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Principles of Lean Enterprise Transformation
University of Miami, College of EngineeringProf. Deborah Nightingale
Massachusetts Institute of TechnologyApril 19, 2012
Coral Gables, Florida
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 2University of Miami, College of Engineering, April 19, 2012
“Everybody wants to transform, but nobody
wants to change.”
- Frederica Mathewes-Green
VISIONSSRC is a vibrant, expanding
intellectual community of faculty, researchers, and
students with a shared interest in analyzing complex systems from a sociotechnical systems
perspective. SSRC’s efforts lead to the discovery of new insights and solutions to the
challenges our global community faces.
MISSION
SSRC seeks collaborative, holistic,
systems-based solutions to complex
sociotechnical challenges.
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 3University of Miami, College of Engineering April 19, 2012
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 4University of Miami, College of Engineering, April 19, 2012
Lean Advancement Initiative (LAI)
• Founded in 1993, LAI has evolved from a focus on lean processes and tools to holistic enterprise transformation and architecting
• Enables enterprises to effectively, efficiently, and reliably create value in complex and rapidly changing environments
• Works with international enterprises in multiple domains, including: automotive, aerospace, manufacturing, health care, and financial services
• International Educational Network (EdNet) with more than 70 member educational institutions around the world
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 5University of Miami, College of Engineering, April 19, 2012
Value Creation Framework
Value Identification
Value Proposition
Value Delivery
Value Phases
Identify the stakeholders
and their value expectations
Develop a robust value proposition
to meet the expectations
Deliver on the promise with
good technical and program performance Source: Lean Enterprise Value:
Insights from MIT’s Lean Aerospace Initiative, Murman,
et. al, 2002
LEAN ENTERPRISE:A lean enterprise is an integrated entity
that effectively and efficiently creates value for its multiple stakeholders.
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 6University of Miami, College of Engineering April 19, 2012
Enterprise Defined
Efficiency
Effectiveness
Adaptability
An enterprise is…
“…a complex, integrated, and interdependent system of people, processes, and
technology that creates value as determined by its key stakeholders.
An enterprise typically consists of
multiple organizations (e.g., suppliers, partners, regulators) rather than a
single corporation, division, or government unit.”
Amacon Press –Release: Aug. 2011
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 7University of Miami, College of Engineering April 19, 2012
Expanding Enterprise Focus
Shop Floor
Program
BusinessUnit
Enterprise
Extended Enterprise
Networked Enterprise
Apply Lean Thinking
Enterprise Transformation
Enterprise Architecting; Action Leadership
ESAT V.2
Journal of Enterprise Transformation
Healthcare
Change Agent Network
System of Systems
LESAT V.2ESAT
Knowledge Exchange Events
Leading Indicators Guide
Seven Principles
LESAT V.1
Transition to Lean RoadmapLean Enterprise Model
Enterprise Toolkit
Phase 6
Enterprise Transformation Roadmap
Lean Now
Phase 5
PDVSM
Supplier Network ToolsetGlobal Enterprises
Enabling Enterp
rise Excelle
nce
Phases 1-4
Aircraft Aerospace All Enterprises
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 8University of Miami, College of Engineering, April 19, 2012
Creating a Holistic Approach to Enterprise Transformation
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 9University of Miami, College of Engineering April 19, 2012
Source: D. Nightingale and J. Srinivasan, MIT 2010
6.Ensure
stability and flow within and across the
enterprise.
5.Address
internal and external enterprise
interdependencies.
4.Focus
on enterprise effectiveness before
efficiency.
3.Identify relevant
stakeholders and determine their value propositions.
2. Secure leadership
commitment to drive and institutionalize
enterprise behaviors.
1.Adopt a
holistic approach to enterprise
transformation.
7 Principles of Enterprise Transformation
7.Emphasize
organizational learning.
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 10University of Miami, College of Engineering April 19, 2012
• Why do most lean transformation activities fail?
• What are the key success factors in implementing lean
enterprise wide?
• How can we better assure that lean will impact bottom
line results?
• Are there certain activities that are ideally performed
before others?
• What is the role of senior leadership in assuring
success?
