1
BUILDING A
RESPONSIVE
ORGANIZATION
FOR THE DIGITAL ERA
MARCELO DE SANTIS
EXECUTIVE ADVISOR, DIGITAL TRANSFORMATION
2
#1
in Agile and
Continuous Delivery
100+
books written
6000+
employees
14
Global offices
25
Years as a digital partner
DIGITAL
SCALE UPS
These are digital-first
companies that have
embraced tech from
the start… and are now
in a growth phase
TECH AS A
DIFFERENTIATOR
These are typically large enterprises
who are heavily investing in tech,
but only see it as a differentiator…
not yet embedded in their
strategic/business goals holistically
DIGITAL/TECH
ENTERPRISES
These are large enterprises
who believe they are
already TECH@CORE,
or are investing heavily
to get there
PERSONAS OF OUR CLIENTS
• Business in the digital era
• Building a winning responsive organization
AGENDA
6
THE
DIGITAL ERA
HAS ARRIVED
TECH@CORE
BUSINESSES
ARE LEADING
THE MARKET
(1)
Credit: Digital/McKinsey Insights, Winning in digital ecosystems, McKinsey, January 2018.
BY 2025,
TECH&CORE (*)
COULD MEDIATE
30% OF GLOBAL
ECONOMY
(*) Digital Ecosystems
Representing around $60 trillion in
annual revenue. Experts estimate only
3% of established companies have
adopted an effective digital ecosystem.
9
SPENDING IN DIGITAL TRANSFORMATION
TO REACH 2 TRILLION BY 2022
10
DIGITAL TRANSFORMATIONS ARE
HARD TO ACHIEVE AND SUSTAIN
DELIVER VALUE
Build and measure what
matters. We focus on
what’s meaningful, not
on what’s trendy or easy
MOVE FAST
Use lean and agile
culture to get you
where you need to
go quickly
THINK BIG
Apply design thinking,
business strategy, and
tech to solve your most
pressing problems and
opportunities
Credit: “Unlocking success in digital transformations”, Survey, McKinsey, October 2018.
Meaning transformations that have
improved performance and also
sustained changes in the long term.
Less than 16% of
transformations succeed
While digital transformation improved
performance, they could not manage to
sustain those improvements.
Additional 7% Could Not
Sustain Results
12
CAPTURE NEW
MARKET OPPORTUNITIES
PLACE CUSTOMER VALUE
AT THE CENTER
EXTEND THE REACH OF
THE ORGANIZATION
HOW DO
TECH@CORE
BUSINESSES
WIN ?
PLACE TECH&CORE OF
THEIR BUSINESS MODEL
FOR THE MUSIC INDUSTRY
Our success at Amazon is a function of
how many experiments we do per year,
per month, per week...
Jeff Bezos – CEO, Amazon
TECH@CORE BUSINESSES
INNOVATE AND EXPERIMENT
CONSTANTLY
RESPONSIVE ORGANIZATION
©ThoughtWorks 2018 Commercial in Confidence
RESPONSIVE
ORGANISATIONS
At the core is a new operating
model for your organization.
Supported by Adaptive Leadership
behaviors and implemented with
Organizational Design techniques.
Adaptive
Leadership
Value-Driven
Portfolio
Management
Organisational
Design
Adaptive
Leadership
Value-Driven
Portfolio
Management
Organization
Design
RESPONSIVE ORGANIZATION
©ThoughtWorks 2018 Commercial in Confidence
RESPONSIVE
ORGANISATIONS
At the core is a new operating
model for your organization.
Supported by Adaptive Leadership
behaviors and implemented with
Organizational Design techniques.
Adaptive
Leadership
Value-Driven
Portfolio
Management
Organisational
Design
Adaptive
Leadership
Value-Driven
Portfolio
Management
Organization
Design
RESPONSIVE ORGANIZATION
Evolutionary
Architecture
Portfolio
Management
Executive
Vision
Business
Strategy
Measure
Value
VALUE-DRIVEN PORTFOLIO
MANAGEMENT
At the core of our Responsive
Organization is a new operating model
for your business.
● Adaptive learning
culture
● Evolutionary tech
architecture
● Agile delivery
● Value based
prioritization
● Customer at the
center vision &
strategy
1
2
3
4
©ThoughtWorks 2018 Commercial in Confidence
RESPONSIVE
ORGANISATIONS
At the core is a new operating
model for your organization.
Supported by Adaptive Leadership
behaviors and implemented with
Organizational Design techniques.
Adaptive
Leadership
Value-Driven
Portfolio
Management
Organisational
Design
Adaptive
Leadership
Value-Driven
Portfolio
Management
Organization
Design
Lean Change
Approach
RESPONSIVE ORGANIZATION
ADAPTIVE LEADERSHIP
New leadership behaviors are needed to unlock
and maximize the value your teams create.
