Lean Enterprise Transformation: The Journey Inside Large Organizations, Sonja Kresojevic, Partner, Spinnaker

LEAN ENTERPRISE
TRANSFORMATION
SPINNAKER
SONJA KRESOJEVIC
@SONJAK18
@MYSPINNAKERCO

Spinnaker - Lean Enterprise Transformation 2
@SONJAK18
@MYSPINNAKERCO
Co-founder of Spinnaker, NY based consultancy focused on
enterprise transformation.
Senior executive with 20 years of global experience building
products and driving agile and lean transformation inside
large enterprises including BBC, Channel 5, News Corp and
Unboxed Consulting.
Most recently SVP in the Chief Product Office at Pearson,
leading the implementation of the award winning Lean
Enterprise Transformation program.
SONJA KRESOJEVIC

3
EXTERNAL UNCERTAINTY
SPEED
EXPECTATIONS
DISRUPTION
INSTABILITY

INTERNAL FRICTION
NO DISCIPLINE
SLOW TO MARKET
SKILLS & DATA GAP
RISK AVERSION
BIG BETS

6
operate their core businesses at scale
while simultaneously adapting to change
through continuous learning,
by self disrupting,
focusing on customers,
and innovating to drive long term growth.
Lean Enterprises:

MECHANICS
MINDSET
BUSINESS RESULTS

mindset
mechanics
goals
LEAN ENTERPRISE TRANSFORMATION JOURNEY
©SPINNAKERWWW.MYSPINNAKER.CO

CULTURE
LIFECYCLEPORTFOLIO GOVERNANCE
PEOPLE
BEST PRACTICE

11
COMPONENTS OF A LEAN ENTERPRISE
MECHANICS
➤Cross-functional Product teams operating using best practice
➤Disciplined adaptive portfolio approach to deliver on strategy and
react to change
➤Lifecycle framework supported by incremental funding
➤Decentralized decision making
➤Adaptive allocation of capital based on evidence rather than
commitment to plan

Spinnaker - Lean Enterprise Transformation
BEST PRACTICE
12
WHAT IS THE
PROBLEM?
SHOULD WE
SOLVE IT?
HOW DO WE DELIVER A
QUALITY SOLUTION?
DESIGN
THINKING
LEAN
STARTUP
AGILE
DEV

Finance HR Legal Product Development Marketing Sales
CROSS-FUNCTIONAL TEAMS

STRONG GLOBAL COMMUNITY

ADAPTIVE PORTFOLIO MANAGEMENT
STRATEGY ?
PORTFOLIO
ALLOCATION
PORTFOLIO RE-
ALLOCATION
DATA

INNOVATION PORTFOLIO
https://hbr.org/2012/05/managing-your-
innovation-portfolio

https://hbr.org/2012/05/managing-your-innovation-portfolio
CURRENT INVESTMENT
FUTURE REVENUES

SEARCHING EXECUTING

AMAZON GO
TWITCH PRIME
AWS
AMAZON STUDIOSALEXA VOICE SERVICE
PRIME CHINA
PRIME AIR DRONE
DELIVERY
AMAZON E-COMMERCE
PRIMEFULFILLMENT BY
AMAZON

AMAZON GO
TWITCH PRIME
AWS
AMAZON
STUDIOSALEXA VOICE
SERVICE
PRIME CHINA
PRIME AIR DRONE
DELIVERY
AMAZON E-
COMMERCE
Idea Explore Validate Grow Sustain Retire
PRIME
FULFILLMENT
BY AMAZON

THE LEAN PRODUCT LIFECYCLE
22
Can you
identify a
core user
problem  
in a target
market?
Are there real
customers who
get value from
your concept?
Is there a viable
business model
for this product?
Can you
demonstrate
Product/ 
Market Fit  
or validated
business
model?
How fast are you
growing the
business at scale?
Are you continuing
to deliver outcomes
to a broader  
user set?
Are you delivering
revenue and outcomes
while reducing costs?
What residual
value can be
gleaned from the
business?

Practice
Jobs to Be Done
Business Model Design
Customer Development
Minimum Viable Products
Growth Engines
Sales Forces
Optimizations
Feature Building
Focus Early Adopters, Early Majority Late Majority, Laggards
Duration Days Weeks Months Years
Metrics Lean Analytics, Pirate Metrics Revenues, Profit-Margins, ROI, IRR, NPV
THE LEAN PRODUCT LIFECYCLE

£0
<£50k
<£250k
P&L
✓
✗✗ ✓ ✓ ✓
✓
✓
✓
✗
✗
✓ ✓
✓
✓ ✓✓
✗✗
✗
MONEYBALL FOR INNOVATION
Idea
Explore
Validate
Grow
Sustain

GOVERNANCE STRUCTURE
Product teams + Tech
Build Products
Executive
Strategy
Portfolio
Govern portfolio of products
Investment Boards
Govern products
DataKPIs

26
MINDSET
➤Strong focus on listening to customers
➤High tolerance for absorbing and learning from failed
initiatives
➤Continuous learning across the organization
➤Think big but start small
➤“Command & Control” top down direction replaced with
Mission control responsiveness
COMPONENTS OF A LEAN ENTERPRISE

“
We realized that this was not just about introducing new tools  
in the company; it was about cultural change. Behavioral change.
Accepting that we’re going to work in a diﬀerent way. It’s about
abandoning some of our sacred cows and some of our historical
ways of working. In other words, rewiring the DNA of the
company
-Janice Semper,
GE Culture Leader 
Excerpt From: Eric Ries “The Leader's Guide”
27

