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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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:
Spinnaker - Lean Enterprise Transformation 9
min
dset
mechanics
goals
LEAN ENTERPRISE TRANSFORMATION JOURNEY
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CULT
URE
LIFECYCLEPORTFOLIO GOVERNANCE
PEOP
LE
BEST PRACTICE
LEAN ENTERPRISE TRANSFORMATION JOURNEY
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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
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Finance HR Legal Product Development Marketing Sales
CROSS-FUNCTIONAL TEAMS
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ADAPTIVE PORTFOLIO MANAGEMENT
STRATEGY ?
PORTFOLIO ALLOCATION
PORTFOLIO RE-ALLOCATION
DATA
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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
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AMAZON GO
TWITCH PRIME
AWS
AMAZON STUDIOSALEXA VOICE SERVICE
PRIME CHINA
PRIME AIR DRONE DELIVERY
AMAZON E-COMMERCE
PRIMEFULFILLMENT BY AMAZON
Spinnaker - Lean Enterprise Transformation 21
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
Spinnaker - Lean Enterprise Transformation
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?
Idea Explore Validate Grow Sustain Retire
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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
Idea Explore Validate Grow Sustain Retire
THE LEAN PRODUCT LIFECYCLE
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£0
<£50k
<£250k
P&L
✓✗✗ ✓ ✓ ✓
✓
✓
✓
✗
✗
✓ ✓
✓
✓ ✓✓
✗✗
✗
MONEYBALL FOR INNOVATION
Idea
Explore
Validate
Grow
Sustain
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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
“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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Spinnaker - Lean Enterprise Transformation
LEAN ENTERPRISE TRANSFORMATION JOURNEY
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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CULT
URE
LIFECYCLEPORTFOLIO GOVERNANCE
PEOP
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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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Spinnaker - Lean Enterprise Transformation 35
CULT
URE
LIFECYCLEPORTFOLIO GOVERNANCE
PEOP
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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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CULT
URE
LIFECYCLEPORTFOLIO GOVERNANCE
PEOP
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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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Spinnaker - Lean Enterprise Transformation 37
CULT
URE
LIFECYCLEPORTFOLIO GOVERNANCE
PEOP
LE
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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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
Spinnaker - Lean Enterprise Transformation
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
Spinnaker - Lean Enterprise 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
Spinnaker - Lean Enterprise Transformation
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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Spinnaker - Lean Enterprise Transformation
DOWNLOAD JOURNEY MAP AT MYSPINNAKER.CO
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Spinnaker - Lean Enterprise Transformation
THANK YOU
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[email protected] @sonjak18 @myspinnakerco leanproductlifecycle.com