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Innovation agile-on-the-beach

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Most organisations optimise for cost control over value creation but in our connected world we are only ever one smart competitor away from trouble. Can you optimise your IT organisation and business ...

Most organisations optimise for cost control over value creation but in our connected world we are only ever one smart competitor away from trouble. Can you optimise your IT organisation and business around innovation and still keep costs down? In this talk we will explore some of the forces that act on business to stifle innovation and explore some ways that teams, IT divisions and businesses can organise to take advantage of the new opportunities our online world offers.

This is a talk about Lean, Organisational Design and the perils of matrix management (its 45 minutes of free consultancy, don't tell everyone or they'll all want to come...)

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  • Innovation accounting: NOT VANITY Metrics\n\nExample: not # of hits, but click throughs (10,000 to 2)\n\n
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  • Discovery: patents, R&D programs, innovations\nOrganization: brands, technology\nHuman resource: training, culture, leadership\n\n
  • Discovery: patents, R&D programs, innovations\nOrganization: brands, technology\nHuman resource: training, culture, leadership\n
  • Discovery: patents, R&D programs, innovations\nOrganization: brands, technology\nHuman resource: training, culture, leadership\n
  • Discovery: patents, R&D programs, innovations\nOrganization: brands, technology\nHuman resource: training, culture, leadership\n\n
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  • you get what you measure...\n
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Innovation agile-on-the-beach Innovation agile-on-the-beach Presentation Transcript

