Lean Software & Systems Conference - Business901 Presentation
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This is the Business901 presentation at the Lean Software and Systems Conference 2012. What I have learned from many of my podcast guests is how it started.
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Lean Software & Systems Conference - Business901 Presentation
- 1. What is changing is the way we Think, Identify & Deliver Value
- 3. Lean Thinking • Identify Value • Map Value Stream • Create Flow • Establish Pull • Seek Perfection
- 4. Business901 Podcast What does the customer value from us? How are you delivering it?
- 7. Use Jobs as a filter, more customers needs are revealed.
- 8. People naturally network as they work so why not model work itself as a network?
- 10. We are in a Service Economy but do we think that way
- 11. Why Positive Change may be more important than Problem Solving
- 12. Joe Pine introduce the Multiverse as we were getting started with the Experience Economy
- 13. Think Value
- 14. “It is not about the things we make, it is about how we use the things we make.” – Malcolm Gladwell
- 15. Tangible Transactional to Intangible Value transfers are not yet well understood by organizations but are recognized by customers.
- 16. New models of value recognition are bringing unprecedented competition
- 17. The End of Best in Market
- 18. Shifting from Goods Dominate Thinking and Transactions to Service Dominate LogicTM and Co-Creation of Value Buy USE
- 19. Service Dominant Logic The Service-Dominant Logic of Marketing edited by Robert Lusch and Stephen Vargo SD-Logic
- 20. SD-Logic Value is always determined by the customer (in-use) All economies are services economies The customer is always a co-creator of value Goods are distribution mechanisms for service provision Indirect exchange masks fundamental unit of exchange Service-centered view is customer oriented & relational Knowledge is fundamental source of competitive advantage Service is exchanged for service
- 22. Identify Value
- 23. We must establish and understand Touch Points
- 24. Its not all about problem solving it’s about what we do best – Appreciative Look
- 25. Moving Design to the forefront
- 28. Finding the next hassle map of the customer where tomorrow’s demand exists.
- 29. Deliver Value
- 30. “Every Industry will be disrupted and rebuilt with people at the center.” - Sheryl Sandburg. COO Facebook
- 31. People expect to access information and whenever and wherever we want too.
- 32. We want information available on every device
- 33. Use of social technology for understanding and learning are in its infancy
- 34. Experimentation with new applications, technology seen as young persons role.
- 35. World is increasingly collaborative driving changes in the way decisions are made.
- 36. Most organizations do not understand the shift of VALUE and the shift to a COLLABORATIVE world.
- 37. Organizations need to challenge themselves by experimenting and creating co-creation of value opportunities through Lean Thinking.
- 38. We hang on to past practices
- 39. But It’s not your Grandmother’s Lean Anymore
- 40. Knowledge is Everywhere The quality of the organization and the customer relationship networks will make the difference.
- 41. President Operations Administration Quality Sales
- 42. Transaction to teams Obtainable goal setting. Willingness to train people. Commitment to measurement Understanding and agreement on the need for processes. Knowledge capture & sharing internally & externally. Clear-cut business strategy and objectives.
- 43. Make it manageable Follow the 2 Pizza Rule - Amazon, Jeff Bezos
- 44. Line of Sight Know what your Team Members are doing: • Daily Standups • Weekly Tactical • Monthly Strategic • Quarterly Strategic
- 45. Successful Lean teams are iTeams Teamwork is an individual not group skill Individuals must take responsibility for… • the quality and productivity of each team • relationships they are part of • individual accountability • the larger, shared tasks or deliverables
- 46. Customer Experience will mimic your Employee Experience • Know your team, design for personal & social needs • Build fun/pleasure/satisfaction into activities • Design cycles based on desired customer experience • Embrace motivators like power, autonomy & belonging
- 48. What is your iCustomer Level? The iCustomer level is not a tangible number. It is strictly based on the degree of interaction your organization needs based on the products/services it is delivering.
