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The Rules Have All Changed. Or Have They? James Crawford, Conference Chair, Director of Touchpoint Change Consulting TRANSFORMATION 2009
© The Deming Forum Welcome to The 10 th Annual Deming Transformation Forum TRANSFORMATION 2009
© The Deming Forum Transformation 2009 The rules have all changed. Or have they? Ten years ago the UK Deming Transformation Forum held its inaugural conference to promote sustainable transformation. It recognised that there are well-trodden paths to sustainable success. Organisations must work steadily to improve their performance, focus tirelessly on the needs of their customers, deliver consistent and high quality services, and embed a systematic approach to continuous improvement. Top-down bonus and target-driven approaches tend to optimise each department at the expense of the others. Instead, leaders must work on the whole system, identifying the flows of work and customer pathways, facing their problems honestly and involving all of their staff in the effort. The years since the dot com bubble offered the promise of economic stability, high employment, endless steady growth, easy credit and improving environmental responsibility. In 2008 it became apparent that this was an illusion. It seems that the rules of business and politics have now changed. Or have they? Most of the problems that we are now experiencing could have been predicted many years ago (and indeed were). But during the good times few people seem to want to know about the risks. Problems were clearly being stored up and the psychology of society continued its timeless swing between exuberance and despair – boom and bust. Systems Thinking and Deming's management methods work to transform any organisation in any economic situation and will provide success over the long term. Originally developed and refined by Dr W.E.Deming, they now provide the framework for the Deming Transformation Forum in 2009.
© The Deming Forum Managing Transformation Means Transforming Management
© The Deming Forum … the flow of its processes? Is an organisation the sum of its cost centres? … the product of its relationships?
© The Deming Forum Turnaround & transformation – there are many key factors. Even pure survival is about more than cash. Operational processes Technology and communications Strategy, business plans and policies Cash flow, cost base, profitability, revenue & debt Cash flow, cost base, profitability, revenue & debt Organisation and culture Management information Learning, development & improvement Research, marketing & business development IPR, commercial and legal arrangements
© The Deming Forum The nature of an organisation & its people All organisations are unique. Each organisation has its own culture and history. Each organisation is inhabited (and the processes are undertaken) by its own unique group of people. These people have their own agendas and interpretation of their role. They have their own perceptions of the relationship of their work to the organisation’s mission. They have their own views on the organisation mission itself. These multiple perceptions cannot be ignored in any approach that tries to be relevant. Hence you are always doing change for the 1 st time. Courtesy: Brian Wilson, 2009
© The Deming Forum Deming’s system of management The disciplines underlying successful transformation Developed out of 50 years of experience working in some of the most challenging areas. His philosophy and methods were initially bro9ught together in his book ‘Out Of The Crisis’ in 1988 and summarised at that point in time in his famous ‘14 Points for management’. Later distilled into his ‘system of management’ based on the 4 key disciplines that shape and guide the transformation of any organisation. See the next slides or ‘The New Economics’ (1993).
© The Deming Forum Organisation transformation – a lens See ‘The New Economics’, W.E.Deming, 1993
© The Deming Forum Systems thinking Having a clear purpose, taking a holistic view and managing every interdependency to achieve success
© The Deming Forum Psychology Why we behave as we do, how we can work together better and how everyone could take more pride in what they achieve together
© The Deming Forum Understanding variation Appreciating that all measures vary constantly, discerning the difference between significant ‘special cause’ variation and random variation – and taking the right action
© The Deming Forum Knowledge and learning Testing what we think we know, fostering innovation and directing it to consistent business improvement
© The Deming Forum Achieving the transformation for the benefit of everyone; customers, service users, suppliers, stakeholders – and ultimately the environment and society as a whole. The fifth area … humanity?
© The Deming Forum Deming’s system of management - the four key disciplines required to transform any organisation. Take a whole system approach; outside-in and end-to-end, from the customers’ perspective Ensure everyone in the business is aligned, working together, and able to contribute their energy and ideas Design for constant improvement - gain feedback from customers & staff, use prototyping & methodical learning Collect data regarding the variation in key measures, and use this to prioritise development and change
© The Deming Forum The job of a leader is to accomplish transformation of the organisation. W.E.Deming [Source: The New Economics] Leadership
© The Deming Forum The improvement cycle The aim - to improve society Optimise the end to end process Listen to the voice of the process (measurements aligned with customer needs) Separate noise from signal – Common cause from Special cause Empower staff to use the data to make improvements - SPC People motivated through pride in their work Constant improvement Stimulates innovation UnderstandingvariationUnderstandingvariation Constantimprovement & innovation Constantimprovement EmpoweringpeopleEmpoweringpeople Lean end to end processes processes Understand the customer better Remove wasted steps, resource and delay. Smooth the flow of work and the demand People learn and exercise more creativity Scientific approach to learning
© The Deming Forum Managing Transformation Means Transforming Management
© The Deming Forum “Shift happens …” The rules may not all be changing, but the game is changing. Click the picture below and select Full Screen to see a video on how education, demographics and technology are already changing everything …
Remember Transformation – 12 – 13 May Wyboston Lakes, Bedfordshire
© The Deming Forum James TS Crawford Conference Chair, The Deming Transformation Forum Director, Touchpoint Change Consulting James Crawford is a Business Transformation Director, Interim Manager and Change Consultant who specialises in performance improvement, change management and programme delivery. Having served on the boards of United Utilities ICS, eXstream Networks and Cheshire County Council, he now heads up Touchpoint Change Consulting that helps organisations of all sizes turnaround, grow, manage complex change and continuously improve. He is a passionate promoter of better management practices when working in the private, public and not-for-profit sectors. He speaks at conferences to explore and promote more effective approaches to organisational change. He graduated from Bristol University and is an accredited Project Manager.
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