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

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

Jul 30, 2023 230 likes •832 views

1 BARRY OREILLY Lean Enterprise In Action @barryoreilly @execcamp #leanenterprise 2 BARRY OREILLY 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

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BARRY O’REILLY

@barryoreilly @execcamp #leanenterprise

Lean Enterprise In Action

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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 Hoffer

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Eric Hoffer, Reflections on the Human Condition (1973)

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BARRY O’REILLY

CREATIVE DISTRUTION

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  • 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/

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SLIDE 4
  • No. Sorry. No one uses APPs anymore.

OUR NEW APP WILL SAVE US!

http://www.wsj.com/articles/google-tests-feature-that-lets-media-companies-marketers-publish-directly-to-search-results-1461874322
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BARRY O’REILLY

How do you expect to enable high performance while individuals, functions and beliefs misaligned?

MEANWHILE BACK AT BASE

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BARRY O’REILLY

EMPLOYEE GAP

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

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Cognitive bias impede our ability to identify knowledge gaps

WHAT COMPANIES THINK vs. WHAT CUSTOMERS SAY

Bain and Company Closing The Delivery Gap http://bain.com/bainweb/pdfs/cms/hotTopics/closingdeliverygap.pdf

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

EXPLORE

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BARRY O’REILLY

Create a framework to tell your story is a systematic and structured way Quickly map out a business hypothesis Share it with stakeholders for feedback Adapt plan based on validated learning Collaborate as a cross-functional group to improve knowledge sharing Move to evidence based decision-making

STOP WRITING. START LEARNING

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Alexander Osterwalder and Yves Pigneur, Business Model Generation

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

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BARRY O’REILLY

What data could help us? Seek feedback from stakeholders Prioritize and sense-make What is the first experiment? Framework for evaluation of benefit What do we want to learn?

HYPOTHESIS-DRIVEN DEVELOPMENT

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

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BARRY O’REILLY

DESIGN FAST FEEDBACK LOOPS

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Minimize the total time through the loop LEARN

  • DATA

MEASURE BUILD

Eric Ries, The Lean Startup

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BARRY O’REILLY

G0 AND SEE

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  • 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

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BARRY O’REILLY

Capture and publish their feedback across the team What will you do with the learning? What is the next experiment? Get Out Of The Building Test with real customers

STOP TALKING. START TESTING

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

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BARRY O’REILLY

CONTINUOUSLY SOURCE FEEDBACK

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  • 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

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

http://jonnyschneider.com/blog/idea-cards

CAPTURE IDEAS IN SITU

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MAKE IDEAS VISIBLE

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

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BARRY O’REILLY

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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/

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BARRY O’REILLY

  • Cycle time from commit to production from 8 weeks to 11 minutes
  • Double conversation
  • Total transaction value per customer increased >150%

OUTCOMES NOT OUTPUT

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"This is fantastic! How do we achieve this for all our teams?”

  • Scott Miskimens, CTO Travelocity Global
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Discover how to out-learn and out-execute your competition

ACCELERATE

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BARRY O’REILLY

“ We are doomed to failure without a daily destruction of our various preconceptions ”

Taiichi Ohno

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BARRY O’REILLY

DELIBERATE PRACTICE

21 Mike Rother Toyota Kata, http://www-personal.umich.edu/~mrother/Materials_to_Download.html

A teachable model of a scientific way of thinking and acting

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BARRY O’REILLY

SET THE DIRECTION

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Barry O’Reilly, ExecCamp http://www.execcamp.com CROSS FUNCTIONAL TEAM

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BARRY O’REILLY

VALUE STREAM MAPPING

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  • 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

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BARRY O’REILLY

CURRENT CONDITION

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BARRY O’REILLY

IMPROVEMENT KATA

25 Mike Rother Toyota Kata, http://www-personal.umich.edu/~mrother/Materials_to_Download.html

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BARRY O’REILLY

TARGET CONDITION

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BARRY O’REILLY 27

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

SHARE AND SEEK FEEDBACK

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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

HYPOTHESIS-DRIVEN DEVELOPMENT

How To Implement Hypothesis-driven Development barryoreilly.com/2013/10/21/how-to-implement-hypothesis-driven-development/

