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Leading Agility "Inside-Out"
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Leading Agility "Inside-Out"

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Why is it that some companies which try to become agile fail to sustain their early success, while other companies not only grow their agility, but thrive in it? …

Why is it that some companies which try to become agile fail to sustain their early success, while other companies not only grow their agility, but thrive in it?

Most agile adoptions are focused "Outside-In". That is, they start with a process like Scrum or Kanban, and expose the impediments within the organization. However, it is these embedded cultural impediments which often limit agility.

This presentation introduces a counter approach to agile adoption, from the "Inside-out", to align, grow and sustain agility - no matter the culture of your organization. It was first presented at RallyOn 2012 in Boulder, CO.

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  • Agenda\nIntroduction\nOverview\nUpdate on Adoption\nBrainstorm\nNext Steps\n
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    • 1. This presentationwas given atRallyON 2012 inBoulder, CO.I have include helptext for those notattending to “hearmy voice over”through theslides... Leading Agility “Inside-Out” @petebehrens © 2012 Trail Ridge Consulting, LLC
    • 2. Adopting Agility Why is it that some organizations grow and thrive on agility while most plateau and lose their agility over time? Sustainability Why?Agility Training & Coaching Internal Learning 0 1 2 3 4 5 © 2012 Trail Ridge Consulting, LLC Years
    • 3. Most Agile Adoptions Ou Process tsi de -In Structure Most agile adoptions leverage an “outside-in” approach. Starting with Culture a process like Scrum or Kanban, they expose impediments within the Values organization. Roles Behaviors© 2012 Trail Ridge Consulting, LLC
    • 4. “Outside-In” Adoption Agile doesn’t stick because this outside-in approach runs into systemic structures and values of the organization which don’t align to agility.Agility Training & Coaching Internal Learning 0 1 2 3 4 5 © 2012 Trail Ridge Consulting, LLC Years
    • 5. “Inside-Out” Adoption Process t Structure -Ou An “inside-out” ide approach looks takes a Ins different approach. It starts with an Culture assessment and discussion of culture and values within the Values organization, then looks at the structures to support those values. Roles Behaviors© 2012 Trail Ridge Consulting, LLC
    • 6. “Inside-Out” Adoption With an “inside-out” approach, agile sticks because it builds on values and creates an organizational architecture to support agility - much like a software architecture supports scalability and growth. SustainabilityAgility Training & Coaching 0 1 2 3 4 5 © 2012 Trail Ridge Consulting, LLC Years
    • 7. The Golden Circle Process Simon Sinek talks about an inside-out Structure approach and how people align Culture with leaders who drive What How Why organizations Values in this way. Roles Behaviors Simon Sinek - The Golden Circle© 2012 Trail Ridge Consulting, LLC
    • 8. Starting with Why People align with shared values imbedded in a message about “why” we do what we do. t ha Leader W ow hy H W Simon Sinek - Start with Why© 2012 Trail Ridge Consulting, LLC
    • 9. Steve Denning Value t ha e riv W ow D hy H es alu W V Stephen Denning reiterates this same message in his recent book. Leaders must focus on values to drive business value.© 2012 Trail Ridge Consulting, LLC
    • 10. Culture We start with “why” - Culture© 2012 Trail Ridge Consulting, LLC
    • 11. A language for Culture William Schneider - The Reengineering Alternative William Schneider provides us a model for evaluating organizational culture. Think of culture as a “personality” of an organization. They are not right or wrong, just different ways to succeed.© 2012 Trail Ridge Consulting, LLC
    • 12. Control Culture Socialization base in military organizations Structured hierarchically, focused functionally© 2012 Trail Ridge Consulting, LLC
    • 13. Control Culture t ive” ” ” rita “Sys tem cess “A utho “Pro Control cultures are impersonal and focused on the systems and processes to create predictability and performance through repeatability.© 2012 Trail Ridge Consulting, LLC
    • 14. Collaboration Culture Socialization base in the family or athletic team Strong focus on people and interactions Success through building and developing teams© 2012 Trail Ridge Consulting, LLC
    • 15. Collaboration Culture e o ver 5” ” “Peopl +2 = “ We cess ” “2 Pro Collaboration cultures are personal cultures who value the relationships and people over the process and systems. They believe teams are stronger when they work together.© 2012 Trail Ridge Consulting, LLC
    • 16. Competence Culture Socialization base in the university Strong focus on expertise and knowledge Value competition against a standard of excellence© 2012 Trail Ridge Consulting, LLC
