2012 Lean Kanban France Stephen Parry Sense and Respond

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All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved.
©Copyright 2012

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

©Copyright 2012

Recognition Achievement Motivated
Passion
Harmony
Nurture Encouraged

Acceptance Collaborative Respectful
Rational
Together
Courage
Exploring
Purpose Engaging
Optimistic Sharing Creating

Trust
Ease Agreement
Discovering
Challenging Excited
Growing
Learning Kind Supportive Integrity
Thoughtful Intelligent
©Copyright 2012
Knowledge

Sense and Respond Lean is about connecting everyone to customers
Extracts from Sense and Respond by Stephen Parry

SENSE what matters DRIVE the service and the strategy
to customers

Build trust with customers

Build trust with suppliers
Drive support services
Capture Demand Data
1. 2. 3.
People People People
Your clients and their Your front-line Your support
customers operation organisation

Adapt – Evolve – Inform – Innovate
RESPOND

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Traditional approach: Feasible parts creating an infeasible
whole.
Functional units
F1 F2 F3 F4 Fn

Independent It’s not
solutions S1 S2 S3 S4 Sn unusual to
designed to have thirty
meet functional or more
targets and solutions
goals. lining up for
attention.
Improved Customer Experience ?

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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
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Question:

What would delivery organisations do if they
had to pay for all the operational and service
user time they wasted?

Adapted from Lean Solutions: Jim Womack and Dan Jones by Stephen Parry
©Copyright 2012

Tee Value Stream: Effective provision of service for service users

where I need it, when I need
Provide exactly what I need,

Don’t get me to help you;
decisions I have to make.
doing business with you.

I want you to help me!
Reduce the number of
Don't waste my time

Minimise the cost of
or cause me hassle.
Solve my problem
completely.

it.
Service User Business Process

Specify value from the Make value-creating steps occur in a
standpoint of the end customer. tight and integrated sequence so the
product/service will flow smoothly
Identify all the steps in Delivery Process toward the customer.
the value stream eliminating
every step and every action Let customers pull value
and every practice that from the next upstream activity.
does not create value.
Pursue Perfection. These steps lead
to greater transparency, enabling
teams to eliminate further waste

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What type of climate do you create for customers, employees, managers and leaders?

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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Sense and Respond vs. Make and Sell

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 Direct and
and processed boards utilisation, cost 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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The organisation is a hindrance to both employees and customers.

Designing a better end-to-end
Performance is a matter of people having ‘System’

Choice
which is a matter of Policy

Role Design
Freedom Processes and
Procedures
with the Performance
Measures

Power Technology

to do what matters for customers.

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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.

REMEDIAL 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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CORE Profile for Global IT end User support (November 2009)

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CORE Profile: ICT support operations
Before changing the service.

Create 8%

Opportunity 2%

Remedial 80%

External 10%

Source Fujitsu Case Study: Sense and Respond Book Used with kind permission

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CORE Profile: ICT support operations
After changing the service.

Create 50%

Opportunity 12%

Remedial 33%

External 5%

Source Fujitsu Case Study: Sense and Respond Book Used with kind permission

©Copyright 2012

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

Purpose
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What we measure today…staff,

17
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IT and application support staff Measurement
before and after understanding users.

18

What we feel pain about today….Global Services.

19
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Wrong measures, wrong pain, wrong outcomes.

Service Measures and SLAs. End-user Measures. End User pain points

Delivering the bad news or is it good news? to the management.

21

Averages throw away the data for improvement

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Recognition Achievement Motivated
Passion
Harmony
Nurture Encouraged

Acceptance Collaborative Respectful
Rational
Together
Courage
Exploring
Purpose Engaging
Optimistic Sharing Creating
Ease Agreement
Discovering
Challenging Excited
Growing
Learning Kind Supportive Integrity
Thoughtful Intelligent
©Copyright 2012
Knowledge

Pretence, reality and cost: but what’s the benefit?

Pretence Reality Cost
What we say its like What it is really like What it costs us to pretend

Caring for people. Working to the numbers. Low self-esteem
Giving people Ticking the boxes. Futility.
opportunities. Manipulating the numbers. No fulfilment.
We are coping, everything Back-stabbing. Withdrawing.
is OK. Lying. No fun.
We are doing a good job. Covering up. Loss of honesty
We work as a team. No trust. Loss of integrity.
We listen to people. Blaming. Loss of repeat business.
Cheating. Customer dissatisfaction.
Play the game. Little or no innovation.
Cynicism.
Missed opportunities.
Fear of being found out.

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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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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.

It’s not about waste, its always been about value.

Customer Purpose Defines Value, Value defines meaningful work
All the rest is waste.

There needs to be a clear line of sight between
everything we do and customer value.

©Copyright 2012

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2012 Lean Kanban France Stephen Parry Sense and Respond