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Courtesy of Innovation & Excellence's José Pires, below is a transcript of his speaking session on 'Enterprise Architecture' to Build a Thriving Enterprise that took place at BTOES Enterprise Architecture Live Virtual Conference.
And I want to get very practical with you, on this final segment of Enterprise Architect for Life.
So, I want to go through a, a case study of sorts, but I want to share with you best practices. For building a culture of excellence and innovation. And, specifically, in the context of enterprise architecture, and the AI, and, what I call intelligent business process management. So, these are not my personal experiences only. These are the experiences of over 30,000 excellence innovation leaders, across more than 100 organizations, and 20 plus countries. And so, as I engage on this discussion, I'm going to keep an eye on the questions that you have, And then, to the time that we have allow for Q&A at the end, feel free to ask very practical questions about, how do you apply this concepts in your organization. So, I'm gonna change hats here. Give me just a minute here, because I'm going to change hats, because the background is going to change, and we're gonna talk about how to move.
Enterprise architecture from our homes, to culture, to the, the way that businesses are run. As you know, the ultimate competitive advantage for any business is its culture. And now, start with the end in mind. And that building a culture of excellence and innovation, where enterprise architecture is an integral component of that, is the ultimate game changer. It's the ultimate competitive advantage that you can, that you can have. So, I'll share my presentation here with you.
And, hopefully, hopefully, you all can see that now.
And just confirm here that I'm, the right monitor is being shared.
And as as we go through this, please answer your questions. I'm going to be keeping an eye on them. The first thing that I'm going to do with you, is to pose a question to you.
And my question is, on the context of enterprise architecture, on the context of building culture as your ultimate competitive advantage, where enterprise architecture plays a critical role in that culture, what do you think matters most? Is it about ideas? Is it about methods? Is it about the technologies that we can be talking about, RPA, machine learning, AI, three-d. printing, All this exponential technology they're accelerating right now, or is it about people?
And this is a bit of a tricky question. So, I want you to please go into the question box right now, and tell you what matters most tell me, what matters most. Go ahead and click, is it a thick one. You can only pick one out of the four. What matters? They are all important in different ways.
But there's one that's disproportionally Important, so is it about ideas? Is that about methods? Is it about technologists, or is it people? So I'm gonna give you a few seconds here to answer that on the, on the question box, and the, and I'm going to keep monitoring as we go for the presentation. Very good, Excellent. I already see the, the questions coming in. Very good, Pat. I see your input jab. I see your input well. Done well. Done. Ladies and gentlemen, keep that coming, and I'm gonna keep an eye on on your input.
So, the world of greatness is what I want to talk about in the world of greatness is not easy to digest. Because the world of greatness is filled with contradictions is filled with this forces. There are pulling in very different directions and the force of purpose on one side and discipline. On the other side, it is about exponential technologists bullying in one direction.
And human values of trust, of collaboration, a vulnerability, pulling in different directions, it is about incremental improvements and breakthrough innovations. And that is very confusing, because people like to be one side, or the other, and they get very confused when we have this force is bullying in very different directions. And there is no greater contradiction in the world of greatness. Then the contradiction between excellence and innovation. Because excellence is pushing, pulling in the one direction. Excellence is all about setting performance standards and meeting and exceeding those performance standards Consistently.
The world of excellence is all about efficiency and about, you know, having a plan and meeting and exceeding those plan expectations.
The world of innovation is pulling in a different direction. The world of innovation is about, yeah, I understand how things are, But, how do we get you a breakthrough innovation? How do we take a leap from where we are? Because we cannot, we cannot design cars by squeezing efficiencies out of horses.
So, there is this natural friction and tension between the world of excellence and the world of innovation. And I'll pause achieve you that the great enduring organizations of our time, they have found the right blend between this very contradictory forces.
So, I will talk to you as we, as we go through the presentation. I will share with you this very critical concepts that emerge, not from theory, not from reading books, and great authors, which I have done.
But, what I'm going to share with you is, based on the practical applications of those concepts, I am not a visionary leader who has the ability to predict the future. None of us has that ability. There are only, as a matter of fact, there are only two types of people who predict the future, those who don't know. And those who don't know, that they don't know. So you have to choose which one are you. The real visionary leaders that I have worked with what they are, are very empirical leaders. There are leaders who are constantly experimenting with different approaches, And then when they see something that works, they try to understand why it works. And once they understand why it works, they scaled that. Now, for the outside world, they seem like geniuses, who can predict the future internally.
They are working really hard on a system that allows for quick experimentation and really getting deeper onto the items, that work and understanding why they work. So I'll do a brief description of my journey. I'm originally from Brazil.
I was educated in the United States with a background in engineering physics, and investment banking and entrepreneurship. I got my first job working in Japan for Sony, and understand then, that was a time when Sony was the leading technological company in the world. And and I got to experience what innovation a very fast space looks like specifically techno technological innovation. and I'll share with you that the lessons from from, from Sony as a technological leader of its time, is that innovation doesn't care about our agenda, race, ethnicity, or how many certificates we have hanging on, the I Love Myself wall. When it comes to real innovation.
There are four traits that separate great innovators from the rest. And those straights have to do with a strong sense of purpose.
Tremendous passion for what you do.
High levels of discipline, which is consistency with purpose.
An incredible ability to have resilience, when faced with challenges. Now, I will fast forward for their through time. Because of our time. My next experience was, with, I started up in California, that changed the world, Simer, which today is same or a SAML designed, the laser systems. There are, there were breakthrough for semiconductor manufacturing, in a time where we all thought that Moore's law was going to stop because we have made circuits as small as possible.
