Agility and Organisational Change
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Transcript of Agility and Organisational Change
www.onlydeadfish.co.uk@neilperkin
http://www.flickr.com/photos/16863501@N00/207844624/
BATS & PIZZAS(AGILITY AND ORGANISATIONAL CHANGE)
CEOs consider technology the single most important
external force shaping their organizations
IBM CEO Survey 2013
“If the late 20th Century was the age of the multinational company, the early 21st will be
the age of the micro multinational: small companies that operate globally”
Hal Varian, Google Chief Economist
http://little-people.blogspot.co.uk/
http://www.flickr.com/photos/104810962@N02/10826694396/
“A large organisation is almost nothing but a massive knot of pre-existing relationships.”
Matt Edgar
http://www.quora.com/Innovation/Why-dont-big-companies-innovate-more/answer/Matt-Edgar?srid=pJZn&share=1
Sticky Organisations
“Good ideas alter the power balance in relationships, that is why good ideas are always initially resisted.” Hugh MacLeod
Source: MIT Sloan Management/Capgmini, “Embracing Digital Technology”, 2013
Culture is one of the most significant barriers to digital transformation
Toxic Assumptions
"Chess, like business, is a balance between the mundane and the unthinkable. Each move has game changing consequences, sometimes you must win by doing the right thing each time….but at Grandmaster level we all think 25 moves ahead and are familiar with every nuance of the game. The only way to win at that level is to do the unthinkable, something
that explodes the game and upends my opponents thinking.” Gary Kasporov
HT Scott Gallacher, The Aston Group
Taking the Long View
Key tension - requirement for longer-term strategy and investment vs constant need to hit short-term targets
“We are willing to think long-term. We start with the customer and work backwards. And,
very importantly, we are willing to be misunderstood for very long periods of time. I believe if you don’t have that set of things in
your corporate culture, then you can’t do large-scale invention.”
http://mattfollows.com/W-K-Embrace-Failure
Jim Collins:Empirical Creativity
"An effective test is an exercise in humility; it’s only useful in a culture where desirability is not confused with likelihood. For a test to change things, everyone has to understand that their opinion, and their boss’s opinion, matters less than what actually works and what doesn’t”
FASHIONISTAS DIGIRATI
BEGINNERS CONSERVATIVES
http://www.capgemini-consulting.com/the-digital-advantage/
Concept
DetailedDesign
DetailedDesign
Build Build
DetailedDesign
DetailedDesign
Build Build
SPRINTREVIEW
SPRINTREVIEW
SPRINTREVIEW
SPRINTREVIEW
http://www.slideshare.net/razorfishmarketing/razorfish-ray-velez-and-laura-fraga-ford-motor-on-agile-processes?from=ss_embedFord Motor/Razorfish agile principles
A broad based opportunity:Innovation, efficiencies, customer experience
Impacts processes, structures, ways of working
Progression of agility through an organisation, agile philosophy and culture
Spotify – Tribes, Chapters, Squads
“I wisely started with a map” J.R.R. Tolkien
“The notion of ideas as this singular thing is a fundamental flaw. There are so many ideas that what you need is that group behaving
creatively. And the person with the vision I think is unique, there are very few people who have that vision.. but if they are not drawing the
best out of people then they will fail.” Ed Catmull, President of Pixar
1. Commercially minded2. Customer-centric3. Open and transparent (data)4. Collaborative (cross-function, tools)5. Non-hierarchical6. Growth hacker7. Empowered (fail fast, ideas from anywhere)8. Data driven (test and learn, evidence based)9. Passion (hungry to learn, curious)10. Innovative and agile (embrace change, process)
What is digital culture?
Image: http://gapingvoid.com/
"We aggressively stood on the shoulders of giants like Amazon, and used technology that was built by other people. We had a pretty good culture of using not-invented-here technologies.
And we weren't scared about it."
“Government should only do what only government can do. If someone else is doing it — link to it. If we can provide resources (like APIs) that will help other people build things — do that. We
should concentrate on the irreducible core.”
• Policy as the starting point = overly detailed input• Digital versions of existing practices• Lengthy and complex procurement• Inflexible solutions
• Driven by user need• Alpha of the service in 12 weeks• Rapid reaction to user feedback from multiple
sources• First 10 days after release over 100 changes at
negligible cost.• In many cases, delivery of services has come
before final strategy work is completed
"In an analogue world policy dictates to delivery, but in a digital world delivery informs policy".
