Waste is Optional Conference

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Stephen ParryAuthor of Sense and RespondSenior Partner at Lloyd Parry

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

Waste is optional: Customer Value defines meaningful work; everything else is waste


Lean and Agile is not about doing more for less. It’s about doing more WITH less.

Less stress. Less rework. Less errors. Less outages.


Designing the business to eliminate waste and errors and gain long term profitability

1. How you see the work.2. How you measure the work.3. How you structure the work.4. How you develop the workforce.


Choice

Freedom

Power

Performance is a matter of people having

which is a matter of

with the Visualise the work

Measure the work

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

So how do we create willing contribution on purpose?

to do what matters to serve the customers purpose

Develop the workforce

Structure the work

Purposeful work


Lean and AgileAn Engaging, Learning,Leading and Improving

Environment

Continuous Self Improvement

StructuringThe work

MeasuringThe work

DevelopingThe

workforce

Seeing the work

Competence

90%85%80% 100%95%

Which company would you choose, Blue or Purple?

MeasuringThe work


MeasuringThe work

Functio

nal End

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 2ndlevel 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

MeasuringThe work


9

IT and application support staff Measurement before and after understanding users.


Creates the possibility for developing new services that will satisfy customers or increase production and revenue.

OPPORTUNITY (Innovate)

Originates externally and is usually waste or demand that is created by other organisations, agencies or institutions.

EXTERNAL(Restore andRe‐think)

Is defined by ‘Customer Purpose’. Deliver value effectively to customers and efficiently to the organisation.CREATE

(Optimise)

RESTORE(Restore and Remove)

Occurs when the organisation delivers unfit products or services. Production is lost, the customer is unhappy, resulting in loss of money, time, and reputation.

CORE Profile: Value definitions Demand Management ClassificationMaximiseValue

MinimiseLoss

MeasuringThe work


CORE Profile for Global IT end‐user support

MeasuringThe work


The following principles must be at the heart of every service and operational leader’s day-to-day business:

1. Create value for customers while optimising the end‐to‐end delivery process.

2. Opportunities to create new value must be identified continuously.

3. Remove the internal causes of bad customer experiences, organisational rework, excessive WIP and the causes of inconsistent flow.

4. Eliminate the cause of externally generated waste (Processing waste created by other companies)

The Operational Leader’s CORE Value Compass

Don’t automate waste, you only get cheaper, neater faster waste.



Environment


MeasuringThe work

Seeing the work

Visual Management

Seeing the work

Seeing the work

Functional units

Independent solutionsdesigned to meet functionaltargets andgoals.

End‐to‐end service delivery

It’s not unusual to have thirty or more solutions lining up for attention.

F1 F2 F4F3 Fn

S1 S2 S4S3 Sn

Traditional approach: Feasible parts creating an infeasible whole.

Seeing the work

Improved end‐to‐end service delivery?

F1 F2 F4F3 Fn

S1 S2 S4S3 Sn

Functional units

Traditional approach: Feasible parts creating an infeasible whole.

Independent solutionsdesigned to meet functionaltargets andgoals.

It’s not unusual to have thirty or more solutions lining up for attention.

We need to move from Vertical Management to Horizontal Management

F1 F2 F4F3 Fn

Functional units

Horizontal Management Some Lean Activities

Improved end‐to‐end service delivery?

WIPWIP

WIP

WIP

WIP

ReworkList

ReworkList Rework

ListReworkList

ReworkList

ImproveFlow

FeedbackTo improvequality

ReduceWIP

GovernanceMeasure:• End‐to‐to end

performance• Rework• WIP• Ci A3

Seeing the work

ReworkList Rework

ListRework List

ReworkList

ReworkList

WIP WIP WIPWIP

WIP

F1 F2 F4F3 Fn

Functional units

GovernanceMeasure:• End‐to‐to end

performance• Rework• WIP• Ci A3

ImproveFlow

Act onFeedbackTo improvequality

ReduceWIP

End‐to‐end service deliveryImproved end‐to‐end service delivery?

Seeing the work

Horizontal Management Some Lean Activities

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.



Environment


StructuringThe work

MeasuringThe work

Seeing the work


Nobody trips over mountains.It is the small pebble that causes you to stumble.

Pass all the pebbles in your path and you will find you have crossed the mountain.

