The document discusses Lean Kanban and service climate diagnostics. It provides information on Stephen Parry as an author on Lean topics. It then discusses various "doors" an organization can take to embrace Lean and why some approaches are better than others. It also summarizes a service climate diagnostic tool called Climetrics® and how it can be used to assess an organization. Several examples are given of how the diagnostic was used to measure improvements after transformations at different companies.

1. Lean Kanban Stephen Parry
What’s the purpose? Author of Sense and Respond
@Leanvoices
Senior Partner at Lloyd Parry
Twitter: @LeanVoices and Linkedin
Blog : www.LeanVoices.com
Stephen.parry@lloydparry.com
www.lloydparry.com
www.slideshare.net/SGParry/presentations
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2. Recognition Achievement
Integrity
Motivated
Passion
Harmony
Engaging Encouraged
Rational Collaborative Together Respectful
Courage
Purpose Learning
Exploring Supportive
Optimistic Creating
Trust
Sharing
Ease Agreement
Discovering
Challenging Excited
Growing
Leading Kind Improving
Thoughtful Intelligent
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Knowledge
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3. There are many doors through which an organisation can come to embrace Lean;
Some are much better than others.
Source: Based on the Theory to Performance Model, Sense and Respond: The journey to customer purpose.
Sense and Respond Lean
Enterprise Theory Interception points
Management principles Education
The way we think Learning to see
Operating design principles Service Design
Climate
Operating structures Measurement , incentives.
Continuous improvement methods Disciplined experimentation
Tools
Processes Easiest and on
Point-fix / improvement tools
occasions the worst
Behaviours
places to start
Performance
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4. Climetrics® A diagnostic to determine if
an organisation is Adaptive, Innovative and Engaging.
Imagine the organisation is like a city.
Analysis of the climate above will reveal
information about activity on the ground.
This provides both a diagnosis of the current
issues and outlines the long-term
consequences.
The Service 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 Service Climate diagnostic called Climetrics® which also measures how well the organisation as a
whole, identifies, understands and delivers against customer needs.
The diagnostic leads to a plan which when executed will create a superior Climate
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5. Service
Climate
And
Performance
CLIMETRICS®
™
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6. Does the job design allow all staff to
engage with customers and users?
Service
To what extent can staff modify solutions Climate
without management permission? ENGAGING And
Performance
CLIMETRICS®
Is everything forbidden unless permitted,
or is ,
everything permitted unless forbidden?
™
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7. Do staff routinely share business
intelligence and improvement information
Service with senior management?
Climate
And LEARNING What is the management focus? -
Performance employee utilisation, cost reduction and
CLIMETRICS® work intensification,
or,
creativity, customer outcomes, problem
™ solving, learning and sharing knowledge?
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8. Do Leaders foster a no-blame climate to
surface problems for teams to work on?
Service
Climate Do leaders routinely spend time at the
And
Performance
LEADING workplace solving front-line issues with
the staff?
CLIMETRICS®
Do leaders pay more attention to
efficiency-driven functional targets,
™ or,
end-to-end effectiveness at creating
customer and user outcomes?
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9. Do employees influence end-to-end
business processes?
Service
Climate
What influence does staff have over
improving the measurement system? IMPROVING And
Performance
CLIMETRICS®
What influence do employees have on
improving products and services?
™
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10. What type of climate do customers, employees, managers and leaders live in?
The Behaviours, Measures, Job Design and Purpose are different.
Customer pulls products and services ON-DEMAND
Customers and employees are designed in
Sense and Respond Lean Enterprise
Relational Willing End-to-end Listen
and personal contribution effectiveness and adapt
Customer/User
Employee motivation Support operations Executive leadership
experience
Transactional Incentivised Functional Direct
and processed contribution efficiency and control
Make-and-Sell Organisation Mass Production
Company pushes products and services ON-COMMAND
Customers and employees are designed out
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11. Climate Landscapes
CUSTOMER EMPLOYEE IMPROVEMENT MANAGEMENT COMPETITIVE LEADERSHIP
CHARACTER OFFERINGS EXPERIENCE EXPERTISE RESPONSIBILITY FOCUS BASIS FOCUS
Sense and Personalised, Customer Expert Broad Front-line Creativity, Trusted Listen and
Respond individual, experience is knowledge to experiments expertise, new advisor and adapt
Bespoke. personal and provide and learning products and expert
Unique. unique integrated services.
solutions Integration
Flexible Co-Creation of Customer
offerings solution Disciplined outcomes.
design experimentation Business
Problem solving outcomes
Make and Sell Low variety Transactional Basic Improvement Employee Commoditised Command
and processed boards utilisation, cost and control
reduction, work High Volume
intensification.
No customer Improvement
involvement in specialists Low Margins
solution Disciplined
design compliance
Suggestion Economies of
schemes scale
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12. Mass Adaptation. Customer Value Enterprise®
Adaptive, Innovative and Engaging
organisations. The service will provide
personalised advice to suit the individual.
Employee skills are high
Mass Specialisation. Customers must know
which service they want, where to obtain it and
integrate each one from different sources.
Mass Customisation. This is a variation
of the one-size-fits-all. The employee
helps the customer select from a fixed
menu of options.
Mass Production. A one size
fits all service has low variety
offerings , employee skills are
basic ™
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13. Climetrics® Landscapes
CUSTOMER EMPLOYEE IMPROVEMENT MANAGEMENT COMPETITIVE LEADERSHIP
CHARACTER OFFERINGS EXPERIENCE EXPERTISE RESPONSIBILITY FOCUS BASIS FOCUS
Customer Value Personalised, Customer Expert Broad Front-line Creativity, Trusted Listen and
Enterprise ® individual, experience is knowledge to experimentation expertise, new advisor and adapt
Bespoke. personal and provide and Learning products and expert
Mass Unique. unique integrated services.
solutions
Adaptation Integration
Flexible Co-Creation of Customer
Offerings solution design outcomes. Business
Problem Solving Outcomes
The Department More choice High level of Specific and Front-line staff Developing staff In-depth Consultative
Store from a variety customer deep specialist knowledge specialities
of standard interaction to knowledge and Managers connected to
offerings identify needs skills expert
Mass and situation
Capture and reuse
networks
solutions
Specialisation
Effectiveness Economies of
Scope
The Pizza Fixed menu Discuss simple Understand Central Change Cost, efficiency Commodity Direct and
Parlour with simple needs and basic option Teams and Coordination Driven Control
options available configurations
Mass options. Managers Emphasis on
Customisation Low customer providing
involvement value-add and
during solution choice
design
The Bus Low Variety Transactional Basic Improvement Employee Commoditised Command and
and Processed Boards utilisation, cost Control
reduction, work High Volume
Mass No customer Improvement
intensification.
Production involvement in Specialists Low Margins
solution design
Suggestion Economies of
Schemes Scale
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14. Freedom and decision
A
making
Global Services Company. June 2010: Before Transformation
B Customer -facing activity
Engaging Learning Leading Improving C
Customer -intelligence
gathering
Sharing intelligence with the
D
Mass team
Adaptation Organisational
E
understanding
Sharing intelligence across
F
the function
Mass Sharing intelligence with
G
Specialisation other functions
Transformation objective
Sharing intelligence with
H
top/senior management
I Performance management
Mass
Customisation
J Adaptive leadership
Responding to customer
K
issues
Mass Implementing ideas to
L
Production better serve customers
Employee influence on
M
products and services
A B C D E F G H I J K L M N O P N
Employee influence on
managing practices
Employee influence on
Climate Strength Climetrics® Climatograph O
other functions
Employee influence on end-
P
to-end processes
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15. Freedom and decision
A
making
Global Services Company. November 2011: After Transformation
B Customer-facing activity
Engaging Learning Leading Improving C
Customer-intelligence
gathering
Sharing intelligence with the
D
Mass team
Adaptation Organisational
E
understanding
Sharing intelligence across
F
the function
Mass Sharing intelligence with
G
Specialisation other functions
Transformation objective
Sharing intelligence with
H
top/senior management
I Performance management
Mass
Customisation
J Adaptive leadership
Responding to customer
K
issues
Mass Implementing ideas to
L
Production better serve customers
Employee influence on
M
products and services
A B C D E F G H I J K L M N O P N
Employee influence on
managing practices
Employee influence on
Climate Strength Climetrics® Climatograph O
other functions
Employee influence on end-
P
to-end processes
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16. Freedom and decision
A
making
Global ICT and applications company 2001: Before Transformation
B Customer -facing activity
Engaging Learning Leading Improving C
Customer -intelligence
gathering
Sharing intelligence with the
D
Mass team
Transformation objective
Adaptation Organisational
E
understanding
Sharing intelligence across
F
the function
Mass Sharing intelligence with
G
Specialisation other functions
Sharing intelligence with
H
top/senior management
I Performance management
Mass
Customisation
J Adaptive leadership
Responding to customer
K
issues
Mass Implementing ideas to
L
Production better serve customers
Employee influence on
M
products and services
A B C D E F G H I J K L M N O P N
Employee influence on
managing practices
Employee influence on
Climate Strength Climetrics® Climatograph O
other functions
Employee influence on end-
P
to-end processes
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17. Freedom and decision
A
making
Global ICT and applications company 2003: After Transformation
B Customer-facing activity
Engaging Learning Leading Improving C
Customer-intelligence
gathering
Sharing intelligence with the
D
Mass team
Transformation objective
Adaptation Organisational
E
understanding
Sharing intelligence across
F
the function
Mass Sharing intelligence with
G
Specialisation other functions
Sharing intelligence with
H
top/senior management
I Performance management
Mass
Customisation
J Adaptive leadership
Responding to customer
K
issues
Mass Implementing ideas to
L
Production better serve customers
Employee influence on
M
products and services
A B C D E F G H I J K L M N O P N
Employee influence on
managing practices
Employee influence on
Climate Strength Climetrics® Climatograph O
other functions
Employee influence on end-
P
to-end processes
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18. From first to last, Respect for People.
Extracts from a broadcast by Stephen Parry
We believe people are capable of learning and taking on additional
responsibility, and if you create the right environment, people will
want to learn and will actively seek more responsibility.
In this context, ‘respect for people’ means Managers helping employees
understanding that all people have the ability freely choose how they solve
to learn and the right to be given problems displays total
opportunities to learn. respect.
There is a world of difference
between helping people to see
and telling them they are
blind.
Most of all we must trust that
people are capable of owning
and solving their own problems
with a little bit of help.
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19. ‘In reality, this is a climate change on a massive scale.
It is a shift to a climate that can see the value in
recognizing ‘disconnects’ with customers.
It is a shift to a climate where frontline workers have the
skills and motivation to conduct root-condition analysis.
It is a shift to a climate in which learning is seen as
central to business success, not just an add-on activity.’
Dr. Joel Cutcher-Gershenfeld
Senior Research Scientist, MIT Sloan School of Management, and Executive
Director, MIT Engineering Systems Learning Center
Climate replaced the original word Culture for clarity.
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20. How do we measure and manage customer
value?
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21. There are many doors through which an organisation can come to embrace Lean;
Some are much better than others.
Source: Based on the Theory to Performance Model, Sense and Respond: The journey to customer purpose.
Sense and Respond Lean
Enterprise Theory Interception points
Management principles Education
The way we think Learning to see
Operating design principles Service Design
Climate
Operating structures Measurement , incentives.
Continuous improvement methods Disciplined experimentation
Tools
Processes Easiest and on
Point-fix / improvement tools
occasions the worst
Behaviours
places to start
Performance
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22. What you measure tells everyone what you think
You’ll not find many
Mean time
End to End to process
by priority level Average
IT Availability
Time
measures in this zone.
% resolved within Customer
Target priority MTP Satisfaction ?
Depends
No. Calls Exceed
SLA Av time for 2nd
Calls/ Agent
‘If you measure your
level to respond
/Day % of Calls
Convt to Tickets No. calls without
Functional
Esc/agent
% Incorrectly
assigned % Incorrectly
Av Time
Call Answr
business using averages,
Categorised
don’t be surprised to find
% Incidents
Agent Re-assigned
yourself running an
% Calls Utilisation
Bypass 1st Line
Av Time to First
Average
resolve Time
% of calls that are Fix
average business.’
Service Requests
Handle Time
No Matters to Customers Yes
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Purpose
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23. IT and application support staff Measurement
before and after understanding users.
23
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24. What we feel pain about today.
24
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25. Wrong measures, wrong pain, wrong outcomes.
Service Measures and SLAs. End-user Measures. End User pain points
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26. CORE Profile: Value definitions
Is defined by ‘Customer Purpose’. Deliver
value effectively to customers and efficiently
CREATE to the organisation.
(Optimise)
Creates the possibility for developing new
OPPORTUNITY services that will satisfy customers or
(Innovate)
increase production and revenue.
