2018 Nicols Class Materialsjpnicols.com/wp-content/uploads/2018/05/2018... · process may be new...

1© FTForge, LLC | FTForge.com

[email protected]

425-522-3579

JPNicols.com/Class• All slides• All videos• More Resources:

• Blogs• Podcasts• Books• Conferences


Engagement•Teams and/or process may be new•Creating policies, procedures, process

Effectiveness•Need to accelerate existing programs• Focus on getting to ROI faster

Emphasis•Tackling a lot of things at once•Often playing catch-up from past underinvestment

Efficiency• Seeking efficiency in process and/or network effects to maximize upside• Focused on proprietary and/or big strategic bets,•Making strategic investments

Where is your institution now in the innovation maturity cycle?


Threat of New Entry

Supplier Power

BuyerPower

Threat of Substitution

Competitive Rivalry

Porter’s Five Forces


Experience Level

Tactical Level

Strategic Level


Launch

Growth

Decline

Innovation

Innovation

Paul Nunes & Tim Breene, 2011

Bank Business Cycle(adjusted for interest rate

and economic cycles)

Jumping the S Curve


Innovation vs. Core Business• Existing Products• Existing Customers• Existing Markets• Internal Resources• Reduce Variability• Meet/Exceed Metrics• Increase Volume• Maximize Profit• Manage Known Knowns• Enforce Best Practices

• New Products• New Customers• New Markets• Partner with Others• Increase Variety• Create New Metrics• Nail it, then Scale it• Maximize Learning• Explore Unknowns• Discover Next Practices

EXPLORATION EXECUTION6© FTForge, LLC | FTForge.com

7© FTForge, LLC | FTForge.comFIRE™

Empathy

Define

Ideate

Prototype

Test

Business(Viability)

Technology(Feasibility)

People(Desirability)

Discovery Validation

Modern agile business methods

Risk Management Compliance Infrastructure

Culture Core Processes

Custom tailored for a highly regulated environment


FastIterativeResponsiveExperiments

Shorten the gap between idea and results

Process of continuous improvement

Data drives subsequent iterations

Structured to maximize learning


Innovation is implementing new ideas that create value.


Technology Trigger

Peak of Inflated Expectations

Trough of Disillusionment

Slope of Enlightenment

Plateau of Productivity

The Next Big Idea?

The Gartner Hype Curve, 1995


Early Majority

34%

LateMajority

34%Laggards

16%MIL

Early Adopters

13.5%Innovators

2.5%

Chasm

Diffusion of Innovation

Everett Rogers, 1957 Geoffrey Moore, 1993


Early Majority

34%

LateMajority

34%Laggards

16%

Early Adopters

13.5%Innovators

2.5%

Technology Trigger

Peak of Inflated Expectations

Trough of Disillusionment

Slope of Enlightenment

Plateau of Productivity

Chasm

Financial Services

13© FTForge, LLC | FTForge.com 13

Minimum Viable Product (MVP)

Must be able to test along the way

Iterations help build value at every stage

Not this…

But this!


Plan your Work,Work your Plan.

Lean Startup

Build

MeasureLearn

The Lean Startup, Eric Ries, 2011


“The facts lie outside the building.”

Steve Blank


Sales? •Hire first sales staff • Build sales organization

Marketing? •Create materials•Create Positioning

•Hire PR Agency•Create early buzz

•Create Demand• Splashy launch• “Branding”

Finance? • Initial forecast: revenue and expenses

• Finalize budget •Measure/report results

What does this mean to:

Adapted from Steve Blank, 2007

Business Plan/ Requirements

Product Development

Alpha/Beta Tests Launch

Traditional Product Development


Customer Development

Customer Discovery

Customer Validation

Customer Creation

Company Building

STOP STOP STOP

Turn Hypotheses into Facts

Identify Scalable and Repeatable Sales Model

Exploration Execution

Steve Blank, 2007


Types of Innovation Trials

Trials can start anywhere in the process and steps can be jumped; an MVP can take many different forms

