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The “How” Trap 17 November, 2010

The “How” Trap 17 November, 2010 . What We’ll Cover. Who am I? Agile, Innovation, and Cloud – what are they? Changing the way you see things today What is “the ‘how’ trap”? A new lens Some specific examples A tactical deep dive The Hedgehog Concept and you/your client

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The “How” Trap 17 November, 2010

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  1. The “How” Trap 17 November, 2010

  2. What We’ll Cover • Who am I? • Agile, Innovation, and Cloud – what are they? • Changing the way you see things today • What is “the ‘how’ trap”? A new lens • Some specific examples • A tactical deep dive • The Hedgehog Concept and you/your client • Unexpected views on businesses • Closing thoughts

  3. A Two Day Workshop Designed to Familiarize You With The Book Rethink Who am I? March, 2009

  4. Business Architect • Business “scientist” with 12 patents pending • 20 years of business and IT consulting • 2008 Harvard Business Review article • 2009 Rethink, FT Press • 2010 Cloud white paper

  5. A Two Day Workshop Designed to Familiarize You With The Book Rethink Innovation, Cloud, Agile. . . March, 2009

  6. Definition – Innovation ATM Automated Bank Statements Cost/ Benefit Free Checking Minor “Tuning” (Change) Major Change (Project) Does Not Resemble What Was There Before (Innovation) ChangeSpectrum

  7. Operating Model InnovationNew Hvað or New Hvernig? Starbucks Industry High Emphasis Medium Low ServiceExpertise Location Quality Speed Convenience Fashion Selection Ambiance Price

  8. Innovation Risk • Remember the quality movement? ‘90s • Everything had to be high quality • The more the better • Anything to win the Baldrige award • But it was expensive • And it didn’t always add value • Innovation is really no different

  9. Innovation Risk • Innovation – targeted and relevant to you • Figure out where it will further differentiate • Figure out what will make customers happier • Empower and encourage innovation where it really matters • Build a map to highlight where it does, and does not matter • In most cases a little goes a long way

  10. Definition – Agile Amazon Toyota Cost/ Benefit Coca Cola Durable Flexible / Adaptable Agile ChangeSpectrum

  11. The Stack And Cloud OptionsServices Taxonomy (On-Premises) Infrastructure (as a Service) Platform (as a Service) Software (as a Service) Applications Applications Applications Applications You manage Data Data Data Data You manage Runtime Runtime Runtime Runtime Middleware Middleware Middleware Middleware Other Manages You manage Other Manages O/S O/S O/S O/S Virtualization Virtualization Virtualization Virtualization Other Manages Servers Servers Servers Servers Storage Storage Storage Storage Networking Networking Networking Networking

  12. Cloud and High Tension Steel

  13. Problem • Many of the tools and methods used to be successful in the past are ill-suited to the new • A new set of solution options, especially with cloud, require a new lens

  14. A Two Day Workshop Designed to Familiarize You With The Book Rethink A New Lens March, 2009

  15. Now You See it . . .

  16. Now You See it . . .

  17. A Two Day Workshop Designed to Familiarize You With The Book Rethink The ‘How’ Trap March, 2009

  18. The ‘Hvernig’ Trap Viðskiptaverðleikar • Driving - “why are we going this way?” • Fosbury Flop • Faxing • Flight check-in

  19. The ‘How’ Trap • Driving - “why are we going this way?” • Fosbury Flop • Faxing is not a “what”, it’s a “how” • Flight check-in doesn’t need to have anything to do with airplanes

  20. Same Hvað, New Hvernig • Flight check-in • Movies • Mail • Payments • Banking • Salt (magnesium carbonate) • Charity

  21. A Two Day Workshop Designed to Familiarize You With The Book Rethink Real Results March, 2009

  22. Real Results – Innovation • ING DIRECT • Eliminated branches from the bank • Turned their back on some customers • No hand-written checks (no department for bad checks needed) • Eclipse Aviation • Turned their back on some customers • Eliminated the bathroom from the plane • Eliminated rivets from manufacturing • Created totally new fire extinguisher • Eliminated all customization options in plane

  23. Real Results – Cost Cutting • $40 million cut, 65 heads redeployed In three weeks • Big manufacturer expected about $3 million in cost reduction • $23 million cut In eight weeks • Bank expected $2 million in savings • $0 savings • Big transportation / logistics firm found 80% redundancy, expected 10%

