Lean Service Design Presentation at ASQ Service Quality Conference
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At the ASQ 2013 Service Conference, this week, I had the honor of giving a sixty-minute presentation on Lean Service Design. All the participants of my presentation received a CD that contained my Lean Service Design Program. This is my slidedeck from the presentation.
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Lean Service Design Presentation at ASQ Service Quality Conference
- 1. Lean Service Design by Joe Dager, Business901
- 2. Lean Service Design CD • All Participants will receive a CD that contains… – 130 Page PDF eBook – PDF & Excel work forms – Training Videos – Bonus eBooks and Audio Tracks
- 4. Lean Service Design Lean • Identify Value • Map Value Stream • Create Flow • Establish Pull • Seek Perfection Design • Empathize • Define • Ideate • Prototype • Test Service • Expectations • Understanding • Standards • Delivery • Perceptions SD-Logic PDCA
- 5. Lean Service Design Customer Experience will mimic your Employee Experience Know your team, design for personal & social needs Build fun/pleasure/satisfaction into activities Embrace motivators like power, autonomy & belonging
- 6. Lean Service Design We are in a Service Economy Do we act that way? Or think that way?
- 7. Lean Service Design We hang on to past practices! The value chain is a concept first described and popularized by Michael Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining Superior Performance.
- 8. Lean Service Design Goods Dominant Logic • Assumes Better, Faster, Cheaper wins • Limits mind-set for co-creation opportunities • Transactional exchange struggles w loyalty • Constraints on developing lifetime value
- 9. Lean Service Design Shifting from Product Dominant Thinking and Transactions to Service Dominant Logic and Co-Creation of Value Value is Derived thru Use Functional Emotional Social The Service-Dominant Logic of Marketing edited by Robert Lusch and Stephen Vargo
- 10. Lean Service Design "We make money when people use our devices.” -Jeff Bezos, Amazon It is not about the things we make it is about how our customer uses the things we make
- 12. Lean Service Design Influencers Team#1 Team #2 User
- 14. Lean Service Design Pre-Service Service Post Service
- 15. Lean Service Design Pre-Service Service Post Service
- 16. Lean Service Design Pre-Service Service Post Service
- 18. Lean Service Design Pre-Service Service Post Service
- 21. Lean Service Design SWOT Form Strengths: Internal to organization; Things we do better Weaknesses: Internal to organization; Things we do worse Opportunities: External to organization; Things to capitalize on Threats: External to organization; Things to worry about Key Leverage Points: Opportunities we can leverage our strengths against (where play to win) Business Implications: Threats our weaknesses make us vulnerable to (where play not to lose) Sustainable Competitive Advantages: Key leverage points that can be sustained over extended period of time
- 22. Lean Service Design Painting the Vision (SOAR) (Strength, Opportunities, Aspirations, Results) Strengths: Internal to organization; What is our core Opportunities: External to organization; What might be Aspirations: Internal to organization; What should be Results: External to organization; What will be Key Leverage Points: Opportunities we can leverage our strengths against (where we play and win) Business KPIs: Key Performance Indicators that we can measure over extended period of time
- 25. Lean Service Design 1. See – Ask: What are you thinking? 2. Sort – Ask: What it means? 3. Sketch – Ask: Why does it matter?
- 26. Lean Service Design Strengths Inquire into Strengths Aspirations Innovate to meet Opportunities Imagine desired outcomes Results Inspire to Continuously Improve Key leverage points Business KPIs Sustainable competitive advantage (Positive Core of Organization) Tactical Strategic SOAR SWOT Form Strengths Weaknesses Opportunities Threats Key leverage points Business issues Sustainable competitive advantage Internal External
- 28. Lean Service Design Pre-Service Service Post Service Evaluate – Pick Best idea
- 29. Lean Service Design Value Stream Canvas or Business Model Canvas
- 30. Lean Service Design Our Frame of Reference
- 31. Lean Service Design Make it Prescriptive Kill Engagement
- 32. Lean Service Design Intention of Lean Helping Hand
- 35. Lean Service Design John Boyd’s OODA Loop from Wikipedia
- 36. Lean Service Design Check Act Plan Do
- 37. Lean Service Design Learning by reflecting on the experiences of the past Learning from the future as it emerges
- 38. Lean Service Design Learning by reflecting on the experiences of the past Learning from the future as it emerges
- 41. Lean Service Design What makes CAP-Do so attractive is that it assumes we do not have the answers. It allows us to create a systematic way to address the problems (pain) or opportunities (gain) from the use of our products and services.
