Digital Transformation Game Plan

Table of contents

1. Foreword
2. Introduction
   1. O’Reilly Online Learning
   2. How to Contact Us
   3. Acknowledgments
3. I. Heightened Customer Expectations and Alignment to Customer Outcomes
4. 1. The Simplified Business Model
   1. Shareholder Value Versus Customer Value
   2. Identifying Your Simplified Model
      1. 1. Understand Customer Value
      2. 2. Use a Thin-Slice Approach
      3. 3. Have the Correct Measures of Success
      4. 4. Align Everything to the Work
      5. 5. Create Visibility and Transparency
   3. Key Points
5. 2. Understanding Customer Value
   1. Focusing on Customer Outcomes
   2. The Impact of Technology on Value and Expectations
      1. The Value of Peace of Mind
      2. The Value of Feeling in Control
      3. The Value of Personalization
      4. The Value of Lower Transaction Costs
      5. Evolving to Customer Outcomes
      6. It Takes Courage to Act
      7. How to Get Started
   3. Key Points
6. 3. The Thin-Slice Approach to Transformation
   1. Why Big Transformation Programs Fail
      1. Broad Transformation Approach
      2. Biased Decision Making
      3. Copying Others Rather Than Learning for Yourself
   2. Implementing a Thin Slice
      1. Measure the Slice
      2. Get Everyone in on the Slice
      3. Arrange Teams Around—and Across—the Slice
      4. Slice Patiently
      5. Mixing Thin Slices and Broader Transformation Initiatives
   3. The Non-“End State”
      1. Managing Change Fatigue
   4. Key Points
7. 4. Measures and Decision Making
   1. Customer Value Measures
   2. Financial Measures
   3. Individual KPIs
   4. Improvement Measures
   5. Putting It All Together
   6. Key Points
8. 5. Aligning Work to Measures
   1. Cascade Approach
      1. Cascade Approaches in Action
      2. Retrofit Current Work
   2. Prioritization and Governance
      1. Case Study: Prioritization in Action
      2. Pivoting to a Simpler Prioritization Model
      3. Prioritizing at Each Cascade Level
   3. Putting It All Together
   4. Key Points
9. 6. Visibility and Transparency
   1. Visual Systems
   2. Spaces
      1. Obeya Room
      2. Program Space
      3. Team Space
   3. Reports and Charts
   4. Walking the Walls
   5. Key Points
10. II. Building a Responsive Organization
11. 7. Organizational Constraints and How to Tackle Them
    1. Organizational Structures
    2. Role Obsession
    3. Death by Compromise
    4. Evolving Culture
    5. Key Points
12. 8. Functional Constraints
    1. General Functional Alignment
       1. The Double-Triangle Model
    2. Finance
       1. Annual Cycles
       2. Operating Expense and Capital Expense
       3. Business Cases
       4. Project-based funding
       5. Functional budgets and planning
       6. Measuring completion
    3. HR
       1. Example Warning Signals: Employee Satisfaction Surveys and the Bell Curve
       2. Talent Management
    4. Legal and Regulatory Compliance
       1. Laws and regulations
       2. Policy and Procedures
       3. Standards
       4. Governance
       5. Joining the digital transformation early
       6. Digitization of compliance itself
       7. Focusing on analysis and remediation
    5. Key Points
13. 9. Letting Data Decide
    1. Data as a Source of Knowledge
    2. Data as a Decision Point: Choosing What to Do
       1. Explore
       2. Exploit
       3. Sustain
    3. Use Data to Create an Intelligent Enterprise
       1. Data deciding for itself
       2. Personalized customer experiences
       3. Make better human decisions
    4. Key Points
14. III. Building Technology at the Core: A Tech Perspective for Business Leaders
15. 10. Technology Concepts Every Executive Should Know
    1. Technology Excellence Matters
       1. Internal Software Quality
       2. Software Design and Technical Debt
       3. Skilled Engineers
       4. Business and Technology Leadership
