How to Grow New: Reframing GE FastWorks & How to Engage 250k people, Viv Goldstein, General Electric

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In this opening presentation, Viv Goldstein, director of Innovation Acceleration and co-founder of FastWorks at GE, pulls back the curtain on how she and her team led a 124-year-old company through a revolutionary culture change.

Business

INSIDE GE: FastWorks
November 2016Confidential. Not to be copied, distributed, or reproduced without prior approval. ©2016GeneralElectricCompany
Lean Startup
2016

WE ARE GE
We are the world’s premier digital industrial company.
We transform industry by connecting people, data and
machines. Living in perpetual motion, we are sensing,
predicting and responding to make the world work better.
2
Lean Startup 2016 ©2016GeneralElectricCompanyConfidential. Not to be copied, distributed, or reproduced without prior approval.

Lean Startup 2016 ©2016GeneralElectricCompanyConfidential. Not to be copied, distributed, or reproduced without prior approval.

…GE worked with
Snapchat as they covered
the best of the expedition.
Lean Startup 2016 ©2016GeneralElectricCompanyConfidential. Not to be copied, distributed, or reproduced without prior approval.

5
FastWorks Everyday
© General Electric 2016
WE ALL FACE NEW
CHALLENGES
Volatile, uncertain, complex, & ambiguous
(vuca) world.
New business models are emerging.
Technology & market changes are
increasingly disruptive.
Need to be simpler & faster.
TO STAY COMPETITIVE, WE NEED TO THINK & BEHAVE
IN A DIFFERENT WAY
5Lean Startup 2016 ©2016GeneralElectricCompanyConfidential. Not to be copied, distributed, or reproduced without prior approval.

6
FastWorks Everyday
© General Electric 2016
FastWorks
•Entrepreneurial, curious, & collaborative
mindset
•Smarter, simpler, customer-need driven
•Increased speed to learning
•Customer-validated decisions  iterate or stop
•Seed funding model, test & learn
Combining the speed and agility
OF A STARTUP
with the scale and resources
OF GE
Lean Startup 2016 ©2016GeneralElectricCompanyConfidential. Not to be copied, distributed, or reproduced without prior approval.

OUR JOURNEY
FastWorks 1.0: Framework for NPI & Process Improvement
FastWorks 2.0: Resource / funding allocation
FastWorks 3.0: Executed broad cultural change
FastWorks 4.0: Growth Mindset
2012/3
2014
2015
2016
Lean Startup 2016 ©2016GeneralElectricCompanyConfidential. Not to be copied, distributed, or reproduced without prior approval.

FastWorks 1.0: Framework
• Opportunities/ true
customer need
• Retires risk early
• Rapid experimentation
• Smarter questions &
increased collaboration
Customer Need
Potential
Solution
Pivot or
Persevere
Learning
Metrics
Leap of Faith
Assumptions
MVPs
Lean Startup 2016 ©2016GeneralElectricCompanyConfidential. Not to be copied, distributed, or reproduced without prior approval.

FastWorks 2.0: Installed Growth Boards
Optimize funding & resource allocation
Large volume of small bets
Commercialization & business model innovation
Customer obsession
Portfolio driven approach
Lean Startup 2016 ©2016GeneralElectricCompanyConfidential. Not to be copied, distributed, or reproduced without prior approval.

10
FastWorks Everyday
© General Electric 2016
FastWorks 3.0: Culture Change
GE Beliefs
Expectations
Behaviors
FastWorks
Mindset
Mechanics
Performance Development
Accountability
BETTER
CUSTOMER
OUTCOMES,
FASTER
Lean Startup 2016 ©2016GeneralElectricCompanyConfidential. Not to be copied, distributed, or reproduced without prior approval.
©2016GeneralElectricCompany

FastWorks 4.0: New Mindset & Behaviors
11
CULTURE LEADERSHIP WORK
The Challenge of New Growth
Lean Startup 2016 ©2016GeneralElectricCompanyConfidential. Not to be copied, distributed, or reproduced without prior approval.

