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Lean Enterprise - Enabling Innovative Culture
The document discusses the need for organizations to evolve their management processes to match modern, internet-enabled business capabilities, emphasizing the importance of a culture of collaboration and experimentation for innovation. Key findings from a DevOps report indicate that high-performance IT correlates with improved profitability and market share. It also highlights the necessity for transparency, alignment, and continuous innovation as critical factors for organizational agility and success.
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Lean Enterprise - Enabling Innovative Culture
- 1. Joanne Molesky &Barry O’Reilly @jemolesky #LeanEnterprise @barryoreilly ENABLING INNOVATIVE CULTURE
- 2. Right now, yourcompany has 21st century Internet enabled business processes, mid 20th century management processes, all built atop 19th century management principles. - Gary Hamel, American Management Expert
- 3. MEET THE NEXTGENERATION $1-2B Valuation $2-5B Valuation $5-40B Valuation $40+B Valuation Sources: Dow Jones VentureSource and The Wall Street Journal. Valuations as of March 2015.
- 4. KEY FINDINGS OF2014 DevOps Report •High performance IT doubles your chance to exceed profitability, market share and productivity goals. •DevOps practices strongly correlates with IT performance •Culture matters. Collaboration and experimentation contribute to organizational performance. •Job satisfaction is the No. 1 predictor of performance.
- 5. BUSINESS CEO, COO, CFO,CMO TECHNOLOGY CIO, CTO, CDO (Digtial and/or Data) SOFTWARE IS EATING THE WORLD
- 6. BUSINESS CEO, COO, CFO,CMO TECHNOLOGY CIO, CTO, CDO (Digtial and/or Data) SOFTWARE IS EATING THE WORLD
- 7. BUSINESS CEO, COO, CFO,CMO TECHNOLOGY CIO, CTO, CDO (Digtial and/or Data) SOFTWARE IS EATING THE WORLD
- 8. BUSINESS CEO, COO, CFO,CMO TECHNOLOGY CIO, CTO, CDO (Digtial and/or Data) SOFTWARE IS EATING THE WORLD Technology as a strategic capability Willingness to support experimentation Iterative, adaptive working processes and practices Reduce learning anxiety across organization Ability to innovate at scale
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- 12. SHOOK’S VERSION John Shook,MIT Sloan Management Review
- 13. CONTINUOUS IMPROVEMENT Humble, Molesky,O’Reilly Lean Enterprise: How High Performance Organizations Innovate At Scale
- 14. CONTINUOUS IMPROVEMENT Humble, Molesky,O’Reilly Lean Enterprise: How High Performance Organizations Innovate At Scale
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- 16. DIFFUSION OF INNOVATION EverettRogers, Diffusions Of Innovations
- 17. CROSSING THE CHASM GeoffreyMoore, Dealing With Darwin
- 18. CONTINUOUS LIFECYCLE OFINNOVATION Geoffrey Moore, Dealing With Darwin
- 19. BUSINESS MODEL STRATEGIES EXPLORE •Uncertainty • Complex • Emergent • Experimental EXPLOIT •Improved understanding •Cause and effect •Accumulated knowledge •Forecast
- 20. INNOVATION PORTFOLIO explore exploitsustain retire kill kill kill kill Humble, Molesky, O’Reilly, Lean Enterprise: How High Performance Organizations Innovate At Scale
- 21. INNOVATION PORTFOLIO explore exploitsustain retire kill kill kill kill Humble, Molesky, O’Reilly, Lean Enterprise: How High Performance Organizations Innovate At Scale
- 22. INNOVATION PORTFOLIO explore exploitsustain retire kill kill kill kill Humble, Molesky, O’Reilly, Lean Enterprise: How High Performance Organizations Innovate At Scale
- 23. INNOVATION PORTFOLIO explore exploitsustain retire kill kill kill kill Humble, Molesky, O’Reilly, Lean Enterprise: How High Performance Organizations Innovate At Scale
- 24. INNOVATION PORTFOLIO explore exploitsustain retire kill kill kill kill Humble, Molesky, O’Reilly, Lean Enterprise: How High Performance Organizations Innovate At Scale
- 25. INNOVATION PORTFOLIO explore exploitsustain retire kill kill kill kill Humble, Molesky, O’Reilly, Lean Enterprise: How High Performance Organizations Innovate At Scale
- 26. INNOVATION PORTFOLIO explore exploitsustain retire kill kill kill kill Humble, Molesky, O’Reilly, Lean Enterprise: How High Performance Organizations Innovate At Scale
- 27. INNOVATION PORTFOLIO explore exploitsustain retire kill kill kill kill Humble, Molesky, O’Reilly, Lean Enterprise: How High Performance Organizations Innovate At Scale
- 28. INNOVATION PORTFOLIO explore exploitsustain retire kill kill kill kill DISRUPT Humble, Molesky, O’Reilly, Lean Enterprise: How High Performance Organizations Innovate At Scale
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- 37. G I GA F A C T O R Y
- 38. THE DISRUPTION POINT Humble,Molesky, O’Reilly, Lean Enterprise: How High Performance Organizations Innovate At Scale
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- 42. The main obstaclesto improved business responsiveness are slow decision-making, conflicting departmental goals and priorities, risk-averse cultures and silo-based information. Economist Intelligence Unit: “Organizational agility: How business can survive and thrive in turbulent times”
- 43. COMMAND AND CONTROL Compliancerules Risk models Quality controls Inspections Balanced scorecards Target and incentives Budget contracts Adapted from:http://www.bbrt.org/beyond-budgeting/bb-problem.html
- 44. COMMAND AND CONTROL STRATEGY EXECUTION ALIGNMENT Compliancerules Risk models Quality controls Inspections Balanced scorecards Target and incentives Budget contracts Adapted from:http://www.bbrt.org/beyond-budgeting/bb-problem.html
- 45. COMMAND AND CONTROL STRATEGY EXECUTION ALIGNMENT MICRO MANAGEMENT CONTROL ACCOUNTABLE FORTARGET & BUDGET 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
- 46. COMMAND AND CONTROL STRATEGY EXECUTION ALIGNMENT MICRO MANAGEMENT CONTROL ACCOUNTABLE FORTARGET & BUDGET 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 THE CONTROL OF BUREAUCRACY 10-20% OF COSTS
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- 48. TRADITIONAL VIEW BUSINESS Many goodideas, we need money!
