The shape of businesses to come Mike Lloyd

The Head Office is an information centre. Web services pipe data out of the Head Office. The Cloud stores data outside the Head Office. Is the Head Office doomed? Agenda

Steam Data Web services Cloud?

“The typical 20 th Century organisation has not operated well in a rapidly changing environment.” – J P Kotter, “Leading Change” “Work must shift across organisational boundaries to improve overall process performance.” – Michael Hammer, James Champy, “Re-engineering the Corporation” “Great companies focus on what they are best at, what drives their economic engine and what they are passionate about.” – Jim Collins, “Good to Great” Are Head Offices fit for purpose?

Pathological dependencies Fragmented processes Office politics Indifference Indecision Alienation Delays When Head Offices go bad Eliminate hand-offs Division of Labour

Why do Head Offices exist? Sit on data clusters Internal communication distances are short

Casework Process teams Broader job scope Redefine success The way forward?

“Good-to-great companies use technology as an accelerator of change.” – Jim Collins, “Good to Great” “Technology creates opportunities because it allows businesses to break rules.” – Michael Hammer, James Champy, “Re-engineering the Corporation” IT – agent of change

“Structure, systems, practices and culture are often more of a drag on change than a facilitator.” – J P Kotter, “Leading Change” “The biggest constraint on my business is IT.” – CEO, FTSE 100 company “My role is usually to say No.” – Solutions Architect, FTSE 100 company “Our IT is just a cost centre.” – CIO, insurance company IT – agent of change?

So what’s it to be – technology hero or technology villain?

The shape of change

Analysing the business Organisation chart Management responsibilities Budget allocations Boundaries Ignores processes Unstable Process diagram Activities Collaboration Dependencies Expensive to create Confuses “what” with “how” Incomplete Not structural Unstable Capability map Structural Stable Cheap to create Shows boundaries, activities, responsibilities, dependencies and people New No standard methodology

Anatomy of a capability People Platform Process

Encapsulating a capability External features Connections Responsiveness Accuracy Communication channels Internal features Processes Cost per transaction Standing costs Error rates Expertise levels IT support

Start with business need, not technological innovation Be methodical Measure capabilities Improve capabilities Relocate capabilities Create new capability sequences Apply technology to “break the rules” Strategies

Bristol office Durham office Acme Accounts Ltd Logistics R Us Ltd Mrs Turner Dr Roberts Miss Smith Decentralisation Specialist outsourcing “Data mist” Head Office Dissolving the Head Office

The shape of businesses to come Mike Lloyd