© Patrick Steyaert, 2014www.okaloa.com	

Evolving agile
entrepreneurship in large and
small organizations
April 2014
Patrick Steyaert
patrick.steyaert@okaloa.com
© Patrick Steyaert, 2014
© Patrick Steyaert, 2014www.okaloa.com	

Agenda 2
1. Why Discovery Kanban?
2. What is Discovery Kanban?
WHY
HOW
WHAT
www.discovery-kanban.com
© Patrick Steyaert, 2014www.okaloa.com	

Two types of change
Paradigm consistent
§  In accord with the prevailing climate
Paradigm cracking
§  Challenges the prevailing climate,
involving an unfamiliar perspective of
the problem
www.discovery-kanban.com
3
© Patrick Steyaert, 2014www.okaloa.com	

A paradigm cracking change: A shift in
management discipline
The discipline of market disruptors
§  Technology innovation
§  Efficiency innovation
§  Sustaining innovation
§  Disruptive innovation
Excel in 4 of 4
4
The discipline of market leaders
§  low cost
“operational excellence”
§  customized offerings
“customer intimacy”
§  constant innovation
“product leadership”
Excel in 1 of 3
Paradigm
cracking
change
Corporate management Corporate entrepreneurship
www.discovery-kanban.com
© Patrick Steyaert, 2014www.okaloa.com	

The monkey trap
Start-ups
§  Explore and develop new value
streams
§  Entrepreneurship
§  Vulnerable to stagnation
§  Not getting traction
§  Lock in by early customers
and early revenue
§  Growth pains
5
Incumbents
§  Grow and sustain existing
value streams
§  Performance oriented
management system
§  Vulnerable to disruption
§  Paradigm blinders
§  Massive internal resistance
to moving resources away
from the current business
www.discovery-kanban.com
© Patrick Steyaert, 2014www.okaloa.com	

Buzzcar, Google drive,
Wikispeed
Car as a service
Discover new products and
services under uncertainty
6
Toyota
Deliver what the customer
wants when the customer
wants it
Flow, continuous
improvement
Paradigm cracking in industry
Ford
Everyone can own a car (as
long as it is a black model-T)
Economic efficiency and
predictability
Mass production Lean manufacturing,
Lean product
development
Extreme
manufacturing,
Lean start-up
www.discovery-kanban.com
© Patrick Steyaert, 2014www.okaloa.com	

The cycle of innovation 7
Efficiency
innovation
Sustaining
innovation
Disruptive
innovationTechnology
innovation Differentiators
Enablers
Table stakes
Delighters
www.discovery-kanban.com
© Patrick Steyaert, 2014www.okaloa.com	

Changes in the business landscape 8
Ford: Mount Fuji business landscape
Efficiency innovation
Businessfitness
Toyota: Rugged business landscape
Sustaining innovation
Businessfitness
Future: Dancing business landscape
Disruptive innovation
Businessfitness
Mist between mountains
Poisonous gas in the valleys
www.discovery-kanban.com
© Patrick Steyaert, 2014www.okaloa.com	

The new management discipline 9
Exploration
Exploitation
Using options to explore a
rugged business landscape
Businessfitness
Current position
Option
Option
Option
Using optimization to climb a
peak in the business landscape
Businessfitness
Current position
Optimization
Plan-Do-Check-Adjust
(PDCA)
Observe-Orient-Decide-Act
(OODA)
Commitment
The new management discipline requires excellence at both exploiting existing
value streams as well as exploring new value streams.
www.discovery-kanban.com
© Patrick Steyaert, 2014www.okaloa.com	

Change is the bottleneck 10
Policies and
procedures
Optimization
and efficiency
Incremental
change
Chaos and self-
organization
Failure and
learning
Disruptive
change
Not just a change from exploitation to exploration but to exploitation AND
exploration. It requires a corporate entrepreneurship.
exploitation exploration
www.discovery-kanban.com
© Patrick Steyaert, 2014www.okaloa.com	

