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Respectful
Collaboration
PerformanceManagement
And Measurement
Innovating ideas for customers
Sharing Intelligence with the team
Organisational Understanding
Gathering customer intelligence data
Freedom and decision making
Employee influence on products and services
Trustworthiness
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
Customer Purpose
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Lloyd Parry 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.”
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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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New forms of adaptive organisational workforces: Creating adaptive, learning and engaging places to work.
Stephen ParryAuthor of Sense and Respond
Owner and Senior Partner at Lloyd ParryTwitter @Leanvoices
www.lloydparry.com
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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.
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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
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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
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to do what matters to serve the customers purpose
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Getty Library
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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.
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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
ServiceClimate
AndPerformanceCLIMETRICS®
™
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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
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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
DeterminesPerformance
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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
DeterminesPerformance
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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
DeterminesPerformance
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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
Weak Standard Excellent
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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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™
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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
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Climate Landscapes
CHARACTER OFFERINGSCUSTOMER
EXPERIENCEEMPLOYEE EXPERTISE
IMPROVEMENT RESPONSIBILITY
MANAGEMENT FOCUS
COMPETITIVE BASIS
LEADERSHIP FOCUS
Sense and Respond
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
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
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Weak Standard Excellent
Autonomy
Customer facing activity
Intelligence gathering
Sharing team intelligence
Excellent Standard WeakTeam two Work-ClimateEngaging
Organisational Understanding
Sharing intelligence within the function
Sharing intelligence with other functions
Sharing intelligence with senior managers
Learning
Team one Work-Climate
Two application development teams at the same company
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Weak Standard Excellent
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 other functions
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
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Weak MassProduction
MassCustomisation
Customer Value Enterprise®
MassSpecialisation
WeakE
ngagingLearning
OrganisationalUnderstanding
Sharing intelligence within the function
Sharing intelligence with other functions
Sharing intelligence with senior managers
Autonomy
Customer facing activity
Intelligence gathering
Sharing team intelligence
LeadingIm
proving
Customer Value Enterprise®
MassSpecialisation
Weak Weak MassProduction
MassCustomisation
PerformanceManagement
Leadershipapproach
Responsiveness to customer issues
Implementing ideas to better serve
customers
Employee influence on improving service
Employee influence on work practices
Employee influence on other functions
Employee influence on end-to-end
processes
Global IT and Applications Company: Before Transformation
Climetrics®Towards Listen and Adapt Towards Direct and Control
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Global IT and Applications Company: After Transformation
Climetrics®Towards Listen and Adapt Towards Direct and Control
Weak MassProduction
MassCustomisation
Customer Value Enterprise®
MassSpecialisation
WeakE
ngagingLearning
OrganisationalUnderstanding
Sharing intelligence within the function
Sharing intelligence with other functions
Sharing intelligence with senior managers
Autonomy
Customer facing activity
Intelligence gathering
Sharing team intelligence
LeadingIm
proving
PerformanceManagement
Leadershipapproach
Responsiveness to customer issues
Implementing ideas to better serve
customers
Employee influence on improving service
Employee influence on work practices
Employee influence on other functions
Employee influence on end-to-end
processes
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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 QuApplications administration
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Making the pretence, reality and cost visible: ‘Your baby is ugly’
With acknowledgement to Landmark Education and the Landmark Forum
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Pretence, reality and cost: but what’s the benefit?
Pretence Reality Cost
What we say its like What it is really like What it costs us to pretend
Caring for people.Giving people opportunities.We are coping, everything is OK.We are doing a good job.We work as a team.We listen to people.
Working to the numbers.Ticking the boxes.Manipulating the numbers.Back-stabbing.Lying.Covering up.No trust.Blaming.Cheating.Play the game.
Low self-esteemFutility.No fulfilment.Withdrawing.No fun.Loss of honestyLoss of integrity.Loss of repeat business.Customer dissatisfaction.Little or no innovation.Cynicism.Missed opportunities.Fear of being found out.
With acknowledgement to Landmark Education and the Landmark Forum
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Company Collaboration System
Develop the workforce– A3 students and coaches– Creating the right environment– Delegating Lean/Agile Build using – A3s
Visualise the work– Visual Management Systems– Horizontal Management– Live issues and Alerts
Measure the work– Lean Instrumentation– Horizontal e-2-e measurement– Variation is the enemy of the good
Perfecting the work– Section manager responsibilities for
FLOW errors and Ops reviews– Departmental manager
responsibilities for CAPABILITY errors, scheduling and Ops reviews
• Waste, Variation, Overburden.• Raising standards by going red
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Visualise the work– Visual Management Systems– Horizontal Management– Live issues and Alerts
Company Collaboration System
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Visual Management System Framework
Align Output Measures: Targets, Goals, Service Levels, KPIs to deliver value and purpose.
Measurement of Means: How work flows, production capability. Error Rates, WIP.
Measures and targets applied to people to meet purpose. Policy and Rules
Work lifecycle phases.Highlight phase where work is getting stuck. (WIP Blocked vs WIP Ready to work)
Live Errors that cause interruptions to flow and the planning of work.
Define the Value you create for each area above.
What does good look like: Quality indicators that need to be satisfied to move work into next phase of work.
List by work-lifecycle phase the high-level activities that need to be performed.
Define the Purpose: Employee, Customer and BusinessPurpose
Value
Measurement of Means
WIP
QualityIndicators
Errors of Strategy
Errors of Flow
Errors of Capability
Targets to deliver Value
High Level Activity
Med Level Activity
Low Level Activity
Measure the work– Lean Instrumentation– Horizontal e-2-e measurement– Variation is the enemy of the good– Simulation Game
Company Lean Production System
90%85%80% 100%95%
Which company would you choose, Blue or Purple?
Fun
ction
al
En
d 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 2nd level 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
Company Lean Production System
Perfecting the work– Section manager
responsibilities for FLOW errors and Ops reviews
– Departmental manager responsibilities for CAPABILITY errors, scheduling and Ops reviews
• Waste, Variation, Overburden.• Raising standards by going red € €€
€ €€€ €€
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Develop the workforce– A3 students and coaches– Creating the right environment– Delegating Lean Build using A3s
RespectfulCollaboration
LeadershipCourage
ChallengingCustomer Purpose
Company Lean Production System
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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?
http://www.amadeus.com/documents/lean-it/Amadeus_Lean_IT.pdf
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
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to do what matters to serve the customers purpose
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References , influences and acknowledgements.Book Sense and Respond: The Journey to Customer Purpose. Parry, Barlow, Faulkner (Palgrave Macmillan)
Landmark Education and the Landmark Forum www.landmarkworldwide.com
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)
The Essential Deming. Leadership Principles. Orsisni (McGraw Hill)
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
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.
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