How to break the rules

How to break the rules

We invest so much in technology, so why do we seem to get so little benefit in return? We spend hundreds of millions on ERP solutions but we don't seem to go any faster. We introduce new processes, tools and methods, but when you stand back and squint the organisation still looks just the same.

Is technology over-hyped and oversold, as many would have us believe, or are we doing something that means we lose out on all those promised benefits? Societies work because we follow the rules, but what if those same rules are holding us back? The problem may not be in the technology, but in us failing to change our habits.

In this talk, Dan introduces some uncomfortable truths from Eliyahu Goldratt, author of “The Goal” and one of the fathers of modern management theory, that may help us to recognise and challenge this behaviour so we can start to get the real benefit from all that technology.

08145ecb1ce091d9dd3c328ea2a707fb?s=128

Daniel Terhorst-North

November 17, 2017
Tweet

Transcript

  1. How to break the rules Dan North @tastapod

  2. @tastapod Eliyahu Goldratt https://alchetron.com/Eliyahu-M-Goldratt-1011218-W#- 1984 2005 1947-2011

  3. @tastapod “Technology can bring benefits if, and only if, it

    diminishes a limitation.” —Eli Goldratt
  4. @tastapod Technology (n): dictionary.com: 1. the branch of knowledge that

    deals with the creation and use of technical means and their interrelation with life, society, and the environment, drawing upon such subjects as industrial arts, engineering, applied science, and pure science Merriam-Webster: 1. a: the practical application of knowledge especially in a particular area
 b: a capability given by the practical application of knowledge 2. a manner of accomplishing a task especially using technical processes, methods, or knowledge
  5. @tastapod Technology (n): dictionary.com: 1. the branch of knowledge that

    deals with the creation and use of technical means and their interrelation with life, society, and the environment, drawing upon such subjects as industrial arts, engineering, applied science, and pure science Merriam-Webster: 1. a: the practical application of knowledge especially in a particular area
 b: a capability given by the practical application of knowledge 2. a manner of accomplishing a task especially using technical processes, methods, or knowledge
  6. @tastapod We are really, really bad at
 adopting new technology

  7. @tastapod We are really, really bad at
 benefiting from new

    technology
  8. @tastapod Goldratt’s four questions 1. What is the power of

    the technology? 2. What limitation does the technology diminish? 3. Which rules enabled us to manage this limitation? 4. Which new rules will we need?
  9. @tastapod Which rules enabled us

  10. @tastapod Which rules enabled us Rules designed to enable us


    inevitably constrain us
  11. @tastapod http://progress-plus.co.uk/mrp-system-and-erp-system/ Applying the questions to MRP

  12. @tastapod 1. We can carry out complex MRP calculations overnight!

    2. Diminishes the entire week it takes to calculate MRP. 3. We only plan monthly otherwise it is too expensive. 4. We need to reengage with our suppliers and customers. Applying the questions to MRP
  13. @tastapod 1. We can carry out complex MRP calculations overnight!

    2. Diminishes the entire week it takes to calculate MRP. 3. We only plan monthly otherwise it is too expensive. 4. We need to reengage with our suppliers and customers. Rules become policy
  14. @tastapod http://www.ultraconsultants.com/mrp-vs-mrp-ii-vs-erp/ Applying the questions to ERP

  15. @tastapod Applying the questions to ERP 1. We can collect

    and analyse information across the org. 2. Diminishes ignorance of what other divisions are doing. 3. Use cost accounting to make local decisions. 4. Use throughput accounting to measure flow of value.
  16. @tastapod Rules become law 1. We can collect and analyse

    information across the org. 2. Diminishes ignorance of what other divisions are doing. 3. Use cost accounting to make local decisions. 4. Use throughput accounting to measure flow of value.
  17. @tastapod http://www.gogeometry.com/software/cloud_computing_w_c_70.jpg Applying the four questions to Cloud

  18. @tastapod 1. We can have on-demand computing power. 2. Diminishes

    the cost and risk of running your own data centre. 3. Procurement, operations and maintenance are expensive. Computer hardware requires lots of people to look after it. 4. You can explore technology ideas quickly and inexpensively. You can reduce computing power as easily as increasing it. Applying the four questions to Cloud
  19. @tastapod Rules for coping become structure 1. We can have

    on-demand computing power. 2. Diminishes the cost and risk of running your own data centre. 3. Procurement, operations and maintenance are expensive. Computer hardware requires lots of people to look after it. 4. You can explore technology ideas quickly and inexpensively. You can reduce computing power as easily as increasing it.
  20. @tastapod http://www.kitenco.de/bilder/cd-cloud.png Applying the questions to CD

  21. @tastapod 1. We can simplify and automate releasing software. 2.

    Diminishes high risk and transaction cost of releasing. 3. Fixing mistakes will be expensive and time-consuming. Managing the risk requires specialists to check things manually. 4. Self-serve tools and processes will enable us to release often. Applying the questions to CD
  22. @tastapod Rules become culture 1. We can simplify and automate

    releasing software. 2. Diminishes high risk and transaction cost of releasing. 3. Fixing mistakes will be expensive and time-consuming. Managing the risk requires specialists to check things manually. 4. Self-serve tools and processes will enable us to release often.
  23. @tastapod Applying the questions to hype-o-services https://www.linkedin.com/pulse/when-devops-leads-you-star-wars-spoilers-ray-carrasco

  24. @tastapod Applying the questions to https://www.linkedin.com/pulse/when-devops-leads-you-star-wars-spoilers-ray-carrasco microservices

  25. @tastapod 1. We can deploy and manage discrete components independently.

    2. Diminishes risk of making changes in large apps. 3. Even small changes require enormous scrutiny and oversight. Feature branches are a good thing. Leading to Big Integration. 4. Components must be discoverable and monitorable. Small teams should form around business capabilities. Applying the questions to microservices
  26. @tastapod Rules become paradigm 1. We can deploy and manage

    discrete components independently. 2. Diminishes risk of making changes in large apps. 3. Even small changes require enormous scrutiny and oversight. Feature branches are a good thing. Leading to Big Integration. 4. Components must be discoverable and monitorable. Small teams should form around business capabilities.
  27. @tastapod The rules are holding us back! Policy Law Culture

    Paradigm Structure
  28. @tastapod How to break the rules 1. Understand the power

    of the new technology What does it do? How does it work? How can we exploit this technology? 2. Recognise the limitation the technology will diminish How could you prove the limitation was holding you back? How would you know it was diminishing?
  29. @tastapod How to break the rules 3. Identify the existing

    rules we use to manage the limitation How will they get in the way? What assumptions do they make? How can we make it safe to change? How to create a graceful exit? 4. Identify and implement the new rules How can we safely exploit this new technology? How do we introduce and institutionalise these new rules?
  30. @tastapod “Technology can bring benefits if, and only if, it

    diminishes a limitation.”
  31. @tastapod Now, go break some rules! @tastapod https://dannorth.net dan@dannorth.net