P ris, France

16 & 17 October, 2014

Copyright © Institut Lean France 2014

Lean IT Summit ®®

EDSN’s Transition

Continuous Improvement in

Learning & Performing

Arthur van Wylick

Version 1.0

Lean IT Summit ®®

Agenda

Con

nuousIm

provementSuccess

Phase3Phase2Phase1

Departmental

op misa on

Outsidein

op misa on

Value

Chain

op misa on

Employees

Management

MT

0

2

4

6

8

10

Starttraject OverdrachtHofP

#callsperweekperemployee

Numberofcallsperweekperemployee

+80%

Start Handover

2

Approach

Results Lessons Learned

Discussion

Challenge

Energy Data Service Netherlands (EDSN) is the market

facilitator for the Dutch Energy market

3

2011 2012 2013

Turnover 9.4 14.1 21.6

Assets 7.2 20.8 30.5

employees (total)

19 (120)

22 (120) 35 (70)

Balance

Responsible

Supplier

Service

Provider

Producer

Grid

operator

Transport

System

Operator

• Metering point administration

• Measurement data registration

• Allocation & Reconciliation

• Balancing & Settlement

Market facilitating platform for providing access to:

EDSN

Commercial Regulated

Being part of the changing energy market, EDSN has

started an ambitious transition in 2011

From Hub To Central Agent

Goal Distributer of messages between parties

Manager of centralized registers

IT Systems Routing service Centralized Registers

Mindset Best effort Mission critical, zero fault

Regulation Loosely regulated Tightly regulated

4

EDSN

. DSO

transition EDSN

. DSO

Hub Central Agency

5

Status of EDSN by the end of 2012

• Significant overrun on its IT project;

• Customers had taken over the project management;

• EDSN was challenged by customers to prove itself capable of managing mission critical

systems.

Consequence

• The supervisory board had ordered a McKinsey audit;

• A new CEO was appointed as per January 2013.

In 2012 EDSN was facing a significant challenge to take

up its role as a central agent

EDSN

. DSO

transition EDSN

. DSO

Hub Central Agency

The new CEO has launched a clear agenda to secure

the future of EDSN

6

Get IT project back on track

Prepare EDSN for its new

role as market facilitator

EDSN’s change approach was built

on 2 LEAN principles

7

Phased approach

Employees

Management

MT

CI interventions simultaneously at all levels

Co

nti

nu

ou

s Im

pro

vem

ent

Succ

ess

Phase 3 Phase 2 Phase 1

Departmental

optimisation

Outside in

optimisation

Value

Chain

optimisation

8

Phase 1

• Optimization focused on

departments;

• Capture low hanging fruit;

• Tackle largest dissatisfiers;

• Create boost in employee

Morale;

• Build credibility;

• Get right people on the bus.

Phase 2

• Define value chains;

• Establish new

responsibilities;

• Tackle interdepartmental

issues;

• Stimulate and allow high

impact improvements;

• Align non core teams.

Phase 3

• Customer demand as a

basis for services offered;

• Eliminate ‘non desired

services and products’;

• Awareness of and ability to

translate trends and

developments into services;

• Align service portfolio with

customer requirements.

The phased approach has given the organization

and its stakeholders a clear scope

Co

nti

nu

ou

s Im

pro

vem

ent

Succ

ess

Phase 3 Phase 2 Phase 1

Deptart-

mental

optimisation

Outside in

optimisation

Value

Chain

optimisation

Interventions at all levels were focused on

creating a customer excellence mindset and

leading by example

• Build mindset of customer excellence;

• Build mindset of ‘you can make a

difference’.

9

• Build mindset of facilitating the

development of personal skills and know

how to deliver customer excellence;

• Lead by example.

• Create customer excellence mindset;

• Have a zero tolerance mindset for

deviations from mindset;

• Lead by example.

Goal

Employees

Management

MT

Level

Interventions at all levels require outside support -

House of Performance supported EDSN with Lean and

personal development support

10

• Daily stand ups;

• Kaizens;

• Introduction of KPI’s on first time right

and first call resolution.

