Lean Enterprise

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Our world and future business opportunities are continuously emerging through advances in design and technology, and wider social and economic change. Organizations must continually revisit the question, “What business are we in, and how can we organize to maximise our performance”. This keynote will discuss how to embrace a culture of continuous experimentation and learning, to adapt our organizations design, and transform our business to an adaptable, resilient Lean Enterprise.

Leadership & Management Business Technology

how to embrace a culture of
continuous experimentation and
learning, to transform our
business to an adaptable,
resilient Lean Enterprise.
@barryoreilly #LeanEnterprise
1

WHO’S IDEA WAS THIS?
3Purple Flying Hippo, http://earcl01.deviantart.com

NETFLIX CULTURE MANIFESTO
Provide a principles based framework of the culture to tell
people how they are expected to perform;
▫︎Values are what we value
▫︎High performance
▫︎Freedom and responsibilities
▫︎Context, not control
▫︎Highly aligned but loosely coupled
▫︎Pay to of the market
▫︎Promotions and development
8

10
ALIGN PEOPLE TO THE WORK
▫︎Provide Leadership
▫︎Foster good decision making by creating visibility
and transparency
▫︎Hire and retain the right people
▫︎Create a learning environment
▫︎Purpose, Mastery, Autonomy

11
Doubt is not a pleasant condition,
but certainty is absurd.
- Voltaire

12Online Experimentation at Microsoft, http://ai.stanford.edu/~ronnyk/ExPThinkWeek2009Public.pdf

LIMIT LOSS, RAMP UP SUCCESS
17Antifragile by Nassim Nicholas Taleb

BUSINESS MODEL STRATEGIES
21
Explore
▫︎Uncertainty
▫︎Complex
▫︎Emergent
▫︎Experimental
Exploit
▫︎Improved understanding
▫︎Cause and eﬀect
▫︎Accumulated knowledge
▫︎Forecast

INNOVATION PORTFOLIO
explore exploit sustain retire
22

INNOVATION PORTFOLIO
explore exploit sustain retire
kill
(at any point)
22

INNOVATION PORTFOLIO
explore exploit sustain retire
kill
(at any point)
disrupt
22

EXPLORE
▫︎Cross-functional multi-disciplined teams
▫︎Lots of small bets
▫︎Safe to fail experiments - only failure, is failure to learn
▫︎Enough funding to do something, but no so much as to
do nothing
▫︎Create a sense of urgency
▫︎Demonstrable evidence of value to proceed
24

EXPLOIT
▫︎Kill projects, create end to end value stream customer
facing teams
▫︎Continuous evaluation for funding model
▫︎Achieving break even point
▫︎Data-driven fact based decisions
▫︎Maintain a sense of urgency
▫︎Set a vision, trust the team to get there, clear blockers
and support as they proceed
▫︎Make sharing and organizational learning easy
26

SUSTAIN
▫︎Beware of feature factory fallacy
▫︎Keep laser focus on what is valuable - where we can win
▫︎Do no get lazy, success hides sub-optimal issues
▫︎Keep discipline with fact based decisions
▫︎What is being used, improved or removed?
▫︎How could we disrupt or get disrupted - do we care?
27

RETIRE
▫︎Has it serviced its purpose? Sunset
▫︎It is providing value? Kill it?
▫︎Are there better opportunities to invest in?
▫︎Remove product and system complexity
▫︎Simplify to support further innovation
▫︎Free up funds and capability
28

MAKE IT YOUR OWN
No Silver Bullets
Smoking Bullet, https://www.ﬂickr.com/photos/blgphoto/4928695143

IMPROVEMENT KATA
31
Mike Rother, Toyota Kata
Toyota Kata deﬁnes management as,
“the systematic pursuit of desired conditions by
utilizing human capabilities in a concerted way.”

@barryoreilly
http://barryoreilly.com
#leanenterprise | @jezhumble | @jemolesky
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32

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This paper "Beyond the Codes: Repositioning Towards a Sustainable Development," presented in 2013, underscores the crucial role of effective communication in driving sustainability within engineering practice. While traditional engineering approaches have relied heavily on codes of measurement and standardization to ensure safety and efficiency, the paper argues for a fundamental repositioning of engineering towards sustainability. This repositioning, depicted as going "beyond the codes," urges engineers to integrate sustainability principles into their work. Engineers must recognize that sustainability encompasses environmental stewardship, social equity, and economic prosperity, transcending mere compliance with technical standards. This broader mandate requires engineers to engage in dialogue with diverse stakeholders, including policymakers, industry leaders, and communities. Effective communication becomes paramount in fostering collaboration and garnering support for sustainable initiatives. Moreover, engineers must embrace a new mindset that positions sustainability as a core aspect of their profession. They must advocate for sustainability within their organizations, challenging existing norms, and championing innovative solutions. This shift in perspective requires engineers to become proficient communicators, capable of articulating the value proposition of sustainability to various audiences. Internal communication within engineering firms is equally vital, fostering a culture of collaboration and innovation. Engineers must share knowledge, expertise, and best practices to accelerate the adoption of sustainable technologies and practices. Visual communication tools, such as data visualization, can aid in conveying complex technical information effectively. Ultimately, the paper emphasizes that effective communication is essential for repositioning engineering towards sustainability. By embracing communication as a core competency and championing sustainability, engineers can navigate the complexities of the 21st century and pave the way for a more sustainable future.

