Agile ee presentation final

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

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


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.”


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.


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.


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 2013 Owned by Lloyd Parry. All Rights Reserved.


Choice

Freedom

Power



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




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.


Respectful

Collaboration


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 managing practices

Employee influence on end-to-end processes


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

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


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

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



Autonomy

Customer facing activity

Intelligence gathering

Sharing team intelligence

Excellent Standard WeakTeam two Work-ClimateEngaging


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



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 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


Weak MassProduction

MassCustomisation

Customer Value Enterprise®

MassSpecialisation

WeakE

ngagingLearning

OrganisationalUnderstanding




Autonomy




LeadingIm

proving


MassSpecialisation

Weak Weak MassProduction

MassCustomisation


Leadershipapproach



customers





processes

Global IT and Applications Company: Before Transformation



Global IT and Applications Company: After Transformation


Weak MassProduction

MassCustomisation


MassSpecialisation

WeakE

ngagingLearning

OrganisationalUnderstanding




Autonomy




LeadingIm

proving


Leadershipapproach



customers





processes


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


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

With acknowledgement to Landmark Education and the Landmark Forum


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


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


Visualise the work– Visual Management Systems– Horizontal Management– Live issues and Alerts

Company Collaboration System


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


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 € €€

€ €€€ €€

All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2015 Lloyd Parry. All rights reserved

Develop the workforce– A3 students and coaches– Creating the right environment– Delegating Lean Build using A3s

RespectfulCollaboration

LeadershipCourage

ChallengingCustomer Purpose



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



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




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.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.

Agile ee presentation final

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