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Capgemini Consulting          the way we do it




                         How to implement Lean
                         successfully and deliver
                         results that last
                         A people-centred approach to              through employee involvement and
                         implementing Lean is helping              continuous improvement, always with
                         Capgemini clients achieve                 a focus on the customer’s definition of
                         sustainable results: a 20%                value.
                         improvement in productivity is
                         within your grasp.                        Lean’s most appealing aspect is the
                                                                   promise of improved efficiency
A new approach had       Companies are under constant              without negative customer impact.
                         pressure to deliver the right customer    Even the most efficient companies still
become essential in      experiences alongside maximum             have room to eliminate waste. Indeed,
order to shift Lean      efficiency. Customers rightly expect      Toyota, founder of modern Lean
                         everything to be cheaper, faster and      thinking, accepts that over 70% of its
Thinking into a modern   better; organisations therefore need to   own activity can still be categorised as
                         use all the means at their disposal to    waste.
and service oriented
                         become more customer focused and at
environment              the same time leaner.

                         The methodology named Lean offers
                         to help companies achieve exactly that
                         transformation. Lean optimises
                         workflow and eliminates waste
Tailoring Lean for success                                     worker who is best placed to improve                             ■   Process—The motto here is ‘do the
At present, some justified scepticism                          the process; the manager is a servant                                right work’: that is, only do what
surrounds Lean. Certain organisations                          of the worker, improving the wider                                   adds value in the eyes of the
have attempted to transplant a Lean                            organisation to facilitate what the                                  customer. For example, customers
approach from manufacturing to the                             workers would like to do. Because                                    would not want to pay for
service sector in a compartmentalised                          this idea appears to go against                                      transporting documents between
and minimised way, and                                         Western-style organisational                                         buildings, or for handing off an
disappointment has followed, as in                             hierarchies, it is sometimes greeted                                 application to another department
the infamous ‘black tape and active                            with scepticism.                                                     (with the delays that implies); that
banana’ stories that hit the UK press                                                                                               type of work can often be eliminated
in early 20071.                                                The Capgemini approach overcomes                                     first
                                                               any such resistance, because we work                             ■   People—‘Do the work right’: that is,
Capgemini’s approach to Lean                                   with people at all levels of the                                     ensure staff are fully trained,
incorporates three related principles                          organisation to explain BeLean™                                      motivated, and genuinely
that can help clients avoid these                              thinking and implement the                                           empowered to make appropriate
pitfalls:                                                      behavioural change it implies.                                       changes. It is better to identify
                                                               Employees on the front line are given                                missing skills and then ensure
1Lean must bring about behavioural                             the motivation, tools, and freedom to                                effective training than to give ‘must
 change                                                        make sensible improvements to their                                  do better’ pep talks. Knowledge
                                                               daily work. At last, they feel                                       transfer from our team to the client
It follows that:
                                                               ownership and a sense of                                             begins from day one of all our
2Lean must be tackled holistically,                            contribution.                                                        engagements. If required BeLean™
 focusing on people and organisation                                                                                                deployment is also an accreditation
 as well as processes                                          We show managers how to stop                                         pathway for your staff because it
                                                               micro-measuring performance and                                      enables individuals to achieve
and that:
                                                               look instead at the bigger picture.                                  nationally recognised lean
3Deployment must be progressive –                              Because they are now aiming to                                       qualifications.
 it must happen level by level,                                improve the end-to-end process, the
 according to a coherent roadmap.                              managers start to deal with the wider
                                                                                                                                ■   Organisation— ‘Manage the right
                                                               organisational issues that currently                                 way’: that is, support the people who
Adopting these three principles makes                          prevent the worker from achieving                                    operate the process with the right
Lean a means to achieving                                      continuous improvement. For                                          measurements, technology,
sustainable results – whether                                  example, the team leaders and                                        recognition, and organisational
financial, operational, cultural or all of                     management of a customer contact                                     structure. Measurements should help
these. We call this approach                                   centre become less concerned with                                    teams to understand their
‘BeLean™’.                                                     the number of calls processed by                                     achievements in terms of what the
                                                               agents and instead rightly focus on                                  customer needs. For example, in our
Achieving behavioural change                                   the root causes of the call volumes,                                 customer contact centre, does
Past attempts to implement Lean have                           and on how repeat calls can be                                       ‘average call time’ really help us
often paid insufficient attention to the                       reduced.                                                             improve our customers’ experience?
human aspect. Especially for service                                                                                                Surely ‘number of calls resolved on
organisations, the customer                                                                                                         first contact’ would be a more
experience is determined largely by                            Tackling lean holistically                                           effective measure of performance?
customers’ interaction with the staff,                         To achieve the necessary behavioural
so that effectively the people are the                         changes, it is necessary to consider                             The holistic approach makes for
process. In our experience, 80% of                             process, people and organisation                                 sustainable results because the three
Lean benefits result from changes to                           together (figure 1).                                             strands reinforce each other rather
people and only 20% from tools and                                                                                              than conflicting, as can happen if
techniques. It is behavioural change                           More common Lean approaches focus                                process is changed without sufficient
that really makes a BeLean™                                    on applying tools and techniques to                              attention to people and organisation.
implementation sustainable.                                    processes, to the exclusion of all else.                         Our aim is to make every worker
                                                               By contrast, the Capgemini BeLean™                               think: ‘I feel fully competent to do my
Certain behavioural aspects of Lean                            approach works across all three areas.                           job, I see that my manager supports
are somewhat counterintuitive. In                                                                                               me, and I have the motivation to
particular, Lean assumes that it is the                                                                                         make it even better.’

