lkuk13 leading adaptive learning org

Respectful

Collaboration

Performance

Management

And Measurement

Innovating ideas for customers

Sharing Intelligence with the team

Organisational Understanding

Gathering customer intelligence data

Freedom and decision making

Employee influence on products and services

Trustworthiness

Leadership Courage

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

Customer Purpose

How to develop Lean Leadership: Creating adaptive, learning and engaging organisations.

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

@Leanvoices

All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2013

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

@Leanvoices

Blog : www.LeanVoices.com [email protected]

www.lloydparry.com www.slideshare.net/SGParry/presentations

All sources, influences, acknowledgements and reading lists can be found on www.leanvoices.com

http://www.leanvoices.com/

mailto:[email protected]

http://www.lloydparry.com/

http://www.slideshare.net/SGParry/presentations



Dr Gary Fisher Organizational Psychology Research

into Service and Work Climates

Now Research Development Officer University 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.

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 Predictability Long-term profitability. Work outcomes. Employee performance. Job satisfaction. Customer perceptions of service quality. Quality improvements. Commitment. Absenteeism and turnover. Organisational adaptability.

Service Climate: Thinking Feelings and Behaviour of Customers, Employees, Managers and Leaders

All Trade-Marks and ©Copyright 2013 Owned by Lloyd Parry. All Rights Reserved.


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)


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

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


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.


Respectful

Collaboration

Performance

Management

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

Leadership Courage

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

Trustworthiness Customer Purpose

™


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

™



Engaging, Learning, Leading, Improving Dimensions

A Freedom and decision making

B Customer facing activity

C Customer intelligence gathering

D Sharing intelligence with the team

E Organisational understanding

F Sharing intelligence across the function

G Sharing intelligence with other functions

H Sharing intelligence with top/senior management

I Performance management

J Adaptive leadership

K Responding to customer issues

L Implementing ideas to better serve customers

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

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.


™

Climetrics® Landscapes

CHARACTER OFFERINGS CUSTOMER EXPERIENCE

EMPLOYEE EXPERTISE

IMPROVEMENT RESPONSIBILITY

MANAGEMENT FOCUS

COMPETITIVE BASIS

LEADERSHIP FOCUS

Customer Value Enterprise ®

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 experimentation and Learning

Creativity, expertise, new products and services. Customer outcomes. Problem Solving

Trusted advisor and expert Integration Business Outcomes

Listen and adapt

The Department Store

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 Transactional and Processed No customer involvement in solution design

Basic Improvement Boards Improvement Specialists Suggestion Schemes

Employee utilisation, cost reduction, work intensification.

Commoditised High Volume Low Margins Economies of Scale

Command and Control

Mass Production

Mass Customisation

Mass Specialisation

Mass Adaptation


Mass Production

Mass Customisation

Mass Specialisation

Mass Adaptation

Independent Financial

Advice

Consumer IT Support Services

Energy Utilities

Water Utilities

Consumer Banking Services

Health-Care Services

Insurance Services

Mobile Phone Support Services

Revenue and Tax

Government Centres

Low-cost Airline

Travel Services

Legal Advice

Credit Card Services

Consumer Advice Corporate IT

Services

Post and Parcel Services

Purchasing Computers

Mobile Phone Purchasing

Investment Services

Weak Operation Standard Operation Excellent Operation

Climetrics® Operating Landscapes and Operational Excellence with Adaptability

Differentiation curve


Mass Production

Mass Customisation

Mass Specialisation

Mass Adaptation

Weak Operation Standard Operation Excellent Operation

Climetrics® Telco before and after transformation

Business Support

Operations

Design and Provision

New Service

Differentiation curve


On-Line Data Collection Data Cleansing Validity testing (Factor Analysis) Correlation Matrix Analysis Regression Analysis Confirmatory Factor Analysis Structural Equation Modelling Climetrics® Landscape categorisation Statistical data - Interpretation Triangulation with on-site workshops Executive Summary

Climetrics® Analysis Methodology Climetrics ® Statistical Analysis Process


Mass Production

Mass Customisation

Mass Specialisation

Mass Adaptation

















Engaging Learning Leading Improving

A B C D E F G H I J K L M N O P

Climetrics® Climatograph

Transformation objective

Applications Company ICT. Before Transformation

Climate Strength


Mass Production

Mass Customisation

Mass Specialisation

Mass Adaptation



















Climetrics® Climatograph Climate Strength


Applications Company ICT After Transformation


Mass Production

Mass Customisation

Mass Specialisation

Mass Adaptation


Climate Strength

Climate at two different development teams A Freedom and decision

making

B Customer-facing activity

C Customer-intelligence gathering

















Mass Production

Mass Customisation

Mass Specialisation

Mass Adaptation





















Climate Strength

Global Run Infrastructure Company : Before Transformation


Mass Production

Mass Customisation

Mass Specialisation

Mass Adaptation





















Global Run Infrastructure Company : After Transformation


Getty Library


Search for Common Purpose

Employee Purpose

Common Purpose

We provide expertise and services to enable us to produce, sell and support software by creating and running robust, effective and efficient IT-Solutions.

