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Brewing Agile Adaptive
The document discusses the transformation from an agile workplace to an adaptive business, emphasizing the importance of understanding customers and fostering collaboration. It highlights research on service climates influencing performance, the adaptive practices necessary for business success, and several case studies illustrating the effectiveness of the adaptive approach. Various models detailing organizational dynamics and employee engagement in decision-making processes are also presented.
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Brewing Agile Adaptive
- 1. All Trade-Marks and©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. All Trade-Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. The Journey from an Agile Workplace to an Adaptive Business Stephen Parry Author of Sense and Respond Owner and Senior Partner at Lloyd Parry Twitter @Leanvoices www.lloydparry.com Stephen.Parry@LloydParry.com
- 2. Stephen Parry Founder andSenior 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 Adaptive 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 Adaptive Business a number of companies have won national industry awards for Best Service Strategy, Best People Development Program and awards for Innovation and Creativity.
- 3. All Trade-Marks and©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. All Trade-Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. Dr Gary Fisher Organizational Psychology Research into Service and Work Climates Now Research Development Officer University of Warwick • The research explored how climate perceptions and affective reactions at the organizational, team and individual level influenced service performance via the use of Social Exchange Theory and the concomitant Rule of Reciprocity. • The data set was gathered via a large scale (127 organizations and over 3000 employees) quantitative survey and was analysed via Confirmatory Factor Analysis and Structural Equation Modelling. • The proposed Psychological Process to Performance Model was tested via a series of competing nested models.
- 4. All Trade-Marks and©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. All Trade-Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. From Command and Control to Listen and Adapt. (Adaptive Business) The Journey from an Agile Workplace to an ‘Adaptive’ Learning Business - Operational Issues to address Understanding Customers Collaboration Transparency Reducing Work Overburden Decision Taking At The Right Level Trusting and Challenging Environment Learning and People Development Innovation in products and services Innovation in work practices Innovation in the Work-Climate
- 5. All Trade-Marks and©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. All Trade-Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. 85% Feel improved working relations with other teams 83% Understand other team’s processes and their challenges better 95% Have more transparency about other teams and hence increased willingness to support each other 90% Are able to openly discuss issues faced with other teams without the fear of conflict 78% Feel empowered to make the necessary and relevant changes to improve 85% Feel ‘Adaptive’ is helping them be more effective end-to-end across different countries
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- 7. Mass Customisation. Thisis a variation of the one-size- fits-all. The employee helps the customer select from a fixed menu of options. The customer experience and employee engagement however, are relatively low. Mass Specialisation. Customers must know which service they want, where to obtain it and integrate each one from different sources. Since employees possess deep specialist knowledge, they will engage customers at a much higher level, and the customer experience is personal and solutions standard. Mass Adaptation. The Customer Value Enterprise® The service will provide personalised advice to suit the individual. Employee skills are high and they will integrate and combine all solutions on the customers’ behalf in unique combinations, resulting in high customer and employee engagement. The customer experience is personal and unique. Mass Production. A one size fits all service has low variety offerings , employee skills are basic and customer engagement is transactional. Adaptive Climate Industrial Climate Climetrics® © Copyright 2016 Lloyd Parry
- 8. CHARACTER OFFERINGS CUSTOMER EXPERIENCE EMPLOYEE EXPERTISE IMPROVEMENT RESPONSIBILITY MANAGEMENT FOCUS COMPETITIVE BASIS LEADERSHIP FOCUS The Pizza Parlour Fixedmenu with simple options Discuss simple needs and available options. Low customer involvement during solution design Understand basic option configurations Central Change Teams Managers Cost, efficiency and Coordination Commodity Driven Emphasis on providing value-add and choice Direct and Control The Bus Low Variety Transactional and Processed No customer involvement in solution design Basic Improvement Boards Improvement Specialists Suggestion Schemes Employee utilisation, cost reduction, work intensification. Commoditised High Volume Low Margins Economies of Scale Command and Control Mass Production Mass Customisation Industrial Climate Climetrics® © Copyright 2016 Lloyd Parry
