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Stephen Parry Keynote Speech. …

Stephen Parry Keynote Speech.

Author of Sense and Respond: The Journey to Customer Purpose.

Lean and Kanban: What’s the purpose?

This keynote speech will discuss what we mean by changing our thinking and the mind-sets of organisations. What are the challenges for our methods and our movement as a whole? How are we dealing with those challenges and what is needed from our community for future success. In essence, what is Lean Kanban’s purpose and have we set our sights high enough?


Lean Thinking Dimensions, The Psychology Profile of Lean Adaptive Organisations. Lean Measurement.

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  • 1. Lean Kanban Stephen Parry What’s the purpose? Author of Sense and Respond @Leanvoices Senior Partner at Lloyd Parry Twitter: @LeanVoices and Linkedin Blog : www.LeanVoices.com Stephen.parry@lloydparry.com www.lloydparry.com www.slideshare.net/SGParry/presentationsAll Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2012
  • 2. Recognition Achievement Integrity Motivated Passion HarmonyEngaging Encouraged Rational Collaborative Together RespectfulCourage Purpose Learning Exploring Supportive Optimistic Creating Trust Sharing Ease Agreement DiscoveringChallenging Excited Growing Leading Kind Improving Thoughtful Intelligent All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. Knowledge ©Copyright 2012
  • 3. There are many doors through which an organisation can come to embrace Lean; Some are much better than others. Source: Based on the Theory to Performance Model, Sense and Respond: The journey to customer purpose. Sense and Respond Lean Enterprise Theory Interception points Management principles Education The way we think Learning to see Operating design principles Service DesignClimate Operating structures Measurement , incentives. Continuous improvement methods Disciplined experimentation Tools Processes Easiest and on Point-fix / improvement tools occasions the worst Behaviours places to start Performance All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2012
  • 4. Climetrics® A diagnostic to determine if an organisation is Adaptive, Innovative and Engaging. Imagine the organisation is like a city. Analysis of the climate above will reveal information about activity on the ground. This provides both a diagnosis of the current issues and outlines the long-term consequences.The Service Climate is the combined perception of customers, employees, managers and leaders. It predicts theperformance and long term profitability of an organisation.We use a Service Climate diagnostic called Climetrics® which also measures how well the organisation as awhole, identifies, understands and delivers against customer needs.The diagnostic leads to a plan which when executed will create a superior ClimateAll Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2012
  • 5. Service Climate And Performance CLIMETRICS® ™All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2012
  • 6. Does the job design allow all staff toengage with customers and users? ServiceTo what extent can staff modify solutions Climatewithout management permission? ENGAGING And Performance CLIMETRICS®Is everything forbidden unless permitted,or is ,everything permitted unless forbidden? ™ All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2012
  • 7. Do staff routinely share business intelligence and improvement information Service with senior management? Climate And LEARNING What is the management focus? - Performance employee utilisation, cost reduction and CLIMETRICS® work intensification, or, creativity, customer outcomes, problem™ solving, learning and sharing knowledge? All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2012
  • 8. Do Leaders foster a no-blame climate to surface problems for teams to work on? Service Climate Do leaders routinely spend time at the And Performance LEADING workplace solving front-line issues with the staff? CLIMETRICS® Do leaders pay more attention to efficiency-driven functional targets,™ or, end-to-end effectiveness at creating customer and user outcomes? All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2012
  • 9. Do employees influence end-to-endbusiness processes? Service ClimateWhat influence does staff have overimproving the measurement system? IMPROVING And Performance CLIMETRICS®What influence do employees have onimproving products and services? ™All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2012
  • 10. What type of climate do customers, employees, managers and leaders live in? The Behaviours, Measures, Job Design and Purpose are different. Customer pulls products and services ON-DEMAND Customers and employees are designed in Sense and Respond Lean Enterprise Relational Willing End-to-end Listen and personal contribution effectiveness and adapt Customer/User Employee motivation Support operations Executive leadership experience Transactional Incentivised Functional Direct and processed contribution efficiency and control Make-and-Sell Organisation Mass Production Company pushes products and services ON-COMMAND Customers and employees are designed outAll Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2012
