Challenge for Change, Call for Capability. Start understanding and developing your business capabilities instead of running after one-shot transformation.

1. Digital Transformation
Challenge for Change – Call for Capability
A Kanban Perspective
Mike Leber
Agile & Lean Coach
Twitter: @michael_leber
http://agileexperts.at

2. Mike Leber
Consulting, Training, Coaching for The Learning Organization
Adaptive Organizations - Leadership & Change
• Executive Consultant
• Agile and Systemic Coach
• Accredited Kanban Trainer (AKT)
• Entrepreneur
• Speaker and Community Facilitator
http://agileexperts.attwitter: @michael_leber
Austria

3. Digital Leadership Journey

4. @AgileExperts | http://agileexperts.at
Digitalization - What it means

5. @AgileExperts | http://agileexperts.at
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

6. @AgileExperts | http://agileexperts.at
Memories about Revolutions

7. @AgileExperts | http://agileexperts.at
C-Level Calling
Truth of reality
(maybe painful)
Ignorance of
Illusion
Tried Agile before?
Change success
rate?
Hip new methods?
Re-organization?

8. @AgileExperts | http://agileexperts.at
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?

9. @AgileExperts | http://agileexperts.at
Niklas Modig, Pär Ählström:
„This is Lean“

10. @AgileExperts | http://agileexperts.at
Complex Network of ServicesDemand
Observed
Capability
Demand
Demand
Observed
Capability
Observed
Capability
Graphic by
David J. Anderson
and Lean Kanban University

11. @AgileExperts | http://agileexperts.at
Complex Network of ServicesDemand
Observed
Capability
Demand
Demand
Observed
Capability
Observed
Capability
Graphic by
David J. Anderson
Kanban Agendas – Understanding Needs of
those inside the System
Survivability
• 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

12. @AgileExperts | http://agileexperts.at
Understanding, Improving, Trust
Understanding
Capability
Understanding
Risk
Understanding
Improvement
Opportunities
• Current Process
• Flow Efficiency
• Lead time as distribution
(outliers, risk, etc)
• Blockers
• Liquidity
• Limiting WIP
• Adjusting Policies
• Service Classes
Feedback Loops
on all Levels

13. @AgileExperts | http://agileexperts.at
Social Capital enabling Up-Stream Collaboration
The Alchemy of Growth
by Merhdad Baghai, Stephen Coley, and David White, 1999
Typical Challenges - Too much Focus on H1
§ Focus on Shareholder Value and Quick ROI
§ Bonus Payments
§ Budgeting Process
§ Exeriments not welcome
§ Only current segments
§ No longer term impact
Today‘s revenue
growth + tomorrow‘s
cash flow
Options on future
high-growth
businesses

14. @AgileExperts | http://agileexperts.at
Social Capital enabling Up-Stream Collaboration
The Alchemy of Growth
by Merhdad Baghai, Stephen Coley, and David White, 1999
Typical Challenges - Too much Focus on H1
§ Focus on Shareholder Value and Quick ROI
§ Bonus Payments
§ Budgeting Process
§ Exeriments not welcome
§ Only current segments
§ No longer term impact
Today‘s revenue
growth + tomorrow‘s
cash flow
Options on future
high-growth
businesses
David J. Anderson

15. @AgileExperts | http://agileexperts.at
Existing Biz ModelsNew Biz Models
Leadership
Behaviors Values
Structures
Exploration
Strategy
Innovation Ideas
Portfolio
Exploitation
Options
Balance
Commitment
Evolving Organizational Capabilities
§ Flow efficiency and Slack Time over Capacity Utilization
§ Validated Learning over Deliverables Quantity
§ Understanding Stakeholders and Business Risk over Blaming
§ Risk Aware Decisions over HIPPO Enforcement
§ Organizational Liquidity over Scaling up a Business

16. @AgileExperts | http://agileexperts.at
Summary
Digital 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