Customer Purpose

Business Purpose

With pride we relentlessly pursue and apply our insight, ingenuity and technologies to create

wealth and a secure future.

To contribute with my skills and to be fairly rewarded in a secure

and trusted environment that offers challenges

and allows me to develop and grow.

Strengthen my value chain in a way that

differentiates me from competitors and

provides a return on my investment.

‘We all work for the same company but we live in different worlds’ Thomas Qu Applications administration


Good leaders reserve the right to be wrong and change their minds in the light of new evidence.

That's strength not a weakness.


Fun

ctio

nal

E

nd to

End

No Matters to Customers Yes

You’ll not find many measures in this zone.

‘If you measure your business using averages, don’t be surprised to find

yourself running an average business.’

Purpose

Agent Utilisation

% Incorrectly Categorised

Average Handle Time

First Time

Fix

Mean time to process

by priority level

Calls/ Agent /Day

Average IT Availability

Time

Customer Satisfaction ?

Depends

% Incorrectly assigned

% resolved within Target priority MTP

Av time for 2nd level to respond

Av Time to resolve

% Incidents Re-assigned

% Calls Bypass 1st Line

% of calls that are Service Requests

No. calls without Esc/agent

No. Calls Exceed SLA

Av Time Call Answr

% of Calls Convt to Tickets

What you measure tells everyone what you think


33

IT and application support staff Measurement before and after understanding users.


34

What we feel pain about today.

Wrong measures, wrong pain, wrong outcomes.

Service Measures and SLAs. End-user Measures. End User pain points

Leadership is an activity not a position.


What does Lean IT mean for the organisation, leaders, managers and staff?

• Organisation. – Consider the measurement and

governance systems – More rigorous CI structures – Potentially new commercial

arrangements with customers – New operational performance

measures – New operating model may be required

• 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

• 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 more seeking evidence – Learn a number of general Lean

improvement methods and role specific Lean methods

– Lean more about other functions and how they operate.

– Learn to trust management.

There can be no end-to-end transparency unless there is top-to-bottom trust.

Making the pretence, reality and cost visible: ‘Your baby is ugly’

With acknowledgement to Landmark Education and the Landmark Forum

Pretence, reality and cost: but what’s the benefit?

Pretence Reality Cost

What we say its like What it is really like What it costs us to pretend

Caring for people. Giving people opportunities. We are coping, everything is OK. We are doing a good job. We work as a team. We listen to people.

Working to the numbers. Ticking the boxes. Manipulating the numbers. Back-stabbing. Lying. Covering up. No trust. Blaming. Cheating. Play the game.

Low self-esteem Futility. No fulfilment. Withdrawing. No fun. Loss of honesty Loss of integrity. Loss of repeat business. Customer dissatisfaction. Little or no innovation. Cynicism. Missed opportunities. Fear of being found out.

With acknowledgement to Landmark Education and the Landmark Forum

Mass Production

Mass Customisation

Mass Specialisation

Mass Adaptation


B Customer -facing activity

C Customer -intelligence gathering


















Climate Strength

Development, testing and run Local government IT Before Transformation

Mass Production

Mass Customisation

Mass Specialisation

Mass Adaptation





















Development, testing and run Local government IT After Transformation 18 Months

Change resistance is directly proportional to the

lack of leadership.

Heroic leadership is a sign of Lean leadership failure not triumph.

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


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


to do what matters to serve the customers purpose


References , influences and acknowledgements. Book Sense and Respond: The Journey to Customer Purpose. Parry, Barlow, Faulkner (Palgrave Macmillan) Landmark Education and the Landmark Forum www.landmarkworldwide.com 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) The Essential Deming. Leadership Principles. Orsisni (McGraw Hill) Reciprocity Definition http://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

http://www.landmarkworldwide.com/

http://mitsloan.mit.edu/50th/pdf/beyondtheorypaper.pdf

http://en.m.wikipedia.org/wiki/Reciprocity_(social_psychology)

http://en.m.wikipedia.org/wiki/Reciprocity_(social_psychology)


http://www.lloydparry.com/


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.

© 2013 Service Climate Management Ltd. All rights reserved

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lkuk13 leading adaptive learning org

Business

lloyd parry

service climate

climate perceptions

endtoend service performance

good work climate

superior work climate

climate diagnostic

stephen parry author