Lean Enterprise - Enabling Innovative Culture

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Transcript of Lean Enterprise - Enabling Innovative Culture

1. Joanne Molesky & Barry OReilly @jemolesky #LeanEnterprise @barryoreilly ENABLING INNOVATIVE CULTURE 2. Right now, your company has 21st century Internet enabled business processes, mid 20th century management processes, all built atop 19th century management principles. - Gary Hamel, American Management Expert 3. MEET THE NEXT GENERATION $1-2B Valuation $2-5B Valuation $5-40B Valuation $40+B Valuation Sources: Dow Jones VentureSource and The Wall Street Journal. Valuations as of March 2015. 4. KEY FINDINGS OF 2014 DevOps Report High performance IT doubles your chance to exceed protability, market share and productivity goals. DevOps practices strongly correlates with IT performance Culture matters. Collaboration and experimentation contribute to organizational performance. Job satisfaction is the No. 1 predictor of performance. 5. BUSINESS CEO, COO, CFO, CMO TECHNOLOGY CIO, CTO, CDO (Digtial and/or Data) SOFTWARE IS EATING THE WORLD 6. BUSINESS CEO, COO, CFO, CMO TECHNOLOGY CIO, CTO, CDO (Digtial and/or Data) SOFTWARE IS EATING THE WORLD 7. BUSINESS CEO, COO, CFO, CMO TECHNOLOGY CIO, CTO, CDO (Digtial and/or Data) SOFTWARE IS EATING THE WORLD 8. BUSINESS CEO, COO, CFO, CMO TECHNOLOGY CIO, CTO, CDO (Digtial and/or Data) SOFTWARE IS EATING THE WORLD Technology as a strategic capability Willingness to support experimentation Iterative, adaptive working processes and practices Reduce learning anxiety across organization Ability to innovate at scale 9. CULTURE OF EXPERIMENTATION Theme 1 10. SHOOKS VERSION John Shook, MIT Sloan Management Review 11. CONTINUOUS IMPROVEMENT Humble, Molesky, OReilly Lean Enterprise: How High Performance Organizations Innovate At Scale 12. CONTINUOUS IMPROVEMENT Humble, Molesky, OReilly Lean Enterprise: How High Performance Organizations Innovate At Scale 13. PORTFOLIO MANAGEMENT Theme 2 14. DIFFUSION OF INNOVATION Everett Rogers, Diusions Of Innovations 15. CROSSING THE CHASM Georey Moore, Dealing With Darwin 16. CONTINUOUS LIFECYCLE OF INNOVATION Georey Moore, Dealing With Darwin 17. BUSINESS MODEL STRATEGIES EXPLORE Uncertainty Complex Emergent Experimental EXPLOIT Improved understanding Cause and eect Accumulated knowledge Forecast 18. INNOVATION PORTFOLIO explore exploit sustain retire kill kill kill kill Humble, Molesky, OReilly, Lean Enterprise: How High Performance Organizations Innovate At Scale 19. INNOVATION PORTFOLIO explore exploit sustain retire kill kill kill kill Humble, Molesky, OReilly, Lean Enterprise: How High Performance Organizations Innovate At Scale 20. INNOVATION PORTFOLIO explore exploit sustain retire kill kill kill kill Humble, Molesky, OReilly, Lean Enterprise: How High Performance Organizations Innovate At Scale 21. INNOVATION PORTFOLIO explore exploit sustain retire kill kill kill kill Humble, Molesky, OReilly, Lean Enterprise: How High Performance Organizations Innovate At Scale 22. INNOVATION PORTFOLIO explore exploit sustain retire kill kill kill kill Humble, Molesky, OReilly, Lean Enterprise: How High Performance Organizations Innovate At Scale 23. INNOVATION PORTFOLIO explore exploit sustain retire kill kill kill kill Humble, Molesky, OReilly, Lean Enterprise: How High Performance Organizations Innovate At Scale 24. INNOVATION PORTFOLIO explore exploit sustain retire kill kill kill kill Humble, Molesky, OReilly, Lean Enterprise: How High Performance Organizations Innovate At Scale 25. INNOVATION PORTFOLIO explore exploit sustain retire kill kill kill kill Humble, Molesky, OReilly, Lean Enterprise: How High Performance Organizations Innovate At Scale 26. INNOVATION PORTFOLIO explore exploit sustain retire kill kill kill kill DISRUPT Humble, Molesky, OReilly, Lean Enterprise: How High Performance Organizations Innovate At Scale 27. PORTFOLIO MANAGEMENT 28. TRANSPARENCY AND ALIGNMENT 29. NOTICE A PATTERN? 30. NOTICE A PATTERN? 31. NOTICE A PATTERN? 