The Art of Strategy - Steps Towards Business Agility

1. The Art of Strategy  Steps Towards Business Agility Erik Schön   Agile Leadership Day #ALD2019  March 13, 2019 @ Stockholm If you want to read more: The Art of Strategy — Introduction

2. @erik_schon #ALD2019

4. Sustainably thrive  in a world where  the rate of change  will never be slower  than today Why Strategy? @erik_schon #ALD2019

5. CHOICES  of harmonized direction  for the organization  or parts of the organization  done regularly DECISIONS & ACTIONS  in a harmonized direction  by everyone everywhere  in the organization What is Strategy? @erik_schon #ALD2019

6. @erik_schon Product Development Executive | Product Strategist | Executive Performance Coach DISCLAIMER: LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation.@erik_schon #ALD2019

8. Art of War  Sun Tzu ~400 BC   How to be  certain to win  and avoid fighting wars@erik_schon #ALD2019

9. Art of War  The Essence Be prepared   Be influential  Be fast  Be adaptable  Be innovative@erik_schon #ALD2019

10. Art of War  Be Prepared Purpose Landscape ASSESSMENTS Who has more influential purpose? Who has more skilled leadership? Who is favored by landscape and climate? Who carries out doctrine more skillfully? Who has more capabilities? Who has more highly trained people? Who provides feedback more clearly? Doctrine Leadership Climate Avoid engagement until assessments indicate certain success

11. Skilled combinations of   surprise and the expected  is     as infinite as heaven and earth    as inexhaustible as rivers and seas    ending only to begin again   like the sun and the moon     dying only to live again   like the four seasons Art of War  Be Innovative When engaging with stakeholders, first do what is expected, then use surprise to succeed

12. Example  Be Innovative: The Expected and the Surprise Expected: call, mail, browse & listen to music just works Surprise: in the same device with awesome touch interface Outcome: customer delight & extreme loyalty@erik_schon #ALD2019

14. Who’s the Real Top Gun? @erik_schon #ALD2019

15. A Discourse on Winning and Losing  Briefed 1976-1997 by John Boyd “He who can handle the quickest rate of change survives”

16. A Discourse on Winning and Losing  The Essence Keep competition off balance Build alliances Harmonize creativity & initiative Decide & learn in fast(er) cycles @erik_schon #ALD2019 Chet Richards @FuentesDeOnoro

17. Keep Competition  Off Balance Observe Orient Decide Act Change situations faster than competition can figure out, again & again ... OODA  Loop

18. Example  Keep Competition Off Balance: Change situations faster than competition Develop and manufacture trucks faster, cheaper and with better quality @erik_schon #ALD2019

19. Observe Orient Decide Act OODA  “Loop” @erik_schon #ALD2019

20. Observe Orient Decide Act Unfolding   circumstances Outside  information IMPLICIT guidance & control Unfolding interactions with environment Use what we have learned and current strategy Learn new things, revise strategy AND break out of old habits, even if successful so far Decide and Learn in Fast(er) Cycles Chet Richards @FuentesDeOnoro@erik_schon #ALD2019 Model of how the world is working  Situational Awareness

21. Decide and Learn in Fast(er) Cycles  Example: Regular Strategy Retro- & Prospectives March June September Current Situation? New Insights? Revise Strategy? Revise Targets? December @erik_schon #ALD2019

22. Decide and Learn in Fast(er) Cycles  Example: Real-Time Management 08.00-08.15 Teams …… … … Daily Standups 08.45-09.00 CTO’s leadership team Issues that cannot be resolved   by CTO’s direct reports’ teams,  solution plan reported back within 24 hours 08.15-08.30 Management teams ……… Issues that cannot be resolved  by teams, solution plan  reported back within 24 hours 08.30-08.45 CTO’s direct reports’   management teams … Issues that cannot be resolved   by management teams,  solution plan reported back within 24 hours @erik_schon #ALD2019 Create a CADENCE OF ACCOUNTABILITY

23. Katya Knyazeva

24. Characteristics   of a Map Visual Context-specific Position Components Anchor Movement x How can we  do this in  business? Katya Knyazeva

25. Wardley Maps Visualize  value chain evolution &  enable strategic choices Market position? Competition    Expected market changes?    Focus? Strategic gameplays?    In-house, off-the-shelf, outsource?  Capabilities?  Methodologies?  Organization? Simon Wardley @swardley

26. Wardley Maps Visualize  value chain evolution &  guide strategic choices Visual Context-specific Movement  (Evolution) Position  (Relative to Anchor) Component Anchor  (User Needs) Simon Wardley @swardley

27. Wardley Maps Expected market changes Focus Outsource Outsource In-House In-House Off-the-Shelf Off-the-Shelf Off-the-Shelf EXAMPLE: Gaming Visualize  value chain evolution &  guide strategic choices! Howard Rees @Howard_Rees

28. Novel Emerging Good Best Evolution Find the right home Build the   thing right Client side build Build Server side   build PRACTICES Server side test Collaboration with  database analysts Client side test ValueChainVisibleInvisible Wardley Maps Maturity Mapping:  context-specific  capability assessments Example:   Finding the right home  in the housing market  online    Chris McDermott @chrisvmcd

29. Simon Wardley @swardley   Faster MAP:  User Need  Value Chain  Position  Movement Anticipate change  Economic patterns  Competitors’ actions Study & use gameplay Study & use principles for   ways of operating, communicating & organizing Sun Tzu’s Five Factors  Boyd’s OODA “Loop”  Wardley Mapping

31. Agile  Ability to adapt to and influence new situations @erik_schon #ALD2019

32. Agility  Ability to adapt to and influence new situations  more rapidly than your competitors @erik_schon #ALD2019

33. Business  Succeed together with your stakeholders @erik_schon #ALD2019

34. Business Agility  Ability to adapt to and influence new situations  more rapidly than your competitors  in order to succeed together with your stakeholders @erik_schon #ALD2019

35. The Art of Strategy  To succeed   by securing harmony among stakeholders and keeping competition off balance   through evolving better capabilities to adapt and map @erik_schon #ALD2019

36. The Art of Strategy  To succeed   by securing harmony among stakeholders and keeping competition off balance   through evolving better capabilities to adapt and map What would YOU  like to try? @erik_schon #ALD2019

37. The Art of Strategy  To succeed   by securing harmony among stakeholders and keeping competition off balance   through evolving better capabilities to adapt and map Q&A @erik_schon #ALD2019

38. For Further Learning Articles McDermott, Mapping Maturity (2018) Richards, Boyd’s OODA Loop. It’s Not What You Think (2018) Schön, Doing Strategy the Interactive & Flexible Way (2018)  Schön, The Art of Strategy — Introduction (2019) Wardley, An Introduction to Wardley (Value Chain) Mapping (2015)   Books Boyd, A Discourse on Winning and Losing (2018) Richards, Certain to Win (2004) Schön, The Art of Strategy (2019) Sun Tzu, The Art of War (2008) Wardley, Wardley Maps (2018)   Videos Richards, On OODA Loops, Adaptability & John Boyd (2012) Schön, Doing Strategy the Interactive & Flexible Way (2018) Wardley, Crossing the River by Feeling the Stones (2017) @erik_schon #ALD2019

39. Thanks for Inspiration! Melissa  Perris Rita  Gunther  McGrath Nilofer  Merchant Chet  Richards Simon  Wardley Stockholm  Lean Coffee  Roger  Martin @erik_schon #ALD2019