Breakthrough slides 150515

Whiteboard Breakthrough Technique Images

© gordon paul hatcher © gordon paul hatcherTime

QuantifiedResult

Cost /Net Income

Cost

ShortTime

LongTime Time

QuantifiedResult

Cost /Net Income

Cost

ShortTime

LongTime

$150K$165K

1X

. 1X $15K

Business As Usual

Business Result

Figure T0-3: Cost Over Time Figure T0-4: Business As Usual

© gordon paul hatcherTime

QuantifiedResult

Cost /Net Income

Cost

ShortTime

LongTime

1X

. 1X

Business As Usual

(BAU)

Breakthrough Business Result

Business as usual Business Result

10X+ Cost

Worth doing but n

ot a Breakthrough

Figure T0-5: What Is a Breakthrough

Professional Disciplines;Engineering, Legal, Financial,

Marketing, Manufacturing, Etc.

Project Management

Techniques

People / Teams / Organizations

© gordon paul hatcher

Performance ManagementTechniques

Breakthrough Techniques

Results

Figure T0-6: Breakthrough techniques shown in results stack form with interfaces

Layer 1

Layer 5

Layer 3

Layer 2

Layer 4Layer 4

Interface A

Interface B

Interface C

Interface D


Engaging others in a manner that maximizes contribution

to objectives

Planning work in a manner that maximizes

contribution to objectivesMeasuring progressDefining objectives &

Finding resourcesUnderstandingKey Dynamics

What’s possible

Describe work as a result

You get what

you measureWork like an oil wildcatter

Stand in the future

Seek alignm

ent

Aim

once

shoot many

Don’t have

conversations

with yourself

Everyone sees what everyone

sees

Fir

st s

tep

in

colla

bo

rati

on

is

con

vers

atio

nH

ave

man

y

smal

l suc

cess

es

Have

smal

l fai

lure

s

Grant t

rust

Don’t waste tim

e

on decisions you

don’t have

Over communicate

Empower teammates

It’s not about you

Breakthrough Results

Policy Deployment

One Level Lower

In Magnitu

de

Figure T0-7: Breakthrough Techniques, Areas, & Results Shown as a Bridge

© gordon paul hatcher © gordon paul hatcher

PMI content is the CakeBreakthrough Techniques are the

icing on the Cake

Figure T0-8: The cake, the Icing, and the Icing on the cake


QuantifiedResult

Cost /Net Income

Cost

ShortTime

LongTime

1X

. 1X

Business As Usual

(BAU)


Business as usual Business Result

10X+ Cost

Worth doing but n

ot a Breakthrough

Where NMT

Landed

30X

Figure T0-9: Where NMT Landed


Limit of what is theoretically possiblefor a given problem

Variable X

Variable Y

Where does What’s possible exist?

Limit of what is theoretically possiblefor a given problem

Variable X

Variable Y

Where does What’s possible exist? Its right up against the limits of cost, physics, authority, etc.

A good place to

look

Figure T1-1: System Operating at Theoretical Limit Figure T1-2: Where To Look For What’s Possible


Over Here?No, Over Here

Figure T2-1: BAU guy tells Oil wild-catter Where to drill.

Figure T2-2: Oil wild-catter tells BAU guywhere to he / she is going to drill.


$ $ $ $ $ $

Figure T2-3: Oil Wild-catter result


21 18

Figure T3-1: A Result

Just hitting the ball for fun

Figure T3-2: An Activity

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91

$M R

ecog

nize

d Re

venu

e

Day in Quarter

Q4 NEP Booking Actuals

Q4 Booking Actuals $M

Q4 Booking Plan $M

Q4 Booking Target $M

Power (Q4 Booking Plan $M)


We Start Well But There Always Seems

To Be Something That Prevents Making The Objective In The End.We Really Need

To Make The Forecast. We’ve Missed The

Last Two Quarters……..

