Stephen Parry's slides from his talk to PANMA on Lean Service Design. Stephen is the author of "Sense & Respond: The Journey to Customer Purpose."

1. Author
Sense and Respond:
The Journey to Customer Lean Service Design
Purpose
Stephen Parry, Susan Barlow and
Mike Faulkner.
Stephen Parry
CEO of S B i
f See Business Diff
Differently.
tl
Author of Sense and Respond:
The Journey to Customer Purpose.
Visiting Fellow to the Lean Enterprise Academy.
Operational Research advisor to the
Customer Contact Association.
Stephen.Parry@seebusinessdifferently.com
Twitter: Leanvoices
Blog: Leanvoices.com
Leanvoices com
Website: www.seebusinessdifferently.com

2. Topic Areas:
• Why today’s business models do not support the
modern customer.
• Why have we designed out our customers and
employees?
• What happens to people when technology is the
face of the company?
• Changing the way we develop and bring to market
new software applications.
• Changing the way organisations think and operate.
• A new role for employees, managers and leaders.

3. What is your change agenda?
hange
Degre of ch
ee

4. Lean Deployment Considerations
New KPIs
New
Process
New New
System Structure

5. Current ‘change’ drivers
• Government spending cuts
• G oba competition
Global co pet t o
• Global sourcing
• New technologies
• Fiscal pressures
• Workforce expectations
• Social networks
• Customer individualisation
• Customer customisation
• Customer-business co-creation
Customer business co creation

6. Modern businesses are not designed
to meet the needs of the modern customer.
We need to Sense what matters sooner
and Respond quicker.
We need modern operating systems
which lock onto changing customer needs.
We need to manage the explosion in variety and individualisation.
g p y
We need a different approach to people
management and leadership.
leadership

7. The customer challenge:
They don’t have time………….they say things like:
Solve my problem, completely.
yp , p y
Don't waste my time or cause me hassle.
Minimise the cost of doing business with you
you.
Provide exactly what I need and deliver value where I need it.
Reduce the number of decisions I must make to resolve my problems.
Don’t get me to help you; I want you to help me!
Adapted from Lean Solutions: Jim Womack and Dan Jones by Stephen Parry 7

8. Question:
What would organisations do if they had
to pay for all the customer time they
wasted?
Adapted from Lean Solutions: Jim Womack and Dan Jones by Stephen Parry 8

9. Traditional approach: Feasible parts creating an infeasible whole.
Functional units
F1 F2 F3 F4 Fn
Independent It’s not unusual
S1 S2 S3 S4 Sn
Solutions to have thirty
Designed to or more
Meet functional solutions lining
Targets and up for attention
Goals.
Throughput process
©Copyright Stephen Parry 2011 All rights reserved.

10. Traditional approach: Feasible parts creating an infeasible whole.
Functional units
F1 F2 F3 F4 Fn
Independent It’s not unusual
S1 S2 S3 S4 Sn
Solutions to have thirty
Designed to or more
Meet functional solutions lining
Targets and up for attention
Goals.
Improved Customer Experience ?
©Copyright Stephen Parry 2011 All rights reserved.

11. Measurement of V l ?
M t f Value?
Comparing traditional targets and goals with
Lean targets and goals

12. Customer and People Measures:
Flow You’ll not find many measures
in this zone.
nd
End to En
‘If you measure your
service using averages,
you will deliver an
average service.’
ctional
Func
Value
No Matters to Customers Yes
Purpose
©Copyright Stephen Parry 2011 All rights reserved.

13. What we measure today…staff,
13

14. Measurement before and after

15. Sense and Respond or Lean Enterprise approach
SENSE what matters DRIVE the service and
to customers and develop on-demand flow
service users
cture
ata
relationship
Build relationship
Capture Demand Da
Develop Infrastruc
1. 2. 3.
People People People
Your customers or Your operating
p g Your support
pp
D
Build r
r
p
your clients customers staff organisation
Adapt – Evolve – Inform – Innovate
Design around customers not only the
service user
RESPOND
©Copyright Stephen Parry 2011 All rights reserved.

