The document discusses how Lean principles can be applied to continually improve IT service delivery. It provides three examples: 1) A government agency used Lean tools like failure mode analysis to standardize support patterns and improve incident response times. 2) A bank used value stream mapping and metrics to identify weak links causing outages and reduce customer retention risks. 3) A gaming company insourced their service desk after finding outsourcing introduced waste and higher support costs. Lean helped reduce waste and costs while improving service.

1. Lean Continual Service
Improvement “Driving
Change Enablement”

2. LITA
Executive
Webinar
April 12, 2016

3. WELCOME!

4. Host and Presenter
Deborah Burton
Member Marketing Team
Lean IT Association (LITA)
Channel Marketing Manager
ITpreneurs

5. 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.

6. Today's Guest Presenter
David Smith
President
Micromation Inc.
We help our customers increase the value they provide to their Customers.

7. 7
Watch Webinar Recording
Webinar Recording
Lean Continual Service
Improvement “Driving
Change Enablement”

8. Lean is a Way of Thinking and Acting
• Increase customer value
• Eliminate waste
• Management as facilitator
• Employee involvement
• Continual improvement
Customer
Value
Value
Stream
Flow
Pull
Perfecti
on

9. Story # 1 – Gov Ops
Better IT Customer Service by
Reducing Muda (waste) to
Improve Incident Flow.

10. Gov Ops Services Improvement Program
Jill was the program manager who
successfully improved many IT
services for a Government Operations
group (Gov Ops) using Lean thinking.
Jill

11. Gov Ops Consolidation and Streamlining
Gov Ops had recently consolidated many IT
departments into fewer IT groups as part of a
streamlining effort.
This presented significant challenges in
delivering quality IT services with the many
changes that had taken place.

12. Integrated Service Agreement Methodology (ISAM)
Jills’ team developed an Integrated
Service Agreement Methodology
(ISAM) that significantly improved
support services by removing
challenges and increasing effectiveness
of the Help Desk, 1st line and 2nd line
support processes.
Jill’s Team
ME

13. Step # 1 – Define Strategy
We cataloged and classified critical customer
groups, the services they used, where they
were most vulnerable/risk, prioritized a
roadmap, then worked with each customer to
identify their expectations.

14. Step # 2 - Measurements
The selected services were then instrumented using
dashboards, scorecards and metrics for performance
monitoring.
A six month baseline was created for each service.
Later, corrective actions were taken to reinforce
improvements.

15. Step # 3 - Enablers
We then decomposed individual services using a
failure mode and effects analysis (FMEA).
Results into a support model which identified the
best support patterns, knowledge records,
prescriptive actions for 1st line, 2nd line, 3rd line
and what required configuration records.

16. Step # 4 - Challenges
Then we closed all gaps by documenting
service levels, roles & responsibilities,
escalations, notifications, detection methods
and performance measurements.
These were attested and signed-off by all
stakeholders.

17. Step # 5 - Initiatives
The service was then activated into the
operational environment by training and
coaching help desk agents, L1, L2, L3 staff
on their roles/ responsibilities, service levels,
knowledge records etc.
17

18. The Results
These steps were repeated on 26 more
critical services over an 18 month period.
All measured services were dramatically
improved and verified.

19. Lean Thinking Finds - Eliminates Waste
Kaizen
Events
Decompose
Service
Find Root
Cause
Define
Measure
AnalyzeImprove
Control
Service
Function1
App 1
Infra 1
NetWK 1
App…
Infra 2
NetWK …
Function …
Failure
Cause
RiskRank
Action
1
3
2
Remove
Waste4

20. Define Strategy Using CSI Value Canvas – Lean A3
Challenge:
Waste, Issues, Gaps,
Risks
Initiative:
Improvement, Innovation
Control:
Metrics, Analytics, Artifacts, Evidence
Enabler:
Managed Elements
Strategy:
Outcomes, Benefits
Portfolio:
Purpose, Timeframe
www.csi-manager.com
Integrated Service
Agreement
Methodology (ISAM)
Better customer
service delivery
People: Service
Desk
Process: incident
Tools:
ticketing, Bus.
Intelligence
Data:
Support,
Knowledge,
Conf. items
Unclear
R&R
Process
changes
No CMDB
Tacit
knowledge
Authority
matrix
Standardize
support
patterns
Support
model,
SLOs
Knowledge
records
Performance Reliability Availability Customer
Satisfaction
Cost
Avoidance
Regulatory
Compliance

