Culture in an Agile World

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Culture in an Agile World

  1. 1. Culture in an Agile World Brad Barton Mark Ferraro Si Alhirwww.CultureSync.net www.CreatingWEInstitute.com salhir@gmail.com http://salhir.wordpress.com 1 Copyright (c) 2012 Sinan Si Alhir. All rights reserved.
  2. 2. Manifesto for Agile Software Development (http://www.agilealliance.org, 2001) We are uncovering better ways of developing software by doing it and helping others do it. Through this work we have come to value:Individuals and interactions over processes and toolsWorking software over comprehensive documentation Customer collaboration over contract negotiation Responding to change over following a plan That is, while there is value in the items on the right, we value the items on the left more. salhir@gmail.com http://salhir.wordpress.com 2 Copyright (c) 2012 Sinan Si Alhir. All rights reserved.
  3. 3. Manifesto for Agility Agile Software DevelopmentWe are uncovering better ways of achieving results developing software by doing it and helping others do it. Through this work we have come to value: People Individuals and interactions over processes and toolsResults Working software over comprehensive documentationCollaboration Customer collaboration over contract negotiation Responsiveness Responding to change over following a plan That is, while there is value in other items the items on the right, we value these items the items on the left more. salhir@gmail.com http://salhir.wordpress.com 3 Copyright (c) 2012 Sinan Si Alhir. All rights reserved.
  4. 4. Barriers to Further Agile Adoption In 2006 and 2007, the annual State of Agile Survey identified "experience" and "resistance to change" as the highest barriers to further Agile adoption2006 2007Source: VersionOne salhir@gmail.com http://salhir.wordpress.com 4 Copyright (c) 2012 Sinan Si Alhir. All rights reserved.
  5. 5. Barriers to Further Agile Adoption In 2008, 2009, 2010, and 2011, the annual State of Agile Survey identified the "ability to change organizational culture" and "resistance to change" as the highest barriers to further Agile adoption 2008 2009 2010 2011Source: VersionOne salhir@gmail.com http://salhir.wordpress.com 5 Copyright (c) 2012 Sinan Si Alhir. All rights reserved.
  6. 6. Leading Causes of Failed Agile Efforts In 2008, 2009, 2010, and 2011, the annual State of Agile Survey identified "experience" and "company philosophy or culture" as the leading causes of failed Agile efforts 2008 2009 2010 2011Source: VersionOne salhir@gmail.com http://salhir.wordpress.com 6 Copyright (c) 2012 Sinan Si Alhir. All rights reserved.
  7. 7. Agile Efforts and Agile Adoption pivot on Culture! Why Culture? salhir@gmail.com http://salhir.wordpress.com 7 Copyright (c) 2012 Sinan Si Alhir. All rights reserved.
  8. 8. Agile Efforts and Agile Adoption pivot on Culture! Because… Culture is about Value! Stronger cultures— founded upon shared values, aligned with a strategy, interconnected people whichemphasizes key stakeholders (customers, stockholders, employees) and leadership — outperform weaker cultures with approximately: 4 times higher revenue (682 percent versus 166 percent increase) 7 times more expanded work force (282 percent versus 36 percent) 12 times higher stock prices (901 percent versus 74 percent) 756% higher net income (756 percent versus 1 percent) John P. Kotter and James L. Heskett “Corporate Culture and Performance” salhir@gmail.com http://salhir.wordpress.com 8 Copyright (c) 2012 Sinan Si Alhir. All rights reserved.
  9. 9. Agile Efforts and Agile Adoption pivot on Culture! Why is Culture so Challenging? salhir@gmail.com http://salhir.wordpress.com 9 Copyright (c) 2012 Sinan Si Alhir. All rights reserved.
  10. 10. Agile Efforts and Agile Adoption pivot on Culture! Because… “We are all prisoners of our paradigms, and hostages to our beliefs.” Gary Hamel "The world’s most influential business thinker" (Wall Street Journal) "The world’s leading expert on business strategy" (Fortune) salhir@gmail.com http://salhir.wordpress.com 10 Copyright (c) 2012 Sinan Si Alhir. All rights reserved.
