Parry climetrics adapative organisation lkna13

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Designing Adaptive, Innovative and Engaging Organisations using Sense and Respond 3.0 Adaptive Lean Principles.
What do Adaptive Lean principles tell us about the way we need to design, build and operate modern businesses? Can we design organizations that are adaptive, innovative and engaging for employees and customers alike? Can we really change cultures in reasonably short time-frames?
This presentation based on the most recent research from work psychology will provide counter intuitive insights into the ‘industrial management’ mind set, its impact on the design of work and management behaviors. And of course we will provide tested countermeasures to design back in employee willing contribution and establish a real human enterprise that leads to long term prosperity.

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Parry climetrics adapative organisation lkna13

  1. 1. All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved.TM
  2. 2. All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved.Designing Adaptive, Innovative and EngagingOrganisations.Stephen ParryAuthor of Sense and RespondSenior Partner at Lloyd Parry@LeanvoicesBlog : www.LeanVoices.comStephen.parry@lloydparry.comwww.lloydparry.comwww.slideshare.net/SGParry/presentations
  3. 3. All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved.ChoiceFreedomPowerPerformance is a matter of people havingwhich is a matter ofwith the PerformanceMeasuresTechnologyIs your organisation a hindrance to employees, managers andcustomers?Designing a better end-to-end‘System’to do what matters for customers.Role DesignProcesses andProceduresPolicy
  4. 4. All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved.Imagine the organisation is like a city.Analysis of the climate above will revealinformation about activity on the ground.This provides both a diagnosis of the currentissues and outlines the long-termconsequences.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 Service Climate through the adoptionof Adaptive -Lean methods.
  5. 5. All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved.Also predicts the implications for a business that doesn’t changeDiagnosisOperating strategies.Operating structures.Managing practices.Perceptions, feelings and behaviour ofcustomers, staff, managers and leaders.End-to-end service performance.Quality.Innovation and change ability.Customer centricity.Leadership.Prognosis: Service PerformancePredictabilityLong-term profitability.Work outcomes.Employee performance.Job satisfaction.Customer perceptions of service quality.Quality improvements.Commitment.Absenteeism and turnover.Organisational adaptability.Service Climate: Thinking Feelings and Behaviourof Customers, Employees, Managers and Leaders
  6. 6. All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved.™
  7. 7. All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved.Does the job design allow all staff toengage with customers and users?To what extent can staff modify solutionswithout management permission?Is everything forbidden unless permitted,or is everything permitted unlessforbidden?ENGAGING™
  8. 8. All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved.Do staff routinely share businessintelligence and improvement informationwith senior management?What is the management focus? -employee utilisation, cost reduction andwork intensification or creativity, customeroutcomes, problem solving, learning andsharing knowledge?LEARNING™
  9. 9. All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved.Do Leaders foster a no-blame climate tosurface problems for teams to work on?Do leaders routinely spend time at theworkplace solving front-line issues withthe staff?Do leaders pay more attention toefficiency-driven functional targets orend-to-end effectiveness at creatingcustomer and user outcomes?LEADING™
  10. 10. All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved.Do employees influence end-to-endbusiness processes?What influence does staff have overimproving the measurement system?What influence do employees have onimproving products and services?IMPROVING™
