Lighthouse thinking (TM), Small, Simple Steps to Extraordinary Success
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The document discusses the challenges and failures associated with business transformations, emphasizing that 70-85% of such initiatives fail due to factors like the agile-business divide, excessive complexity, and ineffective core platforms. It introduces 'lighthouse thinking', a framework designed to simplify transformations by focusing on value discovery, value management, and adaptive project management. The authors advocate for small, incremental changes to operating models to enhance customer-centricity and streamline processes within organizations.
Lighthouse thinking (TM), Small, Simple Steps to Extraordinary Success
- 1. Lighthouse Thinking™ Simple Steps To Extraordinary Outcomes Fin Goulding & Haydn Shaughnessy Flow Academy June 2020
- 3. Haydn Shaughnessy ● No. 1 Thought Leader, Digital Transformation ● Award winning documentarist ● Product design pioneer ● Innovation management ● Analytics expert
- 4. Now In Our Own Company Fin Goulding Haydn Shaughnessy
- 5. What we do Fix Transformations Make Collaboration Real Broadening The Scope of Agile Coaching Leadership Mentoring
- 6. Before I Talk About Lighthouse Thinking, I Want To Pose A Question: Why Does Change Fail, Especially Transformations?
- 7. 70% Of All Business Transformations Fail 80% Of All Platform Transformations Fail And 85% Of All Digital Transformations Fail
- 8. And we believe that there are 3 key reasons why
- 9. #1 - The “Agile” IT-Business Divide
- 10. VALUE DELIVERY Agile Methods (Scrum etc) DevOps Continuous Delivery Cloud Test & Learn Enterprise Flow® The normal focus of agile
- 11. VALUE DELIVERY Agile Methods (Scrum etc) DevOps Continuous Delivery Cloud Test & Learn VALUE MANAGEMENT Portfolio Management (Adaptive PMO) Product Management Agile Risk Management Budget On Demand Enterprise Flow® AGILE The missing pieces of agile
- 12. VALUE DELIVERY Agile Methods (Scrum etc) DevOps Continuous Delivery Cloud Test & Learn VALUE MANAGEMENT Portfolio Management (Adaptive PMO) Product Management Agile Risk Management Budget On Demand VALUE DISCOVERY Market Analysis Customer Success Factors Asset Discovery Targeted Innovation Ecosystem Planning Enterprise Flow® AGILE The missing pieces of agile
- 13. VALUE DELIVERY Agile Methods (Scrum etc) DevOps Continuous Delivery Cloud Test & Learn VALUE MANAGEMENT Portfolio Management (Adaptive PMO) Product Management Agile Risk Management Budget On Demand VALUE DISCOVERY Market Analysis Customer Success Factors Asset Discovery Targeted Innovation Ecosystem Planning Enterprise Flow® BUSINESS AGILITY Real business agility
- 14. #2 - Complexity
- 15. Dave Snowden - Cynefin framework Now a meme?
- 16. We are in constant complex transformations
- 17. ● Complexity is something that we believe executives have: ○ Designed into the business because they have not understood enough about operating model design ○ Created hierarchies to suit their needs and status but not the needs of the work nor the end Customer ● The most obvious non-complex thing to do is to simplify problems or work ● And use the collective intelligence of all Employees to solve them But why not simplify?
- 18. Poor social interaction and ineffective hierarchies There is no proper resource allocation planning We don’t deliver change, we just fix problems as best we can We don’t really communicate with customers We are set up to be mediocre “Do as I say” management style Too many contractors SLT does not prioritise Lots of finger pointing between departments We don’t have a lot ofcustomer insight Management structure far too complicated No buzz Leaders don’t understand agile Too many production platforms Leaders don’t listen or trust us Takes months to get a test platform setup
- 19. #3 - Core Platforms
- 20. Business teams: ● True customer centricity ● Strong and engaging experiences ● Learning about customers as they interact with us ● Highly adaptive to their needs IT teams: ● Process light ● Fully automated ● Built out of microservices ● Based in the cloud The ideal platform scenario
- 21. The Core Platform Problem Offline bricks and mortar experiences with strong face to face relationships Full digital experience for customers and learning for the enterprise Piecemeal legacy estate with a focus on single view of the customer Digital front end or app but sits on the legacy estate Decrease in relationship quality Increase in complexity and cost Good balance of cost, revenue and heuristics Seeking Customer Relationships At Scale
- 22. Core platforms are the single biggest factor in transformational failures
- 23. Because transformations never design or arrive at the right target operating model for a company
- 24. What is an Operating Model?
