ahri vic od webinar cooperative workplaces by design...• mitigation costs are hidden • health,...

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Cooperative Workplaces by Design AHRI VIC OD Webinar Peter Aughton Phil Volkofsky

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Page 1: AHRI VIC OD Webinar Cooperative Workplaces by Design...• Mitigation costs are hidden • Health, workforce motivation and business performance suffer • Design Principle 2 drives

Cooperative Workplaces by Design

AHRI VIC OD Webinar

Peter Aughton

Phil Volkofsky

Page 2: AHRI VIC OD Webinar Cooperative Workplaces by Design...• Mitigation costs are hidden • Health, workforce motivation and business performance suffer • Design Principle 2 drives

The context

2

• 50 billion IoT devices connected in 2020

• 14% Engagement in A & NZ Workforces

• 100 Degrees F in Siberia last month

• COVID-19 – 12.4m cases ; 560K deaths

• Australia recession

• Next Quarter GDP (- 8%) Women –

long term impacts

Organization

Industry

Learn

Extended

Environment

Plan, Do

A highly uncertain and rapidly shifting environment

AHRI : Peter Aughton and Phil Volkofsky 2020

Page 3: AHRI VIC OD Webinar Cooperative Workplaces by Design...• Mitigation costs are hidden • Health, workforce motivation and business performance suffer • Design Principle 2 drives

The organisationchallenge

Extreme challenges to viability

1. To improve customer experience and market share with severe price competition from China.

2. To retain a global airline customer services contract for ongoing sustainability

3. To reform the care business model to deliver better care with reduced financial resources.

3

The design challenge

1. Mixed mode of teams ,traditional bureaucracy and a disempowered workforce.

2. Services that cut across technical silos demanded new ways of working. Teams attempted were not scalable.

3. The supervisory model reduced time for care and increased direct and indirect costs.

AHRI : Peter Aughton and Phil Volkofsky 2020

Page 4: AHRI VIC OD Webinar Cooperative Workplaces by Design...• Mitigation costs are hidden • Health, workforce motivation and business performance suffer • Design Principle 2 drives

4

The Intrinsic Motivators

Elbow room Learning on the job Variety

Mutual support and respect

Meaningfulness Desirable future

AHRI : Peter Aughton and Phil Volkofsky 2020

Page 5: AHRI VIC OD Webinar Cooperative Workplaces by Design...• Mitigation costs are hidden • Health, workforce motivation and business performance suffer • Design Principle 2 drives

AHRI : Peter Aughton and Phil Volkofsky 2020 5

Design Principle 1 - The Traditional Organisation

Page 6: AHRI VIC OD Webinar Cooperative Workplaces by Design...• Mitigation costs are hidden • Health, workforce motivation and business performance suffer • Design Principle 2 drives

Competitive by design

• We must better our competitors

• Management must keep unions at bay to prevent cost blow outs

• Who are the best individuals, who stands out by achieving their individual targets

• Careers are founded on beating others to the next promotion

• Personal success is my ability to outshine my colleagues in the EYES of my manager.

• If there is bad news don’t pass it up

• Self interest is served through internal competition

6AHRI : Peter Aughton and Phil Volkofsky 2020

Page 7: AHRI VIC OD Webinar Cooperative Workplaces by Design...• Mitigation costs are hidden • Health, workforce motivation and business performance suffer • Design Principle 2 drives

7

Design Principle 2 - The Team based Organisation

Page 8: AHRI VIC OD Webinar Cooperative Workplaces by Design...• Mitigation costs are hidden • Health, workforce motivation and business performance suffer • Design Principle 2 drives

Cooperative by design

• Brown field design or start up design includes team members working on the design of their own work

• Cooperation with team members and other teams is supported through process ownership

• Holistic Goals are negotiated with other functions

• Problems of team performance or progress are solved by the team members

• Self Interest is served through cooperation

8AHRI : Peter Aughton and Phil Volkofsky 2020

Page 9: AHRI VIC OD Webinar Cooperative Workplaces by Design...• Mitigation costs are hidden • Health, workforce motivation and business performance suffer • Design Principle 2 drives

Webinar Participants Questions

AHRI : Peter Aughton and Phil Volkofsky 2020 9

Page 10: AHRI VIC OD Webinar Cooperative Workplaces by Design...• Mitigation costs are hidden • Health, workforce motivation and business performance suffer • Design Principle 2 drives

Organisational Redesign Case Studies

MANUFACTURING TELECOMMUNICATIONS DISABILITY CARE

AHRI : Peter Aughton and Phil Volkofsky 2020 10

Page 11: AHRI VIC OD Webinar Cooperative Workplaces by Design...• Mitigation costs are hidden • Health, workforce motivation and business performance suffer • Design Principle 2 drives

Manufacturing To compete with low-cost imports from China, a Queensland-based manufacturer redesigned its organisational structure from DP1 to DP2.

