Lean Principles People People People Parry ACE 2014

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
Twitter @leanvoices
All sources, influences, acknowledgements and reading lists
can be found our blog at www.leanvoices.com
Three principles: People, People, People.
Creating an adaptive, learning organisation.

Agenda
• Changing perspectives.
• What is a ‘Work‐Climate’ and why is it important
for the business and especially Lean and Agile
Environments?
• Respect for people and a blame free
environment.
• Moving from Mass‐production thinking to Lean
Thinking.
• Measuring the Work‐Climate to see how Lean
your organisation is.
• Short Lean‐Service case study and Work‐Climate
change maps.
• References and Sources.

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

Drive support services
Build  trustwith suppliers
Deeply understand customer needs
Build  trustwith customers
SENSE what matters
to customers
RESPOND
Adapt, Improve,  Innovate
People
1.
Your clients and their
customers
People
2.
Your front‐line
operation
People
3.
Your support
organisation
Lean‐Service requires a ‘Trust‐Strategy’ to create a different ‘Work‐Climate’
Extracts from Sense and Respond by Stephen Parry
Engaging Learning
LeadingImproving

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

In this context, ‘respect for people’ means
understanding that all people have the ability
to learn and the right to be given
opportunities to learn.
Managers helping employees
freely choose how they solve
problems displays total
respect.
There is a world of difference
between helping people to see
and telling them they are
blind.
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.
Most of all we must trust that
people are capable of owning
and solving their own problems
with a little bit of help.
From first to last, Respect for People and a Blame Free Culture.
Extracts from a broadcast by Stephen Parry

Respect for people, trust and a blame‐free environment
‘Blame is not for failure, but it is for
failing to help‐out or to ask for help’
Jurgen Vig Knudstorp
LEGO CEO

Does the job design allow all staff to
engage with customers and users?
To what extent can staff modify solutions
without management permission?
Is everything forbidden unless permitted,
or is everything permitted unless
forbidden?
ENGAGING
™
Work
Climate
Determines
Performance

Do staff routinely share business
intelligence and improvement information
with senior management?
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 routinely spend time at the
workplace solving front-line issues with
the staff?
Do leaders pay more 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?
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?
IMPROVING
™
Work
Climate
Determines
Performance

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
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

Climate Science: The questions being asked.
Improving
M
Employee influence on
products and services
N
managing practices
O
other functions
P
end-to-end processes
Leading
I
Performance
management
J Adaptive leadership
K
Responding to customer
issues
L
Implementing ideas to
better serve customers
Engaging
A
Freedom and decision
making
B Customer facing activity
C
Customer intelligence
gathering
D
Sharing intelligence with
the team
Learning
E
Organisational
understanding
F
Sharing intelligence
across the function
G
other functions
H
top/senior management

Weak Standard Excellent
Autonomy
Customer facing
activity
Intelligence
gathering
Sharing team
intelligence
Excellent Standard Weak
Mass Production Work-Climate
Engaging
Organisational
Understanding
within the function
with other functions
with senior managers
Learning
Lean Service Work-Climate
Two application development teams at the same company
Climetrics®

Performance
Management
Leadership
approach
Responsiveness to
customer issues
Implementing ideas
to better serve
customers
Leading
Employee influence
on improving service
Employee influence
on work practices
Employee influence
on other functions
Employee influence
on end‐to‐end
processes
Improving
Climetrics®
Two application development teams at the same company

©Copyright 2014 Lloyd Parry. All rights reserved
Putting together the Value Stream and Life Cycle
Server Management Value Life‐Cycle
Case Study

Investigation Event: Value Life‐Cycle Analysis
Gather together a
cross‐functional,
cross hierarchical
team
Gather together all
issues, pain‐points
and symptoms
Experiment with
different design
options for full
Value Life‐Cycle
Populate Lifecycle
phases with work
activities
Identify the Data,
Tools and Policies
needed to carry out
activities
Define Life‐cycle
stage KPI’s based
on the ‘Golden‐Five
KPIs’
End‐to‐end cycle
measurement
against product
groups
Deep dive analysis
on selected
products
Identify current or
potential activity
owners and
duplication.
Identify on the map
what’s missing and
what's broken. (Red
Highlights)
Formulate action
plan and initiate
WIP Analysis
Team interaction
analysis

