Can we design organisations that are adaptive, innovative and engaging for employees, managers and leaders alike? This presentation will demonstrate the importance of organisational design and route-map sequencing to create conducive work-climates to drive deeper customer engagement and faster organisational responses. Almost daily, managers face multiple choices for work design, measurement, rewards, organisational structures, working practices and approaches to management and staff relationships just to keep the day-to-day business running- let alone respond to future business needs. In this presentation, we look at the most important items to align to create a highly responsive organisation. We will start by examining the work-climate to understand how management choices interact in complex ways to create a perception of ‘how it feels to work here’. Research has demonstrated that workclimate perceptions are a proven predictor of long-term business performance. By examining the ‘work-climate’, we can then ask the following questions: What are the best choices for managers to make to increase performance and adaptability? What needs to be eradicated? What needs to be redesigned? Where do we need to start? About Stephen Parry Biog PhotoStephen Parry is an international leader and organisational architect, designing and creating adaptive organisations. 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 (Palgrave), 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. 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. His clients include many global corporations and national governments: SAP, LEGO, BT, UK government, police authorities, financial services, Telcos, retail, Legal Services, IT and software companies, outsourcing and shared services.

1. All Trade-Marks and ©Copyright 2017 Owned by Lloyd Parry. All Rights Reserved.
All Trade-Marks and ©Copyright 2017 Owned by Lloyd Parry. All Rights Reserved.
Faster Adaptability: The new core competency
(The Science behind Adaptive Businesses)
Stephen Parry
Author of Sense and Respond
CEO/Founder at Lloyd Parry International
Twitter @Leanvoices
@Adaptivevoices
www.lloydparry.com
Stephen.Parry@LloydParry.com

2. Stephen Parry
Founder and CEO at Lloyd Parry International
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
Lloyd Parry International
Lloyd Parry delivers Adaptive Business transformation programs to large scale
global organisations in many sectors including; Telecommunications, IT and
Cloud Services, Software Development, Financial Services, Logistics,
Outsourcing and Local Government.

3. Because the quality of the work-place design is
equal to the quality of your working life and the
long term profitability of the business.
You get the behaviour you design for,
or fail to design for.
It's your choice.
So why should you care?

4. The purpose of an Adaptive Business.
Traditional constraints to overcome.
The Adaptive Business Model.
Organisational Landscapes.
The link between Work-Climates and the Organisational Landscape.
What type of organisation are you?
How adaptive is your business?
The Adaptive Business

5. The Purpose of an Adaptive Business
Business adaptiveness
is required to continuously drive value
creation for customers, establish
differentiation and create a secure
and challenging workplace
for long-term prosperity.
• A clear line of sight to customer value is
maintained.
• Continuous-Value-Creation is enabled.
• Adaptiveness is a work-force capability.
• Creativity and collaboration require the willing
contribution of staff.
• Scenario projects are work-place research,
experimentation, learning, design and
adoption activities.
• IT is about customer outcomes not IT.

6. • Rapid response to the external
environment.
• Self-organising at team and
department levels.
• Disciplined experimentation.
• Staff routinely running multiple
cross-functional continuous
change activities.

7. The Adaptive Business
The purpose of an Adaptive Business.
Traditional constraints to overcome.
The Adaptive Business Model.
Organisational Landscapes.
The link between Work-Climates and the Organisational Landscape.
What type of organisation are you?
How adaptive is your business?

8. Traditional Constraints to Overcome (Examples)
• Speed of growth forces us to
overburden our system of work,
leading to stress, blaming,
frustration, less collaboration, and
feeling powerless.
• Short-term, we often have no
choice. Long-term, however, it
destroys our ability to deliver and
inhibits our creativity.
• Changing the way we work, while
enhancing collaboration, will give
us the space for creativity, better
decision-making and a reduction in
overburden.
Work-Overburden Transparency
• We need to surface errors
wherever they are and in whatever
guise they might hide.
• We need to inspire confidence in
our customers through visibility of
our actions to support their goals.
• Transparency enables us to see
when we each need help. It fuels
honesty, collaboration and pride.
• We want to establish a blame-free
culture and an organisation where
we learn from our own errors and
the errors of others.
Decision-making
• Enhancing the skills and insights of
our staff allows for better and
faster decisions, as going up and
down the hierarchy tree is too
slow.
• Designing roles to allow people to
make decisions as close as possible
to where a problem needs action is
key.
• We need to shift back a great deal
of autonomy, freedom and control
to where the work really gets done
and makes a difference for the
customer.

9. Decision-making at the level where the work gets done.
• The trouble with silo thinking is there is little or
no thinking.
• Staff need to intimately know how other parts of
the organisation work.
• Planning, scheduling and reporting work activities
become more complex.
• Sharing resources between departments and
teams is decided at the level the work gets done.
• The different types of organisational structures
are not where you find ‘Adaptability’ but in the
conversations people have with each other.
Thinking outside the box is not enough;
we must now work outside the box.

