lean and agile adaptive workplace parry

The Lean and Agile Workplace: People, People, People.These are the three principles for designing adaptive, agile and engaging workplaces.

Stephen ParryAuthor of Sense and RespondSenior Partner at Lloyd Parry

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Website, Newsletter and Blog www.lloydparry.com

www.slideshare.net/SGParry

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

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

Author and Designer of Climetrics® Diagnostic and The Adaptive Organisation Theoretical Framework.

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.


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 Adaptive Organisations using Lean, a number ofcompanies have won national industry awards for Best Service Strategy, Best People DevelopmentProgram 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.”


References , influences and acknowledgements.Book Sense and Respond: The Journey to Customer Purpose. Parry, Barlow, Faulkner (Palgrave Macmillan)

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)

Cleared for take‐off Strategies in Lean IT – Amadeus http://www.amadeus.com/documents/lean‐it/Amadeus_Lean_IT.pdf

Reciprocity Definitionhttp://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


Agenda

• Changing perspectives.• What level of ‘Fix’ are you fixated on?• From Vertical Management to Horizontal

Management.• Measuring the Work‐Climate to determine how

adaptive your organisation really is.• What makes organisations adaptable?• References and Sources.


What Level of ‘Fix’ are you fixated on?


Level One

Level Two

Level Three

ChangeManagement

Standards

ProcessManagement

Measurement Governance

FinanceBudgets

KnowledgeManagement

ResourceManagement

EscalationProblem

Management

CommercialTrading

Building Services

LogisticsStores

SafetyServices

IT SupportSystems

FleetManagement

H.R.

ChangeManagement

Standards

ProcessManagement

Measurement Governance

FinanceBudgets

KnowledgeManagement

ResourceManagement

EscalationProblem

Management

CommercialTrading

Building Services

LogisticsStores

SafetyServices

IT SupportSystems

FleetManagement

H.R.

Front-line

Infrastructure

COREValue

Climate

Behaviour

Design Principles

The design of the work,What you measure

and reward

The Process or methods

The Output

Adapted by Stephen Parry from Fourth Generation Management Brian Joiner

Level Four

Our theory of how people

and organisationswork best.

Agile and Lean Adaptation


From Vertical Management to Horizontal Management.


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.


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


Methods may come and go but the principles for engaging the willing contribution, ingenuity and

commitment of others are timeless.

Performance is not in the methods it’s in the design of the organisation and the behaviours that result..

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

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


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

Getty Library

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.



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 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.


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)


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 Customers, Employees, Managers and Leaders

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

V{tÄÄxÇz|Çz

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 VâáàÉÅxÜ câÜÑÉáx


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


You get the behaviour you design for, or fail to design for. It's your choice


ServiceClimateAnd

PerformanceCLIMETRICS®

™


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



Climate Science: The questions being asked.

ImprovingEmployee influence on products and services

Employee influence on managing practices


Employee influence on end-to-end processes

LeadingPerformance management

Adaptive leadership

Responding to customer issues

Implementing ideas to better serve customers

EngagingFreedom and decision making

Customer facing activity

Customer intelligence gathering

Sharing intelligence with the team

LearningOrganisational understanding

Sharing intelligence across the function

Sharing intelligence with other functions

Sharing intelligence with top/senior management

Weak Standard Excellent

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 OFFERINGSCUSTOMER EXPERIENCE

EMPLOYEE EXPERTISE

IMPROVEMENT RESPONSIBILITY

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



Climate Landscapes

CHARACTER OFFERINGSCUSTOMER

EXPERIENCEEMPLOYEE EXPERTISE

IMPROVEMENT RESPONSIBILITY

MANAGEMENT FOCUS

COMPETITIVE BASIS

LEADERSHIP FOCUS

Listen and Adapt

CVE

MassAdaptation

Personalised, individual,Bespoke.Unique.

Flexible offerings

Customer experience is personal and unique

Co-Creation of solution design

Expert Broad knowledge to provide integrated solutions

Disciplinedexperimentation

Front-line experimentsand learning

Creativity, expertise, new products and services.

Customer outcomes.

Problem solving

Trusted advisor and expert

Integration

Business outcomes

Listen and adapt

Mass Production

Command and Control

Low variety Transactionaland processed

No customer involvement in solution design

Basic Improvementboards

Improvementspecialists

Suggestionschemes

Employee utilisation, cost reduction, work intensification.

Disciplinedcompliance

Commoditised

High Volume

Low Margins

Economies of scale

Command and control



Autonomy


Intelligence gathering

Sharing team intelligence

Excellent Standard WeakMass Production Work-ClimateEngaging

OrganisationalUnderstanding

Sharing intelligence within the function


Sharing intelligence with senior managers

Learning

Lean Service Work-Climate

Two application development teams at the same company




Leadershipapproach

Responsiveness to customer issues


Excellent Standard WeakMass Production Work-ClimateLeading

Employee influence on improving service

Employee influence on work practices



Improving

Lean Service Work-Climate

Two application development teams at the same company

Climetrics®Towards Listen and Adapt Towards Direct and Control

Global IT and Applications Company: Before Transformation


Global IT and Applications Company: After Transformation


Weak MassProduction

MassCustomisation

Customer Value Enterprise®

MassSpecialisation

Weak

EngagingLearning

OrganisationalUnderstanding

Sharing intelligence within the function


Sharing intelligence with senior managers

Autonomy


Intelligence gathering

Sharing team intelligence

LeadingIm

proving


Leadershipapproach

Responsiveness to customer issues


Employee influence on improving service

Employee influence on work practices



http://www.amadeus.com/documents/lean‐it/Amadeus_Lean_IT.pdf


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

That's strength not a weakness.


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

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



TM

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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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