1. Created with MindGenius Business 2005® 070922 Seddon - Quotes - Freedom from Command & Control 070922 Seddon - Quotes - Freedom from Command & Control Jim Mather MSP

2. Created with MindGenius Business 2005® 070922 Seddon - Quotes - Freedom from Command & Control 070922 Seddon - Quotes - Freedom from Command & Control Command and Control Command and Control Specific Issues and Views Specific Issues and Views New Paradigm New Paradigm Check Plan Do Check Plan Do Performance: To perform well and individual needs three things: Performance: To perform well and individual needs three things:

3. Created with MindGenius Business 2005® Command and Control Command and Control 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. 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. People's ingenuity is engaged in survival not improvement 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 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 It is an unquestioned assumption that managers should have and set targets and then create control systems Incentives, Performance Appraisals, Budget Reporting - and Computers to keep track of them all - to ensure that the targets are met. Incentives, Performance Appraisals, Budget Reporting - and Computers to keep track of them all - to ensure that the targets are met. In Toyota, these practices simply do not exist In Toyota, these practices simply do not exist

4. Created with MindGenius Business 2005® Failure Demand Failure Demand is demand caused by failure to do something or to do something right for the customer. Failure Demand is demand caused by failure to do something or to do something right for the customer. In Local Authorities it can be as high as 50-80% In Local Authorities it can be as high as 50-80% The savings associated with the removal of the specification and inspection bureaucracies will be IMMENSE. 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 If failure demand is predictable you should act to remove the causes Short term - this requires leadership Long term this requires the Whole System to change Long term this requires the Whole System to change Consequently - outsourcing often "outsources” waste and makes it permanent. Consequently - outsourcing often "outsources” waste and makes it permanent.

5. Created with MindGenius Business 2005® Don’t ignore Variation Don’t ignore Variation 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 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 “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 “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. 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 To understand the causes of variation managers and workers need to study FLOW This is the best way to use people's ingenuity rather than consume it to meet arbitrary targets This is the best way to use people's ingenuity rather than consume it to meet arbitrary targets

6. Created with MindGenius Business 2005® Specific Issues and Views Specific Issues and Views On Targets On Targets There is no point in having a "Target" if the system is stable There is no point in having a "Target" if the system is stable Targets are arbitrary Targets are arbitrary Capability measures are not arbitrary Capability measures are not arbitrary They are derived from work not plucked from the air - see Control Charts They are derived from work not plucked from the air - see Control Charts Targets increase disorder in systems, capability measures lead people to act in ways that increase order and control 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, Targets focus people on the wrong things, The things they must do to survive within the system - not things to improve it. 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 In a hierarchical system target is generally something that is imposed with authority - by people who are detached from the work

7. Created with MindGenius Business 2005® Specific Issues and Views (Cont.) Specific Issues and Views (Cont.) A Law of Cost A Law of Cost In a command and control system, a service organisation's costs rise in proportion to the variety of customer demands In a command and control system, a service organisation's costs rise in proportion to the variety of customer demands On Control On Control Control is an illusion - as costs are associated with flow - not function or activity Control is an illusion - as costs are associated with flow - not function or activity Numbers have achieved an ascendancy over purpose. Numbers have achieved an ascendancy over purpose. Time to change? Time to change? Clear need to flex to meet changing demand and to spend more time & resources on the services that customers value 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 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" Allow people to do what is needed to deliver "The purpose of the system" Key Questions for Service oriented organisations Key Questions for Service oriented organisations How much money do we spend on customer research? How much money do we spend on customer research?

8. Created with MindGenius Business 2005® Specific Issues and Views (Cont.) Specific Issues and Views (Cont.) What actions for improvement are taken as a consequence? What actions for improvement are taken as a consequence? ISO 9000 ISO 9000 Despite a focus on ISO 9000 the UK has slipped down competitive league tables - overtaken by countries that do not use such methods 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. There is no one responsible for determining whether ISO 9000 works. IT IS AN ECONOMIC DISEASE OF WHICH THE UK SHOULD BE ASHAMED. The inertia for continuing sub optimisation is designed in. The inertia for continuing sub optimisation is designed in. The management and compliance are healthy as the core business sickens The management and compliance are healthy as the core business sickens

