Built to Adapt lecture - Speaker Deck

Slide 1

Slide 1 text

BUILT TO ADAPT. ryanchartrand.com

Slide 2

Slide 2 text

I’m CEO of tech biz X-Team, where adapting is my full-time job.

Slide 3

Slide 3 text

We work with many different industries.

Slide 4

Slide 4 text

2 STORIES 1 NUMBER act one

Slide 5

Slide 5 text

KIDS THESE DAYS story one

Slide 6

Slide 6 text

The largest toy company on the planet… was on the verge of bankruptcy in 2003.

Slide 7

Slide 7 text

SO WHAT HAPPENED?

Slide 8

Slide 8 text

They invited in the consultants to tell them about trends in the toy market.

Slide 9

Slide 9 text

“The kids these days want instant gratification, video games, movies, not brick toys.”

Slide 10

Slide 10 text

And then Galidor happened.

Slide 11

Slide 11 text

Instant Gratification DVDs Games Happy Meals Action Figures

Slide 12

Slide 12 text

Then came Theme Parks…

Slide 13

Slide 13 text

Then came LEGO stores…

Slide 14

Slide 14 text

Less constructing, more playing.

Slide 15

Slide 15 text

2003: SALES DROP $800 MILLION

Slide 16

Slide 16 text

Their mission to create the builders of tomorrow had become an after-thought.

Slide 17

Slide 17 text

SILVER LINING LATE FEES story two

Slide 18

Slide 18 text

2004: 9,000 stores. More than Starbucks. 2008-2010: Lost $6 billion, went bankrupt.

Slide 19

Slide 19 text

SO WHAT HAPPENED?

Slide 20

Slide 20 text

Netflix happened.

Slide 21

Slide 21 text

2000: Netflix asks Blockbuster to buy them.

Slide 22

Slide 22 text

Blockbuster denied.

Slide 23

Slide 23 text

2 years late…

Slide 24

Slide 24 text

Late again…

Slide 25

Slide 25 text

You get the idea.

Slide 26

Slide 26 text

From proactive to reactive

Slide 27

Slide 27 text

Silver lining: Your 1994 late fees are forgiven.

Slide 28

Slide 28 text

45 one number

Slide 29

Slide 29 text

THE NUMBER OF TRENDS/WEEK I LEARN ABOUT

Slide 30

Slide 30 text

New findings, new products, new ways of doing things to help us adapt to change.

Slide 31

Slide 31 text

45/week 180/month 2,160/year

Slide 32

Slide 32 text

Ignore them? Could end up like Blockbuster.

Slide 33

Slide 33 text

Adapt to them? Could end up like LEGO.

Slide 34

Slide 34 text

EXPONENTIAL CHANGE

Slide 35

Slide 35 text

Netflix happened faster than Blockbuster could learn.

Slide 36

Slide 36 text

CHANGE LEARN happens faster than we can

Slide 37

Slide 37 text

EXPONENTIAL CHANGE today

Slide 38

Slide 38 text

THE MAD MEN ERA

Slide 39

Slide 39 text

EXPONENTIAL CHANGE today Mad Men

Slide 40

Slide 40 text

THE PROACTIVE ERA

Slide 41

Slide 41 text

Today we are overwhelmed, and enter a mind-numbing survival mode state.

Slide 42

Slide 42 text

WE BECOME REACTIVE NOT PROACTIVE

Slide 43

Slide 43 text

LEGO: After the consultants marched in, they entered survival mode.

Slide 44

Slide 44 text

Their focus on creating the builders of tomorrow died along with their clarity.

Slide 45

Slide 45 text

Blockbuster laughed Netflix out of the room and invested in Enron (oops).

Slide 46

Slide 46 text

Survival mode hit, proactive went reactive, lost focus & clarity, scrambled to catch up.

Slide 47

Slide 47 text

THEY WERE BUILT TO SURVIVE.

Slide 48

Slide 48 text

Built to survive (ironically) can’t survive 2,000+ trends per year, so they enter survival mode. 45/week 180/month 2,160/year

Slide 49

Slide 49 text

Built to Survive org’s are based on principles invented during the Industrial Revolution.

Slide 50

Slide 50 text

Consistency. Structure. Avoid failure. Limit risk at all costs. People = human resources.

Slide 51

Slide 51 text

These principles still exist in Built to Survive companies today. We’re just used to them.

Slide 52

Slide 52 text

TOP DOWN PRESSURE

Slide 53

Slide 53 text

POLICIES NOT EMPOWERMENT

Slide 54

Slide 54 text

LIMIT RISK AT ALL COSTS

Slide 55

Slide 55 text

Built to survive companies are sustainable when markets don’t change often.