Scheme for presenting a Value life‐cycle
•Life Cycle Phase: A high level group of related activities
•High Level Processes or activities that need to be completed within each
phase of the business lifecycle.
•Organisational Areas: Identifying an organisational unit responsible for each
activity area.
•Key Performance Indicators must be designed for each stage.
•Data or information required to carry out the activity.
•Source of Data for activities, Tools, reports, policy.
•Inputs and outputs required to other business processes
Phase of business process
Life Cycle
High level process
Organisational areas responsible
KPIs Reqd. Not in place
Data or Info Reqd.
Data. Tools. Policy.
other dependent processes

Life Cycle: Main stages identified with suggested KPI’s
Please note closed loop A‐A
Strategic
approach
Management Standards
systems and tools
Service Definition
Service Design
Resource and delivery planning
Server
request
Sourcing commissioning Maintain operation
Decommissioning
and disposal
Business
Process
Performance
Review
A B
B A
Pre‐production phases
Production phases
Customer Survey
understand business
need of key user groups
(business and IT
outcomes)
measure security compliance total time to develop a new service
resource utilization people
and infrastructure
Missing
total time from
request to
fulfilment
(mean/range)
Get IT right the
first time (amount
of re‐work)
total time from
request to contract
total time from
contract to
procurement
hardware delivery
lead time by
vendor
number of issues
raised for
performance
review
total time from
commissioning to handover
availability
number and
classification
of tickets
number of
change requests
by KUG
number of servers
older than 4 years
Number of process
exceptions

Phase and related activities Pre‐ Production
strategic approach
Management Standards
systems and tools
Service Definition
Service Design
Resource and delivery planning
business
strategy
IT Operating strategy
service request &
Problem
management
processes and
tools
security standards
and tools
Patching AV
communication
channel to customer,
e.g. Workflow tool
Service Design
Process incl.
(business
case)
translate customer needs to
service (process)
Service Catalog
Customer
Engagement
Hardware
standards
Asset management tools and processes
KPI Definition
and
measurement
New service implementation
process
Resource
Management
Capacity
management
process and tools
and infrastructure
Monitoring standards and tools
operating system
standards

Phase and related activities Production
Server request Sourcing commissioning Maintain operation
Performance
review
Decommissioning
and disposal
advisory service individual config and costing agreed contract configuration
infrastructure
management
integration
Server performance management
governance
Decommissioni
ng
select source "order" sizing
physical /virtual deployment
Quality Check
and Handover
Server maintenance
procurement
Image
deployment
moves and changes disposal

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

Autonomy
Customer facing
activity
Intelligence
gathering
Sharing team
intelligence
Engaging
Organisational
Understanding
within the function
with other functions
with senior managers
Learning
Transformation objective Improvement objective ?
Global ICT and Applications Company B2B: Before and After
Climetrics®

Performance
Management
Leadership
approach
Responsiveness to
customer issues
Implementing ideas
to better serve
customers
Leading
Employee influence
on improving service
Employee influence
on work practices
Employee influence
on other functions
Employee influence
on end‐to‐end
processes
Improving
Transformation objective
Climetrics®

Lean Work Climate Engaging and
understanding
Learningand
Sharing
Leading and
Decision Making
Improving and
Changing
Work
Design
Measurement Behaviour
Perspective
Climetrics®

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

Choice
Freedom
Power
Performance is a matter of people having
which is a matter of
with the Purpose and
possibility
Leadership
without position
Is your organisation a hindrance to employees, managers and
customers?
Creating an Adaptive, Learning,
Organisation.
Visualisation and
Measurement
Willing contribution
Climate
to do what matters to serve the customers purpose

Useful References
Adaptive Enterprise by Stephan Haeckel
Landmark Education and the Landmark Forum www.landmarkworldwide.com
The Essential Deming by Edward Deming
Fourth Generation Management by Brian L. Joiner
The Human Side of Enterprise by Douglas McGregor
Lean Solutions by James P. Womack and Daniel T. Jones
Lean Thinking by James P. Womack and Daniel T. Jones
The Machine that Changed the World 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
Toyota Production System by Taiichi Ohno
Understanding Variation: The Key to Managing Chaos (2nd Edition) by Donald J. Wheeler
Freedom from Command and Control by John Seddon
Service Quality by Benjamin Schneider and Susan S. White
Sense and Respond: The Journey to Customer Purpose
by Stephen Parry, Susan Barlow, and Mike Faulkner
www.lloydparry.com www.lloydparry.com/newsletter

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Lean Principles People People People Parry ACE 2014

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