  11. 11. Culture, Leadership, and Strategy“Culture and leadership are two sides of the same coin.”“In every new social situation, whether we are aware of it or not, we function as ‘leaders’ in that we not only reinforce and act as a part of the present culture, but often begin to create new cultural elements.”“Culture is the main source of the organization’s identity.” “Culture becomes a constraint on strategy.” Edgar Schein World-renowned expert on Organizational Culture “The Corporate Culture Survival Guide” salhir@gmail.com http://salhir.wordpress.com 11 Copyright (c) 2012 Sinan Si Alhir. All rights reserved.
  12. 12. Culture, Leadership, and Strategy~ William Schneider (The Reengineering Alternative: A Plan for Making Your Current Culture Work, 1994) ~ Dimensions: Process/decision (Personal to Impersonal) & Content/attention(Possibility to Actuality) ~ Content: Control, Competence, Cultivation, Collaboration~ Daniel Denison (Corporate Culture and Organizational Effectiveness, 1997) ~ Dimensions: Flexible to Stable & Internal Focus to External Focus ~ Content: Mission, Consistency, Involvement, Adaptability~ Kim Cameron, Robert Quinn, Jeff Degraff, and Anjan Thankor (Competing Values Leadership, 2006) ~ Dimensions: Internal/maintenance to External/positioning & Stability/control to Individuality/flexibility ~ Content: Create (Do things first), Compete (Do things fast), Control (Do things right), Collaborate (Do things together) salhir@gmail.com http://salhir.wordpress.com 12 Copyright (c) 2012 Sinan Si Alhir. All rights reserved.
  13. 13. Culture, Leadership, and Strategy~ Judith Glaser (Creating We, 2005; The DNA Of Leadership, 2006) ~ Creating WE ~ Believing WE (Changing attitudes or beliefs) ~ Learning WE (Adopting new habits of mind and behaviors) ~ Being WE (Expressing WE-consciousness) ~ Leadership DNA: Community, Humanizing, Aspiring, Navigating, Generating, Expressing, and Spirit~ Dave Logan, John King, and Halee Fischer-Wright (Tribal Leadership, 2008) ~ Five Cultural Stages: “Life sucks”; “My life sucks”; “I’m great (and you’re not)”; “We’re great (and they’re not)”; “Life is great” ~ Triads & Triading ~ Tribal Strategy (micro strategy)~ Leandro Herrero (Viral Change, 2008) ~ “There is no change unless it is behavioral” ~ “Change behaviors; get culture; not the other way around” ~ “Viral change is neither top-down nor strictly speaking bottom-up, but multi- centric and distributed” ~ Viral Change is “a way to create fast and sustainable change” salhir@gmail.com http://salhir.wordpress.com 13 Copyright (c) 2012 Sinan Si Alhir. All rights reserved.
  14. 14. Don’t Oversimplify Culture … ~ Biggest danger in understanding culture is oversimplification ~ “The way we do things around here” ~ “The rites and rituals of our company” ~ “The company climate” ~ “How the organization feels” ~ “What the employee morale is” ~ “How well people are getting along” ~ “The reward system” ~ “Our basic values” ~ Strong temptation to use broad categories ~ “Command and control” ~ “Autocratic versus democratic” ~ “Sociability” and “solidarity” ~ “Internal versus external focus” ~ “Flexibility versus stability and control”Source: Edgar Schein salhir@gmail.com http://salhir.wordpress.com 14 Copyright (c) 2012 Sinan Si Alhir. All rights reserved.
  15. 15. … to the Dangerously Narrow! ~ All manifestations of culture, but none at level where it matters ~ Most common view is that culture is about human relations ~ When culture change is proposed, it usualy focuses on ~ “More teamwork” ~ “Employee involvement” ~ “Reducing the layers of supervision” ~ “Creating lateral communication” ~ “Building loyalty and commitment” ~ “Empowering employees” ~ “Becoming more customer oriented” ~ These views of culture are correct but dangerously narrowSource: Edgar Schein salhir@gmail.com http://salhir.wordpress.com 15 Copyright (c) 2012 Sinan Si Alhir. All rights reserved.
  16. 16. What is Culture?“Culture is a pattern of shared tacit assumptions Artifactsthat was learned by a group as (Visible/explicit through Language, it solved its problems of Behaviors, and Relationships) external adaptation Inconsistencie and s and Conflicts internal integration, that has worked well enough Espoused Values to be considered valid and,therefore, to be taught to newmembers as the correct way to Underlying perceive, think, and feel Assumptions (Invisible/tacitin relation to those problems.” through Beliefs, Values, and Assumptions) Edgar Schein World-renowned expert on Organizational Culture “The Corporate Culture Survival Guide” salhir@gmail.com http://salhir.wordpress.com 16 Copyright (c) 2012 Sinan Si Alhir. All rights reserved.