● Enable collaborative
decision making
● Provide the safety for
people to learn and
unlearn
● Focus on
customer
value
©ThoughtWorks 2018 Commercial in Confidence
RESPONSIVE
ORGANISATIONS
At the core is a new operating
model for your organization.
Supported by Adaptive Leadership
behaviors and implemented with
Organizational Design techniques.
Adaptive
Leadership
Value-Driven
Portfolio
Management
Organisational
Design
Adaptive
Leadership
Value-Driven
Portfolio
Management
Organization
Design
RESPONSIVE ORGANIZATION
ORGANIZATION DESIGN
Adopting this new way of working means adjusting
existing processes , organization structure and
learning new skills.
● Set Cross-Functional,
Autonomous Teams
● Deconstruct
legacy processes
● Acquire New
Talent & Skills
● Establish New
performance and
reward systems
HOW: LEAN CHANGE APPROACH
We implement change in incremental thin slices
that are prioritized to maximize transformation
goals. This helps to manage risk and to motivate
the team as tangible progress is realized.
● Focus on “thin, vertical
slices” that maximizes
business value.
● Avoid long time-to-
value approaches.
● Scale up across the
enterprise at speed -
with less ambiguity.
©ThoughtWorks 2018 Commercial in Confidence
Thanks To Their New
Ways Of Working,
Vodafone
Is customer focused
not silo driven
Can release 5x a week vs. 5
times a year
Significantly reduced costs
linked to releasing software
Can respond quickly to business
and customer needs
Has multiple ways to validate
and test ideas cheaply and
quickly
Tech and digital teams have
built trust with the wider
business
Digital
transformation
through a
customer-centric
ecosystem
Vodafone found themselves in a highly
competitive, saturated market. They needed to
rebuild trust, refocus on the basics and create a
roadmap for digital transformation.
To reset, ThoughtWorks provided agile coaching
and helped Vodafone with portfolio alignment
and management.
TO WIN
IN THE
DIGITAL ERA
SPEED
IS NOT
ENOUGH
26
ACCELERATION
IS KEY
27
HOW FAST
CAN YOU
GET FASTER ?
To adapt to the exponential change
driven by customers and technology.
MARCELO DE SANTIS
EXECUTIVE ADVISOR, DIGITAL TRANSFORMATION
marcelo.desantis@thoughtworks.com
thoughtworks.com
THANK YOU

Building a Responsive Organization for the Digital Era

  • 1.
    1 BUILDING A RESPONSIVE ORGANIZATION FOR THEDIGITAL ERA MARCELO DE SANTIS EXECUTIVE ADVISOR, DIGITAL TRANSFORMATION
  • 2.
  • 3.
    #1 in Agile and ContinuousDelivery 100+ books written 6000+ employees 14 Global offices 25 Years as a digital partner
  • 4.
    DIGITAL SCALE UPS These aredigital-first companies that have embraced tech from the start… and are now in a growth phase TECH AS A DIFFERENTIATOR These are typically large enterprises who are heavily investing in tech, but only see it as a differentiator… not yet embedded in their strategic/business goals holistically DIGITAL/TECH ENTERPRISES These are large enterprises who believe they are already TECH@CORE, or are investing heavily to get there PERSONAS OF OUR CLIENTS
  • 5.
    • Business inthe digital era • Building a winning responsive organization AGENDA
  • 6.
  • 7.
  • 8.
    (1) Credit: Digital/McKinsey Insights,Winning in digital ecosystems, McKinsey, January 2018. BY 2025, TECH&CORE (*) COULD MEDIATE 30% OF GLOBAL ECONOMY (*) Digital Ecosystems Representing around $60 trillion in annual revenue. Experts estimate only 3% of established companies have adopted an effective digital ecosystem.
  • 9.
  • 10.
    SPENDING IN DIGITALTRANSFORMATION TO REACH 2 TRILLION BY 2022 10
  • 11.
    DIGITAL TRANSFORMATIONS ARE HARDTO ACHIEVE AND SUSTAIN DELIVER VALUE Build and measure what matters. We focus on what’s meaningful, not on what’s trendy or easy MOVE FAST Use lean and agile culture to get you where you need to go quickly THINK BIG Apply design thinking, business strategy, and tech to solve your most pressing problems and opportunities Credit: “Unlocking success in digital transformations”, Survey, McKinsey, October 2018. Meaning transformations that have improved performance and also sustained changes in the long term. Less than 16% of transformations succeed While digital transformation improved performance, they could not manage to sustain those improvements. Additional 7% Could Not Sustain Results
  • 12.
