Lean and Agile Adaptive Workplace Parry
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The document discusses principles for creating adaptive and engaging workplaces, emphasizing the importance of people and organizational design. Stephen Parry, founder of Lloyd Parry, highlights how their lean-service transformation consultancy has helped organizations achieve customer-centricity and improve performance through integration of various management systems. The analysis framework, climetrics®, assesses work climate to enhance adaptability and long-term profitability, with focus on leadership, employee engagement, and customer intelligence.
Lean and Agile Adaptive Workplace Parry
- 3. All Trade‐Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2016 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 Adaptive Organisations using Lean, 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.”
- 4. All Trade‐Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2016 References , influences and acknowledgements. Book Sense and Respond: The Journey to Customer Purpose. Parry, Barlow, Faulkner (Palgrave Macmillan) 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) Cleared for take‐off Strategies in Lean IT – Amadeus http://www.amadeus.com/documents/lean‐it/Amadeus_Lean_IT.pdf Reciprocity Definition http://en.m.wikipedia.org/wiki/Reciprocity_(social_psychology) Reciprocity An Economics of Social Relations. Kolm (Cambridge) Service Quality Research Perspectives. Schneider, White (Sage) For extensive list of acknowledgements, influences and references go to www.leanvoices.com and for Sense and Respond go to www.lloydparry.com
- 5. All Trade‐Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2016 Agenda • Changing perspectives. • What level of ‘Fix’ are you fixated on? • From Vertical Management to Horizontal Management. • Measuring the Work‐Climate to determine how adaptive your organisation really is. • What makes organisations adaptable? • References and Sources.
- 7. All Trade‐Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2016 Level One Level Two Level Three Change Management Standards Process Management Measurement Governance Finance Budgets Knowledge Management Resource Management Escalation Problem Management Commercial Trading Building Services Logistics Stores Safety Services IT Support Systems Fleet Management H.R. Change Management Standards Process Management Measurement Governance Finance Budgets Knowledge Management Resource Management Escalation Problem Management Commercial Trading Building Services Logistics Stores Safety Services IT Support Systems Fleet Management H.R. Front-line Infrastructure CORE Value Climate Behaviour Design Principles The design of the work, What you measure and reward The Process or methods The Output Adapted by Stephen Parry from Fourth Generation Management Brian Joiner Level Four Our theory of how people and organisations work best. Agile and Lean Adaptation
- 9. All Trade‐Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2016 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 Traditional approach: Feasible parts creating an infeasible whole.
- 10. All Trade‐Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2016 Improved end‐to‐end service delivery? F1 F2 F4F3 Fn S1 S2 S4S3 Sn Functional units Traditional approach: Feasible parts creating an infeasible whole. 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
- 14. Getty Library
- 15. The Work Climate is the combined perception of customers, employees, managers and leaders. It predicts the performance and long term profitability of an organisation. We use a Climate diagnostic called Climetrics® which also measures how well the organisation as a whole, identifies, understands and delivers against customer needs and how it adapts and locks on to changing customer needs. The diagnostic informs indicates what actions we need to take to create a superior work climate. All Trade‐Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved.
- 16. All Trade‐Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2016 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 analyzed via Confirmatory Factor Analysis and Structural Equation Modelling. • The proposed Psychological Process to Performance Model was tested via a series of competing nested models.
- 17. All Trade‐Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2016 As a Leader you have to be authentic. Reciprocity • 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)
- 19. Respectful Collaboration Performance Management And Measurement Innovating ideas for customers Sharing Intelligence with the team Gathering customer intelligence data Freedom and decision making Employee influence on products and services Leadership Courage V{tÄÄxÇz|Çz How well we respond to customers Sharing Intelligence Across the function Sharing Intelligence 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
- 20. All Trade‐Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2016 On‐Line Data Collection Data Cleansing Validity testing (Factor Analysis) Correlation Matrix Analysis Regression Analysis Confirmatory Factor Analysis Structural Equation Modelling Climetrics® Landscape categorisation Statistical data ‐ Interpretation Triangulation with on‐site workshops Executive Summary Climetrics® Analysis MethodologyClimetrics ® Statistical Analysis Process
- 23. All Trade‐Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2016 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
- 24. All Trade‐Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2016 Do staff routinely share customer and business information with senior management? And do they 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
- 25. All Trade‐Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2016 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
- 26. All Trade‐Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2016 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
- 27. All Trade‐Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2016 Climate Science: The questions being asked. Improving Employee influence on products and services Employee influence on managing practices Employee influence on other functions Employee influence on end-to-end processes Leading Performance management Adaptive leadership Responding to customer issues Implementing ideas to better serve customers Engaging Freedom and decision making Customer facing activity Customer intelligence gathering Sharing intelligence with the team Learning Organisational understanding Sharing intelligence across the function Sharing intelligence with other functions Sharing intelligence with top/senior management Weak Standard Excellent
- 28. Mass Customisation. This is 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. All Trade‐Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. ™
- 29. Climetrics® Landscapes 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 All Trade‐Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved.
- 30. All Trade‐Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2016 Climate Landscapes CHARACTER OFFERINGS CUSTOMER EXPERIENCE EMPLOYEE EXPERTISE IMPROVEMENT RESPONSIBILITY MANAGEMENT FOCUS COMPETITIVE BASIS LEADERSHIP FOCUS Listen and Adapt CVE Mass Adaptation Personalised, individual, Bespoke. Unique. Flexible offerings Customer experience is personal and unique Co-Creation of solution design Expert Broad knowledge to provide integrated solutions Disciplined experimentation Front-line experiments and learning Creativity, expertise, new products and services. Customer outcomes. Problem solving Trusted advisor and expert Integration Business outcomes Listen and adapt Mass Production Command and Control Low variety Transactional and processed No customer involvement in solution design Basic Improvement boards Improvement specialists Suggestion schemes Employee utilisation, cost reduction, work intensification. Disciplined compliance Commoditised High Volume Low Margins Economies of scale Command and control
- 31. All Trade‐Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. Weak Standard Excellent Autonomy Customer facing activity Intelligence gathering Sharing team intelligence Excellent Standard Weak 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 Two application development teams at the same company
- 32. All Trade‐Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved. Weak Standard Excellent Performance Management Leadership approach Responsiveness to customer issues Implementing ideas to better serve customers Excellent Standard Weak 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 Two application development teams at the same company Climetrics®Towards Listen and Adapt Towards Direct and Control
- 34. Global IT and Applications Company: After Transformation Climetrics®Towards Listen and Adapt Towards Direct and Control Weak Mass Production Mass Customisation Customer Value Enterprise® Mass Specialisation Weak EngagingLearning Organisational Understanding Sharing intelligence within the function Sharing intelligence with other functions Sharing intelligence with senior managers Autonomy Customer facing activity Intelligence gathering Sharing team intelligence LeadingImproving Performance Management Leadership approach Responsiveness to customer issues Implementing ideas to better serve customers Employee influence on improving service Employee influence on work practices Employee influence on other functions Employee influence on end‐to‐end processes
- 38. 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 Climetrics® Management and staff Survey: before and after highlights All Trade‐Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved.