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Agile Management: Leading Teams with a Complex Mind

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These are the slides I used in my deep dive session at the Scrum Gathering in Amsterdam. ...

These are the slides I used in my deep dive session at the Scrum Gathering in Amsterdam.

See: Agile Management Workshop
http://www.noop.nl/2010/11/agile-management-workshop.html

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  • 1. Agile Management
    Leading Teams with a Complex Mind
    Jurgen Appelo
    jurgen@noop.nl
  • 2.
  • 3. Agile Management Workshop (intro)
    Explain to the other people at your table why you are here (instead of somewhere else).
  • 4. The Management 3.0 Model
    Six organizational views based on complexity thinking
  • 5. Emergent, self-organizing, unpredictable
    http://www.flickr.com/photos/judepics/
  • 6. Sometimes adaptive, sometimes not
    http://www.flickr.com/photos/hdr400d/
  • 7. Complex Systems
    “A complex system is a system composed of interconnected parts that as a whole exhibit one or more properties (behavior) not obvious from the properties of the individual parts.”
    Sometimes called the sciences of complexity (plural)
    http://cfpm.org/pub/users/bruce/thesis/chap4.pdf
  • 8. General Systems Theory
    Study of relationships between elements
    Ludwig von Bertalanffy
    (biologist)
    1901-1972
    Autopoiesis (how a system constructs itself)
    Identity (how a system is identifiable)
    Homeostatis (how a system remains stable)
    Permeability (how a system interacts with its environment)
  • 9. Cybernetics
    Study of regulatory systems
    Norbert Wiener
    (mathematician)
    1894-1964
    Goals (the intention of achieving a desired state)
    Acting (having an effect on the environment)
    Sensing (checking the response of the environment)
    Evaluating (comparing current state with system’s goal)
  • 10. Dynamical Systems Theory
    Study of system behavior
    Stability (stable states versus unstable states)
    Attractors (systems getting sucked into stable states)
  • 11. Game Theory
    Study of co-adapting systems
    John von Neumann
    (mathematician)
    1903-1957
    Competition versus cooperation
    Zero sum games versus non-zero sum games
    Strategies (including evolutionary stable strategies)
  • 12. Evolutionary Theory
    Study of evolving systems
    Charles Darwin
    (naturalist)
    1809-1882
    Population (more than one instance)
    Replication (mechanism of making new instances)
    Variation (differences between instances)
    Heredity (differences copied from existing instances)
    Selection (environment imposes selective pressure)
  • 13. Chaos Theory
    Study of unpredictable systems
    Edward Lorenz
    (meteorologist)
    1917-2008
    Strange attractors (chaotic behavior)
    Sensitivity to initial conditions (butterfly effect)
    Fractals (scale-invariance)
  • 14. And more...
    Study of all kinds of systems
    Dissipative systems (spontaneous pattern-forming)
    Cellular automata (complex behavior from simple rules)
    Genetic algorithms (adaptive learning)
    Social network analysis (propagation of information)
  • 15. The Body of Knowledge of Systems
    Complex systems theory enables a descriptive approach to the study of social systems
  • 16. Complexity
    “Complexity is that property of a system which makes it difficult to predict its overall behavior, even when given reasonably complete information about its components and their relations.”
    “edge of chaos”
    “chaordic processes”
    http://cfpm.org/pub/users/bruce/thesis/chap4.pdf
  • 17. System Dynamics
    Study of non-linear behavior of systems
    Jay Wright Forrester
    (computer engineer)
    1918-
    Circular feedback loops and time-delayed relationships
    Analysis through simulations and calculations
  • 18. Systems Thinking
    Approach to problem solving
    Peter Michael Senge
    (social scientist)
    1947-
    “Problems” are part of a system
    View systems in a holistic manner
    Not a science, but a “frame of mind”
  • 19. Some Criticism
    “The strength of systems thinking is its recognition that human systems are messy, they frequently need focus and alignment; its weakness is that it assumes that the design of that focus and alignment is a top down objective based process. […] The ambiguity of human systems is recognized, but the basic concept of central control or planning remains at the heart.”