- 49. Consider the kind of team needed Roles
- 50. What is the process? EDCA Advancement PDCA SDCA Effectiveness & Time
- 51. EDCA Advancement PDCA Effectiveness & Time SDCA
- 52. How important is Standard Work? EDCA PDCA SDCA Standard Work puts the food on the table!
- 53. Leader Std. Work Leadership Process Visual Discipline Focus Controls Daily Accountability
- 54. Standard Work provides discipline thru • Clarity on What to do • Commitment on When to do it • Translation from Goals to Actions, the Why • Enablement of the actions, How • Accountability thru establishing the Who • Line of sight on Where your circle of influence effects
- 55. Standard Work in 1 word Execution
- 56. State the standard Agree on the method Locate the people who will be on the team Empower the Team Select the Team Goals of the Project Standard Do Act Check
- 57. Provides Line of Sight for Team at Daily Standup
- 58. Line of Site for resources needed at weekly tactical Providing a visual, simple and easily access document is the key. Can auto-populate or be completed by hand. Easily used as part of the task board in a War Room type environment. Virtual Teams can use something as simple as Google Documents or many other popular software packages.
- 59. Line of Site for Goal review at Monthly Strategic
- 60. Lean is essentially a knowledge transfer system; it's a training system on how to define knowledge gaps and close them
- 61. PDCA is a Call to Action Start with a problem that you don’t have the current knowledge to solve. What don’t I understand that I need to learn? What change do I need to see? Close the knowledge gap before closing the performance gap.
- 62. Select the initial Problem Perception Analyze the current process Locate the people who will be on the team Empower the Team Select the Improvement Plan Do Act Check
- 63. Explore when Problem is unknown EDCA = • What is? • What If? • What Wows? • What Works?
- 64. Sense-making: Give meaning to experience. Analyze the user Locate the people who understand the user and the needs Empower the Team Select a limited set of needs you are designing for Explore Do Act Check
- 65. Create Pull - Demand Value – in – Use Service and Products are a means to an end Value Co-Creation Not for customers rather with customers Trust Real value with all stakeholders
- 66. Lean is targeted to certain kinds of organizations who actually enjoy learning.
- 67. The only competitive advantage you have is the rate at which you learn from your customers. Positioning your organization in your customer’s playground is the most important role an organization has.
- 68. • Over 130 Free eBooks • Regular Blog Posts • Free Tools • Discussion Groups • Podcast with Celebrated Authors, Industry Practitioners and Leading Thought Leaders Our Mission is to bring Continuous Improvement to Sales and Marketing. http://leanmarketinglab.com
Notas del editor
- What is changing is the way we Think, Identify & Deliver ValueValue is a term that you hear about but is it ever really defined well!
- I am Joe DagerThis is the cloud for my website, Business901.com.This is what I write about!Lean Work(how boring) CustomerPeople
- The principles of LeanI stay grounded in them though many may differConcentrate on ValueStill to this day – Old Thinking IMHO - What a Customer will pay for
- This is my Podcast Cloud - This is what I talk about!LeanValueKanbanThe context of my talk has come from a group of leading thought leaders that have appeared on the Business901 podcast. They are…
- The Business Model Canvas is based on Alex Osterwalder’s book Business Model GenerationI strongly encourage you to have a copy. Provides many examples of its use from small scale companies to large scale companies such as Amazon. Access to an online version of the canvas and an Apple APP
- Why do we need a canvas?Business Plans may be somewhat outdated What would it be worth if everyone on your team were on the same pageAnd knew what each of these blocks meantIn Lean terms Value streams - this tells me everything I want to know about a Value StreamThe ability to iterate and transfer knowledge at a glance is priceless
- In my podcast with Alex,Discussed the Customer- Value Plug inMove Customer Segment – the observations (the job to be done)Value Proposition – What we are going to doInfluenced by Clay Christianson and his work. Drilling down into the Customer – his work!
