lean principles people people people parry ace 2014

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All TradeMarks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All TradeMarks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. Stephen Parry Author of Sense and Respond Senior Partner at Lloyd Parry [email protected] www.lloydparry.com Twitter @leanvoices All sources, influences, acknowledgements and reading lists can be found our blog at www.leanvoices.com Three principles: People, People, People. Creating an adaptive, learning organisation.

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Page 1: Lean Principles People People People Parry ACE 2014

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

Stephen ParryAuthor of Sense and RespondSenior Partner at Lloyd Parry

[email protected] @leanvoices

All sources, influences, acknowledgements and reading lists can be found our blog at www.leanvoices.com

Three principles: People, People, People.Creating an adaptive, learning organisation.

Page 2: Lean Principles People People People Parry ACE 2014

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

Agenda

• Changing perspectives.• What is a ‘Work‐Climate’ and why is it important 

for the business and especially Lean and Agile Environments?

• Respect for people and a blame free environment.

• Moving from Mass‐production thinking to Lean Thinking.

• Measuring the Work‐Climate to see how Lean your organisation is.

• Short Lean‐Service case study and Work‐Climate change maps.

• References and Sources.

Page 3: Lean Principles People People People Parry ACE 2014

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

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,Organisation?

to do what matters to serve the customers purpose

Role Design

Processes, Procedures and Methods

Climate

All Trade‐Marks and ©Copyright 2013 Owned by Lloyd Parry. All Rights Reserved. 

Page 4: Lean Principles People People People Parry ACE 2014

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

Drive supp

ort services

Build  trustwith

 sup

pliers 

Deeply und

erstan

d custom

er needs  

Build  trustwith

 customers

SENSE what matters to customers

RESPONDAdapt, Improve,  Innovate

People1.

Your clients and their customers

People2.

Your front‐line operation

People3.

Your support organisation

Lean‐Service requires a ‘Trust‐Strategy’ to create a different ‘Work‐Climate’  Extracts from Sense and Respond by Stephen Parry

Engaging Learning

LeadingImproving

Page 5: Lean Principles People People People Parry ACE 2014

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

Transformation objective and expectation

Base-Line Current Performance

Perf

orm

ance

New performance falls short of expectations

Tools and Methods for improvement

Lean Work Climate Engaging andunderstanding

Learning and Sharing

Leading and Decision Making

Improving andChanging

WorkDesign Measurement Behaviour

Perspective

Page 6: Lean Principles People People People Parry ACE 2014

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 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

Page 7: Lean Principles People People People Parry ACE 2014

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

Respect for people, trust and a blame‐free environment

‘Blame is not for failure, but it is for failing to help‐out or to ask for help’

Jurgen Vig KnudstorpLEGO CEO

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

Page 8: Lean Principles People People People Parry ACE 2014

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

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

WorkClimate

DeterminesPerformance

Page 9: Lean Principles People People People Parry ACE 2014

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

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, collaboration?

LEARNING

WorkClimate

DeterminesPerformance

Page 10: Lean Principles People People People Parry ACE 2014

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

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?

Who does the Leading? A few select people or most people?

LEADING

WorkClimate

DeterminesPerformance

Page 11: Lean Principles People People People Parry ACE 2014

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

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. 

Page 12: Lean Principles People People People Parry ACE 2014

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

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?