Well, there comes a breakthrough technology on excimer lasers developed by simer.
And we were a startup that, in five years, went from, really, nobody knows who you are, to, over 90% market, share, and the revolutionize semiconductor micro lithography to this day, the processors are image with this technology. And that allows us to continue with Moore's Law for the foreseeable future. I then became the innovation leader for Nestle in North America, and the lesson for Nestle, was that 585 business units, 350,000 people around the world.
Where do you start?
And the lesson is that, when you want to accelerate innovation, when you want to, Indra, you know, implement, know, best practices, enterprise architecture approaches, you have to be empathetic to culture in a system like that. Because, as we all know, culture eats strategy for breakfast, and whatever initiative you have, their own enterprise architecture just becomes a side dish to culture. So develop a great empathy for culture. You have to meet people where they're at. You have to meet organizations where they're at and you have to appreciate the diversity of perspectives and subcultures that existing large organizations, and then the last two of which I am going to spend a little bit more time on 15 years that I spent in the ....
As a corporate leader with energy, organizations and infrastructure organizations are very difficult environment, because technology and innovation and enterprise architecture are not really that critical for a lot of the biggest earners in that industry. So how do you sell a proposition to an organization like that? where what you have is not the most important thing that they're working on? I'm not even near what's what creates the most value for them. And then you have a culture that's not really aligned with this, you know, with, with change and innovation. And enterprise architecture is specifically so, but these organizations are the ones that created the most value from this activity. So, we're going to talk about how they got there.
Now, I'll go for this concepts. Quickly, because of the time that we have allowed. I mean, we literally spend five days on a masterclass on just this topic, and I'm going to summarize for you in the next 25 minutes or so. So, let's start with some definitions here about what is intelligent business Process Management. And the, and you can turn that, you know, depending on terminology. You can think of that as part of Enterprise Architecture, in some organizations. They think of Enterprise Architect really completely, in the context of Intelligent business process management, but the definitions for each here, for you to read, is intelligent blinding of store ship with the wisdom of your organization, and proven methods to identify, prioritize, and implement significant value, creation, business, process designs, improvements, and innovations.
There is a lot on that definition, nowhere, and there, it says, anything related to technology, or AI, or machine learning, or RPA.
Interesting stewardship and the wisdom of the organization, interesting, will keep going. All right.
So the I BPM Maturity Model, you are familiar with this, several of you have an IT background, it's very, very close approximation to the maturity model that you would see on related to IT. You know, you have levels of process maturity, that goes from the lowest level, which is recognized to the highest level, which is optimized. And I think the key takeaway here is that most processes are not worth having.
So that's a discussion to be had, and the ones that worth having, you need to have them a defined level.
Then it doesn't become a quest for becoming management and optimized. You have as a value creation leader in the organization with your EA hat on, you have to identify, which ones of these business processes are worth taking to those levels of management and optimization.
You have to look at your cost benefit, and your return on investment on those areas, so, not trivial, that not all processes need to be optimized now, and there are levels of intelligent business, process management, innovation, as well. And, and, I'll share that at a high level. Again, this is just fundamental. You have 70%, and this is based on practice, is based on over 3000 organizations. And looking behind the scenes on their innovation programs, 70% of what they do, and the innovations they do, is that the core of the business, 20% are adjacent store extensions of that core. And only about 10% are what we call disruptive innovations. And, when you call about disruptive innovations, we're not talking about technology. We're talking about business models are being disrupted.
Now, technology can be an enabler for that business model disruption, but it's not necessarily the, the only enabler, or even the most common enabler. So, this is important, because, in a lot of your organizations, people, and especially the folks in the business, who get their coverage on innovation from the media, the media, spends 100% of their time. On 10% of the portfolio, which is a disruptive time, and you type, and usually focus on technology. And that's the perception that needs to be change in your organization. If you're going to have a holistic improvements. And innovations. Let's keep going here. So, what are the pillars of success For, IE BPM, front, value creation standpoint, not from a marketing standpoint, not from that. Oh, we're so good, because we use this cool technologies, but we lose a bunch of money. I'm talking from value creation standpoint, over 10 years plus one, what does this organizations look alike inside, and what are the pillars of success for them?
And there are three pillars that we have identified.
The number one is governance, and governance has defined roles and the structure for a BPM value creation within that organization. We'll talk about that.
They have methods, but this is really interesting. They have very discipline approaches and methods, proven methodologies.
Most important, they have clear execution mechanisms to translate the principles of enterprise architecture into action and value.
And they develop this common language that's often associated with the method, but doesn't have to be, sometimes, it's driven by the culture itself, but I have to mention to you that the methods are important, but the method that you choose is less important.
It is important to have a method, It's not as critical to have this or that method.
So this is an important lesson.
And the third item, and the third pillar for a BPM value creation is a collaborative leadership that's widespread in your organization. And, this requires the skill development for all professionals on collaborative innovation for value creation.
And this is an area that a lot of businesses struggle, because it's not that you don't need a hierarchy, is not that the hierarchical model is broken unita hierarchy, but within the hierarchy, the great in three organizations, they have collaborative leadership that works with the hierarchy very effectively. And this skill development is, is a is a trademark of the of the great enduring organizations that create the most value from Enterprise architecture from the concepts of Intelligent Business process management farewell. So, let's go through each, one of the pillars, in summary, fashion offer, a governance standpoint, What are the roles that you see in this organizations? They do not have a, you know, this, this governance, by the way, in this, this roles that I'm going to describe here, this is not new. People that you have hired.
