All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
Stephen Parry
Author of Sense and Respond
S...
All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
Stephen Parry
Founder and Senior Partner at...
All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
The program for today
Why Lean is not about...
All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
The customer/service user challenge: They d...
All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
Question:
What would service organisations ...
All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
Traditional approach: Feasible parts creati...
All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
Improved end-to-end service delivery?
F1 F2...
All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
What type of work-climate do customers, emp...
All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
Transformation objective and expectation
Ba...
All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
Transformation objective and expectation
Ba...
All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
™
All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
Does the job design allow all staff to
enga...
All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
Do staff routinely share business
intellige...
All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
Do Leaders foster a no-blame climate to
sur...
All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
Do employees influence end-to-end
business ...
All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
Basic Standard Excellent
Autonomy
Customer ...
All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
Basic Standard Excellent
Performance
Manage...
All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
Global ICT and Networks Company B2B: Before...
All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
Statement Before % After %
Understanding ou...
All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
Challenge
•The operating models we have all...
All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
Fujitsu Case Study: Results
Customer satisf...
All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
What does Lean-Service mean for the organis...
All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
What does Lean-Service mean for the organis...
All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
Useful References
Adaptive Enterprise by St...
All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
Lloyd Parry Lean Service Transformation Con...
All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
Stephen Parry
Author of Sense and Respond
S...
No part of this publication may be reproduced or transmitted in any form or for
any purpose without the express permission...
All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved.
TM
Lean Mythbusting for Staff, Managers and Executives.
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Lean Mythbusting for Staff, Managers and Executives.

  1. 1. All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. Stephen Parry Author of Sense and Respond Senior Partner at Lloyd Parry Stephen.parry@lloydparry.com www.lloydparry.com Twitter @leanvoices All sources, influences, acknowledgements and reading lists can be found on our blog at www.leanvoices.com Myth busting Lean for Staff, Management and Executives.
  2. 2. All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. Stephen Parry Founder and Senior Partner at Lloyd Parry Author 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 Parry Lloyd 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.
  3. 3. All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. The program for today Why Lean is not about cutting staff. Why Lean is about people. Why customers demand Lean. • Call to action. • The customer problem. • The organisational problem. • The Lean-Service Solution. • The Lean-Service ‘Work-Climate’ what is it and why is it important for your business and your customers? • Lean-Service outcomes. • Time for a change. • References and sources.
  4. 4. All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. The customer/service user challenge: They don’t have time………….they say things like: Solve my problem, completely. Don't waste my time or cause me hassle. Minimise the cost of doing business with 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
  5. 5. All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. Question: What would service organisations do if they had to pay for all the service user or customer time they wasted? Adapted from Lean Solutions: Jim Womack and Dan Jones by Stephen Parry
  6. 6. All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. Traditional approach: Feasible parts creating an infeasible whole. Functional units Independent solutions designed to meet functional targets and goals. 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
  7. 7. All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. Improved end-to-end service delivery? F1 F2 F4F3 Fn S1 S2 S4S3 Sn Functional units Independent solutions designed to meet functional targets and goals. It’s not unusual to have thirty or more solutions lining up for attention. We need to move from Vertical Management to Horizontal Management Traditional approach: Feasible parts creating an infeasible whole.
  8. 8. All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. What type of work-climate do customers, employees, managers and leaders create? Mass Production Work-Climate Lean Service Work-Climate Willing contribution Transactional and processed Incentivised contribution Functional efficiency Direct and control Relational and personal End-to-end effectiveness Listen and adapt Company pushesproducts and services ON-COMMAND Customers and employees are designed out Customer pulls products and services ON-DEMAND Customers and employees are designed in Customer/User experience Employee motivation Executive leadershipSupport operations The Behaviours, Measures, Job Design and Purpose are different.
  9. 9. All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. Transformation objective and expectation Base-Line Current Performance Performance New performance falls short of expectations Lean Tools and Methods for process improvement Why do Lean initiatives fall short of expectations ?