- 25. An Operating Model is the technical infrastructure, management systems, hierarchy and relationships that allows us to deliver value
- 26. Inbound Logistics Operations Outbound Logistics Service Sales And Marketing Firm Infrastructure Human Resources Technical Development Procurement Primary Activities Support Activities From: Michael Porter Porter operating model
- 27. Most transformations are about moving away from the Porter Model Often to the Spotify Model or SAFe etc. What we really need is a “Generative Model”
- 28. And Lighthouse Thinking is the set of concepts and actions that allow you to generate the right operating model for your context
- 29. VALUE DISCOVERY Enterprise Flow® VALUE DISCOVERY: Value Discovery is underpinned by the CATE Value Cycle and takes an holistic view of customer journey mapping. Remembering that you need to serve Customers but analyse markets
- 30. VALUE DISCOVERY VALUE MANAGEMENT Enterprise Flow® VALUE MANAGEMENT: Executives are key to effective portfolio management and an adaptive PMO is best supported by the adaptive financing of projects and persistent product teams. However, most PMO’s are about volume of work not value
- 31. VALUE DISCOVERY VALUE MANAGEMENT VALUE DELIVERY Enterprise Flow® VALUE DELIVERY: There are no wrong agile methods (even scaled ones), they are just poorly implemented and lack Value Discovery and Value Management techniques. Hence many IT teams become very adept at delivering low value work at pace
- 32. LEARNING MECHANISMS VALUE DISCOVERY VALUE MANAGEMENT VALUE DELIVERY Enterprise Flow® LEARNING MECHANISMS: Visual techniques, coupled with collective intelligence, fuels group learning. A continuous learning organisation is more adaptive and thus test & learn cycles built into all development activity will aid new product discovery
- 33. LEARNING MECHANISMS VALUE DISCOVERY VALUE MANAGEMENT CORE CAPABILITIES VALUE DELIVERY Enterprise Flow® CORE CAPABILITIES: Changes in operating models need to be supported by new skills and not necessarily new people. HR teams are not ready for this and hence companies see some roles as a cost rather than a value (e.g. Agile Coaches)
- 34. LEARNING MECHANISMS VALUE DISCOVERY VALUE MANAGEMENT CORE CAPABILITIES VALUE DELIVERY SECURITY Enterprise Flow® SECURITY: A focus on all aspects of security is key to the modern enterprise and is best served via agile techniques rather than being sees as a drag factor. In fact, the organisations that implement effective Cyber Agility will be the most successful
- 35. LEARNING MECHANISMS VALUE DISCOVERY VALUE MANAGEMENT CORE CAPABILITIES VALUE DELIVERY SECURITY ECOSYSTEM CUSTOMERS PARTNERS Enterprise Flow® ECOSYSTEMS: Companies who lead with ecosystem thinking have become hugely successful and this segues perfectly with organisations that wish to move from a transactional model to a relationship model in its dealings with customers
- 36. LEARNING MECHANISMS VALUE DISCOVERY CORE PLATFORMS VALUE MANAGEMENT CORE CAPABILITIES VALUE DELIVERY SECURITY ECOSYSTEM CUSTOMERS PARTNERS Enterprise Flow® CORE PLATFORMS: The choice of technology systems that a company buys or builds has a profound impact on their operating procedures. But all too often than not, companies allow their core platforms to become “legacy”
- 37. How do I start to transform an Operating Model?
- 38. TRANSFORMATIONSPRINT Enterprise Flow® TRANSFORMATION SPRINTS: Take approximately 3 weeks, involves employee interviews at all levels and information synthesis in order to define the current state of an organisation, its dysfunction, cultural issues and then sets out a small steps strategy to redesign the operating model
- 39. TRANSFORMATIONSPRINT Enterprise Flow® LIGHTHOUSE PROJECT: Is the first of the small steps strategy and is a way of simplifying problems, projects, products or transformations that have become too complex. It allows you to scale-down the challenge in order to skill-up the team and regenerate your operating model LIGHTHOUSEPROJECT
- 40. LIGHTHOUSEPROJECT TRANSFORMATIONSPRINT LEARNING MECHANISMS VALUE DISCOVERY CORE PLATFORMS VALUE MANAGEMENT CORE CAPABILITIES VALUE DELIVERY SECURITY ECOSYSTEM CUSTOMERS PARTNERS Lighthouse Thinking Generates The Flow Operating Model A Generative Framework for Remodelling A Business (Lighthouse Thinking and the Flow Operating Model are both trademarked)
- 41. Where does the lighthouse fit into agile?
- 42. GOALS Customer Innovation Wall Executive Portfolio Wall Projects Product Development Future Of Business Team Scrum or Kanban Wall LIVE Market Segmentation GOALS Flow: A Lighthouse Transformation Sprints Lighthouse Thinking Go To Market Planning Dependency Analysis & Work Design
- 43. ● Scaling a big problem down into smaller units of work in order to skill-up the team ● Building around an innovation in customer experience ● Creating or using a new platform as the starting point for the new operating model ● Delivering through new ways to work that radically improve social interaction and collective intelligence ● And educate leaders on how to remodel the firm by taking small steps And the key ingredients are:
- 44. Who will lead the change?
- 45. Agile coaches
- 46. Coaches who want to broaden their experience from IT into the Business
- 47. Helping the business to climb the curve
- 48. Lighthouse thinking can even help you to fix or implement SAFe!
- 49. Lighthouse thinking takeaways ● An agile business needs more than just IT agile methods ● It has to become more skilled at creating customer value ● Complexity is a killer and simplification isn’t as difficult as one is lead to believe ● Core platforms are the major failure point in transformations ● Taking a lighthouse approach and scaling-down to skill up makes change and transformational change manageable
- 50. Thanks! haydn@flow-academy.org fin@flow-academy.org Feel free to contact us