These are roles that people in existing functions assume, OK, so again, this is an overview: at the highest level, you must, they have a very clear ownership structure. They have clear ownership structure for the business. We have clear ownership structure for the key business processes. As you know, for an EA perspective, if you do not have data ownership, it is very difficult to, to have effective applications of those, of that of that data, because the data source may become unreliable deal. The ownership of that is, is, is not clear. And often you have poor quality data that permeates that. Now think more broadly from a business standpoint. That same level of ownership is true for the organizations that do the best. They have very clearly defined ownership levels for the business and for key business processes. Then, they have a layer of collaborative leaders and entrepreneurs in the organization.
These are not necessarily the high level hierarchal leaders. These are individuals across the organization will have highly developed collaborative leadership skills that work across their organization and within silos. To deliver the most value in the shortest time is simplest means typically for certain discipline approaches that I'm going to talk about later. You typically have a coach who is basically not some Master of Methodology.
But I coach who is a master on intra partnership and collaborative leadership, a serial entrepreneur who has delivered millions and millions of value creation to the organization consistently through his or her initiatives and projects.
That's, that role is very important. Sharing that expertise with the teams. You typically have a champion that is a hierarchical leader different from that process owner who has authority over certain areas in the organization. Also provides political guidance to the, to the teams, and the strategic guidance to the teams on the directions that we're taking, and making sure that we are aligned with the strategic and cultural directions of the organization. And ultimately, you have a select group of senior leaders who form is still a steering committee, who oversee the functioning of this, of this, of this program.
Now, this is a summarized structure that provides this building blocks to achieve discipline. I BPM, value creation, now let's talk a little bit about the methods. The structure is very important. What methods do they see, what methods do. We see that they are, we have verified that they're using.
There is like tens of different types of methods that are used, but there are four methods that show up most commonly on behind the organizations that are very good at delivering systematic value creation. And, while we see, there is a combination of innovation methods, where, there is a discipline of thinking different, and innovate, and there are different, we can spend a lot of time in each one of these methods. I will, not because of our time, but, there is a very disciplined approach to innovation. There is a very clear hierarchy of, for business process management, with clear end to end process ownership, which is a battle all by itself. To have senior leaders in the organization understand how we create value for our customers, and how we align our business processes, and to end with clear ownership, to deliver that value to the customers. Is, sounds easy.
It's incredibly complex, it takes decades of work in some cases, to fine tune, a structure like that, Then we have the more.
The more, what I would call, efficiency methods that you apply to the system, you have Lean, which is all about creating a reliable, balanced workflow for a Pull System. Increase speed, eliminate, waste. Wonderful stuff. You can put ajao in that, if you are like from a software background, You and you work on Agile, Scrum. All of those things are derived from Lean concepts. You have six Sigma, which is about reducing variation to satisfy customers, because the customers do not feel the average of your process. They feel the variation of your process.
Now, this methods are interesting, and these are the four most common methods that we see in the most effective organizations, But keep in mind: the methods alone do not transform businesses, people do, listen.
I am a certified Lean six Sigma Master Black Belt for over two decades, but when I tell that to people, most of them, most of them think that I have a dangerous mental condition. When I'm talking to executives, they could care less about that. There are interested on how I'm going to create the most value, the shortest time and simplest means. So these methods only makes sense if they're helping you create the most value in the shortest time and simplest means. So keep that in mind as we go through the last stage of value creation, maturity levels with the last pillar, which has to do with value creation, maturity, math maturity levels through a BPM.
And on this one here, this is about the development of collaborative leadership in your organization. And what you see is that, for organizations to create a lot of value through Enterprise architecture technologists, intelligent business process management, often starts with individual brilliance. You just have someone in your organization.
It could be you in this conference today, who is just brilliant. You know, stuff you're like, you love what you do. You have tremendous amount of passion about your EA, you are discipline about it, you're good at bringing people together, and making sure that your ideas get implemented. You have the resilience that is necessary to overcome challenges. Wow, you're the full package. You can create multi million dollar quote organizations, without any single individual like that. Congratulations. I work with great entrepreneurs who have done just that, and continue to do that today, and intrapreneurs who do that within organizations. The only problem with that is that you're going to be a successful, multi-million dollar corporation. Very difficult for you to be a successful multi billion dollar corporation. Why? Because your individual brittleness is not easy to scale.
So what we see in the multi-billion dollar successful organizations is the next level. And then next level is about scaling that individual brilliance.
And you do that through IBM systems and mechanisms that translate the principles that this individual has naturally into action that creates value for the entire system. And what you see then, at that level, there's multi-billion dollar organizations, which are prospering are growing, is that they have the governance in place. That governance that I just talked about, it's in place. It's clear.
The structure is there, the roles are clearly defined.
It's it's very clear how they accelerate innovation, collaborative alluded leadership, development, and value creation for clear roles and responsibilities, and the structure. And several of them also have now evolved to create what we call girls and technology accelerators where they have this small batch that they are placed in a lot of different technologists and testing them and see what works, what doesn't work, and what works, They're looking for, how to scale, what works. And there's very deliberate growth in technology. Accelerators are very common port of the part of this organization's listened today around the world.
When we talk about the best organizations that draw a lot of media attention, they are at this level, OK. And these are some of the best, most organizations will never get to this level because of several issues related to cultural, related to the individuals that they have in the organization and the market conditions, blah, blah, blah.
