Designing Better Workplaces Changing the Work Climate

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Designing better workplaces: The modern workplace is not
designed for the modern knowledge worker so lets change it.
Stephen Parry
Author of Sense and Respond
Senior Partner at Lloyd Parry
@Leanvoices
Blog : www.LeanVoices.com
Stephen.parry@lloydparry.com
www.lloydparry.com
www.slideshare.net/SGParry/presentations
All sources, influences, acknowledgements and reading lists
can be found on www.leanvoices.com

2. Together
Ease
Respectful
Excited
Optimistic
Intelligent
Collaborative
Sharing
Learning
Creating
Supportive
Growing
Exploring
Rational
Encouraged
Achievement
Engaging
Harmony
Recognition
Discovering
Motivated
Agreement
Purpose
Knowledge
Kind
Thoughtful
Integrity
Trustworthy
Passion
Courage
Challenging
Leading Improving
Curious

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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

4. Choice
Freedom
Power
Performance is a matter of people having
which is a matter of
with the Performance
Measures
Technology
Is your organisation a hindrance to employees, managers and
customers?
Designing a better end-to-end
‘System’
to do what matters for customers.
Role Design
Processes, Procedures
and Methods
Policy
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5. 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 Service Climate through the adoption
of Adaptive -Lean methods.
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6. Also predicts the implications for a business that doesn’t change
Diagnosis
Operating strategies.
Operating structures.
Managing practices.
Perceptions, feelings and behaviour of
customers, staff, managers and leaders.
End-to-end service performance.
Quality.
Innovation and change ability.
Customer centricity.
Leadership.
Prognosis: Service Performance
Predictability
Long-term profitability.
Work outcomes.
Employee performance.
Job satisfaction.
Customer perceptions of service quality.
Quality improvements.
Commitment.
Absenteeism and turnover.
Organisational adaptability.
Service Climate: Thinking Feelings and Behaviour
of Customers, Employees, Managers and Leaders
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7. ™
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8. 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?
Service
Climate
And
Performance
CLIMETRICS®
ENGAGING
™
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9. 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?
LEARNING
™
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10. 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?
LEADING
™
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11. Do employees influence end-to-end
business processes?
What influence does staff have over
improving the measurement system?
What influence do employees have on
improving products and services?
IMPROVING
™
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Engaging, Learning, Leading, Improving Dimensions
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

