 Hello everyone Okay, so there was there was once a little rat and this rat was running through a maze field and Maze stops are very tall and just could not find his way out And he kept running and he kept running and he didn't know how to get out And then he saw an owl on the tree and he looked up at the owl and he said Can you give me some advice? Can you tell me the way out of this maze? So the owl says I have an idea for you And a good strategy. Why don't you grow some wings like me? And then you can fly above the maze you can sport where you want to go and that's the solution So that's it. Oh, that's great. He stopped and he said wait a minute But how do I grow wings and the owl said I Only do strategy. I don't do detail So that's what we're gonna talk about today, my name's Phil Abernathy. I'm from Melbourne, Australia but Yeah, Bangalore was originally my home, so it's great to be here and I work with the number of organizations taking them on the R. I gel journey so I grew gray on waterfall and Then moved over to agile about 12 years ago. So the last two Having done a lot of my journey with the companies like Sun Corp and the others in Australia has been more focused at the top end and I'm going to share my experiences with you as to where agile is going in the next In the next let's say a few years So the journey that I'm going to look at is actually looking at what is the problem that? Organizations specifically large organizations medium to large actually face today What's the problems and we see it every day and it's the same problem by the way and then what's the impact? So what because if it's not an issue, let's just move on. We don't have to worry about it But this problem and this is This is something I noticed and I said this problem has been around for ages. It's not something new so what have we done about it to date and Has it solved the problem if it hasn't solved the problem? How come it hasn't solved the problem over the years It's the same problems and then what could we do and where could we go after that? So I'm going to run through it quite fast now if I look at the actual problems This problem and I can tell you 30 years ago when I was working for Shell these Exactly the problems we space how many of you face these problems in one way or another One or more of them. We've almost got a hundred percent going up there too much work pressure to deliver usual things mis-targets and it's just the pressure in there so If you put it more positively, so let's not be a negative. Let's be positive And you look at it. Yeah, we've got to do more with less. We've got to deliver better Faster deliver cheaper and create a great place to work up People say oh well the goalposts have moved over the years and things have changed technology has changed But these problems haven't changed. They're still the same problems that organizations are facing Agile or no agile and I'm talking about agile organizations facing these problems So what what's really what's really happening there? So let's just Would you say that we do have a problem? Would you agree there is a problem out there? That's why we're all here We're trying to solve this problem. So where do we go? So let's just look at so what? Yeah, is is maybe it isn't a problem? Yeah, maybe it's just a symptoms. We are feeling. Yeah, so let's just look at the problems. We've got things like Waste lower productivity high-cost low-moral mis-targets and most of all unhappy customers in many many cases and Of course lower profitability the number of companies that go bankrupt are tremendous In terms of percentage is about 70 percent of small and medium enterprises after two years. They're pretty much Yeah in trouble so we do have a problem and It's not a happy silly not a happy solution like the impact is quite strong So what have we done about it till now? Let's look at Bob. So I'm gonna play you a little video Yeah, because I think this video talks about one of the things that we have always done and Continue to do so you will recognize a bit of this. Yeah, I'm gonna blow it up a little bit and see if there's good audio coming across Yeah, I thought I thought that That really represented Some of the solutions that people take to this problem How many of you have more than one reorganization a year in your organizing? We've got more than half going up. It's a constant thing. It's a constant. Let's reorganize. Yeah So but there are a few other things that we do besides reorganization to address those problems Yeah, we've got new systems new tools. Oh, what about TQM? Let's put in TQM. You know, there's a total quality management system There's team building we go about and build bridges and do those nice things as of course a HR campaign and of course We implement agile and lead But the problem still remains I've been working in an agile organization For years that that's been very agile and not a very big company as well Do the same problem. So has it really helped has all these things? Well, it has improved Let's be honest If you go do a lot of the things work lean think about managing the funnel everything things the flood has improved But the problem still remains. Yeah, so How come? Oh? Well, actually one of the root causes is Prioritization and this has been there as you can see right from way back. Yeah, it's hard to prioritize So let's just look at that a little bit And there's so many oxymorons around the prioritization issue because we have this feeling that if we do more We're actually getting more done do more simultaneously But great people like Liebig and of course elia who gold rat have