    12 CAPTURE NEW MARKET OPPORTUNITIES PLACECUSTOMER VALUE AT THE CENTER EXTEND THE REACH OF THE ORGANIZATION HOW DO TECH@CORE BUSINESSES WIN ? PLACE TECH&CORE OF THEIR BUSINESS MODEL
  • 13.
    FOR THE MUSICINDUSTRY Our success at Amazon is a function of how many experiments we do per year, per month, per week... Jeff Bezos – CEO, Amazon TECH@CORE BUSINESSES INNOVATE AND EXPERIMENT CONSTANTLY
  • 14.
  • 15.
    ©ThoughtWorks 2018 Commercialin Confidence RESPONSIVE ORGANISATIONS At the core is a new operating model for your organization. Supported by Adaptive Leadership behaviors and implemented with Organizational Design techniques. Adaptive Leadership Value-Driven Portfolio Management Organisational Design Adaptive Leadership Value-Driven Portfolio Management Organization Design RESPONSIVE ORGANIZATION
  • 16.
    ©ThoughtWorks 2018 Commercialin Confidence RESPONSIVE ORGANISATIONS At the core is a new operating model for your organization. Supported by Adaptive Leadership behaviors and implemented with Organizational Design techniques. Adaptive Leadership Value-Driven Portfolio Management Organisational Design Adaptive Leadership Value-Driven Portfolio Management Organization Design RESPONSIVE ORGANIZATION
  • 17.
    Evolutionary Architecture Portfolio Management Executive Vision Business Strategy Measure Value VALUE-DRIVEN PORTFOLIO MANAGEMENT At thecore of our Responsive Organization is a new operating model for your business. ● Adaptive learning culture ● Evolutionary tech architecture ● Agile delivery ● Value based prioritization ● Customer at the center vision & strategy 1 2 3 4
  • 18.
    ©ThoughtWorks 2018 Commercialin Confidence RESPONSIVE ORGANISATIONS At the core is a new operating model for your organization. Supported by Adaptive Leadership behaviors and implemented with Organizational Design techniques. Adaptive Leadership Value-Driven Portfolio Management Organisational Design Adaptive Leadership Value-Driven Portfolio Management Organization Design Lean Change Approach RESPONSIVE ORGANIZATION
  • 19.
    ADAPTIVE LEADERSHIP New leadershipbehaviors are needed to unlock and maximize the value your teams create. ● Enable collaborative decision making ● Provide the safety for people to learn and unlearn ● Focus on customer value
  • 20.
    ©ThoughtWorks 2018 Commercialin Confidence RESPONSIVE ORGANISATIONS At the core is a new operating model for your organization. Supported by Adaptive Leadership behaviors and implemented with Organizational Design techniques. Adaptive Leadership Value-Driven Portfolio Management Organisational Design Adaptive Leadership Value-Driven Portfolio Management Organization Design RESPONSIVE ORGANIZATION
  • 21.
    ORGANIZATION DESIGN Adopting thisnew way of working means adjusting existing processes , organization structure and learning new skills. ● Set Cross-Functional, Autonomous Teams ● Deconstruct legacy processes ● Acquire New Talent & Skills ● Establish New performance and reward systems
  • 22.
    HOW: LEAN CHANGEAPPROACH We implement change in incremental thin slices that are prioritized to maximize transformation goals. This helps to manage risk and to motivate the team as tangible progress is realized. ● Focus on “thin, vertical slices” that maximizes business value. ● Avoid long time-to- value approaches. ● Scale up across the enterprise at speed - with less ambiguity.
  • 23.
    ©ThoughtWorks 2018 Commercialin Confidence Thanks To Their New Ways Of Working, Vodafone Is customer focused not silo driven Can release 5x a week vs. 5 times a year Significantly reduced costs linked to releasing software Can respond quickly to business and customer needs Has multiple ways to validate and test ideas cheaply and quickly Tech and digital teams have built trust with the wider business Digital transformation through a customer-centric ecosystem Vodafone found themselves in a highly competitive, saturated market. They needed to rebuild trust, refocus on the basics and create a roadmap for digital transformation. To reset, ThoughtWorks provided agile coaching and helped Vodafone with portfolio alignment and management.
  • 24.
  • 25.
  • 26.
  • 27.
    27 HOW FAST CAN YOU GETFASTER ? To adapt to the exponential change driven by customers and technology.
  • 28.
    MARCELO DE SANTIS EXECUTIVEADVISOR, DIGITAL TRANSFORMATION marcelo.desantis@thoughtworks.com thoughtworks.com THANK YOU