Lean Mythbusting for Staff, Managers and Executives.

All Trade-Marks and ©Copyright 2014 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 on our blog at www.leanvoices.com
Myth busting Lean for Staff, Management and
Executives.

Stephen Parry
Founder and Senior Partner at Lloyd Parry
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
Winner of the National Business Award for Best Customer Service
Strategy.
National Business Awards the Judges declared “the company created
an entire cultural change around the needs of its customers and could
as a result demonstrate business growth, innovation and success.”
Partner at Lloyd Parry
Lloyd Parry delivers transformative Lean 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 Lean-Service a number of
companies have won national industry awards for Best Service
Strategy, Best People Development Program and awards for Innovation
and Creativity.

The program for today
Why Lean is not about cutting staff.
Why Lean is about people.
Why customers demand Lean.
• Call to action.
• The customer problem.
• The organisational problem.
• The Lean-Service Solution.
• The Lean-Service ‘Work-Climate’
what is it and why is it important for
your business and your customers?
• Lean-Service outcomes.
• Time for a change.
• References and sources.

The customer/service user challenge: They don’t have time………….they say things like:
Solve my problem, completely.
Don't waste my time or cause me hassle.
Minimise the cost of doing business with you.
Provide exactly what I need and deliver value where I need it.
Reduce the number of decisions I must make to resolve my problems.
Don’t get me to help you, I want you to help me!
Adapted from Lean Solutions: Jim Womack and Dan Jones by Stephen Parry

Question:
What would service organisations do if they had
to pay for all the service user or customer time
they wasted?
Adapted from Lean Solutions: Jim Womack and Dan Jones by Stephen Parry

Traditional approach: Feasible parts creating an infeasible whole.
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

Improved end-to-end service delivery?
F1 F2 F4F3 Fn
S1 S2 S4S3 Sn
Functional units
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
Traditional approach: Feasible parts creating an infeasible whole.

What type of work-climate do customers, employees, managers and leaders create?
Mass Production Work-Climate
Lean Service Work-Climate
Willing
contribution
Transactional
and processed
Incentivised
contribution
Functional
efficiency
Direct
and control
Relational
and personal
End-to-end
effectiveness
Listen
and adapt
Company pushesproducts and services ON-COMMAND
Customers and employees are designed out
Customer pulls products and services ON-DEMAND
Customers and employees are designed in
Customer/User
experience
Employee motivation Executive leadershipSupport operations
The Behaviours, Measures, Job Design and Purpose are different.

Transformation objective and expectation
Base-Line Current Performance
Performance
New performance falls short of expectations
Lean Tools and Methods for process improvement
Why do Lean initiatives fall short of expectations ?

Transformation objective and expectation
Base-Line Current Performance
Performance
New performance falls short of expectations
Lean Tools and Methods for process improvement
Lean Work Climate Engaging and
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?
To what extent can staff modify solutions
without management permission?
Is everything forbidden unless permitted,
or is everything permitted unless
forbidden?
ENGAGING
™

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
™

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
™

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
™

Basic Standard Excellent
Autonomy
Customer facing
activity
Intelligence
gathering
Sharing team
intelligence
Excellent Standard Basic
Engaging
Organisational
Understanding
Sharing intelligence
within the function
with other functions
with senior managers
Learning
Transformation objective Improvement objective ?
Global ICT and Networks 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®

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 ?
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®
LeanWorkClimate Engaging and
understanding
Learningand
Sharing
Leading and
DecisionMaking
Improvingand
Changing
Work
Design
Measurement Behaviour
Perspective

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
Cambridge University Survey: Telco before and after highlights

Challenge
•The operating models we have all been working with
for so long have become irrelevant. We have been
concentrating on technology rather than concentrating
on what customers actually want.
•We need to move from a Break fix service to Managed
Services.
Objective
•Deliver transformed customer experience
•People - Deliver “connected performance” and Create
“excellent leaders” and an adaptive workforce.
Solutions Highlight
•Working with Sense and Respond we implemented a
unique transformational programme, which radically
improved our service culture by tapping into the
customer intelligence residing with the front-line staff.
1st year results have shown:
• Improved the customer experience cycle time by 40%
• Reduced hand-offs by 33%
• Improved customer understanding and success
• Improved the customer satisfaction index 30%
• Improved out of service time 71%
• Reduced escalations 83%
• Reduced routine updates 67%
• Reduced work in progress and associated overheads 49%
• Improved resolution at first point of contact 64%
• Have a highly involved and motivated workforce
Operational Savings to date
•07/08 £2, 163, 000
•Reduced Customer Churn
Climetrics® Telco results
™

Fujitsu Case Study: Results
Customer satisfaction up by 70%.
Unwanted demand decreased by
60%.
Employee satisfaction increased by
40%.
Attrition dropped from 40% to 8%.
Operating costs reduced by 45%.
Increased business revenues.
Created a market differentiator.
National Business Awards
Best customer Service Strategy
‘Sense and Respond’
Fujitsu generated “an entire
cultural change around the needs
of its customers and could as a
result demonstrate business
growth, innovation and success.”
Source Fujitsu Case Study: Sense and Respond Book Used with kind permission

What does Lean-Service mean for the organisation, leaders, managers and
staff?
• Organisation.
– Consider the measurement and governance
systems
– More rigorous Continuous Improvement
structures
– Potentially new commercial arrangements with
customers
– 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.

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
I would like you to cheat by John Seddon
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
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

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 Lean-Service 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.”

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Lean Mythbusting for Staff, Managers and Executives.

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