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Turn Your Organisation Into A Laboratory With Strategy Deployment


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Psychology of Agile Scrum Meetup - 14 March 2016

For large enterprises, the ability to deliver early and often is necessary, but not sufficient. Without clear and transparent alignment to a strategy, the organisation might still end up being very busy, getting better at delivering more and more of the wrong thing, but not achieving any positive results. However, knowing what the right strategy should be can also be a challenge in today’s complex world. Strategy Deployment is the Lean approach to meeting this challenge. Organisations need to become laboratories, in which they are constantly running experiments, generating learning, and applying that learning to continually progress towards their True North.

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Turn Your Organisation Into A Laboratory With Strategy Deployment

  2. 2. Karl Scotland @kjscotland #StrategyDeployment I always encourage people to try new things and experiment to find what works best for them. Dean Karnazes
  3. 3. Karl Scotland @kjscotland #StrategyDeployment Don’t be a tabby cat trying to emulate a cheetah. Sam Murphy
  4. 4. Karl Scotland @kjscotland #StrategyDeployment 1 mile in 3 minutes 55 seconds – two laps recovery. 1,200m in 2:57 – two laps recovery. 1,000m in 2:27 – two laps recovery. 800m in 1:57 – two laps recovery. 600m in 80s – two laps recovery. 400m in 50s – two laps recovery. 200m in 25s. All done at 1,300m altitude.
  5. 5. Karl Scotland @kjscotland #StrategyDeployment Jason Little
  6. 6. Karl Scotland @kjscotland #StrategyDeployment
  7. 7. Karl Scotland @kjscotland #StrategyDeployment Strategy Deployment
  8. 8. Karl Scotland @kjscotland #StrategyDeployment Be an ambidextrous methodologist
  9. 9. HOSHIN KANRI A New Business Operating System Karl Scotland @kjscotland #StrategyDeployment
  10. 10. Ship in a storm going in the right direction Direction Management Karl Scotland @kjscotland #StrategyDeployment
  11. 11. Any form of organisational improvement in which solutions emerge from the people closest to the problem Karl Scotland @kjscotland #StrategyDeployment
  12. 12. Karl Scotland @kjscotland #StrategyDeployment David Snowden
  13. 13. Karl Scotland @kjscotland #StrategyDeployment Governing constraints guide what should not be. Enabling constraints guide what could be.
  14. 14. Karl Scotland @kjscotland #StrategyDeployment
  15. 15. Karl Scotland @kjscotland #StrategyDeployment
  16. 16. Karl Scotland @kjscotland #StrategyDeployment Outcomes PlansActions Knowledge Gap: The difference between what we would like to know and what we actually know Alignment Gap: The difference between what we want people to do and what they actually do Effects Gap: The difference between what we expect our actions to achieve and what they actually achieve Stephen Bungay
  17. 17. Karl Scotland @kjscotland #StrategyDeployment Outcomes PlansActions Knowledge Gap: More detailed information Alignment Gap: More detailed instruction Effects Gap: More detailed controls Stephen Bungay
  18. 18. Karl Scotland @kjscotland #StrategyDeployment Outcomes PlansActions Knowledge Gap: Limit direction to defining and communicating the intent Alignment Gap: Allow each level to define how they will achieve the intent of the next level up, and ‘backbrief’ Effects Gap: Give individuals freedom to adjust their actions in line with the intent Stephen Bungay
  19. 19. Karl Scotland @kjscotland #StrategyDeployment
  20. 20. Karl Scotland @kjscotland #StrategyDeployment From Do this! Don’t think! Don’t ask questions! To Look at this What do you think? What questions are there?
  21. 21. Karl Scotland @kjscotland #StrategyDeployment
  22. 22. Agility is a strategy Agile is a tactic Karl Scotland @kjscotland #StrategyDeployment
  23. 23. X-MATRIX Visualise the Operating System Karl Scotland @kjscotland #StrategyDeployment
  24. 24. Karl Scotland @kjscotland #StrategyDeployment
  25. 25. Why do we need to improve competitive capabilities? What is our economic model? What are our primary goals and objectives? Karl Scotland @kjscotland #StrategyDeployment
  26. 26. Karl Scotland @kjscotland #StrategyDeployment Cost • Decrease • Avoid Revenue • Increase • Maintain Development Administration Failure Sales Customers Transactions Chris Matts
  27. 27. Karl Scotland @kjscotland #StrategyDeployment Scope Time Quality Cost
  28. 28. How can we improve competitive capabilities? What significant breakthroughs are required to achieve the results? Karl Scotland @kjscotland #StrategyDeployment