Agenda 11
1. Why Discovery Kanban?
2. What is Discovery Kanban?
WHY
HOW
WHAT
www.discovery-kanban.com
© Patrick Steyaert, 2014www.okaloa.com	

Start where
you are
Discovery Kanban 12
Shared visual
understanding
Improve
collaboratively
Just like The Kanban Method (and lean startup), Discovery kanban
is an evolutionary approach for paradigm cracking change.
www.discovery-kanban.com
© Patrick Steyaert, 2014www.okaloa.com	

A simple discovery Kanban for large
business transformation programmes
13
www.discovery-kanban.com
§  Reformation driven by business
transformation programmes
§  Programmes require collaboration
between business, IS, suppliers
§  Need for better collaboration and a more
entrepreneurial spirit
§  Execution alone is not sufficient
§  Many elements of uncertainty that
need to be dealt with
§  Exploration alone is not sufficient
§  The programme does need to
efficiently deliver
© Patrick Steyaert, 2014www.okaloa.com	

Visualization 14
www.discovery-kanban.com
A discovery kanban used by a programme management team to
manage issues, risks, options, actions, counter measures and probes.
© Patrick Steyaert, 2014www.okaloa.com	

Items that are visualized
PDCA
§  Probe
§  Time-boxed activity to validate
an option
§  Countermeasure
§  Pro-active activity to address
a risk or implement an
improvement
§  Action
§  Re-active activity to deal with
an issue
15
OODA
§  Option
§  The right to do something,
not the obligation
§  Opportunity & Risk
§  A future problem or event
that, should it occur, will
affect you for good or bad
§  Issue
§  A current problem or event
that has occurred and will
adversely affect you
www.discovery-kanban.com
© Patrick Steyaert, 2014www.okaloa.com	

Visualizing exploration and
exploitation
Decide
Observe
Check
PlanOrient
DoProgramme
& Business
environment
Act
O-O-D-A: Issues, Risks & Options
PDCA: Actions, counter measures and probes
Adjust
www.discovery-kanban.com
16
© Patrick Steyaert, 2014www.okaloa.com	

Managing balance 17
Too much “purple tickets”
The programme is in fire fighting mode, programme
management is reactive.
Introduce risk management and continuous
improvement
Absence of “blue tickets”
Does the programme only have a downside (risk)
and no upside (options)?
Or is it an indication of a risk averse mindset of the
programme management team?
Introduce real options thinking to promote a more
entrepreneurial spirit in the PM team.
www.discovery-kanban.com
© Patrick Steyaert, 2014www.okaloa.com	

Collaboratively improve
FEEDFORWARD
§  Focuses on learning in the
future to reach a new pattern
of operation
§  Work as a team
§  Anticipating, indicates a
desired future
§  Rapid learning – we learn from
the future more rapidly than
we learn from the past.
www.discovery-kanban.com
18
FEEDBACK
§  Responding to abnormalities
and try to get back to
predictable zone
§  Uses information from a past
event to provide reflection
§  Troubleshooting alone is not
an effective form of learning
© Patrick Steyaert, 2014www.okaloa.com	

A more elaborate discovery Kanban to
manage renewal of a flagship product
19
www.discovery-kanban.com
§  Renewal of the flagship product
§  Re-engineering
§  New markets
§  Product management and
development need to collaborate
§  Need for renewal of the flagship
product while maintaining efficient
delivery of the current product
© Patrick Steyaert, 2014www.okaloa.com	

Visualization 20
www.discovery-kanban.com
Visualize different types of features in the end-to-end value stream.
© Patrick Steyaert, 2014www.okaloa.com	

The items that are visualized
21
§  Differentiator
§  Unique and disruptive value
propositions
§  Enabler
§  Platform to deliver the
critical quality
§  Table stakes
§  Minimal features to be
competitive
§  Delighter
§  Extend current value
proposition by delighting
the customer
Table
stakes
Delighters
Differentia-
torsEnablers
www.discovery-kanban.com
© Patrick Steyaert, 2014www.okaloa.com	

