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The future of Agile in Organizations

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The future of Agile in Organizations - presentation I gave to local client base.

The future of Agile in Organizations - presentation I gave to local client base.

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  • 1. BSS Nexus Global © 2013April 2013 The Future of Agile in Organizations Larry Cooper Senior Partner, BSSNexus President, AthenaNexus
  • 2. BSS Nexus Global © 2013April 2013 Agenda Which Age do you live in? What is Agile? What’s happening now? What does that mean to our Organizations?
  • 3. BSS Nexus Global © 2013April 2013 WHICH AGE DO YOU LIVE IN?
  • 4. BSS Nexus Global © 2013April 2013 The Ages Agrarian Industrial Digital
  • 5. BSS Nexus Global © 2013April 2013 Agrarian Age Move from hunter/gatherers to farming and ranching Focus on the land and self-sufficient farming Some specialized roles began to develop – but no hierarchies Attention to communication
  • 6. BSS Nexus Global © 2013April 2013 Characteristics Invention of writing with need to keep records of planting and harvests, taxation and barter Education limited to an elite School calendar revolved around the summer harvest
  • 7. BSS Nexus Global © 2013April 2013 Industrial Age Mass production – machines became means of production, replacing land Centralization - organize large groups of workers (assembly line of Henry Ford) Separation of ownership and management
  • 8. BSS Nexus Global © 2013April 2013 Creation of the bureaucracy
  • 9. BSS Nexus Global © 2013April 2013 Focus on the 3Rs
  • 10. BSS Nexus Global © 2013April 2013 Characteristics Introduction of Hierarchies It is a ‘boss-driven’ world focused on creating ‘shareholder value’ Traditional educational institutions have monopoly on learning
  • 11. BSS Nexus Global © 2013April 2013 http://www.entrepreneur.com/article/226346
  • 12. BSS Nexus Global © 2013April 2013
  • 13. BSS Nexus Global © 2013April 2013 HUMANS AS RESOURCES – THE DIRTY LITTLE SECRET
  • 14. BSS Nexus Global © 2013April 2013 The dirty little secret… “The Messy Link Between Slave Owners and Modern Management”, http://hbswk.hbs.edu/item/7182.html "From Slavery to Scientific Management: Capitalism and Control in America, 1754-1911,“, Caitlin C. Rosenthal , Hard Fellow, and the forthcoming edited collection “Slavery's Capitalism” Baby: $150 26 Yr old: $1500 55 Yr Old: $150 48 Yr old: $900 Resource?
  • 15. BSS Nexus Global © 2013April 2013 Characteristics Absentee “ownership” Separation of Ownership & Management Widespread adoption of accounting techniques – Asset appreciation/depreciation People…as assets…resources…
  • 16. BSS Nexus Global © 2013April 2013 Intended Result of her Research • Rosenthal says “she wants her research to inform managers and companies to become more aware of the complicated legacy of today's business practices and the origins of some of their day-to-day management practices.” http://www.wired.co.uk/magazine/archive/2013/03/ideas-bank/we-need-a-new-language-for-the-collaborative-age
  • 17. BSS Nexus Global © 2013April 2013
  • 18. BSS Nexus Global © 2013April 2013 Digital Age Rapid pace of change Internet has created the mechanism for “mass collaboration” Ascendance of Knowledge Networks Decline of facilities and machines as critical economic assets
  • 19. BSS Nexus Global © 2013April 2013 Characteristics It is a ‘customer-driven’ world focused on creating ‘customer value’ Core values – knowledge and speed & collective intelligence over individual intelligence Hierarchies are its antithesis Diversified educational models
  • 20. BSS Nexus Global © 2013April 2013 WHAT IS AGILE?
  • 21. BSS Nexus Global © 2013April 2013 What is Agile? Manifested through Practices Guided by Principles Defined by Values Mindset
  • 22. BSS Nexus Global © 2013April 2013 What is Agile? A way of thinking about and inculcating agile behaviours, attitudes, culture, leadership styles, etc. Manifested through Practices Guided by Principles Defined by Values Mindset Our belief and value systems e.g. Agile (software) Manifesto, Agile Marketing Manifesto e.g. The 12 Principles e.g. Scrum, XP, Lean, DSDM, Crystal, Lean, etc.
