Book Review by: Steven Bonacorsi, Lean Six Sigma Master Black Belt, ITIL Master, Honorary Advisor to the International Six Sigma Council, Agilest, and Founder of the Lean Six Sigma Group.
Ch 1: The authors outline the key disconnects in areas such as the lack of Integration and synchronization between IT and the business as caused by unnecessary complexity. I cannot agree more, as the business complexity increases with supply chains, mergers and acquisitions;, various as changes in customer and employee needs increase accelerate, SOAS does the complexity of information systems increase. Lean IT engages people, using the framework of lean principles, systems, and tools, to align and synchronize the IT Organization with the business to provide quality information, supported by fast and effective information systems that are accurate and complete. Lean IT outlines how Information Technology systems can change quickly to respond to rapidly changing customer and business requirements.
Ch 2: The authors outline three ages of Lean: Beginning in 1890 with the Age of Scientific Management and Frederic Taylor, Henry Ford, then on to The Age of Engagement following World War 2 with Edward Deming, Joseph Juran, Goldratt's Theory of Constraints, and the Toyota Production System, thru 1995 to the Age of Integration with the evolution of Lean and Six Sigma. The Authors clearly cover the Lean Principles, in that they are about fixing processes, not people, for fact-based improvements. Kaizen, culture, Value Stream Mapping (using IT Examples), A3 thinking, and the 7 Wastes are all covered in addition to many other Lean tools and methods, specifically used in IT.
Ch 3: The Authors recognize that Traditional IT organizational practices typically move slowly and carefully to avoid instability and business disruption, while Lean encourages every individual to notice and fix problems by making small improvements each and every day. System life cycle and legacy systems are compared to a maturity model such as CMMI, ISO, ITIL, Prince 2, or SCOR. Information Waste and Quality is explored and the Authors clarify ways to identify and measure the waste, including how to identify Green Lean and IT and how environmental consequences can be minimized. An extensive list of Information Wastes is provided in the appendix, which may be useful to the reader to spot such wastes within their own environment.
Ch 4: Information Technology's role as a catalyst in business process improvement to bridge functional silos is discussed in detail, with the convergence with of strategy, IT Systems, and Lean Thinking. The balance between Efficiency and Agile flexibility is reviewed so that information is provided at the right time, in the right format, to the right audience. Leveraging best practices and benchmarking aide in comparing current processes using effective and compliant measurements. Business Process Management is reviewed but a real gem in the book is the prioritizing process improvement with strategy, including Innovation processes that reinvent the business and establish differentiation in the eyes of the customer.
Ch 5: This is a deep dive into the Lean tools and methods, such as Information Kanban, Demand planning and Management, Scheduling, Line Balancing, Constraints in flow, and workflow capacity. Sales and Operations Planning (S&OP) is outlined with examples on how to respond when demand exceeds capacity.
Ch 6: The authors point out that most Lean transformations efforts are unable to sustain themselves over time as organizations lose momentum and regress to familiar, wasteful behaviors. The success of a Lean management system relies on collaboration and a smooth flow of quality information. The section on Communication and Knowledge management is brilliant. The authors provide insight into collaborative workspaces, IT Service Desk, performance measurement (including Lean business intelligence) and rapid acquisition and Integration. An overview of Strategy Deployment, and a discussion on how to measure value with Lean vs. Traditional Accounting, helps the reader compare and contrast the importance of the Lean Management System
Ch 7: Functional Silos vs. Value-Adding Service Center is brought attention by the authors with an excellent overview of ITIL (Information Technology Infrastructure Library) established best practices and the integration with Lean IT. Next Cloud Computing and its innovative disruption of IT Systems are presented with success tips for IT service adoption. This chapter was high value to me and I am confident the reader will walk away with a holistic view of how to integrate these various frameworks into a unified model based on sound Lean principles.
Ch 8: Software development is a creative process and differs from many repetitive IT processes. Agile Lean Software Development is compared to more traditional models such as waterfall. The Lean Software Development Life Cycle is covered from requirements definition using the Voice of the Customer, demand management, Execution and test iterations, to customer support and measurements. While I would have preferred to see a section on application development estimation techniques like Function Point Analysis, Pert and Critical Path Methods, Use case Points and Test Case Points, used to estimate the size, schedule, complexity, resource effort, and costs, it would have been beyond the scope of the book to cover completely. But the Implementation and Integrations Lessons Learned were very helpful with leading vs. lagging metrics discussed.
Ch 9: Project Management Institute has set the standard for project management and subscribes to the triple constraint that Quality, Cost, and Scope are all linked so that a change in any one area (let's say an increase in quality) will influence other constraints (such as an increase in cost and/or scope). The authors outline how applying Lean thinking to Project Management which will diminish the triple constraint since Lean targets the waste that reduces costs and scope while at the same time as increasing quality. Plan-Do-Check-Act is covered at both a Macro and Micro level with examples of each phase, demonstrating how Lean Project Management enables the Lean Enterprise.
Ch 10: A critical chapter for Lean IT transformations, makes it crystal clear how where clear strategic objectives can be measured for progress, success, and the effect of the change on the business, customers, and supply chain is crystal clear. Transformation Leadership as it relates to the strategy deployment, effective management systems, demand management, and business process management and governance are well explained. A maturity model of 3 levels of management systems is presented in a simple to understand and execute framework, displayed with comparative differences between the business focus, lean focus, and Information systems focus at various levels of the organization, to enable the Integration of Lean IT.
Ch 11: This chapter is a Deployment Champions lifeline, guiding the leaders with a road map from how to start the Lean IT Transformation, linking strategy of the leadership vision, to the building of the teams and tool kits for rapid project execution. Change management at both the strategic and tactical are discussed so the best setting for the pace of the change can be managed effectively.
Lean IT Case Studies
While numerous company examples are discussed throughout the book, the 8 case studies walk the reader through various IT Transformation projects, tools and methods, and lessons learned.
Appendix A: A Brief History of Continuous Improvement
Appendix B :B: How Lean and Six Sigma Work Together
Appendix C: Information Wastes
Appendix D: IT Service Desk: A3 Example
Overall Summary:
Lean IT is the extension of lean manufacturing and lean services principles to the development and management of information technology (IT) products and services. Steven Bell and Michael Orzen leave the reader with a clear understanding of how Lean IT can enable and sustain your Lean transformation. Its central concern, applied in the context of IT, is the elimination of waste, where waste is work that adds no value to a product or service.
Although Llean principles are generally well established and have broad applicability, their extension from manufacturing to IT is only just emerging. Indeed, Lean IT poses significant challenges for practitioners while raising the promise of no less significant benefits. And whereas Lean IT initiatives can be limited in scope and deliver results quickly, implementing Lean IT is a continuing and long-term process that may take years before Llean principles become intrinsic to an organization's culture. With the Lean IT book in the transformation leader's hand, they will have a better understanding of the sand pits and best practices learned through the successful implementation in numerous businesses, globally.
If you are a Lean Six Sigma Champion, Black Belt, Master Black Belt, or Executive Leader, I recommend adding Lean IT to your Business Process Improvement Library, as I am confident it will be an invaluable aide in planning your Lean Transformation and roadmap for IT in how they can actively participate in the overall operational excellence goals.