1 See for example “The £7 million guide to a tidy desk”, The Times, January 5 2007 http://www.timesonline.co.uk/tol/news/uk/article1289640.ece.



2
Capgemini Consulting                                    the way we do it




Deploying progressively                             Figure 1: Behavioural change requires a holistic approach
Sustainable results are a consequence
of behavioural change, which does
not happen overnight. Therefore it is                                                                    Sustainable
clear that a progressive approach to                                                                       Results
deployment – taking one level at a
time - will build a stronger result.                                                                               via
                                                                                                         Behavioural
A roadmap is required, and so we                                                                          Change
recommend thinking about BeLean™
in terms of the two levels shown in
figure 2:

1 Taking control: quick wins to create                                      Process                        People                        Organisation
  momentum and build a foundation                                           Do the right                 Do the work                     Manage the right
                                                                               work                         right                             way
  of basic capability from which to
  progress
2 Creating excellence: delivering
  transformational results, embedding
  the Lean culture into the new
                                                    Figure 2: Two levels of BeLean™ deployment
  business
There are several reasons for
visualising BeLean™ as a pyramid.                                                                                  The BeLean™
                                                                                                                     Enterprise
One is that pyramids are built
systematically from the bottom up:                                                                    Continuous                     Lean
                                                                                                     Improvement                 Performance
starting at the top is certainly not                                                                   Culture                   Management

practical. Similarly, with BeLean™, it           Generation II                                  Lean                   Asset              Organisational
                                                Creating Excellence                            Design                Integrity               Design
is best to build the people, process                                                        Programmes              Excellence             Excellence
and organisation blocks within a                                                 System              Optimised            Model Site Creation            Quality
                                                  Generation I
single level before shifting one’s                   Taking
                                                                                 Demand
                                                                                Reduction
                                                                                                     Flow & Pull
                                                                                                      Systems
                                                                                                                           & Best Practice
                                                                                                                           Standardisation
                                                                                                                                                       Assurance
                                                                                                                                                        Systems
                                                     Control
priorities to blocks in the next level.
                                                                          Waste                    Leadership                       Stakeholder                  Operational
                                                                       Elimination                  Vision &                       Engagement &                 Measurement &
                                                                      Programmes                   Behaviours                     Communications                  Reporting
A common mistake is to keep
working on one aspect – typically                        Value Stream
                                                          Mapping &
                                                                                       Voice of
                                                                                         the
                                                                                                                   5S
                                                                                                                 Visible
                                                                                                                                         Lean Practitioner
                                                                                                                                            Training &
                                                                                                                                                                       Lean
                                                                                                                                                                      Centre of
process – without addressing the                          Baselining                  Customer                  Workplace                    Toolbox                 Excellence

related people and organisation issues.
                                                                                                    Process              People            Organisation
Changing the process flow without an
equal emphasis on staff buy-in, or on
metrics to support the new process, is
generally disastrous.

Like a pyramid, a BeLean™
implementation should be built to
last. Among other things, this means
that even when the top is reached, it
is still necessary to keep maintaining
the foundations to prevent unseen
erosion.

