1. Using Systems Thinking to Transform Services and Improve Performance To Performance Improvement Network By David Neil 24 th March 2009

2. Introduction

3. Objectives To help build understanding about systems thinking as a method to improve performance To hopefully make you curious and want to see more or even have a go To share some of the pitfalls and learning from our experience so far.

4. What are we going to do? What is systems thinking? By What Method? What have we learnt? What next?

5. What is systems thinking? What problems are you trying to solve? Who is using it?

6. SocialTechnical Macro Micro What is systems thinking? Current Focus of change?

7. Changing the Way We Manage The first three generations: Management by doing (just do it yourself) Management by directing (get others to do it) Management by results (employee figures out how to get the result) Three ways to get better results: Improve the system (fundamental changes that improve quality, reduce error & waste) Distort the system (get demanded results at the expense of other results) Distort the figures (use creative accounting) Which option would you most want people to use?

8. Levels of Fix – Problem Solving Level 1 Fixes: Fix the Output Promptly correct problems that appear in existing output or that occur during the delivery of a service Level 2 Fixes: Fix the Process Change the process that allowed the problem to occur; develop ways to prevent its recurrence Focuses on ‘as is’ and ‘to be’ only Level 3 Fixes: Fix the System Change the system that allowed the faulty process (that led to the faulty product or process) to operate with these flaws. To fix the system you need ‘METHOD’ to study the end to end system Traditional Approach Systems Approach

9. What might a system look like? Front Office Activity 1Activity 2 Provide Service Request for Service 2 week backlog Request missing info. Additional Info. Progress Chase Management KPI’s Management KPI’s Management KPI’s Management KPI’s Support We functionalise – Organising for us not our customers Each Function achieves KPI’s – What matters to Customer? How long does the Value work take? % of Value / Failure in Demand. Your Organisation has 50+ of these

10. What problems are you trying to solve?

11. Who is using Systems Thinking? Torridge District Council (planning, benefits, council tax) Newcastle Borough Council Staffordshire County Council Staffordshire Moorlands District Council Stratford District Council Warwick District Council Swale Borough Council (benefits) St Edmundsbury Borough Council (homelessness, waste management, invoice payments) Portsmouth City Council (benefits) West Midlands Police Plus lots more… the list is ever increasing

12. By What Method?

13. Service Leader PrepImplementDesignSet - UpVisionAssess Sustainment & Continuous Improvement Members Strategic Directors Internal Facilitator Support Functions (Customer Services, Legal, ICT Finance, HR) Internal Facilitators Skills Transfer Shadow Facilitators The Habanero Method

14. Measures Work Design Roles and Structure Different Principles Where does Redesign Impact?

15. What have we learnt?

16. Change is difficult

17. SocialTechnical Macro Micro What is Systems Thinking Change? Big issues Thinking (C&C V ST) Psychology Organisation Learning Knowledge Leadership Helping Skills Purpose of System Demand Measures of Capability Flow System Conditions Thinking (C&C V ST) Psychology Organisation Learning Knowledge Leadership Helping Skills Fit with macro purpose Demand Measures of Capability Flow System Conditions

18. What have we learnt? Change is difficult Leaders need to engage and lead

19. Leadership Behaviours Command and Control Motivate people…………… Who is wrong………………. Allocate responsibility……... Focus on the bottom line….. Individual Achievement……. Give crisp marching orders.. “Do your job”……………….. Decisions driven by opinions… React (short term)…………. Crisis management ………. Systems Thinking Remove barriers What is wrong Study the process to improve Focus on process improvement Group achievement Establish well defined processes “How can I help you do your job?” Decisions driven by data Improve (long term) Pro-active management

20. What have we learnt? Change is difficult Leaders need to engage and lead Success = changed thinking and behaviour = sustainable transformation

21. Thinking Governs Performance Thinking System Performance Change Analysis What is the thinking? That has created the …. That resulted in the …….

22. The New Leadership Competencies Competency 1 The ability to think in terms of systems and knowing how to lead systems Competency 2 The ability to understand the variability of work in planning and problem solving Competency 3 Understanding how we learn, develop and improve, and leading true learning and improvement Competency 4 Understanding people and why they behave as they do. Competency 5 Understanding the interdependence and interaction Competency 6 Giving vision, meaning, direction and focus to the organisation

23. Defined by the customer Find ways to understand & delight customers Design systems & processes against purpose & demand Learn to manage the organisation as a system Understand variation & what matters Decisions based on data Measure what matters to customers Common purpose Cooperation not competition Continuous improvement & learning Belief in people; treat with dignity, trust & respect Lead by example Scientific ApproachAll One Team Joiner Triangle Quality The Joiner Triangle

24. What have we learnt? Change is difficult Leaders need to engage and lead Success = changed thinking and behaviour = sustainable transformation Pull on the experts It’s a way of life!!! It works!!!

25. What Next? Set up a systems thinking experiment with one of the fire authorities in the West Midlands Region. Work with the Audit Commission to explore the potential for systems thinking as a transformation method. Work with PIN as a mechanism to report back progress.

26. Questions

27. Contact Details for Habanero HABANERO business consulting | Contact Us | 0845 123 3852 Contact Us Contacts Wilma Paxton-Doherty Matt Arnold