    Multi-ontology sense-making- David Snowden (2005)
    http://kwork.org/stars/snowden/Snowden.pdf
  • 20. Some Criticism
    “Systems thinking contains a fundamental difficulty right at its roots. This is to regard human interaction as a system. This assumption leads to thinking about that interaction as something about which another human standing outside it makes choices.”
    Complexity and Management – Ralph Stacey (2000)
    http://www.amazon.com/Complexity-Management-Inorganisations-Ralph-Stacey/dp/0415247616/
  • 21. “Traditional” Systems Thinking
    observer
    system
    http://www.amazon.com/Complexity-Management-Inorganisations-Ralph-Stacey/dp/0415247616/
  • 22. Complexity Thinking
    observers
    system
    http://www.amazon.com/Complexity-Management-Inorganisations-Ralph-Stacey/dp/0415247616/
  • 23. The Unknowns
    Knowns Unknowns
    Unknowns Unknowns
  • 24. Non-linearity
  • 25. Complexity Thinking
    Jurgen Appelo
    (idea farmer)
    1969-
    Don’t separate the designers from the system
    Don’t ignore the human part (social complexity)
    Don’t ignore the unknown unknowns
    Don’t rely (too much) on linear cause and effect
    Complexity Thinking = Systems Thinking++
  • 26. Exercise: Complexity Thinking
  • 27. The Management 3.0 Model
  • 28. View #1: Energize People
    People are the most important parts of an organization and managers must do all they can to keep people active, creative, and motivated.
  • 29. Extrinsic Motivation
    Desire to achieve goal G
    Reward behavior B
    Assumption B leads to G
    Problems with non-linear effects
  • 30. Intrinsic Motivation
    Desire to achieve goal G
    Reward behavior B
    Where B = G
    No non-linear effects
  • 31. “16 Basic Desires”
    Acceptance The need for approval
    Physical Activity Or exercise
    Curiosity The need to think
    Power The need for influence of will
    Eating The need for food
    Romance The need for love and sex
    Family The need to raise children
    Saving The need to collect
    Honor Being loyal to a group
    Social Contact The need for friends
    Idealism The need for purpose
    Status The need for social standing
    Independence Being an individual
    Tranquility The need to be safe
    Order Or stable environments
    Vengeance The need to strike back
    Steven Reiss. Who Am I? The 16 Basic Desires That Motivate Our Actions and Define Our Personalities. City: Berkley Trade, 2002
  • 32. “16 Basic Desires”
    Acceptance The need for approval
    Physical Activity Or exercise
    Curiosity The need to think
    Power The need for influence of will
    Eating The need for food
    Romance The need for love and sex
    Family The need to raise children
    Saving The need to collect
    Honor Being loyal to a group
    Social Contact The need for friends
    Idealism The need for purpose
    Status The need for social standing
    Independence Being an individual
    Tranquility The need to be safe
    Order Or stable environments
    Vengeance The need to strike back
    Steven Reiss. Who Am I? The 16 Basic Desires That Motivate Our Actions and Define Our Personalities. City: Berkley Trade, 2002
  • 33. “16 Basic Desires”
    Acceptance The need for approval
    Curiosity The need to think
    Power The need for influence of will
    Honor Being loyal to a group
    Social Contact The need for friends
    Idealism The need for purpose
    Status The need for social standing
    Independence Being an individual
    Order Or stable environments
    Steven Reiss. Who Am I? The 16 Basic Desires That Motivate Our Actions and Define Our Personalities. City: Berkley Trade, 2002
  • 34. “Self-Determination Theory”
    Acceptance The need for approval
    Curiosity The need to think
    Power The need for influence of will
    Honor Being loyal to a group
    Social Contact The need for friends
    Idealism The need for purpose
    Status The need for social standing
    Independence Being an individual
    Order Or stable environments
    Competence The need to feel capable
    Autonomy The need to choose one’s own actions
    Relatedness The need to be socially involved
    Edward L. Deci and Richard M. Ryan. The Handbook of Self-Determination Research. Rochester: University of Rochester Press, 2004
  • 35. “Self-Determination Theory”
    Acceptance The need for approval
