Presented by: Jabe BloomCTO, The Library Corporation@cyetainhttp://blog.jabebloom.com
Joshua (Jabe) Bloom      CTO : The Library Corporation               & TLC Labs                            @bmorelean     ...
People are born with    intrinsic motivation, self-    esteem, dignity, curiosity to    learn, joy in learning.@cyetain   ...
We have learned to live in a world of   mistakes and defective products as if   they were necessary to life. It is time to...
Learning is not the product of    teaching.    Learning is the product of the    activity of learners.@cyetain            ...
@cyetain
"I am confused, are we a     library company that makes         software or a software     company that makes library     ...
A Guess@cyetain
It is not the absence of    defensiveness that characterizes    learning teams but the way    defensiveness is faced@cyeta...
Fail Fast, Fail Well                                                 (when Innovating)                                    ...
@cyetain
Big bets:       • Major initiatives         o Internal marketing         o External marketing         o Massive resource r...
Skunk Works            Best people          Secret projects            Lots of toys Isolated from the rest of the org@cyet...
We now accept the fact that learning is    a lifelong process of keeping abreast    of change. And the most pressing task ...
Our Solution Hypothesis:Create a learning organization   o   Domain Aware   o   Distributed Cognition   o   Distributed De...
Experiment: TLC Labs InnovationTeamJumpstart:• Brought LSM team in for 2 day sessionNow:• Volunteer team acts as mentors• ...
Experiment: TLC Labs eBilbioFile• From idea to MVP in 2 weeks• Didnt build until we had 5 customers• Concierged first custo...
The only way to win    is to learn faster than    anyone else.                 ― Eric Ries@cyetain
Joshua (Jabe) Bloom           CTO : The Library Corporation                    & TLC Labs                 http://tlclabs.c...
2012-08-21: My 40-Year-Old Corporation Can Pivot Faster Than You!
2012-08-21: My 40-Year-Old Corporation Can Pivot Faster Than You!
2012-08-21: My 40-Year-Old Corporation Can Pivot Faster Than You!
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2012-08-21: My 40-Year-Old Corporation Can Pivot Faster Than You!

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  • \n
  • I’d like to thank Sarge for inviting me... you guys have a very passionate and engaged leader!\n\nI would like to thank all of you for spending some time with me tonight... I am going to talk about how we are using Lean to transform a 40 year old company.\n\nMy blog is @ http://jabe.co and you can leave me anonymous feedback @ http://sayat.me/jabebloom[/twitter]\nPlease consider using #fwsf hash if discussing “Fail Well”\n\n30 mins isn’t a lot of time to discuss these rather subtle ideas of lean..\n\nIf I have one message for you it is... People are doing this, in real companies, with real customers, and for them it is making a difference.\n\nLet me get started and then I hope to be able to answer questions until you guys kick me off stage... I love this stuff.\n\n\n\n\n
  • The Library Corporation makes software for some of the largest libraries in the world, we have a large an diverse customer base.\n\nThe company has built it’s success on years of innovation. We were the first company to ever put data on a CD-ROM, we created the codec ourselves, and when we found libraries didn’t have the computers needed to read the CDs we gave them computers. \n\nI am rather happy to see that the other speakers here tonight are from other fields:\n\nmechanical engineers, medical devices field, a doctors, information providers, and book manufacturers\n\nThough each of us comes from very different fields, producing value for many different consumer segments, we all share an engagement in Knowledge Work. Which is my preferred term, others like Richard Florida might use terms like Creative Class. \n\nWhat we produce, largely is knowledge, the software of the mind, processes and concepts that make a chaotic environment more predictable or at least more manageable. \n\nAt TLC our knowledge work is most easily seen in the software we produce. Though we also sell various forms of data as well as data manipulation services. \n\nThis kind of work we do largely with our minds and so I spend a good deal of my time thinking about how we might optimize the systems people work in to allow their minds to work together more effectively. \n\nThe current cultural focus at TLC is that of Learning. We are trying to develop what, Peter Senge would refer to as a "Learning Organization". I'm going to talk a bit about why we decided to focus on learning, how we think we developed that culture and what impacts we think it is having on the business\n\n
  • First though… TLC wasn't like this when Simon Marcus (the COO) showed up 5 years ago and hired me to help him.\n\nIn 2007, when I arrived, the company hadn't delivered a significant upgrade to their flagship products in over 2 years. The company was in essence outsourcing much of it's innovation as it swamped itself in technical dept. There was as excessive backlog of customer demand for updates and a nearly overwhelming amount of failure demand evidenced by an ever-growing trouble ticket load. The results of this could be seen clearly in a dropping customer retention rate. \n\n\n
