lk vienna stephen parry sense and respond

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Lean Kanban What’s the purpose?

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

Twitter: @LeanVoices and Linkedin Blog : www.LeanVoices.com [email protected] www.lloydparry.com

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http://www.leanvoices.com/

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http://www.lloydparry.com/

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Together

Ease

Respectful

Excited

Optimistic

Intelligent

Collaborative

Sharing

Learning Creating

Supportive

Growing

Exploring

Rational

Encouraged

Achievement

Engaging Harmony

Recognition

Discovering

Motivated

Agreement

Purpose

Knowledge Kind

Thoughtful

Integrity

Trust

Passion

Courage

Challenging Leading Improving


There are many doors through which an organisation can come to embrace Lean; Some are much better than others.

Sense and Respond Lean Enterprise Theory Management principles

The way we think

Operating design principles

Operating structures

Continuous improvement methods

Processes

Point-fix / improvement tools

Behaviours

Performance

Source: Based on the Theory to Performance Model, Sense and Respond: The journey to customer purpose.

Interception points

Education

Learning to see

Service Design

Measurement , incentives.

Disciplined experimentation

Easiest and on

occasions the worst

places to start

Clim

ate

Tool

s


Imagine the organisation is like a city. Analysis of the climate above will reveal information about activity on the ground. This provides both a diagnosis of the current issues and outlines the long-term consequences.

The Service 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 Service Climate diagnostic called Climetrics® which also measures how well the organisation as a whole, identifies, understands and delivers against customer needs. The diagnostic leads to a plan which when executed will create a superior Climate

Climetrics® A diagnostic to determine if an organisation is Adaptive, Innovative and Engaging.


Service Climate

And Performance CLIMETRICS®

™


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?

Service Climate


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?

Service Climate


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?

Service Climate


LEADING

™


Do employees influence end-to-end business processes? What influence does staff have over improving the measurement system? What influence do employees have on improving products and services?

Service Climate


IMPROVING

™


What type of climate do customers, employees, managers and leaders live in?

Make-and-Sell Organisation Mass Production

Sense and Respond Lean Enterprise

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.


Climate Landscapes

CHARACTER OFFERINGS CUSTOMER

EXPERIENCE EMPLOYEE EXPERTISE

IMPROVEMENT RESPONSIBILITY

MANAGEMENT FOCUS

COMPETITIVE BASIS

LEADERSHIP FOCUS

Sense and Respond

Personalised, individual, Bespoke. Unique. Flexible offerings

Customer experience is personal and unique Co-Creation of solution design

Expert Broad knowledge to provide integrated solutions Disciplined experimentation

Front-line experiments and learning

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

Trusted advisor and expert Integration Business outcomes

Listen and adapt

Make and Sell Low variety Transactional and processed No customer involvement in solution design

Basic Improvement boards Improvement specialists Suggestion schemes

Employee utilisation, cost reduction, work intensification. Disciplined compliance

Commoditised High Volume Low Margins Economies of scale

Command and control


Mass Customisation. This is a variation of the one-size-fits-all. The employee helps the customer select from a fixed menu of options.

Mass Specialisation. Customers must know which service they want, where to obtain it and integrate each one from different sources.

Mass Adaptation. Customer Value Enterprise® Adaptive, Innovative and Engaging organisations. The service will provide personalised advice to suit the individual. Employee skills are high

Mass Production. A one size fits all service has low variety offerings , employee skills are basic ™


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

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

Engaging Learning Leading Improving

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

Climetrics® Climatograph

Transformation objective

Climate Strength

Global Services Company. June 2010: Before Transformation


Mass Production

Mass Customisation

Mass Specialisation

Mass Adaptation


B Customer-facing activity

C Customer-intelligence gathering















Global Services Company. November 2011: After Transformation




Climate Strength


Mass Production

Mass Customisation

Mass Specialisation

Mass Adaptation





















Climate Strength

Global ICT and applications company 2001: Before Transformation


Mass Production

Mass Customisation

Mass Specialisation

Mass Adaptation



















Climetrics® Climatograph Climate Strength


Global ICT and applications company 2003: After Transformation


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. Extracts from a broadcast by Stephen Parry