    Curiosity The need to think
    Power The need for influence of will
    Honor Being loyal to a group
    Social Contact /Relatedness The need for friends
    Idealism The need for purpose
    Status The need for social standing
    Independence /Autonomy Being an individual
    Order Or stable environments
    CompetenceThe need to feel capable
    Edward L. Deci and Richard M. Ryan. The Handbook of Self-Determination Research. Rochester: University of Rochester Press, 2004
  • 36. 10 Intrinsic Desires
    Acceptance The need for approval
    Curiosity The need to think
    Power The need for influence of will
    Honor Being loyal to a group
    Social Contact / Relatedness The need for friends
    Idealism The need for purpose
    Status The need for social standing
    Independence / Autonomy Being an individual
    Order Or stable environments
    Competence The need to feel capable
  • 37. “Drive”
    Acceptance The need for approval
    Curiosity The need to think
    Power The need for influence of will
    Honor Being loyal to a group
    Social Contact / Relatedness The need for friends
    Idealism /Purpose The need for purpose
    Status The need for social standing
    Independence /Autonomy Being an individual
    Order Or stable environments
    Competence /Mastery The need to feel capable
    Daniel H. Pink, Drive: The Surprising Truth About What Motivates Us. Riverhead, 2009
  • 38. Exercise: 10 Intrinsic Desires
  • 39. The Management 3.0 Model
  • 40. View #2: Empower Teams
    Teams can self-organize, and this requires empowerment, authorization, and trust from management.
  • 41. Self-organization… a definition
    “Self-organization is a process of attraction and repulsion in which the internal organization of a system, normally an open system, increases in complexity without being guided or managed by an outside source.”
    http://en.wikipedia.org/wiki/Self-organization
  • 42. Organization withoutmanagement?
  • 43. Cool!
  • 44. but…
  • 45. Self-organization has a dark side…
  • 46.
  • 47. Self-organization… the dark side
    http://www.flickr.com/photos/agder/2783124139/
  • 48.
  • 49.
  • 50. But people care…about value.
  • 51.
  • 52. http://www.flickr.com/photos/sukanto_debnath/504258852/
  • 53. http://www.flickr.com/photos/suneko/92395757/
  • 54. http://www.flickr.com/photos/calliope/104661075/
  • 55. “Self-organization requires that the system is surrounded by a containing boundary. This condition defines the "self" that will be developed during the self-organizing process.”
    http://amauta-international.com/iaf99/Thread1/conway.html
  • 56. The containing boundary has a chance to direct self-organizationtowards value
  • 57. Don’t go here!
    Go there!
    Directed self-organization
  • 58. Self-organization is the norm
  • 59. Management is the special case
  • 60. Three levels ofself-organization
    Self-organized
    For example: a software development team
    Self-selected (= self-designed)
    Self-organized and system selects its own members
    For example: founders of a start-up business
    Self-directed (= self-governed)
    Self-selected and no direction outside the system
    For example: criminal organization
  • 61. The Darkness Principle
    “Each element in the system is ignorant of the behavior of the system as a whole [...] If each element ‘knew’ what was happening to the system as a whole, all of the complexity would have to be present in that element.”
    http://iscepublishing.com/ECO/ECO_other/Issue_6_3_10_FM.pdf
  • 62. Therefore, management requires…
    Distributed
    governance and leadership
  • 63. Seven levels ofauthority in empowerment
    Tell: make decision as the manager
    Sell: convince people about decision
    Consult: get input from team before decision
    Agree: make decision together with team
    Advise: influence decision made by the team
    Inquire: ask feedback after decision by team
    Delegate: no influence, let team work it out
  • 64. Exercise: Delegation Game
  • 65. The Management 3.0 Model
  • 66. View #3: Align Constraints
    Self-organization can lead to anything, and it’s therefore necessary to protect people and shared resources, and to give people a clear purpose and defined goals.
  • 67. The Game of Life
    (John Conway)
    http://www.bitstorm.org/gameoflife/
  • 68.
