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Systems ThinkingThe method

The system makes the performance

The beam ties the two pillars together. It is a reminder that results are not won department by department: they depend on how customer demand travels through the whole organisation, from suppliers to delivery.

What the literature says

The reference works this part of the house rests on.

Seddon, J. (2003). Freedom from command and control: A better way to make the work work. Vanguard Education.

A British occupational psychologist and founder of the Vanguard consultancy, John Seddon has spent his career studying service organisations: banks, insurers, call centres, public services. This book shows why command-and-control management (numerical targets, departmental budgets, procedures handed down from the top) often damages what it claims to improve.

His most useful idea is failure demand: the calls, letters and chasers that exist only because something was not done, or not done right, the first time. In a council housing service, his team counted 80% of 1,200 calls. Seddon proposes designing the organisation from customer demand and the flow that answers it, starting by studying the work as it is really done, seen from the outside in.

How Phi-Lean applies it

What we actually do, on the ground and with your teams.

  1. We map the flow end to end (VSM), from customer demand to delivery, cutting across departments instead of auditing them one by one.

  2. In services, we measure failure demand before trying to “process faster”: removing a chaser beats automating it.

  3. We replace targets that pit departments against each other with measures that follow the flow: end-to-end lead time, on-time delivery, right first time.

  4. The Beer Game, designed at MIT in the 1960s, lets teams live the bullwhip effect: everyone decides sensibly, and the system still produces cascading stock and shortages.

And in your company?

This will sound familiar if…

  • Every department hits its targets, and the customer is unhappy.
  • The same problems come back after every reorganisation.
  • A good share of incoming calls are chasers or complaints.
  • Stock goes up, and so do shortages.

What it changes for you

  • Shorter end-to-end lead time, without extra pressure on teams.
  • Less useless work: chasers, re-keying, corrections.
  • Indicators that bring departments together instead of setting them against each other.
  • Improvements that last, because they change the system and not just one workstation.

The cost of waiting

A badly designed system manufactures its own work. Every month, failure demand ties up people you are paying to serve customers.

Phi-Lean is a small firm, on purpose: Manuel Gourmand leads every engagement himself, from the diagnostic to the last workshop. The number of engagements running at the same time is therefore limited. If this is on your agenda this quarter, it is worth talking now.