always said that You you do have to manage the scarcest resource You can only deliver as fast as your slowest bit. Yeah Hmm. Hmm. Okay. Okay, but I still need to do these things So they've been through all this they've been through all these trainings We looked at things like this saying oh the colors have gone on that but that's a pipeline in the middle and that's a pipeline in the middle there so You know same number of balls, but if you do more at the same time 100% utilization the number of balls that come out of the other end in the same amount of time It's going to be less than if you don't that if you leave some gaps Yeah, the whole highway scenario you pack your highway one little accident highways blocked So give it some space and you know like we do here and weave around on our scooters. Yeah. Yeah, you've been there You've been there. So, you know, you can find the way around and now even Bangalore, isn't it? It's full on a scooter. I'm in a traffic jam. So you think something, you know something has to change there So let's look at it. So we've got the portfolio the program and the project. Let's govern it So we say well, that's about doing the work right and That bit is about doing the right work Yeah, so you need both sides and this is what Governance is about managing the funnel. You've got to manage the top bit Doing the right work and the bottom bit once it's approved. So we've got a solution for that over the years We've mastered this solution and that is the solution that we have. Yeah, the PMO Yeah, let's bring in the PMO. So we've now got a PMO that manages this funnel And we've taken that to another level of the last two years. We've got the agile PMO This is people that work a bit faster Do things bit more and we talk about small batch size and we talk about doing things in a better way and I Implemented we went through with this one customer the small teams Agile at the team level went up further Teams are struggling agile teams are drowning because of the work being pushed up. So let's get the agile PMO So implemented the agile PMO Now we've got a team that meets that actually manages the funnel and schedule, but it's still it's still not working Yeah, there's something there, but it's still not solving the problem The PMOs are struggling because the boss comes through at the end and says I just want that done make sure you do it Yeah, yeah, but but you played the game the last time. It's very hard to say no just very hard to say no So there's one more thing in the pipeline just start we'll see about it And so it goes so we do have to go back to the route So we went back with this team one level further and said why is prioritization a problem? So let's go up to the route. What is above prioritization? What sits about that? What what y'all thinks it's above the prioritization layer corporate strategy? so They say yeah, what do you mean corporate strategy? I mean we have strategy of course We've got a strategy Yeah, and we then visited the strategic teams and I started working in this area about two years ago and What became apparent when I asked the question why why don't you have just two things you want to do in the next two months? Why are they always nine? Why Yeah, I've got one team that I work with they're around 60 people 40 projects in flight at the same point in some phase or the other and They're agile. They're very agile Yeah, sounds like your company Yes Correct, so something is not working. So yes, we have a strategy. Should we settle? What does your strategy look like? Let's bring it out. So Go into the draw and pull out the strategy document. That's been sitting there. You remember that one It's been sitting there for a while. It's got a little bit of Dust it open it right. So what have you got? We've got statements in there that are very very important statements You know, let's focus on quality. Let's go offshore. Let's be the best. That's a strategic choice. Yeah, let's yeah Haven't you seen this? How many have seen words like this in the strategy document? Look at this. Look at this amazing response Yeah, so this is what I found in the documents. This is the strategy that they put up there So I said so what is the problem? Okay, that's fine. Something is not working at the strategy level Obviously, so what can we do about it there? What can we do about so I said, what do you'll do for strategy? How do you do strategy? We use porters by forces and that's why this is called a sick. We use porters by forces it what do you mean and Porters by forces is a tool for analysis of the competitive marketplace. That's all it is that is not how you do strategy No, but we use porters by forces. Okay, so I've got it up there for you You can see what it looks like So let's just look at what the perfect strategy should be so This is another little video that I thought was quite quite impressive and I thought this hmm. This looks a lot like strategy in many places So isn't that how strategy sometimes let's just do something and first time it'll work I can guarantee you You know you'll get away with it once then next time you will definitely not get away with it Yeah, so very often it's like this You know just a short and hope that it works and pray and people do pray. I tell you in corporates. They do pray so Then there's we ask what's the problem? What is really the problem in this product issue? These are the answers I got and these are real answers from the teams Yeah, the leaders are pulling in different directions because they've been bonus differently Yeah, of course you want to get your job done because your bonus