Summary: This week in CIO Playbook with Jeffrey Hurley I am discussing the application of lean principles in technology. The concepts of lean originated in the manufacturing sector and these principles include: Eliminating work that is not directly value added Optimization of operating procedures Optimization of management systems Optimization of organizational structure Optimization of mindsets and behaviors Improve productivity, quality, and satisfaction while reducing risk Build and improve upon capabilities Instill the concepts of iteration and continuous improvement I recommend a high-level four step approach to building a strategy for deploying lean principles into your technology organization: Stabilize Standardize Visualize Improve Stabilize Lean principles originated in manufacturing where processes tend to be consistent and repetitive. In the service world that information technology occupies it is often difficult to determine what the request inflows will be. Thus creating difficulty in delivering consistent results. The source of these inconsistent results can often be tied to lack of understanding of the customers needs. Stabilization starts with understanding the voice of the customer. When you have poorly designed processes for meeting customer needs you staff is left to figure out how to perform a problem solving process. The "tribal knowledge" of staff causes variability depending on who performs the process. Resolution starts in small ways through better documentation, process definition, and training. Standardize You find that some of your processes are providing consistent delivery and by standardizing them you can develop a foundation to build upon. the standardization will create practices that can be consistently followed by all staff who perform the activities associated with the process. By streamlining the work efforts can be simplified through the reduction in variability. Staff will begin adhering to the standardized processes because they will know the approach is the simplest and most effective. Visualize The next step is to improve transparency into work and outcomes. Lean enterprises look to consistently improve organizational performance. To improve upon your practices metrics should be developed to measure baseline capabilities and set goals for improvement gains. A visual organization is easier to manage over time with instructions and prioritization posted reducing the time needed accomplish activities. These techniques can improve visibility into performance and provide opportunities to identify problems and issues with performance. Improve As a leader you a critical to this next steps which is to instill a culture continuous improvement. First you will want to establish an environment that is safe for experimentation. Second, put in place a personal development program that will develop the next set of lean principled leaders. Third, build into every staff members objectives a goal for contributing to improving the work they are responsible for. These steps will enable the breakdown of existing habits and the adoption of new ones. Lean Principles are About Removing Waste IT's ownership equation is labor plus hardware & software plus facilities. Improving the productivity of your staff represents one third of this IT equation and thus a key performance enabler. You can realize anywhere from a 10% to 55% improvement in productivity, quality, and cycle times through the implementation of lean principles in your technology organization. Lean principles target the removal of waste in the system or process. What are some of the typical wastes in technology? The seven most common wastes identified in lean analysis: Over production: Not properly identifying the specific and minimum viable product for the end user. The result is an over-engineered solution or a solution replete with nice-to-have requirements
