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
