“lunch” with steve & peter a conversation about radical management · 2012-02-29 · how...

“Lunch” with Steve & Peter

A conversation about radical management

Session will start at noon

Steve Denning

Steve’s blog http://blogs.forbes.com/stevedenning/

Twitter: @stevedenning

Peter Stevens Peter’s blog

http://www.scrum-breakfast.com/ Twitter: @peterstev

http://blogs.forbes.com/stevedenning/

http://www.scrum-breakfast.com/



1. What is (the business case for) radical management? • Principle of disruptive innovation • Principle of maximizing shareholder value • Principle of customer delight

2. Application to the public sector

• From customers to stakeholders 3. A look at components of radical management

• Role of Agile • Role of storytelling

4. How on earth do you implement this?

Layout of the conversation

Part 1

What is (the business case for) radical management?

Three principles

• The principle of disruptive innovation

• The principle of maximizing shareholder value

• The principle of customer delight

A quick introduction to radical management

Firms dying faster & faster

Source: Richard Foster Creative Destruction (2001)

Quality

Time

1. The principle of disruptive innovation

Graph based on Clayton Christensen

Quality

Time

X

Low quality

competitor

High profitability

Larger market


Graph based on Clayton Christensen

Quality

Time

X

Low quality

competitor

High profitability

Larger market


• Oracle disrupted Cullinet

• Microsoft disrupted IBM

• DEC disrupted mainframes

• PCs disrupted DEC

• Laptops/tables disrupted PCs

• Industry after industry

• Why don’t they learn?

2. The principle of maximizing shareholder value

“The object of a firm is to

maximize shareholder value

i.e. make money”

• 1976: Mecklin & Jensen: “The theory of a firm”

• Most management textbooks

• Most business schools

• Pervasive in the Fortune 500

• The guiding principle of Wall Street

• Reinforced by the consulting firms

Make money for

shareholders

Goal 2. The principle of maximizing shareholder value

The elements are interlocking

Managers are controllers

of indivduals

Bureaucracy: rules, plans, reports

Top down commands

Efficiency, cost cutting

Role

Coordination Values

Communications

2009: Conclusive proof of the

failure of traditional management

Deloitte’s Center for the Edge: The Shift Index:

Rate of return on assets and invested capital: US firms: 1965-2011

Traditional management also fails

in employee engagement

Source: Deloitte’s Center for the Edge: The Shift Index

Only 1 in 5

workers is fully

engaged in his

or her work

1. Director of Information Technology

2. Director of Sales and Marketing

3. Product Manager

The Three Most Hated Jobs in the USA

http://www.forbes.com/sites/stevedenning/2011/08/11/think-your-job-is-bad-try-one-of-these/

Even managers hate their own jobs!

The elements are interlocking

Delighting customers

Goal

From controller to enabler

From bureaucracy to Agile, Scrum, Kanban

From command to conversations

From value to values

Role

Coordination Values

Communications

Transparency

Improvement

Sustainability

3. The principle of customer delight

Customer delight makes much more money…

The shift is inexorable …

“Implementing radical management is like learning a new language.”

It’s like: • “Up to now, we have spoken English. • From here on, we will speak in, say, [French].”

Why? I hate

it! *&^%*#@!

I’ll never learn it?

Why not stick to

what we know?

Bad idea!

Let’s take some questions…

Part 2 What about the public

sector?

How does radical management apply in public sector?

1. Public sector often has no customers Instead: multiple stakeholders

2. Often public sector agency has no clear mission Often no decision on who are primary stakeholders

3. Agency is entangled in politics One party wants the agency to flourish The other party wants to kill the agency Legislature tries to exercise control

4. Government afflicted by management fads Zero based budgeting, BPR, Six Sigma etc

6. Staff often demoralized

Constraints


1. Public sector costs have risen rapidly • K-12 education has more than doubled in the last

three decades. • Between 1982 and 2007, college education has more

than tripled three times without any obvious improvement in quality.

• Health care: the steep and steady increase in governmental health care costs far outstrips inflation and the economy’s ability to pay.

