IT Enhancements and Lean Process Improvement - Technology versus Process? Or Technology and Process?

 


One of the questions we frequently encounter in Lean improvement is the use of IT to resolve problems. There are many technology applications out there. Aside from the common applications of Microsoft Office, there are applications for scheduling, forecasting, purchasing, accounting, etc. The computer, the internet, and more recently SaaS, has allowed many productivity enhancements to occur through automating the aggregation and disaggregation of data for decision making. And these calculations can be completed in fractions of a second.

However, there are many managers out there today that think that an IT application can solve most if not all problems, including money opportunities and improving efficiencies. This 2009 article (granted it's a bit dated) published in EComputer World disputes these claims with some pretty astounding data. The data is specific to the healthcare sector. http://www.computerworld.com/s/article/9141428/Harvard_study_Computers_don_t_save_hospitals_money 

The article states that the value enhancements were delivered to administration and not the clinicians. One of the fundamental principles in lean improvement is to define or specify value in the eyes of the customer. So who is the customer of an IT system; the administration, the clinician, or the patient? I think when this can be properly answered, IT solutions can deliver all kinds of value.

Another point I frequently stress with clients is to fix the process and the workflows first, then deploy a technology solution. As an U.S. Air Force Lt. Colonel once wisely told me, "software = process + policy". Software hardwires the workflows. To get the value, you first have to define and optimize your workflows. Unfortunately, with many software packages, the functionality and screens are already primarily fixed. Your workflow simply becomes screen completion within the software package you purchased.  This has been changing over the last five years and I believe further enhancements will continue to unfold. But today, you better be sure the software workflows are "lean" because a lot customization will either not be possible or really expensive. 

While it may sound like I am against technology, I am not, in fact I'm just the opposite. But I am a bigger fan of defining a process first. And by defining process I mean eliminate as much non-value added as you can, and then create standard operations. When you have done these two steps, you may now be at a point where you need to leverage technology to take out even more non-value added activity, or to hardwire the solution. Or better yet, to mistake proof the solution. 

One final thought is you should have realistic expectations in terms of what IT solutions will do for your organization. It will not solve all your issues.  It can eliminate errors in readability, eliminate free text errors, reduce duplication of data entry, streamline communication flows, etc.   So the bottom line is...... technology and process!  Just make sure to lead with process.

What are your experiences? 

Lean Blessings,

Ron

Ron Bercaw

President, Breakthrough Horizons Ltd

www.breakthroughhorizons.com

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