LEAN ENTERPRISE TRANSFORMATION

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1 LEAN ENTERPRISE TRANSFORMATION SPINNAKER

2 SONJA KRESOJEVIC Co-founder of Spinnaker, NY based consultancy focused on enterprise transformation. Senior executive with 20 years of global experience building products and driving agile and lean transformation inside large enterprises including BBC, Channel 5, News Corp Most recently SVP in the Chief Product Office at Pearson, leading the implementation of the award winning Lean Enterprise Transformation program. Spinnaker - Lean Enterprise Transformation 2

3 EXTERNAL UNCERTAINTY SPEED DISRUPTION EXPECTATIONS INSTABILITY 3

4 INTERNAL FRICTION RISK AVERSION NO DISCIPLINE BIG BETS SLOW TO MARKET SKILLS & DATA GAP

5 Lean Enterprises: operate their core businesses at scale while simultaneously adapting to change through continuous learning, by self disrupting, focusing on customers, and innovating to drive long term growth. 5

6 WHY ARE TRADITIONAL TRANSFORMATION PROGRAMS FAILING? Not aligned to organizational goals Narrowly focused on organizational design Multiple transformation efforts competing with each other Overwhelmed by technology focus Not aligned to outcomes Not tested against new business models Lack of alignment to Strategy Not Measurable Spinnaker - Lean Enterprise Transformation 6

7 EXERCISE 1 Spinnaker - Lean Enterprise Transformation 7

8 EXERCISE: WHAT ARE SOME OF YOUR CHALLENGES? Working at your tables, discuss and capture some challenges your transformation programs are facing One challenge per post it Share with the room Spinnaker - Lean Enterprise Transformation 8

9 TRANSFORMATION JOURNEY 9

10 LEAN ENTERPRISE TRANSFORMATION JOURNEY Being Doing Business Impact is clear. Values embraced at all levels. Transition to BAU while continuing to learn Scaling and Optimizing. Culture changing. Incentives shifting Thinking Ad hoc Pilots w. Early Adopters to validate Problem & Solution. Building knowledge through communities. Scattered. Inconsistent. Hero efforts. Small groups of enthusiasts at varied maturity levels Spinnaker - Lean Enterprise Transformation

11 LEAN ENTERPRISE EXAMPLE - PEARSON Enterprise Transformation initiated First view of the global portfolio and Exec endorsement PLC v1.0 launched Incremental funding agreed with Finance Coach Program launched Global adoption of PLC and governance Active portfolio management Roadshow workshops and training First pilots Governance accelerators launched in multiple BUs Portfolio tool Spinnaker - Lean Enterprise Transformation 11

12 LEAN ENTERPRISE PRINCIPLES Continuous learning Embracing uncertainty Small bets Experimentation Customer centricity Organizational Agility Outcomes over output Empowerment and transparency Spinnaker - Lean Enterprise Transformation 12

13 EXERCISE 2 Spinnaker - Lean Enterprise Transformation 13

14 EXERCISE: WHERE ARE YOU ON THIS JOURNEY? Map where your company is on this journey At your tables discuss and capture Lean Enterprise principles your companies have embraced or have struggled to embrace Share with the room Spinnaker - Lean Enterprise Transformation 14

15 TRANSFORMATION FRAMEWORK 15

16 MECHANICS BUSINESS RESULTS MINDSET Spinnaker - Lean Enterprise Transformation 16

17 WHERE ARE WE HEADED? BUSINESS GOALS TRANSFORMATION GOALS KEY METRICS WHAT ARE THE PRIMARY COMPONENTS OF OUR STRATEGIC VISION? WHAT ARE THE PRIMARY DRIVERS OF OUR TRANSFORMATION INITIATIVE? HOW WILL WE MEASURE THE SUCCESS OF OUR TRANSFORMATION INITIATIVE IN ACHIEVING STRATEGIC VISION? Spinnaker - Lean Enterprise Transformation

18 GOALS & KPIS - EXAMPLE BUSINESS TRANSFORMATION METRICS Deeper relationships with more customers Fundamentally change digital IT and operations Risk capabilities as a true competitive advantage New revenue sources in banking and non-banking services Dramatically improved costto-serve Competitive proposition for top talent Break silos that result in poor customer experience Reward and incentivize the right behaviors and culture Simplified governance Close the skill gap for the future Proactive lifecycle management Continuous learning and delivery Digital, progressive, entrepreneurial culture NPS score improved by % 1 month from idea to delivery to customer Top 3 employer on Times 100 list % of investment saved through retirement of products/ % of funds managed through lean % of employees trained on lean, agile % of new revenue from new business models Glassdoor rating improved by % Spinnaker - Lean Enterprise Transformation services