We Need A Plan.. An Artifact That Focuses

The Action Of The Team

Figure T4-1: The Plan

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0


Q4 Booking Actuals $MQ4 Booking Plan $MPower (Q4 Booking Plan $M)Q4 Booking Target $M

Day in Quarter

$M R

ecog

nize

d Re

venu

e


The Sales Team Always Underestimates How

Long Takes To Complete The Booking Packages. I’ll Remind

Them.If The Trend Of Falling Off Plan Continues, We Will Finish Under The

Objective.

We Seem To Be Falling Behind

Plan…

Figure T4-2: They All See The Same Thing

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91

$M R

ecog

nize

d Re

venu

e

Day in Quarter



Q4 Booking Plan $M




I’ll see if I can get the sales team to pull in some upside opportunities. Its week 9, we will have to pull that business in the

next two weeks.It would be prudent to have a larger safety margin, like say 10%

Its Week 9 and current performance is 97% of plan.

There is -3% margin of safety in meeting the

objective

Figure T4-3: The Plan Delivers Collective Action Driven By Collective Visibility

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91

$M R

ecog

nize

d Re

venu

e

Day in Quarter



Q4 Booking Plan $M




Wow…. WeReally Did Make The

Objective

Wow….We made it.

I Wasn’t Really SureWe were Really GoingTo Make It Until Week

11…

Figure T4-4: Team Got What the They Measured

© gordon paul hatcherNow

StartingPoint in future

$20M Booked Order

Start in th

e future a

nd……

..

M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12

Figure T5-1: Starting With A Future Result



$20M Booked Order

Start in th

e future a

nd……

..

Received $20MCustomer PO

What happened justBefore the $20M order booked?

Figure T5-2: What happened Immediately Before This Allowing This Result

Now M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12



$20M Booked Order

Start in th

e future a

nd……

.. Received $20MCustomer PO

Walk back

to th

e present…

….

Completed Deal Negotiation W/

CustomerMake Customer

binding offer

Deliver Proposal

And what happened just before the PO

was received?And what happened

just before the deal negotiations were complete?

And what happened Before a binding offer was made?

Figure T5-3: …. And What Allowed That To Happen…..




$20M Booked Order

Start in th

e future a

nd……

..


Walk back to th

e present…….



binding offer

Deliver Proposal

Complete Customer trial

Propose Customertrial

Propose product use to customer

What was the step before delivering the proposal to the customer?

What was the step before completing the customer trial?

Figure T5-4: Nearly Back to the Present


© gordon paul hatcherNow


$20M Booked Order

Start in th

e future a

nd……

..


Walk back to th

e present……. Completed Deal

Negotiation W/ Customer

Make Customer binding offer

Deliver Proposal



Propose product use by customer

Complete customer product usage scenarios

What was the step before proposing new product use?

What was the step before reviewing customer usage

scenarios?

M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12

Figure T5-5: From The Future…. All The Way To Now

© gordon paul hatcherM1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Now


$20M Booked Order




binding offer

Deliver Proposal



Complete customer product usage scenarios

Propose product use by customer

No resources expendedon anything out of the path from the now tothe future results

No resources expendedon anything out of the path from the now tothe future results

Start in th

e future a

nd……

..

walk back to present…

…..

Figure T5-6: All The Way Back To The Present


MA

VA

NYMD

RICN

NH

DE

SC

NC

GANJ

PA

Bla…Bla…Bla

Bla…Bla…Bla

Bla…Bla…Bla

Bla…Bla…Bla

Bla…Bla…

Bla

Bla…Bla…Bla

Bla…Bla…Bla

Bla…Bla…Bla

Bla…Bla…Bla

Figure T6-1: The Declaration Of Independence (DOI) Figure T6-2: The Continental Congress Bla….Bla…Bla


Figure T7-1: Aim Many – Shoot Once Figure T7-2: Aim Once – Shoot Many


………. I know whatJack would say…, Jack would say go to hell

Jack, Could you build a report that shows customer revenue deciles?

