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Being a Lean Enterprise : Technology Is Not Enough

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Success in today’s business world is dependent on more than technology. Building a fully automated deployment pipeline will certainly help teams deliver their work faster, but it doesn't address the fundamental question of are building the right thing and delivering value to your customers.

It true technology is a strategic capability for any organization. However, many large organizations fail to reap rewards from their investment because their culture and mindset does not enable experimentation and learning.

In this talk Barry and Joanne will share what are the key issues that are holding organizations back from unleashing innovation, giving you examples of large organizations that  are trying different ways to do address these issues with success. 

Published in: Leadership & Management

Being a Lean Enterprise : Technology Is Not Enough

  1. 1. TECHNOLOGY IS NOT ENOUGH @barryoreilly #LeanEnterprise @jemolesky 1
  2. 2. CREATIVE DESTRUCTION 2 http://www.technologyreview.com/view/519226/technology-is-wiping-out-companies-faster-than-ever/
  3. 3. 3 PREDICTIVE VS COMPLEX https://www.youtube.com/watch?v=U39RMUzCjiU
  4. 4. 4 MCKINSEY GLOBAL DIGITAL SURVEY 2014 Published June 2014 http://www.mckinsey.com/insights/business_technology/The_digital_tippingbusiness_point_McKinsey_Global_Survey_results
  5. 5. ORGANIZATION STRUCTURE DECISION MAKING TALENT 5
  6. 6. WHO’S IDEA WAS THIS? Highest Paid Persons Opinion Purple Flying Hippo, http://earcl01.deviantart.co6m
  7. 7. 7 NETWORKED COMMUNITY Peter Hinssen, The Network Always Wins
  8. 8. http://www.whataboutwatermelon.com 8
  9. 9. http://www.whataboutwatermelon.com 9
  10. 10. http://www.whataboutwatermelon.com10
  11. 11. HOW DO WE LEAD AND IMPROVE DECISIONS IN NETWORKS? Principle of Mission 11
  12. 12. HOW DO WE CHANGE CULTURE? 12 Edgar Schein, Organization Culture and Leadership LEARNING ANXIETY SURVIVAL ANXIETY
  13. 13. HOW DO WE MOTIVATE AND ENGAGE PEOPLE? 13 Dan Pink, Drive AUTONOMY MASTERY PURPOSE
  14. 14. INFLEXIBLE BUSINESS PROCESSES 14
  15. 15. STRATEGY ALIGNMENT EXECUTION MICRO MANAGEMENT CONTROL ACCOUNTABLE FOR TARGET & BUDGET The Control Bureaucracy 10-20% of costs Compliance rules Risk models Quality controls Inspections Balanced scorecards Target and incentives Budget contracts Adapted from:http://www.bbrt.org/beyond-budgeting/bb-problem.html
  16. 16. TARGETS AND INCENTIVES CAN HAVE UNINTENDED OUTCOMES 16
  17. 17. Executive Team Support Services Teams Strategy, Finance, HR Marketing, IT, Supply chain, Product development Cross-functional Value center Customers Customers Customers 17 CLEAR ACCOUNTABILITY FOR SELF MANAGED TEAMS Adapted from:http://www.bbrt.org/beyond-budgeting/bb-vision.html Principle of Mission Cross-functional Value center Cross-functional Value center
  18. 18. UK GOVERNMENT CHALLENGES British National Health Service, had a program to computerized patient records. Projected to cost £2.3bn in 2002 and Despite the cancellation in 2011, it is expected to end up costing over £10bn. At the end of 2013, only 55% of the population had their medical records in the system. 18
  19. 19. RACE ONLINE REPORT 2012 For me, the acid test for Directgov is whether it can empower, and make life simpler for, citizens and at the same time allow government to turn other things off. - Martha Lane Fox, UK Digital Champion 19
  20. 20. 20
  21. 21. 21
  22. 22. 22
  23. 23. GOV.UK ALPHA DESIGN PRINCIPLES 1.Don’t slow down delivery 2.Decision when they are need at the right level 3.Do it with the right people 4.Go see for yourself 5.Only do it if it adds value 6.Trust and verify 23 https://digitaltransformation.blog.gov.uk/2014/06/24/governance-principles/
  24. 24. 24
  25. 25. 25
  26. 26. 26
  27. 27. Big IT and big failure have stalked government for too long; that is why this government is radically rethinking the way it does business. - Francis Maude, Cabinet Office 27
  28. 28. OTHERS NOW STARTING TO FOLLOW SUIT 28
  29. 29. INABILITY TO ADOPT AN EXPERIMENTATION MINDSET 29
  30. 30. 30 Doubt is not a pleasant condition, but certainty is absurd. - Voltaire
  31. 31. 31
  32. 32. Online Experimentation at Microsoft, http://ai.stanford.edu/~ronnyk/ExPThinkWeek2009Public.pdf 32
  33. 33. Microsoft 33
  34. 34. 34
  35. 35. 35
  36. 36. REDUCE UNCERTAINTY WITH EXPERIMENTS 36
  37. 37. 37 14 people £261,000 12 weeks
  38. 38. PRINCIPLE OF OPTIONALITY Nassim Nicholas Taleb, Antifragile 38
  39. 39. WHAT CAN WE DO TOMORROW? 39 Leadership, Strategy and Tactics
  40. 40. BE CLEAR AND SHARE THE PRINCIPLE OF MISSION 40 Principle of Mission Executive Team
  41. 41. CONSIDER END TO END FLOW OF VALUE 41
  42. 42. GET COMFORTABLE WITH UNCERTAINTY 42 Define boundaries investment scope risk level
  43. 43. CONCLUSION 1) BE CLEAR AND SHARE THE PRINCIPLE OF MISSION 2) CONSIDER END TO END FLOW OF VALUE 3)GET COMFORTABLE WITH UNCERTAINTY 43
  44. 44. @barryoreilly www.barryoreilly.com #leanenterprise | @jezhumble | @jemolesky ThoughtWorks is hiring! http://join.thoughtworks.com Australia | Brazil | Canada | China Ecuador | Germany | Italy India | Singapore | South Africa Turkey | Uganda | UK | USA © 2014 ThoughtWorks, Inc. Order our new book! http://bit.ly/leanentp 44 THANK YOU

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