designing organisations that work for lean and agile thinking people. european lean conference 2016
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Designing organisations that work for Lean and Agile thinking people. What type of work climate do you create?
Stephen ParryAuthor of Sense and Respond
Owner and Senior Partner at Lloyd ParryTwitter @Leanvoices
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Transforming Perspectives Transforming Learning
Transforming Decision MakingTransforming Behaviour
Engaging andUnderstanding
Learning andSharing
Leading and Choosing
Improving and Changing
WorkClimate
Visualise the work
Measure the work
Perfecting the work
Develop the Work-force
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
Challenging
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
TrustworthinessCustomer Purpose
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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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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 Employees, Managers and Leaders
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
Weak Standard Excellent
Autonomy
Customer facing activity
Intelligence gathering
Sharing team intelligence
Excellent Standard WeakIndustrial Work-ClimateEngaging
OrganisationalUnderstanding
Sharing intelligence within the function
Sharing intelligence with other functions
Sharing intelligence with senior managers
Learning
Adaptive Work-Climate
WorkClimate
AndPerformanceCLIMETRICS®
™
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
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
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
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
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.
Adaptive Climate
Industrial Cl imateClimetrics® Landscapes
Climetrics® Landscapes
CHARACTER OFFERINGSCUSTOMER EXPERIENCE
EMPLOYEE EXPERTISE
IMPROVEMENT RESPONSIBILITY
MANAGEMENT FOCUS
COMPETITIVE BASIS
LEADERSHIP FOCUS
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
Industrial Climate
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
MassSpecialisation
MassAdaptation
Climetrics® Landscapes
Adaptive Climate
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
Adaptive Climate
Industrial Cl imate
MassProduction
MassCustomisation
MassSpecialisation
MassAdaptation
IndependentFinancialAdvice
Consumer IT SupportServices
EnergyUtilities
WaterUtilities
ConsumerBankingServices
Health-CareServices
InsuranceServices
Mobile PhoneSupport Services
Revenueand Tax
GovernmentCentres
Low-costAirline
TravelServices
Legal Advice
Credit CardServices
Consumer AdviceCorporate IT
Services
Post and Parcel Services
PurchasingComputers
Mobile PhonePurchasing
InvestmentServices
Weak Operation Standard Operation Excellent Operation
Climetrics® Operating Landscapes /Operational Excellence
Differentiation curve
Ada pt i ve C l i ma te
Indus t r i a l C l i ma te
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Work-Climate Science: The questions being asked.
Improving
M Employee influence on products and services
N Employee influence on managing practices
O Employee influence on other functions
P Employee influence on end-to-end processes
Leading
I Performance management
J Adaptive leadership
K Responding to customer issues
L Implementing ideas to better serve customers
Engaging
A Freedom and decision making
B Customer facing activity
C Customer intelligence gathering
D Sharing intelligence with the team
Learning
E Organisational understanding
F Sharing intelligence across the function
G Sharing intelligence with other functions
H Sharing intelligence with top/senior management
Weak Standard Excellent
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Weak Standard Excellent
Autonomy
Customer facing activity
Intelligence gathering
Sharing team intelligence
Excellent Standard WeakTeam two Work-ClimateEngaging
Organisational Understanding
Sharing intelligence within the function
Sharing intelligence with other functions
Sharing intelligence with senior managers
Learning
Team one Work-Climate
Two application development teams at the same company
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Weak Standard Excellent
Performance Management
Leadership approach
Responsiveness to customer issues
Implementing ideas to better serve
customers
Excellent Standard Weak
Leading
Employee influence on improving service
Employee influence on work practices
Employee influence on other functions
Employee influence on end-to-end
processes
Improving
Two application development teams at the same company
Climetrics®Towards Listen and Adapt Towards Direct and Control
Team two Work-ClimateTeam one Work-Climate
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Weak MassProduction
MassCustomisation
Customer Value Enterprise®
MassSpecialisation
WeakE
ngagingLearning
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
Customer Value Enterprise®
MassSpecialisation
Weak Weak MassProduction
MassCustomisation
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
Global IT and Applications Company: Before Transformation
Climetrics®Towards Listen and Adapt Towards Direct and Control
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Global IT and Applications Company: After Transformation
Climetrics®Towards Listen and Adapt Towards Direct and Control
Weak MassProduction
MassCustomisation
Customer Value Enterprise®
MassSpecialisation
WeakE
ngagingLearning
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
AdaptiveClimate
Industrial Cl imate
Transforming Perspectives Transforming Learning
Transforming Decision MakingTransforming Behaviour
Engaging andUnderstanding
Learning andSharing
Leading and Choosing
Improving and Changing
WorkClimate
Visualise the work
Measure the work
Perfecting the work
Develop the Work-force
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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 analysed via Confirmatory Factor Analysis and Structural Equation Modelling.
• The proposed Psychological Process to Performance Model was tested via a series of competing nested models.
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 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.
References , influences and acknowledgements.
Book Sense and Respond: The Journey to Customer Purpose. Parry, Barlow, Faulkner (Palgrave Macmillan 2005)
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)
Reciprocity Definitionhttp://en.m.wikipedia.org/wiki/Reciprocity_(social_psychology)
Reciprocity An Economics of Social Relations.Kolm (Cambridge)
Reciprocity in the UK Call Centre Workplace.Gary Fisher PhD in Management Research (2008)
Service Quality Research Perspectives.Schneider, White (Sage)
Amadeus Lean Enterprise Case Study: Cleared for Take off http://www.amadeus.com/documents/lean-it/Amadeus_Lean_IT.pdf
For extensive list of Stephen Parry personal acknowledgements, influences and references go to www.leanvoices.com and for Sense and Respond and blog go to www.lloydparry.com
Lloyd Parry Adaptive 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.”
Achieving Change
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