1. Delivering More for Less The Systems Thinking Approach Leeds, Wednesday 26 th August 2010 Breakfast Seminar

2. 24/06/2016Delivering More for Less Presentation Outline An immediate vote of thanks Words of wisdom What is a “system”? Systems thinking versus analysis Key systems thinking concepts Case study Further Reading Contact Details Questions and answers

3. 24/06/2016Delivering More for Less An Immediate Vote of Thanks To Professor John Seddon and Vanguard Consulting: www.systemsthinking.co.uk www.thesystemsthinkingreview.co.uk

4. 24/06/2016Delivering More for Less Words of Wisdom “We cannot solve our problems with the same thinking that we used to create them.” “We associate truth with convenience.”

5. 24/06/2016Delivering More for Less What is a “System”? “A system is an entity that maintains its existence through the mutual interactions of its parts.” (Ludwig van Bertanlaffy) The Human Body Collection of Body Parts

6. 24/06/2016Delivering More for Less Systems Thinking versus Analysis Systems Thinking Ideal for “complex problems” where: There is no definitive definition of the problem There is no definite ending to a problem There are no “right” or “wrong” answers There is no ultimate test of a solution (just “waves of consequences over time”) There are several ways to explain a problem Analytical Thinking Ideal for “tame problems” where: Problems can clearly be defined Information is gathered A solution can be worked towards It is clear when the solution is reached

7. 24/06/2016Delivering More for Less Systems Thinking versus Analysis Systems ThinkingAnalytical (Command and Control) Outside-inPerspectiveTop down Demand, value, flowDesignFunctional specialisation Integrated with workDecision makingSeparated from work Designed against purpose, demonstrate variation MeasurementBudget, targets, standards, activity, productivity IntrinsicMotivationExtrinsic Act on the systemManagement ethicManage budgets and people What matters?Attitude to customers Contractual Partnering and co-operationAttitude to suppliers Contractual Adaptive, integralApproach to change By project / initiative

8. 24/06/2016Delivering More for Less Systems Thinking versus Analysis Systems Thinking Techniques (solutions are in the work) What and why of current performance Nature and variation of customer demand Failure Demand and Waste Purpose Flow Capability Measures Typical Analysis Solutions Levels of service Front / back office split Information technology Shared services Procurement

9. 24/06/2016Delivering More for Less Systems Thinking Techniques What and Why of Current Performance WHAT? WHY?

10. 24/06/2016Delivering More for Less Systems Thinking Techniques What and Why of Current Performance WHY?

11. 24/06/2016Delivering More for Less Systems Thinking Techniques Nature and Variation of Customer Demand WHAT? WHY?

12. 24/06/2016Delivering More for Less Systems Thinking Techniques Purpose Must be defined in customer terms e.g. “An efficient, safe and accessible highway network that is value for money” De facto purpose – “meet the budget”; “meet the targets”; “adhere to levels of service” drives the wrong kind of behaviour

13. 24/06/2016Delivering More for Less Systems Thinking Techniques Flow Understanding the precise path that work takes through an organisation Too much functionalisation can result in convoluted processes with multiple handovers (“I was passed from pillar to post…”) Service costs are in flow and not scale Tracking the work often reveals unnecessary stages and delays

14. 24/06/2016Delivering More for Less Systems Thinking Techniques Failure Demand and Waste Demand caused by failure to do something or do something right for the customer Between 20-70% of demand in service organisations is failure demand Reducing failure demand reduces costs and improves service Any activity that does not add value to the customer Not a reflection on the hard work people put in! Needs to be either designed out or separated from the value work

15. 24/06/2016Delivering More for Less Systems Thinking Techniques Capability Measures of performance from the customer’s point of view Examples: o “End to end” time to fulfil request o On time performance as required by the customer o Percentage customer demand fulfilled at first point of contact

16. 24/06/2016Delivering More for Less Case Study (City of Edinburgh) The “what and why” of current performance revealed: o 3 day target to attend a pot hole once reported was achieved 97% of the time o Actual length of time to fix a pot hole was up to 333 days! o Attendance at the site was reported as achieving the target o The target had led to an inappropriate quick fix that required continuing return visits (totalling up to 7 returns in some instances). Some repairs did not last the day. o Problem was reacting to problems, and never focusing upon what was important to residents of Edinburgh o Gangs were chasing pot holes all over the city and not focussing on their local area (only available 45% of the time on their own patch)

17. 24/06/2016Delivering More for Less Case Study (City of Edinburgh) A service re-design was necessary: o The purpose from a customer perspective was: “…to permanently and systematically fix pot holes right first time.” o A contractor became 100% dedicated to a defined local area o Gangs deployed based on an empirical study of pot hole demand o Workmen were empowered to decide on the right repair for the job; and given the time to do it properly

18. 24/06/2016Delivering More for Less Case Study (City of Edinburgh) Capability MeasureBeforeAfter (2 months later) Maximum time to fix a pot hole (days) 33339 Number of jobs (per day)60150 Budget – stayed the same A simple database record actual costs Accidents and claims payouts have fallen

19. 24/06/2016Delivering More for Less Key Messages A need to think differently about both the problems and solutions The current spending crisis is an opportunity to test service re-design A lack of money should not prevent thinking about a better way Local solutions need to be found to local problems; but the case study illustrates what can be done with the same money The solutions cannot be imposed from outside or above: they are within the control of the people “in the work”

20. 24/06/2016Delivering More for Less Further Reading Books Middleton (ed.), Delivering Public Services That Work, Triarchy Press, Axminster, 2010 Seddon, John, Freedom from Command and Control: a better way to make the work, Vanguard Education, Buckingham, 2 nd edition, 2005 Seddon, John, Ackhoff, Russell, Systems Thinking for Curious Managers, Triarchy Press, 2010 Senge, Peter, The Fifth Discipline, Random House, 2006 Druve, Chetan, Why Your Boss is Programmed to be a Dictator, Cyan Books, 2007

21. 24/06/2016Delivering More for Less Contact James Llewellyn Local Authority Advisor Atkins Transport Planning and Management Rock House Llanddewi Llandrindod Wells Powys LD1 6SD Tel: 07713 644798 E-mail: james.llewellyn@atkinsglobal.comjames.llewellyn@atkinsglobal.com Blog: http://thescepticalmanager.blogspot.com/http://thescepticalmanager.blogspot.com/