  29. 29. Hierarchy of Powers • Growth rates in your major categories Category Power • Status relative to your reference competitors Company Power • Market share in strategic target segments Market Power • Net differentiation of your flagship offers Offer Power • Ability to drive changes to tipping points Execution Power Karl Scotland @kjscotland #StrategyDeployment Geoffrey Moore
  30. 30. Karl Scotland @kjscotland #StrategyDeployment Through this work our strategies have become to: Prefer economies of flow Reduce the batch size of knowledge discovery Deliver services with fitness for purpose Sense and respond to feedback
  31. 31. Karl Scotland @kjscotland #StrategyDeployment Sustainability Service- Orientation Survivability
  32. 32. Karl Scotland @kjscotland #StrategyDeployment
  33. 33. How will we know whether our competitive capabilities are improving? What proxy variables will give a leading indication success? Karl Scotland @kjscotland #StrategyDeployment
  34. 34. Karl Scotland @kjscotland #StrategyDeployment Larry Maccherone
  35. 35. Karl Scotland @kjscotland #StrategyDeployment Productivity Predictability Responsiveness Quality Customer Satisfaction Employee Engagement Larry Maccherone
  36. 36. Karl Scotland @kjscotland #StrategyDeployment
  37. 37. What investments will we make to improve competitive capabilities? What new processes, practices or technologies could we use? Karl Scotland @kjscotland #StrategyDeployment
  38. 38. Taken as a whole the portfolio of experiments can, and should be contradictory. Some of them should use the principle of obliquity. Some should take a naive perspective. David Snowden Karl Scotland @kjscotland #StrategyDeployment
  39. 39. Karl Scotland @kjscotland #StrategyDeployment
  40. 40. How well do all the elements correlate with each other? Where is there strong alignment? Where is there no alignment? Karl Scotland @kjscotland #StrategyDeployment
  41. 41. Karl Scotland @kjscotland #StrategyDeployment Increase revenue Reduce costs Reduce churn SmooththeFlow ofValue BetheFirstto Market GivetheBest UserExperience Metrics DevOps Product Ownership Innovation DecreaseLead Time IncreaseNPS Increase Throughput Decrease SupportCases IncreaseH3 Investment
  42. 42. CATCHBALL Decentralise Decision Making Karl Scotland @kjscotland #StrategyDeployment
  43. 43. Karl Scotland @kjscotland #StrategyDeployment
  44. 44. Karl Scotland @kjscotland #StrategyDeployment
  45. 45. Karl Scotland @kjscotland #StrategyDeployment Catch Reflect Improve Pass
  46. 46. Karl Scotland @kjscotland #StrategyDeployment
  47. 47. Karl Scotland @kjscotland #StrategyDeployment
  48. 48. Plan Do Study Adjust Plan Do Study Adjust Plan Do Study Adjus t Karl Scotland @kjscotland #StrategyDeployment
  49. 49. Karl Scotland @kjscotland #StrategyDeployment You fail, and then what? Life goes on. It’s only when you risk failure that you discover things. Lupita Nyong’o
  50. 50. Karl Scotland @kjscotland #StrategyDeployment F.A.I.L. First Attempt In Learning
  51. 51. Cadence is the use of regular, predictable rhythm within a process. This rhythm transforms unpredictable events into predictable events. Don Reinertsen Karl Scotland @kjscotland #StrategyDeployment
  52. 52. Karl Scotland @kjscotland #StrategyDeployment It’s the memory of what was said and felt that creates alignment, not the final piece of paper. Thomas L. Jackson
  53. 53. “it is a communication tool for dialog between individuals to support collaborative problem-solving and mentoring processes. And the process of creating the report becomes the real value of the thing.” Durward Sobek Karl Scotland @kjscotland #StrategyDeployment
  54. 54. Karl Scotland @kjscotland #StrategyDeployment
  55. 55. What How Why Whether Simon Sinek Karl Scotland @kjscotland #StrategyDeployment
  56. 56. Purpose is your passion Vision is the world you wish to create Strategy is how you get there Tactics ensure you survive the journey Stephen Parry Karl Scotland @kjscotland #StrategyDeployment
  57. 57. A goal is a broad primary outcome. A strategy is the approach you take to achieve a goal. An objective is a measurable step you take to achieve a strategy. A tactic is a tool you use in pursuing an objective associated with a strategy. Mikal E. Belicove Karl Scotland @kjscotland #StrategyDeployment
  58. 58. Karl Scotland @kjscotland #StrategyDeployment 1. Populate an X-Matrix 2. Play Catchball 3. Provoke Feedback
  59. 59. Karl Scotland @kjscotland #StrategyDeployment How Do I Know If Agile Is Working?
  60. 60. Karl Scotland @kjscotland #StrategyDeployment How Do I Know If Agile Is Working?
  61. 61. Karl Scotland @kjscotland #StrategyDeployment Listen to everyone, follow no-one. Dean Karnazes
  62. 62. Karl Scotland @kjscotland #StrategyDeployment
  63. 63. THANK YOU! Questions? Karl Scotland @kjscotland #StrategyDeployment