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Lean Enterprise

1. how to embrace a culture of continuous experimentation and learning, to transform our business to an adaptable, resilient Lean Enterprise. @barryoreilly #LeanEnterprise 1

2. WHY IS IT SO HARD? 2

3. WHO’S IDEA WAS THIS? 3Purple Flying Hippo, http://earcl01.deviantart.com

4. 4http://www.whataboutwatermelon.com

5. 5http://www.whataboutwatermelon.com

6. 6http://www.whataboutwatermelon.com

7. 7

8. NETFLIX CULTURE MANIFESTO Provide a principles based framework of the culture to tell people how they are expected to perform; ▫︎Values are what we value ▫︎High performance ▫︎Freedom and responsibilities ▫︎Context, not control ▫︎Highly aligned but loosely coupled ▫︎Pay to of the market ▫︎Promotions and development 8

9. THOUGHTWORKS MANIFESTO 9

10. 10 ALIGN PEOPLE TO THE WORK ▫︎Provide Leadership ▫︎Foster good decision making by creating visibility and transparency ▫︎Hire and retain the right people ▫︎Create a learning environment ▫︎Purpose, Mastery, Autonomy

11. 11 Doubt is not a pleasant condition, but certainty is absurd. - Voltaire

12. 12Online Experimentation at Microsoft, http://ai.stanford.edu/~ronnyk/ExPThinkWeek2009Public.pdf

13. 13Microsoft

14. SAVING HIPPOS FACE 14

15. 15

16. SAFE TO FAIL EXPERIMENTS 16

17. LIMIT LOSS, RAMP UP SUCCESS 17Antifragile by Nassim Nicholas Taleb

18. INNOVATION HORIZONS 18

19. 19

20. 20

21. BUSINESS MODEL STRATEGIES 21 Explore ▫︎Uncertainty ▫︎Complex ▫︎Emergent ▫︎Experimental Exploit ▫︎Improved understanding ▫︎Cause and eﬀect ▫︎Accumulated knowledge ▫︎Forecast

22. INNOVATION PORTFOLIO explore exploit sustain retire 22

23. INNOVATION PORTFOLIO explore exploit sustain retire 22

24. INNOVATION PORTFOLIO explore exploit sustain retire 22

25. INNOVATION PORTFOLIO explore exploit sustain retire 22

26. INNOVATION PORTFOLIO explore exploit sustain retire 22

27. INNOVATION PORTFOLIO explore exploit sustain retire 22

28. INNOVATION PORTFOLIO explore exploit sustain retire kill (at any point) 22

29. INNOVATION PORTFOLIO explore exploit sustain retire kill (at any point) 22

30. INNOVATION PORTFOLIO explore exploit sustain retire kill (at any point) disrupt 22

31.

32. EXPLORE ▫︎Cross-functional multi-disciplined teams ▫︎Lots of small bets ▫︎Safe to fail experiments - only failure, is failure to learn ▫︎Enough funding to do something, but no so much as to do nothing ▫︎Create a sense of urgency ▫︎Demonstrable evidence of value to proceed 24

33. Etsy

34. EXPLOIT ▫︎Kill projects, create end to end value stream customer facing teams ▫︎Continuous evaluation for funding model ▫︎Achieving break even point ▫︎Data-driven fact based decisions ▫︎Maintain a sense of urgency ▫︎Set a vision, trust the team to get there, clear blockers and support as they proceed ▫︎Make sharing and organizational learning easy 26

35. SUSTAIN ▫︎Beware of feature factory fallacy ▫︎Keep laser focus on what is valuable - where we can win ▫︎Do no get lazy, success hides sub-optimal issues ▫︎Keep discipline with fact based decisions ▫︎What is being used, improved or removed? ▫︎How could we disrupt or get disrupted - do we care? 27

36. RETIRE ▫︎Has it serviced its purpose? Sunset ▫︎It is providing value? Kill it? ▫︎Are there better opportunities to invest in? ▫︎Remove product and system complexity ▫︎Simplify to support further innovation ▫︎Free up funds and capability 28

37. 29

38. MAKE IT YOUR OWN No Silver Bullets Smoking Bullet, https://www.ﬂickr.com/photos/blgphoto/4928695143

39. IMPROVEMENT KATA 31 Mike Rother, Toyota Kata Toyota Kata deﬁnes management as, “the systematic pursuit of desired conditions by utilizing human capabilities in a concerted way.”

Lean Enterprise

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