lean enterprise transformation: the journey inside large organizations, sonja kresojevic, partner,...

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 and Unboxed Consulting. Most recently SVP in the Chief Product Office at Pearson, leading the implementation of the award winning Lean Enterprise Transformation program.

SONJA KRESOJEVIC

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EXTERNAL UNCERTAINTY

SPEED EXPECTATIONS

DISRUPTION INSTABILITY

INTERNAL FRICTION

NO DISCIPLINE SLOW TO MARKET SKILLS & DATA GAP

RISK AVERSION BIG BETS

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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:

TRANSFORMATION FRAMEWORK

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MECHANICS

MINDSET

BUSINESS RESULTS


min

dset

mechanics

goals

LEAN ENTERPRISE TRANSFORMATION JOURNEY

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LIFECYCLEPORTFOLIO GOVERNANCE

PEOP

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BEST PRACTICE


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COMPONENTS OF A 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

BEST PRACTICE

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WHAT IS THE PROBLEM?

SHOULD WE SOLVE IT?

HOW DO WE DELIVER A QUALITY SOLUTION?

DESIGN THINKING

LEAN STARTUP

AGILE DEV


Finance HR Legal Product Development Marketing Sales

CROSS-FUNCTIONAL TEAMS


STRONG GLOBAL COMMUNITY


ADAPTIVE PORTFOLIO MANAGEMENT

STRATEGY ?

PORTFOLIO ALLOCATION

PORTFOLIO RE-ALLOCATION

DATA


INNOVATION PORTFOLIO

https://hbr.org/2012/05/managing-your-innovation-portfolio

Spinnaker - Lean Enterprise Transformation 18https://hbr.org/2012/05/managing-your-innovation-portfolio

CURRENT INVESTMENT

FUTURE REVENUES


SEARCHING EXECUTING


AMAZON GO

TWITCH PRIME

AWS

AMAZON STUDIOSALEXA VOICE SERVICE

PRIME CHINA

PRIME AIR DRONE DELIVERY

AMAZON E-COMMERCE

PRIMEFULFILLMENT BY AMAZON


AMAZON GO

TWITCH PRIME

AWS

AMAZON STUDIOSALEXA VOICE

SERVICE

PRIME CHINA

PRIME AIR DRONE DELIVERY

AMAZON E-COMMERCE

Idea Explore Validate Grow Sustain Retire

PRIME

FULFILLMENT BY AMAZON


THE LEAN PRODUCT LIFECYCLE

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Can you identify a core user problem in a target market?

Are there real customers who get value from your concept? Is there a viable business model for this product?

Can you demonstrate Product/Market Fit or validated business model?

How fast are you growing the business at scale? Are you continuing to deliver outcomes to a broader user set?

Are you delivering revenue and outcomes while reducing costs?

What residual value can be gleaned from the business?



Practice

Jobs to Be Done Business Model Design Customer Development

Minimum Viable Products

Growth Engines Sales Forces Optimizations

Feature BuildingFocus Early Adopters, Early Majority Late Majority, Laggards

Duration Days Weeks Months Years

Metrics Lean Analytics, Pirate Metrics Revenues, Profit-Margins, ROI, IRR, NPV


THE LEAN PRODUCT LIFECYCLE


£0

<£50k

<£250k

P&L

✓✗✗ ✓ ✓ ✓

✓

✓

✓

✗

✗

✓ ✓

✓

✓ ✓✓

✗✗

✗

MONEYBALL FOR INNOVATION

Idea

Explore

Validate

Grow

Sustain


GOVERNANCE STRUCTURE

Product teams + Tech Build Products

Executive Strategy

Portfolio Govern portfolio of products

Investment Boards Govern products

DataKPIs

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MINDSET➤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

COMPONENTS OF A LEAN ENTERPRISE

“Spinnaker - Lean Enterprise Transformation

We realized that this was not just about introducing new tools in the company; it was about cultural change. Behavioral change. Accepting that we’re going to work in a different way. It’s about abandoning some of our sacred cows and some of our historical ways of working. In other words, rewiring the DNA of the company

-Janice Semper, GE Culture Leader

Excerpt From: Eric Ries “The Leader's Guide” 27


CONTINUOUS LEARNING

Lean Startup™ Eric Reis


CHANGE STARTS WITH LEADERSHIP

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“Spinnaker - Lean Enterprise Transformation

The role of leaders has changed profoundly… We used to ask what is your answer and what is your analysis. Now we ask what is the fastest way to get an experiment to test that idea.

