Parry Lean Service Design

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Stephen Parry's slides from his talk to PANMA on Lean Service Design. Stephen is the author of "Sense & Respond: The Journey to Customer Purpose."

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Parry Lean Service Design

  1. 1. AuthorSense and Respond: The Journey to Customer Lean Service Design PurposeStephen Parry, Susan Barlow and Mike Faulkner. Stephen Parry CEO of S B i f See Business Diff Differently. tl Author of Sense and Respond: The Journey to Customer Purpose. Visiting Fellow to the Lean Enterprise Academy. Operational Research advisor to the Customer Contact Association. Stephen.Parry@seebusinessdifferently.com Twitter: Leanvoices Blog: Leanvoices.com Leanvoices com Website: www.seebusinessdifferently.com
  2. 2. Topic Areas: • Why today’s business models do not support the modern customer. • Why have we designed out our customers and employees? • What happens to people when technology is the face of the company? • Changing the way we develop and bring to market new software applications. • Changing the way organisations think and operate. • A new role for employees, managers and leaders.
  3. 3. What is your change agenda? hange Degre of ch ee
  4. 4. Lean Deployment Considerations New KPIs New Process New New System Structure
  5. 5. Current ‘change’ drivers • Government spending cuts • G oba competition Global co pet t o • Global sourcing • New technologies • Fiscal pressures • Workforce expectations • Social networks • Customer individualisation • Customer customisation • Customer-business co-creation Customer business co creation
  6. 6. Modern businesses are not designed to meet the needs of the modern customer. We need to Sense what matters sooner and Respond quicker. We need modern operating systems which lock onto changing customer needs.We need to manage the explosion in variety and individualisation. g p y We need a different approach to people management and leadership. leadership
  7. 7. The customer challenge: They don’t have time………….they say things like: Solve my problem, completely. yp , p y Dont waste my time or cause me hassle. Minimise the cost of doing business with you you. Provide exactly what I need and deliver value where I need it. Reduce the number of decisions I must make to resolve my problems. Don’t get me to help you; I want you to help me!Adapted from Lean Solutions: Jim Womack and Dan Jones by Stephen Parry 7
  8. 8. Question: What would organisations do if they had to pay for all the customer time they wasted?Adapted from Lean Solutions: Jim Womack and Dan Jones by Stephen Parry 8
  9. 9. Traditional approach: Feasible parts creating an infeasible whole. Functional units F1 F2 F3 F4 Fn Independent It’s not unusual S1 S2 S3 S4 Sn Solutions to have thirty Designed to or more Meet functional solutions lining Targets and up for attention Goals. Throughput process©Copyright Stephen Parry 2011 All rights reserved.
  10. 10. Traditional approach: Feasible parts creating an infeasible whole. Functional units F1 F2 F3 F4 Fn Independent It’s not unusual S1 S2 S3 S4 Sn Solutions to have thirty Designed to or more Meet functional solutions lining Targets and up for attention Goals. Improved Customer Experience ?©Copyright Stephen Parry 2011 All rights reserved.
  11. 11. Measurement of V l ? M t f Value?Comparing traditional targets and goals with Lean targets and goals
  12. 12. Customer and People Measures: Flow You’ll not find many measures in this zone. nd End to En ‘If you measure your service using averages, you will deliver an average service.’ ctional Func Value No Matters to Customers Yes Purpose©Copyright Stephen Parry 2011 All rights reserved.
  13. 13. What we measure today…staff, 13
  14. 14. Measurement before and after
  15. 15. Sense and Respond or Lean Enterprise approach SENSE what matters DRIVE the service and to customers and develop on-demand flow service users cture ata relationship Build relationship Capture Demand Da Develop Infrastruc 1. 2. 3. People People People Your customers or Your operating p g Your support pp D Build r r p your clients customers staff organisation Adapt – Evolve – Inform – Innovate Design around customers not only the service user RESPOND©Copyright Stephen Parry 2011 All rights reserved.
  16. 16. Mass Production Organisations Company pushes products and services ON-COMMAND Customers and employees are designed out Mass Mass ass Production Customisation Transactional Incentivised Functional Direct and processed contribution efficiency and control Customer experience Employee motivation Support operations Executive leadership Relational Willing End-to-end Listen and personal contribution effectiveness and adapt Mass Mass Specialisation Adaptation Customer pulls products and services ON-DEMAND Customers and employees are designed i C t d l d i d in Sense and Respond Organisations (Lean Design)©Copyright Stephen Parry 2011 All rights reserved.
  17. 17. Personal and standard Mass Specialisation Mass Adaptation ue Personal and uniqu a Four Operating ModesOne siz fits all Plug and Play ze d Mass Production Mass Customisation ©Copyright Stephen Parry 2011 All rights reserved.
  18. 18. Climetrics ® Operating Modes and their Characteristics Customer Employee Improvement Management Competitive Leadership Character Offerings Experience Expertise Responsibility Focus Basis Focus Trusted Personalised, Customer Creativity, advisor and individual, experience is Expert Broad expertise, new tation expert Bespoke. personal and knowledge to Front-line products and Mass The Personal unique services. services Listen and Unique. Unique provide experimentationAdapt Shopper Integration adapt integrated and Learning Customer Flexible Co-Creation of solutions outcomes. solution design Problem Solving Business Offerings Outcomes Developing staff In-depth specialitiesSpecialisation High level of knowledge More choice Specific and connected to customer Front-line staff The Department expert Mass from a variety deep specialist interaction to Capture and reuse networks Consultative Store of standard knowledge and identify needs Managers solutions offerings skills and situation Economies of Effectiveness Scope p Discuss simple needs andCustomisation available Commodity Central Change Driven Fixed menu options Understand Teams Cost, efficiency Direct and Mass Plug-and-play with simple basic option Emphasis on and Coordination providing Control options Low customer configurations Managers value-add and involvement choice during solution design Improvement Commoditised Transactional Boards and roduction Employee High Volume Processed Mass Improvement utilisation, cost Command and One-size fits all Low Variety Basic Specialists reduction, work Low Margins Control No customer intensification. intensificationPr involvement in solution design Suggestion Economies of Schemes ScaleClimetrics ® is a registered trademark of Stephen Parry: © 2011 All Rights Reserved
  19. 19. Climate Climetrics® : Service Climate Comparison Typical Industry Distribution Strength Water Energy Utilities High Utilities Insurance Purchasing Services Investment Low-cost Computers Services Airline Travel Revenue Services Health-Care Mobile Phone and Tax Services Medium Support Services Independent Mobile Phone Financial Legal Consumer Credit Card Purchasing Advice Advice Advice Post and Services Parcel Services Consumer IT Corporate IT Differentiation Consumer Support Services Curve Work and Low Pensions Banking Services Services Mass Mass Mass Mass Production P d ti Customisation C t i ti Specialisation S i li ti Adaptation Ad t ti Climate TypeClimetrics ® is a registered trademark of Stephen Parry: © 2011 All Rights Reserved
  20. 20. Climate Climetrics® : Service Climate Comparison Before and After Strength After High End-to-end Management Solution Before Providers Medium Customer Service Differentiation Curve Low Mass Mass Mass Mass Production P d ti Customisation C t i ti Specialisation S i li ti Adaptation Ad t ti Climate TypeClimetrics ® is a registered trademark of Stephen Parry: © 2011 All Rights Reserved

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