Banishing Waste and

Delivering Value

in Your BCM Program

Session B19: Milen Kutev, MBCP, SCPM, PMP

British Columbia Automobile Association / BCAA

Lean Times Require

Lean Thinking

more than 25 years program &

project delivery

active member of the PMI Lean

Program Management CoP

editor for PMI’s Standard for

Program Management – 3 ed

last 10 years primary managing

BCM/DRP/ERM programs

Why am I talking today ?

Business Continuity: capability of the organization to

continue delivery of products or services at acceptable

predefined levels following disruptive incident

Stakeholder (Interested Parties): any group or individual

that can affect or that is affected by the achievement of

the enterprise’s objectives.

BCM Program Objective: building organizational

resilience with the capability of an effective response

that safeguards the interests of its key stakeholders,

reputation, brand and value-creating activities

Let’s set the baseline (ISO 22300 definitions)

Capabilities

Confidence

Competencies

What are the biggest challenges for you?

Source: The guide to Lean Enablers…

So, what is Lean thinking anyway?

a set of concepts,

principles and tools

used to create and

deliver the most value

from the customer’s

perspective, while

consuming the fewest

resources and

fully utilizing the skills

and knowledge of those

who do the work.

PURPOSE

PROCESS

PEOPLE

Customers / Stakeholders

Value

Value Stream

Flow

Pull

Perfection

Respect

Value: particular worth, utility, benefit, or reward that stakeholders

expect in exchange for their respective contributions (resource &

money) to the enterprise.

Customer: refers to those which are immediately in the downstream

from you. It may be internal customers or external customers or end

beneficiary.

(Extended) Enterprise: a complex, integrated, and interdependent

system of people, processes, and technology that creates value as

determined by its key stakeholders (including partners, vendors,

regulators and customers).

Learn the new Lean words

based on: MIT´s Lean Advancement Initiative LEM

1. CAPTURE THE VALUE DEFINED

BY THE KEY STAKEHOLDERS

Lean principles and enablers for BCM programs

Stakeholders

Value

Value Stream

Flow

Pull

Perfection

Respect

…This discussion demonstrated the continuing

difficulty of distinguishing between metrics relating

to value and metrics relating to compliance,

completeness, and effectiveness, which serve

different purposes.

It raises a question in our minds as to whether

directly measuring value is feasible. Perhaps the

other metrics serve as indicators that value is being

delivered, even if they are not direct measures…

Do we agree what value is? Really ??

Source: BCI “The measurement of the value contribution of BCM” study 2012-2014

Think back from stakeholders needs

Source: ISO 22313-2012

Benefits & dependencies mapping

Based on: OGC Managing Successful Programmes, 2011

Project Output / Capability(e.g. new emergency

notification system- ENS)

Intermediate Benefits & Quick Wins(e.g. simplify notification process and

eliminate manual rosters)

Organizational Change(e.g. integrate ENS within IT

incident management)

Sustained Benefits(e.g. consistent and efficient notification and

escalation during regular and off-hours)

Strategic Objective(e.g. improve IT service

support & 24x7 availability)

enables prepare

to realize

enables

in turn

realizes

enables

help achieve

one or more

Let’s repeat, one more time:

satisfaction of needs (benefits) *

as defined by stakeholders

use of resources (contribution)

money, people, time,

energy, materials, contracts

Value

Based on: OGC Management of Value, 2012

* provided at the right time

at an expected quality

Focus only on activities that add value

There is nothing so

useless as doing well

that which should

not be done at all

Peter Druker

Establish the value and benefit of the program to the stakeholders

Prioritize benefits by strategic alignment and resource needs

Focus all program activities on the high priority benefits that the program intends to deliver

Assign responsibility and accountability for benefits realization

Frequently engage the stakeholders to assess the benefits throughout the program lifecycle

Develop high-quality program requirements among key stakeholders before to start

execution or RFP contracting

Clarify, derive and prioritize requirements early, often and proactively

Actively minimize the bureaucratic and compliance burden on the program and projects

Value – Lean enablers for you

2. OPTIMIZE THE VALUE STREAM

AND ELIMINATE WASTE

Lean principles and enablers for BCM programs

Stakeholders

Value

Value Stream

Flow

Pull

Perfection

Respect

Key Lean concepts: Muda, Mura, Muri

Picture Source – Toyota Motor Company Australia

activities that

do not add value

workload that is not

balanced; variability

work that creates

burden for the team

members or processes

Muda

Mura

Muri

What type of waste we produce?

• Delivering unnecessary or out-of-sync information

• Providing capacity that is in excess of the business requirementsOverproduction

• Adding unnecessary complexity in systems and processes

• Collecting the same data in several different steps; converting dataOverprocessing

• Large and long meetings, excessive email distribution lists

• Unnecessary hand-offs instead of continuous responsibilityMiscommunication

• Maintaining an overly complex set of policies, procedures, controls

• Creating eLearning library ten times larger than neededInventory

• Reworking deliverables due to changing requirements or scope

• Not updating documentation when changes or errors have been foundDefects / Rework

• Not doing anything with generated / suggested ideas

• Delegating tasks with inadequate trainingUnused expertise

• Wasted time waiting for the next step in a process (hand-off / approval)

• Calls not returned; waiting for clarification or informationWaiting

• Obtaining information by walking up and down the hallway

• Travelling to meetings; off-site trainingTransportation

Map the value streams and eliminate non-value added elements

Actively manage dependencies to optimize program performance

Build in transparency and accountability

Pursue multiple solution sets / alternatives in parallel

Develop a distributed, collaborative BCM organizational model

Ensure up-front that capabilities exist to deliver program requirements

Front-load and integrate the program with existing functions

Work with suppliers to proactively avoid conflict and mitigate program risk

Develop a program schedule at the level of detail for which you have dependable information

