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

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Large enterprises facing disruption struggle to transform quickly enough—from becoming more innovative to improving processes, culture, and ways of working. Transformation programs are often linear, multi-year engagements not focused on continuous learning and improvement. In this workshop, Sonja Kresojevic will share lessons learned from an award-winning Lean Enterprise transformation program at Pearson that will enable you to kick off and significantly accelerate your own organization's Lean Enterprise journey. She will uncover how proven approaches embodied in Lean Startup, Agile, and Adaptive Portfolio Management can be combined into a single cohesive framework that can serve as catalyst for powerful shifts in your organization.You will leave the workshop with an example of transformation roadmap ready to stimulate wide-ranging conversations and drive focused action, as soon as you return to your office.

Published in: Business

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

  1. 1. LEAN ENTERPRISE TRANSFORMATION SPINNAKER SONJA KRESOJEVIC @SONJAK18 @MYSPINNAKERCO
  2. 2. 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. 3. 3 EXTERNAL UNCERTAINTY SPEED EXPECTATIONS DISRUPTION INSTABILITY
  4. 4. INTERNAL FRICTION NO DISCIPLINE SLOW TO MARKET SKILLS & DATA GAP RISK AVERSION BIG BETS
  5. 5. 5
  6. 6. 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:
  7. 7. TRANSFORMATION FRAMEWORK 7
  8. 8. Spinnaker - Lean Enterprise Transformation 8 MECHANICS MINDSET BUSINESS RESULTS
  9. 9. Spinnaker - Lean Enterprise Transformation 9 mindset mechanics goals LEAN ENTERPRISE TRANSFORMATION JOURNEY ©SPINNAKERWWW.MYSPINNAKER.CO
  10. 10. Spinnaker - Lean Enterprise Transformation 10 CULTURE LIFECYCLEPORTFOLIO GOVERNANCE PEOPLE BEST PRACTICE LEAN ENTERPRISE TRANSFORMATION JOURNEY ©SPINNAKERWWW.MYSPINNAKER.CO
  11. 11. 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
  12. 12. 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
  13. 13. Spinnaker - Lean Enterprise Transformation 13 Finance HR Legal Product Development Marketing Sales CROSS-FUNCTIONAL TEAMS
  14. 14. Spinnaker - Lean Enterprise Transformation 14 STRONG GLOBAL COMMUNITY
  15. 15. Spinnaker - Lean Enterprise Transformation 15
  16. 16. Spinnaker - Lean Enterprise Transformation 16 ADAPTIVE PORTFOLIO MANAGEMENT STRATEGY ? PORTFOLIO ALLOCATION PORTFOLIO RE- ALLOCATION DATA
  17. 17. Spinnaker - Lean Enterprise Transformation 17 INNOVATION PORTFOLIO https://hbr.org/2012/05/managing-your- innovation-portfolio
  18. 18. Spinnaker - Lean Enterprise Transformation 18 https://hbr.org/2012/05/managing-your-innovation-portfolio CURRENT INVESTMENT FUTURE REVENUES
  19. 19. Spinnaker - Lean Enterprise Transformation 19 SEARCHING EXECUTING
  20. 20. Spinnaker - Lean Enterprise Transformation 20 AMAZON GO TWITCH PRIME AWS AMAZON STUDIOSALEXA VOICE SERVICE PRIME CHINA PRIME AIR DRONE DELIVERY AMAZON E-COMMERCE PRIMEFULFILLMENT BY AMAZON
  21. 21. Spinnaker - Lean Enterprise Transformation 21 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
  22. 22. Spinnaker - Lean Enterprise Transformation 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? Idea Explore Validate Grow Sustain Retire
  23. 23. Spinnaker - Lean Enterprise Transformation 23 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 Idea Explore Validate Grow Sustain Retire THE LEAN PRODUCT LIFECYCLE
  24. 24. Spinnaker - Lean Enterprise Transformation 24 £0 <£50k <£250k P&L ✓ ✗✗ ✓ ✓ ✓ ✓ ✓ ✓ ✗ ✗ ✓ ✓ ✓ ✓ ✓✓ ✗✗ ✗ MONEYBALL FOR INNOVATION Idea Explore Validate Grow Sustain
  25. 25. Spinnaker - Lean Enterprise Transformation 25 GOVERNANCE STRUCTURE Product teams + Tech Build Products Executive Strategy Portfolio Govern portfolio of products Investment Boards Govern products DataKPIs
  26. 26. 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
  27. 27. “ Spinnaker - Lean Enterprise Transformation 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
  28. 28. Spinnaker - Lean Enterprise Transformation 28 CONTINUOUS LEARNING Lean Startup™ Eric Reis
  29. 29. Spinnaker - Lean Enterprise Transformation CHANGE STARTS WITH LEADERSHIP 29
  30. 30. “ Spinnaker - Lean Enterprise Transformation 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
  31. 31. TRANSFORMATION JOURNEY 31
  32. 32. Spinnaker - Lean Enterprise Transformation 32
  33. 33. Spinnaker - Lean Enterprise Transformation LEAN ENTERPRISE TRANSFORMATION JOURNEY 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 ©SPINNAKERWWW.MYSPINNAKER.CO
  34. 34. Spinnaker - Lean Enterprise Transformation 34 CULTURE LIFECYCLEPORTFOLIO GOVERNANCE 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 ©SPINNAKERWWW.MYSPINNAKER.CO
  35. 35. Spinnaker - Lean Enterprise Transformation 35 CULTURE LIFECYCLEPORTFOLIO GOVERNANCE 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 ©SPINNAKERWWW.MYSPINNAKER.CO
  36. 36. Spinnaker - Lean Enterprise Transformation 36 CULTURE LIFECYCLEPORTFOLIO GOVERNANCE 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 ©SPINNAKERWWW.MYSPINNAKER.CO
  37. 37. Spinnaker - Lean Enterprise Transformation 37 CULTURE LIFECYCLEPORTFOLIO GOVERNANCE 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 ©SPINNAKERWWW.MYSPINNAKER.CO
  38. 38. Spinnaker - Lean Enterprise Transformation EXERCISE 1 38
  39. 39. Spinnaker - Lean Enterprise Transformation 39 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
  40. 40. Spinnaker - Lean Enterprise Transformation 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
  41. 41. Spinnaker - Lean Enterprise 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
  42. 42. Spinnaker - Lean Enterprise Transformation EXERCISE 2 42
  43. 43. Spinnaker - Lean Enterprise Transformation 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
  44. 44. Spinnaker - Lean Enterprise Transformation WORKSHOP OUTPUT - JOURNEY MAP 44
  45. 45. Spinnaker - Lean Enterprise Transformation DOWNLOAD JOURNEY MAP AT MYSPINNAKER.CO 45
  46. 46. Spinnaker - Lean Enterprise Transformation THANK YOU 46 sonja@myspinnaker.co @sonjak18 @myspinnakerco leanproductlifecycle.com

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