  11. 11. All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved.Climetrics® Engaging, Learning, Leading, Improving On-Line Survey DimensionsAFreedom and decisionmakingB Customer facing activityCCustomer intelligencegatheringDSharing intelligence with theteamE Organisational understandingFSharing intelligence acrossthe functionGSharing intelligence with otherfunctionsHSharing intelligence withtop/senior managementI Performance managementJ Adaptive leadershipKResponding to customerissuesLImplementing ideas to betterserve customersMEmployee influence onproducts and servicesNEmployee influence onmanaging practicesOEmployee influence on otherfunctionsPEmployee influence on end-to-end processes
  12. 12. All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved.On-Line Data CollectionData CleansingValidity testing (Factor Analysis)Correlation Matrix AnalysisRegression AnalysisConfirmatory Factor AnalysisStructural Equation ModellingClimetrics® Landscape categorisationStatistical data - InterpretationTriangulation with on-site workshopsExecutive SummaryClimetrics® Analysis MethodologyClimetrics ® Statistical Analysis Process
  13. 13. All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved.Mass Customisation. This is a variation of the one-size-fits-all. The employee helps the customer select from afixed menu of options. The customer experience andemployee engagement, however, are relatively low.Mass Specialisation. Customers must know which service theywant, where to obtain it and integrate each one from differentsources. Since employees possess deep specialist knowledge,they will engage customers at a much higher level, and thecustomer experience is personal and solutions standard.Mass Adaptation. The Customer Value Enterprise® The service willprovide personalised advice to suit the individual. Employee skills arehigh and they will integrate and combine all solutions on the customers’behalf in unique combinations, resulting in high customer and employeeengagement. The customer experience is personal and unique.Mass Production. A one size fits all servicehas low variety offerings , employee skillsare basic and customer engagement istransactional.™
  14. 14. All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved.Climetrics® LandscapesCHARACTER OFFERINGSCUSTOMEREXPERIENCEEMPLOYEEEXPERTISEIMPROVEMENTRESPONSIBILITYMANAGEMENTFOCUSCOMPETITIVEBASISLEADERSHIPFOCUSCustomer ValueEnterprise ®Personalised,individual,Bespoke.Unique.FlexibleOfferingsCustomerexperience ispersonal anduniqueCo-Creation ofsolution designExpert Broadknowledge toprovideintegratedsolutionsFront-lineexperimentationand LearningCreativity,expertise, newproducts andservices.Customeroutcomes.Problem SolvingTrustedadvisor andexpertIntegrationBusinessOutcomesListen andadaptThe DepartmentStoreMore choicefrom a varietyof standardofferingsHigh level ofcustomerinteraction toidentify needsand situationSpecific anddeep specialistknowledge andskillsFront-line staffManagersDeveloping staffknowledgeCapture and reusesolutionsEffectivenessIn-depthspecialitiesconnected toexpertnetworksEconomies ofScopeConsultativeThe PizzaParlourFixed menuwith simpleoptionsDiscuss simpleneeds andavailableoptions.Low customerinvolvementduring solutiondesignUnderstandbasic optionconfigurationsCentral ChangeTeamsManagersCost, efficiencyand CoordinationCommodityDrivenEmphasis onprovidingvalue-add andchoiceDirect andControlThe Bus Low Variety Transactionaland ProcessedNo customerinvolvement insolution designBasic ImprovementBoardsImprovementSpecialistsSuggestionSchemesEmployeeutilisation, costreduction, workintensification.CommoditisedHigh VolumeLow MarginsEconomies ofScaleCommand andControlMassProductionMassCustomisationMassSpecialisationMassAdaptation
  15. 15. All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved.MassProductionMassCustomisationMassSpecialisationMassAdaptationIndependentFinancialAdviceConsumer ITSupportServicesEnergyUtilitiesWaterUtilitiesConsumerBankingServicesHealth-CareServicesInsuranceServicesMobile PhoneSupport ServicesRevenueand TaxGovernmentCentresLow-costAirlineTravelServicesLegalAdviceCredit CardServicesConsumerAdviceCorporate ITServicesPost andParcel ServicesPurchasingComputersMobile PhonePurchasingInvestmentServicesWeak Operation Standard Operation Excellent OperationClimetrics® Operating Landscapes and Operational Excellence with AdaptabilityDifferentiationcurve
  16. 16. All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved.Telco Case StudyCEO wake-up call‘We have been concentrating on technology and then trying to sell that tocustomers lets focus instead on what customers actually want and getting thetechnology to support them.”