- 49. TRADITIONAL VIEW BUSINESS Many goodideas, we need money! PROJECTS We’re working, give us money!
- 50. TRADITIONAL VIEW BUSINESS Many goodideas, we need money! PROJECTS We’re working, give us money! OPERATIONS That doesn’t work – need more money!
- 51. STOP THE PROCESSMADNESS Lean Enterprise Loop Enterprise Loop Humble, Molesky, O’Reilly, Lean Enterprise: How High Performance Organizations Innovate At Scale
- 52. STOP THE PROCESSMADNESS Lean Enterprise Loop Enterprise Loop Humble, Molesky, O’Reilly, Lean Enterprise: How High Performance Organizations Innovate At Scale
- 53. STOP THE PROCESSMADNESS Lean Enterprise Loop Enterprise Loop Humble, Molesky, O’Reilly, Lean Enterprise: How High Performance Organizations Innovate At Scale
- 54. STOP THE PROCESSMADNESS Lean Enterprise Loop Enterprise Loop Humble, Molesky, O’Reilly, Lean Enterprise: How High Performance Organizations Innovate At Scale
- 55. Adhering to budgetingrules should not trump good decision making. - Emily Oster, American Economist
- 56. WHAT COULD POSSIBLYGO WRONG? ! !!!! Humble, Molesky, O’Reilly, Lean Enterprise: How High Performance Organizations Innovate At Scale
- 57. WHAT COULD POSSIBLYGO WRONG? $$ $$ ! !!!! Humble, Molesky, O’Reilly, Lean Enterprise: How High Performance Organizations Innovate At Scale
- 58. $$ BIG PROJECT! WHAT COULDPOSSIBLY GO WRONG? $$ $$ ! !!!! Humble, Molesky, O’Reilly, Lean Enterprise: How High Performance Organizations Innovate At Scale
- 59. $$ BIG PROJECT!NO CHANGE WHATCOULD POSSIBLY GO WRONG? $$ $$ ! !!!! Humble, Molesky, O’Reilly, Lean Enterprise: How High Performance Organizations Innovate At Scale
- 60. $$ BIG PROJECT!NO CHANGE ! !!!! WHATCOULD POSSIBLY GO WRONG? $$ $$ ! !!!! Humble, Molesky, O’Reilly, Lean Enterprise: How High Performance Organizations Innovate At Scale
- 61. $$ BIG PROJECT!NO CHANGE ! !!!! WHATCOULD POSSIBLY GO WRONG? OPERATION COSTS $$ $$ ! !!!! Humble, Molesky, O’Reilly, Lean Enterprise: How High Performance Organizations Innovate At Scale
- 62. $$ BIG PROJECT!NO CHANGE ! !!!! WHATCOULD POSSIBLY GO WRONG? OPERATION COSTS $$ $$ $$ ! !!!! Humble, Molesky, O’Reilly, Lean Enterprise: How High Performance Organizations Innovate At Scale
- 63. $$ BIG PROJECT!NO CHANGE ! !!!! WHATCOULD POSSIBLY GO WRONG? OPERATION COSTS $$ GREAT JOB! $$ $$ ! !!!! Humble, Molesky, O’Reilly, Lean Enterprise: How High Performance Organizations Innovate At Scale
- 64. $$ BIG PROJECT!NO CHANGE ! !!!! WHATCOULD POSSIBLY GO WRONG? OPERATION COSTS $$ GREAT JOB! WTF? $$ $$ ! !!!! Humble, Molesky, O’Reilly, Lean Enterprise: How High Performance Organizations Innovate At Scale
- 65. FROM PROJECTS … BUSINESSPROJECTS OPERATIONS Many ‘good’ ideas - WE NEED $$$! We’re working - GIVE US $$$! That doesn’t work - NEED MORE $$$! Humble, Molesky, O’Reilly, Lean Enterprise: How High Performance Organizations Innovate At Scale
- 66. TO PRODUCTS… PRODUCTS /SERVICES OPERATIONS Customers Service DeskOps Management Cross-Functional Product Teams Teams Push Changes Continuously Product Teams for IaaS / PaaS Infrastructure / Platform-As-A-Service Humble, Molesky, O’Reilly, Lean Enterprise: How High Performance Organizations Innovate At Scale
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- 68. PERFORMANCE MEASUREMENT MEASURE THINGSTHAT MATTER •Do our customers advocate us to others? •What is the outcome we achieved? •Have we reduced complexity of our technology? •Are we getting better?
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- 70. TAKE AWAYS Think Big,Start Now, Learn Fast Continuous innovation is a strategic capability Technology is the business
- 71. The Lean Institute: http://www.lean.org ! ManagementInnovation eXchange: http://www.managementexchange.com/ ! Beyong Budgeting Round Table: http://www.bbrtna.org/ OTHER RESOURCES
- 72. THANK YOU Joanne Molesky jmolesky@thoughtwoks.com@jemolesky ! Barry O’Reilly boreilly@thoughtworks.com @barryoreilly