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thanks very much for joining us on this
I feel frustration pretty much every
time I walk into most organizations in
this world and see not only the
engagement of people in those
organizations but also the systems of
work that have been built around them
people are actually inhibited from
achieving great outcomes on a daily
basis they are locked in these systems
that doesn't allow them to achieve their
potential nevermind enjoy the things
that they're doing and it's a pandemic
it's across the world it's everywhere so
really one of the inspirations for me
and Jaz and Joanne who we were writing
lean enterprise was to show a different
way to show what it could be like to
work in a great organization what it is
like to work in a high-performance team
and then give people the tools and the
methods so they can actually create that
environment for themselves in this talk
I'm going to talk about what Lean
Enterprise in action looks like on this
track we'll have you know Jess and
Nicole are going to talk about some of
the measures and the science behind how
you achieve high performance but I
wanted to show you some of the practical
steps that when you leave here today you
can start to apply them in your
organization and start to improve start
to get better from tomorrow and the most
important aspect of all this is really
that we need to become unreimbursed
learning and it's one of the biggest
challenges that most organizations have
we are going to have to unlearn all the
behaviors all the methods we've been
taught almost from its moment we've
entered society about ways to change how
we can work better in a time of drastic
it's the learners who inherit the future
they learned usually find themselves
equipped to live in the world and at no
longer exists this is Eric Hoffer a
philosopher a shipbuilder actually who
understood and could see that in a time
of high philosophy I've change that we
always have to learn we have to keep
understanding we have to stick keep
growing we have to keep experimenting to
get better to move with the times the
moment you stand still you're already
dead and this is where the concept of
creative destruction has become so
popular I work with a lot of Fortune 500
companies actually they call me all the
time because this is the state of the
world that they're in 70 almost 57% of
them that were on the list 20 years ago
are no longer there
they're absolutely disappearing and a
worrying part is that most of them even
if they have a business model that's in
operation believe that they're going to
grow their business by cost reduction
cost reduction only 27% of them have
initiatives where they plan to grow by
new product development actually
introducing new things into their
business so you can even just look at
this pattern and say do these companies
look like they want to learn or do they
just want to make the most of what
they've got are they naturally trying to
defend what they have rather than try
and continuously grow continuously
evolved you think about the
organizations that are actually stepping
onto the fortune 500 and accelerating
they're constantly launching new
products are constantly trying new
things and then I get to talk to the
fortune 500 leaders and what do you
think they say to me
well what do you think well it's okay
we've got a mobile app we're gonna save
ourselves and then I have to say well
sorry you've probably not heard about
the accelerated pages program from
Google we're content now just gets
injected straight into the search
results so apps don't matter anymore
apps are dead and yet there goes there
digital transformation program gone so
they don't understand that digital is
about content and empowering people to
find new ways to experiment to deliver
experiences to customers is what they
should be thinking about not I've got a
mobile app it's going to save the
business meanwhile back at base this is
what everybody's world unfortunately
looks like cubicle farms these aren't a
server stocks unfortunate these are
where people work this is really
collaborate on a daily basis and share
information and context about what's
happening in their organization and the
very lucky few actually dream about this
place the shining light that they can
actually get asked the hell out of here
unfortunately most people are still
trapped in these farms where people are
born or grown not born and this is
really like the concept about outside in
most organizations still reflect the way
that they've designed themselves
internally out to their customers think
about if you ring up a bank and you ask
simple thing like I'd like to get a
mortgage you be directed to the mortgage
department and then as a customer you're
like oh great I just like to check my
balance to see if I could actually pay a
mortgage repayment what happens well I'm
sorry sir or madam we can't help you
with that you need to talk to a
different person I'm just going to
transfer you to those people I can't
help you at that issue I'm just going to
send you over here did you did and
suddenly you're transferred the call
drops out and you're gone failure
failure demand on your organization from
a customer's perspective you didn't
solve my problem you forced me to work
in a process designed to suit you not me
why would I come back here again I don't
care if you've got a mobile app but this
is what people do this is how
organisations reflect themselves in the
world then you're somebody inside that
organization now I love to look at this
Gallup survey all the time this is like
a real-time feed they publish it every
day about how engaged people are in work
so it says today that roughly 32 percent
of people are engaged in their work just
so you know engaged is the second worst
measure the best measure is highly in
aged in their work only 13% of people in
the planet in the US are actually
actively engaged in their work so it
gives you a sense that 70 percent of the
workforce out there are disempowered
