Lean EnterpriseDefinition & Transformation

Fatma Ürek Uludağ

–Womack and Jones, Lean Thinking

“precisely specify value by specific product,

identify the value stream for each product,

make value flow without interruptions,

let the customer pull value from the producer,

and pursue perfection”

Lean?

–Humble, Molesky and O’Reilly, Lean Enterprise

“a complex, adaptive system composed

of people who share a common

purpose”

Enterprise?

NUMMI

http://www.thisamericanlife.org/radio-archives/episode/403/nummi

NUMMI

Technology is not enough!

Creative Destruction

https://www.technologyreview.com/s/519226/technology-is-wiping-out-companies-faster-than-ever/

McKinsey Global Digital Survey 2014

http://www.mckinsey.com/business-functions/business-technology/our-insights/the-digital-tipping-point-mckinsey-global-survey-results

• High-performing IT organizations experience 60X fewer failures and recover from failure 168X faster than their lower-performing peers. They also deploy 30X more frequently with 200X shorter lead times.

• Lean management and continuous delivery practices create the conditions for delivering value faster, sustainably.

• IT managers play a critical role in promoting diversity and limiting burnout.

2015 State of DevOps Report:

2014 State of DevOps Report:

• Companies with high-performing IT organizations are twice as likely to exceed their profitability, market share and productivity goals.

• Culture matters. The cultural practices of DevOps are predictive of organizational performance.

• Job satisfaction is the No. 1 predictor of performance against organizational goals.

Continuum of Safety Cultures

by Ron Westrum - sociologist

Portfolio Management

Lifecycle of Innovation

Technology Adoption Lifecycle

Product Category Lifecycle

INNOVATION PORTFOLIO

INNOVATION PORTFOLIO

INNOVATION PORTFOLIO

INNOVATION PORTFOLIO

INNOVATION PORTFOLIO

INNOVATION PORTFOLIO

INNOVATION PORTFOLIO

INNOVATION PORTFOLIO

DISRUPT!!!

Explore• Cross-functional multi-disciplined teams

• Lots of small bets• Safe to fail experiments - only failure, is failure

to learn• Enough funding to do something, but no so

much as to do nothing• Create a sense of urgency

• Demonstrable evidence of value to proceed

Exploit• Create end to end value stream customer facing teams

• Continuous evaluation for funding model

• Achieving break even point

• Data-driven fact based decisions

• Maintain a sense of urgency

• Set a vision, trust the team to get there, clear blockers and support as they proceed

• Make sharing and organisational learning easy

Sustain• Beware of feature factory fallacy • Keep laser focus on what is valuable - where we

can win • Do no get lazy, success hides sub-optimal

issues• Keep discipline with fact based decisions

• What is being used, improved or removed? • How could we disrupt or get disrupted - do we

care?

Retire• Has it serviced its purpose? Sunset

• It is providing value? Kill it?

• Are there better opportunities to invest in?

• Remove product and system complexity

• Simplify to support further innovation

• Free up funds and capability

Lean Transformation

https://www.youtube.com/watch?v=oeRXOT8lv0g

Lean Transformation Model by John Shook

Thanks

what an organisation aspires to become.

vision is…

the business the organisation is in.

mission is…

Purpose?

- Graham Kenny, MD of Strategic Factors

“putting managers and employees in

customers’ shoes”

strategy achievepurpose

necessaryculture

for strategy= +