I know Jack Will say Go To Hell

Figure T8-1: Just Imagining Our Conversation Figure T8-2: Just Predicting The Future


That’s a great idea, sure, I can have it done tomorrow

Figure T8-3: What Could Really Happen


Figure T9-1: What Everyone Sees is a Little Different Than What Everyone One Else Sees


Figure T9-2: The strength of the wolf is in the pack

Figure T9-3: The wisdom of the elephant is in the herd


Figure T9-5: If you decide by yourself, you might as well be on an ice flow without cell coverage


Wow, that’s it. You work for a year and all the happens is that

you put another Technical Report in the book-shelf?

Really? …. That’s it?….. That’s All

Figure T10-1: Really?...... That’s It……. That’s All….. I Thought There Would be More


QuantifiedMonetizedBenefit of

The Result

Cost

ProjectStart

Project End

1X


10X+ Cost

Delivery of benefit of Functional

Increment #1


Increment #2


Increment #3

Delivery of benefit of complete System

Project

CostCumulative benefit from

each delivered functional increment

Figure T11-1: Have Many Small Successes


Step 1: rockets they knew

already worked

Step 2:Then

bigger rockets

The Earth

The Moon

Step 3: Then they put mammals inside and put those in orbit

Figure T12-1: First, they started with small rockets they knew already worked………

The Earth

The Moon

Figure T12-2: When they had learned the key aspects operating at that scale, they moved up to manned flight……….

Step 4Singledmanned

sub-orbital flight

Step 5: singlemanned orbital flight


Step 6: TwoAstronaut Missions /

More complex tasks

Step 7:Three

Astronaut Orbital

missions

The Earth

The Moon

Step 8: A rocket big enough toGet everything needed to the moon and back

The Earth

The Moon

Figure T12-3: When they had learned the key aspects operating at that scale, they moved up to larger / more complex missions……….

Step 9:Translunarflight

Step 10: Lunar

Landing

Figure T12-4: When they had learned the key aspects of operating at that scale, they moved up.


Figure T13-2: The Cross-Functional Team Working


Figure T13-1: Forming The Cross-Functional Team

You a great climber?

I sure am.


Not sure I should have

trusted that guy to hold the rope

Figure 13-3: Oops -The Cross-Functional Team

Ooopps…


Figure T15-1: Its Not About You


Legal’s is better than any restaurant of

any type. We should eat lunch there now

Now? Well, I’m not sure its

better than Café Escadrill

What sort of

obstructionist is this guy?

Figure T17-1: Not empowering your colleagues……..

What sort of jerk

is this guy?

Figure T17-2: The result of not empowering your colleagues


You think we should have lunch

at Legal’s?I sure do…..

Figure 17-3: Empowering your colleagues…


CorporateGoals

1

OrganizationLevelGoals

5

TeamGoals

6

IndustrySegment

Goals

4

BusinessUnit

Goals

3

DivisionGoals

2

Figure T19-1: Policy Deployment

IndividualGoals

7


Ahh…. What Was That You Said?….You

lost me

Figure T20-1: Ahh.. What was that?.. You lost me

0%

20%

40%

60%

80%

100%

120%

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79 81 83 85 87 89 91 93

% of

for

ecas

t / R

esul

t

Day in Quarter

Figure T20-2: Q4 Revenue Linearity with Historical Perspective

q2 rev. lin %

q3 rev lin %

q1 rev. lin. %

q4 rev. lin. %

model

q3 rev lin. %

q4 act. rev. / frcst


Figure T23-1: The Fitzsimmons Principle

Time

IdeaCreationRate PerUnit Time

T1 T3T2

R2

T5T4

R1

Ideas thathave evolved

to be practical & useful

Really cool, interesting, but not fully worked out

ideas


PULL PUSH

FigureI1-1: The Spectrum of Breakthrough Technique Implementation Approaches

Use Breakthrough Techniques in your

own work with attribution

Offer voluntary Breakthrough

Technique seminars across your organization

Conduct mandatory Breakthrough

Technique training across your

organization, top to bottom

Conduct Breakthrough Technique training

across your project, with your team-mates

The Spectrum

Buy Everyone in your organization a copy of this book, and ask them to

read it and put it to work

Leadership & Management

Breakthrough slides 150515