Mar
07

Sense and Respond: Book Forward

Dr Joel Cutcher-Gershenfeld

Senior Research Scientist, MIT Sloan School of Management, and Executive Director, MIT Engineering Systems Learning Center

In reality, this is a culture change on a massive scale. It is a shift to a culture that can see the value in recognizing ‘disconnects’ with customers. It is a shift to a culture where frontline workers have the skills and motivation to conduct root-cause analysis.

It is a shift to a culture in which learning is seen as central to business success, not just an add-on activity.

A number of leading organisations have been placing increased value on the learning from customer service operations. What sets apart the approach pioneered by the authors of this book is the fact that it is embedded in the work itself. This is not just a nice additional thing for people to do: it is at the center of the work. As a result, even some of the most routinised and hierarchical work – answering phones in a call center – has been transformed into a knowledge-driven work system.

This is not the only knowledge-driven work system of note. In manufacturing, the Lean Production systems at auto companies, aerospace companies, and others have produced astounding results through the nurturing and implementing of many thousands of improvement suggestions each year (in the leading facilities). In other sectors as well we find Lean Enterprise, Six Sigma, and other transformations that value knowledge as the engine driving continuous improvement. The authors’ work at Fujitsu has been proclaimed ‘the Toyota of service operations’. In the same way that Toyota fundamentally transformed our understanding of the flow and delivery ‘on demand’ of product, materials, and knowledge in manufacturing operations, the approach has transformed our understanding of the flow and delivery on demand of support, knowledge, and innovation in service operations.

The knowledge economy is much larger than the relative handful of expert jobs that are usually highlighted in the popular press. Virtually all types of jobs face the challenge of change in this new economy. Knowledge, skills and capability are at the core of the challenge. At issue is whether the change can happen in a way that is respectful of and even enthusiastic about the contributions of all workers. Taking such an approach makes good business sense. Indeed, anything less will not consistently deliver what customers want, when they want it, at the price they are willing to pay. Moreover, it is the right thing to do – for the workforce and for society.

Mar
07

Lean Transformation Sequence

Starting with a Blame free culture, allows reality to be seen, this in turn leads to trust, which leads to transparency which leads to the right actions, which leads to results.  That is the sequence….. Expecting business results and transparency first demonstrates ignorance of how to release the potential of people. – A bit like wanting to see the baby immediately after conception.

Jan
04

Re-post Sense and Respond Linkedin Discussion

Stephen Parry • Hope you all had a good Christmas and New Year, or a Happy Holiday which ever suits.

Thank you to all who outlined the proof your company looks for when trying to create a Sense and Respond Lean Enterprise.

I think the problem faced by most companies is they have usually already decided which KPIs they need to hit and want Lean to help them hit their existing targets.

However what we know from Sense and Respond Lean is that the company’s measurement system is usually the second problem which needs to be addressed – come to the first in moment- After all the measurement system reflects what the business thinks is important but the vast majority of company measures are usually based on mass-production thinking.

So we come to the first thing to be addressed and that is changing the company thinking from Mass-production theories to Lean Theories where the design of the measurement system (and ultimately the design of the whole company) is centred on Customers and Liberating Employee creativity and ingenuity to better serve them.

Most of you who have been involved in Sense and Respond know instantly when seeing a set of company KPIs the basic underlying theory and thinking behind the design and behaviour of the organisation, it’s from this point we must start thinking about the re-education entry points.

The Measures matrix on page 78 of the Sense and Respond book is a good place to start. Most people fill this matrix out thinking their measures are important to the customer and indeed work end to end.

Having done that the trick is to then walk the value stream together asking questions from both the customer’s and employee’s perspectives. Once completed ask them to do the same Measures matrix exercise again.

Usually the second time around most of the measures are placed in the ‘functional’ and ‘does not matter the customer’ – lower left quadrant.

There is usually a sharp intake of breath at this point, the point at which they realise they are measuring the wrong things, feeling pain about the wrong things i.e. waste pain. Its only from this point (new thinking) can we now have a discussion about what sort of measures need to have in the top quadrant i.e. ‘Matters to the customer’ and ‘ work end-to-end’

Some of you reading this will have had this experience, perhaps you can tell your own story on this subject.

Warm Regards Stephen.

Dec
05

How to Diagnose your Organisation to Chart your Lean Journey – Part 1 and 2

How do you design a lean transformation process across a large enterprise?

