In lean approaches problems are well known as opportunities for learning and improving. Do traditional approaches like project management, new IT solutions and lean tools actually encourage this learning and improving? Based on Vanguard’s 30 years experience in private and public sectors we have learnt that traditional approaches can lead organisations down a dangerous path. The inherent assumption about the problem and the answer can result in doing the wrong things righter. We will show through examples the dangers in some of the traditional approaches to problem solving and the impact on performance. We will explore a practical approach to solving the right problems and how to involve IT at the right time. It all starts with get knowledge!

1. Achieving improved
performance through learning
how to tackle the right
problem
Hendrik Ascheberg & Steve Maddocks

2. AGENDA
1. Solving the wrong problem can lead to bad performance
2. Thinking governs performance: Some theory about problem solving
3. Theory in action: Financial Service Case study
4. Framework to take action
5. Questions & Discussion
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3. Solving the wrong problems can lead to bad
performance and higher costs
To Düsseldorf…
…via Amsterdam
…a customer experience
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4. Thinking governs performance
• Standards reduce or control cost
• Customers would rip the company off
• We need to have control & consistency
Thinking
• Management know, what the customers want
• We don´t trust our staff to make decisions and
solve problems
• Standards/Procedures
• Service Levels
System
• Regulations/Audit
• Customer is unhappy, problem not solved
• Staff are frustrated, unhappy, cannot help and
become disengaged
Performance
• Airline spends more money €€€
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5. Thinking governs performance
Thinking
Action
System
Analysis
Performance
Seddon/Argyris
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6. Financial Service Case study
Purpose: Help me finance
my car!
• Allocating work through
– IVR – Interactive voice
record (Press 1, if…)
– Mailbox
• Service Level:
– Response within 5 days
– <10% abandoned call rate
• Back-office
4x
• Transactions doubled
IVR
• Transactions 5x
• Transactions trippeled
• Demand Amplification &
backlog
• Failure demand
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7. Why did the system perform this way?
• Leave your brain at the door: simple
repetitive tasks
• Targets motivate people to work harder
• Targets increase efficiency
• Specialist can do things faster
Thinking
Functionalisation
• Allocation of work
•Back-Office
Targets
• Service Level: <10% lost call
• Increase in transactions:
20% one stop capability
• Demand Amplification & Backlog: 3 month
• Failure demand:
System
60%
Performance
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8. What was the consequence of changing thinking?
Before:
After:
• Focus on Productivity /Activity
• Focus on value work, act on failure
• Functionalisation leads to better
efficiency
• Design against demand: Expertise to the front
Thinking
• Targets lead to higher
Performance
• Eliminate waste and optimse flow
• Managers act on the system and engage staff
in problem solving
• 5 functions
• 1 function
• 14 mail boxes
• 1 mail box
• Targets (10% abandoned call rate)
System
• Measures to learn and improve
(value/ failure; one stop capability)
• Mails waiting in back log: 3 month
• No back log
• Staff were fire fighting
• Staff morale went up
• Plan to recruit additional staff
Performance • Existing staff took over new demands
and proactive work
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9. How can you challenge thinking?
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10. If you don´t challenge your current thinking…
…you solve the same old problems the same old way.
If you challenge your thinking….
…you solve different problems.
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11. Thank You!
Interested to learn more?
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www.vanguard-method.com
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12. Back-up
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13. The secret
• Rational
• Coercive
• Normative
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14. What other traditional options do we have to solve the
problem?
• New IT: Workflow management, CRM
• Outsourcing
• Paid telephone hotline
• Improvement tools
– 5s
– Kanban
– Visual methods
– Etc.
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