Transcript 070922 Seddon - Quotes - Freedom from Command & Control

070922 Seddon - Quotes Freedom from Command
& Control
Jim Mather MSP
Created with MindGenius Business 2005®
070922 Seddon - Quotes Freedom from Command & Control
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Command and Control
Specific Issues and Views
New Paradigm
Check Plan Do
Performance: To perform well and
individual needs three things:
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Command and Control
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Dysfunctional behaviour is ubiquitous and systemic, not
because people are wicked but because the requirement
to serve the hierarchy competes with the requirement to
serve customers.
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People's ingenuity is engaged in survival not improvement
By causing managers and staff to lose sight of their
customers, they can ultimately contribute to putting the
organisation out of business altogether
It is an unquestioned assumption that managers should
have and set targets and then create control systems
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Incentives, Performance Appraisals, Budget Reporting - and
Computers to keep track of them all - to ensure that the targets
are met.
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In Toyota, these practices simply do not exist
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Failure Demand
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Failure Demand is demand caused by failure to
do something or to do something right for the
customer.
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In Local Authorities it can be as high as 50-80%
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The savings associated with the removal of the specification
and inspection bureaucracies will be IMMENSE.
If failure demand is predictable you should act to
remove the causes Short term - this requires
leadership
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Long term this requires the Whole System to change
Consequently - outsourcing often "outsources” waste and
makes it permanent.
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Don’t ignore Variation
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In ignoring variation, organisations subject their
managers and workers to measures that demoralise
them and drive them to behave in ways that add no
value to the system
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“Employment in such alienating conditions led to the creation of
Unions, whose purpose was to control and protect jobs” - see
John Kay and Alberto Alesina
The seeds were sown for inefficiency and lack of co-operation
brought about by inflexibility and both real & perceived inequity.
To understand the causes of variation managers and workers
need to study FLOW
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This is the best way to use people's ingenuity rather than consume
it to meet arbitrary targets
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Specific Issues and Views
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On Targets
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There is no point in having a "Target" if the system is stable
Targets are arbitrary
Capability measures are not arbitrary
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Targets increase disorder in systems, capability measures lead people to
act in ways that increase order and control
Targets focus people on the wrong things,
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They are derived from work not plucked from the air - see Control Charts
The things they must do to survive within the system - not things to improve
it.
In a hierarchical system target is generally something that is imposed
with authority - by people who are detached from the work
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Specific Issues and Views (Cont.)
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A Law of Cost
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In a command and control system, a service organisation's costs rise in
proportion to the variety of customer demands
On Control
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Control is an illusion - as costs are associated with flow - not function or activity
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Time to change?
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Numbers have achieved an ascendancy over purpose.
Clear need to flex to meet changing demand and to spend more time &
resources on the services that customers value
We are going to change the system but we want to do it with the full proactive
involvement of management and staff
Allow people to do what is needed to deliver "The purpose of the system"
Key Questions for Service oriented organisations
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How much money do we spend on customer research?
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Specific Issues and Views (Cont.)
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ISO 9000
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What actions for improvement are taken as a consequence?
Despite a focus on ISO 9000 the UK has slipped down
competitive league tables - overtaken by countries that do not
use such methods
There is no one responsible for determining whether
ISO 9000 works. IT IS AN ECONOMIC DISEASE OF
WHICH THE UK SHOULD BE ASHAMED.
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The inertia for continuing sub optimisation is designed in.
The management and compliance are healthy as the core
business sickens
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New Paradigm
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Perspective
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Outside - looking in - Systems thinking
Design
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Demand - Value - Flow
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Design against demand removes the abundant waste inherent in
current systems design.
To eliminate waste - dismantle functional structures and "put variety
in the line"
Give people the flexibility, training and capability to do the job
Acting on Demand improves Performance and Morale
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People learn more when "trained against demand"
Managing the flow means thinking of service as "customers pulling
value from the system"
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New Paradigm (Cont.)
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Decision Making
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Integrated with work
Staff should recognise that they have Two Jobs
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1. Serve the Customer
2. Constantly improve the work
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However - If the people, who do the work, have
measures in their hands that help them understand and
improve the work....and
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Let the people decide? ………Not Quite
they know how to act for improvement
then they can decide.
There is no substitute for learning by doing
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New Paradigm (Cont.)
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Measurement
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Capability, variation - related to purpose
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Measures that illustrate the systems ability to respond
To improve the flow you need measures of flow in the hands of the
people who do the work
Capacity = (Work + Waste)
Capability Measures encourage people to focus their ingenuity on
how the work WORKS.
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Control and Understanding in the hands of the people who do the work
Never remove a measure without replacing it with a new one and
helping people to understand how to use it
Attitude to Customers
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What Matters to the customers
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New Paradigm (Cont.)
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Attitude to Suppliers
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Co-operative
Role of Management
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Act on the system
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Focus on the 95% of performance dictated by the “System” & not the 5%
that is staff & Mgt.
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To hold the worker responsible for performance when in fact performance is
governed by the system causes stress
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First Level managers - should work with staff ON THE WORK - not on the Staff
When you introduce controls on human behaviour - you lose the game particularly when those controls are at odds with the work
Leaders must be tough in getting demand, capacity and flow data and
knowledge
Ethos should be one of Constant Learning
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New Paradigm (Cont.)
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Change
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Adaptive - integral
In line with Eric Beinocker’s belief that:
To Endure and Grow
 Systems must adapt, innovate and improve
execution
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Motivation
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Must maximise Intrinsic Motivation
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Check - Plan - Do
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Check
 What is the purpose of this system?
 What is the nature of the Customer Demand?
 Capability - What is the system achieving
 Flow - How does the system work?
 Why does the System behave this way?
Plan
 What needs to change to improve performance against
purpose?
 What action could be taken and what are the predicted
consequences?
 Against what measurers should action be taken to ensure
learning?
Do
 Take the planned action and monitor the consequences versus
purpose
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Performance: To perform well and
individual needs three things:
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1. Information related to the performance required
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2. Information about the method to be used
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How do I use resources, information, equipment and so on –
By what method?
3. Willingness to do the job?
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What do I have to do?
This interests and motivates me – I want to do this
See - questions on performers p.124 - 127
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http://www.lean-service.com/home.asp
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