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All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
Stephen Parry Author of Sense and Respond Senior Partner at Lloyd Parry
Stephen.parry@lloydparry.com
www.lloydparry.com Twitter @leanvoices
All sources, influences, acknowledgements and reading lists can be found on our blog at www.leanvoices.com
Myth busting Lean for Staff, Management and Executives.
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Stephen Parry Founder and Senior Partner at Lloyd Parry Author of Sense and Respond The Journey to Customer Purpose. ‘I promise to challenge your current organisational thinking and enable you to differentiate your business’ Stephen Parry Winner of the National Business Award for Best Customer Service Strategy. National Business Awards the Judges declared “the company created an entire cultural change around the needs of its customers and could as a result demonstrate business growth, innovation and success.” Partner at Lloyd Parry Lloyd Parry delivers transformative Lean programs to large scale global organisations in many sectors including; Telecommunications, IT Services, Financial Services, Logistics, Outsourcing and Local Government. As a result of adopting our approach to Lean-Service a number of companies have won national industry awards for Best Service Strategy, Best People Development Program and awards for Innovation and Creativity.
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The program for today Why Lean is not about cutting staff.
Why Lean is about people. Why customers demand Lean.
• Call to action. • The customer problem. • The organisational problem. • The Lean-Service Solution. • The Lean-Service ‘Work-Climate’
what is it and why is it important for your business and your customers?
• Lean-Service outcomes. • Time for a change. • References and sources.
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The customer/service user challenge: They don’t have time………….they say things like:
Solve my problem, completely. Don't waste my time or cause me hassle. Minimise the cost of doing business with you. Provide exactly what I need and deliver value where I need it. Reduce the number of decisions I must make to resolve my problems. Don’t get me to help you, I want you to help me!
Adapted from Lean Solutions: Jim Womack and Dan Jones by Stephen Parry
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Question:
What would service organisations do if they had to pay for all the service user or customer time
they wasted?
Adapted from Lean Solutions: Jim Womack and Dan Jones by Stephen Parry
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Traditional approach: Feasible parts creating an infeasible whole.
Functional units
Independent solutions designed to meet functional targets and goals.
End-to-end service delivery
It’s not unusual to have thirty or more solutions lining up for attention.
F1 F2 F4 F3 Fn
S1 S2 S4 S3 Sn
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Improved end-to-end service delivery?
F1 F2 F4 F3 Fn
S1 S2 S4 S3 Sn
Functional units
Independent solutions designed to meet functional targets and goals.
It’s not unusual to have thirty or more solutions lining up for attention.
We need to move from Vertical Management to Horizontal Management
Traditional approach: Feasible parts creating an infeasible whole.
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What type of work-climate do customers, employees, managers and leaders create?
Mass Production Work-Climate
Lean Service Work-Climate
Willing contribution
Transactional and processed
Incentivised contribution
Functional efficiency
Direct and control
Relational and personal
End-to-end effectiveness
Listen and adapt
Company pushes products and services ON-COMMAND Customers and employees are designed out
Customer pulls products and services ON-DEMAND Customers and employees are designed in
Customer/User
experience
Employee motivation
Executive leadership
Support operations
The Behaviours, Measures, Job Design and Purpose are different.
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Transformation objective and expectation
Base-Line Current Performance
Perf
orm
ance
New performance falls short of expectations
Lean Tools and Methods for process improvement
Why do Lean initiatives fall short of expectations ?
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Transformation objective and expectation
Base-Line Current Performance
Perf
orm
ance
New performance falls short of expectations
Lean Tools and Methods for process improvement
Lean Work Climate Engaging and understanding
Learning and Sharing
Leading and Decision Making
Improving and Changing
Work Design Measurement Behaviour
Perspective
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™
All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
Does the job design allow all staff to engage with customers and users? To what extent can staff modify solutions without management permission? Is everything forbidden unless permitted, or is everything permitted unless forbidden?
ENGAGING
™
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Do staff routinely share business intelligence and improvement information with senior management? What is the management focus? - employee utilisation, cost reduction and work intensification or, creativity, customer outcomes, problem solving, learning and sharing knowledge, collaboration?