Enterprise Transformation Issues
Issues Motivated Development of Enterprise Transformation Roadmap
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 11University of Miami, College of Engineering, April 19, 2012
Creating a Holistic Approach to Enterprise Transformation
How do I transform my Enterprise?
Enterprise Transformation Roadmap
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 12University of Miami, College of Engineering April 19, 2012
• Improve the quality of thinking and awareness of Leaders on the challenge of transforming their enterprises
• Framework for cultural, organizational & change management considerations
• Provide enterprise leaders with a balanced decision aid to:
• Identify barriers to the creation/delivery of value to each stakeholder
• Specify a vision of their future lean enterprise
• Determine significant gaps between current and future states
• Prioritize opportunities for eliminating waste and increasing value deliver for the maximum benefit of the total enterprise
• Guidance in making the transition process itself a ‘lean’ process
Motivating an Enterprise Level Transformation Roadmap
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 15University of Miami, College of Engineering, April 19, 2012
ChipDesign Imperative for Change
• Create an enterprise agile enough to address the immediate needs of customers and also meet future needs in a changing environment
• Challenges due to changes in core technology
• Maximize utilization of its production capabilities over the next ten years
• Culture that assumes that change takes a long time
• Achievable through a combination of investment in people, process, and technology
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 17University of Miami, College of Engineering April 19, 2012
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 18University of Miami, College of Engineering, April 19, 2012
Stakeholders Defined
“A stakeholder is any group or individual who can affect or is affected by the achievement of
the organization's objectives”
Source:R. Edward Freeman “Strategic Management: A Stakeholder Approach”, Pitman, 1986
Source:D. Nightingale, and J. Srinivasan“Beyond the Lean Revolution: Achieving Successful and Sustainable Enterprise Transformation”, AMACOM, 2011
“The enterprise is a network of stakeholders configured by the flow of
value, which moves between the enterprise and its stakeholders”
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 19University of Miami, College of Engineering, April 19, 2012
The Enterprise
End Users
Leadership
Society
Unions
Suppliers
Partners
Employees
Customers
Classic Stakeholder Map
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 20University of Miami, College of Engineering, April 19, 2012
Stakeholder Analysis
• Process for aligning the enterprise with its stakeholders
• Brings to the forefront the disconnects and misalignments in the enterprise value proposition
• Structured means of reflecting on the enterprise value proposition as a whole.
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 21University of Miami, College of Engineering, April 19, 2012
Supplier Value Exchange
High
Cu
rre
nt
Per
form
an
ce
Low
Low HighRelative Importance
Fair andEquitableTreatment
Reasonablereturn on
investment
TimelyPaymentTimely
Payment
Long TermRelationships
JointForecasting
Early/AccurateReq. ID
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 22University of Miami, College of Engineering, April 19, 2012
Employee Value Exchange
High
Cu
rre
nt
Per
form
an
ce
Low
Low HighRelative Importance
Fair WagesBenefits
JobSatisfaction
CareerGrowth
Rewards
Training
Facilities Tools toDo Job
Security
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 23University of Miami, College of Engineering, April 19, 2012
Customer Value Exchange
High
LowHigh
Cu
rre
nt p
erfo
rma
nce
of t
he
ent
erp
rise
in d
eliv
erin
g va
lue
Relative Importance of the value to the stakeholder
Integrity, Credibility
Attention to Customer Needs
Timely Delivery
Innovation
Cost Effectiveness
Support Service
Product Quality
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 24University of Miami, College of Engineering April 19, 2012
Tool for executive self-
assessment of the current process maturity of an enterprise and its
readiness to change
LAI Enterprise Self Assessment Tool (LESAT)
Asse
ssm
ent M
atrix
World Class
Capability maturity
model
Supporting materials
21 3 4 5
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 25University of Miami, College of Engineering, April 19, 2012
X-Matrix as a systems tool for enterprise alignment
0 0 0 0 0 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0
0 0 0
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0 0 0
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Sta
keho
lder
Val
ue
Strategic Objective
Met
ric
Met
ric
Met
ric
Met
ric
Met
ric
Met
ric
Met
ric
Met
ric
Met
ric
Met
ric
Strategic Objective
Strategic Objective
Strategic Objective
Enterprise Process
Strategic Objective
Strategic Objective
Enterprise Process
Strategic Objective
Strategic Objective
Strategic Objective
Strategic Objective
Enterprise Process
Sta
keho
lder
Val
ue
Sta
keho
lder
Val
ueMetricsStakeholder
Values
Key Processes
StrategicObjectives
MetricsStakeholder
Values
Key Processes
StrategicObjectives
26
Measure and Analyze the Current Operating Model
Approved Regulations
Develop Acquire Field Sustain Dispose Other
HQDA Staff/Secretariat
ASAALT
AMC
ATEC
Industry
DRUs/Commands
Warfighter TRADOC
Conduct developmental test in support of EMD
Conduct operational tests to support
milestone decisions prior to LRIP and/or full
mte production.
