Lesley shows how systems thinking offers an approach on how to design and manage work to improve your organisation.

1. A counterintuitive approach to
organisational change…….
….to achieve transformational change
we must change management thinking
Lesley Kragt – Vanguard Consulting: 12th May 2011

2. What is the Vanguard Method
and Systems Thinking?
•Not a bag of tools – you won’t learn it in a room or by
reading a book!
•Based on work of Taiichi Ohno and TPS
•Based on psychological research and empirical
evidence
Offers a counterintuitive logic – challenges our
core beliefs and assumptions

3. Traditional Thinking Systems Thinking
Top Down Outside in
Functional specialisation Demand, value work, flow
Separated from work Integrated with work
Budget, activity, targets, Related to purpose,
output, standards variation, and capability
Extrinsic Intrinsic
Manage budgets &
Act on the system
people
Contractual What matters

4. The SINS of management!!
•All activity is value
•Performance is down to the people
•Targets give us control
•Standardise work flows etc. (use tools)
•Focus on managing cost and economies of scale
•Focusing on outputs
•Splitting work – specialisms, front and back office
This is all WRONG!!!!
Need to change the role of the manager

5. JOHN THE WASHING MACHINE ENGINEER
WHAT DOES HE NEED IN HIS SYSTEM?
Purpose: to fix machines

6. Yet, as managers what do we focus on?
95% of performance is down to the system
and NOT the individual (E. Deming)
How much time do Managers spend on the
people vs. the system?

7. The role of the Manager is to act on the
system….
Managers need to work in the work, on the
work with the worker
Need to unlearn and relearn!!
•Fundamental challenge to our current beliefs
•Normative learning
•Need to get knowledge
•Vanguard method for change – check, plan, do

8. The Vanguard Model for Change

9. Critical: get
knowledge!!!!
Understand current performance
the “what and why”
Roll In: Implement the Redesign: Identify levers for change
changes
Experiment to get to perfect

10. If we don’t carry out check!

11. Impact of applying the Vanguard method
•Improve service from a customers perspective
•Reduce costs
•Improve moral
An example of applying the Vanguard Method
Case Study

12. Case Study - Pre intervention
•Demand = 39% value and 61% failure
•High level steps = 39 – 135 (simple to complex)
•Value work = 18% (simple case)
•Waste = 82% (simple case)
•Handoffs = 30
•E2E times
•Complaints
•Staff =
•Customers =

13. Case Study - Post intervention
•Demand = > 75% value and < 25% failure
•High level steps = 3
•Value work ↑ ↑ Waste ↓↓
•Increased capacity
•E2E times
•Complaints ↓↓
•Staff = System Condition: Targets
•Customers = = Cheating!!

14. Case Study - Post intervention: redesign
•Operating Principles
Locus of control, decision making, case management,
DAD, only do what matters to customers, pull not push,
eliminate waste, only do the value work, best resource at
front
•Measures relating to purpose
•No targets (no bonuses, shift in performance
management)
•Focus on flow and outcome…NOT output

15. • X
Key concept = Thinking Governs Performance
Management Thinking
Change
Analysis
System
Performance

16. Where to start….Must have’s….
•Leaders commitment and understanding
•Leaders – into work – get knowledge, understand and apply
method
•Normative experience – to demonstrate better ways: challenge
current beliefs and assumptions
•Understand demand – who are your customers? What matters
to your customers (understanding demand will tell you
everything you need to do to redesign your service)
•Stop managing with arbitrary measures/targets
•Move from a culture of compliance to responsibility
Once you get this……there’s no going back!

17. Q&A
Thank You!
Lesley Kragt
lesley.kragt@vanguardconsult.co.uk