  • 23. BSS Nexus Global © 2013April 2013 Agile’s Prime Directive “Regardless of what we discover, we understand and truly believe that everyone did the best job they could, given what they knew at the time, their skills and abilities, the resources available, and the situation at hand” Norm Kerth, Project Retrospectives: A Handbook for Team Reviews
  • 24. BSS Nexus Global © 2013April 2013 1970 Dr. Winston Royce (Incremental not Waterfall) 1959 W.L. Gore & Associates “lattice” management
  • 25. BSS Nexus Global © 2013April 2013 Definition ag•ile ædʒ əl, -aɪlShow Spelled [aj-uh l, -ahyl] adjective 1. quick and well-coordinated in movement; lithe: an agile leap. 2. active; lively: an agile person. 3. marked by an ability to think quickly; mentally acute or aware: She's 95 and still very agile. ________________________________________ Origin: 1570–80; earlier agil < Latin agilis, equivalent to ag- (base of agere to do) + -ilis -ile Related forms ag•ile•ly, adverb ag•ile•ness, noun un•ag•ile, adjective un•ag•ile•ly, adverb Synonyms 1. nimble, sprightly. 2. brisk, spry. Antonyms 1. awkward. 2. sluggish, lethargic.
  • 26. BSS Nexus Global © 2013April 2013 True Goal of Agile Practices “Accelerate speed to Value by doing Less” Pat Reed • This is not “doing more with less” – it means to do only those things that create value!
  • 27. BSS Nexus Global © 2013April 2013 In practice Characterised by Emphasizes Self-organizing, self-managing, and self-directing Highest Value first Time-boxed iterations Continuous delivery Transparency and truthfulness Customers over bosses – it’s an ‘outside-in’ view Value Management orientation over requirements management orientation Simplicity over complexity Leadership over directed management Roles over job titles
  • 28. BSS Nexus Global © 2013April 2013 In practice… “Adults enter into contracts, choose mates, raise children, and make all sorts of important decisions. Why do we expect that those very same adults need close supervision when they come to work?” http://agile.dzone.com/articles/how-much-self-management-right
  • 29. BSS Nexus Global © 2013April 2013 And…some new terms emerging Compass Metric Strategic Iteration Self-Organized Learning Environments (SOLE) Connected Collaboration “Radical Management” – Steven Denning People Agility, Change Agility, Results Agility
  • 30. BSS Nexus Global © 2013April 2013 WHAT’S HAPPENING NOW?
  • 31. BSS Nexus Global © 2013April 2013 Some of the Realities The new normal is that there is no normal Business issues have shifted from discrete problems to holistic messes - requiring holistic, networked, collaborative approaches to resolve We cannot use the past to predict the future (Moore’s Law now applies to our business environment) Creative disruption is becoming a constant: E.g. 3D/4D printing…
  • 32. BSS Nexus Global © 2013April 2013 Effects of Social Media 2009 US DoE: On average, online students out-performed those receiving face-to-face instruction Groupon reached $1 billion in sales faster than any company in history Over 50% of the world’s population is under 30-years-old 90% of consumers trust peer recommendations - only 14% trust advertisements What “happens in Vegas” stays on YouTube, Flickr, Twitter, Facebook… In 10 years over 40% of the Fortune 500 will no longer be here (some put it as high as 70% of the Fortune 1000!)
  • 33. BSS Nexus Global © 2013April 2013 PUBLIC SECTOR
  • 34. BSS Nexus Global © 2013April 2013 UK Government “The Government intends to use agile in information and communications technology (ICT) procurement and delivery to reduce the risk of project failure. At a hearing of the Committee of Public Accounts in May 2011, it became clear that the Government did not consider agile solely as a method for improving software development. It is also a technique for successful ICT-enabled business change. The then Cabinet Office Permanent Secretary stated that “there is no such thing as an IT project; there are only business projects that involve IT”. He also said that trying “to change the whole system nationally on a single day – the so-called ‘big bang’ implementation – is doomed to failure in almost every situation.”
  • 35. BSS Nexus Global © 2013April 2013 UK Government - Agile Governance Only do a task if it brings value to the business Teams should decide performance metrics they will use and self-monitor Collaborative approach requires an essential change in mindset External assessment or reviews of Agile delivery should focus on the teams’ behaviours and not just processes and documentation
  • 36. BSS Nexus Global © 2013April 2013
  • 37. BSS Nexus Global © 2013April 2013 US Government
  • 38. BSS Nexus Global © 2013April 2013 Government of Canada Consolidate web-presence Organized by User needs not by how government is organized Engage Canadians through social media Accelerate deployments
  • 39. BSS Nexus Global © 2013April 2013 PRIVATE SECTOR
  • 40. BSS Nexus Global © 2013April 2013 W.L. Gore and Associates “There are neither chains of command nor predetermined channels of communication. Leaders replace the idea of “bosses. Associates choose to follow leaders rather than have bosses assigned to them. Associate contribution reviews are based on a peer-level rating system.” Introduced “lattice management” in 1959 because the “real conversations happen in the car pools” Terri Kelly earned the title of president and CEO in 2005 (one of the few titles at Gore) following a peer-driven selection process.
