Making the Invisible VisibleFCB Partners WebinarMay 13, 2015

TOM PAIDER | Associate Vice President, Build Capability Leader@paidert thomaspaider

Nationwide’s Lean and Agile Journey

We Are a Strong Mutual CompanyBuilt To Serve Our Members

25MILLION

CONTRIBUTEDTO NONPROFITS

AND COMMUNITIES

$

PROVIDER OF PUBLIC-SECTOR

RETIREMENT PLANS

1#WRITER OF

FARMOWNER INSURANCE

1#

15+MILLIONPOLICIES

91ON THE

FORTUNE 500

#

$168 BILLIONIN ASSETS

FOUNDED IN 1926 BY MEMBERS OF THE OHIO FARM

BUREAU

EARNED 2014 GALLUP GREAT WORKPLACE AWARD AS

ENGAGEMENT CLIMBED FOR SIXTH STRAIGHT YEAR

500M$

COMMITTED TO THE COMMUNITIES WHERE WE

LIVE AND WORK SINCE 2000

$25 BILLION IN REVENUE FOR 2014

Nationwide has more than 33,000 associates serving customers in nearly every state.

2

OVER

35,000+PERSONAL

COMPUTERS

10,000+SERVERS

8,500+IT WORKFORCE(PREDOMINANTLY

IN-HOUSE)

1+ BILLIONANNUAL IT

SPEND

~8 PBIN STORAGE

Technology at Nationwide

$

3

44

575,000 messages

30,000 registered members

50% contribution rate

500,000 connections

5

Sep 2008

Present

6

Integrate and synchronize IT with the business

Provide quality information and applications

Enabling the flow of value to the customer

Using systems thinking and awesome

problem solving

Source: Mike Orzen, IT Leadership Network Kickoff, Center for Operational Excellence, The Ohio State University

What is Lean IT?

Engaging People, Improving Process,

Leveraging Technology

Traditional Systems Lean Systems

Authority Responsibility

Results Focused Process Focused

Expert “Staff” Functions Expert Workers

Jump to Solutions Root Cause Problem Solving

Corner Office Management Go See Management

Report Analysis (delayed) Visual Management (real-time)

7

What Lean IT Looks Like to Us

8

A Four-Tier Management System Sustaining the Lean Transformation

and Enabling Real-Time Management

All levels of the system are connected, ensuring a common focus on value

delivery, employee engagement, and problem solving

Director

Frontline

Vice President

Feedback

and Coaching

Workflow and daily identification of key actions needed to address previous days issues and prevent

reoccurrence

C-Suite

Escalatio

n

Escalatio

n

Escalatio

n

Rolled Up

Metrics

Feedback

and Coaching

Feedback

and Coaching

Daily Gemba

Weekly Gemba

Monthly Gemba

Review of strategy, escalated items, longer term trends, and continuous

improvement opportunities.

Rolled Up

Metrics

Rolled Up

Metrics

Tier I Visual and Huddle System

(Daily)

Tier IV Visual and Huddle

System (Weekly)

Tier II Visual and Huddle System

(Daily)

9

Tier III Visual and Huddle

System (Weekly)

Daily Gemba

Engagement

Productivity

Defects Cost

Associate engagement is increasing for teams that have deployed Lean and IT has had 7 years in a

row of increasing engagement…

High and critical defects counts are on a 5-year positive trend while

96% of releases have ZERO defects…

87% of production application releases are

better than industry

averages…

Costs for application maintenance have been

reduced by 20%...

Real Results

10