How can you make sure your digital or agile transformation will be a success? Most fail. In this presentation we will tell you why and provide you with the concepts and actions to enable you to succeed where others fail. Digital and agile transformations are the hardest task in business. Lighthouse Thinking will help you to make sure you innovate appropriately, discover new value for customers and help you succeed. Covers innovation, target operating models, adaptive project management, innovation and ecosystems

1. Lighthouse Thinking™
Simple Steps To Extraordinary Outcomes
Fin Goulding & Haydn Shaughnessy
Flow Academy
June 2020

2. USA
ARG
Fin Goulding
CIO/CTO
IRL
UK
FR
NL
The
Americas
And
Europe

3. Haydn Shaughnessy
● No. 1 Thought
Leader, Digital
Transformation
● Award winning
documentarist
● Product design
pioneer
● Innovation
management
● Analytics expert

4. Now In Our Own Company
Fin Goulding Haydn Shaughnessy

5. What we do
Fix Transformations
Make Collaboration Real
Broadening The Scope of Agile Coaching
Leadership Mentoring

6. Before I Talk About Lighthouse Thinking,
I Want To Pose A Question:
Why Does Change Fail, Especially
Transformations?

7. 70% Of All Business Transformations Fail
80% Of All Platform Transformations Fail
And 85% Of All Digital Transformations Fail

8. And we believe that there are
3 key reasons why

9. #1 - The “Agile” IT-Business
Divide

10. VALUE
DELIVERY
Agile Methods
(Scrum etc)
DevOps
Continuous
Delivery
Cloud
Test &
Learn
Enterprise Flow®
The normal focus of agile

11. VALUE
DELIVERY
Agile Methods
(Scrum etc)
DevOps
Continuous
Delivery
Cloud
Test &
Learn
VALUE
MANAGEMENT
Portfolio
Management
(Adaptive PMO)
Product
Management
Agile Risk
Management
Budget On
Demand
Enterprise Flow®
AGILE
The missing pieces of agile

12. VALUE
DELIVERY
Agile Methods
(Scrum etc)
DevOps
Continuous
Delivery
Cloud
Test &
Learn
VALUE
MANAGEMENT
Portfolio
Management
(Adaptive PMO)
Product
Management
Agile Risk
Management
Budget On
Demand
VALUE
DISCOVERY
Market Analysis
Customer
Success Factors
Asset Discovery
Targeted
Innovation
Ecosystem
Planning
Enterprise Flow®
AGILE
The missing pieces of agile

13. VALUE
DELIVERY
Agile Methods
(Scrum etc)
DevOps
Continuous
Delivery
Cloud
Test &
Learn
VALUE
MANAGEMENT
Portfolio
Management
(Adaptive PMO)
Product
Management
Agile Risk
Management
Budget On
Demand
VALUE
DISCOVERY
Market Analysis
Customer
Success Factors
Asset Discovery
Targeted
Innovation
Ecosystem
Planning
Enterprise Flow®
BUSINESS AGILITY
Real business agility

14. #2 - Complexity

15. Dave Snowden - Cynefin framework
Now a meme?

16. We are in constant complex transformations

17. ● Complexity is something that we believe executives have:
○ Designed into the business because they have not understood
enough about operating model design
○ Created hierarchies to suit their needs and status but not the
needs of the work nor the end Customer
● The most obvious non-complex thing to do is to simplify problems or
work
● And use the collective intelligence of all Employees to solve them
But why not simplify?

18. Poor social interaction and ineffective
hierarchies
There is no proper resource allocation
planning
We don’t deliver change, we
just fix problems as best we
can
We don’t really communicate
with customers
We are set up to be mediocre
“Do as I say”
management style
Too many contractors
SLT does not prioritise
Lots of finger pointing
between departments
We don’t have a lot ofcustomer insight
Management
structure far too
complicated
No buzz
Leaders don’t
understand
agile
Too many production
platforms
Leaders don’t listen or trust us
Takes months to get a
test platform setup

19. #3 - Core Platforms

20. Business teams:
● True customer centricity
● Strong and engaging experiences
● Learning about customers as they interact with us
● Highly adaptive to their needs
IT teams:
● Process light
● Fully automated
● Built out of microservices
● Based in the cloud
The ideal platform scenario

21. The Core Platform Problem
Offline bricks and mortar experiences
with strong face to face relationships
Full digital experience for customers
and learning for the enterprise
Piecemeal legacy estate with a focus on
single view of the customer
Digital front end or app but sits on the
legacy estate
Decrease in
relationship
quality
Increase in
complexity
and cost
Good
balance of
cost,
revenue
and
heuristics
Seeking
Customer
Relationships
At Scale

22. Core platforms are the
single biggest factor in
transformational failures

23. Because transformations never design
or arrive at the right target operating
model for a company

24. What is an Operating Model?

25. An Operating Model is the
technical infrastructure,
management systems, hierarchy
and relationships that allows us
to deliver value

26. Inbound
Logistics
Operations
Outbound
Logistics
Service
Sales And
Marketing
Firm Infrastructure
Human Resources
Technical Development
Procurement
Primary Activities
Support Activities
From: Michael Porter
Porter operating model

27. Most transformations are about
moving away from the Porter Model
Often to the Spotify Model or SAFe etc.
What we really need is a “Generative
Model”

28. And Lighthouse Thinking is the set of
concepts and actions that allow you to
generate the right operating model for
your context

