agility and organisational change

www.onlydeadfish.co.uk@neilperkin

http://www.flickr.com/photos/16863501@N00/207844624/

BATS & PIZZAS(AGILITY AND ORGANISATIONAL CHANGE)

CEOs consider technology the single most important

external force shaping their organizations

IBM CEO Survey 2013

“If the late 20th Century was the age of the multinational company, the early 21st will be

the age of the micro multinational: small companies that operate globally”

Hal Varian, Google Chief Economist

http://little-people.blogspot.co.uk/

http://www.flickr.com/photos/104810962@N02/10826694396/

“A large organisation is almost nothing but a massive knot of pre-existing relationships.”

Matt Edgar

http://www.quora.com/Innovation/Why-dont-big-companies-innovate-more/answer/Matt-Edgar?srid=pJZn&share=1

Sticky Organisations

“Good ideas alter the power balance in relationships, that is why good ideas are always initially resisted.” Hugh MacLeod

Source: MIT Sloan Management/Capgmini, “Embracing Digital Technology”, 2013

Culture is one of the most significant barriers to digital transformation

Toxic Assumptions

"Chess, like business, is a balance between the mundane and the unthinkable. Each move has game changing consequences, sometimes you must win by doing the right thing each time….but at Grandmaster level we all think 25 moves ahead and are familiar with every nuance of the game. The only way to win at that level is to do the unthinkable, something

that explodes the game and upends my opponents thinking.” Gary Kasporov

HT Scott Gallacher, The Aston Group

Taking the Long View

Key tension - requirement for longer-term strategy and investment vs constant need to hit short-term targets

“We are willing to think long-term. We start with the customer and work backwards. And,

very importantly, we are willing to be misunderstood for very long periods of time. I believe if you don’t have that set of things in

your corporate culture, then you can’t do large-scale invention.”

http://mattfollows.com/W-K-Embrace-Failure

Jim Collins:Empirical Creativity

"An effective test is an exercise in humility; it’s only useful in a culture where desirability is not confused with likelihood. For a test to change things, everyone has to understand that their opinion, and their boss’s opinion, matters less than what actually works and what doesn’t”

FASHIONISTAS DIGIRATI

BEGINNERS CONSERVATIVES

http://www.capgemini-consulting.com/the-digital-advantage/

Concept

DetailedDesign

DetailedDesign

Build Build

DetailedDesign

DetailedDesign

Build Build

SPRINTREVIEW

SPRINTREVIEW

SPRINTREVIEW

SPRINTREVIEW

http://www.slideshare.net/razorfishmarketing/razorfish-ray-velez-and-laura-fraga-ford-motor-on-agile-processes?from=ss_embedFord Motor/Razorfish agile principles

A broad based opportunity:Innovation, efficiencies, customer experience

Impacts processes, structures, ways of working

Progression of agility through an organisation, agile philosophy and culture

Spotify – Tribes, Chapters, Squads

“I wisely started with a map” J.R.R. Tolkien

“The notion of ideas as this singular thing is a fundamental flaw. There are so many ideas that what you need is that group behaving

creatively. And the person with the vision I think is unique, there are very few people who have that vision.. but if they are not drawing the

best out of people then they will fail.” Ed Catmull, President of Pixar

1. Commercially minded2. Customer-centric3. Open and transparent (data)4. Collaborative (cross-function, tools)5. Non-hierarchical6. Growth hacker7. Empowered (fail fast, ideas from anywhere)8. Data driven (test and learn, evidence based)9. Passion (hungry to learn, curious)10. Innovative and agile (embrace change, process)

What is digital culture?

Image: http://gapingvoid.com/

"We aggressively stood on the shoulders of giants like Amazon, and used technology that was built by other people. We had a pretty good culture of using not-invented-here technologies.

And we weren't scared about it."

“Government should only do what only government can do. If someone else is doing it — link to it. If we can provide resources (like APIs) that will help other people build things — do that. We

should concentrate on the irreducible core.”

• Policy as the starting point = overly detailed input• Digital versions of existing practices• Lengthy and complex procurement• Inflexible solutions

• Driven by user need• Alpha of the service in 12 weeks• Rapid reaction to user feedback from multiple

sources• First 10 days after release over 100 changes at

negligible cost.• In many cases, delivery of services has come

before final strategy work is completed

"In an analogue world policy dictates to delivery, but in a digital world delivery informs policy".