Conduct safety/efficiency/
sustainability assessments for rapid
acquisition
Perform R&D Propose
Produce
Test
EstablishPolicy
Strategic Direction
Program Resources
Set PrioritiesAllocate
Resources & People
External Interface: OSD/Congress/
STRATCOM
Provide Technical Expertise
Provide spares
Provide Log Support
Maintain Critical Assets
Foreign GovtRequests
State Dept / Admin Policy
Coordinates International agree. FMS
Conduct ASTWGASTAG
Manage Acq. Workforce
Conduct Resourcing STRATCOMCong. Rel.
Manage Contracting
Develop TechnologyLead: RDECOMSupport: PMsContract CmdTRADOCIndustryAcedemiaATEC
Develop Programs
Provide Reqs. Thru accelerated capabilities Dev.
Provide reqs. Thru deliberate capabilities dev.
Provide forces for experimentation
Conduct Studies
Manage ProgramLead: Acq Map
PEO
Quick Reaction Capabilities
Lead: RDECOM
Refine Reqs. for accelerated
capabilities Dev.
Refine reqs. For deliberate
capabilities dev.
Provide forces for testing
Field major programs
Lead: Field / PEO
Perform capabilities integration
(request net)
Perform RESET (request Log
support)
Conduct Rapid Acq.
Conduct ASARC
DAB
S1Army Staff
S3Internal
AMC Analysis
Oversee Execution
S1MSCs
S1HQDA
D1SubordCmds
D1HQDA
D1MSCs
J&AsAcq. Strategy
Acq PlanContracting Approach
Warfighter outcomes proposed HTOs
w/PEO, TRADOC Endorsement
Review/ Approve Reqs.
Oversight / adjustments
Capture leadership
intent•Standardize Practices•Statues•Cong. Language•Admin. Guidance
S
SecDef Guidance for
Dev. Of Force (GDF)
OSD Prog GuidanceCDR’s Narrative
ADM
Develop Policy
•APPG•APGM
•ACP•POM•Budget•TAA Force Level
D
Army S&TMaster Plan
D
Approved J&As
D
ONS Director Requirement
Fielded Equipment
D
•Temp•Supp Stat•TDS•Tech read . A•Acq Strat•APB•ICE Develop
Temp
ADM
D
LOAsMOUsTreatiesMOAsIntl Data Exch.
DNew HiresRe-Hires
Trained Cert.
Workforce
D •TRADOC (future Needs)•RDECOM & Other Perf. (Opport..)•ASA(ALT) & DDR&E (framework & Priorities
Basic Research Strat.
•RDECOM & Other Perf. (incl. Acedemia)•DDR&E•Congress
D
Provision of Appropriated resources:
Determine Reqs. of Appropriated resources:
S2HHQ Policy Sch.
S1MSCs
Develop & Build
Infrastructure
S1Army Staff
D1Army Staff
D1MSCs
PM & Other Customers(eg. REF, JIEDDO,
RDECOM)
PM & MDA or other
Customers
TRADOC PM
FORSCOM PM/DA
MDS & DOT&E
Congress
PM / JIEDDOREF /
RDECOMG3 / COCOM
Industry
PM / JIEDDOREF /
RDECOMG3 / COCOM
Industry
Execute DT / OT for system model
upgrades
TRADOC PM
FORSCOM PM/DA
PM & Milestone Decision Authority (MDA)
Conduct in-service assessments
PM / Other Customers
G3
G3 / TRADOC
PM or other customers
Deliver Materials and Service Support
Perform Sustainment (readiness as
metric)Lead: LCMC
Request Logistics Support for Units
Conduct ASARC DAB
Treaty Guidance
Chem Inventory Execute Chem
Demil
Inventory Elimination
Provide Disposal & Destruction
Perform Reuse and Recovery
Identify Items for Disposal
Sustain / Upgrade test infrastructure
PMTest Ranges
& Other customers
(REF, JIEDDO, other services
Test Ranges / Facilities
Support Socio-Economic Programs
Tactical Units & Support to toher
Enterprises.RDECOM
AFSBSACC
Fielding Quick Reaction CapabilityLead: RDECOMSPT: Contract CmdLCMCG8 / G3
Inform Total Army Reqs.
