Digital TransformationChallenge for Change – Call for Capability

A Kanban Perspective

Mike LeberAgile & Lean Coach

Twitter: @michael_leber

http://agileexperts.at

MikeLeber

Consulting,Training,CoachingforTheLearningOrganization

Adaptive Organizations - Leadership & Change

• ExecutiveConsultant• AgileandSystemic Coach• Accredited KanbanTrainer(AKT)• Entrepreneur• SpeakerandCommunityFacilitator

http://agileexperts.attwitter: @michael_leber

Austria

DigitalLeadershipJourney

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Digitalization - What it means

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Digitalization – What it really means?

Market Trends• Low transaction cost

for creating new services, apps

• Technologies, Platforms

• Software basically part of every product

• Active Products (IoT)• Data, data, data

Pressure for Organizations• Need to decrease

internal transaction cost

• Think connected (Marketing, Product Management, Production, CRM, Maintenance etc.)

• IT part of business• Sense & Respond

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Memories about Revolutions

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C-Level Calling

Truth of reality(maybe painful)

Ignorance ofIllusion

Tried Agile before?Change success rate?

Hip new methods?Re-organization?

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Understanding the System

W.E. Deming„...the system that people work in and the interaction with people may account for 90 or 95 percent of performance....“

System Capabilties

- Sensing business opportunities- Understanding optionality- Making strategic & tactical decisions

about portfolio- Balancing risk- Understanding commitment- Driving delivery (Flow)- Acting upon issues- Learning & Improving

• What does our System need?• What do we observe?• Is it fit enough for Purpose?

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NiklasModig,PärÄhlström:„ThisisLean“

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Complex Network of ServicesDem

and

ObservedCapability

Dem

and

Dem

and

ObservedCapability

ObservedCapability

Graphic byDavid J. Anderson

and Lean Kanban University

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Complex Network of ServicesDem

and

ObservedCapability

Dem

and

Dem

and

ObservedCapability

ObservedCapability

Graphic byDavid J. Anderson

Kanban Agendas – Understanding Needs of those inside the SystemSurvivability• Lead the business (strategy and positioning)• Confidence they can deliver on strategic goals• Legacy (long term survival)

Service-Orientation• Up-managing – answer the hard questions with confidence• Down-managing – make difficult decisions with confidence

Sustainability• Relief from abusive environment• Overburdened• Quality suffers• Low job satisfaction

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Understanding, Improving, Trust

UnderstandingCapability

UnderstandingRisk

UnderstandingImprovementOpportunities

• Current Process• Flow Efficiency• Lead time as distribution

(outliers, risk, etc)• Blockers• Liquidity

• Limiting WIP• Adjusting Policies• Service Classes

Feedback Loopson all Levels

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Social Capital enabling Up-Stream Collaboration

TheAlchemyofGrowthbyMerhdadBaghai,StephenColey,andDavidWhite,1999

TypicalChallenges- ToomuchFocusonH1§ FocusonShareholderValueandQuickROI§ BonusPayments§ BudgetingProcess§ Exerimentsnotwelcome§ Onlycurrentsegments§ Nolongertermimpact

Today‘srevenuegrowth+tomorrow‘scashflow

Optionsonfuturehigh-growthbusinesses

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Social Capital enabling Up-Stream Collaboration

TheAlchemyofGrowthbyMerhdadBaghai,StephenColey,andDavidWhite,1999

TypicalChallenges- ToomuchFocusonH1§ FocusonShareholderValueandQuickROI§ BonusPayments§ BudgetingProcess§ Exerimentsnotwelcome§ Onlycurrentsegments§ Nolongertermimpact

Today‘srevenuegrowth+tomorrow‘scashflow

Optionsonfuturehigh-growthbusinesses

David J. Anderson

@AgileExperts | http://agileexperts.at

Existing Biz ModelsNew Biz Models

Leadership

Behaviors Values

Structures

ExplorationStrategy

Innovation IdeasPortfolio

ExploitationOptions

BalanceCommitment

Evolving Organizational Capabilities

§ FlowefficiencyandSlackTimeoverCapacityUtilization§ ValidatedLearningoverDeliverablesQuantity§ UnderstandingStakeholdersandBusinessRiskoverBlaming§ RiskAwareDecisionsoverHIPPOEnforcement§ OrganizationalLiquidityoverScalingupaBusiness

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SummaryDigital Transformation – Reframe the Question• It is not about (one-time) transformation• Understand the System• Understand Capabilties & Purpose first• Evolutionary Growth of fitness for adapting in fast

changing economy

Know Your Agendas• Decisions about Portfolio, Products,

Deliverables that stick• Clarity, Trust• Experimentation, Learning

No call for heroic acts of leadership