Trust Ale 2014 Krakow Parry Public

Creating the right culture for Agile and Lean is not
the real problem.
All Trade‐Marks and ©Copyright 2012 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
Linkedin
Twitter @leanvoices
All sources, influences, acknowledgements and reading lists
can be found our blog at www.leanvoices.com
For more on his #ale14 keynote, here's the talk he made
reference to http://vimeo.com/98731491

Our journey together.
• What is a ‘Work‐Climate’ and why is it important for the business?
• Creating Choice, Freedom and the Power to do.
• Trust only comes after you have done the hard work of becoming
trustworthy.
• Moving from ‘Direct‐and‐Control’ to ‘Listen‐and‐Adapt’
• Engaging, Learning, Leading and Improving.
• Pretence, Reality and Cost.
• Leadership at all Levels.
• Asking the right questions.
• Are methods more important than the underlying theory?
• References and Sources.

Purpose is your passion,
Vision is the world you wish to create,
Strategy is how you get there,
Tactics ensure you survive the journey

Gathering customer
intelligence data
Respectful
Collaboration
How well we
respond to customers
Performance
Management
And Measurement
Innovating ideas
for customers
Sharing Intelligence
with the team
Freedom and
decision making
Employee influence
on products and services
Leadership
Courage
V{tÄÄxÇz|Çz
Across the function
with top/senior
management
Employee influence
on other functions
Employee influence
on managing practices
Employee influence
on end‐to‐end processes
Organisational
Understanding
Trustworthiness VâáàÉÅxÜ
câÜÑÉáx

All Leaders have to be authentic.
• Reciprocity is considered as a strong
determining factor of human behaviour.
• Even if the consequences are the same,
underlying intentions can cause an action to
be reciprocated differently.
• Even if staff are treated well a good work
climate may not necessarily result.
• Employees need a work climate that fosters
participation, autonomy, work improvement,
end‐to‐end understanding and
interdepartmental support.
Service Climate and Customer Intelligence Workers.
Parry and Fisher (2006)
Reciprocity

Wherever you find a loss of choice,
freedom and the power to do what
matters, there too you will find the need
for Leadership

Is your organisation a hindrance to employees, managers and
customers? So how do we create an
Performance is a matter of people having
which is a matter of
Adaptive, Learning,
Organisation?
Climate
Role Design
Processes, Procedures
and Methods
with the Performance
Choice
Freedom
Power
Measures
Leadership
to do what matters to serve the customers purpose

You get the behaviour you design for,
or fail to design for.
It's your choice

Transformation objective and expectation
Adaptive, Learning and Trusting Work Climate Engaging and
Base-Line Current Performance
Performance
New performance falls short of expectations
Tools and Methods for improvement
understanding
Learning and
Sharing
Leading and
Decision Making
Improving and
Changing
Work
Design Measurement Behaviour
Perspective

Does the job design allow all staff to
engage with customers and users?
Is everything forbidden unless
permitted,
or
Is everything permitted unless
forbidden?
ENGAGING
™
Work
Climate
Determines
Performance

Do staff routinely share customer and
business information with senior
management?
Do staff routinely collaborate and
problem solve with senior and mid-managers?
What is the management focus? -
employee utilisation, cost reduction
and work intensification
or,
Creativity, customer outcomes,
problem solving, learning and sharing
knowledge, collaboration?
LEARNING
™
Work
Climate
Determines
Performance

Do Leaders foster a no-blame
climate to surface problems for
teams to work on?
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?
LEADING
™
Work
Climate
Determines
Performance

Good leaders at all levels reserve the right to be
wrong and change their minds in the light of new
evidence. That's strength not a weakness.

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?
Are staff free to choose the methods
they will use to improve the
business?
Do staff understand the underlying
theories of the methods they use?
Are staff encouraged to run fail safe
experiments?
IMPROVING
™
Work
Climate
Determines
Performance

Making the pretence, reality and cost visible: ‘Your baby is ugly’
With acknowledgement to Landmark Education and the Landmark Forum

Pretence, reality and cost: but what’s the benefit?
Pretence Reality Cost
What we say its like What it is really like What it costs us to pretend
Caring for people.
Giving people
opportunities.
We are coping, everything
is OK.
We are doing a good job.
We work as a team.
We listen to people.
Working to the numbers.
Ticking the boxes.
Manipulating the numbers.
Back‐stabbing.
Lying.
Covering up.
No trust.
Blaming.
Cheating.
Play the game.
All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2014 Lloyd Parry. All rights reserved
Low self‐esteem
Futility.
No fulfilment.
Withdrawing.
No fun.
Loss of honesty
Loss of integrity.
Loss of repeat business.
Customer dissatisfaction.
Little or no innovation.
Cynicism.
Missed opportunities.
Fear of being found out.
With acknowledgement to Landmark Education and the Landmark Forum

