lean mythbusting for staff, managers and executives

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Stephen Parry Author of Sense and Respond Senior Partner at Lloyd Parry

[email protected]

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.

mailto:[email protected]

http://www.lloydparry.com/

http://www.leanvoices.com/


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.


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.


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


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


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


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.


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.


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 ?


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


™


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

™


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

™



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

™



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

™



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


Transformation objective Improvement objective ?

Global ICT and Networks Company B2B: Before and After

Climetrics®



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


Transformation objective


Climetrics®




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


Transformation objective Improvement objective ?


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


Transformation objective Climetrics®

Lean Work Climate Engaging andunderstanding

Learning and Sharing

Leading and Decision Making

Improving andChanging

WorkDesign Measurement Behaviour

Perspective


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


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

™


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


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


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.


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

http://www.landmarkworldwide.com/


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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.”


Stephen Parry Author of Sense and Respond Senior Partner at Lloyd Parry

[email protected]

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.

mailto:[email protected]


http://www.leanvoices.com/

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