This document provides an overview of a presentation on lean enterprise transformation. It discusses understanding the context of innovation and entrepreneurship. It outlines an agenda to take initial steps to diagnose current maturity, and map next steps on the transformation journey. The presentation is given by Jonathan Bertfield, who has over 20 years of experience driving growth, innovation and product development at enterprises and startups.

1. LEAN ENTERPRISE
TRANSFORMATION
SPINNAKER
JONATHAN BERTFIELD
@BERTERS
@MYSPINNAKERCO

2. ‣ UNDERSTAND THE CONTEXT OF INNOVATION AND
ENTREPRENEURSHIP
‣ TAKE THE FIRST STEPS TO DIAGNOSE THE CURRENT
MATURITY OF YOUR ENTERPRISE TRANSFORMATION
‣ MAP YOUR NEXT STEPS ON THE JOURNEY
OUTCOMES

3. AGENDA
3
Goals
Lean Enterprise Baseline
Journey
Challenges
Roadmap

4. Spinnaker - Lean Enterprise Transformation 4
@BERTERS
@MYSPINNAKERCO
20+ YEARS EXPERIENCE DRIVING GROWTH, INNOVATION
AND PRODUCT DEVELOPMENT AT ENTERPRISES AND
STARTUPS
CLIENTS INCLUDE: MERCK, US GOV., VANGUARD,
MICROSOFT, LEGAL ZOOM, SANTANDER, PMI, AXA, USAA,
PEARSON, CITIBANK, AMERICAN PRESS INSTITUTE,
SCHOLASTIC, SESAME WORKSHOP, ASSOCIATED PRESS,
NEWS CORP., BUSINESS INSIDER
SPINNAKER CONSULTING - PARTNER
LEAN STARTUP CO - SENIOR FACULTY
GENERAL ASSEMBLY - ENTERPRISE INSTRUCTOR

5. 5
EXTERNAL UNCERTAINTY
SPEED
EXPECTATIONS
DISRUPTION
INSTABILITY

6. INTERNAL FRICTION
NO DISCIPLINE
SLOW TO MARKET
SKILLS & DATA GAP
RISK AVERSION
BIG BETS

7. 7
operate their core businesses at scale
while simultaneously adapting to change
through continuous learning,
by self disrupting,
focusing on customers,
and innovating to drive long term growth.
Lean Enterprises:

8. Spinnaker - Lean Enterprise Transformation
LEAN ENTERPRISE PRINCIPLES (SKIPPED IN PRESENTATION)
➤ Continuous learning
➤ Embracing uncertainty
➤ Small bets
➤ Experimentation
➤ Organizational Agility
➤ Customer centricity
➤ Outcomes over output
➤ Empowerment and transparency
➤ Leadership change 8

9. Spinnaker - Lean Enterprise Transformation 9
CONTINUOUS LEARNING

10. EMBRACE UNCERTAINTY
10

11. Spinnaker - Lean Enterprise Transformation 11
SMALL BETS

12. Spinnaker - Lean Enterprise Transformation 12

13. Spinnaker - Lean Enterprise Transformation 13

14. Spinnaker - Lean Enterprise Transformation
AGILITY

15. Spinnaker - Lean Enterprise Transformation 15
CUSTOMER CENTRICITY
Photo by kazuend on Unsplash

16. Spinnaker - Lean Enterprise Transformation 16

17. Spinnaker - Lean Enterprise Transformation 17

18. TRANSFORMATION JOURNEY
18

19. Spinnaker - Lean Enterprise Transformation
LEAN ENTERPRISE TRANSFORMATION JOURNEY
Ad hoc
Scattered. Inconsistent.
Hero efforts. Small groups
of enthusiasts at varied
maturity levels
Thinking
Pilots w. Early Adopters to
validate Problem & Solution.
Building knowledge through
communities.
Doing
Scaling and Optimizing.
Culture changing. Incentives
shifting
Being
Business Impact is clear.
Values embraced at all
levels. Transition to BAU
while continuing to learn

