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The Lean and Agile Workplace: People, People, People.These are the three principles for designing adaptive, agile and engaging workplaces.
Stephen ParryAuthor of Sense and RespondSenior Partner at Lloyd Parry
Twitter @LeanvoicesLinkedIn
Website, Newsletter and Blog www.lloydparry.com
www.slideshare.net/SGParry
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Stephen Parry Founder and Senior Partner at Lloyd ParryAuthor 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
Author and Designer of Climetrics® Diagnostic and The Adaptive Organisation Theoretical Framework.
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 ParryLloyd 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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Lloyd Parry Lean Service Transformation Consultancy
Lloyd Parry use Lean Service principles to support their clients in the design, transformation andmanagement of organisations. We also provide executive and change leadership education androute‐map designs.
We have developed Climetrics® a unique organisational diagnostic used to identify how yourmanagement activities, measurement systems, structures, and delivery capabilities can becombined to create a lean‐service climate that leads to high‐performance and long‐termprofitability.
Lloyd Parry have delivered transformation programs to large scale global organisations in manysectors including; Telecommunications, IT Services, Financial Services, Logistics, Outsourcing andLocal Government.
As a result of adopting our approach to Adaptive Organisations using Lean, a number ofcompanies have won national industry awards for Best Service Strategy, Best People DevelopmentProgram 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.”
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References , influences and acknowledgements.Book Sense and Respond: The Journey to Customer Purpose. Parry, Barlow, Faulkner (Palgrave Macmillan)
The Human Side of Enterprise Douglas McGregor Annotated and Updated by Joel Cutcher‐Gershenfeld
Beyond McGregor’s Theory Y: Human Capital and Knowledge‐Based Work in the 21st Century Organization Kochan, Orlikowski, Cutcher‐Gershenfeld http://mitsloan.mit.edu/50th/pdf/beyondtheorypaper.pdf
Service Climate and Customer Intelligence Workers. Parry and Fisher (2006)
Cleared for take‐off Strategies in Lean IT – Amadeus http://www.amadeus.com/documents/lean‐it/Amadeus_Lean_IT.pdf
Reciprocity Definitionhttp://en.m.wikipedia.org/wiki/Reciprocity_(social_psychology)
Reciprocity An Economics of Social Relations.Kolm (Cambridge)
Service Quality Research Perspectives.Schneider, White (Sage)
For extensive list of acknowledgements, influences and references go to www.leanvoices.com and for Sense and Respond go to www.lloydparry.com
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Agenda
• Changing perspectives.• What level of ‘Fix’ are you fixated on?• From Vertical Management to Horizontal
Management.• Measuring the Work‐Climate to determine how
adaptive your organisation really is.• What makes organisations adaptable?• References and Sources.
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What Level of ‘Fix’ are you fixated on?
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Level One
Level Two
Level Three
ChangeManagement
Standards
ProcessManagement
Measurement Governance
FinanceBudgets
KnowledgeManagement
ResourceManagement
EscalationProblem
Management
CommercialTrading
Building Services
LogisticsStores
SafetyServices
IT SupportSystems
FleetManagement
H.R.
ChangeManagement
Standards
ProcessManagement
Measurement Governance
FinanceBudgets
KnowledgeManagement
ResourceManagement
EscalationProblem
Management
CommercialTrading
Building Services
LogisticsStores
SafetyServices
IT SupportSystems
FleetManagement
H.R.
Front-line
Infrastructure
COREValue
Climate
Behaviour
Design Principles
The design of the work,What you measure
and reward
The Process or methods
The Output
Adapted by Stephen Parry from Fourth Generation Management Brian Joiner
Level Four
Our theory of how people
and organisationswork best.
Agile and Lean Adaptation
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From Vertical Management to Horizontal Management.
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Functional units
Independent solutionsdesigned to meet functionaltargets andgoals.
End‐to‐end service delivery
It’s not unusual to have thirty or more solutions lining up for attention.
F1 F2 F4F3 Fn
S1 S2 S4S3 Sn
Traditional approach: Feasible parts creating an infeasible whole.