1 2 2 3 1 3 4 3 3 2 0 21 0 2 1 0 0 0 1 1 2 4 02 2 4 4 1 3 4 4 4 4 4 2
8 2 10w w w w w w w w s s
7 2 9 s w w w w w w w s
5 4 9w s s w w w s s w
0 2 2 s s
6 2 8s w w w w w s w
Res
et C
ycle
Tim
e
Equ
ipm
ent
Rea
dine
ss
Def
ense
Acq
uisi
tion
Exe
cutiv
e S
umm
ary
(DA
ES
)
Con
trac
t C
lose
out
Ord
er F
ulfil
lmen
t
Ear
ned
Val
ue M
anag
emen
t (E
VM
)
Increase capability to generate trained, ready forces to meet ARFORGEN requirementsImprove execution of sustainment and reset functions
Maintain a trained and ready military and civilian workforce
Tec
hnol
ogy
Tra
nsfe
r R
ate
Pro
duct
ion
%LI
Ns
fully
equ
ippe
d du
ring
AR
FO
RG
EN
cyc
le
% A
WF
cer
tifie
d
% A
WF
on
glid
e pa
th f
or C
LPs
Alig
nmen
t of
pro
gram
s w
ith u
ser
requ
irem
ent
Provide greater transparency and visibility of accurate data and information to enhance decision making
Establish an "enterprise focused culture" which embraces the principles of CPI
MetricsStakeholder
Values
Key Processes
StrategicObjectives
MetricsStakeholder
Values
Key Processes
StrategicObjectives
Identify the Enterprise Core Value and Map Critical Processes
Analyze the Critical Processes for Waste, Opportunities and Gaps
(Analysis Tools will Vary – depending on the Application)
Measure the Effectiveness and Lean Maturity of the Enterprise
Tool Utilized Focuses on 1) Capability Maturity Model
2) Enterprise Management and Transformation 3) Continuous Process Improvement
X-Matrix was utilized to validate / identify gaps between Strategy, Value Delivered, Processes and Metrics
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 28University of Miami, College of Engineering, April 19, 2012
“A leader without a vision is a stamped letter
without address; it can never reach its
destination”
- Mehmet Murat Ildan
29
Strategic Goal:
Become the Materiel Enterprise that serves as the benchmark for delivering fully integrated Acquisition, Logistics & Technology capabilities to America’s warfighters.*
• Equip units to 100% of ARFORGEN materiel requirements on time, every time, with a 33% cost reduction
• Reduce delivery cycle time for requirements by 50%
• Reduce Operations and Maintenance costs for systems by 50% through innovative RDT&E investments (which increase reliability and reduce logistics, energy, and total life cycle costs)
• Achieve 100% data transparency and asset visibility
• Be a credible organization respected by all
• Develop a skilled, professional, continually improving workforce and be recognized in the Top 10 Places to Work
*Extracted from Materiel Enterprise Transformation Plan 2.0, dtd 1 May 09
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 31University of Miami, College of Engineering, April 19, 2012
Alignment
Equi
p un
its to
100
% o
f AR
FORG
EN m
ater
iel
requ
irem
ents
on -
time,
eve
ry-
time,
with
a 3
3% c
ost r
educ
tion
Redu
ce c
ycle
tim
e by
50%
Redu
ce O
pera
tions
and
M
aint
enan
ce c
osts
for s
yste
ms
by 5
0%
Achi
eve
100%
dat
a tr
ansp
aren
cy a
nd a
sset
vis
ibili
ty
Be
a cr
edib
le o
rgan
izat
ion
resp
ecte
d by
al
Dev
elop
a s
kille
d, p
rofe
ssio
nal,
conti
nual
lyim
prov
ing
wor
kfor
ce a
nd b
e re
cogn
ized
amon
g th
e to
p pl
aces
to w
ork
Beco
me
the
ME
that
ser
ves
as
the
benc
hmar
k fo
r del
iver
ing
fully
inte
grat
ed A
cqui
sitio
n,
Logi
stics
& T
echn
olog
y ca
pabi
lities
to A
mer
ica’s
w
arfig
hter
s
Stra
tegi
c G
oal
ü
ü
ü
üü
ü
ü
ü
üü
ü
ü
ü
üü
ü
ü
üü
ü
ü
ü
ü
ü
ü
üü
ü
ü
üü
Goal #5: Bus. Processes & Info Tech
Goal #4: Human Capital Strategy
Goal #3: Leadership
Goal #2: Industrial Base
Goal #1: Roles and Responsibilities
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 33University of Miami, College of Engineering, April 19, 2012
ChipDesign Enterprise Projects
Develop a human capital growth
program
Increase awareness of transformation
through communication
Develop a standard maintenance process
Harmonize legacy systems to create an