they're working within a system that
they feel they have no control over and
yet they have to go in there every day
and they're measured by some fantastic
KPIs and they get rewarded if they do
their job and well done and but they're
totally disengaged they're not actively
using their brains they're not problem
solving they can never achieve high
performance because they're not being
challenged and what they seek to do and
this is even more craziness so I you
know I love looking at different reports
and research out there and there's a
great report by Bane that said they went
around to leave your executives in their
companies and they asked them you know
how well do you think you're servicing
your customers needs out there
how happy are your customers with you
know the services you're providing to
them group of executives and then they
ask customers what do you think what do
you think the scores were what what do
think about how well they're servicing
their customers needs out of 100% how
many what kind of numbers do you think
the exec sent 70 yeah any any higher or
not any takers any lower 85 yeah great
what about how well customers felt that
they thought executives and leadership
were doing their job in their
30 35 look at this 82 8 so next time you
hear 10x that is the gap in knowledge of
understanding about how well customers
believe organizations are servicing
their needs compared to the boardroom
compared to the people walking out in
the stores frightening so this is the
kind of thing that we have to try and
address we have to get back in the mode
of learning we have to get back in the
mode of thinking of testing and
I think we need to revisit this idea of
change to this I experiment therefore I
learn an experimentation needs to start
happening across the entire business so
everyone can start addressing this
knowledge gap the bias that they have
and start to address it to closest and
then start to make progress about
delivering excellent outcomes to close
this delivery gap so what I'm going to
talk about are three different ways to
address that how to explore those ideas
how to accelerate it and transform your
business and then I'm going to show you
about how I'm dealing that with some of
the largest organizations on the planet
and the first one is about exploring and
this is one of the biggest problems in
most organizations how difficult is it
to get a new initiative off the ground
how many people have good ideas here
about how they think they could change
their business pretty much everyone in
the room has their hand up who feels
that they have a chance to actually get
executed five people in the room massive
gaps again so really what I start to do
is get people to change the way that
they work and to stop worrying about
writing and start learning what does our
customers actually want and how do we do
and the most important people to do that
in some respects are the leaders of the
organization and this is me working with
one of the largest retailers in the UK
where I took their executive team in a
room to start getting them figuring out
cross-functionally across our entire
department what are the different
aspects that's gonna make them
successful as a business most of these
people sat in the room with like hi my
name is Mary I work in engineering hi my
been in the business 10 years each and
we've never met each other leaders in a
large organization never spending time
in a room together to understand what
each are about and how they can build
empathy before and then you give them
simple tools like business model
canvasses where they can quickly map out
ideas and start to get to the point of
what are the challenges that we need to
how can our ideas work how would they
work in the context of a business and
how can we start to learn together to
build context about what we're about the
quickest thing that you see when people
start to be in this environment is they
become energized are starting to
collaborate with one another in ways
that they never learned before and
they're quickly mapping out these ideas
but resilient enough that when I could
walk to CEO at the into the room at the
end of the day that quickly they can
start to engage in these ideas quickly
they can start to give feedback about
how the context works then I get them to
start formulating hypotheses when you
want to start testing ideas don't go to
pains requirements anymore go with
problems and frame them in the terms of
a hypothesis so what I get the
executives do is to start mapping these
out a framework that they can capture a
hypothesis about what they want to test
what they want to learn and then come up
with a way to exercise that test to
build something fast to give some
feedback that they can work on it in a
collaborative way
that they can start to sense make these
ideas and use cross-functional ability
to prioritize and sort where they want
understand the benefits the costs of
where they can do that now this is the
very crux of what some people would call
the Lean Startup movement this was the
idea about how can we quickly build
measure test learn what's the most
important thing to us and the goal was
not necessarily to build something to
come up with an amazing measure and then
test it it's actually to find out what
do you want to learn first and then how
quickly can you get through an
experimental loop to create that
knowledge and data to inform what you
should be doing next and this is why I
get the execs
to start getting out of their comfort
zone get out of the office the
innovation doesn't happen in a room they
need to go and see what's happening they
where these ideas are get them in front
of customers and actually start to test
them and get feedback about what's
happening the only way you can break
someone's mental model of the world you
cannot talk to them about how they need
to change
they have to experience it for
themselves so when they have that great
idea for a mobile app that no longer
matters and they need to find out if
it's a good idea or not the quickest