  24. Trapped and Untrapped Verbs • FaxCommunicate • Mail Confirm • Phone Register • Automate None • Enter Complete • Truck Transport • Etc. People are very inclined to talk about “how”, so asking experts for actual requirements is often bound to fail because of the “how” trap TrappedUntrapped

  25. This is Not Process • Process implements, or “animates” the “what” like a building vs. blueprint • Process “how” is subjective and fluid (good when used correctly) • “What” is being done is durable and objective • “What” is more disciplined and requires LESS expertise

  26. A Two Day Workshop Designed to Familiarize You With The Book Rethink Why This is Effective March, 2009

  27. Easy, and very high impact • Seeing that faxing is not a requirement does three things • Transforms the conversation with the person doing the work, completely objective • You don’t have to be an expert consultant to figure out “what” work is done • With an objective view of “what” the work is, now you can ask about value, performance, connections, regulations, maturity, and so on, to see what causes results Create Quote Proprietary and confidential. Do not copy.

  28. Easy, and very high impact • Seeing that faxing is not a requirement does three things • Transforms the conversation with the person doing the work, completely objective • You don’t have to be an expert consultant to figure out “what” work is done • With an objective view of “what” the work is, now you can ask about value, performance, connections, regulations, maturity, and so on, to see what causes results Create Certificate Create Quote Receive Request Document Request Not really a what, but this is Document Quote Create Agreement Communi-cate Quote Send Agreement Proprietary and confidential. Do not copy.

  29. Easy, and very high impact • Seeing that faxing is not a requirement does three things • Transforms the conversation with the person doing the work, completely objective • You don’t have to be an expert consultant to figure out “what” work is done • With an objective view of “what” the work is, now you can ask about value, performance, connections, regulations, maturity, and so on, to see what causes results. Create Certificate Create Quote Receive Request Document Request Create Quote Receive Request Document Request Create Certificate Not really a what, but this is Document Quote Create Agreement Communi-cate Quote Communi-cate Quote Create Agreement Send Agreement Send Agreement Proprietary and confidential. Do not copy.

  30. KEY Outline = Performance Fill = Value Highest Lowest High Low Medium Medium Low High Lowest Highest Easy, and very high impact • Seeing that faxing is not a requirement does three things • Transforms the conversation with the person doing the work, completely objective • You don’t have to be an expert consultant to figure out “what” work is done • With an objective view of “what” the work is, now you can ask about value (Viðskiptavirði), performance (Frammistaða), connections, regulations, maturity, and so on, to see what causes results • Should I change Create Quote? Maybe • What will improve it? The first two? • Do I need innovation? Need more information • Can I outsource a part? (Send Agreement) • Also attach metrics to each • Ensure child metrics map to parent Create Quote Receive Request Document Request Create Certificate Communi-cate Quote Create Agreement Send Agreement

  31. It's easy, once you see it

  32. A Two Day Workshop Designed to Familiarize You With The Book Rethink The Hedgehog March, 2009

  33. The Hedgehog Concept

  34. Heat Maps Drive Prioritization

  35. Heat Maps Drive Prioritization

  36. Rethink Unexpected 2010

  37. UnexpectedCan Netflix kill Match?Should AMZN buy NFLX?

  38. UnexpectedCaptchas

  39. UnexpectedWho could kill Gmail AND Hotmail right now?

  40. UnexpectedWhat businesss is CCP in?Who has the same operating model as Coke? ?

  41. UnexpectedWhy might Alice kill Wal-Mart?

  42. UnexpectedStriking a very tough balance

  43. Segments TodayHow Fast Is This Changing

  44. A Two Day Workshop Designed to Familiarize You With The Book Rethink Closing Thoughts March, 2009

  45. Closing Thoughts • Rethinking is fun • Rethinking is not limited to business, at all • Anyone can rethink • If you have the experience most people have, rethinking is a lot of fun and really will change the way you look at most things. I would love to hear your stories. • If you want the heat mapping tool or guide, send me an e-mail

  46. Contact A Two Day Workshop Designed to Familiarize You With The Book Rethink http://www.rethinkbook.com rethink@microsoft.com THANK YOU March, 2009

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