Download - Waste is Optional Conference
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Stephen ParryAuthor of Sense and RespondSenior Partner at Lloyd Parry
[email protected] @leanvoices
All sources, influences, acknowledgements and reading lists can be found on our blog at www.leanvoices.com
Waste is optional: Customer Value defines meaningful work; everything else is waste
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Lean and Agile is not about doing more for less. It’s about doing more WITH less.
Less stress. Less rework. Less errors. Less outages.
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Designing the business to eliminate waste and errors and gain long term profitability
1. How you see the work.2. How you measure the work.3. How you structure the work.4. How you develop the workforce.
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Choice
Freedom
Power
Performance is a matter of people having
which is a matter of
with the Visualise the work
Measure the work
Is your organisation a hindrance to employees, managers and customers?
So how do we create willing contribution on purpose?
to do what matters to serve the customers purpose
Develop the workforce
Structure the work
Purposeful work
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Lean and AgileAn Engaging, Learning,Leading and Improving
Environment
Continuous Self Improvement
StructuringThe work
MeasuringThe work
DevelopingThe
workforce
Seeing the work
Competence
90%85%80% 100%95%
Which company would you choose, Blue or Purple?
MeasuringThe work
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MeasuringThe work
Functio
nal End
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
% IncorrectlyCategorised
AverageHandle Time
FirstTimeFix
Mean time to process
by priority level
Calls/ Agent/Day
AverageIT Availability
Time
CustomerSatisfaction ?Depends
% Incorrectlyassigned
% resolved withinTarget priority MTP
Av time for 2ndlevel to respond
Av Time to resolve
% IncidentsRe‐assigned
% CallsBypass 1st Line
% of calls that areService Requests
No. calls withoutEsc/agent
No. Calls ExceedSLA
Av TimeCall Answr
% of CallsConvt to Tickets
What you measure tells everyone what you think
MeasuringThe work
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9
IT and application support staff Measurement before and after understanding users.
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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 andRe‐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 Demand Management ClassificationMaximiseValue
MinimiseLoss
MeasuringThe work
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CORE Profile for Global IT end‐user support
MeasuringThe work
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The following principles must be at the heart of every service and operational leader’s day-to-day business:
1. Create value for customers while optimising the end‐to‐end delivery process.
2. Opportunities to create new value must be identified continuously.
3. Remove the internal causes of bad customer experiences, organisational rework, excessive WIP and the causes of inconsistent flow.
4. Eliminate the cause of externally generated waste (Processing waste created by other companies)
The Operational Leader’s CORE Value Compass
Don’t automate waste, you only get cheaper, neater faster waste.
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Lean and AgileAn Engaging, Learning,Leading and Improving
Environment
Continuous Self Improvement
MeasuringThe work
Seeing the work
Visual Management
Seeing the work
Seeing the work
Functional units
Independent solutionsdesigned to meet functionaltargets andgoals.
End‐to‐end service delivery
It’s not unusual to have thirty or more solutions lining up for attention.
F1 F2 F4F3 Fn
S1 S2 S4S3 Sn
Traditional approach: Feasible parts creating an infeasible whole.
Seeing the work
Improved end‐to‐end service delivery?
F1 F2 F4F3 Fn
S1 S2 S4S3 Sn
Functional units
Traditional approach: Feasible parts creating an infeasible whole.
Independent solutionsdesigned to meet functionaltargets andgoals.
It’s not unusual to have thirty or more solutions lining up for attention.
We need to move from Vertical Management to Horizontal Management
F1 F2 F4F3 Fn
Functional units
Horizontal Management Some Lean Activities
Improved end‐to‐end service delivery?
WIPWIP
WIP
WIP
WIP
ReworkList
ReworkList Rework
ListReworkList
ReworkList
ImproveFlow
FeedbackTo improvequality
ReduceWIP
GovernanceMeasure:• End‐to‐to end
performance• Rework• WIP• Ci A3
Seeing the work
ReworkList Rework
ListRework List
ReworkList
ReworkList
WIP WIP WIPWIP
WIP
F1 F2 F4F3 Fn
Functional units
GovernanceMeasure:• End‐to‐to end
performance• Rework• WIP• Ci A3
ImproveFlow
Act onFeedbackTo improvequality
ReduceWIP
End‐to‐end service deliveryImproved end‐to‐end service delivery?
Seeing the work
Horizontal Management Some Lean Activities
Good leaders at all levels reserve the right to be wrong and change their minds in the light of new
evidence. That's strength not a weakness.
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Lean and AgileAn Engaging, Learning,Leading and Improving
Environment
Continuous Self Improvement
StructuringThe work
MeasuringThe work
Seeing the work
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Nobody trips over mountains.It is the small pebble that causes you to stumble.
Pass all the pebbles in your path and you will find you have crossed the mountain.