10. The Adaptive Business
The purpose of an Adaptive Business.
Traditional constraints to overcome.
The Adaptive Business Model.
Organisational Landscapes.
The link between Work-Climates and the Organisational Landscape.
What type of organisation are you?
How adaptive is your business?

11. Engaging and understanding
customers
Learning and sharing
customer and business Information
Leading and choosing new ways
to better serve customers
Improving and changing the
organisation to better serve customers
Adaptive Business
Model
The Changing Face
of Business

12. Engaging
and understanding
Learning
and sharing
Leading
and choosing
Improving
and changing
Adaptive Business Model
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
I
Performance
management
J Adaptive leadership
K
Responding to customer
issues
L
Implementing ideas to
better serve customers
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
The Changing Face
of Business

13. The Adaptive Business
The purpose of an Adaptive Business.
Traditional constraints to overcome.
The Adaptive Business Model.
Organisational Landscapes.
The link between Work-Climates and the Organisational Landscape.
What type of organisation are you?
How adaptive is your business?

14. Organisational Landscapes
( B r i e f S u m m a r y )
Mass
Production
Networked-
Specialisation
Adaptive
Mass
Customisation
Listen
and Adapt
Command
and Control
Direct
and Control
Consultative
Leadership
Styles
New products
Creativity
Co-Creation of Value
Staff Utilisation
Work Intensification
Cost reduction
Cost Efficiency
Variety
Task intensification
Staff knowledge
Capture and Reuse
Effectiveness
Management
Focus
Trusted Advisor
Integration
Customer Outcomes
High Volume
Low Margins
Economies of Scale
Low Margins
Value added Choices
Low Cost
In-Depth Specialities
Expert Networks
Economies of Scope
Competitive
Basis
Adaptive
Work-Climates
Industrial
Work-Climates

15. Improving PracticeLeadership PracticeEngaging Practice Learning Practice
OrganisationalLandscapes
Adaptive Business Practices
16
100
Adaptability
Score

16. The purpose of an Adaptive Business.
Traditional constraints to overcome.
The Adaptive Business Model.
Organisational Landscapes.
The link between Work-Climates and the Organisational Landscape.
What type of organisation are you?
How adaptive is your business?
The Adaptive Business

17. Work-Climates are the combined perceptions, feelings and
thinking of a particular work group, department or whole
organisation.
It is these perceptions and feelings that give rise to
behaviour and performance.
Work-Climate is a predictor of positive or negative
customer experiences.
Work-Climate is also a predictor of long term prosperity.
Climate is not the same as Culture.

18. Climate
Landscape

19. Climate
Landscape

20. Climate
Landscape

21. +-
+-
Climate
Landscape
Weather System
Adapted from the ‘Psychological Process to Performance Model’
Sense and Respond The Journey to Customer Purpose by Stephen Parry 2005

22. Organisational Landscapes
Work-Climate
Organisational System
+-
+- Behaviours
Performance and long-term profitability
Purpose, strategy, structures, controls
and measurement
Adapted from the ‘Psychological Process to Performance Model’
Sense and Respond The Journey to Customer Purpose by Stephen Parry 2005

23. The purpose of an Adaptive Business.
Traditional constraints to overcome.
The Adaptive Business Model.
Organisational Landscapes.
The link between Work-Climates and the Organisational Landscape.
What type of organisation are you?
How adaptive is your business?
The Adaptive Business

24. All Trade-Marks and ©Copyright 2017 Owned by Lloyd Parry. All Rights Reserved.
All Trade-Marks and ©Copyright 2017 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
Networked-
Specialisation
Adaptive
Mass
Customisation
DCBA HGFE LKJI PONM
Listen
and Adapt
Command
and Control
Direct
and Control
Consultative
16
100

25. All Trade-Marks and ©Copyright 2017 Owned by Lloyd Parry. All Rights Reserved.
All Trade-Marks and ©Copyright 2017 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
Networked-
Specialisation
Adaptive
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
16
100

26. All Trade-Marks and ©Copyright 2017 Owned by Lloyd Parry. All Rights Reserved.
All Trade-Marks and ©Copyright 2017 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
Networked-
Specialisation
Adaptive
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
16
100

27. All Trade-Marks and ©Copyright 2017 Owned by Lloyd Parry. All Rights Reserved.
All Trade-Marks and ©Copyright 2017 Owned by Lloyd Parry. All Rights Reserved.
85%
Feel improved working relations
with other teams
83%
Understand other teams’ 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

28. http://www.amadeus.com/documents/lean-
it/Amadeus_Lean_IT.pdf

29. Engaging and understanding
customers
Learning and sharing
customer and business Information
Leading and choosing new ways
to better serve customers
Improving and changing the
organisation to better serve customers
Adaptive Business
Model
The Changing Face
of Business

30. References , influences and 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)
Landscape Pictures from Istock
Amadeus Lean Enterprise Case Study: Cleared for Take off http://www.amadeus.com/documents/lean-it/Amadeus_Lean_IT.pdf
Adaptive Business Framework TM Graphics by eximiadesign.com
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

31. Achieving Change
TM

32. No part of this 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.
© 2017 Service Climate Management Ltd. A Lloyd Parry International Company.
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