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Innovation agile-on-the-beach

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Most organisations optimise for cost control over value creation but in our connected world we are only ever one smart competitor away from trouble. Can you optimise your IT organisation and business around innovation and still keep costs down? In this talk we will explore some of the forces that act on business to stifle innovation and explore some ways that teams, IT divisions and businesses can organise to take advantage of the new opportunities our online world offers.

This is a talk about Lean, Organisational Design and the perils of matrix management (its 45 minutes of free consultancy, don't tell everyone or they'll all want to come...)

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Innovation agile-on-the-beach

  1. 1. Growing a culture of innovation James Lewis
  2. 2. Introduction
  3. 3. Who am I? James Lewis Engineer, TAB
  4. 4. TAB TechnologyAdvisory Board
  5. 5. TAB TechnologyAdvisory Board
  6. 6. virtual body TAB Technology Advisory Board
  7. 7. virtual bodyface to face twice a year TAB Technology Advisory Board
  8. 8. virtual bodyface to face twice a year TAB all things technical at ThoughtWorks Technology Advisory Board
  9. 9. virtual bodyface to face twice a year TAB all things technical at ThoughtWorks Technology advisors to the CTO Advisory Board
  10. 10. radar
  11. 11. next edition ~ 6 weeks
  12. 12. a talk in three acts...
  13. 13. a talk in three acts...Act I whats all the fussabout?
  14. 14. a talk in three acts...Act I whats all the fussabout?Act II traditional methods
  15. 15. a talk in three acts...Act I whats all the fussabout?Act II traditional methodsAct III innovation done right
  16. 16. Act IWhat’s all the fuss about?
  17. 17. new competitors, global markets
  18. 18. lean startup
  19. 19. Lean Start Up Principles! Entrepreneurs are ! everywhere" Entrepreneurship is management" Validated Learning" Build – Measure - Learn" Innovation Accounting" "
  20. 20. So far, so hipster
  21. 21. it turns out thatorganisational health is a competitive advantage
  22. 22. • “Organizations that focused on performance AND health simultaneously• were nearly twice as successful as those that focused on health alone,• and nearly three times as successful as those that focused on performance alone.” Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage, Scott Keller & Colin Price (McKinsey & Co.)
  23. 23. Surveys: 600,000 respondents, 500 companies6,800 CEO’s & senior executivesReviews: 900 books & academic journalsPersonal interviews: 30 CEO’sData from: >100 McKinsey clients Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage, Scott Keller & Colin Price (McKinsey & Co.)
  24. 24. intangible assetsare becoming much more valuable
  25. 25. this is recognised on your balance sheet
  26. 26. these are recognised in market capitalisationphoto of intangible asset - people or something
  27. 27. Impact of Intangibles on Market Value Year Intangible % Tangible % 1982 38 62 1992 62 38 2000 85 15How Leaders BuildValue,Ulrich & Smallwood
  28. 28. what sort oforganisation are you?
  29. 29. Act II the usual approach
  30. 30. explore vs exploit
  31. 31. we often start value driven and become cost driven
  32. 32. we often start value driven and become cost driven
  33. 33. we often start value driven and become cost drivenexploring exploiting
  34. 34. established corp, founded 1955
  35. 35. established corp, founded 1955Uses punch cards and tapesFirst in the industry to …Rapidly gaining market share X
  36. 36. established corp, founded 1955 X
  37. 37. established corp, founded 195550 years on... X
  38. 38. established corp, founded 1955 IT is a cost centre One developer is much the same as another and one language is much the50 years on... same as another Standardisation and cost-control are key factors X
  39. 39. newandcool.com, founded 2012
  40. 40. newandcool.com, founded 2012-Operating procedures adapt to suitdemand-Finding and keeping the best developersoffers a competitive advantage-Anything that gives faster time tomarket at high quality is worth doing-Innovation and value-delivery are thekey factors X
  41. 41. newandcool.com, founded 2012 X
  42. 42. newandcool.com, founded 2012now what? X
