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TECHNOLOGY 
IS NOT 
ENOUGH 
@barryoreilly #LeanEnterprise @jemolesky 
1
CREATIVE DESTRUCTION 
2 http://www.technologyreview.com/view/519226/technology-is-wiping-out-companies-faster-than-ever/
3 
PREDICTIVE VS COMPLEX 
https://www.youtube.com/watch?v=U39RMUzCjiU
4 
MCKINSEY GLOBAL DIGITAL SURVEY 2014 
Published June 2014 
http://www.mckinsey.com/insights/business_technology/The_digital_tippingbusiness_point_McKinsey_Global_Survey_results
ORGANIZATION 
STRUCTURE 
DECISION MAKING 
TALENT 
5
WHO’S IDEA WAS THIS? 
Highest Paid Persons Opinion 
Purple Flying Hippo, http://earcl01.deviantart.co6m
7 
NETWORKED COMMUNITY 
Peter Hinssen, The Network Always Wins
http://www.whataboutwatermelon.com 8
http://www.whataboutwatermelon.com 9
http://www.whataboutwatermelon.com10
HOW DO WE LEAD AND IMPROVE DECISIONS IN NETWORKS? 
Principle of Mission 
11
HOW DO WE CHANGE CULTURE? 
12 
Edgar Schein, Organization Culture and Leadership 
LEARNING 
ANXIETY 
SURVIVAL 
ANXIETY
HOW DO WE MOTIVATE AND ENGAGE PEOPLE? 
13 
Dan Pink, Drive 
AUTONOMY MASTERY 
PURPOSE
INFLEXIBLE 
BUSINESS 
PROCESSES 
14
STRATEGY 
ALIGNMENT 
EXECUTION 
MICRO 
MANAGEMENT 
CONTROL 
ACCOUNTABLE 
FOR TARGET & 
BUDGET 
The Control Bureaucracy 
10-20% of costs 
Compliance rules 
Risk models 
Quality controls 
Inspections 
Balanced 
scorecards 
Target 
and 
incentives 
Budget 
contracts 
Adapted from:http://www.bbrt.org/beyond-budgeting/bb-problem.html
TARGETS AND INCENTIVES CAN 
HAVE UNINTENDED OUTCOMES 
16
Executive Team 
Support Services Teams 
Strategy, Finance, HR 
Marketing, IT, Supply chain, 
Product development 
Cross-functional 
Value center Customers 
Customers 
Customers 
17 
CLEAR ACCOUNTABILITY FOR SELF MANAGED TEAMS 
Adapted from:http://www.bbrt.org/beyond-budgeting/bb-vision.html 
Principle of Mission 
Cross-functional 
Value center 
Cross-functional 
Value center
UK GOVERNMENT CHALLENGES 
British National Health Service, had a 
program to computerized patient records. 
Projected to cost £2.3bn in 2002 and 
Despite the cancellation in 2011, it is 
expected to end up costing over £10bn. 
At the end of 2013, only 55% of the 
population had their medical records in 
the system. 
18
RACE ONLINE REPORT 2012 
For me, the acid test for 
Directgov is whether it 
can empower, and make 
life simpler for, citizens 
and at the same time 
allow government to 
turn other things off. 
- Martha Lane Fox, 
UK Digital Champion 
19
20
21
22
GOV.UK ALPHA DESIGN PRINCIPLES 
1.Don’t slow down delivery 
2.Decision when they are need at the right level 
3.Do it with the right people 
4.Go see for yourself 
5.Only do it if it adds value 
6.Trust and verify 
23 
https://digitaltransformation.blog.gov.uk/2014/06/24/governance-principles/
24
25
26
Big IT and big failure have stalked 
government for too long; that is why 
this government is radically 
rethinking the way it does business. 
- Francis Maude, Cabinet Office 
27
OTHERS NOW STARTING TO FOLLOW SUIT 
28
INABILITY 
TO ADOPT AN 
EXPERIMENTATION 
MINDSET 
29
30 
Doubt is not a pleasant condition, 
but certainty is absurd. 
- Voltaire
31
Online Experimentation at Microsoft, http://ai.stanford.edu/~ronnyk/ExPThinkWeek2009Public.pdf 32
Microsoft 33
34
35
REDUCE UNCERTAINTY WITH EXPERIMENTS 
36
37 
14 people 
£261,000 
12 weeks
PRINCIPLE OF OPTIONALITY 
Nassim Nicholas Taleb, Antifragile 38
WHAT CAN WE DO 
TOMORROW? 
39 
Leadership, Strategy and Tactics
BE CLEAR AND SHARE THE PRINCIPLE OF MISSION 
40 
Principle of Mission 
Executive Team
CONSIDER END TO END FLOW OF VALUE 
41
GET COMFORTABLE WITH UNCERTAINTY 
42 
Define boundaries 
investment scope 
risk level
CONCLUSION 
1) BE CLEAR AND SHARE THE 
PRINCIPLE OF MISSION 
2) CONSIDER END TO END 
FLOW OF VALUE 
3)GET COMFORTABLE WITH 
UNCERTAINTY 
43
@barryoreilly 
www.barryoreilly.com 
#leanenterprise | @jezhumble | @jemolesky 
ThoughtWorks is hiring! 
http://join.thoughtworks.com 
Australia | Brazil | Canada | China 
Ecuador | Germany | Italy 
India | Singapore | South Africa 
Turkey | Uganda | UK | USA 
© 2014 ThoughtWorks, Inc. 