  • Growing a culture of innovation James Lewis
  • Introduction
  • Who am I? James Lewis Engineer, TAB
  • TAB TechnologyAdvisory Board
  • TAB TechnologyAdvisory Board
  • virtual body TAB Technology Advisory Board
  • virtual bodyface to face twice a year TAB Technology Advisory Board
  • virtual bodyface to face twice a year TAB all things technical at ThoughtWorks Technology Advisory Board
  • virtual bodyface to face twice a year TAB all things technical at ThoughtWorks Technology advisors to the CTO Advisory Board
  • radar
  • next edition ~ 6 weeks
  • a talk in three acts...
  • a talk in three acts...Act I whats all the fussabout?
  • a talk in three acts...Act I whats all the fussabout?Act II traditional methods
  • a talk in three acts...Act I whats all the fussabout?Act II traditional methodsAct III innovation done right
  • Act IWhat’s all the fuss about?
  • new competitors, global markets
  • lean startup
  • Lean Start Up Principles! Entrepreneurs are ! everywhere" Entrepreneurship is management" Validated Learning" Build – Measure - Learn" Innovation Accounting" "
  • So far, so hipster
  • it turns out thatorganisational health is a competitive advantage
  • • “Organizations that focused on performance AND health simultaneously• were nearly twice as successful as those that focused on health alone,• and nearly three times as successful as those that focused on performance alone.” Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage, Scott Keller & Colin Price (McKinsey & Co.)
  • Surveys: 600,000 respondents, 500 companies6,800 CEO’s & senior executivesReviews: 900 books & academic journalsPersonal interviews: 30 CEO’sData from: >100 McKinsey clients Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage, Scott Keller & Colin Price (McKinsey & Co.)
  • intangible assetsare becoming much more valuable
  • this is recognised on your balance sheet
  • these are recognised in market capitalisationphoto of intangible asset - people or something
  • Impact of Intangibles on Market Value Year Intangible % Tangible % 1982 38 62 1992 62 38 2000 85 15How Leaders BuildValue,Ulrich & Smallwood
  • what sort oforganisation are you?
  • Act II the usual approach
  • explore vs exploit
  • we often start value driven and become cost driven
  • we often start value driven and become cost driven
  • we often start value driven and become cost drivenexploring exploiting
  • established corp, founded 1955
  • established corp, founded 1955Uses punch cards and tapesFirst in the industry to …Rapidly gaining market share X
  • established corp, founded 1955 X
  • established corp, founded 195550 years on... X
  • established corp, founded 1955 IT is a cost centre One developer is much the same as another and one language is much the50 years on... same as another Standardisation and cost-control are key factors X
  • newandcool.com, founded 2012
  • newandcool.com, founded 2012-Operating procedures adapt to suitdemand-Finding and keeping the best developersoffers a competitive advantage-Anything that gives faster time tomarket at high quality is worth doing-Innovation and value-delivery are thekey factors X
  • newandcool.com, founded 2012 X
  • newandcool.com, founded 2012now what? X
  • do you allowyour people to innovate?
  • do you allowyour people to innovate?how do you measure them?
  • its relativelyeasy to measure “performance” money saved utilisation story points delivered
  • and therefore usual to incentivise based on this money saved utilisation story points delivered
  • but innovationis difficult to measureso incentivising for this is really, really hard
  • agent theory
  • Agent theory agent theoryyou perform an activity; I pay you
  • but what if iwant you to dotwo things..?
  • performance innovation
  • performance innovation strong measuresstrong incentives weak measures weak incentives
  • so which activity are you going to perform?
  • so, we are<beep> then?
  • Act III innovationdone right?
  • Daniel Pink, Drive: The Surprising Truth about What Motivates Us
  • high commitmenthuman resources
  • The Modern Firm, John Roberts, 2004
  • The Modern Firm, John Roberts, 2004
  • The Modern Firm, John Roberts, 2004
  • The Modern Firm, John Roberts, 2004
  • The Modern Firm, John Roberts, 2004
  • The Modern Firm, John Roberts, 2004
  • The Modern Firm, John Roberts, 2004
  • The Modern Firm, John Roberts, 2004
  • “egalitarian values and norms”
  • run asustainable business
  • run a revolutionisesustainable IT and business champion software excellence
  • run a revolutionise advocatesustainable IT and passionately business champion for social software and excellence economic justice
  • “rigorous pre- employment screening”
  • Valvecertainlybelieve inthis
  • “self-managing teams”
  • the role oforganisational design
  • nokia
  • 1992 2000
  • failing logistics EU’s highest rubber failure led to market boots stock price capitalisationmanufacture cut in half1992 2000
  • failing logistics EU’s highest rubber failure led to market boots stock price capitalisationmanufacture cut in half
  • failing logistics EU’s highest rubber failure led to market boots stock price capitalisationmanufacture cut in half
  • failing logistics EU’s highest rubber failure led to market boots stock price capitalisationmanufacture cut in half
  • failing logistics EU’s highest rubber failure led to market boots stock price capitalisationmanufacture cut in half
  • failing logistics EU’s highest rubber failure led to market boots stock price capitalisationmanufacture cut in half
  • “Why have we been a successful company?If you want avery simple answer, it is getting the balance right between innovation and execution” Jorma Ollila, Nokia CEO failing logistics EU’s highest rubber failure led to market boots stock price capitalisation manufacture cut in half
  • “a strong culture focussed on anoverarching goal”
  • mission drivenorganisations
  • Summary
  • “Those are the only two choices. Win by being moreordinary, more standard, and cheaper. Or win bybeing faster, more remarkable, and more human.”--Godin, Seth. (2010). Linchpin: Are You Indispensable?
  • peoplearchitecture routinesculture
  • • What type of organisation are you? • exploring? • exploiting?
  • • What type of organisation are you? • exploring? • exploiting?• Focussing on health as well as performance is crucial in our global marketplace
  • • What type of organisation are you? • exploring? • exploiting?• Focussing on health as well as performance is crucial in our global marketplace• Be careful what you measure, because that is what you will get
  • • What type of organisation are you? • exploring? • exploiting?• Focussing on health as well as performance is crucial in our global marketplace• Be careful what you measure, because that is what you will get• for knowledge work, maybe high commitment HR can help
  • you can’t build a culture of innovation
  • you can’t build a culture of innovationbut with purpose and leadership you can put the routines and architecture in place for it to flourish
  • Thank you! @boicy http://bovon.org jalewis@thoughtworks.com
  • is hiring @boicy http://bovon.org jalewis@thoughtworks.com