All successful BeLean™ programmes
create a culture of continuous
improvement – a legacy that enables
the organisation to respond to
subsequent changes in market
conditions.



How to implement Lean successfully and deliver results that last                                                                                                                  3
www.uk.capgemini.com




                                          Implementing Lean with                         sustainable results that can be
                                          Capgemini Consulting                           financial, operational, or cultural, or
                                          A Capgemini-led BeLean™                        often all of these.
                                          implementation is ideally
                                          organisation-wide, but can also be             Capgemini has demonstrated success
                                          undertaken on a smaller scale, for             with this approach to Lean delivery. In
                                          example within a chosen function,              a major public sector programme that
                                          and scaled-up thereafter.                      we undertook recently, we
                                                                                         collaborated with a complex and
                                          BeLean™ capability building for your           sizeable government department to
                                          organisation is so important that we           change behaviours with a view to
                                          are the only organisation of our kind          achieving sustainable results. In the
                                          to deliver a formal lean accreditation         areas where we delivered Lean,
                                          up to degree level.                            productivity improvements were
                                                                                         identified as in excess of 20% -
                                          A BeLean™ engagement normally                  conclusive evidence of BeLean’s™
                                          consists of two phases, diagnosis and          dramatic impact on ways of working,
                                          deployment. The diagnostic phase is            efficiency and customer experience.
                                          valuable because it helps to ensure
                                          that BeLean™ is implemented in a               We will continue to work with the
                                          way that makes sense for the specific          client to extend this approach across
                                          organisation. By taking a close look at        the whole department, making a
                                          the organisation and its market first,         difference to 100,000 staff and its
                                          we can customise our approach to               customers.
                                          address the most pressing needs of the
                                          marketplace, and to help the                   As one staff member commented after
                                          organisation achieve its strategy.             experiencing BeLean™, “I have much
                                                                                         more pride in my work now. I just
                                          We tailor our approach for each                wish I could bottle the positive
                                          organisation so as to achieve                  atmosphere in this office”.



                                                            About Capgemini and the
                                                            Collaborative Business Experience®

                                                            Capgemini, one of the        Capgemini Consulting is the Strategy and
                                                         world’s foremost providers      Management Consulting division of the
                                           of consulting, technology and outsourcing     Capgemini Group, employing 5,000
                                           services, enables its clients to transform    consultants worldwide. Leveraging its
                                           and perform through technologies.             deep sectorial and business expertise,
                                           Capgemini provides its clients with           Capgemini Consulting advises and
                                           insights and capabilities that boost their    supports organisations in transforming
For further information, please contact    freedom to achieve superior results           their business, from strategy through to
                                           through a unique way of working —the          Execution. Capgemini Consulting delivers
Jeff Patton                                Collaborative Business Experience®—           successful outcomes by working side by
Vice President                             and through a global delivery model           side with clients to identify the best
Email: Jeff.Patton@capgemini.com           called Rightshore®, which aims to offer       solutions to critical business challenges.
Tel: +44 (0) 870 238 2300                  the right resources in the right location
                                           at competitive cost.                          For more information please visit:
                                                                                         www.uk.capgemini.com/services/
                                           Present in 36 countries,Capgemini             consulting
Paul Donnellan
Executive Consultant                       reported 2007 global revenues of EUR 8.7
Email: Paul.Donnellan@capgemini.com        billion and employs over 83,500 people
Tel: +44 (0) 870 906 7781                  worldwide.




                                          Copyright © 2008 Capgemini. All rights reserved.

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How to implement_lean_successfully_and_deliver_results_that_last

