ACHIEVING IMPROVED PERFORMANCE THROUGH LEARNING HOW TO TACKLE THE RIGHT PROBLEMS (HENDRIK ASCHEBERG & STEVE MADDOCKS) - LKCE13

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In lean approaches problems are well known as opportunities for learning and improving. Do traditional approaches like project management, new IT solutions and lean tools actually encourage this learning and improving? Based on Vanguard’s 30 years experience in private and public sectors we have learnt that traditional approaches can lead organisations down a dangerous path. The inherent assumption about the problem and the answer can result in doing the wrong things righter. We will show through examples the dangers in some of the traditional approaches to problem solving and the impact on performance. We will explore a practical approach to solving the right problems and how to involve IT at the right time. It all starts with get knowledge!

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ACHIEVING IMPROVED PERFORMANCE THROUGH LEARNING HOW TO TACKLE THE RIGHT PROBLEMS (HENDRIK ASCHEBERG & STEVE MADDOCKS) - LKCE13

  1. 1. Achieving improved performance through learning how to tackle the right problem Hendrik Ascheberg & Steve Maddocks
  2. 2. AGENDA 1. Solving the wrong problem can lead to bad performance 2. Thinking governs performance: Some theory about problem solving 3. Theory in action: Financial Service Case study 4. Framework to take action 5. Questions & Discussion www.vanguard-deutschland.de 2
  3. 3. Solving the wrong problems can lead to bad performance and higher costs To Düsseldorf… …via Amsterdam …a customer experience www.vanguard-deutschland.de 3
  4. 4. Thinking governs performance • Standards reduce or control cost • Customers would rip the company off • We need to have control & consistency Thinking • Management know, what the customers want • We don´t trust our staff to make decisions and solve problems • Standards/Procedures • Service Levels System • Regulations/Audit • Customer is unhappy, problem not solved • Staff are frustrated, unhappy, cannot help and become disengaged Performance • Airline spends more money €€€ www.vanguard-deutschland.de 4
  5. 5. Thinking governs performance Thinking Action System Analysis Performance Seddon/Argyris www.vanguard-deutschland.de 5
  6. 6. Financial Service Case study Purpose: Help me finance my car! • Allocating work through – IVR – Interactive voice record (Press 1, if…) – Mailbox • Service Level: – Response within 5 days – <10% abandoned call rate • Back-office 4x • Transactions doubled IVR • Transactions 5x • Transactions trippeled • Demand Amplification & backlog • Failure demand www.vanguard-deutschland.de 6
  7. 7. Why did the system perform this way? • Leave your brain at the door: simple repetitive tasks • Targets motivate people to work harder • Targets increase efficiency • Specialist can do things faster Thinking Functionalisation • Allocation of work •Back-Office Targets • Service Level: <10% lost call • Increase in transactions: 20% one stop capability • Demand Amplification & Backlog: 3 month • Failure demand: System 60% Performance www.vanguard-deutschland.de 7
  8. 8. What was the consequence of changing thinking? Before: After: • Focus on Productivity /Activity • Focus on value work, act on failure • Functionalisation leads to better efficiency • Design against demand: Expertise to the front Thinking • Targets lead to higher Performance • Eliminate waste and optimse flow • Managers act on the system and engage staff in problem solving • 5 functions • 1 function • 14 mail boxes • 1 mail box • Targets (10% abandoned call rate) System • Measures to learn and improve (value/ failure; one stop capability) • Mails waiting in back log: 3 month • No back log • Staff were fire fighting • Staff morale went up • Plan to recruit additional staff Performance • Existing staff took over new demands and proactive work www.vanguard-deutschland.de 8
  9. 9. How can you challenge thinking? www.vanguard-deutschland.de 9
  10. 10. If you don´t challenge your current thinking… …you solve the same old problems the same old way. If you challenge your thinking…. …you solve different problems. www.vanguard-deutschland.de 10
  11. 11. Thank You! Interested to learn more? www.vanguard-deutschland.de www.vanguard-method.com www.vanguard-deutschland.de 11
  12. 12. Back-up www.vanguard-deutschland.de 12
  13. 13. The secret • Rational • Coercive • Normative www.vanguard-deutschland.de 13
  14. 14. What other traditional options do we have to solve the problem? • New IT: Workflow management, CRM • Outsourcing • Paid telephone hotline • Improvement tools – 5s – Kanban – Visual methods – Etc. www.vanguard-deutschland.de 14

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