Assessment & Development External

Opportunity

Launch

Evaluation Proof of Concept(Feasibility)

Prototype(Desirability)

Pilot(Viability)

Phased Rollout

Flush out idea, organize team,

develop action plan


Business(Viability)

Technology(Feasibility)

People(Desirability)

The Sweet Spot


Desired Outcomes of a Trial• Both failure and success are expected.• Goal is to reach a quick decision.• After everything necessary has been learned, it’s a waste of

time to continue with the same trial.• Success cannot be viewed as consistently moving along with

the same idea.• It is desirable to have trials that don’t work. That means we

are learning.


Focus on most basic level of technical

feasibility

Run rapid, controlled trial (no customers

impacted)

Measure and interpret results

Move to next trial if feasibility is confirmed

Proof of Concept: Technology/Feasibility


Low-fidelity mockups

Text and

graphics

Travel

through

user

experienceDemonstrate the look and feel and product design

Gather feedback on how product will be used in real world

environment

Prototype: People/Desirability


Pilot: Business/Viability


• Product introduced to customers in cohorts

• Product, messaging and processes adapted to results

• Timeline is flexible and can be changed as needed

Phased Rollout


Programs vs. Systems

Change the State vs. Maintain the State

Effectiveness vs. Efficiency

Zone to Win, Geoffrey Moore, 2015


High Level Solution Design

Refine Approach

Review Potential Partners

ComplianceValidation

Rapid Prototypin

g

Executive Leadership

TRIAL 1 TRIAL NTRIAL 2

FIRE Break™

Funding and Governance

Risk and Compliance

FIRE Teams™Test and Learn


Refine Approach



Rapid Prototypin

g


Refine Approach



Rapid Prototypin

g


Understand Diverge HypothesisDefine Decide

1 UNDERSTAND user needs, business value and technology capacity

3

DEFINE the problem, key strategy and focus2

DIVERGE from a single potential solution to create diversity of options to explore

4 DECIDE on the most promising ideas from the range of options

5 HYPOTHESIS of a problem statement and solution that can be tested


Empathy

Design Thinking

Define

Ideate

Prototype

Test

Dschool.stanford.edu


Pains and Gains

• Get in the way of the job to be done• Annoyances• May cause work-arounds

• Can be well understood and sought out• May be hidden or unexpected• Often involve tradeoffs


Pains

• What unaddressed pains can you think of?• What drives you crazy as a customer?• What complaints do you hear from friends and

family?• What pain points do you hear from

customers?• Where are customers creating work-arounds

because their current products and services don’t provide exactly what they need?


Gains

• What kind of gains are customers looking for?– Lower prices?– Higher quality?– Faster service?– More customization?– Feelings, such as prestige or status?

• What tradeoffs are they willing to make?• What unexpected gains could you offer?



Empathy Map• Name your Persona– Lifestyle details– Personality– Pains/Gains/Jobs to be done

• What is their current experience with your product?• Where are there gaps?• How can you fill them?


35© FTForge, LLC | FTForge.com 35© FTForge, LLC | FTForge.com



How Might We…?

HMW…


Five Whys• Why?• Why?• Why?• Why?• Why?


Process Map


Solution Sketches

41© FTForge, LLC | FTForge.comSprint: How to Solve Big Problems and Test

New Ideas in just Five Days - Jake Knapp, et all

42© FTForge, LLC | FTForge.comSprint: How to Solve Big Problems and Test

New Ideas in just Five Days - Jake Knapp, et all


Mad Lib

____________ need to ____________ because ____________



Horizon 1Extend and

Defend Core Businesses

Horizon 2Build

Emerging Businesses

Horizon 3Create Viable

Options

McKinsey, 1999

Three Horizons Model


Time FrameHorizon 1

(0-12 Mos.)Horizon 2

(12-36 Mos.)Horizon 3

(36-72 Mos.)