12
New
Growth
Mindset
BE AN OPERATOR & VC
END SUCCESS
THEATRE
END THE
ADDICTION
TO BEING RIGHT
NET NEW
LEARNING…EXPIRE
DATA
FROM TAM TO
TAN/TAP
THINK OUTSIDE
IN
CUSTOMER = ULTIMATE
TRUTH
EMBRACE RISK /
PRODUCTIVE FAILURE
Lean Startup
2016
Confidential. Not to be copied, distributed, or reproduced without prior approval. ©2016GeneralElectricCompany

13
FastWorks Everyday
© General Electric 2016
FastWorks: Approach to Scale
Partner
& Discover
Execute
& Learn
Teach
& Coach
Lean Startup 2016 ©2016GeneralElectricCompanyConfidential. Not to be copied, distributed, or reproduced without prior approval.

14
FastWorks Everyday
© General Electric 2016
CASE STUDY: Sustainable Healthcare Solutions
What’s Different?
Lean Startup 2016 ©2016GeneralElectricCompany
+80% Revenue in 3
YRS
Confidential. Not to be copied, distributed, or reproduced without prior approval.

15
FastWorks Everyday
© General Electric 2016
TRADITIONAL APPROACH
Existing sophisticated
product
Product
enhancements
Lean Startup 2016 ©2016GeneralElectricCompanyConfidential. Not to be copied, distributed, or reproduced without prior approval.

16
FastWorks Everyday
© General Electric 2016
Instead of starting with this….
NEW APPROACH
Lean Startup 2016 ©2016GeneralElectricCompanyConfidential. Not to be copied, distributed, or reproduced without prior approval.

17
FastWorks Everyday
© General Electric 2016
A blank sheet of paper &
set of questions
Customer Discovery
& Validation
Lean Startup 2016 ©2016GeneralElectricCompanyConfidential. Not to be copied, distributed, or reproduced without prior approval.

18
FastWorks Everyday
© General Electric 2016
And we came up with this…
Lean Startup 2016 ©2016GeneralElectricCompanyConfidential. Not to be copied, distributed, or reproduced without prior approval.

19
FastWorks Everyday
© General Electric 2016Lean Startup
2016
Confidential. Not to be copied, distributed, or reproduced without prior approval. ©2016GeneralElectricCompany

20
FastWorks Everyday
© General Electric 2016
FUSE
Lean Startup 2016 ©2016GeneralElectricCompanyConfidential. Not to be copied, distributed, or reproduced without prior approval.
MANUFACTURING. CROWD-POWERED.

21
FastWorks Everyday
© General Electric 2016Lean Startup
2016
Confidential. Not to be copied, distributed, or reproduced without prior approval. ©2016GeneralElectricCompany

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How to Grow New: Reframing GE FastWorks & How to Engage 250k people, Viv Goldstein, General Electric

2. WE ARE GE We are the world’s premier digital industrial company. We transform industry by connecting people, data and machines. Living in perpetual motion, we are sensing, predicting and responding to make the world work better. 2 Lean Startup 2016 ©2016GeneralElectricCompanyConfidential. Not to be copied, distributed, or reproduced without prior approval.

5. 5 FastWorks Everyday © General Electric 2016 WE ALL FACE NEW CHALLENGES Volatile, uncertain, complex, & ambiguous (vuca) world. New business models are emerging. Technology & market changes are increasingly disruptive. Need to be simpler & faster. TO STAY COMPETITIVE, WE NEED TO THINK & BEHAVE IN A DIFFERENT WAY 5Lean Startup 2016 ©2016GeneralElectricCompanyConfidential. Not to be copied, distributed, or reproduced without prior approval.

6. 6 FastWorks Everyday © General Electric 2016 FastWorks •Entrepreneurial, curious, & collaborative mindset •Smarter, simpler, customer-need driven •Increased speed to learning •Customer-validated decisions  iterate or stop •Seed funding model, test & learn Combining the speed and agility OF A STARTUP with the scale and resources OF GE Lean Startup 2016 ©2016GeneralElectricCompanyConfidential. Not to be copied, distributed, or reproduced without prior approval.

