the “how” trap 17 november, 2010
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The “How” Trap17 November, 2010
What We’ll Cover
Who am I?Agile, Innovation, and Cloud – what are they?Changing the way you see things todayWhat is “the ‘how’ trap”? A new lensSome specific examplesA tactical deep diveThe Hedgehog Concept and you/your clientUnexpected views on businessesClosing thoughts
A Two Day Workshop Designed to Familiarize You With The Book Rethink
March, 2009Who am I?
Business Architect
•Business “scientist” with 12 patents pending•20 years of business and IT consulting•2008 Harvard Business Review article•2009 Rethink, FT Press•2010 Cloud white paper
A Two Day Workshop Designed to Familiarize You With The Book Rethink
March, 2009
Innovation,Cloud, Agile. . .
Change Spectrum
Cost/ Benefit
FreeChecking
AutomatedBank
Statements
ATM
Does Not Resemble What Was There Before
(Innovation)
Major Change(Project)
Minor “Tuning”(Change)
Definition – Innovation
Quality
Speed
Conve
nienc
e
Fashio
n
Selecti
on
Ambianc
ePric
e
Loca
tion
Service
Expert
ise
High
Medium
Low
Emph
asis
Starbucks Industry
Operating Model InnovationNew Hvað or New Hvernig?
Innovation Risk
Remember the quality movement? ‘90sEverything had to be high quality
The more the better
Anything to win the Baldrige award
But it was expensive
And it didn’t always add value
Innovation is really no different
Innovation Risk
Innovation – targeted and relevant to youFigure out where it will further differentiate
Figure out what will make customers happier
Empower and encourage innovation where it really matters
Build a map to highlight where it does, and does not matter
In most cases a little goes a long way
Change Spectrum
Cost/ Benefit
Coca Cola
Toyota
Amazon
AgileFlexible / Adaptable
Durable
Definition – Agile
The Stack And Cloud OptionsServices Taxonomy
(On-Premises
)
Storage
Servers
Networking
O/S
Middleware
Virtualization
Data
Applications
Runtime
You
man
age
Infrastructure(as a
Service)
Storage
Servers
Networking
O/S
Middleware
Virtualization
Data
Applications
Runtime
Other Manages
You
man
age
Platform(as a
Service)
Other Manages
You
man
age
Storage
Servers
Networking
O/S
Middleware
Virtualization
Applications
Runtime
Data
Software(as a Service)
Other Manages
Storage
Servers
Networking
O/S
Middleware
Virtualization
Applications
Runtime
Data
Cloud and High Tension Steel
Problem
Many of the tools and methods used to be successful in the past are ill-suited to the new
A new set of solution options, especially with cloud, require a new lens
A Two Day Workshop Designed to Familiarize You With The Book Rethink
March, 2009A New Lens
Now You See it . . .
Now You See it . . .
A Two Day Workshop Designed to Familiarize You With The Book Rethink
March, 2009The ‘How’ Trap
The ‘Hvernig’ Trap Viðskiptaverðleikar
Driving - “why are we going this way?”
Fosbury Flop
Faxing
Flight check-in
The ‘How’ TrapDriving - “why are we going this way?”
Fosbury Flop
Faxing is not a “what”, it’s a “how”
Flight check-in doesn’t need to have anything to do with airplanes
Same Hvað, New HvernigFlight check-in
Movies
Payments
Banking
Salt (magnesium carbonate)
Charity
A Two Day Workshop Designed to Familiarize You With The Book Rethink
March, 2009Real Results
Real Results – Innovation
ING DIRECT- Eliminated branches from the bank- Turned their back on some customers- No hand-written checks (no department for bad checks needed)
Eclipse Aviation- Turned their back on some customers- Eliminated the bathroom from the plane- Eliminated rivets from manufacturing- Created totally new fire extinguisher- Eliminated all customization options in plane
Real Results – Cost Cutting$40 million cut, 65 heads redeployed In three weeks- Big manufacturer expected about $3 million in cost reduction
$23 million cut In eight weeks- Bank expected $2 million in savings
$0 savings- Big transportation / logistics firm found 80% redundancy, expected 10%
Trapped and Untrapped Verbs
Fax Communicate
Mail Confirm
Phone Register
Automate None
Enter Complete
Truck Transport
Etc.