  • 1. Capgemini Consulting the way we do it How to implement Lean successfully and deliver results that last A people-centred approach to through employee involvement and implementing Lean is helping continuous improvement, always with Capgemini clients achieve a focus on the customer’s definition of sustainable results: a 20% value. improvement in productivity is within your grasp. Lean’s most appealing aspect is the promise of improved efficiency A new approach had Companies are under constant without negative customer impact. pressure to deliver the right customer Even the most efficient companies still become essential in experiences alongside maximum have room to eliminate waste. Indeed, order to shift Lean efficiency. Customers rightly expect Toyota, founder of modern Lean everything to be cheaper, faster and thinking, accepts that over 70% of its Thinking into a modern better; organisations therefore need to own activity can still be categorised as use all the means at their disposal to waste. and service oriented become more customer focused and at environment the same time leaner. The methodology named Lean offers to help companies achieve exactly that transformation. Lean optimises workflow and eliminates waste
  • 2. Tailoring Lean for success worker who is best placed to improve ■ Process—The motto here is ‘do the At present, some justified scepticism the process; the manager is a servant right work’: that is, only do what surrounds Lean. Certain organisations of the worker, improving the wider adds value in the eyes of the have attempted to transplant a Lean organisation to facilitate what the customer. For example, customers approach from manufacturing to the workers would like to do. Because would not want to pay for service sector in a compartmentalised this idea appears to go against transporting documents between and minimised way, and Western-style organisational buildings, or for handing off an disappointment has followed, as in hierarchies, it is sometimes greeted application to another department the infamous ‘black tape and active with scepticism. (with the delays that implies); that banana’ stories that hit the UK press type of work can often be eliminated in early 20071. The Capgemini approach overcomes first any such resistance, because we work ■ People—‘Do the work right’: that is, Capgemini’s approach to Lean with people at all levels of the ensure staff are fully trained, incorporates three related principles organisation to explain BeLean™ motivated, and genuinely that can help clients avoid these thinking and implement the empowered to make appropriate pitfalls: behavioural change it implies. changes. It is better to identify Employees on the front line are given missing skills and then ensure 1Lean must bring about behavioural the motivation, tools, and freedom to effective training than to give ‘must change make sensible improvements to their do better’ pep talks. Knowledge daily work. At last, they feel transfer from our team to the client It follows that: ownership and a sense of begins from day one of all our 2Lean must be tackled holistically, contribution. engagements. If required BeLean™ focusing on people and organisation deployment is also an accreditation as well as processes We show managers how to stop pathway for your staff because it micro-measuring performance and enables individuals to achieve and that: look instead at the bigger picture. nationally recognised lean 3Deployment must be progressive – Because they are now aiming to qualifications. it must happen level by level, improve the end-to-end process, the according to a coherent roadmap. managers start to deal with the wider ■ Organisation— ‘Manage the right organisational issues that currently way’: that is, support the people who Adopting these three principles makes prevent the worker from achieving operate the process with the right Lean a means to achieving continuous improvement. For measurements, technology, sustainable results – whether example, the team leaders and recognition, and organisational financial, operational, cultural or all of management of a customer contact structure. Measurements should help these. We call this approach centre become less concerned with teams to understand their ‘BeLean™’. the number of calls processed by achievements in terms of what the agents and instead rightly focus on customer needs. For example, in our Achieving behavioural change the root causes of the call volumes, customer contact centre, does Past attempts to implement Lean have and on how repeat calls can be ‘average call time’ really help us often paid insufficient attention to the reduced. improve our customers’ experience? human aspect. Especially for service Surely ‘number of calls resolved on organisations, the customer first contact’ would be a more experience is determined largely by Tackling lean holistically effective measure of performance? customers’ interaction with the staff, To achieve the necessary behavioural so that effectively the people are the changes, it is necessary to consider The holistic approach makes for process. In our experience, 80% of process, people and organisation sustainable results because the three Lean benefits result from changes to together (figure 1). strands reinforce each other rather people and only 20% from tools and than conflicting, as can happen if techniques. It is behavioural change More common Lean approaches focus process is changed without sufficient that really makes a BeLean™ on applying tools and techniques to attention to people and organisation. implementation sustainable. processes, to the exclusion of all else. Our aim is to make every worker By contrast, the Capgemini BeLean™ think: ‘I feel fully competent to do my Certain behavioural aspects of Lean approach works across all three areas. job, I see that my manager supports are somewhat counterintuitive. In me, and I have the motivation to particular, Lean assumes that it is the make it even better.’ 1 See for example “The £7 million guide to a tidy desk”, The Times, January 5 2007 http://www.timesonline.co.uk/tol/news/uk/article1289640.ece. 2