The ones that make it to that level have this, I have this characteristics and are built on this, on this items. Now there is still one additional level and this additional level is a bit of a panacea for value creation, innovation, enterprise architecture. And it's incredibly hard to get to the next level.
Because now we requires you to build a culture where enterprise architecture, new technologists, innovation are all aimed at creating value for the professionals, for the customers and for the enterprise. Is sounds really easy. It's incredibly hard to do. That is why most organizations have not written, have not reached it, and they will never reach it. Because it's it's characterized by broad, collaborative leadership and innovation acceleration skills development.
This is not a small group of people that you pick the select few to be the drivers for this initiative in your organization. It's actually a self selected group of people in the organization who have developed this collaborative leadership and innovation acceleration skills, typically through a discipline approach, and it's very broad in the organization. And at this point, this level, you're talking about the trillion dollar organization. This trillion dollar organization is built on a clear purpose for the organization, and individuals will have a personal purpose, which are aligned with the purpose of the organization.
It's built on culture, building a culture of excellence and innovation. That permeates all that you do. And a strong set of core values that you live by every day.
So collaborations innovation and value creation are the ultimate measurements of of a BPM effectiveness and also of enterprise architecture effectiveness. And I want to pose this to you.
If, If you judge your enterprise architecture program by a set of metrics and value creation is not one of your very top metrics, you need to re-assess that because you're disconnected.
So, let's let's let's go further. So, what does a typical journey I'm going to, I'm going to show you now at the context. I want to get practical here very quickly, on a specific context.
This is an energy organization that, in that, went to this row to the eye BPM value creation, but they didn't start with that. They started by the early two thousands, hiring an incredibly expensive consultant, to come in and due process mapping on everything that they did, and the high performance teams, that would go make those improvements. Well, they, they got the process mapping done, but there was no benefit. And the implementation was very sketchy over a two year period. Because people saw the complexity of what they're dealing with. They became overwhelmed by it. And they went back to do their day jobs while they went on to develop a Lean six Sigma program because now we're going to be more target on the initiatives that we have. And on the other initiatives we have an organization that was good. That develop, that was a 70% implementation rate, $90 million in annual benefits on EBA that, which is terrific. And but they still had very large bats in large scope issues that we're not getting done very well.
And it was not until they if they implemented an effective process ownership in the years ahead, that they quadrupled their benefits. And they went from 70% implementation to 99% plus implementation over more than a decade.
And that ladies and gentlemen, is you may look at it and say, well, that's common sense.
Common sense is the least common of the sense, is in large organizations.
It's incredibly hard to do this things into each institute, clear end to end process ownership and your organization. Organizations are complex and layered.
people come and go, and it's very difficult to do this effectively. Now, let me share you a bit of a high level view on how it's done effective on an energy organization, just to pick one as an example. This is intelligent business process management for an energy infrastructure company. Now this is at the highest level, this is incredibly important because it's not you and I talking about EA, it's about us sitting with the sea level in a multi day.
Exercise on understanding and defining the key business processes for our organization, agreeing on them, and then committing that. Those are the ones.
Those are the way that our business functions, and this is the way that we're going to carry our business forward. This sounds simple, it's incredibly hard to do. because you have to align political agendas, personal interests, and everything else that happens, the complexity of a re-organization at the sea level. And what you see there in green is what this organization agree is most important for them. This is incredibly important because mostly levels never did this exercise.
Most levels could never agree on what is most important for the organization, no wonder that you deal with all these conflicting priorities and the lower levels of the organization. So we, starting at this point is incredibly important and difficult to do.
but not in not sufficient. That organization, for example, is an organization that prides itself on doing multi-billion dollar projects.
Project teams are king, so this talk about defining the organization as a set of critical processes is foreign to them doesn't make sense. Because, I know multi-billion dollar projects processes are kind of in the background. I don't care about them. Well, you have to reshape that and tell them that that's true, that we do multi-billion dollar projects. But we need to create an infrastructure for our processes for our EA as well. Choose support, all of these projects effectively, and that organization, a long range, 11,000 different unique projects per year, and these are large projects, I'm talking about building a power plant in Thailand or a or a water facility in Egypt. And these are very large, complex infrastructure projects. So the role of intelligent business process management, and I'll say, for you, Enterprise architecture, is to, is to understand what execution excellence looks like.
And then build the process excellence that allows you to do that. And I BPM, and you can look at that as EA in your context, is an interface for that.
Now, let's get on to the next level. It's this, these are interesting concepts, but there are complex. So how do we simplify, And we have to take this jar organizations, because of the overly complex ways that organizations are layer the complexity of our business is the complexity of our customers. And I want you to keep this concept of innovation for simplification in mind, because this mindset is going to help us tremendously as we, as we look at ways of making a VPN more effective and organizations, so. So keep this concept in mind, you'll all surrounded by complexity, and, and people come at you and say, Whoa, you know, you need to do this other thing here for me. I need a new system.
I need a new tool, and the, but you have to remember where whatever you are in your organization, that when you're asked to do more, you have to remember, you have to step away from it. And you have to remember that perfection is not obtained by adding things to systems. Perfection, real perfection is only attained when there is nothing left to take out. So I want you to take this perspective as we look forward here because Great EA Teams, great ... teams as they help leadership in this very complex journey. They are very good at understanding what is the essence of the problem. And not wrapping up complex solution around the complex problem. They attack the essence of the problem. And the way they do that is incredibly simple.
They do designs. there are incredibly simple. And yet, most people fail miserably at executing this, and the enterprise architects are very guilty of this, because instead of automating things, which is what you normally here, you should be thinking about how I'm going to eliminate first. Hartmann going to reduce next. And then, after I have the most simplified version of what I want, I automate that.
