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Sense and Respond Trust Strategy Organizational Change Lean Agile
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All TradeMarks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All TradeMarks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. Stephen Parry Author of Sense and Respond Senior Partner at Lloyd Parry [email protected] www.lloydparry.com Linkedin Twitter @leanvoices All sources, influences, acknowledgements and reading lists can be found our blog at www.leanvoices.com Creating the right culture for Agile and Lean is not the real problem. For more on his #ale14 keynote, here's the talk he made reference to http://vimeo.com/98731491
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Page 1: Trust Ale 2014 Krakow Parry Public

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

Stephen ParryAuthor of Sense and RespondSenior Partner at Lloyd Parry

[email protected]

LinkedinTwitter @leanvoices

All sources, influences, acknowledgements and reading lists can be found our blog at www.leanvoices.com

Creating the right culture for Agile and Lean is not the real problem.

For more on his #ale14 keynote, here's the talk he made  reference to  http://vimeo.com/98731491

Page 2: Trust Ale 2014 Krakow Parry Public

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

Our journey together.

• What is a ‘Work‐Climate’ and why is it important for the business?• Creating Choice, Freedom and the Power to do.• Trust only comes after you have done the hard work of becoming 

trustworthy.• Moving from ‘Direct‐and‐Control’ to ‘Listen‐and‐Adapt’• Engaging, Learning, Leading and Improving.• Pretence, Reality and Cost.• Leadership at all Levels.• Asking the right questions.• Are methods more important than the underlying theory?

• References and Sources.

Page 3: Trust Ale 2014 Krakow Parry Public

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

Purpose is your passion, Vision is the world you wish to create, 

Strategy is how you get there, Tactics ensure you survive the journey

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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

LeadershipCourage

V{tÄÄxÇz|Çz

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

Trustworthiness VâáàÉÅxÜ câÜÑÉáx

Page 5: Trust Ale 2014 Krakow Parry Public

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

All Leaders have to be authentic.Reciprocity

• Reciprocity is considered as a strong determining factor of human behaviour.

• Even if the consequences are the same, underlying intentions can cause an action to be reciprocated differently.

• Even if staff are treated well a good work climate may not necessarily result.

• Employees need a work climate that fosters participation, autonomy, work improvement, end‐to‐end understanding and interdepartmental support.

Service Climate and Customer Intelligence Workers. Parry and Fisher (2006)

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All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

Wherever you find a loss of choice, freedom and the power to do what 

matters, there too you will find the need for Leadership

Page 7: Trust Ale 2014 Krakow Parry Public

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

Choice

Freedom

Power

Performance is a matter of people having

which is a matter of

with the     Performance Measures

Leadership 

Is your organisation a hindrance to employees, managers and customers? So how do we create an 

Adaptive, Learning,Organisation?

to do what matters to serve the customers purpose

Role Design

Processes, Procedures and Methods

Climate

All Trade‐Marks and ©Copyright 2013 Owned by Lloyd Parry. All Rights Reserved. 

Page 8: Trust Ale 2014 Krakow Parry Public

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

You get the behaviour you design for, or fail to design for. It's your choice

Page 9: Trust Ale 2014 Krakow Parry Public

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

Transformation objective and expectation

Base-Line Current Performance

Perf

orm

ance

New performance falls short of expectations

Tools and Methods for improvement

Adaptive, Learning and Trusting Work ClimateEngaging andunderstanding

Learning and Sharing

Leading and Decision Making

Improving andChanging

WorkDesign Measurement Behaviour

Perspective

Page 10: Trust Ale 2014 Krakow Parry Public

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

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

Page 11: Trust Ale 2014 Krakow Parry Public

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

Do staff routinely share customer and business information with senior management?

Do staff 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

Page 12: Trust Ale 2014 Krakow Parry Public

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

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

Page 13: Trust Ale 2014 Krakow Parry Public

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

Good leaders at all levels reserve the right to be wrong and change their minds in the light of new 

evidence. That's strength not a weakness. 

Page 14: Trust Ale 2014 Krakow Parry Public

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

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

Page 15: Trust Ale 2014 Krakow Parry Public

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

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

With acknowledgement to Landmark Education and the Landmark Forum

Page 16: Trust Ale 2014 Krakow Parry Public

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2014 Lloyd Parry. All rights reserved

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‐esteemFutility.No fulfilment.Withdrawing.No fun.Loss of honestyLoss of integrity.Loss of repeat business.Customer dissatisfaction.Little or no innovation.Cynicism.Missed opportunities.Fear of being found out.

With acknowledgement to Landmark Education and the Landmark Forum

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All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2013  Training Material, All rights reserved Service Climate Management Ltd

Questions and statements to Blame and Command 

You raised the problem so you should fix it.Look! If I were you I would do this.So what are you going to commit to?In my opinion…Why did you do that?Don't involve other departments.Leave that to me I will go and find out for you.I would advise you to….Have you escalated this?Why can’t you tell me?My experience tells me….What does your experience tell you?What is your gut feeling?Who’s fault is it?You had better get that sorted.

