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Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
Adaptive Leadership: Accelerating Enterprise Agility
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Adaptive Leadership: Accelerating Enterprise Agility

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Agile practices have proven to help software teams develop better software products while shortening delivery cycles to weeks and even days. To respond to the new challenges of cloud computing, …

Agile practices have proven to help software teams develop better software products while shortening delivery cycles to weeks and even days. To respond to the new challenges of cloud computing, mobility, big data, social media, and more, organizations need to extend these agile practices and principles beyond software engineering departments and into the broader organization. Adaptive leadership principles offer managers and development professionals the tools they need to accelerate the move toward agility throughout IT and the enterprise. Jim Highsmith presents the three dimensions of adaptive leadership and offers an integrated approach for helping you spread agile practices across your wider organization. Jim introduces the “riding paradox” and explores the elements of an exploring, engaging, and adaptive leadership style. Learn about the good things that can happen when you coherently articulate why agility is so critical today and then follow up with a plan of action. Find out how to build a continuous delivery capability within your company-at the team, department, and organization levels.

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  • 1.           KW2 Keynote  11/7/2012 12:45 PM                "Adaptive Leadership: Accelerating Enterprise Agility"       Presented by: Jim Highsmith ThoughtWorks, Inc.                 Brought to you by:        340 Corporate Way, Suite 300, Orange Park, FL 32073  888‐268‐8770 ∙ 904‐278‐0524 ∙ sqeinfo@sqe.com ∙ www.sqe.com
  • 2. Jim Highsmith ThoughtWorks, Inc. An executive consultant at ThoughtWorks, Inc., Jim Highsmith has more than thirty years of experience as an IT manager, product manager, project manager, consultant, and software developer. Jim is the author of Agile Project Management: Creating Innovative Products; the Jolt Award winner Adaptive Software Development: A Collaborative Approach to Managing Complex Systems; and Agile Software Development Ecosystems. He is a co-author of the Agile Manifesto, a founding member of The Agile Alliance, co-author of the Declaration of Interdependence for project leaders, and co-founder and first president of the Agile Project Leadership Network. Jim has consulted with IT and product development organizations, and software companies worldwide.
  • 3. Adaptive Leadership: Accelerating Enterprise Agility Jim Highsmith g Executive Consultant Don’t micro-manage Buy pizza and get out of the way 1
  • 4. Goals of Adaptive Leaders 3 Envision a Responsive Enterprise Deliver a Continuous Stream of Value Create an Innovative Culture Why Agile? Do Agile Be Agile ©2011 ThoughtWorks, Inc. Agility is a Strategic Issue 4 “88% of executives cite organisational agility as key to global success.” “50% say that agility is not only important, but a core differentiator.” diff ti t ” Source: The Economist, Special Report on Agility, March 2009 2
  • 5. Opportunity exploit the change …exploit the change Danger …survive the change 5 Are We at an Inflection Point? “Every decade Every decade  or so since the  beginning of  the computer  age there  comes a  platform  change...” • 2000 ‐ the Web • 2012‐mobility (individuals),  cloud (system) plus big  data and social media Source: “The Impact of Technology Mega‐Trends on Corporate IT  and Business Models,” Tuck School of Business at Dartmouth. 3
  • 6. Social Business is Big Business Dell’s Social Media Command  Center monitors Facebook,  Twitter, and more in the  blogosphere. In 13 languages,  effectively in every country.  “It’s really 24/7, and you can’t  even take a tea break.” Source: “The Impact of Technology  Mega‐Trends on Corporate IT and  Business Models,” Tuck School of  Business at Dartmouth Core Business Strategies 8 Responsiveness ©2011 ThoughtWorks, Inc. Efficiency 4
  • 7. Beyond Budgeting Next Gen Management Lean (lean ( startup) Business Responsiveness 10 5