But I would posit that most of you and most of our organizations, do not follow this common sense steps, because you get busy with the complexity of the world and the work that you have to do on a day-to-day basis.
So you have great, enduring organizations are very good at zooming out, from the whirlwind of their day jobs enabled to apply this very powerful principles, which are very simple. But very powerful. And they are. They apply these principles with discipline. So I want to get into the weeds with you. Let's talk about a specific context. On on this organization. We ran over 2000 innovation projects per year.
You heard the right 2000 innovation projects. Most of them had an E a clear component associated with them.
That's overwhelming. I'll do, you do, how you manage a system like that. So, let's get into the details of a specific project. This is a one billion dollars powerplant that includes design, procurement, and construction of more than 120 different types of unique and complex valve control stations.
The engineers in the company that work on this, on this, on this designs, they said, we need your automate the valve control station design process.
Oh, really, Tom, let's automate that. They spent two years trying to automate this and they couldn't get it done.
Why they had the best designers, the best software engineers working on this. Why did they couldn't get it done? They couldn't get it done. Because they're automating the complexity of that process 120 different designs For every single power plant. You have multiple power plants, the multiplication of the different designs becomes overwhelming.
So they kept trying to automate that complexity.
They should not do that. They should eliminate first. They should reduce next and automate last, but they didn't do that for two years, and these are very Smart people Very incredibly capable. EA architects and and software developers. I so we took the right approach. Let's understand the complexity. 122 different designs valve control stations, and even the highest level is a complicated thing to do.
It takes a long time to do each one, so ask the question, What are, what are what is the essence of this process?
Are there things year that we could eliminate if we're not doing special cases? And when we did that, we look at the non value added activities of this process, we identify all of these areas as opportunities. Could I get rid of them? Now if I got rid of them, I wouldn't be able to do the work.
It's not that simple.
So what do I need? What do I need is collaborative leadership. What do I need is to get someone to get this team together? This is 120 different designs and say, Is there a better way, can we, can we simplify the way we do things?
Then for, for a number of days, people are arguing back and forth and saying, There's no way, because what I do is very unique. And this is how they need in Thailand. And this is how they needed Ireland. And this is how they needed in Brazil, and they're all special codes, and they threw all this complexity at you.
Great collaborative leader is able to work through that and with the team, and then eventually they come up, well, maybe we can create a standardized approach and there are fights about standard diets approaches because everybody wants to standardize approach as long as it is their own standardized approach. And now, we have 120 different standardized approaches around the table. How do we do that collaborative leadership? Ladies and gentlemen, and this is not easy, It is not something that is not a skill set.
The most people have been trained on, on the discipline of collaborative leadership, But having that, and that's what was done in this system. We're able to get the group together, not to agree on one way of doing things. We agree on six ways of doing things. that would account for 80% of the design functions on those five stations. And when we did that, we came up with a process with six designs, that was 20 times faster. Now, this process that you see here for Evolve State Control station took four months for us to agree on.
It wasn't about the technology, it was about the alignment in the business.
Now, this is a lot easier said than done.
This, six designs now, they were now at this point, simple enough, stellar enough that I could automate them on a software called plant vision. We did that implant vision, and now we have an automated solution. But, so, it took two years initially to do it, the automation.
And then we got the automation done, in the matter of 3 to four months.
As a matter of fact, the project was 3 to 4 months. The automation was done after that, was done. and about two months after that.
And Jen to this day does the way they do the designing plant vision, literally pick out one out of six options, put on the design, and then you spend additional time doing. the 20% customizations are needed for every part of the world. So, think about doing something like that in your organization at scale.
What do you need for that AI, RPA, machine learning? Now?
You need shoe build a battalion of collaborative leaders in your organization who can do that effectively across the organization. And these are not easy skills to develop. And these are not easy people to find because they must have a blend of technical skills and highly developed interpersonal skills.
So, with that, let's go back to what matters most.
I saw a lot of your answers. Just fantastic. Thank you for providing those, are a lot of quite, a lot of You picked people, a lot of you picked ideas. A lot of your methods technologies. Alright.
So, ideas, methods, technologists, or people, I'll summarize by saying that ideas are everywhere. What are in common? Are people willing to put the reputation behind ideas?
People have the purpose, the passion, the discipline, and the resilience to get it done.
Methods are important, but methods will not transform businesses.
Technologies are great, but technologies are like romantic lovers. They solve one problem in the short run, and they create 10 new problems in the long run.
Unless it is the right technology, and the right technology is the one that enables your process to go faster, cheaper, and better.
But it's a problem view, not a technology view, as most of you know, in this, in this audience, because you're very experienced.
And then it comes to people, Is it about people? Sounds like a good answer, right? People are the most important asset.
That's not completely true, is not about people. It's about finding the right people in your organization. And I want to show you a couple of examples of that. what the right people look like. This is an organization in infrastructure and energy infrastructure, where, for six years, we operated with them with a very clear Lean six Sigma program that are creating value for the company and what it was focused on ideas and methods. For six years. There are very successful. This is the value creation for the organization, and EBA, which for that organization was fantastic.
The number of people in green that were being part of it, and they were there for six years, 99% of improvement innovation programs in organizations die between 3 and 5 years. So, they got to your six. So there are part of the 1%, and then they hit a major crisis, They hit the 2008, 2009 financial crisis, and the organization needed to decide, which way we're gonna go with this, Are we going to get rid of this program? We said, No, let's change it. Let's make him more entrepreneurial for The methods are important, but let's focus on the finding the right people. How do you find the right people shows that you find the right people for the test of execution. You, as a leader, you have to create a mechanism, clear execution mechanisms to translate the principles of innovation, introverted creation, and the dose execution mechanisms.
