Post on 29-Nov-2014
description
The lifespan of an S&P company is shrinking Speed to value
75% will be replaced within 15 years
1company is now replaced every 2 weeks
61years 18 years 1958 Today
Source: “Creative Destruction Whips through Corporate America” Richard Foster, Innosight Executive Briefing, Winter 2012
The lifespan of an S&P company is shrinking Speed to value
Rapid entries & exits in the S&P 500
Creative Destruction Whips through Corporate America
!!!!!!!!!!!!!!!!!!!!!!!"#$%&'($!)*+$,-.!/+-0$*!1231!4!!"
A s 2011 came to a close, virtually every news outlet in the world made note of the fact that the value of the S&P 500 hardly changed—with the index dropping 0.4% for the year. Yet while the market’s performance is always well known, what rarely gets reported is that the makeup of the index itself has been changing radically.
!
!"#$%&'(%)*#)+*&),*-&'("$%)'.$)%/."(0"(12)',,*.3"(1)+*)'()4((*%"1/+)%+536)*#)+/$)789):;;)4(3$<"!
Over the past couple��� years, a number of iconic American companies—among them Eastman Kodak (2010), Radio Shack (2011) and The New York Times (2010)—were removed from the S&P 500 Index, the barometer list of companies with the largest U.S. stock market capitalizations. ! This kind of churn happens regularly. Kodak was replaced by a cloud computing firm, while� the �NY Times �Co. was � replaced �by
����� . If removal from the S&P 500is not due to an acquis it ion, � i t �canbe a jolt that emphasizes�the urgencyof a turnaround �effort (as � with the���� Times) � or� it � can be � a �prelude�to de�listing and the threat of bankruptcy(as �with � Kodak.) �The ��removal in 2003 of American Airlines parent AMRfrom the S&P 500 was a �prelude tothe delisting of AMR on����������� its Chapter 11 declaration.
S&P 500 Churn Over the Past Decade Sample companies that have entered and exited the index since 2002
Entered the index: Exited the index: IN OUT
Speed to value
Source: “Creative Destruction Whips through Corporate America” Richard Foster, Innosight Executive Briefing, Winter 2012
So…what is slowing us down?
#1 Need for control
#1 Need for control
You become the bottleneck
Limits decision-making
Low Risk/Reward
Why is control bad for speed?
http://talkingtraffic.org/wp-content/images/stack_documents.jpg
#2 BIG design documents
#2 BIG design documents You are in the problem-solving business and
you don’t solve problems with documentation.
You solve them with elegant, efficient and sophisticated software.
#3 Closed culture
#3 Closed culture
“The Reengineering Alternative” by William Schneider
Where does your organization fit?
How do we deal with all that and accelerate our enterprise agility?
How do we accelerate our enterprise agility? #1 Engage/Inspire
The 3 factors that motivate us & how they correlate to agile practices
Daniel Pink, Drive: The Surprising Truth about What Motivates Us
How do we accelerate our enterprise agility?
Autonomy -> Develop self-organizing teams Mastery -> Foster technical excellence Purpose -> Encourage product visioning
#1 Engage/Inspire
#2 Collaborate
How do we accelerate our enterprise agility?
#1 Engage/Inspire
#2 Collaborate
No more one-person-team activities
No heavily silos between teams
No more is Business the outsider. It is the part of the team
Develop in partnership
#3 Design in public
How do we accelerate our enterprise agility?
#1 Engage/Inspire
#2 Collaborate
#3 Design in public
Got an idea for a design? Put it up on the whiteboard
Rough out the flow and tell your team about it
Put it up in a public place at the office and get feedback
Faster is better, sharing is mandatory, simple is good
#4 Fail fast. Learn faster.
http://www.alistapart.com/articles/design-criticism-creative-process
How do we accelerate our enterprise agility?
#1 Engage/Inspire
#2 Collaborate
#3 Design in public
#4 Fail fast. Learn faster.
Expect lots of mistakes…and…lots of learning.
Try something, anything, and get feedback from the “real world”
Then change it/throw it away/adapt it to the real need.