  • 3. Capgemini Consulting the way we do it Deploying progressively Figure 1: Behavioural change requires a holistic approach Sustainable results are a consequence of behavioural change, which does not happen overnight. Therefore it is Sustainable clear that a progressive approach to Results deployment – taking one level at a time - will build a stronger result. via Behavioural A roadmap is required, and so we Change recommend thinking about BeLean™ in terms of the two levels shown in figure 2: 1 Taking control: quick wins to create Process People Organisation momentum and build a foundation Do the right Do the work Manage the right work right way of basic capability from which to progress 2 Creating excellence: delivering transformational results, embedding the Lean culture into the new Figure 2: Two levels of BeLean™ deployment business There are several reasons for visualising BeLean™ as a pyramid. The BeLean™ Enterprise One is that pyramids are built systematically from the bottom up: Continuous Lean Improvement Performance starting at the top is certainly not Culture Management practical. Similarly, with BeLean™, it Generation II Lean Asset Organisational Creating Excellence Design Integrity Design is best to build the people, process Programmes Excellence Excellence and organisation blocks within a System Optimised Model Site Creation Quality Generation I single level before shifting one’s Taking Demand Reduction Flow & Pull Systems & Best Practice Standardisation Assurance Systems Control priorities to blocks in the next level. Waste Leadership Stakeholder Operational Elimination Vision & Engagement & Measurement & Programmes Behaviours Communications Reporting A common mistake is to keep working on one aspect – typically Value Stream Mapping & Voice of the 5S Visible Lean Practitioner Training & Lean Centre of process – without addressing the Baselining Customer Workplace Toolbox Excellence related people and organisation issues. Process People Organisation Changing the process flow without an equal emphasis on staff buy-in, or on metrics to support the new process, is generally disastrous. Like a pyramid, a BeLean™ implementation should be built to last. Among other things, this means that even when the top is reached, it is still necessary to keep maintaining the foundations to prevent unseen erosion. All successful BeLean™ programmes create a culture of continuous improvement – a legacy that enables the organisation to respond to subsequent changes in market conditions. How to implement Lean successfully and deliver results that last 3
  • 4. www.uk.capgemini.com Implementing Lean with sustainable results that can be Capgemini Consulting financial, operational, or cultural, or A Capgemini-led BeLean™ often all of these. implementation is ideally organisation-wide, but can also be Capgemini has demonstrated success undertaken on a smaller scale, for with this approach to Lean delivery. In example within a chosen function, a major public sector programme that and scaled-up thereafter. we undertook recently, we collaborated with a complex and BeLean™ capability building for your sizeable government department to organisation is so important that we change behaviours with a view to are the only organisation of our kind achieving sustainable results. In the to deliver a formal lean accreditation areas where we delivered Lean, up to degree level. productivity improvements were identified as in excess of 20% - A BeLean™ engagement normally conclusive evidence of BeLean’s™ consists of two phases, diagnosis and dramatic impact on ways of working, deployment. The diagnostic phase is efficiency and customer experience. valuable because it helps to ensure that BeLean™ is implemented in a We will continue to work with the way that makes sense for the specific client to extend this approach across organisation. By taking a close look at the whole department, making a the organisation and its market first, difference to 100,000 staff and its we can customise our approach to customers. address the most pressing needs of the marketplace, and to help the As one staff member commented after organisation achieve its strategy. experiencing BeLean™, “I have much more pride in my work now. I just We tailor our approach for each wish I could bottle the positive organisation so as to achieve atmosphere in this office”. About Capgemini and the Collaborative Business Experience® Capgemini, one of the Capgemini Consulting is the Strategy and world’s foremost providers Management Consulting division of the of consulting, technology and outsourcing Capgemini Group, employing 5,000 services, enables its clients to transform consultants worldwide. Leveraging its and perform through technologies. deep sectorial and business expertise, Capgemini provides its clients with Capgemini Consulting advises and insights and capabilities that boost their supports organisations in transforming For further information, please contact freedom to achieve superior results their business, from strategy through to through a unique way of working —the Execution. Capgemini Consulting delivers Jeff Patton Collaborative Business Experience®— successful outcomes by working side by Vice President and through a global delivery model side with clients to identify the best Email: Jeff.Patton@capgemini.com called Rightshore®, which aims to offer solutions to critical business challenges. Tel: +44 (0) 870 238 2300 the right resources in the right location at competitive cost. For more information please visit: www.uk.capgemini.com/services/ Present in 36 countries,Capgemini consulting Paul Donnellan Executive Consultant reported 2007 global revenues of EUR 8.7 Email: Paul.Donnellan@capgemini.com billion and employs over 83,500 people Tel: +44 (0) 870 906 7781 worldwide. Copyright © 2008 Capgemini. All rights reserved.