opening keynote: lean enterprise | barry o’reilly, author, lean enterprise | garry o’brien,...
DESCRIPTION
Our world and future business opportunities are continuously emerging through advances in design and technology, and wider social and economic change. Organisations must continually revisit the question, “Which business are we in, and where should we be?.” This session discusses the learnings from Barry’s soon-to-be released book 'Lean Enterprise'. Barry joined ThoughtWorks in the UK after working on several startups and brought this experience to the enterprise where he explores the intersection of business model innovation, product development and organisational culture. This experience has led him to the development of his forthcoming book - suitably named ‘Lean Enterprise. Gary specialises in helping executives, teams and individuals to adapt and improve the flow of value using lean and agile principles. He brings a strong emphasis on facilitating organisational change, and the role of management and leadership in an agile world.TRANSCRIPT
Barry O’Reilly and Gary O’Brien
#TWlive #LeanEnterprise @barryoreilly @gobrienau
‘The main obstacles to improved business responsiveness are slow decision-making, conflicting departmental goals and priorities,
risk- averse cultures and silo-based information.”
Economist Intelligence Unit: “Organisational agility: How business can survive and thrive in turbulent times”
The Market Tension • Building the right thing quicker requires a new organisational design
• We need to Increase alignment and decrease fear
Failing to act will result in:
o Slow decision making, o Finishing less, o Difficulty in validating value to the customer, o Managing to numbers and spend/time measures
Four Themes to Discuss • IT as a strategic capability
• Focus on value first
• Make it safe to explore
• Align people to the customer
Enterprise Loop
Lean Enterprise Loop
Prioritise High Value Items, ‘It’s All Fruit’ • Value language, focus on what matters to customers • Be adaptable at pace, smaller decisions frequently reviewed • Joint understanding with transparency • Move forward with imperfect information
Weighted Shortest Job
First
Support Value Measures • ‘Stopability’ slicing • Highest value first • Know when is enough
What is a Unit of a Value?
Cost Utilisation Capex/OPEX Productivity
Agree on Value Measures • Benefits as a proxy for value • Benefits can be enough but only if you have knowledge • Better value management is the means to success
Deming - "Experience is often believed to
be the same as knowledge”
Agree on Value Measures • Benefits as a proxy for value • Benefits can be enough but only if you have knowledge • Better value management is the means to success
1. Earned Value
Agree on Value Measures • Benefits as a proxy for value • Benefits can be enough but only if you have knowledge • Better value management is the means to success
1. Earned Value
2. Relative
Handling Time
Leads Transfers
Agree on Value Measures • Benefits as a proxy for value • Benefits can be enough but only if you have knowledge • Better value management is the means to success
1. Earned Value 2. Relative
3. Actual benefits
Agree on Value Measures • Benefits as a proxy for value • Benefits can be enough but only if you have knowledge • Better value management is the means to success
1. Earned Value 2. Relative
3. Actual benefits
4. Customer value
Evidence-based decisions on outcomes
Create an experiment
to test it
Horizon 1 Execute, Sustain, Retire
Horizon 2 Demonstrate, Exploit, Scale
Horizon 3 Envision, Explore, Disrupt
Disruption Point
Seeds of Today planted for
tomorrow
Disruption Point
THEME 4 Align the people to the customer
Maximise the flow of value to the customer
Value Aligned VS
Hierarchically Aligned
What we have covered • Defining value • Prioritisation • Measurement • Experimentation • Organisation Design More to discover • Growing culture • Portfolio Management • How to grow products, people and improve process • Running programs at Scale • Business Model Innovation • Innovation accounting • Engineering practices • Operating at Scale • Financial Management • Governance, Risk and Compliance
Where Could I Start?
‘The main obstacles to improved business responsiveness are slow decision-making, conflicting departmental goals and priorities,
risk- averse cultures and silo-based information.”
Economist Intelligence Unit: “Organisational agility: How business can survive and thrive in turbulent times”
1. Follow the value – Get Knowledge
Customer feedback
Need met
1. Follow the value 2. Make work visible, in a way that focuses you on the customer
1. Follow the value – Get Knowledge 2. Make work visible, in a way that focuses you on the customer 3. Learn what to measure
1. Follow the value– Get Knowledge 2. Make work visible, in a way that focuses you on the customer 3. Learn what to measure 4. Systematic approach to improvement
Barry O’Reilly and Gary O’Brien
#TWlive #LeanEnterprise @barryoreilly @gobrienau