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@BartoszJanowicz
From Lean Startup to an Innova8ve Organiza8on
ACE! Conference 2016
Who am I?
• PROINNOVATE – founder and Innova8on & Lean Startup Coach
• 18+ years as a business trainer & facilitator (crea88ty, teamwork, leadership, entrepreneurship)
• 15+ years as a HR training & development expert for corpora8ons
• 3+ years as a team coach for startups in Poland
• Cer8fied Professional Facilitator
• 2 8mes failed as an entrepreneur in 90’
• Innova8on in a corporate world meetup organizer (Warsaw)
Change employees mindset -‐>
intrapreneurs
Create corporate startups
@BartoszJanowicz
Agenda:
1. Process Lean Startup in a corporate world 2. Use Lean Startup in building innova8ve
organiza8on
3. Develop entrepreneurship mindset among employees and managers
Fail & learn fast & cheap*
* with minimal resources and and effort to maximum effec8veness
LEAN means…
@BartoszJanowicz
a group of people in a company working on a new and risky product
(they face high degree of uncertainty)
TECHNICAL RISK (PRODUCT RISK) CUSTOMER RISK
(MARKET RISK)
BUSINESS MODEL RISK
Is it possible to build this thing at all?
If we build this thing, will people use or buy it?
Can we create a way to make profits on this thing?
STARTUP in Enterprise means…
@BartoszJanowicz
@BartoszJanowicz
Lean Startup in an Enterprise is more than…
Agile Customer Development
Lean
Leadership
+ +
@BartoszJanowicz
An art combined with a science
Design Thinking Lean 6 sigma
Inspira8on Rigor
= =
Lean Startup
Source: Moves the needle, Brant Cooper, Aaron Eden
Entrepreneurs are everywhere #1 Entrepreneurship is management #2
Validated learning
#3 #4
Feedback loop “build – measure – learn”
#5
InnovaOon accounOng
Build
Learn
Measure
@BartoszJanowicz
@BartoszJanowicz
#1
Anyone, not selected
Customer Valida8on
Customer Crea8on
Company Building
STARTUP WAY CORPORATE WAY
Pivot?
Customer Discovery
TO EXECUTE Improving processes Plans & forecasts
KPI, ROI No space for failure
TO SEARCH Inven8ng
Experimen8ng Learning Failures
#2
@BartoszJanowicz
Management
Build
Learn
Measure
#3
It’s a customers’ feedback loop @BartoszJanowicz
We are s8ll learning how to measure…
#4
@BartoszJanowicz
If I have two children. At least one of them is a
girl
@BartoszJanowicz
What are the chances that the other is a boy?
@BartoszJanowicz
B B G B
B G G G
2 out of 3 = 66% that is a boy
@BartoszJanowicz
Validated learning like scien8sts do
DATA over opinion
and
OBSERVATION, REFLECTION & GUT FEELING
#5
@BartoszJanowicz
We are s8ll learning how to learn
@BartoszJanowicz
@BartoszJanowicz
Long term vision • FACTS – quan8ta8ve • OBSERVATIONS – qualita8ve • CONCLUSIONS • INSIGHTS • DECISION – pivot, persevere • PLAN next experiment
Build
Learn
Measure
Lessons learnt
Not only failures Successes as well!
@BartoszJanowicz
LEAN STARTUP
• A scienOfic approach in a new product development (NPD) – data driven
• Minimizing risk of a failure -‐ learning what works
• And disciplined way based on experiments that gather customer feedback – customer centricity
• Focused on long term vision that may change the business model
People need a process
@BartoszJanowicz
@BartoszJanowicz
B M
L
B M
L
B M
L
PROBLEM – SOLUTION FIT
B M
L
B M
L
PRODUCT – MARKET FIT
INSPIRING
Design Thinking
DEFINING QUICK EVALUATING
EXPERIMENTING Lean Startup
Business Models Canvas
@BartoszJanowicz Source: Flickr, Stephen Topp
Intrinsic mo8va8on
@BartoszJanowicz
LEAN STARTUP
supports driving
INTRAPRENEURSHIP
Don’t ask for permission, ask for
forgiveness
Blair Beverly Data Team Manager in AdSenses S&M Group
A par8sans way
An official way
BEFORE…
6-‐12 products a year
$ 100k – 1mln for each
@BartoszJanowicz
The challenge
What if we let our employees create new products & services
@BartoszJanowicz
@BartoszJanowicz
Result: 59 out of 60 kept the box
• Focus on crea8ng innovators, not innova8ons • GOAL: Increase „failure rate” • Treat like a product, not a program
• 2d workshop + Red Box • First experimental workshop for 60 employees
– goal: 10 out of 60 keep the box
@BartoszJanowicz
Red box removes barriers Survey: „What stops you from being innova8ve?”
@BartoszJanowicz
Be CEO of an idea – pre paid credit card with 1000 $
@BartoszJanowicz
Process – reference cards and other tools
@BartoszJanowicz
Process steps
1. Incep8on – mo8va8on
2. Ideate – how to create ideas and make use of inputs and insights
3. Improve – how to compress, combine, evaluate and refine ideas (checklists, scorecard, canvas)
4. Inves8gate – how to validate the problem and solu8on
5. Iterate – how to refine hypothesis
6. Inflitrate – how to prepare the pitch presen8ng experimental data
Pitch for
@BartoszJanowicz
Results for 1Q 2015 -‐ 1000 innovators, $1M spent
6. Inflitrate 6%
4&5. Inves8gate 22%
3. Improve 45%
2. Ideate 63%
1. Incep8on 92%
23 blues boxes
Do more with less: 45% more projects while in average reducing a 48% the medium budget
@BartoszJanowicz
GE Fastworks
@BartoszJanowicz
Readiness…
The lack of balance
Meritocracy Customer centricity
@BartoszJanowicz
Hierarchy & silos
Network & coopera8on
v.
