Ci&T had the honor of recently speaking with Jim Luckman, partner, at the Lean Enterprise Institute. Luckman talked about the roots of his advocacy of lean and discussed best practices applied to Information Technology. He also discussed common mistakes companies encounter when undergoing a lean transformation.
1) How long have you personally been an advocate of lean?
My journey started when I was a plant manager 14 years ago.
2) Tell me about your earliest experience with lean. How did you first come to understand the application and value of lean principles?
Delphi was rolling out their version of the Toyota Production System the same year that the book “Lean Thinking” was published. I became very interested in what I understood at that time and began to make small changes, particularly with regard to engaging associates. I saw some remarkable improvements when the people became proactive.
3) Are there specific business areas and functions for which lean is better suited (e.g., manufacturing, IT) than others?
Many people think of lean as a set of tools. With that mindset, the most appropriate area is manufacturing. Since I have a view of lean that is about creating a problem solving and learning culture, the model of improvement is equally important for all functions.
4) What’s your experience with lean applied in an IT organization?
I have been able to work with several companies at applying lean to IT. My attempt was at coaching an internal IT team with application of SAP in their manufacturing area. The lead time was cut in half. Since then, I have worked with an IT company that provides data to big banks, a high technology company, and a finance company. All were engaged in trying to understand Agile vs. Waterfall.
5) Why, in your estimation, is lean an effective approach for IT and software development?
I have focused much of my effort on applying lean to product development. IT and PD share the same problem of creating the understanding that their primary value stream is about creating knowledge, as fast as possible. Because of this, there are some unique techniques that need to be applied. Agile is conceptually compatible with Lean, but what we do is make sure everyone is learning daily about the product (software) and process every day.
6) What are some of the biggest challenges companies face in applying lean principles?
Lean is a different mindset. Getting all people to recognize that they are operating inside a different paradigm and need to question their current assumptions is the most difficult part.
7) Do you view lean as more effective when used on its own, or in conjunction with other approaches?
Since lean is about creating a more effective way to solve problems, it is best thought of as an umbrella and the other approaches are potential tools to assist in problem solving.
8 ) How do you view lean when compared to and/or used in tandem with approaches like agile or RUP?
I had the opportunity to conduct a value stream improvement project for a company where they were developing software with both Agile and Waterfall. They designed a future state that was above both processes and implemented the best of both. It was very successful.
9) What are some of the common mistakes companies make when undergoing a lean transformation?
The most common mistake is to view lean as simply another project rather than something that is about changing the mindset of the organization. Many companies use lean for cost savings only.
10) What would be your advice for a company that is interested in executing a lean transformation, but doesn’t know where to begin?
It is best to begin the effort by defining a business problem at a leadership position, something that “keeps you awake at night”. Then, select an area for making improvement based on the problem. Use this as an opportunity to scope a project, have a value stream mapping workshop, and then implement the change through multiple learning cycles in order to embed the thinking of problem solving and learning. Organizational learning has begun and additional efforts can easily be defined.