integrated system
Define growth strategy & technology
roadmap
Educate all employees on our transformation
approach and tools
Establish a common process for managing
test wafers
Develop a new performance
measurement system
Create a cross-functional
organization
Develop new means of sharing information
– both visual and internet-based
Growth
People
Operational Excellence
Information Technology
Establish a knowledge sharing
process across shifts
Define common metrics across
functional groups
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 34University of Miami, College of Engineering, April 19, 2012
ChipDesign Project Dependencies
Develop a human capital growth
program
Increase awareness of transformation
through communication
Develop a standard maintenance process
Harmonize legacy systems to create an
integrated system
Define growth strategy & technology
roadmap
Educate all employees on our transformation
approach and tools
Establish a common process for managing
test wafers
Develop a new performance
measurement system
Create a cross-functional
organization
Develop new means of sharing information
– both visual and internet-based
Growth
People
Operational Excellence
Information Technology
Establish a knowledge sharing
process across shifts
Define common metrics across
functional groups
Understand CurrentState
• Perform Stakeholder Analysis• Analyze Processes & Interactions• Perform Enterprise Maturity
Assessment• Assess Current Performance
Measurement System
• Create Vision of Future State• Perform Gap Analysis Between
Current and Future States• Architect “To-Be” Enterprise
PLANNING CYCLE
DetermineStrategic
Imperative
• Articulate the Case for Transformation & Convey Urgency
• Focus on Stakeholder Value• Leverage Transformation Gains
Capabilities & Deficiencies Identified
Enterprise Vision
Long-TermCorrective
Action
Short-TermCorrective
Action
Strategic Implications of Transformation
Envision & DesignFutureEnterprise
Nurture Transformation & EmbedEnterprise Thinking
• Monitor Transformation Progress• Nurture Transformation• Embed Enterprise Thinking• Capture & Diffuse Lessons
Learned• Adjust and Align
Planning & Execution Cycles
A Committed Leadership Team
Implementation Results
Implement & CoordinateTransformation Plan
• Develop Detailed Project Implementation Plans
• Synchronize Detailed Plans• Commit Resources• Provide Education & Training• Implement Projects and
Track Progress
• Reconcile Systems, Policies & Vision
• Align Performance Measurement System
• Align Incentives• Empower Change Agents
Align Enterprise Structure and Behaviors
Source: Beyond the Lean Revolution, Amacon Press, August 2011, ISBN-13: 978-0814417096
Pursue & Sustain
Enterprise Transformation
Engage Leadership in
Transformation
• Cultivate Enterprise Thinking• Obtain Executive Buy-In• Establish Executive
Transformation Council
STRATEGICCYCLE
Alignment Requirements
Identified
EXECUTION CYCLE
Create Transformation Plan• Identify Improvement Focus Areas• Determine Impact on Enterprise Performance• Prioritize, Select and Sequence Project Areas• Communicate transformation plan
© 2012 Massachusetts Institute of Technology 37
Lean Enterprise Transformation Roadmap
http://lean.mit.edu
Transformation Plan
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 38University of Miami, College of Engineering April 19, 2012
• Facilitates enterprise focus
• Provides “sequence” for enterprise transformation
• Increases understanding of “what went wrong” in previous transformation attempts
• Focuses on people/leadership issues
• Provides an organizing framework for enterprise-wide transformation
Benefits of Enterprise Transformation Roadmap
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 39University of Miami, College of Engineering, April 19, 2012
Creating a Holistic Approach to Enterprise Transformation
How do I design my future enterprise?