depends on it And if you don't get the project in you won't sell more etc The strategic choice do I do project a or product a in the market or product B is not made at that top level The actual choice is not made Yeah, the people at the lower level are unable to link work to strategy. Yeah, then you've got yeah We don't really know exactly which way we're going is it that hill or is it that hill but we are going that way Yeah, so there's a bit of ambiguity there Of course, there's no buying with people involved in the strategy a lack of smart goals or specific measurable Attainable realistic and timely not be the best. That's an example of a goal. Yeah be number one Yeah, so nobody really knows and there's communication Yeah, and Disconnected from the budget process. This was very very interesting. We found that people had a strategy cycle That did not link with the budget cycle, which was run by finance Yeah, and of course you've got a nice strategy here, but the budget is not there to do it Yeah, because you did the budget before the strategy Yeah, so all sorts of dysfunctions going on there Now you look at what's come out. What's published by Howard? So I went back to MBA material. I looked at Stanford. I looked at Howard I look at insid and said what are these people teaching? Yeah in in how to run strategy forget about agile. Yeah So this was from the 2010 Harvard review. You cannot separate The formulation and the execution. Yeah, if you don't yeah, you'll get what is called a disengaged doer You know if you don't involve people if you do not involve the entire company But strategy is only for the boss. I'm just a little you know hamster somewhere there I don't really know about this strategy thing. I just do what I'm told so I've got a little video here from Michael Jarrett now he's he's a head in insid that's really at the pinnacle of MBA work and strategy work in that area and this is not a funny one. So He really talks about what strategy is so so let's just look at it and see what they're teaching in these big schools The good news is that strategy isn't doomed to failure if you take some basic steps The first key to success is asking a question is so basic that many companies never ask Do you have the right strategy? To answer this question you have to break it down into tangible elements Can you clearly define the strategic goal and the targets market or products? Are your companies internal structure activities and commitments aligned to support your strategies goal? If you answer no, you need to rethink its plan It's the foundation upon which everything is built. So you have to get it right Your strategy should be created with a fair and open process Otherwise you risk the situation that Air France faced Senior executives announced to its unionized workforce that to save the airline it would have to lay off 2000 people Institute a pay freeze The unions went on strike and general mayhem ensued But when the company sent a middle-ranking civil servant to poll the same union members and what they thought should be done surprisingly workers laid off 3000 instituted a longer pay freeze and boosted productivity the changes passed a union vote What this illustrates is once a problem is identified a solution created and vetted through a fair process It is more likely to get by in once you've got the strategy right and the people on board Your project management techniques need to be rolled out to make it work Don't leave it to executives throughout your company to create their own implementation plan Set up cross-functional project teams Create actionable milestones and key performance indicators Track your progress against them issue reports to key stakeholders and hold people accountable to sticking to a plan If you don't treat strategy execution as a real initiative Your company won't take it seriously enough to make the changes and sacrifices required in some Strategies don't form or implement themselves People will resist change But by embracing these ideas you have a much better chance of making your strategy work so You recognize some of the common teams there so the collaboration getting people involved Executing it like a project and these just don't happen in companies at all So when we looked at it again, we said there's definitely a problem in the strategy space Okay, so now let's ask one more. Why? So why is there a problem in strategy space? So if you ask that question you land up with leadership Leadership is at the heart of most of these issues and in particular strategic leadership So what are they doing about it? So I asked this question in the workshops that I run What percentage of leaders time and I'm talking first-line leader middle management and executive leaders Do you spend on strategy? What do you think the percentage was on average on average more than 30 percent? In the region of less than 30 percent was spent on strategy And this is even at the executive level. Yeah, so I said hmm So another HPR review People say that there's an invisible line these people work on strategy and the rest of the management and the team and the people They're not involved in strategy. They just have to do what is told. Yeah, something is really not working So we looked at strategic leadership and said what's happening here and now what can we do about it? So what is strategic leadership? So strategy has two parts to it formulation and execution and You have to address both a leader can't say well I'm in this side of the fence and I don't have to worry about execution because I'm high up and The one down below can't say I'm down here and I