  • 11. Climate Landscapes CUSTOMER EMPLOYEE IMPROVEMENT MANAGEMENT COMPETITIVE LEADERSHIPCHARACTER OFFERINGS EXPERIENCE EXPERTISE RESPONSIBILITY FOCUS BASIS FOCUSSense and Personalised, Customer Expert Broad Front-line Creativity, Trusted Listen andRespond individual, experience is knowledge to experiments expertise, new advisor and adapt Bespoke. personal and provide and learning products and expert Unique. unique integrated services. solutions Integration Flexible Co-Creation of Customer offerings solution Disciplined outcomes. design experimentation Business Problem solving outcomesMake and Sell Low variety Transactional Basic Improvement Employee Commoditised Command and processed boards utilisation, cost and control reduction, work High Volume intensification. No customer Improvement involvement in specialists Low Margins solution Disciplined design compliance Suggestion Economies of schemes scale All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2012
  • 12. Mass Adaptation. Customer Value Enterprise® Adaptive, Innovative and Engaging organisations. The service will provide personalised advice to suit the individual. Employee skills are high Mass Specialisation. Customers must know which service they want, where to obtain it and integrate each one from different sources. Mass Customisation. This is a variation of the one-size-fits-all. The employee helps the customer select from a fixed menu of options. Mass Production. A one size fits all service has low variety offerings , employee skills are basic ™All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2012
  • 13. Climetrics® Landscapes CUSTOMER EMPLOYEE IMPROVEMENT MANAGEMENT COMPETITIVE LEADERSHIP CHARACTER OFFERINGS EXPERIENCE EXPERTISE RESPONSIBILITY FOCUS BASIS FOCUS Customer Value Personalised, Customer Expert Broad Front-line Creativity, Trusted Listen and Enterprise ® individual, experience is knowledge to experimentation expertise, new advisor and adapt Bespoke. personal and provide and Learning products and expert Mass Unique. unique integrated services. solutions Adaptation Integration Flexible Co-Creation of Customer Offerings solution design outcomes. Business Problem Solving Outcomes The Department More choice High level of Specific and Front-line staff Developing staff In-depth Consultative Store from a variety customer deep specialist knowledge specialities of standard interaction to knowledge and Managers connected to offerings identify needs skills expert Mass and situation Capture and reuse networks solutionsSpecialisation Effectiveness Economies of Scope The Pizza Fixed menu Discuss simple Understand Central Change Cost, efficiency Commodity Direct and Parlour with simple needs and basic option Teams and Coordination Driven Control options available configurations Mass options. Managers Emphasis onCustomisation Low customer providing involvement value-add and during solution choice design The Bus Low Variety Transactional Basic Improvement Employee Commoditised Command and and Processed Boards utilisation, cost Control reduction, work High Volume Mass No customer Improvement intensification. Production involvement in Specialists Low Margins solution design Suggestion Economies of Schemes Scale All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2012
  • 14. Freedom and decision A making Global Services Company. June 2010: Before Transformation B Customer -facing activity Engaging Learning Leading Improving C Customer -intelligence gathering Sharing intelligence with the D Mass team Adaptation Organisational E understanding Sharing intelligence across F the function Mass Sharing intelligence with GSpecialisation other functions Transformation objective Sharing intelligence with H top/senior management I Performance management MassCustomisation J Adaptive leadership Responding to customer K issues Mass Implementing ideas to L Production better serve customers Employee influence on M products and services A B C D E F G H I J K L M N O P N Employee influence on managing practices Employee influence onClimate Strength Climetrics® Climatograph O other functions Employee influence on end- P to-end processes All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2012
  • 15. Freedom and decision A making Global Services Company. November 2011: After Transformation B Customer-facing activity Engaging Learning Leading Improving C Customer-intelligence gathering Sharing intelligence with the D Mass team Adaptation Organisational E understanding Sharing intelligence across F the function Mass Sharing intelligence with GSpecialisation other functions Transformation objective Sharing intelligence with H top/senior management I Performance management MassCustomisation J Adaptive leadership Responding to customer K issues Mass Implementing ideas to L Production better serve customers Employee influence on M products and services A B C D E F G H I J K L M N O P N Employee influence on managing practices Employee influence onClimate Strength Climetrics® Climatograph O other functions Employee influence on end- P to-end processes All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2012
  • 16. Freedom and decision A making Global ICT and applications company 2001: Before Transformation B Customer -facing activity Engaging Learning Leading Improving C Customer -intelligence gathering Sharing intelligence with the D Mass team Transformation objective Adaptation Organisational E understanding Sharing intelligence across F the function Mass Sharing intelligence with GSpecialisation other functions Sharing intelligence with H top/senior management I Performance management MassCustomisation J Adaptive leadership Responding to customer K issues Mass Implementing ideas to L Production better serve customers Employee influence on M products and services A B C D E F G H I J K L M N O P N Employee influence on managing practices Employee influence onClimate Strength Climetrics® Climatograph O other functions Employee influence on end- P to-end processes All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2012
