Business & Management / Lean Methods & Implementation B e Run Grow Transform takes the next logical step to driving enterprise value. This could be the R u n l game-changing playbook for IT 3.0. l —Mark Katz, CIO & Senior Vice President, Esselte Corporation A powerful read detailing how companies can leverage their Lean IT transformation to supercharge the business. G ro w —Tom Paider, IT Build Capability Leader, Nationwide R The consistent application of the practices described in this book has enabled Embraer to reap huge gains. I recommend this book as a desktop companion. —Alexandre Baulé, Vice President Information Systems, Embraer u n Tra nsform … takes the reader a leap forward, ready for immediate application to bridge Lean and innovation. —Melissa Barrett, Enterprise Architecture & IT Strategy, Premera Blue Cross G This book focuses on the most critical and challenging issue for any aspect of the development or use of IT: creating a collaborative learning culture. Integrating Business —Jeffrey K. Liker, Shingo Prize-winning Author of The Toyota Way r o … sets out the principles and practices necessary for success in the new economy. and Lean IT —Jez Humble, Author of Continuous Delivery w Steve Bell has hit another home run with this book. Either your organization will adopt the wisdom contained in this book and thrive, or your competitors will do so and put you out of business. T —Scott Ambler, Author of Disciplined Agile Delivery Steven Bell r It’s rare to see truly new insight added to the Lean discussion. Steve Bell does just that by a continuing to push the frontiers of Lean thinking. —Alexander Brown, COO, Scrum Inc. n Foreword by Daniel T. Jones Your customers want innovation and value, and they want it now. How can you apply Lean s principles and practices throughout your enterprise to drive operational excellence, reduce costs while improving quality, enable efficient growth, and accelerate idea-to-value innovation? With Charles Betz f Shingo Prize-winning author Steve Bell and other thought leaders show you how—guiding you to o Troy DuMoulin more effectively align people and purpose, promote enterprise agility, and leverage transformative r Paul Harmon & Sandra Foster IT capabilities to create market-differentiating value for your customers. m Mary Poppendieck and John Schmidt K14527 ISBN: 978-1-4665-0449-3 90000 www.crcpress.com 9 781466 504493 www.productivitypress.com K14527 cvr mech.indd 1 8/20/12 2:44 PM R un G row Tra nsform Integrating Business and Lean IT Endorsements Run Grow Transform takes the next Mark Katz, CIO and Senior Vice logical step to driving enterprise value President, Esselte Corporation (global by showing how to integrate Lean IT leader in office supply products, thinking deeply within the business including Oxford and Pendaflex) itself—creating a multiplier effect. This could be the game-changing playbook for IT 3.0. A powerful read detailing how Tom Paider, Associate Vice President, IT companies can leverage their Lean IT Build Capability Leader, Nationwide transformation to supercharge the business. What CIO is not under constant Alexandre Baulé, Vice President, pressure to cut costs, increase output, Information Systems, Embraer (third and foster innovation, keeping pace with largest commercial jet producer in the growth and business transformation? world) Lean IT is the key set of disciplines to achieve just that. The consistent application of the practices described in this book has enabled Embraer to reap huge gains. They are practice proven, and I recommend this book to all IT professionals as a desktop companion. Provides a superb framework for Thomas Knutilla, IT Group Director, applying Lean practices to help business Ryder System Inc. and IT work together to get more value from IT capabilities. You can use this book as a guideline for focusing the benefits gained from Lean IT practices to help grow and transform your business. Endorsements ◾ iii This book sheds light on the way to the Melissa Barrett, Enterprise Architecture bridge between sister cities of Lean and and IT Strategy, Premera Blue Cross Innovation. Steve captures today’s issues in relatable terms and examples—I felt the pages could have been lifted straight from our own management status reports or project issues meetings. Good read! The role of IT in enterprise Jim Garrick, FedEx Express, Lean Lean transformation is vital to success. Operations Run Grow Transform addresses a much- needed perspective. In a time where Business and IT must David Bogaerts and Jael Schuyer, Lean- join hands to reduce waste, drive Agile coaches, ING innovation, and create a competitive advantage, this book presents an inspiring view. It is a must-read for everyone on this journey. The “business as usual” scenario is not Khuloud Odeh, IT Director, Grameen an option in today’s economy and global Foundation challenges. A transformation in methods, tools, and frameworks is needed to guide your business decisions. This book is your first step! Steve Bell has mapped a new trajectory Jeffrey Barnes, Society for Information for CIOs seeking to successfully Management, Regional Director, navigate the path of transformation to Advanced Practices Council chief innovation officer. For the majority of those stuck expending most of their enterprise resources on “run the business” activities, this book provides a roadmap for operational and innovative excellence. I challenge any CIO to read Chapter 1 of Bell’s breakthrough work and not be compelled to start this journey—from run, to growth, to innovation—and in so doing become a transformative leader in the creation of real and sustainable business value. iv ◾ Endorsements Not just for Lean practitioners, Run Grow Sarah Topham, Lean Deployment Transform is a must-have reference for Leader, Information Technology and any IT organization, regardless of size, Product Management, Paychex, Inc. age, or industry, looking to move to the next level of performance. The pattern we often see is a high Bruno Guiçardi, COO, Ci&T volume of IT investment followed by a disappointing contribution to the business. This book is a must-read for those seeking to break this pattern and transform IT into a source of innovation and value-add for the business. My advice is simple: read, learn, adopt. Scott Ambler, (co)author of twenty Steve Bell has hit another home run with books, including Disciplined Agile this book. Lean is going to affect your Delivery organization whether you like it or not. Either your organization will adopt the wisdom contained in this book and thrive or your competitors will do so and put you out of business. Once again: read, learn, adopt. With all that has already been written Alexander Brown, COO, Scrum Inc. about Lean, it’s rare to see truly new insight added to the discussion. Steve Bell does just that by continuing to push the frontiers of Lean thinking into the creative and rapidly evolving world of IT. Run Grow Transform is thought