- 9. CHARACTER OFFERINGS CUSTOMER EXPERIENCE EMPLOYEE EXPERTISE IMPROVEMENT RESPONSIBILITY MANAGEMENT FOCUS COMPETITIVE BASIS LEADERSHIP FOCUS Customer Value Enterprise® Personalised, individual, Bespoke. Unique. Flexible Offerings Customer experience is personal and unique Co-Creation of solution design Expert Broad knowledge to provide integrated solutions Front-line experimentation and Learning Creativity, expertise, new products and services. Customer outcomes. Problem Solving Trusted advisor and expert Integration Business Outcomes Listen and adapt The Department Store More choice from a variety of standard offerings High level of customer interaction to identify needs and situation Specific and deep specialist knowledge and skills Front-line staff Managers Developing staff knowledge Capture and reuse solutions Effectiveness In-depth specialities connected to expert networks Economies of Scope Consultative Mass Specialisation Mass Adaptation Adaptive Climate Climetrics® © Copyright 2016 Lloyd Parry
- 10. CHARACTER OFFERINGS CUSTOMER EXPERIENCE EMPLOYEE EXPERTISE IMPROVEMENT RESPONSIBILITY MANAGEMENT FOCUS COMPETITIVE BASIS LEADERSHIP FOCUS Customer Value Enterprise® Personalised, individual, Bespoke. Unique. Flexible Offerings Customer experience is personal and unique Co-Creation of solution design Expert Broad knowledge to provide integrated solutions Front-line experimentation and Learning Creativity, expertise, new products and services. Customer outcomes. Problem Solving Trusted advisor and expert Integration Business Outcomes Listen and adapt The Department Store More choice from a variety of standard offerings High level of customer interaction to identify needs and situation Specific and deep specialist knowledge and skills Front-line staff Managers Developing staff knowledge Capture and reuse solutions Effectiveness In-depth specialities connected to expert networks Economies of Scope Consultative The Pizza Parlour Fixed menu with simple options Discuss simple needs and available options. Low customer involvement during solution design Understand basic option configurations Central Change Teams Managers Cost, efficiency and Coordination Commodity Driven Emphasis on providing value-add and choice Direct and Control The Bus Low Variety Transactional and Processed No customer involvement in solution design Basic Improvement Boards Improvement Specialists Suggestion Schemes Employee utilisation, cost reduction, work intensification. Commoditised High Volume Low Margins Economies of Scale Command and Control Mass Production Mass Customisation Mass Specialisation Mass Adaptation Adaptive Climate Industrial ClimateClimetrics® © Copyright 2016 Lloyd Parry
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- 12. All Trade-Marks and©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. All Trade-Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. Work-Climate Science: Survey to identify Adaptive-Practices. Improving Practice M Employee influence on products and services N Employee influence on managing practices O Employee influence on other functions P Employee influence on end-to-end processes Leadership Practice I Performance management J Adaptive leadership K Responding to customer issues L Implementing ideas to better serve customers Engaging Practice A Freedom and decision making B Customer facing activity C Customer intelligence gathering D Sharing intelligence with the team Learning Practice E Organisational understanding F Sharing intelligence across the function G Sharing intelligence with other functions H Sharing intelligence with top/senior management Adaptive Engaging and Understanding Learning and Sharing Leading and Choosing Improving and Changing
- 13. Adaptive Practice A Freedom anddecision making B Customer facing activity C Customer intelligence gathering D Sharing customer intelligence with the team Adaptive Engaging and Understanding Learning and Sharing Lea an Cho Improving and Changing Does the job design allow all staff to engage with customers and users? Is everything forbidden unless permitted, or Is everything permitted unless forbidden? Climetrics® © Copyright 2016 Lloyd Parry
- 14. Adaptive Engaging and Understanding Learning and Sharing Leading and Choosing ving ing Adaptive Practice E Organisational understanding F Sharing intelligence acrossthe function G Sharing intelligence with other functions H Sharing intelligence with top/senior management Do staff routinely share customer and business information with senior management? And do they routinely collaborate and problem solve with senior and mid- managers? Climetrics® © Copyright 2016 Lloyd Parry
- 15. Adaptive ging d anding Learning and Sharing Leading and Choosing Improving and Changing Adaptive Practice I Performance management J Adaptive leadership K Responding tocustomer issues L Implementing ideas to better serve customers Do Leaders foster a no-blame climate to surface problems for teams to work on? Which do leaders pay 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? Do we exchange opinions or exchange facts supported with evidence? Climetrics® © Copyright 2016 Lloyd Parry
- 16. What influence doesstaff have to improve the measurement system? What influence do employees have on improving products and services? Are staff free to choose the methods and practices they will use to improve the business? Are staff encouraged to run fail safe experiments? Adaptive Engaging and Understanding Lea a Sh Leading and Choosing Improving and Changing Adaptive Practice M Employee influence on products and services N Employee influence on managing practices O Employee influence on other functions P Employee influence on end-to-end processes Climetrics® © Copyright 2016 Lloyd Parry