Plan-execute-verify
(enablers, table stakes)
Build-measure-learn
(differentiators, delighters)
Visualizing exploration and
exploitation
22
UVP
Idea Option
Real
option
Exercised
option
Validated
option
Lean
canvas MVP
Buying
customers
Pivot /
persevere
1st commitment point 2nd commitment point
narrative
Request
concept
Commitment DeploymentVerificationOption
feature
accepted
feature
deployed
feature
www.discovery-kanban.com
© Patrick Steyaert, 2014www.okaloa.com	

Managing balance 23
>4 5 4
>4 5 4
Managing the balance between exploration and exploitation.
3
3
9
4
B
A
L
A
N
C
E
www.discovery-kanban.com
© Patrick Steyaert, 2014www.okaloa.com	

Collaboratively improve 24
Building on Kanban and Lean startup to
collaboratively improve.
create a new
product or
service under
conditions of
extreme
uncertainty
improving the
fitness for
purpose of an
established
product or
service delivery
Using Discovery Kanban to initiate a collaborative improvement based on
kanban and lean startup.
www.discovery-kanban.com
© Patrick Steyaert, 2014www.okaloa.com	

Conclusion 25
1. Why Discovery Kanban?
2. What is Discovery Kanban?
Excellence in a dancing business landscape
requires a new management discipline
-  Market disruption
-  Corporate entrepreneurship
Change is the bottleneck
-  Not just from exploitation to exploration
but to exploitation AND exploration
Discovery kanban is a change approach for
catalyzing this new management discipline
-  Integrating exploration and exploitation in
the value stream
WHY
HOW
WHAT
3. How: Grab free templates at: www.discovery-kanban.com
www.discovery-kanban.com
© Patrick Steyaert, 2014www.okaloa.com	

Special thanks! 26
Sean Murphy
SKMurphy
@skmurphy
Arlette Vercammen
Okaloa
@ArletteVercamme
www.discovery-kanban.com
© Patrick Steyaert, 2014www.okaloa.com	

Thank You
patrick.steyaert@okaloa.com
@PatrickSteyaert
www.discovery-kanban.com
www.discovery-kanban.com

