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805: Turbocharge Service Management Through Lean and Agile Thinking Jonathan Hinkle VP, Director of Information Technology First Fidelity Bank
805: Turbocharge Service Management Through Lean and Agile ThinkingJonathan Hinkle
VP, Director of Information Technology
First Fidelity Bank
Agenda and Objectives• Tell the story of our Lean IT Journey…
• Develop a practical understanding of Lean in IT
• Understand how Lean, Kanban, KCS, and Agile intersect to improve Service Management
• Roadblocks and Pitfalls to avoid
• Walk away with an approach to turbocharge your team on the road to Continuous Improvement
American Fidelity• Founded in 1960, American Fidelity provides a different
opinion for Customers in the Education, Auto, Healthcare and Municipal industries
• Specialists in supplemental benefits for our niche markets through:– Disability Insurance– Life Insurance– Medical Excess Insurance– Annuities– Employer Administrative Services
• Nearly 2,000 Colleagues serving more than 1 million Customers
So, a lot happened in 2011…
• My Son was born
• Read The Goal by Eliyahu Goldratt
• Read The New Rational Manager by Charles H. Kepner and Benjamin B. Tregoe
• Accepted the Support Center Manager position at American Fidelity
We have a problem…
Helpless Desk• Not respected – commonly called the helpless desk• Little to no standardized work• Didn’t answer phone calls, only Voice Mails• Only other way was E-Mail• Each agent had over 100 open tickets• Hundreds of unassigned tickets in backlog• Average Time Open measured in months• Mean-Time-To-Resolution (MTTR) measured in months• First Level Resolution = 18%• I got A LOT of calls from angry people
Looked for Help
Discovered ITIL – bought the books and read them
Discovered HDI – became a member
Discovered Lean – “The Fiery Sword!”
Lean Manufacturing Historic Timeline
Lean is…• A systematic approach to identifying and eliminating
waste (non-value-added activities) through continuous improvement at the pull of the customer, in pursuit of perfection.
• Lean applies to IT
• IT manufactures solutions
Before Lean implementation, up to 98% of all lead time may be non-value added
Two Types of Activity
Value-Add is…• Any activity that increases the
market form or function of the product or service
• Things the Customer is willing to pay for
Non-Value-Added (Waste)• Any activity that consumes resources
but creates no value to the product or service and is more than the Minimum amount of…– Process
– Labor
– Materials
– Space
– Equipment
Who is your customer?
The Eight Wastes of Lean
• Defects
• Overproduction
• Waiting
• Not Utilizing People
• Travel
• Inventory
• Motion
• Excess Processing
DOWNTIME
Lean Tools
Create Charter
Form Team
Lean 101
Review Current State
Map
Pain Brainstorming
DOWNTIME Exercise
Solutions Brainstorming
MetricsFuture State
Map
Lean Tools Used
Action Plan
Celebration!
Champion
Process Owner
Value Stream Mapping
Duration = 5 Business Days
Daily Debrief for Stakeholders
Start
How we conduct Lean (Kaizen) Events
Current State Map
Start
Create Charter
Form Team
Lean 101
Review Current State
Map
Pain Brainstorming
DOWNTIME Exercise
Solutions Brainstorming
MetricsFuture State
Map
Lean Tools Used
Action Plan
Celebration!
Champion
Process Owner
Value Stream Mapping
Duration = 5 Business Days
Daily Debrief for Stakeholders
Start
How we conduct Lean (Kaizen) Events
Future State Map
Start
Create Charter
Form Team
Lean 101
Review Current State
Map
Pain Brainstorming
DOWNTIME Exercise
Solutions Brainstorming
MetricsFuture State
Map
Lean Tools Used
Action Plan
Celebration!
Champion
Process Owner
Value Stream Mapping
Duration = 5 Business Days
Daily Debrief for Stakeholders
Start
How we conduct Lean (Kaizen) Events
Lean Event Core Team
2011 – First Support Center Lean
Lean Tools Used
5S SYSTEM• SORT• SET IN ORDER• SHINE• STANDARDIZE• SUSTAIN
Results
• Reduced active assigned Incidents (From 100 to about 15 per analyst)
• Support Center Playbook
• Clear metrics
• Visual Dashboard
• Team cohesiveness improved!
• MTTR = 8 Days
• First Level Resolution = increased from 18% to 32%!
• Average Speed to Answer Now Measurable (ASA) = 20 minutes
2012 – The year of the Lean Sieges
• Support Center (Subject Matter Expert) Lean
• Change Requestor Notification Lean
• Mainframe Change Lean
• Temp/Contractor Onboarding Lean
“Any improvements made anywhere
besides the bottleneck are an illusion.”
The Phoenix Project
“The Three Ways”
• System Thinking
• Feedback
• Experimentation
The Phoenix Project
New IT Service Management Tool
ITIL
Fra
mew
ork
ad
op
tio
n
Incident
Problem
Request
Change
Knowledge
2013: The Year of the Phoenix
Incident Management Lean
Change Management Lean
New Colleague Onboarding Lean
2014: Systems Thinking
2014 – MetricNet Benchmark
2015 - Bring the Feedback…back
Kanban Boards Knowledge Centered Support
Limit Work in Progress (WIP)
Over
While there is value in the items on the right,
we value the items on the left more
2016 – Agile Service Management
• Individuals and Interactions
• Working Software
• Customer Collaboration
• Responding to Change
• Processes and tools
• Comprehensive documentation
• Contract negotiations
• Following a plan
NO CHANGES ALLOWED!!
Agile Service Management
2016 – MetricNet Benchmark
Systems Thinking (TOC) tells you where
to focus
Lean removes waste from the process
Agile Service Management
sustains Continuous
Improvement
KCS creates the “Borg Hive
Mind”
Using the entire Toolkit
Organization Culture
Skimping on your Value
Stream
Technology Gap
Passive Executive Support
Roadblocks and Pitfalls
2017
ServiceNowImplementation
Enterprise Service
ManagementLean Six Sigma DevOps
2011
• ITIL
• Support Center Lean Part 1
2012
• Support Center Lean Part 2
• Change Requestor Notification Lean
• Mainframe Change Lean
• Temp/Contractor Onboarding Lean
2013
• The Phoenix Project
• New ITSM
• Service Management Adoption
2014
• Systems Thinking
• MetricNetBenchmark
• Incident Management Lean
• Change Management Lean
New Colleague Onboarding Lean
2015
• Kata Boards
• KCS
2016
• Limit WIP
• Agile Service Management
• MetricNetBenchmark
2017 – Continuous Improvement
Questions?