thing you can do is help them bring
example of that to life and test it with
a real customer to get feedback because
then only then will they understand or
learn when someone else not you but a
customer tells them that they don't
understand the idea that they need to
evolve it or they should kill it that's
what breaks their mental model of the
world and allows them to gain new
knowledge and new perspective and starts
to close that delivery gap and that's
why I keep saying to them stop talking
about these ideas start testing them
bring them to the people who are
actually meant to use them super
expensive experiment here this is a
mobile app with a USB camera a peg and a
rubber band sitting in a coffee shop
talking to customers with leaders
designing and testing their ideas and
getting feedback about whether they work
or they don't then bringing that
feedback back into the team making it
visible and sharing that what things
work where there are expectations were
misaligned how did they change that we
put these arrows on things to say this
work this didn't we need to address that
quite quickly you're iterating really
fast and these are big visual areas
where people could see what's happening
and share and socialize what they're
learning similarly then you start to
bake them into what you're going to do
next so as a result of this information
how are we going to adapt and change our
behavior based on what we've learned
what are we going to do differently and
getting those in front of customers are
from customers helps you formulate what
you want to do next and it's just isn't
about the executives trying new things
it's about things you can start to do to
source information and close your
knowledge gaps and delivery across the
organization one of the things we were
doing with this company you know
basically the Travelocity international
was getting the team's then started to
put up all the stuff that they were
working on outside their team areas
actual prototypes and working products
that people could come up and actually
see what they're working on they had an
a basically an anonymous feedback
session where you'd have a box right
beside the machine so at any stage any
person in the organization wouldn't have
to even come over and ask them can I see
that seven hundred page document of
requirements that you're working on or
you can just play around with the new
product that we've got and give us
feedback as you go share learnings about
what's working and drive higher
engagement across the teams about what's
actually going on the other thing I
started to do is give people these idea
cards so people have ideas all the time
when they're walking around the
organization at any stage and what I
wanted was quick ways that they could
start to capture and sketch those ideas
out quickly about opportunities that
they saw to improve in their entire
organization could be a product it could
be a process it could be a tool and
quite quickly people are sketching and
building these these ideas up and you're
getting innovation coming from across
the entire organization what do you do
with that well then you start to make
that visible so what we did is set up a
team area where every week people could
continually add their ideas to a backlog
of ideas about how we could improve
either the product the process or the
people about how the company would work
and the team would leadership team would
meet here every week and go through the
different ideas and prioritize one or
two that they want to focus on move
those through that they might have to
collapse and capture some data and test
them but ultimately either brings them
to to experiment and run tests or
potential products that they might
release and validate them fast quick
feedback where people can learn what's
working and what's not but also
socialize that across the entire
business so people start to see things
happening because the new future of
organizations is not hiding information
in SharePoint where everybody goes to
use all the time it's actually starting
to make the information aware make it
visible to people so when I work with
teams this is what their team areas look
this is the heartbeat of what's
happening within a team they outlined
the aspirational vision of what they're
trying to achieve at or what's the goals
what are the hypotheses of the ideas
that they're trying to test and get them
in front of customers then what are the
type of design experiments that they're
going to run now you can even see when
you look at this look at the fidelity of
the different design experiments across
we've got hired we've tested it many
times we've iterated a few over to this
side where it's literally pieces of
paper where someone's had a smart idea
over lunch sketched it on the back of a
notepad and just stuck it up there as a
potential test things that they're
learning as a result of that and that
starts to drive the map or the picture
of how their product that their story
fits together but before they do all
these things they have to define a
measure of success they have to have the
data to show and validate how they're
going to run that experiment and what
they're going to learn now when you
start to introduce these practices and
processes into organizations they change
because you're changing the way people
work in order to change culture you have
to change people's behaviors the way you
change people's behaviors is you changed
a system of work on which they operate
within you create let them design a
system that they're engaged in that
they're happy in and they can start to
achieve based on what they know better
outcomes and you only have to look at
the kind of results and numbers that you
get when you start to work with these
organizations being able to cut the
cycle time down from eight weeks to 11
minutes about how quickly you can start
to test your ideas means that you can
achieve great things you start to double
conversion amazing total transaction
value going up by over 500% and the CTO