Driving Goal Maximize Economic Returns

Become a Going Concern

Create a Category

Key Performance Indicators

• Revenue vs. Plan• Bookings• Contribution

Margin• Market share• Wallet share

• Target accounts vs plan

• Sales velocity• Deal size• Segment share• Time to tipping

point

• Name-brand customers

• Deal size• Name-brand

partners• PR buzz• Flagship projects

OPEX TIMEX CAPEXPrecious Commodity:

Goals and Metrics: Three Horizons

Escape Velocity, Geoffrey Moore, 2011


Operational Excellence

Customer Intimacy

Product Leadership

“The Discipline of Market Leaders”Michael Treacy and Fred Wiersema, 1995


Customer Relationship Management

Infrastructure Management

Product Innovation

“Unbundling the Corporation”Harvard Business Review– John Hagel and Marc Singer, 1999




Product Innovation

Efficiency/RenewalStrategies

Growth Maturity Decline




Product Innovation

Efficiency/RenewalStrategies

Disruptive Innovation

Application Innovation

Value Engineering Innovation

Integration Innovation

Process Innovation

Value Migration

Innovation

Product Innovation

Platform Innovation

Line Extension

Innovation

Enhancement Innovation

Marketing Innovation

Experiential Innovation

Renewal Innovation

Acquisition Innovation

Adapted fromDealing with Darwin: How Great Companies Innovate at Every Phase of Their Evolution, byGeoffrey Moore, 2005


Adapted from Dealing with Darwin, Geoffrey Moore, 2005

Product Leadership

Disruptive Innovation Horseless Carriage, Napster, iTunes

Application Innovation Delivery vans, Desktop Publishing

Product Innovation Auto transmission, Hybrid engines

Platform Innovation Assembly line, Microsoft Windows

Customer Intimacy

Line-Extension Innovation SUVs, ESPN2

Enhancement Innovation Anti-lock brakes, airbags,

Marketing Innovation Ford Mustang, Tesla, IKEA

Experiential Innovation Lexus, Tesla, Uber, Disney

OperationalExcellence

Value-Engineering Innovation Toyota, Hyundai, Flat screen TVs, computers

Integration Innovation Printer/scanners, Mutual funds

Process Innovation Toyota, Dell, IKEA

Value-Migration Innovation Uber, Salesforce

CategoryRenewal

Organic Innovation IBM, Apple

Acquisition Innovation Cisco, Daimler (Car2Go)


Standardized Process Specialized

Low

Tou

ch

Int

ima

cy/

EQ

Hig

h To

uch

Execution Diagnosis

Adapted from True Professionalism

© 1997 David H. Maister, used by permission

Fees

Scalability



Low

Tou

ch

Int

ima

cy/

EQ

Hig

h To

uch

Execution Diagnosis



• Product Advice• Onboarding• Fiduciary• Complex issues• Small Business

• Relationship Management• Strategic Planning • Nonfinancial Advice

• Custom Credit• Asset Mgmt• Trust Admin• Corp Banking• ABL• Syndications

• Basic Service• Statements• Std. products• Transactions• Item process.• Payments• Cards



Low

Tou

ch

Int

ima

cy/

EQ

Hig

h To

uch

Execution Diagnosis



• Product Advice• Onboarding• Fiduciary• Complex issues• Small Business

• Relationship Management• Strategic Planning • Nonfinancial Advice

• Custom Credit• Asset Mgmt• Trust Admin• Corp Banking• ABL• Syndications

• Basic Service• Statements• Std. products• Transactions• Item process.• Payments• Cards

