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how to embrace a culture of
continuous experimentation and
learning, to transform our
business to an adaptable,
resilient Lean Enterprise.
@barryoreilly #LeanEnterprise
1
WHY IS IT SO HARD?
2
WHO’S IDEA WAS THIS?
3Purple Flying Hippo, http://earcl01.deviantart.com
4http://www.whataboutwatermelon.com
5http://www.whataboutwatermelon.com
6http://www.whataboutwatermelon.com
7
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
THOUGHTWORKS MANIFESTO
9
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
13Microsoft
SAVING HIPPOS FACE
14
15
SAFE TO FAIL EXPERIMENTS
16
LIMIT LOSS, RAMP UP SUCCESS
17Antifragile by Nassim Nicholas Taleb
INNOVATION HORIZONS
18
19
20
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
22
INNOVATION PORTFOLIO
explore exploit sustain retire
22
INNOVATION PORTFOLIO
explore exploit sustain retire
22
INNOVATION PORTFOLIO
explore exploit sustain retire
22
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)
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
Etsy
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
29
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
ThoughtWorks is hiring!
http://join.thoughtworks.com
Australia | Brazil | Canada | China
Germany | India | Singapore
South Africa | Uganda | UK | USA
© 2014 ThoughtWorks, Inc.
Pre-order our new book!
http://bit.ly/leanentp
32

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