Post on 15-Apr-2017
SCALING OPERATIONS@norrisnode
1990
2000
2006
2007
2010
2012
1972
2014
What is operations anyway?
In your words…
The activities that make up the day to day running of the business
Making the company run efficiently and effectively and in alignment with the strategy
Making sure everything happens and works for customers and business
Creating an effective operation that can is ready for and can contend with change in whatever form it
comes
Usually includes
Finance
HR/Talent
Customer service
Account management
Office/Facilities
BI/Analytics
Legal
Sometimes includes
Sales
Product
Marketing
Engineering
Investor relations
Delivery / returns
Purchasing
Is Operations similar to product management?
Analyse, define, launch and retire
(products)
How about scaling?
Scaling can mean to increase in size
It can also mean to do so efficiently
Maybe this might be what we do?
CAPABILITY
i.e.
COMPETENCE x CAPACITY
INDIVIDUALS DON'T BUILD GREAT COMPANIES, TEAMS DO.“
Team…People working
together
Scaling…More people working
together
4 people = 6 relationships
6 people = 15 relationships
Organisational complexity is non-linear
8 people 28 relationships
50 people?
R=(N x (N-1))/2 R=(50 x 49)/2 1225
R for 10 to 150 people
Group formats change predictably with scale
From Hunting Party to City
Hunting Party
2-7 people
From Hunting Party to City
Village huts
8-40 people
From Hunting Party to City
Large village
50-250 people
From Hunting Party to City
A town
250+ people
From Hunting Party to City
A City
10s of thousands of people+
Dunbar’s number
Dunbar's number is a suggested cognitive limit to the number of
people with whom one can maintain stable social relationships.
These are relationships in which an individual knows who each person is and how each person relates to
every other person
150
Hierarchies can be slowReducing complexity and increasing speed requires
small group sizes with clear mandates
Amazon’s 2 pizza team rule
Small teams = ownership = speed = less fragility
Transferwise form teams around KPIs
Spotify’s tribes, chapters and guilds
Max 100 Max 100
Speed is a result of Autonomy is a result of
TRUST and
PURPOSE
Quality is a result of Caring is a result of
REMOVING ABSTRACTION
Minimise people needed to complete a customer
task
Form teams around the customer, not the function
What are you optimising for?
Quality
Speed
Cost
Optimise for quality first
How?
Process is not a dirty word
Processes are like ratchets that secure quality
Principles and outcomes if stated clearly can reduce
the need for detailed processes
Processes are best written by the people doing the work
Process name
Name
Owner NameLast updated DateWhy Why is this policy or process needed?
Give context and background information
Words Define any relevant vocabularyPolicies or principles
State any policies or principles relevant to this process
Process Describe the process in numbered steps
Measures State measures / KPIs and reporting frequency that will determine whether this process has been successfully followed
Organisational debt is normal. Be careful how
much you borrow.
Keeping up with growth, but only just
How we used to do
it
How we would do
it to optimise
for today’s volumes
What we will need to do to optimise
for tomorrow’s volumes
It’s your path to chart
WHENEVER THERE IS AN EXECUTION OF PURPOSE,
THERE MUST BE AN AGENT“
Adoniram Judson
Practice leads to theory
Theory is not superior to practice
Q & A