  • 69.
  • 70.
  • 71.
  • 72.
  • 73.
  • 74.
  • 75.
  • 76.
  • 77.
  • 78.
  • 79.
  • 80.
  • 81.
  • 82.
  • 83.
  • 84. The Game of Life
    3 neighbors = new life
    2 or 3 neighbors = stay alive
    0 or 1 or > 3 neighbors = death
    simple rules, great results
  • 85. But does that mean...
    3 neighbors = new life
    2 or 3 neighbors = stay alive
    0 or 1 or > 3 neighbors = death
    management = simple rules, great results?
  • 86. 3 neighbors = new life
    2 or 3 neighbors = stay alive
    0 or 1 or > 3 neighbors = death
    management = simple rules, great results?
    No.
  • 87. The Game of Life
    The actual rules => complicated code
  • 88. The Game of Life
    The constraints => a grid, 1 player
  • 89. Another example
  • 90. Settlers of Catan
    (Klaus Teuber)
    It took minutes to define the constraints
    It took years to create and tune the rules
    http://www.wired.com/gaming/gamingreviews/magazine/17-04/mf_settlers
  • 91. complexnon-adaptive system
    we adapt the rules
  • 92. complex
    adaptive
    system
    complexnon-adaptive system
    the system adapts itself
    we adapt the rules
  • 93. A manager / team leader is not a game designer
    Don’t create rules
  • 94. Define constraints (playing field, players)
    Let the system create its own rules
  • 95. aim
    intent
    goal
    mission
    vision
    target
    objective
    Let’s ignore the (subtle) differences for now…
  • 96. Keep it simple
    Commander’s intent
    A goal in just a few lines of text
  • 97. Goal checklist
    specificand understandable
    simpleand concise
    manageableand measurable
    memorableand reproducible
    attainableand realistic
    ambitiousand stimulating
    actionableand assignable
    agreed-uponand committable
    relevantand useful
    time-boundand time-specific
    tangibleand real
    excitableand igniting
    inspiringand visionary
    value-basedand fundamental
    revisitableand assessable
  • 98. Bad example 1
    We are committed to providing outstanding customer experience, to being a great place to work, a thoughtful steward of the environment and a caring citizen in the communities where we live and work. We are passionate about sustainably connecting people and places and improving the quality of life around the world.
  • 99. Bad example 2
    As a company, and as individuals, we value integrity, honesty, openness, personal excellence, constructive self-criticism, continual self-improvement, and mutual respect. We are committed to our customers and partners and have a passion for technology. We take on big challenges, and pride ourselves on seeing them through. We hold ourselves accountable to our customers, shareholders, partners, and employees by honoring our commitments, providing results, and striving for the highest quality.
  • 100. Good example 1
    Our mission is to organize the world’s information and make it universally accessible and useful.
  • 101. Good example 2
    We help people save money so they can live better.
  • 102. Do not allow individual stakeholder goals to replace extrinsic and emergent goals
  • 103. Goals are not meant to...
    Intimidate people if they cannot achieve them
  • 104. Goals are not meant to...
    Intimidate people if they cannot achieve them
    Impress shareholders or others on the sideline
  • 105. Goals are not meant to...
    Intimidate people if they cannot achieve them
    Impress shareholders or others on the sideline
    Confuse short-term wins with long-term losses
  • 106. Goals are not meant to...
    Intimidate people if they cannot achieve them
    Impress shareholders or others on the sideline
    Confuse short-term wins with long-term losses
    Distract people from outcomes with action plans
  • 107. Goals are not meant to...
    Intimidate people if they cannot achieve them
    Impress shareholders or others on the sideline
    Confuse short-term wins with long-term losses
    Distract people from outcomes with action plans
    Overload people with too many objectives
  • 108. And...
    Goals should not be pushed with financial rewards
    http://www.amazon.com/gp/product/1594488843?ie=UTF8&tag=noopnl-20&linkCode=as2&camp=1789&creative=390957&creativeASIN=1594488843
  • 109. Exercise: Agile Goal Setting
  • 110. The Management 3.0 Model
  • 111. View #4: Develop Competence
    Teams cannot achieve these goals if team members aren’t capable enough, and managers must therefore contribute to the development of competence.