    • 17. Competence Culture ” ” ar y O ut s io n or “ Vi ce” “Up ellen “ Exc Competence cultures are impersonal and focused on the work products or research. It is less about the people and more about what they accomplish. They are intense and competitive environments.© 2012 Trail Ridge Consulting, LLC
    • 18. Cultivation Culture Socialization base in religious institutions Strong focus on growth and faith System of beliefs to accomplish goals© 2012 Trail Ridge Consulting, LLC
    • 19. Cultivation Culture ef ul” n ic ” ive” s a t Pu r po “Org “C rea “ Cultivation cultures are personal and focused on growth of people and of the world beyond their organization. They are quite fluid and organic structures and value learning and growing.© 2012 Trail Ridge Consulting, LLC
    • 20. Core Culture Overview Actuality COLLABORATION CONTROL Impersonal Personal The dimensions of culture... Personal vs. Impersonal (left to right) Today vs. Future (top to bottom) CULTIVATION COMPETENCE Possibility© 2012 Trail Ridge Consulting, LLC
    • 21. McKinsey IT Culture This is a cultural signature of a very agile company. They have Control been agile for over 4 years.Collaboration Competence Cultivation 10 20 30 40 50 60 Percent Response© 2012 Trail Ridge Consulting, LLC
    • 22. Cultural Visioning They vision for cultural change every 18 months - this is a sample cultural visioning session using a Sailboat metaphor.© 2012 Trail Ridge Consulting, LLC
    • 23. Cultural Visioning Based on the visioning, they foster agility teams to focus on growing their culture - in this case through recruitment, globally integrating their offices, expanding beyond their organization and getting past “good” to be “great”. They will support 4 separate agility teams to work on these for 18 months.© 2012 Trail Ridge Consulting, LLC
    • 24. McKinsey IT Agile Path Their agility has not only grown within IT, but now as multiple Org growth services they sell to their clients through agile coaching and 150 -> 400! software development projects. Org growth 9 presentations at 75 -> 150! Presented AgileIndia 2012 @Agile2009 - 2011Agility 0 1 2 3 4 5 © 2012 Trail Ridge Consulting, LLC Years
    • 25. Salesforce R&D Culture Here is another signature of one of the most documented agile companies in Control the world - Salesforce.comCollaboration Competence Cultivation 10 15 20 25 30 35 Percent Response © 2012 Trail Ridge Consulting, LLC
    • 26. SaaS R&D Competence Culture > 1,500 in R&D, IT, Ops, MktgAgility 250 in R&D Salesforce.com is highly competitive. Not only in their marketplace, but as a culture in their every day work. Working at Salesforce.com is intense. Unlike McKinsey IT, when Salesforce.com grows in agility, they look at it to be the best agile company in the world. That’s their culture. 0 1 2 3 4 5 © 2012 Trail Ridge Consulting, LLC Years
    • 27. Salesforce.com Results They look to measure their success internally...of respondents would recommend ADM to 94% their colleagues inside or outside Salesforce.com Source: Scrum Gathering 2008 - Salesforce.com Keynote Address© 2012 Trail Ridge Consulting, LLC
    • 28. Salesforce.com Results And externally. They are one of the fastest growing companies in the world since their adoption of agile in 2006.© 2012 Trail Ridge Consulting, LLC
    • 29. Salesforce IT Culture But not all of Salesforce.com is culturally aligned. Their IT staff shows a cultivative culture. Control This exposed challenges in shared projects.Collaboration Competence Cultivation 10 15 20 25 30 35 Percent Response © 2012 Trail Ridge Consulting, LLC
    • 30. Salesforce Acquisition Control In addition, a significant acquisition they were merging indicated a strong control culture. TheirCollaboration initial goal of a 3 month integration was pushed back based on this information... Competence Cultivation 10 15 20 25 30 35 Percent Response © 2012 Trail Ridge Consulting, LLC
    • 31. Cultural Discovery Visualizing and discussing culture provides extremely useful information - similar to having a personality assessment help you in working with others. Before we can talk about “how” we work and “what” we do, we need to understand “why” we do it. R&D Acquisition© 2012 Trail Ridge Consulting, LLC
    • 32. Cultural Visioning Here are a couple of fascinating cultural visions balancing the distinct strengths of different cultures...© 2012 Trail Ridge Consulting, LLC
    • 33. Structure We execute by creating agile structures (an organizational architecture) to support agility© 2012 Trail Ridge Consulting, LLC
    • 34. McKinsey IT Control Back to McKinsey IT ...Collaboration Competence Cultivation 10 20 30 40 50 60 Percent Response© 2012 Trail Ridge Consulting, LLC
    • 35. Organizational Roles Looking at roles in an organization is one way to evaluate agility. Here there are too many roles with management bottlenecks.© 2012 Trail Ridge Consulting, LLC
