lean with kpi

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)


Lean Guiding Principles

PERFECTION

PULL FLOW

VALUE STREAM

VALUE


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


Lean Methods

Lean&

N2S

Improve Speed

Achieve Breakthrough Dashboard Results

Lower Costs

Culture ChangeSustain Performance

Higher Quality

Methods Results


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


Value Stream Mapping and Analysis


Value Stream Process Steps

1. Prepare

2. Gather Data & Develop Current State

3. Develop Future State & Action Plan

4. Execute to Plan

5. Align


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


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


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.


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


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


Lean Pilot


H2R Process


H2R – Pain Points


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


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


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.


Lean Reflections - Q & A

IT has focused on dramatically improving process and eliminating the waste

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