Stoos intro

Copyright 2008 -2013 CLL Group, LLC

“..organizations can become learning networks of individuals creating value,

and that the role of leaders should include the stewardship of the living rather than the management of the

machine.”

Stoos - January 6-7, 2012

Catherine Louis – Deborah Hartmann Preuss – Esther Derby – Franz Röösli – Jay Cross – John Styffe – Jonas Vonlanthen – Julian Birkinshaw – Jurgen Appelo – Kati Vilkki – Klaus Leopold – Melina McKim – Michael Spayd – Peter Hundermark – Peter Stevens – Rod Collins – Roy Osherove – Sanjiv Augustine – Simon Roberts –

Steve Denning – Uli Loth1

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• About Stoos.• We’re in a bit of a mess. • attempts to fix the mess seem to fail. Complexity scientists would

say that this hierarchical bureaucracy that we revert to is an “attractor”.

• We’ll talk about two attractors that I have found that work to energize organizations. • The remaining part of our session will be exercises on “leadership” and

“customer delight”, finishing with a fun fishbowl panel.

AGENDA

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“STOOS”

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• Rate of Return on Assets has fallen 75% since 1965.• Fortune 500 Firms in 1955 vs. 2011

- 87% are gone.• Customers are gaining and wielding

unprecedented power as reflected in increasing customer disloyalty.• 1 in 5 workers is fully engaged.

...WE ARE IN A BIT OF A MESS2009: Conclusive proof of the

failure of traditional management

� The rate of return on assets has fallen by 75% since 1965 � The life expectancy of Fortune 500 firms down to 15 years, and is heading towards 5 years. � Only 1 in 5 workers fully engaged

��

1965

Today

Source: Deloitte’s Center for the Edge: The Shift Index

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WHO’S IDEA WAS STOOS?

Blog: http://www.scrum-breakfast.com

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• Initial “Stoos” event, January 2012 in Stoos, Switzerland. ~21. Formation of “Stoos Network” linkedin group, creation of stoosnetwork.org happened at this event.• Stoos Stampede event, July 2012 in Amsterdam, the Netherlands. ~750• Stoos Connect event, world-wide, multimedia streamed event.• Stoos Network linkedin group, ~2000 members worldwide, with over

25 satellite groups and growing.

• Stoos Network is movement of like-minded people seeking to energize organizations in ways that make them better for the organizations themselves, better for workers, better for customers, and better for our society.

WHAT IS STOOS?

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IMPORTANT POINTS• Stoos is a movement with no formal structure. • We support all models that support doing business better. Stoos

gathering did not endorse any one new management model over others, and this trend continues.

• It is a “neutral” forum where there is information about new and better ways of working.

• It is a forum where you can ask questions, share thoughts and opinions and enter debate openly and freely.

• We believe that together we can reverse this “messy” trend.

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• Pretend you have just started at a new, very Agile company. You’ve been there 2 months.• The company is making money, delighting customers, and you love

your job.• For some reason you have to talk to your manager.• A: What do you need to talk to him/her for?• B: What “attribute” would you like to see in this person?

• Example: • A: Career Development.• B: I’d like her to have a HUGE network for me to tap into.

EXERCISE 1: AGILE & LEADERSHIP

Exercise: 2 minutes on stickies, then read-out.

GREAT servant leadership becomes an attractor.9


Making money for shareholders

Managers are controllers of individuals

Bureaucracy: Rules, plans, reportsEfficiency, cost cutting

Top down commands

Traditional Management

Self-reinforcing: Changing one thing makes no difference!Source: Radical Management - Steve Denning.


Making money for shareholders

Managers are controllers of individuals

Bureaucracy: Rules, plans, reports

Efficiency, cost cutting

Top down commands

Radical Management

Delighting Customers

Manager as enabler, impediment remover

Dynamically linked, flatter network

Self-reinforcing: Do all five at the same time!

Radical transparency, cont. improvement

Peer-to-peer conversations

Source: Radical Management - Steve Denning.