Questions and statements to Blame and Command
You raised the problem so you should fix it.
Look! If I were you I would do this.
So what are you going to commit to?
In my opinion…
Why did you do that?
Don't involve other departments.
Leave that to me I will go and find out for you.
I would advise you to….
Have you escalated this?
Why can’t you tell me?
My experience tells me….
What does your experience tell you?
What is your gut feeling?
Who’s fault is it?
You had better get that sorted.
A3 THINKING DOES NOT
BLAME OR COMMAND
PEOPLE
All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2013 Training Material, All rights reserved Service Climate Management Ltd

Questions for grasping the situation and exploring the current conditions
Why are we talking about this?
What is the purpose?
Why is it a problem?
When did this problem occur?
How long has this been going on?
What did you observe?
What did you make it mean?
What else could it mean?
What assumptions are you making?
What evidence do you have?
What evidence do you need?
How can you find out?
What outcomes are you seeking?
Where would you need to go?
Whom would you need to talk to?
How is it affecting you?
How is it affecting the customer?
Who else is this affecting?
How does this make you feel?

What does Agile and Lean mean for the organisation, leaders, managers and
• Organisation.
• Leaders
staff?
– Consider the measurement and governance
systems
– More rigorous Continuous Improvement
structures
– New operational performance measures
– New operating model may be required
– Work Design implications
– 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

What does Agile and Lean 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.

Methods may come and go
but the principles for
engaging the willing
contribution, ingenuity and
commitment of others is
timeless.
Performance is not in the
methods it’s in the People

Your organisation is no longer a hindrance to employees, managers
and customers.
Performance is a matter of people having
which is a matter of
Creating an Adaptive, Learning,
Organisation.
Climate
Visualisation and
Measurement
Willing contribution
with the Purpose and
to do what matters to serve the customers purpose
Choice
Freedom
Power
possibility
Leadership
without position

www.lloydparry.com www.lloydparry.com/newsletter
Useful References
Sense and Respond: The Journey to Customer Purpose
by Stephen Parry, Susan Barlow, and Mike Faulkner
Service Climate and Customer Intelligence Workers by Parry and Fisher.
Managing to Learn by John Shook (A3 thinking Book)
Adaptive Enterprise by Stephan Haeckel
Fourth Generation Management by Brian Joiner.
Landmark Education and the Landmark Forum www.landmarkworldwide.com
The Human Side of Enterprise by Douglas McGregor
Lean Solutions by James P. Womack and Daniel T. Jones
Maslow on Management by Abraham H. Maslow
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
Service Quality by Benjamin Schneider and Susan S. White
For more on the topic of @LeanVoices' #ale14 keynote, here's the talk he referred to http://vimeo.com/98731491
All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2013

About Stephen Parry
Stephen Parry is an international leader and strategist on the design and creation of
adaptive enterprises. He has a world‐class reputation for passionate leadership and
organisational transformation by changing the way employees, managers and leaders
think about their business and their customers.
He is the author of Sense and Respond: The Journey to Customer Purpose, a highly
regarded book written as a follow‐up to his award‐winning organisational
transformations. His change work was recognised when he received Best Customer
Service Strategy at the National Business Awards. The judges declared his strategy had
created organisational transformations which demonstrated an entire cultural change
around the needs of customers and could, as a result, demonstrate significant business
growth, innovation and success.
Stephen believes that organisations must be designed around the needs of customers
through the application of employee creativity, innovation and willing contribution. This
was recognised when his approach received awards from the European Service Industry
for the Best People Development Programme and a personal award for Innovation and
Creativity. Stephen has since become a judge at the National Business Awards and the
National Customer Experience Awards. He is also a Fellow at the Lean Systems Society.
All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2013

TM

© 2014 Service Climate Management Ltd. All rights reserved
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.
All other product and service names mentioned are the trademarks of their
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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
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Climate Management Ltd.
This document is a preliminary version and not subject to your license
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and products and is not intended to be binding upon Service Climate
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Trust Ale 2014 Krakow Parry Public