  17. 17. The Breadth and Depth of Culture ~ External Survival Issues ~ Mission, strategy, and goals ~ Means: Structure and processes ~ Measurement: Error-detection and correction ~ Internal Integration Issues ~ Common language and concepts ~ Group boundaries and identity ~ The nature of authority and relationships ~ Allocation of rewards and statusSource: Edgar Schein salhir@gmail.com http://salhir.wordpress.com 17 Copyright (c) 2012 Sinan Si Alhir. All rights reserved.
  18. 18. The Breadth and Depth of Culture ~ Deeper Underlying Assumptions ~ Human relationships to environment (Market) ~ The nature of reality and truth (Real/True) ~ The nature of human nature (Good or Evil) ~ The nature of human relationships (Individual or Collective) ~ The nature of time and space (Organize) ~ The unknowable and uncontrollable (Uncertainty)Source: Edgar Schein salhir@gmail.com http://salhir.wordpress.com 18 Copyright (c) 2012 Sinan Si Alhir. All rights reserved.
  19. 19. Cultural Realities ~ Culture is… ~ Deep, extensive, and stable ~ The shared tacit assumptions of a group that have been learned through coping with external and internal forces ~ A group phenomenon, the product of being social ~ You/We… ~ Cannot “create” a new culture in an organization that has already evolved a culture ~ Can “stimulate” a new way of working together and thinking ~ Cannot use a survey to assess a culture; no survey will have enough questions to cover all of the relevant areasSource: Edgar Schein salhir@gmail.com http://salhir.wordpress.com 19 Copyright (c) 2012 Sinan Si Alhir. All rights reserved.
  20. 20. Cultural Realities ~ No absolute criterion for a “better” or a “worse” culture ~ Culture will influence all aspects of an organization’s functioning ~ Culture change is transformative because we unlearn something before we learn something anew ~ Stage 1 (Unfreezing): Creating the motivation to change ~ Stage 2 (Learning/Changing): Learning new concepts, new meanings for old concepts and new standards for judgment ~ Stage 3 (Refreezing): Internalizing new concepts, meanings, and standards ~ Never start with the idea of changing a culture; always start with the issues the organization faces and only when those “business” issues are clear, ask yourself whether the culture will aid or hinder resolving the issuesSource: Edgar Schein salhir@gmail.com http://salhir.wordpress.com 20 Copyright (c) 2012 Sinan Si Alhir. All rights reserved.
  21. 21. Tony Hsieh’s Zappos: “Delivering Happiness: A Path to Profits, Passion, and Purpose,” Zappos is a Phenomenon — Going from $0 in 1999 to over $1 Billion in 2008!“A big reason we hit our goal early was that we decided to invest our time, money, and resources into three key areas: customer service (which would build our brand and drive word of mouth), culture (which would lead to the formation of our core values), and employee training and development (which would eventually lead to the creation of our Pipeline Team).” “Our Brand, our Culture, and our Pipeline are the only competitive advantages that we will have in the long run.” salhir@gmail.com http://salhir.wordpress.com 21 Copyright (c) 2012 Sinan Si Alhir. All rights reserved.
  22. 22. Transformation Zappos Health Zappos (Performance and Well-being) External Phase I: Context Adaptation (Aspects: Engage and Energize) Brand Brand (Customer Establish a transformation team (Customer Service) Derive a “minimal” framework Service) Socialize and refine the framework TacitAssumptions Phase II: Foundation Culture (Dynamics : Experience and Elaborate) Culture (Core Values) Enact and elaborate the framework (Core Values) Renew value-creation capabilities Internal Integration Phase III: Evolution Pipeline (Wholeness : Evolve and Embody) Pipeline (Employee Enact and evolve the framework (Employee Training and Training and Development) Renew oversight capabilities Development) Foster communities Platform for Growth The Art of War Platform for Growth (Wholeness and Leadership) salhir@gmail.com http://salhir.wordpress.com 22 Copyright (c) 2012 Sinan Si Alhir. All rights reserved.
  23. 23. Thank You Brad Barton Mark Ferraro Si Alhirwww.CultureSync.net www.CreatingWEInstitute.com salhir@gmail.com http://salhir.wordpress.com 23 Copyright (c) 2012 Sinan Si Alhir. All rights reserved.