You have to have a clear meritocracy of ideas and allow everybody to participate. But only the ones who are able to deliver results get to emerge from it.
Wow. That's like Shark Tank within the organization. Actually, it's much more discipline than that, but let me show you the results, because of our time here, this is what the results look like. Everybody thought it would be a disaster because we have all this discipline approach to improvement innovation. And now, applying this new approach that is focused on just find the right people, the right collaborative leadership skill sets would not work. It did work, not only work. We had exponential growth and value creation and engagement across the organization. This organization engage after 10 years. This is unheard of 99% of programs that within five years, I've never heard of a program that after 10 years is growing exponentially.
And the way they did it, is because this, people deliver that value. And they went on to become, the, the, the when the Global Award of Excellence and Infrastructure. Based on their collaborative leadership and results that they created. They were ranked the number one US private company for leaders and leadership development by Chief Executive Magazine.
And they won the Global Business Transformation Operational Excellence Award, which is the Beatles, the organization behind this conference is here. So I want to summarize this for you. This is a lot of information at you about the practices of the great Enduring organizations in our world today. So this is what it looks, likes, lady, Ladies and gentlemen.
The great people, this great collaborative leaders in your organization, they are there. They are hidden. Most of them are suffocated by the systems and that you have in your organization, and the ability for them to actually deliver value for the organization. Unclear meritocracy of ideas, unclear execution mechanisms, to translate the ideas into value creation. Talk about KPIs and metrics related to IT performance.
When you should be talking about value creation for the business, If you cannot talk about Ebola, you're not in the business. Just think about that.
If it's for-profit, even non-profit organizations need to think about that. Now, your job is to create a system, a meritocracy of ideas with clear execution mechanisms, where those individuals can emerge.
Where are you? Because you can only find those individuals for the tests of execution.
I don't care about their GPA, how many certificates they have on there. I love myself, well. It doesn't matter. You're gonna find them for the test of execution only. They have purpose, passion, discipline, and resilience. Now, what you do with those individuals is that you are allowed them and their teams to take different perspectives, that problems. You give them the freedom to think differently about the way that we're going to do work.
Most important, these individuals, they must have courage, because what they're doing is hard. They are taking the leap. They are taking that, that jump from the bridge.
They are managing risks very carefully.
But there are managing risks in the context of the: In that context that they can understand those risks. They can manage those risks better than others outside of the organization.
And most important, your job as a leader in an organization like that is to create an environment where great people and great ideas can connect Because you don't get to be a great, enduring organization, $1000 billion organization, by providing people with financial incentives. I give you a million dollars, wonderful. Most of you would retire, because you do not have passion, purpose discipline, or resilience around the work that you do.
So those are not the people that I'm looking for, I'm OK. What the, what the practice shows consistently is that the great under your organization's? This people are driven by a purpose, and the work that they do is just a means for that purpose. So your job as a leader is to create an environment where these great people in this great ideas can connect.
And when you do that, you create a comparative advantage in your culture that is incredibly hard for others to emulate.
So steps for you here.
Take discipline action. Out of this crisis, are the best opportunities for you to help build a culture of excellence, and innovation. Innovation for your organization. The time is now, is not later.
You have to take discipline action. And you may think, but come on, which I'll say, you're usually talking to C level folks. I'm not a C level person in my organization.
Whatever you are, you're a department lead. Do that in your department.
You are under the VJO contributor Wonderful, develop your innovation acceleration skills in your collaborative leadership skills.
Whatever level you are, Apply these concepts. Take discipline action and hear what it comes to come to. Be consistent with your purpose, and leave your core values. Especially right. Now, in times of crisis, In times of crisis the best of our values. And the worst are our values are exposed. Be very mindful about this dish, the shadow and that you're casting when it comes to your core values.
Be consistent with them during this time because people will remember, build your eye BPM, NEA governance in a meritocracy of ideas with clear execution mechanisms. Make it accessible to everyone in the organization.
You'll have to make it a democratic system, yet you'll have a vetting system to identify what creates the most van in the shortest time in the simplest means.
And then you are you actually very tough on getting on people getting started.
Out of 2000 innovation projects that we did in that one organization, that in 2010 was a $2 billion organization in 20 18. That organization was sold for $36 billion, over one billion dollars in EBA that.
In additional IBA on an annual basis, in the last few years, how do you get there?
You get, thereby making it accessible to all the organization you get, thereby, create a meritocracy of ideas with clear execution mechanisms. This requires the met, tremendous purpose, passion, discipline, resilience for everybody in the system, a very strong alignment with purpose and strategic objectives. Now, invest in your people.
When you invest in your people, yeah, invested their technical skills, that's important.
But develop their collaborative leadership skills.
Collaborative leadership skills are key differentiators that I can think of in the next decade or two.
As you know, technology will keep growing exponentially. It will keep changing exponentially.
Collaborative leadership skills will be critically important across the multiple levels of technological development until you don't need people anymore at all. And at that point, I would say, collaborative leadership skills are not as critical. We need to move to something else.
Innovation acceleration skills is related to that, and it's not just about learning technology. Again, when I talk about innovation here, innovations and implementation of new ideas that create value.