20. Spinnaker - Lean Enterprise Transformation
LEAN ENTERPRISE TRANSFORMATION JOURNEY
Ad hoc Thinking Doing Being

21. Spinnaker - Lean Enterprise Transformation 21

22. Spinnaker - Lean Enterprise Transformation 22
PEARSON CONTINUOUS TRANSFORMATION JOURNEY
Enterprise
Transformation initiated
PLC v1.0
launched
Incremental funding
agreed with Finance
Coach
Program
launched
First pilots
Global
adoption of PLC
and governance
Portfolio tool
Active portfolio
management
Roadshow
workshops
and training
First view of the global
portfolio
and Exec
endorsement
Governance
accelerators
launched in
multiple BUs

23. Spinnaker - Lean Enterprise Transformation 23

24. Spinnaker - Lean Enterprise Transformation
WHERE ARE WE HEADED?
24

25. Spinnaker - Lean Enterprise Transformation 25
mindset
mechanics
goals
LEAN ENTERPRISE TRANSFORMATION JOURNEY
©SPINNAKERWWW.MYSPINNAKER.CO

26. Spinnaker - Lean Enterprise Transformation 26
MECHANICS
MINDSET
BUSINESS RESULTS

27. Spinnaker - Lean Enterprise Transformation
TRANSFORMATION
GOALS
KEY
METRICS
BUSINESS
GOALS
WHERE ARE WE HEADED?
WHAT ARE THE
PRIMARY
COMPONENTS OF
OUR STRATEGIC
VISION ?
WHAT ARE THE
PRIMARY DRIVERS
OF OUR
TRANSFORMATION
INITIATIVE?
HOW WILL WE
MEASURE THE SUCCESS
OF OUR
TRANSFORMATION
INITIATIVE IN ACHIEVING
STRATEGIC VISION?

28. Spinnaker - Lean Enterprise Transformation
GOALS & KPIS - UK BANK EXAMPLE (WIP)
New revenue
sources in
banking and
non-banking
services
Deeper
relationships with
more customers
Dramatically
improved cost-
to-serve
Fundamentally
change digital IT
and operations
Break silos that
result in poor
customer
experience
Reward and
incentivize the
right behaviors
and culture
Close the skill
gap for the
future
NPS score
improved by %
% of employees
trained on lean,
agile
Glassdoor
rating
improved by %
1 month from
idea to
delivery to
customer
Proactive
lifecycle
management
Continuous
learning and
deliveryRisk capabilities
as a true
competitive
advantage
Competitive
proposition for
top talent
Simplified
governance Digital, progressive,
entrepreneurial
culture
% of new revenue
from new business
models
Top 3
employer on
Times 100 list
% of funds
managed
through lean
% of investment
saved through
retirement of
products/
services
TRANSFORMATION METRICSBUSINESS

29. Spinnaker - Lean Enterprise Transformation
TRANSFORMATION METRICS EXAMPLES
• Total number of investments achieving product-market fit / achieving profitable
business models
• Number of new markets/segments entered and growth rates within them
• Percent of revenue / net new revenue from products launched in the last 3-5 years
• Percent of revenue / net new revenue from products in each horizon
• Average investment by horizon and PLC stage
• Cost savings
• Increased distribution footprint
• Customer / Employee satisfaction, NPS

30. Spinnaker - Lean Enterprise Transformation 30
BUSINESS & TRANSFORMATION GOALS EXERCISE
•Identify the business / mission
goals you believe you are, or
should be, trying to solve for.
•Identify the transformation program
goals you are, or should be, trying
to deliver.