21. Service Decomposition Helped Determine Optimal and
Prescriptive Support Patterns
Service
Function1
App 1
Infra 1
NetWK 1
App…
Infra 2
NetWK …
Function …
What can fail?
What is priority?
Who to call?
How long will it take?
Who needs to know?

22. Application and Infrastructure Failure Modes and
Effects Analysis (FMEA)
Identify all
failure
modes.
Consider
the root
causes.
Assess the
risk of the
failure
Rank the
failure
modes.
Determine
corrective
actions.
FMEA is used to understand
what can go wrong, the impacts
of failures, how failures are
detected and what corrective
action should be taken.

23. IM Workflows by Tier
Register Diagnose Repair Restore
Tier 0
(Service Desk)
Tier 1
(Situation Mgr)
Tier 2
(Internal SME)
Tier 3
(Vendor SME)
23
As- Is
To - Be

24. Story # 2 – Big Bank
IT Prevents Loss of Major Business
Customers by Reducing Mura
(variance) to Improve Customer
Services.
24

25. Big Bank in Trouble Because of Broken Services
Some of Big Bank’s corporate customers
threaten to pull-out due to inconsistent
delivery of electronic banking services.
Big Bank

26. What Could be Worse than That?
“Penalties – Fines – Share Value”
Performance penalties if
transactions have to be
refunded due to missed time
cut-offs.
Too many missed cut-offs
result in fines from banking
regulatory bodies.
Word gets out, shareholders
panic, dump shares, share
price drops.

27. Lean Thinking Helps Big Bank Find - Eliminate
Weakest Links
2. Value Stream
3. Information Flow 4. Measure
1. Strategy & Tactics

28. Strategy & tactics using CSI Value Canvas – Lean A3
Challenge:
Waste, Issues, Gaps,
Risks
Initiative:
Improvement, Innovation
Control:
Metrics, Analytics, Artifacts, Evidence
Enabler:
Managed Elements
Strategy:
Outcomes, Benefits
Portfolio:
Purpose, Timeframe
Corporate
Customer
Retention
Service provider
Process: incident
notifications
Technologies:
infrastructure/
app. Services
Retention
Performance
measurement
Technology
stability
Communications
FMEA,
Initiatives
Dashboard,
Scorecards
Notification
System
Stability
AvailabilityOutages
Fines/
Penalties
E2E Service
Stability
(variance)