  24. 24. More InformationCulture, Leadership, and Strategy salhir@gmail.com http://salhir.wordpress.com 24 Copyright (c) 2012 Sinan Si Alhir. All rights reserved.
  25. 25. Culture, Leadership, and Strategy~ William Schneider (The Reengineering Alternative: A Plan for Making Your Current Culture Work, 1994) ~ Dimensions ~ Process/decision: Personal to Impersonal ~ Content/attention: Possibility to Actuality ~ Content ~ Control: Certainty ~ Competence: Distinction/Professionalism ~ Cultivation: Enrichment/Growth-&-Development ~ Collaboration: Synergy salhir@gmail.com http://salhir.wordpress.com 25 Copyright (c) 2012 Sinan Si Alhir. All rights reserved.
  26. 26. Culture, Leadership, and Strategy~ Daniel Denison (Corporate Culture and Organizational Effectiveness, 1997) ~ Dimensions ~ Flexible to Stable ~ Internal Focus to External Focus ~ Content ~ Mission: Strategic Direction & Intent, Goals & Objectives, Vision ~ Consistency: Coordination & Integration, Agreement, Core Values ~ Involvement: Capability Development, Team Orientation, Empowerment ~ Adaptability: Creating Change, Customer Focus, Organizational Learning salhir@gmail.com http://salhir.wordpress.com 26 Copyright (c) 2012 Sinan Si Alhir. All rights reserved.
  27. 27. Culture, Leadership, and Strategy~ Kim Cameron, Robert Quinn, Jeff Degraff, and Anjan Thankor (Competing Values Leadership, 2006) ~ Competing Values (Tensions) Framework ~ Dimensions ~ Internal/maintenance to External/positioning ~ Stability/control to Individuality/flexibility ~ Content ~ Create (Do things first): Adhocracy and New Change ~ Compete (Do things fast): Market and Fast Change ~ Control (Do things right): Hierarchy and Incremental Change ~ Collaborate (Do things together): Clan and Long-term Change salhir@gmail.com http://salhir.wordpress.com 27 Copyright (c) 2012 Sinan Si Alhir. All rights reserved.
  28. 28. Culture, Leadership, and Strategy~ Judith Glaser (Creating We, 2005; The DNA Of Leadership, 2006) ~ Conversations (Language and Relationships) ~ Unhealthy or toxic cultures have an I-centric fingerprint ~ Healthy or nontoxic cultures have a WE-centric fingerprint ~ Creating WE ~ Believing WE: Changing attitudes or beliefs — Authority, Territoriality, and Self-Interest ~ Learning WE: Adopting new habits of mind and behaviors — Culture, Possibilities, Space, and Conversations ~ Being WE: Expressing WE-consciousness — Working in Concert and Sustaining WE ~ Leadership DNA ~ Community, Humanizing, Aspiring, Navigating, Generating, Expressing, and Spirit salhir@gmail.com http://salhir.wordpress.com 28 Copyright (c) 2012 Sinan Si Alhir. All rights reserved.
  29. 29. Culture, Leadership, and Strategy~ Dave Logan, John King, and Halee Fischer-Wright (Tribal Leadership, 2008) ~ Language and Relationships ~ Five Cultural Stages ~ Stage 1: “Life sucks” ~ Stage 2: “My life sucks” ~ Stage 3: “I’m great (and you’re not)” ~ Stage 4: “We’re great (and they’re not)” ~ Stage 5: “Life is great” ~ Triads & Triading (and the Epiphany “I Am Because We Are”) ~ Tribal Strategy (micro strategy) ~ Core Values and Noble Cause ~ Outcomes, Assets, and Behaviors salhir@gmail.com http://salhir.wordpress.com 29 Copyright (c) 2012 Sinan Si Alhir. All rights reserved.
  30. 30. Culture, Leadership, and Strategy~ Leandro Herrero (Viral Change, 2008) ~ “There is no change unless it is behavioral” ~ “Change behaviors; get culture; not the other way around” ~ “Viral change is neither top-down nor strictly speaking bottom-up, but multi-centric and distributed” ~ Viral Change is “a way to create fast and sustainable change” salhir@gmail.com http://salhir.wordpress.com 30 Copyright (c) 2012 Sinan Si Alhir. All rights reserved.

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