Technology

§ Artificial Intelligence§ Virtual Reality§ Machine Learning§ Deep Learning

§ Data Analytics§ Business Intelligence§ Heuristic Algorithms§ Data Aggregation

Customer Experience


Expense

Income Growth

Foundation

Current Future

Revenue

Portfolio Approach

Infrastructure


New

New

Portfolio Allocation

Existing Products/Services

Cus

tom

ers

/Ma

rke

ts

Core

Adjacent

Transformational


Portfolio Allocation

Core

Adjacent

Transformational

70%

20%

10%

Risk


Return On Innovation

Core

Adjacent

Transformational

10%

20%

70%

Return


• Over-met/Under-met Needs• Increase/Reduce• Add/Subtract• Strategy Map• Business Model Canvas

Finding the White Space


• Substitute• Combine• Adapt• Magnify• Minimize• Modify• Put to other uses• Eliminate• Reverse• Rearrange

SCAMPERR Model


Blue Ocean Strategy MapPr

ice

Star

Per

form

erA

nim

al S

how

Ais

le C

once

ssio

nsM

ultip

le S

how

…Fu

n &

Hum

orTh

rills

& D

ange

rU

niqu

e Ve

nue

Them

e

Refin

ed…

Mul

tiple

…A

rtis

tic M

usic

&…

Ringling Brothers and Barnum & Bailey Regional Circuses Cirque du Soleil


Temperament Role Role Variant

Concrete or Abstract?

Cooperative or Utilitarian? Informative or Directive? Expressive or Attentive?

Observant

(S)

Guardian (SJ)

Conservator (SFJ)Supporting

Provider (ESFJ): Supplying

Protector (ISFJ): Securing

Administrator (STJ)Regulating

Supervisor (ESTJ): Enforcing

Inspector (ISTJ): Certifying

Artisan (SP)

Entertainer (SFP)Improvising

Performer (ESFP): Demonstrating

Composer (ISFP): Synthesizing

Operator (STP)Expediting

Promoter (ESTP) Persuading

Crafter (ISTP): Instrumenting

Introspective

(N)

Idealist (NF)

Advocate (NFP)Mediating

Champion (ENFP): Motivating

Healer (INFP): Conciliating

Mentor (NFJ)Developing

Teacher (ENFJ): Educating

Counselor (INFJ): Guiding

Rational (NT)

Engineer (NTP)Constructing

Inventor (ENTP): Devising

Architect (INTP): Designing

Coordinator (NTJ)Arranging

Fieldmarshal (ENTJ): Mobilizing

Mastermind (INTJ): Entailing


Kaizen Model

Standards

Improvement

Innovation

Front Line

Supervisors

Middle Mgmt

Senior Mgmt


The Four Zones of Innovation

RevenuePerformance

Disruptive Innovation

EnablingInvestments

SustainingInnovation

Zone to Win, Geoffrey Moore, 2015

TransformationZone

IncubationZone

PerformanceZone

ProductivityZone

Horizon 1

Horizon 1

Horizon 2

Horizon 3


Low Directive Behavior High

Low

S

upp

orti

ve B

eha

vio

r H

igh

Hersey and Blanchard, c.1975

Delegating

Supporting

Directing

Coaching

Situational Leadership


Clear, compelling

case for change

Demonstrated leadership

commitment

Clear WIFM for all

Concrete implementation

planReinforcement

Skills, knowledge, tools in place


commitment

Clear WIFM for all


planReinforcement


Clear, compelling

case for change

Clear WIFM for all


planReinforcement


Clear, compelling

case for change


commitment


planReinforcement


Clear, compelling

case for change


commitment

Clear WIFM for all

ReinforcementSkills,

knowledge, tools in place

Clear, compelling

case for change


commitment

Clear WIFM for all


planReinforcement

Clear, compelling

case for change


commitment

Clear WIFM for all


plan


“See It” “Own It” “Do It”

Moving from Strategy to Results through People - @1999 AchieveGlobal

“It’s not urgent”

“It’s not real”

“It’s not worth it”

“It’s not going anywhere”

“It’s not possible”

“It’s not for long”

“It’s working!”


