LITA Executive Webinar with Niels Loader Niels will share the insights gained in determining and implementing metrics within IT, particularly focusing on the metrics used in a Lean IT organization. He will focus on the key pitfalls and successful strategies for getting to the right metrics and making them work.

1. Measuring Success in
the Lean IT World

2. LITA
Executive
Webinar

3. Host and Presenter
Deborah Burton
Marketing Lead
Lean IT Association (LITA)

4. LITA - Pioneering a Global Standard
for Lean IT Education & Certification
● Lean IT Association (LITA) is a non-profit organization founded by three
Accredited Training Organizations (ATOs) - ITpreneurs, Pink Elephant,
Quint Wellington Redwood and three Examination Institutes (EIs) - APMG,
EXIN, PEOPLECERT International Ltd. To realize its broader purpose
LITA aims to provide:
● An industry-standard set of Lean IT reference materials and other
resources for practitioner organizations to use;
● An certification scheme aimed at practitioner organizations looking to
adopt Lean IT principles in the IT Service development and operations
department as well as professionals that want to be certified in Lean IT on
various levels.

5. Today's Guest Presenter
Niels Loader,
Partner, Quint Wellington Redwood,
Content Board Lead, Lean IT Association,
Chief Examiner Lean IT, APMG
● IT Service Management
● IT Performance Improvement
● Lean IT
● DevOps

6. Watch the webinar recording
Webinar Recording
Measuring Success in the
Lean IT World

7. Measuring
Success in the
Lean IT World

8. Today’s Agenda
1. Why do we need metrics?
2. Lean IT Metrics … and how to choose them
3. Getting metrics to work: Definition and Pitfalls
How can I measure
my success?
Objective
To ensure you can measure your improvements, successes
and progress

9. Why Metrics?
9

10. What Should I Measure?
Age-old Question

11. Why Measure?
 Influence behavior
 Ensure you have facts concerning
a particular situation
 Provides the answer to a
question
 Helps you to provide feedback

12. Metrics are just the Beginning
Why is it important
Measure
From goals to KPIs
• Ensures discussions are based on facts
• Ensures key measurements to monitor whether we are
achieving our goals
• Facilitates concrete discussions concerning targets
Visualize
From KPIs to steering information
▪ Consistent and effective communication about goals and
priorities
▪ Enables real-time updates and continuous improvement
▪ Ensures everyone has access to the same information
Steer
From steering information to goals
▪ Ability to correct where things go wrong
▪ Ability to give feedback on performance (positive and
negative)
▪ Ability to discuss responsibilities
12

13. Key Lean IT Metrics
13

14. Lean IT Metrics are Clearly Customer-focused
1. Lost Production Hours
2. Time to Market of Changes
3. Effectiveness of Changes
4. Quality of Plans
5. Number of Proactive Changes
No IT Outages
Quick
Time to Market
of Changes
“Maintain current functionality” “Provide new functionality” “Give advice on current and
new functionality”
New Use of IT
Listen to the Voice of the Customer when choosing metrics

15. Customer-oriented metric: Disruptions
No. of
incidents and
resolution
times
Time that
incidents are
open
Time that IT
customers
cannot work
Excess cost
and lost
revenue  
Priority Total number
Average time to
repair (days)
Number of
users
affected
Gross lost
production
days
Cost per
day
Dependancy
Net Lost
production days
Net costs
Costs per day
to business
per incident
Total cost to the
business
Critical 1042 0.7 20 14,227 € 240 50 % 7,113 € 1,707,213 5000 € 3,556,695
High 2796 5.4 10 149,634 € 240 40 % 59,853 € 14,364,817 1000 € 14,963,351
Medium 12196 10.3 4 500,948 € 240 30 % 150,284 € 36,068,234 500 € 62,618,462
Low 376 9.8 1 3,699 € 240 20 % 740 € 177,556 100 € 369,908
16410 668,507 217,991 € 52,317,820 € 81,508,415
It’s about
Lost Production Time
not Mean Time To Repair!