of your organization saying this is
amazing this is the way that we want our
teams to work in the future and yet
there's so many bits inhibiting us from
doing that when you unleash the creative
capability of people when you create a
system of work where they can experiment
to learn about what is best for their
customers with the customers these are
the kind of outcomes you can achieve so
it's interesting when you're exploring
ideas but how do you start to accelerate
the way teams work and understand as a
group how did they start to design that
system of work so Takashi Ono had a
great statement about every time he
walked in the door and Toyota and he
understood that people were deemed to
failure without daily destruction of the
various preconceptions that they have of
the world how many times have you walked
into a company and asked why don't we
try this and the response is but we've
always done it that way
that's the insert company name here way
by definition you are saying you are not
open to change you are not open to
innovation when you make those types of
statements and what they understood a
Toyota is that they needed a scientific
and routine to coordinate how they run
experiments on a daily basis so they
could learn to see again see from a
customer's perspective as they look into
the company what did they expect what
did they want to learn now when people
start to learn new techniques it's
important that you deliberately practice
these things you can't just wake up in
the morning and start innovating people
need a simple method that they can start
to work within and the best method that
we know to gain new knowledge to work in
complex domain is the scientific method
and what you've seen obviously in the
Lean Startup is the idea of build
measure learn but what Toyota were doing
before that was a method that they
called the improvement kata now a kata
is the idea of a practice routine that
you learn continuously so a good example
is if you were going to learn an
instrument first of all you start off by
learning the basic chords gives you an
ability to have a routine about how you
can transition between A to C to D to
play pretty much every people
seong there ever was to switch the order
but it gives you the building blocks
that once you can do the chords you can
start to experiment and improve and mix
those chords in different ways right
through to the point where you're
actually habitually practicing these
things and you can just react some
people would say that's what jazz is
about but you know I have a different
opinion but the idea with the
improvement counter is that the teams
understood that they needed a way to
understand a challenge or direction that
they wanted to shoot for understand
their current state where they were a
target state that they wanted to try and
achieve and then create experiments or
ideas about how they could move towards
the target condition now this is quite
an interesting step because when people
look at these numbers like current
condition target condition when I say
the word target to you how do you feel
do you feel excited do you feel like
you're already under observation these
are the things that we have been taught
that are fundamentally flawed about
behaviors in large organizations that
are holding us back and I'm going to
show you why because that's not the
purpose and that's not how they're
treated in Toyota so one of the first
things I do in the exact team is get
them to map out the direction where they
want to go and I use this nice mat a
technique called future backwards has
anyone ever used this so what I get them
to do is get a cross-functional group of
leaders sit them down and say I want you
to plot at a directory for a direction
that you'd love the company to go in in
12 to 18 months time plotted all the
great things that could be happening
and then on the lower trajectory put
down all the worst things that could
potentially happen so I get people start
thinking about extremes extremely great
places stretches that we'd like to get
to as well as where we wouldn't like to
get to and it starts to get people
thinking differently but also I get them
to think about outside in from a
customer's perspective looking at your
organization what are the great
experience you could be delivering for
them not that it's a sales job or a
marketing job or an OPS job to fix but
get them thinking about these things and
start to see a business how customer
sees your business now one of the other
tools that's really important and really
helpful with this is value stream
mapping so this is an example of a value
stream that I did for a company called
it did this about five years ago for
them when they wanted to understand from
idea until launch what are all the steps
involved in how they get ideas out to
customers not necessarily their
deployment processes but actually the
process that they use what are all the
collaboration points across the
organization of make this happen and the
idea what value streams are it's a tool
to give you an end-to-end perspective
about what's involved in bringing things
live and this isn't anyone's department
that's responsible for these steps it's
about building that shared understanding
across the entire group so people start
to see it and you look at the steps
involved and what is the key metrics
that are important to reduce the cycle
time ie the speed from one end to the
other different steps along the way like
processing time how long does it take to
be processed at that stage the elapsed
time so from when a piece of work comes
in until it's handed over including the
processing time and the percentage
occurs and complete and why that's most
important is it starts to highlight what
rework is happening in your company the
higher amount of rework you have it
means you're creating failure demand
it's not one issue one fix it's not one
call one fixed it's one call multiple
fixes multiple reworks which slows down
the speed at which you can deliver so
teams aren't actually working on
