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

[email protected]


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


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.

All Trade-Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved.

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


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


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


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


EMPLOYEE EXPERTISE


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


Adaptive Climate



EMPLOYEE EXPERTISE


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


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




Autonomy




Excellent Standard WeakTeam two Work-ClimateEngaging

Organisational Understanding




Learning

Team one Work-Climate

Two application development teams at the same company



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 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


Weak MassProduction

MassCustomisation

Customer Value Enterprise®

MassSpecialisation

WeakE

ngagingLearning





Autonomy




LeadingIm

proving


MassSpecialisation

Weak Weak MassProduction

MassCustomisation


Leadershipapproach



customers





processes

Global IT and Applications Company: Before Transformation



Global IT and Applications Company: After Transformation


Weak MassProduction

MassCustomisation


MassSpecialisation

WeakE

ngagingLearning





Autonomy




LeadingIm

proving


Leadershipapproach



customers





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


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

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

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

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






http://www.leanvoices.com/

http://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

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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