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SCALING OPERATIONS
@norrisnode
1990
2000
2006
2007
2010
2012
1972
2014
What is operations
anyway?
In your words…
The activities that make up the day to day running of the
business
Making the company run efficiently and effectively and in
alignment with the strategy
Making sure everything happens and works for customers and
business
Creating an effective operation that can is ready for and can
contend with change in whatever form it comes
Usually includes
Finance
HR/Talent
Customer service
Account management
Office/Facilities
BI/Analytics
Legal
Sometimes includes
Sales
Product
Marketing
Engineering
Investor relations
Delivery / returns
Purchasing
Is Operations similar to
product management?
Analyse, define, launch
and retire (products)
How about scaling?
Scaling can mean to increase in size
It can also mean to do so efficiently
Maybe this might be what we do?
CAPABILITY
i.e.
COMPETENCE x CAPACITY
INDIVIDUALS DON'T BUILD GREAT COMPANIES, TEAMS DO.
“
Team…
People working together
Scaling…
More people working
together
4 people = 6 relationships
6 people = 15 relationships
Organisational complexity is
non-linear
8 people 28 relationships
50 people?
R=(N x (N-1))/2 R=(50 x 49)/2 1225
R for 10 to 150 people
Group formats change
predictably with scale
From Hunting Party to City
Hunting Party
2-7 people
From Hunting Party to City
Village huts
8-40 people
From Hunting Party to City
Large village
50-250 people
From Hunting Party to City
A town
250+ people
From Hunting Party to City
A City
10s of thousands of people+
Dunbar’s number
Dunbar's number is a suggested
cognitive limit to the number of people
with whom one can maintain stable
social relationships.
These are relationships in which an
individual knows who each person is and
how each person relates to every other
person
150
Hierarchies can be slow
Reducing complexity and
increasing speed requires
small group sizes with clear
mandates
Amazon’s 2 pizza team rule
Small teams = ownership = speed = less fragility
Transferwise form teams around KPIs
Spotify’s tribes, chapters and guilds
Max 100 Max 100
Speed is a result of
Autonomy is a result of
TRUST
and
PURPOSE
Quality is a result of
Caring is a result of
REMOVING ABSTRACTION
Minimise people needed to
complete a customer task
Form teams around the customer, not the function
What are you optimising for?
Quality
Speed
Cost
Optimise for quality first
How?
Process is not a dirty word
Processes are like ratchets that secure quality
Principles and outcomes if
stated clearly can reduce the
need for detailed processes
Processes are best written by the people doing the work
Process name Name
Owner Name
Last updated Date
Why Why is this policy or process needed?
Give context and background information
Words Define any relevant vocabulary
Policies or
principles
State any policies or principles relevant to
this process
Process Describe the process in numbered steps
Measures State measures / KPIs and reporting
frequency that will determine whether this
process has been successfully followed
Organisational debt is normal.
Be careful how much you
borrow.
Keeping up with growth, but only just
How we
used to do
it
How we
would do it
to optimise
for today’s
volumes
What we
will need to
do to
optimise for
tomorrow’s
volumes
It’s your path to chart
WHENEVER THERE IS AN EXECUTION OF PURPOSE,
THERE MUST BE AN AGENT
“
Adoniram Judson
Practice leads to theory
Theory is not superior to practice
Q & A

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