7. OUR JOURNEY FastWorks 1.0: Framework for NPI & Process Improvement FastWorks 2.0: Resource / funding allocation FastWorks 3.0: Executed broad cultural change FastWorks 4.0: Growth Mindset 2012/3 2014 2015 2016 Lean Startup 2016 ©2016GeneralElectricCompanyConfidential. Not to be copied, distributed, or reproduced without prior approval.

8. FastWorks 1.0: Framework • Opportunities/ true customer need • Retires risk early • Rapid experimentation • Smarter questions & increased collaboration Customer Need Potential Solution Pivot or Persevere Learning Metrics Leap of Faith Assumptions MVPs Lean Startup 2016 ©2016GeneralElectricCompanyConfidential. Not to be copied, distributed, or reproduced without prior approval.

9. FastWorks 2.0: Installed Growth Boards Optimize funding & resource allocation Large volume of small bets Commercialization & business model innovation Customer obsession Portfolio driven approach Lean Startup 2016 ©2016GeneralElectricCompanyConfidential. Not to be copied, distributed, or reproduced without prior approval.

10. 10 FastWorks Everyday © General Electric 2016 FastWorks 3.0: Culture Change GE Beliefs Expectations Behaviors FastWorks Mindset Mechanics Performance Development Accountability BETTER CUSTOMER OUTCOMES, FASTER Lean Startup 2016 ©2016GeneralElectricCompanyConfidential. Not to be copied, distributed, or reproduced without prior approval. ©2016GeneralElectricCompany

11. FastWorks 4.0: New Mindset & Behaviors 11 CULTURE LEADERSHIP WORK The Challenge of New Growth Lean Startup 2016 ©2016GeneralElectricCompanyConfidential. Not to be copied, distributed, or reproduced without prior approval.

12. 12 New Growth Mindset BE AN OPERATOR & VC END SUCCESS THEATRE END THE ADDICTION TO BEING RIGHT NET NEW LEARNING…EXPIRE DATA FROM TAM TO TAN/TAP THINK OUTSIDE IN CUSTOMER = ULTIMATE TRUTH EMBRACE RISK / PRODUCTIVE FAILURE Lean Startup 2016 Confidential. Not to be copied, distributed, or reproduced without prior approval. ©2016GeneralElectricCompany

13. 13 FastWorks Everyday © General Electric 2016 FastWorks: Approach to Scale Partner & Discover Execute & Learn Teach & Coach Lean Startup 2016 ©2016GeneralElectricCompanyConfidential. Not to be copied, distributed, or reproduced without prior approval.

14. 14 FastWorks Everyday © General Electric 2016 CASE STUDY: Sustainable Healthcare Solutions What’s Different? Lean Startup 2016 ©2016GeneralElectricCompany +80% Revenue in 3 YRS Confidential. Not to be copied, distributed, or reproduced without prior approval.

15. 15 FastWorks Everyday © General Electric 2016 TRADITIONAL APPROACH Existing sophisticated product Product enhancements Lean Startup 2016 ©2016GeneralElectricCompanyConfidential. Not to be copied, distributed, or reproduced without prior approval.

16. 16 FastWorks Everyday © General Electric 2016 Instead of starting with this…. NEW APPROACH Lean Startup 2016 ©2016GeneralElectricCompanyConfidential. Not to be copied, distributed, or reproduced without prior approval.

17. 17 FastWorks Everyday © General Electric 2016 A blank sheet of paper & set of questions Customer Discovery & Validation Lean Startup 2016 ©2016GeneralElectricCompanyConfidential. Not to be copied, distributed, or reproduced without prior approval.

18. 18 FastWorks Everyday © General Electric 2016 And we came up with this… Lean Startup 2016 ©2016GeneralElectricCompanyConfidential. Not to be copied, distributed, or reproduced without prior approval.

20. 20 FastWorks Everyday © General Electric 2016 FUSE Lean Startup 2016 ©2016GeneralElectricCompanyConfidential. Not to be copied, distributed, or reproduced without prior approval. MANUFACTURING. CROWD-POWERED.

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How to Grow New: Reframing GE FastWorks & How to Engage 250k people, Viv Goldstein, General Electric

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