31. Spinnaker - Lean Enterprise Transformation
WHAT IS OUR STARTING POINT?
31

32. WHAT BLOCKERS
ARE GETTING IN
THE WAY?
32

33. Spinnaker - Lean Enterprise Transformation 33
Fear of
individual loss
as a result of
change
BLOCKERS Regulation
Rigid career
expectations /
behaviors
HR &
Finance
processes
Need for
new skills
Speed of
decision
making
Lack of
Transparency
Silos
Internal
Politics
Retaining
and sharing
learning
Fear of
change
Bonus
structure
Annual
budgeting
cycle
Lack of
experience
Long
Product
Cycles
Volume of
BAU
“We know
what we
are doing”Projects
not
products
Comfort
Zone
Too much
compromise
Lack of
purpose
Part time
volunteers
No clear
product
ownership
Lack of
C-Suite
buy in
Top Down
Hierarchy
Funding
model
Protect
my own
position

34. WHAT BOOSTERS
ARE AMPLIFYING
YOUR POTENTIAL?
34

35. Spinnaker - Lean Enterprise Transformation 35
BOOSTERS
Desire
People &
talent
Leadership
commitment to
transformation
Momentum
Changing
organization
structures
Drivers – we
have no option
but to change
Our
brand
Clear
strategy
and vision
Better tech/
tools
Valuable
customers
Community
Seed
funding
Public
innovation
space
Permission
to fail
Culture of
change
Stories,
examples
Market
forces
Celebrating
small wins
publicly
Internal
coaches
New
incentives

36. Spinnaker - Lean Enterprise Transformation 36
WHERE ARE YOU?
1. Identify your top transformation
blockers (inhibitors, barriers, friction)
2. Identify your top transformation
boosters (enhancers, stimuli,
catalysts)

37. Spinnaker - Lean Enterprise Transformation 37
Fear of
individual loss
as a result of
change
BLOCKERS Regulation
Rigid career
expectations /
behaviors
HR &
Finance
processes
Need for
new skills
Speed of
decision
making
Lack of
Transparency
Silos
Internal
Politics
Retaining
and sharing
learning
Fear of
change
Bonus
structure
Annual
budgeting
cycle
Lack of
experience
Long
Product
Cycles
Volume of
BAU
“We know
what we
are doing”
Projects
not
products
Comfort
Zone
Too much
compromise
Lack of
purpose
Part time
volunteers
No clear
product
ownership
Lack of
C-Suite
buy in
Top Down
Hierarchy
Funding
model
Protect
my own
position
Desire
People &
talent
Leadership
commitment to
transformation
Momentum
Changing
organization
structures
Drivers – we
have no option
but to change
Our
brand
Clear
strategy
and vision
Better tech/
tools
Valuable
customers
Community
Seed
funding
Public
innovation
space
Permission
to fail
Culture of
change
Stories,
examples
Market
forces
Celebrating
small wins
publicly
Internal
coaches
New
incentives
BOOSTERS

38. Spinnaker - Lean Enterprise Transformation
WHAT ARE OUR NEXT STEPS?
38

39. TRANSFORMATION FRAMEWORK
39

40. Spinnaker - Lean Enterprise Transformation 40
mindset
mechanics
goals
LEAN ENTERPRISE TRANSFORMATION JOURNEY
©SPINNAKERWWW.MYSPINNAKER.CO

41. Spinnaker - Lean Enterprise Transformation 41
CULTURE
LIFECYCLEPORTFOLIO GOVERNANCE
PEOPLE
DELIVERY
LEAN ENTERPRISE TRANSFORMATION JOURNEY
©SPINNAKERWWW.MYSPINNAKER.CO

42. Spinnaker - Lean Enterprise Transformation 42
CULTURE
LIFECYCLEPORTFOLIO GOVERNANCE
PEOPLE
DELIVERY
Values
Behaviors
Operating Model
Communities
Talent
Rewards
Lean & Agile
Technology
Product
Dev Ops
Portfolio Lenses
Strategy
KPI’s
Product Lifecycle
Metrics
Innovation Accounting
Investment Thresholds
Structures
Membership

43. “
Spinnaker - Lean Enterprise Transformation
“Antifragility is beyond resilience or robustness.
The resilient resists shocks and stays the same;
the antifragile gets better.”
-Nassim Nicholas Taleb,
Antifragile: Things That Gain from Disorder
43