11AHRI : Peter Aughton and Phil Volkofsky 2020

Page 12: AHRI VIC OD Webinar Cooperative Workplaces by Design...• Mitigation costs are hidden • Health, workforce motivation and business performance suffer • Design Principle 2 drives

Manufacturer Design Principle 1-Traditional Structure

Plant ManagerAdmin Assistant

OperationsSupervisor

Site Engineer

DistributionSupervisor

QA Admin

QA Tech

Night ShiftOperators

Aft. ShiftOperators

Day ShiftOperators

Leading Hands(D/S, A/S, N/S)

Electrical Engineer

Fitters

MaintenanceEngineer

DistributionOperators

Supply Operator/RM

Quality LossController

12

Silos

Peter Aughton AMERIN 2020

Page 13: AHRI VIC OD Webinar Cooperative Workplaces by Design...• Mitigation costs are hidden • Health, workforce motivation and business performance suffer • Design Principle 2 drives

Manufacturer Design Principle 2 –Team Structure

Management Team

Materials

Distribution

Team

Maintenance

Team

Plant priorities and Goals

G G

13

Production Teams

GAft.DayNight

Planning horizon 1

Planning horizon 2

Planning horizon 3

Peter Aughton AMERIN 2020

Page 14: AHRI VIC OD Webinar Cooperative Workplaces by Design...• Mitigation costs are hidden • Health, workforce motivation and business performance suffer • Design Principle 2 drives

Telecommunications

Australian Telco was about to lose a major customer.

We established a virtual DP2 Managed Network Services company to dramatically improve customer experience.

Within 18 months MNS Co. was awarded preferred supplier status by their global airline customer

14AHRI : Peter Aughton and Phil Volkofsky 2020

Page 15: AHRI VIC OD Webinar Cooperative Workplaces by Design...• Mitigation costs are hidden • Health, workforce motivation and business performance suffer • Design Principle 2 drives

Telco virtual transformation concept

15

TELE

SERVICE

SALES

SDN

ISDN

WAN

Strategy Team

Operations Support Team

Operations teams

Planning horizon 1

Planning horizon 2

Planning horizon 3

Peter Aughton AMERIN 2020

Page 16: AHRI VIC OD Webinar Cooperative Workplaces by Design...• Mitigation costs are hidden • Health, workforce motivation and business performance suffer • Design Principle 2 drives

WAN

ISDNTeleservice

GCSC

GDNSDN

Co-located specialist skills

Telco Design Principle 2 - Customer Care Team Structure

16

G Global Airline Management Team

(GMT)

Response TeamInternal Support

Team with Customer

G

Planning horizon 1

Planning horizon 2

Planning horizon 3

G

This structure was replicated for other major customers e.g. banking

Peter Aughton AMERIN 2020

Page 17: AHRI VIC OD Webinar Cooperative Workplaces by Design...• Mitigation costs are hidden • Health, workforce motivation and business performance suffer • Design Principle 2 drives

Disability Care

A national silo-based culture

Increasing costs and low cooperation

A new customer centred funding model.

• Several thousand employees

• Many different geographies

• Working in offices and remotely

• Clients whose care needs change over time

A HR led transformation project changed the organisational structure from DP1 to DP2

17AHRI : Peter Aughton and Phil Volkofsky 2020

Page 18: AHRI VIC OD Webinar Cooperative Workplaces by Design...• Mitigation costs are hidden • Health, workforce motivation and business performance suffer • Design Principle 2 drives

Disability CareDesign Principle 1- Traditional Structure

S1S1

S2

S3

S2

TAS VIC

X 40

S3

S2 S2 S2 S2

X 4

X 15

CP

X 11

CP

SL

S2

CP

Remote IS CarersAccommodation, Day & Remote IS Carers

CP

X 28

18Peter Aughton AMERIN 2020

Page 19: AHRI VIC OD Webinar Cooperative Workplaces by Design...• Mitigation costs are hidden • Health, workforce motivation and business performance suffer • Design Principle 2 drives