32. PROOF OF DISRUPTION 33. G I G A F A C T O R Y 34. THE DISRUPTION POINT Humble, Molesky, OReilly, Lean Enterprise: How High Performance Organizations Innovate At Scale 35. CREATING END-TO-END FLOW Theme 3 36. The main obstacles to improved business responsiveness are slow decision-making, conicting departmental goals and priorities, risk-averse cultures and silo-based information. Economist Intelligence Unit: Organizational agility: How business can survive and thrive in turbulent times 37. COMMAND AND CONTROL Compliance rules Risk models Quality controls Inspections Balanced scorecards Target and incentives Budget contracts Adapted from:http://www.bbrt.org/beyond-budgeting/bb-problem.html 38. COMMAND AND CONTROL STRATEGY EXECUTION ALIGNMENT Compliance rules Risk models Quality controls Inspections Balanced scorecards Target and incentives Budget contracts Adapted from:http://www.bbrt.org/beyond-budgeting/bb-problem.html 39. COMMAND AND CONTROL STRATEGY EXECUTION ALIGNMENT MICRO MANAGEMENT CONTROL ACCOUNTABLE FOR TARGET & BUDGET Compliance rules Risk models Quality controls Inspections Balanced scorecards Target and incentives Budget contracts Adapted from:http://www.bbrt.org/beyond-budgeting/bb-problem.html 40. COMMAND AND CONTROL STRATEGY EXECUTION ALIGNMENT MICRO MANAGEMENT CONTROL ACCOUNTABLE FOR TARGET & BUDGET Compliance rules Risk models Quality controls Inspections Balanced scorecards Target and incentives Budget contracts Adapted from:http://www.bbrt.org/beyond-budgeting/bb-problem.html THE CONTROL OF BUREAUCRACY 10-20% OF COSTS 41. TRADITIONAL VIEW 42. TRADITIONAL VIEW BUSINESS Many good ideas, we need money! 43. TRADITIONAL VIEW BUSINESS Many good ideas, we need money! PROJECTS Were working, give us money! 44. TRADITIONAL VIEW BUSINESS Many good ideas, we need money! PROJECTS Were working, give us money! OPERATIONS That doesnt work need more money! 45. STOP THE PROCESS MADNESS Lean Enterprise Loop Enterprise Loop Humble, Molesky, OReilly, Lean Enterprise: How High Performance Organizations Innovate At Scale 46. STOP THE PROCESS MADNESS Lean Enterprise Loop Enterprise Loop Humble, Molesky, OReilly, Lean Enterprise: How High Performance Organizations Innovate At Scale 47. STOP THE PROCESS MADNESS Lean Enterprise Loop Enterprise Loop Humble, Molesky, OReilly, Lean Enterprise: How High Performance Organizations Innovate At Scale 48. STOP THE PROCESS MADNESS Lean Enterprise Loop Enterprise Loop Humble, Molesky, OReilly, Lean Enterprise: How High Performance Organizations Innovate At Scale 49. Adhering to budgeting rules should not trump good decision making. - Emily Oster, American Economist 50. WHAT COULD POSSIBLY GO WRONG? ! !!!! Humble, Molesky, OReilly, Lean Enterprise: How High Performance Organizations Innovate At Scale 51. WHAT COULD POSSIBLY GO WRONG? $$ $$ ! !!!! Humble, Molesky, OReilly, Lean Enterprise: How High Performance Organizations Innovate At Scale 52. $$ BIG PROJECT! WHAT COULD POSSIBLY GO WRONG? $$ $$ ! !!!! Humble, Molesky, OReilly, Lean Enterprise: How High Performance Organizations Innovate At Scale 53. $$ BIG PROJECT!NO CHANGE WHAT COULD POSSIBLY GO WRONG? $$ $$ ! !!!! Humble, Molesky, OReilly, Lean Enterprise: How High Performance Organizations Innovate At Scale 54. $$ BIG PROJECT!NO CHANGE ! !!!! WHAT COULD POSSIBLY GO WRONG? $$ $$ ! !!!! Humble, Molesky, OReilly, Lean Enterprise: How High Performance Organizations Innovate At Scale 55. $$ BIG PROJECT!NO CHANGE ! !!!! WHAT COULD POSSIBLY GO WRONG? OPERATION COSTS $$ $$ ! !!!! Humble, Molesky, OReilly, Lean Enterprise: How High Performance Organizations Innovate At Scale 56. $$ BIG PROJECT!NO CHANGE ! !!!! WHAT COULD POSSIBLY GO WRONG? OPERATION COSTS $$ $$ $$ ! !!!! Humble, Molesky, OReilly, Lean Enterprise: How High Performance Organizations Innovate At Scale 57. $$ BIG PROJECT!NO CHANGE ! !!!! WHAT COULD POSSIBLY GO WRONG? OPERATION COSTS $$ GREAT JOB! $$ $$ ! !!!! Humble, Molesky, OReilly, Lean Enterprise: How High Performance Organizations Innovate At Scale 58. $$ BIG PROJECT!NO CHANGE ! !!!! WHAT COULD POSSIBLY GO WRONG? OPERATION COSTS $$ GREAT JOB! WTF? $$ $$ ! !!!! Humble, Molesky, OReilly, Lean Enterprise: How High Performance Organizations Innovate At Scale 59. FROM PROJECTS BUSINESS PROJECTS OPERATIONS Many good ideas - WE NEED $$$! Were working - GIVE US $$$! That doesnt work - NEED MORE $$$! Humble, Molesky, OReilly, Lean Enterprise: How High Performance Organizations Innovate At Scale 60. TO PRODUCTS PRODUCTS / SERVICES OPERATIONS Customers Service DeskOps Management Cross-Functional Product Teams Teams Push Changes Continuously Product Teams for IaaS / PaaS Infrastructure / Platform-As-A-Service Humble, Molesky, OReilly, Lean Enterprise: How High Performance Organizations Innovate At Scale 61. PERFORMANCE MEASUREMENT 62. PERFORMANCE MEASUREMENT MEASURE THINGS THAT MATTER Do our customers advocate us to others? What is the outcome we achieved? Have we reduced complexity of our technology? Are we getting better? 63. TAKE AWAYS 64. TAKE AWAYS Think Big, Start Now, Learn Fast Continuous innovation is a strategic capability Technology is the business 65. The Lean Institute: http://www.lean.org ! Management Innovation eXchange: http://www.managementexchange.com/ ! Beyong Budgeting Round Table: http://www.bbrtna.org/ OTHER RESOURCES 66. THANK YOU Joanne Molesky jmolesky@thoughtwoks.com @jemolesky ! Barry OReilly boreilly@thoughtworks.com @barryoreilly