Pebbles = Errors

StructuringThe work


Error, Error, Error• An error is indicated if it meets one or more of the following

criteria:• customer expectations and satisfaction not met or could potentially not meet their expectations if error is allowed to propagate

• if I have to redo someone else’s work • any errors that interrupt the flow of work severely and increase variation (links back to control charts)

• all errors that increase costs

StructuringThe work


Operational Error and Improvement Control Error Detection, Correction and Prevention

Failsafe the processFailsafe the process

Detect and contain errorsDetect and contain errors

Alert others to the errors Alert others to the errors

Design Errors outDesign Errors out

Publish and display operating rulesPublish and display operating rules

Define operating rules/policies Define operating rules/policies

The main principles are:

• Make work visible.• Measure the end‐to‐end response time by each

product.• Have a common understanding of the errors you

wish to eradicate.• Define what good work looks like.• Create feedback loops that operate real time.• Eliminate root conditions which cause errors to

persist• Create agreed end‐to‐end operating rules/policy.• Level production schedules to move towards

continuous flow.• Continually improve and develop your staff.

StructuringThe work

Adapted from Hoshin Kanri for the Lean Enterprise By Tom Jackson


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All StaffEnd‐to‐end business process ‐

FLOW

All StaffEnd‐to‐end business process ‐

FLOW

Error types Impacting FLOW:• Rework• Cost of Delay• Unclean work• Non‐standard• Batched

Mid Managers –Improve CapabilityMid Managers –

Improve Capability

Error types Impacting CAPABILITY• No Work load Levelling• Exceeding capability• Planning batches• Prioritising• No end‐to‐end Reporting• Silo fixing• Skills and Resource

€ = ErrorsError DetectionError CorrectionError Prevention Customer OutcomesCustomer Outcomes

€€€ € € € € €

VP – New types or forms of business capability, structure, meeting strategic

objectives

VP – New types or forms of business capability, structure, meeting strategic

objectives

€ €€

Error types Impacting Business, Structure, Strategy• Business Development• Organisational

Development• Inter Business Unit Errors• Lean Leadership at all

levels.

StructuringThe work



Environment


StructuringThe work

MeasuringThe work

DevelopingThe

workforce

Seeing the work

Competence

Questions and statements to Blame and Command

You raised the problem so you should fix it.Look! If I were you I would do this.So what are you going to commit to?In my opinion…Why did you do that?Don't involve other departments.Leave that to me I will go and find out for you.I would advise you to….Have you escalated this?Why can’t you tell me?My experience tells me….What does your experience tell you?What is your gut feeling?Who’s fault is it?You had better get that sorted.

A3 THINKING DOES NOT BLAME OR COMMAND

PEOPLE

DevelopingThe

workforce

Lead as if you have no power

DevelopingThe

workforce

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?

DevelopingThe

workforce

Leadership is an activity not a position


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 QApplications administration

DevelopingThe

workforce


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

• Organisation.– Consider the measurement and governance

systems– CI is not separate its in all work real time. – it

is the work.– New operational performance measures– 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


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.


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

Cambridge University Survey: Telco before and after highlights


Choice

Freedom

Power

Performance is a matter of people having

which is a matter of

with the Visualise the work

Measure the work

Your organisation is no longer a hindrance to employees, managers and customers.

Creating an Adaptive, Learning, Organisation.

Develop the workforce

Structure the work

Purposeful work


to do what matters to serve the customers purpose


Useful References

Adaptive Enterprise by Stephan HaeckelThe Human Side of Enterprise by Douglas McGregor

Lean Solutions by James P. Womack and Daniel T. JonesSystems Thinking: Managing Chaos and Complexity: A Platform for Designing Business Architecture by Jamshid Gharajedaghi

Toyota Production System by Taiichi OhnoI want you to cheat by John Seddon

Understanding Variation: The Key to Managing Chaos (2nd Edition) by Donald J. WheelerService Quality by Benjamin Schneider and Susan S. White

Managing to Learn by John ShookHoshin Kanri for the Lean Enterprise By Tom Jackson

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

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

Photo of Pathway http://www.rusticpathways.com/


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.


Lloyd Parry Lean Service Transformation Consultancy

Lloyd Parry use Lean Service principles to support their clients in the design, transformation andmanagement of organisations. We also provide executive and change leadership education androute‐map designs.

We have developed Climetrics® a unique organisational diagnostic used to identify how yourmanagement activities, measurement systems, structures, and delivery capabilities can becombined to create a lean‐service climate that leads to high‐performance and long‐termprofitability.

Lloyd Parry have delivered transformation programs to large scale global organisations in manysectors including; Telecommunications, IT Services, Financial Services, Logistics, Outsourcing andLocal Government.

As a result of adopting our approach to Lean‐Service, a number of companies have won nationalindustry awards for Best Service Strategy, Best People Development Program and awards forInnovation 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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Customer Value Enterprise ® is a registered trade mark of Service Climate Management Ltd.

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