IMPROVING

WorkClimate

DeterminesPerformance

Page 13: Lean Principles People People People Parry ACE 2014

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

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

Page 14: Lean Principles People People People Parry ACE 2014

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

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

Page 15: Lean Principles People People People Parry ACE 2014

All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

Weak Standard Excellent

Autonomy

Customer facing activity

Intelligence gathering

Sharing team intelligence

Excellent Standard WeakMass Production Work-ClimateEngaging

OrganisationalUnderstanding

Sharing intelligence within the function

Sharing intelligence with other functions

Sharing intelligence with senior managers

Learning

Lean Service Work-Climate

Two application development teams at the same company

Climetrics®

Page 16: Lean Principles People People People Parry ACE 2014

All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

Weak Standard Excellent

PerformanceManagement

Leadershipapproach

Responsiveness to customer issues

Implementing ideas to better serve customers

Excellent Standard WeakMass Production Work-ClimateLeading

Employee influence on improving service

Employee influence on work practices

Employee influence on other functions

Employee influence on end‐to‐end processes

Improving

Lean Service Work-Climate

Climetrics®

Two application development teams at the same company

Page 17: Lean Principles People People People Parry ACE 2014

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2014 Lloyd Parry. All rights reserved

Putting together the Value Stream and Life Cycle

Server Management Value Life‐Cycle

Case Study

Page 18: Lean Principles People People People Parry ACE 2014

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2014 Lloyd Parry. All rights reserved

Investigation Event: Value Life‐Cycle Analysis

Gather together a cross‐functional, cross hierarchical 

team

Gather together all issues, pain‐points and symptoms

Experiment with different design options for full Value Life‐Cycle

Populate Lifecycle phases with work 

activities

Identify the Data, Tools and Policies needed to carry out 

activities

Define Life‐cycle stage KPI’s based on the ‘Golden‐Five 

KPIs’

End‐to‐end cycle measurement against product 

groups

Deep dive analysis on selected products

Identify current or potential  activity 

owners and duplication.

Identify on the map what’s missing and what's broken. (Red 

Highlights)

Formulate action plan and initiate

WIP Analysis

Team interaction analysis

Page 19: Lean Principles People People People Parry ACE 2014

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2014 Lloyd Parry. All rights reserved

Scheme for presenting a Value life‐cycle

•Life Cycle Phase: A high level group of related activities

•High Level Processes or activities that need to be completed within each phase of the business lifecycle.

•Organisational Areas: Identifying an organisational unit responsible for each activity area.

•Key Performance Indicators must be designed for each stage.

•Data or information required to carry out the activity.

•Source of Data for activities, Tools, reports, policy.

•Inputs and outputs required to other business processes  

Phase of business processLife Cycle

High level process

Organisational areas  responsible

KPIs Reqd. Not in place

Data or Info Reqd.

Data. Tools. Policy.

other dependent processes

Page 20: Lean Principles People People People Parry ACE 2014

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2014 Lloyd Parry. All rights reserved

Life Cycle: Main stages identified with suggested KPI’sPlease note closed loop A‐A

Strategic approach

Management Standardssystems and tools

Service DefinitionService Design Resource and delivery planning

Serverrequest Sourcing commissioning Maintain operation Decommissioning

and disposal

BusinessProcess

PerformanceReview

A B

B A

Pre‐production phases

Production phases

Customer Survey

understand business need of key user groups 

(business and IT outcomes)

measure  security compliance total time to develop a new service resource utilization people and infrastructure Missing

total time from request to fulfilment 

(mean/range)

Get IT right the first time (amount 

of re‐work)

total time from request to contract

total time from contract to procurement

hardware delivery lead time by 

vendor

number of issues raised for 

performance review

total time from commissioning to handover availability

number and classification of tickets

number of change requests 

by KUG

number of servers older than 4 years

Number of process exceptions

Page 21: Lean Principles People People People Parry ACE 2014

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Phase and related activities Pre‐ Production

strategic approach Management Standardssystems and tools

Service DefinitionService Design Resource and delivery planning

business strategy IT Operating strategy

service request & Problem 

managementprocesses and 

tools

security standards and tools

Patching AV

communication channel to customer, e.g. Workflow tool

Service Design Process incl. (business case)

translate customer needs to service (process) Service Catalog Customer 

Engagement

Hardware standards Asset management tools and processes

KPI Definition and 

measurement

New service implementation process

Resource Management

Capacity management 

process and tools and infrastructure

Monitoring standards and tools operating system standards

Page 22: Lean Principles People People People Parry ACE 2014

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Phase and related activities Production