You do NOT get it right the first time
#5 Get customer feedback
How do we accelerate our enterprise agility?
#1 Engage/Inspire
#2 Collaborate
#3 Design in public
#4 Fail fast. Learn faster.
#5 Get customer feedback
Show your deliverables often to the customer
Capture their feedback
Incorporate their feedback in your deliverables
Get – and use – customer feedback
#6 Iteratively fill the gaps
How do we accelerate our enterprise agility?
#1 Engage/Inspire
#2 Collaborate
#3 Design in public
#4 Fail fast. Learn faster.
#5 Get customer feedback
#6 Iteratively fill the gaps
Develop the happy path (the simplest thing that provides business value) first.
Fill-in gaps as they are discovered and prioritized
Don’t design for every possible eventuality
You will miss stuff.
http://www.flickr.com/photos/37541410@N03/3901861703/sizes/l/
#7 Keep your team moving forward
How do we accelerate our enterprise agility?
#1 Engage/Inspire
#2 Collaborate
#3 Design in public
#4 Fail fast. Learn faster.
#5 Get customer feedback
#6 Iteratively fill the gaps
#7 Keep your team moving
Nothing kills momentum faster than long times between reviews of the team’s work.
Get your work out there sooner and more frequently.
Show progress and keep the project’s momentum moving forward
Keep moving – forward!
#8 Pick the right tools.
Keep your tools simple…
…keep them open…
…keep them moving…
How do we accelerate our enterprise agility?
#1 Engage/Inspire
#2 Collaborate
#3 Design in public
#4 Fail fast. Learn faster.
#5 Get customer feedback
#6 Iteratively fill the gaps
#7 Keep your team moving
#8 Pick the right tools
5 Tips for picking tools that deliver
Your tools should change and grow with your teams
Your tools should let your teams be different
They should help you build the right thing over following the right process
Help you deploy often and fail fast
Make real progress, not rigid plans on paper
http://www.thoughtworks-studios.com/sites/default/files/resource/ebook-challengingalm.pdf
#1 #2 #3 #4 #5
#9 Measure value
How do we accelerate our enterprise agility?
#1 Engage/Inspire
#2 Collaborate
#3 Design in public
#4 Fail fast. Learn faster.
#5 Get customer feedback
#6 Iteratively fill the gaps
#7 Keep your team moving
#8 Pick the right tools
#9 Measure value
Cost
The typical measure, the “Iron Triangle”…
Constraints
Schedule Scope
How do we accelerate our enterprise agility?
#1 Engage/Inspire
#2 Collaborate
#3 Design in public
#4 Fail fast. Learn faster.
#5 Get customer feedback
#6 Iteratively fill the gaps
#7 Keep your team moving
#8 Pick the right tools
#9 Measure value
Constraints (cost, schedule, scope)
Quality (Reliable, adaptable product)
…has changed.
Source: Jim Highsmith
Value (Releasable product)
How do we accelerate our enterprise agility?
#1 Engage/Inspire
#2 Collaborate
#3 Design in public
#4 Fail fast. Learn faster.
#5 Get customer feedback
#6 Iteratively fill the gaps
#7 Keep your team moving
#8 Pick the right tools
#9 Measure value
We must measure value -‐ what is important to our customer, and what financial benefit does this bring to our organization.
Source: Jim Highsmith
Value (Releasable product)
Constraints (cost, schedule, scope)
Quality (Reliable, adaptable product)
#10 Go from doing Agile to being agile
How do we accelerate our enterprise agility?
#1 Engage/Inspire
#2 Collaborate
#3 Design in public
#4 Fail fast. Learn faster.
#5 Get customer feedback
#6 Iteratively fill the gaps
#7 Keep your team moving
#8 Pick the right tools
#9 Measure value
#10 From doing to being
Doing Agile Being agile
Mismatched culture Supportive culture
Grow your agile team ThoughtWorks pioneered the practice of agile development. Now we’re on a mission to share that experience with forward-thinking software teams.
Learn More
See how our interactive workshops and experienced trainers can help accelerate your enterprise agility.