2. Little or no perceived benefit. 3. Staff often highly committed

Opportunities


4. Technology: “do more for less” • Criminal justice: electronic monitoring can replace

expensive jail terms with more than 60 percent savings.

• Defense: unmanned aerial vehicles (drones) cost a fraction of manned vehicles while capabilities are sometime superior.

• K-12 education: Today’s online learning courses are moving rapidly from test preparation and corre-spondence classes into mainstream education.

• Intelligence: large volumes of open sources and advance analytics can drastically reduce costs and improve quality.

Opportunities

http://www.deloitte.com/govdisrupted




5. Open source is promising

Opportunities

Agencies have broad authority to conduct prize competitions: To date, 159 competitions from 40 agencies Invent a driver-less vehicle that could accelerate to 130mph in three seconds, position itself under a fleeing car from a checkpoint and automatically release an airbag to lift the vehicle and slide it to a stop? Develop an iPhone app that informs consumers about restaurants, hotels and shops that have wage or health and safety violations? Develop a method for unshredding documents: piecing together five documents that were shredded into more than 10,000 pieces using a combination of computer algorithms and human assembly?

http://opinionator.blogs.nytimes.com/2012/02/22/from-the-white-house-incentives-to-innovate/















Suggestions

1. Be opportunistic

2. Be strategic

3. Create an oasis of excellence

4. Decide on your primary stakeholders

5. Consistently deliver more value to them sooner

6. Fend off the forces of evil

7. “Get a life”

Part 3 What’s the role of storytelling

What is the role of storytelling

1. One of the five principles


1. Storytelling is one of the five principles


Goal





Role

Coordination Values

Communications

Transparency

Improvement

Sustainability

Leadership storytelling

Make money for

shareholders

Transactions, outputs

Doing only one of five principles doesn’t sustain


of indivduals





2. User stories are central to Agile/Scrum


Goal





Role

Coordination Values

Communications

Transparency

Improvement

Sustainability



2. User stories are central to Agile/Scrum

3. Springboard stories are central to winning support

“Implementing radical management is like learning a new language.”

It’s like: • “Up to now, we have spoken English. • From here on, we will speak in, say, [French].”

Why? I hate

it! *&^%*#@!

I’ll never learn it?

Why not stick to

what we know?

Bad idea!

Part 4 What about

implementation?

Even successful innovation initiatives don’t last


Top down commands


Customer focus


of indivduals

Partial fixes don’t sustain


Fire all the managers!


Top down commands


Make money for

shareholders

Transactions, outputs Partial fixes don’t sustain


Agile, Scrum, Lean

Top down commands


Make money for

shareholders




of indivduals


Top down commands

Quality: improvement drive out fear

Make money for

shareholders



of indivduals



“A sense of urgency”

“Shared value”

20th Century thinking 21st Century thinking “Partial fixes” “New synthesis”

R U

B I

C O

N

Blogs and Twitter and Stoos

Steve Denning Steve’s blog

http://blogs.forbes.com/stevedenning/ Twitter: @stevedenning



Stoos Network www.StoosNetwork.org,

Twitter: @stoos





http://www.stoosnetwork.org/

Monthly leadership gatherings

http://www.meetup.com/Washington-Leadership-Breakfast/

March 21 evening: Alan Shalloway “Four reasons why only 32% of software projects succeed” 4400 Massachussets Avenue NW (American University)

How do you learn a new language? Reading a book won’t do it Try intensive immersion with “native speakers” and other learners

http://stevedenning.typepad.com/steve_denning/2012/02/an-innovative-workshop-on-radical-management.html

Three-day workshops

• March 19-21 • April 18-20, 2012 • May 21-23, 2012

Discuss pricing with us….













Blogs and Twitter and Stoos

Steve Denning Steve’s blog

http://blogs.forbes.com/stevedenning/ Twitter: @stevedenning



Stoos Network www.StoosNetwork.org,

Twitter: #stoos





http://www.stoosnetwork.org/

“lunch” with steve & peter a conversation about radical management · 2012-02-29 · how...

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