15th International Conference on Technology, Policy and Innovation

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.

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


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.

All Trade-Marks and ©Copyright 2015 Owned by Lloyd Parry. All Rights Reserved.

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


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

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

Leadership

Courage

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®

™


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.

Improving

MEmployee influence on products and services

NEmployee influence on managing practices

OEmployee influence on other functions

PEmployee influence on end-to-end processes

Leading

IPerformance management

J Adaptive leadership

KResponding to customer issues

LImplementing ideas to better serve customers

Engaging

AFreedom and decision making

B Customer facing activity

CCustomer intelligence gathering

DSharing intelligence with the team

Learning

EOrganisational understanding

FSharing intelligence across the function

GSharing intelligence with other functions

HSharing 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.

Navigator Suite ™ Landscapes

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

Weak MassProduction

MassCustomisation

Customer Value Enterprise®

MassSpecialisation

WeakE

nga

gin

gLearn

ing

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

Lead

ing

Imp

rovin

g


MassSpecialisation

Weak Weak MassProduction

MassCustomisation


Leadershipapproach

Responsiveness to customer issues

Implementing ideas to better serve

customers

Employee influence on improving service

Employee influence on work practices


Employee influence on end-to-end

processes

Global IT and Applications Company: Before Transformation

Climetrics®Towards Listen and Adapt Towards Direct and Control

Global IT and Applications Company: After Transformation

Climetrics®Towards Listen and Adapt Towards Direct and Control

Weak MassProduction

MassCustomisation


MassSpecialisation

WeakE

ng

ag

ing

Learn

ing

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

Leadin

gIm

pro

vin

g


Leadershipapproach

Responsiveness to customer issues

Implementing ideas to better serve

customers

Employee influence on improving service

Employee influence on work practices


Employee influence on end-to-end

processes

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


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

http://www.landmarkworldwide.com/

http://mitsloan.mit.edu/50th/pdf/beyondtheorypaper.pdf

http://mitsloan.mit.edu/50th/pdf/beyondtheorypaper.pdf

http://en.m.wikipedia.org/wiki/Reciprocity_(social_psychology)



http://www.leanvoices.com/

http://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.

© 2015 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.

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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.

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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

Climetrics® Survey: Telco before and after highlights

Local Government: Two-year transformation

Navigator Suite ™ Route-Maps

15th International Conference on Technology, Policy and Innovation

Economy & Finance

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