9. Created with MindGenius Business 2005® New Paradigm New Paradigm Perspective Perspective Outside - looking in - Systems thinking Outside - looking in - Systems thinking Design Design Demand - Value - Flow Demand - Value - Flow Design against demand removes the abundant waste inherent in current systems design. Design against demand removes the abundant waste inherent in current systems design. To eliminate waste - dismantle functional structures and "put variety in the line" To eliminate waste - dismantle functional structures and "put variety in the line" Give people the flexibility, training and capability to do the job Give people the flexibility, training and capability to do the job Acting on Demand improves Performance and Morale Acting on Demand improves Performance and Morale People learn more when "trained against demand" People learn more when "trained against demand" Managing the flow means thinking of service as "customers pulling value from the system" Managing the flow means thinking of service as "customers pulling value from the system"

10. Created with MindGenius Business 2005® New Paradigm (Cont.) New Paradigm (Cont.) Decision Making Decision Making Integrated with work Integrated with work Staff should recognise that they have Two Jobs Staff should recognise that they have Two Jobs 1. Serve the Customer 1. Serve the Customer 2. Constantly improve the work 2. Constantly improve the work Let the people decide? ………Not Quite Let the people decide? ………Not Quite However - If the people, who do the work, have measures in their hands that help them understand and improve the work....and However - If the people, who do the work, have measures in their hands that help them understand and improve the work....and they know how to act for improvement they know how to act for improvement then they can decide. then they can decide. There is no substitute for learning by doing There is no substitute for learning by doing

11. Created with MindGenius Business 2005® New Paradigm (Cont.) New Paradigm (Cont.) Measurement Measurement Capability, variation - related to purpose Capability, variation - related to purpose Measures that illustrate the systems ability to respond 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 To improve the flow you need measures of flow in the hands of the people who do the work Capacity = (Work + Waste) Capacity = (Work + Waste) Capability Measures encourage people to focus their ingenuity on how the work WORKS. Capability Measures encourage people to focus their ingenuity on how the work WORKS. Control and Understanding in the hands of the people who do the work 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 Never remove a measure without replacing it with a new one and helping people to understand how to use it Attitude to Customers Attitude to Customers What Matters to the customers What Matters to the customers

12. Created with MindGenius Business 2005® New Paradigm (Cont.) New Paradigm (Cont.) Attitude to Suppliers Attitude to Suppliers Co-operative Co-operative Role of Management Role of Management Act on the system Act on the system Focus on the 95% of performance dictated by the “System” & not the 5% that is staff & Mgt. Focus on the 95% of performance dictated by the “System” & not the 5% that is staff & Mgt. First Level managers - should work with staff ON THE WORK - not on the Staff First Level managers - should work with staff ON THE WORK - not on the Staff To hold the worker responsible for performance when in fact performance is governed by the system causes stress To hold the worker responsible for performance when in fact performance is governed by the system causes stress When you introduce controls on human behaviour - you lose the game - particularly when those controls are at odds with the work 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 Leaders must be tough in getting demand, capacity and flow data and knowledge Ethos should be one of Constant Learning Ethos should be one of Constant Learning

13. Created with MindGenius Business 2005® New Paradigm (Cont.) New Paradigm (Cont.) Change Change Adaptive - integral Adaptive - integral In line with Eric Beinocker’s belief that: In line with Eric Beinocker’s belief that: To Endure and Grow To Endure and Grow Systems must adapt, innovate and improve execution Systems must adapt, innovate and improve execution Motivation Motivation Must maximise Intrinsic Motivation Must maximise Intrinsic Motivation

14. Created with MindGenius Business 2005® Check - Plan - Do Check - Plan - Do Check 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 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 Do Take the planned action and monitor the consequences versus purpose

15. Created with MindGenius Business 2005® Performance: To perform well and individual needs three things: Performance: To perform well and individual needs three things: 1. Information related to the performance required 1. Information related to the performance required What do I have to do? What do I have to do? 2. Information about the method to be used 2. Information about the method to be used How do I use resources, information, equipment and so on – How do I use resources, information, equipment and so on – By what method? By what method? 3. Willingness to do the job? 3. Willingness to do the job? This interests and motivates me – I want to do this This interests and motivates me – I want to do this See - questions on performers p.124 - 127 See - questions on performers p.124 - 127 http://www.lean-service.com/home.asp http://www.lean-service.com/home.asp