provoking, well grounded in research, and a great read for anyone interested in why Lean methods work. Jeff Sutherland and I had a blast exploring the relationship of Lean and Agile/Scrum principles with Steve, and I expect readers will too. Steve has a unique background as an IT Jeffrey Liker, PhD, professor, University professional who has studied Eastern of Michigan; author of The Toyota Way philosophies and immersed himself in a deep understanding of Lean. This book focuses on the most critical and challenging issue for any aspect of the development or use of IT: creating a collaborative learning culture. Endorsements ◾ v This book opens a new chapter in the Brian Maskell, coauthor of Practical Lean use of IT systems in a Lean world by its Accounting practical, pragmatic, and yet Lean- focused advice to IT people and their managers and—just as important—their customers. The acquisition, processing, and delivery Kevin Meyer, President, Specialty of information are critical to Lean Silicone Fabricators transformations and business excellence in general, yet IT departments are often on the sidelines in such efforts. There is waste and opportunity for improvement in the IT function itself, but perhaps more importantly there is tremendous opportunity with how information is processed and leveraged within the larger organization. In Run Grow Transform Steve Bell describes how IT can become a powerful agent supporting organizational improvement. All too often the IT organization is Josh Rapoza, Director of Web Strategy viewed as an impediment to Lean and Operations, Lean Enterprise transformation, when it truly can be a Institute catalyst. Steve’s book sorts out all the noise, the jargon, and the “hero culture,” guiding the reader to what is so obvious yet so hard to see: build your culture around your customer! Aligning Lean and IT is a great challenge Klaus Lyck Petersen, Group Process with a big payoff. We have successfully Manager, Solar A/S applied Lean thinking in our supply chain redesign and SAP implementation. This book really shows how Lean and IT can create a strong enterprise; it is a great inspiration. vi ◾ Endorsements With the advent of technologies like 3D Jez Humble, Thoughtworks Studios; printing and cloud computing we are on author of Continuous Delivery the verge of a third industrial revolution—one that traditional management paradigms are simply not designed for. Run Grow Transform sets out the principles and practices necessary for success in the new economy and is required reading for anybody involved in managing an organization that depends on technology for its success. A must-read for any organization that is Barry J. Brunetto, Vice President, pursuing a continuous improvement Information Systems, Blount program based on the Lean principles. International This book provides the insight to further integrate Lean IT and business process improvement. In today’s world, real business improvement cannot be achieved without the IT factor; this book will help any organization achieve the improvement they are seeking. Twenty years of manufacturing and Darren Hogg, IT Director, WIKA business process improvement using Instrument Corporation Lean methodologies, and I never considered applying Lean to IT. I am now inspired to transform my department using Lean IT, and I’ve already seen significant results in the first ninety days. This book lays a foundation for excellence. Most companies in their Lean journey Flávio A. Picchi, Executive Director, Lean realize (with a lot of pain) that they must Institute Brasil transform their IT processes in order to support their main product and service processes. This book stresses the importance of the complete value stream, which is necessary for enterprise transformation Endorsements ◾ vii Whether you’re a leader, an IT Karen Martin, author of The professional, or a change agent, you Outstanding Organization MUST read this book! Steve Bell’s refreshing take on how to develop and leverage your IT capabilities to innovate, deliver greater value, and reduce cost will help you gain market share and become a truly outstanding organization. In thirty years of coaching Lean Michael Rowney, PhD, Rowney transformations, the most significant Consulting impediments I have encountered are poor-quality information and unresponsive IT groups that resist change. This book provides much- needed guidance to help us surmount these most frustrating obstacles. Run Grow Transform contains the tools Martin Erb, Director of Professional for IT leaders and performers to thrive in Services, Pink Elephant the face of the many conflicting demands from their customers, with limited resources. Delivering beyond the helpful folk wisdom and narrow techniques and technologies found elsewhere, Steve Bell and his contributors provide practical full value stream lifecycle methods for continuous improvement using Lean in an IT and customer (business) setting. Precise, concise, and entertaining, this Fuat Alican, PhD, Vice President, Central book provides the reader with crucial American Scientific Research and tips on how IT can help enterprises Education Center survive and thrive in a fast-paced technological and economic environment. This is mandatory reading not only for businesses and IT organizations, but also for universities and policy makers. viii ◾ Endorsements Run Grow Transform clarifies the eternal Tom Foco, Value Stream Solutions quest of IT—simplify “running” the business to eliminate waste of operational resources. Redirect IT spending to create innovative solutions to grow the business and create sustainable competitive advantage to transform the way customers interact with your business before your competitors do. This book offers plain, actionable advice from one who has been on the frontlines. A valuable and much-needed Richard Askew, Wipro Consulting perspective on the integration of Services business and IT. Provides sound, practical advice and challenges us to think about a central issue of business performance: value stream flow. It really is all about process: Lean IT Thomas Jollands, Tata Consultancy helps IT professionals view everything Services they do in a new way. Run Grow Transform will help everyone recognize that end-to-end transformation means board room to point of customer delivery, not board room to CIO. This is a long-overdue book that James Finister, Tata Consultancy Services addresses the key challenges for today’s IT organization and puts Lean IT into a context that is too often lacking. Thought leader Richard Florida has Cecil Dijoux, Lean Software identified the ongoing tension between Development Manager, Lectra creativity and organization as the biggest issue at stake in this emerging age. This book proposes a useful framework to address that very problem while leading IT strategy in a twenty-first century organization. If you’re a CIO, you cannot afford to miss this thoughtful, knowledgeable, yet very practical read.