  • 41. BSS Nexus Global © 2013April 2013 Cloud in Private Sector
  • 42. BSS Nexus Global © 2013April 2013 Intel At $10k – small number of PCs shipped At $1k – 100m units/year At $600-700 – 300m units/year At $10 – 1b units/year (means $100 machines) From 2005 to 2011 to get company to understand consequences
  • 43. BSS Nexus Global © 2013April 2013 Local Company: Shopify
  • 44. BSS Nexus Global © 2013April 2013 Old and New Ford: Weekly Strategic Iteration meetings Blue-Cross Blue-Shield FEIP: Leaders as facilitators of strategy execution and performance SalesForce: Work on the most important thing first, then the second, then the third…
  • 45. BSS Nexus Global © 2013April 2013 Canada’s Best Managed Companies http://www.slideshare.net/DeloitteCanada/deloitte-8-simpleq6full1bpptx-1 Simplicity leads to clarity Clarity leads to focus Focus leads to success
  • 46. BSS Nexus Global © 2013April 2013 EDUCATION
  • 47. BSS Nexus Global © 2013April 2013 Schools • “School in the cloud” – Sugata Mitra • 400+ “grannies from the UK” – simple encouragement is as good as classroom instruction…they taught themselves about DNA replication… TED Talks: http://www.ted.com/talks/sugata_mitra_build_a_school_in_the_cloud.html Self-Organized Learning Environments (SOLEs) (India, UK, Australia, NZ…)
  • 48. BSS Nexus Global © 2013April 2013 Universities/Colleges Connected Collaboration to foster more innovation between specializations across universities – they should be collaborators not competitors Competency-based evaluation of university/college programs (Badges) Outcomes-based learning focused on job markets Universities (US, Middle East, Europe, India) wanting to have students graduate with ICAgile accreditation (Badges) “Degrees, certificates...Badges?”, TVO, April 13, 2013
  • 49. BSS Nexus Global © 2013April 2013 Massive Open Online Courses (MOOC) Large scale interactive participation Distance education that builds communities of students, professors, and TAs Early days but gaining in popularity
  • 50. BSS Nexus Global © 2013April 2013 Training/Education Providers Adjust offerings away from teaching traditional management and its methods Blended-learning formats Greater emphasis on experiential learning Participants in defining the content and context of offerings
  • 51. BSS Nexus Global © 2013April 2013 Agile is everywhere… Executive Leadership – Ford, Blue Cross-Blue Shield, SalesForce Healthcare – Kanban to cut wait times and lab work queues Self-organized Learning Environments (SOLEs) – NZ, Australia, UK, India “The school system isn’t broken. It’s functioning exactly the way it was intended. It is simply that it is obsolete” – Sugta Mitra
  • 52. BSS Nexus Global © 2013April 2013 WHAT DOES THIS MEAN TO AN ORGANIZATION?