innovation most at a time they're
actually spending in the majority half
of their time
servicing broken issues from another
stage in the process so they can never
get out of that vicious cycle and really
what you start to do is put this stuff
up on walls get a cross-functional team
together and start to map it out and
this is a process that I ran with one of
the fastest-growing health care
providers in the u.s. they wanted to
understand how could they start
delivering better to customers better
outcomes for customers about what they
wanted to do
understanding the
measurements the obstacles and enablers
that step along the way so you start to
map these things out about the current
condition and make it visible about what
some of these challenges are what are
the timings what are the indicative
measures but the things that are holding
people back from achieving these great
outcomes once you start to see obstacles
in your work and you're communicating
that to leadership the thing with
obstacles is you start to develop
experiments about how you can either
remove them or address them or get
better now back to the concept of the
improvement kata the step bean you've
said it big challenge that you want to
achieve as an organization some goal
that you believe is important for you
and outcome that your customer wants to
achieve once you understand your current
condition the next thing is to set a
target condition now the interesting
thing is when I said the word target to
you everyone almost started and
going oh we're good what's gonna help
them what if I don't hit it at Toyota
the target conditions that they shoot
for they don't know how to get them they
don't set numbers that they believe are
achievable because simply if you set a
target condition for something you know
you can achieve the simple question is
why haven't you done it already the idea
about setting stretch goals beyond your
knowledge treshold is you have to figure
it out you have to come up with
something beyond what you potentially
know to find out to stretch your
knowledge and then really start to push
experiments to get there and they don't
think of the people that they're
experimenting on they're not judging the
individual they're judging the system of
work they look at their process as a
system of work a complex adaptive system
where people have the ability to design
improve it and change it so when there's
an issue it's not the individuals fault
it's the system of works fault therefore
we focus on improving the system of work
and that is a fundamental mind shift for
most individuals to ever experience in a
job but that is what high-performance
organizations look like they don't go on
witch hunts for individuals they hunt
out inefficiencies with their systems of
work and try to improve them so when I
get teams then to start working on these
target conditions I'm asking them to say
if you were a customer what would be
exceptional for you what would be the
experience a customer would be blown
away I don't ask them how they would
achieve it right now I just get them to
stretch their mind beyond what they can
see today and this is really difficult
for people right they spend most of
their day trapped in the mud knee-deep
in bureaucracy being told that they
can't try new things being measured on
ridiculous KPIs that if they don't
achieve they could potentially lose
their job why would you be engaged in
that environment when you have no
ability to actually change it it's
really difficult but when you get to
these places when you create these
environments where people can actually
start to design the systems or which
they're going to work within they have
more ownership they have more buy-in and
they have natural accountability to
achieving those things so when you start
to then design these new systems of work
where people can actually take control
and feel that they have ownership of it
it changes and then you start to
socialize those two other people across
the organization this is our vision
about where we'd like to take our
business where we could take our team
our company to what do you think about
it how could we make it better what have
we missed come and collaborate with us
come and work with us come and help us
get better come and engage with the way
that we're working to try and improve so
once I have these both of these current
and future target conditions I get
people to start writing hypotheses
because this is the most important
aspect all these experiments are
essentially a hypothesis what do I
believe this capability will deliver how
can I test it
what's my measure or signal to tell me
and the goal is really to try and move
towards these target conditions
how can people stop being told what to
do and figure out problems and ways that
they could potentially get to those
problems and generate their ideas about
experiments about how they can start to
achieve that so literally people start
going crazy
Duras like I've got great ideas let's
get these ideas up there engagement
engagement engagement people problem
solving not taking orders solving
problems coming up with potential
solutions to those problems that are
testable and just to give you an example
of the kind of things that they write we
believe by showcasing our work as soon
as possible will reduce the queuing time
in our process well know this is true
when we see a 15% improvement in our
iteration a valid experiment it smart
goals they can run that experiment and
get feedback quickly about whether it's
working or not so what I do is I get
them to put all these ideas these
experiments up across their board and I
get them to start thinking about we
can't do all of these so what's the
first few that we want to try and run
what will we do next what will we do
later but the outpour of creativity of
people feeling heard of being listened
by leadership about potential ways to
improve how we could get better is
astounding it blows people's mind and
automatically they're straight into this
concept of running experiments getting