29. VALUE DISCOVERY
Enterprise Flow®
VALUE DISCOVERY: Value Discovery is underpinned by the CATE Value Cycle and takes an holistic view of customer
journey mapping. Remembering that you need to serve Customers but analyse markets

30. VALUE DISCOVERY
VALUE MANAGEMENT
Enterprise Flow®
VALUE MANAGEMENT: Executives are key to effective portfolio management and an adaptive PMO is best supported by
the adaptive financing of projects and persistent product teams. However, most PMO’s are about volume of work not
value

31. VALUE DISCOVERY
VALUE MANAGEMENT
VALUE DELIVERY
Enterprise Flow®
VALUE DELIVERY: There are no wrong agile methods (even scaled ones), they are just poorly implemented and lack Value
Discovery and Value Management techniques. Hence many IT teams become very adept at delivering low value work at
pace

32. LEARNING MECHANISMS
VALUE DISCOVERY
VALUE MANAGEMENT
VALUE DELIVERY
Enterprise Flow®
LEARNING MECHANISMS: Visual techniques, coupled with collective intelligence, fuels group learning. A continuous
learning organisation is more adaptive and thus test & learn cycles built into all development activity will aid new product
discovery

33. LEARNING MECHANISMS
VALUE DISCOVERY
VALUE MANAGEMENT
CORE CAPABILITIES
VALUE DELIVERY
Enterprise Flow®
CORE CAPABILITIES: Changes in operating models need to be supported by new skills and not necessarily new people. HR
teams are not ready for this and hence companies see some roles as a cost rather than a value (e.g. Agile Coaches)

34. LEARNING MECHANISMS
VALUE DISCOVERY
VALUE MANAGEMENT
CORE CAPABILITIES
VALUE DELIVERY
SECURITY
Enterprise Flow®
SECURITY: A focus on all aspects of security is key to the modern enterprise and is best served via agile techniques rather
than being sees as a drag factor. In fact, the organisations that implement effective Cyber Agility will be the most successful

35. LEARNING MECHANISMS
VALUE DISCOVERY
VALUE MANAGEMENT
CORE CAPABILITIES
VALUE DELIVERY
SECURITY
ECOSYSTEM
CUSTOMERS
PARTNERS
Enterprise Flow®
ECOSYSTEMS: Companies who lead with ecosystem thinking have become hugely successful and this segues perfectly
with organisations that wish to move from a transactional model to a relationship model in its dealings with customers

36. LEARNING MECHANISMS
VALUE DISCOVERY
CORE PLATFORMS
VALUE MANAGEMENT
CORE CAPABILITIES
VALUE DELIVERY
SECURITY
ECOSYSTEM
CUSTOMERS
PARTNERS
Enterprise Flow®
CORE PLATFORMS: The choice of technology systems that a company buys or builds has a profound impact on their
operating procedures. But all too often than not, companies allow their core platforms to become “legacy”

37. How do I start to transform an
Operating Model?

38. TRANSFORMATIONSPRINT
Enterprise Flow®
TRANSFORMATION SPRINTS: Take
approximately 3 weeks, involves
employee interviews at all levels
and information synthesis in order
to define the current state of an
organisation, its dysfunction,
cultural issues and then sets out a
small steps strategy to redesign
the operating model

39. TRANSFORMATIONSPRINT
Enterprise Flow®
LIGHTHOUSE PROJECT: Is the first
of the small steps strategy and is a
way of simplifying problems,
projects, products or
transformations that have become
too complex. It allows you to
scale-down the challenge in order
to skill-up the team and
regenerate your operating model
LIGHTHOUSEPROJECT

40. LIGHTHOUSEPROJECT
TRANSFORMATIONSPRINT
LEARNING MECHANISMS
VALUE DISCOVERY
CORE PLATFORMS
VALUE MANAGEMENT
CORE CAPABILITIES
VALUE DELIVERY
SECURITY
ECOSYSTEM
CUSTOMERS
PARTNERS
Lighthouse Thinking Generates The Flow Operating Model
A Generative Framework for Remodelling A Business (Lighthouse Thinking and the Flow Operating Model are both trademarked)

41. Where does the
lighthouse fit
into agile?

42. GOALS
Customer
Innovation Wall
Executive
Portfolio Wall
Projects
Product
Development
Future Of
Business
Team Scrum or
Kanban Wall
LIVE
Market
Segmentation
GOALS
Flow:
A Lighthouse
Transformation
Sprints
Lighthouse
Thinking
Go To Market
Planning
Dependency
Analysis &
Work Design

43. ● Scaling a big problem down into smaller units of work in order to
skill-up the team
● Building around an innovation in customer experience
● Creating or using a new platform as the starting point for the new
operating model
● Delivering through new ways to work that radically improve social
interaction and collective intelligence
● And educate leaders on how to remodel the firm by taking small
steps
And the key ingredients are:

44. Who will lead the change?

45. Agile coaches

46. Coaches who want to broaden
their experience from IT into the
Business

47. Helping the business to climb the curve

48. Lighthouse thinking can even help
you to fix or implement SAFe!

49. Lighthouse thinking takeaways
● An agile business needs more than just IT agile methods
● It has to become more skilled at creating customer value
● Complexity is a killer and simplification isn’t as difficult as one is lead
to believe
● Core platforms are the major failure point in transformations
● Taking a lighthouse approach and scaling-down to skill up makes
change and transformational change manageable

50. Thanks!
haydn@flow-academy.org fin@flow-academy.org
Feel free to contact us