13. Mass Customisation. This is a variation of the one-size-
fits-all. The employee helps the customer select from a
fixed menu of options. The customer experience and
employee engagement, however, are relatively low.
Mass Specialisation. Customers must know which service they
want, where to obtain it and integrate each one from different
sources. Since employees possess deep specialist knowledge,
they will engage customers at a much higher level, and the
customer experience is personal and solutions standard.
Mass Adaptation. The Customer Value Enterprise® The service will
provide personalised advice to suit the individual. Employee skills are
high and they will integrate and combine all solutions on the customers’
behalf in unique combinations, resulting in high customer and employee
engagement. The customer experience is personal and unique.
Mass Production. A one size fits all service
has low variety offerings , employee skills
are basic and customer engagement is
transactional.
™
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14. Climetrics® Landscapes
CHARACTER OFFERINGS
CUSTOMER
EXPERIENCE
EMPLOYEE
EXPERTISE
IMPROVEMENT
RESPONSIBILITY
MANAGEMENT
FOCUS
COMPETITIVE
BASIS
LEADERSHIP
FOCUS
Customer Value
Enterprise ®
Personalised,
individual,
Bespoke.
Unique.
Flexible
Offerings
Customer
experience is
personal and
unique
Co-Creation of
solution design
Expert Broad
knowledge to
provide
integrated
solutions
Front-line
experimentation
and Learning
Creativity,
expertise, new
products and
services.
Customer
outcomes.
Problem Solving
Trusted
advisor and
expert
Integration
Business
Outcomes
Listen and
adapt
The Department
Store
More choice
from a variety
of standard
offerings
High level of
customer
interaction to
identify needs
and situation
Specific and
deep specialist
knowledge and
skills
Front-line staff
Managers
Developing staff
knowledge
Capture and reuse
solutions
Effectiveness
In-depth
specialities
connected to
expert
networks
Economies of
Scope
Consultative
The Pizza
Parlour
Fixed menu
with simple
options
Discuss simple
needs and
available
options.
Low customer
involvement
during solution
design
Understand
basic option
configurations
Central Change
Teams
Managers
Cost, efficiency
and Coordination
Commodity
Driven
Emphasis on
providing
value-add and
choice
Direct and
Control
The Bus Low Variety Transactional
and Processed
No customer
involvement in
solution design
Basic Improvement
Boards
Improvement
Specialists
Suggestion
Schemes
Employee
utilisation, cost
reduction, work
intensification.
Commoditised
High Volume
Low Margins
Economies of
Scale
Command and
Control
Mass
Production
Mass
Customisation
Mass
Specialisation
Mass
Adaptation
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15. Mass
Production
Mass
Customisation
Mass
Specialisation
Mass
Adaptation
Independent
Financial
Advice
Consumer IT
Support
Services
Energy
Utilities
Water
Utilities
Consumer
Banking
Services
Health-Care
Services
Insurance
Services
Mobile Phone
Support Services
Revenue
and Tax
Government
Centres
Low-cost
Airline
Travel
Services
Legal
Advice
Credit Card
Services
Consumer
Advice
Corporate IT
Services
Post and
Parcel Services
Purchasing
Computers
Mobile Phone
Purchasing
Investment
Services
Weak Operation Standard Operation Excellent Operation
Climetrics® Operating Landscapes and Operational Excellence with Adaptability
Differentiation
curve
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16. Mass
Production
Mass
Customisation
Mass
Specialisation
Mass
Adaptation
Weak Operation Standard Operation Excellent Operation
Climetrics® Telco before and after transformation
Business
Support
Operations
Design and
Provision
New
Service
Differentiation
curve
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17. All Trade-Marks and ©Copyright 2013 Owned by Lloyd Parry. All Rights Reserved.
Climate Landscapes
CHARACTER OFFERINGS
CUSTOMER
EXPERIENCE
EMPLOYEE
EXPERTISE
IMPROVEMENT
RESPONSIBILITY
MANAGEMENT
FOCUS
COMPETITIVE
BASIS
LEADERSHIP
FOCUS
Sense and
Respond
CVE
Mass
Adaptation
Personalised,
individual,
Bespoke.
Unique.
Flexible
offerings
Customer
experience is
personal and
unique
Co-Creation of
solution
design
Expert Broad
knowledge to
provide
integrated
solutions
Disciplined
experimentation
Front-line
experiments
and learning
Creativity,
expertise, new
products and
services.
Customer
outcomes.
Problem solving
Trusted
advisor and
expert
Integration
Business
outcomes
Listen and
adapt
Mass
Production
Low variety Transactional
and processed
No customer
involvement in
solution
design
Basic Improvement
boards
Improvement
specialists
Suggestion
schemes
Employee
utilisation, cost
reduction, work
intensification.
Disciplined
compliance
Commoditised
High Volume
Low Margins
Economies of
scale
Command
and control

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Mass
Production
Mass
Customisation
Mass
Specialisation
Mass
Adaptation
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
Engaging Learning Leading Improving
A B C D E F G H I J K L M N O P
Climetrics® Climatograph
Transformation objective
Climate Strength
Applications Company. June 2009: Before Transformation

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Mass
Production
Mass
Customisation
Mass
Specialisation
Mass
Adaptation
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
Engaging Learning Leading Improving
A B C D E F G H I J K L M N O P
Climetrics® ClimatographClimate Strength
Transformation objective
Applications Company. Nov 2010: AfterTransformation

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Mass
Production
Mass
Customisation
Mass
Specialisation
Mass
Adaptation
Engaging Learning Leading Improving
Climate Strength
Climate at two different software development firms
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
Climetrics® Climatograph
A B C D E F G H I J K L M N O P

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©Copyright 2012
Mass
Production
Mass
Customisation
Mass
Specialisation
Mass
Adaptation
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
Engaging Learning Leading Improving
A B C D E F G H I J K L M N O P
Climetrics® Climatograph
Transformation objective
Climate Strength
Global Run Infrastructure Company : Before Transformation

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©Copyright 2012
Mass
Production
Mass
Customisation
Mass
Specialisation
Mass
Adaptation
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
Engaging Learning Leading Improving
A B C D E F G H I J K L M N O P
Climetrics® ClimatographClimate Strength
Transformation objective
Global Run Infrastructure Company : After Transformation