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BARRY O’REILLY

HYPOTHESIS DRIVEN IMPROVEMENT

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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

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BARRY O’REILLY

Later Next

RADAR

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  • Map out hypotheses
  • People, Process, Tools and Technology
  • Now, Next and Later
  • Board vision of our direction for

improvements

  • First experiments to start with

Now

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

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BARRY O’REILLY

RUN EXPERIMENTS

31 Humble, Molesky, O’Reilly, Lean Enterprise: How High Performance Organizations Innovate At Scale

LIMIT INVESTMENT SET BOUNDARIES

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BARRY O’REILLY 32

Showcase experiments, discoveries and revised current condition

SHARE LESSONS LEARNT

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

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BARRY O’REILLY

Later Next

INSPECT AND ADAPT

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  • Evidence-based approach
  • Capture and share new knowledge
  • Identify new obstacles
  • Use validated learning to inform next steps
  • Continuously re-align direction, plan and 


execution

Now

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

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Grow a highly aligned, high velocity organization by creating a culture

  • f experimentation and learning

TRANSFORM

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Meaning everyone else needs to transform, not the executive themselves

WE NEED TO TRANSFORM

EVERY CXO BRIEFING… EVER

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

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BARRY O’REILLY

CHANGE THE SYSTEM OF THINKING

36 Humble, Molesky and O’Reilly Lean Enterprise: How High Performance Organizations Innovation At Scale (O’Reilly, 2015)

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BARRY O’REILLY

CHANGE THE SYSTEM OF WORK

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How To Change Culture: Lessons From NUMMI, http://sloanreview.mit.edu/article/how-to-change-a-culture-lessons-from-nummi/

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BARRY O’REILLY

INNOVATION IS NOT BORN IN A ROOM IT IS BORN WHERE THE WORK HAPPENS

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@barryoreilly

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BARRY O’REILLY 39

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BARRY O’REILLY

CHANGE THE SYSTEM OF WORK

40 Humble, Molesky and O’Reilly Lean Enterprise: How High Performance Organizations Innovation At Scale (O’Reilly, 2015)

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BARRY O’REILLY

GREAT LEADERS DON’T HAVE BETTER ANSWERS… THEY ASK BETTER QUESTIONS

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@barryoreilly

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BARRY O’REILLY

  • What is your Target Condition?
  • What is your Actual Condition now?
  • What Obstacles do you think are preventing you from reaching 


the target condition? What one are your address now?

  • What is your Next Step? [Next Experiment] What do you expect?
  • How quickly can we go and see what we Have Learned from that step?

COACHING KATA: 5 QUESTIONS

42 Mike Rother The 5 Questions, http://www-personal.umich.edu/~mrother/KATA_Files/5Q_Card.pdf

  • and run
  • (do
  • model and
implement
  • (act
Create
  • (plan
  • (check
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BARRY O’REILLY

VISUALIZE END TO END FLOW

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

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BARRY O’REILLY

TRANSFORMATIONAL TARGET CONDITIONS

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WE BELIEVE THAT by deploying Improvement Kata THEN WE WILL increase adaptability and resilience WE WILL KNOW THIS IS TRUE WHEN CUSTOMER

  • 80% of our customers agree that we have improved our quality of service
  • 80% of our customers agree that we solved their issue first time
  • 80% of our customers score as supporters on Net Promoter Scores

Barry O’Reilly, ExecCamp, Transformational Target Conditions

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BARRY O’REILLY

TRANSFORMATIONAL TARGET CONDITIONS

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WE BELIEVE THAT by deploying Improvement Kata THEN WE WILL increase adaptability and resilience WE WILL KNOW THIS IS TRUE WHEN HEALTH

  • 80% of our teams agree collaboration has improved
  • 80% of our teams agree transparency has improved
  • 80% of our teams agree they have all the tools they need to perform their work to a high standard

Barry O’Reilly, ExecCamp, Transformational Target Conditions

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BARRY O’REILLY

TRANSFORMATIONAL TARGET CONDITIONS

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WE BELIEVE THAT by deploying Improvement Kata THEN WE WILL increase adaptability and resilience WE WILL KNOW THIS IS TRUE WHEN PERFORMANCE