Enterprise Architecting Framework
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 40University of Miami, College of Engineering, April 19, 2012
Motivation for Enterprise Architecting
• In order to transform an enterprise we need to know not only where we are, but more importantly where we want to be (future state)
• In enterprise value analysis how do we define the “future state” of the enterprise?
• Once we define the future “vision” how do we design the enterprise?
• How do we incorporate the multiple dimensions or “views” at the enterprise level?
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 41University of Miami, College of Engineering, April 19, 2012
Enterprise Architecting
Enterprise Architecting:
“Applying holistic thinking to design, evaluate, and select a preferred structure for a future
state enterprise to realize its value proposition and desired
behaviors”
Nightingale and Rhodes, 2007
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 42University of Miami, College of Engineering, April 19, 2012
Enterprise Transformation: Provides successful strategies and
implementation approaches for transformation of an enterprise from‘as is’to‘to be’ state.
Enterprise Architecting: Provides strategies/approaches
to ensure time is spent developing and evaluating‘could be’states,
and selecting the best alternative given a set of desired properties and criteria
for the future enterprise.
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 43University of Miami, College of Engineering, April 19, 2012
Processes
Infrastructure
Information
Knowledge
Services
Strategy
Organization
EnterpriseArchitecting
Products
Architectural View: a perspective on an enterprise describing a related set of attributes
• Effective integration – managing complex interdependencies
• System optimization, not local optimization
• Achieving desired future state characteristics
• Agility• Flexibility• Reconfigurability
Enterprise Architecting Eight “View” Elements
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 44University of Miami, College of Engineering, April 19, 2012
Processes
Infrastructure
Information
Knowledge
Services
Strategy
Organization
Products
ECOSYSTEM
STAKEHOLDERS
8 VIEW ELEMENTS
Enterprise Architecting Ten Elements
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 45University of Miami, College of Engineering, April 19, 2012
Architecting
Evaluating
Future State A
Future State B
Future State C
Future State D
Transformation
A DCB C
Future State
Present State
Present State
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 46University of Miami, College of Engineering, April 19, 2012
PTSD: A Significant Pathology of War
• Challenges with Access to and Quality of Care
• Challenges with Culture and Stigma
• Consideration of Families
Resources: RAND, 2008 Invisible Wounds of War
5% to 20% prevalence
Over $2 Billion Invested
Over 125 psychological health programs
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 47University of Miami, College of Engineering, April 19, 2012
Enterprise Systems Thinking Is Needed for Effective Psychological Health Care
The enterprise comprises numerous stakeholders and their interactions, increasing the complexity to which effective psychological health care is delivered.