And when you implement new ideas that create value, the acceleration skills that you need for that have more to do with infra ownership, Have more to do with collaborative leadership that we've talked about before. But has more to do as innovation as a discipline.
Process. Innovation is not an escape from discipline thinking. It is an escape with discipline thinking. You must learn the discipline of innovation.
And that's very important, that's a whole session to discuss that.
And last, when you create a meritocracy of ideas with clear execution mechanisms, you need to lead the tasks of innovation. Execution revealed. Those who have the purpose, the passion, the discipline. The resilience to collaborative lead innovation value creation for your organization.
On your EA teams, you need to find who, in your IDA teams, and you need to address that question first about yourself.
Who has the purpose, the passion, the discipline, and the resilience to get value creation done at scale, ask yourself the question.
And finding those people is the critical lever for scaly into the trillion dollar organization.
Now, I do not have ability this, this visionary ability to predict the future, but it is, Yana, I will share with you, that if you, the companies that get there, they have built a culture of excellence and innovation as their ultimate competitive advantage. That's that's what I can share with you. That's the lesson, the ultimate lesson that we have learned. It's incredibly hard, because you must have passion.
Purpose, passion, discipline, and resilience, with a very clear purpose, for a long period of time.
And you must have to be willing to withstand the pain that it takes to get to that purpose over a long period of time.
Now, and not just be looking for, Oh, I wanna become an EVP at a Fortune 50 company.
Listen, We all are going to be dead in the next 50 years.
Water, what is your contribution between now and the time that you check out of Planet Earth?
So, think about that. As you discover. What are your true purpose is, And your work is just a means of getting there. Now, if you want to stay connected, working across conferences in this. In this area. Many mult associated areas, and also working with lots of great organizations from the most technologically advanced organizations to organizations that are hidden to most of the business world. We share this experience is live on LinkedIn. We engage in real life discussions. That is my purpose, That's what I'm going to be doing between now and the day that I check off of Planet Earth. So, Because I have the privilege of closing the sessions, we have another eight minutes or so, I'm gonna look at yourself, and your questions here, and I'm going to answer them as, as you pop up.
So, I didn't have a chance to do that before because I was looking at the presentation. So I'm going to pop up here.
The questions that you have asked, and I will answer them, and in order. So, first of all, thanks everybody who participate, lots of great questions here. Lots of people voted for. People. Most people voted for people. Manish you wrote. Culture eats strategy for breakfast. I like that a non people jab, thought was ideas and Jab, specifically you asked a question here about a couple of questions, one about perfection being transitory and contextual. And also, can you speak about data ownership and governance?
Often the same data elements are used by entire different silos, for entirely different purposes, very good questions. So let me start with the the perfection as a transitory and contextual. Absolutely.
Perfection is a moving target, and as a matter of fact, if we go back to the very beginning, when I talk about the contradictions of greatness, forces pulling in different directions.
What you see in great enduring organizations is that contradict shirt contradiction at play, and very specifically the contradictions there are at play.
There is that on the side of excellence, you have perfection. You have performance standards meeting and exceeding those performance standards and those performance standards is a gage of perfection, if you will, and if you meet them, you're doing well. If you exceed them, you're doing better, but, when you meet the performance standards, what do we do with the performance standards? We move them right, the performance standards get change. Now, perfection has become a moving target. So, in the world of Excellence, is a bit, It's all about perfection is the mindset of perfection.
The world of innovation is a bit different, The world of innovation is perfection from a different path, because in the world of innovation, I'm not thinking about how I'm going to squeeze five or 10% performance out of the horses. I'm thinking about how to design cars into design cars. You just need a whole different perspective, that the problem, the essence of innovation is the ability to take a different perspective at problems. So, when you're taking those different perspective, that problems. And you're innovating. What are you're gonna find out? You're gonna find out that you're terrible. You don't do this well, This idea is that you have about how to do it different. None of them work. You're failing. Failing, failing, you're failing often. Just succeed sooner. So, where the perfection of fitting their perfection actually can be very degrading on the world now, because it can be demotivating because it becomes impossible. Showed that I give up. It happens quite often. Honestly, I'm an engineer.
Most of the people I work with, our technical people and engineers, and they have kind of this bimodal way of thinking of the world. Kind of the all or nothing, thought processes that engineers and technical people have. I'm not gonna do anything unless it's perfect. So that can really limit your ability to innovate. So you, so it's all about, again, blain than the forces. Perfection pull in one direction and pull in another direction when it comes to excellence and innovation. And it's not one or the other. It depends on the context and the context of operational excellence, for example.
Perfection can be valid in terms of performance standards and reap meeting and exceeding those performance standards in the context of innovation. I often say, don't get perfection. Get on the way of good enough.
Now, here is the here is the challenge for you. How do you reconcile those statements in the same organization?
People will look at you and say, Well, you're full of contradictions, or, you, you know, you don't know what you want you to say one thing here.
one thing there, but that's what it takes. What you need when you need to say and do, depends largely on the context if you're in the world of excellence or if you're in the world of innovation. And it's very important that we develop his ability in our organizations to think with this duality, and that's why I have the quote from F Scott Fitzgerald right in the beginning. The ultimate test of innovations, the ability to, of intelligence, is the ability to, to, to keep two very different concepts in your mind at the same time. And you still retain your, your, your, your ability and function, ability to function in that and they're very chaotic state. So very good. So let's look at what else you have here. It's always the last brick that takes the most rate in are, there are lots of questions. Let me get the right one. How do you build purpose, passion, disciplinary resilience? In newly assigned business leaders is still going up, the learning curve.