29. Service Model Value Stream

30. FMEA Used to Isolate (Root - Cause) weak Links
that need Remediation
30

31. Streamlined Information Flow

32. Big Bank Services Performance Dashboard
Big Bank
Key Performance Metrics by Service
Loss Performance
Loss Event
Summary
FY 2014
Q1 Q2 Q3 Q4
# Payments Missed xxx xxx xxx xxx
$ Penalties/Fines $xxx $xxx $xxx $xxx
Key Processing Volumes (FYTD 2014)
Analysis
SRV 1
Dollars Items
xxx $xxx xxx
xxx $xxx xxx
SRV 2
Dollars Items
xxx $xxx xxx
xxx $xxx xxx
SRV 3
Dollars Items
xxx $xxx xxx
xxx $xxx xxx
SRV 4
Dollars Items
xxx $xxx xxx
xxx $xxx xxx
SRV 5
Dollars Items
xxx $xxx xxx
xxx $xxx xxx
Observations
• Serim xlkm mls f lkjsldkmm sk ddd
sldkd
• Lksdk lkdm
• iweij
Issues/Gaps/Risks
• Serim xlkm mls f lkjsldkmm sk ddd
sldkd
• Lksdk lkdm
• iweij
Root Cause Analysis
• Serim xlkm mls f lkjsldkmm sk ddd
sldkd
• Lksdk lkdm
• iweij
Improvement Initiatives
• Serim xlkm mls f lkjsldkmm sk ddd
sldkd
• Lksdk lkdm
• iweijGreen = Target Met, Yellow = Between Target and Warning, Red = Warning Exceeded. Null = No Data Available
Target Warning Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Trend
Service Availability- Service is available for use by a business User during agreed business hours.
SERVICE 1 % availability of services >66 <33 99.61 82.77 97.49 90.30 82.21 20.72
SERVICE 2 % availability of services >66 <33 99.85 83.80 98.54 90.72 99.75 100.00
SERVICE 3 % availability of services >66 <33 99.48 96.83 99.61 90.72 100.00 100.00
SERVICE 4 % availability of services >66 <33 99.31 63.20 97.93 90.72 99.75 100.00
SERVICE 5 % availability of services >66 <33 99.19 78.40 97.96 90.72 99.74 22.73
Reliability - Number of Critical/High priority incidents reported
SERVICE 1 # Crit/High Incidents closed per period <2 >5 2.00 6.00 5.00 4.00 5.00 2.00
SERVICE 2 # Crit/High Incidents closed per period <2 >5 1.00 4.00 3.00 3.00 1.00 -
SERVICE 3 # Crit/High Incidents closed per period <2 >5 1.00 3.00 1.00 3.00 - -
SERVICE 4 # Crit/High Incidents closed per period <2 >5 2.00 7.00 4.00 3.00 1.00 -
SERVICE 5 # Crit/High Incidents closed per period <2 >5 3.00 4.00 3.00 3.00 1.00 1.00
SLA Breach- Number of outages during critical business service time windows
SERVICE 1 # Customer SLA breaches per period <2 >5 - - - - - -
SERVICE 2 # Customer SLA breaches per period <2 >5 - 2.00 2.00 1.00 1.00 -
SERVICE 3 # Customer SLA breaches per period <2 >5 - 2.00 - 1.00 - -
SERVICE 4 # Customer SLA breaches per period <2 >5 1.00 5.00 2.00 1.00 - -
SERVICE 5 # Customer SLA breaches per period <2 >5 1.00 3.00 2.00 1.00 1.00 1.00

33. Story # 3 - GameOn
GameOn Repatriates Service
Desk to Reduce Waste (muda),
Improve Service & reduce TCO
33

34. GameOn Outsources Service Desk
GameOn is in the gaming / betting
business. GameOn outsourced
Service Desk to low cost service
provider in effort to reduce operational
costs.

35. GameOn IT Health Check Finds Growing Problems
in Support Delivery
Annual IT checkup finds a growing
problem. Users dissatisfied with new
service desk. Internal Tier II user
support effort significantly higher.

36. Root Cause Indicates Dispatch vs. Resolve
Model
Analysis determines low 1st call
resolution, most calls are dispatched to
internal Tier II because of security
clearance policy/constraints.
This causes delay and increases
support costs.

37. GameOn Insources Service Desk
GameOn repatriates service desk
using ITIL best practices.
Subsequent IT control check verifies
best decision.

38. Lean thinking helps GameOn provide more
value less cost by reducing waste
1. Strategy & Tactics 2. Identify waste
3. Improvement 4. Control

39. How to Build Your Dream Team
Support
Operations
Security
Applications
Sponsor
Kaizen
Lead
In order to solve a problem using kaizen,
we must accept that the problem is not
solvable by an individual; that it is only with
the power of a diversity of points of view
that the problem will be adequately
addressed.

40. How to Learn More: LITA Supports
(4) Distinct Certifications

41. 41
Watch Webinar Recording
Webinar Recording
Lean Continual Service
Improvement “Driving
Change Enablement”

42. Questions?

43. Contact Us
David Smith
President
Micromation Inc.
david-smith-064a14
info@micromationinc.com
www.micromationinc.com
Deborah Burton
Member Marketing Team
Lean IT Association
(LITA)

44. 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.
44
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