Slide 56

Slide 56 text

But they leave no room for adaptation.

Slide 57

Slide 57 text

EXPONENTIAL CHANGE today And when 2,000 trends/year hits, Built to Survive meets survival mode.

Slide 58

Slide 58 text

WE BECOME REACTIVE NOT PROACTIVE

Slide 59

Slide 59 text

Mid-2000’s: Starbucks saw trends from McDonald’s, Dunkin’ Donuts, Peet’s

Slide 60

Slide 60 text

They jumped on the trends, entered survival mode, and immediately lost focus.

Slide 61

Slide 61 text

They focused on commoditizing the experience, quickly opening more stores, all identical.

Slide 62

Slide 62 text

“No Wi-Fi for you.”

Slide 63

Slide 63 text

They shifted to Built to Survive as a reactive panic to trends in the industry.

Slide 64

Slide 64 text

EXPONENTIAL CHANGE today Built to Survive companies are (ironically) struggling to survive exponential change.

Slide 65

Slide 65 text

LIMITING RISK HAS CREATED MORE RISK.

Slide 66

Slide 66 text

Built to Survive companies feel like they lose control when trends hit exponentially.

Slide 67

Slide 67 text

BUT WE ARE IN CONTROL.

Slide 68

Slide 68 text

WE CAN SURVIVE CHANGE

Slide 69

Slide 69 text

BUILT TO SURVIVE CAN BE REPLACED

Slide 70

Slide 70 text

BUILT TO ADAPT. ryanchartrand.com

Slide 71

Slide 71 text

Survival mode isn’t the only option.

Slide 72

Slide 72 text

WE CAN BECOME PROACTIVE NOT REACTIVE

Slide 73

Slide 73 text

WE ARE IN CONTROL.

Slide 74

Slide 74 text

BUILT TO ADAPT. ryanchartrand.com

Slide 75

Slide 75 text

FAILURE IS GOOD act two

Slide 76

Slide 76 text

BUILT TO SURVIVE You fail, you’re fired.

Slide 77

Slide 77 text

LIMIT RISK AT ALL COSTS

Slide 78

Slide 78 text

BUILT TO ADAPT You fail, good job.

Slide 79

Slide 79 text

STILL WONDERING HOW LEGO MADE A COMEBACK?

Slide 80

Slide 80 text

fail fast and break things. they learned how to

Slide 81

Slide 81 text

‘FAIL FAST’ IS COMMON IN TECH COMPANIES

Slide 82

Slide 82 text

THE POINT…BECAME…

Slide 83

Slide 83 text

No content

Slide 84

Slide 84 text

BECAUSE DEALS ON BRAZILIAN WAXES ARE BETTER THAN HELPING FIXING ROADS.

Slide 85

Slide 85 text

fail fast and break things. they learned how to

Slide 86

Slide 86 text

LEGO decided to stop going all-in and start failing fast with new trends.

Slide 87

Slide 87 text

For the 1st time ever, they invited their community to help validate concepts.

Slide 88

Slide 88 text

THE RESULT?

Slide 89

Slide 89 text

Bionicle, the toy that saved LEGO, was a result of failing fast with 2 concepts.

Slide 90

Slide 90 text

fail fast and break things. they learned how to

Slide 91

Slide 91 text

TODAY, IT’S EASY TO FAIL AND GATHER FEEDBACK INSTANTLY.

Slide 92

Slide 92 text

At least that’s one thing Don Draper could be jealous of.

Slide 93

Slide 93 text

Before Angry Birds, Rovio’s 51 previous games failed.

Slide 94

Slide 94 text

Hundreds of ‘fail fast’ concepts later, and this was sketched.

Slide 95

Slide 95 text

Before Pinterest, there was Tote, which let you favorite clothing items.

Slide 96

Slide 96 text

Before Instagram, there was Burbn, a “check-in” app.

Slide 97

Slide 97 text

fail fast and break things. they learned how to

Slide 98

Slide 98 text

FAIL FAST when trends change exponentially, we must:

Slide 99

Slide 99 text

We’ve all had our Galidor moments.

Slide 100

Slide 100 text

FAILING FAST LETS US VALIDATE TRENDS QUICKLY AND CHEAPLY.

Slide 101

Slide 101 text

Let’s say you just discovered social wellness programs.

Slide 102

Slide 102 text

No content

Slide 103

Slide 103 text

“Social tools encourage people to cheer each other on via high-fives and message boards. Reminders, nudges, and comparison charts keep people engaged.” “Game mechanics like points, levels, and leaderboards motivate people to participate more.”

