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All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade-Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved.
Designing organisations that work for Lean and Agile thinking people. What type of work climate do you create?
Stephen ParryAuthor of Sense and Respond
Owner and Senior Partner at Lloyd Parry
Twitter @Leanvoices
www.lloydparry.com
All Trade-Marks and ©Copyright 2012 Owned by Lloyd Parry. All Rights Reserved. All Trade-Marks and ©Copyright 2016 Owned by Lloyd Parry. All Rights Reserved.
Transforming Perspectives Transforming Learning
Transforming Decision MakingTransforming Behaviour
Engaging andUnderstanding
Learning andSharing
Leading and Choosing
Improving and Changing
Work
ClimateVisualise the work
Measure the work
Perfecting the work
Develop the Work-force
Respectful
Collaboration
Performance
Management
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
Trustworthiness Customer Purpose
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The Work Climate is the combined perception of customers, employees, managers and leaders. It predicts the performance and long term profitability of an organisation.
We use a Climate diagnostic called Climetrics® which also measures how well the organisation as a whole, identifies, understands and delivers against customer needs and how it adapts and locks on to changing customer needs.
The diagnostic informs indicates what actions we need to take to create a superior work climate.
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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 Employees, Managers and Leaders
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
Weak Standard Excellent
Autonomy
Customer facing activity
Intelligence gathering
Sharing team intelligence
Excellent Standard Weak
Industrial Work-ClimateEngaging
OrganisationalUnderstanding
Sharing intelligence within the function
Sharing intelligence with other functions
Sharing intelligence with senior managers
Learning
Adaptive Work-Climate
WorkClimate
AndPerformanceCLIMETRICS®
™
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
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
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
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
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.
Adapt ive Cl imate
Indust r ial Cl imateClimetrics® Landscapes
Climetrics® Landscapes
CHARACTER OFFERINGS
CUSTOMER
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 Transactional
and Processed
No customer
involvement in
solution design
Basic Improvement
Boards
Improvement
Specialists
Suggestion
Schemes
Employee
utilisation, cost
reduction, work
intensification.
Commoditised
High Volume
Low Margins
Economies of
Scale
Command and
Control
Mass
Production
Mass
Customisation
Industrial Climate
CHARACTER OFFERINGS
CUSTOMER
EXPERIENCE
EMPLOYEE
EXPERTISE
IMPROVEMENT
RESPONSIBILITY
MANAGEMENT
FOCUS
COMPETITIVE
BASIS
LEADERSHIP
FOCUS
Customer Value
Enterprise ®
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
experimentation
and Learning
Creativity,
expertise, new
products and
services.
Customer
outcomes.
Problem Solving
Trusted
advisor and
expert
Integration
Business
Outcomes
Listen and
adapt
The Department
Store
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
Mass
Specialisation
Mass
Adaptation
Climetrics® Landscapes
Adaptive Climate
Climetrics® Landscapes
CHARACTER OFFERINGS
CUSTOMER
EXPERIENCE
EMPLOYEE
EXPERTISE
IMPROVEMENT
RESPONSIBILITY
MANAGEMENT
FOCUS
COMPETITIVE
BASIS
LEADERSHIP
FOCUS
Customer Value
Enterprise ®
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
experimentation
and Learning
Creativity,
expertise, new
products and
services.
Customer
outcomes.
Problem Solving
Trusted
advisor and
expert
Integration
Business
Outcomes
Listen and
adapt
The Department
Store
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 Transactional
and Processed
No customer
involvement in
solution design
Basic Improvement
Boards
Improvement
Specialists
Suggestion
Schemes
Employee
utilisation, cost
reduction, work
intensification.
Commoditised
High Volume
Low Margins
Economies of
Scale
Command and
Control
Mass
Production
Mass
Customisation
Mass
Specialisation
Mass
Adaptation
Adapt ive Cl imate
Indust r ial Cl imate
Mass
Production
Mass
Customisation
Mass
Specialisation
Mass
Adaptation
Independent
Financial
Advice
Consumer IT
Support
Services
Energy
Utilities
Water
UtilitiesConsumer
Banking
Services
Health-Care
Services
Insurance
Services
Mobile Phone
Support Services
Revenue
and Tax
Government
Centres
Low-cost
Airline
Travel
Services
Legal
Advice
Credit Card
Services
Consumer
AdviceCorporate IT
Services
Post and
Parcel Services
Purchasing
Computers
Mobile Phone
Purchasing
Investment
Services
Weak Operation Standard Operation Excellent Operation
Climetrics® Operating Landscapes /Operational Excellence
Differentiation curve
A d a p t i v e C l i m a t e
I n d u s t r i a l C l i m a t e
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Work-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
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Weak Standard Excellent
Autonomy
Customer facing activity
Intelligence gathering
Sharing team intelligence
Excellent Standard Weak
Team two Work-ClimateEngaging
OrganisationalUnderstanding
Sharing intelligence within the function
Sharing intelligence with other functions
Sharing intelligence with senior managers
Learning
Team one Work-Climate
Two application development teams at the same company
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Weak Standard Excellent
PerformanceManagement
Leadershipapproach
Responsiveness to customer issues
Implementing ideas to better serve
customers
Excellent Standard Weak
Leading
Employee influence on improving service
Employee influence on work practices
Employee influence on other functions
Employee influence on end-to-end
processes
Improving
Two application development teams at the same company
Climetrics®Towards Listen and Adapt Towards Direct and Control
Team two Work-ClimateTeam one Work-Climate
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Weak MassProduction
MassCustomisation
Customer Value Enterprise®
MassSpecialisation
WeakE
ngagin
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
Leadin
gIm
pro
ving
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
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Global IT and Applications Company: After Transformation
Climetrics®Towards Listen and Adapt Towards Direct and Control
Weak MassProduction
MassCustomisation
Customer Value Enterprise®
MassSpecialisation
WeakE
ngagingLearning
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
LeadingIm
proving
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
Adapt ive
Climate
Indust r ial
Climate
Transforming Perspectives Transforming Learning
Transforming Decision MakingTransforming Behaviour
Engaging andUnderstanding
Learning andSharing
Leading and Choosing
Improving and Changing
Work
ClimateVisualise the work
Measure the work
Perfecting the work
Develop the Work-force
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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 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.
Stephen Parry
Founder and Senior Partner at Lloyd Parry
Author 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 Parry
Lloyd Parry delivers transformative Lean 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 Lean-Service a number of companies have won national industry awards for Best Service Strategy, Best People Development Program and awards for Innovation and Creativity.
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
Lloyd Parry Adaptive Lean Service Transformation Consultancy
Lloyd Parry use Lean Service principles to support their clients in the design, transformation andmanagement of organisations. We also provide executive and change leadership education androute-map designs.
We have developed Climetrics® a unique organisational diagnostic used to identify how yourmanagement activities, measurement systems, structures, and delivery capabilities can becombined to create a lean-service climate that leads to high-performance and long-termprofitability.
Lloyd Parry have delivered transformation programs to large scale global organisations in manysectors including; Telecommunications, IT Services, Financial Services, Logistics, Outsourcing andLocal Government.
As a result of adopting our approach to Lean-Service, a number of companies have won nationalindustry awards for Best Service Strategy, Best People Development Program and awards forInnovation and Creativity.
Best Customer Service Strategy - National Business Awards the Judges declared “they created an entire cultural change around the needs of its customers and could as a result demonstrate
business growth, innovation and success.”
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.
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