That is a fantastic question. Very, very good question.
So, Rula, let me tell you this: This is experience, OK, based on empirical evidence, and there are researchers and there are people who are writing books about this, and doing reveals for them to help them on their books. But, I am not writing books. I'm I'm, I'm, I'm too preoccupied with my purpose right now to be writing a book.
So, eventually, I will, but, here's what we have learned, that the people who have the straights of purpose, passion, disciplinary resilience, they, some, are most of them.
This is based on over 30,000 practitioners. Keep this in mind, observation of this practitioners.
The overwhelming majority of them have have this combination of they have some genetic traits that I can only say genetic traits. They have instincts about it.
They have a certain hardships in their lives that they have overcome very effectively, and they have built some of the skills. So I assume it's a combination of genetics and also a skills and coping mechanisms that they developed through the, the adversities and life experiences that they have had, So that's one big component.
The other very large component is that they developed it, that they continue to develop. They became self-aware of their purpose, of their passions, of their discipline, and their resilience. They identified those through some life experience, as important components, and they kept working on it to develop it.
But here's what I do, when I go into on the organization, and I don't know who the people are in there, I will take me a decade to find out, who are the people of Purpose, Passion Discipline, or ..., I don't do that.
So, I don't. There is no interview questionnaire profile, myers Briggs personality test. That gives me the people with purpose, passion, discipline, rosiness. I actually have that for the psychology community to develop better tools for that. There's none that works right now. Then Ketterman, in the Israeli army, spent decades trying to figure this out. He's a Nobel Prize winner, and he does not know. He is how he does, and he is how we see that he works.
The only way to find these people is through the test of execution. This is very common actually in militaries around the world. You do not find your best warriors, which typically have the similar traits, by the way.
You do not find your best warriors, Bye.
Doing them psychological tests even through Bootcamp.
They are only revealed on this theater of war.
And we don't want to have theaters of wars in our organization. But what we create is a meritocracy of ideas with clear execution mechanisms. You give an equal opportunity to everyone, you make the system for identifying, prioritizing, and execution, executing recreation ideas.
You have an incredibly disciplined vetting mechanism to choose the ones that create the most value in the shortest time and simplest means.
And then you'll let people go ahead.
And what you'll find out is that there will be about 20 to 30% of your workforce who will be like, Wow, this is amazing. I'm going to show what I can do.
And out of that group, you're going to have a smaller fraction who get it done, who have the purpose, the passion to discipline, a resilience, to vet their ideas, to mature their ideas, to execute their ideas, and deliver great value. creation, is strategy execution for the Oregon for the organization. Only for the task of execution, they are revealed I have, on the entire presentation, just on that, because it is so critical. Because the the whole competitive advantage of the great Enduring organizations is that they have mechanisms, starts of their hiring for programs. And then they are called affirmed by their business practices day-to-day, with clear meritocracy of ideas and execution mechanisms to find these people. Finding these people is the greatest lever for a scaly to that trillion dollars level.
And do you only find these people for the task of execution?
So, ladies and gentlemen, there is no better way of finishing the session that on that note, It's not about methods, It's not about ideas. It's not about technologies. If you're gonna be at the highest level, the gradient during organizational level, which is reserved for very, very few in the world to reach that, which it takes a decade plus of development to be there.
If you're gonna be there, it's about people, not all the people. It's about finding the right people in your organization will have the purpose, the passion, the discipline, and the resilience to accelerate innovation, collaborative leadership development, and value creation. So, it's been an honor to be here with you today. Next week, we will kickoff: Digital Transformation Workplace Live, Have tremendous speakers from Amazon, from other incredible organizations, from all over the world, we're going to be sharing their experience with you, especially in the face of the pandemic that we have experienced, how digital transformations have accelerated in the workplace.
We're going to be talking about that. We'll continue the conversation on LinkedIn. Go in there and make a comment about the sessions that you have had here, and, you know, any insights that were helpful to you. Let's talk on LinkedIn, leave a comment there. I truly appreciate your engagement with us. Lots of things going on in the world right now. And we value your time. And your ability to be here with us. Have a great day, everyone, And we'll see you next week, Remember, we will send you the recordings for all of the sessions and any materials that were provided next week via e-mail as well. So hang tight. We'll do some processing over the weekend in the early next week. And by the middle and end of next week, we should have the mayor with you for you so that you can access all the sessions. Thank you very much, for everybody from around the world.
We have more than 20 countries in the sessions, and it's a real privilege to host the sessions and, uh, and share this knowledge with everybody. So, thank you very much. Have a have a great rest of your day.
Former Global Vice President of Enterprise Business Improvement & Productivity,
Innovation & Excellence.
José Pires serves as the Global Excellence & Innovation (E&I) Leader for Andeavor Corporation, where he oversees the global identification, prioritization and execution of mission critical business improvements and innovations that add value to the company, business partners and external clients in multiple markets.
Prior to his current role, Pires held Excellence and Innovation leadership positions in large, global companies in the electronics (Sony), semiconductor (Cymer-ASML), food (Nestlé) and infrastructure (Black & Veatch) industries. Throughout his career, Pires developed and refined E&I as an award winning program for innovation, leadership development, strategy execution and value creation globally.
Pires is an advisory board leader and keynote speaker for several global conferences on innovation, operational excellence, leadership development, strategy execution, business transformation, customer engagement and growth acceleration.
He holds a Bachelor in Engineering Physics from the University of Kansas and a Master in Business Administration focused in Investment Banking and Entrepreneurship from the University of San Diego.
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November 3-4, 2020
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