  • 112. Safest traffic in the world
    Marshall Islands
    San Marino
    Malta
    Iceland
    Netherlands
    Sweden
    United Kingdom
    Switzerland
    Japan
    Singapore
    http://en.wikipedia.org/wiki/List_of_countries_by_traffic-related_death_rate
    http://www.flickr.com/photos/bobjagendorf/4122137519/
  • 113. http://www.flickr.com/photos/quimbo/20555416/
  • 114. http://www.flickr.com/photos/lilidelamora/5320093/
  • 115. http://www.flickr.com/photos/12386296@N08/4055379221/
  • 116. We can learn how to
    manage software teams
    by studying management
    of similar systems
    (like traffic management)
  • 117. Subsidiarity principle
    “The dictionary defines subsidiarity as the idea that a central authority should have a subsidiary function, performing only those tasks which cannot be performed effectively at a more immediate or local level.”
    http://en.wikipedia.org/wiki/Subsidiarity
  • 118. Subsidiarity principle
    And thus…
    Delegate decisions until you’ve hit a competency problem
    (team members decide unless there is some lack of competence)
  • 119. Precautionary principle
    Assuming that things are risky, in the absence of evidence.
    http://en.wikipedia.org/wiki/Precautionary_principle
    http://kwebble.com/blog/tag/haarlem
  • 120. Precautionary principle
    And thus…
    Decide who has the burden of proof for competency
    (assume team members are competent, unless proven they’re not)
  • 121. http://www.flickr.com/photos/38607288@N03/4087457751/
  • 122. Shared space
    Increased risk perception
    People are less mindful when they see no risks
    Reduced false security / risk compensation
    People show riskier behavior when they think they are safe
    http://en.wikipedia.org/wiki/Shared_space
  • 123. Shared space
    And thus…
    Remove rules to increase risk perception and reduce false security
  • 124. But how do wedevelop competence?
  • 125. Three maturity levels (for skill)
    Shutraditional wisdom, learning fundamentals (apprentice)
    Ha detachment, breaking with tradition (journeyman)
    Ri transcendence, everything is natural (master)
    (last column: three similar levels in medieval European guild system)
    Note: the Dreyfus Model lists five levels of skill acquisition:
    Beginner, Advanced Beginner, Competent, Proficient, Expert
    http://en.wikipedia.org/wiki/Shuhari
    http://en.wikipedia.org/wiki/Master_craftsman
    http://en.wikipedia.org/wiki/Dreyfus_model_of_skill_acquisition
  • 126. Six maturity levels (for discipline)
    Oblivious “We don’t even know that we’re performing a process.”
    Variable “We do whatever we feel like at the moment.”
    Routine “We follow our routines (except when we panic).”
    Steering “We choose among our routines by the results they produce.”
    Anticipating “We establish routines based on our past experiences.”
    Congruent “Everyone is involved in improving everything all the time.”
    Gerard Weinberg, Quality Software Management: Systems Thinking
    (Alternative: six similar levels in “Agile Made Us Better…” by Ross Petit)
    http://www.amazon.com/Quality-Software-Management-Systems-Thinking/dp/0932633226/
    http://www.thoughtworks.com/agile-made-us-better
  • 127. Competence = maturity in 2 dimensions
  • 128. 1. Self-development
    People must learn...
    urgence vs. importance
    time management
    boosting memory
    finding motivation
  • 129. 2. Coaching
    Hire external coaches
    Develop competency leaders
    Note: manager != coach
  • 130. 3. Certification
    By itself a certificate doesn’t mean anything, but...
    it can catalyze all other competency measures
  • 131. 4. Social pressure
    Let people identify with a small group
    Give them shared responsibility for shared goals
  • 132. 5. Infrastructure
    Tools must be adaptable, not just customizable
    Open databases, APIs, scripts, plug-ins, reports
  • 133. 6. Supervision
    Have someone sample/check the products of teams
  • 134. 7. Management
    One-on-ones to assess problem situations
    360 degree meetings to assess collaboration
  • 135. 7 Approaches to competency development
    1. Self-Development
    2. Coaching
    3. Certification
    4. Social Pressure
    5. Infrastructure
    6. Supervision
    7. Management
  • 136. Exercise: Competence Development
  • 137. The Management 3.0 Model
  • 138. View #5: Grow Structure
    Many teams operate within the context of a complex organization, and thus it is important to consider structures that enhance communication .