cross-functional teams together running
the experiment with real customers
because their feedback is the best
measure of whether something works
should be improved or should be killed
and this isn't just about products that
we're talking about here this is process
improvement if you are a customer of
another team you should be involved in
their process changes to try
improve the way you work that's how you
drive collaboration across the piece but
the trick is to set safe to fail
experiments quick feedback loops limited
investment so if you make a mistake its
recoverable the problem is most
organizations don't start to limit the
investment either a time scope or budget
to create these fast feedback loops to
give them information when you are
innovating the best way is to work in
small fast feedback loops to generate
information our knowledge quickly and
give you a signal to say should we stop
continue or do something different and
then the goal is really to start sharing
that information back about what you're
learning across the organization invite
other people along to see what you're
doing and how you're doing it build more
engagement across the company and again
you start to refine these all the ideas
that they had with their initial party
hypothesis half of them they're like
that was a crappy idea it's alright we
only wrote it in a card let's throw it
away let's read recalibrate mark off the
things that we've done and we go again
and straight away you're iterating
you're iterating at speed and you're
learning at speed and everyone is aware
of what's happening so finally the
transform piece every CEO briefing ever
what happens in that we need to
and the best part about this statement
is who needs to transform what are
people actually saying we need to
transform they mean you need to
the world
everyone's going No you're the people
that need to transform and this is the
problem because people think that you
can just change companies by changing
the way that people think now most of
normally go in and they're like yeah
we're we're just starting the new change
program I'm like great what's it called
it's called Phoenix I'm like of course
it is I'm gonna rise from the ashes and
save ourselves and it's a multi-million
dollar multi-year millions of people
involved and it's gonna be great and
it's gonna be brilliant and we've got a
logo and we've got banners all around
you can be the change ridiculous you
know because people know this right
they've been through this pattern before
they know they just have to sit it out
for the two years until either that
executive gets fired or they got offered
another job that they can jump to
because that's the average lifetime of
most executives is less than two years
so they know if they can just sit
through Phoenix they can just maybe you
know to be a little bit of work I might
need to show up and do something and
look busy but then I can just go back to
doing what I've always done and that's
fine and I'll just wait for Phoenix -
and this is one of the things that was
really obvious - you know a lot of
people when you looked at the automotive
industry back in the day like GM vs.
Toyota because it was a totally
different system of work that they were
thinking about and John shook who was
the first American to be hired by Toyota
he livery moved to Japan didn't speak a
word of Japanese learnt the language
just so he could go and work in Toyota
and understand what was going on and his
model for change was not that you needed
to change behavior by what people think
you needed to
change the things but they were doing
and to a certain extent this is what we
sort of saw a little bit in agile you
went from a waterfall world where you
had these big long cycle times of like
big analysis big upfront build big test
and deploy and we changed the system of
work that we would work in smaller
faster iterations so you do still do a
lot of the same things but you would
have to build release and deploy
potentially in one or two weeks cycles
and you had to have a cross-functional
team and you would meet each morning and
discuss what the challenges were and
you'd showcase your work as a result of
projects you changed a system of work
and as the result people had to change
the way they behaved where you believe
you're inside a great agile
implementation or not that is what
happens that is what people are talking
about when they talk about these methods
they're trying to change the system of
work but the other thing that shook was
very aware of and everyone in entire was
happen in the boardroom it actually was
happening where the work was happening
so where people were actually performing
tasks and doing delivery work and
actually close to their customers are
building things that's where the magic
was happening so if you go I on to a
Toyota shop floor this is what you see
right that is the cards all along here
just like these different measurements
along the side about what steps you're
at and there's this thing here called
among gun core did anyone familiar with
that couple of people familiar around
on-court okay this is fantastic quick
story on this one so when the Americans
wanted to copy exactly what was
happening in Japan basically went over
the they were invited in Toyota took
loads of photos of what was going on
rebuilt the factories in America exactly
the same as they were in Toyota city
including the magic hammer on court
brought all this stuff back to America
perfect factories recreated put the same
people into the factories who were in
the old GM factories and nothing
happened they just stood around kept
doing the same things and this on Don
cord is quite funny because it was a
have an issue when you're working on
something and you look like it's out of
whack or you see an exception you pull
the cord what do you think happens well
what's happening here how can I help
what issue have you discovered in our
system of work not what's wrong with you
what's wrong with the system of work and
they sit together have a little debate