LEARNING
™
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All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
Do Leaders foster a no-blame climate to surface problems for teams to work on? Do leaders routinely spend time at the workplace solving front-line issues with the staff? Do leaders pay more attention to efficiency-driven functional targets or end-to-end effectiveness at creating customer and user outcomes? Who does the Leading? A few select people or most people?
LEADING
™
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Do employees influence end-to-end business processes? What influence does staff have to improve the measurement system? What influence do employees have on improving products and services?
IMPROVING
™
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All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
Basic Standard Excellent
Autonomy
Customer facing activity
Intelligence gathering
Sharing team intelligence
Excellent Standard Basic Mass Production Work-Climate Engaging
Organisational Understanding
Sharing intelligence within the function
Sharing intelligence with other functions
Sharing intelligence with senior managers
Learning
Lean Service Work-Climate
Transformation objective Improvement objective ?
Global ICT and Networks Company B2B: Before and After
Climetrics®
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Basic Standard Excellent
Performance Management
Leadership approach
Responsiveness to customer issues
Implementing ideas to better serve
customers
Excellent Standard Basic Mass Production Work-Climate Leading
Employee influence on improving service
Employee influence on work practices
Employee influence on other functions
Employee influence on end-to-end
processes
Improving
Lean Service Work-Climate
Transformation objective
Global ICT and Networks Company B2B: Before and After
Climetrics®
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Global ICT and Networks Company B2B: Before and After
Basic Standard Excellent
Autonomy
Customer facing activity
Intelligence gathering
Sharing team intelligence
Excellent Standard BasicMass Production Work-ClimateEngaging
OrganisationalUnderstanding
Sharing intelligence within the function
Sharing intelligence with other functions
Sharing intelligence with senior managers
Learning
Lean Service Work-Climate
Transformation objective Improvement objective ?
Basic Standard Excellent
PerformanceManagement
Leadershipapproach
Responsiveness to customer issues
Implementing ideas to better serve
customers
Excellent Standard BasicMass Production Work-ClimateLeading
Employee influence on improving service
Employee influence on work practices
Employee influence on other functions
Employee influence on end-to-end
processes
Improving
Lean Service Work-Climate
Transformation objective Climetrics®
Lean Work Climate Engaging andunderstanding
Learning and Sharing
Leading and Decision Making
Improving andChanging
WorkDesign Measurement Behaviour
Perspective
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Statement Before % After %
Understanding our services allows me to take effective action. 42 100
Understanding the customer improves my commitment. 14 83
Understanding customers helps me make better decisions. 15 95
It is my job to share information with my peers and managers. 0 63
I help my organisation understand what customers value. 0 82
My manager supports my decision when I have customer data. 0 49
The management team is committed to improving the quality of work 17 50
Statement Before % After %
I am involved in decision making. 28 45
I make decisions with the customer in mind. 14 67
My data improves the quality of decision making. 0 83
I can improve processes and methods to serve the customer. 15 65
I use customer data to help managers make better decisions. 17 63
I am confident making decisions with customer data. 13 66
I understand how the whole organisation works for customers. 16 68
Cambridge University Survey: Telco before and after highlights
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Challenge •The operating models we have all been working with for so long have become irrelevant. We have been concentrating on technology rather than concentrating on what customers actually want. •We need to move from a Break fix service to Managed Services. Objective •Deliver transformed customer experience •People - Deliver “connected performance” and Create “excellent leaders” and an adaptive workforce. Solutions Highlight •Working with Sense and Respond we implemented a unique transformational programme, which radically improved our service culture by tapping into the customer intelligence residing with the front-line staff.
1st year results have shown: • Improved the customer experience cycle time by 40% • Reduced hand-offs by 33% • Improved customer understanding and success • Improved the customer satisfaction index 30% • Improved out of service time 71% • Reduced escalations 83% • Reduced routine updates 67% • Reduced work in progress and associated overheads 49% • Improved resolution at first point of contact 64% • Have a highly involved and motivated workforce
Operational Savings to date
•07/08 £2, 163, 000
•Reduced Customer Churn
Climetrics® Telco results
™
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Fujitsu Case Study: Results
Customer satisfaction up by 70%.