  • 139. The workplace is a network
  • 140. Individual competence
    “We learned that individual expertise did not distinguish people as high performers. What distinguished high performers were larger and more diversified personal networks.”
    Cross, Rob et.al. The Hidden Power of Social Networks. Boston: Harvard Business School Press, 2004
  • 141. Individual competence
    “Engineers are roughly five times more likely to turn to a person for information as to an impersonal source such as a database.”
    Cross, Rob et.al. The Hidden Power of Social Networks. Boston: Harvard Business School Press, 2004
  • 142. Scale-invariant networks (fractals)
    Best communication across all scales
    http://gut.bmj.com/content/57/7.cover-expansion
  • 143. <- preferred
    Segmentation of teams
  • 144. Design Principle 1 (DP1)
    (through a manager)
    Design Principle 2 (DP2)
    (not through a manager)
    Communication across teams
    <- preferred
    (Fred Emery)
  • 145. Style Structure DP
    Functional 1 (through manager)
    Functional 2 (through team)
    Cross-functional 1 (through manager)
    Cross-functional 2 (through team)
  • 146. Value units
    System administrators
    GUI designers
    Project Mgt Office
    Community of Practice
    Center of Excellence
    Human Resources
    ...
    Delivering value to teams
  • 147. Functional
    (DP1)
    Draw avalue network
    Functional
    (DP2)
    B
    C
    A
    cross-functional
    (DP1)
    D
    E
    cross-functional
    (DP2)
  • 148. Panarchy... network of hierarchies and anarchies
  • 149. Exercise: Value Network Game
  • 150. The Management 3.0 Model
  • 151. View #6: Improve Everything
    People, teams, and organizations need to improve continuously to defer failure for as long as possible.
  • 152. Fitness Landscape
    performance
    system configuration
  • 153. The Red Queen’s Race
    “It takes all the running you can do to keep in the same place.”
  • 154. Three Drivers of Improvement
    Adaptation
    Looking backward, reactive, responding to change
    Exploration
    Trying things out, interactive, experience feedback
    Anticipation
    Looking forward, proactive, imagining improvement
  • 155. Three Drivers of Improvement
  • 156. Ruggedness of Fitness Landscapes
    Ideal situation
    Complexity catastrophe
    Normal situation
  • 157. Most Improvement Models Look Linear
  • 158. Stuck in the Fitness Landscape
    What now?
  • 159. Nonlinear Improvement
    2, 4
    Kaikaku
    Radical improvement
    1, 3, 5
    Kaizen
    Gradual improvement
  • 160. The Strategy of Mutation
    Disturbing the system
  • 161. The Strategy of Crossover
    Mix multiple good performers
  • 162. The Strategy of Broadcasts
    Copy innovations
  • 163. Exercise: Improvement Strategy Game
  • 164. The Management 3.0 Model
    Six organizational views based on complexity thinking
  • 165. Agile Management
    Leading Teams with a Complex Mind
    Jurgen Appelo
    jurgen@noop.nl
  • 166. Agile Management Workshop (outtro)
    Explain to the other people at your table what you will take away from this session.
  • 167. © 2010
    @jurgenappelo
    slideshare.net/jurgenappelo
    noop.nl
    contact me!
  • 168. This presentation was inspired by the works of many people, and I cannot possibly list them all. Though I did my very best to attribute all authors of texts and images, and to recognize any copyrights, if you think that anything in this presentation should be changed, added or removed, please contact me at jurgen@noop.nl.
    http://creativecommons.org/licenses/by-nd/3.0/