Creating a Lean & Agile Enterprise with Continuous Innovation
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Exploring the Lean Product Lifecycle for Enterprise innovation and product management using Agile and Lean Startup Practices. How to capture and scale ideas across businesses.
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Creating a Lean & Agile Enterprise with Continuous Innovation
- 1. CREATING A LEAN & AGILE ENTERPRISE CRAIG STRONG
- 2. craig@strongandagile.co.uk @craigstrong uk.linkedin.com/in/craigstrong/ Craig Strong Chief Technology Officer www.LeanProductLifecycle.com
- 4. UNCERTAINTY—IN THE ECONOMY, SOCIETY, POLITICS— HAS BECOME SO GREAT AS TO RENDER FUTILE, IF NOT COUNTERPRODUCTIVE, THE KIND OF PLANNING MOST COMPANIES STILL PRACTICE: FORECASTING BASED ON PROBABILITIES Peter Drucker THE NEED FOR ADAPTIVE MANAGEMENT
- 6. ANNUAL PERFORMANCE TRAP Jeremy Hope, 2003. Beyond Budgeting: How Managers Can Break Free from the Annual Performance Trap. Edition. Harvard Business Review Press.
- 7. TRADITIONAL MODELS ARE CHANGING
- 8. ENTERPRISE INVESTMENT STRATEGIES High Probability Low Probability Low Impact Most Organisations High Impact Start Ups
- 9. INNOVATION FUNNELS LIMITED IN ENTERPRISES - GOVERNANCE New Ideas Products Long development time 18 months+ Bottleneck of ideas
- 11. “THE LEAN STARTUP METHOD TEACHES YOU HOW TO DRIVE A STARTUP-HOW TO STEER, WHEN TO TURN, AND WHEN TO PERSEVERE-AND GROW A BUSINESS WITH MAXIMUM ACCELERATION.” http://theleanstartup.com/principles LEAN STARTUP
- 15. CONTEXT IS EVERYTHING! - CYNEFIN
- 16. LEAN PRODUCT LIFECYCLE BUILDING AN INNOVATIVE ENTERPRISE
- 17. TRANSFORMATION AREAS 1.Lean Product Lifecycle 2.Product Portfolio Management 3.Annual Budgeting 4.Communities 5.Training & Coaching
- 18. PRODUCT LIFECYCLE FRAMEWORK - STAGE QUESTIONS Can you identify a core user problem in a target market? Are there real customers who get value from your concept? Is there a viable business model for this product? Can you demonstrate Product/ Market Fit or validated business model? How fast are you growing the business at scale? Are you continuing to deliver outcomes to a broader user set? Are you delivering revenue and outcomes while reducing costs? What residual value can be gleaned from the business? Idea Explore Validate Grow Sustain Retire
- 19. SEARCHING & EXECUTING Status Before Market-Fit After Market-Fit Focus Searching for a Business Model Executing Against Business Models Duration Days Weeks Months <1 Year Years Metrics Customer Discovery, Innovation Accounting, Lean Analytics, Pirate Metrics Revenues, Profit-Margins, ROI, ARR, NPV Key Activities Small Cross-Functional Teams, Safe To Fail/Learn, Scrum/Kanban, Hypotheses Driven Design, Lean Startup -Complex/ Emergence, Devops Delivery Frameworks, Scrum/Kanban, Portfolio, Growth Hypotheses Reviews, Cross-Departmental Performance, Growth Performance Mgmt, Devops
- 23. LEAN GOVERNANCE
- 24. MORE IDEAS, MORE BETS, MORE EXPERIMENTATION Not all the ideas survive but all the learnings are recorded All the ideas are quickly captured and tested One to three months turnaround
- 25. LOTS OF SMALL BETS
- 27. LEAN EMERGENT GOVERNANCE PRODUCT COUNCILS PORTFOLIO MANAGEMENT & PERFORMANCE INTERNAL SKILLS MARKETPLACE ADAPTIVE BUDGETING KNOWLEDGE COMMUNITIES 1/4 SCALING FRAMEWORKSDESIGN THINKING/LEAN STARTUP AGILE PRACTICES 1/4
- 29. GROWTH HYPOTHESES - RELATIVE PERFORMANCE Quarterly Hypotheses Product Metrics Strategic Growth Hypotheses Legal
- 30. CULTURE & TEAMS
- 31. LEAN & AGILE - NOT JUST SOFTWARE TEAMS FINANCE HR LEGAL DEV TEAM MARKETING SALES WAGILE
- 32. CROSS-FUNCTIONAL KNOWLEDGE NETWORK - LEARNING ORGANISATION * Agile and Lean feed in at a Principles level Design Lead has been identified Slice is engaged with the lifecycle Everything is wrapped in Principles & Values, Governance and Quality
- 33. LEARNING & COLLABORATIVE COMMUNITIES Today Tomorrow Decentralized Network Distributed Network Product team has better access to all parts of the business Product team has restricted access to other parts of the business which can hinder or slow progress
- 34. CONTINUOUSLY IMPROVING - BE COMFORTABLE WITH DIFFERENCE Open Source Product Lifecycle Criteria V1.0 Learning about practice Common extensions can be incorporated into later versions Open Collaborative Learning Community
- 36. TRAINING & COMMUNITY Lean Startup Agile Design Thinking Beyond Budgeting Customer Interviews Minimal Viable Experiments MVP’s Lean Analytics Growth Hacking Hypotheses Business Model Experimentation Value Proposition Management Quality Community Contribution and More….
- 37. LEAN TRANSFORMATION TAKEAWAYS 1. AGILE/LEAN IS AN ORGANISATIONAL MINDSET 2. CONTEXT IS EVERYTHING! 3. SEARCHING ISN’T THE SAME AS EXECUTING 4. NURTURE COMMUNITIES AND KNOWLEDGE 5. BE COMFORTABLE WITH DIFFERENCE (HEURISTICS VS PROCESS)