  10. 10. All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. Transformation objective and expectation Base-Line Current Performance Performance New performance falls short of expectations Lean Tools and Methods for process improvement Lean Work Climate Engaging and understanding Learning and Sharing Leading and Decision Making Improving and Changing Work Design Measurement Behaviour Perspective
  11. 11. All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. ™
  12. 12. All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. Does the job design allow all staff to engage with customers and users? To what extent can staff modify solutions without management permission? Is everything forbidden unless permitted, or is everything permitted unless forbidden? ENGAGING ™
  13. 13. All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. Do staff routinely share business intelligence and improvement information with senior management? What is the management focus? - employee utilisation, cost reduction and work intensification or, creativity, customer outcomes, problem solving, learning and sharing knowledge, collaboration? LEARNING ™ All Trade-Marks and ©Copyright 2013 Owned by Lloyd Parry. All Rights Reserved.
  14. 14. All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. Do Leaders foster a no-blame climate to surface problems for teams to work on? Do leaders routinely spend time at the workplace solving front-line issues with the staff? Do leaders pay more attention to efficiency-driven functional targets or end-to-end effectiveness at creating customer and user outcomes? Who does the Leading? A few select people or most people? LEADING ™ All Trade-Marks and ©Copyright 2013 Owned by Lloyd Parry. All Rights Reserved.
  15. 15. All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. Do employees influence end-to-end business processes? What influence does staff have to improve the measurement system? What influence do employees have on improving products and services? IMPROVING ™ All Trade-Marks and ©Copyright 2013 Owned by Lloyd Parry. All Rights Reserved.
  16. 16. All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. Basic Standard Excellent Autonomy Customer facing activity Intelligence gathering Sharing team intelligence Excellent Standard Basic Mass Production Work-Climate Engaging Organisational Understanding Sharing intelligence within the function Sharing intelligence with other functions Sharing intelligence with senior managers Learning Lean Service Work-Climate Transformation objective Improvement objective ? Global ICT and Networks Company B2B: Before and After Climetrics®
  17. 17. All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. Basic Standard Excellent Performance Management Leadership approach Responsiveness to customer issues Implementing ideas to better serve customers Excellent Standard Basic Mass Production Work-Climate Leading Employee influence on improving service Employee influence on work practices Employee influence on other functions Employee influence on end-to-end processes Improving Lean Service Work-Climate Transformation objective Global ICT and Networks Company B2B: Before and After Climetrics®
  18. 18. All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. Global ICT and Networks Company B2B: Before and After Basic Standard Excellent Autonomy Customer facing activity Intelligence gathering Sharing team intelligence Excellent Standard Basic Mass Production Work-Climate Engaging Organisational Understanding Sharing intelligence within the function Sharing intelligence with other functions Sharing intelligence with senior managers Learning Lean Service Work-Climate Transformation objective Improvement objective ? Basic Standard Excellent Performance Management Leadership approach Responsiveness to customer issues Implementing ideas to better serve customers Excellent Standard Basic Mass Production Work-Climate Leading Employee influence on improving service Employee influence on work practices Employee influence on other functions Employee influence on end-to-end processes Improving Lean Service Work-Climate Transformation objective Climetrics® LeanWorkClimate Engaging and understanding Learningand Sharing Leading and DecisionMaking Improvingand Changing Work Design Measurement Behaviour Perspective
  19. 19. All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 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
  20. 20. All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. Challenge •The operating models we have all been working with for so long have become irrelevant. We have been concentrating on technology rather than concentrating on what customers actually want. •We need to move from a Break fix service to Managed Services. Objective •Deliver transformed customer experience •People - Deliver “connected performance” and Create “excellent leaders” and an adaptive workforce. Solutions Highlight •Working with Sense and Respond we implemented a unique transformational programme, which radically improved our service culture by tapping into the customer intelligence residing with the front-line staff. 1st year results have shown: • Improved the customer experience cycle time by 40% • Reduced hand-offs by 33% • Improved customer understanding and success • Improved the customer satisfaction index 30% • Improved out of service time 71% • Reduced escalations 83% • Reduced routine updates 67% • Reduced work in progress and associated overheads 49% • Improved resolution at first point of contact 64% • Have a highly involved and motivated workforce Operational Savings to date •07/08 £2, 163, 000 •Reduced Customer Churn Climetrics® Telco results ™
