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Strategy in a Lean Enterprise

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As markets become increasingly competitive, and open to disruption, it's more important than ever to be able to respond to market changes quickly.

In this talk I speak about how you can clearly define and communicate your organisations strategy in order to align everyone to a common purpose, and increase your responsiveness.

If you want to know more about how we think about strategy at ThoughtWorks, I'd love to hear from you.

Published in: Business

Strategy in a Lean Enterprise

  1. 1. STRATEGY IN A LEAN ENTERPRISE @OlipherSG A g i l e M a n c h e s t e r
  2. 2. 75Years 1937
  3. 3. 12Years 2012
  4. 4. TECHNOLOGY
  5. 5. GORDON MOORE Law Maker
  6. 6. TECHNOLOGY
  7. 7. Competitors
  8. 8. WHAT DO WE DO ABOUT IT?
  9. 9. Ollie C. Stevenson Business Designer
  10. 10. MORE RESPONSIVE
  11. 11. Market Change Change Perception Decision Deliver Value WE NEED TO REDUCE TIME IT TAKES TO RESPOND TO MARKET CHANGES
  12. 12. HOW CAN WE ALIGN OUR ORGANISATION TO A COMMON PURPOSE?
  13. 13. STRATEGY
  14. 14. “A plan of action … intended to accomplish a specific goal”
  15. 15. “[Strategy is] a pattern in a stream of decisions” HENRY MINTZBERG Professor of Management, Author
  16. 16. WHAT’S GETTING IN OUR WAY?
  17. 17. CONFIDENTIAL
  18. 18. CULTURE
  19. 19. COMMAND CONTROL and
  20. 20. OASIS OF AGILITY ANNUAL STRATEGY HEAVY ANALYTICAL BUDGETING STAGE GATES COMPLIANCE TO PLAN MEASURES JUST ONE MORE STAGE GATE STOP STOP Design Develop Design Research Loop Agile Development Loop Design/Delivery Loop Users & Product Time Cost Scope IRON TRIANGLE STOP
  21. 21. WHAT DO WE CHANGE?
  22. 22. CLEARLY DEFINE YOUR STRATEGY
  23. 23. COMMUNICATE STRATEGY
  24. 24. LEAN VALUE TREE
  25. 25. AMBITIOUS MISSION STRATEGIC GOAL STRATEGIC BET STRATEGIC BET PROMISE OF VALUE PROMISE OF VALUE PROMISE OF VALUE POD What is our destination as an organisation? What does the organisation need to achieve to get there? What strategies are we betting on to achieve the goal? What value are we offering to customers to help us to help us do that? How much are we investing? PROMISE OF VALUE STRATEGIC GOAL STRATEGIC GOAL PROMISE OF VALUE
  26. 26. BE THE HIGHEST VALUE EDUCATIONAL INVESTMENT FOR PEOPLE WORKING IN A RAPIDLY CHANGING ENVIRONMENT EDU ANY TIME MAKE EVERY CLASS EXCELLENT MAKE OUR EDUCATION AVAILABLE IN EVERY LIFE SITUATION BE THE QUICKEST AT RESPONDING TO NEW EDUCATIONAL NEEDS BREAKING THE CONVENTION OF FIXED SCHEDULE EDUCATION As a working parent you will be able to schedule tutoring any time you’re free As a group of co- workers you will be able to request a class at an unconventional time LEVERAGING SMART CAR TECHNOLOGY
  27. 27. AMBITIOUS MISSION
  28. 28. Who we are as an organisation Executive Ownership Specific enough to inform decisions Implicitly says who we’re not Long term, stable AMBITIOUS MISSION BE THE HIGHEST VALUE EDUCATIONAL INVESTMENT FOR PEOPLE WORKING IN A RAPIDLY CHANGING ENVIRONMENT EDU ANY TIME MAKE OUR EDUCATION AVAILABLE IN EVERY LIFE SITUATION BREAKING THE CONVENTION OF FIXED SCHEDULE EDUCATION As a working parent you will be able to schedule tutoring any time you’re free