How to Diagnose your Organisation to Chart your Lean Journey – Part 1

How to Diagnose your Organisation to Chart your Lean Journey – Part 2

Dec
05

Workshop for Social Sciences Staff

I am looking forward to taking part in a debate on how researchers should engage leaders in industry. I will supply a follow up article after the event.

My Talk: The gap between management research and the world of business.

My Theme, Often the tenants of good research are not taught at management schools or included within management development programs. This results in the proliferation of pseudo-management approaches taking root within many large organisations. Being able to know the difference between what research teaches us and what businesses do needs to become a management core competency.

Workshop for Social Sciences Staff. 6th December Warwick University

Introduction

The need for academic researchers to engage with external organisations is more important than ever in terms of delivering research impact, gaining fieldwork access, and winning funding from non-traditional funding sources. This workshop has, therefore, been designed to provide useful tips and insights into the art of external engagement. To this end the following speakers will share their expertise and experiences with you:

 

Programme

 

12:00 – 12:40:              Arrival and lunch

12:40 – 12:50:              Welcome and introduction by Head of Faculty, Professor Christina Hughes

12:50 – 13:20:              Stephen Roper: Dimensions of Impact via External Engagement

13:20 – 13:50:              Stephen Parry: The gap between management research and the world of business

13:50 – 14:50:              External engagement workshop

15:00 – 15:30:              John Parkinson: The sense of betrayal in academic public engagement,

and how to get over it.

15:30 – 15:45.              Wash up

Biographies

Professor Stephen Roper

Stephen Roper is Professor of Enterprise and Director of the Centre for Small and Medium Enterprises (CSME) at Warwick Business School. Stephen is an economist with degrees from the University of Durham, Oxford University and LSE. He joined Warwick in 2008 having previously been Professor of Business Innovation at Aston Business School, Birmingham and earlier and Assistant Director of the Northern Ireland Economic Research Centre, Belfast.

Stephen has led over 50 externally funded research projects. He is currently working with OECD on the development of an innovation voucher scheme in Montenegro and an evaluation of the NESTA Creative Credits programme. Stephen has also consulted for OECD, DTI, BERR, Small Business Service, EMDA, AWM, Scottish Executive, Invest Northern Ireland, Forfas (Dublin), Enterprise Ireland, Northern Bank, InterTradeIreland, Department of Enterprise Trade and Investment (Belfast), Department of Education and Learning (Belfast), Royal Mail, and MoreThan4Business.

Stephen Parry

Stephen is a World leading authority and strategist on the creation of lean, adaptive organisations. He has applied adaptive learning principles to the design and operation of operations in Europe, Middle- East, Asia-Pacific, (including Japan, India, Australia, Philippines) and the USA. Clients include many global corporations and national governments: SAP, LEGO, BT, UK government, police authorities, financial services and shared services. His work has been covered in the Harvard Business Review and cited in numerous books and research papers. He is often interviewed on BBC Radio 4 and his work has featured in documentaries on National television BBC1 and Channel 4

 

Dr John Parkinson

John is Associate Professor of Public Policy in PAIS, University of Warwick. A specialist in democratic theory and public policy, and an occasional media commentator and advisor to the House of Lords Constitution Committee, John has a previous life as a public relations and management consultant.

Aug
16

Stephen Parry honoured to be speaking at:The Agile Lean Europe (ALE Network) Unconference Berlin 7th -9th September BOOK NOW

Stephen Parry Speaking at an event designed by engineers for engineers ALE2011 Berlin“Creating an Integrated ICT Value Stream Using Lean and Agile Thinking”

The IT function and Applications development organisations are well-placed to help organisations benefit fully from applying Lean principles. But success depends on aligning all the steps in the life-cycle value stream from definition, software development, deployment, support and retirement.
If you integrate Lean service and Agile development to support each other, you’ll be able to deliver the radical improvements in service, quality and development time that our current tough climate demands.

We need to understand that Agile and Lean thinking together completely and permanently transforms the nature of work throughout the Software Development and IT support functions.

Major application development companies have to re-think their whole approach to work design, roles and responsibilities and measurement. In addition they need to re-think their whole approach to change and those responsible for change.

 

 

 

The talk will cover:

  • new ways of working require new ways of thinking, especially management thinking.
  • we consider the implications of adopting a Lean strategy and the impact this has on process, decision-making and management
  • integrating Lean and Agile to make both scalable
  • ensuring change “sticks” through mutual reinforcement between customers, staff and management.