  43. 43. do you allowyour people to innovate?
  44. 44. do you allowyour people to innovate?how do you measure them?
  45. 45. its relativelyeasy to measure “performance” money saved utilisation story points delivered
  46. 46. and therefore usual to incentivise based on this money saved utilisation story points delivered
  47. 47. but innovationis difficult to measureso incentivising for this is really, really hard
  48. 48. agent theory
  49. 49. Agent theory agent theoryyou perform an activity; I pay you
  50. 50. but what if iwant you to dotwo things..?
  51. 51. performance innovation
  52. 52. performance innovation strong measuresstrong incentives weak measures weak incentives
  53. 53. so which activity are you going to perform?
  54. 54. so, we are<beep> then?
  55. 55. Act III innovationdone right?
  56. 56. Daniel Pink, Drive: The Surprising Truth about What Motivates Us
  57. 57. high commitmenthuman resources
  58. 58. The Modern Firm, John Roberts, 2004
  59. 59. The Modern Firm, John Roberts, 2004
  60. 60. The Modern Firm, John Roberts, 2004
  61. 61. The Modern Firm, John Roberts, 2004
  62. 62. The Modern Firm, John Roberts, 2004
  63. 63. The Modern Firm, John Roberts, 2004
  64. 64. The Modern Firm, John Roberts, 2004
  65. 65. The Modern Firm, John Roberts, 2004
  66. 66. “egalitarian values and norms”
  67. 67. run asustainable business
  68. 68. run a revolutionisesustainable IT and business champion software excellence
  69. 69. run a revolutionise advocatesustainable IT and passionately business champion for social software and excellence economic justice
  70. 70. “rigorous pre- employment screening”
  71. 71. Valvecertainlybelieve inthis
  72. 72. “self-managing teams”
  73. 73. the role oforganisational design
  74. 74. nokia
  75. 75. 1992 2000
  76. 76. failing logistics EU’s highest rubber failure led to market boots stock price capitalisationmanufacture cut in half1992 2000
  77. 77. failing logistics EU’s highest rubber failure led to market boots stock price capitalisationmanufacture cut in half
  78. 78. failing logistics EU’s highest rubber failure led to market boots stock price capitalisationmanufacture cut in half
  79. 79. failing logistics EU’s highest rubber failure led to market boots stock price capitalisationmanufacture cut in half
  80. 80. failing logistics EU’s highest rubber failure led to market boots stock price capitalisationmanufacture cut in half
  81. 81. failing logistics EU’s highest rubber failure led to market boots stock price capitalisationmanufacture cut in half
  82. 82. “Why have we been a successful company?If you want avery simple answer, it is getting the balance right between innovation and execution” Jorma Ollila, Nokia CEO failing logistics EU’s highest rubber failure led to market boots stock price capitalisation manufacture cut in half
  83. 83. “a strong culture focussed on anoverarching goal”
  84. 84. mission drivenorganisations
  85. 85. Summary
  86. 86. “Those are the only two choices. Win by being moreordinary, more standard, and cheaper. Or win bybeing faster, more remarkable, and more human.”--Godin, Seth. (2010). Linchpin: Are You Indispensable?
  87. 87. peoplearchitecture routinesculture
  88. 88. • What type of organisation are you? • exploring? • exploiting?
  89. 89. • What type of organisation are you? • exploring? • exploiting?• Focussing on health as well as performance is crucial in our global marketplace
  90. 90. • What type of organisation are you? • exploring? • exploiting?• Focussing on health as well as performance is crucial in our global marketplace• Be careful what you measure, because that is what you will get
  91. 91. • What type of organisation are you? • exploring? • exploiting?• Focussing on health as well as performance is crucial in our global marketplace• Be careful what you measure, because that is what you will get• for knowledge work, maybe high commitment HR can help
  92. 92. you can’t build a culture of innovation
  93. 93. you can’t build a culture of innovationbut with purpose and leadership you can put the routines and architecture in place for it to flourish
  94. 94. Thank you! @boicy http://bovon.org jalewis@thoughtworks.com
  95. 95. is hiring @boicy http://bovon.org jalewis@thoughtworks.com

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