Order our new book! 
http://bit.ly/leanentp 
44 
THANK YOU

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Being a Lean Enterprise : Technology Is Not Enough

  • 1. TECHNOLOGY IS NOT ENOUGH @barryoreilly #LeanEnterprise @jemolesky 1
  • 2. CREATIVE DESTRUCTION 2 http://www.technologyreview.com/view/519226/technology-is-wiping-out-companies-faster-than-ever/
  • 3. 3 PREDICTIVE VS COMPLEX https://www.youtube.com/watch?v=U39RMUzCjiU
  • 4. 4 MCKINSEY GLOBAL DIGITAL SURVEY 2014 Published June 2014 http://www.mckinsey.com/insights/business_technology/The_digital_tippingbusiness_point_McKinsey_Global_Survey_results
  • 6. WHO’S IDEA WAS THIS? Highest Paid Persons Opinion Purple Flying Hippo, http://earcl01.deviantart.co6m
  • 7. 7 NETWORKED COMMUNITY Peter Hinssen, The Network Always Wins
  • 11. HOW DO WE LEAD AND IMPROVE DECISIONS IN NETWORKS? Principle of Mission 11
  • 12. HOW DO WE CHANGE CULTURE? 12 Edgar Schein, Organization Culture and Leadership LEARNING ANXIETY SURVIVAL ANXIETY
  • 13. HOW DO WE MOTIVATE AND ENGAGE PEOPLE? 13 Dan Pink, Drive AUTONOMY MASTERY PURPOSE
  • 15. STRATEGY ALIGNMENT EXECUTION MICRO MANAGEMENT CONTROL ACCOUNTABLE FOR TARGET & BUDGET The Control Bureaucracy 10-20% of costs Compliance rules Risk models Quality controls Inspections Balanced scorecards Target and incentives Budget contracts Adapted from:http://www.bbrt.org/beyond-budgeting/bb-problem.html
  • 16. TARGETS AND INCENTIVES CAN HAVE UNINTENDED OUTCOMES 16
  • 17. Executive Team Support Services Teams Strategy, Finance, HR Marketing, IT, Supply chain, Product development Cross-functional Value center Customers Customers Customers 17 CLEAR ACCOUNTABILITY FOR SELF MANAGED TEAMS Adapted from:http://www.bbrt.org/beyond-budgeting/bb-vision.html Principle of Mission Cross-functional Value center Cross-functional Value center
  • 18. UK GOVERNMENT CHALLENGES British National Health Service, had a program to computerized patient records. Projected to cost £2.3bn in 2002 and Despite the cancellation in 2011, it is expected to end up costing over £10bn. At the end of 2013, only 55% of the population had their medical records in the system. 18
  • 19. RACE ONLINE REPORT 2012 For me, the acid test for Directgov is whether it can empower, and make life simpler for, citizens and at the same time allow government to turn other things off. - Martha Lane Fox, UK Digital Champion 19
  • 20. 20
  • 21. 21
  • 22. 22
  • 23. GOV.UK ALPHA DESIGN PRINCIPLES 1.Don’t slow down delivery 2.Decision when they are need at the right level 3.Do it with the right people 4.Go see for yourself 5.Only do it if it adds value 6.Trust and verify 23 https://digitaltransformation.blog.gov.uk/2014/06/24/governance-principles/
  • 24. 24
  • 25. 25
  • 26. 26
  • 27. Big IT and big failure have stalked government for too long; that is why this government is radically rethinking the way it does business. - Francis Maude, Cabinet Office 27
  • 28. OTHERS NOW STARTING TO FOLLOW SUIT 28
  • 29. INABILITY TO ADOPT AN EXPERIMENTATION MINDSET 29
  • 30. 30 Doubt is not a pleasant condition, but certainty is absurd. - Voltaire
  • 31. 31
  • 32. Online Experimentation at Microsoft, http://ai.stanford.edu/~ronnyk/ExPThinkWeek2009Public.pdf 32
  • 34. 34
  • 35. 35
  • 36. REDUCE UNCERTAINTY WITH EXPERIMENTS 36
  • 37. 37 14 people £261,000 12 weeks
  • 38. PRINCIPLE OF OPTIONALITY Nassim Nicholas Taleb, Antifragile 38
  • 39. WHAT CAN WE DO TOMORROW? 39 Leadership, Strategy and Tactics
  • 40. BE CLEAR AND SHARE THE PRINCIPLE OF MISSION 40 Principle of Mission Executive Team
  • 41. CONSIDER END TO END FLOW OF VALUE 41
  • 42. GET COMFORTABLE WITH UNCERTAINTY 42 Define boundaries investment scope risk level
  • 43. CONCLUSION 1) BE CLEAR AND SHARE THE PRINCIPLE OF MISSION 2) CONSIDER END TO END FLOW OF VALUE 3)GET COMFORTABLE WITH UNCERTAINTY 43
  • 44. @barryoreilly www.barryoreilly.com #leanenterprise | @jezhumble | @jemolesky ThoughtWorks is hiring! http://join.thoughtworks.com Australia | Brazil | Canada | China Ecuador | Germany | Italy India | Singapore | South Africa Turkey | Uganda | UK | USA © 2014 ThoughtWorks, Inc. Order our new book! http://bit.ly/leanentp 44 THANK YOU