Value Stream – Lean enablers for you

3. FLOW THE WORK THROUGH

STREAMLINED PROCESSES

Lean principles and enablers for BCM programs

Stakeholders

Value

Value Stream

Flow

Pull

Perfection

Respect

So what is flow?

flow of Information

flow of Power and Control

flow of Resources

flow of Work-In-Progress

flow of Partner's services

It’s sounds easy enough to understand, right?

look for

stops, delays,

constrains,

re-do

How to optimize the flow?

standardizing procedures

setting a common tempo

eliminating loop-backs

balancing workloads

make your choices and

commitments at the last

responsible moment

focus on integration, transparency and collaboration

blueprint

vision time

box

challenges

value

time

box

challenges

value

time

box

challenges

value

time

box

challenges

value

blueprint

vision time

box

challenges

value

needs needs

metrics metrics

What’s wrong with targets & milestones ?

If you have a stable system, then there is no use to

specify a goal. You will get whatever the system

will deliver.

If you have not a stable system, then there is again

no point in setting a goal. There is no way to know

what the system will produce: it has no capability.

W. Edwards Deming

Segregating complexity: iterative or incremental

Pictures source – Jeff Patton

we incrementally add components piece by piece

we iterate to find the right solution

Make your choices and commitments at the last responsible moment

Identify and evaluate all alternatives as soon as possible

Ensure clear responsibility, accountability and authority

Standardize the work to reduce variations in processes and performance

Make performance visible to balance capacity and improve accountability

Use a program manager role to lead and integrate program from start to finish

The one who executes the work is the one who plans the work

Pursue collaborative and inclusive decision making that resolves the root causes of issues

Flow – Lean enablers for you

4. LET STAKEHOLDERS

PULL VALUE

Lean principles and enablers for BCM programs

Stakeholders

Value

Value Stream

Flow

Pull

Perfection

Respect

Pull – some advice from Steve Jobs

If you are working on

something exciting that

you really care about, you

don't have to be pushed.

The vision pulls you.

Steve Jobs

Pull tasks and outputs based on need, and reject others as waste

Promote effective real time direct communication between each Giver and Receiver in the

value flow

Implement a Pull system to manage "work in progress" such that resources are kept

continually employed but not “over-worked

Make “work in progress” and existing demand (tasks backlog) visible for everyone

Promote the culture in which people pull knowledge as they need it and limit the supply

of information to genuine users only

Establish effective contracting vehicles in the program that create effective pull for value

from external stakeholders

Pull – Lean enablers for you

5. PURSUE PERFECTION IN ALL

PROCESSES

Lean principles and enablers for BCM programs

Stakeholders

Value

Value Stream

Flow

Pull

Perfection

Respect

Standardized tasks are the

foundation for continuous

improvement and employee

empowerment

Continuously solving root

problems drives

organizational learning

Perfection by quality and continuous improvement

Pla

nD

oC

he

ck

Ac

t

Clarify the Problem

Break Down the Problem

Define Future State and Gaps

Root Cause Analysis

Develop Corrective Actions

See Corrective Actions Through

Monitor both Results and Processes

Standardize Successful Processes

Problems – some advice from Ohno San

“No one has more trouble, than the person who claims to have no trouble.”

Having no problems is the biggest problem of all

Taiichi Ohno

Make effective use of existing program management and organizational resiliency standards

Make anomalies, incidents and problems jump out in the process of performing the work

Strive for excellence, to get quality right the first time

Use change management effectively to continually and pro-actively align the program with

unexpected changes in the environment

Proactively manage uncertainty and risk to maximize program benefits and sustainable

capabilities

Strive for perfect communication, coordination and collaboration across people and

processes

Promote continuous improvement methods to draw best energy and creativity from all

stakeholders

Perfection – Lean enablers for you

6. TREAT PEOPLE AS YOUR

MOST IMPORTANT ASSET

Lean principles and enablers for BCM programs

Stakeholders

Value

Value Stream

Flow

Pull

Perfection

Respect

People make the difference

enabling

front line

staff to

unblock

the flow of

value

creation

developing

their

capabilities

through

mentored

learning by

doing

everyone learns to use the continuous improvement approach

solve business problems in their specific context

follow me and let’s

figure this out together

Go and See

Ask five Why’s

Show Respect

Based on: John Shook, LEI

We build people before

we build cars (Toyota)

Build a program culture based on respect for people

Motivate by making the higher purpose of the program and program elements transparent

Design processes in a way that participants see opportunities for learning

Expect and support people in their strive for professional excellence and promote their

careers

Encourage personal networks and interactions

Promote the ability to rapidly learn and continuously improve

Support an autonomous working style

Respect – Lean enablers for you

Watch Dan Pink at YouTube

Picture Source – danpink.com & RSA

solve specific business problems

by developing the capabilities

to improve the flow of work

enabled by leaders showing clear direction

and asking questions

and believing that the organization is never

done, always striving to improve

In summary – the Lean BCM path

Based on: John Shook, LEI

Internet resources for additional information

Lean in Program Management Community of

Practice (PMI / INCOSE / MIT)

Encyclopedia of Lean Enablers for Managing

Engineering Programs (MIT-CEPE)

Lean Management Enterprise Compendium

(McKinsey & Company)

The Lean Enterprise Institute (LEI)

American Productivity & Quality Center (APQC)

The Lean Enterprise Academy (UK)

Envision a better

future

Question value of

every activity

Solve problems

together

Pull people out of

their boxes

Slow down to

speed up

To continue your Lean journey, it is essential to keep asking questions

thanks for listening!

get in touch if you want to discuss further:

milen.kutev@gmail.com

ca.linkedin.com/in/milenkutev

The last slide