CIO - IT Communication (Strategic Business Process Improvement - ITIL and Lean 6-Sigma Combined)

August 23, 2011

To All IT Team Members:

Since Maximo has gone live in Jan-2011 for some of the City’s departments, I have been doing some reading – researching on how we should improve our services in the IT department, and more importantly this organization – The City, and since then compiled some of these documents together, and will try to share with you in this message.

In Business Technology and IT Projects today, most failures are related to the lack of an understanding on what customer really expect the system to do (Operational Requirements) and why (Business Results). Today, the City's IT department is working towards the goal to transform itself to improve the quality of Information Technology (IT) services using two approaches combined - Information Technology Infrastructure Library - ITIL (implementing through Maximo by the Service Desk team), and Lean Six Sigma (lead by Chris Robles & Sally’s Planning team).

The two approaches, although distinctly different & independent but often comes with a common focus on customer satisfaction at their core. You have heard in the past few months that several team members have begun researching the strength of the ITIL practices, receiving training on this subject, and we are working on helping Carrie to obtain her certification in Lean Six Sigma’s Green Belt program. Fortunately many organizations are coming to realize the value of combining the two, in order to take advantages of each other strength.

The ITIL defines a framework to deliver and support IT-based services. There are many components of the framework and each component has a set of recommended practices and procedures that can be adopted individually or in total. The ITIL originated in the United Kingdom's Central Computer and Telecommunications Agency, now called the Efficiency & Reform Group.

Lean Six Sigma, on the other hand, was conceived in the manufacturing sector of private industry as a way to drive quality improvement while reducing waste/operating costs by improving the consistency of processes. Lean Six Sigma is a formal approach for evaluating which processes are important to a business, measuring the quality of outputs for those processes statistically, and using the methodology for continuously mapping, measuring and improving the processes and hence the results.

Since ITIL and Six Sigma each have their own merits and each have been used independently, why should they be brought together?

ITIL tells an IT organization what should be done, but it does not specify how it should do it. For example, ITIL specifies that priority should be assigned to each incident that comes into the service desk. But, it does not specify how that priority should be assigned. So with ITIL, the IT staff has to find out the details of process flow and create detailed work instructions on their own as suitable for their organization.

On the other hand, Lean Six Sigma tells an IT unit how to find the root cause of problems and thus how a problem can best to fixed. What it does not specify is any best practices, specifically for IT service management.

Differences in Two Improvement Methods for IT Service Management

Focuses on

Provides

IT Infrastructure Library

The "What" of IT Service Management

A Comprehensive Set of Best Practices and Guidelines for IT

Lean Six Sigma

The "How" of Quality Improvement

A Methodology and Tools for Continuously Improving Quality


So It can be said that ITIL defines the "what" of IT service management, and Lean Six Sigma defines the "how" of quality improvement. Together they can be a perfect fit for improving the quality of IT service delivery and support. But bringing them together can be a challenging task.

Lean Six Sigma can be used to improve the existing processes in an organization which is already following ITIL framework, and also can be used in an organization which is just migrating to the ITIL framework. The approach for such an organization would be to analyze the risk, compare existing processes to that what is required in the ITIL-compatible state, and then – using a business case – define the way it will migrate to that ITIL-compatible state. That course must be written and there must be a way to measure progress toward the goal.

There are number of tools available to manage the workflow as per the ITIL framework. Since ITIL specifies what is expected from a workflow but does not specify how this workflow should be, the IT organization must decide this workflow. Since the workflow is nothing but a process, this is where linking Lean Six Sigma and ITIL is helpful for the business. Lean Six Sigma can help the business standardize and optimize any process, including end-to-end workflows. The optimization can including adjusting processes to conform to the ITIL framework as well as dramatically reducing any other defects. The result will be happy and satisfied customers and a greater return on investment for the business.

How ITIL and Lean Six Sigma Can Be Combined:

As an example of how to go about combining ITIL and Lean Six Sigma, consider that an IT organization is migrating an existing process to an ITIL-compatible process and thus is applying the DMAIC (Define, Measure, Analyze, Improve, Control) roadmap of Lean Six Sigma:

DMAIC and Connection to ITIL Service Management Practices

Lean Six Sigma
Phases

Lean Six Sigma
Process Steps

Lean Six Sigma
Tools

Service Management
Touchpoints

Define

> Identify problem
> Define scope
> Select team

> Quality Function Deployment
> Brainstorming
> Interviews

> Inputs from incident management
> Analysis

> Problem identification and recording

Measure

> Identify measurement system
> Measure current process performance

> Gage R&R
> Cost of poor quality

> Problem classification and allocation

Analyze

> Identify root causes of problems

> Process analysis
> Fishbone diagram
> Pareto chart

> Problem investigation and diagnosis

Improve

> Recommend/implement solutions

> Failure Mode and Effect Analysis
> Benchmarking
> Piloting

> Request for change

Control

> Implement process control
> Determine process capability
> Sustain improvement

> Control charts
> FMEA
> Cost of port quality

> Problem evaluation review

> Closure


Define phase: Organizations should understand the requirements of the customer by applying voice of the customer techniques, and correspondingly should identify the process that need to be improved. Then they also must make sure that resources required to tackle the improvement process are in place. Organizations should always remember that the goal of the Define phase is not only to align the Lean Six Sigma strategy to the ITIL strategy but also to the organization's business strategy. That is very important for the success and feasibility of the project.

Measure phase: Organizations should assess the current state of the process. They should define the defects, gather baseline information about the process, validate the measurement systems and establish more specific improvement goals. Since this phase is based on data and measurements, so any source of assumption should be eliminated. Organizations should determine the issues and critical-to-quality factors (CTQs) of the desired process.

Analyze phase: Organizations should analyze the data collected during the Measure phase. They should identify the sources of variation and then prioritize these source. Organizations thus separate the "vital few" variables from "trivial many" variables and hence propose a possible pilot solution for an improved process.

Improve phase: Organizations should confirm whether this proposed pilot solution meets the quality improvement goal of the project. If not, then they should further refine the pilot process to meet the desired goal.

Control phase: Organizations should implement the pilot solution at the organization level and ensure that the improvement is sustained to prevent the process from reverting back to its prior state. At this stage, knowledge management is very important. The lessons learned from this improvement process must be properly documented and made available for process improvements in other areas. Done properly, this Lean Six Sigma methodology will provide an ITIL-compatible process that is aligned with the organization's business goals.

Please continue to embrace these technological & process changes just as we implement business improvement methodology to other departments.

Thank you,
Sae

Hong Sae (Sae)
Chief Information Officer
Information Technology Department