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Our world and future business opportunities are continuously emerging through advances in design and technology, and wider social and economic change. Organizations must continually revisit the question, ``What businesses are we in, and how can we organize to maximise our long-term potential?'' The most important work for leaders is to pursue a high performance culture of continuous experimentation and learning. This keynote will discuss how to embrace that culture to adapt our organization design, and transform our business to a resilient, constantly adapting Lean Enterprise
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TECHNOLOGY IS NOT ENOUGH
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@barryoreilly #LeanEnterprise @jemolesky
CREATIVE DESTRUCTION
2http://www.technologyreview.com/view/519226/technology-is-wiping-out-companies-faster-than-ever/
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PREDICTIVE VS COMPLEX
https://www.youtube.com/watch?v=U39RMUzCjiU
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MCKINSEY GLOBAL DIGITAL SURVEY 2014
Published June 2014http://www.mckinsey.com/insights/business_technology/The_digital_tippingbusiness_point_McKinsey_Global_Survey_results
ORGANIZATION STRUCTUREDECISION MAKINGTALENT
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WHO’S IDEA WAS THIS?
6Purple Flying Hippo, http://earcl01.deviantart.com
Highest Paid Persons Opinion
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NETWORKED COMMUNITY
Peter Hinssen, The Network Always Wins
8http://www.whataboutwatermelon.com
9http://www.whataboutwatermelon.com
10http://www.whataboutwatermelon.com
HOW DO WE LEAD AND IMPROVE DECISIONS IN NETWORKS?
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Principle of Mission
HOW DO WE CHANGE CULTURE?
12Edgar Schein, Organization Culture and Leadership
LEARNING ANXIETY
SURVIVAL ANXIETY
HOW DO WE MOTIVATE AND ENGAGE PEOPLE?
13Dan Pink, Drive
AUTONOMY MASTERY
PURPOSE
INFLEXIBLE BUSINESS PROCESSES
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STRATEGY
EXECUTION
ALIGNMENT
MICROMANAGEMENT
CONTROL
ACCOUNTABLE FOR TARGET &
BUDGET
Compliance rulesRisk models
Quality controlsInspections
Balanced scorecards
Target and
incentivesBudget
contracts
The Control Bureaucracy10-20% of costs
Adapted from:http://www.bbrt.org/beyond-budgeting/bb-problem.html
TARGETS AND INCENTIVES CAN HAVE UNINTENDED OUTCOMES
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Executive Team
Support Services Teams
Strategy, Finance, HRMarketing, IT, Supply chain,
Product development
Cross-functional Value center Customers
Customers
Customers
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CLEAR ACCOUNTABILITY FOR SELF MANAGED TEAMS
Adapted from:http://www.bbrt.org/beyond-budgeting/bb-vision.html
Principle of Mission
Cross-functional Value center
Cross-functional Value center
UK GOVERNMENT CHALLENGES
British National Health Service, had a program to computerized patient records.
Projected to cost £2.3bn in 2002 and Despite the cancellation in 2011, it is expected to end up costing over £10bn.
At the end of 2013, only 55% of the population had their medical records in the system.
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RACE ONLINE REPORT 2012
For me, the acid test for Directgov is whether it can empower, and make life simpler for, citizens and at the same time allow government to turn other things off.
- Martha Lane Fox, UK Digital Champion
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GOV.UK ALPHA DESIGN PRINCIPLES
1.Don’t slow down delivery
2.Decision when they are need at the right level
3.Do it with the right people
4.Go see for yourself
5.Only do it if it adds value
6.Trust and verify
23https://digitaltransformation.blog.gov.uk/2014/06/24/governance-principles/
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Big IT and big failure have stalked government for too long; that is why
this government is radically rethinking the way it does business.
- Francis Maude, Cabinet Office
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OTHERS NOW STARTING TO FOLLOW SUIT
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INABILITY TO ADOPT AN EXPERIMENTATION MINDSET
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Doubt is not a pleasant condition,
but certainty is absurd.
- Voltaire
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32Online Experimentation at Microsoft, http://ai.stanford.edu/~ronnyk/ExPThinkWeek2009Public.pdf
33Microsoft
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REDUCE UNCERTAINTY WITH EXPERIMENTS
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14 people
£261,000
12 weeks
PRINCIPLE OF OPTIONALITY
38Nassim Nicholas Taleb, Antifragile
WHAT CAN WE DO TOMORROW?
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Leadership, Strategy and Tactics
BE CLEAR AND SHARE THE PRINCIPLE OF MISSION
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Executive Team
Principle of Mission
CONSIDER END TO END FLOW OF VALUE
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GET COMFORTABLE WITH UNCERTAINTY
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Define boundaries
scopeinvestment
risk level
CONCLUSION
1) BE CLEAR AND SHARE THE PRINCIPLE OF MISSION
2) CONSIDER END TO END FLOW OF VALUE
3) GET COMFORTABLE WITH UNCERTAINTY
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