- 43. Lean Service Design Joe Dager Business901.com Over 220 Free eBooks, Podcasts & 2,000 Blog Posts
Notas del editor
- Welcome everyone, I am Joe Dager – your presenter- What has been the main theme of the conference so far? What has changed in your mind?
- Leading Experts to include Stickdorn, Osterwalder, Joe Pine, Michelli, etc.
- Lean has been very successful in Services and Design through traditional practices. Have you applied Lean/6Sigma to Service / Design? R u Familiar w/ Service Design? What about Lean Startup, EDCA
- EDCA as more of Design Type thinking approach. SD-Logic is the short term for Service-Dominant Logic . This is how I look at LSDT SDCA-PDCA-EDCA Service Design = Empathy
- Traditional thinking evolves around the supply chain and goods dominant logic. We have used Lean to make products that are easy to use, manufacture and make money with. There is a need for organizations to differentiate through service quality and customer experience. We still design services in much the same manner as we do products, through features, benefits
- In product design, there are two thoughts of design. One, the efficient development of products that solve problems for people and the other is to make products more appealing. Changes our mindset of thinking about design at the end of the supply chain. Trying to make it look good and add a few appealing features. Instead, it moves design and the user themselves to co-create or co-produce the desired experience to the beginning of the supply chain.
- Today’s most critical driver of success is usability excellence. Users are your growth engine for your customer base and for your entire organization!
- Goods dominant logic assumes better, faster, cheaper wins. Customers pay for how value is derived from the use of the product. Even a company like Caterpillar recognizes that it has become their dealer network It is in the use of the product/service that value is derived. Think of value in 3 ways: Functional, Emotional, Social. Thinking of a Ferrari, I use it to drive (functional), makes me feel good (emotional) and what others think – I am successful (social). All provide value but without the latter two, I could buy a bike. Using this as a guideline, value (Functional, Emotional, Social) is embedded in the use of the product rather than the price.
- Fundamental shift within the organization placing the customer and user experience as the center. Lean viewed through the lens of a knowledge creation platform serves as the vehicle for implementation of this Logic. SD-Logic is based on 10 foundational principles but to highlight just two: Products and Services are enablers of Value Value is always determined by the customer (value-in-use) Rolls Royce developed a leasing plan to offer to aircraft builders. Zipcar rents cars for use. You only pay for it when you use it. Think of Amazon – Kindle is not a product it is an enabler of use. We must accept that customers do not care how we do our work. Focusing on our own activity encourages internal thinking and misplaces our priorities. Just think of what you create at work – how do you explain it pencil/pen Just think of how you talk about when you use it.
- Through the functions of SDCA, PDCA, EDCA create a culture The little “i” of innovation is provided through the actions of SDCA and PDCA. The Big I of EDCA is difficult to achieve without the little “i” in place
- There are many tools in Service design, as many as there are in Lean and Six Sigma. They are not rigorous and as you those in Lean/6Sigma. I want to touch on 3 basic tools, Influencer diagram. Where we put the user at the center and than simply start drawing circles around us. Just like an influencer diagram.
- The next tool is a Empathy Map, or a User Persona any UX people here? Know, Feel, Do The biggest difference you will find between design and engineering is empathy. Making it personal more about 10 and getting a 100 versus 100 getting 10 Not saying Walmart should sample 10 Taking the time here is imperative to understanding your service process.