Unwanted demand decreased by 60%.
Employee satisfaction increased by 40%.
Attrition dropped from 40% to 8%.
Operating costs reduced by 45%.
Increased business revenues.
Created a market differentiator.
National Business Awards
Best customer Service Strategy ‘Sense and Respond’
Fujitsu generated “an entire cultural change around the needs of its customers and could as a result demonstrate business growth, innovation and success.”
Source Fujitsu Case Study: Sense and Respond Book Used with kind permission
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What does Lean-Service mean for the organisation, leaders, managers and staff?
• Organisation. – Consider the measurement and governance
systems – More rigorous Continuous Improvement
structures – Potentially new commercial arrangements with
customers – New operational performance measures – New operating model may be required – Work Design implications
• Leaders – Might be assigned to end-to-end accountabilities
for particular value creating activities. – Encourage fail-safe experimentation – Encourage more questioning from managers and
staff – Create a blame-free culture – Have patience
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What does Lean-Service mean for the organisation, leaders, managers and staff?
• Managers – Operational review processes – Visual Management – A3 thinking coaching – Performance review re-focus – Promote a blame free culture. – Planning time for improvement – Encourage staff to question
• Staff
– A3 thinking problem solving – Question, seek evidence – Learn a number of general Lean
improvement methods and role specific Lean methods
– Learn more about other functions and how they operate.
– Learn to trust management.
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Useful References
Adaptive Enterprise by Stephan Haeckel Landmark Education and the Landmark Forum www.landmarkworldwide.com
The Essential Deming by Edward Deming Fourth Generation Management by Brian L. Joiner
The Human Side of Enterprise by Douglas McGregor Lean Solutions by James P. Womack and Daniel T. Jones Lean Thinking by James P. Womack and Daniel T. Jones
The Machine that Changed the World by James P. Womack and Daniel T. Jones Maslow on Management by Abraham H. Maslow
I would like you to cheat by John Seddon Principles of Mass and Flow Production by Frank G. Woollard
Systems Thinking: Managing Chaos and Complexity: A Platform for Designing Business Architecture by Jamshid Gharajedaghi Toyota Production System by Taiichi Ohno
Understanding Variation: The Key to Managing Chaos (2nd Edition) by Donald J. Wheeler Service Quality by Benjamin Schneider and Susan S. White
Sense and Respond: The Journey to Customer Purpose by Stephen Parry, Susan Barlow, and Mike Faulkner
www.lloydparry.com www.lloydparry.com/newsletter
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Lloyd Parry Lean Service Transformation Consultancy
Lloyd Parry use Lean Service principles to support their clients in the design, transformation and management of organisations. We also provide executive and change leadership education and route-map designs. We have developed Climetrics® a unique organisational diagnostic used to identify how your management activities, measurement systems, structures, and delivery capabilities can be combined to create a lean-service climate that leads to high-performance and long-term profitability. Lloyd Parry have delivered transformation programs to large scale global organisations in many sectors including; Telecommunications, IT Services, Financial Services, Logistics, Outsourcing and Local Government. As a result of adopting our approach to Lean-Service a number of companies have won national industry awards for Best Service Strategy, Best People Development Program and awards for Innovation and Creativity. Best Customer Service Strategy - National Business Awards the Judges declared “they created an
entire cultural change around the needs of its customers and could as a result demonstrate business growth, innovation and success.”
All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
Stephen Parry Author of Sense and Respond Senior Partner at Lloyd Parry
Stephen.parry@lloydparry.com
www.lloydparry.com Twitter @leanvoices
All sources, influences, acknowledgements and reading lists can be found on our blog at www.leanvoices.com
Myth busting Lean for Staff, Management and Executives.
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Customer Value Enterprise ® is a registered trade mark of Service Climate Management Ltd.
Climetrics ® is a registered trade mark of Service Climate Management Ltd.
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© 2014 Service Climate Management Ltd. All rights reserved
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