Innovation Team

Centralized Broad Based

Decentralized

Less More

More

Breadth of Involvement

De

pth

of I

nvo

lve

me

nt

Depth vs. Breadth


Traditional R&D

Crowd/Partner Sourced

Open Innovation

Employee Sourced

Less More

More

Internal Involvement

Exte

rna

l Inv

olve

men

t

Internal vs. External


GovernanceNeeds to be specifically identified; frameworks can be used to effectively structure team

ResourcesInternal and external resources (including financial budget) needed for the process

Innovation ManagementSmall team will help make sure that day-to-day progress aligns with strategic vision

Data ReportingCapturing data in a systematic

way and presenting finding versus relevant benchmarks will help inform conclusions

Decision Making1) Proceeding, 2) revising

and redoing or 3) abandoning are all successful

outcomes

Taking ActionBased on the data and the

decision, the team will craft an action plan to proceed

1

2

3

4

5

6


Responsible for actually completing the task.

Accountable for the completion of the task. Delegates work to those responsible.

Resources allocated to responsible to actually support completion of the task.

Consult with opinions on project via two-way communication.

Kept up-to-date on progress, often only on completion; one-way communication

RESPONSIBLE

ACCOUNTABLE

SUPPORT

CONSULTED

INFORMED

RASCI Matrix: Framework helps assign and display responsibilities for individuals within an organization. Everyone on the team has a role.


Low EFFORT High

Low

IMP

AC

TH

igh

Incremental

Easy Wins Big Bets

Money Pit


1 532 4

What is the long-term strategic value?

How rare is this in the marketplace?How difficult would this be for competitors to replicate?

Can we to organize around this as a core differentiator?

Impact

Impact Score: 2.2

How oriented is this towards revenue?


1 532 4

How long will this take?

How broad is the demand on internal resources across the organization?

How much much board/ELT attention needed?

How much will this cost?

Effort

Effort Score: 2.0

How much experience do we have in successfully implementing similar projects?


IdeaLong-term strategic value

How rare is this in the market?

How hard is it to replicate?

Will we organize around it?

ImpactScore

Cost/ Effort/ Attention?

Past experience/ success?

EffortScore

Mobile App 5 1 1 3 2.2 2 4 2.0SMB Lending 5 4 4 4 4.1 2 4 2.0CRM 4 3 4 3 3.4 5 2 5.2Onboarding 2 4 3 2 2.7 4 3 4.1P2P 2 3 1 1 1.5 2 3 2.1Mortgage App 3 3 2 1 1.9 1 4 1.0Website 3 2 2 3 2.5 2 5 2.0Cybersecurity 2 2 1 1 1.3 3 3 3.1


Idea Effort Impact ICE Index

SMB Lending 2.04 4.10 201

Mortgage App 1.02 1.90 186

Website 2.02 2.50 124

Mobile App 2.04 2.20 108

P2P 2.06 1.50 73

Onboarding 4.12 2.70 66

CRM 5.20 3.40 65

Cybersecurity 3.09 1.30 42

CurrentRevenue

Future Revenue

Foundational Investments

ExpenseReduction

Value Drivers

ICE MatrixPrioritization Dashboard


IdeaLong-term strategic value

How rare is this in the market?

How hard is it to replicate?

Will we organize around it?

ImpactScore

Cost/ Effort/ Attention?

Past experience / success?

EffortScore



Refine Approach



Rapid Prototypin

g


TRIAL 1 TRIAL NTRIAL 2

FIRE Break™


Risk and Compliance



Refine Approach



Rapid Prototypin

g


Refine Approach



Rapid Prototypin

g



FIRE Break™


Risk and Compliance



Enablers Blockers

Date post:	17-Jul-2020
Category:	Documents
Upload:	others
View:	0 times
Download:	0 times

2018 Nicols Class Materialsjpnicols.com/wp-content/uploads/2018/05/2018... · process may be new...

Documents