Value Stream Optimization. Marco the Mechanic.
Swisscom’s continuous improvement activities have been bundled under the brand IMPROVE.
Together they assure the implementation of 3’000 ideas per year, with a benefit of 30 MCHF annually.
It’s the result of hands-on guys like Marco.
Marco Magnaguagno
To take it to the next level the IMPROVE core team has piloted and learned to map and optimize Value Streams in Customer Care, Sales, HR and Business Steering.
Marco Magnaguagno gives us an insight into what they have achieved and learned – and why he ended up dressed as a Mechanic in the video he’s also provided.
Before we get started.
I have lead the above-mentioned IMPROVE team until the end of last year.Marco is one of my former colleagues. He is continuing the journey we started together.
The Basics of Value Stream Optimization
Value Stream Optimization starts with Mapping the current process – together with employees and managers that actually do the work. With sticky notes (post-its), felt pens, on a big piece of paper.
Then, instead of just solving the existing problems, we’ll define a (utopic!) Northern Star and Design Principles for guidance and sketch a rough Future State of the Value Stream-to-be.
In this Future State we mark out Focus Areas and assign them each to a team. The team then starts experimenting seriously to improve step-by-step (PDCA: Plan, Do, Check, Act) towards the Future State. The leader coaches them (Coaching-Kata).
All impacts are tracked on a Shopfloor table to understand and multiply successful ones to other teams in the organization.
You can find a broader description of the approach piloted in my post on Lean Leadership. How to Foster Fruit Farmers or read an online article here: HR Today (in German).
INTERVIEW | 5 Questions
(c) Swisscom
Marco Magnaguagno
Head of IMPROVE Group Functions, Swisscom (Switzerland)
“An open-minded, ambitious program manager, that likes to get his hands dirty at work.”
1. Marco, what is the IMPROVE program today?
IMPROVE is our Swisscom-wide Continuous Improvement Program. The Head of Human Resources is the sponsor of the program; I report directly to him. Each of our business segments has its own IMPROVE responsible, for example from the Enterprise Customer segment, that report to their member of the board.
I am responsible for the IMPROVE activities at all the Group Functions like HR, Finance, Communications, Strategy etc. Together with my colleagues we form the IMPROVE core team and we manage the direction and development of the program.
(c) Swisscom
We think in 3 levels of possible improvements. Today we are strong on the POINT level. As you can see with the roughly 3’000 implemented ideas, that have its origin from a single employee’s observation in his/her daily work life.
We’re now venturing into the FLOW level. So far with a good number of Value Streams that stay within their segments, and some first ones that really have a cross-functional span.
The first results are very promising. What always strikes me is to see the teams after the first day of Mapping their Value Stream. They are usually shaking their heads in disbelief of the not-yet addressed potential, and then very quickly want to get to work, and improve. We’re primarily looking at Back Office/Admin processes. In many cases I believe 30-50% improvements are possible.
On a management level we’re still struggling with acceptance. They don’t really believe yet what and how IMPROVE really contributes. So, there’s quite some work to be done on the SYSTEM level – primarily Leadership topics.
2. How did you end up at IMPROVE?
I have a Finance background. As a line manager I have always been keen on improving transversal processes. And financial processes are usually cross-functional by nature. When I first got active as an IMPROVE responsible, it was “only” 40% of my regular time, and only in Business Steering.
Personally, I see it every day that we’re not using the potential laying bare in our organization. I am convinced that it will massively pay off to invest in our own employees’ improvement competencies. No matter on what hierarchical level.
It is my picture of the future where many more colleagues share the responsibility for a successful economic future of our company.
3. If you look back in 5 years from now, what do you see at Swisscom?
I see that we’ve really made a many, many, many, many, many steps forward in “Lean Leadership”. IMPROVE has become part of our DNA. Management doesn’t question it anymore, they just do it. Lean methods have become every day work tools to achieve our ambitious goals. All we’ll still have to do is to enable them, keep the tools sharp and functioning.
We’ll no longer be perceived as the company-wide program (like today), but as a “lean enabling team” that helps team leaders coach, and we support in specific hot topics, as well, as ensure a solid on-boarding for new managers or new hires.
Also, I see that we have an attractive development path for interested and highly engaged employees that want to specialize in Lean/IMPROVE methods and leadership.
(c) Lars Diener-Kimmich, seen at Swisscom
4. Looking at the challenges ahead of you, which ones do you see, and how to plan on tackling them?
Generally we tackle challenges by experiment, guided by a Northern Star.
The major challenges I see today, are a) developing/establishing Lean Leadership, b) making impact measurable and c) developing the above-mentioned development path.
In order to tackle these challenges, we’ll need to show the managers what makes Lean successful. They’ll learn most of the theory and methods on the go. Hands-on. They must have the chance to experience themselves that IMPROVE helps them to achieve their goals.
And, just as important, we need to align our activities with our corporate values. Developing our employees’ improvement and innovation capabilities is spot on with “Passion, Open for new things, Questioning, Sustainability”. So, I am counting on synergies, here.
5. You provide us with a video. What is it about?
It’s one thing to talk about IMPROVE – but better to see it. Best would be to experience it.
So, here’s a short clip with some impressions from a leadership workshop with about 100 managers from our Finance department.
We let them see – and partly experience – how we optimize a Value Stream. As an introduction we set the scene of a Formula 1 box. I ended up being the Mechanic changing a wheel – therefore the white overall.
Thank you, Marco!
Thank you. I am always interested in getting to know practitioners like me – to exchange and learn. If you want, get in touch with me: marco.magnaguagno@swisscom.com.
I am looking forward to exchanging our learnings.
Video (2:26 Min.)
Company profile: An overview of Swisscom
Swisscom is Switzerland’s leading telecoms provider, with its headquarters in Ittigen, near the capital city, Berne. With over 21,000 employees, it generated turnover of CHF 11.7 billion in 2014. Swisscom is one of the most sustainable companies in Switzerland and Europe.