@BartoszJanowicz
Organiza8on structures
Agile & Lean inside
a Scrum Team
Old waterfall in a rest of organiza8on
@BartoszJanowicz
@BartoszJanowicz
Power of HIPPO
@BartoszJanowicz
Incorpora8on issues
@BartoszJanowicz
PROCESS
CULTURE
PEOPLE
ACCOUNTABILITY
Key element accountability in behaviour on each organiza8on level
First, build accountability
Remember Behaviours set an
organiza8onal culture
Change organiza8onal structure
Tribe
Squad 1 Squad 2 Squad 3 Squad 4
Chapter A
Chapter B
Tribe Lead
Agile Coach
@BartoszJanowicz
BEHAVIOUR HUMAN POTENTIAL
+ = ORGANIZATIONAL
CONTEXT (ENVIRONMENT)
@BartoszJanowicz
Create an environment for innova8ve behaviours
What can I be the BEST IN THE WORLD AT?
What drives my ECONOMIC ENGINE?
What am I deeply PASIONATE about?
Source: Jim Collins, „From good to great”
The hedgehog concept
@BartoszJanowicz
@BartoszJanowicz
Innovators’ DNA
Associa8ng
Ques8oning
Observing Experimen8ng
Networking
Source:Iinnovators’ DNA, Dyer Jeff, Gregersen Hal, Christensen Clayton M.
Innovators’ DNA
@BartoszJanowicz
Employee’s values Innovator’s values
Research prof. Timothy Butler from Career Leader on 27000 people
Values -‐> ownership
12. Influence & power 13. Control
1. Security 2. Recogni8on …..
13. Security
1. Autonomy 2. Influence & power ….
Get out of innovators’ way
Managers
Legal & Compliance
Finance
“The boIle neck is always at the top of the boIle” Peter Drucker
HR, …
@BartoszJanowicz
• A 8me – but not mul8task
• An autonomy
• Work in mul8disciplinary teams
• Skills & process • Forum to share ideas
• Budget
Innovators needs in an enterprise
@BartoszJanowicz
Only a few of innovators at the beginning
@BartoszJanowicz
@BartoszJanowicz
Do you know what founders of those companies have in common?
They all worked for
Engagement >1 year in enterprise -‐ USA
Gallup Ins8tute 2013
@BartoszJanowicz
Engagement >1 year in enterprise -‐ USA
Disengaged (uninvolved, unhappy, avoiding, absent, affec8ng other’s
dissa8sfac8on)
100% engaged
Engaged +/-‐
Fully disengaged
@BartoszJanowicz
@BartoszJanowicz
The biggest problem
POOR LEADERSHIP
@BartoszJanowicz
Polish leadership model -‐ GRANGE
• Distance between manager and employee • Unlimited power and ego of a boss • Submission required • The lack of accountability – instruc8ons and
standards instead • Passive and reacOve • WaiOng for patronage (focus on safety and
belonging than freedom) • Double ethics • „Control the best for of trust” • Aligning to the average
@BartoszJanowicz
@BartoszJanowicz Source: The Leadership Versa8lity Index, Kaplan, Kaiser
Balanced development of managers
@BartoszJanowicz 66
* Based on over 17 mln employees feedback – Gallup Institute
1. What is expected of me at work?
2. Do I have the materials and equipment to do their job
right?
3. At work, do I have the opportunity to do what I do
best every day?
4. In the last 7 days, have I received recogniOon for
doing good work?
5. Does my supervisor, or someone at work, seem
to care about me?
6. Am I encouraged by someone to pursue
personal development ?
7. At work, do my opinions seem to count?
8. Does the mission/purpose of my company make me feel
my job is important?
9. Are my colleagues commi^ed to doing quality
work?
10. Do I have a friend/close person at work?
11. In the last 6 months, has someone at work talked to me about my progress?
12. This last year, have I had opportunity at work to learn
and grow?
@BartoszJanowicz
Focus on employees’ engagement
LEADER job is to recognize the greatness that already exists in people
and create the environment in which this greatness can emerge
Brad Smith, CEO Intuit @BartoszJanowicz
Helping leaders to appear
Celebra8ng failures
Color this picture
„Bring me market proof” managers’ mindset
@BartoszJanowicz
Self awareness & self esteem
@BartoszJanowicz
Involve us
@BartoszJanowicz
Working condi8ons
(8me & space)
Compensa8on
Financing innova8on
Autonomy
Addi8onal tools
Top management
Middle management & experts
Product people and HR
Sales & support units
INNOVATORS OTHER ROLES
Support changing an organiza8onal context
@BartoszJanowicz
Other roles
Product people and HR
Sales & support units
Engage sales and support at an early stage or not at all
Prepare to facilitator & mentor’s role
• No formal hierarchy, just project teams
• Leaders, no managers
• CEO elected • Focus on experimen8ng
• Voluntary engagement, not dedicated employees
• Autonomy of a project teams – over 1000 projects led
• Autonomy in compensa8ng