  • 8. Strategy & Continuous Delivery Increas Commitment sing 11 ©2011 ThoughtWorks, Inc. Increasing Benefit & Investment The Evolution to Continuous Innovation 12 Continuous Discovery Continuous Delivery Continuous C i Development ©2011 ThoughtWorks, Inc. 6
  • 9. Two Strategic Questions 13 In h I what ways does our d business need to be more responsive? If we could deliver solutions much faster via continuous design & delivery, how could we take advantage of that? ©2011 ThoughtWorks, Inc. Levels of Agility/Delivery 14 ©2011 ThoughtWorks, Inc. 7
  • 10. Why Adaptive Leadership? Better Performance Engaging Work Environment Battle for the Future Do Agile Be Agile Purpose Customers Enterprise (Adaptive Leadership) Talent Shareholders/ Financial Markets 8
  • 11. How Important is Health (Being)? “Organizations that focused on performance AND health simultaneously were nearly twice as successful as those that focused on health alone, and nearly three times as successful as those that focused on performance alone.” Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage, Scott Keller & Colin Price (McKinsey & Co.) Extensive Beyond Performance Research Surveys: 600,000 respondents, 500 companies 6,800 CEO s 6 800 CEO’s & senior executives Reviews: 900 books & academic journals Personal interviews: 30 CEO’s Data from: >100 McKinsey clients 9
  • 12. Agenda 20 Envision a Responsive Enterprise Deliver a Continuous Stream of Value Create an Innovative Culture Why Agile? Do Agile Be Agile Practices & Process ©2011 ThoughtWorks, Inc. 10
  • 13. Managers & Key Links Execution Levers 21 Continuous Innovation 11
  • 14. Lean Start Up Principles Entrepreneurs are everywhere Entrepreneurship is management Validated Learning Build Measure - L B ild – M Learn Innovation Accounting Execution Levers 24 Do Less Quality Capability Speed to Value ©2011 ThoughtWorks, Inc. 12
  • 15. Continuous Delivery of Value 25 Feature Backlog Items Running Tested Features Value: High l features V l Hi h value f Cycle Time: Concept to cash Throughput: Volume of features ©2011 ThoughtWorks, Inc. Do your systems look like this? Do you think it impacts your agility? 13
  • 16. Quality Matters 27 Scientific Instrument Company, Canada Average results from 6 before and 6 after Agile projects beforeafter-Agile Pre-Agile Post-Agile % Improvement $2.8 M $1.1M 61% 18 months 13.5 months 24% 2,270 381 83% 18 11 39% Project Cost Project Schedule Cumulative Defects Staffing Source: Michael Mah, QSM Assosciates Quality Issues (technical) Code quality Design quality Automated testing Technical debt reduction Blah, blah, blah is what y , , your business p partners hear! 14
  • 17. Historical Dilemma 29 Features Quality Business Outcome Technical Outcome What if? 30 Features Business Outcome ? Business Outcome 15
  • 18. What if? 31 Cycle Time Features Business Outcome Business Outcome The Consequences of Waterfall Plan, Develop, Build, Test, Release 12+/- months Hundreds of features Serial Development Maintain Weeks Few Features Serial Development Feedback from poor quality is long term Consequences of low quality difficult to determine 16
  • 19. Agile & Continuous Delivery 3-6 th 3 6 mths 3-6 th 3 6 mths Milestone 1 R1 R2 R3 3-6 th 3 6 mths Milestone 2 … R1 R2 R3 Milestone 3 … R1 R2 R3 … Weekly Releases Feedback immediate, a matter of weeks Consequences of low quality easier to determine. Goal Not Features, but Continuous Stream of Value! Speed to Value 34 “To create a profile of dexterous organizations, we grouped those CEOs who recognized the value of fast decisions, an iterative approach to strategy, and the ability to execute strategy with speed.” Source: IBM—Capitalizing on Complexity: Insights from the Global Chief Executive Officer Study (2010) 17
  • 20. Speed to Value: The Agile Triangle Value (Releasable P d ) (R l bl Product) Quality Constraints (Reliable, Adaptable Product) (cost, schedule, scope) 35 Do Less (But Get More) 36 Do the simplest thing possible that delights the customer ©2011 ThoughtWorks, Inc. 18
  • 21. Do Less: Eliminate Marginal Value 37 Always 7% 2% of code used as written f d d itt Often 13% $35 Billion, DOD Software Crosstalk Journal 2002 Never Used 45% Sometimes 16% Rarely Used 19% < 5% of code used Commercial Software 400 projects over 15 years IEEE conference 2001 64% of code never or rarely used Standish Group Study,  reported by CEO Jim Johnson,  XP2002 38 “Everyone tries to do too much: solve too many problems, build products with too many features. We say ‘no’ to almost everything. If you include every decent idea that comes along, you’ll just wind up with a half-assed version of your product. What you want to do is build half a product that kicks ass.” Quotes from the founders of 37signals in Practically Radical by William Taylor, 2011) ©2011 ThoughtWorks, Inc. 19