1. They are obsessed with the quality of the product/experience. 2. They are obsessed with talent.3. They can explain the vision for the company in a few clear words.4. They generate revenue very early on in their lives5. They are tough and calm6. They keep expenses low7. They make something a small number of users really love8. They grow organically9. They are focused on growth10. They balance a focus on growth with strategic thinking about the future11. They do things that don't scale12. They have a whatever-it-takes attitude13. They prioritize well14. The founders are nice15. They don't get excited about pretending to run a startup16. They get stuff done17. They move fast.
http://blog.samaltman.com/super-successful-companies
What Makes a ‘Super-Successful’ Company?
Budget split Life stage Objective KPIs Team
70% Core/oldest products Small growth Maintain profit ‘Rowing team’
20% Young/mid Increase share and profit
Profitable growth ‘White water rafters’
10% New Prove leap of faith Solving user problems
‘Diving for sunken treasure’
http://www.slideshare.net/martinbailie/sxsw-2013-themes-startup-culture-code-and-data
So how do we make change easier?
Image: http://www.creativecorporateculture.com/business-model-innovation_2/http://www.doblin.com/tentypes/
“The most innovative companies innovate in the broadest possible ways.”
The Ten Types of Innovation
“Looking outside your own industry for inspiration is as useful as it’s ever been, but you need people who can think laterally enough to apply an unfamiliar idea to their
own situation.”
The Importance of Fresh Perspectives
Getting patients from surgery to ICU in Gt Ormond St…
Chance favours the connected mind
• The eureka myth• Ideas take a long time to mature• Collision of ‘half ideas’• Connectivity drives collisions
Ideas From Anywhere
• Connected employees bring new thinking into the organisation
• Allows for innovation at the edges – non-core thinking
• Companies less reliant on ‘stocks’ of knowledge, and more connected to ‘flows’ of knowledge
Porous Enterprise
“…fully networked enterprises are not only more likely to be market leaders or to be gaining market share but also use management
practices that lead to margins higher than those of companies using the Web in more limited
ways.”
The Networked Enterprise
Test and Learn
It took Rovio 51 attempts and six years to come up with Angry Birds. It took over 5,000 prototypes and 15 years of perseverance for James Dyson to launch the
Dyson DC01 vacuum cleaner under his own name
“Prototype an idea as soon as possible, be transparent and have a fact based organisation – endeavour to constantly remove guesswork.”
Developing a culture of experimentation
Inspiration, Insight
Idea Generation
Idea Selection
Incubation, Implementation
Deployment, Scalability
The Innovation Value Chain
CHANGE IS A PROCESS NOT AN EVENT
http://www.stephentaylorpaintings.com/paintings/oaks.aspx
http://www.kotterinternational.com/our-principles/changesteps
Bottom-up, Top Down change
Technical change: change that addresses tangible products, procedures or processesAdaptive change: less tangible human aspects - attitudes, thinking, beliefs, values, behavioural change
Technical and Adaptive Change – Embracing Uncertainty
Knoster T, Villa R, & Thousand J. (2000). A Framework for Thinking about Systems Change. In R. Villa & J. Thousand
“You can’t extinguish a bad habit, you can only change it.”
Changing Organisational Habits
“When people join groups where change seems possible, the potential for that change to occur becomes more real.”
You Are Who You Choose to Spend Time With
http://www.amazon.co.uk/exec/obidos/ASIN/1591846919/
"If you do something every day, it’s a system. If you’re waiting to achieve it
someday in the future, it’s a goal."
Systems Trump Goals
http://www.amazon.co.uk/exec/obidos/ASIN/1591846919/
"If you do something every day, it’s a system. If you’re waiting to achieve it
someday in the future, it’s a goal."
“The goals people are fighting the feeling of discouragement at each turn. The systems
people are feeling good every time they apply their system."
Systems Trump Goals
"I was moving from a place with low odds (being an out-of-practice writer) to a place of good odds (a well-practiced writer with higher visibility)."
A Bit Like Blogging…
http://thisisindexed.com/
http://www.fraggl.co.uk/http://austinkleon.com/2011/03/30/how-to-steal-like-an-artist-and-9-other-things-nobody-told-me/
The Technology Hype Cycle
Idea TriggerTrough of Disappointment
Peak of Inflated Excitement
Slope of hope
Highland of headway
The Idea Hype Cycle
What does this mean for me?
Be the change you wish to seeBut remember change is a process, not an eventDon’t just think creativity – think empirical creativityAsk the awkward questionsFocus on behaviours, not technologyAlways be learningHumility wins. Surround yourself with people who inspire youConnect with the great thinking that is given away freely in this industryDon’t fight the old, build the new!
www.onlydeadfish.co.uk@neilperkin
Thank you!