Our world and future business opportunities are continuously emerging through advances in design and technology, and wider social and economic change. Organisations must continually revisit the question, “Which business are we in, and where should we be?.” This session discusses the learnings from Barry’s soon-to-be released book 'Lean Enterprise'. Barry joined ThoughtWorks in the UK after working on several startups and brought this experience to the enterprise where he explores the intersection of business model innovation, product development and organisational culture. This experience has led him to the development of his forthcoming book - suitably named ‘Lean Enterprise. Gary specialises in helping executives, teams and individuals to adapt and improve the flow of value using lean and agile principles. He brings a strong emphasis on facilitating organisational change, and the role of management and leadership in an agile world.

1. Barry O’Reilly and Gary O’Brien
#TWlive
#LeanEnterprise
@barryoreilly
@gobrienau

2. ‘The main obstacles to improved business responsiveness
are slow decision-making, conflicting departmental goals and priorities,
risk- averse cultures and silo-based information.”
Economist Intelligence Unit: “Organisational agility: How business can survive and thrive in turbulent times”

3. The Market Tension
• Building the right thing quicker requires a new organisational design
• We need to Increase alignment and decrease fear
Failing to act will result in:
o Slow decision making,
o Finishing less,
o Difficulty in validating value to the customer,
o Managing to numbers and spend/time measures

4. Four Themes to Discuss
• IT as a strategic capability
• Focus on value first
• Make it safe to explore
• Align people to the customer

6. Enterprise Loop
Lean Enterprise Loop

9. Prioritise High Value Items, ‘It’s All Fruit’
• Value language, focus on what matters to customers
• Be adaptable at pace, smaller decisions frequently reviewed
• Joint understanding with transparency
• Move forward with imperfect information

10. Weighted
Shortest Job
First

12. Support Value Measures
• ‘Stopability’ slicing
• Highest value first
• Know when is enough
What is a Unit of a Value?

13. Cost Utilisation Capex/OPEX Productivity
Agree on Value Measures
• Benefits as a proxy for value
• Benefits can be enough but only if you have knowledge
• Better value management is the means to success
Deming - "Experience is often believed to
be the same as knowledge”

14. Agree on Value Measures
• Benefits as a proxy for value
• Benefits can be enough but only if you have knowledge
• Better value management is the means to success
1. Earned Value

15. Agree on Value Measures
• Benefits as a proxy for value
• Benefits can be enough but only if you have knowledge
• Better value management is the means to success
1. Earned Value
2. Relative

16. Handling
Time
LeadsTransfers
Agree on Value Measures
• Benefits as a proxy for value
• Benefits can be enough but only if you have knowledge
• Better value management is the means to success
1. Earned Value
2. Relative
3. Actual benefits

17. Agree on Value Measures
• Benefits as a proxy for value
• Benefits can be enough but only if you have knowledge
• Better value management is the means to success
1. Earned Value
2. Relative
3. Actual benefits
4. Customer value

18. Evidence-based
decisions on outcomes
Create an
experiment
to test it

20. Horizon 1
Execute, Sustain, Retire
Horizon 2
Demonstrate, Exploit, Scale
Horizon 3
Envision, Explore, Disrupt
Disruption
Point
Seeds of
Today planted for
tomorrow
Disruption
Point

22. THEME 4
Align the people to the customer
Maximise the flow of value to the customer
Value Aligned
VS
Hierarchically Aligned

23. What we have covered
• Defining value
• Prioritisation
• Measurement
• Experimentation
• Organisation Design
More to discover
• Growing culture
• Portfolio Management
• How to grow products, people and improve process
• Running programs at Scale
• Business Model Innovation
• Innovation accounting
• Engineering practices
• Operating at Scale
• Financial Management
• Governance, Risk and Compliance

24. Where Could I Start?
‘The main obstacles to improved business responsiveness
are slow decision-making, conflicting departmental goals and priorities,
risk- averse cultures and silo-based information.”
Economist Intelligence Unit: “Organisational agility: How business can survive and thrive in turbulent times”

25. 1. Follow the value – Get Knowledge
Customer feedback
Need
met

26. 1. Follow the value
2. Make work visible, in a way that focuses you on the customer

27. 1. Follow the value – Get Knowledge
2. Make work visible, in a way that focuses you on the customer
3. Learn what to measure

28. 1. Follow the value– Get Knowledge
2. Make work visible, in a way that focuses you on the customer
3. Learn what to measure
4. Systematic approach to improvement

29. Barry O’Reilly and Gary O’Brien
#TWlive
#LeanEnterprise
@barryoreilly
@gobrienau