  21. 21. All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. Fujitsu Case Study: Results Customer satisfaction up by 70%. Unwanted demand decreased by 60%. Employee satisfaction increased by 40%. Attrition dropped from 40% to 8%. Operating costs reduced by 45%. Increased business revenues. Created a market differentiator. National Business Awards Best customer Service Strategy ‘Sense and Respond’ Fujitsu generated “an entire cultural change around the needs of its customers and could as a result demonstrate business growth, innovation and success.” Source Fujitsu Case Study: Sense and Respond Book Used with kind permission
  22. 22. All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. What does Lean-Service mean for the organisation, leaders, managers and staff? • Organisation. – Consider the measurement and governance systems – More rigorous Continuous Improvement structures – Potentially new commercial arrangements with customers – New operational performance measures – New operating model may be required – 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
  23. 23. All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 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.
  24. 24. All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. Useful References Adaptive Enterprise by Stephan Haeckel Landmark Education and the Landmark Forum www.landmarkworldwide.com The Essential Deming by Edward Deming Fourth Generation Management by Brian L. Joiner The Human Side of Enterprise by Douglas McGregor Lean Solutions by James P. Womack and Daniel T. Jones Lean Thinking by James P. Womack and Daniel T. Jones The Machine that Changed the World by James P. Womack and Daniel T. Jones Maslow on Management by Abraham H. Maslow I would like you to cheat by John Seddon Principles of Mass and Flow Production by Frank G. Woollard Systems Thinking: Managing Chaos and Complexity: A Platform for Designing Business Architecture by Jamshid Gharajedaghi Toyota Production System by Taiichi Ohno Understanding Variation: The Key to Managing Chaos (2nd Edition) by Donald J. Wheeler Service Quality by Benjamin Schneider and Susan S. White Sense and Respond: The Journey to Customer Purpose by Stephen Parry, Susan Barlow, and Mike Faulkner www.lloydparry.com www.lloydparry.com/newsletter
  25. 25. All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. Lloyd Parry Lean Service Transformation Consultancy Lloyd Parry use Lean Service principles to support their clients in the design, transformation and management of organisations. We also provide executive and change leadership education and route-map designs. We have developed Climetrics® a unique organisational diagnostic used to identify how your management activities, measurement systems, structures, and delivery capabilities can be combined to create a lean-service climate that leads to high-performance and long-term profitability. Lloyd Parry have delivered transformation 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. 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.”
  26. 26. All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. Stephen Parry Author of Sense and Respond Senior Partner at Lloyd Parry Stephen.parry@lloydparry.com www.lloydparry.com Twitter @leanvoices All sources, influences, acknowledgements and reading lists can be found on our blog at www.leanvoices.com Myth busting Lean for Staff, Management and Executives.
  27. 27. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of Service Climate Management Ltd. The information contained herein may be changed without prior notice. Service Climate Management ® is a registered trade mark of Service Climate Management Ltd. Customer Value Enterprise ®is a registered trade mark of Service Climate Management Ltd. Climetrics ® is a registered trade mark of Service Climate Management Ltd. The Engaging, Learning, Leadings Improvement device is a TM of Service Climate Management. CORE Demand Profile TM is a trademark of Service Climate Management Ltd. © 2014 Service Climate Management Ltd. All rights reserved All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational 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 any form or for any purpose without the express prior written permission of Service 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. This document contains only intended strategies, developments, models, methods 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 be 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 the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied 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.
  28. 28. All Trade-Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. TM

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