  29. 29. STRATEGIC GOAL
  30. 30. Outcome focused, avoids suggesting a solution Guides for executive investment Long term, stable Can have focuses on different horizons STRATEGIC GOAL Should have a measure for success CHANGING ENVIRONMENT EDU ANY TIME MAKE OUR EDUCATION AVAILABLE IN EVERY LIFE SITUATION BREAKING THE CONVENTION OF FIXED SCHEDULE EDUCATION As a working parent you will be able to schedule tutoring any time you’re free
  31. 31. STRATEGIC BET
  32. 32. Primary driver is to satisfy the Strategic Goal Has it’s own measure of success Just one way to satisfy the strategic goal Bridge between Execs and Architects Medium Term STRATEGIC BET EDU ANY TIME BREAKING THE CONVENTION OF FIXED SCHEDULE EDUCATION As a working parent you will be able to schedule tutoring any time you’re free
  33. 33. PROMISE OF VALUE
  34. 34. Architects Ownership Medium Term Allows delivery team room to ideate and experiment Ownership of the problem, not the solution PROMISE OF VALUE EDU ANY TIME EDUCATION As a working parent you will be able to schedule tutoring any time you’re free
  35. 35. POD
  36. 36. EDU ANY TIME Delivery Team Ownership Short Term Scope defined by level of investment POD A set of time, people, and money set aside to deliver POV Experimentation used to find the best solution schedule tutoring any time you’re free
  37. 37. THINGS TO WATCH OUT FOR
  38. 38. 1
  39. 39. THERE’S NO STRATEGY THERE
  40. 40. 2
  41. 41. A FAT LEAN VALUE TREE
  42. 42. 3
  43. 43. OUTPUTS OUTCOMES Over
  44. 44. 4
  45. 45. HORIZON CONFUSION
  46. 46. 5
  47. 47. FEEDBACK-PHOBIA
  48. 48. WHAT CAN WE EXPECT?
  49. 49. 1
  50. 50. A SIMPLE WAY TO TALK ABOUT STRATEGY
  51. 51. 2
  52. 52. GET THE MOST OUT OF YOUR TEAMS (AND CONVINCE THEM TO STAY)
  53. 53. AUTONOMY PURPOSE MASTERY DAN PINK Author, Drive: The surprising truth about what motivates us
  54. 54. 3
  55. 55. MORE EFFECTIVE SOLUTIONS
  56. 56. 4
  57. 57. LESS WASTE
  58. 58. 5
  59. 59. FEEDBACK ON YOUR STRATEGY
  60. 60. BE THE HIGHEST VALUE EDUCATIONAL INVESTMENT FOR PEOPLE WORKING IN A RAPIDLY CHANGING ENVIRONMENT EDU ANY TIME MAKE EVERY CLASS EXCELLENT MAKE OUR EDUCATION AVAILABLE IN EVERY LIFE SITUATION BE THE QUICKEST AT RESPONDING TO NEW EDUCATIONAL NEEDS BREAKING THE CONVENTION OF FIXED SCHEDULE EDUCATION As a working parent you will be able to schedule tutoring any time you’re free As a group of co- workers you will be able to request a class at an unconventional time LEVERAGING SMART CAR TECHNOLOGY
  61. 61. 6
  62. 62. INCREASED RESPONSIVENESS
  63. 63. Market Change Change Perception Decision Deliver Value Market Change Change Perception Decision Deliver Value
  64. 64. QUESTIONS FOR THE AUDIENCE How easily could you describe your organisation’s mission? Are all employees encouraged to understand your organisation’s strategy, or or is it considered only relevant for senior management? How easy is it for your software delivery teams to understand how their work relates to your organisation’s mission? How could you help align your organisation around a common purpose?
  65. 65. THANK YOU ostevens@thoughtworks.com @OlipherSG

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