Main Messages to take away:

  • Demonstrate the value of IT and Software Development in business outcome and customer terms.
  • Learn to see what waste looks like in IT and Software development operations
  • Changing management thinking and perceptions.

 

Lean and Agile

 

ABOUT THE UNCONFERENCE Link

The Agile Lean Europe (ALE) network is an open and evolving network of people (not businesses), with links to local communities and institutes. It helps people in European countries by spreading ideas and growing a collective memory of Agile and Lean thinking. And by exchanging interesting people with diverse perspectives across borders it allows beautiful results to emerge.

It will be an amazing event, with diverse and innovative speakers and with participants from all around Europe. It will take place in a great city, Berlin, on September 7-9, 2011.

ALE2011 will focus on the sharing knowledge principles and Agile/Lean European networking. To reach its goals, the (un) conference organisation under the following format :

The mornings will be opened by an one hour keynote, followed by 30 minutes talks in a few tracks. In early afternoon, several lightning talks will be presented. The selection of the lightning talks will be done via a lottery among the lightning talks proposed by the each of the participants. The afternoons are dedicated to Open Space sessions. So be prepared to give your lightning talk, you might be selected. We encourage participants to come to Berlin with their families and therefore there will be an alternative “spouses and kids” programme organised for them in the mornings and the afternoons and evenings will be planned so that we can all spend time together.

On Friday morning in parallel with the sessions, a coding DoJo facilitated by Jon Jaegger will take place

Friday afternoon will be dedicated to the retrospective and closing keynote.

Each participant will do a lightning talk to introduce himself, his assets and first future action to contribute to the ALE Network.

Jul
25

Sense and Respond the Book: Compelling case for the relevance of Lean Services

Amazon.com book Review:

5 out of 5 stars July 12, 2011

By

Harold Shinsato (Stevensville, MT USA)
Amazon Verified Purchase
This review is from: Sense and Respond: The Journey to Customer Purpose (Hardcover)

As a software developer and agile coach, I found this book compelling and eye opening. The concepts of CORE (Creation, Opportunity, Reactive, External) demand and getting customer data that focuses on what is really relevant to not just what will satisfy the customer, but what will lead to customer success (customer purpose), gives much more helpful direction in guiding an overall lean transformation. All companies eventually must deliver a service to the customer, so lean services thinking is relevant to all businesses. And given the frequent focus on metrics and KPI’s in large companies (Key Performance Indicators), the authors provide clear guidance how to use metrics that give a holistic picture rather than provide fuel for wasteful actions in siloed departments.

My only complaint about the book is that it really is too short. There are exciting hints about the importance of systems theory, coaching and mentoring, and transformational leadership, but clearly 150 pages did not leave enough space to go in more depth. It was exciting to read about how to assist an organization to face up to real customer data, look at the waste, and make changes that would have been considered “impossible” in the normal day to day political reality of many organizations. I would have loved to have heard more about this.

I’ll also say that it does help to have some awareness of lean and agile concepts before diving into this book, though it’s not at all necessary – it does help to digest and understand why the information is so valuable.

Apr
24

Software development teams must change their approach, says Lean expert

Get the Agile method right

Stop Cherry Picking Agile

Press Release 20th April 2011

Hot on the heels of the release of the government’s ICT strategy (30 March), in which the government announced its plans for applying Lean and Agile methodologies, Lean expert Stephen Parry has called for software development teams to take a more ‘joined up’ approach to software delivery to avoid damaging the reputation of Lean and Agile.

With more and more software development companies adopting Agile methodologies (an approach to building software based on incremental developments and regular evaluation), Stephen is concerned that many organisations are merely ‘practising’ at being Agile and are ‘cherry picking’ the easier-to-implement or more attractive elements.

On top of that, says Stephen, these companies often see Agile as a stand-alone process and are separating Agile from its Lean roots.  And despite the fact that both Lean and Agile promote cross functional working, the various departments within these companies don’t know what each other are doing.

Stephen, who is ICT and Service strategic advisor to the Lean Enterprise Institute and CEO of business transformation company, See Business Differently, recently ran a seminar with Agile expert, Grant Rule, to address these very issues.

Entitled, ‘Creating an integrated ICT value stream using Lean and Agile thinking’, the seminar explored the nature and application of Lean and Agile in their truest forms and advocated an Agile software development process which is seamlessly integrated with the Lean support and Delivery process.  Failure to do this, it was said, causes havoc for the business and customers.