1. They are obsessed with the quality of the product/experience. 2. They are obsessed with talent.3. They can explain the vision for the company in a few clear words.4. They generate revenue very early on in their lives5. They are tough and calm6. They keep expenses low7. They make something a small number of users really love8. They grow organically9. They are focused on growth10. They balance a focus on growth with strategic thinking about the future11. They do things that don't scale12. They have a whatever-it-takes attitude13. They prioritize well14. The founders are nice15. They don't get excited about pretending to run a startup16. They get stuff done17. They move fast.

http://blog.samaltman.com/super-successful-companies

What Makes a ‘Super-Successful’ Company?

Budget split Life stage Objective KPIs Team

70% Core/oldest products Small growth Maintain profit ‘Rowing team’

20% Young/mid Increase share and profit

Profitable growth ‘White water rafters’

10% New Prove leap of faith Solving user problems

‘Diving for sunken treasure’

http://www.slideshare.net/martinbailie/sxsw-2013-themes-startup-culture-code-and-data

So how do we make change easier?

Image: http://www.creativecorporateculture.com/business-model-innovation_2/http://www.doblin.com/tentypes/

“The most innovative companies innovate in the broadest possible ways.”

The Ten Types of Innovation

“Looking outside your own industry for inspiration is as useful as it’s ever been, but you need people who can think laterally enough to apply an unfamiliar idea to their

own situation.”

The Importance of Fresh Perspectives

Getting patients from surgery to ICU in Gt Ormond St…

Chance favours the connected mind

• The eureka myth• Ideas take a long time to mature• Collision of ‘half ideas’• Connectivity drives collisions

Ideas From Anywhere

• Connected employees bring new thinking into the organisation

• Allows for innovation at the edges – non-core thinking

• Companies less reliant on ‘stocks’ of knowledge, and more connected to ‘flows’ of knowledge

Porous Enterprise

“…fully networked enterprises are not only more likely to be market leaders or to be gaining market share but also use management

practices that lead to margins higher than those of companies using the Web in more limited

ways.”

The Networked Enterprise

Test and Learn

It took Rovio 51 attempts and six years to come up with Angry Birds. It took over 5,000 prototypes and 15 years of perseverance for James Dyson to launch the

Dyson DC01 vacuum cleaner under his own name

“Prototype an idea as soon as possible, be transparent and have a fact based organisation – endeavour to constantly remove guesswork.”

Developing a culture of experimentation

Inspiration, Insight

Idea Generation

Idea Selection

Incubation, Implementation

Deployment, Scalability

The Innovation Value Chain

CHANGE IS A PROCESS NOT AN EVENT

http://www.stephentaylorpaintings.com/paintings/oaks.aspx

http://www.kotterinternational.com/our-principles/changesteps

Bottom-up, Top Down change

Technical change: change that addresses tangible products, procedures or processesAdaptive change: less tangible human aspects - attitudes, thinking, beliefs, values, behavioural change

Technical and Adaptive Change – Embracing Uncertainty

Knoster T, Villa R, & Thousand J. (2000). A Framework for Thinking about Systems Change. In R. Villa & J. Thousand

“You can’t extinguish a bad habit, you can only change it.”

Changing Organisational Habits

“When people join groups where change seems possible, the potential for that change to occur becomes more real.”

You Are Who You Choose to Spend Time With

http://www.amazon.co.uk/exec/obidos/ASIN/1591846919/

"If you do something every day, it’s a system. If you’re waiting to achieve it

someday in the future, it’s a goal."

Systems Trump Goals

http://www.amazon.co.uk/exec/obidos/ASIN/1591846919/

"If you do something every day, it’s a system. If you’re waiting to achieve it

someday in the future, it’s a goal."

“The goals people are fighting the feeling of discouragement at each turn. The systems

people are feeling good every time they apply their system."

Systems Trump Goals

"I was moving from a place with low odds (being an out-of-practice writer) to a place of good odds (a well-practiced writer with higher visibility)."

A Bit Like Blogging…

http://thisisindexed.com/

http://www.fraggl.co.uk/http://austinkleon.com/2011/03/30/how-to-steal-like-an-artist-and-9-other-things-nobody-told-me/

The Technology Hype Cycle

Idea TriggerTrough of Disappointment

Peak of Inflated Excitement

Slope of hope

Highland of headway

The Idea Hype Cycle

What does this mean for me?

Be the change you wish to seeBut remember change is a process, not an eventDon’t just think creativity – think empirical creativityAsk the awkward questionsFocus on behaviours, not technologyAlways be learningHumility wins. Surround yourself with people who inspire youConnect with the great thinking that is given away freely in this industryDon’t fight the old, build the new!

www.onlydeadfish.co.uk@neilperkin

Thank you!