19 mindset LEAN ENTERPRISE TRANSFORMATION JOURNEY goals mechanics Spinnaker - Lean Enterprise Transformation 19 SPINNAKER

20 LEAN ENTERPRISE MINDSET Strong focus on listening to customers. High tolerance for absorbing and learning from failed initiatives. Continuous learning across the organization. Think big but start small. Command & Control top down direction replaced with Mission control responsiveness 20

21 LEAN ENTERPRISE MECHANICS Cross-functional Product teams operating using best practice Disciplined adaptive portfolio approach to deliver on strategy and react to change Lifecycle framework supported by incremental funding. Decentralized decision making. Adaptive allocation of capital based on evidence rather than commitment to plan. 21

22 CULTURE Values Behaviors PEOPLE Operating Model Communities Talent Rewards Lean & Agile Technology Product Dev Ops Portfolio Lenses Strategy KPI s Product Lifecycle Metrics Innovation Accounting Investment Thresholds Structures Membership DELIVERY PORTFOLIO LIFECYCLE Spinnaker - Lean Enterprise Transformation 22 GOVERNANCE

23 ad hoc Iterate and adapt Behaviors understood throughout the org CULTURE Vocabulary of agility Small team of heroes Agile learning being developed as part of leadership pillars PEOPLE Coaching prepared job description for Product Owners Agile training Bring stakeholders along Agile community Customer co-design Reconfigured workspace Dev Ops introduced Focus on Customer Journey Agile portfolio Prioritization based on lenses Weekly prioritization New Business metrics Agile delivery framework Gated Governance Pilots in 3months, Thresholds & approval limits set Product Council established DELIVERY PORTFOLIO LIFECYCLE Spinnaker - Lean Enterprise Transformation 23 GOVERNANCE

24 thinking Disrupt learn and adapt Community inside and outside CULTURE PEOPLE embrace fail-fast hire people different than you Innovation culture awards Partners in key functions Begin aligning Operating model Using intranet to share learnings Agile & product Training Leadership Education Role definitions+ accountability Recruitment screening review Rotate resources Early Pilots Build a strong community Lots of customer prototyping Power of data Open Design thinking workshops Test Portfolio Tools Engage Exec team Test reallocation principles Baseline the portfolio Iterations of Lifecycle Product Taxonomy Regulation / Funding tension Keep log of ODQs Pilots with BUs Incremental funding Test & refine new governance approach DELIVERY PORTFOLIO LIFECYCLE Spinnaker - Lean Enterprise Transformation 24 GOVERNANCE

25 PEOPLE LEAN ENTERPRISE TRANSFORMATION JOURNEY doing CULTURE Community development Transformation Prog Mngmnt & iteration Design incentives and Eval - HR Design Hiring Policies Product Coach training program L& D integration at scale Change Strat Planning process Scaling Lifecycle implementation Tooling Innovation accounting / Optionality Governance Scaling BEST PRACTICE PORTFOLIO LIFECYCLE Spinnaker - Lean Enterprise Transformation 25 GOVERNANCE

26 EXERCISE 3 Spinnaker - Lean Enterprise Transformation 26

27 WHAT S NEXT? Capture 3-5 actions you can take that are relevant to the transformation stage your organization is at and in response to challenges identified One action per post-it Add each post-it to the relevant canvas Spinnaker - Lean Enterprise Transformation 27

28 EXERCISE 4 Spinnaker - Lean Enterprise Transformation 28

29 EXERCISE: CHANGE STARTS WITH LEADERSHIP Discuss what this means for you as leaders What actions can you take next week? Spinnaker - Lean Enterprise Transformation 29

30 ANY QUESTIONS? Spinnaker - Lean Enterprise Transformation 30

31 LEAN ENTERPRISE TRANSFORMATION CANVAS Spinnaker - Lean Enterprise Transformation 31

32 leanproductlifecycle.com Spinnaker - Lean Enterprise Transformation 32

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