  17. 17. All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved.MassProductionMassCustomisationMassSpecialisationMassAdaptationWeak Operation Standard Operation Excellent OperationClimetrics® Telco before transformationBusinessSupportOperationsDesign andProvision Differentiationcurve
  18. 18. MassProductionMassCustomisationMassSpecialisationMassAdaptationAFreedom and decisionmakingB Customer-facing activityCCustomer-intelligencegatheringDSharing intelligence with theteamEOrganisationalunderstandingFSharing intelligence acrossthe functionGSharing intelligence withother functionsHSharing intelligence withtop/senior managementI Performance managementJ Adaptive leadershipKResponding to customerissuesLImplementing ideas tobetter serve customersMEmployee influence onproducts and servicesNEmployee influence onmanaging practicesOEmployee influence onother functionsPEmployee influence on end-to-end processesEngaging Learning Leading ImprovingA B C D E F G H I J K L M N O PClimetrics® ClimatographTransformation objectiveClimate StrengthTelco Before Transformation
  19. 19. MassProductionMassCustomisationMassSpecialisationMassAdaptationAFreedom and decisionmakingB Customer-facing activityCCustomer-intelligencegatheringDSharing intelligence with theteamEOrganisationalunderstandingFSharing intelligence acrossthe functionGSharing intelligence withother functionsHSharing intelligence withtop/senior managementI Performance managementJ Adaptive leadershipKResponding to customerissuesLImplementing ideas tobetter serve customersMEmployee influence onproducts and servicesNEmployee influence onmanaging practicesOEmployee influence onother functionsPEmployee influence on end-to-end processesEngaging Learning Leading ImprovingA B C D E F G H I J K L M N O PClimetrics® ClimatographClimate StrengthTelco After TransformationTransformation objective
  20. 20. Operational engagementProspect for Value Discover Value Design for Value Build for Value Operate for ValueOrganisationalVisionOperatingStrategyDiagnoseOrganisational StructuresBuilding New Capabilities and SkillsCommunications and Stakeholder ManagementProgramme Management, Governance and Risk ManagementMethods and ToolsOperations deliveryteamFSOM andOrganisationalDesignClientEngagementImplementationStrategyStructuralReorganisationChange approachand route-map designBusinessImperativesTerms ofReferenceCSMbecomesFSOMOperatingFor ValueOperations Executive Steering Group and SponsorProgramme DeliverablesEnablersProgramme ManagementOperational EngagementService climateanalysis Climetrics®Project managementresources allocatedRoute-map to the New Operating Model and ClimateImplementationClient and User needsanalysisCustomer Engagement
  21. 21. ChangeManagementStandardsProcessManagementMeasurementService MgntFinanceBudgetsKnowledgeManagementResourceManagementEscalationProblemManagementCommercialTradingAdminLogisticsFacilitiesFieldTechnologiesFleetManagementH.RR&RBonus.Operations StaffCustomerSupport ActivitiesThe way we think
  22. 22. All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved.MassProductionMassCustomisationMassSpecialisationMassAdaptationWeak Operation Standard Operation Excellent OperationClimetrics® Telco before and after transformationBusinessSupportOperateDesign andProvisionNewServiceDifferentiationcurve
  23. 23. All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved.Statement Before % After %Understanding our services allows me to takeeffective action.42 100Understanding the customer improves mycommitment.14 83Understanding customers helps me make betterdecisions.15 95It is my job to share information with my peersand managers.0 63I help my organisation understand whatcustomers value.0 82My manager supports my decision when I havecustomer data.0 49The management team is committed toimproving the quality of work17 50Statement Before % After %I am involved in decision making. 28 45I make decisions with the customer in mind. 14 67My data improves the quality of decisionmaking.0 83I can improve processes and methods to servethe customer.15 65I use customer data to help managers makebetter decisions.17 63I am confident making decisions with customerdata.13 66I understand how the whole organisation worksfor customers.16 68Climetrics® Survey: Telco before and after highlights
  24. 24. All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved.Luton BCIn year one of our Luton Excellence Change program we were able to meet a budget gap of£6.4 million.In the second year when the council’s budget for 2011/12 was reduced by £19 million thechange program identified and produced £21 million in savings while either maintaining orincreasing the quality of service delivery.This was achieved not by following typical BPR, process improvement and cost cuttingprojects but by investing in activities to create a cultural change by developing our staff andmanagers to take action on improving the service themselves.Main objective: enabling Luton Borough Council to deliver the best value services to citizensand customers. It has three key focus areas:1. improving customer service, outcomes and citizens’ experience of the local authority2. delivering efficiencies, cost avoidance and cashable savings3. streamlining working styles and increasing job satisfaction.Achieving this has involved, first and foremost, prompting a change in organisationalapproach and a change in climate.We introduced a particularly sharp mind-set about how to run an organisation efficiently andeffectively in terms of what is done, how it is done and who does it.
