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    ...
virtual bodyface to face twice a year                                      TAB all things technical at     ThoughtWorks   ...
virtual bodyface to face twice a year                                      TAB all things technical at     ThoughtWorks   ...
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"     ...
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 th...
Surveys: 600,000 respondents, 500 companies6,800 CEO’s & senior executivesReviews: 900 books & academic journalsPersonal i...
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 %              ...
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  ...
newandcool.com, founded 2012
newandcool.com, founded 2012-Operating procedures adapt to suitdemand-Finding and keeping the best developersoffers a comp...
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 deli...
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 inc...
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  ...
“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                            ...
failing       logistics                               EU’s highest  rubber      failure led to                            ...
failing       logistics                               EU’s highest  rubber      failure led to                            ...
failing       logistics                               EU’s highest  rubber      failure led to                            ...
failing       logistics                               EU’s highest  rubber      failure led to                            ...
failing       logistics                               EU’s highest  rubber      failure led to                            ...
“Why have we been a successful company?If you want avery simple answer, it is getting the balance right between  innovatio...
“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 remark...
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 ...
•   What type of organisation are you?    •   exploring?    •   exploiting?•   Focussing on health as well as performance ...
•   What type of organisation are you?    •   exploring?    •   exploiting?•   Focussing on health as well as performance ...
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 arch...
Thank you!                        @boicy               http://bovon.org     jalewis@thoughtworks.com
is hiring                        @boicy               http://bovon.org     jalewis@thoughtworks.com
Innovation agile-on-the-beach
Innovation agile-on-the-beach
Innovation agile-on-the-beach
Innovation agile-on-the-beach
Innovation agile-on-the-beach
Innovation agile-on-the-beach
Innovation agile-on-the-beach
Innovation agile-on-the-beach
Innovation agile-on-the-beach
Innovation agile-on-the-beach
Innovation agile-on-the-beach
Innovation agile-on-the-beach
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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 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&amp;D programs, innovations\nOrganization: brands, technology\nHuman resource: training, culture, leadership\n\n
  • Discovery: patents, R&amp;D programs, innovations\nOrganization: brands, technology\nHuman resource: training, culture, leadership\n
  • Discovery: patents, R&amp;D programs, innovations\nOrganization: brands, technology\nHuman resource: training, culture, leadership\n
  • Discovery: patents, R&amp;D programs, innovations\nOrganization: brands, technology\nHuman resource: training, culture, leadership\n\n
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  • Innovation agile-on-the-beach

    1. 1. Growing a culture of innovation James Lewis
    2. 2. Introduction
    3. 3. Who am I? James Lewis Engineer, TAB
    4. 4. TAB TechnologyAdvisory Board
    5. 5. TAB TechnologyAdvisory Board
    6. 6. virtual body TAB Technology Advisory Board
    7. 7. virtual bodyface to face twice a year TAB Technology Advisory Board
    8. 8. virtual bodyface to face twice a year TAB all things technical at ThoughtWorks Technology Advisory Board
    9. 9. virtual bodyface to face twice a year TAB all things technical at ThoughtWorks Technology advisors to the CTO Advisory Board
    10. 10. radar
    11. 11. next edition ~ 6 weeks
    12. 12. a talk in three acts...
    13. 13. a talk in three acts...Act I whats all the fussabout?
    14. 14. a talk in three acts...Act I whats all the fussabout?Act II traditional methods
    15. 15. a talk in three acts...Act I whats all the fussabout?Act II traditional methodsAct III innovation done right
    16. 16. Act IWhat’s all the fuss about?
    17. 17. new competitors, global markets
    18. 18. lean startup
    19. 19. Lean Start Up Principles! Entrepreneurs are ! everywhere" Entrepreneurship is management" Validated Learning" Build – Measure - Learn" Innovation Accounting" "
    20. 20. So far, so hipster
    21. 21. it turns out thatorganisational health is a competitive advantage
    22. 22. • “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.)
    23. 23. 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.)
    24. 24. intangible assetsare becoming much more valuable
    25. 25. this is recognised on your balance sheet
    26. 26. these are recognised in market capitalisationphoto of intangible asset - people or something
    27. 27. Impact of Intangibles on Market Value Year Intangible % Tangible % 1982 38 62 1992 62 38 2000 85 15How Leaders BuildValue,Ulrich & Smallwood
    28. 28. what sort oforganisation are you?
