brewing agile adaptive

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The Journey from an Agile Workplace to an Adaptive Business

Stephen ParryAuthor of Sense and Respond

Owner and Senior Partner at Lloyd ParryTwitter @Leanvoices

[email protected]

Stephen Parry Founder and Senior Partner at Lloyd ParryAuthor of Sense and Respond The Journey to Customer Purpose.‘I promise to challenge your current organisational thinking and enable you to differentiate your business’ Stephen Parry Winner of the National Business Award for Best Customer Service Strategy. National Business Awards the Judges declared “the company created an entire cultural change around the needs of its customers and could as a result demonstrate business growth, innovation and success.”

Partner at Lloyd ParryLloyd Parry delivers Adaptive transformation programs to large scale global organisations in many sectors including; Telecommunications, IT Services, Financial Services, Logistics, Outsourcing and Local Government. As a result of adopting our approach to Adaptive Business a number of companies have won national industry awards for Best Service Strategy, Best People Development Program and awards for Innovation and Creativity.


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 analysed via Confirmatory Factor Analysis and Structural Equation Modelling.

• The proposed Psychological Process to Performance Model was tested via a series of competing nested models.


From Command and Control to Listen and Adapt. (Adaptive Business)

The Journey from an Agile Workplace to an ‘Adaptive’ Learning Business - Operational Issues to address

Understanding Customers

Collaboration

Transparency

Reducing Work Overburden

Decision Taking At The Right Level

Trusting and Challenging Environment

Learning and People Development

Innovation in products and services

Innovation in work practices

Innovation in the Work-Climate


85%

Feel improved working relationswith other teams

83%

Understand other team’s processes and their challenges better

95%

Have more transparency about other teams and hence increased willingness

to support each other

90%

Are able to openly discuss issues faced with other teams without the fear of

conflict

78%

Feel empowered to make the necessary and relevant changes to

improve

85%

Feel ‘Adaptive’ is helping them be more effective end-to-end across

different countries

Work-Climate

Climetrics®

MassProduction

MassSpecialisation

MassAdaptation

MassCustomisation

Industr ia l C l imate

Adapt ive C l imate

Climetrics® © Copyright 2016 Lloyd Parry

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.

Adaptive Climate

Industrial Cl imateClimetrics® © Copyright 2016 Lloyd Parry

CHARACTER OFFERINGSCUSTOMER EXPERIENCE

EMPLOYEE EXPERTISE

IMPROVEMENT RESPONSIBILITY

MANAGEMENT FOCUS

COMPETITIVE BASIS

LEADERSHIP FOCUS

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

Industrial Climate



EMPLOYEE EXPERTISE


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

MassSpecialisation

MassAdaptation

Adaptive Climate



EMPLOYEE EXPERTISE


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

Adaptive Climate

Industrial Cl imateClimetrics® © Copyright 2016 Lloyd Parry

AdaptiveEngaging

and Understanding

Learningand

Sharing

Leadingand

Choosing

Improvingand

Changing



Work-Climate Science: Survey to identify Adaptive-Practices.

Improving Practice

M Employee influence on products and services

N Employee influence on managing practices

O Employee influence on other functions

P Employee influence on end-to-end processes

Leadership Practice

I Performance management

J Adaptive leadership

K Responding to customer issues

L Implementing ideas to better serve customers

Engaging Practice

A Freedom and decision making

B Customer facing activity

C Customer intelligence gathering

D Sharing intelligence with the team

Learning Practice

E Organisational understanding

F Sharing intelligence across the function

G Sharing intelligence with other functions

H Sharing intelligence with top/senior management

AdaptiveEngaging

and Understanding

Learningand

Sharing

Leadingand

Choosing

Improvingand

Changing

Adaptive PracticeA Freedom and decision

making

B Customer facing activity

C Customer intelligence gathering

DSharing customer intelligence with the team

AdaptiveEngaging

and Understanding

Learningand

Sharing

Leadingand

Choosing

Improvingand

Changing

Does the job design allow all staff to engage with customers and users?