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Improved end‐to‐end service delivery?
F1 F2 F4F3 Fn
S1 S2 S4S3 Sn
Functional units
Traditional approach: Feasible parts creating an infeasible whole.
Independent solutionsdesigned to meet functionaltargets andgoals.
It’s not unusual to have thirty or more solutions lining up for attention.
We need to move from Vertical Management to Horizontal Management
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Methods may come and go but the principles for engaging the willing contribution, ingenuity and
commitment of others are timeless.
Performance is not in the methods it’s in the design of the organisation and the behaviours that result..
Choice
Freedom
Power
Performance is a matter of people having
which is a matter of
with the Performance Measures
Leadership
Is your organisation a hindrance to employees, managers and customers? So how do we create an
Adaptive, Learning,‘Thinking‐System’?
to do what matters to serve the customers purpose
Role Design
Processes, Procedures and Methods
Climate
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In this context, ‘respect for people’ means understanding that all people have the ability
to learn and the right to be given opportunities to learn.
Managers helping employees freely choose how they solve
problems displays total respect.
There is a world of difference between helping people to see
and telling them they are blind.
We believe people are capable of learning and taking on additional responsibility, and if you create the right environment, people will
want to learn and will actively seek more responsibility.
Most of all we must trust that people are capable of owning and solving their own problems
with a little bit of help.
From first to last, Respect for People and a Blame Free Culture. Extracts from a broadcast by Stephen Parry
Getty Library
The Work Climate is the combined perception of customers, employees, managers and leaders. It predicts the performance and long term profitability of an organisation.
We use a Climate diagnostic called Climetrics® which also measures how well the organisation as a whole, identifies, understands and delivers against customer needs and how it adapts and locks on to changing customer needs.
The diagnostic informs indicates what actions we need to take to create a superior work climate.
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Dr Gary FisherOrganizational Psychology Research
into Service and Work Climates
Now Research Development OfficerUniversity of Warwick
• The research explored how climate perceptions and affective reactions at the organizational, team and individual level influenced service performance via the use of Social Exchange Theory and the concomitant Rule of Reciprocity.
• The data set was gathered via a large scale (127 organizations and over 3000 employees) quantitative survey and was analyzed via Confirmatory Factor Analysis and Structural Equation Modelling.
• The proposed Psychological Process to Performance Model was tested via a series of competing nested models.
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As a Leader you have to be authentic.Reciprocity
• Reciprocity is considered as a strong determining factor of human behaviour.
• Even if the consequences are the same, underlying intentions can cause an action to be reciprocated differently.
• Even if staff are treated well a good work climate may not necessarily result.
• Employees need a work climate that fosters participation, autonomy, work improvement, end‐to‐end understanding and interdepartmental support.
Service Climate and Customer Intelligence Workers. Parry and Fisher (2006)
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Also predicts the implications for a business that doesn’t change
Diagnosis
Operating strategies.Operating structures.Managing practices.Perceptions, feelings and behaviour of customers, staff, managers and leaders.End‐to‐end service performance.Quality.Innovation and change ability.Customer centricity.Leadership.
Prognosis: Service Performance
PredictabilityLong‐term profitability.Work outcomes.Employee performance.Job satisfaction.Customer perceptions of service quality.Quality improvements.Commitment.Absenteeism and turnover.Organisational adaptability.
Work‐Climate: Thinking Feelings and Behaviour of Customers, Employees, Managers and Leaders
Respectful
Collaboration
PerformanceManagement
And Measurement
Innovating ideas for customers
Sharing Intelligence with the team
Gathering customer intelligence data
Freedom and decision making
Employee influence on products and services
LeadershipCourage
V{tÄÄxÇz|Çz
How well we respond to customers
Sharing Intelligence Across the function
Sharing Intelligence with top/senior management
Employee influence on other functions
Employee influence on managing practices
Employee influence on end‐to‐end processes
Organisational Understanding
Trustworthiness VâáàÉÅxÜ câÜÑÉáx
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On‐Line Data Collection
Data CleansingValidity testing (Factor Analysis)
Correlation Matrix AnalysisRegression AnalysisConfirmatory Factor AnalysisStructural Equation Modelling
Climetrics® Landscape categorisation
Statistical data ‐ InterpretationTriangulation with on‐site workshopsExecutive Summary
Climetrics® Analysis MethodologyClimetrics ® Statistical Analysis Process
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You get the behaviour you design for, or fail to design for. It's your choice
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ServiceClimateAnd
PerformanceCLIMETRICS®
™
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Does the job design allow all staff to engage with customers and users?