‘In reality, this is a climate change on a massive scale. It is a shift to a climate that can see the value in recognizing ‘disconnects’ with customers. It is a shift to a climate where frontline workers have the skills and motivation to conduct root-condition analysis. It is a shift to a climate in which learning is seen as central to business success, not just an add-on activity.’ Dr. Joel Cutcher-Gershenfeld Senior Research Scientist, MIT Sloan School of Management, and Executive Director, MIT Engineering Systems Learning Center Climate replaced the original word Culture for clarity.


How do we measure and manage customer value?


There are many doors through which an organisation can come to embrace Lean; Some are much better than others.

Sense and Respond Lean Enterprise Theory Management principles

The way we think

Operating design principles

Operating structures

Continuous improvement methods

Processes

Point-fix / improvement tools

Behaviours

Performance

Source: Based on the Theory to Performance Model, Sense and Respond: The journey to customer purpose.

Interception points

Education

Learning to see

Service Design

Measurement , incentives.

Disciplined experimentation

Easiest and on

occasions the worst

places to start

Clim

ate

Tool

s


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


23

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


24

What we feel pain about today.


Wrong measures, wrong pain, wrong outcomes.

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


Creates the possibility for developing new services that will satisfy customers or increase production and revenue.

OPPORTUNITY (Innovate)

Originates externally and is usually waste or demand that is created by other organisations, agencies or institutions.

EXTERNAL (Restore and Re-think)

Is defined by ‘Customer Purpose’. Deliver value effectively to customers and efficiently to the organisation. CREATE

(Optimise)

RESTORE (Restore and Remove)

Occurs when the organisation delivers unfit products or services. Production is lost, the customer is unhappy, resulting in loss of money, time, and reputation.

CORE Profile: Value definitions


CORE Profile for Global IT end User support (November 2009)


Create

External

Opportunity

Remedial

8%

80%

2%

10%

CORE Profile: ICT support operations Before changing the service.

Source Fujitsu Case Study: Sense and Respond Book Used with kind permission


Create

External

Opportunity

Remedial

50%

33%

12%

5%

CORE Profile: ICT support operations After changing the service.

Source Fujitsu Case Study: Sense and Respond Book Used with kind permission


Create

External

Opportunity

Remedial

6%

87%

2%

5%

20% workforce

60% Chasing the people who do the work

CORE Profile: Teleco Services


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® Survey: Telco before and after highlights


Mass Production

Mass Customisation

Mass Specialisation

Mass Adaptation





















Climate Strength

Telco Before Transformation


Mass Production

Mass Customisation

Mass Specialisation

Mass Adaptation



















Climetrics® Climatograph Climate Strength

Telco After Transformation



Together

Ease

Respectful

Excited

Optimistic

Intelligent

Collaborative

Sharing

Learning Creating

Supportive

Growing

Exploring

Rational

Encouraged

Achievement

Engaging Harmony

Recognition

Discovering

Motivated

Agreement

Purpose

Knowledge Kind

Thoughtful

Integrity

Trust

Passion

Courage

Challenging Improving


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.

© 2012 Service Climate Management Ltd. All rights reserved

All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. The information in this document is proprietary to Service Climate Management Ltd. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express prior written permission of Service Climate Management Ltd. This document is a preliminary version and not subject to your license agreement or any other agreement with Service Climate Management Ltd. This document contains only intended strategies, developments, models, methods and products and is not intended to be binding upon Service Climate Management to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by Service Climate Management Ltd. at any time without notice. Service Climate Management assumes no responsibility for errors or omissions in this document. Service Climate Management Ltd. does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. Service Climate Management Ltd. shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent or gross negligence. The statutory liability for personal injury and defective products is not affected. Service Climate Management Ltd. has no control over the information that you may access through the use of hot links contained in these materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages.

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