| +44(0) © ICE LTD 2009 All rights reserved. August 2009 version 1.3 CWP Systems Thinking Training Session 2

| +44(0) © ICE LTD 2009 All rights reserved. Welcome Agenda What will we do today?

| +44(0) © ICE LTD 2009 All rights reserved. This is How Warren Puts it Review Feedback of findings from Establish Explore This week’s concepts Getting started

| +44(0) © ICE LTD 2009 All rights reserved. Any issues or concerns? Anything you want to change? What have you communicated and to who?

| +44(0) © ICE LTD 2009 All rights reserved. Outcomes agreed Creating the OMaR Stakeholders Date of vision workshop Set up clean

| +44(0) © ICE LTD 2009 All rights reserved. The 7Es Model Explore

| +44(0) © ICE LTD 2009 All rights reserved. Clarity of purpose in customer terms Measuring what matters to your customer Considering the whole system – End to End Understand Demand – Value/Failure Understand Flow – Value/Waste Design against demand to create value for your customer No Targets – seek perfection and continuous improvement Taking a customer perspective

| +44(0) © ICE LTD 2009 All rights reserved.

| +44(0) © ICE LTD 2009 All rights reserved. Purpose To gain a high level view of the system from the customers’ perspective Based on data Sufficient detail to enable decisions to be made about the future

| +44(0) © ICE LTD 2009 All rights reserved. Customer Purpose DemandFlow Measures System conditions & social factors

| +44(0) © ICE LTD 2009 All rights reserved. Customer Customer perspective Customers vs Stakeholders Who is the system there to serve? Questions to the team Customer Chains Customer Purpose DemandFlow Measures System conditions & social factors

| +44(0) © ICE LTD 2009 All rights reserved. Purpose Why does the system exist – from the customer’s point of view? Customer Purpose DemandFlow Measures System conditions & social factors

| +44(0) © ICE LTD 2009 All rights reserved. Demand What does the customer ask of the system? Source Type Frequency Value & failure Customer Purpose DemandFlow Measures System conditions & social factors

| +44(0) © ICE LTD 2009 All rights reserved. Flow Visual representation of how the work is handled within the system Depends on size of system End-to-end What actually happens rather than what should happen Mapped in the work Customer Purpose DemandFlow Measures System conditions & social factors

| +44(0) © ICE LTD 2009 All rights reserved. Measures What matters? How capable is the system of meeting customer demand? Quality & performance Real time Customer Purpose DemandFlow Measures System conditions & social factors

| +44(0) © ICE LTD 2009 All rights reserved. System conditions Factors which positively & negatively effect the design of the work Help explain why the work design is as it is Social factors Looks at the people who do the work and what it is like ‘within’ the system Customer Purpose DemandFlow Measures System conditions & social factors

| +44(0) © ICE LTD 2009 All rights reserved. Understanding Customer Systems Thinking principles mean that we see the system through the eyes of the customer therefore it is imperative to identify who that actually is. Note this is the customer not the stakeholders. The customer is the person or persons, the system is there to serve. Remember you need to think of the end customer rather than internal stakeholders. Questions that might help identify the customer are: Who ultimately receives the service? Who benefits from this service? Who is the user or consumer of this service? Without whom would the system cease to exist What is the real need and purpose behind the transaction? How does the organisation add value? For some support services it may also be necessary to identify if there is a customer chain. Customer Purpose DemandFlow Measures System conditions & social factors

| +44(0) © ICE LTD 2009 All rights reserved. We need to clarify “Why does the system exist from the customer’s point of view?” To think in terms of a system, is to think in terms of purpose. Everything starts with purpose and this is central to Systems Thinking. As Deming said often, without a purpose there is no system. Once upon a time in the 1960’s, on a visit to the Cape Canaveral space centre by JFK to inspect progress on the moon mission the president, being human after all, had to visit the bathroom. Once he had finished what he needed to he asked the chap in the blue overall, who was unbeknown to the great man the janitor, “Say there fellah, what do you do here at the space centre?” Bob the janitor replied, without any hesitation, “Well, Sir, my job is to help the team who are busy getting ready to put a man on the moon” It seems like the NASA organisation had a pretty clear vision and had communicated it well to all corners of the workforce, rocket scientists to janitors. A true story Cleaning a table cannot be a system until the purpose of the clean table is made clear: “A table clean enough to eat on requires one system of cleaning. Clean enough to dance on requires another. Clean enough to perform surgery on requires yet another. Everything starts with purpose. “What is your purpose?” is the most useful question one can ask”. Peter Scholtes (1999) Customer Purpose DemandFlow Measures System conditions & social factors Understanding Purpose

| +44(0) © ICE LTD 2009 All rights reserved. It provides us with the reasons why customers contact us (expressed in their terms) It allows us to analyse what customers ask for most frequently It helps us to understand how customers want to contact us – by the comparative volumes of each method (face to face, telephone etc.) It allows us to look at the processes we currently use to respond to the different types of demand Understanding demand in customer terms – the purpose of collecting demand is to understand the demands placed on any system by the customer Where does demand come in? Phone, post, face to face etc. What do they say? Demand should be expressed in customer terms What matters to customer when they place these demands upon the system? This will link into measures Group the same customer demands together to understand volume Is there a frequency to demand? Phone calls may have peaks at certain time of the day, payroll may have a monthly cycle, some processes require annual application. Keep collecting demand until it becomes predictable. Why is it important to understand demand? Customer Purpose DemandFlow Measures System conditions & social factors Understanding Demand

| +44(0) © ICE LTD 2009 All rights reserved. Introduce yourself – explain you are there to learn about the work, the customer and not the workers Start with what they do, listen to calls or ask them to show you. Listen, and clarify what you have heard Summarise your picture of what is happening and ask for validation Try not to make judgments, comments or express opinions Two types of demand Value demand what we are here for, demands we want Failure demand demands caused by us not doing something or, by us not doing something right in the eyes of the customer Note: We need to be absolutely clear about what the purpose of the organisation is in order to be able to decide whether the demands are value of failure. Example In an IT helpdesk the purpose might be based around fixing problems people have with their IT. A demand “I can’t print out from my PC” would therefore be Value. However if the purpose was based around giving employees the tools they need to do their job this would be Failure. The first looks at the IT helpdesk as a system, the second looks at IT as a system supporting other systems. Tactics when collecting demand Customer Purpose DemandFlow Measures System conditions & social factors Understanding Demand

| +44(0) © ICE LTD 2009 All rights reserved. Logistics Working groups Plan Timings Roles Communicating this to your teams

| +44(0) © ICE LTD 2009 All rights reserved. Is this working for you? Any issues or concerns? Anything you want to change?