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Planning horizon 1

Planning horizon 2

Planning horizon 3

TAS & VIC

G

Melbourne South West Individual SupportX 21

SL

Accommodation, Individual Support & Day Carers – remote and in-person staff

CPs CPs CPs CPsSS CPs

Melbourne North East Individual SupportX 15

Hobart & Melbourne Specialist SupportX 10

TAS NW Accom and Individual SupportX 14

Hobart Accom and Individual SupportX 22

Tasmanian Day programX 26

GG GGG

G

Disability CareDesign Principle 2-Team Structure

Peter Aughton AMERIN 2020

Page 20: AHRI VIC OD Webinar Cooperative Workplaces by Design...• Mitigation costs are hidden • Health, workforce motivation and business performance suffer • Design Principle 2 drives

Summary

AHRI : Peter Aughton and Phil Volkofsky 2020 20

• Traditional design drives competition and domination• Control and coordination is centralised• Mitigation costs are hidden• Health, workforce motivation and business

performance suffer

• Design Principle 2 drives system wide cooperation• Control and coordination is decentralized • Strips out unintended costs • Health , motivation and productivity improve

dramatically

Our operating context continues shifting dramatically

Page 21: AHRI VIC OD Webinar Cooperative Workplaces by Design...• Mitigation costs are hidden • Health, workforce motivation and business performance suffer • Design Principle 2 drives

Thankyou

• Peter Aughton, Director

• Amerin

• M: +61 (0)409415956

[email protected]

• Phil Volkofsky

• Brakten

• M:+61 (0)40008472

[email protected]

Page 22: AHRI VIC OD Webinar Cooperative Workplaces by Design...• Mitigation costs are hidden • Health, workforce motivation and business performance suffer • Design Principle 2 drives

AppendixTypical stakeholders

Planning and preparation

AHRI OD Network Committee and Aims

AHRI : Peter Aughton and Phil Volkofsky 2020 22

Page 23: AHRI VIC OD Webinar Cooperative Workplaces by Design...• Mitigation costs are hidden • Health, workforce motivation and business performance suffer • Design Principle 2 drives

Stakeholders slide

• Fair Work Commission

• Unions

• Customers

• Suppliers

• Regulators

Page 24: AHRI VIC OD Webinar Cooperative Workplaces by Design...• Mitigation costs are hidden • Health, workforce motivation and business performance suffer • Design Principle 2 drives

Planning & preparation

steps for transitioning

to DP2

• Key players know the design principles and their consequences for intrinsic motivation, mental health and productivity

• Commitment from CEO, senior management and the board

• CEO communication to all employees – strategic goals and rationale for change

• Establish an online employee communication channel

• Feedback from ecosystem members – customers, supply chain partners, unions, others

• Establish and train a PDW transformation team

Page 25: AHRI VIC OD Webinar Cooperative Workplaces by Design...• Mitigation costs are hidden • Health, workforce motivation and business performance suffer • Design Principle 2 drives

Planning & preparation

steps for transitioning

to DP2 (cont’d)

• In the current environment, the transformation team will need to know how to:• Design work for hybrid workers – remote and/or in-person• Eliminate / mitigate errors identified during process mapping

using smart technology

• Scale agile teams

• Design a bottom-up PDW project plan for entire organisation

• Establish a T&Cs project group to:• Develop DP2 terms & conditions of employment

• Use PDW data to establish a skills-based career path and remuneration program

• Develop a redundancy policy• Seek support from the Fair Work Commission’s ‘New

Approaches’ program for building cooperative and productive workplaces

Page 26: AHRI VIC OD Webinar Cooperative Workplaces by Design...• Mitigation costs are hidden • Health, workforce motivation and business performance suffer • Design Principle 2 drives

This AHRI Online Forum is a delivered by the Organisational Development Network of Victoria

Committee (volunteers)• Ashley Butler• Peter Aughton• Peter Halcomb• Lauren McDaniel• Debra Panipucci• Karol Zdravevski, Convenor

Page 27: AHRI VIC OD Webinar Cooperative Workplaces by Design...• Mitigation costs are hidden • Health, workforce motivation and business performance suffer • Design Principle 2 drives
Page 28: AHRI VIC OD Webinar Cooperative Workplaces by Design...• Mitigation costs are hidden • Health, workforce motivation and business performance suffer • Design Principle 2 drives