-Scott Cook, Founder Intuit

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TRANSFORMATION JOURNEY

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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

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BEST PRACTICE

Coaching

Small team of heroes

Agile community

Agile delivery

framework

Product Council

Thresholds& approval

limits

Agile training

Customer co-design Agile

portfolio wall

Weekly portfolio sessions

Pilots in 3months,

Invest in talent

Get a sponsor

who gets it

Show by doing

Get external experts involved

Create excitement

Kill initiatives

Have clear priorities

Share learnings

Stakeholder training

ad hocIterate and

adapt

Dev Ops

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BEST PRACTICE

Training

Embrace fail-fast

Don't underestimate

change management

Learn and adapt

Develop a community of change

agents

Test operating

model

Partners in key

functions

Build a strong

community

Map the portfolio

Test incremental

funding

Early Pilots

Iterations of PLC Pilots with

BUs

Test new governance approach

Find true early

adopters

Understand the

enterprise challenge

Communicate, Communicate, Communicate

Power of external

validation

Use brown paper a lot! Don't go to

scale too soon!

Test portfolio

concepts in one BU

Share learnings

internally and externally

thinking

Keep log of ODQs

Taxonomy

Leadership development

Work with Exec to agree

transformation goals and KPIs

Hire people different than you

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BEST PRACTICE

Training at scale

Create a movement

Be aware of change

fatigue

Continue to learn

and adaptStay agile

Build capacity through coaching network

Scale the operating

model

Partners in key

functions

Partner with HR - goals, career progression,

incentives

Continue to grow

community

KPIs business impact

Replace business

case

PLC ecosystem

Systems/tools

Scale PCs

Don’t go too fast!

You need a mandate!

Recruit leaders in each BU!

Don't go to scale too

soon!

Share learnings

internally and externally

Continue to evolve all artifacts

Governance training

Doing

Annual planning

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BEST PRACTICE

Evidence of clear

business impact

Governance at scale,

supported by mature lifecycle

Product Academy

being

Adaptive portfolio

managementLean/Agile

teams

Incentives and

rewards

Continuous learning across

the organization

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EXERCISE 1

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WHERE ARE YOU?

1. Working in pairs, discuss and capture your organizations:

➤ transformation boosters (enhancers, stimuli, catalysts) or

➤ transformation blockers (inhibitors, barriers, friction)

2. One booster or blocker per post it

3. Add each post it to the B&B sheet


WORKSHOP OUTPUTS - BLOCKERS

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Internal Politics

Mindset- Fear of change - change lethargy

Unclear goals

Traditional bonus schemes

Silos and Matrix

Year to Year budgeting

Lack of experience

Existing systems and tools

Long product cycles

Volume of BAU

“We know what we are doing”

Organizational structure

Projects not products

Comfort zone

Too much compromise

Company fragmentation

Lack of purpose

Distributed teams

Part time volunteers - not dedicated time

Micro management

Top-down hierarchy

Protecting my own position

No clear product ownership

Middle management

Funding model and KPIs

Leadership buy-in for transformation


WORKSHOP OUTPUTS - BOOSTERS

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Clear strategy and vision

Evangelists and senior champions

Better tech/tools

Leadership support and buy-in

Subject matter experts

Early success

Team empowerment

Valuable customers

Community

Seed funding

Public innovation space

Permission to fail

Culture of change

Stories, examples

Market forces

Celebrating small wins publicly

External support - coaching and training

Being valued - self worth

Shared pain points

Agile culture

Visionary leadership/people

Capabilities

New opportunities

Internal coaches

New incentives

Product thinking


EXERCISE 2

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WHAT’S NEXT?

1. Capture 3-5 actions you can take that are relevant to the transformation stage your organization is at.

2. One action per post-it

3. Add each post-it to the relevant canvas (Ad-hoc, Think or Doing/Being)

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WORKSHOP OUTPUT - JOURNEY MAP

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DOWNLOAD JOURNEY MAP AT MYSPINNAKER.CO

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THANK YOU

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[email protected] @sonjak18 @myspinnakerco leanproductlifecycle.com

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