  25. 25. All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved.MassProductionMassCustomisationMassSpecialisationMassAdaptationAFreedom and decisionmakingB Customer facing activityCCustomer intelligencegatheringDSharing intelligence with theteamEOrganisationalunderstandingFSharing intelligence acrossthe functionGSharing intelligence withother functionsHSharing intelligence withtop/senior managementI Performance managementJ Adaptive leadershipKResponding to customerissuesLImplementing ideas tobetter serve customersMEmployee influence onproducts and servicesNEmployee influence onmanaging practicesOEmployee influence onother functionsPEmployee influence on end-to-end processesEngaging Learning Leading ImprovingLuton BC:BeforeA B C D E F G H I J K L M N O PClimetrics® ClimatographTransformation objectiveClimate Strength
  26. 26. All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved.MassProductionMassCustomisationMassSpecialisationMassAdaptationAFreedom and decisionmakingB Customer facing activityCCustomer intelligencegatheringDSharing intelligence with theteamEOrganisationalunderstandingFSharing intelligence acrossthe functionGSharing intelligence withother functionsHSharing intelligence withtop/senior managementI Performance managementJ Adaptive leadershipKResponding to customerissuesLImplementing ideas tobetter serve customersMEmployee influence onproducts and servicesNEmployee influence onmanaging practicesOEmployee influence onother functionsPEmployee influence on end-to-end processesEngaging Learning Leading ImprovingLuton BC:AfterA B C D E F G H I J K L M N O PClimetrics® ClimatographClimate StrengthTransformation objective
  27. 27. All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved.Local Government: Two-year transformationNavigator Suite ™ Route-Maps
  28. 28. © Copyright Stephen Parry 2011 all rights reserved.Fujitsu Case Study: Results 2003/2004Customer satisfaction up by 74%.Unwanted demand decreased by 61%.Employee satisfaction increased by 40%.Attrition dropped from 40% to 8%.Operating costs reduced by 45%.Increased business revenues. 72%Created a market differentiator.2003 National Business AwardsBest customer Service Strategy ‘Sense andRespond’Fujitsu generated “an entire culturalchange around the needs of itscustomers and could as a resultdemonstrate business growth,innovation and success.”Source Fujitsu Case Study: Sense and Respond Book Used with kind permission
  29. 29. All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved.©Copyright 2012MassProductionMassCustomisationMassSpecialisationMassAdaptationAFreedom and decisionmakingB Customer -facing activityCCustomer -intelligencegatheringDSharing intelligence with theteamEOrganisationalunderstandingFSharing intelligence acrossthe functionGSharing intelligence withother functionsHSharing intelligence withtop/senior managementI Performance managementJ Adaptive leadershipKResponding to customerissuesLImplementing ideas tobetter serve customersMEmployee influence onproducts and servicesNEmployee influence onmanaging practicesOEmployee influence onother functionsPEmployee influence on end-to-end processesEngaging Learning Leading ImprovingA B C D E F G H I J K L M N O PClimetrics® ClimatographTransformation objectiveClimate StrengthGlobal ICT Outsourcing : Before Transformation
  30. 30. All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved.©Copyright 2012MassProductionMassCustomisationMassSpecialisationMassAdaptationAFreedom and decisionmakingB Customer-facing activityCCustomer-intelligencegatheringDSharing intelligence with theteamEOrganisationalunderstandingFSharing intelligence acrossthe functionGSharing intelligence withother functionsHSharing intelligence withtop/senior managementI Performance managementJ Adaptive leadershipKResponding to customerissuesLImplementing ideas tobetter serve customersMEmployee influence onproducts and servicesNEmployee influence onmanaging practicesOEmployee influence onother functionsPEmployee influence on end-to-end processesEngaging Learning Leading ImprovingA B C D E F G H I J K L M N O PClimetrics® ClimatographClimate StrengthTransformation objectiveGlobal ICT Outsourcing : After Transformation