Is everything forbidden unless permitted, or

Is everything permitted unless forbidden?


Adaptive

Engagingand

Understanding

Learningand

Sharing

Leadingand

Choosing

Improvingand

Changing

Adaptive Practice




HSharing intelligence with top/senior management

Do staff routinely share customer and business information with senior

management?

And do they routinely collaborate and problem solve with senior and mid-

managers?


AdaptiveEngaging

and Understanding

Learningand

Sharing

Leadingand

Choosing

Improvingand

Changing

Adaptive Practice





Do Leaders foster a no-blame climate to surface problems for teams to work on?

Which 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?


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 and practices they will use to improve the business?

Are staff encouraged to run fail safe experiments?

Adaptive

Engagingand

Understanding

Learningand

Sharing

Leadingand

Choosing

Improvingand

Changing

Adaptive Practice







Climetrics® Climatograph what sort of business are you and how adaptive are you?

DCBA HGFE LKJI PONM

Adaptive Criteria


B Customer -facing activity

C Customer -intelligence gathering














Excellent

Standard

Basic

E

S

B

E

S

B

E

S

B

Average Performance

Engaging Learning Leading Improving


MassProduction

MassSpecialisation

MassAdaptation

MassCustomisation

DCBA HGFE LKJI PONM

Listenand Adapt

Commandand Control

Directand Control

Consultative



Case Study: Global ICT and applications company: Before Transformation

Excellent

Standard

Basic

E

S

B

E

S

B

E

S

B

Transformation objective

Average Performance


MassProduction

MassSpecialisation

MassAdaptation

MassCustomisation

Adaptive Criteria
















P Employee influence on end-to-end processesDCBA HGFE LKJI PONM

DCBA HGFE LKJI PONM

Listenand Adapt

Commandand Control

Directand Control

Consultative



Case Study: Global ICT and applications company: After Transformation


Transformation objective

Previous Average Performance

MassProduction

MassSpecialisation

MassAdaptation

MassCustomisation

Excellent

Standard

Basic

E

S

B

E

S

B

E

S

B

Adaptive Criteria

















DCBA HGFE LKJI PONM

Listenand Adapt

Commandand Control

Directand Control

Consultative



Case Study: Two application development teams at the same company

Excellent

Standard

Basic

E

S

B

E

S

B

E

S

B


MassProduction

MassSpecialisation

MassAdaptation

MassCustomisation

Adaptive Criteria

















Team One Average Performance

Team Two Average Performance

DCBA HGFE LKJI PONM

Listenand Adapt

Commandand Control

Directand Control

Consultative

http://www.amadeus.com/documents/lean-it/Amadeus_Lean_IT.pdf

References , influences and acknowledgements.

Book Sense and Respond: The Journey to Customer Purpose. Parry, Barlow, Faulkner (Palgrave Macmillan 2005)

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)

Reciprocity Definitionhttp://en.m.wikipedia.org/wiki/Reciprocity_(social_psychology)

Reciprocity An Economics of Social Relations.Kolm (Cambridge)

Reciprocity in the UK Call Centre Workplace.Gary Fisher PhD in Management Research (2008)

Service Quality Research Perspectives.Schneider, White (Sage)

Amadeus Lean Enterprise Case Study: Cleared for Take off http://www.amadeus.com/documents/lean-it/Amadeus_Lean_IT.pdf

For extensive list of Stephen Parry personal acknowledgements, influences and references go to www.leanvoices.com and for Sense and Respond and blog go to www.lloydparry.com

http://mitsloan.mit.edu/50th/pdf/beyondtheorypaper.pdf

http://en.m.wikipedia.org/wiki/Reciprocity_(social_psychology)

http://www.amadeus.com/documents/lean-it/Amadeus_Lean_IT.pdf

http://www.leanvoices.com/

http://www.lloydparry.com/

Achieving Change

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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.

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