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

Mail

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