don't have to worry about formulation I just have to execute what they decide. It doesn't work that way. Yeah, I'm going to explain why so let's drill down a bit More so to get good strategy and this is reading Good strategic materials seeing what's out there pulling back on experience that I've had you come up with this list Yeah, so iterative flexible adaptive focus. What does this look like? So wait a minute Those are very much agile and lean principles in there. So let's look at the next half Let's look at strategy execution. What's needed in there? You need buy-in. You need shared understanding You heard the professor from INSEAD. You need an inclusive system You need to execute it like a program of work feedback measured focused. What does that look like? so Why aren't we using agile in this space and How can we use agile in this space because you can't go to them and say now get agile for your strategy They'll kick you out most probably yeah, so the agile practitioners again, not very many of them Gray or bald yes, so you need a certain amount of age maturity to work at the Exec level and they don't allow you in unless you've actually been working in some role there So it's very hard to get in there, but once you do get in you're able to look at them and say There are some things that need to be done in The strategy world that we can put a little framework around it, so I did not mention the a word or the L word Yeah, don't mention it because immediately you get tired with a brush and you're put in the corner So let's just look at strategy and see how we can improve it. So There are five steps you need in the formulation process. What's the purpose? So that has to be number one Why do we exist yeah as a company is a department whatever where are our goals? What are the drivers and I'll talk about drivers? How do we do it and the plan and then we've got to measure monitor adapt? Very fast and feed back into that. So it's a continuous loop Starting to look a bit familiar isn't it so we put a little bit of a framework around it Again, don't want to use the a word or the L word. Let's say let's paint the future. Yeah called it prep Let's build a vision mission goals drivers. Let's look at retro swats and challenges for the reality What's the current phase? Let's evaluate the strategic options. Yeah, and let's look at Planning and scheduling the resources at a strategic level and let's do it this way So we'll get some cross-functional teams. Let's workshop it a little bit Let's start using some sticky notes during the workshop. So we get the wisdom of the crowd Let's have a FedEx day for innovating key problems How many of you are familiar with the FedEx day? Couple of them so FedEx deliver or at least promise to the we aren't allowed to use this word by the way because they They raised a bit of a stink but who cares so They deliver in one day so the idea is to get a team together Give them one day and give them a problem or let them select a problem and by the end of the evening they have to have a solution and It works wonders because they get really creative so iterative loops for validating the hypothesis of the strategy use a lot of facts in preparation and Let's make some decisions there without coming out when we want to be the best. That's not good enough here So we also had to understand drivers So I use a technique called a hundred dollar revenue Driver which is key and once you create this it goes all the way down to the teams So here's the example The whole purpose of strategy in a company that's for profit or even not for profit because they have to balance the book is to raise Your revenue and reduce your cost. What's the gap in between? Revenue and cost your profit. Yeah, you've got to increase these two So let's look at revenue. You've got a hundred dollars of revenue coming in This is an insurance model. They're slightly slightly changed numbers So out of that hundred dollars, you spend thirty two dollars on paying claims 28 on commissions to sell the insurance and there's market costs as operations and that's your operating profit Now on the other side the team marks. What are the things they can change? High means I that's got a high impact if I change it low means There's a low probability of changing it the claims cost over the last 30 years has been in the average of 32% So that's not going to change too much So then we said, okay, what if we can we reduce that by 3% yeah by $1 Okay, what about reducing commissions by $1? What about market and sales by $1? $3 operating costs. So now we've got a $7 operating profit link and let's increase our revenue by 30% You're starting to see the Linkages between the two and this is done with a cross-functional team right down to team level in different groups in the departments Yeah, now here's one for telco So they'll have marketing billing admin just to give you an example that it works in any industry including the software industry So let's look at the drivers for claims. So what's behind claims? You have to take it down a level. So The drivers behind reducing claims is your reinsurance cost Your claims management cost your incidents and leakage leakage is fraud Yeah, that's what claims is made up of so we broke that apart and we said we need to get 3.1% Yeah, how do we okay? We can reduce that by 2% that by 1% Fraud is a bit difficult. It happens all the time. It's there. So now we said how can you change that? So let's renegotiate the contract for reinsurance Let's create a single set claims process and system because we've now got three systems and the claims cost is high and Let's put