Principles and Practices of Transformation Pearson case study Learn Build Measure Sonja Kresojevic GOTO Accelerate 2016
Disruptive Environment
Most likely outcome
Pearson’s challenge • Unbalanced portfolio, lot’s of duplication Big • Transition from print to digital Annual Budgets • Big bets Plans • Very little innovation or disruption = no growth • Slow speed to market • Complex decision making • Customers involved too late Complex Systems
Five pillars of transformation • Portfolio approach • Lean Product Lifecycle • Investment governance • Best practice and behaviors • Organizational culture change
Adopt Portfolio Approach
Product Portfolio few years back..
Lean Product Lifecycle Framework Explore Validate Idea Grow Retire Sustain
More Ideas, More Bets, More Tests New Ideas All the ideas are quickly captured Not all the ideas survive but and tested all the learnings are recorded Walls are pervious Open Innovation allowing ideas into and out of the company One to three months turnaround
Search vs Execution
Lean Product Lifecycle Idea Explore Validate Grow Sustain Retire Jobs to Be Done Growth Engines Business Model Design Sales Forces Practice Customer Development Optimizations Minimum Viable Products Feature Building Focus Early Adopters, Early Majority Late Majority, Laggards Duration Days Weeks Months Years Metrics Lean Analytics, Pirate Metrics Revenues, Profit-Margins, ROI, IRR, NPV
Investment Governance Idea Explore Validate ✓ ✓ Product Product Council Council <£250k <£50k Can you Can you Have you identify a core ✗ ✗ demonstrate validated user problem Product/Market Fit customer and in or validated learner needs a target business model? in context? market?
Investment Governance Grow Product Product Sustain Retire Council Council Quarterly Quarterly Quarterly Quarterly Product Council Performance Performance Review Review
Reducing Investment Risk Idea Grow Explore Validate Funding & Evidence Risk Time
Product Councils i.e. Investment boards
Transparency at Scale Product Trends Historic (Actuals/Forecast) Record Product of Decisions Data Stage-Gate Portfolio criteria Reporting Portfolio Tool $
Best Practice Ecosystem
Product Development redefined Finance HR Legal Product Development Marketing Sales
Strong global community
Let’s not forget the culture.. “ We realized that this was not just about introducing new tools in the company; it was about cultural change. Behavioral change. Accepting that we’re going to work in a different way. It’s about abandoning some of our sacred cows and some of our historical ways of “ working. In other words, rewiring the DNA of the company Excerpt From: Janice Semper GE Culture Leader Eric Ries. “The Leader's Guide”
Incentives
Pearson continuous transformation journey.. Incremental funding PLC work initiated PLC global agreed with Finance adoption First view of the global portfolio PLC v1.0 Active portfolio and Exec launched management endorsement PLC Coach Program launched PLC Roadshow workshops Portfolio tool and training Product taxonomy First early v1.0 adopters
Thank you! Sonja.kresojevic@gmail.com @sonjak18
Recommend
More recommend
