TECHNOLOGY IS NOT ENOUGH

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@barryoreilly #LeanEnterprise @jemolesky

CREATIVE DESTRUCTION

2http://www.technologyreview.com/view/519226/technology-is-wiping-out-companies-faster-than-ever/

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PREDICTIVE VS COMPLEX

https://www.youtube.com/watch?v=U39RMUzCjiU

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MCKINSEY GLOBAL DIGITAL SURVEY 2014

Published June 2014http://www.mckinsey.com/insights/business_technology/The_digital_tippingbusiness_point_McKinsey_Global_Survey_results

ORGANIZATION STRUCTUREDECISION MAKINGTALENT

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WHO’S IDEA WAS THIS?

6Purple Flying Hippo, http://earcl01.deviantart.com

Highest Paid Persons Opinion

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NETWORKED COMMUNITY

Peter Hinssen, The Network Always Wins

8http://www.whataboutwatermelon.com

9http://www.whataboutwatermelon.com

10http://www.whataboutwatermelon.com

HOW DO WE LEAD AND IMPROVE DECISIONS IN NETWORKS?

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Principle of Mission

HOW DO WE CHANGE CULTURE?

12Edgar Schein, Organization Culture and Leadership

LEARNING ANXIETY

SURVIVAL ANXIETY

HOW DO WE MOTIVATE AND ENGAGE PEOPLE?

13Dan Pink, Drive

AUTONOMY MASTERY

PURPOSE

INFLEXIBLE BUSINESS PROCESSES

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STRATEGY

EXECUTION

ALIGNMENT

MICROMANAGEMENT

CONTROL

ACCOUNTABLE FOR TARGET &

BUDGET

Compliance rulesRisk models

Quality controlsInspections

Balanced scorecards

Target and

incentivesBudget

contracts

The Control Bureaucracy10-20% of costs

Adapted from:http://www.bbrt.org/beyond-budgeting/bb-problem.html

TARGETS AND INCENTIVES CAN HAVE UNINTENDED OUTCOMES

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Executive Team

Support Services Teams

Strategy, Finance, HRMarketing, IT, Supply chain,

Product development

Cross-functional Value center Customers

Customers

Customers

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CLEAR ACCOUNTABILITY FOR SELF MANAGED TEAMS

Adapted from:http://www.bbrt.org/beyond-budgeting/bb-vision.html

Principle of Mission

Cross-functional Value center

Cross-functional Value center

UK GOVERNMENT CHALLENGES

British National Health Service, had a program to computerized patient records.

Projected to cost £2.3bn in 2002 and Despite the cancellation in 2011, it is expected to end up costing over £10bn.

At the end of 2013, only 55% of the population had their medical records in the system.

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RACE ONLINE REPORT 2012

For me, the acid test for Directgov is whether it can empower, and make life simpler for, citizens and at the same time allow government to turn other things off.

- Martha Lane Fox, UK Digital Champion

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GOV.UK ALPHA DESIGN PRINCIPLES

1.Don’t slow down delivery

2.Decision when they are need at the right level

3.Do it with the right people

4.Go see for yourself

5.Only do it if it adds value

6.Trust and verify

23https://digitaltransformation.blog.gov.uk/2014/06/24/governance-principles/

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Big IT and big failure have stalked government for too long; that is why

this government is radically rethinking the way it does business.

- Francis Maude, Cabinet Office

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OTHERS NOW STARTING TO FOLLOW SUIT

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INABILITY TO ADOPT AN EXPERIMENTATION MINDSET

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Doubt is not a pleasant condition,

but certainty is absurd.

- Voltaire

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32Online Experimentation at Microsoft, http://ai.stanford.edu/~ronnyk/ExPThinkWeek2009Public.pdf

33Microsoft

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REDUCE UNCERTAINTY WITH EXPERIMENTS

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14 people

£261,000

12 weeks

PRINCIPLE OF OPTIONALITY

38Nassim Nicholas Taleb, Antifragile

WHAT CAN WE DO TOMORROW?

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Leadership, Strategy and Tactics

BE CLEAR AND SHARE THE PRINCIPLE OF MISSION

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Executive Team

Principle of Mission

CONSIDER END TO END FLOW OF VALUE

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GET COMFORTABLE WITH UNCERTAINTY

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Define boundaries

scopeinvestment

risk level

CONCLUSION

1) BE CLEAR AND SHARE THE PRINCIPLE OF MISSION

2) CONSIDER END TO END FLOW OF VALUE

3) GET COMFORTABLE WITH UNCERTAINTY

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