on some private detectives to save the 1% there. Yeah Now these are turning into Your your actual strategic or you can't read that very well But what it says at the top there is those are the strategic initiatives You're slowly turning your strategy into tangible initiatives. Let's do that So now in the claims management cost 200,000 is that 1% Right. So if you can save 200,000, how much would you be willing to pay? If I can if I tell you you can get 200,000, how much would you be willing to pay for that? 50% yeah, 100,000 you see our gut works very well. What is this really called? This is your cost appetite your framework your envelope for spend without doing any big feasibility Studying on how much your project can cost you are not going to pay more than 50% Because there's a chance of it going wrong Yeah, so you're already deciding your feasible envelope for your expenditure for that project Don't come back with a project of half a million dollars. Yeah, so you do the same for revenue drivers Online sales. Oh, we need a full service media. We need new agents in Perth and We're going to have an a new product. So just examples again There are some what is called must win battles and voila Let's put the whole list together. What have you got here? Do you recognize this? This is your list of projects This is what the PMO has been working for years trying to prioritize and all of a sudden You've got your priority because you've got your cost appetite You didn't have to do any benefit studies and feasibilities for it. You know approximately how much you're willing to spend Yeah, you know Approximately the benefits and you know how important it is to your business. So you're starting to get the first funnels These are done by the executive teams by the leaders top down with the team So they've got representatives from the teams below. Yeah, so that's the top bit now You've got to execute it. So because that's only one part of the funnel So on the execution side as I said you measure you adapt you prioritize and you steer So let's use the drivers and blockers little technique again an agile technique to see what's working Let's fine-tune adjust Lean startup practices every two weeks. The strategy is reviewed. Where are we now? Where are we now? Review are we on track? Have we met the measures? Let's go forward You prioritize or reprioritize and you steer so the pieces are broken up now So if you look at it that group that leadership group The strategic leadership group the executives plus people from the lower teams They're the ones who are actually driving governments not some PMO Yeah, and they're the ones who are actually assigning the monies and the budgets to this group Now let's say I've made an estimate that that project on the claims system was 200,000 You're willing to spend 100,000 now. Is that right? You may you don't know if it's right So what you do is you do an agile concept some call it inception some call it discovery Which is the first little agile loop five-day workshop on using agile for the concept If it passes you're actually feeding that information back Into the strategy group and you say oh my god actually to change this is going to cost us $300,000 Stop it. Stop it immediately. All you spend is five days on it and put it back into the funnel and have the strategy Conversation say we can't change this. That's a wrong strategy. So you've tested it In a small little loop if you need to do a spike go down one step further And break it up into smaller pieces. Can we do just apart? So we're coming back to small batch size Driving it. Let's look at a two-month window and see what are the three things we can do for two months Yeah, so you're starting to pull it down, but it all happens not from the PMO bottom-up level, but from the top-down level if they're not on board you will not get this very very hard so Execute your strategy like an agile project So we've got the teams to put up the strategy cards in eight weeks So that's iterations of two weeks each. Yeah for two months on The strategy wall and move the cards through They've got big visual charts just to give you an example This is drawn and they've got measures to see the actual smart goals changing They've converted. Oh, this is terrible picture here They've converted the entire strategy into a graphic that covers They've got an artist in to draw it together with the team and then what they did. This is amazing I hope this is better. Ah, this is better so that's the picture that you saw previously they had a competition for every child in the department and a coloring competition for the strategy picture and they told them color it and we'll we'll have a winner and We'll award a prize and there were around 40 kids almost everyone has some kids and there was one guy who didn't read the email and he did the coloring himself and Sent it in and he didn't win the prize Of course, but as you can see you get everybody involved because you now have to explain that picture to your children Your wife's going to ask you. What's that darling and well all your husband? Yeah So it does get it does get everybody involved in it and you get the feedback as you do this And just saying oh well, we had a great strategy, but execution was a problem is really not on You have to take care of execution Now I come to the most important part of it So that's all great, but everyone is still saying yeah, but I'm I'm so small I'm in the organization. I'm really small. I don't have the power to for strategy But that's not really true because that this picture and again, I'm sorry about the lines and the colors