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LEAN ENTERPRISE TRANSFORMATION SPINNAKER SONJA KRESOJEVIC @SONJAK18 @MYSPINNAKERCO

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LEAN ENTERPRISE TRANSFORMATION

SPINNAKER

SONJA KRESOJEVIC @SONJAK18 @MYSPINNAKERCO

Spinnaker - Lean Enterprise Transformation 2

@SONJAK18 @MYSPINNAKERCO

Co-founder of Spinnaker, NY based consultancy focused on enterprise transformation. Senior executive with 20 years of global experience building products and driving agile and lean transformation inside large enterprises including BBC, Channel 5, News Corp among others. Most recently SVP in the Chief Product Office at Pearson, leading the implementation of the award winning Lean Enterprise Transformation program.

SONJA KRESOJEVIC

3

EXTERNAL UNCERTAINTY

SPEED EXPECTATIONS

DISRUPTION INSTABILITY

INTERNAL FRICTION

NO DISCIPLINE SLOW TO MARKET SKILLS & DATA GAP

RISK AVERSION BIG BETS

5

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:

Spinnaker - Lean Enterprise Transformation

WHY ARE TRADITIONAL 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 Measurable6

Spinnaker - Lean Enterprise Transformation

EXERCISE 1

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Spinnaker - Lean Enterprise Transformation 8

EXERCISE: WHAT ARE SOME OF YOUR CHALLENGES?

Working at your tables, discuss and capture some challenges your transformation programs are facing

One challenge per post it

Share with the room

TRANSFORMATION JOURNEY

9

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

Spinnaker - Lean Enterprise Transformation 11

LEAN ENTERPRISE EXAMPLE - PEARSON

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

Spinnaker - Lean Enterprise Transformation

LEAN ENTERPRISE PRINCIPLES

➤ Continuous learning ➤ Embracing uncertainty ➤ Small bets ➤ Experimentation ➤ Customer centricity ➤ Organizational Agility ➤ Outcomes over output ➤ Empowerment and transparency

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Spinnaker - Lean Enterprise Transformation

EXERCISE 2

13

Spinnaker - Lean Enterprise Transformation 14

EXERCISE: WHERE ARE YOU ON THIS JOURNEY?

Map where your company is on this journey

At your tables discuss and capture Lean Enterprise principles your companies have embraced or have struggled to embrace

Share with the room

TRANSFORMATION FRAMEWORK

15

Spinnaker - Lean Enterprise Transformation 16

MECHANICS

MINDSET

BUSINESS RESULTS

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?

Spinnaker - Lean Enterprise Transformation

GOALS & KPIS - EXAMPLE

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

Spinnaker - Lean Enterprise Transformation 19

min

dset

mechanics

goals

LEAN ENTERPRISE TRANSFORMATION JOURNEY

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➤Strong focus on listening to customers. ➤High tolerance for absorbing and learning from failed

initiatives. ➤Continuous learning across the organization. ➤Think big but start small. ➤“Command & Control” top down direction replaced with

Mission control responsiveness

LEAN ENTERPRISE MINDSET

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LEAN ENTERPRISE MECHANICS

➤Cross-functional Product teams operating using best practice ➤Disciplined adaptive portfolio approach to deliver on strategy and

react to change ➤Lifecycle framework supported by incremental funding. ➤Decentralized decision making. ➤Adaptive allocation of capital based on evidence rather than

commitment to plan.

Spinnaker - Lean Enterprise Transformation 22

CULT

URE

LIFECYCLEPORTFOLIO GOVERNANCE

PEOP

LE

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

Spinnaker - Lean Enterprise Transformation 23

CULT

URE

LIFECYCLEPORTFOLIO

PEOP

LE

DELIVERY

Coaching

Small team of heroes

Vocabulary of agility

Iterate and adapt

Agile delivery

frameworkAgile training

Customer co-design Agile

portfolioWeekly

prioritizationPilots 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

lensesGated

GovernanceNew

Business metrics

Spinnaker - Lean Enterprise Transformation 24

CULT

URE

LIFECYCLEPORTFOLIO GOVERNANCE

PEOP

LE

DELIVERY

Agile & product Training

embrace fail-fast

learn and adaptDisrupt

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 BUsEngage

Exec team

Test & refine new

governance approach

Power of data

Keep log of ODQs

thinkingCommunity 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

Spinnaker - Lean Enterprise Transformation 25

CULT

URE

LIFECYCLEPORTFOLIO GOVERNANCE

PEOP

LE

BEST PRACTICE

Product Coach training program

Design incentives and

Eval - HR

Community development

Scaling Lifecycle

implementation

Transformation Prog Mngmnt &

iteration

doingLEAN ENTERPRISE TRANSFORMATION JOURNEY

Design Hiring Policies L& D

integration at scale

ToolingGovernance

Scaling

Innovation accounting / OptionalityChange Strat

Planning process

Spinnaker - Lean Enterprise Transformation

EXERCISE 3

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Spinnaker - Lean Enterprise Transformation

WHAT’S NEXT?

Capture 3-5 actions you can take that are relevant to the transformation stage your organization is at and in response to challenges identified

One action per post-it

Add each post-it to the relevant canvas

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Spinnaker - Lean Enterprise Transformation

EXERCISE 4

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Spinnaker - Lean Enterprise Transformation

EXERCISE: CHANGE STARTS WITH LEADERSHIP

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Discuss what this means for you as leaders

What actions can you take next week?

Spinnaker - Lean Enterprise Transformation

ANY QUESTIONS ?

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Spinnaker - Lean Enterprise Transformation

LEAN ENTERPRISE TRANSFORMATION CANVAS https://www.myspinnaker.co/canvas/

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Spinnaker - Lean Enterprise Transformation 32

leanproductlifecycle.com

https://www.senseandrespondpress.com/the-case-for-change