  31. 31. All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved.MassProductionMassCustomisationMassSpecialisationMassAdaptationAFreedom and decisionmakingB Customer facing activityCCustomer intelligencegatheringDSharing intelligence with theteamEOrganisationalunderstandingFSharing intelligence acrossthe functionGSharing intelligence withother functionsHSharing intelligence withtop/senior managementI Performance managementJ Adaptive leadershipKResponding to customerissuesLImplementing ideas tobetter serve customersMEmployee influence onproducts and servicesNEmployee influence onmanaging practicesOEmployee influence onother functionsPEmployee influence on end-to-end processesEngaging Learning Leading ImprovingA B C D E F G H I J K L M N O PClimetrics® ClimatographTransformation objectiveClimate StrengthApplications Company. June 2010: Before Transformation
  32. 32. All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved.MassProductionMassCustomisationMassSpecialisationMassAdaptationAFreedom and decisionmakingB Customer facing activityCCustomer intelligencegatheringDSharing intelligence with theteamEOrganisationalunderstandingFSharing intelligence acrossthe functionGSharing intelligence withother functionsHSharing intelligence withtop/senior managementI Performance managementJ Adaptive leadershipKResponding to customerissuesLImplementing ideas tobetter serve customersMEmployee influence onproducts and servicesNEmployee influence onmanaging practicesOEmployee influence onother functionsPEmployee influence on end-to-end processesEngaging Learning Leading ImprovingA B C D E F G H I J K L M N O PClimetrics® ClimatographClimate StrengthTransformation objectiveApplications Company. Nov 2011: AfterTransformation
  33. 33. All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved.©Copyright 2012ChoiceFreedomPowerPerformance is a matter of people havingwhich is a matter ofwith the PerformanceMeasuresTechnologyIs your organisation a hindrance to employees, managers andcustomers?Designing a better end-to-end‘System’to do what matters for customers.Role DesignProcesses andProceduresPolicy
  34. 34. All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved.TM
  35. 35. No part of this publication may be reproduced or transmitted in any form or forany purpose without the express permission of Service Climate ManagementLtd. The information contained herein may be changed without prior notice.Service Climate Management ® is a registered trade mark of Service ClimateManagement Ltd.Customer Value Enterprise ®is a registered trade mark of Service ClimateManagement Ltd.Climetrics ® is a registered trade mark of Service Climate Management Ltd.The Engaging, Learning, Leadings Improvement device is a TM of Service ClimateManagement.CORE Demand Profile TM is a trademark of Service Climate Management Ltd.© 2012 Service Climate Management Ltd. All rights reservedAll other product and service names mentioned are the trademarks of theirrespective companies. Data contained in this document serves informationalpurposes only.The information in this document is proprietary to Service Climate ManagementLtd. No part of this document may be reproduced, copied, or transmitted in anyform or for any purpose without the express prior written permission of ServiceClimate Management Ltd.This document is a preliminary version and not subject to your licenseagreement or any other agreement with Service Climate Management Ltd. Thisdocument contains only intended strategies, developments, models, methodsand products and is not intended to be binding upon Service ClimateManagement to any particular course of business, product strategy, and/ordevelopment. Please note that this document is subject to change and may bechanged by Service Climate Management Ltd. at any time without notice.Service Climate Management assumes no responsibility for errors or omissionsin this document. Service Climate Management Ltd. does not warrant theaccuracy or completeness of the information, text, graphics, links, or other itemscontained within this material. This document is provided without a warranty ofany kind, either express or implied, including but not limited to the impliedwarranties of merchantability, fitness for a particular purpose, or non-infringement.Service Climate Management Ltd. shall have no liability for damages of any kindincluding without limitation direct, special, indirect, or consequential damagesthat may result from the use of these materials. This limitation shall not apply incases 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 youmay access through the use of hot links contained in these materials and doesnot endorse your use of third-party Web pages nor provide any warrantywhatsoever relating to third-party Web pages.

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