RESTORE Occurs when the organisation delivers unfit
(Restore and Remove)
products or services. Production is lost, the
customer is unhappy, resulting in loss of
EXTERNAL money, time, and reputation.
(Restore and Re-think)
Originates externally and is usually waste or
demand that is created by other
organisations, agencies or institutions.
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27. CORE Profile for Global IT end User support (November 2009)
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28. CORE Profile: ICT support operations
Before changing the service.
Create 8%
Opportunity 2%
Remedial 80%
External 10%
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29. CORE Profile: ICT support operations
After changing the service.
Create 50%
Opportunity 12%
Remedial 33%
External 5%
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30. CORE Profile: Teleco Services
Create 6%
Opportunity 2%
20% 60%
Remedial 87%
workforce Chasing the people who do the work
External 5%
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31. Climetrics® Survey: Telco before and after highlights
Statement Before % After % Statement Before % After %
Understanding our services allows me to take
42 100 I am involved in decision making. 28 45
effective action.
Understanding the customer improves my
14 83 I make decisions with the customer in mind. 14 67
commitment.
Understanding customers helps me make better My data improves the quality of decision
15 95 0 83
decisions. making.
It is my job to share information with my peers I can improve processes and methods to serve
0 63 15 65
and managers. the customer.
I help my organisation understand what I use customer data to help managers make
0 82 17 63
customers value. better decisions.
My manager supports my decision when I have I am confident making decisions with customer
0 49 13 66
customer data. data.
The management team is committed to I understand how the whole organisation works
17 50 16 68
improving the quality of work for customers.
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32. Freedom and decision
A
making
Telco Before Transformation
B Customer -facing activity
Engaging Learning Leading Improving C
Customer -intelligence
gathering
Sharing intelligence with the
D
Mass team
Adaptation Organisational
E
understanding
Sharing intelligence across
F
the function
Mass Transformation objective Sharing intelligence with
G
Specialisation other functions
Sharing intelligence with
H
top/senior management
I Performance management
Mass
Customisation
J Adaptive leadership
Responding to customer
K
issues
Mass Implementing ideas to
L
Production better serve customers
Employee influence on
M
products and services
A B C D E F G H I J K L M N O P N
Employee influence on
managing practices
Employee influence on
Climate Strength Climetrics® Climatograph O
other functions
Employee influence on end-
P
to-end processes
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33. Freedom and decision
A
making
Telco After Transformation
B Customer-facing activity
Engaging Learning Leading Improving C
Customer-intelligence
gathering
Sharing intelligence with the
D
Mass team
Adaptation Organisational
E
understanding
Sharing intelligence across
F
the function
Mass Transformation objective Sharing intelligence with
G
Specialisation other functions
Sharing intelligence with
H
top/senior management
I Performance management
Mass
Customisation
J Adaptive leadership
Responding to customer
K
issues
Mass Implementing ideas to
L
Production better serve customers
Employee influence on
M
products and services
A B C D E F G H I J K L M N O P N
Employee influence on
managing practices
Employee influence on
Climate Strength Climetrics® Climatograph O
other functions
Employee influence on end-
P
to-end processes
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34. Rational
Recognition Achievement
Integrity
Motivated
Passion
Harmony
Engaging Encouraged
Collaborative Together Respectful
Courage
Exploring
Purpose Learning
Supportive
Optimistic Creating
Trust
Sharing
Ease Agreement
Excited
Challenging Growing
Thoughtful
Discovering
Kind Improving
Knowledge
Intelligent
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35. TM
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36. © 2012 Service Climate Management Ltd. All rights reserved
No part of this publication may be reproduced or transmitted in any form or for All other product and service names mentioned are the trademarks of their
any purpose without the express permission of Service Climate Management respective companies. Data contained in this document serves informational
Ltd. The information contained herein may be changed without prior notice. 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
Service Climate Management ® is a registered trade mark of Service Climate form or for any purpose without the express prior written permission of Service
Management Ltd. 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
Customer Value Enterprise ® is a registered trade mark of Service Climate document contains only intended strategies, developments, models, methods
Management Ltd. 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
Climetrics ® is a registered trade mark of Service Climate Management Ltd. 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
The Engaging, Learning, Leadings Improvement device is a TM of Service Climate
accuracy or completeness of the information, text, graphics, links, or other items
Management.
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
CORE Demand Profile TM is a trademark of Service Climate Management Ltd. 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.