Pebbles = Errors
StructuringThe work
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Error, Error, Error• An error is indicated if it meets one or more of the following
criteria:• customer expectations and satisfaction not met or could potentially not meet their expectations if error is allowed to propagate
• if I have to redo someone else’s work • any errors that interrupt the flow of work severely and increase variation (links back to control charts)
• all errors that increase costs
StructuringThe work
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Operational Error and Improvement Control Error Detection, Correction and Prevention
Failsafe the processFailsafe the process
Detect and contain errorsDetect and contain errors
Alert others to the errors Alert others to the errors
Design Errors outDesign Errors out
Publish and display operating rulesPublish and display operating rules
Define operating rules/policies Define operating rules/policies
The main principles are:
• Make work visible.• Measure the end‐to‐end response time by each
product.• Have a common understanding of the errors you
wish to eradicate.• Define what good work looks like.• Create feedback loops that operate real time.• Eliminate root conditions which cause errors to
persist• Create agreed end‐to‐end operating rules/policy.• Level production schedules to move towards
continuous flow.• Continually improve and develop your staff.
StructuringThe work
Adapted from Hoshin Kanri for the Lean Enterprise By Tom Jackson
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All StaffEnd‐to‐end business process ‐
FLOW
All StaffEnd‐to‐end business process ‐
FLOW
Error types Impacting FLOW:• Rework• Cost of Delay• Unclean work• Non‐standard• Batched
Mid Managers –Improve CapabilityMid Managers –
Improve Capability
Error types Impacting CAPABILITY• No Work load Levelling• Exceeding capability• Planning batches• Prioritising• No end‐to‐end Reporting• Silo fixing• Skills and Resource
€ = ErrorsError DetectionError CorrectionError Prevention Customer OutcomesCustomer Outcomes
€€€ € € € € €
VP – New types or forms of business capability, structure, meeting strategic
objectives
VP – New types or forms of business capability, structure, meeting strategic
objectives
€ €€
Error types Impacting Business, Structure, Strategy• Business Development• Organisational
Development• Inter Business Unit Errors• Lean Leadership at all
levels.
StructuringThe work
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Lean and AgileAn Engaging, Learning,Leading and Improving
Environment
Continuous Self Improvement
StructuringThe work
MeasuringThe work
DevelopingThe
workforce
Seeing the work
Competence
Questions and statements to Blame and Command
You raised the problem so you should fix it.Look! If I were you I would do this.So what are you going to commit to?In my opinion…Why did you do that?Don't involve other departments.Leave that to me I will go and find out for you.I would advise you to….Have you escalated this?Why can’t you tell me?My experience tells me….What does your experience tell you?What is your gut feeling?Who’s fault is it?You had better get that sorted.
A3 THINKING DOES NOT BLAME OR COMMAND
PEOPLE
DevelopingThe
workforce
Lead as if you have no power
DevelopingThe
workforce
Questions for grasping the situation and exploring the current conditions Remember to ask why five times or more.
Who is already involved?What other departments are involved?What have you done so far?How will you approach the investigation?What support do you think you need?How do you think you can gain support?What are all the benefits of solving this?
Why are we talking about this?What is the purpose?Why is it a problem? When did this problem occur?How long has this been going on?What did you observe?What did you make it mean?What else could it mean?What assumptions are you making?What evidence do you have?What evidence do you need? How can you find out?What outcomes are you seeking?Where would you need to go?Whom would you need to talk to?How is it affecting you?How is it affecting the customer?Who else is this affecting?How does this make you feel?
DevelopingThe
workforce
Leadership is an activity not a position
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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 samecompany but we live indifferent worlds’
Thomas QApplications administration
DevelopingThe
workforce
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What does Lean‐Service mean for the organisation, leaders, managers and staff?
• Organisation.– Consider the measurement and governance
systems– CI is not separate its in all work real time. – it
is the work.– New operational performance measures– 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
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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.
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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
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Choice
Freedom
Power
Performance is a matter of people having
which is a matter of
with the Visualise the work
Measure the work
Your organisation is no longer a hindrance to employees, managers and customers.
Creating an Adaptive, Learning, Organisation.
Develop the workforce
Structure the work
Purposeful work
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to do what matters to serve the customers purpose
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Useful References
Adaptive Enterprise by Stephan HaeckelThe Human Side of Enterprise by Douglas McGregor
Lean Solutions by James P. Womack and Daniel T. JonesSystems Thinking: Managing Chaos and Complexity: A Platform for Designing Business Architecture by Jamshid Gharajedaghi
Toyota Production System by Taiichi OhnoI want you to cheat by John Seddon
Understanding Variation: The Key to Managing Chaos (2nd Edition) by Donald J. WheelerService Quality by Benjamin Schneider and Susan S. White
Managing to Learn by John ShookHoshin Kanri for the Lean Enterprise By Tom Jackson
Sense and Respond: The Journey to Customer Purposeby Stephen Parry, Susan Barlow, and Mike Faulkner
www.lloydparry.com www.lloydparry.com/newsletter
Photo of Pathway http://www.rusticpathways.com/
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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.
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Lloyd Parry Lean Service Transformation Consultancy
Lloyd Parry use Lean Service principles to support their clients in the design, transformation andmanagement of organisations. We also provide executive and change leadership education androute‐map designs.
We have developed Climetrics® a unique organisational diagnostic used to identify how yourmanagement activities, measurement systems, structures, and delivery capabilities can becombined to create a lean‐service climate that leads to high‐performance and long‐termprofitability.
Lloyd Parry have delivered transformation programs to large scale global organisations in manysectors including; Telecommunications, IT Services, Financial Services, Logistics, Outsourcing andLocal Government.
As a result of adopting our approach to Lean‐Service, a number of companies have won nationalindustry awards for Best Service Strategy, Best People Development Program and awards forInnovation 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.”
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