Lean Enterprise In Action @barryoreilly @execcamp #leanenterprise - PowerPoint PPT Presentation

1 BARRY O’REILLY Lean Enterprise In Action @barryoreilly @execcamp #leanenterprise

2 BARRY O’REILLY In a time of drastic change it is the learners who inherit the future. The learned usually find themselves equipped to live in a world that no longer exists Eric Ho ff er Eric Hoffer, Reflections on the Human Condition (1973)

3 BARRY O’REILLY CREATIVE DISTRUTION • 57% of Fortune 500 in 1995 
 did not make the cut in 2015 • 49% of organizations have initiatives to grow via 
 cost reduction • 29% of organizations have initiatives to grow via 
 new product and services Board Of Innovation, http://www.boardofinnovation.com/2015/12/21/actnow/

OUR NEW APP WILL SAVE US! No. Sorry. No one uses APPs anymore. http://www.wsj.com/articles/google-tests-feature-that-lets-media-companies-marketers-publish-directly-to-search-results-1461874322

MEANWHILE BACK AT BASE 5 BARRY O’REILLY How do you expect to enable high performance while individuals, functions and beliefs misaligned?

EMPLOYEE GAP 6 BARRY O’REILLY Gallup's State of the American Workplace, http://www.gallup.com/services/178514/state-american-workplace.aspx

WHAT COMPANIES THINK vs. WHAT CUSTOMERS SAY Cognitive bias impede our ability to identify knowledge gaps Bain and Company Closing The Delivery Gap http://bain.com/bainweb/pdfs/cms/hotTopics/closingdeliverygap.pdf

EXPLORE Developed a scientific, data-driven paradigm for business model innovation, product development and customer engagement

STOP WRITING. START LEARNING 9 BARRY O’REILLY Alexander Osterwalder and Yves Pigneur, Business Model Generation Collaborate as a cross-functional group to Create a framework to tell your story is a Quickly map out a business hypothesis improve knowledge sharing systematic and structured way Share it with stakeholders for feedback Move to evidence based decision-making Adapt plan based on validated learning Barry O’Reilly, ExecCamp http://www.execcamp.com

HYPOTHESIS-DRIVEN DEVELOPMENT 10 BARRY O’REILLY Framework for evaluation of benefit What data could help us? Prioritize and sense-make What do we want to learn? Seek feedback from stakeholders What is the first experiment? Barry O’Reilly, ExecCamp http://www.execcamp.com

DESIGN FAST FEEDBACK LOOPS 11 BARRY O’REILLY ����� LEARN BUILD Minimize the total time through the loop DATA ���� MEASURE Eric Ries, The Lean Startup

12 BARRY O’REILLY G0 AND SEE • Get Out Of The Building • User research done by the people developing the products • Challenge beliefs and underlining assumptions Barry O’Reilly, ExecCamp http://www.execcamp.com

STOP TALKING. START TESTING 13 BARRY O’REILLY Get Out Of The Building Capture and publish their feedback What will you do with the learning? Test with real customers across the team What is the next experiment? Barry O’Reilly, ExecCamp http://www.execcamp.com

14 BARRY O’REILLY CONTINUOUSLY SOURCE FEEDBACK • Make it easy to collect feedback from across the entire organization • Setup a working version of the latest iteration for people to use • Ask for anonymous feedback • Make people feel included Barry O’Reilly, ExecCamp http://www.execcamp.com

CAPTURE IDEAS IN SITU DESCRIPTION AND NOTES: write, draw or sketch how your idea works. TITLE: CATEGORY OPERATIONAL BENEFIT CONVERSION FUNNEL PRIMARY FOCUS cost reduction STREAMLINE OPERATIONS Commercial process improvement (viability, fi nancial) CUSTOMER ARCHETYPE Acquisition TYPE OF BENEFIT D Activation i g i t a l N a t i v e s IMPROVE EXISTING F a m i l y T r a v e l l e r Retention A ffl u e n t I n d u l g e PROPOSITION r pain relief Technology M a i n s t r e a m T r a v e l l e r (feasibility, innovation) Revenue V a l u e V a c a t i o n e r P u r p o s e f u l B u s i n e s s Referral H i g h F l y i n g G l o b e T r o t t e r F l y i n g P r a c t i t i o n e r A i r W a r r i o r CREATE NEW 
 2 V a l u e B u s i n e s s PROPOSITION gain creator Experience _ _ _ _ _ _ _ _ _ _ (desirable to customer) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 15 http://jonnyschneider.com/blog/idea-cards

MAKE IDEAS VISIBLE Barry O’Reilly, ExecCamp http://www.execcamp.com

BARRY O’REILLY Aspirational vision Customer hypotheses Design experiments Story map Data / feedback to validate Blow Up The Business Case https://barryoreilly.com/2015/04/14/blow-up-the-business-case/ 17