Slide 104

Slide 104 text

Let’s talk to vendors and get an out-of-the-box solution for this trend! “ built to survive companies

Slide 105

Slide 105 text

Let’s plan for 6 months and build our own solution! “ built to survive companies

Slide 106

Slide 106 text

Limiting risk = one-size-fits-all solution that is guaranteed not to fail.

Slide 107

Slide 107 text

What do I want to learn from implementing this trend? “ built to adapt companies

Slide 108

Slide 108 text

Will social game mechanics increase wellness participation?

Slide 109

Slide 109 text

What can I create to validate what I want to learn? “ built to adapt companies

Slide 110

Slide 110 text

Build an mvp minimum viable product

Slide 111

Slide 111 text

An MVP is a prototype with the least amount of possible features while still demonstrating core value.

Slide 112

Slide 112 text

Learn with the least minimum effort.

Slide 113

Slide 113 text

Let’s build a simplified social wellness program that can validate social game mechanics’ effectiveness. “ built to adapt companies

Slide 114

Slide 114 text

Define metrics. you can’t fail fast without defining what failure is.

Slide 115

Slide 115 text

How many weeks did each team’s members play? Would they play it again? “ deﬁning metrics

Slide 116

Slide 116 text

DEFINE MVP FEATURES what are the least possible features while still delivering value and ‘the experience’?

Slide 117

Slide 117 text

No content

Slide 118

Slide 118 text

Earning points has to result in something happening.

Slide 119

Slide 119 text

A leaderboard in the office or exchanging points for rewards.

Slide 120

Slide 120 text

We have to move from point A to B to validate our MVP.

Slide 121

Slide 121 text

Let’s build a team-based MVP with 2 teams, a set of challenges, and a leaderboard in the office. “ deﬁning minimum features

Slide 122

Slide 122 text

DEFINE timeline keep feature list small, and timeline short

Slide 123

Slide 123 text

ROLL IT OUT test & validate

Slide 124

Slide 124 text

BUILT TO ADAPT If it worked, good job.

Slide 125

Slide 125 text

BUILT TO ADAPT If it failed, good job.

Slide 126

Slide 126 text

If you failed, at least you failed smarter than LEGO did.

Slide 127

Slide 127 text

We have new ideas to try after learning from what didn’t work. “ learning from failure

Slide 128

Slide 128 text

iterate build upon the MVP

Slide 129

Slide 129 text

Iterate with prizes.

Slide 130

Slide 130 text

Iterate with fitness devices.

Slide 131

Slide 131 text

iterate use test groups before rolling out to everyone

Slide 132

Slide 132 text

Facebook believes users will like the update because it's already tested it — with 8 million unsuspecting people. “

Slide 133

Slide 133 text

In the end, you might justify purchasing a more robust solution.

Slide 134

Slide 134 text

YOU ARE IN CONTROL.

Slide 135

Slide 135 text

WE CAN BECOME PROACTIVE NOT REACTIVE

Slide 136

Slide 136 text

BUILT TO ADAPT MEANS NOT AFRAID OF FAILURE

Slide 137

Slide 137 text

SUCCESS failure leads us to

Slide 138

Slide 138 text

WE ARE IN CONTROL.

Slide 139

Slide 139 text

X-Team: We experiment with 5-10 trends at a time.

Slide 140

Slide 140 text

When the 45 trends come in, we write 2 lines next to the relevant ones.

Slide 141

Slide 141 text

What do we need to validate, and what would the MVP look like? “ new trends list

Slide 142

Slide 142 text

What metric can we use to validate the MVP? “ new trends list

Slide 143

Slide 143 text

Hand off the list to X-Labs, a team dedicated to MVPs.

Slide 144

Slide 144 text

Committees sit around tables and discuss things. Labs get *%@! done. “ - The Decoded Company (book)

Slide 145

Slide 145 text

PROTOTYPE. TEST/VALIDATE. ADAPT.

Slide 146

Slide 146 text

It’s really (really) hard not to rush in on a trend.

Slide 147

Slide 147 text

FAIL FAST or before you know it, you’re looking backward on the trends you didn’t get time for.

Slide 148

Slide 148 text

BUILT TO ADAPT.

Slide 149

Slide 149 text

EMPOWERED PEOPLE act three

Slide 150

Slide 150 text

MOVE FORWARD we use fail fast to

Slide 151

Slide 151 text

TOP DOWN PRESSURE built to survive companies move slower from

Slide 152

Slide 152 text

LEGO: Set the course, then get out of the way.

