & 4 October, 2013 Paris, France
“HOW TO EAT
AN ELEPHANT?”
1. Start now.
2. Split & focus.
3. Bite & chew.
4. Enjoy every bite
Lean@Support Functions - Tomáš Tureček, Martin Chmelař 12
Copyright © Institut Lean France 2012
• 5 pilot teams chosen
Business critical (yummy)
Ready for change (chewable)
Known way of working
• Connect SFs
to customer and value
Split & Focus
Lean@Support Functions - Tomáš Tureček, Martin Chmelař 13
Narrow and deep
focus
Copyright © Institut Lean France 2012
• In distributed software product development?
Go & See?
Lean@Support Functions - Tomáš Tureček, Martin Chmelař
Solution: Kaizen workshop!
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Copyright © Institut Lean France 2012
Kaizen Workshop
C
X
C
(1) Agree on
common goal and
map end-to-end
value stream
Root
cause
Root
cause Cause
C
X
C
!
!
!
!
!
(2) Visualize
perceived issues
(3) Investigate
root causes
(4) Brainstorm ideal
solutions and small
“Kaizen” steps
☺
☺
Lean@Support Functions - Tomáš Tureček, Martin Chmelař 15
2011
Copyright © Institut Lean France 2012
1. Delivery driven interfaces to Support Functions
2. Support Function driven interfaces to Delivery
Weekly, Monthly, Quarterly, Annually
KW@Support Functions
Lean@Support Functions - Tomáš Tureček, Martin Chmelař 16
S&M,
Contract
renewal,
CS
Staffing
Finance Quality … etc.
… etc.
Sales phase Development/Transition phase
Role/Representative
Delivery Manager
Cust. Managers (Sales)
Line Managers
Cont. Service Managers
Quality Lead
Finance Partner
Finance Controller
HR Partner
Staffing
Purchasing, Subcontracting, Procurement
Special Guests (LT, Man.)
Copyright © Institut Lean France 2012
KW@Support Functions
Lean@Support Functions - Tomáš Tureček, Martin Chmelař 17
Copyright © Institut Lean France 2012
• Low autonomy (A lot of approvals)
• Overhead (Finance reports, HR questions, Manual reporting, ...)
Findings from pilot cases
Lean@Support Functions - Tomáš Tureček, Martin Chmelař
Copyright © Institut Lean France 2012
• Mutual feedback
• Agreed actions to problems of pilots
Results
Lean@Support Functions - Tomáš Tureček, Martin Chmelař 19
SF: “We are first time ever looking for process and
connecting deliveries and support functions!”
Delivery: “It was really great to have LT member here and
discuss topics immediately.”
Martin Sztemon Project manager
“We had problem to track down costs on our very huge and complex service portfolio;
finance partner offered us to set-up our portfolio differently to get the visibility”
“GL bookings (delayed invoices) are now much easier to handle after our issue was reflected in a finance tool”
“We boosted our relationship with Support function partners on workshop; this paid of
later when we were solving our daily issues with them.
Copyright © Institut Lean France 2012
• Inputs and feedback to the new operating model
From Cost centers to Projects
Survey; In compare to 2012 is your (PM/CSM/DM)…
Results
Lean@Support Functions - Tomáš Tureček, Martin Chmelař 20
Much
smaller Much
higher
Same Much
higher Much
smaller
Same
Sampo Salonen Executive Vice-president,
Global Delivery and Quality
Workshops findings had big influence
on the result operating model
…decision making power higher now? …overhead smaller now?
Copyright © Institut Lean France 2012
• We relied on SF heads and LT team to keep the wheel spinning…
How about chewing?
Lean@Support Functions - Tomáš Tureček, Martin Chmelař 21
1. Form Core team coach pairs
2. Find internal coaches inside SFs
3. Initiate Lean@(concreteSF)
4. Continuous improvement
Lean@Staffing
Lean@Finance
Lean@...
Core team
Internal
coach
Copyright © Institut Lean France 2012
• Lean@(concreteSF) unfortunately faded out…
Missing active change agents
• However, half a year after…
Contacted by people from within SFs
KW@ICT, KW@Finance
• So we managed to create a ripple effect
and the journey continues…
Failure or success?
Lean@Support Functions - Tomáš Tureček, Martin Chmelař 22
Copyright © Institut Lean France 2012
• Approach people positively - everyone does his/her best
• Focus people and their actions on value
• Keep Startup mindset & PDCA
• Prioritize and focus
• Go & See - Kaizen workshop
• Bring people together to break the silos
• Focus on long term results, but win something quickly as well
• Find change agents
This story was about how
important it is to…
Lean@Support Functions - Tomáš Tureček, Martin Chmelař 23
Copyright © Institut Lean France 2012
Let them meet. Let them talk. Let them share.
To find WHAT and WHY they want to achieve together
Because only people who know WHAT and WHY can
invent the HOW and make the needed improvement…
But the most important lesson was…
Lean@Support Functions - Tomáš Tureček, Martin Chmelař
People first
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Copyright © Institut Lean France 2012
More about Lean in IT on: www.lean-it-summit.com
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