is very very important because Strategy works at every level and there's a link between the level. So here's the link The strategy from the level above Becomes the goal for the level below Then you work out the strategy for that the strategy for that level becomes the goal for the level below and so on and so forth So let's take an example We need to improve and increase our revenue in Selling insurance. Yeah, we've got to increase the insurance market. So that's the Strategy there that they talk about and they say we are going to do that by targeting Which we did housewives So we're gonna come out with something new for housewives and see if we can have a product for them That becomes the goal of the business unit that's looking after new product development So they've got to come up now with a strategy for how to affect that goal So they do all the workshops and they do everything and they came out with we're gonna build this new product That looks like this and it needs by the way an IT system. So guess what happens there? That strategy has now become the goal of the IT department which says we have to build a system that has XYZ for housewives and if they fall and break your leg you can get an insurance that somebody you'll come and clean your house. Oh It's a nice product. How do you build that? So they have a strategy the IT team with everyone else for building that product That little strategy then goes to the web design team who now have a goal to build the front end for that product And they execute the strategy so you can see the linkage strategy is not something no matter How big your company that you can do at one level there is a cascading link and it's not just here's the strategy So there was a story about the CEO in In the northern part of Australia that said we want to go to Western Australia And it's a great idea and we're gonna just roll out this new product there And the message went down to Western Australia and they said the ground level that's real bullshit They told their boss that and that's how they talk as well. It's bullshit So well they went back to the VP and said the people are saying this is bullshit. He said no We can't say it's bullshit. So he went up to his boss and said well, there's a lot of manure in this Yeah, so it's really a bit. Yeah a bit smelly and it's not good So the VP who took it up the president took it up to the next person and said well, you know There's a lot of manure there and yeah, there's potential for growth So the it was fed back to the to the group board that it's a very productive area that things can grow So the same message twisted along the line nice little thing and it gets back up Haven't you heard this before nicely twisted and you know like Chinese whispers so this model and this is not My model or someone's model. This has been there and MBA books for the last 15 to 20 years But how many MBAs are in today's business a few how many actually practice it The things they've learned so it's our time now to bring it in in a stealth form without using the a and the L word Into models to actually start collaboratively Linking these pictures in so no matter at which level of the organization you are you are doing strategy You're doing strategy at every single level down to the smallest team and executing it I'm gonna skip that one. So I Believe that strategic leadership, and I've used the sixth force analogy After porters five forces really can make a huge difference to organizations as a whole and this morning I was just sitting there and there was Jeff talking about the improvement cutter Have a look at this improvement cutter. What do you think it is? understand the direction Yeah, your vision your mission your goals Where are we now current position? Establish the most specific smart goals and then plan do check act plan do check act the small iterative tight loops reflect persevere or pivot So these cartas have been around in successful companies like Toyota and the others that went from the last the lowest possible Automated company to beating General Motors and being number one. So What does it take? 1555 how do you double the value of a Toyota? You put a full tank of gas in it So the products coming out of Japan were really crap and they focused and it's a journey and they're now the number one Due to processes like this. This is not something that has been there overnight So set your smart goal and let tell the teams go figure at the level down Here's your goal go and find the strategy then they go down a level and measure Did you do is it moving the goal? Yes or no? If it's working continue if it's not hey, you better do something about it measure and then move the goal further out But we cannot do what we're doing today, which is actually delegate prioritization to PMO's Or to someone else and just say, you know, well, we've made it Go and prioritize So we do have an issue there with strategic leadership and Traditionally in summary if you look at the way we've done it, you know, it's top-down It's I've been out. I've actually been guilty of facilitating strategy days And I'm sure many of you even as agile coaches have done that and it will work Fantastically and the last two hours when you really have to talk about some decisions Yeah, it's very rushed and somebody's got the bag and they're off for the plane ride You know the plane is there and they're off and the whole meeting just disintegrates and there's decisions are not made so actually doing Doing it in one workshop the annual strategy off-site. How many of you have heard of that? Yeah, you do see it all the time. We're going