![Page 1: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/1.jpg)
“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
![Page 2: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/2.jpg)
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
![Page 3: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/3.jpg)
Part 1
What is (the business case for) radical management?
![Page 4: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/4.jpg)
Three principles
• The principle of disruptive innovation
• The principle of maximizing shareholder value
• The principle of customer delight
A quick introduction to radical management
![Page 5: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/5.jpg)
Firms dying faster & faster
Source: Richard Foster Creative Destruction (2001)
![Page 6: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/6.jpg)
Quality
Time
1. The principle of disruptive innovation
Graph based on Clayton Christensen
![Page 7: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/7.jpg)
Quality
Time
X
Low quality
competitor
High profitability
Larger market
1. The principle of disruptive innovation
Graph based on Clayton Christensen
![Page 8: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/8.jpg)
Quality
Time
X
Low quality
competitor
High profitability
Larger market
1. The principle of disruptive innovation
• Oracle disrupted Cullinet
• Microsoft disrupted IBM
• DEC disrupted mainframes
• PCs disrupted DEC
• Laptops/tables disrupted PCs
• Industry after industry
• Why don’t they learn?
![Page 9: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/9.jpg)
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
![Page 10: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/10.jpg)
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
![Page 11: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/11.jpg)
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
![Page 12: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/12.jpg)
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
![Page 13: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/13.jpg)
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!
![Page 14: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/14.jpg)
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
![Page 15: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/15.jpg)
Customer delight makes much more money…
The shift is inexorable …
![Page 16: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/16.jpg)
“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!
![Page 17: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/17.jpg)
Let’s take some questions…
![Page 18: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/18.jpg)
Part 2 What about the public
sector?
![Page 19: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/19.jpg)
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
![Page 20: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/20.jpg)
How does radical management apply in public sector?
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
![Page 21: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/21.jpg)
How does radical management apply in public sector?
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
![Page 22: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/22.jpg)
How does radical management apply in public sector?
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/
![Page 23: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/23.jpg)
How does radical management apply in public sector?
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”
![Page 24: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/24.jpg)
Let’s take some questions…
![Page 25: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/25.jpg)
Part 3 What’s the role of storytelling
![Page 26: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/26.jpg)
What is the role of storytelling
1. One of the five principles
![Page 27: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/27.jpg)
What is the role of storytelling
1. Storytelling is one of the five principles
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
![Page 28: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/28.jpg)
Leadership storytelling
Make money for
shareholders
Transactions, outputs
Doing only one of five principles doesn’t sustain
Managers are controllers
of indivduals
Bureaucracy: rules, plans, reports
Efficiency, cost cutting
![Page 29: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/29.jpg)
What is the role of storytelling
1. Storytelling is one of the five principles
2. User stories are central to Agile/Scrum
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
![Page 30: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/30.jpg)
What is the role of storytelling
1. Storytelling is one of the five principles
2. User stories are central to Agile/Scrum
3. Springboard stories are central to winning support
![Page 31: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/31.jpg)
“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!
![Page 32: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/32.jpg)
Let’s take some questions…
![Page 33: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/33.jpg)
Part 4 What about
implementation?
![Page 34: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/34.jpg)
Even successful innovation initiatives don’t last
Bureaucracy: rules, plans, reports
Top down commands
Efficiency, cost cutting
Customer focus
Managers are controllers
of indivduals
Partial fixes don’t sustain
![Page 35: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/35.jpg)
Even successful innovation initiatives don’t last
Fire all the managers!
Bureaucracy: rules, plans, reports
Top down commands
Efficiency, cost cutting
Make money for
shareholders
Transactions, outputs Partial fixes don’t sustain
![Page 36: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/36.jpg)
Even successful innovation initiatives don’t last
Agile, Scrum, Lean
Top down commands
Efficiency, cost cutting
Make money for
shareholders
Transactions, outputs
Partial fixes don’t sustain
Managers are controllers
of indivduals
![Page 37: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/37.jpg)
Even successful innovation initiatives don’t last
Top down commands
Quality: improvement drive out fear
Make money for
shareholders
Transactions, outputs
Managers are controllers
of indivduals
Bureaucracy: rules, plans, reports
Partial fixes don’t sustain
![Page 38: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/38.jpg)
“A sense of urgency”
“Shared value”
20th Century thinking 21st Century thinking “Partial fixes” “New synthesis”
R U
B I
C O
N
![Page 39: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/39.jpg)
Blogs and Twitter and Stoos
Steve Denning Steve’s blog
http://blogs.forbes.com/stevedenning/ Twitter: @stevedenning
Peter Stevens Peter’s blog
http://www.scrum-breakfast.com/ Twitter: @peterstev
Stoos Network www.StoosNetwork.org,
Twitter: @stoos
![Page 40: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/40.jpg)
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)
![Page 41: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/41.jpg)
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….
![Page 42: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/42.jpg)
Let’s take some questions…
![Page 43: “Lunch” with Steve & Peter A conversation about radical management · 2012-02-29 · How does radical management apply in public sector? 4. Technology: “do more for less”](https://reader034.vdocuments.site/reader034/viewer/2022042306/5ed185be6ff3fd55b013a3d2/html5/thumbnails/43.jpg)
Blogs and Twitter and Stoos
Steve Denning Steve’s blog
http://blogs.forbes.com/stevedenning/ Twitter: @stevedenning
Peter Stevens Peter’s blog
http://www.scrum-breakfast.com/ Twitter: @peterstev
Stoos Network www.StoosNetwork.org,
Twitter: #stoos