A3 THINKING DOES NOT BLAME OR COMMAND

PEOPLE

Page 18: Trust Ale 2014 Krakow Parry Public

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2013  Training Material, All rights reserved Service Climate Management Ltd

Questions for grasping the situation and exploring the current conditions 

Why are we talking about this?What is the purpose?Why is it a problem? When did this problem occur?How long has this been going on?What did you observe?What did you make it mean?What else could it mean?What assumptions are you making?What evidence do you have?What evidence do you need? How can you find out?What outcomes are you seeking?Where would you need to go?Whom would you need to talk to?How is it affecting you?How is it affecting the customer?Who else is this affecting?How does this make you feel?

Page 19: Trust Ale 2014 Krakow Parry Public

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

What does Agile and Lean mean for the organisation, leaders, managers and staff?

• Organisation.– Consider the measurement and governance 

systems– More rigorous Continuous Improvement 

structures– New operational performance measures– New operating model may be required– Work Design implications

• Leaders– Might be assigned to end‐to‐end 

accountabilities for particular value creating activities.

– Encourage fail‐safe experimentation– Encourage more questioning from managers 

and staff– Create a blame‐free culture– Have patience

Page 20: Trust Ale 2014 Krakow Parry Public

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

What does Agile and Lean mean for the organisation, leaders, managers and staff?

• Managers– Operational review processes– Visual Management– A3 thinking coaching– Performance review re‐focus– Promote a blame free culture.– Planning time for improvement– Encourage staff to question

• Staff– A3 thinking problem solving– Question, seek evidence– Learn a number of general Lean 

improvement methods and role specific Lean methods

– Learn more about other functions and how they operate.

– Learn to trust management.

Page 21: Trust Ale 2014 Krakow Parry Public

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. ©Copyright 2013  Training Material, All rights reserved Service Climate Management Ltd

Methods may come and go but the principles for engaging the willing 

contribution, ingenuity and commitment of others is 

timeless.

Performance is not in the methods it’s in the People

Page 22: Trust Ale 2014 Krakow Parry Public

All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

Choice

Freedom

Power

Performance is a matter of people having

which is a matter of

with the     Purpose and possibility

Leadership  without position 

Your organisation is no longer a hindrance to employees, managers and customers.

Creating an Adaptive, Learning, Organisation.

Visualisation and Measurement

Willing contribution

Climate

All Trade‐Marks and ©Copyright 2013 Owned by Lloyd Parry. All Rights Reserved. 

to do what matters to serve the customers purpose

Page 23: Trust Ale 2014 Krakow Parry Public

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Useful References

Service Climate and Customer Intelligence Workers by Parry and Fisher. Managing to Learn by John Shook (A3 thinking Book)

Adaptive Enterprise by Stephan HaeckelFourth Generation Management by Brian Joiner.

Landmark Education and the Landmark Forum  www.landmarkworldwide.comThe Human Side of Enterprise by Douglas McGregor

Lean Solutions by James P. Womack and Daniel T. JonesMaslow  on Management by Abraham H. Maslow

Principles of Mass and Flow Production by Frank G. WoollardSystems Thinking: Managing Chaos and Complexity: A Platform for Designing Business Architecture by Jamshid Gharajedaghi

Service Quality by Benjamin Schneider and Susan S. White

For more on the topic of @LeanVoices' #ale14 keynote, here's the talk he referred to http://vimeo.com/98731491

Sense and Respond:  The Journey to Customer Purposeby Stephen Parry, Susan Barlow, and Mike Faulkner

www.lloydparry.com www.lloydparry.com/newsletter

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About Stephen Parry

Stephen Parry is an international leader and strategist on the design and creation of adaptive enterprises. He has a world‐class reputation for passionate leadership and organisational transformation by changing the way employees, managers and leaders think about their business and their customers.

He is the author of Sense and Respond: The Journey to Customer Purpose, a highly regarded book written as a follow‐up to his award‐winning organisational transformations. His change work was recognised when he received Best Customer Service Strategy at the National Business Awards. The judges declared his strategy had created organisational transformations which demonstrated an entire cultural change around the needs of customers and could, as a result, demonstrate significant business growth, innovation and success.

Stephen believes that organisations must be designed around the needs of customers through the application of employee creativity, innovation and willing contribution. This was recognised when his approach received awards from the European Service Industry for the Best People Development Programme and a personal award for Innovation and Creativity. Stephen has since become a judge at the National Business Awards and the National Customer Experience Awards. He is also a Fellow at the Lean Systems Society.

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All Trade‐Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade‐Marks and ©Copyright 2014 Owned by Lloyd Parry. All Rights Reserved. 

TM

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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.

© 2014 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 may access through the use of hot links contained in these materials and does not endorse your use of third‐party Web pages nor provide any warranty whatsoever relating to third‐party Web pages.


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