  • 22. Traditional Value Curve 39 Value Cost Ratio Curve (T raditional) Vaule Captured vs Cost Expended e 120 100 100 90 80 80 70 60 Value % 60 40 Cost % 50 50 40 30 20 20 10 5 0 1 5 5 2 5 3 4 5 6 25 20 15 10 7 8 9 10 Development Phases ©2011 ThoughtWorks, Inc. Agile Value Curve 40 Strategies Most valuable first Value Cost Ratio Curve (Agile) Evolve features Vaule Captu ured vs Cost Expended 120 100 85 80 80 75 60 40 70 Value % 60 55 Determine right cutoff 100 98 90 95 90 Cost % 50 40 30 20 20 15 10 5 0 1 2 3 4 5 6 7 8 9 10 Iteration ©2011 ThoughtWorks, Inc. Where is the right cut-off point? 20
  • 23. 41 “ …innovation is not about saying "yes" to everything. It's about saying "no" to all but the most crucial features.” Steve Jobs, (former CEO Apple Computer Inc) ©2011 ThoughtWorks, Inc. Build Capability 42 People Technology Process Culture ©2011 ThoughtWorks, Inc. 21
  • 24. The Possible—HP’s FutureSmart Goal: Revamp HP LaserJet software across product line Common software Adaptable Applications 5% to 40% innovation Cycle time from 2 months to 1 day Reduced development costs by 40% Enterprise Agile planning & prioritization 400 people, distributed Complex and fast changing market Source: Practical Large Scale Agile, Gary Gruver, Mike Young, Pat Fulghum, Addison Wesley mid-2012 3 years for transformation Started with CI & CD! Build a Responsive Software Delivery Engine 44 Value WIP Feature Backlog Items Technical debt Running Tested Features Do Less Quality Measures: M Value Cycle Time Throughput ©2011 ThoughtWorks, Inc. 22
  • 25. Software Delivery Evolution 45 12+ months After 12+ months Build Maintain Project 9-12+ mths 9-12+ mths 9-12+ Mths Release 1 Release 2 Release 3 3-6 mths 3-6 mths Product Continuous Delivery Release 1 D1 D2 D3 Days to Weeks 3-6 mths Release 2 … D1 D2 D3 Days to Weeks Release 3 … D1 D2 D3 … Days to Weeks ©2011 ThoughtWorks, Inc. 23
  • 26. Agenda 47 Envision a Responsive Enterprise Deliver a Continuous Stream of Value Create an Innovative Culture Why Agile? Do Agile Be Agile Values & Principles ©2011 ThoughtWorks, Inc. Command-Control Adaptive Leadership ©2011 ThoughtWorks, Inc. 48 24
  • 27. Simple Rules — Dee Hock 49 “Simple, clear purpose and principles give rise to complex, complex intelligent behavior.” “Complex rules and regulations give rise to simple, stupid behavior. behavior ” ©2011 ThoughtWorks, Inc. 50 25
  • 28. Adaptive Leadership Mindset 51 Adapting Exploring Riding Ridi Paradox Engaging ©2011 ThoughtWorks, Inc. 52 It is difficult to make predictions, especially about the future. Yogi Berra ©2011 ThoughtWorks, Inc. 26
  • 29. Adapting 53 A traditional manager focuses on following the plan with minimal changes, whereas an agile leader focuses on adapting successfully to inevitable changes. –Jim Highsmith Predictable versus Adaptable 54 27
  • 30. Four Tools for Adapting 55 OODA Loop (adapted from (Boyd, 1995) Purpose Alignment Model (Pixton, Nickolaisen, Little, & McDonald, 2009) The Short Horizon Model ©2011 ThoughtWorks, Inc. Exploring The Satir Change Model (Weinberg & Smith, 2000) Exploring 28
  • 31. Engage/Inspire 57 Daniel Pink, Drive: The Surprising Truth about What Motivates Us ©2011 ThoughtWorks, Inc. Engage—Facilitating 29
  • 32. Create an Innovative Team Culture Self organizing Self-organizing Autonomy Delegation Team Engagement Decision Framing Empowerment Leadership Peer-to-Peer ©2010 Jim Highsmith 59 Riding Paradox Paradox NOT = Problem 30
  • 33. Agile 101 61 Paradoxes for Adaptive Leaders Yin Yang Control Freedom Accountability Autonomy Top-down Hierarchy Self-organizing Predictability Adaptability Managers and Edicts Peers and Norms Hierarchies Hi hi Networks N k Efficiency Responsiveness 31
  • 34. 32
  • 35. More Information White paper: “Adaptive Leadership: Accelerating Enterprise Agilit ” Jim Highsmith A ailable on Agility,” Highsmith, Available www.thoughtWorks.com. My blog: www.jimhighsmith.com. Twitter: @jimhighsmith ©2011 ThoughtWorks, Inc. 33

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