OUTCOMES NOT OUTPUT 18 BARRY O’REILLY • Cycle time from commit to production from 8 weeks to 11 minutes • Double conversation • Total transaction value per customer increased >150% "This is fantastic! How do we achieve this for all our teams?” - Scott Miskimens, CTO Travelocity Global

ACCELERATE Discover how to out-learn and out-execute your competition

20 BARRY O’REILLY “ We are doomed to failure without a daily destruction of our various preconceptions ” Taiichi Ohno

DELIBERATE PRACTICE 21 BARRY O’REILLY A teachable model of a scientific way of thinking and acting Mike Rother Toyota Kata, http://www-personal.umich.edu/~mrother/Materials_to_Download.html

SET THE DIRECTION 22 BARRY O’REILLY CROSS FUNCTIONAL TEAM Barry O’Reilly, ExecCamp http://www.execcamp.com

VALUE STREAM MAPPING 23 BARRY O’REILLY • A tool used to investigate end to end flow, cycle time, and opportunities to improve • Process steps and the people involved in each step are recorded, as well as the key metrics: • processing time • elapsed time • percentage accurate and complete Barry O’Reilly, ExecCamp http://www.execcamp.com

CURRENT CONDITION 24 BARRY O’REILLY

IMPROVEMENT KATA 25 BARRY O’REILLY Mike Rother Toyota Kata, http://www-personal.umich.edu/~mrother/Materials_to_Download.html

TARGET CONDITION 26 BARRY O’REILLY

SHARE AND SEEK FEEDBACK BARRY O’REILLY 27 Barry O’Reilly, ExecCamp http://www.execcamp.com

HYPOTHESIS-DRIVEN DEVELOPMENT How we believe we can 
 move towards the target conditions What would be our measurable signal for success Design and run experiments to move towards target condition How To Implement Hypothesis-driven Development barryoreilly.com/2013/10/21/how-to-implement-hypothesis-driven-development/

HYPOTHESIS DRIVEN IMPROVEMENT 29 BARRY O’REILLY WE BELIEVE THAT showcasing work as soon as it is complete WILL RESULT IN reducing our work queueing time WE WILL HAVE CONFIDENCE TO PROCEED WHEN 
 we improve our cycle time by 15% in our next iteration Barry O’Reilly, ExecCamp http://www.execcamp.com

30 BARRY O’REILLY RADAR Later • Map out hypotheses Next • People, Process, Tools and Technology • Now, Next and Later Now • Board vision of our direction for improvements • First experiments to start with Barry O’Reilly, ExecCamp http://www.execcamp.com

RUN EXPERIMENTS 31 BARRY O’REILLY LIMIT INVESTMENT SET BOUNDARIES Humble, Molesky, O’Reilly, Lean Enterprise: How High Performance Organizations Innovate At Scale

BARRY O’REILLY 32 SHARE LESSONS LEARNT Showcase experiments, discoveries and revised current condition Barry O’Reilly, ExecCamp http://www.execcamp.com

33 BARRY O’REILLY INSPECT AND ADAPT Later • Evidence-based approach Next • Capture and share new knowledge • Identify new obstacles Now • Use validated learning to inform next steps • Continuously re-align direction, plan and 
 execution Barry O’Reilly, ExecCamp http://www.execcamp.com

TRANSFORM Grow a highly aligned, high velocity organization by creating a culture of experimentation and learning

EVERY CXO BRIEFING … EVER WE NEED TO TRANSFORM Meaning everyone else needs to transform, not the executive themselves Barry O’Reilly, ExecCamp http://www.execcamp.com

CHANGE THE SYSTEM OF THINKING 36 BARRY O’REILLY Humble, Molesky and O’Reilly Lean Enterprise: How High Performance Organizations Innovation At Scale (O’Reilly, 2015)

CHANGE THE SYSTEM OF WORK 37 BARRY O’REILLY How To Change Culture: Lessons From NUMMI , http://sloanreview.mit.edu/article/how-to-change-a-culture-lessons-from-nummi/

38 BARRY O’REILLY INNOVATION IS NOT BORN IN A ROOM IT IS BORN WHERE THE WORK HAPPENS @barryoreilly

BARRY O’REILLY 39

CHANGE THE SYSTEM OF WORK 40 BARRY O’REILLY Humble, Molesky and O’Reilly Lean Enterprise: How High Performance Organizations Innovation At Scale (O’Reilly, 2015)

41 BARRY O’REILLY GREAT LEADERS DON’T HAVE BETTER ANSWERS… THEY ASK BETTER QUESTIONS @barryoreilly