• Coaching on management style (1 on 1);

• Alignment of management controls for

Service Profit Chain.

• Development of shared vision;

• Monthly team building sessions;

• Intervision and Kaizens;

• Sinners vs Saints analysis (and follow

up).

House of Performance supported

Employees

Management

MT

Key achievements of first phase are impressive

0

2

4

6

8

10

Start traject Overdracht HofP

Customer Satisfaction (Service Dept.)

+16%

0

2

4

6

8

10

Start traject Overdracht HofP

Employee Satisfaction (Maintenance Dept.)

0%

10%

20%

30%

40%

50%

60%

70%

Start traject Overdracht HofP%

Th

rou

ghp

ut

calls

0

2

4

6

8

10

Start traject Overdracht HofP

# ca

lls p

er w

eek

per

em

plo

yee

0

2

4

6

8

Start traject Overdracht HofP

Thro

ugh

pu

t ti

me

(day

s)

Number of calls per week per employee

Throughput calls in % (Chain: 1st and 2nd line)

Throughput time calls (Chain: 1st and 2nd line)

+21%

Start Handover Start Handover

+80% -65% -28%

Start Handover Start Handover Start Handover

In first phase IM and Maintenance & Support were

most successful, Projects lagged behind

12

MT

Information Management

Projects Maintenance

& Support

F&A Purchasing

HRM

Information Management:

• Focus on productivity through standardization of

work processes and eliminating waste;

• Impressive results.

Maintenance & Support:

• Traditional approach of eliminating waste

• impressive results in productivity, customer

satisfaction and mindset.

Staff departments:

• focus on support process improvement;

• 2nd wave, focus on ‘getting in control’.

Projects:

• Few results due to focus on delivery of program;

• stand alone mindset.

✔ ✖ ✔

✔ ✔

✔

Co

nti

nu

ou

s Im

pro

vem

ent

Succ

ess

Phase 3 Phase 2 Phase 1

Deptart-

mental

optimisation

Outside in

optimisation

Value

Chain

optimisation

EDSN has started second phase optimization;

focus on improvement of innovation cycle

13

Sept

2014

Management Assessment

June 2014, start with value chain based

organization

Period of chaos

and doubt

Moment of truth

Projects (build)

Value Chain thinking led to major breakthrough for

Projects (by necessity due to vacancy)

14

Information Management

(design)

Maintenance & Support (manage)

Before phase 2: • 2 handover moments;

• Limited ownership;

• Departmental success not

always in line with EDSN

success;

• 3 cultures.

In phase 2: • Committed handovers;

• Staffing from line departments in

Projects;

• Common principles, KPI’s and

values;

• Everybody is committed to

successful outcome.

Information Management

(design)

Maintenance & Support (manage)

Projects (build)

Main Learnings

• Phased approach works well:

– Keeps focus;

– Provides roadmap;

– Sets management agenda.

• Continuous Improvement interventions need to be at all levels:

– With strong focus on mindset of customer excellence;

– Personal belief: not talking about money saves a lot of money;

– Be very tough on deviators from mindset of skillset and customer excellence;

– Mirror of outside consultant for team is needed;

– Skill set of outside consultant for interventions at all levels is needed.

• Managing a project with all stakeholders in team works well;

• Active ownership by management acts as a catalyst to cross silo boundaries;

• Management Pyramid is indeed upside down. Cracks in higher management team lead to tip

over;

• Although the transition has been very successful, almost 30% of staff has left the company

during phase 1 and the start of phase 2.

15

Lean IT Summit ®®

Contact Details EDSN, The Netherlands

www.edsn.nl

Arthur van Wylick

Arthur@plusu.nl, +31 62 96 28 286

(CEO until July 11, 2014)

Paul Roos

paul.roos@edsn.nl, + 31 35 54 80 180

(CEO as of July 12, 2014)

16

House of Performance, The Netherlands

www.hofp.nl

Stephanie Hunfeld

s.hunfeld@hofp.nl, + 31 30 23 93 360

Consultant

Heiko van Eldijk

h.vaneldijk@hofp.nl, + 31 30 23 93 360

Partner