People are very inclined to talk about “how”, so asking experts for actual requirements is often bound to fail because of the “how” trap
Trapped Untrapped
This is Not ProcessProcess implements, or “animates” the “what” like a building vs. blueprintProcess “how” is subjective and fluid (good when used correctly)“What” is being done is durable and objective“What” is more disciplined and requires LESS expertise
A Two Day Workshop Designed to Familiarize You With The Book Rethink
March, 2009Why This is Effective
Proprietary and confidential. Do not copy.
Easy, and very high impactSeeing that faxing is not a requirement does three things- Transforms the conversation with the person doing the work, completely
objective- You don’t have to be an expert consultant to figure out “what” work is done- With an objective view of “what” the work is, now you can ask about value,
performance, connections, regulations, maturity, and so on, to see what causes resultsCreate Quote
Proprietary and confidential. Do not copy.
Easy, and very high impactSeeing that faxing is not a requirement does three things- Transforms the conversation with the person doing the work, completely
objective- You don’t have to be an expert consultant to figure out “what” work is done- With an objective view of “what” the work is, now you can ask about value,
performance, connections, regulations, maturity, and so on, to see what causes resultsCreate Quote
Receive Request
Create Certificate
Communi-cate
Quote
Not really a what, but
this is Document
Quote
Create Agreement
Send Agreement
DocumentRequest
Proprietary and confidential. Do not copy.
Easy, and very high impactSeeing that faxing is not a requirement does three things- Transforms the conversation with the person doing the work, completely
objective- You don’t have to be an expert consultant to figure out “what” work is done- With an objective view of “what” the work is, now you can ask about value,
performance, connections, regulations, maturity, and so on, to see what causes results. Create Quote
Receive Request
Create Certificate
Communi-cate
Quote
Create Agreement
Send Agreement
Create Quote
Receive Request
Create Certificate
Communi-cate
Quote
Create Agreement
Send Agreement
DocumentRequest
DocumentRequest
Not really a what, but
this is Document
Quote
Easy, and very high impactSeeing that faxing is not a requirement does three things- Transforms the conversation with the person doing the work, completely
objective- You don’t have to be an expert consultant to figure out “what” work is done- With an objective view of “what” the work is, now you can ask about value
(Viðskiptavirði), performance (Frammistaða), connections, regulations, maturity, and so on, to see what causes results
- Should I change Create Quote? Maybe- What will improve it? The first two?- Do I need innovation? Need more information- Can I outsource a part? (Send Agreement)- Also attach metrics to each- Ensure child metrics map to parent
Create Quote
Receive Request
DocumentRequest
Communi-cate
Quote
Create Agreement
Send Agreement
KEY
Outline = Performance Fill = Value
Highest
High
Medium
Low
Lowest
LowestLow
Medium
High
Highest
Create Certificate
It's easy, once you see it
A Two Day Workshop Designed to Familiarize You With The Book Rethink
March, 2009The Hedgehog
The Hedgehog Concept
Heat Maps Drive Prioritization
Heat Maps Drive Prioritization
Rethink
2010Unexpected
UnexpectedCan Netflix kill Match?Should AMZN buy NFLX?
UnexpectedCaptchas
UnexpectedWho could kill Gmail AND Hotmail right now?
?
UnexpectedWhat businesss is CCP in?Who has the same operating model as Coke?
UnexpectedWhy might Alice kill Wal-Mart?
UnexpectedStriking a very tough balance
Segments TodayHow Fast Is This Changing
A Two Day Workshop Designed to Familiarize You With The Book Rethink
March, 2009Closing Thoughts
Closing Thoughts
Rethinking is fun
Rethinking is not limited to business, at all
Anyone can rethink
If you have the experience most people have, rethinking is a lot of fun and really will change the way you look at most things. I would love to hear your stories.
If you want the heat mapping tool or guide, send me an e-mail
A Two Day Workshop Designed to Familiarize You With The Book Rethink
March, 2009
Contact
http://www.rethinkbook.comrethink@microsoft.com
THANK YOU
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