  • 80% of our teams can demonstrate meaningful progress for feedback in a timely manner
  • 80% of our teams aim to achieve outcomes over output as a measure of progress
  • 80% of a teams customers agree they have increased their effectiveness in serving their needs

Barry O’Reilly, ExecCamp, Transformational Target Conditions

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BARRY O’REILLY

IMPROVE QUALITY OF INFORMATION

47 Humble, Molesky and O’Reilly Lean Enterprise: How High Performance Organizations Innovation At Scale (O’Reilly, 2015)

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BARRY O’REILLY 48

Go and See where the work happens Humble enquiry to 
 build trust and relationships Scale leadership, autonomy and reduce cognitive load 
 with the 5 Questions

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

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BARRY O’REILLY

TRUST CADENCE

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

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learn fast, succeed faster refine the vision through validated learning

VISION OUTCOMES BELIEFS

define test refine

SPEAK WITH REAL CUSTOMERS

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

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BARRY O’REILLY

FEED LEARNING INTO NEXT CYCLE

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

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BARRY O’REILLY 52

EVOLVE

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

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BARRY O’REILLY

A MUTATION MACHINE

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James C. Collins and Jerry I. Porras, Built to Last: Successful Habits of Visionary Companies, Page 155 (1994)

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Transform continuously. Not transformation change

CONCLUSION

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BARRY O’REILLY

DON’T DO TRANSFORMATIONAL CHANGE PROGAMS… DO CONTINUOUS TRANSFORMATION

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@barryoreilly

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

ExecCamp

Break The Model. Reinvent The Business

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BARRY O’REILLY

TESTIMONALS

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“Barry was instrumental in the conception and formation of an 'innovation engine' at lastminute.com. Not only were we able to identify and develop winning ideas at pace but the whole
  • rganization was reinvigorated by an approach which
delivered measurable results. Doubling revenue for the business” John Crosby Chief Product, Trading and Commercial Officer at lastminute.com and ex-CIO AutoTrader “Barry has a really synthetic view, which is key to reduce challenges to small iterations that help getting quick feedback and re-adapting to maximize value. He really understands lean and agile methodologies and sees how they can be used, not only in startups, but even in larger, more complex companies.” Samuel Lacarta Chavarrias IT Director, Vueling Airlines “Barry helped AIB, the largest retail bank in Ireland, achieve a step change in its digital journey. By combining his senior level communication skills with his deep insight on how to leverage technology at scale, he influenced key stakeholders across the bank to do things differently.” Allan Molloy 
 Head of Customers, Channels and Payments,
 Allied Irish Bank “Barry approach of driving very early customer testing well ahead
  • f when it would normally be done - in parallel with developing
the bigger vision - forces a focus on minimum viable product and early proof points. This proved to be very engaging in our business for stakeholders up to board level - instead of 'here is a big programme - trust us' the message was 'here is a game changing initiative and you can touch and feel the first steps
  • f it’. Barry brings a very practical style and methodology to bear
which empowered the team - so we really owned the outcome and developed both as a team and as individuals.” John Mornement General Manager, Major International Co.
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10 PRINCIPLES TO TRANSFORM

BARRY O’REILLY 58

Barry O’Reilly, 10 Principles To Transform www.barryoreilly.com

  • THINK BIG, Learn fast, Start now!
  • Executive mandate, sponsorship and support
  • Right people, right place
  • Act our way to a new culture
  • Build the right thing, then build it the right way
  • Small, fast, frequent delivery to build momentum
  • Create feedback loops with our customers
  • Adapt our approach based on validated learning
  • Demonstrable evidence for future investment decisions
  • Scale out learnings to cross the chasm
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THANK YOU

Barry O’Reilly


Entrepreneur and Business Advisor Author of Lean Enterprise: 
 How High Performance Organization Innovate At Scale barry@barryoreilly.com CEO and Founder, www.execcamp.com linkedin | twitter | blog

Email info@execcamp.com for slides and 3 sample chapters of Lean Enterprise