Slide 153

Slide 153 text

ZAPPOS: Junior employees can buy customers gifts.

Slide 154

Slide 154 text

Whole Foods Staff is empowered to share ideas with other stores via an Instagram-like app.

Slide 155

Slide 155 text

GUY LAURENCE

Slide 156

Slide 156 text

No content

Slide 157

Slide 157 text

Meetings strip empowerment.

Slide 158

Slide 158 text

DECISIONS ARE MADE BY THE HIGHEST POINT OF COMPETENCE not authority.

Slide 159

Slide 159 text

AGILITY INCREASES

Slide 160

Slide 160 text

No content

Slide 161

Slide 161 text

JASON STIRMAN

Slide 162

Slide 162 text

We’re going to hire the best people we know & trust them to make decisions for us. “ jason stirman, medium

Slide 163

Slide 163 text

The momentum this creates far outweighs someone making a bad decision. “ jason stirman, medium

Slide 164

Slide 164 text

But shouldn’t all of this just cause chaos?

Slide 165

Slide 165 text

peer group pressure

Slide 166

Slide 166 text

Senior management relaxes.

Slide 167

Slide 167 text

There are still rules & policies - but they’re in the background. “

Slide 168

Slide 168 text

In the foreground is collaboration and peer group pressure.

Slide 169

Slide 169 text

Trust emerges. People rise to action.

Slide 170

Slide 170 text

BUILT TO ADAPT.

Slide 171

Slide 171 text

CAPTAIN MARQUET

Slide 172

Slide 172 text

The USS Santa Fe, ranked worst crew in the Navy.

Slide 173

Slide 173 text

Marquet takes the job, and takes command, giving orders.

Slide 174

Slide 174 text

“Ahead two thirds!” “There is no two thirds.”

Slide 175

Slide 175 text

His crew had been trained to blindly follow orders.

Slide 176

Slide 176 text

He would have to empower his crew.

Slide 177

Slide 177 text

To empower those with the information before those with authority.

Slide 178

Slide 178 text

“Permission to” became “I intend to”

Slide 179

Slide 179 text

I will set a course. You will make the decisions & actions that get us there. “ captain david marquet

Slide 180

Slide 180 text

LEGO: Set the course, then get out of the way.

Slide 181

Slide 181 text

WHEN LEADERS EMPOWER… PEOPLE RISE TO ACTION.

Slide 182

Slide 182 text

From the lowest ranked, to the highest ranked in history.

Slide 183

Slide 183 text

BUILT TO ADAPT.

Slide 184

Slide 184 text

BUILT TO SURVIVE ISN’T THE ONLY OPTION.

Slide 185

Slide 185 text

TOP DOWN PRESSURE isn’t the only option

Slide 186

Slide 186 text

LIMIT RISK AT ALL COSTS isn’t the only option

Slide 187

Slide 187 text

WE ARE IN CONTROL act four

Slide 188

Slide 188 text

EXPONENTIAL CHANGE We can control what happens in an exponentially changing world.

Slide 189

Slide 189 text

CHANGE LEARN happens faster than we can

Slide 190

Slide 190 text

WE ARE IN CONTROL

Slide 191

Slide 191 text

When we forget that, we become less human.

Slide 192

Slide 192 text

Applicant Tracking Systems caused us to talk to databases before people.

Slide 193

Slide 193 text

Your resume doesn’t match our keywords. Bye. “

Slide 194

Slide 194 text

We become less human when we let trends control us.

Slide 195

Slide 195 text

WE WERE BORN TO EXPLORE

Slide 196

Slide 196 text

TO FIND YOUR LINE AND GO BEYOND IT

Slide 197

Slide 197 text

No content

Slide 198

Slide 198 text

TO FIND YOUR LINE AND GO BEYOND IT

Slide 199

Slide 199 text

We are born Built to Adapt.

Slide 200

Slide 200 text

BUILT TO SURVIVE DOESN’T LEAD TO EXPLORING.

Slide 201

Slide 201 text

It leads to survival mode, losing focus, scrambling to keep up.

Slide 202

Slide 202 text

HR’s Blockbuster moment.

Slide 203

Slide 203 text

TOP DOWN PRESSURE built to survive: social media policies

Slide 204

Slide 204 text

We will always play catch up until we regain our passion for exploration.

Slide 205

Slide 205 text

We focus too much on looking backward.

Slide 206

Slide 206 text

NASA BUDGET

Slide 207

Slide 207 text

Blockbuster didn’t explore until they were forced to.

Slide 208

Slide 208 text

EXPONENTIAL CHANGE We can control what happens in an exponentially changing world.