- The next thing created is a Customer journey map This is expanded out a little further to what some might call a Service blueprint. We are looking for touch points or customer interactions And how we react to them Service quality can be defined how the touchpoints work together
- Label your paper across the top like this and underneath it put something that you do as an individual, A service you provide within your job function -
- Someone brings you a pain and you provide a service and tunes it into a gain for the next person? What added value do you provide? Who adds value to what you do? Departments have personality Organizations have personality
- But back to the Empathy Map – you understand what you do and how you feel – the essence of service design – it is a people thing
- Now we add who influences us and how we influence others. We can think it as a journey even a concept map, not only telling us who but what they are dong. Influencers do you know how they think and feel – How do you learn more? – Interviewing – How do you extend your reach – Interviewing How do you apply this with customers? Go ask, Go See – in Lean Genchi Gembutsa, Gemba
- We start is to determine touchpoints with the service Most design session are with post notes and we talk actors, front stage, back stage. But do not try to get to granular. You are providing a broad overview. The purpose at this point is time is creating a team not designing the system.
- When designing a new service Try to create 7 Customer service blueprints such as ones that prioritizes Social needs, or functional needs, cost (self –service), emotional needs and create different scenarios. Do not worry so much about having overlap. Seven is typically not that difficult to come up with and it is not a magic number but I would warn against doing to few.
- Evaluate the ideas using SWOT OR
- SOAR is a great method to use for expanding on the positive areas of an organization. Easier to gain buy-in from stakeholders with this approach versus others.
- You may also want to use or incorporate several other evaluation tools that you are familiar with. We are not trying to replace anything that works well for you now It is not the quantity of tools but the tools that you can use to evaluate the different ideas that you have proposed. Qualative is not better than quantitative – a mix
- The purpose is to use a variety of tools to narrow the process effectively down to 3 service blueprints or processes. Pick 3 that you feel are the ones that your organization can deliver on and that your customer prioritizes.
- Build prototypes for each of the three and try them out. Refine your post-it-notes for the three service blueprints Try to make it a workable solution and process. Do not try to get elaborate with the prototype. One of my favorite stories comes from the person that took the PDA to market. The more complete your product is the less you will get feedback. Service Design is about designing with people w customers
- On these 3 do another SWOT and/or a SOAR analysis on each.
- Go thru your analysis
- Continue to refine your prototype till you can narrow it to one or eliminate two. Picking your best idea as a result of the prototypes and fill any gaps that you may have. You have developed a hypothesis worth trying. This not SDCA, it is now PDCA
- Develop regular discussion around the visual management board Foundation of Leader Standard Work; visualization and joint responsibility. Drive down decision making to the customer facing areas This structure provides the clarity and feedback for even the inexperienced service provider. The Standard Work of EDCA will generate more creative solutions versus hindering them. It will save time on documentation and reporting. People are actually more creative when they have a framework to start with. Teamwork is part of the process from the beginning, and teams are always more creative (and effective) than the individual. Now we have a team a board, less most of the post-it notes and we are ready to get out of the way and leave our design team start.
- Most people or organizations are looking at 1 and 1 thing only – Streamline Service - Work on the process – We are Process people – We want to make things Better, Faster, Cheaper.
- Reducing engagement is a simple matter. Simply replace the option to choose with a mandate. The founding fathers referred to this as ‘tyranny’.
- What really is the intention of Lean? Lean methods, done right create emotional integration. Why not give sales a helping hand instead of manipulating them?
- Revisited Dr. Edward Deming and Peter Scholtes and Brian Joiner . Amazed at the clearness of thought that they offer, Completely untainted with Japanese words and constant references to Toyota. Akao is the person from where you may have fist read about QFD and Hoshin Kanri. Joiner and Akao recommended the Use of CAP-Do
- Adaptive Learning, the OODA Loop, CAP-Do are different than your traditional improvement cycles. Akao used CAP Do in Hoshin. Where we played catchball down through the process of Objectives – Strategies and Tactics. Akao and Terninko used CAP Do in QFD work. In Lean Software and the Lean Startup is basically a derivative of the OODA Loop or CAP-Do. It is the appropriate cycle we need in Lean Service Design.