  • 17. Freedom and decision A making Global ICT and applications company 2003: After Transformation B Customer-facing activity Engaging Learning Leading Improving C Customer-intelligence gathering Sharing intelligence with the D Mass team Transformation objective Adaptation Organisational E understanding Sharing intelligence across F the function Mass Sharing intelligence with GSpecialisation other functions Sharing intelligence with H top/senior management I Performance management MassCustomisation J Adaptive leadership Responding to customer K issues Mass Implementing ideas to L Production better serve customers Employee influence on M products and services A B C D E F G H I J K L M N O P N Employee influence on managing practices Employee influence onClimate Strength Climetrics® Climatograph O other functions Employee influence on end- P to-end processes All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2012
  • 18. From first to last, Respect for People. Extracts from a broadcast by Stephen Parry 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. In this context, ‘respect for people’ means Managers helping employeesunderstanding that all people have the ability freely choose how they solve to learn and the right to be given problems displays total opportunities to learn. respect. There is a world of differencebetween helping people to see and telling them they are blind. Most of all we must trust that people are capable of owning and solving their own problems with a little bit of help. All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2012
  • 19. ‘In reality, this is a climate change on a massive scale. It is a shift to a climate that can see the value in recognizing ‘disconnects’ with customers. It is a shift to a climate where frontline workers have the skills and motivation to conduct root-condition analysis. It is a shift to a climate in which learning is seen as central to business success, not just an add-on activity.’ Dr. Joel Cutcher-Gershenfeld Senior Research Scientist, MIT Sloan School of Management, and Executive Director, MIT Engineering Systems Learning Center Climate replaced the original word Culture for clarity.All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2012
  • 20. How do we measure and manage customer value?All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2012
  • 21. There are many doors through which an organisation can come to embrace Lean; Some are much better than others. Source: Based on the Theory to Performance Model, Sense and Respond: The journey to customer purpose. Sense and Respond Lean Enterprise Theory Interception points Management principles Education The way we think Learning to see Operating design principles Service DesignClimate Operating structures Measurement , incentives. Continuous improvement methods Disciplined experimentation Tools Processes Easiest and on Point-fix / improvement tools occasions the worst Behaviours places to start Performance All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2012
  • 22. What you measure tells everyone what you think You’ll not find many Mean time End to End to process by priority level Average IT Availability Time measures in this zone. % resolved within Customer Target priority MTP Satisfaction ? Depends No. Calls Exceed SLA Av time for 2nd Calls/ Agent ‘If you measure your level to respond /Day % of Calls Convt to Tickets No. calls without Functional Esc/agent % Incorrectly assigned % Incorrectly Av Time Call Answr business using averages, Categorised don’t be surprised to find % Incidents Agent Re-assigned yourself running an % Calls Utilisation Bypass 1st Line Av Time to First Average resolve Time % of calls that are Fix average business.’ Service Requests Handle Time No Matters to Customers YesAll Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. Purpose ©Copyright 2012
  • 23. IT and application support staff Measurement before and after understanding users.23All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2012
  • 24. What we feel pain about today.24All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2012
  • 25. Wrong measures, wrong pain, wrong outcomes.Service Measures and SLAs. End-user Measures. End User pain points All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2012
  • 26. CORE Profile: Value definitions Is defined by ‘Customer Purpose’. Deliver value effectively to customers and efficiently CREATE to the organisation. (Optimise) Creates the possibility for developing new OPPORTUNITY services that will satisfy customers or (Innovate) increase production and revenue. RESTORE Occurs when the organisation delivers unfit (Restore and Remove) products or services. Production is lost, the customer is unhappy, resulting in loss of EXTERNAL money, time, and reputation. (Restore and Re-think) Originates externally and is usually waste or demand that is created by other organisations, agencies or institutions.All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2012
  • 27. CORE Profile for Global IT end User support (November 2009)All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2012