44. Spinnaker - Lean Enterprise Transformation 44

45. Spinnaker - Lean Enterprise Transformation 45

46. AMAZON GO
TWITCH PRIME
AWS
AMAZON STUDIOSALEXA VOICE SERVICE
PRIME CHINA
PRIME AIR DRONE
DELIVERY
AMAZON E-COMMERCE
PRIMEFULFILLMENT BY
AMAZON

47. Spinnaker - Lean Enterprise Transformation 47
INNOVATION PORTFOLIO
https://hbr.org/2012/05/managing-your-
innovation-portfolio

48. Spinnaker - Lean Enterprise Transformation 48
https://hbr.org/2012/05/managing-your-
innovation-portfolio

49. Spinnaker - Lean Enterprise Transformation 49
LIFECYCLE
IS THERE A PROBLEM?
DOES OUR
SOLUTION SOLVE
THE PROBLEM?
CAN WE EFFICIENTLY
OPTIMIZE?
HOW DO WE
MAKE A CLEAN
BREAK?
CAN WE SCALE
OUR SOLUTION?
SHOULD WE STILL
BE OFFERING OUR
SOLUTION?
IS OUR SOLUTION
SUSTAINABLE?

50. Spinnaker - Lean Enterprise Transformation 50
METERED FUNDING

51. TRANSFORMATION IN PRACTICE
51

52. Spinnaker - Lean Enterprise Transformation
WHY ARE SOME TRANSFORMATION PROGRAMS FAILING?
➤ Not aligned to organizational goals
➤ Narrowly focused on organizational design
➤ Multiple transformation efforts competing with each other
➤ Overwhelmed by technology focus
➤ Not aligned to outcomes
➤ Not tested against new business models
➤ Lack of alignment to Strategy
➤ Not Measurable
52

53. Spinnaker - Lean Enterprise Transformation
LEAN ENTERPRISE CHANGE IN ACTION
53
Global Lean Enterprise Transformation:
Portfolio approach, Governance,
Product Lifecycle implemented.
Enterprise wide training and coach
development program established.
Financial processes redesigned
2 innovation awards

54. Spinnaker - Lean Enterprise Transformation
EXTERNAL CHALLENGES
54

55. Spinnaker - Lean Enterprise Transformation 55
PEARSON CASE STUDY - CHALLENGES
➤ High personnel churn including C-Suite
➤ Multiple organizational changes inside 3 year span
➤ Unbalanced portfolio, lot’s of duplication
➤ Transition from print to digital
➤ Big bets
➤ Very little innovation or disruption = no growth
➤ Slow speed to market
➤ Complex decision making
➤ Customers involved too late

56. Spinnaker - Lean Enterprise Transformation 56
PEARSON CONTINUOUS TRANSFORMATION JOURNEY
Enterprise
Transformation initiated
PLC v1.0
launched
Incremental funding
agreed with Finance
Coach
Program
launched
First pilots
Global
adoption of PLC
and governance
Portfolio tool
Active portfolio
management
Roadshow
workshops
and training
First view of the global
portfolio
and Exec
endorsement
Governance
accelerators
launched in
multiple BUs

57. Spinnaker - Lean Enterprise Transformation
KEY TAKEAWAYS
57
Invest in
your team/
learning
sessions
Invest in
community
building
Communicate
Communicate
Communicate
Perfect is
the enemy
of progress Understand
enterprise
challenge
Get External
Validation
Learn to
speak
Politics
Incremental
Scale
Find external
support
Walk the walk
Get an
executive
sponsor
Data is king!
Find partners in
all key functions
Learn the
language
Celebrate
success
Don’t be afraid
to fail
Its a marathon
not a sprint!