CUSTOMER DELIGHTDelighting Customers

Manager as enabler, impediment remover

Dynamically linked, flatter network

Radical transparency, cont. improvement

Peer-to-peer conversations

Servant Leadership

Agile (Scrum, Lean, XP...)12


THE NEW BOTTOM LINE

Making money is the result of the firm’s actions, not the goal.

By focusing on delighting the customer, the firm makes a lot more money than they would if

they set out to make money.

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DELIGHTING CUSTOMERSGOES BEYOND AGILE

• Shift from an output to an outcome . The goal is not “working software”, it’s that this working software delighted customers.

• Shift from customer satisfaction to customer delight . The customer must be positively surprised and excited!

• Shift from an implicit goal to an explicit goal. Making it explicit locks it in. (Example, Zappo’s, Trader Joe’s.)

• Customer delight is now the definition of “done” in Scrum.• It’s the bottom line for the whole organization.• Customer delight is measured. • What are some examples of firms that GET THIS?

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MEASURING CUSTOMER DELIGHT

The simplest and most effective measure of customer delight is the Net Promoter score (NPS.)

Fred Reichheld: “The Ultimate Question”:“How likely is it that you will recommend this firm, service, or product to a

colleague or a friend?”

Subtract the number of scores of 0-6 from the number of scores of 9-10. IGNORE 7‘s and 8‘s. Compute the percentage of the result. This is your net promoter score.

0 1 2 3 4 5 6 7 8 9 10+1-1

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EXERCISE 2:

• Pair up: Find someone and tell them about a time when you were truly delighted about a product or service.

• Then listen to their story.

• 60 seconds each.

Exercise: 2 minutes.

What does Customer Delight feel like?

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EXERCISE 3:

• What is it that you are working on? A product, service, feature, event?

• Pair up, tell someone about the project/product/service you are working on.

• 60 seconds each.

Exercise: 2 minutes.

Focusing now on your project:

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EXERCISE 4:

• Who is the crucial customer you really need to delight?

• Pair up, 30 seconds each.

Exercise: 1 minute.

Who is your key customer?

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EXERCISE 5:

• What do your customers value? Do you know?

• What do they want?

• Pair up, 3 minutes total.

Exercise: 3 minute.

What do your key customers value? Want?

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EXERCISE 6:

• What is it that your customers might not like about your product/project/service/event..?

• What might be bugging your core customers with the way things have happened so far, or may happen later?

• Pair up, 3 minutes total.

Exercise: 3 minute.

What do your customers not like?

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EXERCISE 7:

• Now working as a table team, pick one of the projects and discuss how you could delight your key customers more and/or sooner?

• Examples: could you delight your customers by doing less? By customizing? By creating a new business model?

• What impediments stand in your way of doing this? Write impediments on sticky notes - one impediment per note.

Exercise: 4 minute.

How could you delight your customers more?

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EXERCISE 8:

• Now working as a table team, discuss the tradeoffs in delighting your key customers.

• Examples: what delights one customer might irk another - is it worth it? Does delighting the customer costs more, are the returns worth it? Can you find a way of delighting the customer by doing less?

Exercise: 5 minute.

Evaluate the pros/cons of Customer Delight. Is it worth it?

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FISHBOWL PANELREVIEW

Remaining time

How might a focus on Customer Delight enable change in your organization?

How might a focus of better leadership skills enable change in your organization?

If you were stoking the STOOS fire, what would you do next?

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CATHERINE LOUIS • Specialty: Agile transitions in the scope of large, multi-nodal solutions, high-reliability

systems. Enabling change to build speed, flexibility in business

• 20+ years of development experience (software, hardware, services, operations) in complex product development

• Extensive operations and business development experience in technical marketplaces worldwide.

• 12 years as SAR II and K9 handler with Wake Canine Search and Rescue

• find me on linkedin at http://www.linkedin/in/catherinelouis

• find me on twitter @catherinelouis

• find me in email: [email protected]

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Stoos intro

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