- Anothertype business modeling approachVerna Allee– entire book at Value Networks and Collaboration.comIdentifying Intangible and Tangible Value within org.Lean Plus at BoeingUse Red/Black Checkers
- Uncommon Service dispels a lot of myths - 1 being that you can be good at everything the old process methodology legacyZappos taught me that developing the right culture internally, as Lencioni says in his new book may be the most important aspect of all for company to thrive in the world today. Amazon did not buy Zappos for a billion dollars because of their operations, they bought them because they could create demand and they create demand with their culture. Tim Ogilvie in Designing for Growth explained a new set of tools – not totally unfamiliar to us but a set that may not be in the back pocket of many Lean Practitioners. What Design Thinking does is really target people that want to become more humanistic in their way of thinking.
- As we all know we are in the service economy but do we think that way?What I did is I had Marc Stickdorn co-editor of “This is Service design Thinking” on the podcast but than I took the deeper dive A prototype expert – Matt YubasService Innovation – Lance BettencourtArchitect – Zach EvansTheater, Service Jam – Adam St. JohnArne van Oosterom– Design Thinkers – Service Design Practitioner
- An appreciative look at the world and why positive change may be more important than problem solvingAnkit Patel introduced me to the work at the Cleveland Clinic where they have a very strong Lean presence and maybe even a stronger Appreciative Inquiry presence.It’s back to that humanistic side…Empathy, Positive change Have you ever done 5 Why from a positive outlook vs a problem solving. This is 1 non-profits Fishbone on why they thought cultural change would work.
- Joe Pine introducing the Multiverse when we were just getting started with the Experience Economy The Multiverse defines the universe by 3 axes: time, matter and space. But what happens if we look at the opposites: no-time, no-matter and no-space. Joe takes us through all the dimension that define the Multiverse, such as augmented reality, alternate reality and warped reality.I am no going to go deep into the Multiverse, even if I was smart enough But the Experience Economy even though the original book was written 14 years ago is just starting to take hold. The author Pine and Gilmore published a 2nd edition last summer because they did not have any case studies in the original.When we were just getting started with the Experience Economy
- What is changing is the way we Think, Identify & Deliver Value
- “It is not about the things we make, it is about how our customer use the things we make.”– Malcolm GladwellIn a Ted video Malcolm Gladwell tells the tale of the Norden bombsight, a piece of World War II technology with a deeply unexpected result.The POINT of the story has little to do with the bombsight at all, it is the tension between creator and intention. Or stated another way the intended purpose, and its actual use. It is in essence how we wish technology to perform, and how it does perform.
- Way to much have been written about Zip Car Already but it is 1 model that when I discuss it …I hear over and over again, Yeah, but not in our industry – Sounds familiar?
- Rolls-Royce provides short, medium and long-term spare engine leasing solutions winning significant portion of business in the Aircraft Engine businessThe owner of Zappos bought an airline…What type of Airline may that end up being?
- But when we think about value is anymore, it is not Best in MarketBest in Market has really become a myth in today’s world. These companies that believe this are typically product focused and determine their position by the amount of features and benefits that they have over the competition. It is also believed that continuous improvement on processes, people and product will maintain that “Best in Market” position.The competitive advantage in the “Best in Market” approach is dead wrong. Trying to outsell your competition based on these principles will at best (no pun attended) lead to only short term wins in profitability and in market share. These gains will diminish relatively quickly as competitors respond with their own improvements and innovations.
- Best in Market Products are not enough, Customers will only pay for how value is derived from the use of the product. Stop thinking product/servicemarkets Don’t think about how you intended it to be used, think how others use your product or service!
- #sdlogic is a mental model about how the world works. I believe it has been stuck in Academia and has been difficult in its own right to be put into use.#servicedesign is a framework and toolkit to change it for the better
- Products and Services are enablers of ValueValue is always determined by the customer (value-in-use)
- What would happen if your product or service was Free?It could be commoditized tomorrow.. in essence meeting competitor pricing is very similar? Could you kill the asterisk?That is how you have to start thinking about value
- What is changing is the way we Think, Identify & Deliver Value
- Focusing on the customer’s job to be done allows you to create a system of purposeful interactions and flexibility versus benefits and features.