24. 24

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©Copyright 2012
FunctionalEndtoEnd
No Matters to Customers Yes
You’ll not find many
measures in this zone.
‘If you measure your
business using averages,
don’t be surprised to find
yourself running an
average business.’
Purpose
Agent
Utilisation
% Incorrectly
Categorised
Average
Handle Time
First
Time
Fix
Mean time
to process
by priority level
Calls/ Agent
/Day
Average
IT Availability
Time
Customer
Satisfaction ?
Depends
% Incorrectly
assigned
% resolved within
Target priority MTP
Av time for 2nd
level to respond
Av Time to
resolve
% Incidents
Re-assigned
% Calls
Bypass 1st Line
% of calls that are
Service Requests
No. calls without
Esc/agent
No. Calls Exceed
SLA
Av Time
Call Answr
% of Calls
Convt to Tickets
What you measure tells everyone what you think

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©Copyright 2012
26
IT and application support staff Measurement
before and after understanding users.

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©Copyright 2012
27
What we feel pain about today.

28. Wrong measures, wrong pain, wrong outcomes.
Service Measures and SLAs. End-user Measures. End User pain points

31. Making the pretence, reality and cost visible: ‘Your baby is ugly’

32. 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.
Giving people
opportunities.
We are coping, everything
is OK.
We are doing a good job.
We work as a team.
We listen to people.
Working to the numbers.
Ticking the boxes.
Manipulating the numbers.
Back-stabbing.
Lying.
Covering up.
No trust.
Blaming.
Cheating.
Play the game.
Low self-esteem
Futility.
No fulfilment.
Withdrawing.
No fun.
Loss of honesty
Loss of integrity.
Loss of repeat business.
Customer dissatisfaction.
Little or no innovation.
Cynicism.
Missed opportunities.
Fear of being found out.

33. Mass
Production
Mass
Customisation
Mass
Specialisation
Mass
Adaptation
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
Engaging Learning Leading Improving
A B C D E F G H I J K L M N O P
Climetrics® Climatograph
Transformation objective
Climate Strength
Development, testing and run Local government IT
Before Transformation

34. Mass
Production
Mass
Customisation
Mass
Specialisation
Mass
Adaptation
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
Engaging Learning Leading Improving
A B C D E F G H I J K L M N O P
Climetrics® ClimatographClimate Strength
Transformation objective
Development, testing and run Local government IT
After Transformation 18 Months

35. 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
Climetrics® Management and staff Survey: before and after highlights
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36. Choice
Freedom
Power
Performance is a matter of people having
which is a matter of
with the Performance
Measures
Technology
Is your organisation a hindrance to employees, managers and
customers?
Designing a better end-to-end
‘System’
to do what matters for customers.
Role Design
Processes, Procedures
and methods
Policy
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Trustworthy

37. Together
Ease
Respectful
Excited
Optimistic
Intelligent
Collaborative
Sharing
Learning
Creating
Supportive
Growing
Exploring
Rational
Encouraged
Achievement
Engaging
Harmony
Recognition
Discovering
Motivated
Agreement
Purpose
Knowledge
Kind
Thoughtful
Integrity
Trustworthy
Passion
Courage
Challenging
Leading Improving
Curious

38. On-Line Data Collection
Data Cleansing
Validity testing (Factor Analysis)
Correlation Matrix Analysis
Regression Analysis
Confirmatory Factor Analysis
Structural Equation Modelling
Climetrics® Landscape categorisation
Statistical data - Interpretation
Triangulation with on-site workshops
Executive Summary
Climetrics® Analysis MethodologyClimetrics ® Statistical Analysis Process

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TM

40. No part of this publication may be reproduced or transmitted in any form or for
any purpose without the express permission of Service Climate Management
Ltd. The information contained herein may be changed without prior notice.
Service Climate Management ® is a registered trade mark of Service Climate
Management Ltd.
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.
© 2012 Service Climate Management Ltd. All rights reserved
All other product and service names mentioned are the trademarks of their
respective companies. Data contained in this document serves informational
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
form or for any purpose without the express prior written permission of Service
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
document contains only intended strategies, developments, models, methods
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
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
accuracy or completeness of the information, text, graphics, links, or other items
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
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
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