CONTINUOUS LEARNING
Lean Startup™ Eric Reis

CHANGE STARTS WITH LEADERSHIP
29

“
The role of leaders has changed profoundly… We
used to ask what is your answer and what is your
analysis. Now we ask what is the fastest way to
get an experiment to test that idea.
-Scott Cook,
Founder Intuit
30

Ad hoc
Scattered. Inconsistent.
Hero efforts. Small groups
of enthusiasts at varied
maturity levels
Thinking
Pilots w. Early Adopters to
validate Problem & Solution.
Building knowledge through
communities.
Doing
Scaling and Optimizing.
Culture changing. Incentives
shifting
Being
Business Impact is clear.
Values embraced at all
levels. Transition to BAU
while continuing to learn

CULTURE
PEOPLE
BEST PRACTICE
Coaching
Small
team of
heroes
Agile
community
Agile
delivery
framework
Product
Council
Thresholds
& approval
limits
Agile
training
Customer
co-design Agile
portfolio
wall
Weekly
portfolio
sessions
Pilots in
3months,
Invest in
talent
Get a
sponsor
who gets it
Show by
doing
Get
external
experts
involved
Create
excitement
Kill
initiatives
Have clear
priorities
Share
learnings
Stakeholder
training
ad hoc
Iterate and
adapt
Dev Ops

CULTURE
PEOPLE
BEST PRACTICE
Training
Embrace
fail-fast
Don't
underestimate
change
management
Learn and
adapt
Develop a
community
of change
agents
Test
operating
model
Partners
in key
functions
Build a
strong
community
Map the
portfolio
Test
incremental
funding
Early Pilots
Iterations
of PLC Pilots with
BUs
Test new
governance
approach
Find true
early
adopters
Understand
the
enterprise
challenge
Communicate,
Communicate,
Communicate
Power of
external
validation
Use brown
paper a lot! Don't go to
scale too
soon!
Test
portfolio
concepts in
one BU
Share
learnings
internally and
externally
thinking
Keep log of
ODQs
Taxonomy
Leadership
development
Work with Exec
to agree
transformation
goals and KPIs
Hire people
different
than you

CULTURE
PEOPLE
BEST PRACTICE
Training at
scale
Create a
movement
Be aware
of change
fatigue
Continue
to learn
and adapt
Stay
agile
Build capacity
through
coaching
network
Scale the
operating
model
Partners
in key
functions
Partner with HR
- goals, career
progression,
incentives
Continue to
grow
community
KPIs
business
impact
Replace
business
case
PLC
ecosystem
Systems/
tools
Scale PCs
Don’t go
too fast!
You need a
mandate!
Recruit
leaders in
each BU!
Don't go to
scale too
soon!
Share
learnings
internally and
externally
Continue to
evolve all
artifacts
Governance
training
Doing
Annual
planning

CULTURE
PEOPLE
BEST PRACTICE
Evidence of
clear
business
impact
Governance at
scale,
supported by
mature lifecycle
Product
Academy
being
Adaptive
portfolio
management
Lean/Agile
teams
Incentives
and
rewards
Continuous
learning across
the
organization

EXERCISE 1
38

WHERE ARE YOU?
1. Working in pairs, discuss and capture your organizations:
➤transformation boosters (enhancers, stimuli, catalysts)
or
➤transformation blockers (inhibitors, barriers, friction)
2. One booster or blocker per post it
3. Add each post it to the B&B sheet

WORKSHOP OUTPUTS - BLOCKERS
40
Internal Politics
Mindset- Fear of change - change lethargy
Unclear goals
Traditional bonus schemes
Silos and Matrix
Year to Year budgeting
Lack of experience
Existing systems and tools
Long product cycles
Volume of BAU
“We know what we are doing”
Organizational structure
Projects not products
Comfort zone
Too much compromise
Company fragmentation
Lack of purpose
Distributed teams
Part time volunteers - not dedicated time
Micro management
Top-down hierarchy
Protecting my own position
No clear product ownership
Middle management
Funding model and KPIs
Leadership buy-in for transformation

WORKSHOP OUTPUTS - BOOSTERS
41
Clear strategy and vision
Evangelists and senior champions
Better tech/tools
Leadership support and buy-in
Subject matter experts
Early success
Team empowerment
Valuable customers
Community
Seed funding
Public innovation space
Permission to fail
Culture of change
Stories, examples
Market forces
Celebrating small wins publicly
External support - coaching and training
Being valued - self worth
Shared pain points
Agile culture
Visionary leadership/people
Capabilities
New opportunities
Internal coaches
New incentives
Product thinking

EXERCISE 2
42

WHAT’S NEXT?
1. Capture 3-5 actions you can take that are
relevant to the transformation stage your
organization is at.
2. One action per post-it
3. Add each post-it to the relevant canvas (Ad-hoc,
Think or Doing/Being)
43

WORKSHOP OUTPUT - JOURNEY MAP
44

DOWNLOAD JOURNEY MAP AT MYSPINNAKER.CO
45

THANK YOU
46
sonja@myspinnaker.co
@sonjak18
@myspinnakerco
leanproductlifecycle.com

Lean Enterprise Transformation: The Journey Inside Large Organizations, Sonja Kresojevic, Partner, Spinnaker

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Lean Enterprise Transformation: The Journey Inside Large Organizations, Sonja Kresojevic, Partner, Spinnaker