Is everything forbidden unless permitted,
or
Is everything permitted unless forbidden?
ENGAGING
™
WorkClimate
DeterminesPerformance
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Do staff routinely share customer and business information with senior management?
And do they
Routinely collaborate and problem solve with senior and mid-managers?
What is the management focus? -employee utilisation, cost reduction and work intensification
or, Creativity, customer outcomes, problem solving, learning and sharing knowledge, collaboration?
LEARNING
™
WorkClimate
DeterminesPerformance
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Do Leaders foster a no-blame climate to surface problems for teams to work on?
Do leaders pay 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?
Do we exchange opinions or
Exchange facts supported with evidence?
LEADING
™
WorkClimate
DeterminesPerformance
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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?
Are staff free to choose the methods they will use to improve the business?
Do staff understand the underlying theories of the methods they use?
Are staff encouraged to run fail safe experiments?
IMPROVING
™
WorkClimate
DeterminesPerformance
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Climate Science: The questions being asked.
ImprovingEmployee influence on products and services
Employee influence on managing practices
Employee influence on other functions
Employee influence on end-to-end processes
LeadingPerformance management
Adaptive leadership
Responding to customer issues
Implementing ideas to better serve customers
EngagingFreedom and decision making
Customer facing activity
Customer intelligence gathering
Sharing intelligence with the team
LearningOrganisational understanding
Sharing intelligence across the function
Sharing intelligence with other functions
Sharing intelligence with top/senior management
Weak Standard Excellent
Mass Customisation. This is a variation of the one-size-fits-all. The employee helps the customer select from a fixed menu of options. The customer experience and employee engagement, however, are relatively low.
Mass Specialisation. Customers must know which service they want, where to obtain it and integrate each one from different sources. Since employees possess deep specialist knowledge, they will engage customers at a much higher level, and the customer experience is personal and solutions standard.
Mass Adaptation. The Customer Value Enterprise® The service will provide personalised advice to suit the individual. Employee skills are high and they will integrate and combine all solutions on the customers’ behalf in unique combinations, resulting in high customer and employee engagement. The customer experience is personal and unique.
Mass Production. A one size fits all service has low variety offerings , employee skills are basic and customer engagement is transactional.
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™
Climetrics® Landscapes
CHARACTER OFFERINGSCUSTOMER EXPERIENCE
EMPLOYEE EXPERTISE
IMPROVEMENT RESPONSIBILITY
MANAGEMENT FOCUS
COMPETITIVE BASIS
LEADERSHIP FOCUS
Customer ValueEnterprise ®
Personalised, individual,Bespoke.Unique.
Flexible Offerings
Customer experience is personal and unique
Co-Creation of solution design
Expert Broad knowledge to provide integrated solutions
Front-line experimentationand Learning
Creativity, expertise, new products and services.
Customer outcomes.Problem Solving
Trusted advisor and expert
Integration
Business Outcomes
Listen and adapt
The DepartmentStore
More choice from a variety of standard offerings
High level of customer interaction to identify needs and situation
Specific and deep specialist knowledge and skills
Front-line staff
Managers
Developing staff knowledge
Capture and reuse solutions
Effectiveness
In-depth specialities connected to expert networks
Economies of Scope
Consultative
The Pizza Parlour
Fixed menu with simple options
Discuss simple needs and available options.Low customer involvement during solution design
Understand basic option configurations
Central Change Teams
Managers
Cost, efficiency and Coordination
Commodity Driven
Emphasis on providing value-add and choice
Direct and Control
The Bus Low Variety Transactionaland Processed
No customer involvement in solution design
Basic ImprovementBoards
ImprovementSpecialists
SuggestionSchemes
Employee utilisation, cost reduction, work intensification.
