PDF Systems Thinking: A Counterintuitive approach to organisational change, Lesley Kragt, Vanguard Consulting
A counterintuitive approach to organisational change……. ….to achieve transformational change we must change management thinkingLesley Kragt – Vanguard Consulting: 12th May 2011
What is the Vanguard Method and Systems Thinking?•Not a bag of tools – you won’t learn it in a room or byreading a book!•Based on work of Taiichi Ohno and TPS•Based on psychological research and empiricalevidence Offers a counterintuitive logic – challenges our core beliefs and assumptions
Traditional Thinking Systems Thinking Top Down Outside inFunctional specialisation Demand, value work, flow Separated from work Integrated with workBudget, activity, targets, Related to purpose, output, standards variation, and capability Extrinsic Intrinsic Manage budgets & Act on the system people Contractual What matters
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
JOHN THE WASHING MACHINE ENGINEER WHAT DOES HE NEED IN HIS SYSTEM?Purpose: to fix machines
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?
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
Impact of applying the Vanguard method•Improve service from a customers perspective•Reduce costs•Improve moralAn example of applying the Vanguard MethodCase Study
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 =
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!!
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 atfront•Measures relating to purpose•No targets (no bonuses, shift in performancemanagement)•Focus on flow and outcome…NOT output
• X Key concept = Thinking Governs Performance Management Thinking Change Analysis System Performance
Where to start….Must have’s….•Leaders commitment and understanding•Leaders – into work – get knowledge, understand and applymethod•Normative experience – to demonstrate better ways: challengecurrent beliefs and assumptions•Understand demand – who are your customers? What mattersto your customers (understanding demand will tell youeverything 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!