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Agile Business Transformation

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In this unique presentation, Kevin will discuss his experience at Adobe, Microsoft, Spotify and now at a legal online marketplace, Avvo. In each organization, Kevin used his background in Operational Excellence to transform businesses. Kevin has created nimble innovation cultures at Adobe & Microsoft, and has used operational excellence tools to help innovation at Spotify. He will discuss how:
* How Avvo’s leadership team focuses on the larger strategy at this rapidly growing company, empowering employees to make decisions
* Articulating and communicating the strategy in a way that employees understand
* Aligning and prioritizing innovation projects at Spotify to overall business goals and objectives
* How to benefit from speed and how to operate on a larger scale.

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Agile Business Transformation

  1. 1. Agile Business Transformation Kevin Goldsmith, Chief Technology Officer @kevingoldsmith #AgileBizTrans
  2. 2. Why Agile?
  3. 3. • Bring value to customers more quickly • Adjust to competition / market changes • Improved speed of execution • Enhanced innovation velocity Benefits @kevingoldsmith #AgileBizTrans
  4. 4. • Bring value to customers more quickly • Adjust to competition / market changes • Improved speed of execution • Enhanced innovation velocity Benefits @kevingoldsmith #AgileBizTrans
  5. 5. Innovation > Efficiency
  6. 6. Innovation > Consistency
  7. 7. Ingredients of Agile Business Transformation
  8. 8. @kevingoldsmith #AgileBizTrans
  9. 9. @kevingoldsmith #AgileBizTrans Toyota Production System Highest Quality, Lowest Cost, Shortest Lead Time Just in time Continuous Flow Takt Time Pull System Jidoka Stop and notify of abnormalities Separate human work and machine work Heijunka Standardized Work Kaizen Stability
  10. 10. • Validated Learning • Innovation Accounting • BUILD-MEASURE-LEARN Lean Startup @kevingoldsmith #AgileBizTrans
  11. 11. Tenets
  12. 12. Minimize Process @kevingoldsmith #AgileBizTrans Standardize only where absolutely necessary. Standardization reduces task innovation and institutionalizes Amdahl’s law
  13. 13. Team Autonomy @kevingoldsmith #AgileBizTrans Resource teams with everything that they need to drive and execute against their goals.
  14. 14. Move Decision Making Down @kevingoldsmith #AgileBizTrans Leadership’s responsibility is to take the global business context, set strategic direction, and communicate. With that input, the larger organization can work towards strategic goals using global and local contexts.
  15. 15. Be data-driven @kevingoldsmith #AgileBizTrans Real data always wins over opinion. Data establishes true accountability.
  16. 16. Deliver Quickly and Iterate @kevingoldsmith #AgileBizTrans Delivering smaller units of value to your customers lets you learn faster, adapt to market changes, and experiment inexpensively in-market.
  17. 17. Tightly Manage WIP @kevingoldsmith #AgileBizTrans Working on fewer things means you always have to focus on the most important thing
  18. 18. Create a culture of continuous improvement @kevingoldsmith #AgileBizTrans Finding and removing impediments to execution and speed needs to be the responsibility of every member of the organization.
  19. 19. In Practice @ Avvo
  20. 20. • DUHBs • WIGs / sWIGs • Journey Teams Elements of Strategic Execution at Avvo @kevingoldsmith #AgileBizTrans
  21. 21. DUHBs
  22. 22. • Data • Understandings • Hypotheses • Bets • (Results) DUHB(R)s @kevingoldsmith #AgileBizTrans
  23. 23. • Spotify DIBBs • Kaizen Cards • Toyota A3 Problem-solving sheets DUHB Influences @kevingoldsmith #AgileBizTrans
  24. 24. • Incontrovertible • Internal product or external industry data DUHB(R) A T A @kevingoldsmith #AgileBizTrans
  25. 25. • Interpretation of the data • Must follow from the data • Semi-incontrovertible DUHB(R) N D E R S T A N D I N G S @kevingoldsmith #AgileBizTrans
  26. 26. • Based on the Understandings • Strategic interpretation of how to address the situation/problem outlined by the Data and Understandings • Debatable DUHB(R) Y P O T H E S E S @kevingoldsmith #AgileBizTrans
  27. 27. • Tactics to validate the strategic hypotheses • Can be sequential or parallel • Reasonably small scope • Debatable DUHB(R) E T S @kevingoldsmith #AgileBizTrans
  28. 28. • Documentation of the bets and their outcome • Used for future reference and to inform future DUHBs DUHB(R) E S U L T S @kevingoldsmith #AgileBizTrans
  29. 29. WIGs / sWIGs
  30. 30. • From Covey’s Four Disciplines of Execution • Wildly Important Goals • Company-level Strategy • Set by SLT yearly • WIP-limited (currently 2) WIGs @kevingoldsmith #AgileBizTrans
  31. 31. • sub-WIGs • Tactical cross-functional, cross-team projects • Scoped to 1-2 Quarters • Reviewed bi-quarterly • WIP-limited (currently 4) sWIGs @kevingoldsmith #AgileBizTrans
  32. 32. • Supported by project lead and SLT sponsor • Informed by multiple DUHBs sWIGs @kevingoldsmith #AgileBizTrans
  33. 33. Journey Teams
  34. 34. • Focused on an external (or internal) customer journey • Fully cross-functional, autonomous organization • Can drive reasonably large efforts independently Journey Teams @kevingoldsmith #AgileBizTrans
  35. 35. • Accountable to unique business metrics • Primary unit of organizational execution Journey Teams @kevingoldsmith #AgileBizTrans
  36. 36. • Minimize execution bottlenecks • Minimize coordination bottlenecks • Minimize decision-making bottlenecks • Maximize execution velocity Journey Team Goals @kevingoldsmith #AgileBizTrans
  37. 37. Thank You

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