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