for the off-site They're away for two days You never hear anything and then they come back and each leader Gives you the message in a different way so and you get this, you know They're they're looking through some glass and they've got some carrots there some bonuses and you have to pull the cart It's just not working. It's dysfunctional And I think using some of the principles that we have learned that we know in agile and mean just I mean Gembootsu for example, just go see the real thing Rather than sitting in the ivory tower and saying, you know, this will work in Perth Just go to Perth and talk to the people Let the leaders Go and see the thing as opposed to passing the messages down Another thing that I've noticed is and coming back to the all and the rat story agile actually exposes The culture of agile and lean exposes the real problem that in itself is one step in the right direction towards that so Doing the right work if you look at portfolio governance and PMOs, I really think that should be replaced with strategic leadership and that's where the key lies that I would say is the sixth force That's my last call to action So let's formulate a strategy together as we go in our little teams and people say to me Well, you know, I'm not senior enough to make this change. You don't have to be just do it at your level Ask your boss. What's their strategy document for the division above? They'll give you something from there and Start it start the process have call them in call them down and start using the techniques that you know At the strategy level and then take it down a level now whenever you're executing it Just put it up on a wall put the strategy cards up on a wall and Executed like an agile project, which is what they teach at Harvard at Insead and at the London Business School executed like an initiative with that. I'd like to end. Thank you very much So, yeah, I think I have time for a few questions. Yeah Having measurements like burn downs and all is is okay What the thing that has worked the most at the end of the day you want that smart goal remember the 2% change in claims cost From that you have to break that down to the level that makes sense and have a measure so let us say you've got 50% less defects is what we need well measure your defects or we need to increase our Sales people contacting new customers have that as a target and then measure that so you see those realistic things M&A we're going for merger and acquisition. Okay You have to make their own goals and targets So take it down to them tell them go and figure out how to do this and then they have to have their own measures They have to measure it. It's not Measure top down. So you have to break down your measures right down to the level of execution I think just common sense and having the measures in there as well. I don't know. What is the? Culture of measurement I can tell you one thing and the people in the audience from Australia helped me here We don't really have a culture of measurement Yeah, would you agree? Yeah, so it's it's just something and in other countries I've worked in Holland a bit and they had really measure measure measure measure, but it takes to the other extreme So you have to find the balance. Yeah So I think I think the balance scorecard is nothing but one of the technique like Porter's techniques For identifying your smart goals. So the balance four card scorecard has four aspects. It's got financial It's got customer. It's got process and it's got people to keep it simple And you you set yourself smart goals on all four aspects so that you don't forget one And that's just a tool a framework that you can use in your workshops to develop strategy Balance scorecard by itself is not a strategic to just a little frame that will help you tactical Yes, you've got BAU so the systems have to run so what we have is in the budgets They've said 30% is BAU budget and there's a Kanban system for identifying what has to be done there now Let's talk about the 70% yeah, that's 70% is Strategic now the tactical Tactical operational split has historically been purely a matter of time So tactical is like nine months operational is like two months and strategic is about three years But that vision is going away and saying ever there is no such thing as operational tactical strategic Unless you consider BAU fires, which we all have to put out. Yeah as operational Tactical and strategic is is just a simple loop of strategic strategic strategic, but in small pieces You can go bottom up or top down as such in in a hierarchical organization and we had a beautiful talk this afternoon about socio what was it called Sociology and the other sort of forms of companies and they will come may come. Let's talk about hierarchical organizations in a hierarchical organization The hierarchy the drive will come from the top, but the top should not decide how the website should look at the bottom Or the top should not decide how the product is going to be rolled out in Western Australia Yeah, that has to be left to the level low up now The way we do it is we include and Fiona was included in some of these teams as well The team that is let's say the executive team is having representatives from the two layers down So the next layers got representatives from one layer up and two layers down and the layer down is one layer up So that's a cross-functional team. So you're actually got representatives from right down from the working-flow level You cannot involve everyone so that won't work because then you'll be there forever Well, that's it. Thank you very much and hope you enjoyed