lean @support functions by martin chmelar & tomas turecek, tieto

Copyright © Institut Lean France 2013

3 & 4 October, 2013 Paris, France

Lean @ Support Functions

Connecting Support functions to Business

by Tomáš Tureček, Martin Chmelař

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Martin Chmelař,

Lean&Agile Coach

Tomáš Tureček,

Lean&Agile Coach

Speakers

Lean@Support Functions - Tomáš Tureček, Martin Chmelař 2


• Value focus

ROI, Time-to-market, …

• Whole value chain support

• Team support

Leadership, coaching, …

• Over 10 years of Lean / Agile

experience from tens of IT

projects

• Over 3500 people are

enjoying results of our

coaching

Lean@Support Functions - Tomáš Tureček, Martin Chmelař

We are RainFellows

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Need Value

time, €, satisfaction, …


The leading IT service company in

Northern Europe providing IT and

product engineering services

We represent Tieto


More than 15,000 employees

in more than 20 countries

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SUPPORT FUNCTIONS


HR Finance

ICT Staffing

Quality Procurement

5


Support Functions

Heroes or villains?



Isolated from customer value

Serving all but none

They do their best but…

Busy business people

External constraints


Far from customer

Serving many

different value chains

Wide & shallow

approach used

7


Some time ago in Tieto…


SGA costs were higher than competitors’,

IT players of similar size

Feedback showed that Support Functions were isolated and not supporting customer

oriented work

Sampo Salonen Executive Vice-president,

Global Delivery and Quality SGA: Sales, General & Administration

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The CMMI story


Our customers want us CMMI.

Which customers? Why?

Don’t ask. Just do it.

Chief Marketing Officer Processes & Quality org.

TIPS Team Processes & Quality org.

Your Czech part will be CMMI ML3.

No time to do it. We are busy with customers’ escalations.

Your processes will be better. Just do it.

1

2


Lean@TIPS

Profit

2x

* Average monthly profit

in 2012 compared to 2011

Satisfaction

Customers

Employees

-10

0

10

20

30

40

50

Start


2012


Lean transformation@Tieto


Business impact: 7MEUR in 2012


Global Delivery and Quality

Let’s try Lean approach on Support Functions

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2011



“HOW TO EAT

AN ELEPHANT?”

1. Start now.

2. Split & focus.

3. Bite & chew.

4. Enjoy every bite



• 5 pilot teams chosen

Business critical (yummy)

Ready for change (chewable)

Known way of working

• Connect SFs

to customer and value

Split & Focus


Narrow and deep

focus


• In distributed software product development?

Go & See?


Solution: Kaizen workshop!

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Kaizen Workshop

C

X

C

(1) Agree on

common goal and

map end-to-end

value stream

Root

cause

Root

cause Cause

C

X

C

!

!

!

!

!

(2) Visualize

perceived issues

(3) Investigate

root causes

(4) Brainstorm ideal

solutions and small

“Kaizen” steps

☺

☺


2011


1. Delivery driven interfaces to Support Functions

2. Support Function driven interfaces to Delivery

Weekly, Monthly, Quarterly, Annually

KW@Support Functions


S&M,

Contract

renewal,

CS

Staffing

Finance Quality … etc.

… etc.

Sales phase Development/Transition phase

Role/Representative

Delivery Manager

Cust. Managers (Sales)

Line Managers

Cont. Service Managers

Quality Lead

Finance Partner

Finance Controller

HR Partner

Staffing

Purchasing, Subcontracting, Procurement

Special Guests (LT, Man.)


KW@Support Functions



• Low autonomy (A lot of approvals)

• Overhead (Finance reports, HR questions, Manual reporting, ...)

Findings from pilot cases



• Mutual feedback

• Agreed actions to problems of pilots

Results


SF: “We are first time ever looking for process and

connecting deliveries and support functions!”

Delivery: “It was really great to have LT member here and

discuss topics immediately.”

Martin Sztemon Project manager

“We had problem to track down costs on our very huge and complex service portfolio;

finance partner offered us to set-up our portfolio differently to get the visibility”

“GL bookings (delayed invoices) are now much easier to handle after our issue was reflected in a finance tool”

“We boosted our relationship with Support function partners on workshop; this paid of

later when we were solving our daily issues with them.


• Inputs and feedback to the new operating model

From Cost centers to Projects

Survey; In compare to 2012 is your (PM/CSM/DM)…

Results


Much

smaller Much

higher

Same Much

higher Much

smaller

Same


Global Delivery and Quality

Workshops findings had big influence

on the result operating model

…decision making power higher now? …overhead smaller now?


• We relied on SF heads and LT team to keep the wheel spinning…

How about chewing?


1. Form Core team coach pairs

2. Find internal coaches inside SFs

3. Initiate Lean@(concreteSF)

4. Continuous improvement

Lean@Staffing

Lean@Finance

Lean@...

Core team

Internal

coach


• Lean@(concreteSF) unfortunately faded out…

Missing active change agents

• However, half a year after…

Contacted by people from within SFs

KW@ICT, KW@Finance

• So we managed to create a ripple effect

and the journey continues…

Failure or success?



• Approach people positively - everyone does his/her best

• Focus people and their actions on value

• Keep Startup mindset & PDCA

• Prioritize and focus

• Go & See - Kaizen workshop

• Bring people together to break the silos

• Focus on long term results, but win something quickly as well

• Find change agents

This story was about how

important it is to…



Let them meet. Let them talk. Let them share.

To find WHAT and WHY they want to achieve together

Because only people who know WHAT and WHY can

invent the HOW and make the needed improvement…

But the most important lesson was…


People first

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