and they come up with an experiment and
the person goes and runs that experiment
to see if they could improve something
in GM the cord just sat there and nobody
knew what the hell it was for so when
they start to change the system of work
from just having Phoenix 1 2 3 4 and n
it's different people are experimenting
they're actually starting to constantly
evolve the way that they're working
they're learning new things all the time
time and it becomes a better place to
work because you're learning now the
other interesting thing about that story
Toyota is not that the when the worker
found a problem that they needed someone
to tell them what to do great leaders
don't have all the answers great leaders
have great questions and they help you
find the answer because you're the
knowledge worker you're the person with
the most context they know good
questions to ask you to get better
answers from you it is impossible for a
leader in any organization to have all
the answers all the time that time was
forget about it we're in the Information
Age and in the Information Age knowledge
is the most powerful aspects and as
knowledge workers you have the most
problems that you're facing
not your CTO not your CEO and this is
why I tailored evolved this concept of
the coaching kada
they have five questions that they ask
so when somebody foot comes up against
an issue they have a way to talk or
coach the person through how they can
actually solve the problem for
themselves the first and this is like
any Socratic message where you're sort
of debating the ideas between two people
to get to a better outcome what's the
target condition that you're trying to
shoot for what's the actual goal that
you're trying to achieve what's the
current actual condition where are you
now what are the obstacles preventing
you from achieving the target condition
and which is the one you're going to
work on what's the next step you plan to
perform and most importantly how soon
can I go and see and find out if what
you believe to be true is actually true
what does this look like to you it's a
systematic approach to help persons run
an experiment to actually create a
learning loop what are your observations
what's your experiment how quickly is
that experiment going to run if you ask
people these questions and their answers
are like no idea I think it's this it's
going to take me six months to find out
and this is where you can actually start
to scale leadership because the
cognitive load about trying to answer
all these questions is impossible for
one person to know but if you have a
method as a leader to tease that
information out of people not only is
the best person closest to the work
answering the questions they also have
the most context and your role is to
help them become unblocked to answer
those questions so what does that look
like then when you're in an organization
so this is the largest gaming company on
a publicly listed gaming company in the
world what we were doing here is about
making stuff visible talk people through
the end-to-end picture about where they
wanted to take their organization their
entire portfolio the ideas they had of
what they wanted to try and improve
their value streams and start to get
customer focused about thinking outside
in towards
this and set some transformational goals
target conditions that they want to
achieve as a business so what I got the
exact team to do is start to write what
is it
hypothesis of a target condition you
would want to achieve as an organization
what are some of the factors that matter
to you is it that your customers will
say your quality of your service is
improved is it do you want to see
collaboration to prove across your team
these aren't measures of outputs they're
measures of how well your organization
is performing the health of the team's
do they feel they have everything they
need to achieve their job to a high
level of skill and perfection do
customers of your team feel like you're
improving a better service for them so
once you start to map these things out
write down from the top of the
organization right down to the bottom
you can then start to create not only
target conditions that people can shoot
for but you can start to create virtuous
learning cycles our feedback loops
across your entire organization because
leadership are talking about direction
and and objectives and goals that they
want to try and achieve they're not
telling you how to do it they're
formulating challenges and then teams
are then defining their current
condition and their target conditions
and experiments about how they get there
how could this work how could we do this
better what information are you learning
and then that starts to propagate across
your entire organization information
transparency moving across the
organization and people formulating
experiments to solve the outcomes that
they need to work towards you can pull
the undone cord here and send a message
straight up to the whole organization
when you notice exceptions in the
systems of work and that's what I start
to do I get teams together to talk about
these things the leadership actually go
to the place that the work is happening
what is happening they go and see what's
actually happening they adjust the
delivery gap between their understanding
of the world and what's actually
happening and scale leadership by asking
critical questions to help people come
up with better experiments rather than
telling them the things that they need
to do the other thing it does it starts
trust with people is continually
demonstrate progress and give them
opportunities to engage and give you
feedback that's what builds trust
you're constantly showing progress
learning sharing that communication and
it doesn't just work inside the teams
you need to get people to start talking
to real customers too so I bring the
team's to actually under leadership to
start having these conversations with
executives to test their beliefs about
how the organization needs to move
forward and refine them based on