“Lean is based on the principle of creating true value for the customer and meeting his real, rather than perceived, needs,” said Stephen, “Without Lean delivery and Agile development, software development companies cannot hope to produce software that is completely client led and relevant to the fast changing IT market.

“Lean and Agile are completely compatible and should be the perfect marriage.  But a perfect marriage means working together in harmony – at the moment, companies are allowing fractured departments to create a fractured relationship between Lean and Agile, ushering the two towards divorce!”

ENDS

Notes to Editors

To interview Stephen Parry or for further information, please contact:

Michelle Drapeau, PR Executive, on +44 (0) 1525 237599

OR

Stephen Parry direct on +44 (0) 7838 114997

 

Facts about Stephen Parry

  • Stephen Parry is a leading expert in the fields of Lean organisational design and transformation and Lean leadership.
  • He is author of the book, “Sense and Respond: the journey to customer purpose”, which presents an approach to business based on Lean Service Principles.
  • Clients include SAP, BT, Local Government, police authorities, financial services, TNT.
  • Stephen speaks regularly at international events and respected business schools such as Cranfield School of Management and the Fisher Business School at Ohio University.  He is a Faculty Member of the USA Lean Enterprise Institute, visiting Fellow at the Professor Dan Jones Lean Enterprise Academy in the UK and a regular judge at the national business awards.
  • He has been interviewed on Radio 4 and featured in documentaries on BBC1 and Channel 4.

Mar
05

Delivering to specification vs. delivering to purpose

Extract from Sense and Respond: The Journey to Customer Purpose (MacMillan 2005) Stephen Parry.

Customer Value Principles Continued:

Comparing the activities and behaviours you would find in a mass-production environment with those found in a Customer Value Enterprise® (Lean Enterprise)

Delivering to specification vs. delivering to purpose
In the mass-production world, the business delivers to a contract or to specification, and endeavours not to deviate from that. In the Customer Value Enterprise® (Lean Enterprise), continuous value creation accepts that customer purpose is constantly changing and that contracts can’t keep up: instead of delivering what was specified, you need to deliver what matters. Construct your whole proposition to the marketplace around continuous value creation, and continually change your products and services to meet that proposition.

Traditional contracts and specifications can never keep up with changing customer needs. Although specifications may still be helpful in manufacturing, they will tend to constrain the delivery of services. Instead of working to a specification or contract, and defining itself by the products or services it delivers, it is better for a service organisation to define itself in terms of the value it creates. This basis leaves the organisation free to experiment and to innovate with new products and services.

Increasing Variety is not the same as on-demandThis should not be confused with Mass-customisation which is an assemble to order or Flexible specialisation in a mass-production world, nothing much changes its just a more sophisticated means of controlling customers.

It is not about being flexible by offering variety as in mass-customisation it is about responding quickly to customer purpose. In the mass-customisation world, the organisationis still in control; in the Customer Value Enterprise®, the customer is in control.

More Customer Value Principles to follow soon.

©Stephen Parry 2010 All rights reserved.

Jan
04

Important Lean Mis-Conceptions Busted

 

Lean is not Magic It's good honest hard work

Important Lean Mis-Conceptions Busted.

Lean Myths and Realities

1. You won’t find Lean in the tools and methods.

Lean benefits are not found in the tools, although you will use tools to help you on your lean transformation.  There are thousands of lean tools, because each problem requires its own unique tool to help solve it.  You won’t really be able to do lean with generic tools, you’ll have to devise and adapt your own tools – for that you need scientific and critical thinking skills coupled with an understanding of Lean principles. Basically you have to learn to THINK differently and see your customers and business differently, that’s people development, not tools development.

2. Lean is not about optimising waste is about optimising value.

This is one of the hardest things about getting started with Lean.  Lean will require you to take a radically different view of the work you are doing. Almost certainly, much of what you are doing now is not really work, it’s waste. Processing the waste faster, or more effectively isn’t  Lean. All you get with that is Cheaper, Neater Faster, Waste. = Madness.  Your current thinking prevents you from seeing the high levels of real waste, which is caused the way you  previously designed the work.

3. Lean is not about managers fixing everything it’s about the staff owning and solving problems.

As a manager in a lean organisation, your role will be very different from one in a more traditional organisation.  Your job is not to know the answers.  Your job will be one of supporting the people who are doing the work to gather information about what is really going on.  You’ll also need to know how to look for what’s really there, and present this information without varnish to other managers and staff.  You may have to build a very different culture for your organisation.