- 17. All Trade-Marks and©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. All Trade-Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. Climetrics® Climatograph what sort of business are you and how adaptive are you? DCBA HGFE LKJI PONM Adaptive Criteria A Freedom and decision making B Customer -facing activity C Customer -intelligence gathering D Sharing intelligence with the team E Organisational understanding F Sharing intelligence across the function G Sharing intelligence with other functions H Sharing intelligence with top/senior management I Performance management J Adaptive leadership K Responding to customer issues L Implementing ideas to better serve customers M Employee influence on products and services N Employee influence on managing practices O Employee influence on other functions P Employee influence on end-to- end processes Excellent Standard Basic E S B E S B E S B Average Performance Engaging Learning Leading Improving Engaging Learning Leading Improving Mass Production Mass Specialisation Mass Adaptation Mass Customisation DCBA HGFE LKJI PONM Listen and Adapt Command and Control Direct and Control Consultative
- 18. All Trade-Marks and©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. All Trade-Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. Engaging Learning Leading Improving Case Study: Global ICT and applications company: Before Transformation Excellent Standard Basic E S B E S B E S B Transformation objective Average Performance Engaging Learning Leading Improving Mass Production Mass Specialisation Mass Adaptation Mass Customisation Adaptive Criteria A Freedom and decision making B Customer -facing activity C Customer -intelligence gathering D Sharing intelligence with the team E Organisational understanding F Sharing intelligence across the function G Sharing intelligence with other functions H Sharing intelligence with top/senior management I Performance management J Adaptive leadership K Responding to customer issues L Implementing ideas to better serve customers M Employee influence on products and services N Employee influence on managing practices O Employee influence on other functions P Employee influence on end-to- end processes DCBA HGFE LKJI PONM DCBA HGFE LKJI PONM Listen and Adapt Command and Control Direct and Control Consultative
- 19. All Trade-Marks and©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. All Trade-Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. Engaging Learning Leading Improving Case Study: Global ICT and applications company: After Transformation Engaging Learning Leading Improving Transformation objective Previous Average Performance Mass Production Mass Specialisation Mass Adaptation Mass Customisation Excellent Standard Basic E S B E S B E S B Adaptive Criteria A Freedom and decision making B Customer -facing activity C Customer -intelligence gathering D Sharing intelligence with the team E Organisational understanding F Sharing intelligence across the function G Sharing intelligence with other functions H Sharing intelligence with top/senior management I Performance management J Adaptive leadership K Responding to customer issues L Implementing ideas to better serve customers M Employee influence on products and services N Employee influence on managing practices O Employee influence on other functions P Employee influence on end-to- end processes DCBA HGFE LKJI PONM DCBA HGFE LKJI PONM Listen and Adapt Command and Control Direct and Control Consultative
- 20. All Trade-Marks and©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. All Trade-Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. Engaging Learning Leading Improving Case Study: Two application development teams at the same company Excellent Standard Basic E S B E S B E S B Engaging Learning Leading Improving Mass Production Mass Specialisation Mass Adaptation Mass Customisation Adaptive Criteria A Freedom and decision making B Customer -facing activity C Customer -intelligence gathering D Sharing intelligence with the team E Organisational understanding F Sharing intelligence across the function G Sharing intelligence with other functions H Sharing intelligence with top/senior management I Performance management J Adaptive leadership K Responding to customer issues L Implementing ideas to better serve customers M Employee influence on products and services N Employee influence on managing practices O Employee influence on other functions P Employee influence on end-to- end processes DCBA HGFE LKJI PONM Team One Average Performance Team Two Average Performance DCBA HGFE LKJI PONM Listen and Adapt Command and Control Direct and Control Consultative
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- 22. References , influencesand acknowledgements. Book Sense and Respond: The Journey to Customer Purpose. Parry, Barlow, Faulkner (Palgrave Macmillan 2005) The Human Side of Enterprise Douglas McGregor Annotated and Updated by Joel Cutcher-Gershenfeld Beyond McGregor’s Theory Y: Human Capital and Knowledge-Based Work in the 21st Century Organization Kochan, Orlikowski, Cutcher-Gershenfeld http://mitsloan.mit.edu/50th/pdf/beyondtheorypaper.pdf Service Climate and Customer Intelligence Workers. Parry and Fisher (2006) Reciprocity Definition http://en.m.wikipedia.org/wiki/Reciprocity_(social_psychology) Reciprocity An Economics of Social Relations. Kolm (Cambridge) Reciprocity in the UK Call Centre Workplace. Gary Fisher PhD in Management Research (2008) Service Quality Research Perspectives. Schneider, White (Sage) Amadeus Lean Enterprise Case Study: Cleared for Take off http://www.amadeus.com/documents/lean-it/Amadeus_Lean_IT.pdf For extensive list of Stephen Parry personal acknowledgements, influences and references go to www.leanvoices.com and for Sense and Respond and blog go to www.lloydparry.com
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- 24. No part ofthis publication may be reproduced or transmitted in any form or for any purpose without the express permission of LloydParry International. The information contained herein may be changed without prior notice. Service Climate Management ® is a registered trade mark of Lloyd Parry International 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. © 2016 Service Climate Management Ltd. An Lloyd Parry International Company. 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.