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New forms of adaptive organisational workforces: Creating adaptive, learning and engaging places to work.
Stephen ParryAuthor of Sense and Respond
Owner and Senior Partner at Lloyd ParryTwitter @Leanvoices
www.lloydparry.com
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Dr Gary FisherOrganizational Psychology Research
into Service and Work Climates
Now Research Development OfficerUniversity of Warwick
• The research explored how climate perceptions and affective reactions at the organizational, team and individual level influenced service performance via the use of Social Exchange Theory and the concomitant Rule of Reciprocity.
• The data set was gathered via a large scale (127 organizations and over 3000 employees) quantitative survey and was analyzed via Confirmatory Factor Analysis and Structural Equation Modelling.
• The proposed Psychological Process to Performance Model was tested via a series of competing nested models.
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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
PredictabilityLong-term profitability.Work outcomes.Employee performance.Job satisfaction.Customer perceptions of service quality.Quality improvements.Commitment.Absenteeism and turnover.Organisational adaptability.
Work-Climate: Thinking Feelings and Behaviour of Customers, Employees, Managers and Leaders
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On-Line Data Collection
Data CleansingValidity testing (Factor Analysis)
Correlation Matrix AnalysisRegression AnalysisConfirmatory Factor AnalysisStructural Equation Modelling
Climetrics® Landscape categorisation
Statistical data - InterpretationTriangulation with on-site workshopsExecutive Summary
Climetrics® Analysis MethodologyClimetrics ® Statistical Analysis Process
Respectful
Collaboration
PerformanceManagement
And Measurement
Innovating ideas for customers
Sharing Intelligence with the team
Gathering customer intelligence data
Freedom and decision making
Employee influence on products and services
Leadership
Courage
Challenging
How well we respond to customers
Sharing Intelligence Across the function
Sharing Intelligence with top/senior
management
Employee influence on other functions
Employee influence on managing practices
Employee influence on end-to-end processes
Organisational Understanding
TrustworthinessCustomer Purpose
ServiceClimate
AndPerformanceCLIMETRICS®
™
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Does the job design allow all staff to engage with customers and users?
Is everything forbidden unless permitted,
or
Is everything permitted unless forbidden?
ENGAGING
™
WorkClimate
DeterminesPerformance
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Do staff routinely share customer and business information with senior management?
And do they
Routinely collaborate and problem solve with senior and mid-managers?
What is the management focus? - employee utilisation, cost reduction and work intensification
or, Creativity, customer outcomes, problem solving, learning and sharing knowledge, collaboration?
LEARNING
™
WorkClimate
DeterminesPerformance
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Do Leaders foster a no-blame climate to surface problems for teams to work on?
Do leaders pay 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?
Do we exchange opinions or
Exchange facts supported with evidence?
LEADING
™
WorkClimate
DeterminesPerformance
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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?
Are staff free to choose the methods they will use to improve the business?
Do staff understand the underlying theories of the methods they use?
Are staff encouraged to run fail safe experiments?
IMPROVING
™
WorkClimate
DeterminesPerformance
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Climate Science: The questions being asked.
Improving
MEmployee influence on products and services
NEmployee influence on managing practices
OEmployee influence on other functions
PEmployee influence on end-to-end processes
Leading
IPerformance management
J Adaptive leadership
KResponding to customer issues
LImplementing ideas to better serve customers
Engaging
AFreedom and decision making
B Customer facing activity
CCustomer intelligence gathering
DSharing intelligence with the team
Learning
EOrganisational understanding
FSharing intelligence across the function
GSharing intelligence with other functions
HSharing intelligence with top/senior management
Weak Standard Excellent
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.
Navigator Suite ™ Landscapes
Climetrics® Landscapes
CHARACTER OFFERINGSCUSTOMER EXPERIENCE
EMPLOYEE EXPERTISE
IMPROVEMENT RESPONSIBILITY
MANAGEMENT FOCUS
COMPETITIVE BASIS
LEADERSHIP FOCUS
Customer ValueEnterprise ®
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 experimentationand Learning
Creativity, expertise, new products and services.
Customer outcomes.Problem Solving
Trusted advisor and expert
Integration
Business Outcomes
Listen and adapt
The DepartmentStore
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 Transactionaland Processed
No customer involvement in solution design
Basic ImprovementBoards
ImprovementSpecialists
SuggestionSchemes
Employee utilisation, cost reduction, work intensification.
Commoditised
High Volume
Low Margins
Economies of Scale
Command and Control
MassProduction
MassCustomisation
MassSpecialisation
MassAdaptation
Weak MassProduction
MassCustomisation
Customer Value Enterprise®
MassSpecialisation
WeakE
nga
gin
gLearn
ing
OrganisationalUnderstanding
Sharing intelligence within the function
Sharing intelligence with other functions
Sharing intelligence with senior managers
Autonomy
Customer facing activity
Intelligence gathering
Sharing team intelligence
Lead
ing
Imp
rovin
g
Customer Value Enterprise®
MassSpecialisation
Weak Weak MassProduction
MassCustomisation
PerformanceManagement
Leadershipapproach
Responsiveness to customer issues
Implementing ideas to better serve
customers
Employee influence on improving service
Employee influence on work practices
Employee influence on other functions
Employee influence on end-to-end
processes
Global IT and Applications Company: Before Transformation
Climetrics®Towards Listen and Adapt Towards Direct and Control
Global IT and Applications Company: After Transformation
Climetrics®Towards Listen and Adapt Towards Direct and Control
Weak MassProduction
MassCustomisation
Customer Value Enterprise®
MassSpecialisation
WeakE
ng
ag
ing
Learn
ing
OrganisationalUnderstanding
Sharing intelligence within the function
Sharing intelligence with other functions
Sharing intelligence with senior managers
Autonomy
Customer facing activity
Intelligence gathering
Sharing team intelligence
Leadin
gIm
pro
vin
g
PerformanceManagement
Leadershipapproach
Responsiveness to customer issues
Implementing ideas to better serve
customers
Employee influence on improving service
Employee influence on work practices
Employee influence on other functions
Employee influence on end-to-end
processes
http://www.amadeus.com/documents/lean-it/Amadeus_Lean_IT.pdf
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References , influences and acknowledgements.Book Sense and Respond: The Journey to Customer Purpose. Parry, Barlow, Faulkner (Palgrave Macmillan)
Landmark Education and the Landmark Forum www.landmarkworldwide.com
The Human Side of Enterprise Douglas McGregor Annotated and Updated by Joel Cutcher-Gershenfeld
Beyond McGregor’s Theory Y: Human Capital and Knowledge-Based Work in the 21st Century Organization Kochan, Orlikowski, Cutcher-Gershenfeld http://mitsloan.mit.edu/50th/pdf/beyondtheorypaper.pdf
Service Climate and Customer Intelligence Workers. Parry and Fisher (2006)
The Essential Deming. Leadership Principles. Orsisni (McGraw Hill)
Reciprocity Definitionhttp://en.m.wikipedia.org/wiki/Reciprocity_(social_psychology)
Reciprocity An Economics of Social Relations.Kolm (Cambridge)
Service Quality Research Perspectives.Schneider, White (Sage)
For extensive list of acknowledgements, influences and references go to www.leanvoices.com and for Sense and Respond go to www.lloydparry.com
Achieving Change
TM
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.
© 2015 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.
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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® Survey: Telco before and after highlights
Local Government: Two-year transformation
Navigator Suite ™ Route-Maps