  • 28. CORE Profile: ICT support operations Before changing the service. Create 8% Opportunity 2% Remedial 80% External 10%All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. Source Fujitsu Case Study: Sense and Respond Book Used with kind permission ©Copyright 2012
  • 29. CORE Profile: ICT support operations After changing the service. Create 50% Opportunity 12% Remedial 33% External 5%All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. Source Fujitsu Case Study: Sense and Respond Book Used with kind permission ©Copyright 2012
  • 30. CORE Profile: Teleco Services Create 6% Opportunity 2% 20% 60% Remedial 87% workforce Chasing the people who do the work External 5%All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2012
  • 31. Climetrics® Survey: Telco before and after highlightsStatement Before % After % Statement Before % After %Understanding our services allows me to take 42 100 I am involved in decision making. 28 45effective action.Understanding the customer improves my 14 83 I make decisions with the customer in mind. 14 67commitment.Understanding customers helps me make better My data improves the quality of decision 15 95 0 83decisions. making.It is my job to share information with my peers I can improve processes and methods to serve 0 63 15 65and managers. the customer.I help my organisation understand what I use customer data to help managers make 0 82 17 63customers value. better decisions.My manager supports my decision when I have I am confident making decisions with customer 0 49 13 66customer data. data.The management team is committed to I understand how the whole organisation works 17 50 16 68improving the quality of work for customers. All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2012
  • 32. Freedom and decision A making Telco Before Transformation B Customer -facing activity Engaging Learning Leading Improving C Customer -intelligence gathering Sharing intelligence with the D Mass team Adaptation Organisational E understanding Sharing intelligence across F the function Mass Transformation objective Sharing intelligence with GSpecialisation other functions Sharing intelligence with H top/senior management I Performance management MassCustomisation J Adaptive leadership Responding to customer K issues Mass Implementing ideas to L Production better serve customers Employee influence on M products and services A B C D E F G H I J K L M N O P N Employee influence on managing practices Employee influence onClimate Strength Climetrics® Climatograph O other functions Employee influence on end- P to-end processes All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2012
  • 33. Freedom and decision A making Telco After Transformation B Customer-facing activity Engaging Learning Leading Improving C Customer-intelligence gathering Sharing intelligence with the D Mass team Adaptation Organisational E understanding Sharing intelligence across F the function Mass Transformation objective Sharing intelligence with GSpecialisation other functions Sharing intelligence with H top/senior management I Performance management MassCustomisation J Adaptive leadership Responding to customer K issues Mass Implementing ideas to L Production better serve customers Employee influence on M products and services A B C D E F G H I J K L M N O P N Employee influence on managing practices Employee influence onClimate Strength Climetrics® Climatograph O other functions Employee influence on end- P to-end processes All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2012
  • 34. Rational Recognition Achievement Integrity Motivated Passion HarmonyEngaging Encouraged Collaborative Together RespectfulCourage Exploring Purpose Learning Supportive Optimistic Creating Trust Sharing Ease Agreement ExcitedChallenging Growing Thoughtful Discovering Kind Improving Knowledge Intelligent All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2012
  • 35. TMAll Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2012
  • 36. © 2012 Service Climate Management Ltd. All rights reservedNo part of this publication may be reproduced or transmitted in any form or for All other product and service names mentioned are the trademarks of theirany purpose without the express permission of Service Climate Management respective companies. Data contained in this document serves informationalLtd. The information contained herein may be changed without prior notice. 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 anyService Climate Management ® is a registered trade mark of Service Climate form or for any purpose without the express prior written permission of ServiceManagement Ltd. 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. ThisCustomer Value Enterprise ® is a registered trade mark of Service Climate document contains only intended strategies, developments, models, methodsManagement Ltd. 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 beClimetrics ® is a registered trade mark of Service Climate Management Ltd. 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 theThe Engaging, Learning, Leadings Improvement device is a TM of Service Climate accuracy or completeness of the information, text, graphics, links, or other itemsManagement. contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the impliedCORE Demand Profile TM is a trademark of Service Climate Management Ltd. 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.