    2. Growing and Empowering Talent
       1. Build a Culture of Learning
       2. Build a Culture of Empowerment
    3. Continuous Delivery and DevOps
       1. Continuous Delivery
       2. DevOps
    4. Digital Platforms
    5. Products over Projects
    6. The Future Shape of the IT Department
       1. 1. Build teams around business capability or customer outcomes
       2. 2. “Two-Speed IT” is not sustainable
    7. Key Points
16. 11. Technology Excellence Matters
    1. Which IT System Is a Utility Asset and Which Is a Strategic Asset?
       1. Systems of Record Can Be Highly Strategic
       2. Legacy Systems Should not Be Treated as a Utility
       3. Utility Systems Can Become Strategic Due to Changes in the Business Landscape
    2. Why Internal Quality Matters for Strategic Assets
       1. High Internal Quality Drives a Lower Total Cost of Development
       2. Technical Debt Builds Up When Internal Quality Deteriorates
    3. Technology Excellence Is a Choice
       1. Adopt Agile Engineering Practices, Beyond Just the Management Practices
    4. Key Points
17. 12. Growing and Empowering Talent
    1. Build More Core Digital Capability In-House
       1. Insource Versus Outsource
       2. Hiring is Effective Only When You Have the Proper Internal Culture
    2. Build a Culture of Learning
       1. Create a Safe Environment to Provide Feedback
       2. Encourage Continuous Feedback
       3. Create an Environment in Which It’s Safe to Fail
       4. Don’t Cut the Training and Development Budget
       5. Learning and Development Is an Important Function
    3. Build a Culture of Empowerment
       1. Communicate and Share Information
       2. Delegate Decision-Making Authority
       3. Nurture the Sense of Ownership
    4. Recruit for Potential
    5. Scaling Digital Talent Through Digital Partners
       1. The Cost-Driven Approach Is Outdated
       2. What to Look for in a Digital Partner
    6. Key Points
18. 13. Continuous Delivery and DevOps
    1. Release Software Features Early and Continuously
       1. Doing the Hard and Painful Things Early and More Frequently
    2. DevOps Further Extends the Cross-Functional Team Concept
       1. DevOps Is a Culture Change, Not a New Job Title
    3. Four Key Metrics for Success
    4. Summary
    5. Key Points
19. 14. Digital Platforms
    1. Modular, API-Enabled Architecture Instead of Monolithic Architecture
       1. Is This Simply Software Reuse?
       2. Microservices
    2. Self-Service Data
    3. Delivery Infrastructure
       1. Removing friction
    4. Legacy System Modernization
       1. Seven Steps to Modernization
       2. Evolutionary Architecture
    5. Key Points
20. 15. Products over Projects
    1. Defining Product Thinking
    2. The Difference Between Products and Projects
    3. The Benefits of Product Thinking
    4. How to Enable Product Orientation
    5. Challenges when Moving to a Product-Centric World
    6. Summary
    7. Key Points
21. 16. The Future Shape of the IT Department
    1. Better Alignment Between Business and IT
    2. Create an Explicit Strategy to Handle Growing Tech Complexity
    3. Align Teams with Customer Outcomes, Not Functional Systems
    4. There Shouldn’t Be Two Speeds
    5. Focus on Building Teams
    6. The “T-Shaped” Professional
    7. The Blurring Boundary Between Business and IT
    8. Business Leaders Will Be More Involved in Technology Decisions
    9. Key Points
22. Final Reflection: The Importance of Leadership
    1. The Frozen Middle
    2. Driving Technology Transformation
    3. Creating Cultures of Experimentation
    4. Shaping the Future of Work
       1. How the Work Is Done
       2. Where the Work Is Done
       3. Who Does the Work
    5. New Leadership Traits
    6. Key Points
23. Conclusion: Getting Started
    1. The 34 Tenets of Digital Transformation
24. Index