Commoditised
High Volume
Low Margins
Economies of Scale
Command and Control
MassProduction
MassCustomisation
MassSpecialisation
MassAdaptation
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Climate Landscapes
CHARACTER OFFERINGSCUSTOMER
EXPERIENCEEMPLOYEE EXPERTISE
IMPROVEMENT RESPONSIBILITY
MANAGEMENT FOCUS
COMPETITIVE BASIS
LEADERSHIP FOCUS
Listen and Adapt
CVE
MassAdaptation
Personalised, individual,Bespoke.Unique.
Flexible offerings
Customer experience is personal and unique
Co-Creation of solution design
Expert Broad knowledge to provide integrated solutions
Disciplinedexperimentation
Front-line experimentsand learning
Creativity, expertise, new products and services.
Customer outcomes.
Problem solving
Trusted advisor and expert
Integration
Business outcomes
Listen and adapt
Mass Production
Command and Control
Low variety Transactionaland processed
No customer involvement in solution design
Basic Improvementboards
Improvementspecialists
Suggestionschemes
Employee utilisation, cost reduction, work intensification.
Disciplinedcompliance
Commoditised
High Volume
Low Margins
Economies of scale
Command and control
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Weak Standard Excellent
Autonomy
Customer facing activity
Intelligence gathering
Sharing team intelligence
Excellent Standard WeakMass Production Work-ClimateEngaging
OrganisationalUnderstanding
Sharing intelligence within the function
Sharing intelligence with other functions
Sharing intelligence with senior managers
Learning
Lean Service Work-Climate
Two application development teams at the same company
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Weak Standard Excellent
PerformanceManagement
Leadershipapproach
Responsiveness to customer issues
Implementing ideas to better serve customers
Excellent Standard WeakMass 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
Two application development teams at the same company
Climetrics®Towards Listen and Adapt Towards Direct and Control
Global IT and Applications Company: Before Transformation
Climetrics®Towards Listen and Adapt Towards Direct and Control
Global IT and Applications Company: After Transformation
Climetrics®Towards Listen and Adapt Towards Direct and Control
Weak MassProduction
MassCustomisation
Customer Value Enterprise®
MassSpecialisation
Weak
EngagingLearning
OrganisationalUnderstanding
Sharing intelligence within the function
Sharing intelligence with other functions
Sharing intelligence with senior managers
Autonomy
Customer facing activity
Intelligence gathering
Sharing team intelligence
LeadingIm
proving
PerformanceManagement
Leadershipapproach
Responsiveness to customer issues
Implementing ideas to better serve customers
Employee influence on improving service
Employee influence on work practices
Employee influence on other functions
Employee influence on end‐to‐end processes
http://www.amadeus.com/documents/lean‐it/Amadeus_Lean_IT.pdf
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Good leaders reserve the right to be wrong and change their minds in the light of new evidence.
That's strength not a weakness.
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Choice
Freedom
Power
Performance is a matter of people having
which is a matter of
with the Purpose and possibility
Leadership without position
Is your organisation a hindrance to employees, managers and customers?
Creating an Adaptive, Learning, Thinking System.
Visualisation and Measurement
Willing contribution
Climate
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to do what matters to serve the customers purpose
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
Climetrics® Management and staff Survey: before and after highlights
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TM
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of Service Climate Management Ltd. The information contained herein may be changed without prior notice.
Service Climate Management ® is a registered trade mark of Service Climate Management Ltd.
Customer Value Enterprise ® is a registered trade mark of Service Climate Management Ltd.
Climetrics ® is a registered trade mark of Service Climate Management Ltd.
The Engaging, Learning, Leadings Improvement device is a TM of Service Climate Management.
CORE Demand Profile TM is a trademark of Service Climate Management Ltd.
© 2016 Service Climate Management Ltd. All rights reserved
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