feedback from people using their
services outside their organization
breaking their mental models of the
world so they can change and then you
use that learning to feedback into the
next cycle so you're actually creating
this machine that is constantly sensing
and responding to information and
learning therefore it doesn't matter
what's happening the external
environment because you have a sensory
mechanism to understand the signal and
you have a method to move towards those
new signals because that's the
capability you've built in your company
it just constantly evolves and this is
six months later they've totally
transformed the way that they
communicate across their whole
organization the CEO can walk down this
hallway and read every single thing
that's happening and know when there's
an issue simply by color codings on
cards and goes straight to that
individual and say how can I help you
fix that issue how can I help you remove
that obstacle and move forward at speed
30 percent year-on-year growth and
revenue profits as a result of
implementing this massive nine billion
dollar organization
that's the kind of outcomes you can
start to achieve and this isn't new
companies have been living this way for
a long long time I came across built to
last when I was walking around the
healthcare company two weeks ago and I
just happened to open it up on this page
the beauty of the 3m story is that the
company transcended McKnight obey' drew
Carleton and all the other individuals
from her early days of 3m they created a
company a mutation machine that would
continue to evolve independently of
whatever happened to the chief executive
although three M's leaders had never
predicted where the company would go in
the future they had little doubt it
would go far it became a ticking
clicking clattering clock with a myriad
of tangible mechanics to stimulate and
continually evolutionary progress I was
written 20 years ago and yet it still
throws hold our hold true today this
capability is capable to be built in
your organization - so what does it mean
well really what we don't need is more
transformation programs it's what we
need to do is continuously transform and
what I've been trying to do is change
the way that these missions happen
because having Phoenix one two and three
is not going to change your organization
and the people that need to change most
are not necessarily the people in this
room you're here because you are open to
learning and you want to get better so
what I'm doing is this it's called exact
camp and I'm getting executives of the
largest companies in the world to leave
their business for four to eight weeks
with the growth of creating a new
company to disrupt their existing
people back in the front line of
actually doing innovation of cutting
through the large bureaucracy in their
organizations where they actually get to
feel taste and touch what it's like to
run these things to get executives out
of their comfort zone
to learn by doing to actually practice
these methods and see and learn for
themselves so then they can become
coaches for other people in their
organization when they return and they
get to test hundreds of ideas over the
course of a couple of weeks the other
benefit is while they leave the company
the next generation of leaders actually
get a safe to fail experiment to run
that organization for a short period of
time so they get growth opportunities as
a result of doing roles that they
wouldn't previously do before and this
is transformative here are some of the
testimonials from some of the people
that have been involved in the program
already developed winning ideas of pace
double the revenue of our business
felling lean and agile can work in these
large organizations AIB largest bank in
Ireland how we can actually get our
stakeholders to engage with what we're
British Airways changing the way that
we're going to do our business we're
proof points about how we're going to do
it transformational change and
experiences for these people as they go
forward there is a new model of change
and it's giving people an opportunity to
get an experience of working in this way
moving forward so before you leave I'd
like to leave 10 principles to help you
understand how to drive this in your
company first of all you need to think
big learn fast and start now no one is
going to wait for you to start these
things in your organization you need to
embrace them getting an executive
mandate to make this happen is an
imperative if you do not have support in
your organization from the top you'll
never be able to drive the systemic
changes in your system of work getting
the right people to be involved in this
initiative is key if you put people who
are adverse to change in a high change
environment you will break the people be
very deliberate about the people you
pick to run these initiatives in your
organization you have to act your way to
a new culture you cannot sit here in a
talk and listen to someone tell you how
to change you have to go out and
practice this yourself if you don't it
will not matter don't worry about
getting the bit product right from the
start test it and learn to figure out
what we're
and then start to build it in the right
way the idea being that you can start to
make fast feedback loops to demonstrate
progress as you go key customers
involved in what you're doing if they do
are not giving you feedback you've no
measure of progress to say if you're
moving in the right direction and that
is what helps you learn and adapt from
the most empirical source as you go
along and then you can start to
demonstrate further funding not by great
ideas a hundred caged page business
cases but by measurable outcomes that
you're achieving and what you're doing
to get there and then you can start to
scale out those learnings to cross your
cousin don't forget to rate the session
it's been a pleasure to talk to
everybody and in the words of gonzo
remember as long as I'm learning
something it's probably been a good day