  • The company was attempting to support over 29 separate products with no development practices (mushroom programming), and employee compensation had stagnated resulting in very low employee satisfaction (NPS Score)\nFinally the company itself was operating in the red.\n\nEveryone lived in their own offices, with the doors closed. No-one was aware of what other people were working on... Mushroom Programming.\n
  • We forcefully righted the ship by implementing Scrum and quite literally tearing down the walls of the company. Highly proscriptive... not sure I would recommend it....\n\nIn 2011 after several years of very hard work, we found ourselves in a completely different place. We now had in place a reasonably rigorous XP practice that produced, stable, consistent and frequent releases in desirable time frames. The software engineering teams where now able to address fail demand quickly and with minimal impact. The software, IT and support departments all adopted flow based Kanban like processes. The support department went from a individual performance focus to a crew model with defined roles and team based evaluations. This along with significant improvements to the software, driven by a focus on User Experience cut the Trouble Ticket load by 2/3rds, it continues to drop. Our customer satisfaction as measured by the Net Promoter Score has increased 30% the result of which can be seen in our customer retention rate has increased to 98%.\n\nWe are now operating in the black… and the average employee's salary has increase 45%.\n\n
  • So... here is the trick.... the diffusion of Integrated Library Systems technology is HERE... \n Saturated\n Commodified\n RFP Driven - No incentive for innovation\n Falling funding\n Already disrupted?\n
  • So for the last year we have been working to understand better how we can leverage what we have learned. This is most clearly illustrated by a question I was asked by a new employee. She said,\n\n and that made me scratch my head for a good long time...\n\n
  • We are pretty good at software development... This is a graph that Simon Marcus... he is our COO.. he likes to “make up graphs” to prove a point.\n\nI like this one...\n\nUsing completely made up numbers it proves that most established companies spend a vast majority of their effort on “Ongoing Ops”... \n Admin\n Accounting\n HR\n Legal\n Ops\n Rent\n IT\n Support\n Implementation\n Management\n Compliance\n Sales\n Product / Engineering\n\na bit on Sustaining Innovations to keep market share... and a tiny sliver on Distruptive Innovation\n\nWe’ve been told by some people we show this Guess to that we are VASTLY OVER estimating the amount of effort companies spend on any innovation...\n\nSo besides the obvious... focusing on Ongoing Ops, has a massive cultural effect.\n\nOngoing Ops is about derisking, efficiency and failure avoidance....\n\nInnvation... is quite quite different.\n
  • There are some conditions that are present in the case of most knowledge work and that are certainly present when you are making software. \n\nThese conditions include:\n\nHigh degrees of uncertainty\n\nToo much information / not enough information / emergent information / noisy information\n\nFrequent shifts between different degrees of complexity\n\nA great deal of what the military theorist Carl Von Clausewitz called “friction” - the chance events that emerge as you work, making practice so much harder than theory.\n\nThis means that often we find our selves unable to make predictions about the future\n\nBalance Advocacy and Inquiry\n\n\n
  • \nWhen Innovating people need to understand the VALUE of Failure.... \n\n
  • So we have a problem... Innovation... Effectiveness vs the Core Process and Efficiency... how do we resolve?\n\nWe use a the Cynefin model to make sense of the work we are doing... in relation to failure.\n
  • How do normal companies and management deal with this?\n\nLook at Yahoo... or look at the advice people are giving Zuckerberg \n
  • S.O.S.... Give them everything... economic viability & diffusion of innovation....\n
  • It’s our theory that one of the most effective ways to organize a company to be successful in the face of these conditions is by creating an environment in which lots of people have both the ability and the power to make many decisions without a high degree of oversight.\n\nUnderly this theory are some key assumptions. Among these are:\n\nPeople who operate under their own autonomy are more likely to care about their work, notice and react to changes in context and be innovative\n\nThe shorter the distance between relevant information and people making decisions, the better likelihood there is that good decisions will be made\n\nThis combination of information and the structure to act makes it more likely that when a shift in context occurs, people will act.\n\nIt should be noted that there is not yet a great deal of practical evidence outside of TLC that either the above theory or assumptions are valid. Over the last few years we have been researching and exploring these ideas, as have Jim and Tonianne and many others in the lean community. \n\nWe have some evidence from our exploration of these ideas at TLC that causes us to believe that it is worth making our ideas more explicit and investing more energy in exploring them. \n\nWe want to continue developing hyper-capabilities that allow us to apply more and more energy to innovation. \n\n
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  • 2012-08-21: My 40-Year-Old Corporation Can Pivot Faster Than You!