- But it’s not all about your processesWe cannot get stuck in basing each component on time – We cannot get stuck on Value and Non-Value added taskIts not all about problem solving it’s about what we do best – that appreciative lookYou can’t improve everything, you have to improve on what the customer values
- We have to think like a designerA Design Thinker’s PDCA?: What is? Exploring the current realityWhat if? Envisioning alternative futuresWhat wows? Getting users to help make tough choicesWhat works? Making it work in-marketplace, in the use of your product
- We have to understand our customer’s experiences.
- Their journey - and how we are going to be part of it
- Take responsibility for demand.
- What is changing is the way we Think, Identify & Deliver Value
- There is fundamental change taking place
- And how many devices do we have?
- There is simply not the widespread use that most of us imagine to be. We don’t even communicate and transfer knowledge well in our organizations let alone with customers.
- Countless times - we hired a young kid! IT people don’t automatically understand Value!Geeks have moved from the closet to the boardroom.
- As collaboration increase we are becoming less and less dependent on experts.Influencers are people much closer to us than we ever imagined – less than 3 degrees of separation
- Most orgs are still looking at features and benefits rather than use.They are still trying to be experts. When was the last time on Amazon you cared about what a publisher said about a book.Now, we are getting learyof even the comments.
- Many of these thoughts were put forth in Lean Solutions by Womack and Jones:They advocated that customers wanted a solution based on:Provide me exactly what I wantProvide me value when I want itProvide me value where I want itDon’t waste my timeReduce # of problems I need to solveSolve my problem completely
- We hang on to past practices which has prevented us from fulfilling the Dream of Lean Solutions
- We are not viewed as experts anymore. Organizations must adapt to the networks our customer uses and demonstrate value in the use of our products and features. Movie Meet the Fokkers: Before someone decides to grant trust in a working relationship, a calculation goes on in the mind. The person granting your permission into their Circle of Trust (3 degrees) can be simplified around these four dimensions: Confidence: Does the person have the skills necessary to accomplish the past? Reliability: Does the person deliver what is expected, when it is expected and in the form it is expected? Open/Honest communications: Is the person forthright in his or her dealings? Caring: Is this person willing to defend the interests of the other, even when that interest may affect his or her own interests?
- Organizations design process which are copies of their existing structuresOrganizations must change to develop a more collaborative structure.
- First thing is to make it manageableSmaller GroupsInformal communicationBetter assignment of tasksEasy Manageable TasksIncrease participationReduces Information needed to be processedProvides Clear Line of Sight
- It’s back to that Customer Experience thing…The term Experience Economy was first described in an article published in 1998 by Pine and Gilmore
- Once you've established the objectives, you choose a team structure to match it. Without this process you may have creative teams working on tactical execution or on the other hand a problem-solving team working on a creative solution.
- How do Teams deliver – if Lean is your way of thinking, what do you do?
- How do Teamsdeliver? Using the Experience economy model If you are delivering product in one group – Standardize and do it well.If you want to move up the latter it may only require PDCA.If you want to explode up the ladder you need breakthrough thinking - EDCA
- The quality of the organizational relationship network will make the difference.4 Principle Elements of a Lean Management System Leader Standard Work Visual Controls Daily Accountability Process Leadership Discipline
- Different perspective on knowledge transferNot the perspective of educating the customer Perspective of learning from the customerUnderstanding how your customer uses and benefits from your product or service.Lean approach is to leave your customer be the professor, the Sensei
- 95% of firms say they are customer focused.80% say they deliver superior experience8% of their customers agreeAny gap?
- Who are committed to continuous improvement as opposed to just doing things and running things as they are.
- What makes Lean different is the system. It’s work!But the steps of Lean are simple: Go and see the initial practice (Gemba), the user. Form a working vision from the user experience, an ideal situation of where the USER wants to go. Visualize the user's process. If you do that, it's obvious to see what your next reaction should be and when to trigger it.
- I want to thank you.