    • 36. Reducing Roles McKinsey IT removed all of Fewer their roles - people are now “Team Members” and Roles they use a shared wiki to Increases form small 3-4 person teams which discuss Communication shared responsibilities. No longer do they distinguish business analysts, developers, testers, etc. Source: 2004 Patterns of Effective Organizations by Neil Harrison© 2012 Trail Ridge Consulting, LLC
    • 37. Reducing Roles McKinsey IT removed all of Fewer their roles - people are now “Team Members” and Roles they use a shared wiki to Increases form small 3-4 person teams which discuss Communication shared responsibilities. No longer do they distinguish business analysts, developers, testers, etc. Source: 2004 Patterns of Effective Organizations by Neil Harrison© 2012 Trail Ridge Consulting, LLC
    • 38. Sharing work across roles Sharing Work across Roles Increases This allows them to share responsibilities Communication across all team members creating more flexibility and adaptability. It also drives more integration and learning in the organization, both personally and organizationally Source: 2004 Patterns of Effective Organizations by Neil Harrison© 2012 Trail Ridge Consulting, LLC
    • 39. Sharing work across roles Sharing Work across Roles Increases This allows them to share responsibilities Communication across all team members creating more flexibility and adaptability. It also drives more integration and learning in the organization, both personally and organizationally Source: 2004 Patterns of Effective Organizations by Neil Harrison© 2012 Trail Ridge Consulting, LLC
    • 40. McKinsey IT Support 2.0 This organizational flexibility allowed them to smash support with architecture to re-invent support 2.0. They reduced support costs by a factor of 400% through better integration of roles.© 2012 Trail Ridge Consulting, LLC
    • 41. Salesforce R&D Reducing roles would never work at Control Saleforce.com. Their competence organization thrives on individual excellence and roles play a major role in that feeling of identity.Collaboration Competence Cultivation 10 15 20 25 30 35 Percent Response © 2012 Trail Ridge Consulting, LLC
    • 42. Organizational Structures 1. Functional Teams Like most companies, Salesforce was a Functional Matrix organization. 2. Functional Matrix Most Common 3. Balanced Matrix 4. Project Matrix 5. Project Teams Source: Winning at New Products (3rd Edition, 2001) by Robert Cooper© 2012 Trail Ridge Consulting, LLC
    • 43. Organizational Structures 1. Functional Teams Studies show, however, that project related teams handle complexity better. They are more integrated. 2. Functional Matrix 3. Balanced Matrix 4. Project Matrix Best suited for complex projects 5. Project Teams Source: Winning at New Products (3rd Edition, 2001) by Robert Cooper© 2012 Trail Ridge Consulting, LLC
    • 44. Organizational Structures 1. Functional Teams 2. Functional Matrix And more productive... 3. Balanced Matrix Most productive 4. Project Matrix for new products 5. Project Teams Source: Winning at New Products (3rd Edition, 2001) by Robert Cooper© 2012 Trail Ridge Consulting, LLC
    • 45. Organizational Structures 1. Functional Teams Salesforce.com found a sweet spot. Balance the matrix... Sweet Spot 2. Functional Matrix 3. Balanced Matrix 4. Project Matrix 5. Project Teams Source: Winning at New Products (3rd Edition, 2001) by Robert Cooper© 2012 Trail Ridge Consulting, LLC
    • 46. Salesforce.com Balanced Matrix At Saleforce.com, we separated the responsibilities of “how” people do Focus on their work as coached by their “How” managers, and “what” they work on as defined by their agile teams. This allows their culture to hold with individual competence, and agility to grow through team-based self- organization. Focus on “What”© 2012 Trail Ridge Consulting, LLC
    • 47. Process Last (and least) we focus on process... “Get Comfortable with being uncomfortable” Michael Meissner, Omnyx @ Agile 2011© 2012 Trail Ridge Consulting, LLC
    • 48. Focus on Learning Organizational Heartbeat Org Review Cycle Program Review CycleSprint Cycle May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Every organization I work with we put in a shared learning cycle - called an organizational heartbeat. This is another architectural structure that allows the process to learn and grow faster and more integrated. © 2012 Trail Ridge Consulting, LLC
    • 49. Focus on Learning This is an example of incorporating cultural learning and growing in all aspects of the agile release/sprint cycle.© 2012 Trail Ridge Consulting, LLC
    • 50. Adopting Agility So what is the difference between companies who try, but fail to sustain agility and those who continue to grow and thrive? Sustainability Why?Agility Training & Coaching Internal Learning 0 1 2 3 4 5 © 2012 Trail Ridge Consulting, LLC Years
    • 51. “Inside-Out” Agility It is leadership transitioning to agility from the “inside-out”. Starting with culture and building an organizational architecture to support agility. Culture Structure Process Visualize Culture Integrate Silos Plan for Change Focus on Values Create Flexibility Focus on Learning© 2012 Trail Ridge Consulting, LLC