lean with kpi
TRANSCRIPT
LEAN and N2S
February 18, 2014
© 2014 Rovi Corporation. Company confidential.2
Agenda
• Understand how Lean Principles support organization design
• See how customers can play a big role in organization design (and affect our results)
• Understand how to use Lean process change for short-term gains while building an organization structure capability for long-term results
• Key Process Indicators• Lessons Learned• Q & A (Reflection)
© 2014 Rovi Corporation. Company confidential.3
Lean Guiding Principles
PERFECTION
PULL FLOW
VALUE STREAM
VALUE
© 2014 Rovi Corporation. Company confidential.4
Lean Principles
• Identify Value – when a product or service has been perceived or appraised to fulfill a need or desire—as defined by the customer—the product or service may be said to have value or worth.
• Map Value stream – All the activities (both value-added and non-value added) required within an organization to deliver a specific service.
• Create Flow – the progressive achievement of tasks and/or information as it proceeds along the value stream
• Establish Pull – principle that no one upstream function or department should produce a service until the customer downstream asks for it
• Seek Perfection – a never ending pursuit of the complete elimination of non-value adding waste
© 2014 Rovi Corporation. Company confidential.5
Lean Methods
Lean&
N2S
Improve Speed
Achieve Breakthrough Dashboard Results
Lower Costs
Culture ChangeSustain Performance
Higher Quality
Methods Results
© 2014 Rovi Corporation. Company confidential.6
Matching Process Improvement to Need
ChangeManagement
Plan, Do, Check, Act(PDCA)
Lean &
N2SDesign for
Lean
Unclear
SolutionClea
r So
lutio
n RadicalMod
erat
e
Small Gains or Clear Solution
Launch New Product, Service, or Process
LargeGains
MediumGains
© 2014 Rovi Corporation. Company confidential.7
Value Stream Mapping and Analysis
© 2014 Rovi Corporation. Company confidential.8
Value Stream Process Steps
1. Prepare
2. Gather Data & Develop Current State
3. Develop Future State & Action Plan
4. Execute to Plan
5. Align
© 2014 Rovi Corporation. Company confidential.9
Value Stream Process
Tips for Success• Capture as we go:
– Issues– Acronyms / terminology– Parking Lot issues– Action items
• Establish a time each day for Leadership to visit the workshop– Status update– Ask questions– Barrier busting
• Capture at the end of each day:– Lessons Learned– Agenda for next day
• Champion summarization for Leadership at end of each day (email):– Team accomplishments for the day– Agenda for next day
© 2014 Rovi Corporation. Company confidential.10
Analyzing the Value Stream
Planning to optimize results of eliminating waste
+ + =LeanBasics
As Is VSM or current state
To Be VSM or future state
Increases Value
Reduces Waste Respects People
© 2014 Rovi Corporation. Company confidential.11
Lean : Our journey has just begun
Hum
an Resources
Operations
Sales & M
arketing
Legal
Finance
Product Managem
ent
Data Solutions
IP & Licensing
Operations &
Services
Engineering
Corporate Strategy
Hire to Retire
Lead to CashValue Flows
Departments
• Every journey begins with a small step
• Started with Hire to Onboard Value stream as a pilot initiative
• Learn & be successful with one process and move to other value flows.
© 2014 Rovi Corporation. Company confidential.12
A common taxonomy was used to analyze capabilities that deliver value to the enterprise
Lead
to C
ash
Market to Dem
and
Idea to Market
Support
the
Business
(HR, IT, Ops)
Issue to Resolution
Plan
ning
to
Exec
utio
n
Customerand
ShareholderValue
• The value flow model: 1. Determines desired
performance of a 'flow' (executive)
2. Assigns accountability for the deliverables that feed the flow (line managers)
3. Establishes control so we can deliver well and scale (execution team)
• The initial goal is to map the flows and look for pain points in the areas directly impacting value creation
© 2014 Rovi Corporation. Company confidential.13
Lean Strategy 2013 - 2014 Awareness Adoption Sustain
Value Flowusing Lean 2013 2014 2015
Q4 Q1 Q2 Q3 Q4 Q1 Q2 & beyondIdea to Market
Market to Lead
Lead to Cash
Issue to Resolution
Support the Business
Planning to Execution
Contract Lifecycle Mgmt. define KPI
Legal Spend define KPI (On-Hold)
Integrated Flow Hiring & On Boarding H2R
Rationalize Appraisal System PMS H2R not started
Learning Management System LMS H2R not started
Advertising Workflow Lean Pilot
SFDC to JIRA Integration not started
Legal Entity Management
Hire to On-boarding Lean Pilot
B2B Marketing Automation not started
© 2014 Rovi Corporation. Company confidential.14
Lean Pilot
© 2014 Rovi Corporation. Company confidential.15
H2R Process
© 2014 Rovi Corporation. Company confidential.16
H2R – Pain Points
© 2014 Rovi Corporation. Company confidential.17
KPIs for H2OKPI/Process Measure Baseline Targe
tActual
Readiness to Start% Up
% of new hires with 100% score
Gather itDid you have everything to be effective? Y/N (Y=100%)If N, -> why? Which area? - Tools- Access- Workspace/desk- Building access
100% TBD *based on 30 day focus group)
Hiring Need to Stakeholder Informed (Time)
# of days START TIME: Hiring manager has a Need END TIME: Stakeholders (HR, Helpdesk, Facilities) has 100% of info requested
Clear ask from hiring manager – perhaps separate templates for different job type templates (sales, engg, it, admin etc) . If the time is a range, then do a Min, Max, Average and a standard deviation
Hiring Manager Need to New Hire (iTme)
# of days Get the baseline TBD TBD
New Hire Tickets in first 30 days
# over time Bar graph
Get the baselineq TBD TBD
© 2014 Rovi Corporation. Company confidential.18
KPIs for Advertising demand generation to fulfillment
Measure Baseline Target ActualQuality
Ticketing System
Survey
- Number of issues (volume)- Frequency/severity- Categorization (process/product)- Time to resolution
- Stakeholders- Customers
- TBD - TBD
Time
Sales Cycle
Yield/Utilization
- Total time from proposal to reporting/billing- Number of client meetings- Reactive vs. proactive work (address the current admin overhead)- Number of meetings with Research/Marketing
- Available inventory unsold- Number of active units per campaign- Number of new proposals generated
- TBD - TBD
Revenue
Share of Wallet
Campaign Performance
- Increase of units per campaign- Average spend per campaign- Increase spend threshold per campaign
- $/Number of credits issued- $/Number of make goods- Number of campaign performance at 100% delivery- Number of revised invoices
- TBD - TBD
© 2014 Rovi Corporation. Company confidential.19
Lean Lessons Learned
• “Getting Lean” takes a long time
• Lean is not a part-time effort
• Lean is more than tools, it is also a behavior
• The journey to Lean never ends
• Challenges to lean practice
– a. Maintaining high levels of excitement
– b. Bridging a potential tension between the objectives of workers and management
Lean practices attempt to align the interests of workers and the company by allowing workers some
discretion over how their work is done, while respecting the company’s need to be efficient and
competitive.
© 2014 Rovi Corporation. Company confidential.20
Lean Reflections - Q & A
IT has focused on dramatically improving process and eliminating the waste