Our world and future business opportunities are continuously emerging through advances in design and technology, and wider social and economic change. Organizations must continually revisit the question, ``What businesses are we in, and how can we organize to maximise our long-term potential?'' The most important work for leaders is to pursue a high performance culture of continuous experimentation and learning. This keynote will discuss how to embrace that culture to adapt our organization design, and transform our business to a resilient, constantly adapting Lean Enterprise

1. TECHNOLOGY
IS NOT
ENOUGH
@barryoreilly #LeanEnterprise @jemolesky
1

2. CREATIVE DESTRUCTION
2 http://www.technologyreview.com/view/519226/technology-is-wiping-out-companies-faster-than-ever/

3. 3
PREDICTIVE VS COMPLEX
https://www.youtube.com/watch?v=U39RMUzCjiU

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. ORGANIZATION
STRUCTURE
DECISION MAKING
TALENT
5

6. WHO’S IDEA WAS THIS?
Highest Paid Persons Opinion
Purple Flying Hippo, http://earcl01.deviantart.co6m

7. 7
NETWORKED COMMUNITY
Peter Hinssen, The Network Always Wins

8. http://www.whataboutwatermelon.com 8

9. http://www.whataboutwatermelon.com 9

10. http://www.whataboutwatermelon.com10

11. HOW DO WE LEAD AND IMPROVE DECISIONS IN NETWORKS?
Principle of Mission
11

12. HOW DO WE CHANGE CULTURE?
12
Edgar Schein, Organization Culture and Leadership
LEARNING
ANXIETY
SURVIVAL
ANXIETY

13. HOW DO WE MOTIVATE AND ENGAGE PEOPLE?
13
Dan Pink, Drive
AUTONOMY MASTERY
PURPOSE

14. INFLEXIBLE
BUSINESS
PROCESSES
14

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. TARGETS AND INCENTIVES CAN
HAVE UNINTENDED OUTCOMES
16

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. 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. 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

21. 21

22. 22

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

25. 25

26. 26

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. OTHERS NOW STARTING TO FOLLOW SUIT
28

29. INABILITY
TO ADOPT AN
EXPERIMENTATION
MINDSET
29

30. 30
Doubt is not a pleasant condition,
but certainty is absurd.
- Voltaire

31. 31

32. Online Experimentation at Microsoft, http://ai.stanford.edu/~ronnyk/ExPThinkWeek2009Public.pdf 32

33. Microsoft 33

34. 34

35. 35

36. REDUCE UNCERTAINTY WITH EXPERIMENTS
36

37. 37
14 people
£261,000
12 weeks

38. PRINCIPLE OF OPTIONALITY
Nassim Nicholas Taleb, Antifragile 38

39. WHAT CAN WE DO
TOMORROW?
39
Leadership, Strategy and Tactics

40. BE CLEAR AND SHARE THE PRINCIPLE OF MISSION
40
Principle of Mission
Executive Team

41. CONSIDER END TO END FLOW OF VALUE
41

42. GET COMFORTABLE WITH UNCERTAINTY
42
Define boundaries
investment scope
risk level

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. @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