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Oka dicsovery kanban_llkd14

  • 1. © Patrick Steyaert, 2014www.okaloa.com Evolving agile entrepreneurship in large and small organizations April 2014 Patrick Steyaert [email protected] © Patrick Steyaert, 2014
  • 2. © Patrick Steyaert, 2014www.okaloa.com Agenda 2 1. Why Discovery Kanban? 2. What is Discovery Kanban? WHY HOW WHAT www.discovery-kanban.com
  • 3. © Patrick Steyaert, 2014www.okaloa.com Two types of change Paradigm consistent §  In accord with the prevailing climate Paradigm cracking §  Challenges the prevailing climate, involving an unfamiliar perspective of the problem www.discovery-kanban.com 3
  • 4. © Patrick Steyaert, 2014www.okaloa.com A paradigm cracking change: A shift in management discipline The discipline of market disruptors §  Technology innovation §  Efficiency innovation §  Sustaining innovation §  Disruptive innovation Excel in 4 of 4 4 The discipline of market leaders §  low cost “operational excellence” §  customized offerings “customer intimacy” §  constant innovation “product leadership” Excel in 1 of 3 Paradigm cracking change Corporate management Corporate entrepreneurship www.discovery-kanban.com
  • 5. © Patrick Steyaert, 2014www.okaloa.com The monkey trap Start-ups §  Explore and develop new value streams §  Entrepreneurship §  Vulnerable to stagnation §  Not getting traction §  Lock in by early customers and early revenue §  Growth pains 5 Incumbents §  Grow and sustain existing value streams §  Performance oriented management system §  Vulnerable to disruption §  Paradigm blinders §  Massive internal resistance to moving resources away from the current business www.discovery-kanban.com
  • 6. © Patrick Steyaert, 2014www.okaloa.com Buzzcar, Google drive, Wikispeed Car as a service Discover new products and services under uncertainty 6 Toyota Deliver what the customer wants when the customer wants it Flow, continuous improvement Paradigm cracking in industry Ford Everyone can own a car (as long as it is a black model-T) Economic efficiency and predictability Mass production Lean manufacturing, Lean product development Extreme manufacturing, Lean start-up www.discovery-kanban.com
  • 7. © Patrick Steyaert, 2014www.okaloa.com The cycle of innovation 7 Efficiency innovation Sustaining innovation Disruptive innovationTechnology innovation Differentiators Enablers Table stakes Delighters www.discovery-kanban.com
  • 8. © Patrick Steyaert, 2014www.okaloa.com Changes in the business landscape 8 Ford: Mount Fuji business landscape Efficiency innovation Businessfitness Toyota: Rugged business landscape Sustaining innovation Businessfitness Future: Dancing business landscape Disruptive innovation Businessfitness Mist between mountains Poisonous gas in the valleys www.discovery-kanban.com
  • 9. © Patrick Steyaert, 2014www.okaloa.com The new management discipline 9 Exploration Exploitation Using options to explore a rugged business landscape Businessfitness Current position Option Option Option Using optimization to climb a peak in the business landscape Businessfitness Current position Optimization Plan-Do-Check-Adjust (PDCA) Observe-Orient-Decide-Act (OODA) Commitment The new management discipline requires excellence at both exploiting existing value streams as well as exploring new value streams. www.discovery-kanban.com
  • 10. © Patrick Steyaert, 2014www.okaloa.com Change is the bottleneck 10 Policies and procedures Optimization and efficiency Incremental change Chaos and self- organization Failure and learning Disruptive change Not just a change from exploitation to exploration but to exploitation AND exploration. It requires a corporate entrepreneurship. exploitation exploration www.discovery-kanban.com
  • 11. © Patrick Steyaert, 2014www.okaloa.com Agenda 11 1. Why Discovery Kanban? 2. What is Discovery Kanban? WHY HOW WHAT www.discovery-kanban.com
  • 12. © Patrick Steyaert, 2014www.okaloa.com Start where you are Discovery Kanban 12 Shared visual understanding Improve collaboratively Just like The Kanban Method (and lean startup), Discovery kanban is an evolutionary approach for paradigm cracking change. www.discovery-kanban.com
  • 13. © Patrick Steyaert, 2014www.okaloa.com A simple discovery Kanban for large business transformation programmes 13 www.discovery-kanban.com §  Reformation driven by business transformation programmes §  Programmes require collaboration between business, IS, suppliers §  Need for better collaboration and a more entrepreneurial spirit §  Execution alone is not sufficient §  Many elements of uncertainty that need to be dealt with §  Exploration alone is not sufficient §  The programme does need to efficiently deliver
  • 14. © Patrick Steyaert, 2014www.okaloa.com Visualization 14 www.discovery-kanban.com A discovery kanban used by a programme management team to manage issues, risks, options, actions, counter measures and probes.