16. Mass Production Organisations
Company pushes products and services ON-COMMAND
Customers and employees are designed out
Mass Mass
ass
Production Customisation
Transactional Incentivised Functional Direct
and processed contribution efficiency and control
Customer experience Employee motivation Support operations Executive leadership
Relational Willing End-to-end Listen
and personal contribution effectiveness and adapt
Mass Mass
Specialisation Adaptation
Customer pulls products and services ON-DEMAND
Customers and employees are designed i
C t d l d i d in
Sense and Respond Organisations (Lean Design)
©Copyright Stephen Parry 2011 All rights reserved.

18. Personal and standard Mass Specialisation Mass Adaptation
ue
Personal and uniqu
a
Four
Operating
Modes
One siz fits all
Plug and Play
ze
d
Mass Production Mass Customisation ©Copyright Stephen Parry 2011 All rights reserved.

19. Climetrics ® Operating Modes and their Characteristics
Customer Employee Improvement Management Competitive Leadership
Character Offerings Experience Expertise Responsibility Focus Basis Focus
Trusted
Personalised, Customer Creativity, advisor and
individual, experience is Expert Broad expertise, new
tation
expert
Bespoke. personal and knowledge to Front-line products and
Mass
The Personal unique services.
services Listen and
Unique.
Unique provide experimentation
Adapt
Shopper Integration adapt
integrated and Learning Customer
Flexible Co-Creation of solutions outcomes.
solution design Problem Solving Business
Offerings
Outcomes
Developing staff In-depth
specialities
Specialisation
High level of knowledge
More choice Specific and connected to
customer Front-line staff
The Department expert
Mass
from a variety deep specialist
interaction to Capture and reuse networks Consultative
Store of standard knowledge and
identify needs Managers solutions
offerings skills
and situation
Economies of
Effectiveness Scope
p
Discuss simple
needs and
Customisation
available Commodity
Central Change Driven
Fixed menu options Understand Teams Cost, efficiency Direct and
Mass
Plug-and-play with simple basic option Emphasis on
and Coordination providing Control
options Low customer configurations
Managers value-add and
involvement choice
during solution
design
Improvement Commoditised
Transactional Boards
and
roduction
Employee High Volume
Processed
Mass
Improvement utilisation, cost Command and
One-size fits all Low Variety Basic
Specialists reduction, work Low Margins Control
No customer intensification.
intensification
Pr
involvement in
solution design Suggestion Economies of
Schemes Scale
Climetrics ® is a registered trademark of Stephen Parry: © 2011 All Rights Reserved

20. Climate Climetrics® : Service Climate Comparison Typical Industry Distribution
Strength
Water
Energy Utilities
High Utilities Insurance
Purchasing Services Investment
Low-cost Computers Services
Airline Travel
Revenue Services Health-Care
Mobile Phone and Tax Services
Medium Support Services Independent
Mobile Phone Financial Legal Consumer
Credit Card Purchasing Advice Advice Advice
Post and Services
Parcel Services Consumer IT Corporate IT Differentiation
Consumer Support Services Curve
Work and
Low Pensions
Banking Services
Services
Mass Mass Mass Mass
Production
P d ti Customisation
C t i ti Specialisation
S i li ti Adaptation
Ad t ti
Climate Type
Climetrics ® is a registered trademark of Stephen Parry: © 2011 All Rights Reserved

21. Climate Climetrics® : Service Climate Comparison Before and After
Strength
After
High
End-to-end
Management
Solution
Before Providers
Medium Customer
Service
Differentiation
Curve
Low
Mass Mass Mass Mass
Production
P d ti Customisation
C t i ti Specialisation
S i li ti Adaptation
Ad t ti
Climate Type
Climetrics ® is a registered trademark of Stephen Parry: © 2011 All Rights Reserved