- In the Agile world you find will John Boyd’s theory of this thing we call agility. His key agility concept was that of the decision cycle or OODA Loop (Observe, Orient, Decide, Act): Observe: The lightning-quick collection of relevant information about your current environment by means of the senses rather than drawn-out data analysis. The challenge, of course, is picking the right data to focus on. Orient: The analysis and synthesis of information to form one's current mental perspective. This is where information is turned into situational awareness. Don’t think a chess game but think a 3D chess game. Decide: The determination of a course of action based on ones current mental perspective. Act: The physical carrying out of the decisions. Of course, while your action is taking place, it will change the situation, favorably or unfavorably. Then the loop repeats, again and again, in real time, as nothing is standing still. 40 Second Boyd was his nickname. He was a top gun type, the Viper and he would bet that he could be on your tail in 40 seconds. I assume since the nickname Stuck, he did it
- I stumbled applying OODA to Lean till it finally dawned upon me that it was CAP Do not a PDCA Cycle. Look at the ingredients. Leading companies are taking this "unsystematic" approach to business innovation and turning it into repeatable, managed business processes. Disney has a process, GE calls it GENCOR (calibrate, explore, create, organize, and realize) The Mayo Clinic calls it SPARC (see, plan, act, refine, communicate). Lean Start Up. Eric’s original thoughts contained much of the OODA Loop principles. Bill Dettmer book, Don Reinertsen and on and on have included the OODA Loop as their basic thought.
- Applying CAP –DO will develop deeper perception of customers and experiences they have. When I discuss the CAP Do Cycle, I rely heavily on Otto Scharmer’s work that he captured in the book, Theory U. Heavily influenced by Peter Senge of The Fifth Discipline fame. Systems Thinking – Dr. Deming In Cap Do we are asked to first learn by reflecting on the experiences of the past. Looking and Thinking corresponds to Checking and Acting. Plan and Do represent the interactions of learning by doing. We learn from the future as it emerges. The Theory U, when applied to the CAP-Do cycle, does a remarkable job of explaining the shift required from internal thinking as an organization and moving to collective/external thinking. Scharmer calls this link the field structure of attention.
- However, there is one item that is important to emphasize. The Pause – Theory U calls it Presencing: connect to the source of inspiration. They tell you to go to the place of silence and allow inner knowing to emerge . In Lean terms, it is a state of reflection or Hansei. Reflection needs to come before the Plan stage. I think it is the missing ingredient in many of our iterative cycles. To test this is quite simple; ask yourself, can you accept divergent thoughts without reflection, without a PAUSE?
- Some times it difficult to notice but during these cycles you are shifting form internal work of Checking and Planning
- to external work of Acting and doing. Teams are facing new challenges that are solved by collective thought. This collective thinking needs to be done internally, externally and across organizations. It will not come naturally and needs to be created and learned. This is what makes Lean powerful
- Service people return from an external world that has afforded them the opportunity to explore, converse, share ideas, and ask questions. They are met upon their return to a restrictive internal world. It is what separates Demand side from the Supply side. Don’t go down this path. It has failure written all over it. It is a prescription for cost savings not for growth. This is a hold over from products, not efficiencies but complete customer experiences
- CAP-Do is what makes Lean, a viable tool in service design. If we want to be customer focused, and customer centric we cannot start with planning and definition of a customer’s problem. It is not about us being problem solvers with a pre-defined product or service that we offer. We must focus on checking what a customer really wants. Understanding the Job that is needed to be done. We must uncover common intent through listening and discovery. CAP-Do is the alignment and understanding incorporated in daily actions The ultimate driver for our service efforts.