  • 53. BSS Nexus Global © 2013April 2013 Rod Collins, Upcoming book commissioned by American Management Association “leaders are feeling overwhelmed by the pace of change and they believe there must be a better way of leading and managing” Emerging Practice Serendipity over planning Self-organization over central organization Emergence over directed Simple rules over detailed coordination Transparency over control
  • 54. BSS Nexus Global © 2013April 2013 In a Networked/Connected World… The drivers of people motivation are different – employees, customers/clients, partners, etc. Leaders have to rely on collective over individual intelligence The leader steers the culture – the culture steers the organization Delighting the customer/client is the imperative There are many possible right answers from which to choose – emergent discovery over decision-making
  • 55. BSS Nexus Global © 2013April 2013 Traditional Thinking Limits Options Trying to apply traditional management tools to new problems (Risk: unknown-unknowns) Knowledge management: expertise can no longer be leveraged through codification (if it ever could…) Adherence to formal job descriptions limits agility and promotes dysfunction
  • 56. BSS Nexus Global © 2013April 2013 Which Mindset? http://ewsatc.wordpress.com/2010/10/27/why-so-few/
  • 57. BSS Nexus Global © 2013April 2013 Culture http://www.infoq.com/articles/organizational-culture-and-agile
  • 58. BSS Nexus Global © 2013April 2013 Beliefs and Value Systems Disciplines and roles over job descriptions and titles Adapting multiple methods over adopting individual methods (emergent discovery) Education and “learning how to learn” over just training in particular methods Innovative thinking over just content expertise
  • 59. BSS Nexus Global © 2013April 2013 “Well look, I already told you. I deal with customers so the engineers don’t have to. I have people skills. I’m a people person, dammit! Don't you see that?” Tom from movie “Office Space”
  • 60. BSS Nexus Global © 2013April 2013 Shift in Power and Balance Shift from being in charge to being connected Shift from knowing to learning Shift from leveraging individual intelligence to empowering collective intelligence Shift from planning to adapting The leader is no longer expected to be the single source of wisdom
  • 61. BSS Nexus Global © 2013April 2013 Tolerance for Ambiguity Iterate so you can learn and manage through uncertainty Failing fast is a good thing Tolerate ambiguity in the presence of a clear vision Embrace creative disruption
  • 62. BSS Nexus Global © 2013April 2013 Core Business Outside-in focus negates the “bosses” in favour of customers/clients Lean and Agile principles and practices are and will continue to infiltrate everyday work Learning will be part of daily work and work teams will be more common across the organization Ideation and innovation will occur at all levels Leaders will need to be facilitators and coaches
  • 63. BSS Nexus Global © 2013April 2013 IT Fewer traditional pure technical roles Greater emphasis on business skills over technical skills (e.g. Outside-in Service Management) Interpersonal and team collaboration skills Agile Operations (e.g. DevOps) Realization that Agile is a lot more than just a set of methods and practices
  • 64. BSS Nexus Global © 2013April 2013 Marketing
  • 65. BSS Nexus Global © 2013April 2013 Human Relations Focus on people, as…people…and not as resources and not be an extension of the legal department Need to hire people who are used to ambiguity and have mastered “learning how to learn” Job descriptions will be replaced by a focus on roles and disciplines Designing performance and compensation systems that support the new motivators and drivers Leaders and managers will be expected to handle their own “people issues” Adjust to changing workplace demographics
  • 66. BSS Nexus Global © 2013April 2013 Learning and Development Agile approaches getting applied to training/educational content development “Learning-in-context” of doing work In-person learning will be experiential focused; methods and practice will move on-line Teaching “learning how to learn” becomes a bigger issue Self-organized learning and other learning practices will become part of everyday work environments
  • 67. BSS Nexus Global © 2013April 2013 Unlearning our old ways… “How is education supposed to make me feel smarter? Besides, every time I learn something new, it pushes some old stuff out of my brain. Remember when I took that home winemaking course, and I forgot how to drive?” Homer Simpson
  • 68. BSS Nexus Global © 2013April 2013 Finance Procurement needs to be simpler, faster, and be driven by value delivery goals; this can still be done by following transparency, compliance, and cost parameters Capitalizing asset investment based on the new ways of working can improve the bottom line (Citrix On-line saved $10M in taxes) Partner/vendor selection based on intangibles such as culture and adoption of similar agile thinking and practices Too much focus on shareholder value can destroy customer value
  • 69. BSS Nexus Global © 2013April 2013 Leadership Leaders expected to communicate and live the vision and to design the work environment (the container) and let their teams define the content Networked Leader will be valued as will leader as facilitator Many suitable management models from which to adapt Decision-making models will give way to discovery models that focus on learning and adapting over knowing Teams will form to solve a problem or approach a new opportunity – without direction to do so
  • 70. BSS Nexus Global © 2013April 2013 How do we define Success?
  • 71. BSS Nexus Global © 2013April 2013 It’s just a matter of time before all of us will be asking the question that is causing so many twenty-somethings to turn their backs on traditional companies today: “Why, when we are able to quickly collaborate in cyberspace with all kinds of people from all over the globe, is it so hard to get anything done whenever we get together in the same room?” Rod Collins
  • 72. BSS Nexus Global © 2013April 2013 We need to be dogmatic about our goals, not our methods...
  • 73. BSS Nexus Global © 2013April 2013
  • 74. BSS Nexus Global © 2013April 2013 For more information (and to sign up for e-book) Larry.Cooper@BSSNexus.com Larry.Cooper@AthenaNexus.com ca.linkedin.com/lawrencekcooper Twitter: @coopelk99 Skype Id: Larry.Cooper +1 (613) 868-0982 (cell) +1 (888) 316-2745 BSSNexus Global Inc. AthenaNexus Inc.