parry climetrics adapative organisation lkna13

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TM


Designing Adaptive, Innovative and Engaging Organisations.

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

http://www.leanvoices.com/

mailto:[email protected]

http://www.lloydparry.com/

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


Choice

Freedom

Power

Performance is a matter of people having

which is a matter of

with the Performance Measures

Technology

Is your organisation a hindrance to employees, managers and customers?

Designing a better end-to-end ‘System’

to do what matters for customers.

Role Design

Processes and Procedures

Policy


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 Service Climate through the adoption of Adaptive -Lean methods.


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


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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?

LEARNING

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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?

LEADING

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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?

IMPROVING

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Climetrics® Engaging, Learning, Leading, Improving On-Line Survey 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


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 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.

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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


Telco Case Study

CEO wake-up call

‘We have been concentrating on technology and then trying to sell that to

customers lets focus instead on what customers actually want and getting the technology to support them.”


Mass Production

Mass Customisation

Mass Specialisation

Mass Adaptation


Climetrics® Telco before transformation

Business Support

Operations

Design and Provision

Differentiation

curve

Mass Production

Mass Customisation

Mass Specialisation

Mass Adaptation


B Customer-facing activity

C Customer-intelligence gathering














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

Telco Before Transformation

Mass Production

Mass Customisation

Mass Specialisation

Mass Adaptation



















Climetrics® Climatograph Climate Strength

Telco After Transformation


Operational engagement

Prospect for Value Discover Value Design for Value Build for Value Operate for Value

Organisational Vision

Operating Strategy

Diagnose Organisational Structures

Building New Capabilities and Skills

Communications and Stakeholder Management

Programme Management, Governance and Risk Management

Methods and Tools Operations delivery team

FSOM and Organisational

Design

Client Engagement

Implementation Strategy

Structural Reorganisation

Change approach and route-map design

Business Imperatives

Terms of Reference

CSM becomes

FSOM

Operating For Value

Operations Executive Steering Group and Sponsor

Programme Deliverables Enablers Programme Management

Operational Engagement

Service climate analysis Climetrics®

Project management resources allocated

Route-map to the New Operating Model and Climate Implementation

Client and User needs analysis

Customer Engagement

Change Management

Standards

Process Management

Measurement Service Mgnt

Finance Budgets

Knowledge Management

Resource Management

Escalation Problem

Management

Commercial Trading

Admin

Logistics

Facilities

Field Technologies

Fleet Management

H.R

R&R Bonus.

Operations Staff

Customer

Support Activities

The way we think


Mass Production

Mass Customisation

Mass Specialisation

Mass Adaptation


Climetrics® Telco before and after transformation

Business Support Operate

Design and Provision

New Service

Differentiation curve


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


Luton BC In year one of our Luton Excellence Change program we were able to meet a budget gap of £6.4 million. In the second year when the council’s budget for 2011/12 was reduced by £19 million the change program identified and produced £21 million in savings while either maintaining or increasing the quality of service delivery. This was achieved not by following typical BPR, process improvement and cost cutting projects but by investing in activities to create a cultural change by developing our staff and managers to take action on improving the service themselves. Main objective: enabling Luton Borough Council to deliver the best value services to citizens and customers. It has three key focus areas: 1. improving customer service, outcomes and citizens’ experience of the local authority 2. delivering efficiencies, cost avoidance and cashable savings 3. streamlining working styles and increasing job satisfaction. Achieving this has involved, first and foremost, prompting a change in organisational approach and a change in climate. We introduced a particularly sharp mind-set about how to run an organisation efficiently and effectively in terms of what is done, how it is done and who does it.


Mass Production

Mass Customisation

Mass Specialisation

Mass Adaptation


















Luton BC:Before




Climate Strength


Mass Production

Mass Customisation

Mass Specialisation

Mass Adaptation


















Luton BC:After





Local Government: Two-year transformation

Navigator Suite ™ Route-Maps

© Copyright Stephen Parry 2011 all rights reserved.

Fujitsu Case Study: Results 2003/2004

Customer satisfaction up by 74%. Unwanted demand decreased by 61%. Employee satisfaction increased by 40%. Attrition dropped from 40% to 8%. Operating costs reduced by 45%. Increased business revenues. 72% Created a market differentiator.

2003 National Business Awards

Best customer Service Strategy ‘Sense and Respond’

Fujitsu generated “an entire cultural change around the needs of its customers and could as a result demonstrate business growth, innovation and success.”

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

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

Mass Production

Mass Customisation

Mass Specialisation

Mass Adaptation


B Customer -facing activity

C Customer -intelligence gathering


















Climate Strength

Global ICT Outsourcing : Before Transformation


Mass Production

Mass Customisation

Mass Specialisation

Mass Adaptation





















Global ICT Outsourcing : After Transformation


Mass Production

Mass Customisation

Mass Specialisation

Mass Adaptation





















Climate Strength

Applications Company. June 2010: Before Transformation


Mass Production

Mass Customisation

Mass Specialisation

Mass Adaptation





















Applications Company. Nov 2011: AfterTransformation


Choice

Freedom

Power

Performance is a matter of people having

which is a matter of

with the Performance Measures

Technology

Is your organisation a hindrance to employees, managers and customers?

Designing a better end-to-end ‘System’

to do what matters for customers.

Role Design

Processes and Procedures

Policy


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.

parry climetrics adapative organisation lkna13

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