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PDF Systems Thinking: A Counterintuitive approach to organisational change, Lesley Kragt, Vanguard...
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A counterintuitive approach to organisational change……. ….to achieve transformational change we must change management thinking Lesley Kragt – Vanguard Consulting: 12 th May 2011
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Lesley shows how systems thinking offers an approach on how to design and manage work to improve your organisation.
Transcript of PDF Systems Thinking: A Counterintuitive approach to organisational change, Lesley Kragt, Vanguard...
A counterintuitive approach to organisational change…….
….to achieve transformational change we must change management thinking
Lesley Kragt – Vanguard Consulting: 12th May 2011
What is the Vanguard Method and Systems Thinking?
•Not a bag of tools – you won’t learn it in a room or by reading a book!•Based on work of Taiichi Ohno and TPS•Based on psychological research and empirical evidence
Offers a counterintuitive logic –
challenges our core beliefs and assumptions
Traditional Thinking
Top Down
Functional specialisation
Separated from work
Budget, activity, targets,output, standards
Manage budgets & people
Contractual
Extrinsic
Outside in
Demand, value work, flow
Integrated with work
Related to purpose, variation, and capability
Intrinsic
Act on the system
What matters
Systems Thinking
The SINS of management!!•All activity is value•Performance is down to the people•Targets give us control •Standardise work flows etc. (use tools)•Focus on managing cost and economies of scale•Focusing on outputs •Splitting work – specialisms, front and back office
This is all WRONG!!!!
Need to change the role of the manager
JOHN THE WASHING MACHINE ENGINEER WHAT DOES HE NEED IN HIS SYSTEM?
Purpose: to fix machines
Yet, as managers what do we focus on?
95% of performance is down to the system and NOT the individual (E. Deming)
How much time do Managers spend on the people vs. the system?
The role of the Manager is to act on the system….
Managers need to work in the work, on the work with the worker
Need to unlearn and relearn!!
•Fundamental challenge to our current beliefs •Normative learning •Need to get knowledge •Vanguard method for change – check, plan, do
The Vanguard Model for Change
Understand current performance the “what and why”
Redesign: Identify levers for changeExperiment to get to perfect
Roll In: Implement the changes
Critical: get knowledge!!!!
If we don’t carry out check!
Impact of applying the Vanguard method•Improve service from a customers perspective•Reduce costs•Improve moral
An example of applying the Vanguard Method
Case Study
Case Study -
Pre intervention•Demand = 39% value and 61% failure•High level steps = 39 – 135 (simple to complex)
•Value work = 18% (simple case)•Waste = 82% (simple case)•Handoffs = 30•E2E times•Complaints
•Staff = •Customers =
Case Study -
Post intervention•Demand = > 75% value and < 25% failure•High level steps = 3
•Value work ↑ ↑ Waste ↓ ↓•Increased capacity•E2E times
•Complaints ↓↓
•Staff = •Customers =
System Condition: Targets= Cheating!!
Case Study -
Post intervention: redesign•Operating Principles
Locus of control, decision making, case management, DAD, only do what matters to customers, pull not push, eliminate waste, only do the value work, best resource at front
•Measures relating to purpose•No targets (no bonuses, shift in performance management)•Focus on flow and outcome…NOT output
• X
Key concept = Thinking Governs PerformanceA
nalysis
Change
Management Thinking
System
Performance
Where to start….Must have’s….•Leaders commitment and understanding•Leaders – into work – get knowledge, understand and apply method•Normative experience – to demonstrate better ways: challenge current beliefs and assumptions•Understand demand – who are your customers? What matters to your customers (understanding demand will tell you everything you need to do to redesign your service)•Stop managing with arbitrary measures/targets•Move from a culture of compliance to responsibility
Once you get this……there’s no going back!