  • 15. © Patrick Steyaert, 2014www.okaloa.com Items that are visualized PDCA §  Probe §  Time-boxed activity to validate an option §  Countermeasure §  Pro-active activity to address a risk or implement an improvement §  Action §  Re-active activity to deal with an issue 15 OODA §  Option §  The right to do something, not the obligation §  Opportunity & Risk §  A future problem or event that, should it occur, will affect you for good or bad §  Issue §  A current problem or event that has occurred and will adversely affect you www.discovery-kanban.com
  • 16. © Patrick Steyaert, 2014www.okaloa.com Visualizing exploration and exploitation Decide Observe Check PlanOrient DoProgramme & Business environment Act O-O-D-A: Issues, Risks & Options PDCA: Actions, counter measures and probes Adjust www.discovery-kanban.com 16
  • 17. © Patrick Steyaert, 2014www.okaloa.com Managing balance 17 Too much “purple tickets” The programme is in fire fighting mode, programme management is reactive. Introduce risk management and continuous improvement Absence of “blue tickets” Does the programme only have a downside (risk) and no upside (options)? Or is it an indication of a risk averse mindset of the programme management team? Introduce real options thinking to promote a more entrepreneurial spirit in the PM team. www.discovery-kanban.com
  • 18. © Patrick Steyaert, 2014www.okaloa.com Collaboratively improve FEEDFORWARD §  Focuses on learning in the future to reach a new pattern of operation §  Work as a team §  Anticipating, indicates a desired future §  Rapid learning – we learn from the future more rapidly than we learn from the past. www.discovery-kanban.com 18 FEEDBACK §  Responding to abnormalities and try to get back to predictable zone §  Uses information from a past event to provide reflection §  Troubleshooting alone is not an effective form of learning
  • 19. © Patrick Steyaert, 2014www.okaloa.com A more elaborate discovery Kanban to manage renewal of a flagship product 19 www.discovery-kanban.com §  Renewal of the flagship product §  Re-engineering §  New markets §  Product management and development need to collaborate §  Need for renewal of the flagship product while maintaining efficient delivery of the current product
  • 20. © Patrick Steyaert, 2014www.okaloa.com Visualization 20 www.discovery-kanban.com Visualize different types of features in the end-to-end value stream.
  • 21. © Patrick Steyaert, 2014www.okaloa.com The items that are visualized 21 §  Differentiator §  Unique and disruptive value propositions §  Enabler §  Platform to deliver the critical quality §  Table stakes §  Minimal features to be competitive §  Delighter §  Extend current value proposition by delighting the customer Table stakes Delighters Differentia- torsEnablers www.discovery-kanban.com
  • 22. © Patrick Steyaert, 2014www.okaloa.com Plan-execute-verify (enablers, table stakes) Build-measure-learn (differentiators, delighters) Visualizing exploration and exploitation 22 UVP Idea Option Real option Exercised option Validated option Lean canvas MVP Buying customers Pivot / persevere 1st commitment point 2nd commitment point narrative Request concept Commitment DeploymentVerificationOption feature accepted feature deployed feature www.discovery-kanban.com
  • 23. © Patrick Steyaert, 2014www.okaloa.com Managing balance 23 >4 5 4 >4 5 4 Managing the balance between exploration and exploitation. 3 3 9 4 B A L A N C E www.discovery-kanban.com
  • 24. © Patrick Steyaert, 2014www.okaloa.com Collaboratively improve 24 Building on Kanban and Lean startup to collaboratively improve. create a new product or service under conditions of extreme uncertainty improving the fitness for purpose of an established product or service delivery Using Discovery Kanban to initiate a collaborative improvement based on kanban and lean startup. www.discovery-kanban.com
  • 25. © Patrick Steyaert, 2014www.okaloa.com Conclusion 25 1. Why Discovery Kanban? 2. What is Discovery Kanban? Excellence in a dancing business landscape requires a new management discipline -  Market disruption -  Corporate entrepreneurship Change is the bottleneck -  Not just from exploitation to exploration but to exploitation AND exploration Discovery kanban is a change approach for catalyzing this new management discipline -  Integrating exploration and exploitation in the value stream WHY HOW WHAT 3. How: Grab free templates at: www.discovery-kanban.com www.discovery-kanban.com
  • 26. © Patrick Steyaert, 2014www.okaloa.com Special thanks! 26 Sean Murphy SKMurphy @skmurphy Arlette Vercammen Okaloa @ArletteVercamme www.discovery-kanban.com
  • 27. © Patrick Steyaert, 2014www.okaloa.com Thank You [email protected] @PatrickSteyaert www.discovery-kanban.com www.discovery-kanban.com