Server request Sourcing commissioning Maintain operation Performance review

Decommissioning and disposal

advisory service individual config and costing agreed contract configurationinfrastructure management integration

Server performance management

governance

Decommissioning

select source "order" sizing

physical /virtual deployment Quality Check and Handover Server maintenance

procurement Image deployment moves and changes disposal

Page 23: Lean Principles People People People Parry ACE 2014

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

Making the pretence, reality and cost visible: ‘Your baby is ugly’

With acknowledgement to Landmark Education and the Landmark Forum

Page 24: Lean Principles People People People Parry ACE 2014

All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

Weak Standard Excellent

Autonomy

Customer facing activity

Intelligence gathering

Sharing team intelligence

Excellent Standard WeakMass Production Work-ClimateEngaging

OrganisationalUnderstanding

Sharing intelligence within the function

Sharing intelligence with other functions

Sharing intelligence with senior managers

Learning

Lean Service Work-Climate

Transformation objective Improvement objective ?

Global ICT and Applications Company B2B: Before and After

Climetrics®

Page 25: Lean Principles People People People Parry ACE 2014

All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

Weak Standard Excellent

PerformanceManagement

Leadershipapproach

Responsiveness to customer issues

Implementing ideas to better serve customers

Excellent Standard WeakMass Production Work-ClimateLeading

Employee influence on improving service

Employee influence on work practices

Employee influence on other functions

Employee influence on end‐to‐end processes

Improving

Lean Service Work-Climate

Transformation objective

Global ICT and Applications Company B2B: Before and After

Climetrics®

Page 26: Lean Principles People People People Parry ACE 2014

All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

Global ICT and Applications Company B2B: Before and After

Lean Work Climate Engaging andunderstanding

Learning and Sharing

Leading and Decision Making

Improving andChanging

WorkDesign Measurement Behaviour

Perspective

Climetrics®

Page 27: Lean Principles People People People Parry ACE 2014

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

What does Lean‐Service mean for the organisation, leaders, managers and staff?

• Organisation.– Consider the measurement and governance 

systems– More rigorous Continuous Improvement 

structures– New operational performance measures– New operating model may be required– 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

Page 28: Lean Principles People People People Parry ACE 2014

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

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.

Page 29: Lean Principles People People People Parry ACE 2014

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

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, Organisation.

Visualisation and Measurement

Willing contribution

Climate

All Trade‐Marks and ©Copyright 2013 Owned by Lloyd Parry. All Rights Reserved. 

to do what matters to serve the customers purpose

Page 30: Lean Principles People People People Parry ACE 2014

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Useful References

Adaptive Enterprise by Stephan HaeckelLandmark Education and the Landmark Forum  www.landmarkworldwide.com

The Essential Deming by Edward DemingFourth Generation Management by Brian L. JoinerThe Human Side of Enterprise by Douglas McGregor

Lean Solutions by James P. Womack and Daniel T. JonesLean Thinking by James P. Womack and Daniel T. Jones

The Machine that Changed the World by James P. Womack and Daniel T. JonesMaslow  on Management by Abraham H. Maslow

Principles of Mass and Flow Production by Frank G. WoollardSystems Thinking: Managing Chaos and Complexity: A Platform for Designing Business Architecture by Jamshid Gharajedaghi

Toyota Production System by Taiichi OhnoUnderstanding Variation: The Key to Managing Chaos (2nd Edition) by Donald J. Wheeler

Freedom from Command and Control by John SeddonService Quality by Benjamin Schneider and Susan S. White

Sense and Respond:  The Journey to Customer Purposeby Stephen Parry, Susan Barlow, and Mike Faulkner

www.lloydparry.com www.lloydparry.com/newsletter

Page 31: Lean Principles People People People Parry ACE 2014

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TM

Page 32: Lean Principles People People People Parry ACE 2014

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.

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