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 48University of Miami, College of Engineering, April 19, 2012
Challenge:
Develop innovative recommendations for transforming the military
enterprise to better manage post-traumatic stress, and related
conditions, in support of our service members and their families
Post-Traumatic Stress Innovations:U.S. Military Enterprise Analysis
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 49University of Miami, College of Engineering, April 19, 2012
Top Leadership Sponsors
Gen. Lloyd J. Austin III Vice-Chief of U.S. Army
and LTG Patricia Horoho Army Surgeon General
ARMY
Gen. Joseph F. Dunford, Jr. Assistant Commandant
of the Marine Corp
MARINE CORPS
General Philip M. Breedlove Vice Chief of U.S. Air Force
andLT. Gen. Charles B. Green Air Force Surgeon General
AIR FORCE
Admiral Mark E. Ferguson III Vice-Chief of Naval Operations
and VADM Matthew L. Nathan
Navy Surgeon General
NAVY
Jonathan Woodson, M.D.Asst. Secretary of Defense
for Health Affairs
General Martin DempseyChairman of the
Joint Chiefs of Staff
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 50University of Miami, College of Engineering, April 19, 2012
PTSI Overview and Initial Recommendations
1. Create standard telemental health policies and practices across the enterprise
2. Assess effectiveness and scalability of the Warrior Ohana Covenant
3. Create standard and effective gateway for information about distributed services to reach different populations of families
4. Explore a consistent design for behavioral health service provision
5. Combine existing disparate data sources to improve behavioral health care across the enterprise
Interviews(500+)
Site Visits(13)
Policy Review
Published Lit. Review
CPGs Review
Data Sources
6. Develop consistent service member health risk assessments across the lifecycle
7. Design informative process and outcome measures to track system effectiveness
8. Streamline hiring, credentialing, and privileging processes across the enterprise
9. Maximize evidence based practice through standardized metrics and accountability
10. Dedicate resources and training for Rear Detachment commanders and staff
Initial Recommendations
Stakeholders
Organizations & Processes
Enterprise Performance Measurement
Resources
Analysis Lenses
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 51University of Miami, College of Engineering, April 19, 2012
Future Work : Enterprise Architecting
As-Is Enterprise Architecture
Understand Enterprise Landscape
Understand Stakeholder Value
Capture AS-IS Architecture
Create Holistic Vision
Generate Concepts
To-Be Enterprise Architecture and Transform Enterprise
Derive Candidate Architectures
Evaluate and Select TO-BE Architecture
Detail and Validate TO-BE Architecture
Formulate Transformation Plan
Approach
Next Steps
Site Interventions Action Research Quantitative ModelingCase Studies
− PH delivery models− Performance measurement systems− Policy formulation and deployment
Survey Research− Cross-Organizational Integration
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 52University of Miami, College of Engineering, April 19, 2012
Journal of Enterprise
TransformationVol. 1, Issue 4:
“Enterprise Transformation
in Action”
Strategic Context (4 chapters)
Lenses of Current State Analysis (5 chapters)
Achieving Transformation (3 chapters)
Hardcover and Kindle discounts at Amazon.com
Special Issue
Enterprise Transformation Publications
In collaboration with IIE and INCOSE
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 53University of Miami, College of Engineering April 19, 2012
MIT Professional Education CoursesOn Enterprise Transformation
July 16-17, 2012
Principles of Enterprise Transformation
Prof. Debbie Nightingale Jayakanth Srinivasan, Ph.D
This course highlights the importance of going beyond
classical lean thinking to truly embracing the enterprise
paradigm to achieve successful and sustainable transformation. Over two days, we provide a set
of enterprise principles and a transformation roadmap that
serve as the foundation for the holistic analysis framework that captures the current state, envisions the future state, and determines actions needed for
transformation.
Architecting the Future Enterprise
July 30 to Aug. 1, 2012
Prof. Debbie NightingaleDonna Rhodes, Ph.D.
Enterprises often evolve in an ad-hoc, suboptimal manner, without viewing the enterprise as a whole system. This course looks at the
enterprise as a holistic and highly networked structure
wherein planning and decisions must be accomplished by applying
a systems perspective and architecting principles,
considering all facets of the enterprise
Think Holistically
web.mit.edu/professional/index.html
MIT Campus, Cambridge, Massachusetts, USA
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 54University of Miami, College of Engineering, April 19, 2012
“Everybody wants to transform, but nobody
wants to change.”
- Frederica Mathewes-Green
http://lean.mit.edu © 2012 Massachusetts Institute of Technology, Professor Deborah Nightingale - 55University of Miami, College of Engineering, April 19, 2012
Professor Deborah J. NightingaleDirector, MIT Sociotechnical Systems Research Center (SSRC)Co-Director, Lean Advancement Initiative (LAI)Professor of the Practice, Department of Aeronautics and Astronautics and Engineering Systems Division,
Massachusetts Institute of Technology77 Massachusetts AvenueE38-670Cambridge, MA [email protected]
Thank You!
http://lean.mit.edu © 2011 Massachusetts Institute of Technology, Professor Deborah Nightingale - 56University of Texas at Arlington, April 13, 2011
X-Matrix as a systems tool for enterprise alignment
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