    29. 29. Act II the usual approach
    30. 30. explore vs exploit
    31. 31. we often start value driven and become cost driven
    32. 32. we often start value driven and become cost driven
    33. 33. we often start value driven and become cost drivenexploring exploiting
    34. 34. established corp, founded 1955
    35. 35. established corp, founded 1955Uses punch cards and tapesFirst in the industry to …Rapidly gaining market share X
    36. 36. established corp, founded 1955 X
    37. 37. established corp, founded 195550 years on... X
    38. 38. 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
    39. 39. newandcool.com, founded 2012
    40. 40. 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
    41. 41. newandcool.com, founded 2012 X
    42. 42. newandcool.com, founded 2012now what? X
    43. 43. do you allowyour people to innovate?
    44. 44. do you allowyour people to innovate?how do you measure them?
    45. 45. its relativelyeasy to measure “performance” money saved utilisation story points delivered
    46. 46. and therefore usual to incentivise based on this money saved utilisation story points delivered
    47. 47. but innovationis difficult to measureso incentivising for this is really, really hard
    48. 48. agent theory
    49. 49. Agent theory agent theoryyou perform an activity; I pay you
    50. 50. but what if iwant you to dotwo things..?
    51. 51. performance innovation
    52. 52. performance innovation strong measuresstrong incentives weak measures weak incentives
    53. 53. so which activity are you going to perform?
    54. 54. so, we are<beep> then?
    55. 55. Act III innovationdone right?
    56. 56. Daniel Pink, Drive: The Surprising Truth about What Motivates Us
    57. 57. high commitmenthuman resources
    58. 58. The Modern Firm, John Roberts, 2004
    59. 59. The Modern Firm, John Roberts, 2004
    60. 60. The Modern Firm, John Roberts, 2004
    61. 61. The Modern Firm, John Roberts, 2004
    62. 62. The Modern Firm, John Roberts, 2004
    63. 63. The Modern Firm, John Roberts, 2004
    64. 64. The Modern Firm, John Roberts, 2004
    65. 65. The Modern Firm, John Roberts, 2004
    66. 66. “egalitarian values and norms”
    67. 67. run asustainable business
    68. 68. run a revolutionisesustainable IT and business champion software excellence
    69. 69. run a revolutionise advocatesustainable IT and passionately business champion for social software and excellence economic justice
    70. 70. “rigorous pre- employment screening”
    71. 71. Valvecertainlybelieve inthis
    72. 72. “self-managing teams”
    73. 73. the role oforganisational design
    74. 74. nokia
    75. 75. 1992 2000
    76. 76. failing logistics EU’s highest rubber failure led to market boots stock price capitalisationmanufacture cut in half1992 2000
    77. 77. failing logistics EU’s highest rubber failure led to market boots stock price capitalisationmanufacture cut in half
    78. 78. failing logistics EU’s highest rubber failure led to market boots stock price capitalisationmanufacture cut in half
    79. 79. failing logistics EU’s highest rubber failure led to market boots stock price capitalisationmanufacture cut in half
    80. 80. failing logistics EU’s highest rubber failure led to market boots stock price capitalisationmanufacture cut in half
    81. 81. failing logistics EU’s highest rubber failure led to market boots stock price capitalisationmanufacture cut in half
    82. 82. “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
    83. 83. “a strong culture focussed on anoverarching goal”
    84. 84. mission drivenorganisations
    85. 85. Summary
    86. 86. “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?
    87. 87. peoplearchitecture routinesculture
    88. 88. • What type of organisation are you? • exploring? • exploiting?
    89. 89. • What type of organisation are you? • exploring? • exploiting?• Focussing on health as well as performance is crucial in our global marketplace
    90. 90. • 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
    91. 91. • 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
    92. 92. you can’t build a culture of innovation
    93. 93. 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
    94. 94. Thank you! @boicy http://bovon.org jalewis@thoughtworks.com
    95. 95. is hiring @boicy http://bovon.org jalewis@thoughtworks.com

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