16. • A classic Lean process metric
• Just-In-Time
• Use for … everything
• “Time to Market”
– Start the positive part of the business case
– Meet agreed implementation date
– Work within budget
– Reliability
Customer-oriented metric: Lead Time
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
18 20 22 24 26 28 30 32 34 36 38 40 42 44 46
Average Customer Lead Time
Total
4 per. Mov. Avg. (Total)

17. Internal Lean IT metrics: Time
Time is IT’s primary
production factor
Key Metric:
Earning Capacity Analysis

18. Internal Lean IT metrics: Delivery
DevOps is the ultimate
search for FLOW within IT
Key Metric:
Release Frequency
0
10
20
30
40
50
60
70
80
18 20 22 24 26 28 30 32 34 36 38 40 42 44 46
Number of Story Points per week
Total
4 per. Mov. Avg. (Total)

19. Bringing the Metrics Together: The KPI Tree
19

20. Getting Metrics
To Work
20

21. Measuring is Not as Easy as it Seems
Pitfalls of Metrics
• Spending insufficient time on defining metrics
• Focusing on the numbers and not on what the
numbers are trying to tell you
• Steering on individual scores rather than the
trend
• Creating ‘insignificant’ metrics
• Always test metrics against Lean Principles

22. Measurement Do's and Don’ts
22
• Do not assume that a measurement measures what
people say it measures
– Describe the purpose of the measurement
• Clearly define the things you want to measure
– Ensure the measurement process is accurate and
precise enough for the purpose
– Ensure the measurement is trusted and that its quality
is constant
– Define the population you are measuring
– State when measurement starts and ends
• Use tools to reduce errors
You ALWAYS
need to explain a
measurement.
No measurement
is self-
explanatory.

23. Getting Metrics to Work: Definition
KPI : Lead time
Formula:
Lead time
• Date/time customer submits the request (in Service Now: field
“Open Date”) subtracted from the date/time the request is fulfilled
(in Service Now: field “Actual Close Date”. This gives the Lead
time.
• For each type of unit of work, the average lead time is calculated
per week.
.
Issues (Ways in which the KPI can be 'gamed'):
• Incorrect registration of stories and tickets may lead to an incorrect view of
lead time performance.
• Requests are not registered at all, meaning no data is available
Frequency of reporting:
Weekly
Data should be updated on a daily basis, or be available realtime
Measurement Accuracy
1 decimal
Data collection process:
- Extract data (see formula) from ServiceNow (separate files)
- Stories from Backlog section
- Tickets from Risk section
- Load into Excel
- Calculate Lead Time according to formula
- Present data as a time series chart showing at least the last 16 weeks with
a 4-period moving average trendline
KPI owner:
RS MT
Category: process, customer
Definition: Measure the lead time of all units of work in order to
understand where improvements in processes can be made to
decrease lead time
Unit of measurement (%, number, index)
- Number
Level at which the performance indicator is used:
RS MT, teams
Goal: To influence behaviour towards ensuring that customers get the
value they have requested as quickly as possible

24. Getting Metrics to Work: Key Steps
Defining and measuring metrics
• Use the KPI card
• Start with a quick measurement, automate later
• Learn to work with the metric
Using metrics
• Focus on the behavior you want to change
• Lean IT metrics lead to action
• Integrate metrics into your visual management
Setting goals
• Leadership team of IT is responsible for setting the
direction
• Identify the aspects of strategy you want to measure

25. Want to Learn More About How Metrics fit into
Lean IT?
25

26. Contact Us
Niels Loader
Partner Quint Wellington Redwood,
LITA Lead Author Courseware
Development
n.loader@quintgroup.com
Deborah Burton
Marketing Lead
Lean IT Association (LITA)
deborah.burton@leanitassociation.com

27. Experience Lean IT in Action
We believe that “Lean Thinking” should be an integral part of every
Enterprise IT organization and also every IT professional’s toolkit.
Lean thinking is about understanding how to assess business processes, to identify and eliminate
waste. Today, many IT professionals stakeholders from cross-functional areas -operational, tactical
and strategic — have or are planning to get certified in Lean IT with the objective of reducing waste
and improving efficiency.
27
Become a LITA Training Partner

28. Watch the webinar recording
Webinar Recording
Measuring Success in the
Lean IT World

29. Thank you!