    1. 1. Presented by: Jabe BloomCTO, The Library Corporation@cyetainhttp://blog.jabebloom.com
    2. 2. Joshua (Jabe) Bloom CTO : The Library Corporation & TLC Labs @bmorelean http://tlclabs.co blog http://jabe.co Send Anonymous Feedback http://sayat.me/jabebloom@cyetain
    3. 3. People are born with intrinsic motivation, self- esteem, dignity, curiosity to learn, joy in learning.@cyetain -W. Edwards Deming
    4. 4. We have learned to live in a world of mistakes and defective products as if they were necessary to life. It is time to adopt a new philosophy....-W. Edwards Deming@cyetain
    5. 5. Learning is not the product of teaching. Learning is the product of the activity of learners.@cyetain -John Holt
    6. 6. @cyetain
    7. 7. "I am confused, are we a library company that makes software or a software company that makes library software?”@cyetain
    8. 8. A Guess@cyetain
    9. 9. It is not the absence of defensiveness that characterizes learning teams but the way defensiveness is faced@cyetain -Peter M Senge
    10. 10. Fail Fast, Fail Well (when Innovating) The Line of SURPRISE! Interesting Hidden Hidden Risk Ideas Value Potential Information Pretty Pretty Sure Sure theory theory is right is wrong 0% 50% 100% Probability of Failure@cyetain
    11. 11. @cyetain
    12. 12. Big bets: • Major initiatives o Internal marketing o External marketing o Massive resource re-allocation o Large projects, large lead times Leading to: • Chasing sunk costs Or • Panicked pivots@cyetain
    13. 13. Skunk Works Best people Secret projects Lots of toys Isolated from the rest of the org@cyetain
    14. 14. We now accept the fact that learning is a lifelong process of keeping abreast of change. And the most pressing task is to teach people how to learn. -Peter Drucker@cyetain
    15. 15. Our Solution Hypothesis:Create a learning organization o Domain Aware o Distributed Cognition o Distributed Decision Making o Reward Learning o Understand Psychology o Use Lean Startup theories in the Complex Domain to test innovations o Diverse Decision Making@cyetain
    16. 16. Experiment: TLC Labs InnovationTeamJumpstart:• Brought LSM team in for 2 day sessionNow:• Volunteer team acts as mentors• Everyone can pitch• Anyone can vote at pitch meetings• Anyone can join validation teams• Anyone can join MVP teams• 2 teams selected from first “class”@cyetain
    17. 17. Experiment: TLC Labs eBilbioFile• From idea to MVP in 2 weeks• Didnt build until we had 5 customers• Concierged first customers• Generated $2000 in revenue in first week• Added 10 customers a week while adjusting code, testing market• Average customer = $6,000 annual revenue• At 80 customers 6 weeks from full launch@cyetain
    18. 18. The only way to win is to learn faster than anyone else. ― Eric Ries@cyetain
    19. 19. Joshua (Jabe) Bloom CTO : The Library Corporation & TLC Labs http://tlclabs.co blog http://jabe.co Send Anonymous Feedback http://sayat.me/jabebloom@cyetain TLC LABS

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