4. Lean is not only about processes it’s about the whole service model.

Processes link the systems, performance and structure of your organisation.  Process improvement is a good thing, but not the whole story.  Companies often use processes to ‘wire-up’ their organisation like the wiring in an automobile, but hasn’t the time has come to trade in your old Model T Ford? it will not go any faster even with new wiring. Making improvements to processes alone will not yield the fundamental transformation that Lean can deliver.

5. Lean not about efficiency at all costs it’s about effectiveness at the right cost.

This is one of the biggest myths that  Lean needs to overcome.  Lean isn’t about cutting costs and doing things faster, although cost reductions and service improvements will result from a Lean transformation. Lean focuses on  the customers purpose. In a Lean organisation you won’t be focused exclusively on measures like first time fix, or time average resolution time or whatever.  You’ll know what the customer values, and you will be looking at the evidence that shows you how you are helping your customer achieve their goals.

These notes are from a recent Sense and Respond Lean in IT workshop in London with Stephen Parry.

Dec
28

Fourth Generation Management: Brian L. Joiner. Book Review by Stephen Parry

Brian L. Joiner

I recommend this book for practitioners working with Lean, Systems thinking or general operational improvement.

There are a many reasons why I like this book, it has some memorable insights and phrases. Such as `don’t work on costs, work on the causes of costs’.

Joiner also highlights how most managers manage their business without any theory behind their actions.. `We should be thankful if the action of management is based on theory…’

Joiner relentlessly pushes the notion that organisations must be `understood and managed as a `system’, while developing process thinking, making decisions on customer data and understanding the theory of variation’.

He then goes on to say that the typical management response to calls for improvement is to either 1) distort the system or 2) distort the figures instead of improving the system.

START AT CHECK.

Most people in the world of operational improvement will have come across the Deming PDCA (Plan Do Check Act) cycle, Joiner explains and supports this process very well but he adds a significant insight, what he says is, that when starting to make improvements you must start at CHECK, in fact he devotes a whole chapter to this important variation on Deming’s PDCA theme.

`Performing check is what most organisations fail to do. Check uncovers things we would just as soon not know, it forces us to look at the huge wastes in each of our activities and exposes it all, and the non productive or plain stupid things we have unknowingly been doing for years. It creates the gut level energy to do a better job of taking Action, of Planning and Doing’.

Joiner states that `a fundamental tenant is that nothing happens in a predictable, sustainable way unless you build mechanisms that cause it to happen in a predictable sustained way’

He talks about listening to management conversations for insights into the organisations real intent and focus he says … `The way top management spends its time and the questions they ask of each other and the rest of the organisation is critical in determining the focus of the organisation.’

The book goes on to explain how to reduce process variation, the sections about how managers respond to variation would be amusing if they were not real, i.e. how managers work on the people instead of working on the system and the injustice that results in addition to the loss in organisational performance.

THE ORIGINAL BANK TELLER STORY

A good example of system variation resulting in perverse decisions and behaviour is illustrated by an example Joiner uses in telling a real story about a bank teller, who on several occasions got rewarded for her performance and at other times chastised….finally, she was unlucky enough to loose her job. Later, when talking to a friend she said that she never understood why she being praised because she hadn’t done anything different and likewise the chastisement. Further conversation revealed that she had been a victim of system variation, the performance factors were attributed to her and not where they should have been that is to the system in which she worked. Essentially she had lost the Variation Lottery. He quotes Dr. Lloyd Nelson `failure to understand variation is the central problem of management’

Joiner also wallops the inappropriate use of standards (accreditation schemes like ISO and BSI) because they are a barrier to improvement and creativity. He argues that standards far from improving the organisation often result in a loss of performance. `They stifle creativity, deflect attention from customers, increase red tape and make work inflexible, while providing only the minimum acceptable outputs’

When it comes to people motivation he states that `to optimise the organisation as a whole, intrinsic motivation works better than rewards and punishment’

Finally he states that in order to get `better results you must have better methods’ and he goes on to explain what those methods are.

This is a fine book, with excellent practical ideas as long as you see people as an asset capable of improving their own workplace and not as a cost to be `managed’.

There are a number of people passing off Joiners work as their own without reference to Joiner, and they do it in a much more truculent way.  So please go to the original source which is Joiner. Its much, much better.

‘Dr. Joiner has made a significant contribution to the advancement of Deming theory with Fourth Generation Management. Elegant theory is shown in practice, providing examples that will stay on your mind as points of reference for years to come.’ Customer review on Amazon.

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