58. Spinnaker - Lean Enterprise Transformation
LEAN ENTERPRISE TRANSFORMATION JOURNEY
Ad hoc
Scattered. Inconsistent.
Hero efforts. Small groups
of enthusiasts at varied
maturity levels
Thinking
Pilots w. Early Adopters to
validate Problem & Solution.
Building knowledge through
communities.
Doing
Scaling and Optimizing.
Culture changing. Incentives
shifting
Being
Business Impact is clear.
Values embraced at all
levels. Transition to BAU
while continuing to learn

59. Spinnaker - Lean Enterprise Transformation 59
CULTURE
LIFECYCLEPORTFOLIO
PEOPLE
DELIVERY
Coaching
Small
team of
heroes
Vocabulary
of agility
Iterate and
adapt
Agile
delivery
frameworkAgile
training
Customer
co-design Agile
portfolio
Weekly
prioritization
Pilots in
3months,
Bring
stakeholders
along Agile
community
ad hoc
Dev Ops
introduced
Behaviors
understood
throughout the
org
GOVERNANCE
Product
Council
established
Thresholds
& approval
limits set
Agile learning
being
developed as
part of
leadership
pillars
prepared job
description for
Product Owners
Reconfigured
workspace
Focus on
Customer
Journey
Prioritization
based on
lenses
Gated
Governance
New
Business
metrics

60. Spinnaker - Lean Enterprise Transformation 60
CULTURE
LIFECYCLEPORTFOLIO GOVERNANCE
PEOPLE
DELIVERY
Agile &
product
Training
embrace
fail-fast
learn and
adapt
Disrupt
hire people
different
than you
Begin aligning
Operating
model
Partners
in key
functions
Innovation
culture
awards
Build a
strong
community
Baseline
the portfolio
Incremental
funding
Early Pilots
Iterations
of Lifecycle
Pilots with
BUs
Engage
Exec team
Test & refine
new
governance
approach
Power of
data
Keep log of
ODQs
thinking
Community
inside and
outside
Using intranet
to share
learnings
Leadership
Education
Role
definitions+
accountability
Recruitment
screening
review
Rotate
resources
Lots of
customer
prototyping
Open
Design
thinking
workshops
Test
Portfolio
Tools
Test
reallocation
principles Product
Taxonomy Regulation /
Funding
tension

61. Spinnaker - Lean Enterprise Transformation 61
CULTURE
LIFECYCLEPORTFOLIO GOVERNANCE
PEOPLE
BEST PRACTICE
Product Coach
training
program
Design
incentives and
Eval - HR
Community
development
Scaling
Lifecycle
implementation
Transformation
Prog Mngmnt &
iteration
doing
LEAN ENTERPRISE TRANSFORMATION JOURNEY
Design Hiring
Policies L& D
integration at
scale
Tooling
Governance
Scaling
Innovation
accounting /
OptionalityChange Strat
Planning
process

62. MAPPING YOUR
JOURNEY
62

63. Spinnaker - Lean Enterprise Transformation 63

64. Spinnaker - Lean Enterprise Transformation 64
CULTURE
LIFECYCLEPORTFOLIO GOVERNANCE
PEOPLE
DELIVERY
Values
Behaviors
Operating Model
Communities
Talent
Rewards
Lean & Agile
Technology
Product
Dev Ops
Portfolio Lenses
Strategy
KPI’s
Product Lifecycle
Metrics
Innovation Accounting
Investment Thresholds
Structures
Membership

65. Spinnaker - Lean Enterprise Transformation
WHAT’S NEXT?
1. Capture 3-5 actions you can take that are
relevant to the transformation stage your
organization is at.
2. One action per post-it
3. Add each post-it to the relevant canvas (Ad-hoc,
Think or Doing/Being)
65

66. Spinnaker - Lean Enterprise Transformation
BUSINESS & TRANSFORMATION GOALS
•Revisit the business / mission goals you
believe you are, or should be, trying to
solve for.
•Revisit transformation program goals.
•Identify the key metrics to measure the
success of your transformation
initiative in achieving your strategic
vision

67. Spinnaker - Lean Enterprise Transformation
QUESTIONS
67

68. Spinnaker - Lean Enterprise Transformation 68
leanproductlifecycle.com
senseandrespondpress.com